USA

Calling the protection of America "our most urgent national priority," President Bush submitted to Congress the nation's first comprehensive strategy for confronting terrorism within US borders. The 90-page document envisions changes in state and federal laws, such as increasing the military's ability to operate within the US, and outlines long-term initiatives to improve security. Key to Bush's strategy is the creation of a new cabinet-level department to implement the plan.

Prosecutors are seeking a third indictment of alleged terrorist Zacarias Moussaoui, legal sources said. The indictment would spell out "aggravating" circumstances under the federal death-penalty law – criteria that would permit use of capital punishment. The Bush administration has said it would seek to execute Moussaoui if he's convicted of conspiracy to commit terrorism and other charges related to the Sept. 11 attacks.

Delivering his semiannual report on the economy, Federal Reserve Chairman Alan Greenspan struck a more reassuring tone than he had earlier this year, telling Congress the economy is on the road to recovery although it will continue to feel the effects of last year's recession. To restore investor confidence, Greenspan said CEOs must be held accountable for the accuracy of their companies' financial reports. The markets remained volatile in morning trading despite Greenspan's optimism and promising second-quarter earning reports.

Following the Senate's lead, the House was set to pass a bill mandating new criminal penalties for company fraud, said Majority Whip Tom DeLay (R) of Texas. Sweeping changes in corporate accountability were unanimously adopted by the Senate Monday, but rejected by the House in April when it passed a bill to tighten oversight of the accounting industry. DeLay promised the new House measure is "tougher than the Senate bill." Bush has urged Congress to send him a bill before adjourning for summer.

The agency responsible for rebuilding the World Trade Center site announced six proposals, all featuring substantial memorials and office buildings, but nothing 110 stories tall. Four of the plans preserve "footprints" of the towers. One would feature an 8-acre open space and a free-standing tower, while another would create several triangular parks and building sites. The Lower Manhattan Development Corp. and the Port Authority will narrow down the proposals to three by September and one by December.