From the World-Wide Resourses of the Western Australia
Reserch Senter(*)
		OIL THE NEWS THAT FITS MY VIEWS   #224
                ===============================
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).

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US Centcom News Releases: <http://www.centcom.mil/CENTCOMNews/release_list.asp>
Iraqi Body Count: <http://www.iraqbodycount.net/> [11,132 as at 05 Jul 2004].
UN Mailing List: <http://www.kymhorsell.com/UN/>
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Selecting latest news stories and other data for you...
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If you want more of something, you reward it.
-- US Def Sec Donald Rumsfeld,  21 Jul 2004.
   The govt's of the US, Brit, and AUS apparently aim at more
   poorly-based decisions and intel failures.

The intel was thin, ambiguous, and incomplete.
-- Former Aussie intel chief Phil Flood, 22 Jul 2004.
   The official inquiry into selected Aussie spy agencies has found a
   failure to rigorously analyse the data available.  The inquiry's
   remit didn't include ASIO -- the govt is worried about
   investigating threat assessments.

Our intel agencies drew what conclusions they could and, on the whole,
they were cautious.
-- Phil Flood, 22 Jul 2004.
   The qualifications and caveats were removed somewhere in the
   political layer.

Based on this thin, ambiguous and incomplete intel... John Howard
decided to take us to war.
-- Aussie shadow FM Kevin Rudd, 22 Jul 2004.
   No, nat'l leaders have repeatedly indicated they would make the
   same decisions -- i.e. their decisions at the time were not based
   on the evidence.

As I said in all my speeches of the time... the importance of the
American alliance.
-- Aussie PM John Howard, 22 Jul 2004.
   After the Flood. The PM has falling given the only real reason AUS
   joined the Iraq invasion.  A DIO assessment before GWII said the
   Bush Admin had decided on an Iraq invasion regardless of intel assessments.

We will accept, without qualifications, the findings he's [Flood] made.
-- PM Howard, 22 Jul 2004.
   The govt has actually rejected at least 1 of the recommendations.

It's high time he [Howard] fixed the problem [in the intel agencies] up.
-- Kevin Rudd, 22 Jul 2004.
   Flood has pointed to decades of Aussie intel failures.

Arguments about the route of the barrier is not implementing the road-map.
-- Aussie political commentator and part-time FM Alex Downer, 22 Jul 2004.
   On a slow news day the Aussie FM reverted to rationalising
   Australia's vote in the UN Gen Ass'y.

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Thu, 22 Jul 2004.

	HEADLINES:
US death toll in Iraq reaches 900
Bomb attacks kill 8 in Iraq
2 militants killed in Saudi shoot-out
US Army asking Guardsmen to stay longer in Iraq
Reports of abused Iraqis rise
Straw faces fresh questions on Iraq
Russia dismisses talk of deploying troops to Iraq
Apes' anthrax deaths cause fears for humans
Malaysia ready to send medical team to Iraq, help in reconstruction
Iraqi militants "seize" 6 foreign hostages
Iraq's neighbours agree to share intel
Iraq weapons intel 'ambiguous'
Bush, Rumanian leader discuss Iraq
Bush approves arms sales to Iraq
9/11 Panel blames 'institutional failings'
APEC to consider anti-aircraft missile export controls
ATO cracks down on DIY super funds
Afghanistan still highest priority -- NATO cmdr
Albania's Aussie queen laid to rest
Bailed boxer to compete in Athens
Canada's new Farm Min takes on mad cow crisis
Canadian PM pledges to decriminalise marijuana
Costello tips Sep, Oct election
Court told Bakhtiyari boys should live freely in AUS
David Jones shares jump after profit increase
Defence probe possible radioactive contamination
Downer urged to focus on job, not ALP
EU freezes #83m aid to 'corrupt' Kenya
Former white supremacist leader denies Perth attacks
Govt considering armed guards for athletes
Govt criticised for W Bank barrier vote
Govt cuts level of sulphur in petrol
Greenpeace hails company pullout
Gunns accused of embarking on 'land grab'
Hoon announces sweeping defence cuts
India hopes to win hostages' release
Kenya to crack down on corruption
Labor to revisit E Timor gas deal
Latham to enforce fair pricing for dairy farmers
Libya goes from pariah to belle of the oil ball
Missing plane found crashed
Mitsubishi cuts 1,200 US workers
No Aussie armed guards for Olympic athletes
No foreign armed guards for athletes: Greece
Norwegians under fire for whaling plan
Parliament urges Arafat to accept PM's resignation
Review launched into ASX website security glitch
Rumsfeld wants NATO Games security
Samarra is hotbed to insurgents
Search takes off for missing plane
Shell Canada disputes $100 mn figure in suit involving Quebec drivers
South Korea strikes spread to subway
Students forgo US visits
Sudan militia still attack, UN sanctions unlikely
Teen refused bail after allegedly sexually assaulting boy
Teenager charged with sexually assaulting boy
Tobacco company fined for destroying documents
US 'war on terrorism' faces $US12 bn cost blow-out
US Stocks tumble as investors dump techs
US commits 400 special forces for games
US pressing for action against Iran
US stocks fall after early rally
Vic police swim the English Channel twice
Video shows Sep 11 hijackers breaching security
Whaling resolution hailed as victory for animal welfare
Woman hopes photo sheds light on outback mystery


Libya goes from pariah to belle of the oil ball
Op/Ed (IHT).  Is Libya the new Iraq? When Petroleum Intel Weekly, an
influential energy industry newsletter, posed that question recently
in a comparison of investment opportunities in both countries, the
answer was clear.
Many multinat'l oil companies, previously enamoured of Iraq, have
shifted their focus in the nr term to Libya now that it is shedding
its pariah status and their frustrations have increased in Iraq amid
growing security fears and uncertainty over that country's investment climate.
Despite the wariness that persists over Libya in some diplomatic
quarters, the Bush Admin's recent easing of restrictions on doing
business with Libya has touched off a frenetic race among energy
companies eager to re-enter a nation that once produced oil gushers
for US companies but has been off limits to them for 2 decades.
A vanguard of American lawyers, bankers and consultants, many of them
based in Houston, has travelled to Tripoli in recent wk to evaluate
Libyan opportunities. Many of these visitors are focused on
expectations that Libya plans to offer as many as 11 new oil
exploration blocks this m to foreign companies, in the 1st opening of
the nation's oil fields available to Americans since the early 1980s.
"The risks of entering Libya now are relatively low, in terms of
politics and getting to the oil," said Stephen Davis, co-head of the
Middle E and N Africa section of Vinson Elkins, a Houston law firm
that is handling much of its Libya business through a new office in
Dubai. "There's really nothing quite like it, since the terrain is
already familiar to many American companies."
The reason for the attraction is simple: Libya produces about 1.5 mn
barrels of oil a day but would be able to double that in a decade with
large infusions of American investment and the introduction of new
drilling technologies, according to industry executives and
analysts. In the halcyon days of Libya's oil industry in the early
1970s, before a long, slow decay set in after the nat'lization of many
oil operations in the country, Libya produced 3.3 mn barrels a day
without much difficulty.
Speaking at an oil industry conference in Houston in May, Tarek
Hassan-Beck, director of planning at the Nat'l Oil Company of Libya,
emphasised that the country had about 36 bn barrels of known oil reserves,
accounting for about 3% of the world's total, but that only 25% had
been explored. And Libya also has plentiful reserves of natural gas.
Important obstacles remain, of course, before Libya completely comes
in from the cold. No airlines from the US are yet permitted to fly to
Tripoli, Libya's capital, and strict limits remain in place that
prevent Libya from accessing funds frozen in American bank accounts
and acquiring military equipment from American companies. American
investors are also waiting for greater clarity on whether Libya will
enforce a rule requiring them to a certify they do not do business with
Israel; meeting with such a request would be illegal for American companies.
Still, the legacy of American involvement in Libya's oil industry has
enhanced the interest of some companies. Snr executives of companies
that once considered Libya their lifeblood, like Occidental Petroleum,
ConocoPhillips, Amerada Hess and Marathon Oil, have all travelled to
Tripoli recently to negotiate a return to oil fields that were once
among the world's most prolific before falling into relative disrepair.
Their larger competitors, including Exxon Mobil and ChevronTexaco, are
also signalling a re-engagement with Libya. Exxon Mobil, for instance,
reached a deal this m to sell its fuel distribution business in Niger,
one of Libya's landlocked sub-Saharan neighbours, to Tam Oil, the
internat'l investment arm of Libya's nat'l oil company. The deal, the
1st of its kind for an American company since most sanctions were
lifted last spring, was indicative of a thaw in commercial relations.
The motivation for kick-starting Libyan energy ventures is clear. With
oil prices expected to remain at elevated levels for several years,
the only large oil producer other than Libya with the capability of
doubling oil production over the next decade is Iraq.
While Iraq's oil reserves of 112 bn barrels are triple Libya's,
security concerns in Iraq have seriously limited the efforts of large
American and other internat'l oil companies seeking to grow operations
in that country.
Another reason for the interest in Libya is that the crude oil
produced there is low in sulfur, and thus is relatively easy and cheap
to refine for consumption in the US and Europe. And Libya's location
on the Mediterranean, providing smooth access to S Europe and the US,
avoids the security pitfalls of transporting oil through more delicate
areas like the Strait of Hormuz in the Gulf region.
"While Iraq remains a wait-and-see game, Libya has quickly moved to
the fore as a place to invest and explore," said Daniel Yergin, the
chairman of Cambridge Energy Research Associates, after returning from
a trip to Tripoli this m.  "At a time when the energy industry is very
sensitive to geopolitical risk, that's no easy feat."
Libya is considered the second-most-important exploration prospect in
the world this y, out-ranked only by Brit with its large fields in the
N Sea, according to a list compiled in May by Fugro Robertson, a Brit
energy consulting firm.
Libya ranked ahead of Iraq, Trinidad and Tobago, Algeria and Egypt.
Libyan officials have wasted little time in attempting to lure new
American energy investments. Hassan-Beck, the director of planning at
Nat'l Oil Co of Libya, estimated that Libya would need about $30 bn in
new investments over the next 10 y.
European, Canadian, Indian, Chinese and Aussie companies have been
investing consistently in Libya during the last 2 decades, and
especially in the last 5 y or so, while their American competitors
were shut off from the country. Many of these projects are providing
or are about to provide a steady stream of oil and natural gas exports
from Libya to markets in Europe and in particular to Italy, a legacy
of the colonial period when Italy held sway over Libya's affairs.
For instance, Libya soon expects to start exporting natural gas to
Italy through a pipeline under the Mediterranean to SE Sicily, in a
$5.6 bn venture with ENI of Italy. The output from smaller oil
exploration projects involving Repsol of Spain, Total of France, OMV
of Austria and ONCG Videsh of India are also letting Libya benefit
from high oil prices, lifting oil export revenue to $13.4 bn in 2003
from $5.9 bn in 1998. Libya's oil revenue is expected to be even
higher this y.
Increasing oil revenue and the easing of sanctions are also alluring
for companies that provide oil-field services or oil-industry
equipment, since American companies are considered leaders in advanced
oil and gas recovery technologies, many of which they have under
patent, according to a recent report on Libya by the Energy Info Admin.
Energy is not the only area American companies are interested in as
they weigh re-entering Libya, though the focus is overwhelmingly on
oil and gas because the economy still depends on oil exports for 95%
of its hard currency.  Ventures seeking to open business-class hotels
and to sell medical equipment in Libya are also said to be under
way. In addition, although limits remain in place preventing sales of
military equipment to Libya, military contractors are evaluating
potential contracts in Libya.
"It's one of the only large, nonaligned countries with lots of hard
cash that hasn't been able to buy American for a long time," said
Richard Aboulafia, an analyst with the Teal Group, a defence
consulting firm in Fairfax, Virginia.
Aboulafia said an important test of Libya's potential as a market for
American defence companies will be whether the Bush Admin lets Libya
take delivery of 8 C-130 Hercules aircraft that have been parked on a
runway at Dobbins Air Reserve Base in Marietta, Georgia, for more than
2 decades. Libya was not allowed to receive the planes, which were
purchased during the 1970s, after being placed on the State Dept's
list of countries that support terrorism.
Peter Simmons, a rep for Lockheed Martin, which sold the planes to
Libya, said the company had no indication of whether Libya would
eventually be allowed to take delivery of the aircraft. "They remain
parked there at the end of the runway," Simmons said.

US Stocks tumble as investors dump techs
NY (Reuters).  Stocks tumbled on Wed, with technology shares leading
the retreat, as fears about slowing growth in corporate profits
overshadowed favourable news from Motorola Inc and Microsoft Corp.
The technology-dominated Nasdaq, which had rallied on Tue, fell more
than 2%, recording its biggest one-day%age loss in more than 4 m and
its lowest close in 9 m.
After the closing bell, eBay Inc shares fell to $72.47 on the INET
electronic brokerage system from a Nasdaq close at $76.60 after the
online marketplace gave a full-y earnings forecast that was below Wall
Street's average estimate. That disappointment spilled over after
hours onto the shares of Internet retailer Amazon.com Inc, which
reports earnings on Thu after the close, and hit the stock of Internet
company Yahoo Inc as well.
In contrast, the stock of Qualcomm Inc shot up to $68.05 after hours
from a Nasdaq close of $67.68 after the wireless technology company
reported its profit rose on strong global demand for advanced cell phones.
During the regular session, solid results from conglomerate United
Technologies Corp and others held up the blue-chip DJIA for much of
the day. But the Dow fell into negative territory in a late-day flurry
of selling.
"The problem is that so many people are expecting that technology
performance can't go up from here," said Brian Pears, head of equity
trading at Victory Capital Management. He said the sector's strength
in the 2nd half of 2003 will make year-over-y improvement in the m
ahead difficult.
Microsoft rose a day after it said it would return more than $75 bn in
cash to shareholders over the next 4 y but ended well below the day's high.
The technology-laced Nasdaq fell 42.70 points, or 2.23%, to 1,874.37,
its lowest close since Oct.  24, 2003. It posted its biggest%age loss
since Mar 15.
The DJIA fell 102.94 points, or 1.01%, to 10,046.13, its lowest close
since May 24. The Standard & Poor's 500 Index fell 14.79 points, or
1.33%, to 1,093.88, its lowest close since May 21.
Trading was heavy, with about 1.7 bn shares traded on the NYSE and 2.1
bn shares on the Nasdaq.
Motorola's shares fell more than 7%, or $1.22, to $14.87. The company
reported its 2nd straight quarter of strong results on Tue, but with
price competition from its rivals growing increasingly fierce,
investors are questioning the sustainability of its growth.
"People are thinking of Motorola as having peaked," said Bernstein &
Co analyst Paul Sagaw, who has an "under-perform" rating on the stock.
Fed Reserve Chairman Alan Greenspan repeated to a House committee what
he told a Senate panel a day earlier that the economy was in a
self-sustaining expansion and was generating price increases, but they
were not enough to threaten the economy.
United Technologies gave a lift to the blue-chip Dow after posting a
32% rise in quarterly earnings, climbing 2%, or $2.10, to $92.67.
No 2 US bank J.P. Morgan, which recently purchased Bank One, also
boosted the Dow. The company reported a quarterly loss after setting
aside an additional $2.3 bn for legal costs, but an analyst said the
company's stock got a boost on relief that the loss was not larger. It
rose 1%, or 42 cents, to $36.82.
Cellular phone company Nextel Communications Inc helped pull the
Nasdaq lower as investors worried the company's tax rate would
increase this y, analysts said. The stock fell $1.54, or 6%, to $24.46.
Mercury Interactive Corp, whose software helps companies test and improve
technology, posted lower quarterly earnings and forecast that profit
for the current quarter could be lower than what Wall Street expected.
It fell $4.80, or 11%, to $37.93, weighing on the Nasdaq.
Genetic research company Invitrogen Corp lowered its revenue outlook
due to increased competition, sending its shares plummeting, as the
maker of kits for genetic research posted a higher quarterly
profit. It was down $14.99, or 23%, to $51.16.
Microsoft said after Tue's close it planned to buy back its own stock,
double its dividend and issue a special one-time dividend.
Shares of Microsoft, the world's largest software maker, gained 54
cents, or 2%, to $28.86, after climbing as high as $29.89.
About 188 mn Microsoft shares changed hands on the Nasdaq, surpassing
the 30-day average daily volume of 71.5 mn shares.

