NATION/WORLD TOASTY WARM SANDWICHES 300 SOUTH STATE (Corner of State and liberty) N. Korea: U.S. not pursuing diplomacy SEOUL, South Korea (AP) - North Korea warned yesterday that its sover- eignty is at stake in the standoff over its nuclear development, while the U.S. ambassador in South Korea said the North has an "irrational fear" of the United States. North Korea's official Rodong Sin- mun newspaper said Washington's rejec- tion of direct talks was "little short of refusing to solve the nuclear issue." Washington wants to resolve the issue through talks involving othercountries, but North Korea insists the dispute is only with the United States and wants a nonaggression treaty with Washington. "The nuclear issue on the Korean Peninsula is a very crucial problem relat- ed to who beats whom," the North Kore- an newspaper said. "It will decide whether the DPRK's sovereignty will be trampled down by the U.S. or protected" DPRK is short for the North's official name, the Democratic People's Republic of Korea. North Korea accuses the United States of inciting the tension over its sus- pected nuclear weapons programs as a pretext for an invasion. In Seoul, U.S. Ambassador Thomas Hubbard said North Korea's actions posed a threat to worldwide stability because of the threat of nuclear prolifer- ation. He repeated the Bush administra- tion's stance that Washington wants to solve the nuclear dispute peacefully, but all options are open. "They seem to be sustained only by an irrational fear of the United States, and an equally irrational adulation of their own leadership, both of which they have been taught for decades in com- plete isolation from the rest of the world," Hubbard said. A South Korean presidential adviser said North Korea has shown no signs of reactivating a nuclear reprocessing facil- ity that could enable the production of bombs within months. There are concerns that North Korea's next step in the standoff will be to reacti- vate the reprocessing plant in a bid to pressure Washington into negotiations. U.S. officials say the facility could pro- duce enough weapons-grade plutonium from spent fuel rods to make several more nuclear bombs. "North Korea is not showing any movement to reactivate its nuclear reprocessing lab and test-fire a ballis- tic missile," said Ra Jong-il, senior security adviser to President Roh Moo-hyun. LNo cause found yet for myster illness The Associated Press A handful of suspected cases of a deadly flu-like illness surfaced in new spots around the globe yesterday, but medical experts said there "should not be panic" because the spread is not as aggressive as most forms of influenza. There also were no new fatalities since the nine first reported when the World Health Organization issued its unusual global alert over the weekend. WHO officials said they were investi- gating suspicious cases in England, France, Israel, Slovenia and Australia, all of which previously had none. Most of the 167 cases that have appeared in the past three weeks are health workers in Hong Kong, Viet- nam and Singapore. China said 300 people had what appeared to be the same illness in an outbreak that began last November in Guangdong province. In the United States, the Centers for Disease Control and Prevention was skeptical that the four cases it was u." looking into would be verified as ''severe acute respiratory syndrome, or SARS, the name given the unidenti- fied illness. The CDC already has ruled out 10 other suspicious cases. Disease investigators said it could ' take weeks to determine the cause of the mysterious outbreak. WHO officials also said that for the first time, China was allowing teams of experts into the country to take a closer look at its own earlier outbreak, which killed five people before it was brought under control. WHO investi- gators should be there by week's end, the U.N. agency said. Experts believe that the most likely explanation for the respiratory illness is an exotic virus or - the mos't NEWS IN BRIEF,. I :W, Ill. HEADLINES FROM AROUND THE WORLD JERUSALEM a ..3. ,,.w,^rr .. k Lawmakers reject Arafat proposal The Palestinian parliament yesterday rebuffed Yasser Arafat's attempt to dilute the authority of a future prime minister, keeping reforms sought by Washington alive for now In the Gaza Strip, 10 Palestinians, including a 4-year-old girl, were killed in two Israeli raids. The confrontation between the increasingly assertive lawmakers and Arafat, 73, is being closely watched by international Mideast mediators. President Bush said last week that a prime minister with real powers must be installed before a U.S.