Gordon Brown has so far rejected demands for a vote on the treaty, claiming it was different to its predecessor. But in an extraordinary U-turn, No10 conceded for the first time that the two documents are virtually identical.

Downing Street's comments came in the wake of a report by the Commons European Scrutiny Committee which said the treaty was 'substantially equivalent' to the constitution, thrown out by French and Dutch voters in 2005.

In a line-by-line study, it found only two of 440 provisions were different - on symbols, including a flag, and an anthem. It also warned the red lines were worthless because the Government had no legal protection in the treaty preventing it being forced to surrender key powers to Brussels 'bit by bit'.

Neil O'Brien, of the Eurosceptic think-tank Open Europe, said the warning was a 'big turning point', adding: "The Government's case against the referendum is unravelling. The red lines will not protect Britain." On Monday, Mr Brown promised to hold a referendum if Britain's safeguards failed, saying: "If our red lines are not achieved, we will either veto it or say there has to be a referendum."

"If we take into account inflation from 1972 to the present day, the real and fair price for oil should be more than 100 dollars," Abdullah bin Hamad Al-Attiyah said in remarks aired by Al-Jazeera television on Tuesday.

He said such a price was justified by rising inflation, a fall in purchasing power and the weakness of the dollar, which has dropped about 10 percent in value against the euro over the past year. Attiyah, whose gas-rich nation is an OPEC member, said the dollar could remain the unit of reference for oil despite its slump. "But I cannot predict what will happen in future. Anything is possible," he said.

US chief executives say the economic outlook has not been so difficult to read since the last recession in 2000-01. They warn that in spite of signs of a pick-up, the threat of an economic contraction is still alive. Conflicting economic indicators and volatile business conditions make it difficult to take strategic decisions such as whether to hire or fire staff, or increase or slash capital expenditure, business leaders told the Financial Times.

They said they would watch the third-quarter earnings reporting season, which begins this week, to gauge whether companies had managed to cushion the twin blows from the housing crisis and the liquidity squeeze.
"The economic environment is uncertain because over the summer the economy was thrown a number of curve balls and it is unclear what the long-term impact of that is going to be," said Jim Tisch, the chief executive of Loews, the hotels-to-pipelines conglomerate.

Chief executives of companies with international operations are more bullish, arguing that the weak dollar and solid global growth should offset domestic ­weakness. "What is keeping demand up is the emergence of new purchasers in China, India and eastern Europe," said Fred Smith, the chief executive of logistics giant FedEx . "The force field of the internet, fast-cycle transportation and globalisation transcends any one economy."

In a National Day speech ahead of a parade aimed at underscoring Taiwan's defence capabilities, he also called on China to withdraw ballistic missiles that are aimed at the island. "With China's rapid rise and relentless military build-up, the 'China threat' is no longer confined to confrontation across the Taiwan Strait. In fact, it has already seriously impacted world peace," he said.

Chen urged the international community to "strongly demand that China immediately withdraw missiles deployed along its southeastern coast targeted at Taiwan, stop military exercises simulating attacks on Taiwan." The independence-leaning Chen accused Beijing of ignoring peace overtures and using "ever more belligerent rhetoric and military intimidation."

He said the tactics were "aimed at denigrating our nation, marginalizing it in the world, cultivating the perception that Taiwan is a local region of China, delegitimizing its government, and undermining its sovereignty. Only the people of Taiwan have the right to decide their nation's future," he added.

"Taiwan and the People's Republic of China are two sovereign, independent nations, and neither exercises jurisdiction over the other. This is a historical fact. This is the status quo across the Taiwan Strait."

Taiwan and China split in 1949 after the end of a civil war, but Beijing still regards Taiwan as part of its territory awaiting reunification, by force if necessary.

"The number of the conspiracies, the number of conspirators within those conspiracies and the magnitude of the ambition, in terms of destruction and loss of life, is mounting, has continued to mount year by year," he said in his report to the Home Affairs Select Committee.

