World Briefing

Israel should cut off outlying Arab neighborhoods from Jerusalem, Israel's vice premier proposed, a day after a Palestinian construction worker from one of the districts went on a deadly rampage in the city's center.

Vice Premier Haim Ramon wants the route of Israel's separation barrier to exclude Arab districts, saying it would improve security. The wall already rings much of the city.

Hussam Duwayaat, 30, driving a massive construction vehicle, rammed buses, crushed cars and targeted pedestrians. Three people were killed before an off-duty Israeli soldier fatally shot him.

BRITAIN

British police appealed for witnesses to help solve the deaths of two French students who were stabbed dozens of times in the head and neck before being set on fire in their southeast London apartment.

Laurent Bonomo was stabbed nearly 200 times, and Gabriel Ferez nearly 50 times, authorities said. Both were 23.

Neither student had a criminal record. They were within weeks of returning home.

SWEDEN

Sweden will pay about $502,000 in compensation to an exonerated Egyptian terrorism suspect who was handed over to CIA agents and deported in 2001, the government said.

Chancellor of Justice Goran Lambertz said the Swedish state had reached a settlement with Muhammed Alzery's lawyers. He also said Sweden believes Alzery's assertion that he was tortured in Egypt.

Alzery was handed over to U.S. agents in Stockholm six years ago, taken to Egypt and imprisoned on terrorism charges. He was released in 2003 without trial.

FRANCE

France will build a second new-generation nuclear reactor, President Nicolas Sarkozy said, pledging a "new industrial revolution" in an era in which fossil fuels have grown too expensive.

France, the country most reliant on nuclear power, has been building its first European Pressurized Reactor, or EPR, on the Normandy coast, and it is expected to go into service in 2012.

EPR reactors are intended eventually to replace the aging reactors around the world.

BRITAIN

An Algerian suspected of links to Osama bin Laden and bomb plots in the United States and France has been freed from a British prison after more than seven years, but he was placed under house arrest while he fights deportation.

Although the name of the 45-year-old man has been widely publicized in European trials, U.S. extradition proceedings and previous news reports, the man can be identified only as "U" under British legal restrictions.

From Times Wire Reports