From the World-Wide Resourses of the Western Australia
Reserch Senter(*)
		OIL THE NEWS THAT FITS MY VIEWS   #203
                ===============================
In the Run-Up to World War III, Reliably Reporting the News Relevant
to Extreme Right-Wing Democratic Socialists Everywhere
(validated for RiteThink(tm) by the Office of Our Man in Can-berra).

Our Home Page: <http://www.chickenhead.com/loserscopes/>
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Even More Uneniable Evidence: <http://www.abc.net.au/cnnnn/profiteering/terrorthon/>

US Centcom News Releases: <http://www.centcom.mil/CENTCOMNews/release_list.asp>
Iraqi Body Count: <http://www.iraqbodycount.net/> [9,211 as at 02 Jun 2004].
UN Mailing List: <http://www.kymhorsell.com/UN/>
Some Of The News, Some Of The Time: <http://www.chaser.com.au/default.asp?check=No>
This Stuff Blogged: <http://kymhorsell.blogspot.com/>
Also Kindly Archived: <http://www.kymhorsell.com/OIL/>

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Selecting latest news stories and other data for you...
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If you transfer a prisoner to an accepting power ... Australia at that
point doesn't kiss goodbye to its responsibilities [under the Geneva
Conventions].
-- Opp'n For Aff rep Kevin Rudd, 03 Jun 2004.
   The Howard govt says it's not responsible for the treatment POW's
   received after Aussie troops handed them over to the US.

It was a personal decision.  And had only one basis in fact.  The
well-being of my wonderful family.
-- George Tenet, 03 Jun 2004.
   Tenet had assured the Pres that finding WMD in Iraq had been a
   certainty. He was sitting behind Sec of State Powell when he made
   his controversial presentation to the UN, based on CIA intel.

----------------------------------------
Thu, 03 Jun 2004.

	HEADLINES:
Markets weather high oil price
Iraqis: US officials stalling "oil-for-food" probe
US moves to tone down UN prison abuse report
SA considers sexual abuse inquiry
Hicks, Habib detail abuse to Aust officials
US-promised "full sovereignty" of Iraq after Jun 30 might not be so
US, Brit offer rough dates to UN for troops to leave Iraq
US military secures extra $US25 bn for Iraq, Afghanistan
US Army temporarily stops retirements for Iraq-bound troops
Self-rule is test of nerves on local Iraq councils
Possible roadblocks in Bush plan for Iraq
PM unconvinced by Iraq troop withdrawal deadline
Neocons fall from favour after debacle in Iraq
More fighting in Iraq's holy cities despite truce
Iraq in transition
Human rights must be a priority for Iraq's new leaders
Hill unable to provide Iraq prisoner protocols
Egyptian, Turk held hostage in Iraq: footage
Dissent as Iraq reviews leaders
Concern over UN's Iraq resolution
Chalabi says key Iraq cabinet posts agreed
Cash crunch curbs rebuilding in Iraq
Bush denies new Iraqi leaders are his puppets
Bremer "the dictator of Iraq"
AUS not responsible for Iraq prisoners: Downer
"Sovereignty" at issue in final push for Iraq transition plan
"Al Qaeda" claims attack on US military in Saudi
3 injured in E Timor chopper crash
5 aid workers killed in Afghanistan ambush: report
ABC criticised over "Playschool" same sex story time
Air Canada boss feels employees' pain, takes fresh pay cut
American contractors' role in Chalabi raid revealed
Amnesty seeks nat'l domestic violence strategy
Army plan aims to keep Soldiers on duty
Bail laws may be toughened
Bakhtiyari children to remain in detention
Bush consults lawyer in CIA leak case
Bush thanks veterans, then cuts their health care
Call to lift renewable energy goal
Democrats lobby US Sens to reject FTA
Economy growing at slower pace
Experts predict terrorists will use "dirty bomb"
Figures point to end of decline in services sector growth
Final witness appears at Falconio murder hearing
Govt announces $25m for child care
Govt defends proposed electoral roll changes
Growth slowdown hits dollar
Howard lobbies Schwarzenegger on gas
Indonesian expulsion of terrorism expert "outrageous"
Min critical of bail for terror suspect
Mitsubishi admits to covering up car defects
Moroney moves to appeal Khazal bail decision
Murderer to be released from NSW prison
Murdoch proceedings ahead of schedule: DPP
NSW approves AUS's 1st drug treatment jail
Nat'l strategy needed on Aboriginal child health: report
New vehicle sales plummet in Canada as gasoline prices soar in May
OPEC ups efforts to contain price scare
Open finding expected in Norfolk Is murder inquest
PM's death "would cost $2.34 mn"
Reports: Chalabi told Iran that US had broken its intel service codes
Ruddock flags nat'l no-bail laws for terror suspects
SYD man arrested on terror charges
Saudi militants fire at Americans
Suspected Saudi militants shot
US denounces expulsion of Indonesian analyst
Vaile to outline case for no wheat grower compo
Vic man dies in NZ hospital
Vic police corruption report tabled in Parliament
Vic to up police anti-corruption powers, funding
Vic top cop warns there's more corruption
Vics miss out on uni place: report


OPEC ups efforts to contain price scare
Beirut (Reuters).  OPEC made a renewed bid on Wed to wrestle world oil
prices lower by boosting export flows, even before an expected cartel
decision to raise formal output limits. The United Arab Emirates said
it was immediately releasing an additional 400,000 bbl daily this
m, complementing 700,000 bpd already on the way from Saudi Arabia.
The extra crude is being pumped regardless of the details to be agreed
in an official new deal by the Organization of the Petroleum Exporting
Countries at a Thu meeting in Beirut.
The UAE move, announced by oil minister Obaid al-Nasseri, helped
undercut prices from a new record $42.45/bbl in early Wed trade. US
crude lost $2.37 to close at $39.96/bbl.
Leading exporter Saudi Arabia appears to have backing from most in
OPEC to lift supply quotas at the top of the range under discussion --
2.5 mn bpd, or 11%, to 26 mn bpd.
"That is our best bet," said Qatari Oil Min Abdullah al-Attiyah. "We
cannot control the fear factor, the speculators. We wish we
could. What we can do is increase supply."
Late doubts emerged when an Iranian delegate said Tehran preferred an
increment of only 2 mn bpd, 8%, but Iran is thought unlikely to block
a deal.
OPEC gathers at 0900 GMT, 1200 local time, on Thu to discuss policy
with a formal session scheduled for 1300 GMT, 1600 local.
Irrespective of official policy, Saudi and the UAE together will
deliver about a mn bpd of real extra oil to meet the demand
being generated by world economic growth.
Others in OPEC are at full stretch and group output is already
estimated about 2.3 mn above existing limits of 23.5 mn bpd.
* NO GUARANTEES
Saudi Oil Min Ali al-Naimi said there were no guarantees OPEC could
reverse an oil price scare that is being fuelled by speculative investors.
"The main reason is because there is a perception of a future shortage
as a result of instability in producing countries. There is no
shortage now, but they are speculating," said Naimi.
He sought to quell fears about Riyadh's ability to contain a spate of
Islamic militant attacks after shootings on Sat in the Saudi oil city
Khobar that left 22 dead.
"The paranoia about terrorism threatening all the oil establishments
in the world -- that's not true," the minister said. "I tell you I am
confident that facilities in Saudi Arabia are very, very secure and
they are protected very strongly to prevent anything happening to them."
Algeria proposed OPEC take the only remaining available step to
undermine prices by suspending quota limitations altogether.
That would not mean much more OPEC oil because producers have little
spare capacity left. But it would give Saudi official cartel clearance
to pump at will, and perhaps have more of a psychological impact on prices.
"It is the only way to make an impact on the market," said Algerian
Oil Min Chakib Khelil.
Kuwait and Qatar said they would oppose the idea and others did not
express support.
"Suspension of quotas is the ultimate weapon," said consultant Roger
Diwan of Washington's PFC Energy. "Is this the time to do it? I don't
think so because there's enough oil on the market."

Markets weather high oil price
High oil fails to dampen Wall Street.
NY/Sydney.  Volatility remains the hallmark of trade on crude oil
markets, with a big slump in prices in the late session after the
previous day's surge to record highs.
The drop below $US40/bbl has calmed nerves on Wall Street.
Investors have been focused on the threat to the broader economy if
supply is significantly disrupted or high oil prices are sustained.
On the NY Stock Exchange, the Dow Jones industrial average has closed
60 points higher at 10,263.
Shares in Boeing have taken off after Air NZ announced it would invest
more than $850 mn on 10 new Boeing aircraft.
There has been a small dip on the high tech Nasdaq exchange.  The
Nasdaq composite index has finished 2 points behind at 1,989.
There has been virtually no overall movement on the Brit share market.
London's FT-100 index is up one-tenth of a point at 4,423.
The fall of oil comes amid profit taking and a belief that OPEC will
decide to increase production quotas at a meeting in Beirut later today.
The United Arab Emirates has said it will immediately release an extra
400,000 bpd this m.
On the floor of the NY Mercantile Exchange, the black gold has tumbled
$US2.37 to $US39.96/bbl.
Analysts say the shock is subsiding after the weekend hostage-taking
in Saudi Arabia, which left 22 people dead.
The market hit a record high in AUS yesterday, despite and because of
the earlier surge in oil prices.
Oil producers saw their shares move ahead, while other industrials
were able to shrug off the energy concerns, as the Reserve Bank again
held steady on interest rates.
The All Ords ended 18.5 points up at 3,473, an all-time closing high.
The AUD has slumped below 70 US cents overnight, amid disappointment
with the lower than expected economic growth rates posted in the Mar
quarter nat'l accounts.
At around 7 am the dollar was at 69.71 US cents, down almost one cent
on yesterday's local close.
On the cross-rates it was at 0.5705 euros, 77.30 Japanese yen, 38
pence Sterling and $NZ1.12.
Gold was valued at $US390.90/oz.

Iraqis: US officials stalling "oil-for-food" probe
NY (FoxNews).  US officials charged with managing Iraq until Jun 30
are facing accusations that they are trying to hinder the
investigation into what happened to $mns from the UN oil-for-food program.
Some members of the now-dissolved Iraqi Governing Council claimed that
coalition administrator L Paul Bremer has been hindering the
investigation to prevent any revelations that might embarrass the UN
during the critical transition of power in Iraq.
But coalition officials strongly deny the claim.
"We believe it is critical that this investigation be done seriously,
that people are held accountable," Bremer rep Dan Senor told Fox News.
"Iraqis want to hold people accountable. They want to get to the
bottom of this and they want it to be done professionally.
And the approach that Ambassador Bremer has taken, at the behest of
Iraqis, fits that model."
But lawmakers on Capitol Hill probing the oil-for-food scandal have
also questioned Bremer's decision to give control of the investigation
to the Iraqi Board of Supreme Audit, a Saddam Hussein-era body.
Rep Christopher Shays, R-Conn, sent a letter to Bremer on May 21
raising questions about entrusting the investigation to figures who
may have allegiances to Saddam.
"Why are officials from the Saddam era more trustworthy stewards of an
investigation of oil for food than the coalition-appointed Iraqi
Governing Council or its successor?"  Shays wrote.
Coalition officials have not been able to provide the names of the
1,100-member group that critics say is certain to have some holdovers
from the old deposed regime.
But Senor insisted to Fox News that the BSA is untainted by corruption.
"We did a thorough vetting of the individuals on that body and anybody
who was involved in any of the shenanigans or the crimes of the former
regime were cleared off it," Senor said.
Ahmad Chalabi, the Iraqi Governing Council member who has fallen out
of favour with US officials because of allegations he passed US secrets
to Iran, said protecting the UN is exactly what Bremer is doing.
Chalabi said the raid on his home and offices in Baghdad 2 wk ago was
another part of that cover up.
A London-based consultant to Chalabi and the Governing Council, Claude
Hankes Drielsma, also told Fox News last wk that his computer was
hacked into and all its files destroyed on the same day that Chalabi's
offices were raided. Drielsma describes it as a strange coincidence.
Meanwhile, Benon Sevan -- the man who ran the oil-for-food program and
who has refused to answer Fox News' questions about it -- has written
an e-mail to friends admitting there were problems but blaming the
Security Council. In the e-mail, obtained by The NY Times, Mr Sevan
writes, "It could have been better administered had we been allowed by
the member states to do so."

Air Canada boss feels employees' pain, takes fresh pay cut
Montreal (AFP).  Robert Milton, CEO of insolvent Air Canada, parried
claims he had not shared sacrifices made by employees to keep the
carrier aloft, by taking a new 5% pay cut.
Milton, who absorbed a 15% hit to his wage packet last y, announced
the move in a letter to employees of the airline, which slumped into
bankruptcy protection last y.
He did not divulge his new salary, but media reports put it at around
$928,000 [$US677,000].
Milton previewed a new $16.4 mn cost-cutting exercise, which will see
250 non-union employees lose management jobs.
Other executives and snr management of Air Canada and its subsidiaries
will face a pay cut of 2.5%, to bring total cuts in their wage packets
to 7.5%.
Milton and his management team had been accused of evading the
economic pain imposed on employees by a brutal round of cost cutting,
designed to pull the carrier out of bankruptcy.
The airline last m reached a deal with the Canadian Auto Workers Union
to complete a $200 mn round of cost cutting.
The cuts were demanded by corporate saviour Deutsche Bank as a
condition of an $850 mn rights issue.
Thanks to the latest round of cost cutting, and a $1.1 bn austerity
drive last y, many employees face longer hrs, tougher conditions and
a diminishing paycheck, according to unions.

New vehicle sales plummet in Canada as gasoline prices soar in May
Toronto (CP).  New vehicle sales in Canada tumbled in May, with
virtually every automaker reporting sales drops compared to the same
m last y despite steep incentives aimed at luring consumers to
dealer lots.
The declines came as gasoline prices soared across the country, though
several automakers said sales of some of their larger vehicles
increased despite higher prices at the pumps. There were 162,588
vehicles sold in Canada last m, down 11% from the 182,730 cars and
trucks sold in May 2003, according to figures compiled Wed by
DesRosiers Automotive Consultants Inc It was a very disappointing m
for the industry compared to Apr, when automakers sold 4.5% more
vehicles in Canada versus Apr 2003. That was 1st y-over-y monthly
increase since last Jul, and was attributed to heavy incentives that
lured consumers to dealer lots, the start of the spring selling
season, and an improving economy.
Those Apr gains evaporated in May. Sales of light trucks -- a broad
category that includes pickups, minivans and sport utility vehicles --
fell 12.6%, while sales of passenger cars dropped 9.8% compared to last y.
The May sales picture in Canada was contrasted with much brighter
results S of the border, where US automakers reported higher May
vehicle sales and claimed that sky-rocketing gas prices did not appear
to dampen demand for pickups and sport utility vehicles.
General Motors Corp, the world's biggest automaker, said its US sales
were up 6.8%. Ford Motor Co saw US sales of its Ford, Lincoln and
Mercury brands rise one%, while DaimlerChrysler AG's Chrysler Group
reported that sales were 5.2% higher than in May 2003. GM's US truck
sales soared 11.4%.
"Consumers are weathering the passing storm related to the temporary
increase in fuel prices and voting their preferences by purchasing
record numbers of pickups and SUVs," said John Smith, group vice
president, GM N America Vehicle Sales, Service and Marketing, adding
that the company has seen "little evidence that rising fuel prices are
impacting sales mix" in Canada or the US.
Overall, new vehicle sales in Canada -- totalling 640,472 units -- are
down 5.2% in the 1st 5 m of this y compared to the same 2003 period.
GM Canada once again led the pack, though its sales of 46,996 vehicles
were 12.3% below what it reported in May 2003. Big 3 competitors Ford
and DaimlerChrysler also posted declines -- Ford Canada's sales
dropped 16.6%, and DaimlerChrysler Canada's fell 3.4%.
Most offshore-based competitors failed to capitalise on the Big
Three's losses, including Honda, whose sales in Canada tumbled
24.1%. The company defended itself by suggesting its drop was
"reflecting the competitive nature of the market place."
Toyota's sales slipped 7%, and Nissan's dropped 12%.
Among the handful of manufacturers posting sales increases for May
were BMW (up 2.8%), Mazda (21.1%), Suzuki (3.2%) and Land Rover
(4.3%). Hyundai, Infiniti, Kia, Mitsubishi and Volkswagen all had
double-digit%age declines.
Several automakers looked for silver linings within their numbers,
including Ford Canada, which despite its 16.6% sales drop for the m
reported strong sales of some of its larger vehicles.
Its F-Series trucks had their best May since 2000 with an increase of
4% and continued to be the country's best-selling pickup truck. Also,
the Ford Escape, which is out-selling all other SUVs in Canada, saw
sales rise 2% last m over May 2003.
"In a m where the total industry declined from last y, we are pleased
to see continuing sales increases by F-Series and Escape," said Mike
Herniak, VP, general marketing, for Ford Canada.
DaimlerChrysler reported a comeback in sales of the Caravan, the
Windsor, Ont-built minivan which was the best-selling vehicle in
Canada from 2000 to 2002. It was unseated last y by Ford's F-Series
pickup trucks.
DaimlerChrysler said there was a 10.6% increase in sales of the
Caravan over May 2003, citing rising interest in the minivan's "Stow
'n Go" seating and storage system. Caravan sales are up 5.8% y to date.
Another Windsor-built Chrysler product -- the Pacifica sports tourer
-- had a 52.3% increase in sales last m compared to the same m last
y. And its new 300 and 300C Chrysler sedans had sales of 1,645 units
in May, more than double its Apr sales.

Mitsubishi admits to covering up car defects
Tokyo.  Struggling Japanese carmaker Mitsubishi has been hit with a
fresh scandal, with the company admitting to covering up defects in
more than 100,000 vehicles.  In a late-night media conference,
Mitsubishi admitted that it had covered up 92 different types of
defects during the last decade.  More than 150,000 vehicles will now
be recalled.  Mitsubishi says it does not yet know if any of the
vehicles were exported to AUS.  The company says it wants to "deeply
apologise" for damaging the trust of consumers and society.  It is the
latest blow to the carmaker's reputation.  Earlier this y,
Mitsubishi's truck-making affiliate acknowledged it had covered up
defects that had led to crashes -- some of them fatal.

3 injured in E Timor chopper crash
Dili.  3 Aussies have been injured in a helicopter crash in East Timor.
2 of those injured will be evacuated to AUS.
The UN-contracted helicopter was responding to a request to take a
pregnant woman to Dili for treatment.
The Bell 212 crashed nr Same in the Manufahi District just before 5 pm
ACST yesterday.
There were 5 Aussies on board, including 3 crew and a military doctor
and nurse.
The female nurse suffered a broken jaw and will be flown to SYD, while
one of the crew members has a broken leg and will be flown to Darwin.
The 3rd injured crew member will remain in Dili.
UN Mission of Support in E Timor rep Wilton Fonseca says there are few
details about the crash.
"The weather conditions in that area were not very good," he said.
He says investigation into the accident is under way.
"Immediately after we learned about the crash, 2 helicopters were sent
to the area," he said.
"One of them brought the crew and the nurse and the doctor back to
Dili and the other one brought the pregnant lady to Dili Nat'l Hospital."

US, Brit offer rough dates to UN for troops to leave Iraq
NY (HindustanTimes/AFP).  The US and Brit have presented the UN
Security Council with a revised resolution on Iraq that sets a rough
date for US-led troops to leave the country.
The changes were made after an outcry from other council nations about
sending a clear signal that Iraq will gain full sovereignty when the
US-led occupation hands over power Jun 30 to an interim govt.
Under the new draft, obtained by AFP, the mandate of US-led troops who
will remain in Iraq after this m would expire "upon completion of the
political process" to create a constitutionally elected Iraqi govt.
But with that expected to take until late 2005 or even early 2006, it
was not immediately clear if the changes would satisfy opp'n to the
1st text led by China, France and Germany.
Washington and London had originally rejected the idea of a fixed date
for the troops to leave, arguing that the uncertain security situation
on the ground made it impossible to predict a time for withdrawal.
No date has yet been set for a vote on the resolution, intended to get
internat'l backing both for the newly-installed caretaker Iraqi govt
and the US-led multinat'l force that will remain.
Initial reaction from some council members was largely positive,
offering the US and Brit hope of relatively quick action on the
measure with the hand over deadline approaching.

US Army temporarily stops retirements for Iraq-bound troops
Washington (Bloomberg).  US Army personnel from both active and
reserve units who are tapped for duty in Iraq or Afghanistan can't
retire or transfer until after the unit returns home, the service announced.
It's not clear how many troops will be affected, Lt Gen
Franklin Hagenbeck, deputy chief of staff for personnel, said. The
last time the Army gave this order was during the 1990 build-up to the
Persian Gulf War and it affected 45,000, he told a breakfast meeting
of defence reporters in Washington.
The order is the latest move to buttress US forces in Iraq.
Earlier, tours for 20,000 soldiers were extended 3 m, a brigade of
3,600 troops was moved from S Korea to Iraq, and the Army said that 2
premier units used to train deploying units will themselves be sent to Iraq.
The US plans to keep at least 138,000 troops in Iraq through 2005. The
intent to cut the force to between 105,000 and 115,000 troops as
political power is turned over to an interim Iraqi govt was shelved in
the face of renewed insurgencies that produced the deadliest fighting
since the last y's war.
Pres George W Bush yesterday warned Americans to expect more violence
before the Jun 30 transfer of sovereignty.
"There's still violent people who want to stop progress," he told
reporters at the Whitehouse in Washington.
The Army's new "stop-loss" order for its force in Iraq "will diminish
over time," Hagenbeck said. "As the [troop] footprint shrinks and
conditions change within Iraq there will be fewer units to deploy in
that theatre."
He said it would be inaccurate to portray the "stop-loss" order as a
desperate step to retain troops.
"It's the wrong conclusion to draw -- it's not a search for troops,"
Hagenbeck said. "We are trying to take units that were manned about
the same time and that have trained together to deploy together," he
said. "We've got people raising their hand that want to go," he said.

Army plan aims to keep Soldiers on duty
Washington (AP).  Thousands of soldiers who had expected to retire or
otherwise leave the military will be required to stay if their units
are ordered to Iraq or Afghanistan.
The announcement Wed, an expansion of a program called "stop-loss,"
affects units that are 90 days or less from deploying, said Lt Gen
Frank L "Buster" Hagenbeck, the Army's deputy chief of staff for personnel.
Cmdrs can make exceptions for soldiers with special circumstances.
Otherwise, soldiers won't be able to leave the service or transfer
from their units until they return to their home bases after their
deployments end.
The Army is struggling to find fresh units to continue the occupation
of Iraq. Almost every combat unit has faced or will face duty there or
in Afghanistan, and increased violence has forced the deployment of an
additional 20,000 troops to the Iraq region, straining units even further.
The move allows the Army to keep units together as they deploy,
Hagenbeck said. Units with new recruits or recently transferred
soldiers would not perform as well because the troops would not have
had time to work together.
"The rationale is to have cohesive, trained units going to war
together," Hagenbeck said.
Since the Sep 11, 2001, attacks, every Army unit ordered to Iraq,
Kuwait, Afghanistan and nearby countries has faced a similar rule,
although it has been applied in a piecemeal fashion. Army officials
portrayed Wed's announcement as an administrative change that would
serve as a catchall for every unit that deploys to those combat areas
in the future.
Initially, the expanded order will affect several units about to go to
Iraq: most of the 2nd Brigade of the 10th Mountain Division, from Fort
Drum, NY; the 265th Infantry Brigade of the Louisiana Nat'l Guard;
the 116th Armored Brigade of the Idaho Nat'l Guard; the 278th Armored
Cavalry Regiment of the Tennessee Nat'l Guard, and the 42ID's HQ
staff, from the NY Nat'l Guard.
The 2nd Brigade of the 2ID, a S Korea-based unit, is expected to
deploy later this summer and will be subject to the expanded stop-loss
program as well, officials said.
There has been criticism of the program as contrary to the concept of
an all-volunteer military force. Soldiers planning to retire and get
on with their lives now face more m away from their families and homes.
In an opinion piece in Wed's NY Times, Andrew Exum, a former Army
captain who served under Hagenbeck in the 10th Mountain Division in
Afghanistan, called the treatment "shameful."
"Many, if not most, of the soldiers in this latest Iraq-bound wave are
already veterans of several tours in Iraq and Afghanistan," he
wrote. "They have honourably completed their active duty obligations.
But like draftees, they have been conscripted to meet the additional
needs in Iraq."
Hagenbeck said the stop-loss move is necessary only because the Army
is also undergoing a major reorganisation that requires some units to
be taken off-line while they are restructured.
Hagenbeck had no numbers on how many soldiers would be affected. The
stop-loss expansion is indefinite, officials said.
Typical turnover requires an average division to replace about a
quarter of its strength -- perhaps 4,000 soldiers -- over an 18-m
period, an Army rep said.

PM unconvinced by Iraq troop withdrawal deadline
Canberra.  PM John Howard will use his talks tomorrow at the White
House to urge US Pres George W Bush to press ahead with the
transfer of power in Iraq.
Mr Howard has also indicated he could now accept a timetable for a
troop withdrawal from Iraq.
The proposed US-Brit United Nations Sec Council resolution calls for a
withdrawal of troops upon the completion of the political process,
which is understood to be late next y or Jan 2006.
Mr Howard says this is a long way from the Opp'n leader's call to
bring home Aussie troops by Christmas.
"I have said that it's not a good idea to start setting precise dates,
but you are talking of course in relation to 2006," he said.
"You're talking about 2 y from now, so it's a big difference from
talking about next Christmas."
Mr Howard says his main message to Mr Bush is to continue with the
shift to an interim Iraqi govt.
"The prisoner abuse issue has made the articulation of the case
harder, but it should not alter the fundamental position," he said.
Mr Howard meets with Mr Bush, Vice Pres Dick Cheney and congressional
leaders tomorrow to push for the inclusion of the Aussie free trade
agreement on the legislative calendar this y.

Neocons fall from favour after debacle in Iraq
Hawks' final demise marked by unveiling of interim govt
Washington (The Daily Star).  14 m after reaching the zenith of their
influence on US foreign policy with the invasion of Iraq,
neoconservatives appear to have fallen entirely out of favour, both
within the Bush Admin and in Baghdad.
Signs of their defeat at the hands of both reality and the so-called
"realists," who are headed within the Admin by Sec of State
Colin Powell, are virtually everywhere, but were probably best marked
by Newsweek magazine's cover last wk, depicting a framed photograph of
the neocon-championed Iraqi politician Ahmed Chalabi that had been
shattered during a joint police-US raid on his HQ in Baghdad. "Bush's
Mr Wrong" was the title of the feature article.
The victory of the realists, which also include the uniformed military
and the CIA, appeared complete Mon with the unveiling of the interim
Iraqi govt to which an as-yet undefined sovereignty is to be
transferred from the occupation authorities Jun 30.
Not only was Chalabi's arch-rival-in-exile, Iyad Allawi, approved by
the Iraqi Governing Council (GC) as prime minister, but neither
Chalabi nor any of his closest GC associates, especially Finance Min
Kamel al-Gailani, who is accused of handing over much of Iraq's
banking system to Chalabi during his tenure, made it into the final lineup.
"We need to restrain what are growing US messianic instincts -- a sort
of global social engineering where the US feels it is both entitled
and obligated to promote democracy -- by force if necessary," said Sen
Pat Roberts, a conservative Kansas Republican and chairman of the
Senate Intel Committee, in a speech last wk that was understood here
as a direct shot at the neocons.
The neoconservatives, a key part of the coalition of hawks that
dominated Bush's post-Sep 11, 2001, foreign policy, were the 1st to
publicly call for Saddam Hussein's ouster, which they saw as a way to
transform the Arab world to make it more hospitable to W values, US
interests, and Israel's territorial ambitions.
Since the latter part of the 1990s, when they led the charge in
Congress for the 1998 Iraq Liberation Act, Chalabi and his Iraqi Nat'l
Congress (INC) was their chosen instrument to achieve that transformation.
While no neocons were appointed to Cabinet-level positions under
former US Pres George H W Bush, they obtained top posts in the offices
of Def Sec Donald Rumsfeld -- Deputy Def Sec Paul Wolfowitz as and
Undersecretary for Policy Douglas Feith -- and Vice-Pres Dick Cheney,
whose chief of staff and nat'l security adviser is I Lewis Libby. On
the Whitehouse nat'l security council staff, they were able to place
former Iran-contra figure Elliott Abrams and Robert Joseph in key
positions dealing with the Middle E and arms proliferation, respectively.
Moreover, Rumsfeld's Defense Policy Board (DPB) is dominated by
neocons, including former chairman, Richard Perle, as well as former
CIA chief James Woolsey, former arms-control negotiator Kenneth
Adelman, and military historian Eliot Cohen.
It was the neocons, more than any other group, who pushed hardest for
war in Iraq after Sep 11 and predicted, backed up by Chalabi's
assurances, that the war would be, among other things, a "cakewalk"
and that US troops would be greeted with "flowers and sweets."
Within the Admin, the neocons, again relying heavily on Chalabi's INC,
developed their own intel analyses to bolster the notion of a link
between Saddam Hussein and Al-Qaeda and exaggerated the ousted
leader's alleged weapons of mass destruction (WMD) to provide a more
credible pretext for war. Their friends on the DPB and in the media
then stoked the public's fears about these threats through frequent
appearances on television and a barrage of newspaper columns and
magazine articles.
While analysts and regional experts at the CIA and the State Dept,
which had dropped Chalabi as a fraud and a con man in the mid-1990s,
tried to resist the juggernaut, they were consistently out-flanked by
the neocons whose influence and ability to circumvent the professionals
were greatly enhanced by their access to Rumsfeld and Cheney, who
served as their champions in the Whitehouse and with Bush personally.
Their influence reached its peak in early Apr when Chalabi and 700 of
his paid INC troops were air-lifted by the Pentagon to the S city of
Nasariyyah on Cheney's authority against Bush's stated policy that the
US would not favour one Iraqi faction over another. Bush's own nat'l
security adviser, Condoleezza Rice, professed surprise when she was
informed of it by reporters.
While they were still riding high as US troops consolidated their
control of Iraq, their star began to wane already last Aug as it
became clear that Chalabi's and the neocons' predictions about a
grateful Iraqi populace were about as well-founded as their certainties
about Saddam Hussein's ties to Al-Qaeda and his WMD stockpiles.
Sensing trouble ahead, Rice asked former ambassador to India, Robert
Blackwill, to return to the Whitehouse, where he had been her boss
under the former Pres George H W Bush. By Oct, Rice and Blackwill had
formed an inter-agency Iraq Stabilization Group that gradually wrested
control of Iraq policy from the Pentagon.
It was a process in which Coalition Provisional Authority chief Paul
Bremer, who had come to detest Chalabi and his neocon backers in
Baghdad and Washington, was an enthusiastic participant and which was
effectively completed with the announcement late last m that the State
Dept was taking over the $14 bn in reconstruction money that the
Pentagon has not yet spent.
In the last m, the neocon retreat has turned into a rout, particularly
as reports of Chalabi's coziness with Iran gained currency, and as
important snr military officers indicated that a military victory over
the Iraqi insurgency was not possible.
The public attention given to a blistering attack on the neocons by
the former chief of the US Central Command, Gen Anthony Zinni, on
the popular television program "60 Minutes," also demonstrated that
the media, ever cautious about taking on powerful figures, now sees
them as fair game.

Bush thanks veterans, then cuts their health care
Op/Ed (The Daily Mis-lead).  Pres Bush spent the Memorial Day weekend
thanking the nation's veterans for their service, saying "we
acknowledge the debt [we owe them] by showing our respect and
gratitude." Yet, his rhetoric came just hrs after the Bush Admin
announced new plans to slash veterans health care funding if it
returns to power in 2005.  Late last wk, the Admin released a memo
detailing a plan to cut $1 bn from the Veterans Admin in the 1st
budget of its 2nd term. The cut would come even after the Whitehouse
has tried to close veterans hospitals throughout the country, and has
proposed veterans health care budgets that have been criticised by
veterans groups and the Pres's own Veterans Affairs secretary. It also
comes after the president decided to cut off 164,000 veterans from
their existing prescription drug coverage, and threatened to veto any
bill that would allow veterans to receive both the military pension
they were promised, and any disability compensation to which they are entitled.

Bush consults lawyer in CIA leak case
Washington (AP).  Pres Bush has consulted an outside lawyer in case he
needs to retain him in the grand jury investigation of who leaked the
name of a covert CIA operative last y, the Whitehouse said Wed.
There was no indication that Bush is a target of the leak investigation,
but the president has decided that in the event he needs an attorney's
advice, "he would retain him," Whitehouse rep Claire Buchan said.
The lawyer is Jim Sharp, Buchan said, confirming a report by CBS News.
"The president has said that everyone should cooperate in this matter
and that would include himself," the rep said.
She deflected questions about whether Bush had been asked to appear
before a grand jury in the case.
A fed grand jury in Washington is investigating who leaked the name of
CIA operative Valerie Plame, wife of former Ambassador Joseph Wilson,
to the news media. Plame was 1st identified by syndicated columnist
and TV commentator Robert Novak in a column last Jul. Novak said his
info came from Admin sources.
Wilson has said he believes his wife's name was leaked because of his
criticism of Bush Admin claims that Iraq had tried to obtain uranium
from Niger, which Wilson investigated for the CIA and found to be untrue.
Disclosure of an undercover officer's identity can be a fed crime. The
grand jury has heard from witnesses and combed through 1000s of pages
of documents turned over by the Whitehouse, but returned no indictments.
The probe is being handled by Chicago US Attorney Patrick Fitzgerald,
appointed after A-G John Ashcroft stepped aside from case because of
his political ties to the Whitehouse.
Absent a breakthrough from the documents or a cooperating witness,
prosecutors may be forced to try to identify the leaker through Novak
or other reporters. However, journalists pressed by the prosecution
could assert a First Amendment privilege to protect their sources.
Wilson has suggested in a book that the leaker was Lewis "Scooter"
Libby, chief of staff to VP Cheney. But Wilson's book, "The Politics
of Truth," give no conclusive evidence for the claim.
The Whitehouse denies the claim and accuses Wilson of seeking to
bolster the campaign of Democrat John Kerry, for whom he has acted as
a foreign policy adviser.
Wilson also said it's possible the leak came from Elliott Abrams, a
figure in the Reagan Admin Iran-Contra affair and now a member of
Bush's Nat'l Sec Council. And Karl Rove, Bush's chief political adviser,
may have circulated info about Wilson and Plame "in Admin and
neoconservative circles" even if Rove was not himself the leaker,
Wilson writes.
Another possibility is that 2 lower-level officials in Cheney's office
-- John Hannah or David Wurmser -- leaked Plame's identity at the behest
of higher-ups "to keep their fingerprints off the crime," Wilson speculates.

