The CNN Wire: Monday, July 2

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. "Posted" times are Eastern Time.

U.S. helicopter pilots rescued

BAGHDAD (CNN) -- Two U.S. Army pilots were rescued Monday after their helicopter was shot down, south of Baghdad, a military statement released Tuesday said. An Apache attack helicopter was used in the rescue.

"An Air Force Thunderbolt II destroyed the downed helicopter with two 500-pound laser-guided bombs after the pilots were evacuated from the area," according to the military.

The incident is under investigation. (Posted 2:25 a.m.)

2 U.S. Marines die in Iraq

BAGHDAD (CNN) -- Two U.S. Marines died Sunday during combat operations in Anbar province, west of Baghdad, a military statement released Tuesday said.

The deaths of the Marines assigned to Multi National Force-West were the result of a "non-hostile related accident," according to the military. The incident is being investigated.

Since the start of the war, there have been 3,585 U.S. military deaths in Iraq. (Posted 2:05 a.m.)

Police carry out controlled explosion

GLASGOW, Scotland (CNN) -- A bomb disposal team carried out a controlled explosion of a vehicle at a mosque in Glasgow early Tuesday, Strathclyde Police said in a statement.

According to police, the vehicle will be removed from a parking lot at the Forth Street Mosque in the Pollokshields section of Glasgow and will undergo a "detailed forensic examination."

Police have been investigating attempted terror attacks in London and Glasgow from over the weekend and have carried out three other controlled detonations of vehicles in Glasgow -- two on Monday and one on Sunday. (Posted 12:30 a.m.)

Police carry out controlled explosion

GLASGOW, Scotland (CNN) -- A controlled explosion was carried out on a car in Glasgow early Tuesday, Strathclyde Police told CNN.

Police have been investigating attempted terror attacks in London and Glasgow from over the weekend. (Posted 12:05 a.m.)

8th suspect in UK terror probe was a doctor working in Australia

LONDON (CNN) -- A doctor arrested Monday while trying to fly out of Australia was the eighth person detained as British investigators focused on several foreign-born doctors believed to have played a role in the attempted terror attacks in London and Glasgow over the weekend, Australian officials and sources said.

A second doctor in Australia was being questioned, but had not been detained, according to Queensland Premier Peter Beattie.

A 27-year-man -- identified by Scotland Yard only as "H" -- was a detained at the Brisbane, Australia, airport Monday evening while waiting to catch a flight out of the country, Beattie said.

Australian police were executing search warrants at locations in the Brisbane area, including at the Gold Coast Hospital in Southport, Queensland, where the man worked as a doctor, according to Australian Attorney General Philip Ruddock.

Although Ruddock would not disclose his nationality, he did say the man was not an Australian.

Beattie said the both doctors were recruited from Liverpool last year, through an ad in the British Medical Journal, to work in Australia.

The doctor who was in custody was considered a good employee in the emergency department and was "regarded as a model citizen, excellent references," Beattie said. (Posted 11:05 a.m.)

Death toll reaches 300 in Pakistan floods

LAHORE, Pakistan (CNN) -- The death toll stood at 300 Monday after a week of heavy rains and flooding from a tropical cyclone in Pakistan's Balochistan and Sindh provinces, officials said, but the toll was expected to rise in several hard hit areas where dozens of people remained missing.

Cyclone Yemyin smashed ashore Tuesday with high winds and heavy rains that flooded coastal areas of Pakistan and India.

Prime Minister Shaukat Aziz called for international contributions to the ongoing relief operations in the coastal areas. Aziz visited the flood-ravaged areas of Turbat and other cities on Sunday.

The floodwaters have demolished hundreds houses and mud huts in the area. According to officials, more than one million people are affected in this recent floods and rains.

-- From CNN's Syed Mohsin Naqvi (Posted 7:05 p.m.)

Wrestler's doctor released on bond

ATLANTA (CNN) -- The personal doctor of professional wrestler Chris Benoit has been indicted by a grand jury on seven charges of improperly dispensing and distributing painkillers and other drugs.

