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Neal Ainley, the former president of an Arkansas bank that handled Bill Clinton's 1990 gubernatorial campaign funds, pleaded guilty to two misdemeanors involving false documents and agreed to cooperate with the Whitewater independent counsel. Prosecutors want to know whether Ainley conspired in 1990 with key Clinton aide Bruce Lindsey, now deputy White House counsel, to evade federal cash-withdrawal reporting requirements.

Clinton Slams Door on Iran

Characterizing the country as a continuing threat to peace and a major sponsor of terrorism, President Clinton announced a ban on U.S. trade and investment with Iran, settling an internal Administration debate over how best to handle Iran's menace and forestall even stronger measures from Congress. Major U.S. allies showed no interest in joining the embargo.

Did She or Didn't She?

Federal prosecutors struck a deal with Qubilah Shabazz, the daughter of Malcolm X, whom they have accused of plotting to kill Nation of Islam leader Louis Farrakhan. Prosecutors agreed to drop charges in exchange for Shabazz's acceptance of "responsibility" for the plot and the equivalent of two years' probation. But once out of the courtroom, Shabazz denied having plotted anything, and her lawyers continued to insist that she was the victim of entrapment by a mercenary government informant.

The Simpson Trial

As yet another juror was excused and replaced with an alternate (there are now only five remaining), the prosecution began presenting the heart of its case against O.J. Simpson. Police chemist Gregory Matheson testified that preliminary tests showed blood found at the murder scene was consistent with Simpson's blood type and that blood found on socks at Simpson's estate correlated with that of his slain ex-wife. The introduction of more sophisticated dna tests is to follow.

Depleted Church Coffers

In what may prove to be the largest financial scandal ever to erupt in a mainstream U.S. church, the Episcopal Church accused Ellen Cooke, its former treasurer, of diverting $2.2 million and spending the money on personal items, including a home, a farm, travel and jewelry. Cooke, who is cooperating with church investigators, said her actions were the result of work pressures and a psychological "breakdown."

Killer Storm

Packing hailstones as big as softballs and winds of 70 m.p.h., a storm swept through northern Texas over the weekend, shattering car windows and damaging buildings. At least a dozen people were killed and more than 150 injured.

WORLD

Croats and Serbs Renew War

Fighting broke out in Croatia between the Croatian army and secessionist Serbs, breaking a "permanent cease-fire" signed by the two sides last year. The new round of violence began when the Croatian army, in an early-morning surprise attack, captured the Western Slavonia enclave in central Croatia, a small part of the 27% of Croatian territory held by Croatian Serbs. To complicate things further, Croatian army forces exchanged artillery fire late in the week with Bosnian Serbs across the border in northeastern Bosnia, killing three.

Gas Attack Thwarted

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Quotes of the Day »

GABRIEL SILVA, Colombia's defense minister, responding to Venezuelan president Hugo Chavez's claim that the U.S. sent an unmanned plane into Venezuelan airspace
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