London

Britain's Prime Minister Tony Blair reshuffled his government for the first time since his Labour Party took office 15 months ago. His promotions and demotions include the removal of four cabinet ministers and a complete change at the Department of Social Security, where welfare reform, though trumpeted as a top priority, has so far proved disappointingly slow. The new lineup also gives a more strongly pro-European tone to the government which is expected to start preparations for Britain's entry into the single currency, due to go to national referendum after the next election. In domestic terms, the changes also consolidated Blair's own personal power across the government for what could be a more demanding second year.

Geneva

Growing concerns about financial mismanagement spurred the United Nations High Commissioner for Refugees to call representatives from its 23 main donor countries to a meeting in Geneva. This comes after U.N. Secretary-General Kofi Annan asked the commissioner, Sadako Ogata, to respond to an internal report prepared by an international board of auditors that pointed to misleading financial statements, poor accounting practices, and thousands of dollars of irregularities in invoices and expenses. The report, the findings of which were published in the Financial Times, will be presented to the U.N. General Assembly this fall.

Cape Town

The South African Truth and Reconciliation Commission wrapped up its work last week after two-and-a-half years of investigations and hearings. In its final week, it granted amnesty to four men sentenced to 18 years in prison for the murder of U.S. Fulbright scholar Amy Biehl. She was stoned and stabbed to death during a wave of anti-government violence in Cape Town's black townships in 1993. The commission ruled that the attack had been politically, not criminally, motivated. From their home in California, her parents said they hoped the freed men would be able to "live productive lives in a non-violent atmosphere." The Truth and Reconciliation Commission now has until the end of October to present its report to President Nelson Mandela.

Belgrade

Yugoslav President Slobodan Milosevic announced an end to the offensive that reclaimed much of the southern Serb province of Kosovo from ethnic Albanian rebels. He said he was willing to discuss autonomy for Kosovo, but not independence, as the rebels and Albanian politicians have demanded. Beginning on July 24, the Serbian police had driven the Kosovo Liberation Army guerillas out of the capital Malisevo and pushed them off the main highway between Pristina and Pec, which they had blocked since May. Civilians fled Malisevo during the offensive. The U.N. estimates the fighting has created about 20,000 refugees.

Jerusalem

Israeli Prime Minister Benjamin Netanyahu was dealt a significant political setback on July 29 at the hands of the opposition Labor Party, which wanted to protest Netanyahu's handling of the peace process. The opposition managed to drive through a vote calling for the dissolution of parliament and early elections. The vote will not have an immediate outcome--it was just a preliminary reading and three more would be necessary. But it is politically embarrassing because four members from two of Netanyahu's coalition parties voted with the opposition. Later in the week, Israel announced that it is considering releasing 100 Palestinian prisoners as a goodwill gesture to help restart the stalled peace process.

Nairobi

Religious riots brought the central business district to a standstill. They broke out after the Nairobi City Council bulldozed a local landmark--the flea market--and torched about $2 million worth of curios to allow the city's major mosque to expand. The operators of the small-scale curio businesses had been locked in a running legal battle with the mosque. These are the first serious religious riots the city has experienced and underscore growing tensions in the region.

Jiujiang

Forecasts warn of more heavy rain for southern Chinese provinces already inundated with floods that have taken more than 2,500 lives and affected 280 million people along the Yangtze River. The water has passed danger marks--some at record levels of 35 m--and threatens to breach dikes guarding more than half of the river's 5,898-km length. Millions of aid workers have been dispatched by the government to fortify the dikes, rescue stranded victims and treat water-borne diseases. This is the country's worst flood peak since 1954.

Dili

Four hundred Indonesian troops left East Timor, bringing hope that troubles in the heavily contested territory will soon be resolved. Indonesian soldiers shot two demonstrators during independence protests in June. That shook the province, spurring thousands of non-indigenous residents to flee. Indonesian troops have occupied East Timor since they invaded under Suharto's regime in 1975, killing tens of thousands of people. Though President B.J. Habibie has fallen short of granting separatist demands for autonomy, he has offered a degree of independence. Indonesia contends that without a military presence warring factions will erupt among the East Timorese. Eleven thousand soldiers will remain in the province after August.

Tokyo

The Japanese parliament chose Keizo Obuchi as the country's Prime Minister, charged with resuscitating Japan's ailing economy. He immediately named an economic restructuring cabinet to attack the problem. But Obuchi's honeymoon is likely to be short-lived as he faces opposition within parliament, skepticism among younger members of his own Liberal Democratic Party and a perception that he's too much of an old-style politician to implement serious reforms.

Papeete

A 24-year-old from Tahiti is still hoping to represent France in the Miss World pageant in December, despite rejection by pageant organizers. When the Miss France committee--eager to highlight the republic's ethnic diversity--selected Tahitian Hinano Teanotoga, pageant organizer Eric Morley replied, "I'm sorry, we're expecting Miss France, not Miss Tahiti." The French Overseas State Secretary, Jean-Jack Queyranne, has come to her defense, saying, "Tahiti is the main island of French Polynesia and therefore is fully part of the French Republic."

Guatemala City

A Roman Catholic priest has been arrested in the April 26 murder of Guatemalan Bishop Juan Jose Gerardi. The arrest seemed to quell suspicions that the murder was a political hit. The murderer crushed Gerardi's skull with a cement block two days after he presented a report on atrocities during this country's 36-year-long civil war, which ended in 1996. Now the police have arrested Father Mario Orantes, who lived and worked with Gerardi in Guatemala City's San Sebastian parish, along with Margarita Lopez, the parish cook. Orantes, who claims innocence, was charged with murder and jailed pending trial. Prosecutors are not saying whether they suspect he killed the bishop with his own hand. The cook is charged with complicity and was given a pre-trial release. The priest's German shepherd, Baloo, was also seized, apparently because some forensic experts believe Gerardi's body bore dog bites. Baloo's whereabouts have been kept secret. An earlier suspect in the case, a self-described drunk named Carlos Enrique Vielman, was released on July 29 and a judge dismissed all charges against him.

Toronto

Responding to a World Trade Organization ruling that struck down many of its previous protections for domestic magazines, the Liberal government announced new plans to ban Canadian advertising in foreign magazines with Canadian editions. Foreign publishers breaking the ban will face steep fines. Under the WTO ruling that voided Canada's previous rules, the government has until Oct. 31 to replace its old protectionist regime. The law is mainly aimed at U.S. publishers, and U.S. trade officials, saying the new law is simply a repackaged version of the old law, are seeking "consultations" with Canada over the issue.

Bogota

Colombia's biggest right-wing paramilitary armies have signed a preliminary agreement that may lead to peace negotiations with the government. The United Autodefense Groups of Colombia, an umbrella organization, have said they will not recruit minors and will keep civilians out of the conflict. In exchange, civilian negotiators have accepted an agenda for future talks between the groups and the government. The topics include political, economic and judicial reform.