Dr. Phil Astin turned himself in to authorities in Atlanta on Monday, said Manny Arora, Astin's attorney. At an initial court appearance Monday afternoon, Astin was granted a $125,000 bond on condition that he submit to electronic monitoring and house arrest and surrender his passport. He will remain in custody overnight while his home is set up for electronic monitoring. He will be allowed to leave his home for religious services and court appearances.

He was also ordered to surrender the gun that was found at his medical office, avoid all contact with patients, victims and witnesses -- including employees of his practice -- be drug tested and undergo mental evalutations.

The eight-page indictment alleges that Astin dispensed Percocet, Vicoprofen, Xanax, Lorcet and Adderall between April 2004 and September 2005 to individuals identified only as "O.G." and "M.J." (Posted 6:22 p.m.)

Bush commutes Libby sentence

WASHINGTON (CNN) -- President Bush has commuted the prison term of former White House aide Lewis "Scooter" Libby, who faced 30 months in prison after his conviction on federal perjury charges stemming from the leak of a CIA agent's identity, the White House announced Monday.

Libby, the former chief of staff to Vice President Dick Cheney, was convicted in March of perjury, obstruction of justice and lying to investigators probing the 2003 disclosure of CIA operative Valerie Plame Wilson's identity. A federal judge in Washington sentenced Libby to prison in June, and a federal appeals court rejected the ex-official's bid to remain free while appealing his conviction earlier Monday.

In a written statement issued hours after that ruling, Bush called 30-month term "excessive." But he also rejected calls for a pardon for Libby, and said the onetime adviser will still have to pay a $250,000 fine and remain on probation for two years.

"The consequences of his felony conviction on his former life as a lawyer, public servant, and private citizen will be long-lasting," Bush said. But he said Libby was given "a harsh sentence based in part on allegations never presented to the jury." (Posted 6 p.m.)

Bush commutes Libby sentence

WASHINGTON (CNN) -- President Bush has commuted the prison term of former White House aide Lewis "Scooter" Libby, who faced 30 months in prison after his March conviction on federal charges of perjury, obstruction of justice and lying to investigators. (Posted 5:51 p.m.)

8th suspect arrested in UK terror probe

LONDON (CNN) -- An eighth person has been arrested in connection with the attempted terror attacks in London and Glasgow over the weekend, a Scotland Yard official told CNN.

The man, identified only as "H," was arrested by British investigators at an undisclosed location Monday, the official said. (Posted 4:14 p.m.)

U.S. military judge refuses to reinstate charges against Guantanamo detainee

WASHINGTON (CNN) -- One of two judges hearing the latest tribunals at the U.S. military detention facility at Guantanamo Bay, Cuba, refused to reinstate the charges he dropped against a prisoner accused of killing a U.S. soldier in Afghanistan in 2001, Pentagon officials said.

The judge made his decision Friday, Pentagon officials said, and the prosecution has five days to appeal.

The judge, Army Col. Peter Brownback, dropped the charges against Canadian detainee Omar Khadr last month because, he said, he lacked the jurisdiction to try him, the result of a technicality in Khadr's designation as a detainee. --From CNN Pentagon Producer Mike Mount (Posted 3:13 p.m.)

Grand jury to hear cases of suspects in slaying of pregnant woman

(CNN) -- Appearing in court in Canton, Ohio, Monday, Bobby Cutts Jr. and Myisha Ferrell independently waived their rights to preliminary hearings, sending their cases directly to a Stark County grand jury.

Cutts has been charged with two counts of murder in the slaying of Jessie Davis, his pregnant ex-girlfriend. Ferrell has been charged with obstruction of justice in the case. A prosecutor indicated Monday that Ferrell is believed to have assisted Cutts in disposing of Davis' body.

Davis had been due to give birth in early July when she disappeared last month. Davis' mother, unable to reach her daughter, went to her home and found Cutts' and Davis' 2-year-old son, Blake, wandering alone in a diaper, the house in disarray. --From CNN's Mythili Rao in New York (Posted 2:54 p.m.)

