(Continued from page 16)

gret for the incident, a diplomatic step removed from an apology, and said it was a tragic case of mistaken identity, in which each side mistook the other for militants and both sides erroneously fired on the other.
• Secretary of State Hillary Rodham Clinton even explored the possibilities of an apology with a Pakistani diplomat in a London meeting but then backed off when the Pakistanis insisted the apology be timed for maximum political impact on their turf.
• The Pakistanis have put the apology at the top of a long list of demands to address what they see as insults to national pride and sovereignty -- from the Navy SEAL raid onto Pakistani territory last year that killed Osama bin Laden to the

steady U.S. drone strikes on Pakistani territory. A lot of these demands are now up in the air with the news Tuesday that Pakistan's high court had dismissed the prime minister, a move that could usher in months of turmoil in the country's government.
• From the American point of view, Pakistan has not done enough to stop attacks on U.S. troops carried out by the Taliban and members of the Haqqani clan who shelter in Pakistan's tribal areas.
• ___

• LOS CABOS, Mexico (AP) -- President Barack Obama is acknowledging that Europe's economic situation could have a spillover effect on his own re-election prospects.
• Wrapping up the Group of 20 economic summit of world leaders, Obama expressed confidence in Europe's ability to right its own financial ship. He said he was hopeful that voters would validate his own efforts come November if he stayed focused on strengthening both the U.S. and world economies and creating more jobs at home.
• "I've consistently believed that if we take the right policy steps, if we're doing the right thing, then the politics will follow, and my mind hasn't changed on that," the president said a news conference in this Mexican resort Tuesday at the close of what is expected to be his last foreign trip before the November election. He returned to Washington early Wednesday.
• Obama said he was encouraged that European leaders understood the depth of the problem and were working in unison to address it.
• "Even if they cannot achieve all of it in one fell swoop, I think if people have a

(Continued on page 18)