From the World-Wide Resourses of the Western Australia Reserch Senter(*) OIL THE NEWS THAT FITS MY VIEWS #220 =============================== 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: The Undeniable Evidence: Even More Uneniable Evidence: US Centcom News Releases: Iraqi Body Count: [11,132 as at 05 Jul 2004]. UN Mailing List: Some Of The News, Some Of The Time: This Stuff Blogged: Also Kindly Archived: ------------------------------------------------------------ Selecting latest news stories and other data for you... ------------------------------------------------------------ How moral would the internat'l community be, to leave Saddam Hussein in power. -- Aussie FM Alex Downer, 15 Jul 2004. 35 years was long enough! In producing a paper like that ["the September dossier"], it's obviously not the words of an academic institute. It's the words of a govt. -- FM Downer, 15 Jul 2004. Apparently govt's should be known to over-inflate the evidence, hide the equivocations, and present unreliable 3rd-hand rumour as "indisputable fact". So it's not lying. The Australian Govt knows Iraq still has chemical and biological weapons. -- PM John Howard, 2002. The def'n of "know" generally requires the thing "known" is true, as well as there being reason to believe it is true. Butler finds neither of these things obtained. ---------------------------------------- Tue, 13 Jul 2004. HEADLINES: Hunt for killer shark called off 9 killed in African mine collapse Iraq oil sabotage may be 'inside job': officials Oversight body reports to UN on Iraqi oil sales UN announces new Iraq envoy Philippines announces Iraq pullout New Iraq security laws raise concerns Latham 'betting each way' on Iraq Islamic group threatens to attack Iraq-bound ships Iraq leader threatens death to militants Govt to increase troop numbers in Iraq Conclusions of Senate's Iraq report CIA bungling on Iraq tells only half the story Bush defends Iraq war, says US safer 8 times Bush Defends Decision to Invade Iraq Arms suppliers scramble into Iraq ALP's Iraq policy is expedient: PM 'New Beatles songs' found in Vic ACT orders kangaroo cull Apple hits 100 mn iTunes mark Aust left out of FBI loop before Bali Awaiting intel report, Blair vows to fight on Baby humpback dies after stranding Beazley rules out leadership challenge Brit shuts down floating duty-free outlet C'wealth accuses state of failing in canker outbreak Cable car mooted for Mt Wellington Canada begins 2004 with smaller $C788 mn surplus Costello criticised for flying Tas visit Drugs furore puts Athens team on hold Forecasters spot 'unusual' climate swing Govt changes refugee visa rules Govt drops stricter Internet gambling proposal Govt overhauls rules on residency Govt shift gives refugees hope of staying Govt urged to restructure Medicare Hijack bid was 2nd attempt, court hears How to free a hostage Kemp to quit politics Koizumi defiant after electoral upset Latham moves to boost US relations MP says Territory should consider nuclear dump Millions homeless from S Asia floods Morgan Stanley settles US gender bias suit Muslim activists campaign against headscarf rulings NT may be in line for nuke dump: MP Orange parade ends in violence Police say Internet meeting led to robbery Professor's plea for books for Baghdad Uni yields huge donations Protesters disrupt AIDS summit Rates talk returns as business picks up Rebels clash with police in Baghdad SARS antibodies offer new treatment Sharon offers Labour opp'n coalition deal Sisters found on tiny Torres Strait island Student dies in misdirected Kashmir blast Study shows immigrant divide Submarine spills soot into SA river Tech stocks fall on Wall St War by folly Woman found dead next to baby son Oversight body reports to UN on Iraqi oil sales UN. Sec-Gen Kofi Annan has transmitted to the Sec Council a new report on the Internat'l Advisory and Monitoring Board for Iraq (IAMB), which serves as an audit oversight body dealing with the country's oil revenues. Currently, the IAMB monitors the Development Fund for Iraq (DFI), which holds the proceeds from Iraq's petroleum exports, as well as remaining balances from the UN Oil-for-Food programme and other frozen Iraqi funds. The DFI was managed by the US-led Coalition Provisional Authority (CPA). The update, provided by UN Controller Jean-Pierre Halbwachs, who represents the UN on the Board, points to a number of concerns raised by the internat'l auditing firm KPMG, which was hired by the IAMB. Those concerns, already made public and communicated to the CPA, include "a lack of adequate control over the extraction of crude oil" from Iraq. The CPA subsequently took steps to correct this situation, according to the report. Also of concern were "sole-sourced contracts" that were awarded without any competitive bidding process. In Jun, the CPA told the IAMB that it would move towards an audit sought by the Board to address the issue. With the restoration of sovereignty to Iraq at the end of Jun, adjustments are being made to adapt the IAMB's work accordingly, the report states. The IAMB comprises representatives of the Arab Fund for Economic and Social Development, the IMF, the UN and the World Bank. The Board serves to promote the objectives laid out by Sec Council resolution 1483 which, in part, underlined that the DFI "shall be used in a transparent manner to meet the humanitarian needs of the Iraqi people, for the economic reconstruction and repair of Iraq's infrastructure, for the continued disarmament of Iraq, and for the costs of Iraqi civilian Admin," as well as for other purposes benefiting the Iraqi people. Iraq oil sabotage may be 'inside job': officials Attacks show sophisticated understanding of system's vulnerabilities Baghdad (TheStar). Saboteurs launching attacks on Iraq's oil and electricity infrastructure appear to be employees working in the industry or others acting on inside info, reconstruction officials said today. A W diplomat in Baghdad said the "precise" targeting of especially vulnerable or valuable portions of the oil and electricity systems -- and even a sewage treatment plant -- has increased the damage to critical infrastructure beyond what would be expected from random attacks. The diplomat declined to reveal the sections that had been sabotaged. Interim PM Iyad Allawi has blamed such attacks for a nationwide loss of power of more than 4 hr a day. Iraq's pipelines transport crude oil for export and also carry it to oil-fired power generators that provide domestic electricity. Allawi said saboteurs have attacked vital oil pipelines 130 times in the last 7 m, causing 100s of mn of dollars in damage and lost revenues, hindering Iraq's efforts to rebuild and adding to the hardships of average Iraqis. The W diplomat said insurgents were suspected of using blackmail and threats to coerce Iraqi workers to launch attacks or to provide info on vulnerable locations in the country's oil pipelines and electric power lines. Funding and info for the sabotage also may be flowing into Iraq from other countries, the diplomat said. Oil Min Thamer al-Ghadban told Dow Jones Newswires today that his ministry would extend for "a few months" a contract with S African security contractor Erinys Internat'l that was set to expire in less than a month. Al-Ghadban said he would also expand the 14,000-member Iraqi force created to protect the infrastructure. Steve Wright, a rep for the US Army Corps of Engineers, said sabotage of key infrastructure appears to have been planned before the US-led invasion last y by members of Saddam Hussein's govt. In some cases, Iraqi oil wells were wired to be set on fire. In the m after the invasion, saboteurs -- suspected of being insiders -- set fire to a computerised control room for a liquid propane gas plant as well as the plant's warehouse, damaging $mns in equipment, he said. Elsewhere, a water treatment plant used in Iraq's oil industry was sabotaged, Wright said. Even a repaired sewage treatment plant was sabotaged -- probably by insiders, the W diplomat said. Now, Iraqis hired by the Army Corps of Engineers to work in Iraq's oil and electric infrastructure have to go through background checks overseen by the new US Embassy, Wright said. Arab tribal leaders living nr pipeline routes are also being hired to protect the lines, he said. Attacks in N Iraq have hamstrung exports from the country's oil pipeline to Ceyhan, Turkey, with the line opening only intermittently before saboteurs' bombs sever it again. That N pipeline, which accounts for only a small fraction of oil exports, has been closed since it was severed by a blast a m ago. 3 major attacks also temporarily halted exports from southern Iraq, which handles 90% of Iraq's oil exports. Guerrilla fighters also have targeted foreign experts the coalition has contracted to help carry out technical repairs and bring in badly needed spare parts. And last m, insurgents ambushed and killed the security chief for Iraq's N Oil Company, Ghazi Talabani. Police officials said 5 men arrested in connection with the assassination belonged to Ansar al-Islam, a Kurdish group believed linked to al-Qaeda. Tech stocks fall on Wall St The Nasdaq index lost 9 points overnight. NY/Sydney. Technology stocks have been under pressure again on Wall Street but mainstream companies have seen their share prices move broadly higher. As the quarterly profit season starts to get into full swing, the broking house Merrill Lynch has downgraded its investment rating on computer chip maker Intel and cut its recommendation on the global semiconductor sector more generally. Prices on the high-tech Nasdaq market are down about 0.5% overall. The Nasdaq composite index has dropped 9 points to 1,937. However a late pull-back in oil prices has brought some relief on the NYSE. The DJIA has closed 25 points higher at 10,238. On the Brit share market, prices are back in decline. Pharmaceutical leader GlaxoSmithKline is down almost 2% in the latest session with a key asthma drug failing to achieve hoped-for sales volumes. Marks & Spencer has lost more than 1% of its value as it mounts a defence to the takeover bid of billionaire Philip Green. London's FT-100 index has dropped 33 points to finish at 4,360. The Aussie market yesterday opened the wk with a small fall. Woolworths shares slipped to $11.51 as Aussie Leisure & Hospitality Group recommended shareholders reject the Woolworths takeover offer. The All Ords lost 5 points to 3,554. The AUD is being quoted at 72.74 US cents which is up 0.25 of a cent on yesterday's local close. On the cross-rates, it is at .5861 euros, 78.76 Japanese yen, 39.07 pence sterling and against the NZ dollar it is at 1.101. The gold price is at $US407.25/oz. West Texas crude oil is trading at around $US39.30 US/bbl. Canada begins 2004 with smaller $C788 mn surplus Ottawa (Reuters). Canada's monthly budget surplus narrowed in Apr to $C788 mn ($597 mn) from a surplus of $C993 mn in the same m a y earlier, the Finance Dept said on Mon. The Apr 2003 surplus was revised up from a previously reported $C424 mn due to monthly accrual accounting, the statement said. Year-over-year, revenues were up $C237 mn, or 1.6%, while spending rose $C445 mn, or 4.0%. The fiscal y begins on Apr 1 and Canada is the only member of the Group of 7 rich industrialised nations to still report a surplus. Morgan Stanley settles US gender bias suit Sex discrimination case settled. NY (AFP). US securities giant Morgan Stanley has settled a sex discrimination lawsuit for $74 mn, just as opening arguments were due to begin in what would have been a landmark trial. The settlement contained no admission or denial of wrongdoing on the part of the Wall Street firm, which stood accused of passing over senior women employees in its institutional equity division for promotion and salary increases. "We hope that the settlement sends a message to other firms that discrimination will not be tolerated," Judy Keenan, a lawyer for the US Equal Employment Opportunity Commission (EEOC), which brought the suit against Morgan Stanley in Sep 2001, said. Under the agreement, $55 mn will go to a fund that will consider claims from present and former female employees who believe they were the subject of discrimination. More than 300 women had joined the class action suit against the company. "We are proud of our commitment to diversity, and would like to thank the EEOC staff for working with us to conclude this matter in such a positive way," Morgan Stanley chairman Philip Purcell said. "We look forward to working with the EEOC in accomplishing our common goals," Mr Purcell said. Another $16.5 mn will go to Allison Schieffelin, the lead plaintiff and a former convertible bond sales representative, whose complaint to the commission in 1998 that she had been passed over for promotion triggered the investigation of Morgan Stanley. The company fired Ms Schieffelin in 2000, a move she argued was prompted by her complaint. "I am happy that this case has been settled to the satisfaction of all the parties," Ms Schieffelin said. The final $2.7 mn will be used to provide anti-discrimination training at Morgan Stanley. The company also undertook to appoint an internal ombudsman and an outside monitor, perform promotion and compensation analyses, maintain a complaint data base and implement programs to address the promotion and retention of women. The jury had been selected on Fri and opening arguments had been scheduled for Mon when the settlement was suddenly announced following intense negotiations over the weekend. It would have been the 1st time a Wall Street firm had defended itself in court against a gender bias lawsuit filed by the fed commission. 2 previous attempts by the judge to urge an out-of-court settlement had ended in failure. The case differed from others of its kind in that many of the plaintiffs held snr positions at the associate, VP and managing director levels. As well as the salary and promotion issue, EEOC lawyers alleged that women were groped and excluded from male-only outings to strip clubs with clients. Apple hits 100 mn iTunes mark Apple chief Steve Jobs says iTunes is the leading legal music download site. LA (Reuters). Apple Computer has sold 100 mn songs on its US iTunes Music Store, the maker of the iPod and Macintosh computer says. Apple says the figure solidifies its position as the leading legal music download site. When Apple launched the music store last Apr, chief executive and co-founder Steve Jobs set a goal of selling 100 mn songs in one year. The company missed that mark, selling more than 70 mn songs in the 1st 12 m. Tracks cost 99 US cents each and can be exported to Apple's popular iPod and iPod mini digital music players. In a statement, Mr Jobs said: "iTunes quickly outpaced the competition and is far and away the world's number one online music service." Apple, which reports third-quarter financial results on Wed, has already sold more than 3 mn iPods, which range in cost from $US249 to $US499, depending on their capacity. Apple has been selling virtually every iPod it has made but it has a hard time keeping up with demand for the iPod mini. Hitachi, which makes the one-inch four-gigabyte hard drives for the iPod mini, is boosting production of the drives by the end of the y. The iPod mini will be available internat'ly on Jul 24. Previously, Apple had said it would start selling the device internat'ly in Apr but delayed the introduction because of tight supplies of the drives. The 100 millionth song, Somersault (Dangermouse remix) by Zero7, was purchased on Sun by Kevin Britten, 20, of Hays, Kansas. In accordance with a promotion Apple announced recently, Mr Britten will receive a 17-inch PowerBook notebook computer, a 40-gigabyte iPod and a gift certificate for 10,000 iTunes songs. Mr Jobs himself telephoned Mr Britten to congratulate him, an Apple rep said. Last month, Apple launched the iTunes Music Store in Brit, France and Germany, selling more than 800,000 tracks in its 1st week. Brit shuts down floating duty-free outlet London (AFP). A yachtsman selling duty-free alcohol and cigarettes from a boat anchored 21 km off England's E coast has vowed to take Brit Customs to court after they detained his floating store. Phil Berriman, 46, was selling alcohol and cigarettes, which on shore are taxed heavily by the Brit Govt, from his aptly named 22-metre schooner, Rich Harvest, until Customs officers intervened on the weekend. "They came on board and said the agreement they had was null and void and were seizing the stock," said Berriman, who is from Stockton-on-Tees in NE England. Customers have had to sail out across the N Sea to reach the shop off the coast of nearby Hartlepool but once aboard could buy leading brands of cigarettes and spirits for a fraction of the mainland shop price. Mr Berriman and business partner Trevor Lyons, 53, a marine law expert, had hoped to make up to 20,000 pounds a wk from the enterprise. The business had been averaging about 8 customers a day and even had a night-time visit from a jet ski rider after distributing leaflets to fishermen and boat clubs giving the boat's coordinates. Millions homeless from S Asia floods Delhi (Independent). More than 2 mn people have been forced to abandon their homes in NE India amid the worst floods for more than a decade in S Asia. In Bangladesh, across the border, as many as 3 mn people were believed to be marooned inside their flooded homes, unable to escape. At least 241 people have been killed across the region since flooding began in Jun, and the death toll has risen sharply in the past few days as several rivers have burst their banks. A 3rd of Bangladesh is now affected by the floods, and there are fears that if there is more rain, the waters could advance on the capital, Dhaka. India's NE states have been cut off from the rest of the country by land, after road and rail links were submerged. There have been flash floods in neighbouring Nepal, where landslides have cut routes from the capital, Kathmandu, to other parts of the country. In the Indian state of Assam, the chief minister, Tarun Gogoi, issued an SOS call to the central govt for help as the massive Brahmaputra river burst its banks, calling for 7 helicopters and at least 300 rubber dinghies to rescue people marooned by the floods. Mr Gogoi said: "Nearly 11,000 houses across the state have been washed away, while an estimated 400,000 other homesteads have been damaged by the worst-ever floods in the area's history." On Fri, 350 children in the state had to be air-lifted to safety by an Indian air force helicopter after their school was inundated by the waters. Mns are now sleeping rough in tents on dry stretches of roadway across Assam. Others around the region have taken to the roofs of their homes to escape the rising waters. As well as the danger of drowning, people are at risk from building collapses and water-borne diseases. Other dangers include electrocution from power lines collapsing into the flood waters, and the threat of 1000s of snakes trying to flee the advancing waters. The area, criss-crossed with an extraordinary number of rivers, is prone to flooding. The Brahmaputra river, which flows through Assam and into Bangladesh, looks more like a sea than a river even when it has not burst its banks. This year, after extremely heavy monsoon rainfall a dam on one of the rivers upstream in Bhutan burst under the weight of water, sending a huge wave of extra water into the swollen rivers. Student dies in misdirected Kashmir blast New Delhi. A student has been killed and about 30 people injured in 2 separate attacks by suspected Muslim rebels in Indian-administered Kashmir. A police rep says a grenade aimed at a bunker of soldiers missed its target and exploded among pedestrians, killing a student and injuring numerous others. The attack took place in the N Handwara town in Kupwara district, which borders Pakistan-administered Kashmir. In a separate incident, suspected rebels threw grenades and opened fired on an Army convoy, injuring several people, including three soldiers and 6 civilians. This incident took place in the Hyderpora area in Srinagar, the summer capital of Indian Kashmir. 9 killed in African mine collapse Congo (ABC, Sally Sara). A uranium mine has collapsed in the Democratic Republic of Congo killing up to 9 miners. Rescue workers are trying to recover the bodies of the victims. The roof of the mine collapsed trapping at least 30 miners underground and although some of the men were pulled to safety, others were crushed to death. The cause of the accident is unknown. The Shinkolobwe mine was officially closed by the Congolese Govt, but up to 6,000 illegal miners have been digging at the site nr the Zambian border. Govt officials have called for internat'l help to seal off the area, amid fears that uranium could be sold to terrorist groups. Uranium from the mine was used by the US to make the atomic bombs that were dropped on Japan at the end of World War II. Conclusions of Senate's Iraq report Report on the prewar intel assessments Washington (MSNBC). Below are the Senate Intel Committee report's conclusions on pre-war intel failures in Iraq, as released. (Portions of the conclusions were blacked out, by the committee, prior to public release.) SELECT COMMITTEE ON INTELLIGENCE UNITED STATES SENATE REPORT ON THE US INTELLIGENCE COMMUNITY'S PREWAR INTELLIGENCE ASSESSMENTS ON IRAQ CONCLUSIONS OVERALL CONCLUSIONS -- WEAPONS OF MASS DESTRUCTION (U) Conclusion 1. Most of the major key judgements in the Intel Community's Oct 2002 Nat'l Intel Estimate (NIE), Iraq's Continuing Programs for WMD, either overstated, or were not supported by, the underlying intel reporting. A series of failures, particularly in analytic trade craft, led to the mischaracterisation of the intel. (U) The major key judgements in the NIE, particularly that Iraq "is reconstituting its nuclear program," "has chemical and biological weapons," was developing an unmanned aerial vehicle (UAV) "probably intended to deliver biological warfare agents," and that "all key aspects -- research & development (R&D), production, and weaponisation -- of Iraq's offensive biological weapons (BW) program are active and that most elements are larger and more advanced than they were before the Gulf War," either overstated, or were not supported by, the underlying intel reporting provided to the Committee. The assessments regarding Iraq's continued development of prohibited ballistic missiles were reasonable and did accurately describe the underlying intel. (U) The assessment that Iraq "is reconstituting its nuclear program" was not supported by the intel provided to the Committee. The intel reporting did show that Iraq was procuring dual-use equipment that had potential nuclear applications, but all of the equipment had conventional military or industrial applications. In addition, none of the intel reporting indicated that the equipment was being procured for suspect nuclear facilities. Intel reporting also showed that former Iraqi nuclear scientists continued to work at former nuclear facilities and organisations, but the reporting did not show that this cadre of nuclear personnel had recently been regrouped or enhanced as stated in the NIE, nor did it suggest that they were engaged in work related to a nuclear weapons program. (U) The statement in the key judgements of the NIE that "Baghdad has chemical and biological weapons" overstated both what was known and what intel analysts judged about Iraq's chemical and biological weapons holdings. The intel reporting did support the conclusion that chemical and biological weapons were within Iraq's technological capability, that Iraq was trying to procure dual-use materials that could have been used to produce these weapons, and that uncertainties existed about whether Iraq had fully destroyed its pre-Gulf War stocks of weapons and precursors. Iraq's efforts to deceive and evade UN weapons inspectors and its inability or unwillingness to fully account for pre-Gulf War chemical and biological weapons and precursors could have led analysts to the reasonable conclusion that Iraq may have retained those materials, but intel analysts did not have enough info to state with certainty that Iraq "has" these weapons. (BLACKED OUT) Similarly, the assessment that "all key aspects -- R&D, production, and weaponisation -- of Iraq's offensive BW program are active and that most elements are larger and more advanced than they were before the Gulf War" was not supported by the underlying intel provided to the Committee. Intel showed that Iraq was renovating or expanding facilities that had been associated with Iraq's past BW program and was engaged in research that had BW applications, but few reports suggested specifically that the activity was related to BW. Intel reports did indicate that Iraq may have had a mobile biological weapons program, but most of the reporting was from a single human intel (HUMINT) source to whom the Intel Community (1C) never had direct access. It was reasonable for intel analysts to be concerned about the potential weapons applications of Iraq's dual use activities and capabilities. The intel reporting did not substantiate an assessment that all aspects of Iraq's BW program "are" larger and more advanced than before the Gulf War, however. (BLACKED OUT) The key judgement in the NIE that Iraq was developing a UAV "probably intended to deliver biological warfare agents" also overstated what the intel reporting indicated about the mission of Iraq's small UAVs. Numerous intel reports confirmed that Iraq was developing a small UAV program BLACKED OUT, but none of the reports provided to the Committee said that Iraq intended to use the small UAVs to deliver chemical or biological weapons. The Air Force footnote, which stated that biological weapons delivery was a possible mission for the small UAVs, though other missions were more likely, more accurately reflected the body of intel reporting. (U) The failure of the IC to accurately analyse and describe the intel in the NIE was the result of a combination of systemic weaknesses, primarily in analytic trade craft, compounded by a lack of info sharing, poor management, and inadequate intel collection. Many of these weaknesses, which are described in detail below, have not yet been fully addressed, despite having been identified previously by other inquiry panels, including the Joint Inquiry into Intel Community Activities Before and After the Terrorist Attacks of Sep 11, 2002 (2002), The Intel Community's Performance on the Indian Nuclear Tests (The Jeremiah Report, 1998), and the Report of the Commission to Assess the Ballistic Missile Threat to the US (The Rumsfeld Commission, 1998). The Committee found no evidence that the IC's mischaracterisation or exaggeration of the intel on Iraq's weapons of mass destruction (WMD) capabilities was the result of political pressure. (U) Conclusion 2. The Intel Community did not accurately or adequately explain to policymakers the uncertainties behind the judgements in the Oct 2002 Nat'l Intel Estimate. (U) One of the key failures in analytic trade craft of the Nat'l Intel Estimate (NIE) was the failure of the Intel Community (1C) to explain the details of the reporting and the uncertainties of both the reliability of some key sources and of intel judgements. Intel analysts are not only charged with interpreting and assessing the intel reporting, but with clearly conveying to policymakers the difference between what intel analysts know, what they don't know, what they think, and to make sure that policymakers understand the difference. This articulation of the IC's responsibility to policymakers is widely attributed to Colin Powell when he was serving as the Chairman of the Joint Chiefs of Staff, but the effective communication of judgements has been accepted as a primary analytic function for decades. For example, in 1964, Sherman Kent, considered the founder of intel analysis as a profession, wrote about the importance of using appropriate words of estimative probability to "set forth the community's findings in such a way as to make clear to the reader what is certain knowledge and what is reasoned judgement, and within this large realm of judgement what varying degrees of certitude lie behind each key statement."' 1Sherman Kent and the Board of Nat'l Estimates: Collected Essays, Http://www.odci.gov/csi/books/shermankenVinst.html). From 1952 to 1967, Sherman Kent was the Chairman of the Board of Nat'l Estimates, which would later become the Nat'l Intel Council. (U) At the time the IC drafted and coordinated the NIE on Iraq's weapons of mass destruction (WMD) programs in Sep 2002, most of what intel analysts actually "knew" about Iraq's weapons programs pre-dated the 1991 Gulf War, leaving them with very little direct knowledge about the current state of those programs. Analysts knew that Iraq had active nuclear, chemical, biological, and delivery programs before 1991, and had previously lied to, and was still not forthcoming with, UN weapons inspectors about those programs. The analysts also knew that the UN was not satisfied with Iraq's efforts to account for its destruction of all of its pre-Gulf War weapons, precursors, and equipment. Additionally, the analysts knew that Iraq was trying to import dual-use materials and equipment and had rebuilt or was continuing to use facilities that had been associated with Iraq's pre-Gulf War weapons programs, and knew that WMD were likely within Iraq's technological capabilities. (U) The IC did not know whether Iraq had retained its pre-Gulf War weapons, whether Iraq was intending to use those dual-use materials and facilities for weapons or for legitimate purposes, or even if Iraq's attempts to obtain many of the dual-use goods it had been trying to procure were successful. The IC thought that Iraq had retained its pre-Gulf War weapons and that Iraq was using dual-use materials and facilities to manufacture weapons. While this was a reasonable assessment, considering Iraq's past behaviour, statements in the 2002 NIE that Iraq "has chemical and biological weapons," "Iraq has maintained its chemical weapons effort," and "is reconstituting its nuclear weapons program," did not accurately portray the uncertainty of the info. The NIE failed in that it portrayed what intel analysts thought and assessed as what they knew and failed to explain the large gaps in the info on which the assessments were based. (BLACKED OUT) In the cases in the NTE where the IC did express uncertainty about its assessments concerning Iraq's WMD capabilities, those explanations suggested, in some cases, that Iraq's capabilities were even greater than the NIE judged. For example, the key judgements of the NIE said "we judge that we are seeing only a portion of Iraq's WMD efforts, owing to Baghdad's vigorous denial and deception efforts. Revelations after the Gulf War starkly demonstrate the extensive efforts undertaken by Iraq to deny info. BLACKED OUT" While this did explain that key info on Iraq's programs was lacking, it suggested that Iraq's weapons programs were probably bigger and more advanced than the IC had judged and did not explain that BLACKED OUT analysts did not have enough info to determine whether Iraq was hiding activity or whether Iraq's weapons programs may have been dormant. (U) Accurately and clearly describing the gaps in intel knowledge is not only important for policymakers to folly understand the basis for and gaps in analytic assessments, but is essential for policymakers in both the executive and legislative branches to make informed decisions about how and where to allocate Intel Community resources to fill those gaps. (U) Conclusion 3. The Intel Community (1C) suffered from a collective presumption that Iraq had an active and growing WMD (WMD) program. This "group think" dynamic led Intel Community analysts, collectors and managers to both interpret ambiguous evidence as conclusively indicative of a WMD program as well as ignore or minimise evidence that Iraq did not have active and expanding WMD programs. This presumption was so strong that formalised IC mechanisms established to challenge assumptions and group think were not utilised. (U) The Intel Community (1C) has long struggled with the need for analysts to overcome analytic biases, that is, to resist the tendency to see what they would expect to see in the intel reporting. In the case of Iraq's WMD (WMD) capabilities, the Committee found that intel analysts, in many cases, based then- analysis more on their expectations than on an objective evaluation of the info in the intel reporting. Analysts expected to see evidence that Iraq had retained prohibited weapons and that Iraq would resume prohibited WMD activities once UN' (UN) inspections ended. This bias that pervaded both the IC's analytic and collection communities represents "group think," a term coined by psychologist Irving Janis in the 1970's to describe a process in which a group can make bad or irrational decisions as each member of the group attempts to conform their opinions to what they believe to be the consensus of the group. IC personnel involved in the Iraq WMD issue demonstrated several aspects of group think: examining few alternatives, selective gathering of info, pressure to conform within the group or withhold criticism, and collective rationalisation. (U) The roots of the IC's bias stretch back to Iraq's pre-1991 efforts to build WMD and its efforts to hide those programs. The fact that Iraq had repeatedly lied about its pre-1991 WMD programs, its continued deceptive behaviour, and its failure to fully cooperate with UN inspectors left the IC with a predisposition to believe the Iraqis were continuing to lie about their WMD efforts. This was compounded by the fact that Iraq's pre-1991 progress on its nuclear weapons program had surprised the 1C. The role this knowledge played in analysts' thinking is evident in the 2002 Nat'l Intel Estimate's (NIE) introduction which said, "revelations after the Gulf War starkly demonstrate the extensive efforts undertaken by Iraq to deny info. The revelations also underscore the extent to which limited info fostered underestimates by the Intel Community of Saddam's capabilities at that time." This bias was likely further reinforced by the IC's failure to detect the Sep 11th terrorist plot and the criticism that the Community had not done all it could to "connect the dots." (U) The IC had long assessed that Iraq maintained its ambitions to obtain WMD, and would seek to resume full WMD efforts once UN sanctions and inspections ended. Accordingly, after UN inspectors left Iraq in 1998,1C analysts began to look for evidence that Iraq was expanding WMD programs. Analysts interpreted ambiguous data as indicative of the active and expanded WMD effort they expected to see. The presumption that Iraq would take advantage of the departure of inspectors to restart its WMD efforts essentially became a hypothesis in search of evidence. (BLACKED OUT) The IC's bias was compounded by the fact that prior to 1998, the IC had become heavily dependent on UN info on the state of Iraq's WMD programs. When the IC lost this important info, analysts were forced to rely on less reliable and less detailed sources. For example, BLACKED OUT reporting during UN inspections often described the BLACKED OUT. These reports provided IC analysts with much insight BLACKED OUT. Intel reporting after inspectors departed relied on less direct sources of info such as satellite imagery of activity at suspect facilities, fragmentary and ambiguous reports of Iraqi dual-use procurement efforts, and reporting of suspicious or prohibited activity from human sources who were no longer in the country. These indirect sources left the IC with few ways to determine the exact nature of suspicious Iraqi activity. The expectation, however, that Iraq would take advantage of the departure of inspectors to resume and expand its WMD programs led analysts to downplay or ignore the increased uncertainty that came with these less detailed and less reliable sources. (BLACKED OUT) The Committee found that the IC had a tendency to accept info which supported the presumption that Iraq had active and expanded WMD programs more readily than info which contradicted it. This was evident in analysts' assessments of Iraq's attempts to procure dual-use materials and activities at dual-use facilities. Dual-use materials and facilities are those which could be used in a WMD program, but which also have conventional military or legitimate civilian applications. The IC properly noted the potential threat embodied in these dual-use capabilities, should they be fumed toward WMD purposes, and did an effective job of analysing BLACKED OUT Iraq's attempts to purchase dual-use equipment and materials to show how they could advance Iraq's WMD capability. But, the IC fell short by accepting most reporting of dual-use material imports or capabilities as intended for WMD programs. Info that contradicted the IC's presumption that Iraq had WMD programs, such as indications in the intel reporting that the dual-use materials were intended for conventional or civilian programs, was often ignored. The IC's bias that Iraq had active WMD programs led analysts to presume, in the absence of evidence, that if Iraq could do something to advance its WMD capabilities, it would. (BLACKED OUT) Another example of the IC's tendency to reject info that contradicted the presumption that Iraq had active and expanded WMD programs was the return of UN inspectors to Iraq in Nov 2002. BLACKED OUT When these inspections did not find evidence of active Iraqi WMD programs and in fact, even refuted some aspects of the IC's nuclear and biological assessments, many analysts did not regard this info as significant. For example, the 2002 NIE cited BLACKED OUT Iraq's Amiriyah Serum and Vaccine institute as BLACKED OUT reasons the IC believed the facility was a "fixed dual-use BW agent production" facility. When UN inspectors visited Amiriyah after their return to Iraq in Nov 2002, however, they did not find any evidence of BW work at the facility, BLACKED OUT. Analysts discounted the UN's findings as the result of the inspectors relative inexperience in the face of Iraqi denial and deception. Similarly, when Internat'l Atomic Energy Agency (IAEA) inspectors returned to Iraq in late 2002, one of their key lines of work was to investigate Iraq's claims that aluminium tubes it was trying to procure were intended for artillery rockets. The IAEA found that Iraq's claims that the aluminium tubes were intended for artillery rockets was completely consistent with the evidence on the ground in Iraq. The Central Intel Agency (CIA) responded to the IAEA's analysis by producing intel reports which rejected the IAEA's conclusions. Without giving many details of the IAEA's findings, ClA's analysis suggested that the IAEA was being fooled by Iraq, and reiterated ClA's assessment that the tubes were to be used in uranium centrifuges. (U) Intel analysts' presumption that all dual-use activity was intended for WMD programs recurs throughout the 2002 NIE. Analysts believed that the fact that Iraq often attempted to obtain dual-use materials surreptitiously, through front companies and other illicit means in violation of UN sanctions, indicated that Iraq intended to use those materials for WMD. Analysts argued that Iraq would have no reason to hide itself as the end user of these materials if they were intended for legitimate purposes. However, analysts ignored the fact that Iraq typically used front companies and evaded UN sanctions for imports of purely legitimate goods. Analysts who monitored Iraq's compliance with the Oil for Food Program noted several reasons that Iraq wanted to avoid legitimate channels for imports including 1) the UN often denied materials needed for legitimate purposes because the materials had WMD applications, 2) using the UN's bureaucratic process was more cumbersome and tune consuming than using illicit channels, and 3) transactions using front companies were less transparent, making corruption and profit taking easier for Iraqi managers and officials. (U) Likewise, analysts were predisposed to identify as suspect any activity by scientists and officials involved in Iraq's pre-1991 WMD programs. While the IC should not have ignored the activity of these people, IC analysts failed to fully consider the possibility that Iraq, having spent significant nat'l resources developing their capabilities, might have been seeking non-WMD purposes to fully employ the idle expertise left over from closed WMD programs. (BLACKED OUT) The presumption that Iraq had active WMD programs affected intel collectors as well. None of the guidance given to human intel collectors suggested that collection be focused on determining whether Iraq had WMD. Instead, the requirements assumed that Iraq had WMD, and focused on uncovering those activities and collecting against the extent of Iraq's WMD production and the locations of hidden stocks of weapons. A former manager in the CIA's Iraq WMD Task Force also told Committee staff that, in retrospect, he believes that the CIA tended to discount human intel (HUMINT) sources that denied the existence of Iraqi WMD programs as just repeating the Iraqi party line. In fact, numerous interviews with intel analysts and documents provided to the Committee indicate that analysts and collectors assumed that sources who denied the existence or continuation of WMD programs and stocks were either lying or not knowledgeable about Iraq's programs, while those sources who reported ongoing WMD activities were seen as having provided valuable info. (BLACKED OUT) The presumption that Iraq had active WMD programs was so strong that formalised IC mechanisms established to challenge assumptions and "group think," such as "red teams," "devil's advocacy," and other types of alternative or competitive analysis, were not utilised. The Committee found no evidence that IC analysts, collectors, or managers made any effort to question the fundamental assumptions that Iraq had active and expanded WMD programs, nor did they give serious consideration to other possible explanations for Iraq's failure to satisfy its WMD accounting discrepancies, other than that it was hiding and preserving WMD. The fact that no one in the IC saw a need for such tools is indicative of the strength of the bias that Iraq had active and expanded WMD programs. The Committee does not regard theBLACKED OUT analysis on Iraq's aluminium tubes performed by CIA contractors as an attempt to challenge assumptions, but rather as an example of the collective rationalisation that is indicative of "group think." The contractors were only provided with info by CIA, did not question agencies about their analysis, were not briefed by other agencies about their analysis, and performed their analysis of a complex intel issue in only one day. (U) The IC's failure to find unambiguous intel reporting of Iraqi WMD activities should have encouraged analysts to question their presumption that Iraq had WMD. Instead, analysts rationalised the lack of evidence as the result of "vigorous" Iraqi denial and deception (D&D) efforts to hide the WMD programs that analysts were certain existed. The 2002 NIE's introduction stated that "we judge that we are only seeing a portion of Iraq's WMD efforts owing to Baghdad's vigorous D&D efforts." The intel provided to the Committee showed that Iraq was making efforts to hide some activity, but the reporting was not clear about what activity was being hidden or why it was being hidden. Although the IC lacked unambiguous reporting of either active WMD programs or a vigorous D'&D effort to hide WMD programs, the assumptions that Iraq was engaged in both were tied together into a self-reinforcing premise that explained away the lack of strong evidence of either. (U) Conclusion 4. In a few significant instances, the analysis in the Nat'l Intel Estimate suffers from a "layering" effect whereby assessments were built based on previous judgements without carrying forward the uncertainties of the underlying judgements. (U) The Committee defines "layering" as the process of building an intel assessment primarily using previous judgements without substantial new intel reporting. While this process is a legitimate and often useful analytic tool in making logical connections between intel reports and in understanding complex analytic problems, the process can lose its legitimacy when the cumulative uncertainties of the underlying assessments are not factored into or conveyed through the new assessments. (U) In discussions with the Committee about his experience running the Iraq Survey Group, Dr David Kay suggested that the 1C's mind set before Operation Iraqi Freedom concerning Iraq's WMD (WMD) programs was a train that seemed "to always be going in the same direction." The IC drew on very few pieces of new evidence to reach large conclusions in which new pieces of evidence would accrete to the previous conclusion and pieces that did not fit tended to be thrown aside. (U) One example of this layering effect occurred in the IC's analysis of Iraq's chemical weapons program. The NIE assessed that Iraq had renewed production of chemical weapons agents and stockpiled as much as 500 metric tons of chemical agent, much of it added in the last y. These assessments were largely based on another assessment, that Iraq may have been engaged in chemical weapons transshipment activity in the spring of 2002. This assessment was largely based on yet another assessment, that the presence of a specific tanker truck was a possible indicator that chemical or biological weapons related activities were occurring. The IC did not make it clear in its latter assessments that its judgements were based on layer upon layer of previous analytic judgements. This gave the reader of the NIE the impression that Iraq's chemical weapons program was advancing and growing, but did not convey that the assessment was based on very little direct or credible intel reporting. (BLACKED OUT) Similarly, the IC based its judgement that "all key aspects -- research & development (R&D), production, and weaponisation -- of Iraq's offensive biological weapons (BW) program are active and that most elements are larger and more advanced than they were before the Gulf War" primarily on its assessment that Iraq had mobile biological