Bush, Putin plan 'joint message' to Iran over nuclear fuel

KENNEBUNKPORT, Maine (CNN) -- U.S. President George Bush and Russian President Vladimir Putin discussed how to send a "joint message" to Iran to halt uranium enrichment work, Bush said Monday, but disagreements over U.S. plans for a European missile defense system remain.

"When Russia and America speak along the same lines, it tends to have an effect," Bush said after informal talks at his father's home in Maine. Russia, China and European Union powers Germany, France and Britain have been trying to persuade Iran to halt its enrichment work, but Iran insists it has a right to develop nuclear energy.

Monday's meeting -- dubbed the "lobster summit" -- was held at the Bush family compound in Maine. It was aimed at easing ties strained by U.S. plans for a European missile defense system and American concerns about crackdowns on Russian opposition groups, but White House and Kremlin spokesmen have told reporters not to expect major announcements from the talks.

Putin said he and Bush agreed to "continued consultations" in their talks, and proposed establishing information exchange centers in Moscow and a European capital, such as Brussels -- the seat of the NATO alliance. (Posted 2:32 p.m.)

U.S. soldier killed by blast

BAGHDAD (CNN) -- A U.S. soldier with Task Force Lightning was killed by a blast near his vehicle in Salaheddin province Monday, the U.S. military said. Two soldiers were wounded in the blast. The death brings the U.S. military death toll in the Iraq war to 3,583. (Posted 2:09 p.m.)

Appeals court rejects Libby's bid for bail

WASHINGTON (CNN) -- A federal appeals court Monday rejected former White House aide Lewis "Scooter" Libby's request to remain free on appeal after his March conviction on federal charges stemming from the leak of a CIA agent's identity.

Libby, once Vice President Dick Cheney's chief of staff, faces a 30-month prison term after being convicted of perjury, obstruction of justice and making false statements to federal agents probing the 2003 exposure of CIA agent Valerie Plame Wilson, whose husband had become a critic of the war in Iraq.

A three-judge panel of the District of Columbia Circuit Court of Appeals found Libby has not raised a question for judges "that is 'close' or that 'could very well be decided the other way'" -- the standard for remaining free on appeal.

Barring further appeals, Libby's term will start when the U.S. Bureau of Prisons decides where he will serve his time and sets a date for him to surrender. But his lawyers may appeal Monday's ruling to the U.S. Supreme Court, which rarely intervenes in these kinds of cases. (Posted 1:13 p.m.)

'Very crude' device goes off in remote area of Walt Disney World; no one hurt

(CNN) -- What was described as a "very crude, homemade, low-level device" exploded in a trash container in a remote parking lot area of Walt Disney World early Monday, Orange County (Fla.) Sheriff Kevin Beary said.

He said Disney employees heard the blast, but added that no one was nearby and there were no injuries. He said there had been no evacuations at the park.

The blast went off just after midnight at the parking lot in the Downtown Disney area. Disney employees heard a loud noise and saw smoke coming out of the Dumpster-type trash container.

Beary said a small fire in the container was quickly put out. "Two end caps" indicating the device might have been a crude pipe bomb were found in it, he said. (Posted 1:05 p.m.)

Sources: 2 doctors among those arrested in UK terror probe; 3rd doctor questioned

LONDON (CNN) -- British investigators are focusing on at least three foreign-born doctors believed to have played a role in the attempted terror attacks in London and Glasgow over the weekend, sources with knowledge of the investigation tell CNN.

Iraqi doctor Bilal Abdulla, 27 -- who is in police custody, one of seven people Scotland Yard says are under arrest -- has been identified as one of the two men who rammed an explosives-laden vehicle into a terminal at Glasgow's airport on Saturday, one of the sources said. British authorities believe those two men are the same ones who parked two car bombs in central London on Friday.

