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Monday, March 20

Editor's Note: The CNN Wire is a running log of the latest news from CNN World Headquarters, reported by CNN's correspondents and producers, and The CNN Wire editors.

Attack on Muqdadiya police HQ kills at least 15 officers, 30 detainees freed

BAGHDAD (CNN) -- At least 15 police officers were killed and 30 detainees freed in an early morning assault by insurgents on Muqdadiya police headquarters, an official with the Diyala Joint Coordination Center said. The body of one of the attackers was found near the building.

According to the official, insurgents hit the facility with rocket-propelled grenades and machine-gun fire, seizing weapons and destroying at least 20 cars -- many of them police vehicles.

The detainees were suspected of terrorist activities, the official said. (posted 3 a.m.)

Nagin rejects proposal for limiting rebuilding in New Orleans

NEW ORLEANS (CNN) -- All New Orleans residents whose homes were damaged or destroyed by Hurricane Katrina should be allowed to rebuild if they choose, and the city will not stand in the way of reconstruction in areas considered vulnerable to flooding in future storms, Mayor Ray Nagin announced Monday.

However, the mayor warned residents that even with repairs now being made to the city's levee system, some neighborhoods in the eastern part of the city will remain vulnerable to storm flooding for as long as two years, until more improvements can be made.

He urged residents to consider taking advantage of a buy-out program that would pay them up to $150,000 for property in those areas.

"The Army Corps of Engineers has warned me that some of our lowest-lying areas of New Orleans East and the Lower Ninth Ward will have some flooding from levees overtopping if another hurricane travels along the same path of Katrina," Nagin said. (posted 1:10 a.m.)

'XXX' Chicago

(CNN) -- Nearly 40 years after storming out of the Midwest, the venerable pop-rock band with horns, Chicago, is back with its first new CD of original, non-holiday material in 11 years -- "Chicago XXX." Although the title looks racy, it stands for 30, not something X-rated.

Produced by Jay DeMarcus of country music trio Rascal Flatts, the Windy City boys dish out a disc that is evenly split between ballads and funky rock tunes, while not forsaking their trademark horns.

As a whole, the CD sounds more like the 1980s Chicago that churned out hits like "You're the Inspiration" and "Look Away" rather than the band's earlier more improvisational era in the late 1960s and early 1970s that produced "Beginnings" and "25 or 6 to 4." Fans of both eras will find something to like, but neither will be fully satisfied.

Although there are no twangy guitars, songs about trains or mama, look for potential country crossover hits as Shelly Fairchild and the boys from Rascal Flatts each join Chicago for a song. Remember, rockers Bon Jovi have already been paired with Sugarland in this world of modern country music. (posted 1:10 a.m.)

NE Australia cleans up after powerful cyclone

(CNN) -- The most powerful cyclone to hit Australia in more than three decades slammed into the northeastern state of Queensland early Monday, wrecking wooden buildings, shearing off roofs, toppling trees and leveling banana trees and sugar cane fields.

Despite widespread damage caused by Tropical Cyclone Larry, there have so far been no reports of deaths from the storm, which hit a thinly populated area with gusts of up to 185 mph. About two dozen minor injuries were reported.

Prime Minister John Howard put the country's military on alert to help and pledged federal cash assistance to families who lost their homes, with payments of $720 per adult (1,000 Australian dollars) and $288 per child (400 Australian dollars.) (Posted 8:05 p.m.)

Algeria earthquake kills 4

(CNN) -- At least four people died Monday night when a moderate earthquake struck northern Algeria, destroying an estimated 30 homes, the Algerian news agency APS reported.

The magnitude 5.0 quake hit the city of Iaalam, about 200 kilometers (125 miles) east of the capital Algiers, at 8:44 p.m. (2:44 p.m. ET), the U.S. Geological Survey reported.

APS said four people were killed and another 36 were injured in the quake. (Posted 6:43 p.m.)

Senator puts hold on nominee for U.S. Coast Guard commandant

WASHINGTON (CNN) -- A Nevada senator has put a hold on the nomination of Vice Admiral Thad Allen to be the next commandant of the U.S. Coast Guard, irking Homeland Security officials who say they want to see an orderly transition of the Coast Guard's hierarchy before hurricane season begins in June.

Republican Sen. John Ensign put the hold on Allen's nomination using a procedure that allows an individual senator to stall presidential nominations.

Officials told CNN Monday that Ensign sent Allen a lengthy questionnaire, most of which concerned the Federal Emergency Management Agency, but also dealt with concern about the Coast Guard's policy regarding the evacuation of pets during Hurricane Katrina.

