Thai health officials confirmed that avian flu has probably begun to spread from person to person. Influenza experts were begging drug companies to begin manufacturing enough vaccine to prevent a pandemic but the companies were complaining that production is too expensive and that they will lose money if a pandemic does not occur. Patent issues were also cited.New York TimesEmory University Hospital in Atlanta, Georgia, began notifying more than 500 patients that they might have been exposed to sporadic Creutzfeldt-Jakobdisease because of inadequate sterilization procedures.Associated PressTony Blair underwent heart surgery, andNew York TimesMerck & Co. withdrew its arthritis drug Vioxx …

Weighing the soul, 1875. Finance experts warned that the Pension Benefit Guaranty Corporation, the government agency that insures company pensions, could be forced into a situation similar to the savings and loan crisis of the 1980s, which led to a $200 billion bailout, as a result of cascading pension defaults in the airline industry.New York TimesEconomic growth was slowing,Washington Postfewer jobs were being created, crude oil prices reached a record high of $44.41,New York Timesand the Dow Jones Industrial Average dropped to a new low for 2004.Associated PressBerkshire Hathaway’s second quarter earnings were down 42 percent.ReutersThe Bureau of Labor Statistics …

Richard Clarke, the former counterterrorism official who has criticized the Bush Administration for its poor efforts at fighting terrorism and its misguided invasion of Iraq, appeared before the commission investigating September 11 and apologized for the government’s and his own failure to prevent the attacks. President George W. Bush, Vice President Dick Cheney, and Condoleezza Rice have all refused to testify publicly before the commission.ReutersBush Administration operatives were working very hard to discredit Clarke, and Condoleezza Rice agreed to speak with the 9/11 panel once again but not publicly and not under oath.ReutersRice did appear publicly on 60 Minutes and …

Republican operatives were looking high and low for anyone who could remember serving in the National Guard with President George W. Bush between May 1972 and May 1973; one group of Vietnam veterans was offering a $1,000 reward for proof that the president met his military obligations.New York TimesWhite House officials tried unsuccessfully to wriggle out of a promise Bush made on national television to release his entire military file, though they continued to insist that the president has nothing to hide.Washington Post, USA TodayA dental chart from 1973 suggested that the future president had been neglecting his teeth; anotherNew …

President George W. Bush traveled to Asia and gave a speech in Manila comparing Iraq to the Philippines, a former U.S. colony that was “liberated” from Spain in 1898 and occupied for 48 years. Bush said that the Philippines, which he called “the oldest democracy in Asia,” should be seen as the model for a new democratic Iraq, and then quickly left the country because of security concerns.New York TimesOsama bin Laden released two new tapes and promised a new wave of suicide bombings.Voice of AmericaIraqis in Faluja were photographed dancing on a demolished U.S. Army truck after it was …

Israel raided the Rafah refugee camp in the Gaza Strip and left 1,240 Palestinians homeless after demolishing up to 120 houses; Israeli officials said they had destroyed three tunnels used to smuggle weapons from Egypt. Eight Palestinians were killed in the operation, including two children.Associated PressAhmed Qurei, the new Palestinian prime minister, threatened to resign after Yasir Arafat refused to give him control over the Palestinian security forces.New York TimesTensions were beginning to surface publicly between Defense Secretary Donald Rumsfeld and Condoleezza Rice, the national security adviser, over the creation of Rice’s Iraq Stability Group, which will oversee the chaos …

At the request of the CIA, the Justice Department began investigating charges that the White House leaked the name of undercover CIA agent Valerie Plame to the press in retaliation for remarks by her husband, former ambassador Joseph Wilson, challenging President Bush’sclaim that Iraq tried to buy yellowcake uranium in Africa. An unnamed administration official told the Washington Post that two White House officials had revealed the agent’s identity to at least six journalists. “Clearly,” the official said, “it was meant purely and simply for revenge.” The White House denied that Karl Rove was responsible for the leak, which was …

United Nations weapons inspectors discovered 11 empty chemical warheads in southern Iraq; the inspectors said that the warheads were not included in Iraq’s weapons declaration, but Iraqi officials said that they were. Inspectors also searched the private homes of two Iraqiscientists, one of whom was upset that his clothing and his wife’s medical Xrays were examined. The inspectors later expressed surprise that the Bush Administration was making such a big deal out of the empty warheads, which have a range of 12 miles; Hans Blix, the head of the U.N. team, said the warheads were not important, and a French …

After a heavy lobbying campaign by the electric industry, President George W. Bush broke a campaign promise and decided not to regulate carbon dioxide emissions, humiliating Christie Whitman, his EPA administrator, and effectively killing the Kyoto Protocol on global climate change. The President said that he was worried about an energy crisis and that he wasn’t entirely convinced that global warming was real. OPEC decided to cut production by 4 percent in order to keep oil prices high. North and South Korea exchanged mail for the first time since the Korean War. Apparently offended by President Bush’s comments last week …

Australianresearchers, who were trying to use genetic engineering to sterilize mice, accidentally created a deadly, immune-system-destroying strain of the mousepox virus, a cousin of the human smallpox virus. Two biotechnology companies announced that they had sequenced the rice genome. Uganda’s most recent outbreak of Ebola fever seemed to be over. Someone sent a letter filled with orange powder, which looked like anthrax, to the Southern Baptist Convention in Nashville, Tennessee, causing the evacuation of a building. E. coli, whose genome was recently sequenced, has a habit, researchers said, of picking up new genes from bacteriophages, viruses that infect bacteria, which …