The Wall Street Journal-20080118-World-Wide

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Bush and Congress are racing to agreement on a stimulus plan.

The White House has signaled support for a tax rebate, and Bush indicated he would accept an economic package that didn't include an extension of his tax cuts, removing a potential hurdle to bipartisan backing. Democrats suggested a willingness to suspend pay-go rules and add incentives for business. Bernanke, testifying on Capitol Hill, endorsed short-term measures. Clinton added a $40 billion rebate proposal to her plan.

If a package is approved, it could take several months, perhaps until June, for any rebates to make it into the hands of taxpayers.

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Israel successfully test-fired a long-range missile that may have nuclear capability. The launch drew a defiant response from Ahmadinejad, who accused Bush of inciting confrontation during his Mideast trip this week. Gaza militants fired rockets into southern Israel, and Tel Aviv responded with air and ground fire, killing seven.

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A judge ruled Nevada Democrats can caucus in casinos, possibly boosting Obama, who won the backing of a union representing workers who will use the precincts.

An effort to spur Hispanics to seek citizenship has created a backlog that may linger past November, undercutting Latinos' clout.

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A U.S. commander anticipates a slow drawdown of troops from Iraq after this summer as security improves but said U.S. forces likely will be needed for five to 10 years.

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Chavez's arms buildup is worrisome because Venezuela may hurt efforts at greater stability in Latin America, the U.S.'s top military officer said on a visit to Colombia.

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A lawyer for an ex-CIA official disputed statements by a lawmaker that his client defied orders to preserve interrogation tapes.

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Chertoff is facing pressure from Congress and businesses after his decision to tighten crossing rules along the Canadian border.

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The U.S. abortion rate fell to its lowest level since 1974, to 19.4 per 1,000 women, dropping the total to 1.2 million in 2005, a report said.

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Gates denied any rift between the U.S. and NATO, a day after he was quoted as criticizing allies' military efforts in Afghanistan.

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A British group suspended operations in two Russian cities under pressure from Moscow amid a diplomatic dispute with London.

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A federal judge struck down Texas laws barring out-of-state retailers from shipping wine to consumers, an opinion that goes beyond a Supreme Court ruling.

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The FBI opened a preliminary probe into whether baseball player Miguel Tejada lied to authorities when he denied taking steroids.

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Canada's Foreign Ministry put the U.S. and Israel on a torture watch list, a move likely to embarrass the government, an ally of both.

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A U.N. women's rights panel grilled a Saudi delegation, faulting Riyadh for its patriarchal rules.

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