Two remote islets in the Sea of Japan have ignited unresolved issues between Japan and South Korea.

  South Korea has recalled its ambassador to Japan in protest as Tokyo rekindles claims to the uninhabitable isles, known as Dokdo in Korean and Takeshima in Japanese.

  The ownership of the islets, under South Korea's control, has been a long-standing thorn in the neighbours' relations.

    South Korean President Lee Myung-bak expressed his "deep disappointment and regret" over the renewed territory claims.

 Bush lifts drilling ban

  US President George Bush lifted a ban on offshore oil drilling and urged Congress to do the same.

  The move is an attempt to curb gas prices, which are now topping $4.10 nationally.

  Democratic lawmakers rejected Bush's plan, arguing that lifting the ban will neither reduce gas prices nor increase energy independence.

  The Democratic Party-dominated Congress must lift the legislative ban on offshore oil drilling before Bush's order can be carried

Cop killer's mental state questioned

  The mental state of a man who killed six policemen in Shanghai is being questioned.

  Beijing resident Yang Jia is alleged to have murdered the officers in a knife attack at a police station on July 1st.

  Lawyers acting for Yang's defence say their client may have been suffering from "temporary mental disorder".

  But Shanghai police refute the claim saying the killings were in revenge for Yang being suspected of bike theft last year.

Quake's devastating wake

  The earthquake that rocked Sichuan province in May has left 1.4 million farmers in absolute poverty.

  A new report by the state council's Poverty-Alleviation and Development Office says 4,000 remote villages need an average of 3 million yuan to recover from the quake.

  The anti-poverty office is recommending the Government pump 12 billion yuan into the poorest villages over the next three years.

  This investment will go into recovering permanent shelter, infrastructure and basic services.

Smart ideas for Olympics

  Five-hundred "green vehicles" are being trialled in the lead up to the Games.

  The zero-emission vehicles are estimated to save up to 780 tonnes of gasoline and diesel and reduce carbon dioxide discharge by 2,500 tonnes.

  The vehicles will run on electricity, mixed fuel and batteries and will commute athletes between the Olympic village and sports venues.

    Games organisers are also installing 126 intelligent road sensors throughout Beijing which give preferential treatment to buses using official Olympic lanes.

Torch in the north

  The Olympic Torch relay has reached the northern mountains of Jilin Province.

  Following the Nenjiang or "Mother" river, the torch past through villages of the Daur, Manchu and Mongolian peoples.

  The 300 year-old city of Qiqihar is the third and final stop of the three day relay after Harbin and Daqing.

  After a short respite the torch is now on its way to eastern Yanji City bordering the Korean peninsula.