As part of a new partnership with Nicaragua's Sandinista President Daniel Ortega, Iran and Venezuela have announced a plan to help finance a $350 million deep-water port at Monkey Point on the country's remote Miskito Coast—envisioned as the first step towards a "Dry Canal" corridor of pipelines, rails and highways across the country to the Pacific port of Corinto. Iran recently established an embassy in Managua, and is boasting new cultural exchange programs in Nicaragua to encourage trade and investment. A Dec. 17 account from Iran's official news agency IRNA noted a visit to Managua by Ezzatollah Zarghami, president of Iranian state radio and television, who pledged to make programming available for local broadcast. However, the Iranian presence is being met with suspicion by the indigenous inhabitants of the Miskito Coast, who have always jealously guarded their local autonomy. From a Dec. 18 San Antonio Express-News account of a recent visit by an Iranian team to Monkey Point, arriving in Nicaraguan army helicopters:

At least four people are dead following sectarian clashes that broke out over Christmas celebrations in Kandhamal district of the eastern Indian state of Orissa. Hindu and Christian residents put each other's homes to the torch in the Christian-dominated village of Brahmanigaon. When Hindu residents took refuge in the police station, a group of some 500 besieged the station house—some reportedly firing on it. When police returned fire, four residents were killed. Three police were also reported injured. More may have been killed in clashes, but all communication to the village has been cut.

Pakistan's biggest city of Karachi is completely shut down after rioters burned dozens of cars and set fire to stores in outrage at the killing of former prime minister Benazir Bhutto. All the city's petrol stations are sealed off and street lights were turned off. Protestors exchanged fire with the police in some parts of the city. Bhutto was killed along with at least 20 others in a suicide blast on an election rally in Rawalpindi. More than 60 were also injured in the attack. (Bloomberg, Dec. 27) At least five are reported dead in the Karachi violence. A passenger train was set on fire at Hyderabad, in Bhutto's stronghold of Sindh province. At Bhutto's home town of Larkana, Sindh, crowds set two banks on fire. In Multan some protesters fired shots into the air, and police fired teargas into crowds in Peshawar. When the hundreds of Bhutto supporters outside the hospital in Rawalpindi got word of her death, some smashed the glass door of the emergency unit, threw stones at cars and clashed with police, shouting: "Killer, killer, Musharraf!" (London Times)

Turkish military authorities announced Dec. 26 that fighter jets again hit bases of the Kurdistan Workers' Party (PKK) in northern Iraq, in a third confirmed cross-border air raid in the past 10 days. Ankara called the raids an "effective pinpoint operation" targeting eight caves and other hideouts being used by the PKK in the Zap Valley near the Turkish border.

From the Committee for the Freedom of the University Students, support group for dissident students at Amir Kabir University of Technology (formerly Tehran Polytechnic), Dec. 19:

Turn December 28 Into An International Day of Protest Against the Arrests of Students In Iran
It has been two weeks since 43 students and political activists from Iran's universities were either abducted in the middle of the night on Dec. 2 or arrested during various commemorations of Students Day on Dec. 7 and then imprisoned.

Honduras officially joined Petrocaribe on Dec. 21 during the group's Fourth Summit, held in Cienfuegos, Cuba. The 16-member Petrocaribe is a mechanism for providing Venezuelan oil to other Caribbean countries at full price but on easy terms which include payment in goods and services rather than hard currency. Venezuelan president Hugo Chavez, who initiated Petrocaribe in June 2005, told the meeting that he hoped to broaden the group to become a "new Caribbean economic space, respecting those that already exist," a reference to the Caribbean Community (CARICOM). Most Petrocaribe nations are also part of CARICOM, which is seeking to become a common market for the region. The summit concluded with the opening of a refinery at Cienfuegos. (EFE, Dec. 21; La Jornada, Mexico, Dec. 23)

Leftist Ecuadoran president Rafael Correa declared a state of exception (which suspends some legal norms) in the southeastern village of Dayuma on Nov. 29 following protests there. Dayuma's 2,800 residents live in poverty despite petroleum extraction operations in the area by a number of companies, including Chinese Andes Petroleum; on various occasions residents have confronted the military in demonstrations to demand better roads and jobs at the oil companies. In the latest incident, residents say soldiers burst into their homes, beating women and children and arresting the men. Some 25 people were taken prisoner, including Orellana province prefect Guadalupe Llori.

On Dec. 18 Argentine judge Ariel Lijo gave seven former military officers and one former police agent prison sentences of 20-25 years in connection with the disappearance of some 20 members of the rebel Montonero organization in 1980. This was the first time since 2003 that former officers received prison sentences for crimes committed during the 1976-1983 military dictatorship; the Due Obedience and Final Point laws had shielded officers from prosecution until they were annulled in 2003. In 1980 a group of Montoneros, who had originally been allied to the left wing of the Justicialist Party (PJ, Peronist), tried to return to Argentina to fight the dictatorship but were captured by the military. Most remain disappeared, although the shot-up bodies of some have been found.