US military secures extra $US25 bn for Iraq, Afghanistan
Washington (AFP).  The US Senate has unanimously approved a $US25 bn
emergency request to fund military operations in Iraq and Afghanistan.
Pres George W Bush requested the extra funding to cover the cost of
military operations, which have spiralled upward as US troops combat
insurgencies in both countries.
"This serves as a clear, unambiguous signal that while our troops are
deployed and are in harm's way, they will have the unequivocal and
unwavering support of the Congress," said Sen Ted Stevens, the
Republican chairman of the Senate Appropriations Committee, on the
floor of the chamber.
The vote passed 95-0.
The monies come on top of a $US392.1 bn defence spending bill being
debated in the US Senate this wk for the 2005 FY.
The emergency funding, Sen Stevens said, is direly needed, especially
in Iraq where the Pentagon's military operations have mounted to some
$US5 bn pm.
"It will ensure that our men and women in uniform continue to have the
resources they need. We've worked very hard to make certain that that
is the case in the past," said Sen Stevens, whose congressional
committee oversees the disbursement of funds.
"Certainly, the developments on the ground in Iraq make it plain that
there is an absolute need to plan for contingencies for our military
cmdrs," he said.
"They have prudent operational plans, but they must be prepared to
respond to the dynamic events that are going forward now in Iraq."
"We can expect nothing less of our military leadership and the
Congress must give them the tools they need," Sen Stevens added.
"This reserve fund will do that."

Saudi militants fire at Americans
Oil off peak
Riyadh (Reuters).  Suspected militants shot at US military personnel
in Saudi Arabia on Wed, adding to fears over stability that have sent
oil prices to record highs since 22 people, mostly foreigners, were
killed in an al Qaeda attack.
Saudi forces also killed 2 militants linked to the weekend shooting
and hostage-taking spree on oil firms and W compounds in the E oil
city of Khobar, officials said.
They said the 2 were shot dead in a mountainous area nr the western
city of Ta'if, 700 miles from Khobar. Saudi forces had been hunting 3
militants who fled Khobar.
Security sources and diplomats said no Americans were hurt in the
shooting outside a US military compound in Riyadh, but the incident
exacerbated concern about security in Saudi Arabia, a key US ally and
the world's biggest oil exporter.
US light crude prices peaked at a record $42.45/bbl in early trading
-- the highest since futures were launched in NY in 1983 -- but fell
nearly $2/bbl when producers led by the United Arab Emirates said they
would raise output.
Riyadh said it would do everything it could to bring down prices that
surged some 6% on Tue after the Khobar attack -- the 2nd in a m on the
Saudi oil industry.
In Beirut, Saudi Oil Min Ali al-Naimi assured a meeting of the
petroleum cartel OPEC that oil facilities in the kingdom were "very
secure" but admitted the perception of insecurity in producing nations
was a factor driving up prices.
* PARANOIA
Naimi said there were no guarantees OPEC could reverse an oil price
scare that is being fuelled by speculative investors.
"The main reason is because there is a perception of a future shortage
as a result of instability in producing countries. There is no
shortage now, but they are speculating."
"The paranoia about terrorism in the world threatening all the oil
establishments in the world -- that's not true," the minister said.
"I tell you I am confident that facilities in Saudi Arabia are very,
very secure and they are protected very strongly to prevent anything
happening to them."
The UAE said it would raise output by about 400,000 bpd, and Adel
Al-Jubeir, foreign affairs adviser to the Saudi royal family, said the
kingdom was determined to provide enough supply to satisfy the demand
for crude oil.
"We believe the price of oil will trend downwards," Jubeir said.
"It's clearly too high. It's clearly not acceptable and we're determined
to do whatever we can with other OPEC countries to bring it down."
He said it was "obvious" that militants were targeting the kingdom's
oil industry to create chaos, but that it would be very difficult to
penetrate Saudi oil installations. "The oil installations are very,
very secure," Jubeir added.
A Saudi diplomat said the authorities were "upgrading, tightening and
fortifying security."
Osama bin Laden's al Qaeda network, which has pledged to drive out all
"infidel" Westerners from the birthplace of Islam, claimed
responsibility for the massacre.
The US embassy said that in Wed's incident the gunmen had fired at 2
cars in which Americans were travelling. It said the driver of one
vehicle, a non-American, was slightly wounded, but the cars returned
to Iskan Village where a US training unit working with the Saudi Nat'l
Guard is based.
Saudi media said a Saudi was slightly hurt. Security sources said the
militants had automatic rifles and fled the scene.
Washington last m urged the 35,000 Americans living in Saudi Arabia to
leave, citing possible militant attacks.
Saudi Arabia has been battling al Qaeda militants for over a y and the
group's local leader, Abdulaziz al-Muqrin, has vowed 2004 will be
"bloody and miserable" for the kingdom.

"Al Qaeda" claims attack on US military in Saudi
Riyadh (AFP/Reuters).  A statement claiming to be from Al Qaeda has
claimed responsibility for an attack on US military personnel in Saudi
Arabia, adding to fears over stability that have sent oil prices to
record highs since 22 people, mostly foreigners, were killed in a
weekend attack.
Saudi forces have killed 2 militants linked to the weekend shooting
and hostage-taking spree on oil firms and W compounds in the E oil
city of Khobar, officials said.
US light crude prices peaked at a record $US42.45/bbl on Wed, but have
now fallen nearly $2/bbl, after the Khobar attack, the 2nd in a m on
the Saudi oil industry.
The US embassy said that in Wed's incident the gunmen had fired at 2
cars in which Americans were travelling.
It said the driver of one vehicle, a non-American, was slightly
wounded, but the cars returned to Iskan Village where a US training
unit working with the Saudi Nat'l Guard is based.
Saudi media said a Saudi was slightly hurt. Security sources said the
militants had automatic rifles and fled the scene.
A purported Al Qaeda statement posted on an Islamist website claimed
responsibility for a shooting attack.
"Mujahideen from the 'Fallujah Squad' ambushed a group of American
officers" on the Riyadh/Al-Kharj road Wed morning, killing 2 and
seriously wounding a third, claimed the statement signed by "the
Al-Qaeda Organisation in the Arabian Peninsula".
The authenticity of the statement could not be confirmed.
The name of the squad referred to the Iraqi city of Fallujah W of
Baghdad, a Sunni Muslim bastion of resistance to US-led occupation forces.
Osama bin Laden's Al Qaeda network, which has pledged to drive out all
"infidel" Westerners from the birthplace of Islam, claimed
responsibility for the massacre.
Security sources and diplomats said no Americans were hurt in the
shooting outside a US military compound in Riyadh, but the incident
exacerbated concern about security in Saudi Arabia, a key US ally and
the world's biggest oil exporter.
Washington last m urged the 35,000 Americans living in Saudi Arabia to
leave, citing possible militant attacks.

Suspected Saudi militants shot
Riyadh (AP).  Saudi security forces killed 2 suspected militants
linked to a weekend shooting and hostage-taking crisis in eastern
Saudi Arabia that killed 22 people, the Int Min'y said.
Also, the US embassy said gunmen fired on American military personnel
in the capital Riyadh, slightly injuring a driver of unknown nat'lity.
The Int Min'y, in a statement reported by the official Saudi
Press Agency, said the hunt for "those who committed" the Khobar
attacks had led police 1,125 km across the country from Khobar to
Taif, nr the holy city of Mecca.
There, security forces surrounded the "key elements connected to this
incident" in a remote area in al-Hada, on the Taif-Mecca highway. It
said the 2 were killed after they threw grenades and shot at the troops.
Saudi authorities had said 3 of 4 Khobar gunmen escaped. It was not
immediately clear if those killed in Taif were among the Khobar
attackers or had another role in the plot.
The statement did not ID the 2 men.
Earlier, though, a Saudi security official who had relayed a different
account of the same incident in Taif identified one of the men as
Abdul Rahman Mohammed Yazji, No.25 on a list of Saudi Arabia's 26
most-wanted militants. The official had no details on the 2nd man.
Saudi television showed brief footage of what it said was the Taif
encounter, with helicopters taking part in the operation. The
broadcast showed 2 bodies on stretchers, covered in bloodstained
white sheets, being carried away by security forces.
The Int Min'y statement said one of the men was disguised as a
woman. It said there were no injuries among security forces.
On Sun, Saudi commandos and security forces ended a 25-hr shooting
rampage and hostage siege in Khobar in which 22 people -- mostly
foreigners working in the oil industry -- were killed. One gunman was
wounded and arrested; 3 others escaped.
In Washington, US State Dept rep Richard Boucher reiterated his govt's
advise that Americans leave Saudi Arabia.
Boucher said Americans were being urged to leave even though "it's
clear that Saudi security forces are very aggressively pursuing the
terrorists who are operating in their homeland. They have been
successful in preventing several attacks. And, in many cases, that
cost Saudi lives as well."
Al-Qaeda chief Osama bin Laden has vowed to destabilise the Saudi
govt, which the Saudi-born extremist views as insufficiently Islamic
and which he derides for its close relationship with the US. Saudi
officials have linked militant violence in the kingdom to al-Qaeda or
to other groups believed inspired by bin Laden.
In Riyadh, according to a brief US embassy statement, shots were fired
on 2 vehicles carrying US military personnel nr a Saudi Nat'l Guard
compound where a US training unit is based. The convoy returned
immediately to the compound. The statement said a driver, whose
nat'lity was not given, was slightly injured.
It was not clear whether the driver was shot.
"Saudi Arabian authorities are investigating the incident," the
embassy statement concluded.

Experts predict terrorists will use "dirty bomb"
London (AFP).  Gloomy experts believe it is only a question of time
before terrorists use a "dirty bomb", New Scientist magazine says.
It is a device that would spew radioactive debris over a city, making
parts of it uninhabitable for ys.
Internat'l Atomic Energy Agency (IAEA) records point to "a dramatic
rise" in the smuggling of radiological substances, the raw material
for this bomb, the Brit science weekly says in next Sat's issue.
"In 1996, there were just 8 of these incidents, but last y there were 51,"
the report says.
"Most cases are believed to have occurred in Russia and elsewhere in Europe.
"Smugglers target the radioactive materials used in factories,
hospitals and research laboratories, which are not guarded as securely
as those used by the nuclear industry."
A "dirty bomb" is not a nuclear bomb. It would use conventional
explosive to disgorge radioactive material over a wide area,
unleashing panic and making the area unusable.
Since 1993, there have been 300 confirmed cases of illicit trafficking
in radiological materials, 215 of them in the past 5 y.
According to the IAEA documents, the true figure may be far higher.
There have been 344 further suspected cases of trafficking over the
past 11 y that have not been confirmed by any of the 75 states that
monitor this activity.
The agency adds that there are still 1,000 radioactive sources that
are unaccounted for in Iraq.
Of 25 sources stolen from the Krakatau steel company in Indonesia in
Oct 2000, only 3 have been recovered.
A terrorist attack of this kind is "a nightmare waiting to happen,"
Frank Barnaby, a nuclear consultant and former Brit nuclear military
scientist, was quoted by New Scientist as saying.
"I'm amazed that it hasn't happened already."
Last y, Eliza Manningham-Buller, director-general of the Brit
counter-intel agency MI5, said a crude radiological attack against a
major W city was "only a matter of time," the report said.

Indonesian expulsion of terrorism expert "outrageous"
Brussels.  The head of the Internat'l Crisis Group, Gareth Evans, says
the expulsion from Indonesia of a leading expert on terrorism could
have serious implications for AUS.
The ICG's Sidney Jones, who has published sometimes-critical reports
on terrorism in Indonesia, has been told to leave the country as soon
as possible.
She says her expulsion will comfort supporters of extremist groups
like Jemaah Islamiah.
Mr Evans, a former Aussie foreign minister, has told ABC TV's Lateline
program he hopes AUS will intervene.
"Sidney Jones is really a living nat'l treasure so far as Indonesia is
concerned," he said.
"Indonesians simply have few better friends in the world and it really
is a terribly wrong headed reading of the situation to expel her for
saying some uncomfortable truths about what's gone wrong in a number
of areas of Indonesian policy.
"I'd be content if AUS's views were made known in the way many other
govt's views have already been known and I'm sure will be further made
known in the days and wk ahead," he said.
"This is something that everybody has reacted to in the same way
internat'ly as indefensible, outrageous."

US denounces expulsion of Indonesian analyst
Washington (AFP).  The US has decried Indonesia's decision to expel a
veteran US analyst, saying it is a blow to recent improvements in the
country's record on freedom of expression.
The State Dept said it was "very concerned" by Jakarta's move against
Sidney Jones, the South-East Asia director of the Internat'l Crisis
Group (ICG), and an Aussie colleague, noting that Washington saw no
rationale for the action.
"We're not aware of any actions by her or other members of her
organisation that would warrant such a step by Indonesia," rep Richard
Boucher told reporters.
"Such expulsions will be particularly disappointing because this would
stand in stark contrast to the impressive progress made by Indonesia
in recent y in developing a democratic civil society with freedom of
expression," he said.
Mr Boucher said the US did not necessarily endorse all of Ms Jones's
and her ICG colleague's analyses about Indonesia but praised their
work as having been "very valuable".
He said Washington had repeatedly protested the expulsion directly to
Indonesian officials in Jakarta and would continue to do so in support
of academic and scholarly freedom.
"We're intending to endorse the right of scholars, academics, analysts
to do analyses, to do serious work, and to publish the results,
publish the info and their conclusions," Mr Boucher said.
Ms Jones, 52, is an expert on the Indonesian-based and Al Qaeda-linked
Jemaah Islamiah (JI) terror group and has she believes her reports on
separatist conflicts in Aceh and Papua provinces sparked the issuance
of the expulsion order late Tue.
She said the immigration dept was acting on orders from the state
intel agency, whose director Abdullah Hendropriyono has criticised her
work as subversive and a threat to nat'l security.
Mr Hendropriyono has accused 20 local and internat'l non-govt groups,
including the ICG, of endangering nat'l security before the Jul 5
presidential election.
Ms Jones' expulsion has sparked a flurry of protests from human rights
groups and others who have compared it to tactics used during former
Indonesian dictator Suharto's y in power.

US moves to tone down UN prison abuse report
Geneva (AFP).  The US is trying soften allegedly harsh
and inflammatory criticism of the coalition in Iraq that is expected
to be contained in a United Nations human rights report to be released
this wk, US officials said.
The officials said US diplomats are lobbying for language in a report
from the UN High Commissioner for Human Rights to be toned down in a
bid to prevent a new firestorm of controversy over the mistreatment of
Iraqi detainees by US troops at Abu Ghraib prison, outside Baghdad.
The final version of the report is to be released Fri at UN human
rights HQ in Geneva and Washington fears that, without changes, its
publication could complicate efforts to secure passage of a new UN Sec
Council resolution on Iraq, the officials told AFP on condition of anonymity.
That resolution is critical to securing support for the interim Iraqi
govt taking power Jun 30 and for further detailing the mandate of the
US-led multinat'l force to remain in the country after that date.
"What we're looking at in the draft is strong anti-US and inflammatory
language that was written before we even got a chance to submit our
own info," one official said.
"What we're looking for is a more balanced approach."
A UN rep announced Tue that the release of the report, originally due
Mon, had been delayed until Fri because the Pentagon and the
US-occupation Admin, the Coalition Provisional Authority, had asked
for more time to contribute their sides of the story.
The CPA had submitted its info Sat to the UN rights agency on and the
Pentagon had delivered its report Tue, according to the US officials.
In announcing the delay in the release of the report, the UN rep
denied its content had been altered at the demand of the US but
allowed that the new info would be incorporated into the final version.
However, it was not immediately clear if mere inclusion of the info
would satisfy the US objections.
"We're hoping that the draft will be revised to reflect what we had to
say," a 2nd US official said, taking specific issue issue with several
portions of the draft that Washington deems offensive.
One of those refers directly to the prison abuses, which have already
been well-documented in widely published graphic photographs and a
highly critical report from the Internat'l Committee for the Red Cross
which became public last m, the official said.
The offending sentence in the draft says: "The road to hell is paved
with good intentions -- and some Iraqis have experienced hell inside
prisons run by coalition forces," according to the official.
The draft report also charges US and coalition forces with "systematic
gross violations of human rights and humanitarian law" in prisons and
elsewhere in Iraq, something Washington disputes, according to the officials.
"Some of these accusations seem to be based on limited and
unsubstantiated evidence," the 1st official said.
Both officials said Washington might consider asking for another delay
in the release of the report if its concerns about the language were
not addressed.
The UN report was called for during an annual meeting of the UN's
Commission on Human Rights in Apr, just before the prisoner abuse
scandal erupted.
At the time, advocacy groups criticised the absence of a specific
resolution for Iraq by the UN human rights watchdog for the 1st time
in a decade.

AUS not responsible for Iraq prisoners: Downer
More details are emerging from the Senate committee hearing.
Canberra.  FM Alexander Downer says AUS does not have any
responsibility for Iraqi prisoners of war, despite Aussie troops being
involved on 4 occasions in their arrest.
Defence Min Robert Hill was last night unable to provide a Senate
hearing with details of an agreement which he says ensures
responsibility for Iraqis initially apprehended by Aussie troops is
immediately passed to the US.
The Opp'n says if Aussies capture prisoners, the Fed Govt has a
responsibility under the Geneva Convention to ensure detainees are not
mistreated.
But Mr Downer says Aussie troops have never "detained" any Iraqis.
"The prisoners were detained in every case, where we were involved in any
way at all, the prisoners were actually detained by the Americans," he said.
"So in those circumstances, number one the Americans had
responsibilities, though the responsibilities remember are very much
identical to our responsibilities, but they had responsibilities under
the Geneva Conventions for the welfare of those prisoners."
Mr Downer has defended his dept for not telling him about info that it
received last y on the mistreatment of prisoners.
A Senate committee yesterday heard 3 govt depts, including the Dept of
Foreign Affairs and Trade, were told in Nov of an Iraqi minister's
concerns about the prisoners' treatment.
But Mr Downer says his dept was only told of problems such as
overcrowding in jails, and the US was dealing with those matters.
"These were just routine matters which were dealt with and seen as
routine matters," he said.
"What you're seeing in photographs coming out of Abu Ghraib, that's a
completely different matter of course.
"If my dept had been aware of that they would have drawn it to
minister's attention, there's no question of that."

Hill unable to provide Iraq prisoner protocols
Prison abuses are the focus of a Senate committee.
Canberra.  The Fed Govt has been unable to provide a Senate hearing
with details of an agreement allowing AUS to hand over Iraqi prisoners
it captures to the US.
The Opp'n says that is outrageous.
The Defence Min is already under pressure after his Dept misled the
Govt on when it knew of Iraqi prisoner abuse claims.
Robert Hill insists an agreement does exist to immediately hand
prisoners detained by Aussie troops to the US.
"There was at least an understanding reached between the ADF and other
armed forces," he said.
Labor says the Govt will not say how that agreement came about.
"It's some telephone box discussion between people unknown, at a time
unknown and the details unknown," Sen John Faulkner said.
Labor says that if Aussie troops are initially dealing with prisoners,
the Fed Govt has a responsibility under the Geneva Convention to
ensure detainees are not being poorly treated.
It says the Govt is trying to pretend it has no responsibility for
prisoners Aussie troops initially detained on 4 occasions.
Sen Hill says he will provide further details to the committee today.

Hicks, Habib detail abuse to Aust officials
Canberra.  A fed govt dept has revealed both Aussies being held at
Guantanamo Bay in Cuba have raised allegations of abuse with Aussie
officials.  The Dept of Foreign Affairs (DFAT) says lawyers for the 2
men have now been given US clearance to detail the allegations to the
Govt.  Ian Kemish from DFAT has told a Senate committee, Adel man
David Hicks raised allegations of mistreatment during a discussion
with an ASIO officer last y.  "Hicks made a brief remark during that
discussion to the effect that he had been beaten in late-2001," Mr
Kemish said.  Mr Kemish says during that time Mr Hicks was in US
custody in Afghanistan and he had never raised the concern before.  He
says SYD man Mamdouh Habib told Aussie officials his detention was
torture.  "He has also complained about being mocked on arrival at
Guantanamo Bay," Mr Kemish said.  Mr Kemish says US authorities denied
that claim.

Reports: Chalabi told Iran that US had broken its intel service codes
Washington (AP).  Ahmad Chalabi, the former Iraqi exile once regarded
as a friend of the US Admin, revealed to Iran that the US had broken
the code of its intel service, according to broadcast and published reports.
CBS News reported Tue that Chalabi had told an Iranian intel official
that the US had cracked its codes, allowing US agents to read Iran's
secret communications. By revealing such info, Chalabi would have
exposed one of the US' most important sources of info about Iran.
The NY Times, quoting anonymous US intel officials, reported on its
Web site Tue that Chalabi told the Baghdad chief of the Iranian spy
service that the US was reading its communications. The
Iranian spy described the conversation in a message to Tehran, which
was intercepted by US intel.
A CIA official declined to comment on the reports Tue night.
The American officials quoted by the Times said the Iranian spy, in
the message to Tehran, reported that Chalabi had said he had gotten
the info from an American who had been drunk.
CBS reported that FBI agents are questioning Defence Dept officials in
an effort to find out who gave such info to Chalabi. The Times
reported that the FBI expects to interview civilians at the Pentagon
who were strong supporters of Chalabi.
Chalabi, a member of the Shiite Islamic sect to which the majority of
Iranians and Iraqis belong, once was a favourite of Pentagon
officials. He recently came under suspicion that he might have handed
over sensitive info to Iran about the US occupation.
He had provided intel to the US Admin about WMD, which was used to
justify the US war against Iraq, but his info came under major
criticism after no weapons were found.

American contractors' role in Chalabi raid revealed
Washington (The Age).  When Iraqi police raided the Baghdad home and
offices of politician Ahmed Chalabi on May 20, US officials hurried to
distance themselves from the operation, saying it was an Iraqi affair
and that no US Govt employees were involved.
But 8 armed American contractors paid by a US State Dept program went
on the raid, directing and encouraging the Iraqi policemen who, witnesses
say, ripped out computers, turned over furniture and smashed photographs.
Some of the Americans helped themselves to baklava, apples and diet
soda from Mr Chalabi's refrigerator, sitting in a garden outside to
enjoy their looted snacks, according to members of Mr Chalabi's staff.
The contractors work for DynCorp, a subsidiary of Computer Sciences
Corporation and the company in charge of training and advising the
Iraqi police on a State Dept contract. A State Dept official confirmed
the DynCorp workers' presence during the raid.
The participation of gun-toting American contractors in a raid the US
Govt has insisted it did not order is the latest instance of problems
posed by the 20,000 contract security workers serving in Iraq.

Chalabi says key Iraq cabinet posts agreed
Baghdad (Reuters).  Iraq's Governing Council agreed with the US-led
Admin and the UN on key posts in a new cabinet on Sat, snr politicians
said, but others cautioned that the list was not yet final.
"The Governing Council, Bremer and Lakhdar Brahimi agreed on the
list," council member Ahmad Chalabi told Reuters, referring to US Iraq
administrator Paul Bremer and UN envoy Brahimi.
"It is not 100% certain that the nominees will accept it but it is
pretty sure they will."
Another snr politician confirmed that a list had been drawn up and
said it would be announced on Sun.
But Iraq's current foreign minister, Hoshiyar Zebari, said the list
was not final and had yet to be formally agreed.
The new govt is due to take over on Jun 30 when the US-led coalition
formally hands over sovereignty.
Chalabi said the only point of dispute remaining was over the
relatively ceremonial post of the president, who will have 2 deputies.
He said the 2 main candidates for president were Adnan Pachachi, a
Sunni Muslim who was foreign minister of Iraq in the 1960s before
Saddam came to power, and Ghazi Yawar, a Sunni engineer who holds the
rotating presidency of the Council at the moment.
The most powerful post, of PM, went on Fri to Iyad Allawi, a secular
Shi'ite who ran an exile opp'n party to Saddam Hussein with backing
from the CIA.
Chalabi said technocrat Thamir Ghadban, who briefly ran Iraq's vital
oil industry after the fall of Saddam, had been nominated as oil minister.
Kurdish politician Zebari would be defence minister while fellow Kurd
Barham Salih would take over the For Min'y, Chalabi said,
adding that Adel Abdul Mahdi, a Shi'ite, was nominated to be finance
minister and Samir Sumaidy, a Sunni, would stay on as interior minister.
The VPs are expected to be a Shi'ite and a Kurd.
A snr Iraqi politician whose party is represented on the Council said
the list announced by Chalabi was correct.
"The Kurds have been fighting for the presidency so they gave them the
key defence and foreign ministry portfolios as a way of compensation,"
the politician said. "The Americans have wanted Ghadban since the
moment Baghdad fell. He has been their choice all along. Now is their
chance to put him in."
Brahimi is trying to help US officials and the Governing Council
select a 30-member team, including 26 ministers, that reflects the
ethnic and religious make-up of Iraq. Shi'ite Muslims are a 60%
majority but Sunnis held most power.

Cash crunch curbs rebuilding in Iraq
Baghdad (USA Today).  Businessman Louay al-Tahan's biggest problem
isn't the postwar chaos that often keeps his employees from their
jobs, the daily power outages that idle his machines or even the
un-exploded artillery shell sitting in the rubbish heap alongside his factory.
Al-Tahan's biggest problem is a lack of cash. Despite Iraq's turmoil,
he sees a huge opportunity to expand production of plastic bottles and
bottling components to meet surging demand. But to do that, he needs
$1.8 mn to replace his 1970s-era machinery with modern gear. "To renew
our factory, we really need to rip out all our equipment," al-Tahan
said. "We don't have the liquid cash."
With bank lending almost non-existent and foreign investment in Iraq
about as common as a snowstorm, Iraqi businesses are struggling to
secure the credit they need for life after Saddam Hussein. Whether
these mid-size businesses succeed or fail with their job-creating
expansions is critical for stability: Iraq's anti-American insurgency
is largely made up of unemployed young men. If the economy generated
more jobs, extremists couldn't recruit foot soldiers as easily.
In Apr, al-Tahan, 40, took what he hopes is the 1st step toward
solving his problem by applying for a loan from the US-led Coalition
Provisional Authority. With little fanfare, the CPA, which is
governing Iraq until the Jun 30 hand over of power to an interim govt,
has begun accepting applications for a new program designed to provide
loans of $500,000 to $5 mn for mid-size companies.
Coalition officials, who say they recognise the need to jump-start the
country's private sector, declined to discuss the program because it
has not been formally approved. The coalition separately has disbursed
about $7.5 mn in "microfinance" credits, typically loans averaging
$2,500 for small businesses such as bakeries and grocery stores. An
additional $17.5 mn is in the pipeline for that effort, a coalition
official said.
Those amounts are dwarfed by Iraq's needs. 14 m after the toppling of
Saddam's statue in Firdos Square, the sidewalks along busy Karrada
Street are lined with boxes holding new refrigerators, televisions,
microwave ovens and air conditioners. After a generation of
deprivation, Iraqis are eagerly acquiring consumer goods.
* High unemployment
Jobs are another story. In every neighbourhood, there are curbside
hiring spots where manual workers can be had for 5,000 Iraqi dinars
per day -- less than $4 at current exchange rates. In the al-Amal
district recently, about 40 men milled about on a corner at 10 am.
Many had been there since dawn.
Despair over the lack of opportunities is breeding anti-US
sentiment. "The Americans did nothing. They just removed Saddam and
left us suffering twice as much," said a scowling Jassim al-Jabouri,
50, a plasterer.
By providing much bigger loans for larger companies, the CPA program
could significantly ease Iraq's unemployment rate of nearly 30%. In
the eastern Baghdad industrial park that's home to al-Tahan's plant,
only a sliver of the 500 factories are operating. If new life were
breathed into them, as many as 10,000 jobless Iraqis could be taken
off the street, he says.
Al-Tahan, a member of a prominent Iraqi business family, left Iraq in
1980 as a teenager after running afoul of a powerful classmate:
Saddam's notorious eldest son, Uday. Challenged to a tennis match by
the dictator's heir, al-Tahan, a scholastic tennis star, lost in
straight sets without winning a game.
That was too transparent a gift for Uday, who sent a pair of
bodyguards to intimidate his rival. Shortly after, al-Tahan fled Iraq
to study in the UK.
He returned in 1990, 2 y after the end of the ruinous 1980-88 war with
Iran, and entered the family plastics business.
* Business under Saddam
Commercial life under Saddam was a make-believe world far removed from
the rigours of a market economy. State banks were slush funds for
regime loyalists. Private businesses did whatever they could to steer
clear of the govt or related institutions, including banks. Many
businessmen didn't invest to maximise profit for fear of attracting
Saddam's rapacious sons, who often commandeered profitable
businesses. The goal for the typical enterprise was survival, not growth.
Through the 1990s, as internat'l sanctions intended to punish Saddam
isolated Iraq, private businesses fell behind global standards. The
regime's priorities didn't seem to include the economy. "It used to be
difficult to get workers," said Raid al-Tahan, 45, Louay's brother and
the group's managing director.
"They were all in the army."
The al-Tahans say they faced other pressures. An uncle was mistakenly
jailed for several days by the dreaded Mukharabat, the Iraqi intel
service, which had confused him with another man.
In 2002, after sending a subordinate to a meeting with ruling Baath
Party officials instead of attending himself, Louay al-Tahan received
a threatening phone call from a party official. The next day, 2 men
showed up to "inspect" his plant. He later learned the visit had been
used to draw up an intel report claiming his factory was storing
weapons for an anti-govt group. "The old regime supported certain
families. We were one of the families who suffered," al-Tahan said.
Even today, Saddam's legacy is visible on the wall of one of the
company's buildings. A propaganda poster the company says it was
ordered to post reads: "Failure to do the work is treason to the
nation and the people."
Last y, as US tanks rolled toward Baghdad, al-Tahan and his
relatives eagerly anticipated a new life. When Marines pulled down the
dictator's statue Apr 9, the al-Tahans rejoiced. Despite heavy bombing
of the city, and the Iraqi army's practice of hiding weapons in
commercial areas, their factory had survived unscathed.
But 2 days later, an Iraqi army ammunition truck that was parked
alongside their plant exploded. The blast sliced through the
building's 12-inch-thick steel beams, buckled a wall and rained
un-exploded shells on nearby rooftops.
It was a damaging blow, but the unexplained mishap did not hurt the
equipment inside. So after spending $70,000 on partial repairs, the
al-Tahans resumed production.
* Desperate for loans
They were just in time. Before the war, almost all soft drinks in Iraq
were sold in glass containers. Now, with borders thrown open to
imports and incomes for many govt workers and professionals rising,
demand for plastic bottles is soaring.
That should be good news for al-Tahan's company. But with his aging
equipment, some of which dates to the Carter Admin, al-Tahan is unable
to capitalise. Walking through the factory, he stops at a slow-moving
machine betraying visible signs of wear. The injection molding machine
produces products called "pre-forms," used to make plastic soft drink bottles.
The 1976 machine wasn't designed to work with polyethylene terephthalate
(PET) plastic, the industry standard. So al-Tahan and his brother
Raid, both engineers, jury-rigged the equipment to handle the substance.
But it turns out only one pre-form every 45 seconds. A modern machine
designed to handle PET does the same job in 13 seconds, al-Tahan said.
"Our production capacity now is very, very small," he said.
Al-Tahan estimates the new equipment he needs would cost $1.8 mn. Yet
foreign investors shy from Iraq because of security fears. In some
cases, Saddam loyalists have accused foreign businessmen of being
Israeli agents and seized the factories of their Iraqi partners.
And Iraqi banks, not a major source of commercial lending even before
the war, aren't likely to provide the money. As many as 90% of
borrowers have stopped making payments on existing loans, said Fuad
al-Hassanai, managing director of the private Credit Bank of Iraq.
"There is a widespread belief by the borrowers that one day the CPA or
the new govt will write off all the debt," he said.
"They're waiting for that day, and they're not paying."
So, early in Apr, al-Tahan filed the initial 12-page proposal for the
coalition loan. The CPA won't provide 100% loans, according to the
single-page "guidelines for loan proposals," obtained from an Iraqi
banker. After mortgaging a home, the al-Tahans say, they will
contribute $280,000 toward a loan of $1.4 million, plus $400,000 in
working capital.
* Awaiting approval
The al-Tahans are hoping to learn by the end of the m whether they
will receive the loan. Just assembling the financial material to
answer the coalition's numerous questions has sharpened their
understanding of the market.
To get details from competitors about their capabilities, al-Tahan
posed as a potential customer. Using a dummy e-mail account to mask
his identity, he discovered that regional demand for his plastics
products is so strong, new customers must pay cash up-front and wait up
to 4 wk for deliveries. "After getting all this info, we're convinced
we must have this expansion," he said.
If he secures funding, al-Tahan says, he could boost capacity by a
factor of 6 and add up to 30 jobs. Most would be skilled or
semi-skilled positions, such as engineers, accountants and
administrative personnel.
Saddam's political demise was what al-Tahan and his family had sought
for ys. But with freedom has come insecurity. During a journalist's
recent 2-hr visit to the plant, there were 2 unexplained explosions in
the area. Because of the danger of being kidnapped by criminal gangs,
al-Tahan says, he constantly varies his routine and makes the
45-minute drive to the factory only when he absolutely must.
Yet he says he remains optimistic that Iraq eventually will emerge as
a "model" for the Middle East.
Not without some pain along the way. Last m, one of al-Tahan's
best friends, working as a reconstruction subcontractor for KBR, was
shot and killed. It's not clear whether the killing was politically
motivated or a common crime. The assailants got away with $500,000 in
cash, a payment the man had just received from the US company.
The stakes are high for the al-Tahan group. They might be even higher
for Iraq. Last wk, as a reporter interviewed one jobless man on a
street corner, another broke through a circle of onlookers and began
chanting, "Long live Sadr. ... Long live Sadr," a reference to rebel
Shiite cleric Muqtada al-Sadr, whose forces continue to battle US
troops in the Shiite holy city of Najaff despite a cease-fire last wk.
Elsewhere in the city, Saddam Asawi, 25, spoke of being recruited to
join the violent resistance to the US occupation. May 13, while he was
performing manual labour at a mosque, a bearded man who identified
himself as "Mazin" approached Asawi and said he had a job for him. A
consignment of explosives in Samarra, a town in the bitterly
anti-American Sunni Triangle, needed to be brought to the capital.
"He was talking of that job as jihad, as part of your duty as a
Muslim," Asawi said. "I tried to put him off for a day, but he said,
'No, this is urgent. This needs to be done today.' " Asawi said he
declined the job. But with employment scarce, how long can men like
him resist the siren call of the insurgents?