US stocks fall after early rally
Speculators worrying about corporate profits.
NY/Sydney.  There has been an attack of the jitters on Wall Street.
An early rally has come to a sudden halt and stock prices have
subsequently fallen sharply.
The early gains represented follow-through buying after Fed Reserve
chief Alan Greenspan's upbeat economic assessment.
After the previous day's Senate appearance, the central bank chairman
has fronted a House of Representatives committee repeating that the
American economy is in a self-sustaining expansion with no threat from
rising prices.
On the corporate front, Microsoft has been a positive influence on the
market, a day after promising to return more than $US75 bn in cash to
shareholders over the next 4 y.
But US investors appear worried that companies generally will not be
able to sustain their current profit performance and they have
offloaded shares in the back end of the latest trading session.
On the NYSE, the DJIA has swung in a 190-point range.
It has closed 103-points lower at 10,046.
That is a slide of 1%.
Prices on the high-tech Nasdaq market are down 2.2%.
The Nasdaq composite index has plunged 43-points to 1,874.
There has been a further solid rise in prices on the Brit share market.
UK investors have responded positively to the Greenspan testimony and
some encouraging profit reports.
London's FT-100 index has jumped 38-points to finish at 4,377.
The Aussie market yesterday staged a reasonable recovery.
The banks bounced back on some bargain-hunting.
And Origin Energy shares surged 6% to $6.14 on its deal to take a
controlling stake in NZ power company, Contact Energy.
The All Ordinaries index gained 21-points to end the day at 3,528.
On foreign exchange markets, the Greenspan commentary has continued
fuel gains in the US dollar, with the markets anticipating rising
American interest rates.
As a consequence, the Aussie currency has fallen out of bed dropping
more than one cent to 71.54 US cents this morning.
On the cross-rates, it is at 0.5836 euros; 78.93 Japanese yen; 38.85
pence sterling; and against the NZ dollar it is at 1.116.
The gold price is at $US397.25/oz.
West Texas crude oil is trading at about $US40.63/bbl.

Mitsubishi cuts 1,200 US workers
Normal, IL (AP).  Mitsubishi Motors will lay off 1,200 workers at its only
US plant, trimming car production as part of a worldwide revival plan
the automaker hopes will pare mounting debts, the company announced.
The Japanese automaker, battling losses from bad credit and recall
scandals, said production would be cut from 2 shifts to one in Oct at
the Normal plant, which now has more than 3,100 workers.
"This was a very difficult decision, but we believe it is necessary
for the long-term success of the company," said Rich Gilligan, Pres of
Mitsubishi Motor N America's Manufacturing Division, in a statement.
Local officials said the layoffs would be a blow, but predicted they
could be absorbed by a diverse economy.
"This problem stems from something internal and we are unable to
control what happens overseas in this case. We're just hoping that
Mitsubishi can get back on its feet," said Marty Vanags, executive
director of the Economic Development Council of the Bloomington-Normal Area.
Rumours of job cuts have swirled at the plant since May, when
Mitsubishi announced a reorganisation plan to pare a $9 bn debt fuelled
by bad credit and recall scandals.
Worldwide, the plan will slice nearly 11,000 jobs over 3 y -- nearly a
quarter of Mitsubishi's global work force -- and close plants in Japan
and AUS.
The reorganisation plan, which chief executive officer Yoichiro
Okazaki called "our last chance to survive as an automaker", includes
a $4 bn infusion from its parent company and other investors.
Mitsubishi's sales have plunged amid recall scandals in Japan and a 0%
financing strategy in the US that backfired when many borrowers
defaulted on their payments. US sales were down nearly 27% for the 1st
6 m of 2004.
Production has dipped more than 22% through Jun at the Normal
plant. Mitsubishi's deal to build cars for partner DaimlerChrysler
expires in 2005 and will not be renewed, according to the companies.
The Normal plant built 53,174 cars during the first half of 2004, down
from 68,537 during the same period a y ago, the company reported.
Mitsubishi has trimmed its production and workforce and halted a
planned expansion project since once-rising sales began to dip in
mid-2003.
Layoffs -- the 1st at the plant since 1999 -- cut 52 non-union jobs
and 225 union positions earlier this y. The company also put a $200 mn
expansion project on hold last y.

Canada's new Farm Min takes on mad cow crisis
Winnipeg, Manitoba (Reuters).  Canada's new agriculture minister said
on Wed he will meet with beef industry players this wk to see how the
govt can help them recover from unprecedented losses from mad cow disease.
Andy Mitchell, who was named agriculture minister on Tue, said he
hopes to find "innovative" ways to deal with mad cow trade issues, but
offered no specifics.
"I'm not going to start with anything off the table," Mitchell told
Reuters in an interview. "We'll deal with all the ideas and work
together as to the best approach to take."
Canadian ranchers, feedlots and their suppliers have lost bn of
dollars since the country was hit with trade bans after finding its
1st home-grown case of mad cow disease 14 m ago.
The industry had relied on exporting more than 60% of its cattle and
beef, but now grapples to find slaughter space and markets.
Farmers have amassed a record herd of cattle, assuming a US ban on
young, live cattle would end quickly.
But with no end to the problem in sight, farmers are now calling for
govt help to build and expand slaughterhouses as well as more
financial aid.
"I think we need to take a close look at what the appropriate role for
govt should be" in adding to Canadian slaughter capacity, Mitchell said.
Mitchell planned to phone his US and Mexican counterparts on Wed to
discuss beef trade issues, and hopes to meet with Ann Veneman and
Javier Usabiaga soon.
First, he planned to travel to Calgary to meet with an industry group
on Thu or Fri.
Mitchell, 51, had been Indian and N Affairs minister since last Dec, an
often raucous cabinet portfolio that he managed to keep out of the headlines.
Previously, he was a junior minister responsible for rural development.
Before entering politics in 1993, he was a small-town bank manager in
Ontario.
Mitchell said he wants to emulate the consultative style of Bob
Speller, the popular agriculture minister who was defeated in Canada's
election last m.
"It's not good enough to simply be sitting in Ottawa and to develop
policies based on briefing notes," Mitchell said.
"You've got to get out there, you've got to meet with folks on the
ground, talk to them about real problems, everyday problems, the
challenges that they're facing, and make sure you develop responses
and policies that are actually going to deal with the issues," he said.

Shell Canada disputes $100 mn figure in suit involving Quebec drivers
Montreal (CP).  Shell Canada is disputing a published report it might
have to pay up to $100 mn to about 500,000 Quebec drivers after an
out-of-court settlement between the company and lawyers for motorists.
A Montreal newspaper reported Wed the agreement could cost Shell $100
mn and is related to a fuel additive the company used in 2001 and
2002. Gordon Kugler, a lawyer who worked for plaintiffs in the suit,
said court proceedings were launched because the additive left a
residue in gas tanks.
The company acknowledged that Quebec Superior Court approved the
settlement Jul 12 but said it does not expect to pay anywhere nr $100 mn.
"What we feel is that based on the problem and the voluntary
compensation program that we had put in place in 2002 for motorists,
we believe that the number of claimants will be relatively small," rep
Sonia Larin said in an interview.
Larin said it is difficult to say how many people are involved in the
class action because there is a 90-day claim period, which ends Nov 5.
She noted a class action lawsuit involving the same issue for
claimants outside Quebec closed last May 7 and was settled with 500
people receiving a total of $86,000 so far.
Shell also had a voluntary program that compensated some 14,000 people
in 2002, including 4,000 in Quebec, and cost the company between $5 mn
and $6 mn.
Kugler called the recent Quebec deal "extraordinary" because so many
people can receive compensation.
He said the Quebec settlement is better than others reached elsewhere
in Canada because the others provided for compensation only in cases
where repairs to the vehicle were needed.
"Anyone who bought Shell gas between Mar 2001 and Oct 2002 [is
eligible]," Kugler said in an interview. "We estimate there are
500,000 people who bought Shell gas during this period."
Le Journal said the average amount to be awarded will be about $200 but
will vary between $20 and about $450 for inspections, cleaning and repairs.
But Kugler said it isn't entirely accurate to talk about an average.
"It [$200] may be exact but it is misleading because you shouldn't
talk about an average price.
"Those who had functional problems and needed repairs, Shell will pay
for that -- and that might be $500, $600.
"For those who didn't have functional problems but who want their gas
tank inspected and cleaned, it will cost $150 or $200, and Shell will
pay for that.
"Those who don't want to do anything but just want a gas voucher, they
will fill out a form and will receive between $20 and $70, depending
on the car in question."
Kugler said consumers won't have to provide receipts but will have to
make a solemn declaration stating they bought gas at a Shell station.
In Jan, Shell announced it would compensate Canada-wide motorists
whose fuel pumps or gauges were gummed up by the gasoline additive
which provoked class-action lawsuits.
The class actions were filed by plaintiffs in Brit Columbia and Ontario,
but Shell said the settlement applied in all provinces except Quebec,
where the suit proceeded separately.
Justice Benoit Emery approved the Quebec settlement, details of which
will appear in major newspapers on Jul 31 and Aug 7.

Sudan militia still attack, UN sanctions unlikely
UN (Reuters).  Sec-Gen Kofi Annan said on Wed Sudan had made little
progress in curbing bloodthirsty militias in the Darfur region but
diplomats said sanctions against Khartoum were unlikely.
Annan spoke as his special representative for Darfur, Dutchman Jan
Pronk, briefed the 15-member Sec Council on reports that Arab militia,
called Janjaweed, were continuing to terrorise African villagers in
Sudan's west.
The 15-m conflict has killed at least 30,000 people, forced villagers
into concentration-camp type compounds and left 2 mn people without
enough food and medicine.
"There have been encouraging steps on the humanitarian front," Annan
said at a news conference. "But there has been little progress on
human rights and I regret to say there are continuing reports of
attacks by the Janjaweed militia."
Sudan, in an agreement with Annan 2 wk ago, pledged to protect
displaced civilians, disarm the Janjaweed and other armed groups,
suspend visa and travel restrictions on relief workers, allow African
Union human rights monitors and punish those responsible for atrocities.
Pronk, who is part of a monitoring system for Darfur, was blunt,
saying there was "no progress whatsoever as far as the security of the
people themselves is concerned."
But Annan said he could not predict how long Sudan would have before
the UN Sec Council took concrete action or here would deem that Sudan
had failed to cooperate.
"It's going to be a judgement call rather than an artificial deadline
but the urgency is there and the Sudanese govt doesn't have forever,"
he said.
* POWELL AND ANNAN MEET
Sec of State Colin Powell intends to visit Annan in NY on Thu to
discuss Darfur. "It's time to get together now to look very carefully
at the situation," State Dept rep Richard Boucher said.
The US is expected to push for a stronger resolution than its original
draft in hopes Powell can focus attention on the govt's failings, a
snr State Dept official said.
"The info we have is that the situation in Darfur is not getting
better, it's getting worse," US Ambassador John Danforth told
reporters. "The govt has not acted to disarm the Janjaweed."
One problem is strong lobbying by the Arab League and others against
any kind of sanctions.
Brit Ambassador Emyr Jones Parry, who along with Germany and France,
wants an immediate arms embargo on Sudan, said the council was not
considering other sanctions. Diplomats said Russia, China, Pakistan
and others opposed the arms ban.
Even if a country like the US were willing to send troops to protect
civilians and disburse food and medicine, like it did in Somalia in
late 1992, the war in Iraq would make approval doubtful.
"We are still dealing with Iraq. We are not out of Iraq yet," Annan said.
"Any discussion of intervention in Sudan would be looked at very
carefully by govts and I am not sure how quickly and how enthusiastically
one would get support for that initiative. We have to be very clear on
that," Annan said.
So far Sudan has sent 3,000 police to Darfur, allowed in monitors and
eased most restrictions on aid groups. But Khartoum is known to have
used its planes and helicopters to help the Janjaweed. Pronk said the
police were not yet "having an impact on the ground.

EU freezes #83m aid to 'corrupt' Kenya
Our man in hot water: colourful attack on Kenyan corruption starts
diplomatic row.
Nairobi (Guardian).  The European Union yesterday said it had frozen
mn of pounds worth of aid to Kenya because of concerns about
corruption, as fears grew that sleaze was engulfing the E African country.
The withholding of an #83m grant, meant to boost the Kenyan economy,
follows the robust attack on corruption by the Brit high commissioner,
Edward Clay, who accused the govt of Pres Mwai Kibaki of "arrogance, greed
and perhaps a desperate sense of panic, to lead them to eat like gluttons".
Mr Clay hinted that donors might withhold aid because of corruption.
"They can hardly expect us not to care when their gluttony causes them
to vomit all over our shoes," he told a business lunch last wk.
The EU aid has been frozen because of concerns over the Anglo Leasing
"affair", which involved a #20m passport computer system.
The EU grant was to have channelled funds directly into Kenyan govt coffers
for general spending. Such funding, known as budget support, is regarded
as vulnerable to corruption and other donors also keep back aid.
But other EU aid linked directly to specific projects will continue.
Gary Quince, the EU's head of delegation in Kenya, said a decision on
whether to grant the budget support cash had been deferred until Sep
because of "concern at the prevailing governance situation in Kenya,
particularly the Anglo Leasing affair".
The high commissioner's criticism has prompted other foreign donors to
increase pressure on Kenya, which is counting on foreign aid to
provide 11.5% of its budget over the next 12 m, a #344m subsidy.
Hilde Johnson, Norway's internat'l development minister, said
recently: "The eyes of the internat'l community, and especially the
donor community, are focused on Kenya for clear signs the govt is
stepping up efforts to end corruption."
The US, whose ambassador has also issued a warning about corruption,
is Kenya's biggest donor country, contributing #56m in 2002, the last
y for which figures are available. Brit gave #29m that year, and
Germany #15m.
The Kenyan president also came under attack from a committee set up to
educate the public about fighting sleaze. Mutava Musyimi, who leads
the nat'l anti-corruption campaign steering committee, said: "The
president has to be seen to lead in this fight by putting a stop to
the menace of grand corruption. [He] must take decisive action on snr
civil servants and ministers implicated in corrupt practices."
The Brit high commissioner expressed anger and dismay last wk over the
resurgence of corruption in evidence since the Kibaki govt came to
power in 2002 promising to end the kleptocracy that had disfigured
Kenya under Daniel arap Moi. Mr Clay said that in its 1st 19 m of Pres
Kibaki's rule officials of the Admin had stolen public funds that
could have built 15,000 classrooms.
His remarks provoked a diplomatic row between the 2 countries, as the
Kenyan foreign minister, Ali Mwakwere, demanded "facts and figures,
names, deals" to back up the accusations. Mr Clay declined this
request -- and Brit officials suggested it was the Kenyan govt's
responsibility to investigate its own corruption -- but offered a
florid apology the next day.
He said his colourful language had been intended to highlight a
serious point "like the skin of a fruit or a nut". He said: "The fruit
wants to draw attention to itself and invite people to peel it and
then look at the inside and see whether it's good to eat."
As Kenyan ministers expressed outrage at Mr Clay's remarks, the
country's dependence on overseas funds was illustrated as the govt
appealed for 156,000 t of food, costing #51m, to avert famine. About
3.3 mn people in Kenya are estimated to be suffering food shortages.
The Kenyan govt won acclaim for its crackdown on corruption in the
police and judiciary, as well as for its efforts to make primary
education free for all. But disenchantment grew over the passports
scandal: Anglo Leasing and Finance had been paid a "commitment fee" of
more than #600,000 for what the govt's auditor termed an "unsolicited
proposal" to finance a new passport computer system for Kenya.
The company, also criticised by Mr Clay, has denied any wrongdoing and
has reportedly repaid the commitment fee. 4 govt officials have been
suspended in connection with the scandal.

Kenya to crack down on corruption
Pres Kibaki came to power on an anti-corruption ticket
Nairobi (BBC).  Kenyan Pres Mwai Kibaki has announced the creation of
a nat'l committee to fight corruption.
The move follows a decision by the European Union to withhold aid to
Kenya because of corruption concerns.
Last wk, the Brit high commissioner accused some members of the
Kenyan govt of devouring money like gluttons.
The chairman of the new Kenyan watchdog said the president must take
action against corrupt officials.
"One action from you is more than a thousand posters from us," Mutava
Musyimi of the Nat'l Anti-Corruption Steering Committee said at a
press conference in Nairobi on Wed.
* 'Disappointed'
The main task of the body is educate Kenyans about the need to fight
corruption.
The president acknowledged that fighting corruption was difficult
because people may have to make sure their friends are not stealing.
Mr Kibaki won a landslide victory in the Dec 2002 elections with a
pledge to fight widespread corruption.
He has come in for criticism from the internat'l community for his
govt's record on the issue.
In the latest attack, the EU said in a letter to the Kenyan govt on
Wed that it was especially disappointed by the way the govt was
handling a passport tender affair.
According to the BBC's Caroline Karobia in Nairobi, a shadowy company
won the tender to supply new secure passports, but the owners of the
company have never been traced.
The EU had promised vital funding for the country's dilapidated
infrastructure, and to help to bridge a huge budget deficit.

