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Leaders of India, Pakistan still talking

The leaders of nuclear rivals India and Pakistan met for at least six hours Sunday, stumbling over the contentious issue of Kashmir but agreeing to extend their first face-to-face discussions for an unscheduled second day.

Both sides initially described the talks between Indian Prime Minister Atal Bihari Vajpayee and Pakistan's president, Gen. Pervez Musharraf, as "cordial and constructive," and a representative of India said they had discussed an unexpectedly wide range of issues, including trade, terrorism and nuclear safeguards.

But Sunday night, a Pakistani spokesman took issue with those comments, saying the two leaders' private talks had focused on the dispute over Kashmir, the turbulent border region that is claimed by both countries and divided between them.

The spokesman said Musharraf told Vajpayee that there could be "no progress on normalizing relations" unless the Kashmir dispute is resolved according to the wishes of its people.

Albanian: Macedonia deal near

SKOPJE, Macedonia _ Macedonia's feuding parties were near agreement Sunday on a peace deal meant to end an ethnic Albanian insurgency.

"We are making significant progress, pretty fast," Menduh Thaci, a top representative of the large and restive ethnic Albanian minority, said after a seventh day of talks with U.S. and European mediators and leaders of the majority Macedonians.

Macedonian representatives declined to comment after Sunday's talks. The Western mediators _ U.S. envoy James Pardew and European Union envoy Francois Leotard _ also declined to comment.

3 die in migrant boat accident

ROAD TOWN, British Virgin Islands _ A boat carrying illegal immigrants overturned Sunday while trying to flee a U.S. Coast Guard vessel in the Caribbean, killing at least three, the Coast Guard said.

The Coast Guard rescued 20 survivors and was searching for two more believed missing after the boat capsized in international waters about 20 miles southeast of the British Virgin Islands, Coast Guard duty officer Tim Lavier said. Two women and a man were confirmed dead.

The passengers were Colombian, Haitian, Mexican and Dominican. The nationalities of the dead were unknown.

Balloonist hurt, daughter killed

OTTAWA _ A hot-air balloon caught fire and crashed after hitting a power line, killing a 15-year-old girl and critically injuring her father, a professional balloon pilot who was at the controls.

Julie Boileau of Ottawa was killed Saturday night when a gust of wind picked the balloon off the ground and pushed it into the 25,000-volt line, said Luc Madore, a member of the balloon's ground team.

Jean Boileau, the organizer of a popular ballooning festival, was critically injured and taken to Ottawa Hospital. Another adult and a teenager were hospitalized with injuries that were not life-threatening.

The balloon had just touched down in a field south of the Canadian capital and the ground crew, which included Boileau's wife, was holding on to the basket when the wind carried it off.

Croatian government wins vote

ZAGREB, Croatia _ Croatia's government survived a no-confidence vote Monday after a marathon debate in Parliament on the issue that prompted it: a plan to extradite two suspects to the U.N. war crimes court.

The government of Prime Minister Ivica Racan, which had asked for the legislative vote, got support from 93 deputies in the 151-seat chamber, while 36 voted against it. The others were absent.

If the motion had passed, early elections would have been called.

Transitions in power . . .

BANGLADESH: After five years in power, longer than any other Bangladeshi leader, Prime Minister Sheikh Hasina left office Sunday and was replaced by a caretaker administration that will run the country until October's general election.

The transition touched off more violence in the bitter rivalry between Hasina's party and that of former Prime Minister Khaleda Zia. At least four people were killed and 100 injured in street clashes involving gunfire and crude homemade bombs, police and hospital officials said.

BULGARIA: Bulgaria's president asked ex-King Simeon II to form a government for the Balkan nation, the latest step in the former monarch's swift march to power after decades in exile.

The request Sunday from President Petar Stoyanov was a formality after Simeon's National Movement, which swept to victory in June parliamentary elections, announced last week that he would be prime minister.

FLOODING IN SOUTH KOREA: Officials on Sunday clean up cars that were stalled on a riverside road in Seoul, South Korea, by torrential rains of a foot or more. The flooding killed at least 40 nationwide and left 14 missing. Nearly 34,000 homes around the capital were flooded. Three of Seoul's seven main subway lines temporarily halted service to some stations because of flooding.