Allen served as principle federal officer during the Katrina response after replacing embattled FEMA Director Michael Brown. Ensign is a veterinarian. --From CNN Producer Mike M. Ahlers (Posted 6:39 p.m.)

British warn 'political vacuum' in Baghdad fuels violence

LONDON (CNN) -- British Defense Secretary John Reid tried to prod Iraqi leaders toward establishing a permanent government Monday, warning that a power vacuum in Iraq is fueling the ongoing violence there.

Reid spent the weekend in Iraq, where British troops have led a multinational force based in the southern city of Basra since the 2003 invasion that toppled Iraqi leader Saddam Hussein. He said Iraqi leaders he spoke with are dedicated to avoiding civil war despite an upsurge in sectarian killings since the Feb. 22 bombing of a revered Shia Muslim mosque in Samarra.

"The main risk of civil war, if there is such a risk, is that the Iraqis unravel not from the bottom up, but from the top down," he said. Based on the talks he held over the weekend, "I just do not believe that that is likely, far less imminent."

But he said Iraqis want to see the lawmakers they elected in December form a national unity government that represents all major ethnic and religious groups, and said the fighting that has wracked the country is being "fueled by the vacuum of a stalled political process." (Posted 6:34 p.m.)

U.S. officials expand screening for avian flu

WASHINGTON, DC (CNN) -- Detection of the highly pathogenic avian flu virus H5N1 inside the United States could come as early as this year, and government officials Monday unveiled plans to increase monitoring and expand screening of migratory birds that could bring it.

"We are closely monitoring the rapid spread of the H5N1 virus overseas and we now believe it is likely that we will detect it within our borders in the U.S.," said Secretary of Agriculture Mike Johanns, who was joined by Interior Secretary Gale Norton and Health and Human Services Secretary Mike Leavitt for the announcement.

But Johanns added, "It is critically important for the American public to understand that a detection of this virus in birds does not signal the start of a pandemic among people."

The joint plan outlines five strategies for early detection of the virus in migratory birds: sample testing of live wild birds; testing wild birds that are sick or have died; sample testing of hunter-killed birds; monitoring and testing of sentinel animals such as backyard poultry flocks; and environmental sampling of water and bird feces. (Posted 5:53 p.m.)

More than one-quarter of Americans now afraid of flying, poll finds

(CNN) -- Americans' fear of flying has dropped since just after the Sept. 11, 2001, terrorist attacks using airplanes, but more than one-quarter of those asked in a new poll said they remain fearful.

Twenty-seven percent of the respondents in the CNN/USA Today/ Gallup poll said they would be either very afraid or somewhat afraid if they had to "fly on an airplane tomorrow."

In a poll asking the same question in November 2001, 43 percent said they would be afraid.

The new poll, taken March 10-12, had a sampling error of plus or minus 3 percent. (Posted 5:21 p.m.)

Preliminary analysis finds growth in chief executive pay off 63 percent in 2005; still handily trumps workers' raises

NEW YORK (CNNMoney.com) -- There are no paupers among CEOs of companies listed on the S&P indexes, but there has been a slowing in the growth of their pay, according to the latest research from The Corporate Library, a corporate governance watchdog.

Total CEO compensation rose a median of 11.3 percent since July 2005, far below the 30.2 percent growth rate in last year's survey, according to a preliminary analysis of executive compensation released by Corporate Library senior research associate Paul Hodgson.

Total CEO compensation includes salary, bonus, perquisites, long-term incentive payouts, the value of realized stock options and restricted stock.

For CEOs' base salary alone, the average increase was 8.5 percent, still multiples above that for workers, for whom the average pay increase in 2005 was 3.4 percent, according to Hewitt Associates. --From CNNMoney.com Senior Writer Jeanne Sahadi (Posted 4:50 p.m.)

White House, OSCE condemn Belarus vote

(CNN) -- European monitors and the United States on Monday condemned the weekend presidential election in Belarus that saw President Alexander Lukashenko re-elected in a landslide, with the White House joining opposition calls for a new vote.

More than 500 observers from the Organization for Security and Cooperation in Europe watched the process, and the organization said balloting in the former Soviet republic was marred by the "arbitrary use of state power and widespread detentions."

"I would have liked nothing more than to be able to make a positive statement about the election we just observed," said Geert-Hinrich Ahrens, head of the OSCE's mission to Belarus. "Unfortunately, there were too many serious violations of international election standards."

Lukashenko claimed 82.6 percent of the vote, election officials announced early Monday, while three opponents split the rest. (Posted 4:07 p.m.)

Investment banker's obstruction convictions overturned

NEW YORK (CNN)-- A U.S. federal appeals court panel Monday overturned the obstruction convictions of investment banker Frank Quattrone.

