Nation digest 1/11 7a

Feds announce arrests in drug distribution ring

WASHINGTON -- Federal drug agents smashed a drug-smuggling and distribution ring run by Middle Easterners Thursday, charging more than 100 people with selling common cold tablets smuggled from Canada for conversion to methamphetamine.

Sixty-seven people have been arrested and another 54 arrest warrants were issued in Chicago, Detroit and 10 other cities, Drug Enforcement Administration officials said. They said the alleged smugglers purchased barrels of pseudoephedrine pills in Canada and transported them to the United States, mainly through Detroit.

From there the pills were sold to methamphetamine laboratories in California and Mexico, officials said.

Pseudoephedrine is a prescription antihistamine used in as the main ingredient in methamphetamine, a high-potency illegal street drug known as "speed" or "crank."

Farm income to drop 20 percent without aid

WASHINGTON -- With crop prices mired near record lows, the government says farm earnings will drop 20 percent this year unless Congress enacts a new farm program or approves emergency payments.

The Agriculture Department estimated Thursday that net farm income would fall to $40.6 billion this year, down from $49.3 billion in 2001, without additional federal aid. Congress is almost certain to increase government payments to prevent much or all of that projected drop.

Iran warned: Don't help al-Qaida, don't interfere

WASHINGTON -- President Bush warned Iranian officials Thursday not to harbor al-Qaida fighters fleeing Afghanistan and not to try to destabilize the country's new government.

Until now, the United States has quietly praised longtime foe Iran for its help in the war on international terror. Iranians and Americans have worked together to fight the Taliban and to create Afghanistan's government.

Now, however, Iran is moving to safeguard its traditional influence in western Afghanistan, apparently unnerved by growing U.S. military influence on almost all sides, analysts said.

Bush signs defense bill with extra $20 billion

WASHINGTON -- President Bush signed a defense spending bill Thursday that he said is a down payment on his pledge to give the nation's military "every tool, every weapon and every advantage you need" to fight terrorism.

Bush went to the Pentagon, which still bears scars from the hijacked jet that hit it, and signed legislation that sets aside $317.2 billion for Defense Department operations in the budget year that began Oct. 1. The bill also earmarks an additional $20 billion for the military campaign in Afghanistan and recovery from the September attacks.

Colombia braces for next step after talks fail

SAN VICENTE DEL CAGUAN, Colombia -- Government troops moved toward a rebel safe haven Thursday, awaiting a presidential order to retake the vast zone as fears grew of an escalation in Colombia's 38-year civil war.

Foreign diplomats pleaded with both sides to stick with the 3-year-old peace process, which President Andres Pastrana declared a failure Wednesday night, blaming rebel intransigence.

-- From wire reports