Around the world: UK Government 'sees release of Lockerbie Bomber as mistake'

Sir Nigel Sheinwald's comment came as US Secretary of State Hillary Clinton said she would look into claims that BP lobbied for the release of Megrahi in order to smooth an oil deal with Libya.

The beleaguered oil giant - already under fire over the oil spill disaster in the Gulf of Mexico - admitted it pressed the UK Government over the signing of a prisoner transfer agreement with the Gaddafi regime, but insisted it had made no representations about Megrahi's release.

Sir Nigel said: "The British Government deeply regrets the continuing anguish that his release on compassionate grounds has caused the families of Megrahi's victims."

But he said the decision fell solely to the Scottish Government and the release licence did not provide a mechanism for a person released on compassionate grounds to be returned to prison if they survived longer than the period diagnosed by the medical authorities.

Couple spying for Cuba face long jail terms

US: A retired State Department worker faces up to life in prison and his wife a lengthy prison term for spying for Cuba for nearly 30 years.

Walter and Gwendolyn Myers both pleaded guilty to stealing U.S. secrets because of a shared communist ideology and admiration of the Cuban revolution.

CHINA: Southern China was today braced for the arrival of Typhoon Conson which has killed 37 people and left a trail of destruction in the Philippines.

Gabriel the dog walks the catwalk during the "Patterns for Paws" doggy fashion show in West Hollywood, to benefit the Amanda Foundation

Australian PM to call election

AUSTRALIA'S new prime minister Julia Gillard is expected to call an election this weekend for 28 August.

Ms Gillard has revived the fortunes of the ruling Labour Party since she took over from Kevin Rudd. She said there would be a place for him in a post-election cabinet.

Award for boat victim's family

A NEW ZEALAND court has ordered the driver of a tourist jet boat that flipped, killing a British doctor, to pay 11,700 compensation to the victim's family.

Jeffrey Donaldson pleaded guilty to operating a vessel in a manner causing unnecessary danger or risk.

Bank settles fraud charge

US bank Goldman Sachs has agreed to pay $550 million to settle civil fraud charges that they misled investors.

The settlement was announced hours after Congress gave final approval to the stiffest restrictions on Wall Street since the Great Depression.

It is the largest fine ever imposed on a US bank. The Royal Bank of Scotland, which is now 84% owned by the UK taxpayer and lost about $840m in investments, will receive $100m.

Malaysian airport authorities rescued 400 rare tortoises, tomato frogs and chameleons taped up and stuffed inside socks and other clothing.

Two women from Madagascar were arrested and could be charged with importing wildlife without a permit.