Malaysia will not permit the United States to conduct air strikes and covert attacks against any terrorists, government leaders have said.

President McAleese has agreed with Malaysian Prime Minister Mahathir Mohamad that international conflicts should be resolved through diplomacy, officials in Kuala Lumpur said.

Malaysia today said the evidence is not strong enough to justify investigating claims Zimbabwe’s President Robert Mugabe tried to move £10m (€16m) from Channel Island banks to the Southeast Asian country.