Italy's Prime Minister Silvio Berlusconi said his country's agent had told authorities in Iraq he was bringing out a just-released journalist hostage.

The U.S. is (surprise, surprise) denying this.

An excerpt:

But in his first major address since Friday's shooting strained relations between the United States and Italy, Prime Minister Silvio Berlusconi told legislators the car carrying the intelligence agent Nicola Calipari and journalist Giuliana Sgrena was travelling at a slow speed and stopped immediately when a light was flashed.

Berlusconi said Calipari had notified an Italian liaison officer, waiting at the Baghdad airport along with an American officer, that they were on their way.

However, he added, "I'm sure that in a very short time every aspect of this will be clarified.''

The idea that Calipari was killed by friendly fire is "painful'' to accept, Berlusconi said. But he reassured legislators: "The United States has no intention of evading the truth.''