Iraq weapons intel 'ambiguous'
Aussie PM John Howard has released the recommendations of the Flood report.
Canberra.  An inquiry into AUS's spy agencies has found that intel on
Iraq's WMD was "thin, ambiguous and incomplete".
PM John Howard says the report finds AUS's spy agencies are performing
well but the Opp'n says it proves the Govt took AUS to war in Iraq on
faulty intel.
Mr Howard has released the unclassified version of the report by
former diplomat and intel chief Philip Flood.
The report raises concerns about intel on weapons of mass destruction
before the Iraq war and says the agencies failed to rigorously assess them.
Mr Flood partly blames systemic weaknesses in spy agencies.
Cabinet considered the report on Mon and has agreed to all of its key
recommendations.
* Responsibility
The Govt cited WMD as a major reason for AUS going to war in Iraq and
Mr Howard says he does not regret his decision to go to war.
"The world and the Middle E and Iraq are better places because Saddam
Hussein has gone," he said.
But the Opp'n's rep on foreign affairs, Kevin Rudd, says the PM is
trying to duck the blame for taking AUS to war based on a lie.
He says the Govt is assigning "100% responsibility for intel failure
to the intel communities themselves and 0% responsibility for Mr
Howard's Govt".
Mr Howard says the report clears his Govt of interfering in intel gathering.
"The inquiry has found no evidence of politicisation of the
assessments on Iraq, either overtly or perceived," Mr Howard said.
"We did not heavy the intel agencies, we never did," he added.
* ONA funding
But Mr Rudd says that is not the finding of a previous inquiry into
the issue.
"Policy influence can be very subtle," Mr Rudd said. "Political
influence can be very subtle."
In response to the report, the Govt will nearly double the funding to
one body, the Office of Nat'l Assessments (ONA). Staff numbers at the
agency will also double.
Some activities will be transferred from the Dept of Foreign Affairs
to the ONA.
However, the Govt has rejected the report's suggestion that it should
change the body's name.
The report also finds Aussie intel agencies should have known more
about the Indonesian terrorist group Jemaah Islamiah (JI) which was
responsible for the Bali bombings.
But Mr Howard says the report does not say any agency had any specific
warnings of the Bali attack.
[One reason -- Flood did not investigate the role of ASIO -- the
agency responsible for making threat assessments].

Straw faces fresh questions on Iraq
London (Guardian).  Downing Street was last night facing fresh
pressure on Iraq as a cross-party committee of MPs wrote to Jack Straw
to ask why he had failed to tell them that a crucial piece of intel
had been withdrawn by MI6.
Min'ial hopes that Iraq might be slipping off the political agenda
after Tony Blair triumphed over Michael Howard in a Commons debate on
Tue were dashed as the foreign affairs select committee decided to
re-examine Iraq.
Donald Anderson, the Labour chairman of the committee, last night
wrote to Mr Straw, the foreign secretary, to ask him about the
disclosure in Lord Butler's report that MI6 had withdrawn a key piece
of intel last Jul.
Critics have seized on the disclosure because the intel had
contributed to the unequivocal language used in the Downing Street
arms dossier of Sep 2002.
Mr Anderson was expected to ask why Mr Straw had not informed MPs on
his committee about the withdrawal of the evidence, which he was told
about last Sep. The PM claimed he only learned about the change during
the Butler inquiry.
Tory MPs on the committee could call for Mr Straw to appear in person.
Conservative members of the committee and one Liberal Democrat have
intensified the pressure on him by winning a vote to order a close
examination of his private evidence to the committee. Clerks and
advisers to the committee will go through Mr Straw's evidence to see
if it is consistent with the Butler report.
The vote was won by 4 to 3 after Andrew Mackinlay and Eric Ilsley, two
Labour members critical of the govt, abstained.
Andrew Mackay, a Tory member of the committee, said it was important
to make the challenge. He said: "We would be negligent in our duty to
parliament and the country if we did not reopen our inquiry ... It is
very important in the interests of transparency that this matter is
satisfactorily cleared up."
Mr Anderson said: "We are not reopening the inquiry. On very limited
terms the committee [seeks] clarification."
Critics have expressed astonishment that Mr Straw learned about the
change last y, while Mr Blair and the defence secretary, Geoff Hoon,
had to wait for the Butler inquiry to find out. Lord King, a Tory
former defence secretary, said this was "extraordinary".
Bob Marshall-Andrews, a Labour backbench opponent of the war, is
tabling a parliamentary question asking when Mr Blair learned the
intel had been withdrawn.

Iraq's neighbours agree to share intel
Border security also high on agenda
Cairo (AP/CNN).  Iraq's neighbours on Wed answered the war-ravaged
nation's plea for security assistance by agreeing to hold a high-level
meeting to address the issue of cross-border infiltration.
Arab foreign ministers welcomed the proposal of Iraqi Foreign Min
Hoshyar Zebari to convene interior ministers and security officials to
discuss how to "eliminate all terrorist and other armed groups present
and emanating from Iraqi territory which constitute a danger to Iraq
and neighbouring states," the final statement of the meeting said.
The announcement came after a day of long-winded deliberations and
minor disagreements.
The date of the meeting, to be hosted by Tehran, has not yet been
decided. But delegates at the 6th regional meeting of Iraq's neighbours
said the meeting will mean intel sharing, and possibly reinforcement
of border patrols.
"All of them accepted to work with us on this issue," Zebari told The
Associated Press, saying he was pleased with the meeting's outcome.
Wed's gathering was the 1st by the neighbours since sovereignty was
returned to the Iraqis last m, a fact that likely translated into the
delegates' readiness to act on their words of support.
"Just as neighbouring countries affect the situation in Iraq, they are
affected by it," said Egyptian For Min Ahmed Aboul Gheit, who read out
the final communique.
Saudi For Min Saud Al Faisal said the gathering approved all of Iraq's
proposals.
"These countries want to be of help to Iraq in facing crises," he
said. "All the proposals presented by Iraq to the meeting were welcome."
The group's communique condemned "all terrorists acts against
civilians, govt'l, humanitarian and religious institutions, as well as
internat'l organisations and diplomatic missions," but did not condemn
acts against US or Iraqi security forces.
Reflecting the difficulties of reaching a consensus between Iraq's
neighbours -- Jordan, Syria, Turkey, Iran, Saudi Arabia and Kuwait --
and regional heavyweight Egypt, Zebari said there are still issues to
be worked out with each country.
"It's up to us really to go back to them and approach them
specifically on our requirements, and I think they will cooperate," he said.
The new Iraqi govt has said restoring security is a top priority.
Facing almost daily car bombings and firefights, Iraq accuses foreign
Muslim infiltrators of being behind some of the deadliest attacks and
say neighbouring countries are either facilitating or turning a blind
eye to cross-border infiltration.
Iraqi officials have blamed lax border security, pointing the finger
at some neighbouring countries for not preventing infiltrations.
Zebari also on Tue accused some unnamed neighbours of "interfering" in
the events in Iraq.
Iran, Syria and Saudi Arabia say it is difficult to control their
long, porous borders with Iraq.
Aboul Gheit called the plan for the security meeting a "concrete" step
and said effective measures would come out of it.
"My hunch is it will be a continuous [process]," he said, saying he
hoped a security committee would become an institution alongside the
neighbour's meetings. He said the transfer of authority to the Iraqi
interim govt has provided the meetings "with a new input" upon which
to base their decisions.
An Arab delegate to the talks said that despite the sometimes stormy
discussions, the final agreements reflected a political will to work
together on security concerns. Without the political backing, intel
sharing cannot be effective, he said, speaking on condition of anonymity.
One disagreement was over the reported Israeli presence in Iraq, which
the Syrian delegation wanted to condemn in the final statement. Delegates
could be seen in the parlour of the glitzy hotel in a frenzy of
deliberations.
Finally, the delegates agreed to keep the concern in the minutes of
the meeting, Aboul Gheit said, after they heard a denial of the press
reports from the Iraqi foreign minister, who invited Arab countries to
send military or security officials to investigate the issue for themselves.
Earlier Wed, interim PM Iyad Allawi told reporters that Iraq depended
on Arab support to fight its security challenges.
"We are keen to ask for Arab support, including that of Egypt, which
faced hard times with terrorism," Allawi said. "Iraq is part of this
region and all the countries are now passing through difficult times."
Allawi, on a tour of several Arab states, also attended a special riot
police demo in Egypt, where the cadets stormed a well-fortified
terrorist hideout and administered checkpoints.
Police used armoured cars and water to disperse a group of rioters who
refused to disengage peacefully.
The neighbours have now met 6 times since the fall of Saddam Hussein's
regime last y to discuss attempts to stabilise Iraq.
The next political meeting of the neighbours will be held in Jordan.
No date has been set.

Malaysia ready to send medical team to Iraq, help in reconstruction
Washington (AFP).  Malaysian PM Abdullah Ahmad Badawi told US Pres
George W. Bush on Mon that Malaysia is ready to send a medical team to
Iraq and hopes to take part in reconstruction efforts.
"I'd like just to tell you that Malaysia is ready to send a medical
team, a sizable medical team to Iraq," Abdullah said as he met with
his host in the Whitehouse Oval Office.
"And we hope to be able, also, to participate in the reconstruction of
Iraq and do whatever we can to help," said Abdullah, who declared that
bilateral ties were "very strong" despite Malaysia's opp'n to the war
in Iraq.
"You cannot judge our bilateral relations simply on the basis of what you
hear, that we may have some differences on Iraq or on Palestine," he said.
"The foundation of the bilateral relations has remained strong all the time."
This is the 1st visit to the US by Abdullah, who took over last Oct
from retiring premier Mahathir Mohamad, a vociferous critic of Bush's
foreign policies.
While the substance of Malaysia's views may not have changed
significantly, the mode of delivery has, with Abdullah replacing
Mahathir's strident tones with low-key diplomacy.
The US is the 1st of a 3 nation visit by Abdullah covering also France
and Brit.
Abdullah is also chairman of both the 57-member Organisation of the
Islamic Conference (OIC) and the 116-nation Non-Aligned Movement (NAM)
of developing states.
With the Palestinian Authority in turmoil, Bush assured his guest that
he was "fully committed to the development of a Palestinian state that
can live side by side with Israel in peace."
Abdullah said they had discussed Islam and relations with the West,
adding "we believe that the Muslim countries can be helped to get a
better understanding.
"We are also trying to do whatever we can," he said. "We'll help to
reduce poverty, the condition of poverty."
Abdullah said he suggested and Bush agreed that a "capacity-building"
program be undertaken in poor Muslim countries as part of efforts to
demonstrate good faith to Muslims and address the root causes of terrorism.
Asked for his perception on the US-led war in Iraq, the Malaysian
leader said the attack had "shocked many people" but recent
developments, like the transfer of power to an interim Iraq govt, was
an "improvement and a step forward."
"I did indicate to the president that we should be doing all that we
can in order to make the Iraqis realise that it is important to ensure
that there is peace and stability so that preparations can be made for
elections to be held," he said.
"One obviously knows that under conditions of trouble, no elections
can be held," he said of Iraq's 1st planned democratic polls in Jan.
Abdullah said it was vital for Iraqis to do whatever they could to
restore stability so that they would get the opportunity to elect a
govt of their choice.
He leaves Washington Tue for a meeting with French Pres Jacques Chirac
on Wed and Brit PM Tony Blair on Fri.

Russia dismisses talk of deploying troops to Iraq
Moscow (Crosswalk/CNS News).  Russia has dismissed reports that it
could send tens of 1000s of Russian troops to join the multinat'l
rebuilding effort in Iraq, saying the info was "not based in reality."
"Russia's position remains unchanged," Defense Ministry rep Vyacheslav
Sedov announced on Tue. "We are not going to send Russian military
personnel to conflict zones in Afghanistan or Iraq, either for free or
in exchange for economic benefits."
Sedov emphasised that "not a single Russian soldier" would be sent.
The Texas-based private consultancy Strategic Forecasting (Stratfor)
published an analysis this wk, saying Moscow and Washington were
allegedly discussing a Bush Admin request to send troops to Iraq or
Afghanistan this fall.
Quoting anonymous Russian govt sources, Stratfor claimed that Pres
Vladimir Putin had agreed to the request "in principle" and had directed
the Russian General Staff to work up a plan by the end of the m.
It said the deployment could include 3 mechanised infantry divisions
and one airborne brigade, or 40,000 troops.
Stratfor also said Moscow had prepared a "wish list" for Washington,
seeking benefits in exchange including steps to return Russian oil
companies to Iraq.
It speculated that the dispatch of Russian troops to Iraq could stifle
the development of a Paris-Berlin-Moscow alliance against US policy.
Sources at Russia's Sec Council told Russia's ITAR-Tass news agency
that the references to 40,000 Russian troops going to Iraq were
"absurd and unbelievable."
The Izvestia daily described Stratfor's claims as "provocation instead
of forecast."
The chairman of the Federation Council [upper house of parliament]
internat'l affairs committee, Mikhail Margelov, told the Interfax news
agency sending troops would be ill-advised.
"Sending Russian troops to Iraq is undesirable because that would
amount to giving a boost to the Republican Admin in the US in the run
up of a presidential election whose outcome is at the moment
unpredictable," he said.
"Doing so while the allies of the US withdraw their contingents would
look like sending our soldiers to a certain death," Margelov added.
Russia, which strongly opposed to war to topple Saddam Hussein, last m
welcomed the transfer of power from the US-led coalition to an interim
Iraqi govt and pledged to develop relations with Baghdad, although not
without reservations.
Russian oil firms signed contracts worth $4 bn with the previous
regime to develop Iraq's oil reserves.
The country's top oil company, LUKoil, said in recent wk it planned to
be pumping crude in Iraq as early as next y.

US Army asking Guardsmen to stay longer in Iraq
Washington (Reuters).  The Army is asking some Nat'l Guard troops
serving in Iraq to volunteer to stay on active duty beyond a statutory
two-y limit for such service, officials said on Wed, in a fresh sign
of the strain on the US military amid operations in Iraq and Afghanistan.
Def Sec Donald Rumsfeld said "we don't plan at the moment" to extend
such reserve troops involuntarily beyond the two-y limit, but added
"one should never say never."
"The country's at war," Rumsfeld told a Pentagon briefing. "There's no
doubt but that we have mobilised significant numbers of [Nat'l] Guard
and Reserve forces, and that the facts on the ground will determine
what it is we do."
Lt Col Chris Rodney, an Army rep at the Pentagon, said that "all the
options are still open right now."
The issue is being confronted as about 400 soldiers from the Arkansas
Nat'l Guard, serving with the 39th Brigade Combat Team in Iraq,
approach the two-y limit, set by fed law and Pentagon policy, for
reserve troops mobilised into active duty from civilian life.
But with the Pentagon relying heavily on reservists to maintain troop
levels in Iraq and Afghanistan, many other troops may soon be bumping
up against the two-y limit.
Rodney said Army officials have already asked Arkansas Nat'l Guard
soldiers whether they would be willing to remain beyond the 2 y on a
"voluntary" basis, and that only a small number said they would be unwilling.
David Chu, under secretary of defence for personnel and readiness,
detailed Pentagon policy on the two-y limit in a memo shortly after
the Sep 11, 2001, attacks.
Rumsfeld said "the two-y limit is an interesting question," noting
that Chu's memo barred mobilisation for reservists longer than 24 m
cumulatively, while US law set the limit at 24 consecutive m of service.
The Pentagon has taken a series of unusual steps to maintain force
levels in Iraq and Afghanistan, while still opposing congressional
proposals to enlarge the military by tens of 1000s of troops. The US
has about 140,000 troops in Iraq and about 20,000 in Afghanistan.
The Army has issued "stop-loss" orders preventing tens of 1000s of
soldiers designated to serve in Iraq or Afghanistan from leaving the
military if their volunteer service commitment ends during their deployment.
The Army has notified 5,600 former soldiers from the Individual Ready
Reserve, a rarely tapped personnel pool, that they are being
involuntarily mobilised and deployed to Iraq and Afghanistan. And the
Pentagon extended duty in Iraq for about 20,000 troops 3 m beyond a
promised one-y stint, and opted to shift 3,600 troops from S Korea to Iraq.
About 40% of US forces in Iraq are Nat'l Guard and Reserve troops
summoned from civilian life into active duty.

