Responding to a request from Mrs Kirchner for "friendly mediation" between Britain and Argentina, Mrs Clinton said she agreed that negotiations were a sensible way forward and offered "to encourage both countries to sit down". Her intervention defied Britain's long-standing position that there should be no negotiations unless the islands' 3,000 inhabitants asked for them. It was hailed in Buenos Aires as a major diplomatic victory, but condemned in the Falklands. Britain insisted there was no need for mediation as long as the islanders wanted to remain British. "We don't think that's necessary," a Downing Street spokesman said.

What began as a last-minute change to Mrs Clinton's itinerary on her five-day sweep through Latin America has snowballed into a major diplomatic incident that has emboldened Argentina, caught the US largely unawares, and could force Britain to reassess the level of international support for its efforts to develop a hydrocarbons industry in the Falklands basin.

The study, likely to force a review of the target, concludes that some of the most commonly-used biofuel crops fail to meet the minimum sustainability standard set by the European Commission. Under the standard, each liter of biofuel should reduce emissions by at least 35 percent compared with burning a liter of fossil fuel. Yet the study shows that palm oil increases emissions by 31 percent because of the carbon released when forest and grassland is turned into plantations.

Rape seed and soy also fail to meet the standard. The Renewable Transport Fuels Obligation this year requires 3.25 percent of all fuel sold to come from crops. The proportion is due to increase each year and by 2020 is required to be 13 percent. The DfT commissioned E4tech, a consultancy, to investigate the overall impact of its biofuel target on forests and other undeveloped land. The EC has conducted its own research, but is refusing to publish the results.

As Mr Sarkozy presses ahead with plans to ban the wearing of the burka in public places, the FT's latest Harris poll shows the move is not just strongly supported in France, but wins enthusiastic backing in the UK, Italy, Spain and Germany.

The poll shows some 70 per cent of respondents in France said they supported plans to forbid the wearing of the garment which covers the female body from head to toe. There was similar sentiment in Spain and Italy, where 65 per cent and 63 per cent respectively favoured a ban

The strength of feeling in the UK and Germany may seem particularly surprising. Britain has a strong liberal tradition that respects an individual's right to full expression of religious views. But here, some 57 per cent of people still favoured a ban. In Germany, which is also reluctant to clamp down on minority rights, some 50 per cent favoured a ban.

Environmental groups have strongly opposed the introduction of GM crops. But the Commission insisted its decision was based on "a considerable volume of sound science". The Amflora variety was developed by German chemical and biotechnology firm BASF, for the special qualities of its starch.

BASF says: "Amflora starch can be used in many different ways. It makes yarn stronger and paper glossier; it also makes spray concrete adhere better to the wall and keeps glue liquid for longer." But it has been a political hot potato for seven years. BASF applied to grow it in Sweden in 2003. Sweden agreed but was obliged to seek EU permission.

The potato is expected to be planted in the Czech Republic and Germany this spring, and Sweden and the Netherlands in following years. The only other GM product currently grown commercially in the EU is Monsanto's MON 810 maize, which was cleared back in 1998. It is grown in five countries - Spain, the Czech Republic, Romania, Portugal and Slovakia.

In a news conference attended by MPs, representatives from the Metropolitan Police, charitable organisations, think-tanks and other groups, he called on Islamic leaders to convey the message that acts of terrorism cut people off as true followers of Islam. "They can't claim that their suicide bombings are martyrdom operations and that they become the heroes of the Muslim Umma (the wider Muslim community), no, they become heroes of hellfire, and they are leading towards hellfire," he said.

"There is no place for any martyrdom and their act is never, ever to be considered Jihad," he said. Dr Qadri, who spoke at length in both English and Arabic before his audience, said his fatwa, a religious edict or ruling, was an "absolute" condemnation of terrorism without "any excuses or pretexts".

"Good intentions cannot convert a wrong into good, they cannot convert an evil into good," he said. "Terrorism is terrorism, violence is violence and it has no place in Islamic teaching and no justification can be provided for it, or any kind of excuses or ifs or buts." He insisted that Islam was a religion of peace that promotes beauty, "betterment", goodness and "negates all form of mischief and strife".

In a year full of fiscal bad news for Greece, the country this week may be facing its most significant challenge yet. Needing to refinance 20 billion euros ($27 billion) in state debt by April and May, Athens will start this week with a 10-year bond issue worth up to 5 billion euros. At the same time, however, the European Union continues debating how best to help the country survive its precarious financial position - and on Monday, Brussels demanded that Athens do even more to cut state spending.