production vans. While this assessment was based on direct intel that indicated Iraq had mobile biological production units, the reporting was largely from a single source to whom the Intel Community did not have direct access. The Committee believes that the IC's expectation that Iraq would move to mobile biological weapons production, focused their attention on reporting that supported that contention and led them to disregard info that contradicted it. This exemplifies Dr Kay's concerns that the IC made large new conclusions based on only a few pieces of new evidence that were joined to previous conclusions and that pieces that did not fulfil its expectations tended to be thrown aside. (U) These are just two, of many, examples of this layering effect the Committee found in the IC's analysis of Iraq's WMD programs. The Committee recognises the importance of analysts' ability to perform this type of analytic extrapolation, particularly in trying to "connect the dots" of sometimes seemingly disparate pieces of intel. Incorporating and accurately explaining the cumulative underlying uncertainties inherent in that process is equally important, however. (U) Conclusion 5. In each instance where the Committee found an analytic or collection failure, it resulted in part from a failure of Intel Community managers throughout their leadership chains to adequately supervise the work of their analysts and collectors. They did not encourage analysts to challenge their assumptions, fully consider alternative arguments, accurately characterise the intel reporting, or counsel analysts who lost their objectivity. (U) This report describes a variety of serious analytical and collection failures in the Intel Community's (1C) work on Iraq's weapons of mass destruction programs. While not in any way diminishing the responsibility of the analysts and collectors that were directly involved, the Committee believes that blame for these failures can not be laid at their feet alone. hi each instance, the analysts' and collectors' chains of command in their respective agencies, from immediate supervisors up to the Nat'l Intel Council and the Director of Central Intel, all share responsibility for not encouraging analysts to challenge their assumptions, fully consider alternative arguments or accurately characterise the intel reporting. They failed to adequately question and challenge analysts about their assessments, and, most importantly, to recognise when analysts had lost their objectivity and take corrective action. It seems likely that these failures of management and leadership resulted at least in part as a result of the fact that the Intel Community's chain of command shared with its analysts and collectors the same "group think" presumption that Iraq had active and expanded weapons of mass destruction programs. (U) Conclusion 6. The Committee found significant short-comings in almost every aspect of the Intel Community's human intel collection efforts against Iraq's WMD activities, in particular that the Community had no sources collecting against WMD in Iraq after 1998. Most, if not all, of these problems stem from a broken corporate culture and poor management, and will not be solved by additional funding and personnel. (U) The Committee's review into the prewar intel concerning Iraq's WMD programs has entailed an unprecedented outside examination of a broad range of the Intel Community's (1C) human intel (HUMINT) operations. The Committee found significant short-comings in almost every aspect of these operations. (BLACKED OUT) From 1991 to 1998, the IC relied too heavily on UN (UN) inspectors to collect info about Iraq's WMD programs and did not develop a sufficient unilateral HUMINT collection effort targeting Iraq to supplement UN-collected info and to take its place upon the departure of the UN inspectors. While the UN inspection process provided a valuable source of info, the IC should have used the time when inspectors were in Iraq to plan for the possibility that inspectors would leave and to develop sources who could continue to report after inspectors left. (BLACKED OUT) Because the US lacked an official presence inside Iraq, the Intel Community depended too heavily on defectors and foreign govt services to obtain HUMINT info on Iraq's weapons of mass destruction activities. While these sources had the potential to provide some valuable info, they had a limited ability to provide the kind of detailed intel about current Iraqi WMD efforts sought by US policymakers. Moreover, because the Intel Community did not have direct access to many of these sources, their credibility was difficult to assess and was often left to the foreign govt services to judge. Intel Community HUMINT efforts against a closed society like Iraq prior to Operation Iraqi Freedom were hobbled by the Intel Community's dependence on having an official US presence in-country to mount clandestine HUMINT collection efforts. (U) When UN inspectors departed Iraq, the placement of HUMINT agents and the development of unilateral sources inside Iraq were not top priorities for the Intel Community. The Intel Community did not have a single HUMINT source collecting against Iraq's WMD programs in Iraq after 1998. The Intel Community appears to have decided that the difficulty and risks inherent in developing sources or inserting operations officers into Iraq outweighed the potential benefits. The Committee found no evidence that a lack of resources significantly prevented the Intel Community from developing sources or inserting operations officers into Iraq. (BLACKED OUT) BLACKED OUT. When Committee staff asked why the CIA had not considered placing a CIA officer in Iraq y before Operation Iraqi Freedom to investigate Iraq's WMD programs, a CIA officer said, "because it's very hard to sustain ... it takes a rare officer who can go in ... and survive scrutiny BLACKED OUT for a long time." The Committee agrees that such operations are difficult and dangerous, but they should be within the norm of the ClA's activities and capabilities. Snr CIA officials have repeatedly told the Committee that a significant increase in funding and personnel will be required to enable to the CIA to penetrate difficult HUMINT targets similar to prewar Iraq. The Committee believes, however, that if an officer willing and able to take such an assignment really is "rare" at the CIA, the problem is less a question of resources than a need for dramatic changes in a risk averse corporate culture. (U) Problems with the Intel Community's HUMINT efforts were also evident in the Intel Community's handling of Iraq's alleged efforts to acquire uranium from Niger. The Committee does not fault the CIA for exploiting the access enjoyed by the spouse of a CIA employee travelling to Niger. The Committee believes, however, that it is unfortunate, considering the significant resources available to the CIA, that this was the only option available. Given the nature of rapidly evolving global threats such as terrorism and the proliferation of weapons and weapons technology, the Intel Community must develop means to quickly respond to fleeting collection opportunities outside the Community's established operating areas. The Committee also found other problems with the Intel Community's follow-up on the Iraq-Niger uranium issue, including a half-hearted investigation of the reported storage of uranium in a warehouse in Benin, and a failure, to this day, to call a telephone number, provided by the Navy, of an individual who claimed to have info about Iraq's alleged efforts to acquire uranium from Niger. (BLACKED OUT) The Committee also found that the Defense HUMINT Service (DHS) demonstrated serious lapses in its handling of the HUMINT source code named CURVE BALL, who was the principle source behind the Intel Community's assessments that Iraq had a mobile biological weapons program. The DHS had primary responsibility for handling the Intel Community's interaction with the BLACKED OUT debriefers that were handling CURVE BALL, but the DHS officers that were involved in CURVE ball's case limited themselves to a largely administrative role, translating and passing along reports BLACKED OUT analysts do not have the benefit of the regular interaction with sources or, in this case, CURVE ball's debriefers, that could have allowed them to make judgements about the reliability of source reporting. (U) Another significant problem found by the Committee is the fact that the CIA continues to excessively compartment sensitive HUMINT reporting and fails to share important info about HUMINT reporting and sources with Intel Community analysts who have a need to know. In the y before Operation Iraqi Freedom, the CIA protected its Iraq WMD sources so well that some of the info they provided was kept from the majority of analysts with a legitimate need to know. The biological weapons and delivery sections of this report discuss at length the CLA's failure to share important info about source reporting on Iraq's alleged mobile biological weapons program and unmanned aerial vehicle (UAV) program that left analysts and policymakers with an incomplete and, at times, misleading picture of these issues. (U) The process by which the Intel Community calculates the benefits and risks of sharing sensitive human intel is skewed too heavily toward withholding info. This issue has been raised repeatedly with the Intel Community, particularly after the lack of info sharing was found to have played a key role in the intel failures of 9/11. The Committee believes that the Intel Community must reconsider whether the risks of expanding access to cleared analysts are truly greater than the risks of keeping info so tightly compartmented that the analysts who need it to make informed judgements are kept in the dark. (U) Conclusion 7. The Central Intel Agency (CIA), in several significant instances, abused its unique position in the Intel Community, particularly in terms of info sharing, to the detriment of the Intel Community's prewar analysis concerning Iraq's weapons of mass destruction programs. (U) The Intel Community is not a level playing field when it comes to the competition of ideas in intel analysis. The Director of Central Intel's (DCI's) responsibility, established by the Nat'l Security Act of 1947, to coordinate the nation's intel activities and correlate, evaluate, and disseminate intel that affects nat'l security, provides the CIA with a unique position in the Intel Community. The fact that the DCI is the head of the CIA and head of the Intel Community, the principal intel advisor to the Pres, and is responsible for protecting intel sources and methods, provides the CIA with unique access to policymakers and unique control of intel reporting. This arrangement was intended to coordinate the disparate elements of the Intel Community in order to provide the most accurate and objective analysis to policymakers. The Committee found that in practice, however, in the case of the Intel Community's analysis of Iraq's WMD programs, this arrangement actually undermined the provision of accurate and objective analysis by hampering intel sharing and allowing CIA analysts to control the presentation of info to policymakers, and exclude analysis from other agencies. (U) The Committee found in a number of cases that significant reportable intel was sequestered in CIA Directorate of Operations (DO) cables, distribution of sensitive intel reports was excessively restricted, and CIA analysts were often provided with "sensitive" info that was not made available to analysts who worked the same issues at other all-source analysis agencies. These restrictions, in several cases, kept info from analysts that was essential to their ability to make fully informed judgements. Analysts cannot be expected to formulate and present their best analysis to policymakers while having only partial knowledge of an issue. (BLACKED OUT) For example, important info concerning the reliability of two of the main sources on Iraq's alleged mobile biological weapons program was not available to most Iraq biological weapons analysts outside the CIA. Some analysts at other agencies were aware of some of the credibility concerns about the sources, but the CIA's DO did not disseminate cables throughout the Intel Community that would have provided this info to all Iraq biological weapons analysts. BLACKED OUT (BLACKED OUT) The CIA also failed to share important info about Iraq's UAV software procurement efforts with other intel analysts. The CIA did share sensitive info that indicated Iraq BLACKED OUT was trying to obtain mapping software that could only be used for mapping in the US This suggested to many analysts that Iraq may have been intending to use the software to target the US The CIA failed to pass on additional info, until well after the coordination and publication of the Nat'l Intel Estimate (NIE), BLACKED OUT. This info was essential for analysts to make fully informed judgements about Iraq's intentions to target the US. (U) In some cases CIA analysts were not open to fully considering info and opinions from other intel analysts or creating a level playing field in which outside analysts fully participated in meetings or analytic efforts. This problem was particularly evident in the case of the CIA's analysis of Iraq's procurement of aluminium tubes during which the Committee believes the agency lost objectivity and in several cases took action that improperly excluded useful expertise from the intel debate. For example, the CIA performed testing of the tubes without inviting experts from the Dept of Energy (DOE) to participate. A CIA analyst told Committee staff that the DOE was not invited "because we funded it. It was our testing. We were trying to prove some things that we wanted to prove with the testing. It wasn't a joint effort." The Committee believes that such an effort should never have been intended to prove what the CIA wanted to prove, but should have been a Community effort to get to the truth about Iraq's intended use for the tubes. By excluding DOE analysts, the Intel Community's nuclear experts, the CIA was not able to take advantage of their potentially valuable analytic insights. In another instance, an independent Dept of Defense (DOD) rocket expert told the Committee that he did not think the CIA analysts came to him for an objective opinion, but were trying "to encourage us to come up with [the] answer" that the tubes were not intended to be used for a rocket program. (U) The Committee also found that while the DCI was supposed to function as both the head of the CIA and the head of the Intel Community, in many instances he only acted as head of the CIA. For example, the DCI told the Committee that he was not aware that there were dissenting opinions within the Intel Community on whether Iraq intended use the aluminium tubes for a nuclear program until the NIE was drafted in Sep 2002, despite the fact that intel agencies had been fervently debating the issue since the spring of 2001. While the DCI, as the Pres's principal intel advisor, should provide policymakers, in particular the Pres, with the best analysis available from throughout the Intel Community, the DCI told Committee staff that he does not even expect to learn of dissenting opinions "until the issue gets joined" through interagency coordination of an NIE. This means that contentious debate about significant nat'l security issues can go on at the analytic level for months, or years, without the DCI or snr policymakers being informed of any opinions other than those of CIA analysts. In addition, the Presid'l Daily Briefs (PDBs) are prepared by CIA analysts and are presented by CIA briefers who may or may not include an explanation of alternative views from other intel agencies. Other Intel Community agencies essentially must rely on the analysts who disagree with their positions to accurately convey their analysis to the nation's most snr policymakers. (U) These factors worked together to allow CIA analysts and officials to provide the agency's intel analysis to snr policymakers without having to explain dissenting views or defend their analysis from potential challenges from other Intel Community agencies. The Committee believes that policymakers at all levels of govt and in both the executive and legislative branches would benefit from understanding the full range of analytic opinions directly from the agencies who hold those views, or from truly impartial representatives of the entire Intel Community. OVERALL CONCLUSIONS -- TERRORISM (U) Conclusion 8. Intel Community analysts lack a consistent post-Sep 11 approach to analysing and reporting on terrorist threats. (U) Though analysts have been wrong on major issues in the past, no previous intel failure has been so costly as the Sep 11 attacks. As the Deputy Director of Intel (DDI) explained during an interview with Committee staff, terrorist threat analysts now use a different type of trade craft than generally employed by political, leadership or regional analysts. Threat analysts are encouraged to "push the envelope" and look at various possible threat scenarios that can be drawn from limited and often fragmentary info. As a result, analysts can no longer dismiss a threat as incredible because they cannot corroborate it. They cannot dismiss what may appear to be the rantings of a walk-in until additional vetting shows those stories to be fabricated. (U) To compensate for the fragmentary nature of the reporting on Iraq's potential links to al-Qaeda, Intel Community (1C) analysts included as much detail as they could about the nature of the sources and went to great lengths to describe their analytic approach to the problem. For example, where info was limited to a single or untested source or to a foreign govt service, a source description was provided. As discussed in more detail in the body of this report, a "Scope Note" was incorporated in each product to describe the analytic approach the drafters had taken to address the issue. In Iraq and al-Qaeda: Interpreting a Murky Relationship, the Scope Note explained that the authors had purposefully taken an aggressive approach to interpreting the available data. In both the Sep 2002 and Jan 2003 versions of Iraqi Support for Terrorism, the Scope Note did not describe an analytic approach, but rather it highlighted the gaps in info and described the analysts' understanding of the Iraq-al-Qaeda relationship as "evolving." (U) Though the Committee understands the need for different analytical approaches and expressions of competing viewpoints, the IC should have considered that their readership would not necessarily understand the nuance between the 1st "purposely aggressive" approach and a return, in Iraqi Support/or Terrorism, to a more traditional analysis of the reporting concerning Iraq's links to al-Qaeda. A consistent approach in both assessments which carefully explained the intel reports and then provided a spectrum of possible conclusions would have been more useful and would have assisted policymakers in their public characterisations of the intel. (U) Conclusion 9. Source protection policies within the Intel Community direct or encourage reports officers to exclude relevant detail about the nature of their sources. As a result, analysts community-wide are unable to make fully informed judgements about the info they receive, relying instead on nonspecific source lines to reach their assessments. Moreover, relevant operational data is nearly always withheld from analysts, putting them at a further analytical disadvantage. (U) A significant portion of the intel reporting that was used to evaluate whether Iraq's interactions with al-Qaeda operatives constituted a relationship was stripped of details prior to being made available to analysts community-wide. Source info and operational detail was provided only to Central Intel Agency (CIA) analysts. This lack of info sharing limited the level of discussion and debate that should have taken place across the Community on this critical issue. While in the case of Iraq's links to terrorism, the final analysis has proven, thus far, to have been accurate and not affected by a lack of relevant source or operational detail, we cannot rely on this system in the future. Until changes are made concerning how and when source info is made available to analysts, we run the risk of missing critical data that might provide early warning. (U) The absence of source and operational detail affects not only analysts, but policymakers as well. The Committee found that policymakers took an active role by personally examining individual intel reports for themselves. If this trend continues, it is even more important that such relevant detail be provided. (BLACKED OUT) Conclusion 10. The Intel Community relies too heavily on foreign govt services and 3rd party reporting, thereby increasing the potential for manipulation of US policy by foreign interests. (BLACKED OUT) Due to the lack of unilateral sources on Iraq's links to terrorist groups like al-Qaeda BLACKED OUT, the Intel Community (IC) relied too heavily on foreign govt service reporting and sources to whom it did not have direct access to determine the relationship between Iraq and BLACKED OUT terrorist groups. While much of this reporting was credible, the IC left itself open to possible manipulation by foreign govts and other parties interested in influencing US policy. The Intel Community's collectors must develop and recruit unilateral sources with direct access to terrorist groups to confirm, complement or confront foreign govt service reporting on these critical targets. (U) Conclusion 11. Several of the allegations of pressure on Intel Community (IC) analysts involved repeated questioning. The Committee believes that IC analysts should expect difficult and repeated questions regarding threat info. Just as the post 9/11 environment lowered the Intel Community's reporting threshold, it has also affected the intensity with which policymakers will review and question threat info. (U) A number of the individuals interviewed by the Committee in conducting its review stated that Admin officials questioned analysts repeatedly on the potential for cooperation between Saddam Hussein's regime and al-Qaeda. Though these allegations appeared repeatedly in the press and in other public reporting on the lead-up to the war, no analyst questioned by the Committee stated that the questions were unreasonable, or that they were encouraged by the questioning to alter their conclusions regarding Iraq's links to al-Qaeda. (U) In some cases, those interviewed stated that the questions had forced them to go back and review the intel reporting and that during this exercise they came across info they had overlooked in initial readings. The Committee found that this process -- the policymakers probing questions -- actually improved the Central Intel Agency's (CIA) products. The review revealed that the CIA analysts who prepared Iraqi Support for Terrorism made careful, measured assessments which did not overstate or mischaracterise the intel reporting upon which it was based. (U) The Committee also found that CIA analysts are trained to expect questions from policymakers, and to tailor their analysis into a product that is useful to them. In an Occasional Paper on improving CIA analytic performance, written by a Research Fellow at the Sherman Kent Center, the fellow states: If the mission of intel analysis is to inform policymaking -- to help the US govt anticipate threats and seize opportunities -- then customisation of analysis is the essence of the professional practice, not a defilement of it (i.e, politicisation). In effect there is no such thing as an unprofessional policymaker question for intel to address so long as the answer reflects professional analytic trade craft (e.g, tough-minded weighing of evidence and open-minded consideration of alternatives). (Emphasis added) (U) The same Research Fellow commented on strategic warning stating, "Key to the warning challenge is that the substantive uncertainty surrounding threats to US interests requires analysts, and policymakers, to make judgements that are inherently vulnerable to error." This vulnerability has never been so apparent as in the failure to detect and deter the attacks on Sep 11, 2001. While analysts cannot dismiss a threat because at 1st glance it seems unreasonable or it cannot be corroborated by other credible reporting, policymakers have the ultimate responsibility for making decisions based on this same fragmentary, inconclusive reporting. If policymakers did not respond to analysts' caveated judgements with pointed, probing questions, and did not require them to produce the most complete assessments possible, they would not be doing their jobs. NIGER CONCLUSIONS (U) Conclusion 12. Until Oct 2002 when the Intel Community obtained the forged foreign language documents2 on the Iraq-Niger uranium deal, it was reasonable for analysts to assess that Iraq may have been seeking uranium from Africa based on Central Intel Agency (CIA) reporting and other available intel. 2 (BLACKED OUT) In March 2003, the Vice Chairman of the Committee, Sen Rockefeller, requested that the Fed Bureau of Investigation (FBI) investigate the source of the documents, BLACKED OUT the motivation of those responsible for the forgeries, and the extent to which the forgeries were part of a disinfo campaign. Because of the FBI's current investigation into this matter, the Committee did not examine these issues. (U) Conclusion 13. The report on the former ambassador's trip to Niger, disseminated in March 2002, did not change any analysts' assessments of the Iraq-Niger uranium deal. For most analysts, the info in the report lent more credibility to the original Central Intel Agency (CIA) reports on the uranium deal, but State Dept Bureau of Intel and Research (INR) analysts believed that the report supported their assessment that Niger was unlikely to be willing or able to sell uranium to Iraq. (U) Conclusion 14. The Central Intel Agency should have told the Vice Pres and other snr policymakers that it had sent someone to Niger to look into the alleged Iraq-Niger uranium deal and should have briefed the Vice Pres on the former ambassador's findings. (U) Conclusion 15. The Central Intel Agency's (CIA) Directorate of Operations should have taken precautions not to discuss the credibility of reporting with a potential source when it arranged a meeting with the former ambassador and Intel Community analysts. (U) Conclusion 16. The language in the Oct 2002 Nat'l Intel Estimate that "Iraq also began vigorously trying to procure uranium ore and yellowcake" overstated what the Intel Community knew about Iraq's possible procurement attempts. (U) Conclusion 17. The State Dept's Bureau of Intel and Research (INR) dissent on the uranium reporting was accidentally included in the aluminium tube section of the Nat'l Intel Estimate (NIE), due in part to the speed with which the NIE was drafted and coordinated. (U) Conclusion 18. When documents regarding the Iraq-Niger uranium reporting became available to the Intel Community in Oct 2002, Central Intel Agency (CIA) analysts and operations officers should have made an effort to obtain copies. As a result of not obtaining the documents, CIA Iraq nuclear analysts continued to report on Iraqi efforts to procure uranium from Africa and continued to approve the use of such language in Admin publications and speeches. (U) Conclusion 19. Even after obtaining the forged documents and being alerted by a State Dept Bureau of Intel and Research (INR) analyst about problems with them, analysts at both the Central Intel Agency (CIA) and Defense Intel Agency (DIA) did not examine them carefully enough to see the obvious problems with the documents. Both agencies continued to publish assessments that Iraq may have been seeking uranium from Africa. In addition, CIA continued to approve the use of similar language in Admin publications and speeches, including the State of the Union. (U) Conclusion 20. The Central Intel Agency's (CIA) comments and assessments about the Iraq-Niger uranium reporting were inconsistent and, at times contradictory. These inconsistencies were based in part on a misunderstanding of a CIA Weapons Intel, Nonproliferation, and Arms Control Center (WINPAC) Iraq analyst's assessment of the reporting. The CIA should have had a mechanism in place to ensure that agency assessments and info passed to policymakers were consistent. (U) Conclusion 21. When coordinating the State of the Union, no Central Intel Agency (CIA) analysts or officials told the Nat'l Security Council (NSC) to remove the "16 words" or that there were concerns about the credibility of the Iraq-Niger uranium reporting. A CIA official's original testimony to the Committee that he told an NSC official to remove the words "Niger" and "500 tons" from the speech, is incorrect. (U) Conclusion 22. The Director of Central Intel (DCI) should have taken the time to read the State of the Union speech and fact check it himself. Had he done so, he would have been able to alert the Nat'l Sec Council (NSC) if he still had concerns about the use of the Iraq-Niger uranium reporting in a Presid'l speech. (U) Conclusion 23. The Central Intel Agency (CIA), Defense Humint Service (DHS), or the Navy should have followed up with a W African businessman, mentioned in a Navy report, who indicated he was willing to provide info about an alleged uranium transaction between Niger and Iraq in Nov 2002. (BLACKED OUT) Conclusion 24. In responding to a letter from Sen Carl Levin on behalf of the Intel Community in Feb 2003, the Central Intel Agency (CIA) should not have said that " BLACKED OUT of reporting suggest Iraq had attempted to acquire uranium from Niger," without indicating that State Dept's Bureau of Intel and Research (INR) believed the reporting was based on forged documents, or that the CIA was reviewing the Niger reporting. (U) Conclusion 25. The Niger reporting was never in any of the drafts of Secretary Powell's UN (UN) speech and the Committee has not uncovered any info that showed anyone tried to insert the info into the speech. (U) Conclusion 26. To date, the Intel Community has not published an assessment to clarify or correct its position on whether or not Iraq was trying to purchase uranium from Africa as stated in the Nat'l Intel Estimate (NIE). Likewise, neither the Central Intel Agency (CIA) nor the Defense Intel Agency (DIA), which both published assessments on possible Iraqi efforts to acquire uranium, have ever published assessments outside of their agencies which correct their previous positions. NUCLEAR CONCLUSIONS (U) Conclusion 27. After reviewing all of the intel provided by the Intel Community and additional info requested by the Committee, the Committee believes that the judgement in the Nat'l Intel Estimate (NIE), that Iraq was reconstituting its nuclear program, was not supported by the intel. The Committee agrees with the State Dept's Bureau of Intel and Research (INR) alternative view that the available intel "does not add up to a compelling case for reconstitution." (U) Conclusion 28. The assessments in the Nat'l Intel Estimate (NIE) regarding the timing of when Iraq had begun reconstituting its nuclear program are unclear and confusing. (U) Conclusion 29. Numerous intel reports provided to the Committee showed that Iraq was trying to procure high-strength aluminium tubes. The Committee believes that the info available to the Intel Community indicated that these tubes were intended to be used for an Iraqi conventional rocket program and not a nuclear program. (U) Conclusion 30. The Central Intel Agency's (CIA) intel assessment on Jul 2, 2001 that the dimensions of the aluminium tubes "match those of a publicly available gas centrifuge design from the 1950s, known as the Zippe centrifuge" is incorrect. Similar info was repeated by the CIA in its assessments, including its input to the Nat'l Intel Estimate (NIE), and by the Defense Intel Agency (DIA) over the next y and a half. (U) Conclusion 31. The Intel Community's position in the Nat'l Intel Estimate (NIE) that the composition and dimensions of the aluminium tubes exceeded the requirements for non nuclear applications, is incorrect. (BLACKED OUT) Conclusion 32. The BLACKED OUT intel report on Saddam Hussein's personal interest in the aluminium tubes, if credible, did suggest that the tube procurement was a high priority, but it did not necessarily suggest that the high priority was Iraq's nuclear program. (U) Conclusion 33. The suggestion in the Nat'l Intel Estimate (NIE) that Iraq was paying excessively high costs for the aluminium tubes is incorrect. In addition, 7075-T6 aluminium is not considerably more expensive than other more readily available materials for rockets as alleged in the NIE. (U) Conclusion 34. The Nat'l Ground Intel Center's (NGIC) analysis that the material composition of the tubes was unusual for rocket motor cases was incorrect, contradicted info the NGIC later provided to the Committee, and represented a serious lapse for the agency with primary responsibility for conventional ground forces intel analysis. (BLACKED OUT) Conclusion 35. Info obtained by the Committee shows that the tubes were BLACKED OUT to be manufactured to tolerances tighter than typically requested for rocket systems. The request for tight tolerances had several equally likely explanations other than that the tubes were intended for a centrifuge program, however. (U) Conclusion 36. Iraq's attempts to procure the tubes through intermediary countries did appear intended to conceal Iraq as the ultimate end user of the tubes, as suggested in the Nat'l Intel Estimate (NIE). Because Iraq was prohibited from importing any military items, it would have had to conceal itself as the end user whether the tubes were intended for a nuclear program or a conventional weapons program, however. (BLACKED OUT) Conclusion 37. Iraq's persistence in seeking numerous foreign sources for the aluminium tubes was not "inconsistent" with procurement practices as alleged in the Nat'l Intel Estimate (NIE). Furthermore, such persistence BLACKED OUT was more indicative of procurement for a conventional weapons program than a covert nuclear program. (U) Conclusion 38. The Central Intel Agency's (CIA) initial reporting on its aluminium tube spin tests was, at a minimum, misleading and, in some cases, incorrect. The fact that these tests were not coordinated with other Intel Community agencies is an example of continuing problems with info sharing within the Intel Community. (U) Conclusion 39. Iraq's performance of hydrostatic pressure tests on the tubes was more indicative of their likely use for a rocket program than a centrifuge program. (BLACKED OUT) Conclusion 40. Intel reports which showed BLACKED OUT were portrayed in the Nat'l Intel Estimate as more definitive than the reporting showed. (BLACKED OUT) Conclusion 41. BLACKED OUT in that it was only presented with analysis that supported the CIA's conclusions. The team did not discuss the issues with Dept of Energy officials and performed its work in only one day. (U) Conclusion 42. The Director of Central Intel was not aware of the views of all intel agencies on the aluminium tubes prior to Sep 2002 and, as a result, could only have passed the Central Intel Agency's view along to the Pres until that time. (U) Conclusion 43. Intel provided to the Committee did show that Iraq was trying to procure magnets, high-speed balancing machines and machine tools, but this intel did not suggest that the materials were intended to be used in a nuclear program. (U) Conclusion 44. The statement in the Nat'l Intel Estimate that "a large number of personnel for the new [magnet] production facility, worked in Iraq's pre-Gulf War centrifuge program," was incorrect. (U) Conclusion 45. The statement in the Nat'l Intel Estimate that the Iraqi Atomic Energy Commission was "expanding the infrastructure -- research laboratories, production facilities, and procurement networks -- to produce nuclear weapons," is not supported by the intel provided to the Committee. (U) Conclusion 46. The intel provided to the Committee which showed that Iraq had kept its cadre of nuclear weapons personnel trained and in positions that could keep their skills intact for eventual use in a reconstituted nuclear program was compelling, but this intel did not show that there was a recent increase in activity that would have been indicative of recent or impending reconstitution of Iraq's nuclear program as was suggested in the Nat'l Intel Estimate. (U) Conclusion 47. Intel info provided to the Committee did show that Saddam Hussein met with Iraqi Atomic Energy Commission personnel and that some security improvements were taking place, but none of the reporting indicated the IAEC was engaged in nuclear weapons related work. BIOLOGICAL CONCLUSIONS (U) Conclusion 48. The assessment in the Oct 2002 Nat'l Intel Estimate that, "[W]e judge that all key aspects -- research & development, production, and weaponisation -- of Iraq's offensive biological weapons program are active and that most elements are larger and more advanced than they were before the Gulf War" is not supported by the intel provided to the Committee. (U) Conclusion 49. The statement in the key judgements of the Oct 2002 Nat'l Intel Estimate (NIE) that "Baghdad has biological weapons" overstated what was known about Iraq's biological weapons holdings. The NIE did not explain the uncertainties underlying this statement. (U) Conclusion 50. The statement in the Nat'l Intel Estimate that "Baghdad has mobile transportable facilities for producing bacterial and toxin biological weapons agents," overstated what the intel reporting suggested about an Iraqi mobile biological weapons effort and did not accurately convey to readers the uncertainties behind the source reporting. (BLACKED OUT) Conclusion 51. The Central Intel Agency withheld important info concerning both CURVE ball's reliability and BLACKED OUT reporting from many Intel Community analysts with a need to know the info. (BLACKED OUT) Conclusion 52. The Defense Human Intel Service, which had primary responsibility for handling the Intel Community's interaction with CURVE ball's BLACKED OUT debriefers, demonstrated serious lapses in handling such an important source. (U) Conclusion 53. The statement in the key judgements of the Nat'l Intel Estimate that "[C]hances are even that smallpox is part of Iraq's offensive biological weapons program" is not supported by the intel provided to the Committee. (U) Conclusion 54. The assessments in the Nat'l Intel Estimate concerning Iraq's capability to produce and weaponise biological weapons agents are, for the most part, supported by the intel provided to the Committee, but the NIE did not explain that the research discussed could have been very limited in nature, been abandoned y ago, or represented legitimate activity. (U) Conclusion 55. The Nat'l Intel Estimate misrepresented the United Nations Special Commission's (UNSCOM) 1999 assessment concerning Iraq's biological research capability. (U) Conclusion 56. The statement in the key judgements of the Nat'l Intel Estimate that "Baghdad probably has developed genetically engineered biological weapons agents," overstated both the intel reporting and analysts assessments of Iraq's development of genetically engineered biological agents. (U) Conclusion 57. The assessment in the Nat'l Intel Estimate that "Iraq has ... dry biological weapons [BW] agents in its arsenal" is not supported by the intel info provided to the Committee. CHEMICAL CONCLUSIONS (U) Conclusion 58. The statement in the key judgements of the Oct 2002 Iraq WMD Nat'l Intel Estimate that "Baghdad has ... chemical weapons" overstated both what was known about Iraq's chemical weapons holdings and what intel analysts judged about Iraq's chemical weapons holdings. (U) Conclusion 59. The judgement in the Oct 2002 Iraq Weapons of Mass Destruction Nat'l Intel Estimate that Iraq was expanding its chemical industry primarily to support chemical weapons production overstated both what was known about expansion of Iraq's chemical industry and what intel analysts judged about expansion of Iraq's chemical industry. (BLACKED OUT) Conclusion 60. It was not clearly explained in the Nat'l Intel Estimate that the basis for several of the Intel Community's assessments about Iraq's chemical weapons capabilities and activities were not based directly on intel reporting of those capabilities and activities, but were based on layers of analysis regarding BLACKED OUT intel reporting. (U) Conclusion 61. The Intel Community's assessment that "Saddam probably has stocked at least 100 metric tons and possibly as much as 500 metric tons of chemical weapons agents -- much of it added in the last y," was an analytical judgement and not based on intel reporting that indicated the existence of an Iraqi chemical weapons stockpile of this size. (U) Conclusion 62. The Intel Community's assessment that Iraq had experience in manufacturing chemical weapons bombs, artillery rockets and projectiles was reasonable based on intel derived from Iraqi declarations. (U) Conclusion 63. The Nat'l Intel Estimate assessment that "Baghdad has procured covertly the types and quantities of chemicals and equipment sufficient to allow limited chemical weapons production hidden within Iraq's legitimate chemical industry" was not substantiated by the intel provided to the Committee. (U) Conclusion 64. The Nat'l Intel Estimate accurately represented info known about Iraq's procurement of defensive equipment. DELIVERY CONCLUSIONS (U) Conclusion 65. The Intel Community assessment that Iraq retains a small force of Scud-type ballistic missiles was reasonable based on the info provided to the Committee. The estimate that Iraq retained "up to a few dozen Scud-variant missiles," was clearly explained in the body of the Nat'l Intel Estimate to be an assessment based "on no direct evidence" and was explained in the key judgements to be based on "gaps in Iraqi accounting to the UN Special Commission [UNSCOM]." (U) Conclusion 66. The assessments that Iraq was in the final stages of development of the al Samoud missile, may be preparing to deploy the al Samoud and was deploying the al Samoud and Ababil-100 short-range ballistic missile, both which exceed the 150-km UN range limit, evolved in a logical progression over time, had a clear foundation in the intel reporting, and were reasonable judgements based on the intel available to the Committee. (U) Conclusion 67. The assessment that Iraq was developing medium-range ballistic missile (MRBM) capabilities was a reasonable judgement based on the intel provided to the Committee. (U) Conclusion 68. The Intel Community assessment in the key judgements section of the Nat'l Intel Estimate that Iraq was developing an unmanned aerial vehicle (UAV) "probably intended to deliver biological warfare agents" overstated both what was known about the mission of Iraq's small UAVs and what intel analysts judged about the likely mission of Iraq's small UAVs. The Air Force footnote which indicated that biological weapons (BW) delivery was a possible, though unlikely, mission more accurately reflected the body of intel reporting. (U) Conclusion 69. Other than the Air Force's dissenting footnote, the Intel Community failed to discuss possible conventional missions for Iraq's unmanned aerial vehicles (UAV) which were clearly noted in the intel reporting and which most analysts believed were the UAVs primary missions. (U) Conclusion 70. The Intel Community's assessment that Iraq's procurement of US specific mapping software for its unmanned aerial vehicles (UAV) "strongly suggests that Iraq is investigating the use of these UAVs for missions targeting the US" was not supported by the intel provided to the Committee. (U) Conclusion 71. The Central Intel Agency's failure to share all of the intel reporting regarding Iraq's attempts to acquire US mapping software with other Intel Community agencies left those analysts with an incomplete understanding of the issue. This lack of info sharing may have led some analysts to agree to a position that they otherwise would not have supported. (U) Conclusion 72. Much of the info provided or cleared by the Central Intel Agency (CIA) for inclusion in Secretary Powell's speech was overstated, misleading, or incorrect. (U) Conclusion 73. Some of the info supplied by the Central Intel Agency (CIA), but not used in Secretary Powell's speech, was incorrect. This info should never have been provided for use in a public speech. (U) Conclusion 74. The Central Intel Agency (CIA) should have alerted Secretary Powell to the problems with the biological weapons-related sources cited in the speech concerning Iraq's alleged mobile biological weapons program. (BLACKED OUT) Conclusion 75. The Nat'l Imagery and Mapping Agency (NIMA)3 should have alerted Secretary Powell to the fact that there was an analytical disagreement within the NIMA concerning the meaning ofUU activity observed at Iraq's Amiriyah Serum and Vaccine Institute in Nov 2002. Moreover, agencies like the NIMA should have mechanisms in place for evaluating such analytical disagreements. 