In addition to Abdulla, police Saturday arrested Dr. Mohammed Asha, a Jordanian physician who moved to England two years ago, according to a source with knowledge of the investigation. His house in Newcastle-under-Lyme in North Staffordshire has been searched and neighbors there told CNN's Matthew Chance that another doctor of South Asian descent is also part of the probe.

Police have sealed off the home of the unnamed doctor and his wife, which is about two miles from Asher's home in Newcastle-on-Stratford. Forensic teams are searching the house, where the doctor and his wife have lived for about a year, neighbors said. (Posted 12:56 p.m.)

U.S. soldier charged with murder

BAGHDAD (CNN) -- A U.S. soldier has been charged with murder in the death of an Iraq citizen, the U.S. military said Monday.

He is the third soldier charged with murder in the "alleged unjustified killings" of three people during recent military operations in Iraq, the military said in a news release.

The killings took place between April and June of this year "in the vicinity of" Iskandariya, which is south of Baghdad, it said.

"Sgt. Evan Vela, of Phoenix, Idaho, is charged with one specification alleging premeditated murder, one specification alleging he wrongfully placed a weapon with the remains of a deceased Iraqi, one specification of making a false official statement, and one specification alleging obstruction of justice," the news release said. (Posted 12:36 p.m.)

Pentagon approves huge armored vehicle increase

WASHINGTON (CNN)-- The Army has confirmed it plans to buy up to 17,770 new mine-resistant ambush-protected vehicles (MRAP), a new generation of armored vehicles the military believes offers the best protection against roadside bombs. The decision was first reported in USA Today.

The Army hopes to have the majority of the vehicles in place, mostly in Iraq and Afghanistan, by 2008.

The Pentagon's Joint Requirements Oversight Council, a group of senior officials, approved the Army plan last week. It is a significant increase from the 2,500 MRAPs the Army originally planned to buy.

But the major challenge remains developing the production capacity in industry to make the vehicles quickly. Defense Secretary Robert Gates has made MRAP production a top priority. --From CNN Pentagon Correspondent Barbara Starr (Posted 12:31 p.m.)

Attack on Spanish tour bus kills Spanish tourists, Yemeni guides

MADRID (CNN) -- An attack on a tourist bus in Yemen Monday killed six Spanish visitors and wounded seven other Spaniards, two Spanish government officials told CNN.

Details were sketchy and reports conflicted. Muhy Aldhadabi, the first deputy minister of the Yemen Foreign Ministry, confirmed five Spanish deaths and said five Yemenis, most of them guides, were also killed.

He said a total of 13 people were injured, three of them in critical condition.

Aldhadabi said the incident occurred around 5:30 p.m. at Marib in eastern Yemen, near the Throne of Balqis, an archeological site.

Preliminary indications were that a car driven by a suicide bomber cause the explosion, apparently driving into a tourist convoy. --From CNN Madrid Bureau Chief Al Goodman (Posted 12:28 p.m.)

Appeals court rejects Libby's bid for bail

WASHINGTON (CNN) -- A federal appeals court Monday rejected former White House aide Lewis "Scooter" Libby's request to remain free on bond while appealing his March conviction on perjury and obstruction of justice charges.

A three-judge panel of the District of Columbia Court of Appeals found Libby has not raised a "substantial question" for appellate judges to consider while considering his case. A court official told CNN that Libby's attorneys may appeal Monday's ruling to the U.S. Supreme Court.

Libby, once Vice President Dick Cheney's chief of staff, faces a 30-month prison term after being convicted of perjury, obstruction of justice and lying to federal agents probing the 2003 leak of CIA agent Valerie Plame's identity.

Barring further appeals, Libby's term will start when the U.S. Bureau of Prisons decides where he will serve his time and sets a date for him to surrender. ^ -- CNN's Paul Courson contributed to this report. (Posted 12:25 p.m.)

Attack on Spanish tour bus kills six, wounds seven in Yemen

MADRID (CNN) - An attack on a tourist bus in Yemen Monday killed six Spanish visitors and wounded seven other Spaniards, two Spanish government officials told CNN.