The Metropolitan Police chief also urged MPs to consider extending the current detention limit beyond 28 days. "The prospect that we will need more than 28 days some time in the not too distant future is so real a prospect that Parliament needs to consider it," he said. Sir Ian Blair admitted that more effort needed to be made to explain to the Muslim community why the police believed the extension was needed.

He added that the increased threat of terrorism meant that "a pragmatic inference can be drawn that at some stage 28 days is not going to be sufficient". The Association of Chief Police Officers (ACPO) has already backed his comments. "The ACPO position on pre charge detention remains unchanged. The issue is not simply one about the number of days, but of having sufficient time to secure evidence in the most serious of cases.

"Investigators are facing unprecedented international dimensions in cases along with growing volumes of complex evidence and networks. It is not difficult to envisage a situation whereby the current limits would not be sufficient. It is right, therefore, that we are having this debate now, because we can and not because we have to."

It's housing market slump and the global credit squeeze continue to take a toll on growth, the International Monetary Fund will say next week, according to leaked forecasts. The IMF is preparing to cut sharply its previous projections for the US and world economy in its twice-yearly assessment of the global outlook next week, the leaked drafts of its impending report showed last night.

As Alistair Darling, the Chancellor, prepares to unveil his first PreBudget Report today, the figures show that the fund is also set to cut its forecasts for Britain's growth next year to only 2.3 per cent, down from the 2.7 per cent that it projected in April. That will come as some consolation to Mr Darling, however, with the consensus City view of UK growth for 2008 already even weaker at just 2 per cent.

The IMF is much gloomier about the US, with the papers showing that it will cut its forecast for American growth next year to 1.9 per cent - dramatically weaker than the 2.8 per cent expansion it saw in April. Such a weak US showing next year would mean little or no revival for the world's biggest economy from this year, and most likely a further deterioration in conditions. Consensus forecasts are presently for US growth this year of 2 per cent.

The draft showed more modest cuts in the IMF's 2008 forecasts for other key economies, with eurozone growth coming down to 2.1 per cent, from the 2.5 per cent expected in April, and Japan now projected to see a 1.7 per cent expansion, down from 2 per cent.

The leak came as sharp divisions opened up yesterday between the eurozone's biggest economies over the threat posed by the euro's rise to record levels, driven by the sliding dollar. Despite open French and Italian concern at the euro's gains, Peer Steinbrück, Germany's Finance Minister, took a much more relaxed stance during a meeting of eurozone finance ministers in Luxembourg. "I prefer a strong euro," he said. Laughing, he added: "I love cash and a strong euro."

The case in Chegutu district, 70 miles southwest of Harare, exposes the perversity of President Robert Mugabe's policies. Commerical agriculture was the mainstay of the economy in the days when Zimbabwe was a food exporter. The World Food Programme estimates that it will be feeding 4.1 million Zimbabweans, one third of the population, by the end of the year. But none of that has stopped the Zanu-PF regime.

Now the Chegutu group is charged with violating the Consequential Provisions Act, which gave the few hundred remaining white farmers a final deadline of Sep 30 to leave their land and homes. The colonial-era Chegutu courtroom was packed by the so-called "war veterans" who are Mr Mugabe's staunch supporters, and "beneficiaries" who stand to be given the properties should the 10 be convicted.

The farmers, aged from 38 to 75, produce a variety of food from chickens to oranges and have already given two-thirds of their farms to the government for resettlement. All but one still work their remaining land intensively and say they intend to try to continue.

They were remanded on bail and their lawyer David Drury sought to have the case referred to the supreme court, which is due to rule on the constitutionality of the land law. They pleaded not guilty and face up to two years in prison if convicted.

Outside the court, the scruffy shops of Chegutu were empty of basic foods, and street vendors sold small, sour oranges. They came from a once-prolific citrus farm in the district now devastated after it was seized by Bright Matonga, the deputy information minister, earlier this year.