Rumsfeld wants NATO Games security
Washington (AFP).  US Def Sec Donald Rumsfeld said additional security
for next m's Athens Olympics might be provided by NATO, but played
down a report saying US special forces would be on the ground to guard
US athletes.
"It wouldn't involve US troops per se, it would be only a NATO
mission. That I know of, there's nothing going on other than the
Greek-NATO relationship," Rumsfeld said.
The US defence secretary declined to discuss any intel concerns
Washington might have about the 2004 Games which authorities fear
could present a target to terrorists.
"I'm not going to get into intel about things that are up ahead of
us," Rumsfeld said.
The agreements will not be formally acknowledged to avoid raising
anti-US sentiment in Greece, Greek and US officials told the newspaper.
"The US is a part of NATO ... Greece is working with NATO," Rumsfeld said.
He spoke after The NY Times reported Greece had relented to pressure
to allow 400 US Special Forces soldiers and US, Israeli and Brit
security officers to be armed at the games.
US State Dept rep Richard Boucher said Washington was "cooperating
closely with the Greek govt" on security for the games.
"We're doing many things together," he said. "But as far as specific
measures and agreements, I really can't get into that.
"I'm not going to be able to identify any particular areas of security
for the Olympic Games. Security is the responsibility of the govt of
Greece. And in that responsibility, they have the support and
cooperation of the US, of course, of NATO, and of other nations who
have been working closely with Greek authorities to support the
Olympic security effort."
Greek Public Order Min Yiorgos Voulgarakis denied athletes will be
escorted by foreign, armed guards.
"Athletic delegations have escorts. But these escorts cannot be
armed," Voulgarakis told private Greek radio station Flash.
General Richard Myers, Chairman of the US Joint Chiefs of Staff, said
NATO was mulling a request for further security assistance from Greece.

US commits 400 special forces for games
Athens (AP).  Responding to a request from Greece, the United States
committed 400 American special operations forces to help protect the
Olympic Games, a US counterterrorism official said Wed, as security
costs for the games swelled to a record-breaking $1.5 bn.
It was not yet decided where the US soldiers would be based: in
Athens, on the island of Crete or on alert in Europe, where they are
based in Germany. The US is in the process of discussing with the
Greek govt where the soldiers will be positioned, said the official,
who spoke on condition of anonymity. The official did not specify
which branches of the US military would be involved.
The decision on where to send the troops is mostly up to the Greek
govt, but will be made jointly with Gen James Jones, the top NATO cmdr
who also is cmdr of US forces in Europe, the official said in Washington.
Def Sec Donald H Rumsfeld and Gen Richard Myers, chairman of the
Joint Chiefs of Staff, indicated in Washington that any possible
involvement of US troops would be under a NATO umbrella.
"The Greek govt has made a request of NATO. NATO is evaluating that
request," Myers said.
Greece's top law enforcement official, meanwhile, said foreign leaders
and other dignitaries can use their own armed guards at the Aug 13-29
games, but athletes will be under the exclusive protection of Greek forces.
Internat'l demands to boost Olympic security have pushed costs,
already the highest in Olympic history, to at least $1.5 bn -- 25%
higher than previously estimated, Greek Deputy Finance Min Petros
Doukas said. These may include expanded roles for NATO anti-terrorism
units and armed agents from the US and other nations.
"There are new bills coming up," Doukas told The Associated Press,
adding that Greece did not want to "risk the reaction" by denying
foreign appeals for added security.
The US has led demands to expand anti-terrorism measures for the 1st
summer Olympics since the Sep 11 attacks on NY and Washington.
Among the added costs, said Doukas, is more than $2.4 mn for a blimp
outfitted with high-resolution cameras and chemical detection systems.
On the ground, authorities are struggling to overcome delays and financial
disputes to close gaps in a new communications-surveillance network.
Greek officials also are seeking to find agreement on the politically
sensitive issue of armed security contingents planned by the US,
Israel and possibly other nations.
Public Order Min Giorgos Voulgarakis insisted athletes will be under
the exclusive protection of Greek forces. But he noted that foreign
leaders and other dignitaries can use their own armed guards as part
of an established "security protocol" that covers such visits.
Heads of state and other prominent figures, including former Pres
George Bush, are expected in Athens and normally have a security entourage.
The issue facing Greek officials is how much extra foreign security to
allow and how freely to let it operate. Greece would to bend laws
prohibiting armed security beyond diplomatic protection.
Greek officials also worry foreign guards might overreact to such
common occurrences as street protests, small firebombs planted by
anarchists or motor scooters on sidewalks to avoid traffic.
Some concessions have apparently already been made.
Greek police sources told the AP earlier this m that armed US agents
would watch over athletes during a pre-Olympic training camp on the
island of Crete. The US plans to send nearly 200 personnel to Greece,
including diplomatic security and FBI agents.
More American specialists could operate under NATO, which has agreed
to provide air and sea patrols and experts in biochemical weapons.
Israel, which lost 11 athletes to Palestinian terrorists in the 1972
Games at Munich, Germany, will send armed guards and is among a
half-dozen countries contributing security expertise at Greece's request.
In Israel, a security adviser to the Israeli Olympic team said it was
"correct and logical" for Greek officials to permit foreign guards and
intel agents.
"I think every team since Munich [in 1972] was protected by the Shin
Bet [security services] and there is nothing better than this," Assaf
Hafetz, a former police commissioner, told Israel Radio.
"This is smart on the part of the Greeks and it's not clear to me why
they opposed this. After the issues of honour were put aside, the
professional issues were considered. This is the correct decision."
He added that he knew of no direct threats aimed at the Athens Olympics.
"But there are groups like Hezbollah and al-Qaeda that have the
willingness and the ability to attack at the games," Hafetz said.
"And thus it makes this business so critical. So you can't take just a
defensive position, you must act on the offensive."

No foreign armed guards for athletes: Greece
Athens (Reuters).  Greece has insisted it will not let foreign guards
carry weapons to protect athletes at next month's Olympics after the
NY Times reported Athens would turn a blind eye to their presence.
Public Order Min George Voulgarakis said guards accompanying nat'l leaders
to the games would be allowed to carry guns, but this was not related
to the Olympics and was already covered by existing internat'l protocols.
"The leaders of countries have specific protocols, that are separate
and unrelated with the Olympics. These are bilateral agreements signed
many y ago," Mr Voulgarakis said in a statement.
"Leaders, presidents, kings, et cetera are one thing and athletes are
another.  Greece is exclusively responsible for the protection and
guarding of the athletes."
US defence secretary Donald Rumsfeld said that additional security for
next month's Athens Olympics might be provided by NATO, but played
down the report saying US special forces would be on the ground to
guard US athletes.
"It wouldn't involve US troops per se, it would be only a NATO
mission.  That I know of, there's nothing going on other than the
Greek-NATO relationship," Mr Rumsfeld told reporters at a Pentagon
press conference.
The NY Times reported that American, Israeli and possibly Brit security
officers would be allowed to carry weapons at the Aug 13 to 29 event.
Greece has refused to allow nat'l Olympic squads to use their own
armed security forces to protect athletes, saying its constitution
prohibits foreigners bearing arms on Greek soil.
It also fears a free-for-all shootout if foreign guards who do not
speak Greek mistakenly interpret a situation involving Greece's own
security forces.
US ambassador Thomas Miller said security was a Greek issue and there
had been no change in the ban on foreign armed guards protecting athletes.
"Security is a Greek responsibility," Mr Miller told reporters.  "We
are looking to the Greek Govt to provide security. There is nothing
new in this story."
Mr Rumsfeld declined to discuss any intel concerns Washington might
have about the 2004 Games which authorities fear could present a
target to terrorists.
"I'm not going to get into intel about things that are up ahead of
us," Mr Rumsfeld said.
Greece is staging the biggest ever Olympic security plan worth over 1
bn euros [$AU1.7 bn] -- nearly 4 times the amount spent for the SYD
2000 Games.
NATO will provide air and sea patrols and will have units on standby
in Greece in case of any chemical, biological or nuclear attack.
Greece expects about 40 foreign leaders, including PM Tony Blair and
French Pres Jacques Chirac, to visit during the Games.
Israel, AUS and the US have hinted in the past they would use their
own guards to protect their athletes at the Athens Olympics.
At the 2002 SLC Winter Olympics, the 1st games after the Sep 11, 2001
attacks on US cities, some 14 countries used their own armed guards.

No Aussie armed guards for Olympic athletes
Canberra (ABC/Reuters).  AUS will not send armed guards to Greece to
protect our Olympic athletes.
Greece has insisted it will not let foreign guards carry weapons to
protect athletes at next month's Olympics after The NY Times reported
Athens would turn a blind eye to their presence.
However, around a dozen un-armed Aussie Fed Police officers, Defence
personnel and officials from the Dept of Foreign Affairs will be based
at the Aussie embassy in Athens.
A rep for the For Min, Alexander Downer, says they will liaise with
Greek Olympic security organisers about the protection of Aussie athletes.
Aussie officials have also been discussing security issues with
Olympic organisers for at least a y and are providing advice based on
lessons learned during the 2000 Olympics in SYD.
AUS will not be involved in any internat'l security force in Athens.
Greek Public Order Min George Voulgarakis said guards accompanying
nat'l leaders to the Games would be allowed to carry guns, but this
was not related to the Olympics and was already covered by existing
internat'l protocols.
"Leaders, presidents, kings, etcetera are one thing and athletes are
another.  Greece is exclusively responsible for the protection and
guarding of the athletes."
US defence secretary Donald Rumsfeld said that additional security for
next month's Athens Olympics might be provided by NATO, but played
down the report saying US special forces would be on the ground to
guard US athletes.
"It wouldn't involve US troops per se, it would be only a NATO
mission.  That I know of, there's nothing going on other than the
Greek-NATO relationship," Mr Rumsfeld told reporters at a Pentagon
press conference.
US Chairman of the Joint Chiefs of Staff General Richard Myers says
the US commitment will be under the NATO umbrella.
"NATO is evaluating that request. We tried to find out just before we
came in here if we had any news on that and we don't," he told reporters.
"Once that decision's made then we'll look at the kind of capabilities
that might be required to help."
Asked if US troops would be in Greece, he responded, "It's all
possible sure".
The newspaper reported that American, Israeli and possibly Brit
security officers would be allowed to carry weapons at the Aug 13 to
29 event.
Greece has refused to allow nat'l Olympic squads to use their own
armed security forces to protect athletes, saying its constitution
prohibits foreigners bearing arms on Greek soil.

Govt considering armed guards for athletes
Canberra.  PM John Howard says the Govt is still assessing whether
AUS's Olympic team in Athens will be protected by armed guards.
The Govt had said earlier today it would not send armed guards to Greece.
Greece has refused to allow nat'l Olympic squads to use their own
armed security forces to protect athletes, saying its constitution
prohibits foreigners bearing arms on Greek soil.
A rep for the FM, Alexander Downer, had said around a dozen un-armed
Aussie Fed Police officers, Defence personnel and officials from the
Dept of Foreign Affairs would be based at the Aussie embassy in Athens.
The rep said those parties would liaise with Greek Olympic security
organisers about the protection of Aussie athletes.
He said Aussie officials had also been discussing security issues with
Olympic organisers for at least a y and were providing advice based on
lessons learned during the 2000 Olympics in SYD.
But Mr Howard now says the Govt is still considering the issue of
armed guards.
"Well, we are assessing the matter at the moment," he said.
"We're assessing the matter.  I spoke to the For Min this morning and
we're assessing the matter."
Greece has insisted it will not let foreign guards carry weapons to
protect athletes at next month's Olympics after The NY Times reported
Athens would turn a blind eye to their presence.
Greek Public Order Min George Voulgarakis said guards accompanying
nat'l leaders to the Games would be allowed to carry guns, but this
was not related to the Olympics and was already covered by existing
internat'l protocols.
"Leaders, presidents, kings, etcetera are one thing and athletes are
another.  Greece is exclusively responsible for the protection and
guarding of the athletes."
US defence secretary Donald Rumsfeld said that additional security for
next month's Athens Olympics might be provided by NATO, but played
down the report saying US special forces would be on the ground to
guard US athletes.
"It wouldn't involve US troops per se, it would be only a NATO
mission.  That I know of, there's nothing going on other than the
Greek-NATO relationship," Mr Rumsfeld told reporters at a Pentagon
press conference.

Bush approves arms sales to Iraq
Washington (AFP).  US Pres George W Bush has given the green light to
US arms sales to Iraq's interim govt, which faces deadly insurgent
violence nearly one m after assuming power.  "I hereby find that the
furnishing of defence articles and services to Iraq will strengthen
the security of the US and promote world peace," Mr Bush said in a
memorandum for US Secretary of State Colin Powell.  Amid escalating
violence just 3 wk after the US-led occupation ended, Iraq called on
neighbouring countries for help, saying it wanted joint security
cooperation to protect their common borders.  US officials blame the
attacks on insurgents seeking to discredit Iraq's interim Govt as it
struggles to prepare for general elections by Jan 2005.

Video shows Sep 11 hijackers breaching security
Washington (AFP/BBC).  A security video has emerged in the United
States showing four hijackers of the plane that crashed into the
Pentagon on Sep 11, undergoing additional security checks at Dulles
Airport in Washington.
The video, obtained by the Associated Press news agency, was released by a
law firm representing the survivors and families of victims of the attacks.
In colour and slightly grainy, the film shows one group of hijackers
at Dulles Internat'l Airport in Washington.
4 of the men are filmed at security, walking through the metal
detector and setting off its alarm.
They are then each taken to one side by security guards and given a
secondary check, one even has his hand luggage examined.
They are then all cleared and allowed to make their way to the
aircraft they would later hijack and crashed into the Pentagon.
The video release comes ahead of a key US report into the Sep 11 attacks.
It is believed the independent commission will say both the Clinton
and Bush govts missed opportunities to detect the Al Qaeda plot.
The 600-page report, by the Nat'l Commission on Terrorist Attacks Upon
the US, is expected to detail numerous breaches of the US security network
which allowed Al Qaeda terrorists to carry out the attacks, in NY and
Washington.
US Pres George W Bush has pre-empted the criticism, saying he would
have done everything in his power to stop the attacks.
"Had we had any inkling whatsoever that terrorists were about to attack
our country, we would have moved heaven and earth to protect America
and I'm confident Pres Clinton would've done the same thing, any
president would," he said.
"I'm looking forward to the report, I'm glad they've done a lot of
good work and its going to be very useful for the country to listen to
what they have to say."
The panel also is expected to elaborate on an earlier finding that
there was no collaboration between Al Qaeda and Saddam Hussein in the
Sep 11 attacks.
The Bush Admin based its case for going to war against Iraq in part on
Baghdad's alleged cooperation with the militant Islamist group.

