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Last month, sources told the BBC's Panorama programme that conservative Muslims who teach that Islam is incompatible with Western democracy will be challenged as part of a new approach. A senior Whitehall source said that Muslim leaders who urged separation would be isolated and publicly rejected, even if their comments fell within the law.

The strategy also puts a renewed emphasis on the extreme risks from chemical, biological, radiological and nuclear weapons if they get into the hands of terrorists.

The counter-terrorism document, being published by the Home Office, will go into more detail than ever before, with Ms Smith saying counter-terrorism was "no longer something you can do behind closed doors and in secret". It will reflect intelligence opinion that the biggest threat to the UK comes from al-Qaeda-linked groups and will also take into account recent attacks on hotels in the Indian city of Mumbai. The paper - called Contest Two - will update the Contest strategy developed by the Home Office in 2003, which was later detailed in the Countering International Terrorism document released in 2006. By 2011, Britain will be spending £3.5bn a year on counter-terrorism, the Home Office has said. The number of police working on counter-terrorism has risen to 3,000 from 1,700 in 2003.

Iran rejected the report, saying the US was guilty of double standards. Foreign Minister Manouchehr Mottaki said the US had no right to accuse others in light of its actions at Abu Ghraib and Guantanamo Bay.

The report charges that Iran's involvement in countries like Lebanon, Iraq, Afghanistan and in the Palestinian territories threatens efforts to promote peace, economic stability in the Gulf and democracy.

The report singles out the Quds force, an elite branch of Iran's Revolutionary Guard as the channel through which Iran supports terrorist activities and groups abroad. The report also takes to task Syria, an Iranian ally in the region.

Of equal concern, our correspondent notes, is the advance of al-Qaeda in Pakistan and Afghanistan where terrorist attacks are sharply on the rise while the rest of the world, including Iraq, has seen terrorist attacks decrease. The acting coordinator for counter-terrorism for the state department, Ronald Schlicher, told journalists that al-Qaeda was using border areas of Pakistan to regroup. "Al-Qaeda and al-Qaeda associated networks remain the greatest terrorist threat to the US and its partners," he said.

Mr Schlicher said they were using the Afghan-Pakistan border area "as a safe haven where they can hide, where they can train, where they can communicate with their followers, where they can plot attacks and where they can make plans to send fighters to support the insurgency in Afghanistan".

Washington is worried that the government in Islamabad might collapse, and last week US Secretary of State Hillary Clinton said the Taleban fighters posed an existential threat to Pakistan, which is a nuclear power, our correspondent adds.

The former head of Italian military intelligence, Niccolò Pollari, once said that he would call Mr. Berlusconi as a witness. Mr. Pollari’s lawyers have said that higher-level officials made the decision to cooperate with American intelligence operatives.

According to lawyers for the prosecution, the court deemed inadmissible files that had been seized from the Rome apartment of an Italian intelligence operative, the Italian news media reported. The court also threw out some testimony from an Italian police officer who said he had participated in Mr. Nasr’s seizure at the request of Robert Seldon Lady, who was then the Central Intelligence Agency’s station chief in Milan. But the ruling appeared to admit evidence gathered from wiretaps of intelligence operatives, which the Italian government had filed motions to dismiss.

We feel that Obama must now follow his words with actions.

SPIEGEL: The new US president, who has called your aggressive anti-Israeli remarks "disgusting," has nevertheless spoken of a new beginning in relations with Iran and extended his hand to you. Ahmadinejad: I haven't understood Obama's comments quite that way. I pay attention to what he says today. But that is precisely where I see a lack of something decisive. What leads you to talk about a new beginning? Have there been any changes in American policy? We welcome changes, but they have yet to occur.

We support talks on the basis of fairness and respect. That has always been our position. We are waiting for Obama to announce his plans, so that we can analyze them.

You are aware that we are not the ones who severed relations with America. America cut off relations with us. What do you expect from Iran now?

that could lead to a resumption of diplomatic relations, perhaps even to the reopening of the embassy, which was occupied in 1979, the year of the revolution? Ahmadinejad: We have not received an official request in this regard yet. If this happens, we will take a position on the matter. This is not a question of form. Fundamental changes must take place, to the benefit of all parties. The American government must finally learn lessons from the past.

We do not commit terror, but we are victims of terror. After the revolution, our president and prime minister were killed in a bombing attack in the building adjacent to my office. Our faith forbids us from engaging in terrorism

we have contributed to stabilization in both Afghanistan and Iraq in recent years. While we were making these contributions, the Bush administration accused us of doing the opposite.

For the past 30 years, Germany and other European countries have been under pressure from the Americans not to improve their relations with Tehran. That's what all European statesmen tell us.

His party would also have four other ministers in the cabinet, including national security minister, as well as the post of deputy foreign minister.

