DISSATISFACTION: The DPP criticized an ad-hoc committee's decision as biased against DPP-ruled regions, while the KMT told the opposition to stop complaining
By Loa Iok-sin, Jenny W. Hsu and Rich Chang
Reaction to a special panel's decision on applications by 11 cities and counties to be upgraded or merged into a municipal city was mixed yesterday, with those receiving the green light expressing joy while those rejected saying they were perplexed and calling the decision “unfair.”

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By Shih Hsiu-chuan
The government has decided to decriminalize prostitution but will leave the decision to set up red light districts to local governments, an official said yesterday.

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MILITARY BUILD-UP: Beijing reiterated its claim that the proposed US$6.5 billion arms sale to Taiwan was the biggest stumbling block in Sino-US relations
China and the US yesterday hailed defense talks in Beijing as a step forward in mutual understanding and agreed to meet again next month to discuss how to avoid a repeat of recent high-seas standoffs.

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Iranian Supreme Leader Ayatollah Ali Khamenei said yesterday that a disputed election result would stand, despite street protests that Iranian officials say Britain and the US have incited.

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The UN General Assembly president announced tentative agreement on a blueprint for a global response to the world's worst economic crisis in 70 years that would make the UN a player in promoting recovery, especially in hard-hit poor countries.

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