9/11 Panel blames 'institutional failings'
Washington (AP).  The Sep 11 commission's final report concludes the
hijackers exploited "deep institutional failings within our govt" over
a long period but does not blame Pres Bush or former Pres Clinton for
the mistakes, Admin officials familiar with the findings said Wed.
The report describes the patience and determination of the 19
hijackers and said they probed for weaknesses in airline and border
procedures, taking test flights to gauge security.
A surveillance video that surfaced Wed shows 4 of the hijackers
passing through security gates at Dulles Internat'l Airport shortly
before boarding the plane they would crash into the Pentagon. In the
video, the hijackers can be see undergoing additional scrutiny after
setting off metal detectors, then being permitted to continue to their gate.
The Sep 11 commission has spent 20 m looking into how the hijackers
were able to mount the worst terrorist attack in US history, killing
nearly 3,000 people and demolishing the World Trade Center's twin towers.
Whitehouse officials and congressional leaders were briefed Wed on the
panel's findings, and Bush is to receive a copy of the 575-page report
Thu, just before it is released to the public.
Bush, bracing for a report that will be sharply critical of the govt's
intel-gathering, said he looked forward to reading the report and the
Admin is doing everything possible to prevent another terrorist attack.
"Had we had any inkling whatsoever that terrorists were about to
attack our country, we would have moved heaven and earth to protect
America," he said. "I'm confident Pres Clinton would have done the
same thing. Any president would."
One Admin official said the report concludes that Bush and Clinton
took the threat of al-Qaeda seriously and were "genuinely concerned
about the danger posed by al-Qaeda." It finds that neither president
was to blame for failing to stop the attacks, which were the
culmination of y of planning.
"It does not place blame on particular individuals or particular
incidents, but in fact it identifies institutional failings that have
grown up over time about the way our govt is organised," the official said.
While Admin officials offered a preview of the report, their summary
was far from a complete accounting of the commission's findings.
Less than 4 m before the presidential election, the commission's work
already has ignited partisan debate over whether Bush took sufficient
steps to deal with terrorism in the 1st y of his Admin.
As expected, the report will call for creating a Cabinet-level nat'l
director of intel with authority over the CIA, FBI and other agencies.
The White House Admin is reserving judgement on that recommendation,
and officials doubt it could be approved by Congress this y.
4 Admin officials briefed reporters on the content of the report on
condition of anonymity because it has not been publicly released.
"Rather than finding that there was a failure at the presidential
level, what they find though is that there are failings and that there
were deep institutional failings within our govt," an official
said. "And that's what they really examine at some length over a long
period of time -- that there were a variety of factors spanning many y
and many Admins that contributed to a failure to share info amongst
agencies for both legal and policy reasons."
In particular, the official said, the commission found the FBI was not set
up to collect intel domestically, in part because of civil liberties concerns.
The report also concludes there was a "failure of imagination" to
provide either Bush or Clinton with new options -- particularly
military options -- to deal with al-Qaeda, the official said. There
was a failure to adapt to the post-Cold War era, and people just kept
trying the same kinds of things that didn't work, the official said.
The report lists a series of missed operational opportunities to stop
the hijackers, such as the bungled attempts to kill or capture Osama
bin Laden and the FBI's handling of Zacarias Moussaoui, who was
arrested in Aug 2001 before the hijackings and has been accused of
conspiring in the plot, the official said.
It also "debunks" some theories that once circulated widely, such as
that the Saudi govt had funded the hijackers and that the Whitehouse
allowed a group of Saudis to slip out of the country when all planes
were grounded, the official said.
Commissioners have said the report also will fault Congress for poor
oversight of intel gathering and criticise govt agencies for their
emergency responses to the attacks.
The harshest criticism will be levelled at the FBI and CIA, with the
panel citing poor info sharing and intel analysis as key failures that
contributed to the plot.
But the 10-member panel declined to recommend a separate domestic spy
agency modelled after Brit's MI5, deciding that reform efforts by FBI
Director Robert Mueller were on the right track despite the FBI's
historical focus on law enforcement, said Rep Jim Turner, D-Texas.
"What they've concluded is, the FBI is moving in the right direction
-- it has some capabilities in place, others are developing -- and my
sense is they chose not to disrupt that process," said Turner, the top
Democrat on the House Homeland Security Committee.
The commission's proposals are a victory for Mueller, who sought to
respond to withering criticism of the FBI after Sep 11 by making
counterterrorism the agency's primary mission. Mueller has repeatedly
argued that a new domestic intel service would be duplicative and
raise civil liberties concerns.
In Jun, Mueller told Congress he was working to create an intel
service largely independent from the rest of the FBI, with its own
budget and with a chief reporting to Mueller.
"Intel functions are woven throughout the fabric of the bureau, and
any changes to this integrated approach would be counterproductive,"
Mueller told House lawmakers last m.

2 militants killed in Saudi shoot-out
Riyadh (AFP/Reuters).  Saudi security forces have killed 2 wanted
suspects in a late-night shoot-out in the capital Riyadh but there
were conflicting reports about whether Al Qaeda's leader in the Gulf
was among the dead.
The deaths come as security forces report the discovery of the head of
slain US hostage Paul Johnson, in a villa raided on Tue night.
Mr Johnson was beheaded by militant supporters of Al Qaeda leader
Osama bin Laden last m.
Saudi and US experts have been searching for his remains since then.
Saudi security forces say one of the militants killed in the gun
battle was Saleh Mohammad al-Oufi, but his death could not be confirmed.
The interior ministry said 2 men were killed and 3 other suspects were
wounded and captured while Oufi's wife and 3 of his children were
among those arrested in the raid.
Oufi, a 38-yo former police officer, is number 4 on the kingdom's most
wanted list and reportedly succeeded Abdul Aziz al-Muqrin who was
killed along with 3 associates by security forces last m after
websites posted photos of an American hostage they beheaded.
The clash came as Saudi leaders made a final call for Al Qaeda-linked
extremists to turn themselves in under a one-m pardon announced on Jun
23 by King Fahd in a bid to rein in those behind a wave of deadly attacks.
But only 4 such wanted men have so far taken advantage of the offer
despite govt assurances that they would be exonerated should they repent.
The late-night shooting was the 1st incident of its kind since Jul 1,
when police said 2 of the kingdom's most wanted men were killed in a
shoot-out by forces hunting down those behind attacks which have
killed some 90 people and wounded 100s since May 2003.
The ministry said other armed men arrived on the scene and engaged in
an exchange of fire with security forces before fleeing and that 3
policemen were slightly hurt and arms and explosives seized.
The authorities have said that they would not extend the amnesty,
which was promptly scoffed at by Al Qaeda, which rendered it doomed to
"inescapable failure" in a statement on Islamist websites.
"We hope that those remaining will be reasonable enough to use the period
left to turn themselves in," Defence Min Prince Sultan bin Abdul Aziz said.
Despite the persistent unrest in the kingdom, which has more recently
seen suspected Al Qaeda groups targeting Westerners, Prince Sultan
insisted his forces had the upper hand.
"The deterioration of this deviant group and the downfall of its
figures one after the other confirms that Allah is looking after this
country," he said.
But liberal writer Mansur al-Nogeidan argued it was "too early to
claim that Al Qaeda has been weakened."
"There are usually long intervals between its big attacks. The most dangerous
terrorists did not surrender because they are ideologically committed.
Those who turned themselves in were on the sidelines," he told AFP.
Sheikh Awad al-Qarni, an Islamist in favour of mediation efforts,
however saw the response as more favourable.
"It seems that the amnesty produced great results through the positive
response from some of those wanted," he said, adding that the "violent
group has been immensely weakened."
13 militants on the 26-strong wanted list issued in Dec remain at
large.  The others have either been killed in clashes or surrendered.

Hoon announces sweeping defence cuts
London (AFP/Reuters).  Def Sec Geoff Hoon has announced the biggest
shake-up of the military in a generation.
Mr Hoon has said changes in the military are necessary because of a
shift in emphasis after the end of the Cold War towards a need for
rapid reaction forces capable of swift deployment to hotspots across
the world.
Brit will slash around 19,000 military and civilian posts from its armed
forces over the next 4 y as part of the overhaul of military priorities.
The reforms will see the Royal Air Force shed 7,500 posts and the
Royal Navy 1,500 by 2008, while around 10,000 civilian positions
throughout the armed forces will also go, Mr Hoon said.
He says Brit will require 8 Type 45 destroyers to meet future
air-defence requirements, cutting its previous estimate by 1/3.
"We can meet future area air-defence and command-and-control
requirements from a force of 8 Type 45 destroyers," Mr Hoon told Parliament.
Mr Hoon also said Brit required a total of 8 nuclear attack
submarines, but said there was still more work to be done before
finalising production orders of new Astute submarines.
In the past 5 y, PM Tony Blair has launched operations in Kosovo,
Sierra Leone, Afghanistan and Iraq, which, with 45,000 personnel, was
the biggest deployment since Korea 50 y ago.
Chancellor Gordon Brown announced last wk that the Ministry of
Defence's budget would be increased by just 1.4% annually in real
terms but he also demanded 2.8 bn pounds in savings on equipment
procurement and back-office support by 2007/08.

US 'war on terrorism' faces $US12 bn cost blow-out
Terror cost blow-out
Washington (AFP).  United States military operations in Iraq and
Afghanistan will exceed their budget by $US12.3 bn this fiscal year,
leaving the Pentagon scrambling to make up the shortfall, according to
a US Congressional report.  The Govt Accountability Office (GAO), the
investigative arm of the US Congress, said in its report "Fiscal Year
2004 Costs for the Global War on Terrorism" that the US Defence Dept
is taking a number of measures to make up the cost overruns, including
transferring funds among appropriations accounts and putting off some
planned military activities until a later date.  Congressional
investigators signalled that stricter oversight of future Pentagon
spending may be needed.  "Recent congressional actions have signalled
the Congress' intent to require greater accountability regarding the
use of [Global War on Terror] funds," the report read adding, that
"additional actions are necessary".

APEC to consider anti-aircraft missile export controls
Singapore (AFP).  APEC countries will consider adopting strict
guidelines for export controls of surface-to-air missile systems which
they fear could be used by terrorists to hit civilian aircraft,
officials have said.
The consideration of guidelines by 21 members of the Asia-Pacific
Economic Cooperation (APEC) forum, which includes AUS, is in response
to concerns expressed by APEC leaders last y over the proliferation of
man-portable air defence systems [manpads].
Manpads are surface-to-air missile systems specially designed to be
carried and fired by a single individual.
They are portable and easily concealed, yet capable of potentially
catastrophic destruction.
At the APEC summit in Bangkok last Oct, the leaders agreed to
"strengthen our joint efforts to curb terrorist threats against mass
transportation and confront the threat posed by terrorists'
acquisition of manpads against internat'l aviation".
APEC officials meeting in Singapore next wk are expected to follow up
on the Bangkok commitment and consider adopting guidelines for manpad
export controls as part of group's larger objective of fighting
transnat'l terrorism and proliferation of weapons of mass destruction.
"One of the ideas that we have been talking about within APEC is
perhaps all APEC members might be able to adhere to the principles and
guidelines that the Wassenaar Arrangement had worked out on manpads,"
Lauren Moriarty, US Ambassador for APEC, told AFP in an interview.
The Wassenaar Arrangement (WA) is an agreement among 33 nations on
common standards for export controls for both conventional weapons and
sensitive goods and technologies used for both military and commercial
purposes.
The WA's export controls of manpads was agreed upon in Dec last year
by nations that included 7 APEC members -- the US, Japan, Russia, AUS,
Canada, NZ and S Korea.
APEC members not signatories to the WA may wish to agree unilaterally
that they like to adhere to the same guidelines, Ms Moriarty said.
"You will then at the very least have a political statement that
everybody in our part of the world has taken this seriously and is
going to try to meet the internat'l standards that were set out in
best practices by the Wassenaar Arrangement," she said.
"In practical terms, it then starts to set out a set of actions which
individual economies can take to help better protect themselves from
an attack and perhaps you will find things among the guidelines which
we might want to work collectively or build capacity," Ms Moriarty added.
By adopting the WA standards devised by experts, APEC also "need not
reinvent the wheel," she said.
The Singapore meeting will be held on Jul 30 -- 31.
Under the WA arrangements, nat'l export controls apply to internat'l
transfer or re-transfer of manpads, including complete systems,
components, spare parts, models, training systems and simulators.
Exporting govts under the protocol are obliged to report transfers of
manpads, with decisions to authorise exports taking into account
potential for diversion or misuse in the recipient country.
There are also provisions for storage of manpads to be subject to the
highest standards of security, as well as criminal sanctions for
infringements of export control legislation.
An APEC working group on air transportation security agreed at a
meeting recently that business and govt coordination was essential to
prevent manpads proliferation in the region.
"The threat that a missile might destroy a jetliner is real and APEC
has an important role to play in preventing the proliferation of
Manpads," the group said.
APEC comprises AUS, Brunei, Canada, Chile, China, HK, Indonesia,
Japan, S Korea, Malaysia, Mexico, NZ, Papua New Guinea, Peru, the
Philippines, Russia, Singapore, Taiwan, Thailand, the US and Vietnam.

Tobacco company fined for destroying documents
Washington (Reuters).  The fed judge overseeing the United States
Govt's racketeering case against the tobacco industry has scolded
Altria Group and its Philip Morris USA unit for destroying potential
evidence and fined them $US2.75 mn.
US District Judge Gladys Kessler called it "astounding" that at least
11 high-ranking Philip Morris employees flouted a 1999 court order
requiring the company to preserve all material that might be relevant
to the case.
Mr Kessler said it was "impossible to accurately assess what harm has
been done to the Govt [case] and what prejudice it has suffered" as a
result of the destruction of e-mails.
The judge denied a request by the Govt to hold an "adverse inference"
from the destruction against Philip Morris and Altria, which could
have helped bolster the case against them.
Drawing such an inference would be "inappropriate" and "cast too wide
a net," the judge said.
The Govt lawsuit has charged tobacco companies with deliberately
misleading the public about the risks of smoking in a conspiracy going
back to the 1950s.
It is seeking $US280 bn in redress.

Apes' anthrax deaths cause fears for humans
Berlin (Reuters).  Anthrax has killed apes in tropical rain forests in
Ivory Coast where it has never been seen before and could pose a
threat to humans, German researchers said.
Scientists had known from experiments that the acute infectious
disease caused by spore-forming bacteria could kill monkeys but until
now they had never come across evidence of it in wild populations.
"Anthrax has never been found killing chimpanzees in the wild before,"
Heinz Ellerbrok, a virologist at the Robert Koch-Institute in Berlin, said.
"It could pose a danger to humans because in this part of Africa it is
quite common for bush meat to be consumed and there is also illegal
poaching going on," he said.
Conservationists have warned that Africa's lucrative bushmeat
industry, which is a key source of food and income for poor people, is
threatening species such as gorillas and chimpanzees with extinction.
Scientists are also concerned that people who hunt and eat the wild
animals are being infected with animal illnesses that could pose a
public health threat to humans.
Behavioural scientists who have been observing 3 communities of wild
chimpanzees in the Tai Nat'l Park in Ivory Coast since 1984 were
alarmed when they noticed a high number of deaths over 9 m and alerted
Mr Ellerbrok and his colleagues.
The wild chimpanzees had been healthy shortly before they died,
suggesting an acute infection had been the cause.
"We show that anthrax can be found in wild non-human primates living
in a tropical rainforest," Mr Ellerbrok and his colleagues said in the
science journal Nature.
The researchers are not sure where the bacteria came from.
They could have been there for a long time and had not been discovered.
They suspect infections may be occurring in other parts of Africa.
"It is new to observe anthrax in this region, although we don't know
where it comes from, anthrax may be an indicator of other pathogens
that are there," Mr Ellerbrok said.
"There is also a risk of inter-species transmission from chimpanzees
to humans, it is a realistic danger in this area due to bush meat consumption."
Anthrax can be transmitted by inhaling the spores, the deadliest form
of the illness, through a cut in the skin, or by eating contaminated meat.
5 people in the United States died and others were infected by
anthrax-laced letters sent in the wk following the Sep 11 attacks.