Netanyahu has said the current peace talks with the Palestinians will not succeed and that he would rather pursue an "economic peace", by which he means financial investment in the occupied West Bank.

The agreement between Netanyahu and Lieberman gave a taste of the policies that would follow. "Toppling the Hamas government in the Gaza Strip will be an Israeli strategic goal," the agreement said. The new government would act "with determination" to stop rocket fire by militants in Gaza.It also said: "The government will not conduct political negotiations with terrorist organisations or terrorist elements."Settlements are likely to continue to grow – Lieberman himself lives in Nokdim, a settlement south-east of Bethlehem in the occupied West Bank.

Lieberman, 50, a Russian-speaking immigrant born in Moldova, resigned from the government in January last year in protest at the restarting of peace talks with the Palestinians, saying: "Negotiations on the basis of land for peace are a critical mistake ... and will destroy us."He is an unashamed hardliner who campaigned on the promise of a new law aimed at the country's Arab minority which would require Israelis to swear an oath of loyalty to Israel as a Jewish state or lose their citizenship.He also advocates carving out part of the Galilee that is home to Arab Israeli villages and handing it over to Palestinian control, stripping the residents of their Israeli citizenship. Those policies proved popular enough for him to come third at the polls, but the oath of loyalty is thought unlikely to come into law.

He also intends to make Iran the centre of his foreign policy. The agreement said: "Israel will make every effort, especially with regard to the international community, to prevent the nuclear armament of Iran, while emphasising that a nuclear Iran, representing a danger to Israel, countries in the region and the entire free world, is unacceptable."

Riad Malki, the Palestinian foreign minister, said: "We have to declare that sadly there is no partner on the Israeli side to negotiate with."

Lieberman, an immigrant and former nightclub bouncer from former Soviet Moldova, does not talk about Palestinian independence. Instead, his party's vision on the two-state solution states: "Israel needs to explain that the demand for a Palestinian state and the refugees' right of return is a cover for radical Islam's attempt to destroy the State of Israel." Lieberman was a member of the current Israeli government, but walked out in January last year as soon as peace talks restarted with the Palestinians.

Britain, in particular, is critical of Israel's settlements in east Jerusalem and the West Bank, all of which are illegal under international law. But that cause might be harder to argue in future given that the almost 500,000 Israeli settlers include Lieberman and his family, who live in Nokdim, deep inside the West Bank.

Lieberman's main target has been his country's own Arab minority, who make up a fifth of the population, and of whom he has said: "Israel is under a dual terrorist attack, from within and from without. And terrorism from within is always more dangerous than terrorism from without."

It was this campaign, particularly his call for Arabs to swear an oath of loyalty to Israel as a Jewish state, that won him so much support in the elections. He has even suggested that some elected Arab MPs in the Israeli parliament should be tried for treason and then executed.He also appeals to more secular Israelis, arguing in favour of civil marriages, as well as advocating a more presidential style of government.

The report cited two alleged incidents from January 3. In one, it said, after a tank round struck near a house, a father and his two sons -- both younger than 11 -- emerged to look at the damage. "As they exited their home, IDF soldiers shot and killed them (at the entrance to their house), with the daughter witnessing," the report said. In the second, it said, "Israeli soldiers entered a family house in the Zeitoun neighborhood of Gaza City. Standing at the doorstep, they asked the male head of the household to come out and shot him dead, without warning, while he was holding his ID, hands raised up in the air, and then started to fire indiscriminately and without warning into the room where the rest of the family was huddled together. "The eldest son was shouting in vain the word 'Children' in Hebrew to warn the soldiers. The shooting did not stop until everyone was lying on the floor. The mother and four of the brothers, aged 2-12 years, had been wounded, one of them, aged 4, fatally."

The alleged instances occurred during Operation Cast Lead, which was launched December 27 to halt rocket attacks into southern Israel from Gaza and ended January 17 with a cease-fire. The U.N. report called the response by Israel disproportionate. Of the 1,453 people estimated killed in the conflict, 1,440 were Palestinian, including 431 children and 114 women, the report said. The 13 Israelis killed included three civilians and six soldiers killed by Hamas, and four soldiers killed by friendly fire, it said.

The report said the Israeli operation resulted in "a dramatic deterioration of the living conditions of the civilian population." It cited "targeted and indiscriminate" attacks on hospitals and clinics, water and sewage treatment facilities, government buildings, utilities and farming and said the offensive "intensified the already catastrophic humanitarian situation of the Palestinian people." It said Israeli strikes damaged more than 200 schools and left more than 70,000 people homeless. "There are strong and credible reports of war crimes and other violations of international norms," it said, adding that many observers have said war crimes investigations should be undertaken.