Mr Brown said British troop numbers would be halved to 2,500 by next spring when a further decision on the next phase would be taken. Ministry of Defence officials said that all British troops could be out by the end of next year, although Downing Street expressed caution about the prospect.

However, Mr Brown's announcement was marred by a political row over the total number of troops that will be left in the region this Christmas. Last week during his visit to Iraq Mr Brown said 1,000 troops would leave by Christmas. It then became clear that the departure of 500 of them had already been announced. Yesterday it emerged that while a further 500 will leave Iraq by Christmas another 500 support and logistical staff will be sent out to Kuwait at the same time, leaving the total number in the region at 5,000.

The Prime Minister's Office said that no agreement had been reached on the holy sites in Jerusalem. According to the report in the London-based newspaper, Olmert and Abbas had agreed that the Temple Mount sites would be under Jordanian jurisdiction in a final peace deal, and Jordanian citizenship would be granted to 90,000 east Jerusalem residents. The report also said it was likely that a supreme supervisory commission would be established, which would include representatives from the UN, Egypt, Jordan, Israel and the PA. The report drew strong criticism from the right-wing.

MK Uri Ariel (NU/NRP) said: "If the report is true, the Israeli government has stripped itself of any linkage to Zionism or its Jewish roots. The Olmert government is trying to destroy the dreams of thousands of generations who have dreamed and worked to return the Jewish people to its land," continued Ariel, vowing: "we won't let him succeed."

Ariel's party colleague MK Aryeh Eldad said that if Israel willingly gives up sovereignty of the Temple Mount to a foreign power "it will lose its moral, historical, legal and religious justification for existence. This is post Zionist, nonsensical and suicide," he said.

MK Tzi Hendel (NU/NRP) said: "I warned long ago that Olmert would divide Jerusalem, and now it is clear that even the Temple Mount, which is the heart and soul of the Jewish people, is going for cheap." Shas chairman Eli Yishai said that "whoever thinks he has the authority to give up Jerusalem is wrong. The obligation to keep Jerusalem is solid, not a political gust of wind."

Authorities arranged the evacuations of nearly 1.6 million people in Fujian and Zhejiang provinces, to the south of Shanghai.

The legislation - similar to laws already in force outlawing persecution on religious or racial grounds - will make criminals of those who express their views in ways that could lead to the bullying or harassment of gays. The maximum sentence is longer than the average of around five years handed to rapists.

The announcement widened the rift between opposing supporters of freedom of speech and gay rights. Christian groups condemned it as "a law to allow Christians to be locked up for what they believe". But the gay pressure group Stonewall said those who disapprove of homosexuals would have nothing to fear from the law if they express their views in a manner that is "temperate" and "polite".

Justice Secretary Jack Straw told MPs the gay harassment law will be included as an amendment to the Criminal Justice and Immigration Bill currently going before Parliament, though ministers have yet to decide the wording. Mr Straw said: "It is a measure of how far we have come as a society in the last ten years that we are now appalled by hatred and invective directed at people on the basis of their sexuality. It is time for the law to recognise this."

He raised the prospect of extending the law to cover "transgendered" people and the disabled. The new law aims to catch those who do not explicitly call for attacks or discrimination against homosexuals, as this is covered by existing incitement laws. Instead, police will be allowed to pursue those who create an "atmosphere or climate" in which hatred or bullying can be fostered. Officials said it would not prohibit criticism of gay, lesbian and bisexual people or joke-telling.

The final decision over who has "crossed the line" will rest with the police.

The delegation, including representatives of the nation's government, explained that they study the Bible regularly and recently came upon a verse in Zecharia (6:16) reading "And the distant ones will come and build the Temple of G-d." They discussed the passage among themselves and decided that their faith obligates them to fulfill the verse.