Self-rule is test of nerves on local Iraq councils
Baghdad (NY Times).  At a recent local govt meeting in the Rashid
neighbourhood of S Baghdad, the 1st item on the agenda was a moment of
silence for council members in other districts who had been assassinated.
Then the Rashid Council turned to teachers' salaries and access to a
garden. Moments later, during a break, the whistle and crash of a
mortar shell pierced the cigarette smoke and din of conversation.
People rushed out in panic. "It's a mortar!" someone yelled.
The council is one of 100s set up to promote democracy by giving
Iraqis practice in the give and take of local govt. But democracy is
proving an increasingly dangerous business these days.
Several councils, including this one, have been the targets of
attacks, and their members labelled American collaborators. Councils
now meet under military protection.
Weeks away from the Jun 30 ceremonial transfer of sovereignty to an
Iraqi govt, Americans and Iraqis are starting to question whether the
democratic reforms the US is trying to install here will carry over.
The wk of fighting in Fallujah and the south, in which many Iraqi
civilians have died, and the Abu Ghraib prison scandal, have made the
democracy program an even harder sell.
"Trying to make this thing work is a true badge of courage," said
Albert E Haines, the Baghdad team leader for RTI Internat'l, the
American company leading the local govt program in Iraq under contract
with the Agency for Internat'l Development.
In addition, the democracy program is being sown in an uncertain
climate. Iraqis are still trying to bridge ethnic and religious fault
lines in their society as they work to form an interim govt that will
start on Jun 30. And in the days leading up to the transfer, American
officials have warned that the violence will only get worse.
"When you talk about democracy now it may seem to be an inappropriate
time, but that will all come later," said a member of the Iraqi
Governing Council, Mahmoud Othman. "But there are steps toward
removing the uncertainty so it could go either way. There is a race
with the escalation of violence, because there are people who will try
to put obstacles and make chaos."
The program has set up 100s of local councils, held civic dialogues
and presented guidance on topics like the virtues of keeping budget
transactions public. Nat'l conferences have been held on politics, the
rights of the disabled and other subjects. The program has built a
staff of about 2,500 Iraqis working as discussion leaders.
At the Rashid Council, members have had to be concerned about their
safety as well as community services. The names of at least 9 members
were found on a leaflet written by the Sheik Ahmed Yassin Brigades, a
little-known group in Iraq named for a leader of the militant group
Hamas who was killed last m by Israeli forces in the Gaza Strip.
"We decided to liquidate the following spies," the leaflet said, before
going on to list them, for "cooperation with the American occupiers."
Sami Sharif, the council leader, attributed the violence to groups
that want political power on their own terms. "There are a lot of
Islamic groups that lost the chance to participate on the city
councils at the beginning," he said. "Now when they see the role of
these councils, they do not like the idea they have no one on them."
In Sadr City, one of Baghdad's poorest and most volatile neighbourhoods,
the office of the democracy project's local council is ringed by
soldiers and sandbags. Troops hunker down in armoured vehicles in the
courtyard. The hallways are cluttered with Army cots and trash from
military rations. Dozens of soldiers are sprawled out on worn
armchairs, their weapons within reach.
"To some, this building is a symbol of the American oppression," said
Sgt First Class Keith Crabtree, an American who is now based in the
building. "But we try to view it as a symbol of the changes we are
trying to bring to this area. It is not working as well as I would
like it to work."
At the end of Apr, the leader of the Sadr City Council, Jasim Swady,
was forced into a car at gunpoint. His body was found the next day
hanging from a light pole, said Iraqis there.

Human rights must be a priority for Iraq's new leaders
[Maryam Elahi, an attorney, is director of the Trinity College human
rights program in Connecticut].
Op/Ed (The Daily Star).  What a nightmare life must be for the Iraqi
people. They have survived genocide, more than 2 decades of a
tyrannical regime, 2 wars with the US, a bloody 8-y war with Iran,
internat'l sanctions, and, most recently, torture, abuse and
humiliation at the hands of the occupying powers.
Iraq was promised freedom and a prosperous road to democracy -- yet a
y after the overthrow of Saddam Hussein, the country's basic human
needs are unattended and Iraqis live in a state of despair, poverty
and violence. Iraq, which had one of the most advanced health care
systems in the Arab world before the imposition of sanctions, is now
struggling to address the health needs of its population. The US went
to war against Iraq claiming primarily that it harboured weapons of
mass destruction. Failing to secure evidence for its claim, the Bush
Admin highlighted that improving human rights was a main objective.
Sadly, the US has failed to nourish an open democratic society.
A y ago, I spoke to Iraqi doctors in Basra who told horrifying stories
of torture and "disappearances" under the former Baath regime. Many of
them had family members who were subjected to horrendous treatment. In
one case, a doctor spoke of a colleague who had been asked to check on
prisoners in Abu Ghraib prison, when Saddam's men were still operating
it. The prisoners were brought to him in the middle of the night and
he was shocked to see mere skin and bones as he heard the men shuffle
in his direction. The warden told him that they were the "walking
dead" and that their families presumed they were, indeed, dead.
This time a y ago, many Iraqis were hopeful that the age of tyranny
was over and that they would have the opportunity to establish an open
society. Unfortunately, that is not going to happen. In the y that has
passed, the Coalition Provisional Authority (CPA) has accomplished
little to bolster democracy, civil society and democratic institutions.
On Jun 30, the CPA will hand over to the new Iraqi govt a country that
is battered and in shambles. The most recent abuse at Abu Ghraib
prison was in many ways symptomatic of other American initiatives that
have gone awry.
In the last y, there were many opportunities to make structural
improvements in the condition of human rights in Iraq -- and they all
fell through the cracks. Even before digging up the mass graves of
Saddam's victims, many Iraqis expressed the need for an accounting of
the whereabouts of the tens of 1000s of "disappeared." The CPA should
have made a priority of addressing the issue. It could have funded the
training of Iraqis in human rights monitoring (including forensics
work), reporting and human rights education. It could have trained
lawyers, judges and law enforcement officers in human rights law.
Such efforts would have helped sow the seeds for an Iraqi civil
society. It would have also reinforced the CPA's assertion that the US
intended to establish a democratic process and govt in Iraq. Unfortunately
the Americans were not willing or capable of prioritising human rights.
Under the Geneva Conventions, an occupying power has the
responsibility of protecting the local civilian population from
harm. Yet, Iraqi civilians have been exposed to harm in circumstances
that could have been avoided by the CPA. For example, when the war
ended, S Iraq in particular was cluttered with un-exploded cluster
bombs -- many in areas close to urban centres like Basra. Children
became frequent casualties of the bombs. I heard first-hand of 3
seriously wounded children who were brought to the Basra Teaching
Hospital in May 2003 as a result of cluster bomb detonations.
The CPA failed to gather up all the bombs, put signs up alerting the
local population of the danger and provide maps of the hazardous areas
to the local population.
Similarly, the process of arrest and detention of Iraqis has been in
violation of internat'l human rights and humanitarian law. Those
arrested have not been informed of their rights, charged and placed
before a judicial process, and their families have not been notified
of their arrest.
Indeed, in some cases prisoners' names have been improperly recorded.
As has been shown recently, in numerous instances detainees were
subjected to torture and ill treatment, and their torturers acted with
impunity until the abuse was brought to light in the US.
We also now know that there have been numerous deaths of Iraqis in
American custody. According to recent info, at least 20 prisoners
detained by the US in Iraq, but also in Afghanistan, had their death
certificates completed m after they had died. Hence in the eyes of
Iraqis, one oppressor replaced another. Saddam Hussein might be under
lock and key, but the hopes for an Iraqi society where human rights
would flourish are as elusive as ever.
Human rights groups familiar with the outrageous and illegal behaviour
resulting from war and occupation have consistently demanded that
detainees be treated in accordance with the Geneva Conventions. Torture
is a grave breach of the conventions, is considered a war crime, and
is unequivocally prohibited even in the direst situations where a
nat'l emergency may permit derogation from other rights and due
process. While the US has declared that "torture cannot be justified
by exceptional circumstances, nor can it be excused on the basis of an
order from a superior officer," in Iraq the CIA endorsed and recommended
"coercive interrogation methods" that qualified as torture against
certain detainees.
Furthermore, the US has sent some detainees to 3rd countries where
they might be subjected to torture and ill treatment with even less
accountability.
To end the vicious cycle of human rights violations in Iraq, the US
must ensure that internat'l human rights groups and the Red Cross have
free access to all detainees and detention sites. A record of all
detainees' names, addresses and reasons for arrest must be kept and
their cases reviewed in an expedient manner by a competent magistrate.
They must be released unless the arresting authorities offer a
reasonable basis for their arrests, in which case they must be charged.
The Iraqi interim govt formed Tue starts with a clean slate. It has
the opportunity and responsibility to immediately and scrupulously
address the human rights crisis in Iraq. All efforts must be made to
assure that it is equipped with the proper training and resources to
put human rights 1st on its agenda, in order to ensure a better future
for Iraq. One wonders, however, whether there is a political
commitment to make this happen.

Dissent as Iraq reviews leaders
Baghdad (AFP).  The man expected to be Iraq's interim PM reviewed a
possible govt line-up yesterday amid emerging dissent among the
nation's dominant Shi'ites, as sporadic fighting tested a fragile
truce between US forces and the militia of radical cleric Muqtada al-Sadr.
Iyad Allawi, an exiled secular Shi'ite and former intel officer, was
named by the Iraqi Governing Council on Fri to steer the war-torn
country to elections in Jan. Iraqi officials said yesterday the govt
to take the reins on Jun 30 could be finalised as early as today. Mr
Allawi, 58, has close links to Washington and London, and had CIA
backing in a failed 1996 coup to bring down former leader Saddam Hussein.
The UN Sec Council, meanwhile, appeared headed for a contentious
debate this wk on a US-Brit draft resolution on Iraq, once Mr Allawi
named the rest of his new govt.
With his nomination, the Sec Council is one small step closer to a
vote on the draft. China, France and Germany -- with Russia taking a
quieter role -- are pushing for changes to the text to strengthen the
commitment of full sovereignty for Iraqis once the US occupation has
formally ended.
But the US State Dept has made it clear that Washington will not
accept calls to fix a date for US troops, who will remain in Iraq
after the hand over of power, to leave.
The key disagreement meant the US was unlikely to get as rapid a vote
as it might have liked, diplomats said.
In Washington yesterday, US Pres George W Bush paid a Memorial Day
tribute to US soldiers serving in Iraq and Afghanistan. "Today,
freedom faces new enemies, and a new generation of Americans has
stepped forward to defeat them," he said in his weekly radio address.
"In places like Kabul and Kandahar, Mosul and Baghdad, we have seen
their decency and brave spirit."
3 US Marines were killed in the al-Anbar province in W Iraq yesterday,
taking the US death toll since the start of the war to more than 800.
Clashes also continued between US troops and militiamen loyal to Sadr
amid a split between the 30-yo cleric and the Shi'ite Muslim establishment.
Sadr's office in Najaff said it had begun to implement parts of the
truce agreement aimed at ending wk of deadly clashes with US troops.
Despite the truce, there was no let-up in the violence -- predicted to
worsen ahead of the Jun 30 hand over of power -- as Sadr militiamen
clashed with US forces in the S city of Kufa, medics and the US
military said.
"A group of Moqtada militia fired RPGs at a US patrol. They returned
fire, killing the attackers," a military rep said. The rep gave no
figures, but said there were no coalition casualties.
A rep for one of Iraq's main Shi'ite parties castigated Sadr's Mehdi
Army as being led by Saddam loyalists and "terrorists".
Sheikh Qassem al-Hashimi, of the Supreme Council for the Islamic
Revolution in Iraq, accused Sadr of plunging the Shi'ites into a
"futile war" when anti-occupation resistance could be accomplished by
"peaceful means".

More fighting in Iraq's holy cities despite truce
Baghdad (ABC, Lateline).
MAXINE MCKEW: In Iraq, there may be a truce in place in the holy
cities of Najaff and Karbala but that hasn't stopped the fighting.
There have been more clashes between Shiite cleric Moqtada al Sadr's
militia and US forces, but it's not clear whether the truce has
collapsed or whether these are isolated skirmishes.
The confusion comes on another day when foreigners were targeted and
when US presidential challenger John Kerry unleashed his most detailed
criticism yet on George W Bush's foreign policy.
Norman Hermant reports.
NORMAN HERMANT: On paper there's a truce in Najaff and other holy
cities.  On the ground, it's far from clear whether its holding.
More fighting has been reported one day after al-Sadr agreed to
partially withdraw his militia in return for US forces halting their attacks.
And there are indications some of the Shiite cleric's militia has
refused to pull back.
After m of clashes that left 100s of militiamen dead, al Sadr's
followers celebrated word of the truce as a victory.
The deal falls short of US demands al Sadr fully disarm his fighters
and turn himself in on a murder charge.
Still, the coalition says the early developments are encouraging.
DAN SENOR, CPA SPOKESMAN: We view this as a very positive step, not
only for the moment, but for what it bodes potentially for Iraq
post-Jun 30.
NORMAN HERMANT: That's the scheduled day for the hand over of
sovereignty and this was the man who was briefly touted as a possible
PM of Iraq's transitional govt.
Now former nuclear scientist Hussein al-Shahristani says he's not interested.
NORMAN HERMANT: Reportedly, al-Shahristani was blocked by fellow
Shiites, also angling for the job.
Along with the political challenges come the attacks.
In this ambush, governing council member Salama al-Khafaji survived.
But a bodyguard was killed and her son is missing.
And Tokyo has confirmed that 2 Japanese journalists were killed when
their vehicle was hit by a RPG.
Their deaths received widespread coverage in Japan, but it's not clear
what effect they'll have on the govt's Iraq policy.
Iraq was front and centre in the US as well, in a major foreign policy
address by Democratic presidential candidate John Kerry.
He lashed out at the Pres for not winning over more internat'l support
in Iraq.
JOHN KERRY, US DEMOCRATIC PRESIDENTIAL CANDIDATE: Staying the course
is important.
But staying the wrong course is not a sign of strength, it is a mark
of stubbornness and it ultimately weakens this nation.
NORMAN HERMANT: Mr Kerry's been criticised by some Democrats for not
taking a more vocal anti-war stand.
But many analysts say with the war dragging George W Bush's support
down by the day, John Kerry's best strategy on Iraq may be to say as
little as possible.
Norman Hermant, Lateline.

Iraq in transition
US starts to think the unthinkable about Iraq
Washington (FT).  The consequences of US defeat in Iraq are, in the
words of Pres George W Bush, "unthinkable". Even so, some in the Admin
have started to contemplate the prospect, while other outspoken war
advocates in Washington are already proclaiming failure.
US officials stress, however, that while the consequences of possible
failure are being pondered, the Admin is focusing on supporting the
newly selected caretaker govt as it tries to organise legislative
elections by next Jan.
"There is no Plan B," a snr official said.
Still, fear that the US might be left alone to cope with conflict in
Iraq has driven significant policy shifts. Washington has come to
realise it must confer real authority on the new govt on Jun 30. But
officials believe that France, Germany and Russia, leading opponents
of the war, have been slow to recognise this US swing towards pragmatism.
Within the Admin there is still a sense that the European detractors
are not unhappy to see the US in trouble.
"There's still a fair bit of satisfaction at seeing the US get its
comeuppance in Iraq, especially among Europeans," the official said.
"There is a failure to recognise that we are adjusting the
objectives. We are far more willing to accept a degree of the unknown."
In this respect, he said Mr Bush's May 23 speech, billed as the first
of several landmark addresses on Iraq, was a "disaster". The plan was
essentially a rehash of position statements and failed to convey to
Europe that the US was prepared to cede control in Iraq.
The long-term impact of the Iraq crisis on transatlantic relations
worries Washington, and solutions are being sought as Mr Bush prepares
to travel to Europe for the D-Day celebrations.
Simon Serfaty, analyst at the Centre for Strategic and Internat'l
Studies, was recently commissioned by someone in the Admin -- he does
not say who -- to write a paper on the impact of failure in Iraq on
Europe and transatlantic relations. He defines failure as an abrupt
withdrawal of most US troops while Iraq dissolves into internecine strife.
"Europe's fragile political structure of centrist Republics would be
vulnerable to long-repressed cultural or nat'list instincts, with
consequences for Europe's entire institutional structure," he wrote.
"Much of Europe might now view strategic separation [from the US] as a
viable response to an unnecessary cultural clash with an Islamic world
progressively united by the misuses of American power and the
misrepresentations of W values."
Russia and China might be viewed as alternative global strategic
partners, while France and Germany would lead efforts to form a
"smaller but more cohesive union of pioneer states as a rampart
against the allegedly irresponsible uses of American power".
For Pres Vladimir Putin, "prospects of a renewed Russian empire, built
around a new alliance with Ukraine, Belarus and Kazakhstan, might
prove irresistible", he adds.
That "separation" -- at least from the Bush Admin -- has already
begun, says Philip Gordon of the Brookings Institution.
"The Europeans have already dropped Bush and they are now waiting out
the election. They do not want to see a strategic failure for America
in Iraq, because that would be very bad for them. But at the same time
they don't want to do anything that confirms the Bush approach to the world."
For some Washington conservative ideologues who wanted war on the
grounds that Iraq would become a beacon of democracy for the whole
region, the mission has already failed. Fouad Ajami, professor of
Middle Eastern studies at Johns Hopkins University, wrote that even if
Iraq survives, the "dream is dead".
"Let's face it: Iraq is not going to be America's showcase in the
Arab-Muslim world," he wrote in the NY Times last wk, admitting he
failed to recognise that radical religious beliefs, not democracy,
would fill the void left by despotism.
Failure has been defined in various ways and its repercussions in the
region are already being felt. Most US Arab allies have turned down Mr
Bush's invitation to come to the US during next wk's G8 summit.
The Abu Ghraib prison abuse scandal and Mr Bush's close identification
with Israel's Ariel Sharon contributed to a "whole sourness of
things", a US official conceded.
On Apr 13, Mr Bush laid out what he thought the "unthinkable" would
mean: "Every friend of America and Iraq would be betrayed to prison
and murder as a new tyranny arose. Every enemy of America and the
world would celebrate, proclaiming our weakness and decadence, and
using that victory to recruit a new generation of killers."
The US has contingency plans, including the evacuation of some
civilians from Baghdad, in case of an uncontrollable surge in
violence. However, a military rep said that eventuality was "both
unlikely and inconsistent with the reality on the ground".

US-promised "full sovereignty" of Iraq after Jun 30 might not be so
Washington (AP).  US Pres George W Bush and top US officials
repeatedly stress that Iraqis will have "full sovereignty" after Jun 30.
The interim Iraqi govt that takes power then, however, will be
more caretaking than autonomous, unable to do basic functions such as
like make laws or control military forces.
Zbigniew Brzezinski, nat'l security adviser to former president
Carter, says the term "full sovereignty" -- emphasised Tue by Bush, US
Sec of State Colin Powell and nat'l security adviser Condoleezza
Rice -- lacks credibility.
No govt can be fully sovereign while its country is "still being
occupied by a foreign army, 140,000 men, subject to our authority," he said.
Brzezinski envisions a govt of "limited sovereignty," the same wording
used by Under-secretary of State Marc Grossman before Congress in Apr.
The Bush Admin quickly disavowed that phrase in favour of "full sovereignty."
Nevertheless, the Iraqi Admin to be installed on Jul 1 is more a
caretaker govt than an entity with broad authority to exercise its will.
As an example, US forces there will remain under American
control. Also, the approval of any new laws must await the early 2006
installation of an elected govt contemplated under the current timetable.
The main task of the interim authority will be to run the country
through the various govt ministries and to organise elections in Jan
for what Bush calls "the 1st freely elected, truly representative
nat'l governing body in Iraq's history."
The US State Dept said Tue the interim govt, a 33-member cabinet was
announced Tue in Baghdad, will be free to establish diplomatic
relations with Iran or other countries if it wishes.
But Simon Chesterman, of the Institute for Internat'l Law and Justice
at NY University, likens US relations with the future Iraqi caretaker
govt to the dominant role the Soviet Union maintained over pliable E
Bloc allies during the last century.
US officials say the 2 situations are not comparable, based on the
permanent nature of the Soviet troop presence in Central Europe
contrasted to the US goal of leaving Iraq as quickly as possible and
American support for a transfer of power to an elected govt.
Powell said Tue he believes the transfer in Iraq from the US-led
Coalition Provisional Authority will be genuine.
"The Iraqi people will now see that their destiny is in the hands of
their own leaders," he told reporters. "The occupation as they know it
is coming to an end, in that their political leaders are in charge."
Brzezinski sees things far differently.
"The transfer of nominal sovereignty to a few chosen Iraqis in a
still-occupied country will brand any so-called sovereign Iraqi
authority as treasonous," Brzezinski says.
But US officials hope that Iyad Allawi, PM of the new govt of the
still non-sovereign Iraq, will gain more acceptance from Iraqis than
the US-picked Iraqi Governing Council, which dissolved itself Tue.
In terms of public support, Allawi appears to have a leg up on the council
because he has the blessing of Lakhdar Brahimi, the UN envoy to Iraq.
The more the new govt is seen as sovereign by outsiders, the better
its chance of acceptance by Iraqis.
Accordingly, the Admin is nurturing in virtually all public statements
the notion that a "fully sovereign" Iraq is about to be born. Powell
is confident that the UN Security Council will endorse the new arrangement.
The US and Brit submitted a revised resolution to the council Tue that
for the 1st time sets a deadline, 2006, for the departure of US and
other foreign troops. It also would give the interim govt control over
Iraqi army and police forces.
Bush will have plenty of opportunity to present his case to allies. He
leaves Thu for visits to Italy and France.
After meetings with leaders of both countries, Bush travels to Sea
Island, Ga, to host next wk's summit of the Group of Eight, the
world's 7 major industrial democracies plus Russia.

"Sovereignty" at issue in final push for Iraq transition plan
Members of UN Sec Council are pressing the US to ensure that caretaker
Iraqi govt has full control.
Washington (CS Monitor).  The question of how much sovereignty for Iraq
is dominating the final deliberations over the hand over of authority
from the US -- from Baghdad and the sun-baked mosques of Kufa and
Najaff to the halls of the UN in NY.
The sovereignty question factors in the surprise naming by the
US-appointed Iraqi Governing Council of one of its own members, Iyad
Allawi -- a longtime exile with close ties to the CIA -- as prime
minister of the interim govt that will take over Iraq's affairs Jun 30.
It's an underlying presence in the deal the fiery Shiite cleric
Moqtada al-Sadr made last wk with moderate Shiite leaders calling off
his militia's uprising against US forces. The rebellious leader,
wanted in connection with the murder of another cleric last y,
pointedly said he would not submit to any authorities that did not
issue from a sovereign govt.
And establishing genuine sovereignty for Iraq is becoming the focus of
Sec Council countries that do not want to approve another UN resolution
that in effect leaves Iraq's affairs -- especially in the security
realm -- in American hands.
Sovereignty is taking on such importance because of deepening concern
over whether the Iraqi people will embrace the interim govt as legitimate
in the crucial m before elections planned to be held by Jan 2005.
"There are going to be problems with any govt, especially where the
security situation won't allow an electoral process to deliver it,"
says James Dobbins, a former Whitehouse envoy to Afghanistan and Bosnia.
"But what is needed is a govt that as many people buy into as possible."
The interim govt that began to emerge over the weekend is a reflection
of a tougher tug of war than anticipated between the US-named
Governing Council and UN envoy Lakhdar Brahimi, entrusted by the
Whitehouse with coming up with a caretaker govt.
Charged with forging a leadership made up of a PM, a largely
ceremonial president and 2 VPs, as well as 26 ministers, Mr Brahimi
sought to deliver something more representative to average Iraqis than
the Governing council, which has never enjoyed much public support.
But the council, made up largely of former exiles representing
established political parties, balked at Brahimi's 1st choice for PM,
nuclear scientist Hussain Sharistrani, a Shiite and senior adviser to
Grand Ayatollah Ali al-Sistani. After imposing one of their own, Mr
Allawi, in that post on Fri, council members also stonewalled
candidates that were known to be the preference of Brahimi and the US
for other top jobs.
But at the same time Brahimi was believed to have secured 3 of the 6
most coveted ministerial positions for 2 Kurd leaders and one Sunni --
the other 6 going to representatives of the majority Shiites. While
some of the top picks of the new govt still being drawn up Mon were
not Brahimi's 1st choices, the overall makeup is reflective of the
careful balance among Iraq's predominant religious and ethnic
populations that the UN envoy sought from the beginning. "Brahimi
really has been very clever. He knows that if there is no buy-in from
the main communities, the govt won't have legitimacy and it can't be
successful," says Laith Kubba, an Iraqi expert at the Nat'l Endowment
for Democracy in Washington.
From the beginning, the Governing Council was uneasy with what Brahimi
said was his preference for a caretaker govt of technocrats who would
swear off any role in elections. People close to Brahimi say his talk
of technocrats was never a hard and fast rule, but rather a way to
discuss the new govt's formation.
"Brahimi doesn't go in with a vision, he goes in with an open mind and
a plan for moving consultations in a desirable direction," says Mr
Dobbins, who worked with Brahimi in Afghanistan.
Now an internat'l security expert at the RAND Corp, Dobbins says any
govt Brahimi accepts will be one he believes can move Iraq ahead.
But others say the interim leadership is still going to face heavy
suspicion that it, like the council, was handpicked by the US. That is
especially true given Allawi's close ties to the CIA. "This is a
disaster," says Faleh Jabar, an Iraqi political scientist now at the
US Institute of Peace in Washington. Noting that Allawi is an ex-Baathist,
Mr Jabar adds, "He is neither a technocrat nor someone who will stand
aside as we move towards elections."
The risk is that even if the new govt succeeds at the intricate task
of balancing Iraq's key ethnic and religious groups, Iraqis may still
see it as a govt named by outsiders.
"Handpicked govts selected from outside tend to have limited support,"
says Gayle Smith, a former Nat'l Sec Council expert. Pointing to the
Governing Council's experience, she says the caretaker leaders will
have to make clear that it's "provisional," charged mainly with
organising elections.
At the same time, the caretaker govt is seen by the world community as
a crucial step in reestablishing Iraq's sovereignty.
Members of the Sec Council are insisting on strengthening a draft
resolution submitted by the US and Brit last wk to ensure that even a
caretaker govt will have charge of the country's affairs -- especially
in security matters.
China, for example, wants the operations of foreign troops to be
subject to Iraqi review, except in the case of self-defence.
Pres Bush speaks of "full sovereignty" for after the hand over, but
opposes any limits on US command of its own forces.
Such prickly issues will be debated when the new Iraqi leaders make
their views known. Any who are perceived as too close to the US might
raise internat'l suspicions. But foreign diplomats say it is unlikely
the Sec Council would brush off representatives of a govt that has
received UN envoy Brahimi's blessing.

Bush denies new Iraqi leaders are his puppets
Washington (SMH).  George Bush has promised the new Iraqi caretaker
govt full sovereignty while praising the strength of the new PM, Ayad
Allawi, a longtime recipient of aid from the CIA, Brit's MI6 and Saudi intel.
Calling Dr Allawi a strong leader who had survived assassination
attempts by Saddam Hussein's regime, the US Pres dismissed suggestions
that the new Iraqi govt would be seen as "a puppet of the US" because
of the number of exiles in its ranks who had been supported by
Washington and London over the past decade.
"We did help some of the figures now in the interim govt," Mr Bush said.
"We helped them because they were fierce anti-Saddam people."
Mr Bush welcomed Dr Allawi's immediate pledge to support the presence
of a US-led multinat'l force in Iraq, which is expected to stay until
at least 2005.
Washington is now lobbying the UN Sec Council to endorse a new
resolution backing the caretaker Iraqi govt and giving a new mandate
to a US-led multinat'l force.
Mr Bush stressed that the UN special envoy, Lakhdar Brahimi, had
recommended the members of the new govt despite strong indications
that his choices for PM and president had been blocked by members of
the old US-appointed Iraqi Governing Council, including US-backed
exiles supported by their armed militias.
Mr Bush's negotiator, Robert Blackwill, also played a key role in
finalising the names in the govt, many of whom are exiles who worked
in opp'n groups in London and the US or in the US-backed Kurdish govt
in N Iraq.
However, the ceremonial president, Ghazi Yawar, a Sunni tribal leader,
was not the 1st choice of the US, which preferred Adnan
Pachachi. Nonetheless, Mr Yawar has strong US ties, having studied at
Georgetown University in Washington and worked until recently as a
company executive in Saudi Arabia.
Dr Allawi, came to prominence as the head of the Iraqi Nat'l Accord
when the CIA supported his efforts to mount a coup against Saddam in
1996. When the plot failed, scores of Iraqi military officers who had
supported it were arrested by Saddam's security forces.
While Mr Bush promised that the new Iraqi govt would have full control
over Iraqi security forces and police, he again insisted that US-led
troops would not answer to it.
"The American people need to be assured that if our troops are in
harm's way they will be able to defend themselves without having to
check with anybody else other than their cmdr."

Bremer "the dictator of Iraq"
Baghdad.  UN envoy Lakhdar Brahimi on Wed responded to criticism of US
involvement in the nomination of the new Iraqi govt by stressing
Washington was still the dominant force in the country.
"I would remind you the Americans are governing the country so their
point of view was certainly taken into consideration," he said at a
news conference.
"I don't think he'd mind my saying this: Bremer is the dictator of
Iraq. He has the money, he has the signature," said Brahimi after
stressing he had been invited to choose the new cabinet at the request
of the Americans and the now-disbanded Governing Council.
The final line-up was the product of haggling, notably between the US
and the council. The sides formed a working committee along with
Brahimi to vet the list of contenders, the envoy said.
Representing the Governing Council in those talks were Kurdish leader
Massoud Barzani, Shiite and Communist party leader Hamid Majid Mussa
and Sunni tribal sheikh Ghazi al-Yawar, the envoy said.
Yawar was tapped on Tue after a bruising competition with fellow Sunni
leader Adnan Pachachi for the largely ceremonial role of the interim
govt's president.
"Ultimately you know that you have very, very complicated issues. What
you have to do then is a compromise, with strengths and weaknesses. And
the overall picture is positive.... very much positive," Brahimi said.
But he admitted that the new Iraqi executive unveiled on Tue was not
ideal and stressed its members would have to work hard to earn legitimacy.
"None of us should forget that ultimately it is only an elected govt
that can legitimately claim to represent the people of Iraq," Brahimi said.
* They have not been elected
"Meanwhile the members of this govt know and should not forget that
they have not been elected.
"This govt will therefore have its work cut out for it.
It will not be easy for them to prove the sceptics wrong."
PM Iyad Allawi's govt will be tasked with bringing security back to
the war-torn country and organising free elections next y.
"Nobody would expect the rich diversity of Iraq to be fully represented
to the satisfaction of every ethnic group, every province, every
religious group and every one of the several hundred political parties,"
Brahimi said.
Allawi had close ties with the US Central Intel Agency, and like many
of his ministers, is a former exile with little popular support in Iraq.