Mark Regev, a spokesman for Israeli Prime Minister Ehud Olmert, called the report "another example of the one-sided and unfair attitude of the rapporteur of the Human Rights Council, a council that has been criticized by current and previous secretaries-general for its unbalanced attitudes toward Israel." He added, "The negative fixation on Israel by the council has done a disservice to the issue of human rights internationally as has been attested to by the leading NGO's [nongovernmental organizations] on human rights."

Another report issued Monday also was critical of the IDF. The report from Physicians for Human Rights said the Gaza incursion violated IDF's own code of ethics. The report by the medical group, which shared the 1997 Nobel Peace Prize, cited instances where it said IDF forces did not evacuate injured civilians for days and prevented Palestinian teams from reaching the wounded, and said some of them died as a result. It said 16 Palestinian medical personnel were killed by IDF fire and 25 were wounded during the IDF operation, and accused the IDF of attacking 34 medical centers in violation of the IDF's own "ethical code for fighting terror." In response, the IDF accused Hamas of having used medical vehicles, facilities and uniforms to conceal its members' activity. "Hamas used ambulances to 'rescue' terror activists from the battlefield and used hospitals and medical facilities as hiding places," the Israelis said in a written statement. "Despite this, throughout the fighting, IDF forces were instructed to avoid firing at ambulances, even if they were being used by armed fighters. They were instructed only to shoot if there was fire towards our forces emanating from the direction of the ambulance." Regarding the reported delays in casualty evacuations, "there existed real difficulties in evacuating the injured, due to the roadblocks, booby-trapped roads and dirt mounds placed by the Hamas as well as the considerable damage to the infrastructure," the statement said.

he Israeli daily Haaretz newspaper reported that Israeli soldiers who had finished basic training ordered the shirts, one of which showed a pregnant Arab in the crosshairs of a gun sight with a caption reading "1 Shot 2 Kills." Another showing a small child in a gun's sight was captioned, "The smaller they are, the harder it is." "The examples presented by The Haaretz reporter are not in accordance with IDF values and are simply tasteless," the Israeli military said in a written statement. "This type of humor is unbecoming and should be condemned."

Israeli soldiers said last week that Palestinian civilians were killed and Palestinian property intentionally destroyed during Israel's military campaign in Gaza, according to Haaretz. The IDF has said it is investigating the claims, but its top general expressed skepticism Monday. "I don't believe that soldiers serving in the IDF hurt civilians in cold blood, but we shall wait for the results of the investigation," Lt. Gen. Ashkenazi, the chief of staff, said in a speech. "I tell you that this is a moral and ideological army." He blamed Hamas for choosing "to fight in heavily populated areas. "It (was) a complex atmosphere that includes civilians and we took every measure possible to reduce harm of the innocent," he said, according to an IDF statement.

Pakistan objects to missile strikes by pilotless U.S. drones on militants in Pakistan, saying they violate its sovereignty and are counter-productive in fighting terrorism. Pakistan has also been angered by U.S. accusations elements in its military's Inter-Services Intelligence agency had contact with, or even provided support to, militants.

Pakistan for years used Islamists to further objectives in Afghanistan and Kashmir, which both Pakistan and India claim, but it has denied accusations it has maintained support.

Pakistan's Dawn newspaper said recently a condition would be included in the U.S. aid bill requiring Pakistan to stop support to any person or group aiming to hurt India.

Another condition to be included in the U.S. aid bill, Dawn reported, was that Pakistan ensures access to individuals suspected of involvement in nuclear proliferation.

SPIEGEL: A few weeks ago, you visited New Delhi and said India and Pakistan have done enough damage to each other and that it is time to find a solution. Do you view yourself as as a future ambassador for peace between the two countries? Musharraf: If the Pakistan government wants me and if the Indians also trust me, then I can be of some use.

Musharraf: There are many Indian extremists who have links with extremists in Pakistan. So if the world is serious about combating terrorism, then don't leave India out. Originally, Richard Holbrooke was supposed to be the US special representative for all three countries, but the strong Indian lobby in America prevented that.

Musharraf: No, he is aiming at the right things. He is showing intentions of improving the dialogue with the Muslim world, which is good. He is right when he says that more forces must be deployed in Afghanistan. There is an intention of increasing funding for Pakistan, which is also good. But he also has to understand the reality in Pakistan and I am not sure he does.

Musharraf: One of the realities is that the Indian intelligence service RAW is interfering in our country. For example in Balochistan, our largest province bordering Iran and Afghanistan. One of the most brutal insurgents against our forces, Brahamdagh Bugti ...

Musharraf: ... he is sitting in Kabul, protected by the Afghan government and provided with weapons and money by the Indian intelligence agency RAW. He has his own training camps and sends his fighters to Balochistan where they terrorize people and damage the civil infrastructure. RAW is also interfering in the Swat Valley, I know that. Where do all these Taliban fighters in Swat get their arms and money from? From Afghanistan. The Indian consulates in Jallalabad and Kandahar only exist to be a thorn in the side of Pakistan.

