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AROUND THE WORLD

3 plane crash survivors remain hospitalized

RESOLUTE BAY, Canada (AP) -- Three survivors of a plane crash in Canada's Arctic region were recovering from their injuries Sunday as investigators sifted through the wreckage to determine what caused the Boeing 737-200 jet to slam into a hill in foggy weather, killing 12 people.

First Air charter flight 6560 crashed Saturday afternoon as it was approaching the airport near the tiny hamlet of Resolute Bay in the Arctic territory of Nunavut.

Royal Canadian Mounted Police Constable Angelique Dignard said two of the survivors -- a 7-year-old girl and a 48-year-old man -- were transported to a hospital in Ottawa from a medical facility in the Nunavut territorial capital of Iqaluit. A 23-year-old woman remains in a hospital in Iqaluit.

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Gaza militants agree to a cease-fire

JERUSALEM (AP) -- Gaza militants agreed to a cease-fire with Israel to stop spiking violence, a Hamas official said Sunday, after a deadly attack on Israelis near the Egypt-Israel border set off a three-day round of Israeli airstrikes and rocket barrages from Gaza.

The sudden flareup also threatened Israel-Egypt relations, after Egypt said five of its policemen were killed by Israeli fire as Israel's troops and aircraft pursued the militants responsible for killing eight people Thursday. Egypt complained strongly as thousands demonstrated in Cairo, and Israel apologized.

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Hikers' kin hopeful despite 8-year sentence

TEHRAN, Iran (AP) -- Relatives of two American men arrested more than two years ago in Iran said Sunday that the news they had received eight-year prison sentences for spying hit them hard, but they remain hopeful the men will eventually be released.

Shane Bauer and Josh Fattal were sentenced Saturday to three years for illegal entry into Iran and five years for spying for the United States. The two were arrested in July 2009 near the Iraq-Iran border along with a third American, Sarah Shourd, who was released in September on $500,000 bail and returned to the U.S. All three deny the charges, saying they were only hiking near the ill-defined border.

Samantha Topping, spokeswoman for Bauer and Fattal's families, sent a statement Sunday, saying their relatives had received confirmation of their sentences.

But the statement said the families hoped the two would be released, based on previous remarks from Iran's Foreign Minister Ali Akbar Salehi.

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Chancellor renews rejection of eurobonds

BERLIN (AP) -- German Chancellor Angela Merkel insisted Sunday that eurozone-wide government bonds wouldn't solve the current debt crisis, and said she sees no sign of a new recession in her own country -- Europe's biggest economy.

Financially solid Germany's government has led opposition to "eurobonds," viewed by some as a logical solution to the debt crisis that has pushed up troubled countries' borrowing costs.

Their rejection last week by Merkel and French President Nicolas Sarkozy hasn't stopped advocates -- in Germany's opposition and elsewhere in Europe -- pushing for them. Critics say they would raise costs unfairly for solid countries and could even deepen debt troubles.

Leaders put together a new rescue package for Greece and agreed to expand the powers of the current $633 billion eurozone rescue fund -- without increasing its size.