West Bank ? Faced with a deepening budget crisis since Hamas’ election victory, the Palestinian Authority put off paying the January salaries of 137,000 government employees Thursday for at least two weeks as it struggles to find new sources of funding.

The delay in salaries, which were due Thursday, could foreshadow a far more serious government breakdown, with foreign nations threatening to freeze aid to the Palestinian Authority if the Islamic militant group takes power without renouncing violence or recognizing Israel.

The Palestinian Authority needs $116 million to cover the monthly payroll. It already was in danger of falling short on payday before Israel announced Wednesday it would hold up $45 million in January taxes it was to transfer to the Palestinian Authority.

South Korea

U.S., South Korea agree to launch trade talks

South Korean cars, cell phones and other consumer goods should drop in price if the United States and its Asian partner complete the biggest free trade deal since America tore down barriers with Mexico and Canada.

The talks to link the U.S. with its seventh-largest trading partner were announced Thursday. The negotiations, which can begin after a 90-day consultation period with Congress, are expected to take at least a year.

Approval by Congress could face stiff opposition from critics of the administration’s free trade policies, who are concerned that more U.S. jobs might go overseas.