Rice meets with Gadhafi

TRIPOLI, Libya - The United States and Libya sealed a historic turnaround after decades of terrorist killings, American retaliation, suspicions and insults with Secretary of State Condoleezza Rice's peacemaking visit Friday with Moammar Gadhafi, Libya's mercurial strongman.

'The relationship has been moving in a good direction for a number of years now and I think tonight does mark a new phase,' Rice said following a traditional Muslim dinner - the evening meal that breaks the day's fast observed during the holy month of Ramadan - at Gadhafi's official Bab el-Azizia residence. It is the same compound hit by U.S. airstrikes in 1986 in retaliation for a deadly Libyan-linked terrorist attack in Germany. The attack killed Gadhafi's baby daughter.

Iraq reacts to spy allegations

BAGHDAD - The Iraqi government reacted sharply Friday to published allegations that the U.S. spied on Iraq's prime minister, warning that future ties with the United States could be in jeopardy if the report were true.

The allegations appear by a new book, 'The War Within: A Secret White House History, 2006-2008,' by journalist Bob Woodward, who writes that the United States spied extensively on Prime Minister Nouri al-Maliki, his staff and other government officials.

The report emerged as the two governments are in delicate negotiations over the future of American troops in Iraq.

Canada's PM to call election

TORONTO - A spokesman said Canada's prime minister will dissolve Parliament on Sunday and call an early election to be held next month.

Dimitri Soudas said the vote will be set for Oct. 14.

Prime Minister Stephen Harper's Conservatives need 28 seats to form a majority government in Parliament.

The Conservatives unseated the opposition Liberals in 2006.

First aid ship docks in Haiti

n GONAIVES, Haiti - The first shipload of aid sailed Friday into a crumbling port on the outskirts of this flooded city where tens of thousands have gone for days with little food or water in the wake of Tropical Storm Hanna.

Receding flood waters revealed more corpses in the stinking muck.