Concern over UN's Iraq resolution
UN (AP).  Key Sec Council members said they were still not satisfied
with a revised UN resolution on Iraq and want more changes and input
from the country's new interim leaders and UN envoy Lakhdar Brahimi.
Russia and Germany added their concerns to those expressed earlier by
China, France, Algeria and Chile.
The US and Brit circulated the revised blueprint on the end of their
occupation and hand-over of sovereignty to an interim Iraqi govt on
Jun 30, addressing 2 issues raised by council members.
The revised resolution would give the new govt control of the Iraqi
army and police, and would end the mandate for a multinat'l force by
Jan 2006. The original draft did not address the issue of control of
Iraqi security forces or include an end to the force's mandate.
While many council members welcomed the improvements, it was clear
that Washington and London would have to make further changes to get
the approval of all 15 council nations.
French Pres Jacques Chirac said although it was a good basis for
discussion, it needed further improvement to affirm and confirm the
full sovereignty of the Iraqi govt, particularly in the military domain.
Russia's deputy UN ambassador Alexander Konuzin said while "the
co-sponsors made steps forward, but still we have problems.
"There are a number of issues which should be discussed and positions
are not that close yet."
Germany's UN Ambassador Gunter Pleuger said "certainly this draft is a
better basis for discussion than the previous one ... but there are
still things that can be improved."
US Deputy Sec of State Richard Armitage said he believed
Washington had addressed most of the internat'l community's concerns.
"We believe that we are able to ... accommodate the requests and the
views of most of the 15 members of the Sec Council," Armitage told
reporters after meeting with European Union foreign policy chief
Javier Solana in Brussels.
But China, Algeria, Chile, France and others said the relationship
between the multinat'l force and the interim govt wasn't spelt out
clearly enough in the revised draft.
Algeria's UN Ambassador Abdallah Baali said the final resolution must
clearly give the Iraqis final say over the multinat'l force, or MNF.
"We still need to have language that would say that the Iraqi govt's
point of view will prevail over the MNF in case of major military
operations," he said.
China's UN Ambassador Wang Guangya said his country called last wk for
the mandate of the multinat'l force to expire after elections in Jan
2005 when the transitional govt takes power -- and he said China still
wanted that date in the resolution.

Possible roadblocks in Bush plan for Iraq
Washington (AP/Seattle Post-Intel'r).  Pres Bush's 1st step toward
creating a democratic Iraq may be the most problematic: "Transfer full
sovereignty."
Each part of the plan is marked by uncertainties that could undermine
the entire process.
A look at possible roadblocks in the run-up to the Jun 30 political handover:
* transferring full sovereignty to a govt of Iraqi citizens.
UN envoy Lakhdar Brahimi is expected to recommend leaders of the new
interim govt within days. It is unclear if Brahimi will succeed in
naming a govt that satisfies Iraq's main factions.
Shiites, Sunnis and Kurds have different views about who should serve
-- and in what position. All are vying for one of the 2 top posts,
president and PM.
The very term "full sovereignty" has been called in question. Some
lawmakers and overseas officials say Iraq's sovereignty is clearly
limited because the US plans to retain control over US and multinat'l
military forces in the country after Jun 30.
Brit PM Tony Blair said Tue that the new Iraqi govt should have the
power to veto major military operations. But US officials have not
gone that far, saying only that they will take into account the
Iraqis' views.
US officials also have said the interim govt could ask US troops to
leave. But that authority is not included in a draft UN resolution
proposed by the US and Brit on Mon.
The govt will not have the power to enact new laws or change the
interim constitution. That means Iraqis will be subject to laws in
effect from the US occupation.
* establishing the stability and security that democracy requires.
In recent ms, violence in Iraq has risen. Bush himself noted that
"the terrorists are likely to become more active and more brutal"
ahead of the transition.
Bush spoke of the need to give Iraqis a greater role in security. But
he also said, "In some cases, the early performance of Iraqi forces
fell short."
Bush cited the all-Iraqi security force that was created to ease
tensions in the Sunni city of Fallujah. That force has put the US in
the awkward position of depending on officers from Saddam Hussein's
former army.
* enlisting additional internat'l support.
France, which has veto power over the proposed UN resolution, wants to
see the new govt have more control over security.
The resolution calls for creation of "a distinct entity" to protect UN
staff and facilities. That force would be within the multinat'l force
commanded by the US that is providing security throughout Iraq.
So far, additional nations have been reluctant to put their troops
under a US command. It is unclear if that wording in the new
resolution, should it pass, would entice them.
The level of violence also has made it more difficult to attract
foreign troops.
* rebuilding so Iraq can gain economic independence.
Bush cited progress in rebuilding schools and hospitals, repairing
bridges, upgrading the electrical grid and modernising communications.
But the violence has slowed reconstruction. Iraqis cooperating with
Americans have been targets of insurgents.
In Apr, only 25% of Iraqi workers on reconstruction workers stayed on
the job, although 75% are now reporting for work every day, a US
official said Mon.
A Russian energy company announced Wed that it will evacuate its 241
employees from Iraq after gunman killed 2 technicians heading to work
at an electric power station.
Bush noted that $13.5 bn has been pledged to Iraq by 37 countries and
internat'l financial institutions. But that leaves the US as the
overwhelming source of foreign assistance, spending more than $20 bn
on reconstruction.
* holding free nat'l elections, no later than Jan.
Carina Perelli, the UN elections chief, has said that electoral
procedures would have to be put in place by the end of May for
elections to be held in Jan.
She has also stressed that the country will need stable security for
the elections.

Egyptian, Turk held hostage in Iraq: footage
Cairo.  The al-Arabiya TV network has broadcast footage of an Iraqi
group threatening to kill an Egyptian and a Turkish hostage, if their
countries do not condemn the US-led occupation of Iraq.  The network
says the footage shows a masked man holding an assault rifle, as 2 men
crouch in front of him holding up their passports.  It says both men
attempted to identify themselves on the tape, but the audio quality is
very poor.  Egyptian For Min Ahmed Maher says the Egyptian delegation
in Baghdad is following the situation, and maintaining contact with
the relevant Iraqi authorities.

5 aid workers killed in Afghanistan ambush: report
Kabul (ABC, Geoff Thompson).  3 Europeans are believed to be among 5
aid workers killed in an ambush on a Medecine Sans Frontiere (MSF)
vehicle travelling in NW Afghanistan.  2 Afghans are also among the
dead.  MSF has refused to comment on the incident.  Reports sourced to
unnamed Afghan security personnel say that 2 Afghans, a Belgian woman,
a Dutchman and Norwegian man were killed when an MSF vehicle was attacked
yesterday by unknown gunman while on a road in Baghdis province in NW
Afghanistan.  The location of the attack makes it rare. Foreign aid
workers are regularly targeted in the S and E of the country.

Amnesty seeks nat'l domestic violence strategy
Perth.  Human rights organisation Amnesty Internat'l says a lot more
could be done by state and fed govts to combat violence against women.
It has released 2 reports on the incidence of violence against women
and proposals on how it can be addressed by govt and the justice system.
One in 4 Aussie women will be the victim of domestic violence.
A 2-day conference will start in Fremantle, in W AUS, tomorrow as part
of the organisation's 6-y campaign against violence towards women.
Amnesty's Hilary Fisher says govt needs to provide adequate resources
to deal with the problem.
"How much money is actually being spent on this? Violence against
women is a serious criminal offence. Is it treated in exactly the same
way as other criminal offences, are the same resources being given to
it?," she said.
"It's really important that a nat'l strategy is developed which will
ensure that there's effective collection and analysis of info about
violence against women, and an overall strategy which works not just
in the individual states but also nationwide."

Vic man dies in NZ hospital
Wellington.  An Aussie man allegedly assaulted in NZ last m has died.
New Zealand police say 33-yo Vic man Matthew Larkins died in
Wellington Hospital yesterday afternoon.  Mr Larkins was allegedly
assaulted by a 16-yo last m in the town of Hastings, on NZ's N island.
He had been working in the town as a shearer.  2 16-yos were charged
over the incident and appeared in Hastings Youth Court last m.

NSW approves AUS's 1st drug treatment jail
Sydney.  Legislation to set up AUS's 1st compulsory drug treatment
jail has passed the NSW upper house and is expected to go ahead next y
in SYD's west.  The Govt says the jail is designed for serial
offenders who are continually in front of the courts and says if drug
habits can be broken it will reduce other crimes like assault and
robberies.  Inmates will be drug tested 2 to 3 times a wk and failure
of a test could see the prisoner returned to a regular jail.  The 2-y
trial will involve 100 adult males and will be run out of Parklea jail
in SYD's west.  The bill was supported by the Opp'n, but Reform the
Legal system MP Peter Breen says unless the system is voluntary, it
will not work.  Statistics from comparable institutions overseas
suggest that the failure rate is greater for people who are
compulsorily made to go through treatment as opposed to those who do
it voluntarily.

ABC criticised over "Playschool" same sex story time
Child's story tells of "2 mummies" [shock, horror!]
Canberra.  The ABC has been criticised for allowing Playschool to
broadcast a children's story allegedly involving a same sex couple.
Fed Min for Children, Larry Anthony, says while Playschool is a
quality program, it overstepped the mark in reading a book about a
child with 2 mothers.  Mr Anthony says it is the role of parents to
educate their children on such issues.  "I am concerned that the ABC
are putting on these types of programs," he said.  "Quite frankly when it
comes to my children, if I want explain about same sex couples that
should be up to parents.  "It should be up to me, not the Aussie broadcaster."

Vaile to outline case for no wheat grower compo
WA growers are owed about $20,000 each for wheat sold to Iraq.
Canberra.  Fed Trade Min Mark Vaile has agreed to travel to Western
AUS to explain to wheat growers why the Govt will not compensate them
for $mns of unpaid debt from Iraq.  The W Aussie Farmers Federation
estimates WA growers are owed about $20,000 each for wheat sold to
Iraq before the 1st Gulf War in 1990.  Mr Vaile announced yesterday
that instead of compensation, the Govt has committed $20 mn to build a
grain processing plant in Iraq and has also reinstated insurance cover
to bail out growers for any future losses.  Farmers' federation grain
section president Peter Wahlsten says some growers will be angry at
being left out of pocket, so it is important for Mr Vaile to explain
why.  "I think it's necessary because there are a lot of things that
are being said which are incorrect and we do need to have all the info
right up to date on the table in front of growers," he said.

Democrats lobby US Sens to reject FTA
Canberra.  The Aussie Democrats have written to every member of the
US Senate, urging them to vote against a proposed free
trade agreement between the 2 countries.  PM John Howard is in
Washington, where he is lobbying US politicians to support the trade
deal.  Democrats Sen Aden Ridgeway says the benefits to AUS from the
agreement are far outweighed by the likely costs.  Sen Ridgeway says
in the future, disputes over sensitive areas contained in the trade
deal may cause problems in the relationship between the 2 countries.

Economy growing at slower pace
Canberra (AAP).  The nation's economy was still growing comfortably
but at a slower rate than the un-sustainable pace of late 2003, Reserve
Bank of AUS (RBA) deputy governor Glenn Stevens said.
Mr Stevens was upbeat on the prospects for what he viewed as a
still-buoyant economy and appeared relaxed about the current level of
interest rates.
Unfazed by this y's moderation in economic growth, highlighted by
Wed's softer Mar quarter GDP numbers, Mr Stevens, in a speech to the
Committee for Economic Development of AUS (CEDA) in Bris, said he was
able to present "a pretty positive picture" for the nation's economy.
"The Aussie economy has continued to grow," he told CEDA members in
his address on economic conditions and prospects.
He also said with the abating of Aussie dollar strength demand for
Aussie goods and services was improving.
In the 2nd half of 2003, real GDP expanded at an annualised pace of
more than 5%, as the farm sector gained ground on better climatic
conditions and the non-farm economy continued to expand, helped by
strong domestic spending and the early stage of an exports recovery,
he said.
"It was unlikely that growth at that pace would persist and according
to figures released earlier today, the speed of growth early in 2004
was noticeably more moderate," said Mr Stevens.
The Aussie Bureau of Statistics said today that Mar quarter GDP rose
by 0.2%, well below expectations of a 0.5% rise.
"Consumer demand is not advancing at the same pace this y as it did in
the 2nd half of 2003, though tax reductions in the coming y will
presumably offer support to consumer spending," Mr Stevens said.
"Employment has continued to rise, and the rate of unemployment is at
its lowest for over 20 y."
He said there had been a distinct softening in most of the major
housing markets, with more than one data series showing an outright
fall in prices in the Mar quarter in several cities.
"This was associated with a decline in the demand for credit, though
on the most recent data that demand still seems very strong," he said.
Asked about the state of the housing market after his address, Mr
Stevens said the housing boom was making an orderly retreat.
"At the moment the boom is receding and it's probably receding in as
measured and as minor a fashion as we could hope," he said.
He said that with the world economy doing quite well, external demand
for Aussie goods and services was expected to be stronger.

Figures point to end of decline in services sector growth
Canberra.  Growth in the Aussie services sector might have turned the
corner.  A "Performance of Services Index" compiled by the Aussie
Industry Group and the Commonwealth Bank has risen in May.  The
increase of 2.4 points to 53.8 is the 1st improvement since last Dec.
A figure above 50 indicates expansion.  Commonwealth Bank chief
economist Michael Blythe says there are encouraging signs of an end to
the decline in services sector growth from its peak last Oct.  Reduced
concern about rising interest rates and the pending tax cuts have been
cited as positive influences.  However, there is some uncertainty
arising from the timing of the fed election, import competition,
higher oil prices and lingering dry weather conditions.

Growth slowdown hits dollar
Dollar is below 70 US cents.
Sydney.  Offshore disappointment with AUS's latest economic growth
performance has contributed to a sharp drop in the value of the dollar.
The local currency has fallen back under the 70 US cent level and was
as low as 69.33 US cents overnight, one-and-a-third cents below
yesterday's local close.
Macquarie Bank currency strategist Jo Masters says there has been a
combination of factors.
"Importantly, yesterday's decision by the RBA to leave interest rates
on hold is being seen in contrast to the NZ and the UK, where both of
those central banks are expected to raise rates again next week," she said.
"Reinforcing that was yesterday's disappointing GDP data."
AUS's economic growth slowed to just 0.2% in Mar quarter, as exports
failed to kick in sufficiently to offset a cooling housing sector and
a decline in business investment.
The figures proved no restraint for the share market, which yesterday
hit a record high.

Nat'l strategy needed on Aboriginal child health: report
Canberra.  The authors of a report into Aboriginal child health say
the alarming and disturbing statistics highlight the need for a nat'l
strategy to combat the problem.
The study has concluded that attempts to improve the state of
Aboriginal health have not worked.
5 thousand Aboriginal children were surveyed by the Institute for
Child Health Research for the landmark study.
It found the infant mortality rate is 4 times higher for Indigenous
children compared to the rest of the population, 13% are born
prematurely and half of the mothers surveyed smoked during pregnancy.
The manager of the Kulunga Research network Heather D'Antoine says the
health system needs to re-assess what is being done to combat the problem.
Curtin University associate professor Sven Silburn says it needs a
whole of community response.
"And that includes everything from housing, through to education,
through to the services that are available."

Bakhtiyari children to remain in detention
Adelaide.  The Fed Court in Adel has refused to grant the 5 Bakhtiyari
children an interim release from immigration detention.  Lawyers for
the children appealed to the court to free them until a decision was
made on their deportation, arguing their detention is unlawful.  But
Justice Bruce Lander said he was satisfied that reasonable prospects
did exist for the family to be removed from AUS in the foreseeable
future.  He also found that even though the children have been living
in community detention under the care of Catholic welfare agency
Centacare, it was a similar lifestyle to what they had before a High
Court decision in Apr.  In that ruling, the High Court said the Family
Court did not have the jurisdiction to release the children.

Bail laws may be toughened
Canberra (AAP).  The Fed Govt may toughen bail conditions to stop
people facing terrorism charges skipping the country.
A-G Philip Ruddock is considering the move which would reverse the
current presumption of giving a person bail.
It follows a case in SYD where a man, on serious firearm offences,
skipped bail and then fled overseas on a fake passport.
Fed cabinet is expected to consider the idea when PM John Howard
returns from his present visit to the US, Brit and France.
The new move on bail conditions comes as the Commonwealth Director of
Public Prosecutions considers an appeal against the jail sentence
imposed on convicted Aussie terrorist Jack Roche.
Roche, 50, was this wk sentenced to 9 y in jail for plotting to blow
up the Israeli embassy in CBR but may be eligible for parole in May 2007.
Prosecutors had sought a sentence approaching the maximum 25 y.
Damian Bugg QC is now reviewing the sentence, opening the way for a
possible appeal.

Min critical of bail for terror suspect
Belal Khazaal has been freed on bail.
Sydney.  NSW Police Min John Watkins says the decision to grant bail
to a SYD man charged with a terrorism offence is inexplicable.
He is calling on the Commonwealth Dept of Public Prosecutions (DPP) to
appeal against the decision and says the NSW Govt will amend the
State's Bail Act.
Lakemba man Bilal Khazal, 34, was granted bail yesterday after
appearing in SYD's Central Local Court charged with activities related
to terrorism.
Mr Watkins says he would like the Commonwealth DPP to appeal against
the court's decision to grant bail to Khazaal.
"This person should be held behind bars until his trial and it's made
worse by the fact that this wk, we learnt that another high profile
suspect walked out of the country by flashing a false passport at the
Customs border," he said.
Mr Watkins also says the NSW Govt will introduce amendments to the
State's Bail Act by the end of the wk to ensure people charged with
terrorism offences are not released on bail.
"When the Bail Act was drafted in 1978, the law makers could not have
imagined the horror that terrorism would mean to us in 2004," he said.
Khazal will reappear in court in Jul.

Moroney moves to appeal Khazal bail decision
Sydney.  NSW Police Commissioner Ken Moroney says moves have begun to
appeal against the decision to grant bail to a SYD man accused of
terrorism offences.  Bilal Khazal, 34, was yesterday granted bail
after appearing in court, charged with making documents likely to
facilitate terrorism.  It is understood the former Qantas baggage
handler has so far been unable to post bail.  Commissioner Moroney
says his deputy, Andrew Scipione and fed authorities are now
considering lodging an appeal against the decision.  "I would hope
that this morning they'll be in liaison with the Commonwealth Director
of Public Prosecutions with a view to lodging an appeal at what I
regard as an astounding decision yesterday to grant bail, particularly
in the amount that was granted for what is clearly one of the most
serious offences within the nation's criminal code," he said.

Ruddock flags nat'l no-bail laws for terror suspects
Canberra.  Fed A-G Philip Ruddock says he wants to legislate so there
would be a presumption of refusing bail to people charged with
terrorism offences.
A 34-yo SYD man, Bilal Khazal, was released on bail yesterday after
being charged with terrorism-related activities.
The decision to grant Khazal bail has been widely condemned and the
Commonwealth Dept of Public Prosecutions is expected to consider an appeal.
Mr Ruddock says introducing fed legislation to avoid the same thing
happening in other states could be the answer.
"That would address the question of various provisions, because they
do vary from state to state, and they are quite different and I
wouldn't want to be in the situation where we had a terrorism related
offence where we're faced with the same difficulties we are now," Mr
Ruddock said.
The Commonwealth Dept of Public Prosecutions is expected to consider
an appeal against the bail decision.
NSW A-G Bob Debus has described the bail decision as a most concerning.
He says state govts need to catch up to align their laws with
Commonwealth terrorism legislation.
"In NSW, we've been working very hard to make sure our own state
criminal laws match up in terrorism laws in every way that we can
think to be appropriate," he said.
NSW Shadow Police Min Peter Debnam joined the chorus of critics angry
at the SYD court's decision to grant Khazal bail.
Mr Debnam says the judiciary needs to update itself on the
expectations of the community in relation to serious offences.
"We need to say to the judges and magistrates, 'Look get real'," he said.
"Terrorism is a serious threat to every W democracy, it's been a
threat here in AUS for a long time but it's not just terrorism, it's
also serious gun charges and the judiciary needs to get in step with
community expectations and also what Parliament expects."

SYD man arrested on terror charges
New laws to stop bail for terror suspects
Sydney.  The NSW Govt says it will introduce new laws to Parliament by
the end of this wk which will provide for a presumption against bail
for anyone charged with terrorism offences.
Last m the Govt announced a number of new offences to protect critical
infrastructure and that bail laws would be amended to make it
difficult for people charged with terrorism offences to be granted bail.
Yesterday former Qantas baggage handler Bilal Khazal was given bail in
a SYD court after he was charged under terrorism laws.
A-G Bob Debus says the Parliament should be able to vote on the
measures this wk.
Shadow Police Min Andrew Tink says the issue needs to be addressed
urgently.
"There's no excuse for the Prem today not to introduce a bill to make
sure that this loophole is closed," he said.
The Fed Govt will also legislate to introduce a presumption against
bail for people charged with terrorist offences.
Fed A-G Philip Ruddock says the states and territories
have very different bail arrangements.
He says he will urgently introduce legislation to ensure that there is
a presumption against granting bail to those charged with serious
terrorist-related offences.
"That would mean that a court would not presume to grant bail unless
there were very cogent countervailing circumstances for a grant," he said.
Mr Ruddock says courts would still have the discretion to release
people charged with terrorist offences, but only in exceptional circumstances.
He says it will be quicker to enact Commonwealth law than to try to
get the states and territories to agree on a common practice for
granting bail.
The Govt plans to introduce the bill to Parliament within a fortnight.

Vics miss out on uni place: report
Melbourne (AAP).  More than 13,000 eligible Vics missed out on
university places this y, a parliamentary inquiry has found.
The result follows ever-increasing levels of unmet demand for higher
education places which had risen to 37% last y, the education and
training committee report tabled in state parliament found.
Committee chair Steve Herbert said the result was a conservative
estimate of eligibility of the 22,350 applicants did not get an offer
in 2003-04.
"It's heartbreaking that many 1000s of young people work their hearts
out to get really good scores in their VCE only to miss out on a
university place -- not because of their ability -- but because the
Commonwealth govt disadvantages Vic," he said.
The report found just under half of eligible nursing applicants --
almost 1,600 students -- did not secure a place.
More than 2,600 students -- or 55% -- of aspiring teachers -- also
missed places.
In nursing and teaching, both areas of nat'l priority, "a substantial
pool of eligible applicants currently exists", the report concluded.
"These findings are of key concern to the committee given severe
nursing shortages across the State and projected future needs for
additional teacher graduates," the report said.
The findings "provide clear evidence of an unacceptably high level of
unmet demand for higher education", it said.
Shortages of specialist secondary teachers -- in maths, science, info
technology and languages other than English -- were notable in rural
and regional Vic.
The report concluded the unmet demand for higher education had
"significant potential to negatively affect Vic industry".
Mr Herbert said the inquiry's key recommendations included a call to
the Fed Govt to increase the number of HECS funded places in Vic.
The fed allocation mechanism for university funding should also be
changed because it disadvantaged Vic, he said.

Murdoch proceedings ahead of schedule: DPP
Peter Falconio went missing in 2001.
Darwin.  The 1st stage of the committal hearing of the man accused of
the murder of Brit backpacker Peter Falconio is expected to wrap up
this afternoon.
Bradley John Murdoch, 45, is charged with the tourist's murder and the
unlawful assault of Joanne Lees more than 3 y ago.
The Director of Public Prosecutions has indicated the proceedings are
ahead of schedule.
More than 20 witnesses have appeared before the Darwin Magistrates
Court during the 1st 3 wk of the committal hearing.
Proceedings will resume in Aug for another 3 wk.
Yesterday the court heard from a business associate of Mr Murdoch.
The witness James Hepi said he had a conversation with the defendant
about how to get rid of a body.
Mr Murdoch said he could put it in a large drain on the side of the
road and cover it with dirt.
The witness also told the court he saw Mr Murdoch making handcuffs out
of cable ties.
The hearing continues.

Final witness appears at Falconio murder hearing
The last witness has been heard in the committal hearing of the man
accused of murdering Brit backpacker Peter Falconio.
Darwin.  45-yo Bradley John Murdoch is charged with the murder of Mr
Falconio and the unlawful assault of his girlfriend Joanne Lees almost
3 y ago.  Twenty-eight witness have been heard in the 1st stage of the
committal hearing.  Magistrate Alasdair McGregor said he has to deal
with housekeeping issues before lunch.  It is expected he will then
adjourn the proceedings until Aug.  Earlier today, a man who shared a
house in Broome with Murdoch told the court he never saw the defendant
with a gun.  Peter Jamieson said he saw Murdoch in Jul 2001 at a
service station at Fitzroy Crossing in W AUS.  He said there was
nothing out of the ordinary and Mr Murdoch appeared the same with
stubble, shortish hair and a moustache.  He was driving a white
Landcruiser with a trayback and canopy and was towing a trailer.

PM's death "would cost $2.34 mn"
Canberra (AAP).  Consultants contracted by the Aussie Fed Police (AFP)
reportedly believe the death of a PM in a security incident would cost
the agency $2.34 mn.
The Aussie Financial Review newspaper reports this cost, together with
others like $19,000 for a disrupted dinner and $300,000 for a bomb
hoax are being saved by the $82.5 mn spent on intel gathering and
protection by the AFP.
It says Centre for Independent Economics consultants were called in
Mar by the AFP to estimate the economic cost of the death of a high
profile public office holder like the PM in a security incident.
The calculation took in the estimated value of lost labour because of
the death and the costs of a statue funeral, legal investigations and
insurance payouts to reach the figure.
The newspaper said it was part of a cost-benefit analysis of the AFP's
protection services for politicians, foreign dignitaries.
The details were obtained by the Aussie Financial Review under freedom
of info laws.
The analysis found the $82.5 mn spent on AFP's protection services was
generating benefits of about $333 mn pa.

Howard lobbies Schwarzenegger on gas
Aussie PM John Howard has begun a US visit by meeting California
Governor Arnold Schwarzenegger.
LA (AFP).  Aussie PM John Howard has begun a US visit by meeting movie
star and California Governor Arnold Schwarzenegger for talks on a
lucrative gas contract.
Mr Howard flew into Los Angeles for a fleeting 2-day US swing
dominated by talks in Washington with ally Pres George W Bush on the
war in Iraq and on the US-led war on terror.
He is also expected to raise the issue of the 2 Aussies who have been
held by the US in Guantanamo for more than 2 y without charge.
The start of his visit was infused with a mix of Hollywood and
business as he met the Terminator star to discuss trade and pump up an
Aussie role in a planned gas project off the coast nr Los Angeles.
"It was a very positive meeting," Mr Howard told reporters after the
25-minute meeting.
The Governor expressed "a very keen desire" to strike a partnership
deal with AUS over the gas terminal, Mr Howard said.
But the meeting was not all work. Mr Howard gave the beaming action
movie tough guy a pair of custom-made Aussie RM Williams boots as a
memento of his visit, while Mr Schwarzenegger presented Mr Howard with
a heavy bronze bear, the symbol of California.
Mr Howard also invited Mr Schwarzenegger, who became Governor of
California when he won special polls in Oct by a landslide, to visit AUS.
It was not clear if or when Mr Schwarzenegger will travel down under.
Aussie energy giant BHP Billiton wants to win a lucrative contract to
build a liquefied natural gas receiving terminal about 32 km off the
California coast, a scheme that has not thrilled environmentalists.
CBR hopes the terminal can be used to process LNG from Western AUS and
send it to energy-starved California, helping the golden state's
energy shortage and boosting Aussie coffers.
"We have a proven track record of safely transporting natural gas to
other countries," said Mr Howard, who had earlier said the
multi-billion-dollar gas project was "a very important opportunity".
Ian Industry Min Ian Macfarlane will visit California next wk for
talks with top energy officials on the project, who will make a return
trip to AUS to see natural gas fields in Jul.
The deal over the terminal will hopefully be finalised late this y or
early next y, Mr Howard said after the meeting that was also
attended by top US and Aussie natural gas officials.
The PM later left LA for Washington to meet Mr Bush for talks on Iraq,
Washington's handling of the case against 2 alleged Aussie terrorists
and a US-AUS free trade agreement.
He plans to lobby Congress members who could vote later this m to
approve the trade deal.
"It's a very good deal for AUS," he said earlier of the deal that has
AUS's opp'n on edge.
"It's worth $bns to our nat'l income over the years ahead. There are
full protections for pharmaceutical benefits and there are very good
carve outs and guarantees for Aussie cultural film and television," Mr
Howard said.
Mr Howard's Washington meetings will however focus on largely on
developments in the Iraq theatre and the treatment of prisoners
captured in theatres of war in the last 2 y.
Terror suspects David Hicks and Mamdouh Habib, both captured in
Afghanistan held for more than 2 y at the US Guantanamo Bay naval base
in Cuba, will feature high on the agenda of talks because of
allegations by their lawyers and former Guantanamo captives of mistreatment.
Before leaving, Mr Howard, who has closely allied himself with Mr Bush
in the wars on terror and in Iraq, criticised the US for the delay in
bringing charges against Mr Hicks and Mr Habib.

Govt defends proposed electoral roll changes
Canberra.  The Fed Govt has defended its proposed changes to the
Electoral Act, to close the electoral rolls the day an election is
called.  Opponents to the changes are accusing the Govt of trying to
stop young people, angry at increasing HECS fees, from enrolling to
vote.  Special Min of State Eric Abetts says the current law giving
people a wk to enrol once an election is called is a failed 20-y
experiment introduced by Labor.  He says the changes are to stop
370,000 people enrolling in 7 days, putting excessive pressure on the
system.  "Any talk that there is that this is designed to keep young
people off the roll is completely contradicted by the special
provision that allows young people a full 12 m to enrol in
anticipation of their 18th birthday.  "What we are doing is running
active campaigns through the Electoral Commission to get young people
enrolled," he said.  "What we don't want to see is a flood of
enrolments and changes to enrolments in the last 7 days."

Govt announces $25m for child care
Canberra.  Children with special needs are to receive additional
support, with the Fed Govt announcing a $25 mn boost to its child care
support program.  The Min for Children, Larry Anthony, says the extra
money will go towards improved training of child care staff, and
subsidising services in rural, remote and urban fringe areas.  But the
Opp'n's Jacinta Collins says the funding increase is miserly and does
nothing to address the critical shortage of long day care places.
"There is nothing in this budget for long day care child care
services," she said.  "They have re-badged an existing program, topped
it up by a couple of million and you'd be lucky if it's about $12
million.  "It is a long way from the $140-odd mn suggested on the
front page of The SYD Morning Herald.

SA considers sexual abuse inquiry
Adelaide.  The SA Govt has revealed that it is considering launching
an inquiry to investigate claims of sexual abuse against children in
govt care.
For m Liberal leader Rob Kerin has been pushing for a royal commission
to investigate the sexual abuse of children in govt institutions such
as orphanages.
Mr Kerin says the church victims are getting their justice, but others
are not.
"And there's a whole range of other cases that will only come out if
we have an inquiry," he said.
His case is supported by Liberal backbencher Mark Brindal who claimed
in Parliament that children in state care have not just been abused
but many have gone missing.
"Some of those kids are missing, have not been accounted for and I
stand in this place and say 'I don't care who was in govt, where are
they and do they deserve justice'?" he said.
A-G Michael Atkinson has made it clear there will not be a royal
commission, but he is now hinting at other options.
"I am considering an inquiry or options short of a royal commission,"
he said.

Vic to up police anti-corruption powers, funding
Anti-corruption inquiry looks set to be widened.
Melbourne.  The Vic Govt is set to announce a big boost to the powers
and funding of the ombudsman's office, as claims of police corruption continue.
A funding increase of around $10 mn and the ability to conduct
undercover operations and telephone tapping are among the measures
expected to be announced today.
The move would follow the ABC's revelation that a secret police
document outlining the activities of informer Terrence Hodson was
circulating in the underworld before his murder.
As well, a newspaper photograph published today shows what is alleged
to be a detective facing criminal charges and an underworld figure together.
However, Opp'n leader Robert Doyle says announcing extra resources for
the ombudsman's office is simply a case of the govt making policy on
the run.
"They are being dragged kicking and screaming against their will to
having an independent anti-corruption commission," he said.
A report outlining the progress of the Ceja task force into police
corruption is due to be tabled in State Parliament today.

Vic police corruption report tabled in Parliament
Vic police corruption scandal continues.
Melbourne.  The Vic Ombudsman's report on the Ceja Taskforce and drug
related corruption in Vic police has been tabled in State Parliament.
The ombudsman, George Brouwer, says nowhere is the lack of police
professionalism demonstrated more graphically than in the telephone
intercept and listening device tapes of conversations between corrupt
police and their informers.
He states the cynicism displayed by members in some of these
conversations shows a chilling disregard for their responsibilities as
police officers, and for those whose lives are in their hands.
He notes 13 people are facing charges as a result of Ceja Taskforce
investigations; 5 were members of the now disbanded drug squad.
The ombudsman also says his office has all the powers of integrity
commissions seen elsewhere and he intends to use his new powers to
further investigate police corruption.
Vic Police Min Andre Haermeyer is again resisting pressure to hold an
independent inquiry, stating the ombudsman now has all the powers
necessary to oversee the corruption probe.
"We believe that this is the right course, we will stick to our guns
on this because it is in the interests of the barristers and organised
crime figures and the corrupt police to get some sort of singing
dancing royal commission," he said.

