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The United States yesterday launched a $29 million a year program to promote democracy and open markets in the Middle East while Arabs said they would prefer U.S. efforts to end Israeli occupation and avoid what they fear would be a devastating war with Iraq.

About 10,000 U.S. troops in Saudi Arabia and Kuwait have been put on the highest state of alert because of "credible" threats of possible attacks by anti-Western guerrillas, the Pentagon said yesterday.

Spain said it would work with Washington to build support for a resolution authorizing force against Iraq as other key European allies rejected a NATO compromise to bolster Turkish defenses and dismissed U.S. claims of a Baghdad-al Qaeda alliance.

President George W. Bush was to say last night that a change in government in Iraq will have a ripple effect in the Middle East and make it easier to achieve peace between Israel and the Palestinians, White House officials said.

The U.S. Congress yesterday sent President George W. Bush a $79 billion package to pay for conflicts in Iraq and Afghanistan, reward allies such as Turkey, bolster anti-terrorism and help struggling airlines.

Despite the success of the U.S.-led invasion in eliminating the Saddam Hussain regime in Iraq, the Bush administration must be still disappointed with the results, if not the plunder by the audacious looters who went about with their thievery while the American and British soldiers stood by shamelessly. This turnaround has tarnished what has been considered by some as a spectacular victory.

The United States said yesterday it was beginning a "final phase" of diplomatic consultations to gather support for more pressure on Iraqi President Saddam Hussein to disarm in order to avoid war.

The United States yesterday said Iraqi President Saddam Hussein would not be allowed to stay in power if war is launched against Iraq, but did not rule out allowing him to remain if he fully disarmed beforehand.

The United States will hold an emergency summit with allies Britain and Spain on Sunday in a final diplomatic effort to overcome opposition in the U.N. Security Council to a resolution paving the way for war on Iraq.

Colin Powell said yesterday Washington had identified planned parts of the fence Israel is building in the West Bank that may cause problems and will raise the issue with the Israeli government.

About 30 years ago, Arab-Americans broke away from their tradition in the diaspora of forming social clubs and took a major step forward in getting involved in the American political system by establishing their first self-professed political action group called the National Association of Arab-Americans (NAAA).