West Papua, located in the southwestern Pacific Ocean, is rich in gold mines, so the delegation thought it natural to donate gold for the Holy Temple. The Holy Temple will be built in the place where the First and Second Temples once stood - on Jerusalem's Temple Mount. The group heard of the Temple Institute in Israel, which deals with advancing the building of the Temple, and on Hoshana Raba - the 7th day of Sukkot - the delegation arrived at the Institute's headquarters in Jerusalem's Old City and presented the gold to Rabbi Yisrael Ariel, a founder of the institute, and Yehuda Glick, its director.

The group presented a kilogram of gold and a large sum of money. They requested that the gold be used to construct vessels for the Temple and that the funds be used by the institute for any purpose it sees fit. The institute has a fund set aside for exclusive use for the actual construction of the temple, as well as funds for building the vessels and engaging in educational projects.

Rabbi Chaim Richman of the Temple Institute and Israel National Radio, said that, in view of the Halakhic problems that could be caused by specifically consecrating money and gold for the Holy Temple, an escrow account was opened, as was a safe deposit box for all donations; both have been explicitly set aside for use in building the Temple, and will remain untouched until then.

Rabbi Ariel said the episode was emotional as it constituted the fulfillment of the words of the prophets that nations will come from afar to help build the House of G-d in Jerusalem. "There is no doubt that this is a sign that the rest of our prophets' prophecies will soon be fulfilled as well."

The London-based newspaper, Al-Quds al-Arabi, said it was agreed that Jordanian citizenship would be granted to 90,000 east Jerusalem residents. According to the report, it is also likely that a supreme supervisory commission would be established, which would include representatives from the UN, Egypt, Jordan, Israel and the Palestinian Authority.

When Israel and Jordan signed a peace deal in 1994, it was agreed that Israel would honor the special role of the Hashemite Kingdom over the Islamic holy sites in Jerusalem and in a final Israeli-Palestinian peace deal, Israel would give high importance to Jordan's historic role over the holy sites. Israel Radio reported that Jordan had recently set up a new fund for the renovation of Al Aksa Mosque and Dome of the Rock to reinforce its presence there. The head of the fund even proposed that Jordan give Jordanian passports to some 90,000 east Jerusalem residents.

Meanwhile, Vice Premier Haim Ramon told Israel Radio that the question of who will have custody of Jerusalem's holy sites must not be discussed at the moment. "We must decide that in that area there will be a special regime which we will discuss in the future," he said. Ramon added that there was a consensus in the cabinet that "no Palestinian refugee should return to Israel under the law of return - legal or moral." However, he proposed a discussion over refugees who wanted to return for humanitarian reasons, saying that "the idea that this will cause Israel's collapse is ridiculous."

Despite provoking the worst banking crisis for decades, the bank last week offered a reporter posing as a first-time buyer a £180,000 mortgage even though he had a salary of only £30,000. The loan was at least £30,000 more than other leading lenders were prepared to offer. Repayments for the loan would have accounted for more than 60% of the fictional buyer's take-home salary.

The reporter, posing as another potential customer, was also offered a so-called "negative equity mortgage" worth 117% of the value of the property he claimed to be interested in buying. The mortgages offered by other banks to the same potential borrower were significantly lower. Financial experts were this weekend stunned that Northern Rock is offering such loans a week after it was forced to turn to the Bank of England for emergency funding. Yesterday it emerged that Northern Rock has been forced to borrow about £3 billion from the Bank in the past week.

Northern Rock is to court further controversy by pushing ahead with a plan to pay a £59m dividend to shareholders and executives this week. The Financial Services Authority gave special dispensation to the bank in July to dip into its assets to pay out the dividend - which is 30% higher than last year's payout.

Politicians yesterday expressed dismay that the government and its regulators had not stepped in to supervise Northern Rock's business practices following the government bail-out. George Osborne, shadow chancellor, said: "One week Alistair Darling [the chancellor] is attacking the lending culture in this country, the next he is issuing emergency guarantees for people's mortgages and savings."

George Mudie, a Labour member of the Treasury select committee said: "Of all the people, have Northern Rock learnt nothing? It is reckless."