Vic top cop warns there's more corruption
Commissioner warns worst to come.
Melbourne.  Vic Police Chief Commissioner, Christine Nixon, says Vics
should brace themselves for more evidence of police corruption.
She says the community will be shocked when the cases against police
officers are heard in court.
"It will get worse before it gets better and that's because we have a
number of trials that are listed over the next 12 m in Vic courts,"
she said.
"As the info around those particular cases becomes public then the
community will see more and more revealed of the kind of problems
we've had."
The Vic Govt is expected to announce a big boost to the powers and
funding of the ombudsman's office shortly.
A funding increase of around $10 mn and the ability to conduct
undercover operations and telephone tapping are among the measures
expected to be announced today.
The move would follow the ABC's revelation that a secret police
document outlining the activities of informer Terrence Hodson was
circulating in the underworld before his murder.
A newspaper photograph was published today showing what is alleged to
be a detective facing criminal charges and an underworld figure together.
The Vic Ombudsman's report on the Ceja Taskforce and drug related
corruption in Vic police has also been tabled in State Parliament.
The ombudsman, George Brouwer, says nowhere is the lack of police
professionalism demonstrated more graphically than in the telephone
intercept and listening device tapes of conversations between corrupt
police and their informers.
He states the cynicism displayed by members in some of these
conversations shows a chilling disregard for their responsibilities as
police officers, and for those whose lives are in their hands.
Vic Police Min Andre Haermeyer is again resisting pressure
to hold an independent inquiry, stating the ombudsman now has all the
powers necessary to oversee the corruption probe.
"We believe that this is the right course, we will stick to our guns
on this because it is in the interests of the barristers and organised
crime figures and the corrupt police to get some sort of singing
dancing royal commission," he said.

Open finding expected in Norfolk Is murder inquest
Norfolk Is.  The coroner will deliver his finding this afternoon at an
inquest into the murder of a young woman on Norfolk Island.  It is
expected the coroner will deliver an open finding into the death.
Janelle Patton was murdered in Mar 2002, and her body left in a
public place on the island.  16 people who have been interviewed by
police have been named at the 4-day inquest.  Most are associated
with Jeanelle Paton during the 2-and-1/2 y she had been living and
working on the island.  Coroner Ron Cahill is expected to deliver an
open finding into the murder because there is not enough evidence for
anyone to be charged.

Murderer to be released from NSW prison
Sydney.  The man convicted of murdering Newcastle schoolgirl Leigh
Leigh in 1989 will be released from prison next wk.  Matthew Webster
appeared before a NSW parole board hearing this morning.  In Nov 1989,
14-yo Leigh Leigh was violently sexually assaulted before being
bludgeoned to death with a lump of concrete at a birthday party at the
N Stockton Surf Club.  Webster, who was 18 at the time, was convicted
of the murder on the basis of his confession and was sentenced to 20 y
jail with a 14-y non-parole period.  That period expired on Feb 15 and
the parole board says since that time Webster has participated in a
number of weekend and day release programs without incident.  At a
hearing this morning the board decided he could be released on Jun 10
on the condition he meets strict conditions, including he not visit or
reside in the Stockton or Newcastle areas without prior approval of
the probation and parole board.

Call to lift renewable energy goal
Canberra (AAP).  AUS should increase renewable energy targets
following Russian moves towards ratifying the Kyoto Protocol on
climate change, the wind energy industry says.
AUS is avoiding percentage-based targets for the Mandatory Renewable
Energy Target, instead aiming to source an extra 9,500 GWh
annually from renewable energy by 2010.  The Aussie govt has also
declined to ratify the Kyoto Protocol.
"Serious pressure is mounting on the Aussie govt to increase its
climate protection measures as it continues to refuse ratifying the
protocol," AusWEA chief executive Libby Anthony said.
"While short-term measures are welcome, we also need to see
longer-term structural changes to the way we generate energy, such as
an increase in the MRET."
The AusWEA questioned the govt's green war chest, as reported last wk,
as a long-term response to climate change.
"The Russian govt's recent decision to ratify the Kyoto Protocol will
see this critical global climate initiative brought into force in the
nr future," Ms Anthony said in a statement.
Ms Anthony said Russia's move gave the Aussie govt a window of
opportunity to raise MRET and ensure long-term greenhouse gas
reductions for this country.

{{
Midday.
Fed A-G Philip Ruddock says he wants to legislate so there would be a
presumption of refusing bail to people charged with terrorism offences.

Foreign Affairs Min Alexander Downer has brushed aside the row over
when the Govt learned about allegations of Iraqi prisoner mistreatment.

Iraq's new interim govt has begun preparing for the handover from
US-led occupation authorities at the end of this m.

Massive explosions have rocked a major US military base outside the N
Iraqi oil city of Kirkuk, shrouding the city in smoke, after what
police said was a rocket strike on an arms store.

NSW Police Min John Watkins says the decision to grant bail to a SYD
man charged with a terrorism offence is inexplicable.

NSW Police Commissioner Ken Moroney says moves have begun to appeal
against the decision to grant bail to a SYD man accused of terrorism offences.

PM John Howard says he will give an appropriate response to a request
that he push for a US Senate inquiry into allegations of abuse at
Guantanamo Bay.

PM John Howard will discuss with the US Pres George W Bush allegations
that 2 Aussies detained at Guantanamo Bay were tortured by US guards.

The Fed Govt has been unable to provide a Senate hearing with details
of an agreement allowing AUS to hand over Iraqi prisoners it captures
to the US.

The US is trying soften allegedly harsh and inflammatory criticism of
the coalition in Iraq that is expected to be contained in a UN human
rights report to be released this wk, US officials said.

The Vic Govt is set to announce a big boost to the powers and funding
of the ombudsman's office, as claims of police corruption continue.

The Vic Ombudsman's report on the Ceja Taskforce and drug related
corruption in Vic police has been tabled in State Parliament.

The number of cases of misconduct by US soldiers against detainees and
civilians in Iraq and Afghanistan now numbers at least 91, and is
likely to be higher, an Army official has said.

The trial in Lebanon of a SYD man facing terrorism charges has been adjourned.

Trade Min Mark Vaile has warned Aussie grain growers they are unlikely
to recoup $mns Iraq owes them.

Vic's appointment of one of AUS's top police corruption investigators
has failed to silence the critics.

Vic Prem Steve Bracks has admitted the role of Tony Fitzgerald QC as
special investigator into allegations of police corruption may be widened.

6.30 pm
A Senate Committee was told today 2 Aussies held by the US have been
abused.  Maj Michael Mori, military lawyer for one of the detainees,
has warned again his client is likely not to get a fair trial.

6 Iraqs have been killed in the latest clashes in Kufa, Iraq.  A dozen
were injured in earlier fighting nr Najaff.  There's also a huge fire
burning nr the airport and a weapons storage facility nr Mosul.  The
body of a civilian guard was found nr the base, burned to death.

Resurgent Taliban have claimed responsibility for the deaths of 5 aid
workers in NW Afghanistan.

The entire air traffic control system in S England went down for
several hrs this afternoon. The system was plagued with problems after
its installation -- that was delayed by more than 2 ys.

7 pm
The Commonwealth has lodged an appeal against Belal Khazaal's bail
conditions.  Friends lodged the $10,000 this morning.  To prevent
anything similar happening elsewhere in AUS, the Howard govt will move
to strengthen bail laws.  The govt alleges Khazaal created a web
journal that outlined methods of assassination, encouraging terrorists
to carry out attacks.  He was also accused of providing another
terror-related suspect with money to help him flee AUS.

PM Howard, in Washington, is to ask his friend Pres Bush to expedite
the prosecution of 2 Aussies held for more than 2 y in Guantanamo Bay
concentration camp. He says he also wants assurances the pair have not
been abused, as claimed by numerous witnesses and the Red Cross.

While Pres Bush has rejected claims the Iraq conflict was similar to
Vietnam, today he likened the War on Terror to WWII.

PNG is still reluctant to give immunity from prosecution to Aussie
police working in the country. PNG Mins say the demand by the AUS govt
would require changes to its constitution. Others say it's setting a
double standard that could run counter to the benefit of using Aussie
police to restore law and order to parts of PNG. "One standard for
locals, another for Australian police", complained one PNG politician.
FM Downer says the demand is not negotiable.

The Norfolk Is Coroner has handed down an open finding into the death
of Janelle Patton.  The finding came after 4 days of deliberation.  It
was widely expected.  16 people have been named as "persons of
interest" in the brutal knifing -- the first murder in more than 150 y
on the island.  The finding means no prosecution will be possible in
the immediate future.

7.30 pm
AUS military chief Gen Peter Cosgrove says that, in retrospect, more
should have been done to investigate POW abuse claims when they were
first raised, last y.  His comments come after revelations that at
least 3 govt depts had been told of concerns over POW abuses in US-run
jails in Iraq.  The Howard govt had denied for wks it had any official
knowledge of the complains.  Cosgrove said while the abuses were "very
serious", at the time the claims were first raised they weren't clear,
and it was believed they were being investigated by US authorities.

The All Ords closed down 8 pts to 3,466.  The AUD is trading at 69.55
US c.  In London, the FTSE is presently down 16 after 2-and-1/2 hrs of trading.
}}

----------------------------------------
Fri, 04 Jun 2004.

1989: The tanks drove into Tiananmen Square, Beijing.
1944: Rome fell to US forces.  One up, and 2 to go.

	HEADLINES:
Oil lower but still spooking Wall Street
OPEC deal wrestles oil prices lower
OPEC agrees to raise oil output ceiling
E Timor open to compromise in oil row
Iraq "aims to increase oil flow"
US Marines plead guilty to abuse
Labor, Greens criticise prisoner abuse probe
Women, children killed in Iraqi city of Kufa
US Marines imprisoned for abusing Iraqi inmate
UN Council haggles over Iraq control of US troops
Residents flee as fighting erupts in Iraq holy city
Pachachi says he may seek Iraq presidency
Key Shiite backs new Iraq team
Iraq's Chalabi denounces outgoing CIA chief Tenet
Iraq pullout would be disaster, Bush tells allies
Iraq demands veto on US military operations
Challenge of new leaders: Win over Iraqi "Braveheart"
Brahimi explains politics behind Iraq govt posts
Abu Hamza faces US extradition hearing
Abuse probe a whitewash: Greens
Aid agency stops after attack
Anti-UN demos in DR Congo, 2 dead in capital
Appeal scheduled for terror suspect granted bail
Archbishop denies approving UK royal wedding
Aussie pullout would be disastrous: Bush
Bracks defends overseas trip despite corruption probe
Building approvals unexpectedly rise
Bush arrives in Italy
CASA to step up airline inspections
CIA chief Tenet quits
CIA head "not pushed" by Bush
Canada Anglicans affirm same-sex couples
Canada to send another $US4.4 mn to Sudan
Customs seize huge drug shipment
George Tenet resigns as director of CIA
Govt moves to boost rail freight
Hicks's father sceptical about investigation
Israeli Army exits Gaza camp
Israeli whistle blower asks court to lift travel ban
Latham brushes off Bush attack
Lawyers unimpressed by Hicks probe
Moore releases 9/11 trailer
More Britons than ever living with heart disease
NSW defends speedy anti-terror laws
New virus "targeting bank accounts, credit cards"
North, S Korea agree to ease tensions
PM "encouraged" by US response to FTA
Qld ATSIC council applaud Senate inquiry
Reserve Bank predicts housing "cooling phase"
Row emerges over authority to tap phones
Ruddock questions Vic phone tapping bill
Rumsfeld "reviews" Guantanamo interrogations
SA Speaker "under fire" from Govt
Sadr loyalists to start Najaff "withdrawal"
Saudi terrorism fears overstated: analyst
Sharon expected to sack 2 foes to pass Gaza plan
Shock over CIA director's exit
Tenet tenacious to the end
Troops end E Timor mission
Venezuela's Chavez faces recall vote


OPEC agrees to raise oil output ceiling
Beirut.  OPEC agreed Thu to raise its oil production ceiling by 2 mn
bpd next m and an additional 500,000 bpd in Aug if
necessary in a bid to rein in uncomfortably high prices for crude. Oil
prices fell for the 2nd straight day from peaks reached earlier this wk.
But industry analysts said the hike was unlikely to lead to cheaper
gasoline in the US, due to refinery constraints and other production
bottlenecks there.
Saudi Arabia, the group's most influential member, had proposed an
increase of 2.5 mn bbl, or 11%, to be made all at once.
The Organization of Petroleum Exporting Countries agreed on an unusual
2-stage increase, however, as a compromise because some other
producers such as Iran preferred a more gradual rise. OPEC representatives
approved the decision during 4 hr of talks at a Beirut hotel.
"We have decided to lift the ceiling to 25.5 [mn bpd] effective Jul 1
and 26.0 (mn bpd) effective Aug 1, and we will meet to review future
action on Jul 21 in Vienna," Saudi Oil Min Ali Naimi told reporters.
US Energy Sec Spencer Abraham described OPEC's decision as
"welcome news." US State Dept rep Adam Ereli said it would result in
"much needed oil supplies."
Claude Mandil, head of the Paris-based Internat'l Energy Agency, said
the decision "means that the producing countries recognise that
production matters, production is important in order to calm the markets.
"At the same time, we think the most important [thing] is not quotas,
it's not targets," he added. "What is really important is real
extr/bbls."
Prices have escalated in recent wk despite OPEC's efforts to meet
market requirements, the group said in a communique. Geopolitical
tensions, stronger than expected demand in China and the US,
and stricter US specifications for gasoline have all
contributed to higher prices, it said.
"Combined, these factors have led to unwarranted fear of a possible
future shortage of crude oil, which has, in turn, resulted in
increased speculation in the futures markets with substantial upward
pressure on crude oil prices," OPEC said.
Although OPEC lifted its production ceiling, it refrained from explicitly
urging its members to produce actual bbl of additional oil. In his
opening address at the meeting, OPEC Pres Purnomo Yusgiantoro of
Indonesia called on members to do "as much as they can to help stabilise
the oil market."
The group's members are already exceeding their individual quotas by
at least 2.3 mn bpd and Purnomo suggested that the total
increase of 2.5 mn bbl in the ceiling would essentially legitimise
the current overproduction.
Yet Nigeria's representative said the higher ceiling would by itself
help reduce prices.
"To act as responsible members of the world community, we have to make
this strong signal to the market that we are ready to produce to cool
the system," Edmund Maduabebe Daukoru told reporters.
At the same time, OPEC is wary of pumping too much oil and creating a
supply glut. Iranian Oil Min Bijan Namdar Zangeneh, explaining why the
group decided to raise the ceiling in 2 steps, said: "We believe there
is not any shortage in the market, and we should be very careful about
the coming months."
OPEC produces more than a 3rd of the world's crude. Earlier signals
that the group would raise both its ceiling and its actual output had
the intended effect of trimming record prices.
US crude for Jul delivery had finished at $42.33/bbl on Tue -- the
highest settlement price in the contract's 21-y history on the NY
Mercantile Exchange -- following a terrorist attack in the Saudi oil
hub of Khobar that killed 22 people, mostly foreign oil workers. The
attack -- blamed on the al-Qaeda group -- stunned markets, which were
already nervous about stretched oil inventories and Middle E tensions.
But prices fell about 6% on Wed as Saudi Arabia said it had backing
for its proposed production increase and they slipped again Thu.
Contracts of US light crude for Jul delivery fell 68 cents to
settle at $39.28/bbl in NY. In London, Jul contracts of Brent crude
dropped 46 cents to settle at $36.40/bbl.
Analysts predicted that the increase in OPEC's ceiling would have only
a modest effect on crude prices in coming wks.
"Who cares about the quotas," said Adam Sieminski of Deutsche Bank in
London. "The important thing is what the Saudis are doing with their
volumes and what others are doing with production as well."
Under pressure from the US and other major importers, Saudi Arabia has
already boosted its actual output by 600,000 bpd, independently
of OPEC. Saudi Arabia has the world's largest proven oil reserves and
is the only OPEC member with capacity to pump significant amounts of
fresh oil.
The United Arab Emirates announced Wed that it would raise production
by more than 400,000 bpd, while Kuwait said it would
increase output by 100,000 bbl.
Nor would motorists be paying much less for gasoline anytime soon,
analysts said, especially with demand rising during the peak summer
driving season in the N hemisphere.
"Gasoline prices are still going to stay high," said Jamal Qureshi, of
the Washington-based consultancy PFC Energy.
OPEC aims officially to keep oil prices within a range of $22 to $28
for its benchmark blend of crudes. However, prices have exceeded this
upper limit since Dec.
Purnomo told a news conference that OPEC had no plans to change its
price target but said the group was reviewing its preferred price
range in view of inflation and a weakening of the USD. Oil is bought
and sold in USD, and several OPEC members have complained that
they are losing revenue by not increasing their price target.

OPEC deal wrestles oil prices lower
Beirut (Reuters).  OPEC on Thu agreed to raise output by 2 mn bpd
from Jul, at the bottom end of expectations, but made the
impact it was hoping for as oil prices sank. In a 2-stage pact the
Organization of the Petroleum Exporting Countries promised to add a
further 500,000 bpd from Aug 1.
"It will send a very, very strong signal to the market," said Ali
al-Naimi, oil minister for OPEC's biggest producer Saudi Arabia.
Naimi said the extra Aug increment was not negotiable on the downside
and could even be altered higher.
"It's a good agreement, we will be able to test the impact of the
policy on the oil market before we meet again in Jul," said Qatari
Oil Min Abdullah al-Attiyah. OPEC meets again on Jul 21.
OPEC has been under enormous pressure from industrialised powers
worried about the impact of inflated energy costs on economic growth.
For their own part producers do not want prices at heights that put
fuel demand at risk.
At 1st sight Thu's deal lifting group limits by 8%, to 25.5 mn bpd
from Jul 1, was a disappointment for those expecting OPEC to
deliver more immediately.
But oil prices fell on the view that OPEC's core Gulf producers are
serious about cheaper oil. US crude closed down 81 cents at $39.15/bbl
and London Brent finished off 51 cents at $36.35.
"This is the 1st time in 2 y that OPEC has set quotas at a level that
reflects underlining forward demand for their oil," said Marshall Hall
of London's Energy Market Consultants.
"We think prices could come off $5/bbl in 30 days because the Saudis,
the Kuwaitis and the Emiratis will produce enough to ensure prices go down."
* US APPLAUSE
US oil has been around the $40 mark for the past 3 wk, fuelled by
demand growth and worries about supply security in the Middle East.
The US applauded the agreement, saying sufficient supplies were
critical to sustaining economic growth.
"This welcome action demonstrates that producers are taking concrete
and immediate steps to address the global oil supply needs," said
Whitehouse rep Claire Buchan.
Delegates said the pact was a compromise between Saudi Arabia and
countries like Iran and Venezuela which feared a Saudi proposal for an
immediate 2.5 mn increment could trigger a big price collapse.
But the official details will make little difference to actual supplies
from the cartel that controls more than half the world's oil exports.
That's because group output already is at official new quota limits.
"For supply into the market, it's irrelevant," said Roger Diwan of
Washington's PFC Energy consultancy.
Regardless of official allocations, Saudi Arabia and the United Arab
Emirates confirmed to reporters they would deliver about a mn bpd
of real extra oil in Jun.
The 2 countries are OPEC's only members with much spare capacity.
Saudi's Naimi reiterated that Riyadh was pumping 9.1 mn bpd,
an addition of about 700,000 bpd. The UAE is adding 400,000 bpd.

Iraq "aims to increase oil flow"
Baghdad (BBC).  Iraq is struggling to reopen its refineries Iraq's
newly appointed oil minister, Thamir Ghadbhan, has said his country
aims to export 2 mn bbl of crude oil a day soon.
Mr Ghadbhan said the interim Iraqi govt has earmarked $800m to spend
on rebuilding oil infrastructure.
It also plans to expand the existing 14,000-strong security force
protecting oil installations, he said in an interview with Reuters
news agency.
Iraq has the 2nd biggest proven reserves of oil, at 12.5bn bbl.
* Big task
But y of neglect and under-investment under UN sanctions imposed during
ex-president Saddam Hussein's rule have crippled Iraq's output.
Since he was deposed by US-led troops, Iraq's new rulers have
struggled to regain pre-war output levels of 3 mn bpd as
militants have waged a campaign of attacks on pipelines.
"We have a force of 14,000 people and we are expanding it. If things
go well we want to sustain an export figure of 2 mn bpd in
the coming months," said Mr Ghadbhan, who has spent 30 y working
in Iraq's oil industry.
A further 800,000 bpd of oil are needed for Iraq's domestic
needs, as demand is rising rapidly, he said.
Mr Ghadbhan is part of the interim govt which will take over from the
US-led coalition on 30 Jun, paving the way for elections in Jan 2005.
* Top challenge
"The number one challenge is security for the whole country. Number
2 is that we have to avoid facing the crisis of the availability of
products locally," said Mr Ghadbhan.
Local demand for petrol is soaring because of a "huge influx" of
imported cars, so the oil ministry is "taking measures to get our
refineries working in proper conditions," said Mr Ghadbhan.
Difficulties restoring the flow of oil from Iraq have disappointed
Western hopes that its reserves help bring down global prices.
Instead, instability there has become a factor in pushing oil prices
to record highs.
Although Iraq is a member of Opec, its oil exports are not counted as
part of Opec output.
* Exports
During the y of sanctions, Iraq was only allowed to sell oil abroad as
part of the UN's oil-for-food aid programme, suspended in Nov 2003.
At present, any money earned from oil sales is paid into an account at
the Fed Reserve Bank of NY controlled by the US.
Iraq is expected to take control of the funds after the 30 Jun
handover. The new govt is lobbying the UN to abandon a 5% levy on oil
revenue to cover war reparations imposed alongside sanctions.
Iraq has exported $9bn-worth of oil since the US-led invasion last y.

E Timor open to compromise in oil row
Dili (AFP).  East Timor says it is willing to reach a compromise with
AUS to solve a long-running territorial dispute over seabed oil and
natural gas deposits between the 2 countries.
"Our Govt is totally available to find creative ways to reach a solution,"
E Timor's Foreign Min Jose Ramos-Horta told a conference in Lisbon.
"And when we speak of creative forms, obviously we mean reaching some
form of a compromise where neither of the 2 parts insists on having
their main demands met."
AUS wants to keep the maritime border agreed with Jakarta when East
Timor was an Indonesian province, which follows the country's
continental shelf.
That border leaves about 2/3 of the oil and gas deposits in the Timor
Sea in AUS's hands.
But Dili argues that under current internat'l maritime law, the border
should be in the middle of the 600 km of sea between the countries,
which would give it 90% of the underlying oil reserves.
East Timor, which recently celebrated its 2nd anniversary of
independence, says Jakarta only agreed to that deal in exchange for
CBR's recognition of its illegal annexation of E Timor.
The boundary has been the centre of a protracted dispute between
impoverished E Timor and its giant neighbour, with energy deposits
worth an estimated $A30.4 bn in royalties at stake.
A report issued last m by internat'l aid group Oxfam said AUS's
refusal to cede more royalties from the seabed resources to E Timor
risked turning the poverty stricken new nation into a failed state.
Just 2 m before E Timor became independent from Indonesia in May 2002,
AUS announced it would no longer accept the jurisdiction of the
Internat'l Court of Justice on maritime borders.
The move left Dili with no independent forum to judge their claim that
the border should be drawn in the middle of the sea separating the 2
countries and was described by E Timor PM Mari Alkatiri at the time as
"a hostile act".

Oil lower but still spooking Wall Street
NY/Sydney.  There has been a further easing in the price of crude oil,
with the cartel of oil-producing nations, OPEC, deciding to lift
production quotas to help bring prices back down.
It was decided at a meeting in Beirut overnight to raise output limits
by 2.5 mn bpd in 2 stages, from Jul 1 and Aug 1.
A statement says the move is to "ensure adequate supply and give a
clear signal of OPEC's commitment to market stability".
It is not the OPEC announcement that has been credited with lowering
prices in the latest trading session on the floor of the NY Mercantile
Exchange but new figures have been released in the US showing
increased stockpiles of crude oil and gasoline.
US inventories of gasoline are above 200 mn bbl, easing concerns
about shortages going in the American summer driving season.
West Texas crude is down to $US39.29/bbl.
However, the further easing in energy prices has failed to prevent a
decline in share prices on Wall Street.
Worries about the earnings outlook for Intel Corporation have
unsettled investors and Citigroup, Procter & Gamble and Alcoa have
been the heavyweights under pressure on the NYSE.
The DJIA has closed 67 points lower at 10,196.
There was a sharper decline on the high tech Nasdaq Exchange, with the
Nasdaq composite index has falling 29 points or 1.4% to 1,960.
There was a modest advance on the Brit share market, with London's
FT-100 index up 13 points at 4,435.
Yesterday in AUS, the market hit another intra-day record high before
retreating to close lower.
The All Ords ended 7.5 points lower at 3,466.
The AUD has come under further selling pressure.
At around 7 am it was at 68.89 US cents, down more than half a cent on
yesterday's local close.
The gold price was at $US388.40/oz.

PM "encouraged" by US response to FTA
Washington (ABC, Leigh Sales).  PM John Howard says he is encouraged
about the prospects of a US-AUS free trade agreement
surviving the US Congress.  Mr Howard has spent part of today meeting
key Congressional members about the deal.  He says the mood at Capital
Hill is positive.  "I've been very encouraged from the responses I've
had this afternoon from both sides, in Congress and the Senate."
Various members of Congress spoke at a function celebrating the FTA
today, and both key Republican and Democrat leaders say they are
committed to seeing the deal introduced to the House and Senate within
the next m or so.

Anti-UN demos in DR Congo, 2 dead in capital
Kinshasa (AFP).  Protests against UN peacekeepers broke
out in cities across the Democratic Republic of Congo (DRC) on Thu,
leaving 2 dead in the capital a day after renegade troops captured the
E town of Bukavu.
Even Pres Joseph Kabila vented his spleen against the UN mission,
known as MONUC, telling France's Le Monde newspaper that "despite its
arms and its mandate, the UN mission did not avert the fall of Bukavu."
MONUC had 100s of troops in Bukavu, capital of Sud-Kivu province, when
it fell to army officers drawn from a former rebel group.
"There are demos against MONUC in Kinshasa, Kisangani, Lubumbashi and
Kindu," Sebastien Lapierre, MONUC's rep in Bukavu told AFP.
There were unconfirmed reports of similar protests in Goma and
Butembo, he said, while residents of Bukavu also gathered to express
their anger against the UN, amid widespread looting.
A MONUC rep in Kinshasa said 2 people were killed there on Thu during
a demo outside a warehouse used by the peacekeepers.
Witnesses had earlier told AFP that one person had been shot dead and
3 wounded as anti-UN demonstrators were joined by opportunistic
passers-by as they looted the warehouse in an eastern neighbourhood of
Kinshasa.
Thousands of people had gathered earlier outside the UN mission's HQ
in Kinshasa, and others were marching from all corners of the capital
to join them, to demand that MONUC leave DRC.
Police, who were out in force nr MONUC HQ in Kinshasa, reportedly
fired into the air to try to disperse the angry crowd, said by an AFP
correspondent to number in the tens of 1000s.
The UN force's commanding officer, Col Clive Mantell, told AFP that
MONUC's office in the S city of Lubumbashi "was attacked and had to be
abandoned."
"In Kindu [in the east] our office was attacked and vehicles were
damaged, and in Kinshasa a violent crowd outside MONUC's HQ had to be
repulsed by police," he said.
Another UN source said 4 vehicles were damaged in Kindu, while in
Bukavu stones were thrown and a shot fired at MONUC cars.
Residents of Bunia, in the NE, did not rise up, earning
congratulations from MONUC's large detachment there for their "maturity."
In New York on Wed night, UN Sec-Gen Kofi Annan's rep Fred Eckhard
said of MONUC: "The mandate was based on a peace agreement... When war
breaks out, the role of peacekeepers ends."
MONUC rep in Kinshasa Hamadoun Toure took a similar line on Wed.
"We try to prevent casualties, this is why we favour contact and
dialogue rather than immediately using weapons," he told AFP by phone.
"What's important is to protect the population and not to add to the
confusion."

Iraq pullout would be disaster, Bush tells allies
Washington (PA).  Pres George W Bush said today it would be a disaster
if America's partners pulled troops out of Iraq.
He was speaking as he left Washington for Italy on the 1st leg of a
visit to Europe during which he will face tough talks with sceptical leaders.
Mr Bush's 3-day visit to Rome to mark the 60th anniversary of the
Allied liberation of the Italian capital comes as his Admin lobbies
internat'l support for a new UN resolution on the transfer
of power to the Iraqi interim govt.
While in Europe, the Pres will encounter some of his fiercest critics
on Iraq -- the leaders of France and Germany -- as well as some of his
most stalwart supporters, most notably the PMs of Italy and Brit.
Rome and the Vatican were under tight security, with 1000s of police
on alert before Mr Bush's arrival late tonight.
Various demos, including one tomorrow expected to draw 1000s of
people, were planned to protest at the war in Iraq.
Prem Silvio Berlusconi said today he was "worried about the possible
violence" during anti-Bush protests.
"I am concerned by the conviction among some youths that burning a
flag, smashing a window, or worse, gives more force to their
ideas. Exactly the opposite is true," he said in a solemn appeal
broadcast live on Italian TV.
"The news we have does not leave us calm," he added, a reference to
claims by some anti-war activists that they might try to disrupt the visit.
Before leaving the US capital for Rome, Mr Bush met with one of his
closest allies, Aussie PM John Howard, at the Whitehouse.
Mr Howard gave the Pres a renewed vote of confidence, gently warning
European allies that "it is the worst time imaginable" for them to
waver on Iraq and pledging to keep his country's 850 troops in Iraq.
"We will maintain a presence in Iraq until the job... has been
completed," Mr Howard said.
"This is not a time -- it is the worst time imaginable -- for allies
to be showing any weakness in relation to the pursuit of our goals in Iraq."
When asked whether AUS's commitment to Iraq would change if a
different PM were to be elected later this y, Mr Bush replied: "It
would be a disastrous decision for the leader of a great country like
AUS to say 'We are pulling out'."
Mr Howard, who has served 3 terms as premier, is expected to call an
election before one is held in the US in Nov. His likely opponent,
Labour Party leader Mark Latham, has accused him of leading AUS into a
fruitless conflict by sending troops to Iraq.
Pulling out of Iraq, Mr Bush said, sends the wrong signals to the
Iraqi people and to terror operatives looking for a toehold in that country.
"It would dispirit those who love freedom in Iraq. It would embolden
the enemy who believe that they can shake our will...  They think that
the W world, and the free world, is weak; that when times get tough we
will shirk our duty to those who long for freedom and we'll leave."
Mr Bush has been sharply questioned by world leaders about whether the
US intends to allow Iraq to take complete control of its affairs. The
US plans to keep 135,000 soldiers in Iraq even after the Jun 30
handover of power by the US-led Coalition Provisional Authority,
raising questions about the new Iraqi govt's authority.
Mr Bush says the interim govt will have full authority.
In Rome, Bush will mark the 60th anniversary of the liberation of Rome
tomorrow and also have an audience with the Pope, who is a prominent
critic of the Iraq war, and a meeting with Mr Berlusconi.
From the Italian capital, Mr Bush will go to Paris to try to narrow
differences with French Pres Jacques Chirac, who led the opp'n to the
Iraq war but seems interested in improving relations.
On Sun, Mr Bush will stand at the American cemetery in Normandy on a
cliff overlooking Omaha Beach and the English Channel. The cemetery
contains the graves of 9,386 American military dead, most of whom gave
their lives during the D-Day landings and ensuing battles.
Mr Bush will join a gathering of world leaders that will for the 1st
time include a German Chancellor to mark the events of Jun 6, 1944.
Just as events in Europe determined the outcome of the Cold War,
events in the Middle E will determine the fate of the fight against
terrorism, Mr Bush said.
He said that, beyond jailing terrorists, free nations must nurture
openness in oppressed societies to head-off the resentment and anger
that breeds violence.
"If that region is abandoned to dictators and terrorists it will be a
constant source of violence and alarm, exporting killers of increasing
destructive power to attack America and other free nations," Mr Bush said.
"If that region grows in democracy and prosperity and hope the
terrorist movement will lose its sponsors, lose its recruits and lose
the festering grievances that keep terrorists in business."
About 10,000 Italian police will be deployed during Pres Bush's
visit. Most of the centre of Rome will be closed to traffic.
Villa Taverna, the American ambassador's residence in a posh
neighbourhood where Mr Bush is expected to stay, was also under tight
security today, and nearby streets were cordoned off, news reports said.
The airspace over Rome will be closed to private aircraft during the
visit, authorities said, while commercial flights at the capital's 2
main airports will be briefly suspended during the Pres's arrival and
Sat departure.

