The IMF has announced that it will neither hold meetings to discuss the Pakistani budget, nor release the third payment of a $600 million standby loan, until the Pakistani government solves its budget chaos. Prime Minister Bhutto's government recently raised taxes, only to then make substantial cuts after negotiations with interest groups.

Vice Defense Minister Naoaki Murata, the highest ranking Japanese military official to visit China since before Japan ceased military relations with China in 1989, began a series of talks this week in Beijing aimed at the resumption and development of military relations.

Iranian Foreign Affairs Minister Ali Akbar Velayati announced this week, upon his return from meetings in Turkmenistan, that Iran, Armenia, Turkmenistan and Ukraine would be increasing their economic ties. Velayati also announced forthcoming conferences to discuss the conflict in Afghanistan and the management of Caspian Sea resources.

Greek Prime Minister Costas Simitis and his Defense Minister Yerasimos Arsenis held meetings over the weekend in Cyprus with Cypriot President Glavkos Kliridhis. Responding to two recent clashes between Greek Cypriots and Turkish troops in Cyprus's U.N.

Troops of the Serbian Ministry of Internal Affairs have been impounding oil tankers from Montenegro, in what is being called an "oil war" against the smaller half of the Yugoslav Federation.

Syrian army maneuvers in the eastern Bekaa Valley over the last few days have contributed to the sudden escalation in tension between Syria, Lebanon, and Israel.

Turkey has signed a deal in Baghdad to build a pipeline for the import of Iraqi natural gas. This comes on top of their recent deal to construct a pipeline for Iranian natural gas. The willingness of the new Turkish government of Prime Minister Necmettin Erbakan to undertake these large projects in the face of U.S.

Poland's Defense Minister admitted in a recent press conference that international talks have been, and continue to be, held on the potential export of Polish tanks to Bosnia.

Hungarian minority parties in Slovakia and Romania have met to discuss the consequences of the Hungarian government's recent compromises in a draft treaty with Romania.

Peruvian President Alberto Fujimori has extended a state of emergency covering a third of the country in response to a wave of attacks by Shining Path guerillas. The guerillas have launched frequent, coordinated, and high profile acts of violence over the last few weeks in Lima and throughout the provinces.