3 NIMA has recently been renamed the Nat'l Geospatial-Intel Agency (NGA). (U) Conclusion 76. Human intel (HUMINT) gathered after the production of the Nat'l Intel Estimate (NIE), did indicate that Iraqi cmdrs had been authorised to use chemical weapons as noted in Secretary Powell's speech. WEAPONS OF MASS DESTRUCTION (WMD) COLLECTION CONCLUSIONS (BLACKED OUT) Conclusion 77. The Intel Community relied too heavily on UN (UN) BLACKED OUT info about Iraq's programs and did not develop a sufficient unilateral collection effort targeting Iraq's weapons of mass destruction programs and related activities to supplement UN-collected info and to take its place upon the departure of the UN inspectors. (U) Conclusion 78. The Intel Community depended too heavily on defectors and foreign govt services to obtain human intel (HUMINT) info on Iraq's WMD activities. Because the Intel Community did not have direct access to many of these sources, it was exceedingly difficult to determine source credibility. (U) Conclusion 79. The Intel Community waited too long after inspectors departed Iraq to increase collection against Iraq's WMD programs. (U) Conclusion 80. Even after the departure of UN (UN) inspectors, placement of human intel (HUMINT) agents and development of unilateral sources inside Iraq were not top priorities for the Intel Community. (U) Conclusion 81. The Central Intel Agency (CIA) continues to excessively compartment sensitive human intel (HUMINT) reporting and fails to share important info about HUMINT reporting and sources with Intel Community analysts who have a need to know. (BLACKED OUT) Conclusion 82. BLACKED OUT. The lack of in-country human intel (HUMINT) collection assets contributed to this collection gap. WEAPONS OF MASS DESTRUCTION (WMD) PRESSURE CONCLUSIONS (U) Conclusion 83. The Committee did not find any evidence that Admin officials attempted to coerce, influence or pressure analysts to change their judgements related to Iraq's WMD capabilities. (U) Conclusion 84. The Committee found no evidence that the VP's visits to the Central Intel Agency were attempts to pressure analysts, were perceived as intended to pressure analysts by those who participated in the briefings on Iraq's WMD programs, or did pressure analysts to change their assessments. WHITE PAPER CONCLUSIONS (U) Conclusion 85. The Intel Community's elimination of the caveats from the unclassified White Paper misrepresented their judgements to the public which did not have access to the classified Nat'l Intel Estimate containing the more carefully worded assessments. (U) Conclusion 86. The names of agencies which had dissenting opinions in the classified Nat'l Intel Estimate were not included in the unclassified white paper and in the case of the unmanned aerial vehicles (UAVs), the dissenting opinion was excluded completely. In both cases in which there were dissenting opinions, the dissenting agencies were widely regarded as the primary subject matter experts on the issues in question. Excluding the names of the agencies provided readers with an incomplete picture of the nature and extent of the debate within the Intel Community regarding these issues. (U) Conclusion 87. The key judgement in the unclassified Oct 2002 White Paper on Iraq's potential to deliver biological agents conveyed a level of threat to the US homeland inconsistent with the classified Nat'l Intel Estimate. RAPID PRODUCTION OF THE NATIONAL INTELLIGENCE ESTIMATE CONCLUSIONS (U) Conclusion 88. The Intel Community should have been more aggressive in identifying Iraq as an issue that warranted the production of a Nat'l Intel Estimate (NIE) and should have initiated the production of such an Estimate prior to the request from Members of the Senate Select Committee on Intel. (U) Conclusion 89. While more time may have afforded analysts the opportunity to correct some minor inaccuracies in the Nat'l Intel Estimate (NIE), the Committee does not believe that any of the fundamental analytical flaws contained in the NIE were the result of the limited time available to the Intel Community to complete the Estimate. IRAQI LINKS TO TERRORISM CONCLUSIONS (U) Conclusion 90. The Central Intel Agency's assessment that Saddam Hussein was most likely to use his own intel service operatives to conduct attacks was reasonable, and turned out to be accurate. (U) Conclusion 91. The Central Intel Agency's (CIA) assessment that Iraq had maintained ties to several secular Palestinian terrorist groups and with the Mujahidin e-Khalq was supported by the intel. The CIA was also reasonable in judging that Iraq appeared to have been reaching out to more effective terrorist groups, such as Hizballah and Hamas, and might have intended to employ such surrogates in the event of war. (U) Conclusion 92. The Central Intel Agency's examination of contacts, training, safe-haven and operational cooperation as indicators of a possible Iraq-al-Qaeda relationship was a reasonable and objective approach to the question. (U) Conclusion 93. The Central Intel Agency reasonably assessed that there were likely several instances of contacts between Iraq and al-Qaeda throughout the 1990s, but that these contacts did not add up to an established formal relationship. (BLACKED OUT) Conclusion 94. The Central Intel Agency reasonably and objectively assessed in Iraqi Support/or Terrorism that the most problematic area of contact between Iraq and al-Qaeda were the reports of training in the use of non-conventional weapons, specifically chemical and biological weapons. BLACKED OUT (U) Conclusion 95. The Central Intel Agency's assessment on safe-haven -- that al-Qaeda or associated operatives were present in Baghdad and in NE Iraq in an area under Kurdish control -- was reasonable. (U) Conclusion 96. The Central Intel Agency's assessment that to date there was no evidence proving Iraqi complicity or assistance in an al-Qaeda attack was reasonable and objective. No additional info has emerged to suggest otherwise. (U) Conclusion 97. The Central Intel Agency's judgement that Saddam Hussein, if sufficiently desperate, might employ terrorists with a global reach -- al-Qaeda -- to conduct terrorist attacks in the event of war, was reasonable. No info has emerged thus far to suggest that Saddam did try to employ al-Qaeda in conducting terrorist attacks. (U) Conclusion 98. The Central Intel Agency's (CIA) assessments on Iraq's links to terrorism were widely disseminated, though an early version of a key CIA assessment was disseminated only to a limited list of cabinet members and some subcabinet officials in the Admin. TERRORISM COLLECTION CONCLUSIONS (U) Conclusion 99. Despite 4 decades of intel reporting on Iraq, there was little useful intel collected that helped analysts determine the Iraqi regime's possible links to al-Qaeda. (BLACKED OUT) Conclusion 100. The Central Intel Agency (CIA) did not have a focused human intel (HUMINT) collection strategy targeting Iraq's links to terrorism until 2002. The CIA had no BLACKED OUT sources on the ground in Iraq reporting specifically on terrorism. The lack of an official BLACKED OUT US presence in the country BLACKED OUT curtailed the Intel Community's HUMINT collection capabilities. (BLACKED OUT) Conclusion 101. BLACKED OUT TERRORISM PRESSURE CONCLUSIONS (U) Conclusion 102. The Committee found that none of the analysts or other people interviewed by the Committee said that they were pressured to change their conclusions related to Iraq's links to terrorism. After 9/11, however, analysts were under tremendous pressure to make correct assessments, to avoid missing a credible threat, and to avoid an intel failure on the scale of 9/11. As a result, the Intel Community's assessments were bold and assertive in pointing out potential terrorist links. For instance, the Jun 2002 Central Intel Agency assessment Iraq and al-Qaeda: Interpreting a Murky Relationship was, according to its Scope Note, "purposefully aggressive" in drawing connections between Iraq and al-Qaeda in an effort to inform policymakers of the potential that such a relationship existed. All of the participants in the Aug 2002 coordination meeting on the Sep 2002 version of Iraqi Support/or Terrorism interviewed by the Committee agreed that while some changes were made to the paper as a result of the participation of two Office of the Under Secretary of Defense for Policy staffers, their presence did not result in changes to their analytical judgements. POWELL SPEECH CONCLUSIONS -- TERRORISM PORTION (U) Conclusion 103. The info provided by the Central Intel Agency for the terrorism portion of Secretary Powell's speech was carefully vetted by both terrorism and regional analysts. (U) Conclusion 104. None of the portrayals of the intel reporting included in Secretary Powell's speech differed in any significant way from earlier assessments published by the Central Intel Agency. (U) Conclusion 105. Because the Director of Central Intel refused to provide all working drafts of the speech, the Committee could not determine whether anything was added to or removed from the speech prior to its delivery. IRAQI THREAT TO REGIONAL STABILITY AND SECURITY CONCLUSIONS (U) Conclusion 106. The Intel Community (1C) did not take steps to clearly characterise changes in Iraq's threat to regional stability and security, taking account of the fact that its conventional military forces steadily degraded after 1990. (U) Conclusion 107. The quality and quantity of Human Intel (HUMINT) reporting on issues related to regional stability and security, particularly on the subject of regime intentions, was deficient and did not adequately support policymaker requirements. (U) Conclusion 108. Subject to the limitations described in conclusions 106 and 107, the Intel Community (1C) objectively assessed a diverse body of intel regarding Saddam Hussein's threat to regional stability and security, producing a wide range of high quality analytical documents on various topics. The IC's judgements about Iraq's military capabilities were reasonable and balanced, based on 3 factors: the size and capabilities of its military forces in relation to neighbouring countries; its history of aggressive behaviour prior to the 1st Gulf War; and, its patterns of behaviour between 1991 and 2003. (U) Conclusion 109. The Intel Community should have produced a Nat'l Intel Estimate-level assessment of the overall threat posed by Iraq in the region prior to the start of Operation Iraqi Freedom. Such a document would have outlined -- in one place and in a systematic fashion -- the complete range of factors comprising Iraq's threat to regional stability and security. SADDAM HUSSEIN'S HUMAN RIGHTS RECORD CONCLUSIONS (U) Conclusion 110. Between 1991 and 2003 analysis of Saddam Hussein's human rights record was limited in volume, but provided an accurate depiction of the scope of abuses under his regime. The limited body of analysis was reasonable, given the difficulty of intel collection inside Iraq and the demands on collection resources that were primarily targeted on other priorities. Those competing priorities included WMD, terrorism, regime stability and regional security. There was no indication that the Intel Community's (1C) analysis was shaped or manipulated in regards to analysis of human rights abuses. (U) Conclusion 111. The Intel Community's development of a systematic analytical method -- the "mosaic approach," which grew out of approaches to "atrocities intel" in the Balkans -- was an innovation for gaining a better understanding of the human rights situation in Iraq. The environment was a denied and hostile arena that thwarted most intel collection by organisations following human rights issues. THE INTEL COMMUNITY'S SHARING OF INTELLIGENCE ON IRAQI SUSPECT WEAPONS OF MASS DESTRUCTION SITES WITH UN INSPECTORS CONCLUSIONS (U) Conclusion 112. The Intel Community had limited actionable intel on suspect Iraqi WMD sites. (U) Conclusion 113. The Central Intel Agency fulfilled the intent of the Admin's policy on the sharing of intel info. (U) Conclusion 114. Public pronouncements by Admin officials that the Central Intel Agency had shared info on all high and moderate priority suspect sites with UN inspectors were factually incorrect. (U) Conclusion 115. The rationale used by the Central Intel Agency for deciding what info to share with the UN -was inherently subjective, inconsistently applied, and not well-documented. (U) Conclusion 116. The multiple Intel Community Weapons of Mass Destruction (WMD) site lists lack coherency. (U) Conclusion 117. The info the Central Intel Agency provided to Sen Levin in reply to his letters on the sharing of intel info with the UN was, in some cases, unresponsive, incomplete and inconsistent. CIA bungling on Iraq tells only half the story Op/Ed (USA Today). Aficionados of spy-thriller novelist John le Carre have long known what a scathing Senate report underscored Fri: Intel-gathering is as much an art subject to human foibles and manipulation as it is a science. Yet the limits of intel never gave pause to a Whitehouse bent on war with Iraq from the outset. The Admin used an exaggerated CIA assessment of the threat posed by Saddam Hussein to justify already-formulated plans to attack Iraq -- and to sell its pre-emptive war to Congress and the public. Big mistake. The 511-page report by the Senate Intel Committee concludes that most of those assessments were unfounded or overstated. Reasons included sloppy analysis, few or unreliable sources in Iraq, little sharing of info between intel agencies and a dysfunctional culture that encouraged only group-think. One obvious group thought: Paint Saddam in the worst possible light to a Whitehouse that already had made up its mind that the Iraqi dictator possessed chemical and biological arsenals and was trying to develop a nuclear weapon. Many members of Congress responded to the report by proposing bureaucratic reforms of a fractured intel community plagued by turf battles. The most prominent idea is to appoint a more independent intel czar who would oversee all 15 intel agencies and serve a set term rather than at the pleasure of the president, as is now the case. That change would make the new czar less susceptible to political pressure. Such structural changes, however, won't make intel more reliable, less subject to misinterpretation or more prone to misuse. US Sec of State Colin Powell, for example, grilled and probed CIA officials relentlessly before he addressed the UN before the Iraq war to make the US case against Saddam. He presented charts, satellite photos and phone intercepts as "solid" evidence that Iraq had chemical and biological weapons. In reality, they were far from the definitive proof UN Ambassador Adlai Stevenson presented during the 1962 Cuban missile crisis, when he held up satellite photos of Soviet missiles. The difference was one of human interpretation -- or twisting -- of the evidence. In anticipation of the harsh Senate report, CIA Director George Tenet announced his resignation last m, citing personal reasons. As he put in his last day on the job Sun, Republican and Democratic senators called on Pres Bush to move quickly to name a new director. Still, who heads the CIA won't matter if that person can't stand up to political pressure to engage in domestic espionage, as occurred in the 1970s, or provide flimsy evidence to justify a war. It doesn't take le Carre's fictional hero, George Smiley, to point out that bad intel is only half the problem. Awaiting intel report, Blair vows to fight on London (IHT/AFP). Brit's PM, Tony Blair, vowed Mon to tough it out as he braced for a potentially damaging report on the failings of Brit intel on Iraq before the war. At the start of a wk in which Blair also faces 2 by-elections, his official rep told reporters that the PM, the strongest and most vocal supporter of Pres George W. Bush's Iraq policy, had been through "difficult times." Responding to BBC reports over the weekend that he had contemplated resignation and that 4 snr cabinet secretaries had persuaded him to stay on, the rep said Blair wanted to "get on with the job." On Tue, Blair may learn just how difficult that job will be, as LordButler, head of the committee investigating prewar intel on Iraq, presents the govt with his report, one day before it is made public. His investigation, begun in Feb after the US established a similar inquiry, was told to look into the structures and processes that led Brit to believe that Iraq possessed WMD. No such weapons have been found. If Butler and his committee suggest that Blair or his ministers made flawed judgements, the political damage could be serious to a govt already under intense pressure because of the war. Butler's report also precedes by-elections in the central cities of Birmingham and Leicester that will provide a further test for Blair and his Labour Party. The PM, for the 1st time, conceded last wk to a parliamentary committee that Saddam Hussein's feared stockpile of such weapons might never be found. He added, however, that the invasion still had been justified. Brit newspapers have reported that Blair would escape severe censure in the Butler report. The newspapers said the PM would face some criticism for an overly presidential style of governing, but would not be accused of urging his spy chiefs to overestimate the threat posed by Iraq's weaponry. In awaiting the report, Downing Street was refusing to comment on new claims that spy chiefs have retracted a central plank of Blair's argument for the war -- that Saddam Hussein had continued to produce biological and chemical arms. A govt dossier at the heart of the current inquiry into intel failings stated in Sep 2002 that "Iraq has continued to produce chemical and biological agents." But in a rare move, the intel service MI6 has withdrawn the claim, an unnamed snr intel source was quoted as saying on Sun by BBC TV's "Panorama" program. Former For Sec Robin Cook said in excerpts of his memoirs published in The Guardian on Mon that Brit's top intel official and Blair had told him before the war that Iraq did not have any usable weapons of mass destruction. Aust left out of FBI loop before Bali AUS missed out on pre-Bali warning. Canberra (ABC "Lateline", Margot O'Neill). The FBI has revealed that in the lead-up to the Bali bombings it did not pass info to AUS that terrorists in South-East Asia were planning attacks against Westerners. The FBI says it was told about possible attacks against Westerners in the region one m before the bombings. In a written statement to ABC television's Lateline program, the FBI says the info was disseminated only to those countries deemed to be at risk of an attack and that there was no indication of a specific threat to AUS. In Jan 2002, a young Al Qaeda suspect named Mohamed Mansour Jabarah met with terrorist mastermind Hambali. At the meeting, Hambali said he wanted to bomb Westerners in soft targets like bars and nightclubs in several South-East Asian countries. Jabarah passed that info on to the FBI during an interrogation in Aug 2002. "Info obtained from the questioning of Mr Jabarah was forwarded to the US State Dept, which then provided the info to various countries believed to be potential targets of terrorist acts in E Asia," the FBI statement says. "This info did not indicate specific threats against AUS but was provided to those countries deemed to be at risk of terrorist attack." * 'Inconceivable' ASIO chief Dennis Richardson has previously downplayed the value of the Jabarah intel, telling the Senate it would have made little difference in Bali. But the director of terrorism studies at the Aussie Nat'l University, Clive Williams, says the info could have been useful for the Aussie Govt. "It would've perhaps changed our travel advisories," he said. "If you put out travel warnings about Bali and bars and nightclubs, there would still be people that would ignore that and go there but at least the Govt would've done the responsible thing in providing the warnings." A rep for For Min Alexander Downer says an inquiry by the inspector-general of intel and security found there was no intel material available that could have prevented the Bali attacks. He says Aussie Govt travel advisories at the time of the Bali bombings warned of the threat of terrorist attacks in Indonesia, including areas where tourists gathered. Nonetheless, Neil Fergus from private security firm Intelligent Risks says the FBI's briefing was "absolutely critical intel". "[It was] almost unique in terms of its content at that particular time when it came to light," Mr Fergus said. "Until that time, we had seen Al Qaeda focus largely on diplomatic and military targets. This was a sea change, in terms of a commitment to look at the targeting of those areas where the public citizens congregate." Mr Fergus added: "If the Jabarah info had been passed to Aussie intel, one could reasonably have anticipated that it would have enabled them to enhance their analysis, to the extent that places like Bali would have been pinpointed as potential targets. "Why it wasn't passed is inconceivable." * Breach of security Al Qaeda expert Rohan Gunaratna has raised further questions about whether AUS's intel network failed to pick up the Jabarah intel once it was circulating in the region. "Certainly the info that was provided by Jabarah that bars, nightclubs and restaurants are going to be attacked was known by South-East Asian law enforcement and intel agencies," he said. "I believe that the Aussie officials who were posted to that region should have known this info because the Aussie officials very closely interacted with their South-East Asian counterparts. "If they did not know, I believe that it was a breach of security. I believe that AUS had failed in its primary mission of gathering the required info from South-East Asia." Further confusing matters, a Senate committee has heard from AUS's premier intel analysis body, the Office of Nat'l Assessments, that it knew about Jabarah's interrogation by the middle of 2002. Bill O'Malley from the ONA said: "We had begun to receive info about the Jabarah interviews probably by mid-y 2002. "It would not have been provided to us, necessarily, by the FBI. It would have come to us, through Aussie channels, from the Americans. "We incorporated it into developing our understanding of the way in which Jemaah Islamiah was organised and also the way in which they would continue to make plans and to operate in South-East Asia." Philippines announces Iraq pullout [DISASTER!] Manila (Reuters). The Philippines has told militants threatening to execute a Filipino truck driver that it will withdraw its forces from Iraq "as soon as possible". Deputy FM Rafael Seguis announced the withdrawal in a statement read out on Al Jazeera TV. His statement was addressed to a group calling itself the Islamic Army in Iraq, which is holding a Filipino driver hostage and has threatened to kill him unless Manila agrees to withdraw its troops by Jul 20. "In response to your request, the Philippines ... will withdraw its humanitarian forces as soon as possible," Mr Seguis said, according to Al Jazeera's translation of his remarks. "I hope the statement that I read will touch the heart of this group," Mr Seguis told the satellite television channel from Baghdad. He declined to give an exact date for the withdrawal, which Manila had insisted would take place by Aug 20 as earlier scheduled. Mr Seguis appealed to the group to release the hostage, truck driver Angelo de la Cruz, and added: "We know that Islam is the religion of peace and mercy." Al Jazeera earlier reported that the group extended by 24 hr to Mon night its deadline for killing de la Cruz. Govt to increase troop numbers in Iraq Canberra. The Fed Govt has announced a small increase in the number of Aussie troops serving in Iraq. Defence Min Robert Hill says an extra 6 light armoured vehicles and an additional 30 soldiers will boost AUS's security protection force to 120. The Govt has said there would be some minor adjustments to AUS's military contribution. Sen Hill says the extra troops will protect Aussie military trainers and diplomats and they will start to leave later this wk. "The trainers are now operating from bases that are further afield which is necessitated greater travel by road," he said. "As a result of that and our determination to offer all possible protection in a very dangerous environment, we've decided to provide this extra equipment and extra security forces. "They will also be assisting in providing protection in relation to the Aussie officials and contractors who'll be involved in the building of the new embassy in Baghdad." The announcement will bring the number of Aussie troops serving in the Middle E to about 880. Bush Defends Decision to Invade Iraq Oak Ridge, Tenn (AP). Invading Iraq made America safer, Pres Bush said Mon, defending his war decision in the face of a Senate report debunking Whitehouse justifications for attacking Saddam Hussein's govt. Bush presented his case in a speech at Oak Ridge Nat'l Laboratory while Condoleezza Rice, his nat'l security adviser, was made available for cable television interviews to defend the Admin's decisions. It was Bush's ninth trip to Tennessee, a state he won from Al Gore in 2000 and wants to win again in Nov. If listeners missed Bush's political message, they needed only to look at the red-white-and-blue sign posted behind the podium that read: "Protecting America." Under-scoring his message, Bush said 8 times in his speech that America was safer. 3 days ago, the Senate Intel Committee said the Admin's belief that Saddam had chemical and biological weapons and was working to make nuclear weapons was wrong, based on false or overstated CIA analyses. "Although we have not found stockpiles of weapons of mass destruction, we were right to go into Iraq," Bush told lab employees assembled in an auditorium. "We removed a declared enemy of America who had the capability of producing weapons of mass murder and could have passed that capability to terrorists bent on acquiring them. In the world after Sep the 11th, that was a risk we could not afford to take." It was Bush's 1st public reaction to the Senate panel's criticism. Bush noted problems cited in the Senate report, including a shortage of human-gathered intel and poor coordination among intel services. But he did not comment on ideas proposed for reforming America's intel network, nor did he say when he planned to name a new CIA director to replace George Tenet, who stepped down Sun for personal reasons. Instead, Bush sought to compare situations in nations like Afghanistan, Iraq and Libya to how they were three y ago when the Taliban ruled in Kabul, Saddam was in power in Baghdad and Libya was backing terrorism and spending money to acquire WMD. Under an agreement with Libyan leader Moammar Gadhafi to dismantle his country's nuclear weapons program, Libya's weapons hardware was shipped to Oak Ridge earlier this y. Democratic presidential candidate John Kerry quickly dismissed Bush's claim that Americans are safer and said that if elected, his No. 1 security goal would be to prevent terrorists from acquiring WMD. "Have we taken every step we should to stop N Korea and Iran's nuclear programs?" Kerry asked. "Have we restructured our intel agencies and given them the resources they need to keep our country safe? The honest answer, in each of these areas, is that we have done too little, often too late, and even cut back our efforts. It's not enough to give speeches." "The facts speak for themselves. There was less nuclear weapons materials secured in the 2 y after Sep 11 than in the 2 years before," he said. "North Korea has reportedly quadrupled its nuclear weapons capability in the past year. Iran is developing a nuclear weapons capability. Afghanistan has become a forgotten front in the war on terror." The Whitehouse has long portrayed Libya's pledge to abandon weapons of mass destruction programs as affirmation of Bush's hard-line strategy on arms proliferation and suggested the US-led war in Iraq helped convince Gadhafi that he should act. "This progress came about through quiet diplomacy between America, Brit and the Libyan govt," Bush said. "This progress was set in motion, however, by policies declared in public to all the world. ... Every potential adversary now knows that terrorism and proliferation carry serious consequences, and that the wise course is to abandon those pursuits." Rice, meanwhile, denied suggestions that the Admin was considering ways to delay the Nov election if there were a terrorist attack. "No one's thinking about postponing the election," she said. Koizumi defiant after electoral upset Face slap: The PM's coalition has retained control of the upper house, but editorials said the results showed voters were upset over pension reform and Iraq. Tokyo (AFP/Taipei Times). Japanese PM Junichiro Koizumi vowed yesterday to push ahead with his reform agenda despite suffering a setback in elections seen as a verdict on unpopular policies on Iraq and pensions. Koizumi's Liberal Democratic Party (LDP), which has ruled Japan almost uninterruptedly for nearly 50 y, won 49 of the 121 seats contested in Sun's upper house election, a net loss of just one seat. The main opp'n Democratic Party of Japan (DPJ) won 50 seats, up from 38 before the election. However, Koizumi's ruling coalition retained its majority in the upper house after its coalition partner, the New Komei party, won 11 seats. It also holds a majority in the more powerful lower chamber of parliament, which chooses the PM. Newspaper editorials described the results as a slap down for an "arrogant" Koizumi by voters who were angry he had failed to explain the planned overhaul of the creaking pension system and the decision to keep troops in Iraq deployed since Dec. But snr members of the ruling party, who have expressed frustration at Koizumi's high-handed management style, expressed support after last wk suggesting a poor election result could see him deposed as premier. Koizumi said he would not change course on key policy initiatives. He promised to keep up the structural reform of the economy and said Japan would maintain the contingent of troops doing reconstruction work in S Iraq. "I believe the public is calling for the ruling coalition to work with the opp'n to push for our reform agenda," Koizumi told reporters, saying his reforms were responsible for the current economic recovery. But analysts warned that he could be punished more severely next time unless he speeds up the reform process. Koizumi could be forced to resign or dissolve the lower house in next summer and call a snap election, in which the Democrats could win power, said political analyst Minoru Morita. "I think it will be difficult for him to last 2 more years," added Yoshiaki Kobayashi, political science professor at Keio University. Koizumi acknowledged that a majority of Japanese opposed his decision to keep troops in Iraq as part of a multinat'l force, but he insisted it was the right thing to do. "Japan needs to continue activities which will be regarded as valued work there," he said. War by folly Op/Ed (SF Chronicle). Try as it might, the Bush Whitehouse cannot just shrug off the Senate Intel Committee's conclusion that every major pretext for the war against Iraq was seriously flawed. The buck does not stop with the Central Intel Agency, which delivered faulty info about Iraq's alleged nuclear, chemical and biological weapons. The buck stops in the Oval Office. After all, the CIA reports on Iraq were not delivered in a vacuum. It was not exactly a secret that various key Bush appointees in the defence hierarchy were agitating for a showdown with Saddam Hussein from the moment Bush took office. The war cries intensified after Sep 11, 2001. While the Senate Intel Committee report contained no earthshaking surprises -- the notion that the case for war was built on flawed info is well established by now -- it was devastating in its clear- eyed accounting of the mess. The report is also significant because of its source: The White House cannot dismiss this as "Fahrenheit 9/11" polemic; it came from the Republican-controlled Senate. Pres Bush's reaction was almost as disturbing as the report itself. Once again, it had an element of finger-pointing that has come to characterise a Whitehouse that cannot bring itself to admit a mistake. Bush called it a "useful report" about where the intel community "went short." Bush added, "We need to know ... I want to know how to make the agencies better." So for the Whitehouse, the most positive interpretation of these findings is that top Admin officials were led astray by the CIA -- hardly a comforting assessment of the folks assigned to oversee this nation's security. Several committee members were frustrated that the report did not address evidence of a more insidious upshot: that the Whitehouse twisted the evidence to support its war plans. In one of the 9 "alternative views," Sen Jay Rockefeller, D-WVa, and 2 other snr lawmakers suggested that CIA analysts whose judgements did not fit the case for war were subject to extraordinary pressure and second-guessing. Rockefeller said the intel failings detailed in the report have diminished this nation's credibility and global standing -- to the point of hatred in the Muslim world. "As a direct consequence, our nation is more vulnerable today than ever before," he said. It was not just a failure of "the agencies." Bush needs to look within his inner circle to those who readily accepted and disseminated this flawed intel: Donald Rumsfeld, Paul Wolfowitz, Colin Powell, Condoleezza Rice, Dick Cheney. And yes: George W. Bush. Bush defends Iraq war, says US safer 8 times Washington (AFP). Hoping to dispel election-y doubts about his case for war with Iraq, US Pres George W Bush has defended the invasion and insisted "Americans are safer" with him in charge. "Although we have not found stockpiles of WMD, we were right to go into Iraq," he said here after touring a facility that houses nuclear materials recently handed over by Libya. Mr Bush's central public case for war hinged on allegations that Saddam Hussein had vast arsenals of chemical and biological weapons and could easily hand such devastating power to terrorists like Osama bin Laden's Al Qaeda network. Such weapons have not been found and recent polls show Americans feel the war in Iraq has left them less safe from terrorists -- not a good sign for the incumbent just 4 m before the Nov 2 presidential elections. "We removed a declared enemy of America, who had the capability of producing weapons of mass murder and could have passed that capability to terrorists bent on acquiring them," Mr Bush said. "In the world after Sep 11, that was a risk we could not afford to take," he said. "We must confront serious dangers before they fully materialise." Mr Bush said Saddam had ties to terrorists but did not repeat his charge that he had close ties to Al Qaeda, an assertion rejected by the formal probe into the Sep 11, 2001 attacks on the Pentagon and the World Trade Centre. The Pres also touched on the US Senate Intel Committee's report last wk that pre-war intel woefully mischaracterised the threat posed by Iraq. "The Senate Intel Committee has identified some shortcomings in our intel capabilities. The committee's report will help us in the work of reform," Mr Bush said. The panel, which was controlled by members of Mr Bush's Republican party, put off looking into the Admin's role in shaping and using the info until after the election that pits Mr Bush against Democratic Sen John Kerry. Campaigning in his home state of Massachusetts, Sen Kerry said Mr Bush had done too little to secure nuclear materials worldwide, warning: "It's not enough just to give speeches. America will only be safer when we get results". But the Pres insisted that he had drawn the same conclusion as lawmakers of both major US parties, including Sen Kerry, who voted in favour of legislation authorising Mr Bush to go to war. Pointing to the US Congress, the UN Sec Council, and even the Admin of former president Bill Clinton, Mr Bush said: "We saw a threat". Mr Bush's refrain was that "Americans are safer" because of the wars in Iraq and Afghanistan, his policies towards Pakistan and Saudi Arabia, and the break-up of Pakistani nuclear scientist Abdul Qadeer Khan's proliferation network. "Today, because America has acted and because America has led, the forces of terror and tyranny have suffered defeat after defeat and America and the world are safer," he said. But Mr Bush also warned that deadly dangers still threaten the United States, saying: "The terrorists are ruthless and resourceful, and we know they're preparing to attack us again". Islamic group threatens to attack Iraq-bound ships Seoul (AFP). An armed Islamic group has threatened to attack ships from countries including S Korea delivering US military supplies to Iraq, Seoul's spy agency said yesterday. "A message threatening terrorist attacks on ships carrying military supplies to Iraq has been posted on an Arabic website," a rep of the Nat'l Intel Service (NIS) said. "We have alerted related agencies including maritime authorities and police to this info and called for stepped up vigilance," he told AFP. The Chosun daily quoted a NIS official as saying that the mysterious group on Jul 3 posted an article on an Islamic Internet site, threatening to attack ships from the United States, HK, the Netherlands and S Korea. "Shipping companies which carry military supplies to Americans that are used to attack Islamic warriors will be our target," the group was quoted as saying in the brief message. The group identified itself as the Supreme HQ of Armed Islamic Warriors in Iraq, the newspaper said. An official of S Korea's leading shipping company, Hanjin Shipping Co, said that as far as he was aware, no S Korean ships were involved in transporting military supplies to US troops in Iraq. He said the company and other S Korean shipping firms have stepped up security in line with new internat'l security code for ships and ports that took effect on Jul 1 amid mounting concerns over terrorism. "But we have not taken any additional measures because of the warning from the Nat'l Intel Agency," he said. The threat came as S Korea prepares to send more than 3,000 troops early next m on a rehabilitation mission in Iraq in addition to 660 military medics and engineers already stationed there. SARS antibodies offer new treatment Geneva (Reuters). Antibodies from patients who have recovered from SARS can be quickly found and used to treat others with a new method developed by Swiss and US scientists, the researchers have reported. Tests on mice suggest the treatment can be adapted for use against any new infection -- offering a fast method to fight emerging disease and, perhaps, biological attacks. Writing in the journal Nature Medicine, the researchers said they also learned which of the immune system proteins, known as antibodies, are the most effective in subduing the virus that causes SARS. Severe acute respiratory syndrome (SARS) emerged in China in 2002 and swept across many countries killing about 800 people. It appears to have been contained but scientists warn many more such pathogens are waiting to emerge. The disease is caused by a never-before-seen virus and although some work has been done to develop a vaccine, there is no good treatment for the illness. "A vaccine may provide little benefit to someone already infected," Dr Anthony Fauci, director of the US Nat'l Institute of Allergy and Infectious Diseases (NIAID), which helped sponsor the study said. So the researchers explored an approach called passive immune therapy -- using the immune cells of patients who have successfully fought off the disease. The problem is finding the right cells and using them effectively. Elisabetta Traggiai and Dr Antonio Lanzavecchia of the Institute for Research in Biomedicine in Bellinzona, Switzerland, developed a new way to do it. They took some of the cells that make antibodies, known as B cells, from a recovered SARS patient. So-called memory B cells recognise a bacterial or viral invader and generate antibodies designed to recognise that particular microbe. They attached a short stretch of synthetic DNA that mimics some of the DNA found in bacteria and viruses. This reactivated some of the B cells, and they began pumping out different antibodies, many of them specific to SARS. The researchers then examined these antibodies and found the ones that worked best against SARS. Dr Kanta Subbarao and Dr Brian Murphy at the NIAID then tested the new antibodies in mice and found they prevented the virus from multiplying in the respiratory system. Protesters disrupt AIDS summit Bangkok. Protesters have interrupted the global AIDS summit and thrown mock blood over posters of world leaders to protest against a shortfall in funding to tackle the epidemic. The protesters held a mock trial of the leaders of the G8 industrialised nations in the foyer of the conference centre, shouting out a list of charges against leaders such as US Pres George W Bush, Brit PM Tony Blair and French Pres Jacques Chirac. The demonstrators say leaders of rich nations had reneged on promises to contribute $12 bn to fight aids. Protest rep Brooke Baker accused the US of being the worst offender. "The US will not fund needle exchange, it will not fund programs that work respectfully with sex workers and it will not fund family planning services where those family planning services include discussion about abortion as a lawful alternative of women's choice," she said. Meanwhile, a debate is continuing at the conference about the merits of encouraging abstinence as well as condom use to prevent the spread of the virus. Many delegates have criticised the US, which despite its status as the biggest funder of AIDS programs, insists on spending 30% of its funds on faith-based programs. American Congresswoman Barbara Lee was among those voicing their concerns. "In an age where 5 mn people are newly infected each y and women and girls too often do not have the choice to abstain, an abstinence until marriage program is not only irresponsible but it's really inhumane," she said. Iraq leader threatens death to militants Baghdad (AP). Iraqi interim Pres Ghazi al-Yawer threatened Mon to use a "very sharp sword" to fight insurgents threatening the security of the country, a day after 3 US soldiers died in attacks N of Baghdad. Also Mon, France and Iraq restored diplomatic relations that were severed before the Gulf War 13 y ago. Al-Yawer spoke 2 wk after the US handed sovereignty over to an interim Iraqi govt. The hand-over, however, has not quelled the violence that has wracked the country since the fall of Saddam Hussein's regime nearly 15 m ago. Foreign and local insurgents have launched numerous attacks in Iraq in an effort to force coalition forces to leave and to thwart the country's postwar reconstruction. The attacks have killed scores of US troops and 100s of Iraqi civilians. "Terrorism isn't just killing and blowing up bombs, whoever threatens the ordinary life of the people is a terrorist," al-Yawer told reporters. "We have a very sharp sword ready for anyone who threatens the security of this country." Al-Yawer, who was meeting with Defense Min Hazem Shaalan and Nat'l Guard Brig Gen Muther al-Rashardi, said the roughly 160,000 coalition forces led by the US were required to stay here to fight the insurgents, but violent groups should not use this as an excuse to continue attacks. "Those who claim they are resisting the occupation, the occupation is over now," he said. "We want to tell anyone who wants to threaten the security of this country: 'Enough,' I say, 'Enough. Stop.'" Security officials also sought to reassure Iraqis they were trying to restore order. Al-Rashardi said the nat'l guard has divided the capital, Baghdad, into 8 sectors to make it easier to control. "We have very big plans to follow this up," Shaalan said. "We are ready to sacrifice ourselves for our people." Al-Yawer, a prominent Sunni whose position is largely ceremonial, said the govt planned to announce an amnesty soon for some of the insurgents. Al-Yawer appealed to insurgents to accept the amnesty and lay down their weapons. "This is your last chance, otherwise there will be the sword," he said. Meanwhile, Iraq and France, which opposed the US-led war that toppled Saddam, restored diplomatic relations that were severed 13 ya during the Gulf War. The countries plan to exchange ambassadors as soon as possible, the French Foreign Ministry said Mon. "The 2 govts are convinced this decision will contribute to closer ties between France and Iraq and will intensify exchanges to the greater benefit of the 2 countries," the Foreign Ministry said in a statement. The restoration of ties took effect Mon, according to Mohammed al-Haj Mahmoud, undersecretary for legal affairs at the Iraqi Foreign Ministry. France has turned down American requests for military help in quelling the insurgency, but expressed willingness to help train Iraqi security forces. Violence continued across Iraq. Gunmen killed Abd el-Oun Hassan, the head of the Musayyib office of the Supreme Council of the Islamic Revolution in Iraq, one of the largest Shiite parties, in a drive-by shooting S of the capital Sun night, police officials said Mon. Insurgents Sun also killed 3 US soldiers and an Iraqi civilian in separate attacks N of Baghdad. Also Sun, insurgents fired mortar rounds at the Abu Ghraib prison, the centre of a scandal involving alleged abuse of Iraqi detainees by US guards. One person was injured. The attack was the 6th by insurgents on the facility since a mortar attack on in Apr killed 22 Iraqi detainees and wounded over 100, the military said. Iraqi insurgents who have threatened to kill a Filipino hostage gave the Philippines 2 more days to agree to withdraw all its troops from Iraq, officials in Manila said Mon. The Iraqi Islamic Army-Khaled bin Al-Waleed Corps said it would kill truck driver Angelo dela Cruz, 46, Sun night if the govt did not give in to its demand for an early withdrawal. But govt officials said the group had extended the deadline until Tue, even though the Philippines said its 51 soldiers and police would leave Aug. 20 as scheduled. "This is a time when hope and optimism are particularly important to all of us," Labor Secretary Patricia Santo Tomas told ABS-CBN TV from Dubai, where she was accompanying dela Cruz's wife and brother en route to Amman, Jordan. Riot police in Manila broke up a demo Mon by 100s of left-wing protesters demanding the withdrawal of the Philippine force here. A militant deadline for 2 other hostages -- Bulgarian truck drivers held by a separate group demanding the release of all Iraqi detainees -- expired Sat morning. The militants had threatened to execute the Bulgarians if the US military did not release all Iraqi detainees by the deadline. At least one Bulgarian diplomat travelled to Iraq to help win the release of the hostages, a diplomat familiar with the talks said while speaking on condition of anonymity. The diplomat's exact plans were not revealed. Rebels clash with police in Baghdad Baghdad (AP). Iraqi police have conducted a massive sweep of a Baghdad neighbourhood, killing one person, wounding 2 and rounding up 100s of suspected criminals. The operation involved dozens of Iraqi police officers and was intended to crack down on "criminals, kidnappers