Reports of abused Iraqis rise
Sexual wrongs beyond Abu Ghraib
Washington (DenverPost).  Iraqi prisoners allegedly were stripped of
their clothing and exposed to harsh conditions at 2 war-zone detention
facilities separate from the notorious Abu Ghraib prison, according to
Pentagon documents obtained this wk by The Denver Post.
The Army is investigating whether a detainee was sexually humiliated
during an interrogation at Forward Operating Base Summerall nr Bayji,
Iraq, and whether several prisoners were forced to stand naked in the
rain for 12 hr at a Balad, Iraq, base earlier this y, records show.
The documents bolster the view that sexual degradation of Iraqi
prisoners was not isolated at Abu Ghraib, where reservist soldiers
have been accused of stripping inmates and forcing them to perform
sexually demeaning acts, often in full view of other prisoners and personnel.
In Muslim culture, nudity can be shameful and conflicts with many
religious principles.
Until now, Abu Ghraib has been the only Iraq detention facility where
sexual abuse allegations have been investigated by Army officials,
according to a review of law-enforcement summaries obtained by The Post.
The recently obtained records also catalogue several additional
investigations into possible abuses by soldiers that include placing a
detainee in a crate and "prodding" others with metal objects.
Sen Wayne Allard, R-Colo, a member of the Senate Armed Services
Committee, called the reports troubling.
"With the Abu Ghraib prison scandal fresh in our minds, I believe it
is important that we investigate all alleged instances of prisoner
abuse wherever they may occur," Allard said Tue in a statement after
reviewing excerpts from documents provided by The Post. "Such acts are
inhumane and contrary to the rights and freedoms we cherish."
Pentagon rep Lt Col Joe Yowsa said he could not comment on ongoing
investigations but stressed that, generally, the abuse allegations
have arisen from individual wrongdoing.
"A significant number of abuse incidents are individuals acting on
their own," Yowsa said. "They're not following policies or procedures."
Among the sexual humiliation allegations is a report that a specialist
with the 33rd Field Artillery abused an Iraqi during an interrogation
to obtain info "regarding future attacks." The Summerall facility is
in an area populated by Saddam Hussein loyalists and has come under
frequent fire from insurgents.
When the prisoner denied knowledge of attacks, the specialist
allegedly forced him to disrobe and poured "soda" over his body.
"The detainee was then made to roll in the sand and conduct jumping
jacks while he was naked," the report states. "... [V]arious female
cooks and medical personnel were brought over to watch the detainee
while he was forced to exercise."
Army officials opened an investigation in Apr after guards at a state
prison in S Dakota intercepted a letter from the specialist detailing
the incident to his brother, an inmate at the prison, reports
show. The Post could not reach the specialist, but a relative said the
soldier claims he has been "cleared" of wrongdoing.
At a camp nr Balad, a released Iraqi prisoner has alleged that he and
others were forced to "stand naked in the rain for 12 hr" by 4ID
soldiers in Jan.
The prisoner, a dealer of domestic animals, contends that he was
captured at a checkpoint by US soldiers because he was carrying
$26,000 worth of Iraqi currency. He said a captain refused to return
his money once he was released, then re- imprisoned him for 16 days
after he demanded it back.
The captain "threatened him, told him not to file a claim and threatened
to cut his tongue if he did make a claim," the Iraqi man reported.
Stripping was sanctioned as an interrogation technique in 2002 by
Secretary of Defense Donald Rumsfeld for use on suspected Taliban and
al-Qaeda terrorists held at Guantanamo Bay, Cuba. But Rumsfeld later
rescinded the sanction, saying the tactic would be approved on a
limited basis. Stripping allegations eventually emerged at Abu Ghraib
following Rumsfeld's Apr 2003 order and became the centre of a
worldwide scandal and an internal investigation.
Scattered reports of sexual humiliation in the Iraq war zone have
emerged in recent weeks. The Post reported in May that soldiers in an
engineering platoon captured prisoners trespassing at their camp,
stripped them and administered shocks to them. And the Red Cross
released a report citing the use of stripping as an interrogation
technique in Iraq but has not divulged details.
Pentagon officials have dismissed any connection between interrogation
techniques used at the detention centre in Cuba and facilities in Iraq.
Other abuse cases outside Abu Ghraib are under investigation by the
Army, documents show.
2 prisoners who exhibited bruises and cuts after being held at a
facility nr Mosul, Iraq, alleged that "coalition forces" abused them
and poured water on them during interrogations in Mar. A cmdr, Brig
Gen Carter Ham, issued a finding that the accused soldiers did not act
improperly. He blamed the detainees' bruises on the "physical nature
of the apprehension, passive resistance by feigning exhaustion and
falling to one's knees, prolonged kneeling during interrogation and
pre-existing medical conditions." No update was provided on the
criminal investigation.
A sergeant is under investigation for allegedly assaulting 2 detainees
in early May while moving them in a vehicle between 2 camps. When they
arrived, several soldiers noticed bruises on both detainees, as well
as other injuries, including a broken collarbone and ruptured eardrum.
Aggravated assault charges are pending against the soldier, according
to the records.
In early Jun, 2 detainees at Camp Eagle reported that 2 Iraqi
interpreters threatened them with death if they did not respond
truthfully to questions. American soldiers are alleged to have been
present, according to the report.
"The detainees also accused the interpreters of pulling their hair,
striking them in the head, throwing them to the ground and prodding
them with a metal object."
No suspects have been identified, according to the report.
A detainee at the Division Central Collection Point in Tikrit reported
he had been tied, blindfolded and placed in a "crate about four feet
high that required him to sit on the floor of the box with his knees
to his chest." The report notes that he was in the custody of a
special-operations unit. The incident occurred between May 9 and 11.

Iraqi militants "seize" 6 foreign hostages
Baghdad (Reuters).  A new hostage crisis has erupted in Iraq just a
day after a kidnapped Filipino was freed, with militants saying they
had seized three Indians, 2 Kenyans and an Egyptian and are
threatening to kill them one by one.
In video footage given to Arabic satellite channel Al Arabiya, masked
gunmen said they would behead the captives unless the Kuwaiti company
they worked for pulled out of Iraq.
"We announce we have captured 2 Kenyans, 3 Indians and one Egyptian.
We tell the company to withdraw and close its offices in Iraq," said
one of the masked men, from a group calling itself the "Black Banners".
The guerrillas also demanded that India, Kenya and Egypt withdraw
their citizens from Iraq.
None of the countries are part of the US-led military coalition in
Iraq but many of their nat'ls work as drivers and contractors.
"We have just heard the news. We are in touch with our embassy in
Baghdad and in Kuwait to find out all possible details and to liaise
with Iraqi authorities to seek early release of the persons reported
to be kidnapped and ensure their safe return," said E Ahmed, jr Indian
foreign minister.
An Egyptian diplomatic source confirmed that an Egyptian truck driver
named Mohammed Ali had been taken hostage.
On Mon, another Egyptian hostage was freed after his Saudi employer
pledged to stop doing business in Iraq.
On Tue, Filipino truck driver Angelo de la Cruz was released from more
than 2 wk in captivity, after the Philippines bowed to the demands of
his captors and withdrew its small military contingent from Iraq a m
ahead of schedule.
Manila's move was criticised by the US and AUS, both key allies, and
by Iraq's interim Govt which said the Philippines was giving into terrorism.
Mr De la Cruz, a 46-yo father of 8, flew to Abu Dhabi to be
reunited with his wife before heading home.
He said he was well treated in captivity but often feared death.
* Internet threats
Washington insists its coalition remains strong despite the
Philippines' decision to follow Spain, the Dominican Republic,
Nicaragua and Honduras in pulling out of the country.
2 more members of the coalition have come under fresh pressure, with
an Internet statement from a group claiming to be the European wing of
Al Qaeda threatening the nations with attack unless they withdrew from Iraq.
"To the crusader Bulgarian Govt which supports the Americans, we ask
you for the last time to withdraw Bulgarian forces from Iraq or we
will turn Bulgaria into a bloodbath," said the statement.
Its authenticity could not be confirmed.
"To Poland and the despicable PM Marek Belka, withdraw your forces
from Iraq or you will hear explosions ripping through your country
when we want," the statement added.
Poland has 2,400 troops around S central Iraq.
Bulgaria has 455 troops in the same area.
"We are treating the threat extremely seriously, although I would say
we have had more of these sorts of statements from various organisations,"
Mr Belka told Poland's parliament.
"According to our security services, there are no new events within
Polish borders which would require any particular sort of behaviour,
or reaction from our citizens."
On Tue, an Internet statement claiming to be from a group led by
Jordanian militant Abu Musab al-Zarqawi said Japan would face attacks
unless it followed the example of the Philippines and withdrew its 550
non-combat troops from Iraq.
But another statement later in the day, also claiming to be from
Zarqawi's group, disowned the threat.

India hopes to win hostages' release
Baghdad (Reuters).  India says it is doing all it can to win the release
of 3 of its nat'ls kidnapped by guerrillas in Iraq and has reiterated
that it will not send troops to the country.
In a video aired this wk, an Iraqi group threatened to kill 6 hostages
from India, Kenya and Egypt if the Kuwaiti company they work for does
not pull out of Iraq.
They vowed to behead one hostage every 3 days.
Indian Junior For Min Edaepakath Ahmad says New Delhi is doing
everything it can to seek the 3 Indians' release.
"India has taken a stand of not sending troops to Iraq. We will only
be extending humanitarian assistance to the Iraqi people," Mr Ahmad said.
He says he expects the captors to be sympathetic once they know of
India's position.
The Indian embassies in Baghdad and Kuwait are trying to obtain
details of the men who were taken hostage, he says.
The guerrillas have also demanded that India, Kenya and Egypt withdraw
their citizens from Iraq.
None of the countries are part of the US-led military coalition in
Iraq but many of their nat'ls work as drivers and contractors.
Iraqi interim PM Iyad Allawi said this m he had invited India,
Pakistan Egypt, Oman and Morocco to contribute troops.
New Delhi has built close ties with the US in recent y but has
resisted sending troops, saying it had only sent soldiers abroad as
part of UN peacekeeping forces.
It said last y it could not spare its troops from an insurgency in the
disputed region of Kashmir.

Bush, Rumanian leader discuss Iraq
Washington (AP).  Pres Bush and the leader of Rumania pledged on Wed
to strengthen economic and military ties, help stabilise Iraq and --
on a political note -- win their respective elections this fall.
"We talked about the need to continue to work together to spread freedom
and, therefore, peace in troubled parts of the world," Bush said during
an Oval Office meeting with Adrian Nastase, PM of Rumania, which
joined NATO this y and has 700 troops and civilian contractors in Iraq.
Nastase, who strongly backs the US call for other nations' involvement
in Iraq, said: "Reconstruction, stabilisation, political development
are the key words for the future of Iraq, and we want to encourage the
Iraqi people to take the ownership of their own choices."
On trade, Nastase asked Bush to spread the word that "Rumania is a
good place to invest."
Bush told him that economic relations will improve as market
conditions improve in Rumania.
"American businesses look for places to invest capital where they can
get a reasonable rate of return," Bush said. "American businesses like
environments where there's transparency and strong anti-corruption
rules, where the work force is well-educated and hardworking. ... He
said he's had some good visits with business leaders here in America."
Rumania and neighbouring Bulgaria are struggling to build democratic
societies in a region where corruption is rampant and W values are not
universally held. Both countries, though, have something to offer in
the post-Sep 11 environment -- the use of strategic airstrips and
naval bases on the Black Sea, such as one at Constanta, Rumania,
within striking distance of Iraq and Central Asia.
"I offered the president a 5-star location for military bases,"
Nastase said. "And there will be a decision on that."
Looking ahead to the elections, Nastase said he is ready to run for
president if his party decides that he's the best candidate. The
Social Democratic Party, which Nastase chairs, will choose its
candidate in Aug, the same m that Bush will become the GOP's
presidential nominee at the Republican Nat'l Convention.
"I am going to win," Bush said. "And the PM told me he is going to win."
Then Bush noted Rumania's communist past.
"A person standing for election in Rumania and the US president are
now talking about what it means to campaign -- a conversation which
would not have been taking place 20 y ago," he said.

US death toll in Iraq reaches 900
Soldiers question if they'll be next
Baquba (AP).  An insurgency that just won't die is leaving American
troops in the field wondering if they are going to be next.
"Is it likely we will lose somebody else? Yes, it is," said Capt
Thomas H Johnson Jr, who leads one of the coalition's most
battle-scarred units, based in Baghdad. "But all we can do is be as
ready as possible."
Johnson's soldiers in the 3rd Brigade's reconnaissance team, more than
any others in the US 1ID, know all about being prepared for battle;
their casualty rate is above 25%, including 6 deaths since Apr.
The death toll of US troops killed in Iraq since the war began last y
reached 900 early Wed when another 1ID soldier was killed. His Bradley
fighting vehicle struck a roadside bomb in Duluiyah, 75 km N of Baghdad.
His death followed those of 2 Marines and 2 soldiers, announced Tue by
the military.
North of Baghdad, Baquba has turned into one of the coalition's most
violent battlegrounds since the US-led invasion in Mar 2003. It was
the city where many of Johnson's soldiers with an estimated average
age of 20 y learned the art of war and experienced its deadly consequences.
His forces took part in 3 days of fierce fighting there last m.
Black-clad insurgents, firing machine guns and RPG launchers, shot
their way into a govt office complex, seized 2 police stations and
destroyed the home of the provincial police chief. The US military
said its forces killed 60 guerrillas and lost 2 of their own.
Those battles, plus the Apr 10 death of Sgt Cody Eckhart, 25, killed
when militants fired a RPG at his Humvee, shocked many 3rd Brigade
soldiers, said Sgt 1st Class Jamie Loy, who commands one of Johnson's
quick reaction force platoons.
"After last m's clashes and Eckhart's death, you could see in the
soldiers' eyes that everybody was physically shattered and they were
starting to wonder if they were going to be next and is it all worth
it," said 36-yo Loy, of Ann Arbor, Mich.
"But you can't think about bullets or look at those who died and
think, 'I'm next."'
One of Eckhart's friends, Pte Akio Ellis, said fear and anger ran
through him after Eckhart was killed.
"It also made me more determined to make this Iraqi govt work to make
sure my friend didn't die for nothing," said the 22-yo from Cleveland,
Ohio. "And knowing it can happen to me has made me call home more
often to tell my parents that I love them."
Johnson says he doesn't dwell on the possibility he might be killed,
believing that "this endeavour [in Iraq] is worth our lives."
But he was left distraught after dealing with the consequences of his
comrades' deaths, particularly that of his friend 1st Lt Christopher
Kenny, who died in May with 3 other soldiers when their Humvee rolled
into a canal.
"I gave him CPR and mouth-to-mouth, felt a pulse and was with him on
the way to hospital, where he died," said Johnson during an interview
in his quarters, an air conditioned portable cabin on a dusty military
base on a searing summer's day.
"And all I was thinking about was how I was going to tell his wife,"
he said. "It is the families who suffer most."

Samarra is hotbed to insurgents
6 US soldiers killed in Iraq in 24 hr
7 Iraqis, US soldier killed in fierce fighting overnight between US
soldiers and insurgents in hotbed of Samarra.
Samarra.  7 Iraqis and a US soldier were killed in a fresh bout of
violence around the insurgent hotbed of Samarra Wed as a Filipino
hostage headed home amid controversy over Manila's decision to quit
Iraq to spare his life.
The latest bloodshed erupted as foreign ministers from countries
neighbouring Iraq were meeting in Cairo to discuss the new govt's
demands for help in restoring security on the borders of the ravaged nation.
Fierce fighting flared overnight between US soldiers and insurgents in
Samarra, a restive town north of Baghdad that has been the scene of
frequent clashes during the 15-m revolt begun during the US-led occupation.
Samarra's main hospital said it received 5 bodies and another 8
wounded people from the fighting, which was triggered when a US
military post on the N edge of the city came under attack.
The US soldiers called in air support as they chased down insurgents
holed up in houses and a mosque nearby.
One US soldier was also killed and 6 injured when their patrol hit a
roadside bomb shortly after midnight on a road in Duluiyah, SE of
Samarra, a US military rep said.
The latest casualty brings to 662 the number of US troops killed in
action in Iraq since the start of the US-led war in Mar 2003 and based
on Pentagon figures.
US Central Command reported Tue 2 US soldiers and 2 marines killed in
the restive western Anbar province.
Police also said the mutilated body of an Iraqi scientist and an
unidentified corpse were found in the city in the early hours of Wed.
Samarra, 125 km N of Baghdad, has been the scene of sporadic deadly
clashes since a powerful suicide car bomb attack on Jul 8 on the
city's Iraqi Nat'l Guard HQ killed 5 US soldiers and 4 Iraqi guardsmen.
Meanwhile, a freed Filipino hostage was on his way out of Baghdad to
unite with his anxious family after a two-wk drama that has gripped
his compatriots and frayed Manila's relationship with Washington.
Angelo de la Cruz, who was released freed after his govt bowed to the
kidnappers' demands and pulled its military contingent out of Iraq, is
flying 1st to Abu Dhabi for medical checks before flying on to the
Philippines.
Philippine Pres Gloria Arroyo has strongly defended her decision and
is expected to personally receive De la Cruz when he arrives in Manila.
Although Washington welcomed his release of de la Cruz, it reiterated
its belief that Manila's decision to give in to the kidnappers'
demands was wrong.
"It's good to see that he's safe," State Dept rep Richard Boucher
said. "Our policy on how this came about has certainly not changed."
US Central Command chief General John Abizaid said it was "regrettable
that countries would make decisions that appease terrorists as opposed
to stand up to them," insisting that the US-led coalition remained
strong despite Manila's pullout.
But the withdrawal of the Philippines may be a symbolic blow to the
caretaker govt of Prime Min Iyad Allawi, who has insisted that
multinat'l forces were much-needed in Iraq for the foreseeable future
to restore stability given that Iraq's nascent security forces were
still being formed.
Iraqi security forces have also been the target of a nonstop and
bloody campaign of attacks and car bombs that has killed 100s since
May 2003.
In the latest attack, one policeman was killed and three injured Wed
morning in the N city of Kirkuk when their patrol was targeted by
RPGs, said Lt Hussein Allawi, chief of the al-Aruba police
station in the E side of the city.
In Baquba, NE of Baghdad, 4 members of a special security unit charged
with protecting the country's power installations were injured when
their vehicle hit a roadside bomb, according to hospital attacks.
This comes after 4 veterinarians were killed in a similar attack Tue
nr Baquba.
In the S city of Basra, officials and religious leaders held a
memorial service Wed for Hazem al-Ainachi, a coordinator on the city's
provincial council, who was gunned down with 2 of his guards as they
travelled to work.

