German Chancellor Helmut Kohl and President of the Bundesbank Hans Tietmeyer this week both insisted that economic targets set down in the Maastricht treaty must be strictly adhered to if European economic union is to proceed. This comes in the face of increased opposition throughout Europe to the austerity necessary to meet these targets.

Turkey and Cuba today signed a trade, economic, and industrial agreement granting each other most-favored nation status. This clear affront to U.S. foreign policy differs from Turkey's recent agreements with Iraq and Iran, which could be justified as being regionally pragmatic. Turkey has now made a point of openly opposing U.S. interests.

Representatives of fourteen countries surrounding the Indian Ocean basin are meeting in Mauritius on September 9 and 10 to establish a new regional economic and trade organization.

Indonesia has scheduled the largest military exercise in its history for September 8 to 18, to be preceded by a simulation exercise from September 2 to 7. The maneuvers, which will involve some 20,000 troops, 50 ships and 40 aircraft, will be held around the disputed Natuna Islands in the South China Sea.

In a Jerusalem Post interview today, Japanese Foreign Minister Yukihiko Ikeda rejected the U.S. second-party boycott against Iran. He argued that, until there is clear and absolute evidence linking Tehran with terrorism, Japan will continue to maintain commercial relations with Iran.

In a meeting today with the Azerbaijani Foreign Minister Hassan Hassanov, Iranian Foreign Minister Ali Akbar Velayati expressed Iran's desire to expand relations with Azerbaijan and the other former Soviet Central Asian republics. Hassanov, in turn, stated Azerbaijan's intentions to develop the closest possible relations with Iran.

India is currently engaged in negotiations with Israel for a comprehensive upgrade program for India's Army, Navy, and Air Force. The program is to include upgrade of existing Indian weapons systems and production facilities, as well as the purchase of new Israeli systems.

The commander of the Russian Federal Border Service troops in Tajikistan has warned that Russian troops may begin making preemptive strikes against Tajik rebel forces in Afghanistan.

The Libyan Air Force this month attacked bases of the militant Islamic opposition in the mountains of eastern Libya. The operation, carried out under the guise of a live fire exercise and "anti drug smuggling" operations, was part of stepped up activity by Colonel Khaddafi's regime against recently intensified rebel attacks.

Pakistan and Iran have signed contracts for the joint construction of a 120,000 barrels per day oil refinery in Pakistan's Baluchistan Province and for a pipeline to bring Iranian natural gas into Pakistan.