and looters", said Hussein Ali Kamal, the deputy interior minister. Just after dark, police in pickup trucks and sport utility vehicles fanned out into the Bab Alsheikh neighbourhood and snatched suspects off the streets. Some fought back, setting off dozens of small gun-battles. One suspect died and 2 were injured while resisting arrest, Kamal said. Hundreds were detained, he said. Associated Press Television News video showed dozens of detained men sitting on the ground. It was not immediately clear where the men were taken. Arms suppliers scramble into Iraq New York (Asia Times). When the 15-member UN Security Council legitimised the US-imposed interim govt in Baghdad in Jun, the 5-page unanimous resolution carried a provision little publicised in the media: the lifting of a 14-y arms embargo on Iraq. The Sec Council's decision to end military sanctions on Iraq has triggered a rush by the world's weapons dealers to make a grab for a potentially $mult-mn new arms market in the already over-armed Middle East. The former US-run Coalition Provisional Authority (CPA), which handed over power to the new Iraqi govt on Jun 28, finalised plans for the purchase of 6 C-130 Hercules military transport aircraft, 16 Iroquois helicopters and a squadron of 16 low-flying, light reconnaissance aircraft -- all for delivery by next Apr. The proposed purchases were part of an attempt to rebuild and revitalise Iraq's sanctions-hit, weapons-starved military. But some experts question the strategy. "The flow of weapons to Iraq will not improve the security situation in Iraq, nor will it make the country safe from outside threats or an external invasion," said Naseer H Aruri, chancellor professor (emeritus) at the University of Massachusetts. "With 140,000 US military personnel, 20,000 from the so-called coalition of the willing and another 20,000 contracted civilians, Iraq remains occupied and denied effective sovereignty," said Aruri, author of Dishonest Broker: The US Role in Israel and Palestine. "Purchasing weapons at this time, therefore, is more relevant to the needs of the occupier relating to the suppression of armed opp'n, and consolidation of US hegemony. Moreover, it is not appropriate for the interim govt, a subcontracting agency for the US, to go shopping for arms as numerous arms exporting countries compete feverishly for contracts," he told Inter Press Service (IPS). The US, the UK and Jordan are providing assistance and training for the creation of a 40,000-person Iraqi army. With blessings from the US Congress, the former CPA also earmarked about $2.1 bn for nat'l security, including $2 bn for the new army and $76 mn for a civil defence corps. Since late last y, Iraq has purchased 50,000 handguns from Austria, 421 UAZ Hunter jeeps from Russia and $mns worth of armoured cars from Brazil and Ukraine, along with AK-47 assault rifles, 9 mm pistols, military vehicles, fire-control equipment and night-vision devices. The biggest single deal was a $327 mn contract with a US firm to outfit Iraqi troops with body armour, radios and other communications equipment. The contract has been challenged by 2 non-US firms that lost out on the bidding process. The decision by the CPA to purchase the handguns from the Austrian gun maker Glock late last y evoked a strong protest to the Pentagon. "There are a number of US companies that could easily provide these weapons," Representative Jeb Bradley, a member of Pres George W Bush's Republican Party, said in a letter to US Def Sec Donald Rumsfeld, "Why were other firearms companies, namely American companies, passed over?" he asked. The US Army Corps of Engineers awarded 2 contracts, totalling $2.7 mn, to US firms in March for transmission, distribution, communications and controls for the Iraqi infrastructure. A 3rd contract valued at $7.8 mn -- for a modern, digital cellular, command and control system to link the various sites of the Iraqi armed forces and the Coalition Military Assistance Training Team -- was also awarded to a US-based company. The US has also awarded a $150 mn contract for the renovation of 4 military bases at Umm Qasr, al-Kasik, Tadji and Numaniyah in various parts of Iraq. And the Pentagon has plans to expand existing military bases near Mosul, Baghdad and Kut, specifically for the US Army. This contract is estimated at about $600 mn. "It does not seem wise to introduce new weaponry and military capability into Iraq's volatile mix of ongoing war and occupation, civil strife and political transition," said Frida Berrigan, snr research associate with the Arms Trade Resource Center, a project of the World Policy Institute. On average, more than 2 US soldiers are killed each day, she said, and inter-Iraqi violence is taking a deadly toll on civilians and govt officials. "Before Iraq is outfitted with high-tech weaponry, it seems that the low-tech needs of clean water and reliable electricity should be met," Berrigan told IPS. In addition, if experience with the Iraqi police force is any indication of what is to come from a US-armed and -trained security force, she said, this is not the right time for the interim leadership to embark on an arms spending spree. "Instead of aiding the US in putting down the uprisings, 1000s from Iraq's newly trained police force deserted, and many reportedly turned over their US-issued weapons to street fighters. How many of the 135 Americans killed during that m faced American guns and ammunition?" Berrigan asked. "It's a well-known fact that Iraq is saturated with weapons and ammunition, particularly firearms and light machine-guns, but also others," said Mouin Rabbani, a Middle E analyst based in Jordan and a contributing editor to the Washington-based Middle E Report. That is one reason the US has experienced so much difficulty in its efforts to eradicate the insurgency, he said: the insurgents do not appear to be dependent on a flow of weapons from outside their borders. At the same time, the Iraqi security forces, particularly the Iraqi nat'l army once it is properly reconstituted, does not have -- or has only very few -- weapons systems normally associated with nat'l self-defence, such as combat aircraft, artillery and air defences, Rabbani said. "One can argue about whether or not investing in such systems constitutes a particularly wise move by the Iraqi nat'l authorities given the numerous and severe challenges facing Iraqi society," he told IPS. But it is a fact that a sovereign Iraqi state has a legitimate right to acquire sophisticated weapons systems and, given the way political and military leaders invariably behave, will seek to acquire them, he added. Rabbani said Iraq has a long military tradition, some would even say a long tradition of militarism, and the dissolution of the Iraqi armed forces, combined with the destruction of much of the heavy weaponry that was left at the end of a previous war, means the govt will have to invest considerably more in developing an effective military than would otherwise have been the case. But, he added, "It would be particularly reprehensible if American and other arms exporters exploit their control of Iraq and its govt to foist upon it the purchase and acquisition of weapons systems that are either prohibitively expensive, including systems marked up in price to make a fast buck, or unnecessary." If they do so, Rabbani said, they will be repeating a pattern of weapons sales seen during the past several decades to, for example, Saudi Arabia and other Persian Gulf states (part of the system known as petrodollar recycling). Overall military spending in the Middle E is estimated to reach about $55 bn annually by 2007, rising from about $52 bn in 2003, according to Forecast Internat'l, a US-based defence market research organisation. The big spenders include Saudi Arabia, which will average more than $18 bn in defence spending annually through 2007, followed by Israel (more than $9 bn), Iran ($4.5 bn), the United Arab Emirates (about $3.7 bn) and Egypt (more than $3 bn). A large proportion of the funds is earmarked for weapons purchases, mostly from the US, the UK, France and Russia. Iraq's 1st decisions concerning military acquisitions will be critical, Rabbani said, because they will virtually determine subsequent purchases (in terms of compatibility, for example). "It therefore seems to me crucial that such decisions be made by a genuinely independent Iraqi govt, upon the recommendation of a professional assessment by a genuinely independent Iraqi military high command, on the basis of both the current and future needs of the country and its existing traditions," he said. Even "grants" of sophisticated weapons by the US or other states with military export industries will interfere with this process, said Rabbani. "The pattern in Iraq so far is that it is being seen as a financial bonanza -- and where civilian contractors like Halliburton and Bechtel have gone, military contractors such as Lockheed and Raytheon can be expected to follow." Professor's plea for books for Baghdad Uni yields huge donations Jacksonville, Ala (AP). Biology prof Safaa Al-Hamdani wasn't expecting an avalanche of books when he asked colleagues at Jacksonville State Uni to help his alma mater in Baghdad restock its libraries. But donations have been pouring in from around the country. "I never thought it would get this big," Al-Hamandi said Fri. It all began when JSU professors Bill Hug, Kelly Gregg and others joined the effort, collecting spare books off professors' shelves to ship to Baghdad University, which has been drained by decades of brutal dictatorship, war, and internat'l sanctions. A story about the book drive last m in The Anniston Star was picked up by other media outlets, and books started arriving from universities all over the country. 2 chemistry professors from the University of Alabama drove from Tuscaloosa, their cars loaded with 1,000 back issues -- or 40 y' worth -- of the Journal of the American Chemistry Society. "Rather than just sit here and collect dust, somebody can make good use out of what we've got," said one of the professors, John Vincent. Al-Hamdani said he has received e-mails from professors as far away as Texas and California pledging support for the project. He's expecting deliveries from professors at Auburn and UCLA. There are so many volumes now, they no longer fit under a table in Al-Hamdani's laboratory at JSU. Instead, they've taken over a storage room in the same building. Anton Flores, a professor in the human services dept at Georgia's LaGrange College said he e-mailed faculty who are away for the summer and expects to collect plenty of books to deliver to Jacksonville when they return this fall. The drive has provided a rallying point for faculty and students who debated the need to invade Iraq, Flores said. "It seemed to kind of defuse the hostility and the debate of whether military intervention was right," Flores said. "It gave both sides the opportunity to gather around a common issue." The Jacksonville group now is seeking contributions to cover the estimated $3,000 cost of shipping the books to Iraq. They've raised $250 so far. Al-Hamandi said he's been floored by the support from around the country and from his colleagues at JSU. "I don't know these people," he said. "I never met them and I probably never will. It just makes you feel you're in a civilised place and there are a lot of good people." New Iraq security laws raise concerns Baghdad (Newsday). On the day that Iraqi leaders signed a sweeping law that allows them to impose martial rule, Ghayeb Koubaisi got a taste of the stringent security as he made his way from the turbulent city of Ramadi to Baghdad. Koubaisi had to wait for 2 hr under the punishing midday sun as Iraqi police questioned people at a checkpoint outside Baghdad. All those who were stopped, he said, were Sunni Muslims from Ramadi, Fallujah and other centres of the Iraqi insurgency. "I am not fighting against anyone, but the police saw on my identity card that I was from Ramadi, so they pulled me aside," said Koubaisi, 25, a poultry farmer who travelled to Baghdad to buy medicine for his animals. "If there is martial law, we're going to have arbitrary searches and arrests all the time. They will use the excuses of fighting terrorism, or protecting nat'l security." While most Iraqis favour a crackdown on militants, some reject the use of martial rule, viewing it as a reprise of the absolute power exercised by Saddam Hussein's regime. The emergency law, which was adopted last wk, grants PM Iyad Allawi broad authority to set curfews, cordon off entire cities, tap phones, close businesses and confiscate funds used by insurgents -- and to assume direct command of Iraqi security forces in areas under martial rule. The law has rekindled concerns about a lack of checks and balances on Allawi's powers while he leads an interim govt until elections are held in Jan. The interim Admin is supposed to have a parliament with mostly advisory powers, but it has not been created yet. More broadly, the Iraqi law has raised fears about the use of emergency laws in the Middle E to stifle dissent and keep unrepresentative govts in power. "Security should not become more important than democracy," said Zuhair Jazairi, editor of Al-Mada, an independent newspaper in Baghdad. "The Iraqi govt must have strong powers to stop this violence, but martial law in the Arab world always lasts too long." Some Iraqis worry that a solely executive govt -- without the oversight of a legislative body -- during the transitional period will set a dangerous precedent for the permanent govt. Given Iraq's history of coups and its present chaotic state, they fear that the transitional Admin might well end up being the permanent govt. "What if this interim govt decided not to resign after Jan 31, 2005? Who would force it to resign, and force it to abide by a fair election process?" asked Sheik Fatih Kashif Ghitta, leader of a prominent Shia religious family in the city of Najaff. "There's a serious danger to having just an executive govt on the road to building a democracy." Shortly before it was approved, the emergency law was amended to include safeguards that allow the Iraqi president and 2 vice presidents, as well as Iraq's highest court, to review declarations of martial rule. The law also says a state of emergency cannot be used as a justification for delaying elections beyond Jan 31. In a TV interview before he took office on Jun 28, Allawi hinted that elections might have to be delayed because of the security situation. But he quickly retracted that statement after an outcry from Iraqis, who noted the Jan deadline is enshrined in Iraq's interim constitution and 2 UN resolutions. Even though the security law by itself cannot be used to delay elections, specialists say any balloting held under emergency rule is problematic. "To hold elections in such emergency conditions would have a serious effect on the ability of candidates and parties to campaign, and perhaps even disrupt balloting," said Nathan Brown, a political science professor at George Washington University in Washington, DC, and an expert on Arab legal systems. Many Iraqis agree with that assessment, and some say they would be willing to accept a delay in holding elections if that would make the balloting safer. "I would not mind if elections were delayed until security really improves and we can have a real vote," said Abdel Wahed Nimat, 57, a guard at a private Baghdad company. "There's no sense in having an election under the barrel of a gun. That's what Saddam did." Like many Iraqis tired of widespread kidnappings, assassinations and robberies, Nimat supports the idea of martial law. "The only thing our people understand is force," he said, lighting a cigarette as he shopped at an outdoor fruit market last wk. "Democracy will not work in Iraq until a long period has passed." Across town, Haizi Saedi sat in the cramped coffee house he owns, tugging on a water-pipe and chatting with his customers about whether Allawi had amassed too much power. "I don't care who rules us -- Allawi or anyone else," said Saedi, 43, a portly man with a moon-shaped face. "The most important things are security and stability. Martial law will rid us of the criminals and the terrorists." Allawi is hoping such sentiments will translate into broad public support when he decides to use his emergency powers, especially in the Sunni cities of Fallujah and Ramadi. The PM has vowed to be mindful of concerns about human rights. "We will use this law and the items in the law whenever it is necessary to defeat our enemies," he told a news conference last week. "The law is really designed to be part and parcel of the rule of law, and it respects human rights." Under the law, Allawi can declare martial rule in any part of Iraq with the approval of the president and 2 VPs. Initially, the state of emergency can be declared only for 60 days, but that can be extended every 30 days "as needed." Iraq's highest judicial body, the Court of Cassation, has the power to review emergency declarations and revoke them. In early drafts of the legislation, Allawi would have been allowed to declare martial law with a majority vote of his 32-member cabinet. That provision was changed after Iraq's president, Ghazi al-Yawar, and others raised concerns about Allawi having unchecked powers. Another provision that would have granted Allawi the power to declare a nationwide state of emergency was deleted from the final law. Even with the safeguards added to the law, analysts say it could run afoul of strong guarantees of civil and political freedoms outlined in the interim Iraqi constitution. That document, which was approved by Iraqi leaders and the US occupation authority in March, will remain in force until a permanent constitution is drafted by the end of 2005. "The interim constitution guarantees a right to privacy, but the emergency law allows intercept of communications," Brown said. "That may be difficult to reconcile." Some Iraqis worry that the law could open the way for perpetual martial rule, as emergency laws have in many Arab countries. Egypt, for example, has been under a nearly continuous state of emergency since 1939, which preceded its independence. In Arab countries such as Egypt, Syria and Jordan, martial rule has often been used to suppress political dissent. "This Iraqi law might not only be used to deal with violence, but I expect that it will also be a way to pursue political opponents," said Mohammed Habib, a leader of Egypt's largest opp'n group, the Muslim Brotherhood. "We have suffered terribly from this type of law, which has put our people under the ruler's thumb." While the Iraqi emergency law is narrower in scope than the Egyptian law, they both concentrate power in the hands of the executive. Brown said it has been the pattern of emergency laws in Arab countries to give authority directly to political leaders, rather than going through the military. "That robs a layer of oversight," Brown said. "It also risks allowing a political official with some future ambitions a very extensive set of powers." Using emergency rule in Iraq is especially risky right now. Allawi's govt is viewed as illegitimate by many Iraqis because it was largely selected by the US occupation. And because the Iraqi Nat'l Council -- a 100-member assembly with no lawmaking powers -- has not convened, there is no body to act as a check on the executive branch. Brown noted that the provision for judicial oversight included in the Iraqi emergency law has not been tested, and the court system may not have enough clout to challenge Allawi's govt. In other Arab countries, courts have only sporadically repealed decisions made under emergency law. To Iraqis, that is the danger of giving Allawi such wide powers. "We don't want to end up like other Arab countries under martial rule," said Ghitta, the Shia religious leader. "And we don't want to end up like we were under Saddam." How to free a hostage [Adapted from the Jul 19, 2004 issue of TIME magazine]. Kidnapping foreigners is a booming business in Iraq, but there is a science to winning their release. Essam Al-Sudani (Time/AFP). As violence raged in several Sunni towns W of Baghdad on Apr 8, Mohammed Rifat steered his green Jeep Cherokee out of the gates of Abu Ghraib prison, where he worked as a construction foreman for a Kellogg Brown & Root subcontractor. Rifat, 41, who returned to Iraq in Feb after 24 y in Toronto, was heading home to care for his aging mother. He never made it. Somewhere in the night, his family believes, kidnappers stopped his vehicle and spirited him away. This is everyone's worst nightmare in the new Iraq. A bewildering variety of groups -- some seeking money, some pushing a terrorist agenda -- have kidnapped dozens of foreigners since the end of the war last y. The hostages then become commodities in a deadly human trade that links street gangs to local mafias to insurgents like Abu Mousab al-Zarqawi, the al-Qaeda -- linked jihadi thought to be behind many of the recent terrorist attacks in Iraq. Victims are sold up the chain, and each handler scores 1000s of dollars, money used to finance gun running, drug smuggling and the insurgency. There are indications that Rifat may have been caught up in such a chain. There is a science to getting hostages back alive. Although every case is unique, tactics that have worked include broadly disseminating info, exploiting political and religious connections and ponying up cash. Sometimes luck prevails. Above all, it's critical to act quickly. Of the 52 hostages who have been abducted in the past year, 35 have been freed, most in the 1st days after capture. In Rifat's case, the top Canadian representative in Baghdad could offer little help, so Rifat's brother-in-law Abdullah al-Khazraji has taken charge. Venturing almost daily into the netherworld of Fallujah, the restive Sunni city where many of the hostages end up, al-Khazraji has met an assortment of shadowy informants. Some claim to know Rifat's whereabouts; others say they can deliver him for cash. "I feel like I'm hanging by a thread in this web," says al-Khazraji. "And I am dealing with ghosts." The W generally is aware of only kidnappings that are politically motivated, like the abduction and subsequent beheading of American businessman Nick Berg. But the practice is far more common, and the kidnappers -- the men who initially seize the innocents -- are often petty criminals. "Those who take the hostages are not sophisticated," says Andrew White, director of the Iraqi Center for Dialogue, Reconciliation and Peace. "They're thugs, gangsters." The best hope for springing a hostage comes at the initial stage. Groups like White's contact mosques, tribal leaders, militias and even former intel agents in search of news about the victim. Because the low-level gangs are after cash, a quick payout might free the hostage before he is "sold up" to groups with less easily deciphered, deadlier agendas. Such deals can be lucrative: prices paid range from $10,000 to $100,000, according to White, with US soldiers fetching the highest rate. In Rifat's case, his brother-in-law papered Fallujah's mosques in May with notices of Rifat's disappearance. Al-Khazraji received a phone call from someone who claimed to have seen Rifat. The man had gone to a Baghdad residence to buy a green Jeep Cherokee, apparently Rifat's car. Rifat, the man reported, was inside the house. When the buyer returned 2 days later to conclude the deal, Rifat was no longer there. "Where's the guy who was here?" the car buyer asked the sellers. According to al-Khazraji, the men told the buyer: "We gave him as a present to one of the religious sheiks." While such details are impossible to confirm, the account suggests that Rifat may have been passed from a gang of car thieves into the hands of Muslim extremists. UN announces new Iraq envoy UN (BBC). Sec-Gen Kofi Annan has appointed Pakistan's ambassador to Washington, Ashraf Jehangir Qazi, as the new UN envoy for Iraq. Former UN envoy Sergio Vieira de Mello was killed along with 21 other people in a bomb attack in Baghdad in Aug last y. Mr Qazi will be based in Baghdad and says he knows he has a challenge ahead of him. "It's a wide ranging responsibility," he said. "It involves the political facilitation as well as humanitarian facilitation with reconstruction, so it's a very wide ranging mandate basically to assist the interim Govt there towards a constitutionally elected govt, which is expected to happen by the end of 2006." Sharon offers Labour opp'n coalition deal Jerusalem (Independent). Ariel Sharon underlined his intention to form a new unity govt of the Israeli political centre with Labour by warning dissident right-wingers in his own party yesterday that he would call fresh elections if they blocked a coalition deal. His warning came after a one-hr breakfast meeting with the Labour leader, Shimon Peres, at which the 2 men agreed to negotiate a new coalition in order to push through the plan to withdraw 7,500 settlers from Gaza. The Gaza disengagement plan is opposed by the far-right of both the present coalition and of Mr Sharon's own party. The proposed coalition would align the govt much more closely with Israeli public opinion, which repeated polls have shown strongly supports the planned pull-out from Gaza. At a meeting of his own party's members in the Knesset, Mr Sharon castigated supposed coalition supporters for failing to back the govt in repeated confidence votes, and declared: "This is something that, of course, cannot continue. If it does continue, this places me in a position where I must form a new coalition." He added that if he could not "broaden" the coalition or he would have to "go for elections". The Labour leader made it clear to his own Knesset members that he saw a coalition as essential to ensure the success of the plan to end all 21 Gaza settlements -- along with 4 small ones in the N W Bank. While a realignment of the govt is now highly probable one way or the other, the terms of Labour's entry still have to be negotiated in detail. Mr Peres has made it clear that he wants to see the Gaza disengagement plan, due to be completed by the end of 2005, speeded up, and that he supports renewed peace negotiations with Ahmad Qureia, the Palestinian PM. At the same time, Mr Peres' supporters in the Labour party want to see him replace Sylvan Shalom as For Min, although Mr Sharon may instead try to offer the Labour leader a wide-ranging portfolio, possibly as a deputy PM, in order to keep Mr Shalom in the post. Mr Shalom and Benjamin Netanyahu, the Finance Min and the likeliest Likud candidate to succeed to the premiership, have both indicated their possible resistance to the coalition plan. There is also strong opp'n on the left to a new centrist coalition which may include a minority within the Labour Party. In Gaza itself, neighbours said a 70-yo paralysed Palestinian man was crushed to death when an Israeli army bulldozer demolished his home during a raid to raze buildings which the army said were militant gunposts used in rocket and shooting attacks. Palestinian medics and witnesses said Ibrahim Mahmoud Khalafallah was inside his home when the bulldozer arrived and his family was not given enough time to get him out before it was wrecked. They said the raid was accompanied by heavy gunfire from armoured vehicles. Ahmed Hammoud, a 28-yo father of 4 children whose house was also demolished, said: "I was in the house with my family when the bulldozer came in. We fled ... We couldn't save anything, not a bed nor the refrigerator. Nothing. We didn't know they were coming." He added: The bulldozer buried our neighbour and he died ... Everything happened in 10 minutes." Mr Khalafallah's cousin Suheila said his family told the bulldozer driver that the man was inside but could not stop it. Palestinian security sources said 26 houses were destroyed. Military sources said the troops made every effort to make sure the buildings -- which they said were flimsy shacks or unfinished structures -- were empty and warned people to leave, but they had not searched a minority of the buildings for fear they could be booby-trapped. The sources said troops had called in Arabic for people to leave before the bulldozers went in. Meanwhile govt officials angrily dismissed apparent hints by the Palestinian Authority Pres, Yasser Arafat, that Israel could have been responsible for the bomb which killed a 19-yo woman soldier in Tel Aviv on Sun. Mr Arafat had condemned the attack before telling reporters: "You know who is behind these acts. Europe knows it, the Americans know it, the Israelis know it." Raanan Gissin, a rep for Mr Sharon, said the suggestion was the "equivalent of the traditional blood libel of the Middle Ages". Orange parade ends in violence Belfast (Reuters). 25 police officers were injured in clashes in a flash-point district of Belfast when the biggest day in N Ireland's summer marching season ended in violence. Hundreds of Protestants and Catholics pelted each other with stones and bottles in the Ardoyne district in the N of the city after a contentious "Orange" parade on Mon evening. None of the officers were seriously injured. The clashes broke out as Protestant Orangemen marched past the Catholic Ardoyne neighbourhood in celebration of a famous battlefield victory over Catholics more than 300 y ago. Hundreds of bystanders from both sides of N Ireland's sectarian divide threw missiles at each other over the top of the parade and over the huge blockade of police and Brit Army vehicles and armoured cars set up to keep them apart. Catholic protesters then fought running battles with troops and riot police, who responded briefly with a water cannon. The trouble lasted around an hour and contrasted sharply with the 100s of largely peaceful parades which took place elsewhere in the Brit-ruled province. North Belfast was quiet late on Mon, although a heavy security presence remained. "It was very clear this was an un-provoked attack, bottles stones and bricks flying over people's heads into the crowd," said Nigel Dodds, an Orangeman and member of parliament from the Democratic Unionist Party. Sinn Fein, the Irish republican party, blamed the police and Protestant pro-Brit Loyalists for the skirmishes. "You can't blame this crowd," snr Sinn Fein member Gerry Kelly said. "This crowd was attacked by Loyalists, by whoever was on the other side of the barrier. "The whole machine was set up to force an anti-Catholic parade and, frankly, drunken louts through this area." Belfast's police chief, Assistant Chief Constable Duncan McCausland, said in a statement his officers had responded "appropriately and proportionally" to the trouble. The Ardoyne area always promised to be the flash-point of this y's Orange marches, which celebrate a Protestant victory at the Battle of the Boyne on Jul 12, 1690. Protestants were angry that authorities had restricted the number of people who could march the route while Catholics, who view the yearly parades as triumphalist and provocative, said the march should be banned altogether. Until Mon's violence, this summer's "marching season" was one of the most peaceful in recent memory, raising hopes politicians might be able to put the fragile peace process back on track when they hold talks in Sep. Those talks will be aimed at reviving home rule in N Ireland, suspended since late 2002 when the province's power-sharing govt collapsed. Muslim activists campaign against headscarf rulings London. Muslim activists from across Europe have begun a campaign to defend the right of Muslim women to cover their heads. The campaign was launched at a conference in London. Several speakers at the conference said the headscarf ban in France and Germany was a violation of individual and religious freedoms. They emphasise that instead of being a symbol of subjugation of women, the hejab was an expression of freedom and self respect. Addressing the conference the outspoken Muslim cleric Yusuf al-Qaradawi urged the French Govt to reverse the ban on wearing the hejab in schools, saying the ban evokes a ghetto mentality. Similar messages of protest were made against bans in several German states and in Belgium. Currently, anti-racial discrimination laws in Brit ensure the right of Muslim students to wear their headscarf, but the issue continues to be controversial. Hunt for killer shark called off Perth. Fisheries officers in WA have called off the search for the shark responsible for the fatal attack on surfer Brad Smith. Mr Smith, 29, was killed in a shark attack when he was surfing at the popular Left Handers Beach, nr Gracetown. Experts say both a White Pointer and a Bronze Whaler shark may have been involved in the attack. But after 2 days patrolling the area, Fisheries officers say they have been unable to track down the shark. Dept of Fisheries rep Tony Capalluti says it took 18 hr to get to the scene of the attack. He says the shark is probably long gone. "We ended that search last night at dusk," he said. "The reason we did that is that there were no sightings and we believe that there was no use in continuing with a dedicated search." A local committee will decide today whether to reopen the beach to the public. Drugs furore puts Athens team on hold Aussie cyclist Sean Eadie denies trafficking in a performance-enhancing drug. Canberra. Aussie Olympic selections are on hold after cyclist Sean Eadie was charged yesterday with trafficking in a banned substance. The Aussie Olympic Committee (AOC) has postponed naming any further athletes for the Athens Games until the Aussie Sports Drug Agency has completed background checks. The AOC had planned to announce the men's and women's basketball and men's volleyball squads for Athens today. The AOC and Cycling AUS yesterday issued Eadie with an infraction notice after Customs officers reported intercepting a package addressed to him containing human growth hormone. If found guilty of trafficking, Eadie faces a two-y ban and could lose the bronze medal he won at the SYD Olympics. Eadie, who has already been nominated for the Athens Games, has strongly rejected the allegations. Eadie says he has never imported banned substances. "Never used them, never imported them, never even thought of or tried to import them or use them," Eadie said. "It's against the very philosophy I have in sport, so I absolutely deny that and I'll look forward to resolving this in my favour very quickly and getting back into the news for my outstanding cycling results." AOC president John Coates says a final check on prospective Athens Olympians will be carried out before further team announcements are made. Coates has written to Customs Min Chris Ellison to request Customs check its records after yesterday's revelation. Coates says he has also asked the Aussie Sports Drug Agency to complete background checks on all nominated athletes and confirm they are not under any doping clouds. "Last night I wrote to Chris Ellison, the Min for Justice and Customs, and asked if he could instruct his people to run our list through all of Customs's records just to see if there's a problem there," Mr Coates said. Baby humpback dies after stranding Ballina, NSW. A baby humpback whale has died after being stranded on a beach on the north coast of NSW. Officers of the Nat'l Parks and Wildlife Service had to euthanase the calf last night. The humpback calf became stranded on rocks at Flat Rock beach near Ballina yesterday. Lance Ferris from Aussie Seabird Rescue says it was only a few weeks old but very sick. "We did a lot of work with the little animal, we floated it about the deeper water and bought him up on the beach through the night to keep him still and calm," he said. "The sea was fairly big here but when we got the blood tests back the blood indicated that the animal was in a very bad way. We didn't have much choice sadly, it had to happen, it would not have survived in that condition." 'New Beatles songs' found in Vic The Beatles ... potential new material uncovered in AUS. London (AFP). A Brit tourist travelling in Vic has reportedly found a treasure trove of material related to the Beatles which may contain previously unheard songs. The Times newspaper reports the tourist, Fraser Claughton, found the material in an old suitcase at a flea market in the town of Lara, SW of MEL, and bought the lot for $50 earlier this y. Beatles experts have yet to properly examine the material, thought to have once belonged to one of the Brit band's close associates. But they hope that tapes within the case could contain new material. Mr Claughton was simply looking for a cheap suitcase to carry his possessions but snapped up the case when he saw it contained a jumble of about 400 photographs, concert programs and sealed tapes marked "Abbey Road" -- the Beatles's favoured recording studio. "It was like finding the end of the rainbow in AUS," Mr Claughton told the Times. Beatles experts told the newspaper they believed the case contained the long-lost archive of Mal Evans, who worked as a some-time sound recordist and additional musician for the Beatles. Mr Evans died in 1976 and rumours of his collection, which he compiled for a planned but never-completed memoir, have circulated among Beatles collectors for years. Among tapes inside the case were alternative versions of well-known songs such as We Can Work It Out as well as some new material, a pop memorabilia consultant for auctioneers Christie's told the newspaper. "It certainly does tie in with Mal Evans. He had access to the Beatles making music when there was no one else around," Peter Doggett said. "There has been much debate as to what happened to his memorabilia. It is possible that this is it, or part of it." One four-and-a-half hour recording on reel-to-reel tape in the suitcase includes Beatles Paul McCartney and John Lennon talking as they experiment with previously unknown versions of songs, the paper added. The archive could be worth 100s of 1000s of dollars if sold. C'wealth accuses state of failing in canker outbreak Canberra. The Fed Govt says Qld authorities may have found citrus canker much sooner if they were doing their job properly. The Govt says it appears Qld did not conduct regular follow up inspections nr Emerald after an investigation by the Aussie Quarantine Inspection Service (AQIS) in 2001. AQIS officers investigated allegations potentially infectious plant material had been imported but nothing was found after 18-months of surveillance. Fed Agriculture Min Warren Truss says Qld agreed to continue the surveillance, but that did not happen. "It seems as though at that time the committed level of inspection didn't occur," he said. "I'm told the farmers in the area weren't very keen about it and instead of exercising the powers that the state had to enter properties and have a look they chose not to do so." Rates talk returns as business picks up Retail got a helping hand from family payments in the Budget. Melbourne. AUS's biggest bank says business activity around the nation appears to be picking up, after a slowdown earlier in the year. The Nat'l AUS Bank's latest monthly business survey contains surprisingly strong results. The NAB says its Jun survey indicates business conditions and confidence have improved, highlighting the economy's underlying strength. Chief economist Alan Oster says sales and profitability are robust and forward orders have moved significantly higher for the 1st time since late last y. "After slowing earlier in this y, it looks to us as if the domestic economy is gathering a bit of strength," Mr Oster said. He says the fed Budget's family payments have provided support to the retail sector: "Particularly in Jun, we did see a very large kick in retail sales." Mr Oster says the survey results suggest the need for a further increase in official interest rates. Govt overhauls rules on residency Amanda Vanstone says previous Govt policies have allowed the latest change. Canberra. Immig Min Amanda Vanstone has announced 9,500 refugees holding temporary protection visa will be able to apply to stay permanently in AUS. The temporary protection visa system was introduced in 1999 and allowed refugees to stay for 3 years, with the Immigration Dept then assessing if the visa holder could be returned to their home country. The new policy means they can apply for permanent residency. Sen Vanstone denies the shift is a softening of the Govt's border protection policy. "I can say this -- that if we hadn't brought border security under control, if we still had a problem with people smugglers, we wouldn't be bringing about this change," she said. "But things have changed and the Govt is responsive to that change." But Labor's Stephen Smith believes the Govt is chasing votes. "This is a Govt that will do or say anything to get itself elected or re-elected," he said. Sen Vanstone cannot say how long the new visa applications will take to process. * Reversal Fed Cabinet made the radical reversal of policy yesterday after lobbying from a number of Coalition backbenchers, including South Aussie Patrick Secker and Vic John Forrest. Mr Forrest, the Member for Mallee, says temporary visa holders do not have the same access to Govt services as refugees, even though many have become part of society, especially in areas like his electorate. He welcomed yesterday's Cabinet decision, although those affected will still have to apply for permanent residency. "I've supported the Govt's position in not wanting to send inappropriate signals to people-smugglers and some of those people involved in the process," Mr Forrest said. "We've done that, the boats have stopped and it's now time to adopt a compassionate approach to people who come from backgrounds, from people that you and I would struggle to understand." Refugee advocates have welcomed the change. Independent Council for Refugee Advocacy president Marion Le says heavy lobbying by regional MPs and the change in Immigration Min are the main reasons for the change of heart. "The fact that Amanda Vanstone has been in there and has been able to take a much more pragmatic approach and come to it as it were with clean hands, doesn't lose any face over it, can sweep in and sweep out having cleared the decks, I think this couldn't have happened under Phillip Ruddock," she said. * 'Better country' Goulburn Valley fruit grower Ross Turnbull says if asylum seekers provide economic benefit to a region, they should be allowed to remain in the country. "I hear all the arguments from Govt about jumping the queue and going through the right channels but that can be as I understand it a very lengthy and difficult process," he said. "I'm delighted that these people have arrived here and are providing sort of opportunities for themselves and for us to make AUS a better country." Meanwhile, the Aussie Democrats are asking the Govt to waive the debts which asylum seekers accrue while in detention. Aussie Democrats leader Andrew Bartlett says under the Howard Govt's policy of charging for the cost of detention, one refugee owes more than $63,000. Sen Bartlett says while it is welcome news that many temporary visa holders will be offered permanent residency, the Govt should forgive their debts. "It's bad enough to have caused all this suffering for them but to expect them to pay an enormous bill for being imprisoned without having committed a crime is simply a travesty and the Govt should, as part of this, waive all of those so-called debts," he said. "It's ridiculous for refugees, for anybody who's been in detention for a prolonged period of time as a result of the Govt's length of processes to have to pay for that when usually they've had enormous trauma inflicted on them as a consequence." Govt shift gives refugees hope of staying Canberra. The Fed Govt is to offer permanent residency to up to 10,000 refugees in AUS on temporary protection visas. Fed Cabinet made the radical reversal of policy yesterday after lobbying from a number of Coalition backbenchers, including Vic MP John Forrest. Mr Forrest, the Member for Mallee, says temporary visa holders do not have the same access to Govt services as refugees, even though many have become part of society, especially in areas like his electorate. He welcomed yesterday's Cabinet decision, although those affected will still have to apply for permanent residency. "I've supported the Govt's position in not wanting to send inappropriate signals to people-smugglers and some of those people involved in the process," Mr Forrest said. "We've done that, the boats have stopped and it's now time to adopt a compassionate approach to people who come from backgrounds, from people that you and I would struggle to understand." Refugee advocates have welcomed the change. Independent Council for Refugee Advocacy president Marion Le says heavy lobbying by regional MPs and the change in Immigration Min are the main reasons for the change of heart. "The fact that Amanda Vanstone has been in there and has been able to take a much more pragmatic approach and come to it as it were with clean hands, doesn't lose any face over it, can sweep in and sweep out having cleared the decks, I think this couldn't have happened under Phillip Ruddock," she said. PM John Howard has confirmed the Govt will make some changes to its policy on refugees living in AUS on temporary protection visas. Mr Howard says there are "some issues" with people whose temporary protection visas are soon to expire and the Immigration Min will detail the changes at a media conference today. "It will reaffirm the effectiveness of our border protection policy and it will deal sensibly with people who are coming off temporary protection visas in the nr future and also with some people who have been working in the community, particularly in regional areas," he said. Govt changes refugee visa rules Canberra (AAP). The Fed Govt has announced it will allow 9,500 temporary protection visa (TPV) holders to apply to stay in AUS permanently. Immigration Min Amanda Vanstone said the TPV holders would not have to leave the country in order to lodge their applications for permanent residency. "This decision ... recognises the fact that many TPV holders are making a significant contribution to the Aussie community, particularly in regional areas," Sen Vanstone told reporters. Sen Vanstone denied the move would encourage people smugglers to