Charging that the "jury instructions were erroneous," the three-judge panel for the 2nd U.S. Circuit Court of Appeals ordered that the case be retried.

Quattrone was convicted in May 2004 on charges of obstruction of justice, obstruction of an agency proceeding and witness tampering. He was sentenced to 18 months in prison, but was out on bail pending appeal.

The jury concluded that Quattrone attempted to block regulatory and grand jury probes into stock offerings when he instructed colleagues at Credit Suisse First Boston in an e-mail that it was "time to clean up those files." --From CNN Assignment Editor Jonathan Schienberg (Posted 3:50 p.m.)

Bush acknowledges 'trial and error' in Iraq but promises victory

CLEVELAND (CNN) -- Three years after the U.S. invasion of Iraq, President Bush acknowledged a period of "trial and error" in battling the insurgency there Monday but vowed not to withdraw before an American victory.

"We will leave Iraq -- but when we do, it will be from a position of strength, not weakness," Bush said. "Americans have never retreated in the face of thugs and assassins, and we will not begin now."

Monday's speech at the City Club of Cleveland, which included a question-and-answer session, was Bush's latest effort to rally flagging public support for the conflict. A CNN/USA Today/Gallup poll last week found that 37 percent of those surveyed believed the war has been worth the costs, and only 32 percent said they believed Bush had a clear plan for victory.

A CNN/USA Today/Gallup poll taken at the end of February found that 65 percent wanted some or all U.S. troops out of Iraq now. (Posted 2:38 p.m.)

French unions, student groups call nationwide 'day of action'

PARIS (CNN) -- French trade unions and student groups have called for a nationwide "day of action" on March 28 to pressure the government to withdraw the new youth employment law, a source at the trade union CFDT told CNN.

Actions will include work stoppages, strikes and demonstrations, she said. --From CNN Correspondent Chris Burns (Posted 2:30 p.m.)

Moussaoui FBI agent describes how headquarters thwarted probe

ALEXANDRIA, Va. (CNN) -- The FBI agent who arrested and interrogated Zacarias Moussaoui four and a half years ago in Minnesota told a jury Monday he believed at the time that Moussaoui was a terrorist intent on hijacking an airplane.

But Minneapolis FBI Agent Harry Samit told jurors, "What I believed and what I could prove are two different things."

Undergoing a rigorous cross-examination, Samit also blamed FBI headquarters for having "obstructed" the Moussaoui probe, which the government now portrays as the lost opportunity to unlock the clues to the Sept. 11, 2001, terrorist attack on America.

Samit told the jury that supervising agents at headquarters repeatedly blocked his requests to obtain criminal or national intelligence warrants to search Moussaoui's belongings, which, it was later discovered, contained contact numbers for a key Sept. 11 planner in Germany and short-bladed knives like the ones Sept. 11 hijackers used to commandeer four jets. --From CNN Senior Producer Phil Hirschkorn (Posted 1:48 p.m.)

Blasts kill 7 at Iraqi coffee shop, restaurant

BAGHDAD (CNN) -- An explosion at a busy Baghdad coffee shop and another at a popular restaurant Monday evening killed seven people and wounded 32, an official with the Baghdad emergency police told CNN.

The first blast -- from a bomb left in a plastic bag -- took place about 7 p.m. at a coffee shop in the northern Kassra neighborhood, killing three and wounding 22. The second -- from a bomb left near a restaurant in southeastern Baghdad -- killed four people and wounded 10, the official said. (Posted 12:50 p.m.)

Justice Department exploring criminal charges against Carla Martin

WASHINGTON (CNN) -- Justice Department prosecutors have begun exploring possible criminal charges against Carla Martin, the government lawyer whose actions prompted the judge in the sentencing trial of Zacarias Moussaoui to throw out key aviation-related witnesses, federal law enforcement sources told CNN Monday.

No decisions have been made, and no action is expected soon, they said.

Two sources familiar with the case said if any charge is brought against Martin it would likely have to be investigated and brought by an arm of the Justice Department not directly involved in the case to there is ensure no actual or perceived conflict of interest. --From CNN Justice Producer Terry Frieden (Posted 12:49 p.m.)

Biden: Iraq outlook 'dismal,' need 'Plan B' to prevent regional war

WASHINGTON (CNN) -- With sectarian violence raging in Iraq on the third anniversary of the war's start, a senior Democratic lawmaker called Monday for President Bush to "take a political risk" and bring enemy factions together in the vein of his predecessors.

"He has to take the same political risk that Carter took at Camp David, the same political risk that Reagan took at Reykjavik, the same political risk that Clinton took at Taba, without knowing the outcome," said Sen. Joe Biden of Delaware, the ranking Democrat on the Senate Foreign Relations Committee.