They said they did not immediately have more details of the attack.

News services reported that a car bomb struck a tourist convoy at an ancient temple in northeast Yemen.

Spanish Foreign Minister Miguel Angel Moratinos was due to make a public statement about the attack later on Monday. Spain has a small embassy staff in Yemen, the officials said. --From CNN Madrid Bureau Chief Al Goodman (Posted 12:20 p.m.)

Source: Iraqi doctor one of the UK terror suspects

LONDON (CNN) -- Iraqi doctor Bilal Abdulla has been identified as one of the two suspects in Saturday's attack on Glasgow's airport, a source with knowledge of the investigation told CNN Monday.

The two men have been linked to the car bombs found in London on Friday. The other suspect is hospitalized with serious burns.

Five others -- including a Jordanian-educated doctor -- have been arrested in connection with the investigation. (Posted 12:03 p.m.)

British bomb squad conducts controlled explosions at Glasgow area hospital

GLASGOW, Scotland (CNN) -- A British bomb disposal unit Monday performed at least two controlled explosions on a suspicious device at the Royal Alexandra Hospital, where one of the suspects in Saturday's Glasgow airport attack is being treated.

A CNN crew stationed at the hospital in the Paisley area of Glasgow heard two blasts, which occurred about an hour after a bomb disposal truck was spotted outside the medical facility.

It is not clear what prompted the alert. A road around the hospital has been blocked and some staff members have been evacuated.

The hospital is treating one of the bomb suspects. He is in critical condition with severe burns. Sources say one of the two suspects behind the Glasgow attack works as a doctor at Royal Alexandra, although it is not clear which one. (Posted 10:57 a.m.)

Police searching hospital tied to doctors suspected in attempted terror attacks

GLASGOW, Scotland (CNN) -- British authorities Monday searched an area of Royal Alexandra Hospital where two doctors suspected in the London and Glasgow terror incidents of the past few days have accommodations. They later brought in a bomb-disposal vehicle outside the medical facility and closed off the main road near the hospital.

On Sunday -- for reasons that are still unclear -- police conducted a controlled explosion of a vehicle in the hospital's parking lot. Police said there was no indication the vehicle contained any explosives.

One of the men who was severely burned in the attack on Glasgow's airport is in critical condition at the hospital, where security has been increased, police said.

Shortly after the suspect was admitted following Saturday's attack, police confiscated a suspicious item from his body and called for a partial evacuation of the hospital. Police later said the device was not believed to be an explosive. (Posted 10:51 p.m.)

Chertoff: Al Qaeda increased activity seen, but nothing suggesting specific plot

(CNN) -- The United States has seen increased activity by al Qaeda and knows the group wants to launch a big attack against the United States, but has seen nothing about a specific plot, Homeland Security chief Michael Chertoff said Monday.

He also said the fact that attacks have occurred in the summer in the past is causing the United States to be extra vigilant.

"I'm not going to talk about specific documents or intelligence, but I can say to you things I frankly have said publicly for some period of time. We know al Qaeda is still very interested in carrying out attacks against the United States and western Europe," Chertoff told CNN's American Morning.

"We know that there have been an increase in public statements by al Qaeda leaders recently which suggested they are raising some of their profile, and we know traditionally the attacks that they plan are very significant and intended to cause a huge amount of damage, as witness the airline plot of last August which, had it been successful, would have resulted in the detonation of bombs on multiple airliners.

"Finally, I would say we've seen, over the past two summers and now this summer, an attack in England. All of those things put together do cause us to be concerned going into the summer but we do not have any specific information about a particular attack at this point." (posted 9:22 a.m.)

Security sources: 2 suspects behind Glasgow attack believed to have planted car bombs in London

LONDON (CNN) -- British authorities focused Monday on a new line of inquiry -- that the two men suspected of ramming an explosives-laden vehicle into Glasgow's airport on Saturday are the same suspects who parked two car bombs in central London a day earlier, security sources told CNN.