target AUS as a destination, saying the govt remained serious about border protection. The controversial three-y TPV was introduced in 1999 in response to a surge of unauthorised boat arrivals. The new arrangements will also apply to offshore temporary humanitarian visa holders. Sen Vanstone said the developments were a major step forward for the holders of TPVs. "Not all of them, of course, will get them, but they will be able to apply and they won't have to go offshore in order to do so," Sen Vanstone told reporters in CBR. With several thousand TPV holders already in a position to apply for permanent protection, the move means they can concurrently try to get more than one type of permanent visa. In addition, the govt also announced a new return-pending visa for those who failed in their efforts for permanent residency. It would give those who failed to get permanent residency more time to leave AUS. Sen Vanstone said the return-pending visa would give people 18 m to make their own departure arrangements, while still receiving the same Medicare and work rights benefits in line with their TPVs. "We don't see the need to make them rush home, in fact we see the need to give them the opportunity to make decent and coordinated arrangements to return home," she said. Sen Vanstone said the govt was not softening its stance on the contentious immigration issue of immigration in the lead-up to the fed election, and was not sending the wrong message to people smugglers. "As govt policy changes, it needs to reflect the changed situation," she said. Study shows immigrant divide Adelaide (AAP). AUS's recent immigrants tended to live at the extreme ends of society, a new study has found. The study by University of Adel social researcher Professor Graeme Hugo found recent arrivals generally had better paid jobs and qualifications than those who arrived in the early 1990s. In the 1st major study of 2001 Census immigration data, Prof Hugo found about 6% of recent immigrants earned more than $1,500 a week, compared with 4% of Aussie-born people. But at the same time a significant group of recent immigrants -- mainly unskilled workers from non-European, less-developed nations -- were among the most disadvantaged people in AUS. They were more highly represented in the labouring areas of the workforce than Aussie-born people and often had poor English skills. And they represented almost a quarter of the population on unemployment benefits in 2001. "While the average level of labour market performance undoubtedly has risen significantly, this should not divert attention away from the fact that a sub-group of recent immigrants remain among the most disadvantaged in the Aussie community," Prof Hugo said. Prof Hugo said that despite policy changes, family and humanitarian immigrants were still experiencing greater problems finding work and getting established than skilled immigrants. "There remains a pressing need for post-arrival support programs in areas of English language training, assistance in entry to the labour market, etc," he said in the report. The study also showed recent immigrants tended to have higher fertility, and were less likely to be divorced, marry earlier and live in non-family households than Aussie-born and longer standing immigrants. They were also more likely to rent a home and live in higher-density housing. Just more than 80% of AUS's 4.1 mn overseas-born people settled in major urban areas, while 7% chose to live in rural towns. "Internat'l migration has continued to be one of the major sources of social change in AUS between 1996 and 2001," Prof Hugo said. Hijack bid was 2nd attempt, court hears Melbourne. A MEL court has heard that a man who tried to hijack a Qantas plane had previously tried to take over another flight and had flown around AUS looking for crash sites. David Mark Robinson, 41, of Bentleigh East, is facing 3 charges including attempting to hijack a MEL to Launceston Qantas flight in May last y. The Supreme Court has heard Robinson thought he was on a mission from God when he armed himself with wooden stakes, aerosol cans and lighters and planned to crash the plane into the Walls of Jerusalem Nat'l Park in Tas. Robinson was overpowered by a flight attendant and passengers. In a video-taped interview played to the jury, he told Aussie Fed Police officers he had tried to hijack a flight from Hobart in early Jan last y. He said that after going to the toilet he tried to open the cockpit door but it was locked and he was challenged by flight attendants. He said he was not harmed. In the taped interview, Robinson also told officers he had flown all over AUS, including capital cities, Broome, outback NT and Port Douglas, looking for a woman wearing crimson and scarlet who would show him where the devil lived. He said he found her in the Walls of Jerusalem Nat'l Park and planned to crash the plane there to rid the devil from the earth. He has pleaded not guilty due to mentally impairment and the jury must decide whether he was mentally impaired at the time of his offences. Govt urged to restructure Medicare A prominent internat'l think tank is calling on the Govt to restructure Medicare. Canberra. The Institute of Health Economics and Technology Assessment says raising taxes alone is not a sustainable way to finance a health system, particularly as AUS's population ages. Institute director Paul Gross says AUS needs to move towards more privatised health insurance. "Looking at the way we are paying for it and what we're raising for it from the Medicare levy, about $6 bn a y out of total expenditures of about $70 bn this y, Medicare is not going to be able to pay for the care we need in the future," he said. Meanwhile, an Independent member of Fed Parliament says a survey of his electorate has shown strong support for an increased Medicare levy. Fed Member for New England Tony Windsor says 4,000 people have responded to a survey he is conducting in his electorate. He says there is strong support for the Govt to increase the Medicare levy from 1.5% to 2%. Respondents believe there is an argument for a 0.5% increase if it is used to improve bulk billing levels, extend payment to dental care and deliver more medical services. Mr Windsor says there is strong interest in health matters in the electorate. NT may be in line for nuke dump: MP [That's why God made Kakadu!] Darwin. The Labor Member for Lingiari, Warren Snowden, says the Northern Territory may be being scouted as the site of a nuclear waste dump, because a Country Liberal Party (CLP) member has supported the idea in the past. The Fed Govt is reviewing alternative locations for the dump after a court ruling against the compulsory acquisition of land in SA to house the facility. Mr Snowden says the CLP Member for Solomon, David Tollner, may have sparked interest in the N Territory when he said last y that he did not object to a nuclear waste site. Mr Snowden says there have been no discussions with the Govt or the community. "To have the Member for Solomon go out and say, 'well look it's not that bad a thing to happen in the N Territory, there's plenty of places we could possibly have it' is just irresponsible and in my view stupid," he said. MP says Territory should consider nuclear dump Darwin. The Fed Member for Solomon Dave Tollner says the Northern Territory should accept a nuclear waste dump if it was found to be the safest place for the facility. The Fed Govt is reviewing its options for disposing of radioactive waste. It comes after a Fed Court ruling that the Commonwealth's compulsory acquisition of land for the dump in SA was unlawful. Mr Tollner says while it is easy for people like Labor's Warren Snowdon to reject the dump, opponents have not suggested alternatives. Mr Tollner says a nuclear waste facility requires a secure and stable environment like that found in central AUS. "If parts of the N Territory were deemed to be the safest possible location to store this waste I think we have an obligation to AUS to store the waste here," he said. ACT orders kangaroo cull Canberra. The ACT Govt has begun culling up to 800 kangaroos nr Googong Dam, due to fears of a threat to CBR's water supply. Environment ACT rep Maxine Cooper says because of the prolonged drought the kangaroos around the dam have reduced ground cover to a level which presents a serious threat to the quality of CBR's water supply. She says professional shooters have been employed to conduct the cull. Dr Cooper admits recent counting has shown a natural decline in kangaroos in the area but she says a cull is deemed the most humane and effective measure to control numbers into the future. Dr Cooper says the protection of the water supply is of paramount importance. A wildlife protection group is threatening to blockade the cull. Pat O'Brien from the Qld-based Wildlife Protection Association says that is rubbish and he has offered to help local activists stop the cull. Cable car mooted for Mt Wellington Hobart. A cable car on Mt Wellington, nr Hobart, is back on the agenda. In the mid-1990s Hobart engineer Tim Burbury dropped the idea after community concern about its economic viability and visual impact. But he says the new proposal would be different from the original and would possibly incorporate a different route. Mr Burbury says a cable car would mean the top of the mountain would be accessible to visitors all y round. "One of the great features of the tramway system was that you would have immediate access to the summit 24 hr a day, 365 days a year," he said. "When the 1st proposal was put in we demonstrated then that we thought that at worst there would probably be 5 or 6 days a year where the tramway wouldn't be able to operate because of adverse weather conditions." Mr Burbury says he has only had informal meetings with the Wellington Park Management Authority, but hopes to have a proposal ready for consideration by the Hobart City Council within the year. Submarine spills soot into SA river Adelaide. The Aussie Submarine Corporation says there has been no damage to the marine life in the Port River in Adel after a spill involving a submarine last night. It was thought oil had spilled from HMAS Farncomb but at 1st light it was discovered the pollution was not oil but diesel soot that had built up in the submarine's mufflers and was released when the engines were restarted after several wk idle. Dept of Transport workers and the Metropolitan Fire Service worked to contain the spill, after being alerted by the corporation. Corporation rep Jayne Correll says the soot does not pose a threat to water life. "Transport SA Marine Division and the Environment Protection Authority came down this morning and the river's been given a clean bill of health," she said. "It's a completely normal part of the submarine process and there's been absolutely no effect on marine life at all." Kemp to quit politics Melbourne. Fed Env Min David Kemp has announced he will not contest the next election. The 62-yo has held the seat of Goldstein, based in MEL, since 1990 and was 1st elevated to the ministry in 1996. He was the minister for Education in the Howard Govt for four years from 1997 and has held the Environment portfolio since 2001. Dr Kemp denies he has failed to give the Liberal Party sufficient notice of his departure to find a candidate to replace him, and insists he is leaving on good terms with the Govt. He says he is quitting politics for personal reasons. "My 2 younger sons at home and my wife have been tremendously supportive of the demands of politics over a number of y now, but I've reached the view that 15 y since my preselection is long enough for the family," he said. "I can't really ask them for another 3 y and so I've decided to step down as the candidate for Goldstein." He says he believes he has given the Liberal Party enough time to find a candidate to replace him. "These decisions are never easy or straight forward decisions but I've not been one of those who believed that we'd be going to a very early election," he said. "I think there's still good time for the party to run its processes and to make a considered choice of candidate to stand at the election." Latham moves to boost US relations Labor leader Mark Latham outlines his foreign policy. Sydney. Fed Opp'n leader Mark Latham is attempting to boost the ALP's credentials with the US, saying a Labor govt would go to war again if the US was the target of another major terrorist attack. Mr Latham has used a major foreign policy speech in SYD to pledge more assistance in the war against terrorism in the Asia-Pacific region and against anyone targeting the US, citing Labor's previous support for the war in Afghanistan. "Should another attack produce an identifiable source, we'd be prepared to support similar action," he said. The Govt says Kim Beazley taking on the defence portfolio for Labor is a token bid to patch up the party's relationship with the US Govt. Mr Beazley says his job is to just advocate good policy. "If you've got an explanation for the Americans, they won't necessarily like what you're saying but provided you appreciate what you're doing over time they come to not agree with it, they come to accept it," Mr Beazley said. Mr Latham has again criticised the war in Iraq and reiterated his promise to withdraw Aussie troops before the end of the year. But he has also pledged $75 mn in humanitarian aid to help rebuild the country. He also used the speech to call for a permanent engagement with Asia. He accused Prime Min John Howard of compromising AUS's capacity for leadership in the region. Mr Latham says AUS should have played a larger role in maritime security talks in South-East Asia to stop terrorists targeting shipping. "Where was AUS in all this? We have massive regional expertise and maritime and air forces well suited to these tasks," Mr Latham said. He has urged closer ties with Indonesia, outlining plans to help that country's counter-terrorism forces and education system. ALP's Iraq policy is expedient: PM [Projection in its purest form!] Canberra (AAP). The Labor Party is trying to have two-bob each way with its new policy on Iraq, PM John Howard says. Mr Howard said the policy, unveiled in a major speech by Opp'n Leader Mark Latham, was expedient. The ALP reaffirmed its policy to bring AUS's 850 personnel in Iraq home by the end of the y but it would leave in place security for AUS's diplomatic mission in Baghdad. It would also leave Aussie warships and RAAF Orion aircraft to protect Iraqi interests in the Persian Gulf. In their place, Mr Latham promised to send customs officers, health workers and administrative staff to help the new Iraqi Admin secure its borders and improve its health system. Mr Howard told SYD radio 2GB that Mr Latham, who also returned Kim Beazley to the Labor front-bench as defence rep, was trying to patch things up for the election. "Mr Latham has to admit that his original commitment to bring the troops home by Christmas was a terrible mistake," he said. Mr Howard said the new Labor policy was confusing and contradictory. "On the one hand he's saying I'm still committed to bringing them home by Christmas but on the other hand I'm going to leave some of the elements there," he said. "The reality is they should all stay until their job has been finished. "Just trying to patch things up for the election is not going to alter that reality." Mr Howard also questioned who was going to protect the new non-combatant staff Labor planned to send to Iraq. "Can I ask who is going to protect them? Is he going to rely on other people? Is he going to rely on the Americans or Brit?" he said. "Shouldn't we protect our own?" Mr Howard said Mr Latham was trying to claim the war against terrorism and the war in Iraq were unconnected. Latham 'betting each way' on Iraq John Howard ... Labor conflicted on Iraq. Sydney. PM John Howard says Labor's policy on Iraq is becoming increasingly confused. Opp'n leader Mark Latham last night announced a Labor govt would send up to 30 military or civilian personnel to Iraq to help the UN rebuild the country. It would also provide Customs officers to strengthen Iraq's border security. The Opp'n has been under pressure from the Govt and the US Govt over its promise to withdraw AUS's troops from Iraq by Christmas. Mr Howard says Labor's policy is contradictory. "Mr Latham has to admit, if he's fair dinkum, that his original commitment to bring the troops home by Christmas was a terrible mistake," Mr Howard told SYD radio 2GB. "He's now trying to patch things up for the election but he really hasn't recanted that policy, he still hasn't had a change of heart or a change of principle and he's now trying in a sense to have 2 bob each way." Mr Howard says Labor's new defence rep, Kim Beazley, has not improved the Opp'n's Iraq policy. "Mr Beazley is not the leader," the PM said. "Mr Latham is and last night we saw the emergence of a very confused and contradictory policy on Iraq." Foreign Affairs Min Alexander Downer says Labor's latest announcement is its ninth policy position on Iraq in just 4 m. "He wants to send in more Aussie civilians, unarmed civilians, and pull out our military contribution," Mr Downer said. "I would have thought this wasn't a time to be sending unarmed Customs officers to monitor Iraq's 3,500-km border at a time when we should make sure there was proper security." * Balance But Mr Beazley says the Opp'n has struck the right balance on Iraq. "What we put down yesterday was a careful, considered package in the context of the right strategy for AUS and the right strategy for the alliance with the US," he said. Labor's foreign affairs rep, Kevin Rudd, rejects any suggestion that Mr Latham's speech yesterday is a back-flip. "This is an entirely consistent position with what we've said all along," Mr Rudd said. "That is, how do we best support the United Nations in Iraq and how do we best support the UN's role more generally in the internat'l community. "It is something which we've been strongly supportive of from the beginning of the entire debate on Iraq. If you go back to the beginning of the Iraq war, we've always advocated that this matter should be handled through the agency of the UN." Mr Rudd says there is still a discernible difference between what the Govt is doing and what Labor plans to do. "The Govt's policy on Iraq, from the beginning, has been fundamentally flawed," he said. "It went to war unilaterally. It refused to acknowledge the role of the United Nations Security Council." Costello criticised for flying Tas visit Canberra. Fed Treasurer Peter Costello will make a flying visit to Tas later this wk but not on official Govt business. Mr Costello will be the special guest at a function to celebrate Special Min for State Eric Abetz's 10 y in the Senate. Other than attending Sen Abetz's 10-y anniversary dinner at Wrest Point Casino, Mr Costello has no other engagements during his flying visit to Hobart. The leader of the Tasn Govt in the Upper House, Michael Aird, says that is a disgrace given that Mr Costello visits Tas so infrequently. "He's like the Scarlet Pimpernel, coming and going under the cover of darkness, when he should be coming down here in the cold light of day explaining what he's done to Tas in terms of financial assistance," he said. Sen Abetz says that is nonsense. "Whilst Mr Aird mightn't get to see Peter Costello on this visit, every single day Michael Aird gets to see the $mns that Peter Costello delivers to the benefit of all Tasns," he said. Sen Abetz says 230 guests will have the opportunity to hear Mr Costello speak. Govt drops stricter Internet gambling proposal Canberra. The Fed Govt has decided against imposing stricter regulations on Internet gambling. Welfare organisations wanted the Govt to ban Aussie access to foreign Internet betting exchanges, warning they could create more problem gamblers. But Communications Min Daryl Williams says a govt review has found no "compelling evidence" to suggest that the betting exchanges will increase the level of problem gambling. Mr Williams has called on state and territory govts to protect consumers by strengthening their licensing and regulation of gambling services. Beazley rules out leadership challenge Sydney. The Fed Opp'n's new defence rep, Kim Beazley, says he has no intention of again challenging for the Labor leadership. Mr Beazley yesterday returned to the Shadow Ministry, vowing to combat terrorism if the ALP wins the upcoming election. Mr Beazley twice unsuccessfully stood for the Labor leadership last year but says the party now supports the new leader. He says he would like to serve as defence minister for the longer term. "I have always thought if you can do the job properly you need to look at a couple of terms in the portfolio," he said. Police say Internet meeting led to robbery Sydney. A 21-yo woman has been charged after allegedly tying up a man she met over the Internet and robbing him. Police say the woman was arrested in Bondi Junction yesterday and charged with aggravated break and enter and detaining a person for advantage. It is alleged she met the man in Nov last y and arranged to meet him at his Quakers Hill home in W SYD. Police say when she got there she tied the man up, left the house and returned with a masked man who helped her rob the property. Police say they are looking into a number of similar incidents are asking for anyone with info to contact them. Woman found dead next to baby son Rye, Vic. Vicn homicide detectives say a woman found dead next to her one-yo son last night had been assaulted. The woman's body was found after her 6-yo son sought help at a nearby real estate agent at Rye on the Mornington Peninsula about 7.00 pm. Ambulance paramedics found the woman, aged in her 30s, next to her son. Detectives say a post mortem examination will be conducted to establish the exact cause of death. Police last night conducted a door-knock of residents in the area and forensic evidence has been taken from the house in Dundas Street. Anyone with info is asked to contact CrimeStoppers. Sisters found on tiny Torres Strait island Thursday Is, Qld. 3 sisters, aged 10 to 15, have been found on a tiny Torres Strait island after their family's dinghy capsized last wk but their mother, father and brother remain missing. The family of 6 left Badu Island for Thu Island a wk ago, a trip that usually takes an hour in good weather. Rescuers have today expanded their search for the man, woman and their three-yo son. Searchers are using 2 helicopters, 3 planes and police boats to scour dozens of small islands, after the 3 sisters were rescued from Matu Island yesterday afternoon. The search began yesterday when authorities were told the family was missing. An Aussie Maritime Safety Authority rep says the motor on the family's 5-m dinghy stopped and it capsized in rough seas during the crossing last wk. The sisters have been taken back to Badu Island and a police rep says they were unhurt. Forecasters spot 'unusual' climate swing Darwin. Weather forecasters say a massive swing in a key climate indicator is unusual but there is no obvious link to the greenhouse effect. The monthly S Oscillation Index readings have varied by up to 30 points. Since Dec the index has ranged from -16 to +13, while in most years the index normally varies by about 10 points. Such swings have only been seen twice since the 1930s; the last one was in the mid-1980s following a major drought. The NT Regional Climate Centre's Sam Cleland says overall, the index average across the y has been close to zero or neutral meaning there is no clear drought or rain patterns. "The next El Nino would be unlikely to develop until ... late summer, early autumn next y now, if we were to see one," he said. Mr Cleland says there is no obvious sign of a link between global warming and the index swings. {{ Midnight. Pres Putin has ordered Russian diplomats to improve the nation's image abroad. Brit Chancellor Gordon Brown is to make a key speech in the Commons today. The govt's latest spending review follows a weekend of speculation that Blair wants to stand down as PM. It's expected Labour will reduce spending in all areas except health and education. Brown says gains can be made through increased efficiency in the public service and indicated about 140,000 jobs would be cut. He hopes to save #21 bn through the cuts and efficiency measures. An MI5 security review of Brit Parliament has found a number of glaring problems. It follows an incident in May, in which a protest group got into parliament and threw a flour bomb at PM Blair. The report says concrete blocks placed around key sites to stop suicide bombers could become deadly projectiles in such an attack. It suggests replacing them with steel barriers, embedded deep in the ground. The report also points out the vulnerability of Big Ben. A bomber could bring it down, blocking a key thoroughfare and possibly falling onto the Commons. 0.30 am A new survey in Brit has shown racial discrimination is rife in company hiring. The BBC submitted 50 job applications to companies for fake employees that had white European, black African and Muslim names. The study found about 1/4 of the European employees were offered an interview. But only 13% of the African employees, and only 9% of the employees with Muslim names were made an offer. The results were statistically significant. 2 am EU For Mins have urged Iraq not to re-implement the death penalty. The Iraqi FM said he himself was a campaigner against capital punishment, but many Iraqis were looking for a deterrence against insurgency. He promised it would be used for significant crimes, like mass murder and sabotage. Militants holding a Phil truck driver in Iraq have extended the deadline for withdrawal of Phil troops to next Sun. Tamils have threatened to renew their war against the govt in Colombo unless it stops supporting a rebel Tamil known as Col Kiruna. The threat appeared on a pro LTTE website. 2 cyclists have been thrown out of the Tour de France after they were implicated in a doping scandal in Italy. Mikhail Khodorkovsky is back in a Moscow court. He's still said to be seeking a deal with the govt. His co-defendant is facing health problems and his lawyer says he's being denied medical treatment. 3 am In his first speech after scathing criticism of the CIA intel used to justify GWII, Pres Bush said he was right to launch the invasion. He said he'd taken the fight to the enemy and made America safer. Making Americans safer was his message of the day. He repeated it at least 8 times. 7 am The AUS govt is to offer residency to 10,000 asylum seekers presently on temp protection visas. The back-flip came after a Cabinet meeting yesterday. The govt had come under pressure from several Liberal back-benchers in marginal seats. Immig Min Amanda Vanstone was not immediately available for comment. Until now, the Howard govt has said such a measure would "send the wrong message" to people smugglers and illegal immigrants. A newspaper says David Kemp is to announce his resignation from political life today. [They were right!] In Adel, the Tee Tree Gully council is to pass anti-cat laws today. The move will make it the first in SA to resrict the animals to their owners' back yards. An internat'l think tank says raising taxes alone is no way to support a health system. The group has suggested AUS should move toward a privatised health system. Elsewhere, a Fed MP says a survey [AKA "push poll"] in his electorate shows voters would be willing to pay more Medicare levy for health services. With 4,000 responses, voters allegedly backed a plan to raise the levy from 1.5% to 2% of taxable income. The Fed govt says the Opp'n has moved position again on its Iraq policy. A rep for FM Downer says last night's policy speech by Mark Latham was Labor's 9th position on the Iraq deployment. NZ's Conservation Dept is worried, after 3 of the rare kakapo parrots died of septicemia within 24 hrs. The deaths leave 83 animals world-wide. NZ conservation groups and the govt have scheduled emergency meetings. The parrots are the world's biggest, weighing up to 1.5 kg. They're flightless, but climb trees. With adult males living more than 100 y they are also the world's longest-lived birds. A cold snap has swept S America, with blow-zero temps recorded in several countries. Up to 6 deaths are blamed on the temps. 75,000 farm animals died in the cold weather. 9.30 am Polls show a boost in support for John Kerry. After last Tue he's received an apparent 3 pt bounce. The fact Kerry and Edwards are ahead in 4 polls proves the Dems got a bounce, say commentators. By naming Edwards as VP early, the Dems are hoping for a m-long bounce to cover the Boston Convention. Then comes 3 wks of Olympic Games, where the Dems fear their messages will get lost. After that is the Republication Convention and the 9/11 anniversary, where the Reps are predicted to come roaring back. According to a source at the Phil embassy in Iraq, kidnappers have promised to release a truck driver after the Under-sec of For Affairs made an announcement on al-Jazeera the Phil will withdraw its troops on Aug 20. The release of the hostage is now expected Tue. Opp'n For Af rep Kevin Rudd says it's "appalling" FBI info about terrorist threats in Indon were not passed to AUS. He says there's been a breakdown in relations between the US and AUS intel communities. The Centre for Indep Studies says PNG is on the brink of a breakdown. It could become a dysfunctional African state, warns the group, with a generation lost to unemployment. The most important reform would be individual property rights to replace community ownership of land, it suggests. Fed Env Min David Kemp has announced his retirement from politics. He says it's for personal reasons. Dr Kemp denies he's not given the Liberal Party enough notice with a fed election coming up before the end of the y. He was badly rolled in Cabinet last m, with the PM announcing Australia's green future would be based on coal and oil. The Dow is up 25 pts. The hi-tech Nasdaq is down 9 pts. A 2nd major group has now advised there is no upside in computer chips. Some analysts are wondering whether techs are entering a long-term malaise. Goole has announced it will list on the Nasdaq. The FTSE is down 3 pts. Gold is trading at $US408.40/oz. The AUD is at 72.70 US c. The fate of a radioactive waste dump in outback SA is uncertain after the fed govt failed to make a scheduled announcement yesterday. MP's emerging from a Cabinet meeting were tight-lipped. It's believed there was a back-lash from SA MP's. SA Prem Rann says the plan to force a dump onto the state just before a federal election was a "disaster". Previously, the High Court had ruled the Howard govt's plan to compulsorily aquire the land for the proposed dump nr Woomera was illegal. 8 am Fed Opp'n leader Mark Latham has appointed former leader Kim Beazley as Labor's defence rep. The Fed Opp'n's new defence rep, Kim Beazley, says he has no intention of again challenging for the Labor leadership. Fed Opp'n leader Mark Latham has reiterated his promise to withdraw Aussie troops from Iraq before the end of this year if Labor wins the election. Fed Opp'n leader Mark Latham is attempting to boost the ALP's credentials with the United States, saying a Labor govt would go to war again if the US was the target of another major terrorist attack. Hoping to dispel election-y doubts about his case for war with Iraq, US Pres George W Bush has defended the invasion and insisted "Americans are safer" with him in charge. The Fed Govt has announced a small increase in the number of Aussie troops serving in Iraq. Preliminary investigations into a fatal shark attack near Gracetown in W AUS show 2 sharks may have mauled the surfer. WA authorities plan to kill 2 sharks believed responsible for a deadly attack on Sat if they can find them, despite the victim's family saying the animals should be spared. 9.45 am NY. The Equal Employment and Opp Commission has taken on a big Wall St firm and won. Morgan Stanley has agreed to pay $US54 mn in compensation. Complainants said women were regularly passed over for promotion, and less productive men were paid higher salaries than women. The decision could signal a sea change in big corporations, which have had a poor record on equal opportunity until now. The fate of Yukos looks sealed. It's been revealed the company had offered to pay $US8 bn over 3 y to clear its tax debts. But there was no response from the Kremlin to the deal. In court, Mikhail Khodorkovsky also offered up his share holdings, in return for the govt dropping charges and allow the company to continue to operate. Again, there was no response from the govt. The Russian Fin Min has now said it is "too late" for deals. Midday. PM Howard has criticised the ALP Iraq policy. Mr Latham announced a Labor govt would pull out troops but leave 30 non-combat security staff in Baghdad to protect diplomats. Mr Howard said the ALP was trying to have a bet both ways -- something most Australians would understand. [... after 10 years of a Howard govt]. 3 US soldiers have been killed in Ramadi when their vehicle hit a roadside bomb. Italy has allowed asylum seekers to land after appeals from the UN and the Vatican. The group had been picked up 3 wks ago. But immediately after the ship docked, police arrested the vessel's captain and its owner. The ship is owned by an immigrant aid organisation that's picked up 1000s of African immigrants at sea. The govt says it's arrested the owner on suspicion the group is aiding illegal immigration. Officials said the group was originally believed to be asylum seekers from the troubled Darfur region in Sudan. But there is a suspicion they really come from Nigeria. CBR. Lending for investment housing in May dropped 4.4%. Lending for owner occupiers dropped 1%. From today there'll be another search engine on the Internet. Telstra is using info from its yellow and white pages to create a new offshoot. A rep said the service also combines Citysearch and Whereis. The news didn't impress investors. Telstra shares are down 1 c after the announcement. 12.20 pm The All Ords is down 3 pts at 3,551. The NAB lost 2 c to $30.85. In Japan, the Nikkei is down 60 pts. The AUD is lower at 72.52 US c. Gold is down $2.60 at $US405.35/oz. Oil is down .46 to $US39.50/bbl. Film distributors in the UK are trying to combat pirate DVD's by linking piracy with terrorism and the drug trade. A new advertising campaign features claims terrorists raise funds selling pirate DVDs. Distributors estimate illegal downloads and pirate videos reduce their profits by 20%. 8 people were gored in the latest running of the bulls in Pamplona. 2 Americans needed treatment after prolonged attention by one animal. 5 pm PBS News Hour. The interim PM of Iraq says the govt is set to offer amnesty to insurgents. But he warned those that refuse to put down their arms will "face a very sharp sword". 6.30 pm There's been unexpected resistance to a US-backed Resolution in the UNSC. The Res aimed to crack down on Sudan's support for Arab militias in Darfur. But Pak and Algeria say Khartoum should be given more time. Efforts to restore calm in Italy's ruling coal'n have apparently failed. Meetings broke up after midnight with no consensus on a new economy minister, the future of RAI, or power relegated to the regions. PM Berlusconi is threatening an early poll if his govt collapses. At almost 3 y, his govt is the longest-serving in Italy since WWII. There's been a violent end to Ireland's marching season. The final day has seen rioting, with crowds throwing bricks and bottles at police. The clashes marred one of most peaceful seasons in history. Large areas of N Asia are underwater this evening, with large areas of Dhaka flooded. 3 mn people are displaced in India. 100 have been killed by the floods and mud-slides. S Nepal has been inundated by 3 days of solid rain. 50 people have been killed there. 7 pm The AOC has announced cyclists will no longer be allowed to self-inject vitamins or anything else, unless the athlete has a medical condition like insulin-dependent diabetes. All other injections will be overseen by relevant authorities. A 41 yo man told a court he'd try to hijack an aircraft if he was released into the community. He said he was glad he'd been arrested. The former IT worker attacked 2 flight attendants last May on a flight from MEL to Hobart. He said he wanted to set light to the plane and kill everyone on it. He said, at the time, he was on a mission to save the world and planned to crash the plane into Jerusalem Nat'l Park because that's where a sign said the Devil lived. The diagnosed paranoid schizophrenic said it wasn't his first attempt at hijack. Facing charges of hijacking and terrorism, he pleaded not guilty due to mental condition. The jury will deliberate tomorrow. [Later found not guilty]. 7.30 pm All the rain around Vic this m has finally paid off. Water levels have reached 50% -- the highest level in 18 m. The Hang Seng has closed down 113 pts. The FTSE is presently up 3 pts. Local gold closed at $US404.20/oz. }} ---------------------------------------- Wed, 14 Jul 2004. It's Bastille Day. HEADLINES: Bulgaria confirms Iraq hostage killed Israel kills snr Jihad leader Iraq left with little oil proceeds for rebuilding Saudis acknowledge fighters in Iraq Philippines begins Iraq pullout Pakistan not sending troops to Iraq, says Shaikh Rashid NATO Tussle Looms as Iraq Widens Security Requests Iraq's alcohol salesmen fear religion Iraq troops 'not just about WMDs' Iraq police take on crime with 527 arrests Iraq cracks down on crime Coalition went wrong way on Iraq: Beazley Blair, Berlusconi Defend Iraq Invasion Blair to admit mistakes before Iraq war Assailed on Iraq but Blair sticks to his guns 3 hurt in Spanish bull run 3 jailed over $20 mn tax fraud ACT quiet on roo protests Albatross race may go annual Annan urges US to fight AIDS Armitage in India to meet new PM Aunty tells of castaway kids' miraculous survival Bin Laden confidant surrenders to Saudis Blair to be cleared Brit committee urges overhaul of honours system Bulgarian hostage executed: report Chechen leader survives blast China welcomes birth of panda Consumer confidence at 10 y high Consumer confidence hits 10-y high Defence to petition UN over Saddam Floods cause havoc in S Asia Floods ravage S Asia Fossil research challenges early animal life theory Govt denies forcing asylum seekers to relocate Govt ditches nuclear dump plan Govt urges Philippines to stay Hicks's lawyers touch down in Cuba House votes to allow Canada drug imports Israel plots new route for barrier James Hardie makes asbestos compo offer Jury finds man not guilty in hijack trial Labor back-flips over Woomera waste relocation Man refused bail over Philippines child sex charges Markets subdued during profit reports More refugees arrive in Bris from Nauru NAB shares slump after warning NT yet to be asked for Azaria apology SYD named world's best city Scientist maps eucalyptus DNA States scupper fed waste dump plan. US Seeks to Protect Afghan Elections US rejects UN criticism over AIDS fight US rules out election delay US urges against Philippines pullout Uniting Church welcomes new refugee policy WA bid to recognise 'original custodians' stalls We don't want nuclear dump in Qld: Beattie Tarzan's tiger on the run Tiger killed after Florida escape Iraq left with little oil proceeds for rebuilding Baghdad (Reuters). Iraq will struggle to use its oil proceeds to build new roads, power stations and other vital projects because security costs, salaries and subsidies are eating up most of the oil-funded budget. Planning Min Mehdi al-Hafidh told Reuters that meant Iraq would need to rely heavily on the internat'l community to finance reconstruction efforts after decades of war and crippling sanctions. "We spend half the budget on food and oil subsidies," Hafidh said, adding most of the rest went on govt salaries and the costs of trying to restore security. "This is a highly unusual situation. We have to rely on the internat'l community for now," he said in an interview. He urged donors to fulfil their commitments and said a donors' meeting would be held in Tokyo in Oct. Countries ranging from Kuwait to Japan pledged around $15 bn last y to help rebuild Iraq, but the majority of the money has not yet been allocated to specific projects. The US is managing another $18 bn of rebuilding grants in Iraq. Iraq has raised around $11 bn in oil sales since the US-led invasion last y. The country took control of oil revenues -- the mainstay of its budget -- for the 1st time in a decade on Jun 28, when the US-led occupation forces handed power formally to an interim govt. Iraq was banned from exporting oil for 4 y after it invaded Kuwait in 1990. The UN allowed the country to sell oil in exchange for food, medicine and other supplies from 1996-2003. * SUBSIDIES The US-led Coalition Provisional Authority had controlled oil revenues from the end of the war until Jun 28. A report by accountancy firm KPMG has criticised the way the money was managed, saying there was potential for fraud and error. The CPA also devised Iraq's budgets. Their instinct was to remove the subsidies, which provided Iraqis with a free food basket and kept gasoline prices at around one US cent a litre. But fear of a social backlash has kept the policy Saddam Hussein used to placate the population in place. Hafidh said the interim govt, due to dissolve itself by Jan, will not change things. Iraq is working on presenting projects for internat'l funding in the meantime, Hafidh said, including new schools, a fibre optics communication network, electricity generation and distribution, and rebuilding govt offices looted and burned in postwar chaos. "It is essential that we do all we can to ensure that commitments are transformed into action as quickly as possible," the minister said. Japan, which pledged $5 bn in grants, is a key player. Around $1.1 bn of this has been spent or allocated toward hospitals, power stations, water and other projects. Although the process of reconstruction has been slow, Hafidh said he believed the economy had improved enough after the war to help Iraqis keep their frustrations bottled. The dinar has been strengthening after the introduction of new bank notes last y and salaries have risen. "Much depends on security, but I am encouraged. The numbers show economic stability," said Hafidh. Markets subdued during profit reports Wall Street was quiet overnight. NY/Sydney. There has been little movement on global financial markets overnight and the flow of profit reports on Wall Street has been a mixed assortment. Health care heavyweight Johnson & Johnson has pleased investors with a higher-than-expected result. But the broking firm Merrill Lynch has fallen short of expectations with its latest numbers and its share price has moved down on the news. The main market focus however has been on Intel Corporation, with the benchmark technology stock due to report its earnings after the market close. Prices on the high-tech Nasdaq market are down a touch more in the latest session. The Nasdaq composite index has dropped 5-points to 1,932. However prices have gone the other way on the NY Stock Exchange. The DJIA has closed nine-points higher at 10,246. On the economic front, there have been better-than-expected monthly trade figures out of Washington. A jump in American exports has narrowed the US trade deficit to $46 bn in May after the record shortfall of $48.1 bn in Apr. On the Brit share market prices have edged fractionally lower overall. Marks & Spencer has slipped more than 1 per cent again amid speculation the takeover bid of billionaire Philip Green might fail. And the hotel groups, Hilton, Whitbread and Intercontinental all lost ground after an analyst downgrade. London's FT-100 index has dipped 2 points to finish at 4,360. The Aussie market yesterday remained little changed as investors await the onset of the local profit-reporting season. Gains in the retail sector were balanced by softness among some of the miners and banks. The All Ords added less than one-point to 3,555. The AUD is being quoted at 72.48 US cents which is virtually unchanged on yesterday's local close. On the cross-rates, it is at 0.5879 euros, 78.50 Japanese yen, 39.02 pence sterling and against the NZ dollar it is at 1.100. The gold price is at $US402.40/oz. West Texas crude oil is trading at around $US39.55/bbl. NAB shares slump after warning NAB announcement hits share price. Melbourne. Nat'l AUS Bank shares have lost more than $1.50 after the bank issued a disappointing statement on its profit outlook. The NAB has warned that its cash earnings for the 6 m to Sep are likely to be down 10 to 15% on those for the half-y to March. The March half-y figure was $1.85 bn. The NAB says the outlook reflects more than the impact of its recent foreign exchange losses. "My assessment is the Nat'l's Aussie franchise requires a period of targeted attention in order to achieve sustainable growth for the future," chief executive officer John Stewart said in a statement. "There has undoubtedly been a loss of competitiveness in the Nat'l's businesses." Mr Stewart added: "It will take 12 to 24 m to get our banks really motoring and so I do not expect any real improvement in the first half of 2005." The NAB says it plans to maintain its dividend at 83 cents in the second half. About 11 am NAB shares were down $1.68 to $29.30, a slump of more than 5%. James Hardie makes asbestos compo offer Sydney. Building materials company James Hardie has announced it is willing to spend extra money to fund compensation for victims of asbestos-related diseases if a new system capping pay-outs is put in place. James Hardie has proposed a statutory scheme be set up, instead of the Dust Diseases Tribunal. The company's board has made a recommendation to shareholders that additional money be set aside to establish a scheme to compensate "all future claimants for asbestos-related injuries caused by former James Hardie subsidiary companies". The board has announced the move in a statement to the Aussie Stock Exchange. The recommendation comes despite the company recently reporting that it was unlikely to be held liable for future Aussie claims. The company has submitted the plan to a special commission of inquiry which is examining the massive funding shortfall in the Medical Research and Compensation Foundation, which holds the company's former asbestos liabilities. James Hardie has not revealed the amount of funding but the inquiry has heard the shortfall to compensate asbestos victims ranges from $800 mn to $2 bn. A "statement of issues" by commission lawyers had raised the prospect of finding breaches of corporate law against Hardie executives over the calculation of liabilities and the movement of assets before and after it relocated to the Netherlands. The James Hardie board says in the ASX statement that it is deeply concerned that asbestos-related claims are now projected to be far in excess of amounts anticipated when it established the Medical Research and Compensation Foundation. In its most recent annual report, James Hardie said it was unlikely to be found liable for future asbestos-related claims in AUS. Union and asbestos victims groups have reacted angrily to the proposal because it would cap pay-outs. ACTU assistant secretary Richard Marles says asbestos injuries are very different from work or car accidents where there may be some personal liability. "It's estimated that something like 60,000 Aussies will ultimately die as a result of exposure to work-related asbestos," Mr Marles said. "That's the same number of Aussies who died in World War One. The notion that we as a country should be limiting access to proper compensation for the death of those people is an absolute disgrace." Floods ravage S Asia Guwahati (Reuters). Landslides triggered by heavy rains have buried at least 12 people in their homes while 19 people drowned in surging river waters as floods ravaged low-lying parts of South Asia. More than 7 mn people have been marooned or left homeless in villages and towns across eastern India, Nepal and Bangladesh after annual monsoon floods swamped large areas. "There is knee-deep water on the roads and flood water has entered my house. My family and I are forced to live on the roof," said Chandrakant Jha of Darbhanga, 180 km N of Patna, the capital of India's eastern state of Bihar. [Later reports say 400 Army troops are the total flood rescue force for Bihar. They're trying to save 4 mn people who've been displaced or are threatened by floodwaters. The BBC said one patrol was last seen bogged in the mud]. Authorities said on Tue they were bracing for more flooding as dozens of rivers threaten to burst their banks. Govt helicopters dropped packages of food and relief material such as tarpaulin sheets to 1000s of villagers in Nepal and India, where 1000s were stranded on rooftops. More than 180 people have died in densely-populated S Asia since the start of Jul as heavy monsoon rains caused dozens of rivers to overflow their embankments and set off landslides. Officials in India's tea-rich NE state of Assam, where around 2 mn people have lost their homes because of flooding in the past week, said they found it hard to cope with the sheer scale of floods. "The state is not adequately equipped to handle the rescue and relief operations," Tarun Gogoi, chief minister of Assam, who appealed for internat'l assistance on Mon, said. People negotiated flooded areas of Assam in boats made from the trunks of banana trees and bamboos, and loaded with clothes and cooking utensils. In Bihar, where dozens have died in flooding over the past week and more than a mn people have been left homeless, many areas had no electricity and soldiers in boats rescued stranded people. * FLOODS DRIVE UP FOOD PRICES In some areas of flood-hit Bangladesh, floods submerged crops and cut rail and road links, pushing up food prices and forcing 1000s of people to cram into govt flood shelters. 