GOP donor Enron moved money to Democrats

WASHINGTON -- A week before filing for bankruptcy protection, Enron Corp. contributed $100,000 to Democrats after giving nearly all its prior donations this year to Republicans.

The money went to the organization that aids Senate Democratic candidates, but a recently hired attorney for Enron insisted the donations were unrelated to congressional investigations.

Attorney Robert Bennett, who represented former President Clinton and other high-profile clients, said the money was pledged months before Enron's collapse prompted the congressional inquiries.

Palestinians say Israel wants to sabotage truce

JERUSALEM -- The Palestinian Authority accused Israel of trying to sabotage truce efforts after Israeli troops raided Palestinian territory Thursday for the second straight day in pursuit of suspected militants.

Israel, meanwhile, upheld its travel ban on Yasser Arafat despite worldwide protests, saying the Palestinian leader will not be allowed to attend Orthodox Christmas observances in Bethlehem on Jan. 6 unless he arrests the killers of an Israeli Cabinet minister.

Sears settles DieHard fraud with $63 million

CHICAGO -- Sears has agreed to pay the government $62.6 million to settle allegations it knowingly sold defective DieHard auto batteries in 1994 and 1995.

The settlement, announced Thursday, ends a more than two-year investigation into batteries made by Sears supplier Exide Technologies.

Assistant U.S. Attorney Joel Merkel said Sears admitted it had misrepresented the defective batteries as the "longest-lasting."

"Faced with the continuing expense and distraction of protracted litigation, we have decided that settling it now is in the best interests of all of our constituents," said Sears chairman and chief executive Alan Lacy.

Japan, North Korea square off over ship

TOKYO -- Japan escalated a war of words with North Korea on Thursday, calling Pyongyang's criticism of a weekend gun battle with a mystery ship "vulgar" in the face of mounting evidence linking the isolated communist nation to the sunken vessel.

The tension between the two Northeast Asian nations prompted a top South Korean official to express concern that last Saturday's six-hour chase and sinking in the South China Sea might undermine peace and stability in the region.

The sea clash began when the ship ignored orders to stop for inspection in southern waters within Japan's exclusive economic zone and fled toward China. Fighting broke out when three Japanese gunboats surrounded the vessel.

After mild fall, Buffalo pounded by snow

BUFFALO, N.Y. -- After an unprecedented snowless November and December with temperatures in the 60s, Buffalo got hammered Thursday by one of the heaviest snowfalls it has ever seen.

A storm that moved in on Christmas Eve dropped more than 2 feet of new snow on the ground, a near-record level that shut down streets, offices and the airport.

When the snow is tallied today, areas that were barely dusted all season will have seen more than 4 feet since Monday, forecasters said.

-- From wire reports