Bomb attacks kill 8 in Iraq
Baghdad (AFP).  Bomb and missile attacks have claimed at least 8 lives
across Iraq in the last few hours.  A car bomb in SE Baghdad has
exploded killing at least three people and injuring several more.
Earlier another car bomb exploded nr a hospital in the city of Ramadi,
killing another 3 people.  In the latest attack, 2 people were killed
and several others wounded when a missile hit the 7th floor of a
hospital in eastern Baghdad.

Afghanistan still highest priority -- NATO cmdr
Mons, Belgium (Daily Yomiuri).  US Army Gen James Jones, the supreme
allied cmdr in Europe of the N Atlantic Treaty Organization, told The
Yomiuri Shimbun on Fri at NATO HQ in Mons, Belgium, that NATO's most
pressing commitment is Afghanistan.
He stressed also the necessity of NATO's long-term commitment to help
the Iraqi Army make the transition from troops loyal to former Iraqi
Pres Saddam Hussein to ones that support democracy.
The Yomiuri Shimbun: The NATO summit meeting decided to expand its
mission in Afghanistan.
James Jones: NATO's most urgent commitment right now is still
Afghanistan. So what we are asking for are specific capabilities: 2
battalions for election security; a specific number of helicopters, a
specific numbers of C-130s and the maintenance to go with that. We now
have the capability and we can expand the mission. Right now it is
limited to Kabul. It will expand to the entire N area of Afghanistan
and will comprise 5 or 6 -- maybe even 7 -- PRTs (provincial
reconstruction teams) (to ensure) election security.
How do you evaluate the current security situation in Afghanistan? Is
there more visible activity by the remnants of the Taliban?
That is normal in the run-up to elections. My evaluation of the
security situation is that it is encouraging. I have been several
times to Afghanistan, and the last time I was surprised by how few
references there were to Al-Qaeda and the Taliban. The issues that I
heard mostly were what do you do about governance, the drug problem,
the economy and the warlords, how do you continue to register as many
people (as possible) for the election. Afghanistan is still a very
complex place, but I don't think there is a capacity there to generate
an insurgency of the size we have in Iraq. I am cautiously optimistic.
But why then has the election been postponed?
I do not know why they decided to postpone the parliamentary
elections. This is a political issue and we will deal with that.
How do you assess DDR -- disarmament, demobilisation and reintegration?
There has been some progress -- not as much as perhaps people would have
liked. It is a fundamental restructuring of society and it takes time.
How would you react if Japan were to send troops to Afghanistan?
My reaction would be very positive. Japan is a great nation and an
economically strong nation that could do a lot to assist the efforts
of the reconstruction mission.
French Pres Jacques Chirac has said he is hostile toward a NATO
mission in Iraq. What are your expectations of a NATO role in Iraq?
Political questions aside, there are several ways in which NATO could
help to assist the training and the equipping of Iraqi security
forces. Probably the most important mission in the short term would be
to assist inside Iraq, because that is where you can train forces most
rapidly and make them more useful in a shorter period of time.
There is an outside training mission and I think for nations that do
not wish to provide troops inside Iraq, they may wish to provide
facilities outside Iraq. But the mission will evolve into a mission
that encompasses both activities inside and outside Iraq. The
transformation of the Iraqi forces is really what we are talking
about: how to teach an army that has been working under a dictator for
many years, to do a complete 180-degree shift and learn how to behave
in support of a democracy. It is not done in 6 m, it takes time, but
it is a worthy mission.
Moving on to the Athens Summer Olympics, how is cooperation with the
Greek authorities?
The Greeks have asked for NATO assistance with regard to NATO AWACS
(airborne warning and control systems), maritime security, help with
intel, and providing some chemical, biological and radiological
capability. We have been working on this for a long time so we will be
prepared to respond to the Greek request and I think we will have a
good, successful Olympics.
Is that not a strange mission for NATO?
We provided AWACS for security for the European (soccer) Cup.
We provided AWACS at the request of Spain to provide security over the
skies during the royal wedding. These are serious times involving
serious attempts on nat'l security and the old days of being able to
assume that you could have a sporting event where everybody would just
have a good time, thinking that there be no threat. Sadly, those
(days) are over.
Some people say that NATO is dead.
I categorically reject the idea that NATO is dead. NATO has just
expanded by 7 nations; NATO is in the midst of its biggest
transformation; we have embarked on more operations than ever before
on the global playing field. It is easy to talk about the (capability)
gap between the Unites States and other countries, and there is some
truth to that. If you are going to fight wars all of the time, then
yes. But that is not all what we do. You have to decide what you are
going to do after the war; you have to have some expertise in
stability, security and reconstruction; and there is great experience
in the alliance for doing those things.

US pressing for action against Iran
Washington (AP).  The US is pressing Brit, France and Germany for
strong measures against Iran in response to its violation of a
non-proliferation agreement reached with the 3 last fall, a State Dept
official said.
The issue is part of a deepening American concern over recent Iranian
activities that range from weapons programs to terrorism.
To head off a potential crisis, some analysts believe the Admin should
work harder to promote a dialogue with Iran.
The US believes Iran is developing nuclear weapons, a view reinforced
by Iran's recent decision to resume construction of centrifuges. This
is a key step in the development of a uranium-based bomb, one that
Iran promised the Europeans last fall that it would not take.
It is not clear what the US expects the 3 European Union members to do
in response.
The Admin believes it is imperative that the 3 demonstrate to Iran
that it must suffer consequences for not fulfilling the agreement.
Iran has said it feels no obligation to honour the agreement, alleging
that the Europeans had violated a promise to ensure that the UN
nuclear watchdog group would give Iran a clean bill of health.
Iran insists its nuclear program has nothing to do with weaponry but
with meeting domestic electricity needs.
There are additional American concerns, including word that the
bipartisan commission investigating the Sep 11 attacks has concluded
that Iran gave al-Qaeda hijackers safe passage through the country
after training in Afghanistan.
A Whitehouse rep said on Mon there was no evidence that Iran had prior
knowledge of the Sep 11 plot. The commission report is due out on Thu.
Amid the stepped up accusations about its behaviour, Iran has been
projecting a benign image to the world. Rend al-Rahim Francke, Iraq's
chief representative in Washington, said on Mon that Iran has played a
positive role in the post-Saddam Hussein Iraq.
She said Iranian authorities recently captured 200 Afghan fighters who
were en route to Iraq.
The Bush Admin, in addition to lobbying the Europeans, has been
attempting to persuade all members of the UN's nuclear
nonproliferation agency that it is time to refer Iran's nuclear
activities to the UN Sec Council.
John Bolton, undersecretary of state for arms control, told Congress
last m that the Iranian program was a "threat to internat'l peace and
security." He said Iran's hard-line Islamic regime, now 25 y old,
clearly has a covert program to develop and stockpile chemical weapons
and probably has an offensive biological weapons program.
Until about a y ago, the US maintained a low-key dialogue with Iran,
then decided it was a waste of time.
State Dept rep Richard Boucher said a renewed engagement was possible
only under certain conditions.

South Korea strikes spread to subway
Seoul (Reuters).  S Korean prosecutors have warned unions that leaders
of a subway strike face arrest and they may also detain organisers of
a walkout paralysing the nation's second-biggest oil refiner if work
does not resume soon.
The strikes, this y's instalment of the labour unrest that cripples
parts of the country each summer, pose a fresh test for Pres Roh
Moo-hyun, a former labour lawyer who has been criticised by employers
for being too soft on the unions.
State prosecutors said they would seek warrants to arrest leaders of
the strike by 7,000 subway workers that the govt has declared illegal.
They said strike leaders at LG-Caltex Oil Corp could face similar
action if work did not resume soon. The strike that began on Sun as a
walkout showed no sign of ending quickly.
Economists criticised unions for making excessive demands.
The subway strike in Seoul and in the 3 other main cities of Inchon,
Pusan and Taegu is over wages and union demands to hire more workers
tied to a new 5-day work wk.
The subway management brought in 1000s of replacement workers to
prevent major disruption of the transport system. One of the 2
operators in Seoul ordered all striking workers to return by 11.00 am
[local] on Thu or face punishment.
In Seoul, subway trains were running, although in some cases intervals
between trains were longer than normal.
"The prosecution plans to seek warrants to arrest leaders of the
illegal action," the Supreme Public Prosecutors' Office said in a statement.
"It causes serious inconvenience to the citizens and can cause serious
damage to the economy."
S Korea traditionally sees an upsurge in labour unrest in the summer.
The main issue this y is labour demands for sizeable wage increases
even as working hours are due to fall with the introduction of the
5-day work week.
The subway unions want a wage increase of up to 10% and more workers,
which they say are needed to ensure trains run safely after work hr are cut.
In a separate development on the labour front, police detained on Wed
2 union leaders of S Korea's KorAm Bank, on charges of leading illegal
action during the bank's recent 18-day strike, Yonhap news agency said.
Union members at the country's 6th-largest bank, recently bought by
Citigroup Inc, had been in walkout between late Jun and early Jul,
demanding job security.
* Oil refiner paralysed
The central bank, the Bank of Korea, said confrontational labour
relations were a key obstacle to lifting depressed business investment
in Asia's third-largest economy.
Financial markets took the strikes in their stride. The benchmark
stock index closed over 2% higher and the won strengthened.
Foreign investors frequently cite union action as a hurdle to doing
business and a factor contributing to the relatively low value of
local shares that is known as the "Korea Discount".
Mainstream newspapers and economists were mainly critical of union
demands amid growing concerns the economy may face a sharp downturn if
consumption fails to take off before exports slow.
"All the Korean people cannot but sigh and deplore as they always have
to watch and suffer those absurd serial strikes by big unions," the
conservative Chosun Ilbo said in an editorial.
Hank Morris, director of Industrial Research and Consulting Ltd,
agreed: "I think the Korean public ...  probably thinks it's not reasonable."
Oil refiner LG-Caltex Oil said it had started test operations at one
of its main crude distillation units (CDU) and a secondary unit after
mobilising substitute workers to restart its refinery.
That dispute over wages entered a 4th day with no sign of union and
management restarting talks.
LG-Caltex, a 50:50 joint venture set up in 1967 between S Korea's LG
Group and ChevronTexaco Corp, produces 650,000 bpd and accounts for a
quarter of domestic refining capacity.
It has about the same proportion of the oil market.

Parliament urges Arafat to accept PM's resignation
Gaza (Reuters).  The Palestinian parliament has urged Pres Yasser
Arafat to accept PM Ahmed Qurie's resignation and appoint a new
cabinet to carry out reforms to stop a spiral into chaos.
Lawmakers at a crisis session, which followed the shooting of a
long-time critic of Mr Arafat on Tue, voted overwhelmingly in favour
of a resolution criticising Mr Qurie's govt for failing to keep law
and order during a recent wave of unrest.
Mr Qurie submitted his resignation on Sat over chaos in the Gaza Strip
but Mr Arafat refused to accept it.
The vote came in the midst of a Palestinian leadership crisis sparked
by unprecedented Gaza protests for anti-corruption reforms -- the
sharpest internal challenge to Mr Arafat since he returned from exile
10 y ago.
The power struggle pits Mr Arafat's old guard against a younger
pro-reform generation staking out turf before Israel implements a plan
to evacuate Jewish settlers from the Gaza Strip in 2005. Some
Palestinians fear the strife could turn into civil war.
Lawmakers convened on Wed to debate a resolution presented by a
committee that had been sent to Gaza to look into the causes of a
weekend of violence there.
They voted 43-4 to adopt the recommendations, which included Mr Arafat's
dissolution of Mr Qurie's cabinet and appointment of a govt "capable
of carrying out its responsibilities" -- a veiled demand that the veteran
leader invest it with security powers he has so far been reluctant to cede.
Mr Qurie has grown increasingly frustrated over Mr Arafat's refusal to
allow him to reform institutions widely seen as corrupt and a jumble
of security services ridden by cronyism.

Govt criticised for W Bank barrier vote
Canberra.  The Democrats and the Greens say AUS has undermined its
internat'l standing by voting against a UN resolution demanding Israel
dismantle its W Bank barrier, but the Govt has defended its stance.
Labor says AUS should have joined the 10 countries that abstained from
the vote, because of the complex issues involved.
UN Sec-Gen Kofi Annan says Israel should take note of the General
Assembly resolution for it to pull down part of the barrier.
The UN resolution was drafted after the Internat'l Court of Justice
(ICJ) ruled the barrier illegal for cutting into Palestinian land.
It was passed with the backing of 150 nations but AUS voted against it
alongside Israel, the United States and 3 other countries.
Democrats Sen Natasha Stott Despoja says that is unfortunate.
"I think there'll be a lot of countries that view AUS's position with
concern, if not contempt," she said.
Greens Sen Kerry Nettle says the decision is embarrassing.
"It does nothing for our standing in the internat'l community," she said.
PM John Howard says AUS was right to vote against a U-N resolution
demanding Israel dismantle its W Bank barrier.
"We may have been in the minority but we are right," he said.
"Israel does have a right to protect herself and you can't hope to
have any kind of lasting settlement in the Middle E until there is an
understanding that those suicide attacks have got to stop."
FM  Alexander  Downer also says AUS did the right thing.
"It isn't reasonable to tell the Israelis that they can't erect a
security barrier to protect the people of Israel from suicide
bombers," he said.
Speaking in NY, Mr Annan pointed out that though the ICJ's decision
was not legally enforceable, it had a moral bearing on what Israel does.
"Obviously they don't like it, but the Israeli [Supreme] Court itself
also came up with a decision on the route of the barrier, and asked
them to change it because of its impact on the Palestinians," he said.
"So one cannot say that the internat'l court was entirely wrong, I
think they should heed and pay attention to the court's decision. Even
though it is not enforceable, it has some bearing on what they do."
Palestinian rep Saeb Erakat welcomed the UN's vote and called on the
body to follow it up with action.
"The wall cannot stand and we hope that the internat'l community will
exert every possible effort to have the Israeli govt comply with this
resolution," he said.
Israel has brushed off the criticism and said it would continue
constructing the 700 km long barrier, which the Govt said had cut
Palestinian attacks by 90%.
Israeli rep Dore Gold, a snr advisor to Israeli PM Ariel Sharon, says
the resolution is a dangerous one.
"One has to understand what this new UN decision does, it essentially
is telling Israel to remove the shield protecting its citizens while
doing nothing tangible about the lethal sword of terrorism that has
been drawn by the Palestinian groups," he said.