25 of the low-lying country's 64 districts have been hit by flooding and mn marooned. Officials fear outbreaks of water-borne diseases as 1000s of drinking wells have been submerged. Authorities in Bangladesh said the flood situation was grim and could get worse as major rivers like the Padma and Jamuna were rising. But most of the latest deaths were in Nepal, where 12 people were killed in landslides in the east, pushing to 48 the impoverished nation's death toll from landslides, drowning and snake bites this season. Flood waters have washed away bridges and felled electrical lines in some areas. In other areas of the Himalayan kingdom, waters were receding. "Though water levels have fallen, people are scared to return home as they fear their mud-and-brick houses will collapse," resident Brij Kumar Yadhav said by phone from Janakpur, 450 km east of Kathmandu. The region's annual monsoon, which has yet to provide good rains to the S and central parts of India, is vital for the farm-dependent economy of S Asia's biggest nation. But monsoon rains also bring widespread destruction and 100s of fatalities each y to S Asia. Floods cause havoc in S Asia Delhi (AFP). Massive flooding in S Asia, being described as the worst "in recent memory", has swamped 1000s of villages and marooned at least 5.7 mn people. Officials in India say about 3.7 mn people have been displaced, with an estimated 3,200 villages underwater. Another official in neighbouring Bangladesh said about 2 mn people were marooned by the rising waters. Chief Min of Assam -- one of India's worst affected states in the NE -- Tarun Gogoi said: "This is the worst flooding in recent memory with 22 of the 24 districts in Assam under floodwater." "The high water current has washed away rows and rows of villages. The condition of the people is really devastating," he said. Army personnel have been called out in Nepal and eastern and NE India to rescue the affected people and distribute relief. Iraq troops 'not just about WMDs' Sydney (AAP). US military engagement in Iraq did not hinge on the presence of WMD, former US president Bill Clinton said today. But regardless of the reasons for military involvement in Iraq, the troops were now there and it was important to make the situation work, he said. Mr Clinton said US Pres George W. Bush had been correct to demand UN inspectors be allowed into Iraq. "I think he [Mr Bush] was right to demand that we have the UN inspection and if the UN inspectorate said Saddam Hussein is not cooperating I would have supported the military action even if the UN didn't," Mr Clinton told SYD radio 2GB in a wide-ranging phone interview from the US. Mr Clinton said the Bush Admin had been focused on getting rid of Saddam Hussein and was not just concerned about whether Iraq had WMD. "The Bush Admin believed that there were different reasons for (controlling) Saddam Hussein. "They thought whether or not he had WMD, it would be a good thing to get rid of him because he was a bad guy, because a more democratic govt in Iraq could be good." But military engagement in Iraq on this basis was not necessarily justified, he said. "I don't think it would be appropriate to do that under the authority we had from Iraq, but I think that now it's been done we now need to try and make that work. "The whole world has a vested interest in trying to make sure we have a pluralistic non-aggressive peaceful secure Iraq." Mr Clinton also said he regretted not being able to capture Osama bin Laden. "I'm sorry I didn't get him [bin Laden], but I'm glad I tried." The world needed to use a combination of law enforcement, intel and military assets to destroy terrorist networks, particularly al-Qaeda, the former president said. "We need to go into countries which are terrorist breeding grounds and try and figure out what the problems are and try to help people solve them. "We have to ... try and support the moderate Muslims, those people who think terrorism is the perversion of Islam. "We need a whole comprehensive approach [to combating terrorism] and the military aspect can only be part of it." Coalition went wrong way on Iraq: Beazley Canberra (The Australian). Kim Beazley yesterday walked a fine line between attacking the Howard Govt for increasing its involvement in Iraq and supporting the protection of Aussie troops already on the ground. As he talked up Labor's revamped Iraq policy, the ALP's new defence rep declared the Coalition "went the wrong way on Iraq" and the conflict should have been the UN' problem. Mr Beazley also said he felt no need to consult with Washington over the policy because Labor had got it right. "Clearly this Govt, despite the fact that it said we are out of the combat phase in Iraq a y ago, is now getting deeper and deeper in its engagement in Iraq," the former opp'n leader and defence minister said in SYD yesterday. "We are not going to be deeper engaged in Iraq. We are going to be differently engaged. "I think the Aussie people, their belief very sincerely is that we went the wrong way on Iraq, and that it was always the United Nations' problem [and] could still be a UN problem." Def Min Robert Hill yesterday maintained the decision to deploy 30 more troops was not a deepening of AUS's involvement in the conflict. "It's not a deeper involvement in a sense [because] it's providing force protection for the people that we already have there," Sen Hill said. "Unfortunately, that's what's necessary in Iraq to enable the country to be rebuilt." While he reiterated Labor's commitment to have Aussie troops home by Christmas, Mr Beazley refused to criticise the latest Coalition move. "The troops are there [and] have got to be obviously properly protected. I'm not going to buy into that," he said. "If there is a judgement that they need another 30 people in there to protect them, that's a judgement that is made on the ground." Selling Labor's Iraq policy a day after being recruited to the Latham front bench, Mr Beazley revealed the ALP's plan to send about 20 to 30 "non-combatants" to Iraq, as part of a UN effort, would probably involve service personnel. He downplayed the prospect of having to ask for extra help to protect them, saying they would be "protected appropriately by the 3000 troops the UN will bring in as that part of the brigade". The former Labor leader used his 2nd day in the defence portfolio to deliver an emotive assessment of the human cost of the conflict, criticise the politicisation of the intel community, and said he did not have to consult with the US over the ALP's new Iraq policy because the party had the right balance. "We have got major problems," Mr Beazley said. "And part of those problems stems from the fact that there is an environment in which the intel officers of our various countries have got themselves under political pressure, and have stopped acting like intel officers and become political activists." Blair, Berlusconi Defend Iraq Invasion London (VOA/AP). The leaders of Brit and Italy, both in political trouble at home, met in London to issue a strong defence of their involvement in Iraq. Brit PM Tony Blair and his Italian counterpart, Silvio Berlusconi, brushed aside concerns they might harbour about their political futures. Mr Blair faces a potentially embarrassing report, to be released Wed, on Brit intel failures before the Iraq invasion. But he told a news conference he would do nothing different, despite the failure to discover WMD in Iraq, Mr Blair's main reason for joining the war. "I feel very much as I did 18 m ago," he said. "I think it is very difficult to look at Iraq today, look at Iraq under Saddam, and say we would be better off, the world would be safer and more secure, if Saddam were still in charge of Iraq." Mr Berlusconi agreed that the future of Iraq is brighter with Saddam Hussein out of power. He spoke through an interpreter. "Iraq, for most of its citizens, is a nation that is breathing again and is looking, hopefully, to a democratic future," he said. "We really need to look forward. What we are doing in Iraq guarantees the transition towards democracy." Mr Berlusconi was in London leaving behind a tattered governing coalition and the worst political crisis since he took office 3 y ago. The Italian leader told reporters he will appear in parliament Wed in Rome to answer questions about how long he will hold on to the economics portfolio, which he assumed earlier this m when his finance minister resigned. Assailed on Iraq but Blair sticks to his guns London (Telegraph). Tony Blair began a determined effort to defend his premiership last night by launching a pre-emptive strike against criticism today in the Butler report on intel failings in the approach to the Iraq war. He refused to accept that he had taken the country to war on the basis of flawed intel and said the world was a safer place without Saddam Hussein in power. His defiant stance was a clear signal that he would continue to argue that the war was right even though no weapons of mass destruction had been found. With speculation still rife at Westminster over who will lead Labour into the next election, the PM made clear that he was in no mood to resign despite the criticism of the way the Govt handled the intel material on Iraq. The report, by Lord Butler of Brockwell, a former Cabinet secretary, is understood to criticise Mr Blair's "informal" style of govt. He and his advisers, including Jonathan Powell, his chief of staff, and Alastair Campbell, his former communications chief, are thought to have become too closely involved with intel chiefs in the preparation of the Sep 2002 dossier on WMD. Channel 4 News said the report would clear Mr Blair of deliberately misleading the nation. Such a charge would force him to resign. Lord Butler delivered the final version of his report to No 10 yesterday as Mr Blair was having lunch at Lancaster House with Silvio Berlusconi, the Italian PM, a strong supporter of the war. A few hours later Mr Blair told a press conference that he had no regrets about going to war to remove Saddam. He denied that the intel he used was "duff" or that he had been made to look a fool in the world. "I feel very much as I did 18 m ago," he said. "It is very difficult to look at Iraq today, to look at Iraq under Saddam, and say we would be better off, the world would be safer, we would be more secure, if Saddam was still in charge of Iraq. "With the transfer of sovereignty, I feel the situation is changing. It is far too early to be anything other than immensely cautious but we can get the sense from Iraq that the Iraqi people know very well the prospect they have for the future." Lord Butler will publish his report at a press conference at 12.30 pm, just as Mr Blair completes his weekly question time in the Commons. About an hour later, when the press conference is over, Mr Blair will make a Commons statement on the report. Westminster sources said the report would single out for criticism the informal way Downing Street is run by Mr Blair and his chief of staff. Lord Butler and his committee are said to have been "unimpressed", in particular by the lack of Civil Service record-keeping for meetings, which made it difficult for the committee to pinpoint how the dossier was put together. The report is also understood to name Lady Morgan, Mr Blair's director of govt relations, for her role in co-ordinating the preparation of the dossier on WMD with the Foreign Office. Labour MPs speculated that Mr Powell could be a "sacrificial victim" if the Butler conclusions were severe on the PM. There were suggestions that No 10 had tried hard in the past few days to tone down the report after seeing early drafts circulated by Lord Butler to those implicated. "They have asked to have some material removed after challenging Lord Butler's version of events," a source said. MI6 is braced for criticism over the quality of the intel it provided, although it was Mr Blair and his aides who removed many of the service's qualifications when the Sep 2002 dossier was drawn up. No 10 said Mr Blair still had confidence in John Scarlett, who, as head of the Joint Intel Committee, drafted the dossier with help from Mr Campbell on "presentation". Mr Scarlett is due to take over as the head of MI6 next m but 2 Labour backbenchers, Jermey Corbyn and Alice Mahon, have tabled a motion calling for his removal. Mr Corbyn said: "As he is part of the subject matter of the inquiry, it seems strange that he should be promoted in the middle of the inquiry." Mr Kennedy called on Mr Blair to use the publication of the report to apologise for taking the country to war. "He can't just put his mistakes on hold," he said. "He can't just walk away from the most disastrous diplomatic failure since Suez. He can't just carry on regardless." It was time Mr Blair said sorry for misleading the people and Parliament. Blair to admit mistakes before Iraq war Blair expected to be cleared of wilfully misleading public on Saddam's weapons programme. Intel chiefs pushing for rules to prevent political interference. US officials recommend UK spies should be able to express dissent on intel reports. London (Scotsman). Tony Blair is today expected to be cleared of wilfully misleading the Brit public in the run-up to war with Iraq, as the Butler report is published into the use of intel. The PM is none the less expected to admit that mistakes were made in the m before the conflict, and accept the points of criticism which will emerge today. Despite widespread expectations that Lord Butler will find serious faults in the intel process, the Prime Min, who received his copy of the report yesterday, made it clear he had no regrets and stood by his decision to go to war. "I feel very much as I did 18 m ago," he said at a press conference in London. "It is very difficult to look at Iraq today, to look at Iraq under Saddam, and say we would be better off, the world would be safer, we would be more secure, if Saddam was still in charge of Iraq." It has also emerged that intel chiefs are pushing for a new code of conduct to be drawn up, which would make impossible any future political interference with their work. The Scotsman understands that Brit intel officials giving evidence to Lord Butler called for new rules that would clearly define the boundary between ministers and spies, preventing what many saw as the political interference in the intel assessment process that led to the Sep 2002 dossier which was used to justify going to war in Iraq. US intel officials have recommended that Brit spies be given a way of expressing dissenting views about intel reports, in order to avoid politicians stating with certainty things that agents cannot prove beyond doubt. Brit inter-service reports are based on consensus, meaning there is no way for dissenting opinions to be expressed to ministers, and American intel officials believe that contributed to Mr Blair's sense of certainty about Saddam's arsenal. Had there been a US-style system he would not have written in the dossier's foreword that it was "beyond doubt" that Saddam was continuing to produce illegal arms. The controversial claim that Iraq had WMD ready to use at 45 minutes' notice might also have been dropped. "It's amazing that on domestic policy, your PM can hear all the dissenting views of his Cabinet members before he makes a decision, but when it comes to something as crucial as going to war, there is no way for dissenting voices to be heard in the system," Bob Ayers, a former snr Pentagon intel official, told The Scotsman. The report comes amid renewed tension between Mr Blair and Gordon Brown, the Chancellor, which has seen allies of the 2 men whispering and briefing against each other. "One spark and the whole thing could go up," said one snr Labour MP yesterday. But despite the tense atmosphere, Mr Blair's allies insist they are relaxed about the Butler report, which they expect to steer clear of personally rebuking the PM. Although Jonathan Powell, the Downing Street chief of staff, may be criticised, the document is said to recommend that John Scarlett's appointment as head of MI6 next m should go ahead. Unlike Lord Hutton's report in Jan, which could have cost Mr Blair his job, few expect Lord Butler to carry the same weight among jaded voters. "The public have already made up their minds about Iraq -- Butler won't change anyone's view of the war or the PM," said one Blairite MP last night. Still, the report may have a significant effect on Labour's chances in by-elections in Leicester and Birmingham tomorrow. Labour is defending 2 usually safe seats against a strong challenge from the Lib Dems. Labour campaign officials admit that the party is all but certain to lose Leicester South, and may also be defeated in Birmingham Hodge Hill. Charles Kennedy, the Lib Dem leader, yesterday went to Leicester to demand Mr Blair "apologise for misleading the people and Parliament" over the war. The conflict, he said, had "re-invigorated" al-Qaeda and shown that Mr Blair "lacks crucial political judgement". "On the day after the Butler Inquiry, people in Leicester and Birmingham should exercise their judgement" on the war by voting against Labour, Mr Kennedy said. Blair to be cleared London (AFP). Brit's newspapers said that Prime Min Tony Blair will escape the main volley of fire from an inquiry into intel failures in the build-up to the war in Iraq. But Blair's staff and "informal" decision-making procedures may come in for tough criticism in former top civil servant Lord Robin Butler's report, newspapers claimed, without naming sources. Joint Intel Committee (JIC) chairman John Scarlett is also likely to come under pressure over the inquiry's findings, it was reported. The govt received a copy of the report midday on Tue, a day in advance of its public release at 12.30 pm Wed. The Times political columnist Peter Riddell said of rumours in govt depts: "The word around Whitehall yesterday was that the report would raise embarrassing questions about flaws in the collection and assessment of intel by the Secret Intel Service (MI6), about informal procedures in 10 Downing Street". The Daily Mirror, strongly opposed to the conflict, quoted a snr Blair ally as saying, "It's damaging, but not fatal," and predicted that Butler will recommend sweeping changes to the way intel is handled by politicians. "Lord Butler is unlikely to deliver a killer blow," concluded the Independent in its editorial. "Even so, he cannot avoid making severe criticisms of intel-gathering and the way that intel was used by Downing Street in the build-up to war. "For the 1st time, Mr Blair must address in detail the gap between the speculative intel and the alarmist way in which he presented it," the left-leaning daily said. Newspapers reported that Blair's office is expected to be criticised over the relaxed way meetings were run, with the PM's chief of staff Jonathan Powell likely to take the blame. "Blair's top aides in the firing line," said the Daily Express, naming political aide Baroness Sally Morgan and Powell as the 2 set to "carry the can for the PM's Iraq blunders." The Daily Telegraph quoted Labour lawmakers as saying Powell could be a "sacrificial victim" if the report's conclusions were tough on the prime minister. Last week, the US' Central Intel Agency (CIA), was severely criticised by the US Senate Intel Committee for its flawed analysis of the threat posed by Iraq's alleged WMD. Former CIA director George Tenet, who headed the agency during the war, quit last m ahead of the committee's report. The Independent reported that lawmakers on all sides of the House of Commons will pressure Blair over the May promotion of Scarlett to head of MI6 if he is criticised in the inquiry. NATO Tussle Looms as Iraq Widens Security Requests Brussels (Wired News). NATO agreed at a summit in Turkey last m to help train the interim Iraqi govt's security forces, but details were left vague after France and Germany resisted a US push for the alliance to be a central agency for training inside the country. Undaunted, Iraqi For Min Hoshiyar Zebari appealed to the 26-nation alliance Tue to provide border security support, military equipment and protection for UN personnel as well as training for the army which is now being rebuilt. "We need this training you promised us in Istanbul to be carried out as soon as possible. We need it, in fact we are in a race against time and it's a matter of urgency," Zebari told a news conference after meeting alliance ambassadors. "We expect NATO really to look into other options for us also," he added, calling for assistance with border controls and with security for UN offices and UN personnel involved in running next y's elections. One diplomat said protecting UN officers could require a force of some 5,000 troops, which "may be more than the French can handle," especially with NATO already risking over-stretch in its widening peacekeeping mission in Afghanistan. * CRUNCH WEEK AHEAD The diplomat, who requested anonymity, said Paris would be unlikely to stand in the way of a limited NATO training role inside Iraq but would almost certainly object to a big base flying the alliance flag. Belgium, Germany and Spain are also cool to the idea of a substantial NATO role in Iraq, but diplomats said they would be unlikely to block it. NATO was plunged into one of the deepest crises in its 55-y history ahead of the US-led invasion of Iraq in 2003 when France, Germany and Belgium blocked the deployment of military defences for Turkey, one of Iraq's neighbours. The agreement on training at the Istanbul summit was hailed as the start of a new chapter in transatlantic amity. But the alliance was at odds over how to interpret the communique even before the ink was dry, with French Pres Jacques Chirac insisting that NATO should only coordinate the effort of individual nations to help Baghdad. Tensions could resurface as early as next wk when military experts present options to the allies for NATO's role. NATO Sec-Gen Jaap de Hoop Scheffer said there was a range of possibilities: training collectively, bilaterally, inside Iraq and abroad, as well as helping set up an Iraq-wide military command and control capability. "These efforts and the results of these efforts must be visible very quickly indeed," he told the news conference with Zebari, adding that he was preparing a report on options for wider support to Baghdad. De Hoop Scheffer's exhaustive list of possibilities will be whittled down -- to avoid the risk of a French veto -- before being presented to allies this m, diplomats said. Zebari said he had asked for a formal line of communication between Baghdad's embassy in Brussels and NATO to coordinate and liaise on alliance security support in Iraq. Pakistan not sending troops to Iraq, says Shaikh Rashid Karachi (The News, Pak). Fed Min for Info and Broadcasting Shaikh Rasheed Ahmed has said that no further changes in Sindh are under consideration and the changes being brought about at the centre would be long-lasting. "An economics expert would run the affairs of the country which would ensure prosperity and progress in nr future", he said, while talking to the mediafolk after giving away the 8th Advertising Excellence Awards-2004 to the members of Pakistan Advertising Association (PAA) at a local hotel on Tue. The ceremony, organised by the PAA, was also addressed by the Patron-in-Chief, PAA, S H Hashmi, and Chairman (Sindh-Balochistan) of PAA Mahmood Parekh. The minister congratulated the recipients of awards and hoped that the members of the PAA would continue their efforts to meet future challenges in the field of advertising. He said the issue regarding imposition of fixed tax on advertisement agencies would be resolved within a couple of days and they would have to pay tax on income. While referring to stoppage of govt advertisements to newspapers, the minister said he had never been supporter of the idea of depriving any newspapers of govt advertisements. " I attribute stoppage of govt advertisements to Nawa-e-Waqt to my own inability", he said, and added that the issue would soon get resolved. Later, while answering reporters' question, he said Pakistan was not sending troops to Iraq. Philippines begins Iraq pullout Manila (AFP). The Philippines said it was "coordinating the pullout" of its forces in Iraq and had reduced numbers from 51 to 43 following militant threats to execute a Filipino truck driver hostage. "The foreign ministry is coordinating the pullout of the humanitarian contingent with the ministry of defence," For Sec Delia Albert said in a statement released by the presidential palace. "As of today, our head count is down from 51 to 43," she added without elaborating. Islamic militants kidnapped truck driver Angelo de la Cruz, 46, last wk and threatened to behead him unless Pres Gloria Arroyo advanced the scheduled pullout of the contingent by one m to Jul 20. Govt urges Philippines to stay Canberra (AAP). FM Alexander Downer urged the Philippines not to withdraw troops from Iraq in the face of a hostage crisis. Militants are threatening to kill Filipino hostage Angelo de la Cruz in a bid to force the Philippines to withdraw its troops. Mr Downer said he had not officially spoken with the Philippines govt but would urge them to stay the distance. "I do think it's important that the Philippines does hold firm," Mr Downer told the ABC's Lateline program. "If the Philippines gives in to the demands of the terrorists, I'm afraid all that will do is encourage the terrorists not to target the Philippines but to target other nat'lities in Iraq helping the Iraqis. "To be frank about it, I do think it's very important -- compassionate as we all feel for the poor Filipino that is being held hostage -- that the Filipinos don't give in to the demands of hostage takers." Mr Downer said he had recently praised S Korea for holding firm in the face of a similar situation, despite a S Korean nat'l being tragically executed. US urges against Philippines pullout Filipino women are holding a vigil for the hostage in Iraq Washington (AFP). The US says the Philippines will "send the wrong signal to terrorists" if it withdraws its troops from Iraq in response to threats by Islamic militants to behead a Filipino truck-driver. White House rep Scott McClellan says Washington is seeking clarification of Manila's intentions. "We believe that a decision by the Philippine Govt to withdraw their 51 troops ahead of schedule would send the wrong signal to terrorists," Mr McClellan said. "We are seeking clarification from the Govt now," he said. "It is certainly their decision to make, but again, we believe that if [a withdrawal] were the decision, it would send the wrong signal to the terrorists." Philippine Foreign Undersecretary Rafael Seguis yesterday appealed for the life of hostage Angelo de la Cruz on Arabic television station Al Jazeera. He pledged that the small contingent of Filipino troops in Iraq would be withdrawn "as soon as possible". Philippine For Sec Delia Albert -- Mr Seguis's boss -- said he "spoke with foreknowledge and full authority of the Philippine Govt". But she declined to say whether the troops would be brought home early. US State Dept rep Richard Boucher said: "We certainly noted the remarks and are disappointed to see remarks like this at a time when Iraq is fighting for stability and peace." The statements, he said, "do raise some questions" and "we're awaiting clarification on exactly what that announcement might mean in terms of Philippine withdrawal". The Philippines' contingent was due to leave Iraq on Aug 20 but the Khaled ibn al-Walid Brigade (Islamic Army in Iraq) holding Mr de la Cruz had reportedly asked for that date to be brought forward to Jul 20. An early pullout would be an embarrassing reversal for Philippine Pres Gloria Arroyo who has repeatedly insisted that her Govt would not cave in to terrorism. Mr Boucher says the US's ambassador to Manila, Francis Ricciardone, has already met Ms Arroyo and discussions will continue. Mr Boucher reiterated Washington's condemnation of the kidnapping. "I do think we have to keep the onus where it belongs and that's on the kidnappers," he said. "There's no excuse for kidnapping, for murder, for the kind of threats that have been made against this gentleman and that he should be released immediately." There have also been reports that the Philippines has been negotiating with the kidnap group, including a reported bid to buy Mr de la Cruz's freedom. "As you know, our policy is not to negotiate or provide benefits to terrorists," Mr Boucher said. Armitage in India to meet new PM Delhi. US Deputy Secretary of State Richard Armitage has arrived in India at the beginning of a 10-day tour of the Middle East, S and central Asia. Mr Armitage will meet India's new PM, Manmohan Singh, in what is the 1st meeting with a snr US official since the change of govt. The 2 sides are to hold wide-ranging talks on bilateral and internat'l issues, including the situation in Iraq. The Indian Govt has said that it will not send troops to Iraq. However, Washington has said that would like New Delhi to review its position now that a transitional Govt is in place in Baghdad. US rules out election delay Washington (Reuters). The US will not cancel or suspend the presidential election this Nov in the event of a terrorist attack or other catastrophic event, the Govt's top elections official says. DeForest Soaries, chairman of the US Election Assistance Commission, says individual states may suspend or reschedule elections if disaster strikes but that would not change voting in other states. "I can't conceive of any circumstances under which a presidential election could be postponed or cancelled," Mr Soaries told reporters after a commission hearing. Magazine Newsweek has reported that Bush Admin officials were looking at what legal steps would be needed to delay the election in case of an attack. The United States has never postponed a presidential election, even during nat'l crises like the Civil War. "We should get the word out that if something happens in a state that is not yours, you should vote," Mr Soaries said. Homeland Security Secretary Tom Ridge warned last wk that Osama bin Laden's Al Qaeda militant group may attack the US to try to disrupt the Nov 2 presidential election. New York state postponed a primary election for 2 wk after Al Qaeda slammed 2 hijacked jetliners into the World Trade Centre on Sep 11, 2001. Election assistance commissioner Ray Martinez says he believes the Constitution gives states the power to reschedule presidential elections or even appoint electors directly in case of emergency. Mr Soaries says the commission plans to meet officials from the Dept of Homeland Security next wk to discuss how to handle an election-day attack. Bin Laden confidant surrenders to Saudis Riyadh, Saudi Arabia (AP). A confidant of Osama bin Laden, seen on a videotape with the al-Qaeda chief as he talked about the Sep 11 terror attacks, surrendered to Saudi diplomats in Iran and was flown to the kingdom Tue. Khaled bin Ouda bin Mohammed al-Harby, a potentially valuable asset in the war on terror because of his closeness to bin Laden, was shown on Saudi TV being pushed in a wheelchair through the Riyadh airport. Al-Harby is the most important figure to surface under a Saudi amnesty promising to spare the lives of militants who turn themselves in. "Thank God, thank God ... I called the embassy and we were very well-received," al-Harby told Saudi TV in the airport terminal. "I have come obeying God, and obeying the [kingdom's] rulers." Al-Harby -- also known as Abu Suleiman al-Makky -- is considered a sounding board for the al-Qaeda chief rather than an operational planner for his terror network, a US counterterrorism official said, speaking on condition of anonymity. Another US official said al-Harby was not a snr member of al-Qaeda. The official, who declined to be identified, called him "an aging mujahideen." The Interior Ministry did not say what al-Harby is wanted for, but a Saudi security official said he is a member of al-Qaeda. Mansour al-Nogaidan, a Riyadh journalist and former militant, said al-Harby appeared on a videotape released in Nov 2001 in which bin Laden described the planning of the Sep 11 attacks. Al-Nogaidan said al-Harby was disabled in both legs while fighting the Soviets in Afghanistan. He used to preach in a mosque in Mecca, but left Saudi Arabia for Afghanistan shortly after the Sep 11 attacks. Al-Harby, a crippled sheik, was seen on a video after the Sep 11 attacks, seated with bin Laden at a dinner where he talked about the attacks, according to a US counter-terror official, who spoke on condition of anonymity. Al-Harby is considered a confidant and sounding board of bin Laden's, as opposed to an operational planner, the official said. At the dinner shown on the videotape, bin Laden praised the attacks on the World Trade Center and the Pentagon and credited them with inspiring conversions to Islam. "We calculated in advance the number of casualties from the enemy, who would be killed, based on the position of the tower. We calculated that the floors that would be hit would be 3 or 4 floors," bin Laden said on the tape. "I was thinking that the fire from the gas in the plane would melt the iron structure of the building and collapse the area where the plane hit and all the floors above it only. This is all that we had hoped for." In a statement, the Interior Ministry said al-Harby contacted the Saudi Embassy in Tehran from the Iranian-Afghan border, where he was stranded. It was not disclosed what al-Harby was wanted for, and his name does not appear on the kingdom's list of 26 most-wanted militants. Some al-Qaeda operatives close to bin Laden -- notably Khalid Shaikh Mohammed -- have provided vital intel to US officials seeking top terror suspects and clues to attack plots. However, he is in American custody, and it was not immediately clear how much access US authorities would have to al-Harby or his interrogation. Wearing traditional white robes and Arab headdress, al-Harby was carried off the plane before being put in a wheelchair. He was accompanied by his wife, dressed all in black, and their son, a Saudi security official said. The Interior Ministry said al-Harby will be taken to a hospital for medical care. It did not elaborate on his condition. Al-Harby is the 3rd man to take advantage of the month-long amnesty that King Fahd offered militants on Jun 23. One of the other militants who surrendered under the amnesty is Othman Hadi Al Maqboul al-Amri, No. 21 on Saudi Arabia's most-wanted list. Al-Harby described the amnesty as a "generous offer" and urged other militants to take advantage of it. Separately, Interior Min Prince Nayef acknowledged for the first time Tue that Saudis had infiltrated neighbouring Iraq to join the insurgency against US-led forces. "Surely, there are Saudis," Prince Nayef told reporters late Mon of the foreign fighters detained in Iraq. "But the number, and how [they got in to Iraq] is not available to us now." His statement came after repeated denials of Iraqi reports that that Saudis are fighting in the insurgency. Iraq's Human Rights Min Bakhtiyar Amin said Mon there were 14 Saudis among 99 foreign fighters in detention. Also, Saudi newspapers have published obituaries and funeral reports for at least 4 Saudis said to have died fighting in Iraq. Prince Nayef said 100s of other militants have been detained and some have already been convicted in court. He did not provide exact numbers, but he said more trials were coming. Nayef warned there would be no extension to the amnesty that expires Jul 23, and declared that the kingdom's fight against terror is not over. Since May 2003, the country has suffered a series of suicide bombings, gun-battles and kidnappings that tended to target foreign workers. The attacks have been blamed on al-Qaeda and its sympathisers. "There are still things we have to deal with, and we should not be surprised if anything happens," Nayef said. "We are totally prepared to face any emergency." In Washington, State Dept rep Richard Boucher said the Bush Admin has been pressing for better border control. "We've worked for a long time with all the neighbours of Iraq to try to get better control at the borders," he said. Iraq is expected to raise the subject of infiltration at a gathering of foreign ministers of neighbouring states that will be held Jul 21 in Cairo, Egypt. Besides the Saudis, Iraq has said it has in custody 26 Syrians, 14 Iranians, 12 Egyptians, 9 Sudanese, 5 Palestinians, 5 Yemenis, 5 Jordanians, 5 Tunisians, a Lebanese, a Moroccan, a Turk and an Afghan. Chechen leader survives blast Grozny (AFP/Reuters). A land mine explosion in the Chechen capital Grozny has killed one of the bodyguards of the region's pro-Moscow Acting Pres. Russia's Itar-Tass news agency says the blast hit the convoy of Sergei Abramov as it sped through the capital. 