SPIEGEL: Let us talk about the role of the ISI. A short time ago, US newspapers reported that ISI has systematically supported Taliban groups. Is that true? Musharraf: Intelligence always has access to other networks -- this is what Americans did with KGB, this is what ISI also does. You should understand that the army is on board to fight the Taliban and al-Qaida. I have always been against the Taliban. Don't try to lecture us about how we should handle this tactically. I will give you an example: Siraj Haqqani ... SPIEGEL: ... a powerful Taliban commander who is allegedly secretly allied with the ISI. Musharraf: He is the man who has influence over Baitullah Mehsud, a dangerous terrorist, the fiercest commander in South Waiziristan and the murderer of Benazir Bhutto as we know today. Mehsud kidnapped our ambassador in Kabul and our intelligence used Haqqani's influence to get him released. Now, that does not mean that Haqqani is supported by us. The intelligence service is using certain enemies against other enemies. And it is better to tackle them one by one than making them all enemies.

Musharraf: The Americans are hated in the country today. The US drone attacks, which we have been living with for months now, are most unpopular -- there is no doubt about it. Regardless whether they are killing terrorists, Taliban or Al-Qaida-figures or not, there are too many civilian victims. The deployment of drones has to be stopped.

SPIEGEL: The US military eliminated several high-ranking al-Qaida figures through drone attacks. What would be a possible alternative? Musharraf: We have to find a way or method with which the Pakistani army could conduct these attacks itself. There would immediately be much better acceptance amongst the populice and we would cause less collateral damage and there would be fewer civilian victims.

“I’m tired of buying the same horse twice,” Secretary of Defense Robert M. Gates said last week while touring an antimissile site in Alaska that the Bush administration built to demonstrate its preparedness to destroy North Korean missiles headed toward the United States. (So far, the North Koreans have not successfully tested a missile of sufficient range to reach the United States, though there is evidence that they may be preparing for another test of their long-range Taepodong-2 missile.)

In France on Saturday, Mr. Obama referred to the same string of broken deals, telling reporters, “I don’t think there should be an assumption that we will simply continue down a path in which North Korea is constantly destabilizing the region and we just react in the same ways.” He added, “We are not intending to continue a policy of rewarding provocation.”

While Mr. Obama was in the Middle East and Europe last week, several senior officials said the president’s national security team had all but set aside the central assumption that guided American policy toward North Korea over the past 16 years and two presidencies: that the North would be willing to ultimately abandon its small arsenal of nuclear weapons in return for some combination of oil, nuclear power plants, money, food and guarantees that the United States would not topple its government, the world’s last Stalinesque regime.

Now, after examining the still-inconclusive evidence about the results of North Korea’s second nuclear test, the administration has come to different conclusions: that Pyonyang’s top priority is to be recognized as a nuclear state, that it is unwilling to bargain away its weapons and that it sees tests as a way to help sell its nuclear technology.

While Mr. Obama is willing to reopen the six-party talks that Mr. Bush began — the other participants are Japan, South Korea, Russia and China — he has no intention, aides say, of offering new incentives to get the North to fulfill agreements from 1994, 2005 and 2008; all were recently renounced.

While some officials privately acknowledged that they would still like to roll back what one called North Korea’s “rudimentary” nuclear capacity, a more realistic goal is to stop the country from devising a small weapon deliverable on a short-, medium- or long-range missile.

In conducting any interdictions, the United States could risk open confrontation with North Korea. That prospect — and the likelihood of escalating conflict if the North resisted an inspection — is why China has balked at American proposals for a resolution by the United Nations Security Council that would explicitly allow interceptions at sea. A previous Security Council resolution, passed after the North’s first nuclear test, in 2006, allowed interdictions “consistent with international law.” But that term was never defined, and few of the provisions were enforced.

North Korea has repeatedly said it would regard any interdiction as an act of war, and officials in Washington have been trying to find ways to stop the shipments without a conflict. Late last week, James B. Steinberg, the deputy secretary of state, visited Beijing with a delegation of American officials, seeking ideas from China about sanctions, including financial pressure, that might force North Korea to change direction.

“The Chinese face a dilemma that they have always faced,” a senior administration official said. “They don’t want North Korea to become a full nuclear weapons state. But they don’t want to cause the state to collapse.”

To counter the Chinese concern, Mr. Steinberg and his delegation argued to the Chinese that failing to crack down on North Korea would prompt reactions that Beijing would find deeply unsettling, including a greater American military presence in the region and more calls in Japan for that country to develop its own weapons.

North Korea’s restoration to the list would be largely symbolic, because it already faces numerous economic sanctions.