After being balked by fiscal constraints and U.S. pressure in their attempt to purchase Ukraine's unfinished Kuznetsov Class attack carrier, China has offered the services of their skilled ship-breakers to Ukraine to dismantle it. Ukraine is reportedly likely to accept the offer.

China has just opened its third rail cargo link to the west, this one passing through Kazakhstan.

Russian reports are warning of increased ethnic tensions in southern Georgia, where enclaves of ethnic Armenians are openly and vigorously challenging the Tbilisi regime. Of particular concern to the Armenian separatists is a planned pipeline for Azerbaijani oil which is to run through the region.

Moldova's Cabinet of Ministers has been forced to ban the export of grain and bread, as poor harvests have left the state grain reserve with just over half of its required stockpile. With the end of the harvest only days away, the government has been issuing advance payments and subsidies in an attempt to motivate farmers to meet the shortfall.

In the midst of the debate over NATO expansion, and as the Russians continue to re-exert influence in their former republics, the United States has just upped the ante by lifting the ban on military trade with Ukraine.

Iran is continuing its diplomatic blitz of the CIS, expanding its ties with the Central Asian and Caucasian republics and even extending diplomatic initiatives to Belarus. Iranian diplomats recently signed business, trade, and customs agreements with Uzbekistan, Turkmenistan, and Azerbaijan.

The Headquarters of the Group of Russian Forces in the Transcaucasus has drawn up plans officially for the "special protection of communications on the territory of Georgia and Armenia," but which read like a border regime.

Bolivia has suffered a setback in its attempt to gain access to the Pacific Ocean across Chile. An attempt at a compromise by a Chilean legislator was rejected by the Chilean government, while Peru, which Bolivia was attempting to entice into supporting its position, rejecting the Bolivian initiative.

At a conference including Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama, Taiwan and the seven Central American nations agreed to form a regional organization. Obviously, the plan will draw strong opposition from China. The seven nations also reaffirmed their support for Taiwan's membership in the United Nations.

Oil traffic through the Panama canal increased by 30% during recent months. The increase reflects a fundamental change in American oil sources. Oil imports from Latin American have been soaring — particularly to the West Coast of the United States.