In an interview with the German business daily Handelsblatt on Monday, Luxembourg Prime Minister Jean-Claude Juncker, who also heads up the euro zone, warned that the EU was willing to look into measures against speculators targeting Greece. "We have to strengthen the primacy of politics. We have to be able to stop the financial markets," he said. "We have the instruments of torture in the basement. We will display them if it becomes necessary."

The complex is the first 'supersize' cattle factory planned for Britain and follows growing concerns about the spread of 'zero-grazing' farming.

Justin Kerswell, of animal rights group Viva, said: 'This is factory farming - and it blows out of the water the pastoral image the dairy industry likes to portray.' The 40 million pounds farm will be built near Nocton, Lincolnshire, later this year. It will have eight hangars for 8,100 cattle and two 24-hour milking parlours.

The animals, fed on fodder, will spend most of their days inside where they will stand and sleep on sand rather than pasture. And they will be milked three times a day, while a typical dairy cow is milked just twice. Waste will be removed each day and fed into an anaerobic generator to produce enough electricity for more than 2,000 homes.

Robert Howard, a farmer behind the Nocton Dairies project, said the farm will be the largest in Western Europe and help the dairy industry compete against imports. 'Campaigners think cows should be like in the Anchor butter advert, with 50 to 100 cows dancing in a field,' he said. 'It is a lovely idea, but not the reality.' The Nocton Dairies' farmers hope to have planning permission by the end of next month and milk the first cow by September.

German Consumer Affairs Minister Ilse Aigner warned in an interview published on Monday that Internet giants like Google and Microsoft hold extensive amounts of personal data on Web users and said the firms should reveal what they know about people. Speaking ahead of the opening of Germany's annual CeBIT, the Hanover-based digital industry trade fair starting on Tuesday, Aigner said some IT companies had built up gigantic databases on their customers and that nobody knew how they were using the wealth of names, addresses and pictures at their disposal.

"Sector giants like Facebook, Apple, Google or Microsoft can compile entire personal profiles in the Internet," Aigner told the German daily Suddeutsche Zeitung. "They know what we're interested in, what we buy, where we travel to and who we're friends with. Some consumers become really interesting for businesses as a result, while others may end up blacklisted and have problems finding work." She denied being hostile to Internet firms. "But everything has its limits. Some inventions such as face recognition software for mobile phone cameras to identify people on the street send cold shivers down my back. Even George Orwell wouldn't have dreamt of that."

The state has been paying bills with unfunded vouchers since October. A fifth of buses have stopped. Libraries, owed $400 million (263 million pounds), are closing one day a week. Schools are owed $725 million. Unable to pay teachers, they are preparing mass lay-offs. "It's a catastrophe", said the Schools Superintendent.

In Alexander County, the sheriff's patrol cars have been repossessed; three-quarters of his officers are laid off; the local prison has refused to take county inmates until debts are paid. Florida, Arizona, Michigan, New Jersey, Pennsylvania and New York are all facing crises. California has cut teachers salaries by 5pc, and imposed a 5pc levy on pension fees. The Economic Policy Institute says states face a shortfall of $156 billion in fiscal 2010. Most are banned by law from running deficits, so they must retrench. Washington has provided $68 billion in federal aid, but that depletes the Obama stimulus package.

This is not to pick on America. Belt-tightening is the oppressive fact of 2010-2012 for half the world. Hungary, Ukraine, the Baltics and the Balkans are already under the knife. Latvia's economy may contract by 30pc from peak to trough as it carries out an "internal devaluation", ie wage cuts, to hold its euro peg. The eurozone's fiscal squeeze is well advanced in Ireland. Brussels has told Greece to cut by 10pc of GDP in three years, Spain by 8pc, Portugal by 6pc. Britain must slash soon, or face a gilts strike.

Don't go wobbly on us now, Ben. If the governments of America, Europe, and Japan are to retrench - as they must - their central banks must stay super-loose to cushion the blow. Otherwise we will all sink into deflationary quicksand.

The call for China to abandon modesty about its global goals and "sprint to become world number one" comes from a People's Liberation Army (PLA) Senior Colonel, Liu Mingfu, who warns that his nation's ascent will alarm Washington, risking war despite Beijing's hopes for a "peaceful rise. China's big goal in the 21st century is to become world number one, the top power," Liu writes in his newly published Chinese-language book, "The China Dream".