In addition, police arrested two more people near Glasgow late Sunday, bringing the total number arrested in the wide-ranging terror probe to seven.

Those include the two men suspected of carrying out the terror plot, who were being tracked by police even before the attack on Glasgow's airport, sources told CNN's Nic Robertson.

One of the men was severely burned in the attack and is in critical condition at Royal Alexandra Hospital near Glasgow, police said. The woman who owns his rental house told Robertson the man is a doctor.

No one else was seriously hurt in Saturday's incident at Glasgow. Police said the car bombs in London -- which were packed with fuel and nails -- could have killed hundreds if they had been set off.

British police and security sources told CNN that they believe the two car bombs found in London on Friday were set to be remotely triggered, possibly by mobile phones, but failed to detonate. (Posted 9:03 a.m.)

Reports: Jordanian-educated doctor one of 7 arrested in UK terror probe

LONDON (CNN) -- One of the seven people arrested by British authorities investigating attempted terror attacks in Glasgow and London is Dr. Mohammed Asha, a Jordanian-educated physician who moved to England with his family two years ago, according to British media reports and a source in Jordan.

Asha, 26, was picked up late Saturday on the M6 in the Cheshire area of northern England in a dramatic raid, according to the British Press Association, citing police sources. (Posted 9 a.m.)

Sources: 2 more arrests in UK terror probe

HOUSTON, Scotland (CNN) -- British police Monday arrested two more people as part of their investigation into failed terror attacks in Glasgow and London that have put the country on its highest state of alert, sources told CNN's Nic Robertson.

The two were arrested in the Glasgow area, the sources said.

That brings the total number of people arrested to seven. (Posted 7:07 a.m.)

Security sources: Two suspects behind Glasgow attack believed to have planted car bombs in London

LONDON (CNN) -- British authorities focused Monday on a new line of inquiry -- that the two men suspected of ramming an explosives-laden vehicle into Glasgow's airport on Saturday are the same suspects who parked two car bombs in central London a day earlier, security sources told CNN.

Other than one suspect who was severly burned, no one was seriously hurt in Saturday's incident at Glasgow. The car bombs in London did not detonate.

Police investigating the car bombs in London were tracking the two men even before the attack on Glasgow's airport, sources told CNN.

One of the suspects, who is in critical condition at Royal Alexandra Hospital near Glasgow, is a doctor at the hospital where he is being treated for severe burns, according to the woman who owns his rental house.

It is believed that he shared the house on Neuk Crescent Street in the small Scottish village of Houston, about two miles from Glasgow's airport, with the other suspect who is in police custody.

The agency that rented the property to the two men said police called one of the agency's employees about 15 minutes before Saturday's Glasgow airport attack, asking about a mobile phone number.

British police and security sources told CNN that they believe the two car bombs found in London on Friday were set to be remotely triggered, possibly by mobile phones, but failed to detonate.

Two hours after the attack on Glasgow's airport, police called back the same person at the property rental agency and asked about the two suspects, and the employee told police where they lived. A short time later, police descended on a three-bedroom rental house on Neuk Crescent Street.

A neighbor told CNN that two men who appeared to be of Asian origin moved into the house about four months ago, but they kept to themselves. -- From CNN's Paula Newton and Nic Robertson

5 U.S. troops killed on Sunday

BAGHDAD (CNN) -- Four U.S. soldiers and a Marine were killed Sunday during separate combat operations in Baghdad and Anbar province, west of the Iraqi capital, according to the U.S. military.

Two of the soldiers and the Marine -- all assigned to the Marine Corps' Multi National Force-West -- were killed in Anbar. No other details were released.

The other two soldiers were killed in separate attacks in the Baghdad area.

One was killed by gunfire in an ambush that followed a roadside bomb attack on his vehicle on the west side of the Iraqi capital. The attack also wounded two Iraqi police officers, the U.S. command in Baghdad reported. The second was killed when his patrol came under fire in a southern district of the city.

Their deaths bring the American death toll in Iraq to 3,582. (Posted 6:10 a.m.)

