New Year’s Eve violence in the Iraqi capital and an underlying threat of terrorism in the United States, Britain and Israel provided a grim counterpoint to the high spirits greeting 2004. Celebrations were happier in Australia, where Sydney’s famous harbor was alight with colorful fireworks, and in New Zealand, where thousands crammed into a public square, dancing and waving glow sticks. Still, a tactical response team scoured the streets of Sydney, looking out for everything from drunken revelers to any possible security threat. Pope John Paul II gave thanks for 2003 and prayed for world peace in 2004 during a vespers service at St. Peter’s Basilica. His New Year’s Mass on Thursday will mark the Roman Catholic Church’s World Day of Peace. In central Baghdad, a car bomb ripped through a restaurant that advertised a New Year’s Eve party with live music and bellydancing. Five Iraqis were killed and at least two dozen other people were wounded. Full Story