"If China in the 21st century cannot become world number one, cannot become the top power, then inevitably it will become a straggler that is cast aside," writes Liu, a professor at the elite National Defence University, which trains rising officers. His 303-page book stands out for its boldness even in a recent chorus of strident Chinese voices demanding a hard shove back against Washington over trade, Tibet, human rights, and arms sales to Taiwan, the self-ruled island Beijing claims as its own.

"As long as China seeks to rise to become world number one ... then even if China is even more capitalist than the US, the US will still be determined to contain it," writes Liu. Rivalry between the two powers is a "competition to be the leading country, a conflict over who rises and falls to dominate the world," says Liu. "To save itself, to save the world, China must prepare to become the (world's) helmsman."

Tensions have been high in recent days following the Israeli government's announcement that two West Bank shrines would be added to Israel's list of national heritage sites. Palestinians denounced the move as a provocation, and President Mahmoud Abbas has warned the incident could spark a "religious war."

Israel has controlled the compound since capturing east Jerusalem in the 1967 Mideast war and insists it will retain it forever, though it has left day-to-day administration to a Muslim clerical body. That body, the Waqf, said young men rushed to the compound after hearing a rumor that hardline religious Jews intended to storm the area.

Hamas' minister of religious affairs, Taleb Abu Shaar, called on Palestinians to rise up violently against Israel and "protect our Islamic holy places from the risk of Judaization." He called on the United Nations to impose sanctions on Israel "because of its crimes."

Speaking in the Hague, he insisted the Serbs were only acting in self-defence. He insists he is innocent of all 11 charges from the 1992-95 Bosnian war, including genocide and war crimes. The trial had been adjourned since November and the judge rejected a new request for a further postponement.

Mr Karadzic suspended his boycott and appeared in court along with his lawyer on Monday as the trial resumed. "I will defend that nation of ours and their cause that is just and holy," Mr Karadzic said in translated comments at the International Criminal Tribunal for the former Yugoslavia. "We have a good case. We have good evidence and proof."

Prosecutors say he orchestrated a campaign of "ethnic cleansing" against Muslims and Croats in eastern Bosnia to create an ethnically pure Serbian state. In his opening statement last October, prosecutor Alan Tieger said Mr Karadzic "harnessed the forces of nationalism, hatred and fear to pursue his vision of an ethnically segregated Bosnia".

Jim Fitzpatrick, the Labour MP for Poplar and Canning Town, said the IFE had already started to turn its attention to the bigger prize of Labour. Odd things started happening, he said. "People were being signed up to be members, and told to turn up to the meetings where candidates were being selected with a list of those who they should be voting for," he said.

"We had never seen them before, and have never seen them afterwards. And that was corrupting our politics."

Some of the new members told The Sunday Telegraph they were signed up en bloc by Lutfur Rahman, the man accused of rising to the council leadership with the IFE's help.

A senior person in the London Labour Party described how the IFE called Muslim activists and councillors it deemed promising into its headquarters. "They have you up to the secure floor of the mosque," he said. "One guy I know was shown a room with maps with pins of contacts in it, across London and Britain. The pitch to him was: we control party members and votes in all these places. Join us, and you will never be short of manpower to back you up."

"The IFE have a foot in every political camp," he said. "I think that is somewhat dishonest. If they put up under their own name, they would get less than five per cent of the vote."

The Yorkshire pigs were developed by researchers in Ontario at the University of Guelph, who spliced in genes from mice to decrease the amount of phosphorus produced in the pigs' dung, the report said. The genetic modification means the new strain of pigs produce 30 to 65 percent less phosphorus in their waste, which has been problematic in surface and groundwater around large livestock operations, Canwest said.

One scientist, however, says that relative to the time period from the mid-1970s to the mid-1990s, Earth has been more active over the past 15 years or so. The Chilean earthquake, and the tsunami it spawned, originated on a hot spot known as a subduction zone, where one plate of Earth's crust dives under another. It's part of the active "Ring of Fire," a zone of major crustal plate clashes that surround the Pacific Ocean.

The Ryukyu Islands of Japan were hit with a 7.0 magnitude quake on Friday night. News of that tremor, the Haiti quake and now Chile may make it seem as if Earth is becoming ever more active. However, "relative to the 20-year period from the mid-1970s to the mid 1990s, the Earth has been more active over the past 15 or so years," said Stephen S Gao, a geophysicist at Missouri University of Science and Technology. "We still do not know the reason for this yet. Could simply be the natural temporal variation of the stress field in the earth's lithosphere" (the lithosphere is the outer solid part of the Earth).