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Wednesday Briefing

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Editors’ choice: The Wonder years are coming to an end in Southern California. The white bread that has long been a school lunch staple is losing market share, so Interstate Bakeries will stop making it locally this fall. If you get a craving for it, you’ll have to go to Las Vegas. BUSINESS, C1

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The World

Controversy over Mexican senator

Sen. Rene Arce Islas denies a report alleging that he is a leader of the Popular Revolutionary Army, which took responsibility for recent bombings of oil and gas pipelines. The report also says the senator is using a pseudonym, an accusation he does not dispute. Page A3

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Extradition effort

Colombia says it wants to extradite former Israeli army commando Yair Klein, arrested Monday in Moscow on terrorism charges stemming from allegations that he trained Colombian paramilitary militias in the 1980s. Page A4

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The Nation

Craig denies

any wrongdoing

Seeking to salvage his reputation and quell the media storm stirred by his guilty plea to disorderly conduct charges, Sen. Larry E. Craig (R-Idaho) denies making a sexual advance to an undercover officer in a men’s room. “I am not gay and never have been,” he says. Page A7

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Bush’s tough talk

President Bush warns that the Middle East faces a bleak future if the U.S. fails in Iraq, evoking a “dark vision” of terrorist havens, disrupted energy supplies and a regional arms race triggered by a nuclear-armed Iran. Page A6

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California

LAPD alters car impound policy

The police department has imposed a moratorium on impounding vehicles of unlicensed drivers, many of whom are illegal immigrants who cannot get driver’s licenses. The city attorney says the practice may be unconstitutional. Page B1

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L.A. schools plan

In a compromise with his one-time LAUSD foes, Mayor Antonio Villaraigosa and his education aides will help direct two of the city’s lowest-achieving high schools next fall. Page B1

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Obituaries

Lesbian activist and historian

Yolanda Retter was an activist and scholar who worked to raise the visibility of lesbians and minorities and preserve their history. For the last four years, she was the librarian and archivist for the UCLA Chicano Studies Resource Center. Page B8

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Business

Prices of homes fall 3.2% in U.S.

The pace of the second-quarter decline was the fastest in two decades and signaled that the housing slump was worsening. A quarterly index found that sale prices in California were down 4.1% from a year earlier. Page C1

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Sports

Birmingham’s Knox a cut above

The high school running back, who has accepted a scholarship to UCLA, not only sets himself apart with his talent on the football field but also by the way he reveals his character to teammates, coaches, teachers and referees and how he shows concern for those around him. Page D1

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Highway 1

With G37, Infiniti goes the extra mile

Japanese car maker Infiniti has upgraded its G35 sport coupe with the 2008 G37, increasing the horsepower substantially and making welcome improvements to the interior and exterior. It brings everything right into focus, writes Dan Neil. Page G1

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Calendar

Every female lead could use a buddy

Hollywood has introduced a twist on the Best Friend Forever. The Black Best Friend is the wise, loyal and often sassy sidekick to the white heroine seen in so many TV shows and movies. Do the friend roles indicate limitations on black actresses or open doors for them? Page E1

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Food

The kid who runs the kitchen

Executive chef Matt Molina, 29, is coolly running two of L.A.’s hottest restaurants and earning praise from high-profile bosses Nancy Silverton and Mario Batali. Video at latimes.com: Behind the scenes at Mozza, Molina talks about how he began to think like a chef. Page F1

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