Embassy official: U.S. diplomat found dead in Cyprus

ATHENS (CNN) -- The U.S. Embassy's top military official in Cyprus has been found dead in a wooded area north of Nicosia, the island's capital, an embassy official said Monday.

The senior official, speaking on condition of anonymity, told CNN that police had located the body of Lt. Col. Thomas Mooney, the embassy's military attache, in the Lefka region, but refused to elaborate.

"We are waiting for additional information before making any official announcement," the official said.

Mooney, 45, disappeared on Thursday after leaving the embassy to return to his residence.

The embassy had posted photos of Mooney and his car on its Web site, urging anyone with information to contact local authorities. --From Journalist Anthee Carassava (Posted 5:30 a.m.)

Coalition raids net 10 suspected terrorists in northern Iraq

BAGHDAD (CNN) -- U.S.-led coalition forces detained 10 suspected terrorists in raids north of Baghdad early Monday, a U.S. military statement said.

In Mosul, coalition forces captured "an alleged terrorist operative sent by al Qaeda leaders in Syria to settle leadership disputes within the network," the military said. Five other suspected terrorists were also detained in the north city.

"Al Qaeda's network in Mosul is showing signs of great stress, and we will continue to target the leaders and operatives there to ensure a safe future for the people of Iraq," said Lt. Col. Christopher Garver, a U.S. military spokesman.

West of Taji, coalition forces detained four people suspected of selling rockets and protective armored vest to al Qaeda in Iraq operatives. (Posted 4:25 a.m.)

Palestinian militia member dies in clash with Israeli forces

JERUSALEM (CNN) -- A Palestinian man died early Monday in a West Bank shootout between Israeli forces and Palestinian militia members in the Jenin refugee camp, authorities sources said.

According to Palestinian security sources, Israeli troops entered the camp around 2 a.m. and exchanged fire with members of the Al Aqsa Martyrs Brigades, the armed wing of Fatah. Palestinian sources said Fadi abu Hija, 24, was killed in the clash.

In their account of the incident, an Israeli army spokeswoman said Israeli forces identified an armed man at the camp before shooting and killing him. -- CNN's Shira Medding contributed to this story. (Posted 4:20 a.m.)

Israel transfers millions to new Palestinian government

JERUSALEM (CNN) -- Israel has transferred more than $100 million to the government of Palestinian Prime Minister Salam Fayyad, a spokesman in the Israeli prime minister's office said Monday.

An initial payment of about $118 million (500 million shekels) in previously withheld taxes was shifted to the new Palestinian government on Sunday, with another $472 million (2 billion shekels) pending.

Israeli Prime Minister Ehud Olmert previously announced Israel would unfreeze Palestinian tax funds.

All those funds were withheld after Hamas took over the Palestinian government following elections last year. Hamas has carried out numerous terrorist attacks, and the United States and Israel list it as a terrorist organization.

Palestinian President Mahmoud Abbas dissolved the Palestinian government that included Hamas following the group's takeover of Gaza last month. But Fatah now exerts control only over Palestinian life in the West Bank.

Fatah accepts Israel's right to exist and renounces terror, so it has the support of the United States, the European Union, and U.N. leaders. The release of the funds is seen as a move to boost Fatah. -- CNN's Shira Medding contributed to this report. (Posted 4:20 a.m.)

Iraqi security forces recover 14 bodies

BAGHDAD (CNN) -- Iraqi security forces on Sunday recovered the bodies of 14 people in at least six locations, all of them apparently victims of sectarian violence, officials said Monday.

All of the victims had been shot, most of them repeatedly, an official with the Iraqi Interior Ministry said Monday.

On Saturday, the Interior Ministry said 1,227 Iraqi civilians were killed in violence largely attributed to sectarian strife across the country in June, with 563 bodies recovered by Iraqi security forces in Baghdad. -- CNN's Mohammed Tawfeeq contributed to this story. (Posted 2:55 a.m.) E-mail to a friend