Italian premier regrets over Nazi row 
Italian Premier Silvio Berlusconi telephoned European Parliament Speaker Pat Cox on Tuesday to express his regret for last week's controversial Nazi row with a German member of the European Parliament. 

Cox's spokesman said Berlusconi "voiced his regret for using, during the course of an animated debate, certain expressions and comparisons which upset the members of the European Parliament." 

After heckling from German Social Democrat's member Martin Schulz, who challenged Berlusconi on domestic legal issues and conflicts of interest, the Italian premier said Wednesday in the European Parliament that Schulz would be "perfect" for the role ofa Nazi concentration camp Kapo (inmate turned guard) in a film currently being shot in Italy. 

Since last Wednesday's incident, Cox has repeatedly said the European Parliament expected an apology from Berlusconi, stressingit was not enough to clear up the matter with Germany. 

After the phone-call, which lasted about 10 minutes, Cox's spokesman said the European Parliament Speaker considered Wednesday's incident "definitively closed." 

The speaker's office released a statement saying Berlusconi hadvoiced regret for using "certain expressions and comparisons whichwounded the sensitivities" of the members of the European Parliament. 

It added that he had "never meant to offend" and his intentions"may have been misinterpreted."

Mexican govt. to keep economic policy despite polls defeat 
The Mexican government will not make changes in its economic policy despite the adverse electoral results for the ruling party in the mid-term elections held last Sunday. 

Finance Minister Francisco Gil told a press conference Tuesday that "nobody wants to change whatever is related to stability. I believe there is a longing for recovering an economic growth rate." 

The ruling National Action Party (PAN), which won the presidential election in 2000, in the vote last Sunday suffered a drop of more than eight percentage points from the support level of three years ago, and also lost 50 seats in the lower house of the parliament. 

Gil insisted that it is necessary for the parliament to approvereforms in fiscal and electricity sectors, labor and telecommunications, in order to recover the economic growth. 

President Vicente Fox, who accused the parliament of hindering his reform proposals, expected his party to win the majority in parliament in order to get a green light for his bills. 

The electoral results strengthened the opposition InstitutionalRevolutionary Party and the Democratic Revolution Party, and weakened the PAN. 

The finance minister said only with the approval of the reforms,now further away than before, investment, efficiency and productivity of the country could improve. 

Gil added that "the post-electoral period shows peace in the markets, and a continuity of confidence in the management of the country's economy."

SARS batters Canada's tourism 
The Canadian tourism industry will suffer a loss of 519 million Canadian dollars (about 380 million US dollars) because of the outbreak of severe acute respiratory syndrome (SARS) this year, the Canadian Tourism Commission said Tuesday. 

Nearly 5,300 tourism-related jobs could be lost as a result of SARS, said the commission in reports assessing the impact of the Iraq war and SARS on Canada's tourism industry. 

It predicted a cumulative revenue shortfall of 722 million Canadian dollars (about 560 million dollars), and the loss of 7,350 positions by 2006 with an upsurge of the epidemic. 

The reports were prepared in May and June before a second outbreak of SARS gripped Toronto. 

There have been no new cases for more than a month, but 39 Canadians have died from the disease so far.

US, Mexico might lift ban on Canadian beef 
The United States, Japan and Mexico are moving to lift their ban on Canadian beef products, local press reported Tuesday. 

US ambassador to Canada Paul Cellucci told reporters Tuesday that his country is moving as quickly as possible to reopen the border to Canadian beef. 

He said President George W. Bush made it clear in a phone conversation Monday with Canadian Prime Minister Jean Chretien that he wants to get this issue resolved. 

The United States imposed ban on Canadian beef since the outbreak of mad cow disease in the country in May. 

For now, Canadian cattle farmers are losing about 11 million Canadian dollars (about 8 million US dollars) a day. 

On Monday, Mexico's ambassador to Canada said his country may soon lift ban on Canadian beef -- but only after Canadian beef is proved to be safe. 

Mexico is Canada's second-largest beef export market after the United States. Last year, Mexico purchased 197 million Canadian dollars (about 140 million dollars) worth of Canadian beef. 

Meanwhile, Japanese Agriculture Minister Yoshiyuki Kamei is scheduled to arrive here Saturday after a visit to Washington. TheCanadian government hopes to convince Kamei that Canada's beef is safe.

Argentine president to visit four European countries 
Argentine President Nestor Kirchner is set to start a European tour Thursday which will take him to Britain, Belgium, France and Spain, said the Argentine Presidency on Tuesday. 

Kirchner brought forward his departure by two days, but the itinerary is unchanged, it added. 

Kirchner will arrive first in London where he will participate in a "Progressive Governance" summit, the new name given to the center-left political movement previously known as "The Third Way." 

Presidents Luis Inacio Lula da Silva of Brazil, and Ricardo Lagos of Chile, are also expected to take part in the meeting which will be presided over by British Prime Minister Tony Blair. 

Next Tuesday, Kirchner visits Brussels, where he is expected tomeet European Commission President Romano Prodi. On the same day, the Argentine leader arrives in Paris for talks with French President Jacques Chirac. 

The following day, Kirchner travels to Madrid, where he will bereceived by Spanish King Juan Carlos and hold talks with Prime Minister Jose Maria Aznar. 

The president will return home for the anniversary of the 1994 bomb attack that destroyed the seat of the Mutualist Israeli-Argentine Association (AMIA), killing 80 people.