The American State Department said that bilateral cooperation with Serbia in the fight against terrorism is very positive.

The part of the State Departments report related to Serbia stated that the Serbian customs administration, police, border police, Security Information Agency and other security services have continued to improve cooperation within the government.

The European Commission (EC) reported on the economic situation in Kosovo.

It stated that the agreement between Pritina and the International Monetary Fund (IMF) and the investigations into financial corruption were the most important steps taken recently as far as Kosovos economy is concerned.

Pakistan is bracing itself for more flooding described as imminent and extreme in the south of the country.

More than half a million people in Sind province have been moved to safer areas.

Russia says it is dissatisfied with the United States' fulfillment of its obligations according to their arms-reduction treaty.

RIA-Novosti reports Russia's Foreign Ministry said Saturday the U.S. has failed to provide assurances that some of its former nuclear missile launchers and bombers, now converted to accommodate conventional weapons, could not be retrofitted to again use nuclear arms.

It took less than 24 hours for the commemoration plaque for Serb refugees from Croatia in Knin to be removed.

The Croatian Initiative of Young People for Human Rights stated that the plaque dedicated to Serb refugees forced out of Croatia during operation Storm has already been removed, less than a day after its activists put it up.

Russian NATO representative Dmitry Rogozin said that NATO has a double standard towards the situations in Georgia and Kosovo.

He said that NATO supports the territorial integrity of Georgia but not Serbia.

Daily Blic writes that Fiat and its cooperators would be providing new jobs for 2,000 people next year in Kragujevac.

Company managers from the human relations department met with officials of the Kragujevac branch of the National Employment Service and agreed that the preparations for hiring new workers would begin in September.

Analyst Nexhmedin Spahiu said that there is no decentralization in northern Kosovo because Pritina has no access to the region.

As long as Belgrade continues behaving like it is now, there will be nothing of that process, he said.

Kosovo police found four cows that there stolen a month ago from two villages in the municipality of Kurumlija in the Kosovo village of Dubnica.

The cows were stolen from two families in the villages of Merdare and Matarova in southern Serbia.

Serbian Renewal Movement (SPO) leader Vuk Drakovi said that Serbia needs to change its Kosovo strategy and its resolution.

He told B92 that Kosovo has not been a part of the Serbian state for ten years and that the people who are leading the country and its policies must accept reality.

President Boris Tadi thanked Bulgarian Prime Minister Boyko Borisov for the support his country has been giving Serbia in its European integrations.

Tadi thanked Bulgaria for the quick ratification of the Stabilization and Association Agreement (SAA) between Serbia and the EU, adding that Bulgaria has been giving Serbia honest support on its road to the EU.

Air pollution in Moscow has surged to up to five times normal levels as the Russian capital continues to suffocate under a cloud of acrid smoke from wildfires.

Even indoors some are wearing face-masks as health officials told people not to venture out and to avoid physical exertion, so bad is the smog.

Eight foreigners and two Afghans have been found shot dead next to abandoned, bullet-riddled vehicles in north-eastern Afghanistan, officials say.

The dead foreigners are believed to be six Americans, one Briton and a German, who worked for an international charity providing eye care and medical help.

Croatian member of the Bosnia-Herzegovina Presidency eljko Komi said that the country should have only one president in the future.

He told a Sarajevo daily that constitutional changes are needed after the coming elections in October.

Border police at the railway border crossing with Montenegro seized a large amount of cigarettes with the help of local Prijepolje police.

According to the statement, during a search of the international train traveling from Bar to Belgrade, 1,497 cartons of cigarettes with no excise stamps were found in the ceiling of one of the train compartments.

Balkans expert in the London School of Economy James Ker-Lindsay said that Serbias demand for dialogue is the most logical way to a Kosovo solution.

He said that Kosovo has a completely unclear and unresolved status, because there is no international legitimacy, and on the other side, Serbia cannot move on until the issue is resolved.

The opposition Serb Progressive Party (SNS) is concerned that the country's European integrations.

The party also worries about economic aid and donations that might be halted due to Serbia's hastened resolution on Kosovo, it was heard in Belgrade on Friday.

Iraq is interested in a wide array of products of the Serbian defense industry, said Defense Minister Dragan utanovac after his visit to Iraq on Thursday.

Iraqis are also interested in contracting Serbian metal and engineering companies on major infrastructure projects, said the minister.

Incidents were reported as fans of a controversial Croat singer gathered on Thursday to celebrate the anniversary of Operation Storm.

A group of Marko Perkovi aka Thompson fans, gathered in his native village of avoglava, threw stones at a Croatian national television HRT crew, who escaped without injuries.