A panel convened by Congress to examine America’s government foreign affairs machinery has called for a complete restructuring and "a super-size international affairs agency" to improve America’s foreign policy planning and implementation.  Glenn Kessler writes in the Washington Post that the proposed "super-State," a Cabinet-level agency, would have four sub-Cabinet agencies focusing on "trade and long-term development; humanitarian crises and post-conflict states; political and security affairs; and public diplomacy."  Of all the panel’s recommendations, creating a Cabinet-level agency for foreign aid and development seems to have the broadest support.  See more here.

Karen DeYoung of the Washington Post reports that the Department of State will cut 10 percent of existing diplomatic personnel in 2008.  Vacancies were created around the world when mid- and upper-level diplomatic personnel moved to staff American embassies in Iraq and Afghanistan.  Many of these vacancies may now become permanent in part because Congress has rejected calls for further staff increases.  See the full story here.

California has been given the green light to regulate greenhouse gas emissions in cars, trucks, and SUVs by a federal judge, providing the EPA gives California and other states a waiver from federally-imposed fuel efficiency standards.  Judge Anthony Ishii rejected an auto industry claim that the Department of Transportation had final authority on fuel standards.  Now it’s time to see whether the EPA will allow 15 states to set their own environmental standards.  AP reporter Samantha Young’s story is available here.

Iraqi oil production is moving back to pre-2003 levels, providing the country’s central government with resources to stem the infrastructure and economic problems plaguing the country.  The lack of basic services has stoked public dissatisfaction with the U.S. military presence and the Iraqi central government.  Higher oil output, if maintained and applied consistently, could end up stabilizing Iraqi politics.  See Hassan Haffidh’s report in the Wall Street Journal here.