2 other people were injured. Mr Abramov is reported to have escaped unscathed. House votes to allow Canada drug imports Washington (AP). The House voted Tue to allow Americans to buy prescription drugs from Canada and other countries at prices lower than found in the US, but the provision's prospects are dim to become law this y. The measure, approved as part of a $16.8 bn bill to fund the Agriculture Dept and the Food and Drug Admin for next y, would prohibit the FDA from spending money to enforce its prohibition on imports of FDA-approved drugs. A subcommittee put it into the bill last m at the instigation of Rep Marcy Kaptur, D-Ohio. The bill itself passed the House on Tue by a 389-31 vote. Supporters said it would allow Americans safe access to medications at prices often 1/3 lower than those in the US because of govt price controls in other countries. "People from all over the world come to the US for their medical care, yet Americans are forced to go all over the world for their medication," said Rep Rahm Emanuel, D-Ill. He said US prices are kept artificially high by pharmaceutical companies. The provision is not expected to remain in the final spending bill to be reconciled later by House and Senate negotiators, a Republican staff member said. A nearly identical plan was passed by the House last y, only to be removed later in House-Senate negotiations. That strategy would be used again, said Rep Henry Bonilla, R-Texas, who chairs the House Appropriations agriculture subcommittee. "We'll just deal with it in conference," he said. Senate advocates have been seeking an up-or-down, election-y vote on legalising imports, which has growing bipartisan appeal in Congress despite the opp'n of Pres Bush and Republican leaders in both Houses. The Whitehouse budget office opposed the measure in a statement Tue. "It would be virtually impossible for the FDA to verify that drugs being imported are indeed FDA-approved and not counterfeit," the statement said. It did not threaten a presidential veto, however, saying the Admin supported the farm bill itself and would push later for changes as it moves through Congress. As part of the bill, the House also voted to prohibit using govt money for a $9.6 bn bail-out for tobacco farmers. Just 10 days ago, the House approved the buy-out as part of a broad corporate tax bill. Rep Robin Hayes, R-NC, said he would attempt to get the roadblock on the tobacco buy-out removed in the House-Senate negotiations on the bill. The bill also blocks resumption of US-financed export credits to help Iraq buy food from American farms. Kaptur, the Appropriations agriculture subcommittee's snr Democrat, questioned whether the US could be sure the money would help feed Iraqis. The bill also includes $20 mn to pay for expansion of the dept's surveillance for mad cow disease. The dept plans to test at least 200,000 animals within 18 m. It tested about 20,000 last y. The bill provides money for programs to encourage farmers to use environmentally friendly practices. It has $1 bn for the Environmental Quality Incentives Program, which offers farmers financial and technical help in land management. Also, the measure includes $4.9 bn for the Women, Infants and Children feeding program, which targets low-income pregnant women and new mothers and their children up to their 5th birthday. Annan urges US to fight AIDS UN (Reuters). The US must lead the fight against AIDS with the same commitment it shows in the battle against terrorism, UN Sec-Gen Kofi Annan said on Tue. "We hear a lot about WMD. We hear a lot about terrorism. We are worried about WMD because of their potential to kill 1000s of people," Mr Annan said in an interview with the BBC. "Here we have an epidemic that is killing mns. What is the response?" Mr Annan said. "We really do need leadership. America has the natural leadership capacity because of its resources, because of its size." Mr Annan was speaking on the sidelines of an internat'l AIDS conference in Bangkok where Washington's low-key presence, moral agenda and funding policies on AIDS have come under attack. But a top US govt scientist defended Pres George W Bush's $US15 bn plan to fight the AIDS epidemic that has killed 20 mn people worldwide and infected 38 mn. "There is absolutely no diminished commitment in interacting internat'ly. Look at the president's programs. It's $US15 bn," Dr Tony Fauci, head of the Nat'l Institute of Allergy and Infectious Diseases, told reporters. The conference -- the biggest gathering of scientists, activists, drug company bosses and AIDS sufferers -- has seen daily protests by activists shouting "Shame, Shame" against Mr Bush and other rich country leaders who are accused of failing to support a UN-backed global AIDS fund. In thinly veiled criticism on Tue, France said a US drive for bilateral trade deals was undermining an internat'l pact to provide cheap copycat AIDS drugs to the developing world. French Development Min Xavier Darcos said Washington must honour the spirit of a multilateral trade commitment made in 2001 giving poor countries access to cheap generic drugs. "Making certain countries drop these measures in the framework of bilateral trade negotiations would be tantamount to blackmail," said Mr Darcos, who was also jeered by activists. * More money needed The Bush plan pledges $US15 bn over 5 y for care, prevention and treatment in 15 countries -- mostly in Africa and the Caribbean, which account for 70% of all infections. Global spending on AIDS last y was $US4.7 bn, half of what will be needed by 2005 in developing countries. Mr Annan, who opened the conference on Sun with a plea to world leaders to get their heads out of the sand, said he had spoken to Mr Bush about funding the fight against AIDS. "He's engaged and he was quite moved to hear people talk about it," Mr Annan said. "But of course now we need a step forward to put resources to it." The world puts substantial sums of money into fighting terrorism and containing WMD to protect people, he said. "And here we know [about AIDS], it's not that we don't know, we read about it, we see it around us -- where's the internat'l solidarity?" The Bush plan has also drawn fire for linking funds to abstinence over condoms. It also requires drugs purchased with US funds to be approved by the Fed Drug Admin (FDA). US rejects UN criticism over AIDS fight Washington. The US Govt has dismissed remarks from UN Sec-Gen Kofi Annan at the world AIDS conference that it is failing to provide leadership in the fight against the disease. Delegates to the conference in Thailand were critical of the Bush Admin's policy of promoting abstinence as the main weapon to fight AIDS. Mr Annan said the US needed to show the same zeal in fighting AIDS as it did in fighting terrorism. But US State Dept rep Richard Boucher says the Bush Admin has earmarked almost $20 bn to fight AIDS over a 5-y period. "This Admin has taken the AIDS crisis very seriously," he said. "We do consider it a greatest threat of mass destruction on the face of the planet." The Bush Admin maintains that emphasising condoms promotes promiscuity, particularly among young people. Bulgarian hostage executed: report Doha. Arabic television network Al Jazeera reports that Iraqi militants have beheaded a Bulgarian truck driver they have been holding hostage. Al Jazeera says it has received a video of the execution purportedly by the Tahid wal Jihad group of suspected Al Qaeda operative Abu Mussab al-Zarqawi. The group has threatened to kill another Bulgarian hostage it is holding unless its demands are met within 24 hr, the network said. The group wants the release of Iraqi prisoners detained by the US military in Iraq. Truck drivers Ivailo Kepov and Georgy Lazov were taken hostage near the N Iraqi town of Mosul last Thu. Foreign Min Solomon Passy appealed to the kidnappers to show "pity for the poor and the sick" in keeping with the Islamic faith, as Mr Lavoz suffered from diabetes and Mr Kepov had apoplexy. In what was believed to be footage of the Bulgarians, Al Jazeera television last wk showed 2 squatting and handcuffed men held by masked militants of Tahid wal Jihad. The group is reportedly led by Zarqawi, a Jordanian who carries a $US25 mn bounty on his head and is accused of organising dozens of deadly attacks in Iraq. The Bulgarian Govt, which has 470 soldiers in Iraq, has vowed not to bow to "blackmail". Since the initial deadline for its hostages expired on Fri, the nation has been gripped by anxiety about the fate of the 2 men. Hicks's lawyers touch down in Cuba Havana. Lawyers for Aussie Guantanamo Bay inmate David Hicks have arrived in Cuba to prepare his defence. Hicks is likely to be one of the 1st detainees to face trial by a military commission. Despite the US Supreme Court's decision earlier this m that Guantanamo inmates have a right to challenge their detention, preparations are continuing for Hicks's trial. His legal team includes military lawyer Major Michael Mori, Aussie counsel Stephen Kenny and American civilian lawyer Josh Dratel. It is only the 2nd time Mr Kenny has had face-to-face contact with his client. US Dept of Defence officials say they are moving ahead with plans for military trials for inmates even though the Supreme Court decision has opened the way for dozens of legal challenges in the American civil system. * Challenge Meanwhile, Hicks and another Aussie detainee Mamdouh Habib have been informed that they have an opportunity to challenge their status as enemy combatants and detention in Cuba. US Navy secretary Gordon England is in Guantanamo Bay to oversee the start of military panels which will hear appeals from detainees who believe they have been wrongly imprisoned. All inmates at the facility, including Hicks and Mr Habib, are being told they can take advantage of this process. While Hicks has a legal team and is aware of machinations on his behalf, Mr Habib is not in the same position. Even though Mr Habib has now been named as eligible for trial by military commission, Pentagon officials say there is no guarantee he will be appointed a defence lawyer in the near future. Bulgaria confirms Iraq hostage killed A TV grab shows the 2 Bulgarian hostages being held last wk. Sofia (AFP). The Bulgarian Govt has confirmed that militants in Iraq have executed one of 2 Bulgarian nat'ls being held hostage. Govt rep Dimitar Tsonev said: "We have confirmation that [the killing] involves one of the 2 Bulgarian hostages. "We do not yet have info about which one of the 2 it is. "All Bulgarian institutions have done everything possible. Now all we can do for the next 24 hr is to pray for the life of the second Bulgarian hostage," he added. Truck drivers Ivailo Kepov and Georgy Lazov were taken hostage near the N Iraqi town of Mosul on Thu last wk. Their captors threatened to execute them unless US troops freed Iraqi prisoners within 24 hr. Al Jazeera satellite television has said it had received a video of the beheading of one of the 2 men. The group threatened to kill the other Bulgarian hostage unless its demand was met for the release within 24 hr of Iraqi prisoners detained by the US military in Iraq, Al Jazeera said. Ms Tsonev called efforts to negotiate the men's release "very uneven". The Bulgarian Govt has vowed not to bow to "blackmail". The tape was purportedly made by the Tahid wal Jihad group (Unity and Holy War) of suspected Al Qaeda operative Abu Mussab al-Zarqawi. Zarqawi is accused of organising dozens of deadly attacks in Iraq. Bulgaria supported the US-led war in Iraq and has 470 soldiers deployed there as part of what is now a multinat'l military coalition under US command. Defence to petition UN over Saddam Baghdad (AFP). Defence lawyers for Saddam Hussein plan to petition the UN to take action against what they term US "violations" in the trial of the ousted Iraqi leader, the head of the legal team said. "We are planning to send a letter to the United Nations to say that the US should stop the legal violations it is carrying out in the trial" of Saddam, Mohammed Rashdan said in a telephone interview from Paris. "If they do not respect the law we will sue" the US Admin, he added, but refused to give any details. The 21-member Jordan-based defence team has repeatedly accused the US-led coalition in Iraq of preventing the team from visiting Iraq to meet Saddam to prepare his defence. Rashdan concluded a visit to Paris where he met lawyers and legal advisers, including former French foreign minister Roland Dumas, to rally support for the team's case and was heading to Beirut on a similar mission. Dumas "has indicated his willingness to join the defence team", Rashdan said from the French capital. Saddam went before an Iraqi court on Jul 1 for an initial hearing on 7 charges of crimes against humanity. Saudis acknowledge fighters in Iraq Riyadh (AP). A Saudi exile who returned home under an amnesty is the cleric who was seen on a 2001 video tape discussing the Sep 11 attacks with Osama bin Laden, say Saudi and American experts on militants. The Int Min'y said the exile, Khaled bin Ouda bin Mohammed al-Harby, contacted the Saudi Embassy in Tehran from the Iranian-Afghanistani border, where he was stranded. The ministry did not say what al-Harby is wanted for, but a Saudi security official said he is a member of the al-Qaeda terror group that is blamed for the attacks of Sep 11, 2001. Mansour al-Nogaidan, a Riyadh journalist and former militant, said al-Harby is the person to whom al-Qaeda leader bin Laden described the planning of the Sep 11 attacks in a video tape released 3 m afterward. A US counterterrorism official agreed. He spoke on condition of anonymity. There was no immediate confirmation by Saudi officials. The identity of bin Laden's interlocutor has long been unclear. "He looked much chubbier in the video with bin Laden," al-Nogaidan said. He added that al-Harby had been detained in Iran when the authorities rounded up al-Qaeda members. Al-Nogaidan said al-Harby was disabled in both legs while fighting the Soviet occupation of Afghanistan. He used to preach in a mosque in Mecca, but he left Saudi Arabia a few days after the Sep 11 attacks and went to Afghanistan, where the video taped meeting with bin Laden apparently took place. In the video tape, bin Laden asked his guest how the Sep 11 attacks had been received in the Saudi mosques. Al-Harby, who is also known as Abu Suleiman al-Makky, is the 3rd man to take advantage of the amnesty that King Fahd offered militants on Jun 23. The amnesty, which has a duration of one month, promises to spare the lives of those militants who surrender. Al-Harby's name does not appear on the list of the kingdom's 26 most wanted militants. The 2 militants who have already surrendered under the amnesty include Othman Hadi Al Maqboul al-Amri, who is No. 21 on the list. Saudi state television showed al-Harby, who uses a wheelchair, being carried off a Saudi Airlines plane after he arrived at Riyadh airport. He was wearing traditional white robes and Arab headdress. "Thank God, Thank God ... I called the embassy and we were very well received," al-Harby told the television in the airport terminal. "I have come obeying God, and obeying the [kingdom's] rulers." Al-Harby described the amnesty as a "generous offer" and urged other militants to take advantage of it. He was accompanied by a woman dressed completely in black and a teenage boy, whom the security official identified as his wife and son. The official spoke on customary condition of anonymity. Iraq cracks down on crime Baghdad (AFP). In a dramatic action against a spiralling crime wave, Baghdad's over-stretched police force arrested more than 500 suspected criminals, as Iraq's interim foreign minister urged NATO to make good quickly on its promise to train security forces here. In what was claimed to be the largest anti-crime swoop since the fall of Saddam Hussein, about 500 police officers raided the Bab el-Sheikh district in central Baghdad as part of an interior ministry plan to crack down on organised crime and restore a semblance of security. Crime has soared in Iraq following the US-led invasion as convicts, freed by Saddam, roam free, creating a sense of deep insecurity as common crooks seize ordinary Iraqis for ransom and terror networks behead foreign hostages for political reasons. Interim foreign minister Hoshyar Zebari said authorities were "in a race against the clock" in their effort to assure stability, and he urged the North Atlantic Treaty Organisation to hurry up and provide the training for Iraqi security forces that it promised at its summit meeting in Istanbul last m. NATO Sec-Gen Jaap de Hoop Scheffer said only that a decision on the matter would be adopted before Aug. The alliance is still divided between the US desire to set up training within Iraq and France's unwillingness to establish a NATO presence in the country. Int ministry rep Col Adnan Abdul Rhaman said the police raid netted at least 525 people "suspected of crimes such as stealing, murder, kidnapping and drug-selling." Insurgents held the lives of a Filipino father of eight in the balance in an attempt to force the Philippines to withdraw its 51-member military contingent here, and put pressure on the US to free Iraqi prisoners. Manila left it unclear whether it would pull out its troops, which in any event were scheduled to leave in Aug, as the Filipino's hostage's family appealed for mercy. But the US expressed disappointment over a statement by a Philippine govt official that Manila would pull out its troops from Iraq "as soon as possible." Iraq's interior ministry rep Col Adnan Abdul Rhaman said 2 Bulgarian truck drivers snatched by a suspected Al-Qaeda linked group are still alive and in good health. As the interim govt in Baghdad grappled with the continuing insurgency, 2 wk after power was formally handed to it, fighting broke out in the N city of Mosul, claiming 2 lives, and 2 Brit military vehicles were targeted by a bomb blast in Basra. No casualties were reported. The president of Iraq's Olympic committee, Ahmed al-Hajiya, who succeeded Saddam Hussein late son, Uday, also said he escaped an ambush as he drove through central Baghdad. A roadside bomb exploded on Mon in the path of his car and an escort vehicle being driven by security guards along Haifa street -- a volatile stretch of road in the heart of old Baghdad, Hajiya told AFP. Iraq police take on crime with 527 arrests Baghdad (IHT/NYT). Flexing its new muscles without American help, the new Iraqi govt on Tue conducted a major sweep of common criminals in central Baghdad, arresting what officials said were 527 people suspected of crimes ranging from kidnapping to murder. Safety is the major concern of Iraqis, and many complain that the American military had been less concerned with ordinary crimes, which have skyrocketed, than with bombings and terror attacks. The raids Tue seemed intended to show that the new interim govt, which took power from American occupation forces here 2 wk ago, would not only move forcefully against everyday violence, but would be capable of doing so alone. "There was no coordination with the Americans in these arrests," said Sabah Kadhim, a rep for the Interior Ministry. "This was done totally by Iraqis." The raid, the 2nd in the last wk, was carried out by the Baghdad police and Iraqi intel agents. Kadhim said that those arrested would be investigated for any links to insurgents who regularly attack American and Iraqi forces. Meanwhile, the Philippine govt released an ambiguous message about whether it would bend to the demands of kidnappers who abducted a Filipino truck driver last wk and hasten the withdrawal of the country's 50-soldier military presence in Iraq. A govt statement released on Tue after an all-night cabinet meeting in Manila said it would pull out the soldiers as soon as it could, though the statement did not say whether it would actually speed up the withdrawal, already scheduled for Aug. 20. The kidnappers said they would execute the hostage, Angelo de la Cruz, a truck driver for a Saudi company, on Sun if the Philippine govt did not agree to withdraw the troops a m early. There was no word whether Cruz was still alive. Kidnappers are also holding 2 Bulgarians and an Egyptian, the latest in several dozens of foreigners who have been taken hostage here in the last few months in exchange for various political demands. Agence France-Presse, citing Al Jazeera television, reported that one of the Bulgarian hostages had been executed by his captors, and gave a 24-hr deadline for the other. Most of the other hostages have been released safely. In Brussels, the new interim foreign minister of Iraq, Hoshiyar Zebari, appealed to NATO nations for urgent help in training Iraqi security forces to help fight the insurgency here, as promised last m at the organisation's summit meeting in Turkey. He also said that Iraq would require military equipment and help from NATO in border control and protecting UN workers who would oversee the elections for a nat'l assembly next Jan. "We need this training you promised us in Istanbul to be carried out as soon as possible," Zebari told reporters in Brussels. "We need it, in fact we are in a race against time and it's a matter of urgency." NATO members have disputed exactly what their agreement last m meant, with several countries opposing having NATO as the primary trainer of Iraqi security forces. Several nations, including France, have ruled out a direct presence of NATO troops. Amid a lull in major attacks in Iraq, there were several explosions in Baghdad on Tue, including one that raised a plume of smoke in the Green Zone, the heavily fortified city centre area that is the main HQ for US officials here. The military reported that a hand grenade was tossed at a US patrol in central Baghdad. Another explosion in SE Baghdad wounded 3 Iraqi civilians, the army said. While the overall level of violence remains high, there have not been any large, spectacular attacks with high death tolls for nearly 3 wk. Meantime, the head of the Iraqi Olympic Committee said his convoy was attacked in Baghdad on Mon, wounding one of his guards. "This was an assassination attempt," the committee head, Ahmed al-Samarrai, told Reuters. He said that a roadside bomb had exploded nr his two-car convoy and that insurgents then attacked with grenades and gunfire. Attacks on Iraqi officials have been common in the last y and a half, killing most prominently 2 members of the Iraqi Governing Council, the now-disbanded body of Iraqis who had been appointed by Americans to help run Iraq. In the N city of Mosul, an Iraqi civil defence soldier died Mon in a firefight with insurgents who attacked his patrol. 9 other soldiers were reported wounded and 2 of the attackers were reported killed. Iraq's alcohol salesmen fear religion Baghdad (Reuters). Through barely open heavy steel doors, Abu Anthony furtively passes a black bag full of beer and a bottle of whiskey to a customer and silently takes his money. Outside in the glaring sun, a dozen men armed with assault rifles are positioned in cars watching the Ishtar Gate liquor store, ready to react should it be attacked by religious militants bent on stopping alcohol from being sold. If the militants strike, it won't be for the 1st time. On the small strip of Baghdad's Wihda district where the Ishtar Gate is, 2 other liquor stores have closed down in recent days, the bullet marks on the shop-fronts the only testament to the fact that alcohol was once sold there. Pretty soon, Abu Anthony's going to shut down too. "Once I've got rid of this stock, that's it. I can't take it any more, I'm shutting down," the 52-yo shop owner said on Mon, lamenting what would be the end of a business his Christian family has successfully run since 1979. "I am very afraid. I'm going to sell everything and then get out of this country," he said, giving only part of his name and keeping his face concealed behind the doors of his store. Alcohol sellers have been coming under attack in Iraq since shortly after last y's US-led invasion. In the S city of Basra, at least 2 store owners were killed late last y and their shops fire-bombed by suspected Muslim militants. But in recent wk there has been a marked increase in attacks, not just in S Shi'ite-dominated cities like Basra, but in Baquba, a mixed Sunni and Shi'ite city N of Baghdad, and in Fallujah, a Sunni town W of the capital. And it's not just the selling of alcohol that appears to have incited people's wrath. Cinemas showing explicit films have been bombed in the N city of Kirkuk and a shop selling DVDs was shut down in the Shi'ite holy city of Najaff. * WHO'S BEHIND IT? Following a string of apparently coordinated attacks in Baquba 2 days ago in which 5 alcohol stores were bombed, killing a passing taxi driver, a liquor warehouse in Baghdad was shot up on Sun and a family member kidnapped. Unlike many Muslim countries, alcohol is not illegal in Iraq although it is sold only by non-Muslims -- generally Christians and Assyrians -- and not in a very open way. Towards the end of his rule, in a bid to identify himself more closely with the increasingly religious Muslim majority, Saddam Hussein cracked down on alcohol selling, but the practice continued. Since his fall, Muslim groups have taken it upon themselves to put an end to it. Flyers have regularly been posted under shop doors threatening owners to stop business or face the consequences. Abu Anthony, a virologist by training who was educated in France and speaks fluent English, said he had received dozens of threats in recent months, but the tempo had picked up recently. He said he did not know precisely who was threatening him, but did not believe it was Shi'ites. "The Shi'ites are my friends, they drink more than we do," he said with a wry smile. "I don't think it's Iraqis who are doing this, I think it's foreigners -- Wahabbis," he said, referring to a strict Sunni sect dominant in Saudi Arabia. The irony of the intimidation campaign is that many alcohol sellers in Baghdad say business has never been better. But despite high demand, few are willing to run the risk of death. Others say they have no choice. Barakat Ali has a store in central Baghdad that was doing a swift trade on Mon. He said he would not be intimidated by threats, even though 5 young men attacked his shop on Sun, smashing windows and telling him to close down. He has already shut down 7 other shops he had across the country, and says he cannot afford to close another if he wants to feed his family. He was also sceptical about whether religious militants were behind some attacks. "Sometimes I get attacked by angry young men from across the street who just want free beer," he said. US Seeks to Protect Afghan Elections Kabul (AP). Thousands of American troops have begun a new operation to prevent militants from derailing Afghanistan's 1st presidential election, the top US cmdr here said Tue in an interview with The AP. Lt Gen David Barno insisted the switch does not blur the military's focus on catching Osama bin Laden and other top fugitives. But he acknowledged he has no firm idea where the al-Qaeda leader is hiding or what he might be planning. Operation Lightning Resolve is "kicking off as we speak," Barno said at his HQ in the Afghan capital. He said the operation contains enough "offensive punch" to keep militants off balance and could see an increase in targeted, intel-driven raids. He gave no specifics. A 2,000-member Marine force, which has hammered Taliban militants in a S stronghold since it arrived in March, is in the process of leaving the country, Barno said. The remaining force of 17,000 regular and special operations soldiers will try to fill the vacuum while intensifying its cooperation with the UN. The world body has registered more than 7 mn voters for the Oct. 9 election, seen by many war-weary Afghans as well as the US as vital to Afghanistan's recovery. 6 election workers are among about 600 people killed in violence this y, victims of feuding warlords, as well as rebels and soldiers -- a mix that raises fears the vote will be neither fair nor free. Barno said the Marines, who have killed scores of suspected militants in intensive operations since May, have helped registration to be a success. "Now we'll be shifting our efforts to helping to build the required security going into the election itself," Barno said. "We should expect that we have to fight to get to these elections." US forces are expected to provide a broad security blanket across the S and E during the election, leaving Afghan police and soldiers to protect polling stations. NATO has also begun topping up its 6,500-strong peacekeeping force focused on Kabul and sending detachments out across the relatively peaceful N in the run-up to the vote. Incident-free elections would reflect well on the US military and deflect criticism that it has failed to net bin Laden or Taliban leader Mullah Mohammed Omar. The military is also dealing with a widening investigation into allegations that Afghan prisoners have been abused in American jails here. Barno said the effort to track down top fugitives was "as robust as it's ever been." He wouldn't say whether elite troops who tracked former Iraqi dictator Saddam Hussein before his capture last Dec were now in Afghanistan. There have been reports from Washington that bin Laden and his top aide, Ayman al-Zawahri, might be planning major new al-Qaeda attacks to disrupt the upcoming US elections. Barno said the idea that they were plotting something from a hideout near the rugged Pakistan-Afghan border was "reasonable." But he said there was "zero credibility" to speculation that the military was under political pressure to deliver bin Laden before Pres Bush faces the electorate. "Those are, I think, the most difficult targets we have over here," Barno said. "Because of the lack of info we have on them, I think the inference is that they are well-protected." He said US intel-gatherers were hoping Pakistani military operations against al-Qaeda suspects in a tribal region across the border would yield vital leads. The US military has praised Pakistan for a bloody crackdown on foreign fighters in its S Waziristan region to coincide with the last American operation, Mountain Storm, which began in March. A top former Taliban cmdr was one of about 100 suspected militants and their tribal supporters killed in Waziristan last month. But Barno said rebels are still slipping across the border into southern Afghanistan, despite heavy losses in clashes with Marines and the use of humanitarian aid to try to persuade villagers to provide intel. With little sign the Afghan govt is able to reassert control in remote border areas, US troop strength would remain at about 17,000 "for an extended period," Barno said. "A counterinsurgency strategy does not achieve success in 3 months or 6 m," he said. "These are longer-term, sustained strategies." Israel plots new route for barrier Jerusalem (AP). Military cartographers are charting an alternative route for the contentious W Bank separation barrier that would run closer to Israel and minimise hardship for Palestinians, security officials said. The changes were made in response to a ruling by Israel's Supreme Court last m that the planned path violates Palestinian rights. Defence officials said last wk's world court ruling that the barrier was illegal was not a factor in their decision-making, and that they were guided entirely by the criteria established by the Israeli court. 3 alternate routes are to be presented to the Defence Ministry, security officials said on condition of anonymity. The 685 km complex of fences, concrete walls, trenches and razor wire is already 1/4 built. Israel says it needs the barrier to keep out Palestinian attackers, while Palestinians contend it is a land grab. Some 1,000 Israelis have been killed in nearly four y of fighting, many of them by suicide bombers and gunmen. In the same period, more than 3,000 Palestinians have been killed, most by army fire. While the old route was defined purely by security considerations, the new one would try to find a balance between Israel's security needs and Palestinian rights, a defence official said, speaking on condition of anonymity. In redrawing the map, planners were asked not to run the barrier next to Palestinian villages and not to separate Palestinians from their fields and schools, the official said. As a result, the new route runs much closer to Israel, and some Jewish settlements in the W Bank will now find themselves on the "Palestinian" side of the barrier, the official said. The biggest route changes are expected in planned areas between the settlement of Elkana and Jerusalem and another stretch in the S W Bank. No major changes are expected to the barrier that has already been built, the official said. Israel kills snr Jihad leader Jerusalem. Israeli special forces have killed a snr leader of the Palestinian militant group Islamic Jihad. The Israeli military says the man was killed in a targeted operation to arrest terrorists. Numan Tahaineh has been on Israel's most-wanted list for several years. The Islamic Jihad leader in Jenin was driving through the W Bank town when Israeli special forces called on him to surrender. When Tahaineh refused, the soldiers opened fire killing him and wounding his colleague. 3 wanted Palestinians in a 2nd car were arrested when they agreed to surrender. In recent days Israeli forces have carried out several raids in Jenin, which is regarded by Israel as a hotbed of Palestinian terror. 3 hurt in Spanish bull run Pamplona (AFP). 3 people were injured during the penultimate round of Pamplona's annual "running of the bulls" festival on Tue, hospital officials said. The run, which caused no life threatening injuries, was considerably less violent than the Mon's nerve rattling stampede through the narrow streets. 18 people were injured in the earlier run, of whom 8 were gored. The 9 day event -- known as the San Fermin fiesta -- ends late on Wed. The daily 825 metre stampede by the bulls through the crowded streets terminates at the city's arena, where the animals then take part in the traditional sport of bullfighting. The festival also features concerts and round-the-clock drinking. The event, which regularly draws protests from animal rights groups, has resulted in 14 deaths of spectators since records began in 1911. Nobody has so far been killed during this y's event. Brit committee urges overhaul of honours system London. A Brit parliamentary committee has labelled the country's honours system "outdated" and recommended the phasing out of some titles. "Inappropriate" is how the Brit parliamentary committee has labelled the conferral of knighthoods and damehoods. It describes them as "redolent" of past preoccupations with rank and class and recommends they be scrapped. The committee wants an overhaul of the Queen's honours system as a whole, saying civil servants, diplomats and members of the armed forces are unfairly favoured. It suggests the system should be independently administered, rather than overseen by Number 10, because of the popular judgement that the awards are a tool of political party management. The Brit Govt is obliged to consider the report and respond. SYD named world's best city NY (AAP). SYD remains a dream destination for global travellers after being named the World's Best City. The US-based magazine Travel + Leisure gave the NSW capital the award for the eighth time in 10 y. SYD won ahead of Rome, Florence, Bangkok and Cape Town. Acting NSW Tourism Min Tony Kelly said the award confirmed SYD's reputation as a world city and the 1st destination of choice for internat'l travellers to AUS. "No other Aussie city makes it into the top 10," Mr Kelly said. The Great Barrier Reef islands also featured prominently in the awards. The stretch of islands off the N Qld coast was named the 10th in the World's Best Islands category, and No. 1 in the AUS, New Zealand and S Pacific islands category. AUS's only island state, Tas, was second in that category. Lizard Island, one of the Great Barrier Reef's most luxurious and exotic resorts off the coast of Cairns, ranked 16th in the World's Best Hotels category and topped the World's Best Hotels category for AUS, NZ and the S Pacific. AUS provided 19 of the top 25 World's Best Hotels in the regional category. The Travel + Leisure World's Best Awards 2004 are based on the evaluations of more than 425,000 readers. Aunty tells of castaway kids' miraculous survival The Tamwoy family was travelling from Badu Island to Thu Island when their boat capsized. Thursday Is, Qld. A relative of 3 children who survived nearly a wk in the Torres Strait after their family's dinghy capsized has told how they lived off a few shellfish, coconuts and wongai fruit. 6 members of the Tamwoy family were travelling from Badu Island to Thu Island on Tue last wk when their dinghy capsized in rough water. Naseli Nona, a local pastor and his wife Lisa were travelling with their 4 children -- 2 boys, aged 3 and 11 -- and 2 girls, aged 10 and 15. 3 of the children, Ellis, Bulla and Norita, were found on tiny Matu Island yesterday afternoon but an extensive air and sea search yesterday failed to find their parents and three-yo brother, Clarence. The Aussie Maritime Safety Authority has officially called off the search but family and friends will continue searching the area in dinghies. The parents and Clarence were last seen clinging to a single life jacket. * Rocky outcrop Ms Tamwoy says Ellis, Bulla and Norita survived by following their mother's orders. "The 3 children were told by their mum to swim for that rocky place over there so at least someone will survive," she said. "The children then remained on that rocky outcrop from Tue night until Fri morning. "They had no food, no water during that period of time. Bulla's indicated that they might have had an oyster or 2 but nothing else, certainly no water. "On the Fri morning, he said to the 2 girls 'we need to swim to this other island we can see, otherwise we will die'. "The 3 of them then took on something like a three-km swim to get to the island of Matu and there they remained from Fri until they were rescued by their uncle Frank Nona." * Dry coconuts She says the children found some sustenance on tiny Matu Island. "The island had dry coconuts, so they were able to get fluid from the coconut water," she said. "They husked the coconuts by using their teeth and they ate wongai fruit." She says her husband will never forget the moment he found the trio on a remote beach. "They just saw him and went, 'Awwwww Uncle Pacus' and they ran crying to him along the sand," Ms Tamwoy said. "He just wrapped them up in one of his makeshift sails he uses when he's dugong hunting but just enveloped them, threw them in the dinghy, fed them water and cordial and got them back to us as quick as they could." The Aussie Maritime Safety Authority says it called off the search for the remaining trio because they would have had little chance of surviving unless they made it to land. But Ms Tamwoy says an unofficial search will continue. "We all are praying and believing that we received 3 miracles, so perhaps we will be able to receive some more miracles," she said. "There is a very firm belief in God and higher entities and people are praying to those." Consumer confidence at 10 y high Canberra (AAP). A key measure of consumer sentiment rose to its highest level in ten y in Jul, in the wake of a fall in petrol prices and the Reserve Bank of AUS's decision to keep interest rates steady. The Westpac/MEL Institute Consumer Sentiment Index rose by 4.5% to 119.5 in Jul, which represents its highest level since Jul 1994. There have been only 7 m in the 30-y history of this survey that consumer sentiment has exceeded the current level. The record level of the index occurred in Jun 1994, when it reached 124.0. The index has averaged 116.7 in the 1st 7 months of 2004, well above the historical average of 100.9. Consumer sentiment in AUS is currently 2.9% above its level of 1 y ago. Westpac Bank's global head of economics Bill Evans said despite a generally more positive environment for consumers the index represented a surprisingly strong result. "Most of the news that would have influenced consumers over the last m has been positive," he said. "Petrol prices have fallen by around 4 per cent, the stock market has risen by 2.8% and the Aussie dollar has recovered by 4.7%. "In addition, we have seen the RBA hold interest rates steady for yet another month, despite the US Fed Reserve raising rates for the 1st time in more than 4 y." Confidence amongst mortgagees also rose, by 5.9%, Mr Evans said. "Many households also have received family payments announced in the govt's recent budget and higher income earners have received a boost to their incomes from the Budget's tax cuts," he said. "The unemployment rate remains nr 20 y lows, and the barrage of negative publicity with respect to housing activity and house prices seems to have subsided." Mr Evans said continuing doubt about developments in the housing market and political uncertainty will keep the RBA on hold until nr the end of the year. "However, we do expect to see the official interest rate increase by Dec," he said. Consumer confidence hits 10-y high Consumers sentiment stronger than expected. Canberra. A key measure of consumer confidence in AUS is now the highest it has been since 1994. This month's Westpac/MEL Institute index of consumer sentiment has jumped 4.5% in a result described as surprisingly strong. At 119.5, the index is the highest it has been since Jul 1994. Westpac's global head of economics Bill Evans says it has exceeded the solid result that would have been expected. "Given things like petrol prices have fallen by about 4% since the last survey, the stock market's increased by about 2.8% and the Aussie dollar has also recovered," he said. "So all of those factors have been positive. The Reserve Bank decided not to raise interest rates again." Family tax benefit payments and income tax cuts have also lifted the mood in Aussie households. Mr Evans says it augurs well for the momentum of the economy over the remainder of the year. "Particularly given that another factor behind that confidence would have been the tax cuts that are now coming through to higher income earners and the family payments, which we expect will give quite a boost to retail sales and consumer spending," he said. WA bid to recognise 'original custodians' stalls Perth. WA's Opp'n has rejected a Govt proposal to amend the state's Constitution to recognise Aboriginal people as the original custodians of the state. The Opp'n says the Govt was trying to ram through a change which it believes could lead to Aboriginal land claims. In 2 wk, a joint sitting of Parliament is being held to mark the centenary of the parliamentary building, as well as the 175th anniversary of the founding of the Swan River colony. Indigenous Affairs Min John Kobelke says the Govt had hoped to use the occasion to amend the Constitution to recognise Aborigines as the original custodians and promote reconciliation. But he says the Opp'n rejected the proposal. "It doesn't matter what you suggest, the Liberals oppose it," he said. "They really do not have any policies or programs to take this state forward." Upper House Liberal MP Norman Moore says he finds it galling that the Govt would want to rush through critical legislation in just one sitting. "Quite frankly, it's a very controversial issue," he said. "There are significant potential legal ramifications of land ownership in W AUS." Mr Kobelke says the Govt will seek to amend the Constitution at a later date. Govt denies forcing asylum seekers to relocate Canberra. The Immig Dept has denied it is forcing asylum seekers at Villawood in SYD to move to new housing projects at SA's Baxter detention centre. The Fed Govt wants to move families into new residential housing projects, saying Villawood is not designed for long-term detainees and conditions are not suitable for families. Ian Rintoul from the Refugee Action Coalition disagrees, saying Baxter is worse than Villawood. "In their legal support, community support, access to facilities, the conditions in Baxter are far, far worse," he said. A rep for Immigration Min Amanda Vanstone says the relocations are voluntary and the dept will not force any families to relocate. Virginia, an asylum seeker from Villawood who did not want her full name revealed, says that is not the message the detainees were given this morning. "They have no choice," she said. "Some of the families, they're told they say, 'if you agree to go you come back, you pack your own stuff, otherwise, the guard will pack your stuff'." She says 4 families were forced to leave Villawood this morning. Mr Rintoul says the families do not want to go and Refugee Action Coalition will launch legal action in the Fed Court this afternoon to try to stop the relocations. A rep for the Immigration Dept says while some families have agreed to move to Baxter, she will not confirm how many are being transferred or when they will be moved for security reasons. More refugees arrive in Bris from Nauru Brisbane. A group of 75 Afghan refugees has arrived in Bris from detention on the tiny Pacific nation of Nauru. It is the 3rd group to be granted permission to enter AUS since the Govt reviewed its caseload in Nauru. Hassan Ghulam from the Hazara Ethnic Society says the latest refugees to arrive have been given very restrictive temporary protection visas. "They are coming with a visa which is for 5 y or 3 y," he said. "They will not be eligible for travel, they will not be eligible to bring their close family to AUS, so the suffering will continue, so if Amanda Vanstone is really serious to be more humane she should change this immediately." Uniting Church welcomes new refugee policy Melbourne. The Uniting Church is welcoming the Fed Govt's decision to allow 1000s of temporary protection visa holders to apply to stay in AUS. Yesterday the Immigration Min Sen Amanda Vanstone announced 9,500 people on the visas will be able to apply for permanent residency. Uniting Church president Reverend Dr Dean Drayton says the Govt has finally shown some compassion to people living in AUS with uncertain futures. He says it gives hope and encouragement to many refugees. "For those who are still under the anxiety of the temporary protection visa, it lets the light flicker a little stronger," he said. "It opens the door wider than it has been before and we hope that the Govt keeps opening the door both for refugees and asylum seekers." However, the new policy has been criticised for not helping some temporary protection visa holders gain Aussie residency. Swan Hill horticulturist Ian Skiller has assisted many temporary visa holders and he says closer scrutiny of the policy has revealed flaws. "At 1st we thought it was really good, but after we've had a look at it and had some legal advice there's a few loopholes in it and a couple of flaws that don't really benefit us," he said. "It will assist some TPV holders if they have skills, but see agriculture is not recognised as a skilled industry and they won't come under the skilled migration program." Govt ditches nuclear dump plan The Govt has given up on its plan for a nat'l radioactive waste dump. Canberra. The Fed Govt has abandoned its plan to build a single nat'l radioactive waste dump in SA. The Commonwealth wants each state and territory to build its own waste storage site. The Fed Govt has been under pressure to resolve the problem of where to build a nat'l nuclear waste dump after a Fed Court ruling in Jun that the Commonwealth's compulsory acquisition of land for a site in SA was unlawful. The Fed Govt will not challenge that court decision. Instead, the states and territories will be expected to build their own storage facilities for radioactive waste. The Fed Govt is now looking for a site to store its low and intermediate-level radioactive waste. But with a string of marginal seats at risk, it has ruled out building any depository in SA. * 'Cynical device' Labor's science rep, Kim Carr, says the Govt is trying to buy votes. "This is a cynical device by the Govt to try to get itself out of trouble with marginal seats in SA," he said. "It doesn't address the fundamental problems that go to the issue of waste disposal in this country. "The waste that is being stored around the country in filing cabinets, in hospital basements, in a whole lot of other places, needs to be dealt with -- it has to go somewhere. "90% of that waste is Commonwealth waste. It is a complete farce for this Govt now to say that instead of one waste dump, we are going to have eight. This is an extraordinary admission of failure." Mr Carr says the Govt did not consult the people of South AUS and has paid the price. But S Aussie Prem Mike Rann says the decision is a great victory that was needed to protect the state's internat'l reputation. * 'Dump state' "A few y ago I was in America and I saw in NY a whole series of postcards about neighbouring NJ which fingered them as the dump state," Mr Rann said. "NJ became in a sense a joke because of it and people from the wine industry, food industry and our tourism industry pleaded with me to keep going with the fight." Fed Finance Min Nick Minchin says he is disappointed Mr Rann has not cooperated with the Commonwealth. "We've come to this point because of the political opportunism of Mr Rann using the courts to obstruct and sabotage the implementation of a nat'l policy," he said. "The chances of us winning a High Court appeal are dubious at best. It would take m and months, if not a y or so, to even get to court and have this heard. "We can't sit around waiting for that happen and there's every chance that we'd lose on appeal." Meanwhile, the Fed Opp'n says the decision puts the new Lucas Heights reactor in SYD in jeopardy and the Aussie Democrats' rep on science, Natasha Stott-Despoja, hopes that is the case. "Lucas Heights has been supported by the Labor Party and the Govt so they are down the track in terms of their construction plans and the money has of course been allocated to the new reactor," Sen Stott-Despoja said. "The Democrats have said all along, you cannot proceed without a waste disposal management and storage proposal." States scupper fed waste dump plan. Aust may ship nuclear waste offshore Canberra. PM John Howard says the Commonwealth may send its low-level radioactive waste to an offshore island after abandoning proposals for a nat'l waste dump in SA. The Opp'n believes the Govt plans to reverse today's decision if it is re-elected. Mr Howard says the states and territories have refused to cooperate and will now have to look after their own low-level nuclear waste. The Fed Govt will still have to find a new site to store its radioactive waste and Mr Howard says the dump could be built on an island off the Aussie coast. "We'll conduct a search to see if we can find some Commonwealth land either onshore or offshore and we'll put the Commonwealth low-level waste there," he said. Opp'n leader Mark Latham says the Govt has scrapped its plan for a dump in SA because of the looming election. "As soon as the election is out of the way, they'll be trying as they have been for 80 y to get that dump into SA," Mr Latham said. Mr Latham says Labor would work with the states to find the best location for a radioactive waste dump. The Fed Govt says places like outback NSW will bear the brunt of the decision to abandon plans for a nat'l nuclear waste dump in SA. Fed Member for Parkes, John Cobb, says communities in W NSW are now likely to have a state dump. "The state Govt will not put it along the coast, they'll not put it near the major river systems or the major population centres, it's quite obvious where that leaves," he said. * Marginal seats The Opp'n says the Govt has scrapped its SA plan to protect a string of marginal seats. "This announcement has been made just for the fed election," Mr Latham said. "It's another example of Mr Howard saying one thing before the election and getting ready to reverse his decision as soon as the election's out of the way." Trish Worth is one of 3 Liberal MPs who hold marginal seats in Adel. She has defended the decision but concedes it improves her chances of re-election. "I don't see it as cynical -- I see it as taking a very calm, logical approach to finding a sensible solution to this," Ms Worth said. Mr Howard says the decision was forced by the states, which he says support a nat'l radioactive waste site but do not want it in their backyard. "If the states are refusing in practice to cooperate, if they're adopting this destructive attitude, then I will thrust back on them the responsibility of looking after their own waste," he said. "If they want to play sovereign state politics, 'not in my state' politics, okay they can do that but they will have to look after their own waste." * Export warning Leader of the Aussie Greens, Bob Brown, claims Mr Howard would consider the poverty-stricken island of Nauru as a nuclear waste dump for AUS. Sen Brown says the Howard Govt would now be looking at its Pacific Island neighbours as sites for potential dumping grounds. "John Howard has dumped hapless human cargo, in breach of internat'l law, in Nauru, he would be thinking about putting nuclear waste in Nauru," he said. "That's the level of thinking of our PM but the nation won't stand by him." We don't want nuclear dump in Qld: Beattie Brisbane. The Qld Govt has rejected the Commonwealth's proposal for each state to handle its own nuclear waste. The Commonwealth has abandoned plans to build a single dump for the nation's radioactive waste in SA. The Fed Court ruled the Govt's compulsory acquisition of land for a site in SA was illegal. Prem Peter Beattie says he does not want a dump in Qld. "We don't want any dump in Qld, end of story," he said. "The Fed Govt handled the SA case in, frankly, a very clumsy way and we need to try and take the politics out of this and sit down more rationally and work out how to deal with waste." Labor back-flips over Woomera waste relocation Canberra. Labor has announced a back-flip over radioactive waste that has been stored at Woomera in SA for the past decade. Yesterday on ABC Radio, shadow environment minister Kelvin Thomson said a fed Labor govt would leave the 2,000 cubic metres at Woomera. But today Mr Thomson said Labor would match the Coalition's pledge to remove the waste. "When the issue was raised with me by a caller yesterday, I had not had put to me the question of waste previously dumped," he said. "Having had that issue put to me, I discussed it with colleagues, including Sen (Kim) Carr, and the position that we had is that the waste at Woomera would be part of a nat'l repository and therefore would be relocated." ACT quiet on roo protests Canberra. Environment ACT will not say if protesters have disrupted a kangaroo cull at Googong Dam overnight. 