World Briefs

MEXICO CITY – Mexico's finance secretary Agustin Carstens says "it is a fact that we are in recession."

He says Gross Domestic Product could contract 4.1 percent this year, an estimate that takes into account a swine flu epidemic that forced a nationwide shutdown of many government services and businesses.

WASHINGTON - The director of the House Military Office, LouisCaldera, has resigned, an administration official said Friday. The resignation comes two weeks after Mr. Caldera authorized an Air Force One flyover of the Statue of Liberty that terrified thousands of people in New York City.

MARDAN, Pakistan – Pakistan's army vowed Friday to eliminate militants from a northwestern valley but warned that its under-equipped troops face thousands of Taliban extremists who have seized towns, planted bombs made from pressure cookers, and dragooned children to be suicide bombers.

As air force jets roared overhead and gunbattles raged, terrified civilians from the Swat Valley and neighboring districts accelerated their exodus, with U.N. and Pakistani officials predicting 1 million refugees will soon burden the turbulent Afghan border region.

KABUL – Video of the aftermath of a disputed incident involving American forces and the Taliban shows bloodied bodies of children laid out with other corpses, confirming international Red Cross findings at the two remote villages in western Afghanistan.

The US military does not contest that civilians died but called "extremely over-exaggerated" a report by an Afghan official that as many as 147 were killed.

GENEVA – Nations need common rules for responding to flu outbreaks to prevent discrimination and unfair trade restrictions, Mexico's UN envoy said Friday, complaining that Mexican citizens and exports were being unfairly singled out. Some countries have "developed some attitudes which I will straightforward qualify as discriminatory against Mexicans," Luis Alfonso De Alba said.

SAO PAULO – Brazil and Argentina have confirmed five swine flu cases within their borders as the virus affects more nations in South America.

CARACAS, Venezuela – Venezuelan nongovernmental organizations warned Thursday that a bill being drafted by lawmakers loyal to President Hugo Chavez could be used to financially strangle groups that criticize the government.

Ruling-party lawmakers argue the proposed law is necessary to increase oversight of foreign funding destined for NGOs.