IRAQ -- CONTRACTOR IMMUNITY SEEN AS DEAL BREAKER FOR US/IRAQ SECURITY PACT: Yesterday, David Satterfield, the top State Department official in Iraq, conceded to reporters that the impasse over the long-term U.S.-Iraqi security deal is due in large part to issues regarding the presence of foreign "security contractors." Iraqi lawmakers have expressed outrage that the U.S.-sponsored deal would continue to extend immunity from prosecution to private military contractors such as Blackwater, the private military firm implicated in the deaths of 17 Iraqi civilians last September. According to the AP, U.S. officials are considering alternative solutions for ensuring Iraqi sovereignty over airspace and U.S. troop movements, but are steadfast in their demand for blanket immunity for security contractors working under the Defense and State Departments. Sen. John Kerry (D-MA) yesterday sent a letter to Secretary of State Condoleezza Rice requesting information about the controversial decision to renew Blackwater's contract in Iraq and inquiring about the "driving forces that resulted in the U.S. government needing to rely so heavily upon private security contractors." Security contractors are getting increased scrutiny for their U.S. operations as well. San Diego City Attorney Mike Aguirre is pushing for local oversight over a planned Blackwater military training facility by forcing state courts to handle the city's attempt to review the security firm's application.

 MILITARY -- VA SAYS RELEASING DOCUMENTS ON UNDER-DIAGNOSING PTSD 'WOULD NOT REVEAL ANYTHING NEW':  The Department of Veterans Affairs has denied a request for a Freedom of Information Act (FOIA) fee waiver by the nonpartisan watchdog group Citizens for Responsibility and Ethics in Washington (CREW) on the under-diagnosing of post-traumatic stress disorder (PTSD). The decision forces CREW to pay for the costs of finding and copying documents. In a four-page denial letter, the Veteran Affairs chief counsel wrote that CREW is not entitled to a fee wavier because the documents requested would not "significantly contribute to the public's understanding" or "reveal anything new." CREW's request was prompted by an internal VA e-mail obtained by CREW and VoteVets.org that instructed VA staff to "refrain from giving a diagnosis of PTSD straight out" and to consider a diagnosis of the less-serious "adjustment disorder" instead. VA Secretary James Peake said last month that concerns about PTSD in veterans are "overblown," and many veterans suffering from PTSD just "might need a little counseling."

AFGHANISTAN -- RAND REPORT SAYS VIOLENCE IN AFGHANISTAN RISING: Last week, former Joint Chiefs of Staff senior intelligence officer John McCreary released an analysis of the security situation in Afghanistan and concluded that the month of May "saw more violence than any other month since the 2001 U.S. intervention that toppled the Taliban and forced Osama bin Laden and his followers to flee into Pakistan." In his full report released this week, McCreary said that "an increase in attacks in and around Kabul is particularly noteworthy because it indicates a physical and psychological worsening of the security situation," adding, "Kabul is becoming slowly surrounded." At the same time, a new RAND corporation, Pentagon-funded report has found that Taliban safe-havens in Pakistan are at the root of Afghanistan's security problems. The report concludes, "The United States and other international actors need to eliminate the insurgents' support base in Pakistan," and a"failure to do so will cripple long-term efforts to stabilize and rebuild Afghanistan." But not only are Afghan insurgents using bases in Pakistan for cover, but authorities there are providing assistance. "The Taliban and other groups are getting help from individuals within Pakistan's government, and until that ends, the region's long-term security is in jeopardy," the report says.

Top Iraqi officials are objecting publicly to the U.S. effort to establish permanent bases in the country. "The Americans are making demands that would lead to the colonization of Iraq," said Sami al-Askari, a senior Shiite politician close to Prime Minister Nouri al-Maliki. "If we can't reach a fair agreement, many people think we should say, 'Goodbye, U.S. troops. We don't need you here anymore.'"

The House is set to vote today on whether to send articles of impeachment against President Bush to the House Judiciary Committee. The 35 articles, offered by Rep. Dennis Kucinich (D-OH) and now co-sponsored by Rep. Robert Wexler (D-FL), must be acted upon within two days, under House rules.

In an interview with the UK Times, President Bush said he regrets his legacy in making the world believe "he was a 'guy really anxious for war' in Iraq." But today, he added that "he had no regrets about the decision to invade Iraq."

"The young anarchists, middle-aged peace activists and established left-wing politicians" in Germany "have at least one thing in common: none bothered to keep a six-year tradition alive by organizing a protest against President Bush’s arrival" on Tuesday. "Bush is not even popular in the role of the enemy anymore," wrote Der Tagesspiegel newspaper.

With soaring oil prices, Americans are increasingly turning to Amtrak, which "saw record numbers in May when ridership rose 12.3 percent from a year earlier." The Bush administration, however, is threatening to veto legislation that would fund the passenger railroad for the next five years.

"There is not going to be an intelligence authorization bill unless torture is stopped," said Sen. Dianne Feinstein (D-CA) yesterday, referring to her efforts to have the CIA adhere to Army Field Manual policies that ban torture. "And torture right now is being carried out by CIA contractors. ... The bill's not going to go ahead."

And finally: Former Defense Secretary Donald Rumsfeld has bought a new, fuel-efficient Vespa. According to the DC Examiner, "Mr. Macho recently stopped by the Vespa dealership in Glover Park and took home a LXV 150 scooter, which can reach speeds of up to 60 miles per hour." When asked about his purchase, Rumsfeld refused to comment.