Aussie pullout would be disastrous: Bush
Pres Bush says an Aussie withdrawal from Iraq would be disastrous.
Washington (AFP/CNN).  US Pres George W Bush says an Aussie troop
withdrawal from Iraq by Christmas would be "disastrous".
Opp'n leader Mark Latham has pledged to withdraw Aussie troops from
Iraq by Christmas if the Labor Party wins the fed election, which is
due later this y.
However, when asked his opinion of Labor's plan during a joint press
conference with PM John Howard in Washington this morning, Mr Bush
answered: "That would be disastrous."
"It would be a disastrous decision for the leader of a great country
like AUS to say that 'we're pulling out,'" Mr Bush said.
"It would dispirit those who love freedom in Iraq. It would say that
the Aussie Govt doesn't see the hope of a free and democratic society
leading to a peaceful world.
"It would embolden the enemy, who believe that they can shake our will.
"They think that the W world, the free world, is weak, that when times
get tough we will shirk our duty to those who long for freedom and
we'll leave."
PM John Howard renewed his commitment to keeping Aussie troops
in Iraq, after talks with Mr Bush.
"We will maintain a presence in Iraq until the job assigned to the
individual force elements of the ADF have been completed," he said.
"This is not a time, it is the worse time imaginable for allies to be
showing any weakness in relation to the pursuit of our goals in Iraq."
Earlier in the day, Mr Bush and Mr Howard met for breakfast at the
Whitehouse before holding formal talks.
Mr Bush, who praised Mr Howard as a good friend and advisor, said they
discussed the 2 Aussie prisoners held at Guatanamo Bay in Cuba, and
the economy.
* Prisoner abuse
Mr Bush said the US military was fully investigating allegations the
2 Aussie terror suspects in Guantanamo Bay had been abused.
"The military is fully investigating any allegations as to whether or
not they've been mistreated," Mr Bush said.
Mr Bush also said that the cases against Aussies David Hicks and
Mamdouh Habib were moving forward.
"It is my understanding that Hicks, the Hicks case, will be referred
to the military shortly, and that the other case is proceeding as
well," Mr Bush said.
Mr Howard said: "I welcome the assurances the Pres has given me
regarding the proper treatment of the 2 Aussie detainees in Guantanamo Bay."
According to Aussie officials, an investigation was launched by US
authorities this wk after former Guantanamo inmates said the 2
Aussies were tortured.
Hicks was allegedly tied hand-and-foot before being beaten and Habib
allegedly dragged around by a chain on his foot.
Aussie Foreign Affairs Dept representative Ian Kemish said the
investigation was launched at CBR's request and was expected to be
completed by the end of the m.
Before leaving for the visit, Mr Howard said he was "not impressed"
with the delays in bringing the Aussie pair to justice. They have been
in custody without charge for more than 2 y.
However, Mr Howard has previously expressed doubts at claims that the
Aussies were abused at Guantanamo, questioning why the allegations
only surfaced after the Abu Ghraib prison scandal and saying he took
them "with a grain of salt".
But Mr Kemish revealed for the 1st time on Thu that the pair had
complained about their treatment to Aussie officials last y.
He said Mr Hicks claimed to have been beaten after his capture in
Afghanistan in 2001, when he was in the custody of N Alliance forces,
while Mr Habib had spoken of "torture" but refused to elaborate beyond
complaints about being mocked and given flu and tuberculosis jabs.

Latham brushes off Bush attack
Canberra (ABC/AFP/Reuters).  The Fed Opp'n is standing by its promise
to withdraw AUS's troops from Iraq by Christmas if elected, even
though US Pres George W Bush says that would be "disastrous".
In a joint news conference with PM John Howard, Mr Bush has attacked
the Labor plan saying it would crush the spirits of Iraqis and
embolden the enemy.
In a statement, Labor Leader Mark Latham has restated that AUS should
not have sent troops to Iraq.
Mr Latham says the Opp'n supports AUS's alliance with the US, but he says
it is not a rubber stamp and he will not be swayed by Pres Bush's comments.
Fed Labor MP Nicola Roxon says Labor's stance is unchanged when it
comes to pulling Aussie troops out of Iraq.
The Shadow A-G has denied the party is at risk of ostracising itself
from the US-Aussie alliance.
"We've made our position very clear and I think the Aussie public
understand that, whatever it is that Pres Bush would like to say to
John Howard," she said.
Mr Bush's support for the Howard govt's Iraq policy, and rejection of
Mr Latham's, comes ahead of a fed election later this y.
"It is the worst time imaginable for allies to be showing any weakness
in relation to the pursuit of our goals in Iraq," Mr Howard said as he
stood shoulder-to-shoulder with the president in the Whitehouse Rose Garden.
Greens Leader Bob Brown has accused Pres Bush of meddling in AUS's
domestic politics.
"He should pull his head in. We are an independent country, we have
right as a people through our politicians to make our own decisions,"
he said.
Mr Howard has defended the Pres's right to speak out.
"Obviously he feels very strongly and I understand that," he said.
In return for Mr Howard's show of support, Mr Bush promised his guest
a "full accounting" of the Iraq prison abuse scandal and a probe into
any mistreatment of 2 Aussies held as suspected terrorists at
Guantanamo Bay, Cuba.
In response to a journalist's question, Mr Bush sharply assailed Mr
Latham's controversial pledge to withdraw Aussie troops from Iraq by
Christmas if his Labor Party wins elections due for later this y.
"That would be disastrous. It would be a disastrous decision for the
leader of a great country like AUS to say that 'we're pulling out',"
Mr Bush said.
"It would dispirit those who love freedom in Iraq. It would say that
the Aussie govt doesn't see the hope of a free and democratic society
leading to a peaceful world," said Mr Bush.
Mr Bush's endorsement of AUS's involvement came before both leader set
of to meet allies in Europe and the D-day commemorations.
The US president also faces an election before the end of the y.
For Mr Howard, what should have a been a trip buoyed by a positive
swing in opinion polls was overshadowed by his angry admission that
senior military officers knew about the abuse of Iraqi prisoners by US
troops m earlier than previously acknowledged.
Mr Howard has repeatedly said his govt only learned of the alleged
abuse earlier this y but a Senate committee was told Mon that an
Aussie army legal officer saw a Red Cross report on the issue in Oct
and had subsequently visited Abu Ghraib prison.
The PM denied charges he consciously misled the public over the matter
and said he was committed to AUS's role in Iraq.

Shock over CIA director's exit
Washington (AFP).  The resignation of CIA director George Tenet
stunned Washington and opened political recriminations over who should
take the blame for US intel failures.
Democratic presidential contender John Kerry said US Pres George W
Bush's Admin should take responsibility for controversies over Iraq
and the Sep 11 attacks and reform the US intel services.
Republicans blamed the previous Democratic Admin under former
president Bill Clinton for not giving intel gathering a sufficiently
high priority.
Kerry, who is campaigning for the Nov 2 presidential election against
Bush, praised Tenet's work but said: "There is no question, however,
that there have been significant intel failures and the Admin has to
accept responsibility for those failures."
Kerry had already called for Tenet to stand down because of what he
called "a lack of accountability" following criticism of the intel
used to justify last y's Iraq invasion and failures to foresee the Sep
11, 2001 attacks.
Sen Hillary Clinton, wife of the former president, said she had been
"surprised" by the resignation, like much of Washington.
She hinted at a link to problems with Ahmed Chalabi, the Iraqi
politician from whom the Bush Admin has been seeking to distance itself.
"I was struck by the timing, since the whole controversy around
Chalabi is heating up and Chalabi blames the CIA for his problems and
there are a lot of pro-Chalabi supporters still at the highest levels
of the Admin," she said.
The Republican chairman of the House Intel Committee, Porter Goss,
said he felt Tenet had done an "excellent" job -- but the time might
be opportune to replace him.
"I think it's a good plateau. I think we're at a moment now where this
does make some sense," said Goss, who nevertheless praised reforms put
in place by Tenet.
"He rebuilt morale, he rebuilt capability which we had let slip very
badly. He reestablished contact between the intel community and the
president of the US, which was very necessary."
Another top Republican, John Warner, praised Tenet for "giving our
nation's leaders the best intel he possibly could in challenging
times, through 2 wars and many complex situations."
"There is no doubt that we will miss Director Tenet," said Warner, who
is the chairman of the Senate Armed Services Committee and who sits on
the Intel Committee.
"But I agree with him that there are times when each of us in public
service needs to ... look to future challenges and opportunities," he said.
Snr Republican Sen Trent Lott called for the Admin to use the
resignation to change the intel services.

Iraq's Chalabi denounces outgoing CIA chief Tenet
Najaff (Reuters).  Iraqi politician Ahmad Chalabi launched a bitter
attack on George Tenet Thu, saying the outgoing CIA chief was to blame
for false info on Saddam Hussein's alleged arsenal of banned weapons.
Chalabi, who enjoyed the support of Pentagon officials for y but has
long been regarded with suspicion by the CIA and State Dept, has been
accused by some US officials of passing on false info on WMD to push
the US into invading Iraq.
Officials in Washington have also said Chalabi is alleged to have told
Iran that the US had broken secret communication codes used by
Tehran's spy service.
But speaking in the Iraqi holy city of Najaff after hearing that Tenet
was resigning for "personal reasons," Chalabi denied the allegations
and placed the blame on the CIA for misleading Pres Bush.
"The resignation of George Tenet is an internal matter for Pres Bush
and his govt," Chalabi told reporters.
"However, the effects of George Tenet's policy in Iraq...have not been
helpful. He continued to make coups against Saddam in the face of all
possible evidence that this would be unsuccessful. His policies caused
the deaths of 100s of Iraqis in these futile efforts," he said.
"He provided erroneous info about WMD to Pres Bush which caused his
govt massive embarrassment in the UN and his own country."
Chalabi said accusations that he had supplied sensitive intel to Iran
were unfounded.
"Tenet was behind the charges against me, that claimed that I gave
intel info to Iran. I denied these charges and deny them again, and I
am sorry that he will not have the chance to appear before Congress
now to decide whether this info he provided is correct or not," he said.
"I challenge him to bring the evidence."
[Pretty funny, Chalabi demanding "evidence"].
Last m the Pentagon cut off the $340,000 a m stipend it paid to
Chalabi's Iraqi Nat'l Congress, citing doubts about the intel the
party provided ahead of the war.
Chalabi, a secular Shi'ite Muslim businessman, was once touted by US
officials as a possible Iraqi leader once Saddam was toppled. But he
was left out of a new Iraqi govt announced this wk by the US-led Admin
in Iraq.

George Tenet resigns as director of CIA
Washington (AP).  CIA Director George Tenet, battered by Sep 11
fallout and criticism of Iraq intel mistakes, said Thu he would soon
resign in a surprise announcement that threw open a key position at a
critical time in the war against terrorism.
Tenet, a Democratic appointee whose close relationship to Pres Bush
has helped him survive the intel failures, said he was leaving for
personal reasons. But some in Congress questioned whether he had been
pushed out.
Tenet may be coming under intense criticism soon as various intel
investigations conclude, including a Senate Intel Committee report on
the Iraq weapons mistakes. "It's a very stinging report of failure
inside the CIA," Sen Carl Levin, D-Mich, a committee member, said recently.
Bush said Tenet's deputy, John McLaughlin, would temporarily lead
America's spy agency during a period in which Iraq remains unstable
and US officials worry terrorists might strike in hopes of influencing
the Nov elections.
In a speech to CIA employees, an emotional Tenet said, "It was a
personal decision and had only one basis in fact: the well-being of my
wonderful family, nothing more and nothing less."
Tenet, 51, spent an hr with Bush at the Whitehouse Wed night,
informing him of his decision to leave his post as head of the CIA and
director of the 14 other agencies that comprise the intel community.
In a hurriedly arranged announcement Thu before leaving on a trip to
Europe, Bush said, "I told him I'm sorry he's leaving. He's done a
superb job on behalf of the American people."
A Whitehouse official said the president told his staff he did not
want anyone speculating that Tenet was leaving for anything other than
personal reasons. "If [Tenet] wants to expand on that further, then we
will leave it to him to do so," Bush rep Scott McClellan later said.
Tenet, a gregarious man described by some as a political animal, is
the second-longest serving Central Intel director and just the 2nd to
continue to serve when a new Admin came in.
He briefed Bush at the Whitehouse almost daily.
Rep Ray LaHood, R-Ill, who befriended Tenet while serving on the
House Intel Committee, said he talked to Tenet Thu afternoon and Tenet
told him the president asked him to stay.
It seemed unlikely that Bush would send a nomination to the Senate
before the fall -- for what could be a bitter confirmation fight given
controversies over recent intel failures -- rather than wait until
after the election, should he win.
Among names mentioned as a possible successor are House Intel Chairman
Porter Goss, R-Fla, Deputy Sec of State Richard Armitage, former
Sen Bob Kerrey, D-Neb, and former NY Mayor Rudy Giuliani, whose rep
discounted the speculation.
Sen Dianne Feinstein, D-Calif, remarked on Tenet's timing -- with the
nation on alert for an attack and with the presidential election approaching.
"I can't remember any resignation that has struck me as more startling
than this one," she said. "I suspect there is going to be more of a
story to tell than just personal reasons."
Lawmakers including Sen Bill Nelson, D-Fla, were pushing for Goss, a
former CIA officer who questioned Thu morning whether the intel
community is too susceptible to misinfo and deception.
McLaughlin, who is nicknamed "Merlin" and is considered close to
Tenet, will take over the agency when Tenet steps down in mid-Jul, on
the 7-y anniversary of his swearing in.
The head of the agency's clandestine service, James Pavitt, will also
announce his retirement Fri -- a decision the 31-y CIA veteran made
several wk ago, before he knew of Tenet's decision, a CIA official
said, speaking on condition of anonymity. He is expected to be
replaced by Stephen Kappes, a 23-y veteran.
On Tenet's watch, the CIA helped capture key al-Qaeda leaders
including Khalid Shaikh Mohammed and Abu Zubaydah, as well as fallen
Iraqi Pres Saddam Hussein. He also over-saw a significant increase in
the number of covert officers in training and came forward with an
aggressive plan to go after al-Qaeda in Afghanistan after the Sep 11,
2001, attacks, winning favour with Bush.
Def Sec Donald H Rumsfeld, travelling in Asia, expressed regret over
Tenet's resignation, saying "he has helped save lives on the battlefield."
But Tenet and his agency were strongly criticised for failing to
predict and prevent the Sep 11 attacks. And al-Qaeda leader Osama bin
Laden remains at large.
In May, a panel investigating the attacks criticised the CIA for
failing to fully appreciate the threat posed by al-Qaeda before the
terrorist hijackings. Tenet said the intel-gathering flaws would take
5 y to correct.
Tenet also has been under criticism for intel failures in the US-led
war against Iraq, specifically wrong assessments about WMD.
In a Feb speech, Tenet conceded that the intel community may have
overestimated Iraq's weapons programs, but he defended his
analysts. "They never said there was an imminent threat," Tenet said.
The CIA has been angered over recent allegations that Defense Dept
civilians may have given highly classified info on Iran to an Iraqi
politician and former Pentagon favourite, Ahmad Chalabi. After the
resignation, Chalabi lashed out at Tenet, accusing him of being
personally responsible for spreading the allegations.
Agency officials also still are upset over last summer's leak of a
covert CIA operative's name. Bush said Wed he was considering hiring a
private attorney to give him legal advice in a grand jury
investigation into that leak.
Tenet had considered leaving before. In 1998, he told his 1st boss,
Pres Clinton, he would resign if Clinton pardoned convicted spy
Jonathan Pollard, a former naval intel officer who gave top-secret
documents to Israel.
Officials close to Tenet say he also thought about resigning last
summer, but decided to stay on. Some believed he had wanted to see
through bin Laden's capture.
Since the intel failures on the Iraq war, congressional aides have
said that Tenet's capital among some key lawmakers -- Republicans and
Democrats alike -- had dwindled.
Sen Pat Roberts, R-Kan, chairman of the Senate Intel Committee, said
the intel community had to be held accountable for its failings.
"Simply put, I think the community is somewhat in denial over the full
extent ... of the shortcoming of its work on Iraq and also on 9/11,"
Roberts said Thu morning before learning of Tenet's decision. "We need
fresh thinking within the community, especially within the Congress,"
Roberts said.
Former CIA Director Stansfield Turner said he believed Tenet had been
pushed out.
"I think the president feels he's in enough trouble that he's got to
begin to cast some of the blame for the morass that we are in in Iraq
to somebody else," said Turner, a retired Navy admiral.

CIA chief Tenet quits
George Tenet will leave the CIA in Jul.
Washington (Reuters).  CIA director George Tenet has resigned and will
leave the intel agency in Jul.
US Pres George W Bush says Mr Tenet submitted his letter of
resignation on Wed night at the Whitehouse and told him he was leaving
the post for personal reasons.
"I told him I'm sorry he's leaving. He has done a superb job on behalf
of the American people. I accepted his letter," Mr Bush told reporters
as he was leaving the Whitehouse to begin a trip to Italy and France.
"George Tenet is the kind of public servant you like to work with.
He's strong, he's resolute. He's served his nation as the director for
7 y. He has been a strong and able leader at the agency. He's been
a strong leader in the war on terror, and I will miss him."
The CIA's reputation has suffered several blows in recent times,
including the failure to detect plotting for the Sep 11, 2001
terrorist attacks.
In the run up to the war in Iraq, hawkish conservatives accused the
agency of not being aggressive enough in its assessment of Saddam
Hussein's supposed WMD.
Mr Tenet, who was named to the post by then-president Bill Clinton,
had served as acting CIA director following the departure of John
Deutch in Dec 1996.
Previously, he had served as snr director for intel programs at the
Nat'l Sec Council.
Mr Tenet will continue as CIA director until mid-Jul, when his deputy
John McLaughlin will become acting director.

Tenet tenacious to the end
Washington (AFP).  George Tenet has been a tenacious leader of the
Central Intel Agency through major controversies over allegations of
weapons of mass destruction in Iraq and missed warnings before the
devastating attacks of Sep 11, 2001.
Mr Tenet, 51, who will leave the CIA in Jul after resigning his post,
has served the agency for 7 y, making him one of the longest serving
heads of the US spy agency.
He was appointed in Jul 1997 by then-president Bill Clinton but
remained close to Republican boss Pres George W Bush after the 2000
election.
And despite the sharp criticism of US intel services over Iraq and the
Sep 11 attacks, Mr Bush repeatedly gave statements of confidence in Mr Tenet.
After taking over from John Deutch, Mr Tenet survived several disputes
with Congress and won praise from some quarters for his bid to
rehabilitate the CIA after several high-profile spy scandals and
morale problems.
Some in the intel community had expected Mr Tenet to resign following
the agency's failure to foresee the Sep 11 attacks.
But he weathered that storm, bolstered by Mr Bush and Vice-Pres Dick
Cheney, and went on to garner favour with conservatives as the CIA
deployed specialist teams in Afghanistan in late 2001.
The ruling Taliban militia was ousted, but the US has still to find
their prime target, Al Qaeda leader Osama bin Laden.
And the CIA is still subject to an independent inquiry into allegations
about Iraq's weapons programs that were used to justify the invasion
of that country in Mar 2003.
The CIA chief has considerable experience in navigating Washington's
political waters.
He has worked in both the legislative and executive branches for
Democrats and Republicans.
Before joining the spy agency, as it struggled to redefine its role in
the post-Cold War world, Mr Tenet also served as special assistant to
the president and snr director for intel programs at the Nat'l Sec Council.
The straight-talking spy master was re-appointed CIA chief by Mr Bush
in 2001 after originally having been tapped by former Democratic
president Bill Clinton.
Like Mr Clinton before him, Mr Bush dispatched Mr Tenet to the Middle
East, where he has held talks with Israeli PM Ariel Sharon and
Palestinian leader Yasser Arafat in a bid to establish a ceasefire and
nudge the 2 sides toward peace.
The son of Greek immigrants, Mr Tenet is married to A Stephanie
Glakas-Tenet and has one son.
Mr Tenet grew up in Queens, NY, where he worked in his family's diner.
He later attended Georgetown University's elite School of Foreign Service.
He also holds a master's degree in internat'l affairs from Columbia Uni.

CIA head "not pushed" by Bush
Washington (AFP).  White House rep Scott McClellan said President
George W Bush did not requested that the CIA chief step down, but that
the Pres made no attempt to dissuade him.
Central Intel Agency (CIA) director George Tenet submitted his
resignation to Pres George W Bush late Wed (US time).
"The Pres understood his reasons for leaving," the rep said.
The White House rep did not comment on the search for a permanent
replacement.
Deputy director John McClaughlin will be interim director from
mid-Jul when Mr Tenet's resignation becomes effective.
Mr McClellan did not give a timetable for the replacement and would
not comment on whether the search would go on beyond the Nov 2
presidential election.
Mr Tenet has delivered an emotional farewell to CIA employees at the
agency's HQ in Washington, praising them for their hard work and
reiterating that he is resigning for personal reasons.
"I did not make this decision quickly or easily, but I know in my
heart that the time is right to move on to the next phase of our
lives," Mr Tenet said.
"In an organisation as vital as this one, there is never a good time
to leave."
Mr Tenet has been under attack over the intel used to justify the Iraq
invasion and warnings before the Sep 11 attacks, but again he insisted
he was leaving for personal reasons.
Mr Tenet, visibly choking back tears, said his resignation "has only
one basis in fact: the well being of my beautiful family".
Addressing his son Michael, a teenager who was sitting in the
audience, he said: "You've been a great son, and now I'm going to be a
great dad."
Mr Tenet also praised his wife as an advocate for CIA families.
Addressing the CIA employees who gathered to hear him, he said: "you
have acted with focus and courage through it all".
The agency is "not perfect," he said, "but one of our secrets is that
we're very, very, very good".
Mr Tenet will be leaving on Jul 11, the 7th anniversary of his taking
the job under then-president Bill Clinton.
Mr Tenet said in his letter of resignation addressed to Mr Bush, "My
tenure as director of Central Intel has been the most challenging and
rewarding experience I could ever hoped to have had.
"I will forever be grateful for the honour and opportunity you have
given me to work closely with you on behalf of our nation," he said.
* No warning
Earlier, the Whitehouse said Mr Bush did not ask Mr Tenet to resign
and had no advance notice that he would do so.
Mr McClellan gave an account of events in a briefing on Air Force One
taking Mr Bush to Rome.
According to Mr McClellan, Mr Tenet requested to meet the Pres and
Whitehouse chief of staff Andrew Card on Wed.
Mr Tenet met Mr Bush at the Whitehouse for about 45 minutes on Wed
night after the Pres returned from giving a speech at the Air Force
Academy in Colorado.
"This was a decision made by director Tenet for personal reasons. I
would not connect it with anything else," Mr McClelland said.
Mr McCellan said that in his resignation letter, Mr Tenet "talks about
how he has been talking with his family for several months" about leaving.
Asked whether Mr Bush had any advance warning, Mr McClellan said,
"No". Tenet "made it known to the Pres yesterday that he had made a
decision to resign".

Venezuela's Chavez faces recall vote
Caracas (AFP/Reuters).  Venezuela's Nat'l Election Council on Thu
cleared the way to holding a referendum on the future of twice elected
Pres Hugo Chavez, saying it had verified sufficient signatures
petitioning a vote.
Council director Jorge Rodriguez said that the opp'n had collected
2,451,821 valid signatures, more than the 2,436,083 required by law.
While Rodriguez said that the signatures count was preliminary, "It is
probable that it will be maintained."
"This shows a clear tendency in favour of the possibility of calling a
referendum on the rule of the president," Mr Rodriguez said in a
broadcast from the council HQ in Caracas.
Officials spent the weekend verifying some 700,000 signatures, in
addition to the nearly 2 mn previously verified.
Venezuela's constitution allows for a recall at any time past the
halfway point of an official's term.
"This is the triumph that will be repeated on Aug 8 when we hold the
referendum," said the opp'n governor of Miranda province, Enrique Mendoza.
In addition, 9 opp'n members of legislature will face recalls, Mr
Rodriguez announced. Mr Chavez's allies occupy 84 of the 165 Nat'l
Assembly seats.
The constitutionally mandated recall was the agreed-upon alternative
to growing violence, strikes and a coup 2 y ago aimed at ousting Mr Chavez.
Former US president Jimmy Carter and Organization of American States
Sec-Gen Cesar Chavez brokered the deal.
Mr Carter and OAS representatives over-saw the signature verification,
but were admonished against issuing any statements about it, after Chavez
Admin officials called statements from US State Dept officials unwelcome.
US interest in Venezuela is keen, because the only Latin American
member of OPEC sells more oil to the US than does Saudi Arabia.
Mr Chavez has said repeatedly that he would abide by the results of
the referendum, most recently in a Washington Post editorial.
"To be frank, I hope that my opponents have gathered enough signatures
to trigger a referendum, because I relish the opportunity to once
again win the people's mandate," Mr Chavez said on May 26.
The opp'n right-wing labour and business coalition calls him autocratic
and for his close ties to Cuba's Fidel Castro.
Mr Chavez responds that he is fighting what he calls Venezuela's
corrupt, privileged oligarchy. He has redistributed Venezuela's oil
wealth to education, health and agriculture sectors.
Venezuela's poor majority defends him, sometimes violently.
In disturbances leading up to Thu's announcement, opp'n social
democratic legislator Rafael Marin was wounded in downtown Caracas,
where Chavez backers attacked Radio Caracas Television station and El
Nacional newspaper office, burned tires and vehicles, including a
police motorcycle.
Mr Chavez is a nat'list populist who recalls frequently South American
liberator Simon Bolivar.
The former paratrooper led a failed coup against then-president Carlos
Andres Perez in 1992.
He was elected president in 1998, and was reelected under a new constitution.
Mr Chavez was ousted in Apr 2002 in a 2-day military coup led by
business groups, right-wing trade unionists and sections of the military.
The US quickly moved to endorse the self-proclaimed
provisional govt, which lasted only a day, and blamed Mr Chavez for
his ousting.
Mr Chavez was returned to power in 47 hr.
He also weathered a lengthy lockout in late 2002 and early 2003 by oil
company executives, which shut down the country's oil industry.
The referendum will likely be held on Aug 8, if the council is able to
organise it by then.
If the referendum is held before Aug 16 -- when Mr Chavez begins his
fourth y in office -- and he loses, new presidential elections must be held.
If the referendum is held after Aug 16 and Mr Chavez loses, however,
there is no election and the vice-president takes office. In either
case, Mr Chavez would be out.
Before the announcement, violence broke out in downtown Caracas when
pro-govt rioters torched cars and trucks and gunmen attacked the
office of the Caracas mayor, Alfredo Pena, an outspoken critic of
left-winger Mr Chavez.

Bush arrives in Italy
Rome (AFP).  US Pres George W Bush has arrived at Rome-Ciampino
airport for a 2-day visit to Italy.
He is to meet with Italian PM Silvio Berlusconi and Pope John Paul II,
sources in his delegation said.
Demonstrations against the Iraq war were slated for Fri in the Italian
capital.
Mr Bush is to have talks on Fri morning (local time) with Italian Pres
Carlo Azeglio Ciampi.
He was to go on to the Vatican for talks with the Pope before taking
part in the afternoon in ceremonies marking the liberation of Rome by
US forces on Jun 4, 1944.
On Sat Mr Bush is to meet Mr Berlusconi, a staunch ally over Iraq,
followed by a press conference.
The US Pres will continue to Paris for a meeting with French Pres
Jacques Chirac before going on Sun to Normandy, western France, to
take part in the ceremonies commemorating the 60th anniversary of the
allied landings.
He will return to the US on Sun to host the G8 summit grouping Brit,
Canada, France, Germany, Italy, Japan, Russia and the US at
Sea Island in Georgia.

Moore releases 9/11 trailer
Melbourne.  The trailer for Michael Moore's Palme d'Or-winning
Fahrenheit 9/11 has been released on the director's website.  It will
be shown in US cinemas from Fri with the movie to be released on Jun
25.  It will receive its Aussie premiere at the 53rd MEL Internat'l
Film Festival on Jul 22 and open nat'ly the following wk.  The
documentary is being distributed by the heads of Miramax, Bob and
Harvey Weinstein, after parent company Disney refused to distribute
the film.  The documentary, which looks at alleged links between the
Bush family and Osama Bin Laden, won the prestigious Palme d'Or award
at this y's Cannes Film Festival.  The trailer shows Mr Bush joking
with journalists, contrasted with images from the Iraq war.  Moore won
an Oscar for Bowling for Columbine.

Abu Hamza faces US extradition hearing
London (Reuters).  Radical Muslim cleric Abu Hamza al-Masri, who
faces charges in the US of supporting Al Qaeda, has
appeared in a London court to face an American extradition request.
Abu Hamza, 47, is accused of plotting to create an Al Qaeda training
camp in the US and giving "material support and resources to
terrorists" in Yemen.
Magistrate Timothy Workman refused Abu Hamza bail during a hearing at
Belmarsh Magistrates Court.
He was remanded in custody until Jul 1 when he will appear by
video link from the high-security Belmarsh prison at a hearing at Bow
Street Magistrates Court in London.
Abu Hamza appeared in the dock flanked by 3 security guards. He only
spoke to confirm his name.
An open admirer of Osama bin Laden, the one-eyed preacher attended the
start of what could be a drawn-out bid to extradite him for trial in
the US.
Home Sec David Blunkett said last wk he wanted the case to be
"speeded through".
But Abu Hamza's lawyers could mount a series of appeals.
If convicted in the US, the Egyptian-born cleric could face the death
penalty or up to 100 y in jail.
However, Brit, which abolished capital punishment in 1965, will
extradite him only if it receives assurances the death penalty will
not be imposed.
An 11-count American indictment accuses the cleric of having a role in
a 1998 hostage-taking attack in Yemen in which 4 people were killed.
It also alleges he tried to help Al Qaeda set up a "terrorist training
camp" in Bly, Oregon, from Oct 1999 to early 2000.
Abu Hamza, also known as Mustafa Kamel Mustafa, has concerned US
authorities for several y with his preaching in praise of bin Laden
and the Sep 11 attacks.
He was stripped of his Brit nat'lity a y ago after allegations that he
supported terrorism, but he denies any formal links to Al Qaeda.

Saudi terrorism fears overstated: analyst
Under threat: Militants are targeting Saudi oil facilities
Melbourne (ABC Lateline).  Fears of major terrorist attacks disrupting
global oil supplies are overstated, according to Al Qaeda expert Paul Eedle.
Mr Eedle, who has recently toured oil facilities in Saudi Arabia, says
the standard of security is very high.
"The militants have not come remotely close to actually disrupting oil
production," Mr Eedle told Lateline.
"Khobar, where last weekend's attacks took place, is the capital of
the eastern province where all of the oil comes from but Khobar itself
is not home to companies that are actually drilling and exporting oil.
"That's all done up the road at Aramco where the level of security is
way higher."
The attack on Khobar last weekend that killed 22 people has been
attributed to Al Qaeda.
The terrorist network claimed responsibility through a tape put out by
rep Ablaziz al-Mukran.
"[He] claimed responsibility and explained that they were targeting
Western oil interests, particularly the subsidiary of the American
firm Halliburton, which he said was stealing Muslim wealth in Iraq,"
Mr Eedle said.
Mr Eedle says anecdotal evidence shows Al Qaeda's strategy is not working.
"We're talking here about a economy that has 6 to 8 mn foreign
workers, of many, many different nat'lities," he said.
"Only 100,000 of them Westerners.
"The companies directly affected by the attacks such as Shell have
withdrawn dependents to other countries in the Gulf, which is fair enough.
"But everybody I've talked [to], from economists to Saudi businessmen
to expatriates themselves, says that there's no mass exodus in prospect."
Mr Eedle says talks with mediators attempting to persuade militants to
lay down their arms in Saudi Arabia show Al Qaeda's influence in the
region is largely due to a handful of influential leaders.
"These are people who fought with Osama bin Laden in Afghanistan, came
back to the country after the 2001 war in Afghanistan and have been
recruiting and training other people," he said.
"The foot soldiers are much more numerous... but [the] picture is if
the leaders can be taken out of action, then the followers will fairly
rapidly leave the scene."
Mr Eedle says Saudi Arabia remains stable, at least in the short-term.
"In the long-term, I don't think anybody knows what will happen," Mr
Eedle said.
"In the short-term I think they're fairly secure.
"In the long-term this is a fragile system, which is vulnerable to
external shocks.
"Almost a whole range of different nightmares could happen.
"Or they could not and we could still be having this discussion in
another 25 y."

More Britons than ever living with heart disease
London (Reuters).  Fewer people are dying from it but more Britons
than ever before are living with coronary heart disease, the Brit
Heart Foundation said in a report published on Fri.
Nearly 3 mn people are living with the disease, an increase of 5% from
1989. A mn others have blocked arteries and do not know it.
"These statistics contain good and bad news," Professor Jeremy
Pearson, assistant medical director of the foundation, said in an interview.
"The good news is that fewer people are dying prematurely of
cardiovascular disease. Many more who have a heart attack are being
treated promptly with drugs or by surgery," he added.
But one person every 2 minutes in Brit suffers a heart attack, which
amounts to 270,000 every y.
"If you treat a heart attack, it is a bit like closing the stable door
after the horse has bolted because a heart attack is what you
physically notice of a disease process that started early in life,"
Pearson added.
Deaths from coronary heart disease (CHD) have fallen in the past
decade but Brit still has one of the highest rates in Europe,
according to the report.
Nearly 117,500 people died of the illness in 2002, compared to 121,000
the prev y, according to the report. Only Finland and Ireland have
higher death rates. A working-age man in Brit is more than twice as
likely to die from heart disease than a man in Italy.
Deaths from CHD between 1991 and 2001 fell 40% in men aged 35-44 and
by 47% in men aged 55-64. In women aged 55-64 the decrease was 53% and
33% in younger females.
But the number of people living with CHD is about 30,000 higher than
last y's estimates because any improvements are being undermined by a
lack of exercise and a poor diet which has fuelled an obesity
epidemic. Obesity is a risk fact for CHD.
In a decade, the number of obese adults has risen from 14 to 22% of
the population, giving Brit one of the fastest growing rate of obesity
apart from Kuwait and Samoa.
"Most heart disease is avoidable if we take simple measures to improve
our lifestyle. Too many people in the UK are exercising too little,
eating diets too high in fat, salt and sugar, and consequently
becoming overweight or obese," said Professor Charles George, the
foundation's medical director.
"This trend has real and worrying implications for the future rates of
CHD in the UK and for the freedom of future generations to live long
and health lives," he added in a statement.

Abuse probe a whitewash: Greens
Canberra (AAP).  A US inquiry into claims of abuse against 2 Aussies
held at Guantanamo Bay would be a whitewash, Aussie Greens Sen Bob
Brown says.
PM John Howard has raised as an issue the delay in charging Aussie
terrorist suspects David Hicks and Mamdouh Habib, while visiting US
Pres George W Bush in Washington.
The 2 have been detained at Guantanamo Bay without charge, although
charges against Hicks are expected within days.
It follows confirmation that a high-level US investigation is underway
into claims that Hicks and Habib have been abused while incarcerated.
Sen Brown told reporters there had been grievous abuse of these
prisoners and the issue was not going to go away.
"It breaches the Geneva conventions and it is going to come back on
John Howard and on Pres Bush," he said.
"A whitewash of the military being sent to do an assessment of its own
actions is not going to wash.
"Mr Howard must demand an independent inquiry with Aussie representation."