If U.S. leadership cannot get disparate Iraqi factions to form a joint government, U.S. forces and officials in the region "will just be the people walking around with bulls-eyes on our back, targets on our back, and being blamed for everything that occurs in every community."

Speaking at the Center for American Progress, a left-leaning think tank, Biden said he believes Iraq is in the midst of "a low-grade civil war" -- an assessment the Bush administration rejects. (posted 12:48 p.m.)

Andrea Yates retrial postponed to June 22

HOUSTON (CNN) -- A Houston district court judge on Monday ordered the capital murder retrial of Andrea Yates postponed until June.

In a proceeding that lasted less than 10 minutes, Judge Belinda Hill granted a defense request for the continuance, and ordered jury selection to begin June 22, and testimony to begin four days later.

The delay was sought because the defense had a scheduling conflict with two of its medical expert witnesses. Yates has pleaded not guilty by reason of insanity. (Posted 11:26 a.m.)

Israeli opens crossing to allow basic food supplies to enter Gaza

JERUSALEM (CNN) -- After warnings that basic food stuffs were running out in Gaza, the Israeli Defense Ministry partially opened the Karni crossing Monday to allow basic produce to cross.

The crossing was open for an hour and a half before closing again following an alert. Israel has closed the crossing for long periods over the past two months, citing security concerns.

Palestinians have reported shortages of bread and other staples in Gaza because of the closure. (Posted 9:16 a.m.)

Iraq to distribute aid to families displaced by sectarian violence

BAGHDAD (CNN) -- Iraqi officials met Monday to discuss the distribution of 500 million Iraqi dinars ($356,000) in humanitarian aid earmarked for more then 3,700 families displaced by the sectarian violence that followed last month's attack on the al-Askariya shrine in Samarra.

The families live in 10 of Iraq's 18 provinces. Nearly half are in the southern provinces of Najaf, Qadisiya, Thiqar and Maysan. (posted 9:05 a.m.)

Violent incidents mark morning in Gaza

JERUSALEM (CNN) -- Seven people were wounded Monday when Palestinian militants attacked a fleet of cars carrying a police official from Erez to Gaza City.

Palestinian security sources said early Monday that when gunmen from Al Aqsa Martyrs Brigades tried to stop Police Chief Al'a Husni from traveling from Erez to Gaza city, clashes erupted between the police and gunmen. Four police were wounded as well as three gunmen.

Separately, in a neighborhood of Gaza City, there were clashes between Al Aqsa gunmen and police resulting in two policemen injured.

In addition, Al Aqsa gunmen -- firing weapons -- entered a government building in Gaza City. There were no injures. The gunmen were demanding salaries.(Posted 7:29 a.m.)

9/11 trial resumes where it left off

ALEXANDRIA, Va. (CNN) -- The first U.S. trial stemming from the Sept. 11, 2001, terrorist attacks, is set to resume Monday where it left off, with the key FBI agent who arrested and interrogated Zacarias Moussaoui four-and-half years ago on the stand.

Harry Samit will be cross-examined by Moussaoui's attorneys about his handling of Moussaoui on Aug. 16 and 17, 2001, when Moussaoui was initially in custody for an immigration overstay. During three-and-half hours of talks behind bars, Moussaoui told Samit he was in flight school for fun and intended to visit New York as a tourist.

Prosecutors contend it is the lies Moussaoui told Samit, covering up al Qaeda's conspiracy to hijack and crash planes into prominent buildings, that contributed to 3,000 murders on Sept. 11 and make Moussaoui deserve the death penalty.

Moussaoui's punishment is the only question before the jury in the trial that began March 6. If jurors don't vote unanimously to execute Moussaoui, 37, a French national of Moroccan heritage who pleaded guilty to terrorism conspiracies last year, then he will be sentenced to life in prison. --From CNN Senior Producer Phil Hirschkorn (Posted 7:27 a.m.)

Baghdad police find another 9 people shot to death

BAGHDAD (CNN) -- The bodies of nine people, all killed by shots to their heads, were found in various locations around Baghdad Monday morning, according to an official with the Baghdad emergency police.

The official said the latest discoveries bring to 186 the number of bodies found in Baghdad over the last eight days. (Posted 4:49 a.m.)

Roadside blast kills 4, wounds 2 in central Baghdad

BAGHDAD (CNN) -- Four people, including two Iraqi police commandos, were killed when a roadside bomb exploded in central Baghdad's Karrada neighborhood at 11:30 a.m. Monday, police said.

Two people were also wounded in the attack, police said. (Posted 4:35 a.m.)

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