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Huge crowds of Muslims protested in the streets of Kashmir's capital Thursday for independence from India. At least one participant was shot dead by police; seven others were wounded in an effort to disperse the demonstrators. The latter retaliated by torching and overturning a police car (above) and hoisting green flags symbolizing neighboring Pakistan. Analysts saw the growing trouble as one of the greatest challenges to date of India's hold on the disputed region as well as to efforts to forge a peace with Pakistan. India's leaders reacted angrily to a Pakistani call for the UN to curb "gross violations of human rights" in Kashmir.

All remaining issues between the US and Libya over the 1988 bombing of a Pan American Airlines jet were resolved Thursday, clearing the way for full restoration of diplomatic relations. The deal provides for reopening of the US Embassy in Tripoli, resumption of direct US financial aid, and an official visit by Secretary of State Condoleezza Rice by year's end. Twenty-six lawsuits filed against Libya by American citizens as a result of the bombing of Flight 103 had been pending, as were three by Libyans over US airstrikes in 1986.

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