Lawyers unimpressed by Hicks probe
Sydney (AAP).  The lawyers for the 2 Aussie terrorist suspects held
at Guantanamo Bay are unimpressed by US Pres George W Bush's promise
of a full investigation into their treatment.
Lawyers for David Hicks and Mamdouh Habib are concerned the inquiry
will be a military investigation and not transparent enough.
"It's just like Caesar ruling Caesar and any outcome would be
perceived at least to be self serving and in self interest," Habib's
lawyer Stephen Hopper told ABC radio.
The inquiry comes after claims by former Guantanamo Bay inmates that
they witnessed Hicks and Habib being abused by their American captors.
Mr Bush promised a full inquiry after discussing the matter during
talks with PM John Howard in Washington.
The president also promised a full accounting of the abuse of Iraqi
prisoners, and reassured Mr Howard that AUS and the US shared a
commitment to the principles of human dignity.
But Mr Bush stopped short of giving an assurance that Hicks and Habib
had not been subjected to mistreatment during their 2 y in US detention.
A military investigation into the treatment of Hicks and Habib began
earlier this wk after a request from AUS and following complaints from
the lawyers for the 2 men.
Hicks' lawyer Stephen Kenny said he did not have much confidence in
the inquiry.
He said he had been asked by the fed govt to provide details about his
client, but he was reluctant to do so until he had spoken to other
defence lawyers in the US and Hicks' US-appointed military lawyer
Maj Michael Mori.
"The only permission I have at the moment is that I may in the
presence of Maj Mori provide certain material to the Aussie govt but
only in the condition that the Aussie govt provides it to the US
authorities, and, quite frankly, that doesn't inspire a lot of
confidence in me," he told ABC radio.
"We have this reservation that it's the military investigating it and
quite frankly I don't have a lot of faith in it because the military
investigated the abuses in Iraq and the report never saw the light of
day until it was leaked to a journalist."
Hicks and Habib have been held for more than 2 y after being
captured by US forces during the war on terror in Afghanistan.

US Marines plead guilty to abuse
Baghdad (AP).  2 US Marines have pleaded guilty to giving electric
shocks to an Iraqi prisoner they were guarding at a temporary
detention centre S of Baghdad in early Apr, m after the Abu Ghraib
prison abuse occurred, military officials said.
PFC Andrew J Sting and PFC Jeremiah J Trefney, both 19, entered their
pleas at a May 14 court-martial in Iraq, according to a statement by
the 1st Marine Expeditionary Force in Iraq.
Lt Nathan Braden, a Marine rep at Camp Pendleton, California,
released the statement.
Sting and Trefney were infantrymen with the 2nd Battalion, 2nd Marine
Regiment, which is attached to the 1st Marine Division.
According to the military statement, Sting, Trefney and 2 other
Marines decided to shock a detainee at the Al Mahmudiya prison, a
temporary holding facility, in order to discipline him for throwing
trash outside his cell and speaking loudly.
The Marines attached wires to a power convertor, which was used to
shock the detainee with 110 volts of electricity as he returned from a
trip to the bathroom, the statement said.
Sting pleaded guilty to charges of assault, cruelty and maltreatment,
dereliction of duty and conspiracy to assault. He was sentenced to a y
in prison, a reduction of rank, forfeiture of pay and a bad-conduct discharge.
Trefney pleaded guilty to cruelty and maltreatment, dereliction of
duty, false official statement, violating a lawful order and
conspiracy to commit assault. He was sentenced to 8 m in prison,
reduction of rank, forfeiture of all pay, and will receive a
bad-conduct discharge.
The 2 other Marines, who were not identified, are awaiting court action.
The pleas by Trefney and Sting came 5 days before the highly
publicised court-martial hearing for Army Reserve Spc Jeremy C Sivits
in the Abu Ghraib prison abuse scandal.
Sivits, 24, pleaded guilty to 4 counts of abuse, the 1st defendant to
go on trial in the Abu Ghraib case. 6 other reservists are charged
with the abuse of Iraqi prisoners at Abu Ghraib, which occurred
between Oct 2003 and Jan 2004.
The Al Mahmudiya prison held about 300 detainees and was guarded since
late Mar by active-duty Marines and reservists, Marine officials said.

US Marines imprisoned for abusing Iraqi inmate
Baghdad (Reuters).  2 US Marines have been sentenced to prison after
pleading guilty to charges of abusing an Iraqi prisoner who threw trash.
They shocked him with 110 volts of electricity at a jail S of Baghdad
in Apr, the Marine Corps said.
The incident at a detention centre in Mahmudiya occurred m after the
abuse of Iraqi prisoners by US forces at the Abu Ghraib prison on the
outskirts of Baghdad, but before pictures of that misconduct created
an internat'l scandal.
Marine Corps Private First Class Andrew Sting and Private First Class
Jeremiah Trefney, both 19, pleaded guilty in courts-martial in Iraq on
May 14 and were sentenced to prison, said Marine Lt Nathan
Braden, a rep at Camp Pendleton, California, reading from a statement.
The Marines were accused of attaching wires to a power converter and
pressing the live wires carrying 110 volts of electricity against the
body of the prisoner to create a shock, Lt Braden said. The
prisoner survived.
Testimony in the case indicated the Marines administered the shock
after the prisoner had spoken loudly and threw trash from his cell in
violation of detention centre rules, Lt Braden added.
Private First Class Sting pleaded guilty to assault, cruelty and
maltreatment, dereliction of duty, and conspiracy to assault a
detainee, and was sentenced to a y in prison, a reduction of rank to
private, forfeiture of pay, and given a bad-conduct discharge, Lt
Braden said.
Private First Class Trefney pleaded guilty to cruelty and
maltreatment, dereliction of duty, false official statement, violating
a lawful order, and conspiracy to commit assault.
He was sentenced to 8 m in prison, reduction of rank to private,
forfeiture of pay, and given a bad-conduct discharge, Lt Braden said.
Lt Braden said the Marines Corps "immediately launched an investigation"
after learning of the incident and "held them accountable."
The Marine Corps investigated 3 other Marines in connection with the
incident, and an officer recommended that 2 of them face court action,
Lt Braden said.
Private First Class Sting and Private First Class Trefney were
infantrymen with the 2nd Battalion of the 2nd Marine Regiment from
Camp Lejeune, N Carolina, and were assigned to the 1st Marine Division
from Camp Pendleton.
7 Army soldiers were charged in relation to the abuse and sexual
humiliation of Iraqi prisoners at Abu Ghraib, and the US military is
conducting a series of investigations into the treatment of prisoners
held in Iraq and Afghanistan.
Army Specialist Jeremy Sivits was sentenced to a y in prison, demoted
to private and given a bad-conduct discharge at a court martial on May
19, after pleading guilty to mal-treating detainees, dereliction of
duty and conspiracy to maltreat.

Hicks's father sceptical about investigation
Adelaide.  A SA man whose son is being held by the US military at
Guantanamo Bay is sceptical about assurances that his son's treatment
is being investigated.  PM John Howard has spoken with US Pres
George W Bush about claims that David Hicks and Mamdouh Habib have
been tortured.  Mr Bush says the claims are being investigated by the
US military, and their cases are moving forward.  David Hicks's father
Terry says Mr Howard should have asked much sooner.  "It's
2-and-1/2 y too late and now all of a sudden they're going to do
something," he said.  "This should have been dealt with a long, long
time ago, not Mr Howard all of a sudden coming out saying we're doing
this and we're going to investigate that and down the track we've got
elections coming up."

Labor, Greens criticise prisoner abuse probe
Canberra.  The Fed Opp'n and the Greens have little confidence in an
internal Defence Dept investigation into the Iraqi prisoner abuse scandal.
The investigation was sparked by revelations several govt depts
learned last y of the mistreatment of Iraqi prisoners, and failed to
pass that info on.
Defence Min Robert Hill is promising a thorough inquiry, but Labor's
Defence rep Chris Evans doubts that.
"I don't have much confidence in it," he said. "It's certainly belated
and I'm not sure it will solve all the problems."
Greens leader Bob Brown agrees.
"This is a Min seasoned in fobbing off both the Senate and the
Parliament and public inquiry into matters like this," he said.
"There'd be much more confidence had there been an independent
inquirer announced."
Labor and the Greens are also unimpressed Sen Hill has again been
unable to produce documents dealing with custody arrangements for
Iraqi prisoners captured by Aussie soldiers.
Sen Hill says AUS struck a deal for the US to take responsibility for
prisoners captured in the war on terror in Afghanistan, and says that
deal also applied to the war in Iraq.
He insists the arrangements fully comply with internat'l law.
A Liberal backbencher says AUS's defence chiefs should have offered
their resignations, for providing misleading info about when military
officers knew about the abuse of prisoners in Iraq.
Def Sec Ric Smith and the Chief of the Defence Force Gen Peter
Cosgrove have both apologised for embarrassing the govt over the matter.
Liberal MP Peter King thinks they should have gone further than that.
"In these situations, responsibility does need to be taken at some
stage in snr levels," he said.
"There was an opportunity for the CDF and possibly the secretary of
dept to offer their resignations, I'm sure they wouldn't have been
accepted, having regard to their service."

Rumsfeld "reviews" Guantanamo interrogations
Washington (Reuters/ABC).  US Def Sec Donald Rumsfeld must personally
review the use of 4 types of interrogation methods before they can
be used on foreign terrorism suspects at the US naval base at
Guantanamo Bay, Cuba, a senior Army general has said.
Gen James Hill, who as head of US S Command is responsible for
Guantanamo Bay, refused to reveal the nature of these 4 methods,
although he denied guard dogs were used in interrogations or that
prisoners were given chemicals or injections of any kind.
Gen Hill said 4 techniques that deviate from the military's traditional
interrogation methods require him to notify Mr Rumsfeld in advance.
Mr Rumsfeld then has 7 days to either reject the request or allow the
technique to be used, Gen Hill said.
Gen Hill declined to answer when asked whether US forces subjected
Guantanamo prisoners to interrogation techniques including sensory
deprivation, sleep deprivation, isolation for longer than 30 days,
dietary manipulation and placing inmates in body "stress positions".
"We have used those techniques on 2 people," Gen Hill said, and both
then provided useful info.
Gen Hill said he was convinced these methods were permissible under
the Geneva Conventions.
2 Aussies have been held at Guantanamo for more than 2 y without charge.
Pres George W Bush promised PM John Howard a "full accounting" and a
probe into any mistreatment of the 2 Aussies when they met in
Washington yesterday.
During a Pentagon briefing, Gen Hill, who also met with US lawmakers
about Guantanamo, defended the prison as "a professional, humane
detention and interrogation operation" with "layers of checks and balances".
The treatment of the roughly 595 non-US citizens held there has come
under renewed scrutiny following the scandal over the abuse of Iraqi
prisoners at the Abu Ghraib prison.
Human rights activists have accused the US of using torture at
Guantanamo, where prisoners are held indefinitely and most without
being charged.
US policy is that the prisoners are not covered by the Geneva
Conventions establishing rights for prisoners.
Gen Hill said revealing the interrogation methods used at Guantanamo
would help potential future prisoners devise ways to resist giving info.
"We know for sure that the high-ranking, high-value targets have been
trained in resistance techniques. We've got their manual, and they
have, in fact, demonstrated it," Gen Hill said.
"We've got people at Guantanamo who have never said a word to us. They
are very good at it. So for me to disclose my techniques then gives
them the opportunity to figure out a way to resist those techniques."
Gen Hill said prisoners have avoided providing info by reciting
prayers during questioning, declining to speak, or giving "disinfo".
He said "at least a third" of those Guantanamo are "very high-value."
Maj Gen Geoffrey Miller, when he headed the Guantanamo prison operation,
urged US forces in Iraq to use dogs to frighten detainees, according
to sworn testimony by the top intel officer at Abu Ghraib, The
Washington Post reported last m.
Gen Hill said the Guantanamo rules permit the use of dogs to retrieve
a weapon from a prisoner.
He said on one occasion US personnel brought a dog to a cell when a
prisoner had a makeshift knife, but the man surrendered it before the
dog ever entered the cell.
Gen Hill was asked about an Amnesty Internat'l report that the US
permitted a Chinese govt delegation to mistreat Chinese Muslim
detainees during interrogations at Guantanamo in 2002.
Gen Hill said America has permitted delegations from some countries
whose citizens are held at Guantanamo to question prisoners "under our
rules," but refused to say whether China was one.

Challenge of new leaders: Win over Iraqi "Braveheart"
Op/Ed (USA Today).  Remember the 1995 Oscar-winning movie Braveheart,
in which Mel Gibson plays an ancient Scot who fights the English and
corrupt nobles to free his people? To Americans, it might seem far
removed from Iraq. But when Harper's Magazine this m profiled
insurgents attacking US forces and Iraqis aiding them, one cited
Braveheart as his role model for a similar cause of "freedom" and "hope."
Other insurgents revealed motives that were as selfishly mundane as
wanting to eject Americans to get reconstruction contracts for
themselves. The portraits reflect the broad differences in outlooks
that usually get lost in the cookie-cutter categories that US officials
and the news media assign Iraqis to -- Sunni, Shiite, Kurd, terrorist.
Yet finding common ground among Iraqis, who have more elusive
differences than their ethnic or religious backgrounds, is crucial to
determining whether the new group of Iraqi leaders sworn in this wk
can get the country on the road to self-rule and elections.
The 33 men and women who make up the caretaker govt have a formidable
task: persuading as many Iraqis as they can that their future is best
forged by supporting their efforts, not sabotaging them. Their
challenge includes demonstrating that a functioning govt and a more
stable Iraq offer the best exit route for US forces.
Trying to build an inclusive govt goes against the traditional grain
of a region where Saddam Hussein carried on the centuries-old rules of
the game with a brutal fervour: The strongest ruler -- along with his
tribe- wins.
That's one reason critics of the new coalition govt say it will
fail. They also charge it is too similar to the Iraqi Governing
Council it replaces. The US-picked council was seen by most Iraqis as
an American puppet.
Even so, Iraqis spurned some choices for top posts favoured by the US
and UN envoy Lakhdar Brahimi, who assembled the group. He said the
interim authority reflects compromises, but offers "something to build
on....This govt should be given a chance."
Whether Iraqis give it a chance depends on how it handles a transfer
of power from the US on Jun 30 and prepares for elections to be held
in Jan.
One test will be the willingness of newly installed officials to set
aside personal ambitions and tribal politics. Another will be their
ability to show real independence, even as 138,000 US troops stay to
quell an insurgency that flared Wed. US forces clashed with Shiite
militias in the S city of Kufa, at least 5 died in car bombings in
Baghdad, and explosions rocked a US base outside the N city of Kirkuk.
An early gauge of progress will come in a m, when a conference of
Iraqis chooses a council of 80 members to oversee the new govt's
work. The goal is to represent as many Iraqi factions as possible.
The real litmus test is convincing the Braveheart admirer that he can
win freedom by backing the new govt and laying down his arms against
the foreign invader.

Brahimi explains politics behind Iraq govt posts
Baghdad (NPR).  UN envoy Lakhdar Brahimi, who was tasked with leading
the formation of Iraq's new interim govt, says he did not get his
choice for candidates to fill some top spots. But he says comments he
made Wed calling US civilian administrator Paul Bremer "the dictator
in Iraq" were in jest.

Key Shiite backs new Iraq team
Iraq's most influential cleric gave conditional approval to the
interim govt.
Baghdad (CS Monitor).  Iraq's new transitional govt won the tacit
approval Thu of the country's preeminent Shiite cleric, providing a
welcome boost of confidence as it prepares to assume sovereignty from
the American-led coalition at the end of the m.
How much sovereignty this govt will have is still being debated at the
UN, and Ayatollah Ali al-Sistani's words are calculated to influence
that process.
In his 1st comments on the creation of the new govt, which will steer
the turbulent country until nat'l elections are held next Jan,
Ayatollah Sistani admitted that it lacked the "legitimacy of
elections" and does not represent "in an acceptable manner all
segments of Iraqi society and political forces."
"Nevertheless, it is hoped that this govt will prove its efficiency
and integrity and show resolve to carry out the enormous tasks that
rest on its shoulders," the cleric said in a hand-written statement
released by his office in the Shiite holy city of Najaff, 100 miles S
of Baghdad.
Securing Sistani's approval is crucial for the new govt as it prepares
to take over from the US-run Coalition Provisional Authority on Jun
30. Although the reclusive cleric rarely is seen in public and since
the war has not left his tiny home in an alleyway nr the shrine of
Imam Ali in Najaff, he is revered by Shiites, who make up 60% of the
population and closely follow his fatwas, or religious decrees.
"As the highest Shiite authority in the land, any approval from
Sistani, tacit or vocal, is very important for the new govt," says
Saad Jawad, professor of politics at Baghdad University.
Key to the transitional govt's standing will be the amount of
sovereignty it wins in a UN Sec Council resolution submitted by the US
and Brit and presently under debate in New York. France, Russia, and
China say the current draft resolution is vague about who controls
Iraqi security forces after the Jun 30 handover.
"The new govt should get a clear resolution from the UN Sec Council
restoring sovereignty to Iraqis -- a full and complete sovereignty in
all its political, economic, military, and security forms and endeavour
to erase all traces of the occupation," Sistani's statement said.
The ayatollah has been the bane of the coalition authorities for the
past y, using his great influence to shape the course of Iraq's
return to sovereign rule. A US plan drawn up last Nov to hold
caucus-style elections to form a transitional govt was scrapped after
Sistani voiced objections and instead called for a nationwide poll, a
move that generated wide support among Iraq's majority Shiite community.
Only a UN assessment that elections were not feasible in the time
given persuaded Sistani to drop his stance.
The ayatollah also objected earlier this y to key clauses of the draft
Transitional Administrative Law under which Iraq will be governed
until a permanent constitution is established.
But professor Jawad says that Sistani is likely to give the new govt
breathing space, content that full elections have been promised by the
end of Jan.
"He wanted elections to take place but he accepted the UN
view that the country is not ready for them. He will wait until the end
of this govt's term. I don't think he will try to discredit it," he said.
Little has been heard from Sistani since the beginning of Apr when the
Shiite community was convulsed by an uprising led by the maverick
firebrand cleric, Moqtada al-Sadr. The rebellion, which pitted Mr
Sadr's Mahdi Army against US troops, spread swiftly throughout Shiite
areas from Baghdad's Sadr City slum to Najaff, Karbala, and Kufa in the S.
Despite a negotiated truce announced on May 27, fighting continues
fighting between US soldiers and Sadr militiamen in Kufa. Associated
Press reports 17 Iraqis and 2 US soldiers have been killed there in
the past wk.
Sistani has called for an end to the fighting and blamed US troops for
entering the Shiite shrine cities. Analysts say the reason for his
middle-of-the-road stance is his fear of seeing the Shiite community
divided and fighting among each other.
Nonetheless, his reticence toward Sadr's popular rebellion has done
little to dim the respect in which he is held throughout the country.
According to a recent survey by the Baghdad-based Iraq Center for
Research and Strategic Studies, 51% of those polled "strongly
approved" of the ayatollah. In comparison, Sheikh Ghazi al-Yawar, the
new president, gained a 7.2% approval rating, while Ayad Allawi, the
PM, won 4.8%.
"Sistani is the most influential man in Iraq now," says Saadoun
al-Dulame, executive director of the centre.
Still, a nod of approval from the ayatollah may be only a temporary
respite, given the overwhelming problems facing the new govt.
"Sistani's support may give the govt some credibility for a wk or
2, but after that they will be judged on how they deal with Iraq's
problems," Mr Dulame says.
He warns that the transitional govt could meet the same fate as its
predecessor, the now defunct US-appointed Governing Council which was
widely scorned as a toothless puppet of the coalition authorities made
up of former exiles and political party leaders.
Certainly, the transitional govt has received a lukewarm reception
from the Islamic Cleric's Committee, created last y to champion the
interests of the Sunni community.
"The composition of the new interim govt is no surprise to us.
It lacks sovereignty and has limited movements. I hope that they won't
do something that might keep the occupation in place longer," Sheikh
Hareth al-Dhairi, the head of the Committee, said in a statement.

Pachachi says he may seek Iraq presidency
Dubai, UAE (AP/Guardian).  Adnan Pachachi, passed over for the post of
Iraq's interim president, said Thu he may run for the office when his
country's transition from US occupation to democracy is complete.
Pachachi also said his candidacy for the interim presidency was
defeated by a "conspiracy" by some members of the Governing Council
"who did not like my ideas ... about democracy and secularism."
Ghazi Mashal Ajil al-Yawer, a Sunni Muslim tribal leader, was named to
the largely ceremonial post of president this wk after gaining the
support of most members of the council.
Pachachi, seen as the favourite candidate of the US, turned down the
post in the face of opp'n on the council.
Asked in a telephone interview with The Associated Press if he would
run for presidency in a future govt to be selected after upcoming
elections, Pachachi said, "I may, it's quite possible."
He said he may run for a seat in the nat'l assembly that will be
created by the elections to be held no later than Jan 31. The
assembly is to choose a new president and govt.
Pachachi, a foreign minister in the govt toppled in 1968 by former
Iraqi leader Saddam Hussein's Baath party, said he thought he had been
"the most qualified" to hold the presidency in the interim govt, which
takes power Jun 30.
He insisted that he was the candidate favoured by most Iraqis, based on
the widespread consultations led by UN envoy Lakhdar Brahimi, but a
group of council members subverted the process. He did not specify
which members, though he said in earlier comments to CNN that he was
opposed by Shiite members "and some of the Kurds."
"The law says that the selection of the members of the interim govt
shall be based on ... consultations with large segments of the Iraqi
population," he told AP. "This was done and on the basis of that
consultation I was offered the presidency."
But he said some council members "decided to frustrate, or oppose, my
candidacy for the presidency ... they wanted to hijack the whole
process by deciding things unilaterally by themselves against the law."
He added that he did not think al-Yawer was directly involved, "but I
am sure he was aware of what's going on, I think he was used."
Some council members accused the US of trying to force them to choose
Pachachi for the presidency.
Pachachi, who lived in exile in the Emirates during Saddam Hussein's
rule, came to the UAE city of Abu Dhabi on Wed.
Pachachi, a son of a former PM under the Iraqi monarchy, served as a
diplomat and envoy to the UN under several Iraqi govts before he was
appointed foreign minister in the govt that was toppled in 1968.

UN Council haggles over Iraq control of US troops
UN (Reuters).  Key UN Sec Council members and Iraq's foreign minister
said on Thu a new resolution must spell out how much authority Baghdad
would have over US troops when an interim Iraqi govt takes office on Jun 30.
France, Russia, China and Algeria say an amended draft of a US-Brit
resolution on Iraq's future is still too vague over the definition of
"sovereignty," particularly whether Iraqis can block major US military
operations.
But Sec of State Colin Powell said Iraq was a partner and would
not be given a veto over US troop movements. However, he and Brit
officials indicated they were receptive to new language to cover the
relationship between Iraq and the 160,000 US-led troops in the country.
Iraqi For Min Hoshiyar Zebari, who was to address the 15-member
council later on Thu, said "we need to have an input" into what he
called a "very important resolution."
Zebari, who has been meeting privately with several council members,
also said the resolution did not go "far enough" on how his new
interim govt would give its consent to a major operation by US-led
troops, diplomats said.
But in an interview with the Middle E Broadcasting Center, Powell
said, "You can't use the word 'veto."'
"There could be a situation where we have to act and there may be a
disagreement, and we have to act to protect ourselves or to accomplish
a mission."
He also told France 3 television that any language people wanted, to
make clear the new Iraqi govt would have sovereignty, "let's entertain it."
* CONSENT OF IRAQIS "PARAMOUNT"
The aim of the resolution is to get internat'l endorsement for the
formation of an interim Iraqi govt and to authorise a US-led
multinat'l force, which would be empowered to take "all necessary
measures" to keep the peace.
"The consent of the Iraqi govt on major operations by the multinat'l
force is of paramount important," Algeria's UN Ambassador Abdallah
Baali, the only Arab delegate on the council, told reporters.

Residents flee as fighting erupts in Iraq holy city
Najaff (Reuters).  Gunfire and explosions have erupted in the Iraqi
holy city of Najaff, sending 100s of people fleeing from the crowded
city centre streets.
Militiamen loyal to militant cleric Moqtada al-Sadr have been battling
US troops around Najaff for wks, but after a tentative truce
agreement last wk the streets of the city have been busier.
As Thu's violence began, shopkeepers hurriedly closed up and panicked
women and children raced from the area.
The fighting broke out as Sadr met leading Shiite politicians,
including former Governing Council member Ahmad Chalabi, for talks in
Najaff on ending violence in the city.
Sadr announced a wk ago he would withdraw his militiamen from Najaff
and the nearby town of Kufa, and in return the US military said it
would suspend offensive operations.
But the truce has failed to take hold and there have been frequent
skirmishes, particularly in Kufa.
In fighting in Kufa on Thu morning at least 5 Iraqis were killed,
hospital officials said.
The US military said in a statement 3 soldiers were wounded.
Iraq's top Shiite religious leaders have been highly critical of Sadr
for fighting in holy cities, but have also said the US military
response was heavy handed.
Washington is keen to resolve the stand-off in Najaff ahead of the
formal handover of sovereignty to an Iraqi govt at the end of this m.

Women, children killed in Iraqi city of Kufa
Kufa.  5 people have been killed and dozens injured in the latest
clashes in the Iraqi holy city of Kufa.  Civilians fled as explosions
sounded in the centre of Kufa. The US military says
soldiers came under fire as they searched a school.  Shiite militiamen
armed with RPGs and mortars attacked the US troops. The soldiers
returned fire.  Local doctors say women and children were among the
casualties.  There was also unrest in neighbouring Najaff. There were
several blasts near the cemetery as US tanks rolled into the city.
Najaff and Kufa have been the site of fierce fighting during the past m.
The unrest has continued despite a fragile cease-fire agreement.

Iraq demands veto on US military operations
NY (Reuters).  Iraq's Foreign Min has told the UN Sec Council that his
new govt wanted US-led troops to stay, but said Baghdad needed some
control over how long they would remain in the country.
However, Hoshiyar Zebari disagreed with France, Germany, China and
others who want a fixed deadline for the force's withdrawal, subject
to renewal.
He also opposed a veto over US-led military operations.  "I stress
that any premature departure of internat'l troops would lead to chaos
and the real possibility of a civil war in Iraq," he said.
US Sec of State Colin Powell earlier made clear Iraq would not be
given a veto over US troop movements.
In an interview with the Middle E Broadcasting Centre, Mr Powell said:
"You can't use the word 'veto'."
"There could be a situation where we have to act and there may be a
disagreement, and we have to act to protect ourselves or to accomplish
a mission," Mr Powell said.
Aussie troops in Iraq are under the operational command of the US military.
Mr Zebari was sent to New York to discuss a US-Brit draft resolution
expected to be adopted before Jun 30, when a new interim Iraqi govt
takes power.
* Resolution concerns
Several key council members are apprehensive they would be approving a
US occupation under another name.
The aim of the resolution is to get internat'l endorsement for an
interim Iraqi govt and to authorise a US-led multinat'l force
empowered to take "all necessary measures" to keep the peace.
The draft resolution gives no date for a pull out of the 180,000
US-led troops but says this would occur after a constitutionally-elected
permanent Iraqi govt takes office, perhaps in early 2006.
But Mr Zebari said Iraqi leaders, including the new interim govt,
should have the right to decide at any time when foreign forces should leave.
"I think we are going to need these forces for some time, but as a
sovereign govt this cannot be open forever," he said. "They are not
going to stay indefinitely."
However, he said a fixed date "would be very unhelpful" and be used by
those who wanted "chaos to prevail" because Iraqis could not handle
security without the foreign troops.
On major issues, Mr Zebari appeared to agreed with the main points of
the US-Brit resolution rather than its critics.
But US Ambassador John Negroponte said the text would still undergo
some "fine-tuning".
However, Mr Zebari said the resolution needed to be "unambiguous" in
allowing the interim govt to "have authority over security matters"
and "administer and manage Iraq's resources and assets".
* No vote scheduled
No vote has been scheduled on the resolution but US and Brit officials
would like one next wk, although council members could delay this.
Ambassadors from France, China and Algeria said Iraq should have the
right to block major US military operations.
"Can we run the risk of repeating the Fallujah scenario?" asked French
Ambassador Jean-Marc de la Sabliere referring to a bloody US assault
on insurgents few Iraqis supported.
Mr Zebari was cautious, making clear he did not want a veto over US
troops but that "we should have a say in endorsing this kind of operation".
Brit Ambassador Emyr Jones Paris proposed an Iraqi "nat'l security
council" that would tackle the big issues "and should work to get
agreement on precisely how the force should carry out certain operations".
This procedure is expected to be clarified in side letters rather than
in the resolution itself.
Russia's envoy Alexander Konuzin also questioned Iraq's authority over
US troops and invited the new Iraqi leaders to come to NY, indicating
he did not want a quick vote.
He also suggested UN inspectors search and monitor sites in the future
that could contain WMD.

Sadr loyalists to start Najaff "withdrawal"
Najaff (AFP).  Armed loyalists of radical Shiite leader Moqtada Sadr
are to start withdrawing from the holy central Iraqi city of Najaff and
its surroundings on Fri, their rep said after a meeting with Shiite officials.
Qais al-Khazaali said Sadr had met with the Shiite House, a grouping
of Shiite parties and religious authorities.
"Starting tomorrow we shall start or continue withdrawing any armed
presence and freeing all suspects" arrested by Sadr's militiamen, he
said at a press conference with Shiite representative Haidar al-Sufi.
The Shiite House would "choose some of its members to supervise"
application of a truce with US forces in specific districts, Mr Sufi said.
"We ask the governor of Najaff to deploy the police forces made up of
citizens of Najaff to bring security to the people.
"We ask the occupation forces and the Iraqi police to refrain from
making arrests and searches in Najaff province."
Sadr has offered to pull all militiamen who are not from Najaff out of
the shrine city provided US troops leave as well.
He has also asked for legal proceedings against him to be suspended
until there is an elected Iraqi govt, but coalition officials continue
to insist that he disband his private army and face justice.

Aid agency stops after attack
Kabul (AP).  Nobel Peace Prize-winning relief agency Medecins Sans
Frontieres halted its Afghan operations after 5 of its staff perished
in the deadliest attack on foreign aid workers since the fall of the Taliban.
The assault in NW Badghis province raised fears that insurgents
already choking development work in the S and E of the impoverished
country are now trying to stop the flow in the north.
Attackers using rifles and grenades shredded a 4wd Toyota
painted with the MSF's red logo, killing all 5 people inside: a
Norwegian doctor, a Dutch logistician, a Belgian project coordinator,
and their Afghan driver and translator.
"For the time being, our activities will be suspended nationwide," MSF
rep Vicky Hawkins told a news conference. "In the coming weeks we will
analyse this event in-depth, but for the moment our priority is to
take care of those most affected by this tragedy."
A purported Taliban rep, Mullah Abdul Hakim Latifi, claimed
responsibility for the attack. He threatened more attacks and claimed
that "internat'l aid workers were working for the policy of America."
There was no independent confirmation of that claim, which if true,
would be a worrying escalation in an insurgency that has claimed 100s
of lives this y despite the deployment of 9,000 extra US forces in
recent ms.
At least 33 aid workers have been killed in Afghanistan since Mar
last y -- mostly in rebel attacks in the lawless S and east. But
Taliban and al-Qaeda have rarely been active in the more stable N regions.
In a sign of continuing dangers in the south, an Afghan official said
that US and Afghan troops backed by American warplanes killed 13
Taliban militants in the mountains of Kandahar province and arrested 8
others. 2 US troops and one Afghan soldier were wounded. US military
could not immediately be reached for comment.
After the killings, MSF, which employs 80 expatriates and 1,400 local
people in 12 Afghan provinces, said it was pulling all of its foreign
workers back to Kabul, leaving local staff in place for emergency duties.
Bas Tielens, an MSF rep in Amsterdam, said other projects were
suspended until at least Mon. He wouldn't say if the group might pull
out of some areas altogether.
MSF is one of the most professional non-govt'l relief agencies and
often sets the trend for others. It has been in Afghanistan since
1979, where it provides basic health care and support to
hospitals. The organisation, also known as Doctors Without Borders,
won the Nobel Peace Prize in 1999.
Danish aid group DACAAR said it had ordered staff digging wells and
helping farmers in Baghdis to stay off the roads until it can reassess
security.
Its head of Afghan operations Gorm Pedersen said the possibility of
politically motivated attacks was "most worrying."
The UN immediately halted registration of voters in Badghis for
general elections planned for Sep and grounded its refugee agency
staff, but was continuing activities elsewhere in the country until
more was known about the attack.
"People will start to analyse if it's an unfortunate incident or the
start of a trend," said Anja de Beer of ACBAR, an umbrella group for
relief organisations in Afghanistan. If members pull back further, she
warned "people in isolated areas, whose need is enormous, will not be
helped, and that's deeply tragic."
US-backed Pres Hamid Karzai is under pressure ahead of the elections
over the slow pace of reconstruction in a country where an estimated
80% of the 27 mn Afghans still live in poverty, and average life
expectancy is 47 y.

