Britain British Prime Minister Tony Blair clinched a historic third straight term in office, but with a significantly reduced majority for his Labour Party, as voters angered by the Iraq war dealt him "a bloody nose". Iraq Insurgents killed 26 people in a string of attacks across Iraq, capping a bloody week that has left some 250 dead since the country's new leaders unveiled the first democratically-elected government in half a century. US Japan is expected to propose a deadline for North Korea to attend nuclear talks or face action at the United Nations Security Council, a senior official of Japanese Prime Minister Junichiro Koizumi's political party said. Iraq An Australian citizen held hostage in Iraq is still alive, Prime Minister John Howard said as it emerged that an influential Sunni sheik has pleaded with the militants holding him to spare his life. Mideast The Fatah movement of Palestinian leader Mahmud Abbas has won municipal elections in the occupied territories by a wide margin, an election official said. The vote had been seen as a test of the popularity of Hamas two months before legislative elections. Iran Pakistan will, under certain conditions, send centrifuge parts for tests by the UN's atomic agency to help establish whether Iran has been secretly developing nuclear weapons, said Pakistani Prime Minister Shaukat Aziz. Russia Russia is concerned at "destabilisation" in the area of the former Soviet Union following revolutions in Georgia, Ukraine and Kyrgyzstan, President Vladimir Putin said in interviews with two German television channels published by the Kremlin. US The United States said Vietnam has started easing religious restrictions as part of an accord made public as the communist state's leader announced he would make an historic visit to Washington next month. Lebanon Lebanese President Emile Lahoud signed a decree to hold legislative elections from this month based on an electoral law tailored by Syria that the opposition says is unfavourable to Christians. Iran Iran is ready to continue nuclear talks with the European Union, despite a deadlock over Iran's desire to make nuclear fuel, Iranian Foreign Minister Kamal Kharazi said. Bulgaria In a new setback to the US and its dwindling band of allies in Iraq, Bulgaria's outgoing parliament voted to pull all Bulgarian troops from that country by the end of the year, with some to leave as early as next month. US President George W Bush ordered the demotion of Brigadier General Janis Karpinski, the former commander of the Abu Ghraib prison, after an army investigation found her guilty of dereliction of duty and shoplifting, the army said.