International

Date: Tue, 30 Dec 2008 20:02:09 -0500
TOP STORIES as of 0900 HKT -- 31 December, 2008

OLMERT: AIRSTRIKES MERELY 'FIRST STAGE' IN GAZA
Israel's fourth day of attacks in Gaza sent the Palestinian
death toll to more than 375 Tuesday as Prime Minister Ehud
Olmert warned that the air offensive marked only the beginning
of its campaign against Hamas militants. However, an Israeli
defense official later said it was considering a proposal for a
two-day truce to allow humanitarian aid into Gaza.

NASA DETAILS FINAL SECONDS FOR COLUMBIA
A NASA report on the last minutes of space shuttle Columbia
cited problems with the crew's helmets, spacesuits and
restraints, which resulted in "lethal trauma" to the seven
astronauts aboard. But the report also acknowledged that "the
breakup of the crew module ... was not survivable by any
currently existing capability."

CONGO GROUPS: 400 MASSACRED ON XMAS DAY
A Catholic aid organization operating in the Democratic Republic
of Congo and the country's government have accused Uganda-based
rebels of massacring 400 civilians during Christmas celebrations
last week.

U.S. DEATHS IN IRAQ DOWN 66 PERCENT IN 2008
American military deaths in Iraq have dropped dramatically this
year, a trend observers attribute to the lasting effects of the
U.S.-led surge offensive, more robust Iraqi security performance
and civilians' disgust with warfare.

BRITAIN FEARED ANNIHILATION BY SOVIETS
Britain feared that it would have been overwhelmed in the event
of a Soviet attack because of the depleted state of its armed
forces, according to secret files made public on Tuesday.

HOLOCAUST 'GREATEST' LOVE STORY A HOAX
Oprah Winfrey once dubbed it the "greatest love story" she had
ever heard: a boy held at a Nazi concentration camp during World
War II and a girl on the outside who tossed him apples to keep
him alive. They eventually married and grew old together.

OBAMA CHIDES SENATE SEAT DECISION
Illinois Gov. Rod Blagojevich is expected Tuesday to name former
Illinois Attorney General Roland Burris to the U.S. Senate, CNN
affiliates the Chicago Tribune and WLS-TV reported, citing
sources familiar with the decision.

EIGHTH BODY FOUND AFTER CANADIAN AVALANCHES
Authorities Tuesday recovered the body of an eighth missing
snowmobiler buried in avalanches in southern British Columbia, a
spokesman for the the Royal Canadian Mounted Police said.

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BUSINESS

GAZPROM MAKES UKRAINE THREAT AS PROFITS SOAR
Russian gas giant Gazprom has reiterated its threat to cut
supplies to Ukraine on January 1 if it does not settle an
outstanding debt. Gazprom chief executive Alexei Miller,
pictured, repeated the threat on the same day the company
announced a 85 percent jump in net profit to $20.8 billion for
the six months ended June 30.

LOANS TO U.S. AUTOMAKERS DELAYED
Emergency loans for two of the nation's top automakers didn't
materialize Monday, but the Treasury Department said it would
finalize the loans in time to meet the needs of the struggling
companies.

KUWAIT SCRAPS $17B CHEMICAL DEAL
Kuwait decides to cancel a deal to form a $17.4 billion
petrochemical joint venture with U.S. company Dow Chemical. The
move may put Dow's plan to use the money to repay a large part
of its $13 billion debt in peril.