North, S Korea agree to ease tensions
Seoul (AP).  N and S Korea agreed Fri on measures to ease military
tension along the Cold War's last frontier, according to a joint
statement released after all-night negotiations.
The military talks, which began a wk ago in N Korea, were the 1st time
that the generals from the former battlefield foes have met.
The 2 sides adopted a standard radio frequency and signalling system
for their navies and agreed to exchange data on illegal fishing. They
also decided to set up a hot line between the 2 sides to improve
communication.
They will also end propaganda efforts along their border -- via
loudspeakers and billboards -- by mid-Aug, the joint statement said.
"Both sides have agreed to jointly make efforts in order to ease
military tensions and achieve peace on the Korean Peninsula," the
joint statement said.
However, there was no discussion of troop pullbacks from one of the
most heavily fortified borders in the world. The tank traps, gun
emplacements and minefields remain in place, and a political solution
to the impasse remains distant.
At the opening meeting last wk, both sides agreed to discuss ways of
preventing naval clashes along their poorly marked W sea border. The
latest negotiations, held at the South's scenic Sorak Mountain,
followed up on those discussions. They began Thu morning and were
scheduled for only one day, but dragged into the night with both sides
failing to reach agreement.
The N Korean delegation headed home early Fri morning.
The talks came amid tension over N Korea's nuclear aspirations.
The 2 Koreas, the US and 3 other regional nations are hoping to meet
before m's end to discuss how to abolish the North's nuclear
programs, perhaps in exchange for giving the impoverished country
desperately needed economic or energy aid.
Both N and S want to avoid deadly naval firefights during the May-Jun
crab-catching season, when fishing boats from the 2 countries jostle
for position along the maritime border off the W coast. Navy boats
from the 2 sides fought in 1999 and 2002.
Generals from the 2 sides met last wk in the 1st such meeting since
the peninsula was divided more than a half-century ago. The 2 Koreas
technically remain at war because their 1950-53 Korean War ended
without a peace treaty.
North Korea agreed to the unprecedented military dialogue after ys
of S Korean efforts to use economic incentives to coax the Pyongyang
regime out of its isolation.
The 2 Korean militaries seldom hold talks, although their govts have
expanded economic and political exchanges in recent y. Their defence
ministers met in Sep 2000.
North and S Korea often accuse each other of violating the western
maritime border. The S recognises a border demarcated by the UN after
the end of the Korean War, but the N claims a boundary farther south.

Sharon expected to sack 2 foes to pass Gaza plan
Jerusalem (Reuters).  Israeli PM Ariel Sharon appeared set on Thu to
sack 2 hard line cabinet ministers after talks over a compromise on his
US-backed Gaza pullout plan got bogged down, political sources said.
Sharon summoned ministers from the Nat'l Union party, a small
coalition partner in the 23-member cabinet, for a meeting on Fri
morning, at which officials in his rightist Likud expect him to
dismiss them, the sources said.
The dismissals could give Sharon a narrow majority needed in a cabinet
vote on Sun to pass his plan to disengage from the Gaza Strip by
evacuating its 7,500 Jewish settlers living in 21 enclaves.
Tourism Min Benny Elon, a staunch opponent of the plan and one of
those called in by Sharon, accused the premier of trying "to create an
artificial majority" and told reporters he would comment further "only
if the threat is carried out."
The political crisis threatened to bring down Sharon's govt and some
officials envisaged the possibility of Israel holding new nat'l
elections in a few m.
Talks over a compromise to rescue the coalition appeared to bog down
late on Thu over hard-liners' demands for settlements in Gaza to
continue to receive state funding for construction even after the
disengagement plan is approved, the sources said.
Rebellious cabinet members were working toward a face-saving deal for
ministers to approve Sharon's plan to "disengage" from conflict in
Gaza "in principle," but agree to hold another vote in 6 m before any
settlements could actually be evacuated.
The dispute pitted Sharon against his main rival, Finance Min Benjamin
Netanyahu, and other hard-liners over his plan to pull out of some of
the territory Israel captured in the 1967 Middle E war.
Under Sharon's 4-stage proposal all Jewish settlements in the Gaza
Strip and 4 of 120 enclaves in the W Bank would be evacuated by the
end of 2005.
The US had pressed for Sharon's full plan to be implemented instead of
a watered-down version backed by Netanyahu.
Repeating a pledge made Wed, Sharon said he wanted to "keep the peace"
in the rightist Likud but would bring his plan to a vote no matter
what happens, and he expects it to pass.
* STRONG PUBLIC SUPPORT
"I intend to keep my commitment," Sharon told a Likud meeting on Thu
evening, several hrs before negotiations hit crisis.
Polls show a strong majority of Israelis willing to part with Gaza's
hard-to-defend settlements, where 7,500 Jews live cloistered from 1.3
mn Palestinians. But Likud party members voted down the idea as
rewarding "Palestinian terror."
The former general, nicknamed "The Bulldozer" for his hard-nosed
tactics, failed to muster enough votes last Sun and the cabinet
decision was postponed.
A compromise proposed by Likud deputies was aimed at allowing both
Sharon and recalcitrant Likud ministers to claim victory, by
stipulating that a 2nd vote be held on evacuating settlements in
another 6 m.
Left-wing critics assailed the idea. "This is a rotten compromise,"
Yossi Sarid, head of the Meretz party, told Israel Radio. "This is a
meatball without meat, chicken soup without the chicken, a concert
without music."
Negotiations among Likud leaders, brokered by cabinet minister Tzipi
Livni, broke down after Sharon's threat to fire the 2 rightist
ministers, sources said.
Livni held out a hope afterwards that "we can reach agreement," but
Edu Min Limor Livnat of Likud said the talks were over.
"We tried to prevent a split of the Likud and a breakup of the
govt. Unfortunately, the PM has decided otherwise," Livnat told Israel Radio.
Palestinians would welcome withdrawal from any of the land they seek
for a state, but they suspect Sharon's unilateral plan is just a ruse
to strengthen Israel's hold on chunks of the W Bank where the bulk of
Jewish settlements have been built.

Israeli whistle blower asks court to lift travel ban
Jerusalem (Reuters).  Nuclear whistle blower Mordechai Vanunu has asked
the Israeli High Court to lift a ban on him leaving the country.  Mr
Vanunu says he poses no security threat after serving an 18-y
prison term for treason.  He is required to stay in Israel as part of
his conditions of his parole.  The Association of Civil Rights in
Israel has filed a petition with the Israeli High Court on Mr Vanunu's
behalf.  Mr Vanunu was abducted by Israeli agents and jailed in 1986
after discussing his work at the Dimona atomic reactor with a Brit newspaper.

Israeli Army exits Gaza camp
Gaza (BBC).  The Israeli Army has ended its latest search operation in
the Rafah refugee camp in the Gaza Strip.  The operation lasted just
over 24 hr.  Initially around 30 Israeli tanks and bulldozers moved in
and took control of 2 of Rafah's S neighbourhoods.  The Army says a
tunnel was found during the search.  It says it was dug from the
courtyard of an abandoned house and ran some 250 metres under the
frontier.  The troops blew it up and moved out of Rafah a few hrs
later.  Local people say the manoeuvring Israeli tanks ruptured pipes
and damaged the streets, and that 6 buildings were totally destroyed.
They say that altogether 70 people have been left homeless.

Troops end E Timor mission
Dili.  The last of AUS's infantry personnel have returned from East
Timor, marking the end of the military operation that began in 1999.
Members of the Bris-based 6th Battalion arrived home this evening,
although about 100 soldiers will remain in the new nation to assist
the UN with engineering and logistics.  Defence Force Chief Peter
Cosgrove and junior Defence Min Mal Brough were on hand to welcome the
troops.  Mr Brough says AUS should be proud of the troops' efforts.
"Gen Cosgrove and I were over there only last m," he said.  "They
are held in the highest regard by the E Timorese.  "I think every
Aussie can be very proud of the work they've undertaken and the way
they've returned democracy to this fledgling nation."

Canada Anglicans affirm same-sex couples
St Catherines, Ont.  Despite tabling a plan to bless same-sex unions, the
Anglican Church of Canada approved a resolution of support for members
of the church who are in same-sex relationships.
The Anglican Church of Canada made a strongly supportive move on
behalf of its GLBT members Thu, approving a resolution specifically
telling same-sex partners that they are welcome in the church and that
their relationships are affirmed.
The resolution was approved by representatives at the General Synod,
the church's highest governing body, at its triennial meeting in St
Catherines, Ontario.
The language of the measure, which was passed in an uncontested show
of hands, says the church affirms "the integrity and sanctity of
committed adult same-sex relationships."
"I'm pleased," said Chris Ambidge, president of the Toronto chapter of
Integrity Canada, an organisation working toward inclusion of GLBT
Anglicans. ""Real progress was made for gays and lesbians in the life
of the Anglican Church of Canada over the last 2 days."
The resolution is likely to ruffle feathers elsewhere in the 77-mn
member worldwide Anglican Communion. Many members of other Anglican
churches around the world hold to the view that homosexuality is
contrary to Scripture.
"The number one concern for us is how the internat'l community is
going to react to this," Chris Hawley, rep for a conservative church
group called Anglican Essentials told globeandmail.com.
"Canadian Anglicans don't want to be set adrift in the Anglican Communion."
Some Anglican churches distanced themselves from the US branch of
Anglicanism, the Episcopal Church, when members consecrated openly gay
bishop, V Gene Robinson, last y.
Many Canadians saw Thu's resolution as a compromise. On Wed, synod
delegates voted to defer a separate decision on same-sex blessings
until the group's next meeting in 2007. That measure, had it passed,
would have let each diocese decide whether priests could bless
same-sex unions.
The diocese of New Westminster, which includes the city of Vancouver,
Brit Columbia, authorised same-sex blessings on its own in 2002.
Ambidge told the PlanetOut Network he was disappointed the motion on
blessing same-sex unions was tabled, but said the good news for GLBT
people is the church did nothing to stop other diocese from making
that decision independently, as the New Westminster diocese has done.
But Ambidge said the big news for GLBT Anglicans in Canada was Thu's
resolution to affirm committed same sex relationships.
"That toothpaste won't be able to go back in the tube," he said.
If you'd like to know more, you can find stories related to Canada
Anglicans affirm same-sex couples.

Canada to send another $US4.4 mn to Sudan
Ottawa (AFP).  Canada announced a new aid tranche of $6.1 mn
[$US4.4 mn] for Sudan, where a civil war in the W Darfur region has
created a humanitarian crisis.  AFP/Think/File Photo The new money
brings to $22 mn in Canadian aid for Darfur since Oct.
The aid goes to the Internat'l Committee of the Red Cross, the
World Food Program, the UN and to non-govt'l organisations after Thu's
UN appeal to 27 countries meeting in Geneva.  Violence has continued
in Darfur despite a 45-day renewable ceasefire signed Apr 8 by the
Sudanese govt and Darfur rebels in a bid to halt fighting that erupted
in Feb 2003.  The UN said 700,000 to 800,000 people lack the bare
essentials to survive the coming m in Darfur and that more than $236 mn
is needed this y.

Archbishop denies approving UK royal wedding
London (Reuters).  The Archbishop of Canterbury has denied a media
report which says he has given his approval for Brit's
heir-to-the-throne Prince Charles to marry his lover Camilla Parker
Bowles in church. The Times newspaper reports Dr Rowan Williams,
spiritual head of the world's 70 mn Anglicans, has dropped his
objections to the 2 divorcees remarrying.
But a rep for Dr Williams has denied the claim.
"There have been no developments involving the Archbishop in relation
to this matter," the rep said.
The newspaper reported that a close friend of the prince said the
wedding would not take place before completion of an inquiry into the
1997 death in a car crash of his 1st wife, Princess Diana.
Marriage is a difficult issue for the couple because, as king, Charles
will become Supreme Governor of the Church of England.
The newspaper's report coincides with its serialisation of extracts
from the memoirs of Williams' predecessor as Archbishop, George Carey,
who says he would welcome Charles and Camilla's marriage.
"Their love is deep and goes back many, many ys. Whatever the
rights and wrongs of their earlier behaviour, it is surely time to
formalise a relationship that is in all but name a marriage," former
archbishop Carey said.
The 2 had a 2-y love affair after 1st meeting in 1971 but Camilla
then married cavalry officer Andrew Parker Bowles, divorcing him in 1995.
Charles admitted in a 1994 television confession that he and Camilla
had resumed their affair after his marriage to Diana had irretrievably
broken down.
Prince Charles' rep declined to comment on the reports.

Govt moves to boost rail freight
Canberra.  The Fed Govt is planning to dramatically increase the
amount of freight travelling by rail across AUS.  An agreement has
been signed so the Fed Govt-owned Aussie Rail Track Corporation will
manage rail freight AUS-wide.  Qld is not included in the agreement,
but it has been described as a significant milestone because it is the
1st time freight operators can deal with a single management body.
Fed Transport Min John Anderson says a coordinated track network means
rail can triple its freight capacity.  "I would like to see around a
3rd of freight travelling up the east coast on rail, at the moment it
struggles to get between about 10 and 15%," he said.  Mr Anderson says
growth for freight travelling by rail will not adversely affect the
trucking industry.

Reserve Bank predicts housing "cooling phase"
Canberra.  The Reserve Bank says the slowing in the Aussie housing
market still has some way to go.  Central bank governor Ian Macfarlane
has told Fed Parliament's economics committee that prices are indeed
falling.  Yesterday the Bureau of Statistics published house price
indexes showing they had risen 2.5% around AUS in the Mar quarter,
with MEL the only city to show a decline.  Reserve Bank Governor Ian
Macfarlane commented on the situation today.  "More recently, we
received very strong evidence that housing prices have not only slowed
their rate of increase, but have fallen in level terms so far this
y, this has occurred in most state capital cities," he said.  Mr
Macfarlane says potential house buyers do not need to rush in for fear
of missing out and investors should question their assumptions about
easy capital gains.  "We expect that the housing market will continue
to go through a much needed cooling phase for some time yet," he said.

Building approvals unexpectedly rise
Canberra.  Building approvals have bounced back, recording an
unexpected rise in Apr.  The market was expecting approvals to stay in
negative territory.  After falling in Mar, the number of homes given
the go ahead climbed 1.5% in Apr, defying economists' predictions of a
another fall.  There was a small drop in the number of private sector
houses approved, but apartments and townhouses propped up the figures,
with a 5.7% rise.  TD Securities chief strategist Steven Koukoulas
says building approvals have been remarkably resilient.  "Particularly
given we know that the housing market is going through something of a
downturn and there's an excess supply of dwellings, so we're a little
surprised to see building approvals going up in the month," he said.
The value of residential building climbed 5% to more than $3 bn.

Qld ATSIC council applaud Senate inquiry
Cairns (AAP).  Plans to refer a bill abolishing ATSIC to a Senate
committee would block the fed govt's rush to destroy a democratic
voice for indigenous Aussies, ATSIC regional councillors said.
Legislation abolishing the peak indigenous body was passed by the
House of Representatives.
The Aboriginal and Torres Strait Islander Commission Amendment Bill
now moves to the Senate where Labor, Green, Democrat and Independent
senators have indicated they would push for a Senate committee inquiry.
Meeting in Cairns, ATSIC regional council chairs from Qld welcomed
such plans as a chance to push for a continuing nat'ly-elected voice
for indigenous people.
"The Senate is reflecting the wishes of the indigenous community to
review the govt's decision and put the brakes on the obscene rush that
this govt is in to destroy a democratic voice for indigenous Aussies,"
the council chairs said in a statement.
Cairns and District Regional Council chairman Terry O'Shane said the
inquiry meant the govt would have to justify its decision.
He said the govt had spent $1 mn on a review of ATSIC but had ignored
its recommendations, instead announcing plans to abolish the organisation.
PM John Howard had said ATSIC could not demonstrate improvements in
health, education and employment for indigenous people, Mr O'Shane said.
"But the truth is we have no responsibility for those 3 portfolio
areas," he said.
"If we can improve the outcomes coming from those [govt] depts and
link it in to the outcomes that are being achieved at a regional
council level, I think we're in a win-win situation."
ATSIC's Townsville Regional Council chairman Eddie Smallwood said only
15% of funds for indigenous people was channelled through ATSIC programs.
"I would like to see the accountability of other agencies that have
had all these funds and what achievements they have come up with when
they say we haven't had achievements.
"We have had achievements, the work-for-the-dole scheme is a great
achievement for our indigenous people," Mr Smallwood said.
"If changes are made and ATSIC no longer exists after 2005, what we've
got to make sure is there is still an indigenous body in place to
fight for our rights.
"We have to have a nat'l voice, not just a regional voice."
ATSIC regional councils, which are due to be phased out by the middle
of next y under the fed govt's plans, would be making submissions to
the proposed Senate inquiry.

NSW defends speedy anti-terror laws
Sydney.  The NSW Govt has been accused of "ramming" through a bill
designed to make it much tougher for people to get bail if they are
accused of terrorism-related offences.
The bill was rushed through in half a day and will be law by lunchtime.
The Govt says it makes no apology for moving quickly to get the bill passed.
It was raced into the Parliament yesterday on the back of a SYD
court's decision to grant a man bail.
He had been charged under the Fed Govt's new terrorist offences.
Under the bill, there will now be a presumption against bail for
anyone charged with such an offence.
The changes were whisked through the lower house in a matter of
minutes, but struck some opp'n in the Upper House among the cross bench.
Greens MP Ian Cohen labelled the changes Draconian and questioned
their haste.
"[They were passed at] a rate which doesn't allow for proper debate,"
he said.
Prisons Min John Hatzsistergos has defended the bill, saying it does
not mean the accused will never get bail, but will have to convince
the court why they should.

Appeal scheduled for terror suspect granted bail
Sydney.  The Supreme Court of NSW will hear the Commonwealth
Prosecution's appeal against the bail granted to a SYD terrorist
suspect later this m.  Lakemba man Bilal Khazal was granted bail on
Wed after appearing in SYD's Central Local Court on a charge of making
or collecting documents likely to facilitate terrorist acts.  The
DPP's appeal has been listed for hearing in the Supreme Court on the
Jun 16.  The decision to grant Mr Khazal bail has already prompted
the State Govt to change legislation so there is now a presumption
against bail for people charged with terrorism offences.

SA Speaker "under fire" from Govt
Adelaide.  The position of Peter Lewis as SA Parliamentary Speaker is
under question again, following extraordinary scenes in the Lower
House yesterday.
Press reports this morning say the Rann Govt is close to withdrawing
its support for Mr Lewis as Speaker.
The revelations follow a bitter clash between Mr Lewis and Deputy Prem
Kevin Foley.
Mr Lewis was upset at a ministerial statement being delivered Mr
Foley, also the Police Min.
Mr Foley was quoting from the Police Commissioner to reject Liberal
leader Rob Kerin's claims that a possible homicide case was ignored by police.
Mr Lewis told Parliament it was unclear which parts of the statement
were directly quoting the Commissioner.
When Mr Foley went on to describe the Opp'n allegations as reckless
and uninformed, the Speaker ordered an apology.
"Well sir, what am I being asked to apologise for?" Mr Foley asked.
"Order, the Deputy Prem will withdraw and apologise without condition,"
Mr Lewis replied.
"Oh, I apologise and I withdraw profusely Mr Speaker," Mr Foley said.
But the Speaker was not satisfied.
"Without condition, and that will be the last opportunity the Deputy
Prem gets," he said.
Mr Foley apologised a total of 3 times.

Bracks defends overseas trip despite corruption probe
Vicn Prem Steve Bracks leaves tomorrow for a 2-wk trip to the US and Israel.
Melbourne.  Mr Bracks says it is entirely appropriate that he goes
overseas, at a time when police corruption is making daily headlines.
"We have given the Ombudsman more powers and more resources and said
that our door was open for even more resources, and that has
happened," he said.  "We gave powers which allowed him to have a
special investigation into any matter, that has happened, we are
giving the Chief Commissioner the powers of a crime commission, that
is being drafted and will be considered in the next session of
Parliament."  The Prem will visit San Francisco to attend the Bio 2004
conference, and will join the Aussie American Leadership Dialogue in
Washington.  He leaves behind the Ombudsman, who admits he is in
effect, a royal commissioner, to start weeding out the corruption he
believes still exists in the police force.

CASA to step up airline inspections
Canberra.  The Civil Aviation Safety Authority (CASA) will conduct
more inspections of Aussie airline companies, after a study ID-ed
potential risks in the industry.
The fed body already conducts 6-monthly audits and spot checks.
CASA has identified potential risks in the airline industry, and will
conduct the new checks in addition to its usual audits.
Rep Peter Gibson says the new safety checks will be an additional
measure and will target specific areas.
"The Civil Aviation Safety Authority has done some detailed analysis
of where the potential risks lie in the airline industry and the first
area we've come up with is maintenance control," he said.
"So we're going to go out and look at every airline, 40 of them right
across AUS, in depth in this area, to get a snap shot of how the
industry is performing."
He says it is important to be vigilant as the industry expands.
"Clearly there is increasing activity across the aviation sector in
AUS," he said.
"We've got Jetstar just started up, Virgin Blue expanding all the
time, Qantas still performing strongly ... all this means of course is
we need to keep a very good eye on safety right across the board.
"These new spot checks will give us yet another tool for making sure
we do that."

Ruddock questions Vic phone tapping bill
Canberra.  Vicn Govt plans to give the Ombudsman the power to use
phone tapping devices to investigate police corruption may be stalled
by the Fed Govt.
Prem Steve Bracks told State Parliament yesterday the Ombudsman's
powers will be extended to include phone interceptions in the next
session of Parliament.
It is part of the Govt's plan to boost his powers to investigate
police corruption.
Fed A-G Philip Ruddock says phone tapping is regulated by the
Commonwealth.
"To announce that the Ombudsman would be would be given these
additional powers when it is not within the Vicn Govt's competence to
deal with it, and before any approach has been made in relation to the
matter...I think is foolish," he said.
"It would be very significant for the Commonwealth to be affording the
Ombudsman with these sorts of powers.
"Ombudsmen don't have these sorts of powers in any other state."
Mr Ruddock says he has not received a request by the Vicn Govt to make
the changes.
A rep for Vicn A-G Rob Hulls says the request will be made and the
State Govt does not expect the Fed Govt to stand in the way of the
fight against police corruption in Vic.

Row emerges over authority to tap phones
Philip Ruddock says the Vicn Govt has not contacted him with regard to
phone-tapping laws.
Canberra.  A political row has erupted over Vic's plans to give the
ombudsman the power to intercept phone calls for the investigation
into police corruption.
The Fed Govt has raised doubts about granting the powers.
The hurdle emerged after the Bracks Govt announced additional powers
for the ombudsman including phone tapping.
Fed A-G Philip Ruddock appears to favour an anti-corruption commission
in Vic but says it was a foolish announcement for the State Govt to make.
State A-G Rob Hulls is accusing Mr Ruddock of playing politics.
"It's essential to clean up any corruption in the police force and if
the Fed Govt refuses to assist, it will be on their head," he said.
Mr Ruddock says phone tapping is regulated by Commonwealth laws and
authorised by the Fed Govt and he has not been approached by the Vicn Govt.
Mr Hulls says there are no legal barriers to the ombudsman granted the powers.
"It needs a slight amendment to the Vicn Fed Act to put in," he said.
Vicn Police Min Andre Haermeyer is also urging Mr Ruddock to cooperate.
"It's a question of whether the Commonwealth wants to cooperate in
getting to the bottom of a serious police corruption issue or whether
it wants to play politics with the issue and I just implore Mr Ruddock
stop playing politics with this issue," he said.

Customs seize huge drug shipment
Perth.  Customs officials at the W Aussie port of Fremantle have
seized what is believed to be one of the largest hauls of cannabis in
the country.  600 kg of cannabis has been discovered in a sea
container at the port.  The compressed cannabis was contained in 340
plastic packages.  It is understood dockside workers discovered the
haul on Wed and notified authorities.  Fed police officers have now
secured the haul along with the container.  No arrests have been made
but inquiries are continuing.  Customs Min Chris Ellison has hailed
the find as a great victory in the war on drugs but will not say where
the container came from.  "That is a matter which is part of the
investigation," he said.  "We know the country from where the
container has come from but for operational reasons we're not
divulging it at this stage."

New virus "targeting bank accounts, credit cards"
Bonn, Germany.  German authorities have alerted computer users to a
new Internet virus targeting bank accounts and credit cards.
It bears a striking resemblance to the Sasser worm that disabled mns
of systems worldwide last m.
The Fed Office for Security in Info Technology (BSI) in the western
city of Bonn said the new Korgo virus exploited security loopholes in
the Microsoft operating system Windows.
Like Sasser, Korgo does not require to users to open an e-mail to
unleash its destructive capability but can attack anyone connected to
the Internet.
According to trade magazine PC Professionell, Korgo primarily seeks
out online banking passwords and credit card numbers.
It said affected users should change all their passwords and cancel
their credit cards.
The virus has attacked Microsoft operating systems including Windows
98, Me, NT, 2000 and XP. Microsoft has uploaded protection "patches"
to shield computers against Korgo, the BSI said.
"We are working on the assumption that only a small group of users has
been affected because most people acted to protect themselves after
Sasser," said a Microsoft rep in Germany, Thomas Baumgaertner.
An 18-yo German man confessed last m to creating that Sasser worm. He
faces up to 5 y in prison.

{{
9 am
2 more US Marines have been sent to jail for abusing Iraqi prisoners.

The Olympic Flame has started winding its way through the streets of
suburban SYD, only its way across 6 continents to Athens.  Cathy
Freeman -- the 400 SYD gold medallist -- kicked off the first leg from
the Opera House this morning.

A Vic MP who headed a drug abuse committee has been forced to resign
after being booked for drink-driving.

Following Saudi Arabia's pledge to increase production by 2 mn bdp,
oil prices have continued to retreat from record highs.

PM John Howard ha been given the "presidential treatment" in Washington.
While his trip to the US was officially to discover whether Aussies at
Guantanamo Bay had been abused, and to speed up their trials, the main
reason was to emphasise his strop ties to Pres Bush.  At a press conf
on the Rose Garden, Pres Bush strongly attacked Opp'n leader Mark
Latham's pledge to pull Aussie troops out of Iraq by the end of
2004. The policy would be "disastrous" claimed Mr Bush.  The Pres
promised he would "look into" claims Aussie detainees had been abused.

CIA dir George Tenet has resigned "for personal reasons".
Officially, Tenet says he wants to spend more time with his son.
Tenet had assured the Bush Whitehouse that Saddam Hussein continued
to develop WMD during the 1990s and finding evidence of it would be a
"slam dunk".  At an emotional press conf Tenet said he and his son
will be going to high school together.

10.45 am
The All Ords is down at 3,464.  The AUD is trading around 69.09 US c.
It fell below 68 c last night after weak GDP numbers published
yesterday.  The turn around came as the RBA governor Macfarlane told a
committee markets had over-reacted to the Mar GDP figures, and
indicated the central bank was maintaining its tightening bias.

In Brit, a 120 kg sturgeon has been confiscated from a fisherman after
he tried to sell it. The fisherman said he didn't know what it was
when he caught it in Swansea Bay. But after discovering it was a
"royal fish", he had offered it to QE2. She declined. After he tried
to auction it at a local market, police moved in. The sturgeon is a
protected fish.

There's still disagreement over a UN Res authorising the new interim
Iraqi govt. The US says there's "no question" about an Iraqi veto over
military operations, but other Sec Council members are insisting major
operations need to be at least be authorised by the UNSC.

5 people have been killed and dozens injured in clashes in Kufa, Iraq.
Witnesses say they heard several blasts in the C of the city.  US
cmdrs say their soldiers came under fire as they searched a school.
Insurgents fired on them with mortars and RPG's.  A woman and children
were among the cas.  In Najaff, several blasts were heard nr the huge
cemetery.  Unrest continued dispute a ceasefire agreement.

11.30 am
It was 15 y ago today when a lone student faced down a Chinese tank
in C Beijing.  China's rulers continue to deny any wrong-doing in the
Tiananmen [sic] massacre. A dozen dissidents are under house arrest for this
y's anniversary. Several more are under continuous surveillance.
Beijing says no public commemoration will be allowed.  It remains
unknown how many students were killed when the govt cracked down on
the democracy demonstration.

A 50 yo Brit teacher has been shot dead in C Pakistan.  The man had
been teaching English at a local school for 8 y.  He was killed while
sitting in the lounge room of his rented house.

Midday.
A SA man whose son is being held by the US military at Guantanamo Bay
is sceptical about assurances that his son's treatment is being investigated.

A fed govt dept has revealed both Aussies being held at Guantanamo Bay
in Cuba have raised allegations of abuse with Aussie officials.

CIA director George Tenet has resigned and will leave the intel agency
in Jul.  Tenet, whose resignation was announced by US Pres George W
Bush on Thu, over-saw US intel as it grappled with a transition from
the Cold War to a war on global terrorism.

E Timor says it is willing to reach a compromise with AUS to solve a
long-running territorial dispute over seabed oil and natural gas
deposits between the 2 countries.

OPEC has agreed to raise oil output by 2 mn bpd (8%) in a
bid to ease crude prices from $US40/bbl.

The Defence Dept has announced an internal investigation after
revelations earlier this wk that military officers were aware of
concerns about the serious mistreatment of Iraqi prisoners last y.

The Fed Govt is unable to find a agreement covering the handling of
Iraqi detainees captured by Aussie soldiers.

The Fed Opp'n and the Greens have little confidence in an internal
Defence Dept investigation into the Iraqi prisoner abuse scandal.

US Pres George W Bush says an Aussie troop withdrawal from Iraq by
Christmas would be "disastrous".

The Fed Opp'n is standing by its promise to withdraw AUS's troops from
Iraq by Christmas if elected, even though US Pres George W
Bush says that would be "disastrous".

The US is trying soften allegedly harsh and inflammatory criticism of
the coalition in Iraq that is expected to be contained in a UN human
rights report to be released this wk, US officials said.

6.30 pm
The ALP is continuing its call for a full inquiry into the detention
of Aussies in Guantanamo Bay.  Yesterday, a Senate Committee was told
both men informed the DFAT last y they had been tortured when first
detained in Afghanistan.

The Iraqi FM has called on the UN to give Iraq full sovereignty after
the Jun 30 hand-over. But he stopped short of demanding a veto over US
military operations in the country.  Before the UN, he stressed that an
early pull-out of any more foreign troops would threaten the country's
stability, possibly leading to civil war.

5 Iraqi civilians and several al-Sadr militants have been killed in
Najaff, once again threatening the fragile ceasefire there.  A mortar
attack on the Italian embassy in Baghdad is now known to have killed 1
Iraqi and injured several other civilians.

While OPEC has promised to produce an extra 2 mn bpd, and perhaps more
later, some analysts are saying the cartel hasn't gone far enough.
Oil prices have only declined modestly.

The All Ords has closed up only 1 pt.  The AUD is lower at 69.10 US c.

10.30 pm
Israeli PM Sharon has sacked 2 right-wing members of his Cabinet who
opposed his revised Gaza pull-out plan. The move had been expected.

In NY, the Nielsen media ratings agency has been forced to think again
before converting from its "Nielsen families" system to using people
meters.  A rating group said it would not accredit the people meter
system.  Minorities in NY claimed the new system would bias the
sampling.  CBS criticised the new system, afraid it would lose
advertising revenues under the changes.  Networks must refund
advertisers if they don't reach a guaranteed minimum audience. Fox
execs also reportedly criticised Nielsen.

At 2.30 am local time last night, some residents in Washington state
were entertained by the apparently re-entry of some galactic debris.
Observers report a bright, white light, which slowly changed to red
over a period of about 10 secs.

11 pm
Pres Bush has met with the Pope at the Vatican on his first full day
in Italy.  Afterward, the Pope read out a statement about the
transition to self-rule in Iraq, and negotiations between the Israeli
govt and Palestinians.  In the streets of Rome, Italians are gathering
to protest over GWII. 10,000 riot police have been called in, to
ensure an extremist element don't gain control of the mob.

A 2nd top official at the CIA is expected to step down.  The Dep Dir
of Operations reportedly decided wks ago to retire.  The decision is
not related to George Tenet's resignation.  Both men had been widely
criticised for the CIA's failures prior to 9/11, and the WMD intel
that led to the US-led invasion of Iraq.

10s of 1000s of people in HK are observing a commemoration of the
Tiananmen Square massacre, 15 y ago today. The mood is sombre.
Parents with children and businessmen in suits are present.  The
demonstrators are calling for "full democracy" in HK.

In Singapore, US Def Sec Rumsfeld has called on Asian countries to
begin the hunt for local terror groups in earnest.  Rummy says he
wants to see US forces helping in the hunt ASAP.  He said the only way
to deal with terrorism is to recognise it is truly global.

In Caracas, there's been an outbreak of violence after opponents of
Pres Chavez managed to gather enough signatures for a recall election.
A police officer has been killed and bullets were fired into the
office of the city's mayor.

There's been a blast nr railway tracks in S Russia.  Reports
are confused. Some say 1 tonne of TNT was exploded in a bomb attack.
Other reports say it was a gas explosions.

11.15 pm
56 yo Laurie Brereton has announced he is quitting politics.  ABC TV
says it understands Brereton's wife is unwell.

Strong employment data in May has seen an impressive 1.2 mn jobs added
since the start of the y. Retail sales were up 6% for the m.  Some
economists are predicting the Fed will have to raise int rates
suddenly to catch up. In London, the FTSE is up 0.3%.

11.30 pm
BBC World Service.  A new UN report condemns the US treatment of Iraqi
prisoners, but says the invasion has ended the human rights abuses of
Saddam Hussein.  It says in many respects the Coal'n has failed in its
role as an occupying force.

The US has welcomed news from Caracas there will be a recall election
for Pres Hugo Chavez.
}}
========================================
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All speling macroizated for correctitood by Mcrosotf Speelchek.

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