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FROM THIS EPISODE

After last week saw the worst sectarian violence since the US invasion, talks on forming a unity government in Iraq broke down. Now, a daytime curfew in Iraq has been lifted and the streets of Baghdad and other cities are quiet by current standards, although powerful tensions remain. Iraqi security forces are on high alert, but have been infiltrated by Shiite militias. Sunnis want militias of their own. Are political leaders--or religious clerics--really in charge? Will conflicts that date to the 8th century lead to a civil war? We look at the roots of sectarian hostilities and the potential for violence spreading throughout the Middle East.
  • Making News: EU Gives Palestinian Authority Emergency Funding
    The European Union has announced plans to save the Palestinian Authority from financial collapse, despite the takeover of the PA's parliament by Hamas. The EU will come up with $140 million for what it calls "basic needs" for the next two months. Harvey Morris is Jerusalem Correspondent for the Financial Times.
  • Reporter's Notebook: Will Dubai Port Deal Compromise US Security?
    Dubai Ports World has asked the Bush Administration for a 45-day investigation of plans to take over management of terminals at six US ports. Last week, the White House said that was unnecessary, but today welcomed the proposal. Republicans are among the deal's harshest critics. Democrats see it as a way to outflank the President on national security. Others say the real issue is how safe the ports are. Former Senator Gary Hart chaired the US Commission on National Security.

European Union (EU) unveils ---120 million package for the Palestinians

Financial Times article on EU's emergency funding for Palestinian Authority

Wong's article on Sunnis rejoining Iraqi government talks

Dubai Ports World

New York Times on port deal as liability for GOP

US Committee on Foreign Investment on review of Dubai Ports deal

60 Minutes, Steve Flynn segment on ports deal

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