Palestinians, Israelis balk at U.S. peace proposal

JERUSALEM -- A U.S. envoy's first round of talks on a new Middle East peace plan produced a host of complaints Thursday, with Palestinians balking at the idea of skipping presidential elections -- a means of sidelining Yasser Arafat -- and Israel saying its security concerns were not being addressed.

The envoy, Assistant Secretary of State William Burns, met separately with officials from both sides, but not with Arafat. The Bush administration is boycotting the Palestinian leader, following Israel's lead in blaming him for continuing violence and deepening Palestinian suspicions of a U.S. bias.

The proposal, a copy of which was obtained by The Associated Press, calls for creation of a Palestinian state with temporary borders next year.

Hurricane Kenna grows to Category 5

PUERTO VALLARTA, Mexico -- Hurricane Kenna grew into one of the strongest hurricanes to menace Mexico's Pacific coast in decades and veered toward land Thursday night, as forecasters called for urgent action to protect an area that includes major tourist resorts.

The Category 5 hurricane with winds of 160 mph was veering away from a Baja California summit of world leaders. Category 5 is the strongest category of hurricane and is considered capable of causing catastrophic damage.

Kenna began to roar toward land Thursday night, churning north-northeast at 11 mph. On its current track, forecasters said the hurricane's center was expected to come ashore south of Mazatlan early this afternoon.

U.N. panel releases $469 million for Kuwait

GENEVA -- The United Nations panel overseeing compensation to victims of Iraq's invasion of Kuwait released $469 million Thursday, with the majority going to claimants in Kuwait.

The U.N. Compensation Commission, which distributes funds received from the Security Council-supervised oil-for-food program, said it was handing over the installment for distribution to 708 claimants already approved by the panel.

The amount set aside for Kuwait in the periodic payment is $350 million, with money going to individuals, corporations and the government itself.

The commission is made up of representatives of the 15 U.N. Security Council members.

Train, bus and car crash in Australia, killing four

ADELAIDE, Australia -- A train, car and a bus collided at a rail crossing in this southern Australian city Thursday, killing four people.

Police and fire officials said 13 people were injured and that all the dead were on the bus.

Witnesses said the car stalled on the rail crossing. The train hit the car, pushing it into the bus, they said. The driver of the car fled the vehicle before it was hit by the train.

Early media reports put the number of dead at six; officials said four people died.

-- From wire reports