-backed three-year "road map" toward Palestinian statehood can be unveiled. Parliament rejected Arafat's demand that he retain a say in appointing Cabinet ministers and he summoned rebellious legislators afterward in hopes of changing their minds before a final vote today. Arafat's Fatah party has a majority in the 88-member parliament. Attempts to restart Middle East diplomacy could be derailed if Washington deter- mines that the new prime minister does not have sufficient authority and is depend- ent on Arafat. Last week, parliament approved a bill defining the powers of the prime minister. It gave the premier the authority to form a Cabinet and supervise the work of the ministers, while Arafat was given continued control over peace talks with Israel and command of the security forces. WASHINGTON FBI keeps an eye on Iraqis living in U.S. The FBI is closely watching dozens of Iraqis and others living in the United States in a wide-ranging security plan meant to deter any reprisals for a U.S. invasion. Officials are considering raising the nation's terror risk alert level from yellow to orange. Some of those under FBI watch have been identified through ongoing inter- views of up to 50,000 Iraqis. Others are suspected of having links to al-Qaida and other terror groups, possibly including the Hamas and Hezbollah organiza- tions blamed for suicide bombings in Israel. The interviews with Iraqis are "designed to obtain any information that could be of use to the United States during a possible conflict," Jeffrey Lampinski, special agent in charge of the FBI's Philadelphia field office, said yesterday. The surveillance is part of a broader plan by the federal government, along with state and local law enforcement officials, to raise the nation's level of counterterrorism vigilance as the prospects for war increased. Many thousands of law enforcers are involved. WASHINGTON Blood banks begin new germ-testing Ask about blood safety and most people think AIDS or other viruses that today are incredibly rare in transfu- sions. Bacterial contamination of blood poses a much bigger risk - sickening and killing dozens of people a year - yet germ-tainted transfusions get little attention. Now blood banks are starting to adopt new anti-germ technology as transfusion specialists urge the govern- ment to tackle the problem. "Although the public is worried about HIV or West Nile virus, we may have to occasionally stand up and say in public or to a newspaper reporter, 'That's not what we should be worrying about,"' blood-safety specialist Dr. James AuBu- chon of Dartmouth Medical School told a recent meeting of the government's top blood advisers. "Share with the public what the real risks are." Topping that list: germs. They sneak into donated blood mostly from skin. BOSTON Hormone pills found to have placebo effect Long-term use of hormone replace- ment therapy, already shown to be bad for older women's physical health, is found to be no panacea for their memory or mental outlook either. In a challenge to popular belief, a large new study finds that estrogen and progestin pills fail to make older women feel better by improving their memory, sleep and sex lives. The new results suggest this is nothing more than a placebo effect. The researchers conclude the pills are still an effective treatment for short- term relief from hot flashes and night sweats, but nothing else. "The average woman will not expe- rience an improvement in her quality of life by taking this pill," said Jen- nifer Hays of Baylor College of Med- icine, a psychologist who directed the analysis. WASHINGTON Tribes exempt from campaign finance laws In their rivalry with other gaming interests, Indian tribes now have an advantage in political giving - they're exempt from the overall donor limits in the nation's new cam- paign law that took effect this elec- tion cycle. The tribes, which last election spread around $7 million in federal donations, do not have to abide by the overall individual donor limit of $95,000 in contributions to candi- dates, political action committees and parties. And unlike companies, the tribes can give donations directly from their treasuries. While unlimited-size donations known as soft money are now outlawed for everyone, including the tribes, the campaign finance rules' special treat- ment of Indian nations has some com- petitors crying foul. - Compiled from Daily wire reports. i1 The Michigan Daily (ISSN 0745-967) is published Monday through Friday during the fall and winter terms by students at the University of Michigan. One copy is available free of charge to all readers. Additional copies may be picked up at the Daily's office for $2. Subscriptions for fall term, starting in September, via U.S. mail are $105. Winter term (January through April) is $110, yearlong (September through April) is $190. University affiliates are subject to a reduced subscription rate. On-campus subscriptions for fall term are $35. Subscrip- tions must be prepaid. The Michigan Daily is a member of The Associated Press and The Associated Collegiate Press. ADDRESS: The Michigan Daily, 420 Maynard St., Ann Arbor, Michigan 48109-1327. 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