The Times story was based on interviews with government officials and outside experts, all of them speaking on condition their names would not be used. The National Intelligence Estimate, "Trends in Global Terrorism: Implications for the United States," describes Iraq as a spawning ground for Islamic revolutionaries.

The report reaches different conclusions than those contained in documents released by the Bush administration that focused on the dismantling of al-Qaida.

However, the report concludes that al-Qaida has become less important with the rise of "self-generating" small groups that use al-Qaida as a model.

BAGHDAD, Sept. 23 (UPI) -- The holy month of Ramadan opened Saturday in Iraq with a bomb that killed at least 35 people, mostly women lined up for kerosene in Sadr City.

Investigators say the bomb, which set off a massive blast when a tanker truck exploded, may have been placed by a woman, The New York Times reported. Men, who were scheduled to pick up kerosene Sunday, would have been searched.

Bassim Mohammed, an eyewitness to the bombing, said concrete security barriers may have increased the number of casualties by preventing victims from escaping.

Meanwhile, Iraqi defense officials said Saturday the leader of one of the most militant Sunni groups, Ansar al-Sunna, had been arrested about 50 miles north of Baghdad.

U.S. military officials did not immediately confirm the arrest of Sheikh Muntasser Hmoud E'laiwi El-Jbouri, whose group has been tied to al-Qaida.

Two coalition soldiers were killed by roadside bombs Saturday, military officials said. A U.S. soldier died in northern Baghdad and a Danish soldier in Basra.

NEWARK, N.J., Sept. 23 (UPI) -- The Episcopal diocese of Newark, which covers most of northern New Jersey, passed over a gay candidate Saturday when it selected its next bishop.

The Rev. Mark Beckwith, now rector of All Saints Church in Worcester, Mass., was picked on the third ballot, Episcopal News Service reported. Beckwith, who has also served congregations in the Newark diocese, is married.

The other candidates included the Rev. Canon Michael Barlowe, now the officer for congregational development in the Diocese of California. Barlowe has a long-term relationship with a fellow Episcopal priest.

Newark is the second Episcopal diocese this year to reject gay candidates for bishop. The Diocese of California's list of finalists included two men and a woman in same-sex relationships.

In the 1980s and 1990s, Newark's bishop was John Shelby Spong, who became one of the church's best-known advocates of gay ordination. Spong said he did not pay much attention to the issue until he became bishop and discovered that many of the priests in his flock were closeted gays.

KIGALI, Rwanda, Sept. 23 (UPI) -- Asian and African bishops of the Anglican communion, meeting in Rwanda, have adopted a formal proposal to split the church into two wings.

The plan would allow conservative Episcopal churches and dioceses in the United States to form a separate organization that would remain in the Anglican communion, The Times of London reported.

The main issue is the church's attitude toward homosexuality and especially the ordination of openly gay, non-celibate priests. The Episcopal Church forced the issue when it approved the New Hampshire diocese's choice of the openly gay Gene Robinson as its bishop.

"We believe that we would be failing in our apostolic witness if we do not make this provision for those who hold firmly to a commitment to historic Anglican faith," the bishops said.

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