6 members of the Animal Liberation Group spent last night at the dam in a bid to stop the cull. The cull began at the weekend, with plans for licensed shooters to destroy about 800 animals. Environment ACT says because of the drought, the kangaroo population has reduced ground cover to minimal levels, posing a threat to the quality of one of CBR's main water supplies. The protesters have urged the Govt to consider other methods such as fencing and have vowed to stay in the area until the shooting stops. Liberal pair may vie for blue-ribbon seat Melbourne. Liberal Party power-broker Michael Kroger and former fed director of the party Andrew Robb may seek preselection for the blue-ribbon seat of Goldstein in MEL. The seat is being vacated by Fed Environment Min David Kemp who will not contest the next election. PM John Howard says both men would make strong candidates. He has also taken a dig at the way the Labor Party cleared the way for Peter Garrett to step into the safe SYD seat of Kingsford-Smith against the wishes of some rank and file members. Mr Howard says the preselection process for the seat of Goldstein will be run democratically. "I would like to see a strong field, and I would like to see a strong candidate emerge," he said. "Because it's a good Liberal seat with a strong Liberal tradition, but democracy will prevail in Goldstein, unlike Kingsford-Smith." NT yet to be asked for Azaria apology Lindy and Azaria ... no apology request yet. Darwin. The NT Govt says neither Lindy Chamberlain-Creighton nor her ex-husband, Michael, has approached it regarding an official apology for their wrongful convictions relating to the death of their baby daughter Azaria. The Bulletin magazine reports that the couple is not satisfied by a 1987 pardon. Mrs Chamberlain-Creighton spent nearly 4 y in prison in Darwin after being found guilty of murdering Azaria. She was released after her daughter's matinee jacket was found at the base of Uluru, corroborating her story that a dingo had taken the baby. The talk of an apology comes as N Territory police investigate new claims by a MEL pensioner that he shot a dingo with a baby in its mouth shortly after Azaria disappeared from a camp site in 1980. 3 jailed over $20 mn tax fraud Melbourne. Tax authorities have welcomed a 5-y jail sentence handed down to two tax specialists and an accountant for conspiring to defraud the Aussie Tax Office of more than $20 mn. Walter John Tieleman and Sean Pearce of Perth and Stephen Lynne Wharton of MEL were found guilty of conspiracy last wk for their role in a tax-minimisation scheme. Tax commissioner Michael Carmody says the sentence sends a strong message to those involved in promoting tax schemes, He says the tax office is continuing to focus on the activities of tax scheme promoters. The 3 men will be eligible for parole after 18 m. Man refused bail over Philippines child sex charges Sydney. A SYD magistrate has refused bail for a man from Nelson Bay near Newcastle in the Hunter Valley who is facing 8 child sex charges relating to a recent visit to the Philippines. Ronald Morris King was arrested after photographs of the claimed sex acts were allegedly found in his luggage at SYD Airport. Aussie Fed Police allege the 54-yo sexually abused two girls under the age of 16 during a recent holiday in the Philippines. Photographs of the 2 victims in the alleged offences were shown to Central Local Court Magistrate Allan Moore by the prosecutor opposing bail. King's barrister Eric Kelly said the charges were denied and would be vigorously defended. Magistrate Moore said records showed King had a habit of visiting the same location and a prior history of similar offences. Describing the photographic evidence as most graphic and the prosecution case as strong, he refused bail and remanded King in custody to reappear next m. Jury finds man not guilty in hijack trial Melbourne. A MEL man who tried to hijack and crash a Qantas plane last y has been found not guilty due to mental impairment. David Mark Robinson, 41, of Bentleigh E was charged with attempting to hijack a Qantas plane as it flew from MEL to Launceston in May last y, as well as attempting to murder a flight attendant and causing grievous bodily harm to another. The Supreme Court heard Robinson believed he was on a mission from God to rid the world of the devil by crashing the plane into the Walls of Jerusalem Nat'l Park in Tas. The court heard Robinson was an un-diagnosed paranoid schizophrenic. After brief deliberations, the jury found him not guilty of all charges due to mental impairment. Justice Murray Callum said Robinson would be placed in supervisory care at the Thomas Embling Psychiatric Hospital. In a video-taped interview played to the jury yesterday, Robinson admitted to Aussie Fed Police officers that he had tried to hijack the flight. He said that after going to the toilet he tried to open the cockpit door but it was locked and he was challenged by flight attendants. Robinson told the officers he had flown all over AUS, including capital cities, Broome, outback N Territory and Port Douglas, looking for a woman wearing crimson and scarlet who would show him where the devil lived. He said he found her in the Walls of Jerusalem Nat'l Park and planned to crash the plane there to rid the devil from the earth. China welcomes birth of panda The 1st panda of the y has been born in captivity in China. Beijing (AFP). The panda was born in the SW Sichuan province to a 5-yo bear called Xi Xi. Huang Yan, an official at the Wolong Giant Panda Protection Research Centre, said: "We are honoured to see this y's 1st panda baby in the whole world born in Wolong." "The mother and the baby are both in good condition," he said. The cub was born Tue morning. Experts will continue to monitor its progress round the clock. 16 giant pandas survived birth in captivity in China in 2003, increasing the total number of the endangered species in captivity by 10% to 161 animals. China has made major progress in breeding giant pandas since the 1990s. 9 were born in 2000, 12 in 2001 and 10 in 2002. At least 1,590 of the endangered species live in the wild, all in China. Albatross race may go annual Hobart. The Big Bird Race of albatrosses from Tas to S Africa will become an annual event if conservationists get their way. In Apr, 18 Tasn shy albatrosses were fitted with satellite tracking devices so scientists could monitor their 1st migration across the Indian Ocean. A female bird named Aphrodite sponsored by model Jerry Hall was the first to reach S African territorial waters. Tim Nevard from the Aussie Conservation Foundation says the event helped raise the awareness of how many seabirds are killed because of long-line fishing. "We are very, very hopeful that it will be a project that will sooner or later capture the hearts of mn of people and they'll participate in it a bit like they do in the MEL Cup and the Grand Nat'l, well maybe not quite so big as that, but we hope big any way," he said. Fossil research challenges early animal life theory Albany, NSW. A Swedish scientist says more comprehensive research has strengthened the argument that fossils found in the Stirling Range nr Albany in southern W AUS show complex animal life existed on earth more than 1.5 bn y ago. The fossils were 1st unveiled by researchers from the University of WA in 2002. They are thought to be the tracks of an animal-like organism that lived around 1.8 bn y ago. The discovery has been subject to much scepticism, as it challenges accepted scientific theory that the 1st complex organisms on earth emerged around 600 mn y ago. It has been suggested the fossils were created by single-celled organisms, but Stefan Bengtson from the Swedish Museum of Natural History says his research has ruled out that theory. "We have now looked at a lot more material which we have found in subsequent field work and there is no way these things can be wrinkled microbial mats. They must be something else but the best explanation we have so far is traces of a large organism," he said. Scientist maps eucalyptus DNA Hobart. DNA sequencing has been extended to AUS's native flora in what is believed to be a scientific first. A Tasn scientist has mapped the entire DNA sequence for a species of eucalyptus. Eucalyptus globulus is a hardwood tree and considered one of the most important temperate hardwood forest species in the world. Dororthy Steane has mapped the DNA for the chloroplast, the section of the plant in which photosynthesis takes place. Dr Steane from the Cooperative Research Centre for Sustainable Production Forestry says her research will help in eucalyptus conservation. "Chloroplast DNA can be used for fingerprinting trees, so we can use these fingerprints of trees to study how forests work," she said. "This sort of research can be used to create better strategies for the management and conservation of eucalypts, not just eucalyptus globulus, but many other species of eucalyptus." Tarzan's tiger on the run [Later reports say police officer shot it dead]. Palm Beach, FLA (Reuters). Police and wildlife authorities in Florida are hunting for a tiger which has escaped from the home of a B-movie actor who once played Tarzan. 6-yo Bobo escaped from actor Steve Sipek's compound nr West Palm Beach yesterday. The 270-kg tiger has been spotted several times but searchers have not not able to get close enough to fire tranquilliser darts. Officials believe the animal has not roamed further than about 200 metres from home but it has managed to hide in thick scrub around Loxahatchee, 80 km N of Miami. One woman says she saw Bobo in her backyard. Florida Fish and Wildlife Conservation Commission rep Willie Puz says the tiger, de-clawed but not de-fanged, is not necessarily considered a threat to local residents. "From what I'm told it's the 1st time it's been away from home so it's checking to see if it's greener on the other side of the fence, I don't know," Mr Puz said. "But so far it hasn't been aggressive toward anybody. It has been in captivity its entire life so it didn't have a mother to teach it to hunt but it is a wild animal so when do those natural instincts kick in?" Sipek, who played Tarzan in 2 movies in 1969 and 1972 under the screen name Steve Hawkes, looks after mistreated big cats and has another tiger, 2 lions, a black leopard and a cougar. Local newspapers said the cats roam freely around his home. Sipek has long had a permit to keep exotic wildlife as pets, Mr Puz said. Major Bret Norton, also from the conservation commission, says it is important to catch the tiger soon. "Obviously if the cat hasn't eaten, it's going to try to find food," he said. "There are chickens and other things in the adjacent properties. Hopefully, we'll have it captured before it gets hungry." Local residents are being escorted to and from their houses, if they requested it. Some decided to help wildlife officers hunt for Bobo. Linda Meredith packed a live Yorkshire pig in the boot of her car and offered its services in drawing the tiger back home, the Sun-Sentinel newspaper reports. "He has all these humans screaming at him but he doesn't want that. He wants dinner and that's a pig squealing," Ms Meredith said. The wildlife officers thanked Ms Meredith but sent her and her pig packing. Tiger killed after Florida escape Palm Beach. Wildlife officers have killed a 270-kg tiger called Bobo after it escaped from the Florida home of a B-movie actor who played Tarzan. Officers hunted the fugitive cat for more than 24 hr in thick scrub around Loxahatchee, 80 km N of Miami. They spotted it and hoped to use a tranquilliser dart to recapture it but the animal lunged at them and was fatally shot, officials said. "The tiger attacked one of our officers," a wildlife official told reporters at the scene. "Our officers unfortunately had no choice but to use lethal fire and shot the tiger. "We're very, very sad to report the tiger is deceased." The six-yo male tiger, which actor Steve Sipek raised since it was a cub, was de clawed but not de-fanged. Sipek played Tarzan in 2 movies in 1969 and 1972 under the screen name Steve Hawkes. He looks after mistreated big cats and has another tiger, 2 lions, a black leopard and a cougar. Local newspapers say the cats roam freely around his home. Sipek had long had a permit to keep exotic wildlife as pets, officials said. Local residents were escorted to and from their houses, if they requested it, during the hunt for the elusive cat. {{ 0.30 am The EU's highest court has ruled EU mins acted illegally when they agreed not to punish France and Germany for exceeding deficits allowed under the EU stability pact. It also ruled the Fin Mins acted illegally in trying to ignore the stability rules. The ruling establishes the power for enforcing EU rules belongs to the EC, and not to the Mins of member countries. The EC filed the case after Mins blocked fines for allowing ys of deficits. France is now in the best position to manage its budget deficit. Romano Prodi welcomed the decision, saying it strengthens the Stability Pact. Other officials called for more flexibility in the Pact. The court emphasised that Mins are under no obligation to observe its ruling. 500 people have been arrested in Baghdad in a single day of operations. They were all criminals, said the Interior Minister. Reports say most were prisoners released by Saddam during the US invasion. A land mine has exploded next to vehicle carrying a pro-Russian official in Chechnya. He was not hurt, but a bodyguard was killed. India. 16 people have died in flooding in Assam state. 2.5 mn are now homeless along the Brahmaputra R. French police are suspicious of a reported anti semitic attack. A young woman claims she was attacked by a gang of youths, some of them from N Africa. They cut open her shirt and painted swastikas on her stomach, she says, because they thought she was a jew. Police say they've not found evidence of the attack, nor witnesses to corroborate the woman's story. She says up to 20 people on the train witnessed the attack, but did nothing to help. 6 am Israel has killed a leader of Islamic Jihad in Jenin. 3 other men in a car surrendered to Israeli soldiers. Iraqi insurgents have executed a Bulgarian hostage. They've set a 24 hr deadline for the execution of a 2nd Bulgarian unless the US releases all its prisoners in Iraq. Al-Jazeera said they've been sent a tape of the execution, but didn't air it. The Bush Admin has called on Phil not to pull out troops ahead of their scheduled withdrawal date. Insurgents holding a truck-driver have given the Phil until Jul 20 to pull out its small contingent. Geneva. The Red Cross says it believes the US continues to hold terrorist suspects in secret detention camps. It says it has not received a satisfactory reply to requests to visit so-called "ghost detainees". A member of al-Qaeda said to be close to OBL has surrendered to Saudi authorities. The wheelchair-bound man gave himself up in Afghanistan and has been transported to Riyadh. He said he'd been living in the Iran/Afghan border area. He's the 3rd terrorist to give himself up in the 3 wks since the latest Saudi amnesty was announced. 9 Afghan men who hijacked a plane to Brit have been granted asylum in the UK, despite their threats to kill passengers and blow up the plane. The govt says they would be placed in danger if they returned to Afghanistan. In Feb 2002 they group hijacked a domestic Afghan flight and forced it to fly to London. After a 3 day standoff they surrendered to police. They had been jailed for 5 y, but their convictions were quashed on appeal last y. 3 police have been killed and a girl injured when a grenade was thrown at a motorcade in Kashmir. There are reports of other deaths in shoot-outs in the Indian-controlled territory. The Turkish Parl put former a PM on trial for fraud. He was PM 3 times and had been protected until now by Parl immunity and political alliances. But this Parl is dominated by other forces. He's accused of manipulating the state bank. Many banking deals of the 1990s are being investigated. The US has formally notified Japan that a US Sgt is still wanted on charges of desertion. The 64 yo is presently meeting with his Japanese family in Indon. His wife has expressed a desire for them all to live in Japan. But the Pentagon says the charges are serious and need to be resolved according to the uniform military code of justice. 6.30 am In the Torres St search officials have called off a search for 3 missing people. A family of 6 were travelling to Thursday Is from Matu Is 1 wk ago when the motor of their boat cut out and it overturned in rough seas. The family of 2 adults and 4 children were thrown into the water. Searchers found 3 girls on a tiny island outcrop 2 days ago. Their mother had told them to swim there. They'd held onto the outcrop for 3 days before hunger drove them to swim to Matu Is, about 4 km away, where they were rescued by an uncle. 7 am A French women who claimed to have been attack by N African youths on a train has admitted she lied. The woman said the youths had cut open her shirt and painted swastikas on her stomach because they mistakenly believed she was Jewish. She claimed they'd over-turned her baby's carriage and that 20 people witnessed the incident and refused to help. Police had become suspicious when none of the witnesses came forward to report the incident, and CCTV footage showed no-one matching the description of the youths getting off the train. US A-G Ashcroft has been launching an offensive on the Hill to garner support for the Patriot Act. A motion to modify the Act was only narrowly defeated earlier this m. While opponents say the Act infringes on Const'l rights, Ashcroft has been underlining alleged "success stories" among Congressional leaders. He says several terrorist cells in the US have been broken up, thanks the the legislation. The Bulgarian govt has confirmed a citizen held hostage in Iraq has been beheaded. A Cal-based think-tank says Canada could see the worst forest fires for 400 y this y. The Global Forest Research Inst says the coastal forests of BC has been drying out since 1996, with below-avg rainfalls. Because the coastal rain forests rarely see fires, fuel has been building up. In S Portugal fires have been burning for a wk. 160 firefighters are fighting at least 5 fires. A significant stretch of land has been burned so far, say the local governor. Police have opened an inquiry into the causes. 16,000 ha has been burned across Portugal since the start of the y. Last y, Portugal saw the worst fires since 1856. A new painting of Capt Cook has turned up. It's about to be auctioned in London. It was painted by crewman and shows Capt Cook about to hit a native on the head with his musket. It blows the myth Cook was speared by natives in Tahiti for no reason. 7.30 am A murder suicide in NSW has sparked calls for a review of gun laws. The gun-owner killed his wife and child before shooting himself. Last y he'd lost his firearm license after he tried to commit suicide. The license had been returned after a review. In Israel, Labour has backed a planned unity govt. Perez has dismissed claims Labour is helping buy Sharon the PM-ship after his govt lost a key ally. Perez told a Labour meeting in Tel Aviv there must be a bigger withdrawal from the W Bank. The Dow is up 9 pts at 10,248 on a mixed bag of earnings announcements. Traders are braced from more Q-ly earnings. After the bell, Intel reported higher earnings but fell short of market expectations. The Nasdaq closed down 5 pts. In London, the FTSE is down 2 pts. Gold is down a whopping $6.10 to $US402.30/oz. Aug NYMEX oil is down .05 to $US39.45/bbl. The AUD is trading at 72.50 US c. 7.45 am The Fed Govt has formally abandoned its plan to build a national rad waste dump in SA. It says each state must now build its own waste dumps. But the Fed Govt is looking around for a site to store its own so-called "low level" waste. [LLW is a catch-all term for anything that doesn't fall into HLW and MLW categories. LLW can be more active than HLW]. 90% of rad waste is owned by the Fed Govt. With marginal seats at stake, the govt has announced it will not build the dump in outback SA. Tony Blair has seen a preview of the Butler report. It's expected he will escape direct blame for the spin on the intel used to justify GWII. But Butler is expected to criticise Blair's relaxed style of govt, that allowed a too-close relationship between No 10 and heads of the intel agencies. [All predictions were accurate]. In Egypt, Hosni Mubarak has appointed a new 35-member cabinet. There are 14 new members, incl an economics reformer holding new post of Fin Min. Some members are closely linked to Mubarak's son, Gamal. The Dem party says it's dismayed at the proposed network coverage of its convention this m. The networks have scheduled 1 hr per night in prime time for the Boston Convention. So the Dems have turned to the Internet and cable TV. The NM Governor says the Networks' decision is "disappointing". CNN is planning extensive coverage of the convention. Cal is battling 2 large wild fires that have so far burned out 3,000 ha. 8 am David Hicks' defence team has arrived in Cuba. It's the first time they've met their client. The US military is going ahead with its military commissions, despite a ruling from the US Supreme Court. The Navy Sec is in Guatmo to oversee the start of a panel to hear challenges to the commissions. All inmates, incl the 2 Aussies, have been told they can take advantage of the process to challenge their detention. FLA authorities are hunting an escaped tiger. Police say they want to catch it before it gets hungry. The 6 yo animal escaped into dense scrub yesterday. "Bobo" has already roamed into at least one back yard. The tiger is owned by an actor who played Tarzan in the 90s. Residents are upset about being told to stay inside until the animal is tranked. You can't jail a whole town because of an escaped tiger, said one resident of W Palm Beach. 9 am The Philippines says it is "coordinating the pullout" of its forces in Iraq and has reduced the number of personnel there from 51 to 43 following militant threats to execute a Filipino truck driver. The US says the Philippines will "send the wrong signal to terrorists" if it withdraws its troops from Iraq in response to threats by Islamic militants to behead a Filipino truck-driver. Experts have warned that 50 mn children in Africa could be orphaned by AIDS by the end of the decade. Iraqi police pulled off their largest haul since the US-led invasion, netting more than 500 suspected murderers, kidnappers and thieves in a single day as part of a plan to clean up Baghdad's streets. PM John Howard says the Govt had little choice but to abandon plans for a nat'l radioactive waste dump because of obstruction from the states and territories. Protesters have staged a noisy demo during a speech by the head of a multinat'l drug company at the World AIDS Conference in Bangkok. The Govt organisation constructing SYD's new Lucas Heights research reactor says the decision to abandon the SA storage project will not be a setback for the reactor. The Qld Govt has rejected the Commonwealth's proposal for each state to handle its own nuclear waste. The US Ambassador to AUS, Tom Schieffer, has praised the elevation of Kim Beazley to Labor's front bench and welcomes new policy initiatives announced by Opp'n leader Mark Latham. Vic Health Min Bronwyn Pike says the Fed Govt has failed to provide leadership on the issue of disposing of nuclear waste. WA Prem Geoff Gallop says the Fed Govt is still looking for a site to store intermediate-level radioactive waste. Midday. Consumer confidence in AUS has hit 10 y highs. The NAB has issued another profit warning. It says investors should expected a 10-15% drop in its H2 earnings. The bank will maintain the 83 c per share div. After the announcement, the share price fell 1.78 to $29.20. The NAB makes up 5.5% of the All Ords index. The other major banks are also weaker. The All Ords is down 34 at 3,521 as a result of the NAB. 5 El Al jets have been attacked by missiles since 1983. 2 have been hit, with the loss of 170 passengers. Israeli is now getting close to installing anti-missile systems on all its passenger jets. Hot flares will draw heat seekers away from the plane's engines. The US is thinking of doing the same for its own commercial aircraft. Various systems are under consideration. One aims laser beams at incoming shoulder-launched missiles, sending them spiralling out of control. "Bobo" has been shot and killed by police in FLA. It had been on the loose for 2 days. Police say the animal attacked an officer, who had to defend himself with lethal force. There are 7,000 pet tigers in the US -- possibly more than roam the wild in Asia. 7 pm Anti-nuclear groups are calling on the Fed Govt to abandon plans to build a new nuclear plant in SYD after it abandoned plans for a central repository for nuclear waste. Elsewhere, the Govt has indicated it's discussing a plan to store waste at the Ranger uranium mine in Kakadu Nat'l Park. 8 pm The All Ords has fallen 31 pts. In Japan, the Nikkei closed down 252 pts. The Hang Seng fell 146 to 11,933. London is down 29 at 4,329. Local gold closed at $US403.55/oz. 9.30 pm Baghdad. 10 people have been killed and another 40 injured after a suicide bomb exploded in a crowded area. People were dropping off visitors at the Green Zone during early morning rush hr. PM Allawi visited the site and called it a "naked aggression against the Iraqi people". He suggested it was retaliation by "criminals" for a number of recent arrests. [Contradicting his usual claims that bombings are carried out by non-Iraqis]. CNN. News just coming in. Lord Robin Butler is giving a press conf. The Hutton report covered 1 aspect: the collection, assessment and use of intel. This report is wider. It examines and tells the story of the activities of the intel agencies in countries where things went better than they did in Iraq. When attacks are not forseen intel gets the blame. When it's a success, no-one gets to hear about them. The teamwork in the Brit system is the envy of many other countries. Teamwork is more important now than ever before. There is much more we could have told, except to damage on-going ops. For those reading quickly, there is a summary of conclusions. They should be read in the context of the sections to which they relate. The Iraq Survey Group went to Iraq to discover WMD, and it has not reported yet. Informally, we give our judgement of the likely outcome. We have not commented on the performance of intel agencies in other countries. We have prepared a report that is published in full, incl an unprecedented amount of intel material. There are no asterisks. We've avoided the phrase WMD, referring to the type of weapon in each case. Chap 1 describes the nature and use of intel, incl pitfalls. It's essential background for the other chapters. 2 & 3 are an account of material like the A Q Khan network, Iran, and NK. We believe these are credible and believable stories. There are 2 chapters on Iraq and the role of intel in the lead-up to GWII. Now to specific issues. In the period 1998-2002 the inspectors were no longer in Iraq. Intel was sparse. Following the departure some facilities were attacked through Op Desert Fox. There were containment ops. Against the background of continuing suspicions that internat'l will to retain sanctions was weakening in early 2002 the Brit govt re-assessed its focus on Iraq. It judged strong action -- not necessarily military -- was needed to force the disarmament of Iraq. At that time there was no new intel. The US saw an immediate need to act against Iraq. A breach of UN Resolutions provided a basis for action. For military action. The UNSC needed to be convinced of a breach to authorise action. Such evidence needed to be incontrovertible. During 2002 new intel came in, and Brit intel (JIC) judgements became firmer. But assessments remained "limited" on chem and bio weapons. A dossier was prepared. [The dossier was presented to parliament, and was the basis for many voting on whether to go to war against Iraq]. The PM announced on 3 Sep 2002 the govt would publish the "September dossier" in time for a Parl debate on Iraq. The dossier broke new ground. The JIC had never before produced a public document. The immed response was that it was cautious and even dull. But it was later contradicted by military findings. We publish as annexe 3 key JIC assessments preceding the dossier so that comparisons can be drawn as to whether the dossier reps the intel accurately. The govt wanted the dossier to draw action away from containment, to one of forcing Iraqi disarmament. In translating material to the dossier, warnings in the intel were lost. Warnings about the limited intel base on which some assessments were made. Language may have left readers with the impression there was fuller and firmer intel than was the case. That was a serious weakness and one not made sufficiently clear. In hindsight, making public the fact the JIC was the author was a mistake. It has the result that more weight was placed on intel than it could bare. It put the JIC into an area of public controversy. We must avoid this in future. We hope Mr Scarlett will not resign. It was a collective failure, not one he should bare sole resp. [NB GE:] As negative results from UN inspections became apparent in 2003, we were surprised there was no re-evaluation of Brit intel. The PM needed to be on strong factual grounds to believe Iraq had not complied with UN Res's. It was impossible to demonstrate hard evidence in relation to 1441. The PM took account of false statements and omission in Iraq statements, and its failure to co-operate. It is not for us to look at the legal merits of the A-G's opinion for the legality of the invasion. Doubts have arisen about the high proportion of human resources that underpinned the 2002 dossier. The details are in para 410-412. Why these problems have arisen. The overall problem was Iraq was a very difficult target, it was a closed and highly secretive society. Saddam had effective counter-intel and ghastly punishments for collaborators. The UK case against Iraq did not rely on emigree sources. The length of resourcing chains was a problem -- the Chinese whisper problem. People reporting outside usual areas. More reliance on untried agents. We conclude part of the problem resulted from the weaknesses of validation procedures, and their proper resourcing. The chief of intel ack's a shortage of experienced case officers following budget reduction in the 1990s. Organisational changes reduced the independence of those who validated human resources. Judgements were too influenced by past under-estimates and Iraq's past record. There was no evidence of deliberate distortion or culpable negligence, nor policy concerns of snr members of JIC. The JIC found no evidence of co-op between Iraq and al-Qaeda. The claims Iraqi sought uranium from Africa were well-founded. The bio and chem weapon deployment within 45 mins in the dossier is "unclear". The JIC should not have incl it in this form. The validity chain that produced this report is "doubtful". Mobile labs have been found in Iraq but they don't match the reports. The ones described by sources are not capable of producing bio agents. The aluminium tubes almost certainly were for rockets and not nukes. The JIC were right to allow for the possibly of nuke use. The reference to possible possession of plague agents was a result of too little intel. There was no evidence that the motive of the Brit govt was the security of future oil supplies. Chapter 7 lists general conclusions. We've found 1 error in our report. Weapons inspector Scott Ritter has provided info, but he's not incl in the list of witnesses. There will be no media interviews after this conf. There was some strain in the JIC about their requirement to produce a document meeting the govt's requirements, and the normal operation of the intel chain. There was a collective failure in the Cabinet, with key matters going undiscussed. Cabinet discussed matters on the basis of oral presentations, not written documents. That means members have no advanced warning of material. [GE:] After 2002 the intel thinned out. We are surprised that when so few of leads led to finds by UN weapons inspectors in Iraq the govt didn't re-assess the position. The govt was then relying on intel from other sources. It was silly to say the weapons were there, when whether they were there or not would established so soon after the war. Alistair Campbell is also not listed in the witnesses. It's not true that no other body found Iraq was seeking Uranium in Niger. The US Senate Committee says up to Sep 2002 that report was justified. That intel didn't rest on any forged documents. There were other sources, and it was a reasonable assessment. On the 45 mins claim -- that was an uncharacteristically poor piece of assessment. That was an exception. We took written evidence from Alistair Campbell. But no issues arose that hadn't been fully covered in the Hutton inquiry. The report makes it clear that the Mar 2002 meeting was not intel based, but based on much wider issues such as the US position and growing proliferation. The Brit govt decided a stand had to be made. The place to take the stand was in Iraq. Not necessarily the use of military force. An alternative was to increase enforcement and get inspectors back in. There is no evidence intel collectors were asked to make a particular case. We have no reason to believe the PM acted in anything except good faith. It would have been foolish to put into the dossier anything he knew to be untrue, that could be contradicted so soon after the war. [A different thing from "not known to be true" or "guessed to be true"]. There was a tendency for things that couldn't be accounted for to trigger a worst-case base case for the future. We do conclude Iraq had no stocks of weapons fit for deployment, or programs to develop them. We were not asked to address the case for war. That case rested on Iraq's non-compliance related to Res 1441. We found Iraq didn't pose a greater risk than some other countries. 10.15 pm The AUS govt has rejected claims it's dumped the nuke dump in SA because of considerations of marginal seats in the state. Opp'n leader Mark Latham says it's a purely political decision and the PM will reverse his decision after the election. I don't see it as cynical, said one Lib MP in an SA marginal seat. But she did conceded the decision improved her changes of re-election. David Kemp and Daryl Williams have been shuffled to the back benches for the last few m of this parl. The move was unexpected. Kemp said prev he wasn't stepping down. The Labor team suddenly looking stronger, with 2 lame ducks going into a poll. Parl Sec Chris Gallus is also resigning. The losses were a weight PM Howard was not prepared to carry. In MEL he announced the re-shuffle. The New Env Min will be Sen Ian Campbell, from WA. The govt needs to bolster up their reps there. Helen Coonan now takes on Comms. The changes are forward looking and maintain the continuity of the govt, said Howard. The changes to allow the 2 new Mins are almost all taking place with members from marginal seats. The PM wouldn't guarantee any of them would retain their jobs after an election. Mark Latham has called on the PM to clarify his own position. The AUS people had the right to know the PM's plans after the next election, said Latham. Will he see out the 3 y or hand over the PM Peter Costello. If the AUS people have the right to know about minor ministerial positions today, they have the right to know about the PM. Will they be voting for PM Costello, someone they don't want and wouldn't vote for. Dems leader Sen Bartlett says it's totally unprecedented to put new Mins into positions so late in a term of govt. It's a real sign the Howard Govt is running out of experience and is definitely not on track. It's a speed wobble just before an election. While Ian Campbell is experienced, he'll be Env Min in a govt that doesn't give priority to the environment, except in a couple of areas. All the new people from marginal seats will be concentrating on getting re-elected, and not in managing their new portfolios. 10.30 pm The Blair Govt and security services have been cleared of deliberately distortion GWII intel. But they have been criticised for not explaining the deficiencies in intel. But the govt had been under public pressure to provide info on the Iraq sit'n, says the Butler report. Blair is addressing the Commons. Iraq was trying to obtain nuclear and other materials and was developing long-range ballistic missiles in violation of its UN obligations. This is the 4th inquiry. They've all found the same thing. [Working shrinks or cops will know the following form as being one of concealment or diversion:] No-one lied; No-one made up the intel; No-one inserted material into the dossiers. [What was left out? Blair ignored the finding that caveats were left out, and that a lie can be one of deliberate omission or over-emphasis]. The issue of good faith should be at an end. We expected to find actual usable bio and chem weapons. We made contingency plans. Res 1441 in Nov 2002 passed unanimously by the Sec Council, incl Syria, on the basis Iraq had a WMD threat. I have to accept as the months have passed Saddam didn't have stockpiles ready to deploy at the time of GWII. In the light of what we know the evidence of Saddam's WMD was indeed less certain that was stated at the time. But I can't go from there to the opposite extreme. He retained strategic intent. The only reason inspectors were let back in was the 180,000 troops on his doorstep. There was no intention of co-operating, and he would start up again as soon as the troops departed or the sanctions eroded. If we backed down we would never have got the info from Libya. And it would have left Saddam in charge, and every dictator everywhere would be emboldened. [IOW, Blair has admitted he misled the Brit people about his reasons for going to war]. The report shows intel was right about Syria, Iran, and N Korea. The report also discloses the A Q Khan network. That's largely been shut down through Pakistan's co-operation and the dialogue with Libya. The intel assessment on OBL seeking WMD hardened over time. It was against this background that 9/11 should be considered. Following 9/11, the calculus of the WMD threat changed. After 9/11 is was time to take an active response. I was worried about the tide of creeping weapons proliferation. We had to close down states developing WMD, and the networks helping them. And the country we had to take a stand was Iraq. It was the country that used WMD most recently. By the 1990s, the threat was reduced. By the time inspectors were blocked in 1998, there were some WMD stocks hidden. And Iraq could have a bio, chem and ballistic missile capability within a y. This was the basis for military action. [Blair goes on to quote intel assessments that Iraq is working on WMD programs and could produced bio agents within days and chem agents within weeks and could deliver them by missile]. [Blair went on to highlight the sections of the Butler report that cleared him and the govt]. 11 pm BBC World Service. The program was devoted to the Butler Report. The war was based on seriously flawed intel reports, but no evidence of deliberate distortion. Moments after explosions in Baghdad, US choppers filled the air. Cars jammed the streets. Small arms fire broke out after the blast. Journalists were queued to enter at the time, that may have been a co-incidence. The final death toll is likely to be higher than 10. A Turkish court has declared the prison sentences of 4 Kurdish activists was invalid. A retrial has been ordered for the members of the PKK. They were jailed 4 y ago. French Pres Chirac said on TV voters should decide whether to accept the EU const'n in a mid-2005 poll. It's a risk for Chirac. He's asking France to back the EU at a time when his popularity is at record lows, and his govt's even lower. When France voted for the Maastricht treaty, it was carried only by 51% of the vote. Hans Blix is on the line. I think Mr Blair admits he was in a difficult choice on containment vs taking action. What we now know is containment had worked. The combination of sanctions and diplomatic pressure and inspections had prevented a reconstruction of the WMD programs. The link between al-Qaeda and Iraq has not been confirmed but, on the contrary, the report maintains there is no evidence. I think one could have continued with containment. He defends himself by saying he was acting in good faith. I never doubted that. [NB GE:] Butler says they felt the evidence should have been re-assessed in Jan and Dec due to info from UN inspectors. One of our major conclusions was we were more and more doubtful of the intel. They had given us sites to visit, and we found no WMD and -- in some sites -- nothing of interest at all. The evidence was starting to fall apart. The forgery of the yellow cake had fallen apart. And the aluminium tubes had also fallen apart. The re-assessment was very justified, and might well have come to different conclusions. I could not exclude the possibility that WMD existed -- proving the negative is very difficult. I said at the time I needed evidence. It would be paradoxical to march in with 200,000 men and find nothing. I said at the UN we had found no smoking gun and warned against construing that things not accounted for existed. My final report was 1 m before the US attack. We made it as loud as anyone could have expected from us. Saddam had undoubted intentions [to rebuild WMD programs] we hear. We have seen no evidence of that. He did not do that from the 90s to 1998 when inspectors were there. I think the blame should be shared between civil servants and politicians. There was no evidence they were ordered to produce a particular report. But they felt pressure this was what the politicians wanted to hear, and guarded themselves with caveats. The politicians put exclamation marks when they should have used question marks. It was like the witch hunts of past centuries. They were so convinced of WMD any evidence was believed. Mr Blair said in Parl they had to put a stop somewhere. Whether Iraq was the place to do that is questionable. An editor from the London-based al Quds said when a Brit MP has an affair with his secretary he resigns, but when a govt mistakenly takes a country to war, no-one resigns. Tony Blair has admitted he went to war for regime change and the intel was just used as a scapegoat. After the PM's speech, listener Jim Russell asked the BBC by email whether the Brit govt was now accountable for anything. 11.30 pm 30 Aussie soldiers have flown out of Darwin for duty guarding diplomats in Baghdad. The Bulgarian govt says it will keep its troops in Iraq, despite the beheading of one of its nationals, and an on-going hostage crisis involving another. PM Allawi has claimed he was behind the "45 mins" claim, but says he meant the 45 mins applied to weapons being turned against an uprising, not against foreign countries. }} ======================================== (*) Who is responcible for W.A.R.S? A small group of dedicated sandgrubbers, bannana-lickers and 5th columnists on the run from support payments and sundry legalese in their home countries. Mention us at any Uncle Harry's Suburban Bunker and get a 10% discount on cop-killers! Special deals for multiple posting aliases! 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