Students forgo US visits
Crackdown on visas, intense security put crimp in overseas travel.
LA (Sacramento Bee).  Infected by a biting sand fly in the deserts of
Iraq, 100s of American soldiers are nursing unsightly sores known as
the "Baghdad boil."
One of the world's leading experts on the fly -- and the
disease-causing parasite it injects -- conducts his research at the
Uni of California, Davis. But America's stepped-up visa scrutiny is
preventing Dia-Eldin Elnaiem from gathering the most critical
component of his research: the sand flies themselves.
After Elnaiem, a Sudanese nat'l, was stranded in Brazil for more than
6 m awaiting permission to re-enter the country. He has become too
fearful to travel abroad to collect samples or assume a coveted
position in the World Health Organization.
His plight mirrors 1000s of internat'l students and scholars afraid to
travel, delayed overseas or denied entry because of intense security
screening since Sep 11, 2001.
The terrorist attacks and subsequent investigation into how they
occurred exposed holes in an unwieldy exit and entry system that
allowed visitors to abuse the terms of their visas.
Some who came to America on student visas never enrolled upon arriving
-- and the system for monitoring their whereabouts was spotty. Others
did enrol but stayed long after they were supposed to leave -- again
with little consequence. At least one of the Sep 11 hijackers entered
the country on a student visa but didn't attend the college to which
he applied.
The govt cracked down, becoming more selective about which students
and scholars could obtain visas and more vigilant in tracking them
after arrival.
The idea was to keep out terrorists. But the impact is hitting 1000s
who want to come to America for education and research opportunities,
as well as the foreign scholars already here.
The fallout could reach beyond college campuses, stifling scientific
breakthroughs and good will with foreign partners. It could
reverberate in American households and as far away as the deserts of
Iraq, where more than 600 troops have contracted the sand fly disease
known as leishmaniasis.
"I thought that this is the place if I want to make a significant
impact," Elnaiem said, seated in his tidy apartment in Davis, Calif.
"But I've been handicapped by the new laws."
For most students and scholars, the stressful visa process is not a
one-time ordeal. Depending on which country they're from, they might
endure multiple reviews: when they initially apply and each time they
wish to leave and re-enter the country.
Under the new requirements, the State Dept last y issued nearly 86,000
fewer academic visas to internat'l students and scholars than in 2001.
The new policies include in-depth security checks, which take into
account an applicant's country of origin, field of study and personal
and financial circumstances. One of the highest hurdles is the
requirement that applicants undergo face-to-face interviews at a US
embassy or consulate overseas, a rule officials began enforcing last Aug.
That's been especially tough for students from countries such as
China, a huge expanse with just 5 US offices.
In a Mar survey of 113 graduate schools, more than 3/4 reported
declines in applications from China. Many Chinese students instead are
opting for universities in England, AUS and Canada.
Universities have tried to prepare students for delays by publicising
the govt's "technology alert list" of subjects that will spur additional
screening. The list includes chemical engineering, nuclear technology,
robotics and urban planning.
Stuart Patt, rep for the State Dept's Bureau of Consular Affairs, said
the list never was meant for public distribution and since has been
revised. He wouldn't divulge which subjects are currently highlighted.
About 80% of the time, Patt said, applicants subject to field-of-study
reviews receive an answer within a m.

Canadian PM pledges to decriminalise marijuana
Ottawa (AFP).  PM Paul Martin has pledged to reintroduce legislation
this year to decriminalise the possession and use of small amounts of
marijuana.
There had been rumours that, under pressure from the US, the new
Martin Govt would let the legislation fall.
Parliament failed to get the legislation through before it was
dissolved prior to the Jun 28 election which saw Martin's Govt
re-elected, but without a majority in Parliament.
Meeting with reporters after the 1st formal meeting of his new
cabinet, Mr Martin said "the legislation will be reintroduced this fall".
His statement came as a govt agency, Statistics Canada, revealed that
the proportion of Canadians aged 15 or older who say they had used
marijuana has nearly doubled in 13 y.
The report says that an estimated 3 mn Canadians reported using
cannabis at least once in the y before the survey was conducted in 2002.
That represents 12.2% of Canadians aged 15 and older -- compared to
just 6.5% in a similar survey in 1989.
The latest study shows that more than 10 mn Canadians, or 41.3% of the
population aged 15 or older, reported trying marijuana at least once
in their lifetime.

Albania's Aussie queen laid to rest
Tirana (AFP).  The funeral of an Aussie woman who became Albania's
queen-in-exile has taken place in the Albanian capital Tirana.  Susan
Cullen-Ward, also known as Queen Susan, died of lung cancer at the
royal residence in the outskirts of Tirana over the weekend.  Queen
Susan, who studied and taught nr Orange in the central W of New S
Wales, met the Albanian King Leka Zog at a dinner party in SYD.  The
couple married in 1975.  She is survived by her husband and their
22-yo son, Prince Leka Junior.  Albania's royal family fled its
homeland in 1939 following the Italian occupation.  Albania's post-war
communist leadership abolished the monarchy, but the royal family was
invited to return 2 y ago.

Vic police swim the English Channel twice
Dover, England.  6 Vic police officers have achieved a world 1st by
successfully completing their double crossing of the English Channel.
The officers, who were swimming for charity, arrived at Shakespeare
Beach, SE of Dover Harbour, just before midnight, Aussie time.  They
are the 1st police team to swim the Channel twice.  The trip was
completed in just under 25 hr, without wetsuits or protective cages.

Woman hopes photo sheds light on outback mystery
Brizzy.  A WA woman says she is confident that she has taken one of
the 1st photographs of a Min Min light in outback Qld.  The small,
bright, dancing light is one of AUS's oldest natural mysteries.  Janet
Burgin took the photo when she was in Boulia last y and has since had
it tested.  She says experts are baffled and she thinks it is a Min
Min light.  "There has to be some truth in it," she said.  "There's
too many unexplained sightings by too many people for there not to be
something in it. It's a phenomena that no-one can explain."
Meanwhile, Professor Jack Pettigrew, of the University of Qld in Bris
claims the lights are actually an inverted mirage of light sources
which are, in some cases, 100s of km away over the horizon.  His work
was published last y in the current issue of Clinical and Experimental
Optometry.  Professor Pettigrew studied the phenomenon in W Qld where
he said it has been disturbing the locals for many years.

Bailed boxer to compete in Athens
Adelaide.  It has been revealed that AUS's best hope for an Olympic
gold medal in boxing is on bail for a violent home invasion.
The charges against 27-yo Peter Wakefield, from the northern Adel
suburb of Craigmore, have been deferred until well after the Olympics.
Wakefield is one of 3 men charged over a violent home invasion at Para
Hills W 2 y ago.
They were to stand trial this m but that has been put off until Jun
next year, prompting SA Prem Mike Rann to ask for a report from the
A-G into the matter.
Wakefield has been granted bail conditions that allow him to travel to
Athens.  However, he must report to police within 24 hr of his return
from Athens.
The Aussie Olympic Committee's media director, Mike Tancred, says
Olympic officials did not know about the charges and were not party to
having legal proceedings adjourned.
But he says Wakefield is entitled to be selected because it is a
criminal matter that has not been proven.
Boxing AUS's chief Grant Peters said Wakefield has maintained his
innocence and there are no issues with his participation.
"It's a decision that the courts have made to defer the case. It's got
nothing to do with Boxing AUS at all," he said.
Wakefield last wk told ABC TV's Stateline that he was keen to go to
Athens where he is considered a hot medal favourite.
"I want to get that gold, bring it back to AUS...be the first one to
ever do it," he said.
Wakefield is currently training in France and will join the team in
Athens in about a fortnight.
He would not comment when contacted by the ABC today.

David Jones shares jump after profit increase
Sydney.  Shares in retailer David Jones have jumped 8% after the
company announced a 20% increase in its forecast profit.  David Jones
says its mid y clearance sale exceeded expectations and continued the
strong sales trend experienced in the 3rd quarter of the financial
year.  Investors have pushed the share price up by 14 cents to $1.87.
The overall share market is down sharply this morning.  Just before
midday, the All Ordinaries Index was down 28 points or almost 1% to 3,500.

Review launched into ASX website security glitch
Sydney.  The ASX has launched an internal review after a glitch in
part of its website allowed people to view other investors' details.
The problem happened for about 15 minutes this morning on the
website's "My ASX" section.  Some investors who logged in were greeted
with another person's name, postcode, email address and their personal
share watch list, but they were not able to change any of the info.
Stock Exchange rep Gervase Green says the incident will be
investigated.  "Of course we'll do an internal review as a matter of
urgency to just make sure for our own sake that, in particular users,
that there was no loss of security in any way or any problems like
that," he said.  "We certainly don't know of anything like that but
clearly we check these things and then we triple check them."

Former white supremacist leader denies Perth attacks
Perth.  The former head of the white supremacy group the Aussie
Nat'list Movement (ANM) has again denied he is behind a wave of racist
attacks against Jews and Asians in Perth despite an alleged member of
the group being arrested by police.
Another 2 men have been charged over a racist graffiti attack on a
synagogue in the Perth suburb of Menora at the weekend.
They are 26-yo Daniel Klavins from Attadale, who police claim is a
member of the ANM, and 20-yo Frank James Lemin, from Leeming.
They have both been charged with one count of criminal damage.
Jack Van Tongeren set up the ANM and spent 13 y in jail for
fire-bombing Asian restaurants in the late 1980s, but was angry last
night when informed one of those charged was being linked to his group.
"Stop it, it's as simple as that. I never gave orders to do that, and
the orders are now, whoever is doing it, to just stop it," he said.
A total of 4 men have now been charged for the attack on the synagogue.

Court told Bakhtiyari boys should live freely in AUS
London.  The barrister representing 2 boys who escaped from the
now-defunct Woomera Detention Centre, in SA in 2002, has told a Brit
court they should be able to live freely in AUS.  The Bakhtiyari boys
sought protection in the Brit Consulate in MEL after their escape but
an intervention by Brit's Foreign Secretary Jack Straw saw them
expelled and returned to the Woomera Detention Centre.  The boys'
counsel, Lord Kingsland QC, has told the Court of Appeal in London
that Mr Straw's action violated their human rights.  He has asked the
court to rule that the boys, who are now living in detention in Adel,
be allowed to reapply for diplomatic asylum and Foreign Office
officials instructed to negotiate their permanent settlement in AUS.
The court has retired to consider its judgement.

Defence probe possible radioactive contamination
Canberra.  The Defence Dept is looking into whether 2 of its bases have
been contaminated by radioactive material.  The investigations have
been running for 12 m at the Royal Aussie Air Forces bases at
Richmond, in W SYD, and Amberley in Qld.  The review is hoping to
assess whether past disposal practices such as burying radioactive
waste were appropriate.  The dept says a report on the findings of the
investigations will be made public.

Greenpeace hails company pullout
Brisbane (AAP).  A decision by Qld Energy Resources Ltd (QERL) to wind
down its controversial shale oil extraction operation nr Gladstone
spells the end for the project, according to environmental group Greenpeace.
QERL on Wed presented the closure of Stage 1 as a precursor to further
research for the next phase of its Stuart program in Qld, however
environmental group Greenpeace said it was confident the project had
run out of steam.
QERL does not currently have environmental permission from state or
Fed Govt to proceed beyond stage 1.
"Stage 1 is not a success, it's more than 4 years behind schedule and
more than $130 mn over budget, has had repeated technical problems,
has never run at full capacity and has never made a profit despite
being propped up by mn of dollars of govt subsidies," Greenpeace
climate campaigner Gareth Walton said.
He said the Fed Govt had supported QERL over tapping into the shale
oil deposit, reputed to hold 17 bn barrels of oil.
"Shale oil is an environmental nightmare and the closure of the Stuart
Project makes it more difficult for a shale oil industry to be
developed in AUS," he said.
"The closure of Stage 1 is a clear indication that there are
fundamental problems with extracting oil from shale rock, otherwise
Stage 1 would still be operating."
Meanwhile, having stood down 100 operational staff, QERL chairman Ross
Dunning said he was confident in the future of the company.
"Over the past several years, Stage 1 has produced over 1.5 mn barrels
of oil. This success shows that large volumes of oil can be produced
from the Stuart deposit," he said.
The stage 1 plant will be maintained in an operable condition but will
be wound down over the next few months, Mr Dunning said.
QERL retained most of the staff of the failed Southern Pacific
Petroleum NL (SPP) when it bought most of it from Texan oil investor
Jeff Sandefer in Feb.
"All [QERL] employee entitlements and other commitments will be paid
in full and we are committed to supporting our employees during this
period," Mr Dunning said.

Govt cuts level of sulphur in petrol
Change will cost industry mns.
Canberra.  The Fed Govt has announced measures to cut the level of
sulphur in petrol.
Sulphur in regular unleaded petrol is already being reduced and the
Govt has decided to also cut emissions from premium unleaded and
diesel fuel.
Fed Environment Min Ian Campbell says it will be the biggest single
measure that a govt in AUS has taken to reduce urban pollution.
Sen Campbell says the fuel industry will have to invest in 100s of
$mns of new refining equipment to meet the stricter standards.
"It will massively reduce the amount of pollution going into our
environment, massively reduce the levels of sulphur in particular,
which is one of the biggest pollutants," he said.
"It will reduce the smog that engulfs some of our cities at certain
times of the year, it will be an enormous benefit to a couple of mn of
Aussies who suffer from asthma from other respiratory diseases."

Gunns accused of embarking on 'land grab'
Hobart.  Tas's biggest private timber company Gunns Limited has
increased its number of land titles by about 17% in the past 12 m.
There are claims that Gunns has embarked on a "land grab" to provide
timber for its planned $1 bn pulp mill while maintaining its woodchip
exports.
Inquiries by the ABC show that Gunns now holds 675 land titles in Tas.
The company is already Tas's biggest private land owner and since Jul
last y it has acquired 100 titles, while selling 13 others.
Tasn Greens leader Peg Putt says Gunns is on a "land grab" and not
just for its proposed pulp mill.
"Some of those plantations may well be in joint venture with their
Japanese customers who would expect woodchip to keep going to Japan,"
she said.
Gunns' executive chairman John Gay says that is ridiculous.
"Gunns aren't on a land grab -- we are buying land all the time for
our forestry business and our wine business," he said.
Mr Gay says Gunns has acquired only a few leases for publicly owned
land from Forestry Tas in the past 12 m, totalling 1,500 to 2,000 ha.

Downer urged to focus on job, not ALP
Canberra.  The Fed Opp'n has accused Alexander Downer of spending too
much time commenting on the ALP and not enough time on his role as For
Min.  Mr Downer has repeatedly attacked Labor's promise to withdraw
AUS's troops for Iraq by Christmas.  He says the pledge has sent the
wrong message to terrorists operating there.  But Labor's Kevin Rudd
says the Opp'n stands by its promise, and he has urged Mr Downer to
refocus on his own job.  "What we have is a foreign minister who
prefers to act as a continuing domestic political commentator on the
Labor Party, rather than exercise his proper functions as a foreign
minister in response to the major policy challenges we face today,
right across the region, including the humanitarian crisis in Sudan
which is unfolding each day," he said.

Costello tips Sep, Oct election
Canberra.  The Fed Treasurer says he expects the election to be held
in Sep or Oct.  Peter Costello also says the poll will not be in Aug
and will probably be held before the US Presid'l election on Nov 2.
The PM has said he expects Fed Parliament to resume as planned after
the winter break in Aug and has already ruled out two weekends in Sep
because of football grand finals.  Mr Costello has told S Cross Radio
that the time-frame for the election is narrowing.  "I don't think
it'll be in Aug, because it looks like we're going back to Parliament
in Aug, so what that means is Sep or Oct," he said.

ATO cracks down on DIY super funds
Canberra.  The Aussie Tax Office (ATO) is cracking down on 100s of
1000s of members of self managed superannuation funds.
The office is concerned about the number of people breaching
superannuation rules, particularly relating to the use of super funds
to purchase personal assets.
Deputy commissioner of taxation Mark Jackson says people have to
understand that benefits from the "do-it-yourself" funds are to be
used after retirement.
"The sorts of things that we are concerned about are people having the
assets of their funds mixed up with the assets of their business or
personal assets," he said.
"People who are buying properties from the assets of the funds and
then using those properties themselves, people who simply are not
lodging returns and taking care of their respective procedural obligations."
Meanwhile, the Fed Treasurer has hinted he is considering new laws to
ensure people wanting to change superannuation funds are not hit with
large exit fees when they leave their current scheme.
Laws recently passed by Parliament allow choice in choosing a
superannuation fund, but some people have complained about steep
charges when they have tried to quit their current provider.
Peter Costello says he is hopeful he can convince fund managers to
drop the exit fees, but says many deny they charge them.
The Treasurer has told S Cross Radio he may take action against those funds.

Latham to enforce fair pricing for dairy farmers
Sydney.  The Fed Opp'n Leader has unveiled plans to help the diary
industry while campaigning on a farm in regional NSW.
Mark Latham says a Labor govt would make the existing voluntary
retail grocery code enforceable to provide fair pricing for dairy
farmers and to ensure contracts with wholesalers are balanced.
He says Labor would also ensure the code allows compulsory mediation
for both parties in a dispute.
Mr Latham says Labor would also strengthen the Trade Practices Act to
provide support for collective bargaining to improve the market power
of dairy farmers and to explicitly ban predatory pricing.
Labor would also instruct the Productivity Commission to carry out a
review of the milk processing and manufacturing sectors.
Mr Latham is not worried about upsetting AUS's big 2 grocery chains,
Coles and Woolworths, with the new policy.
Under the plan, Labor would also ban predatory pricing and introduce
penalties for the abuse of market power.
Mr Latham says since the dairy industry's de-regulation, farm gate milk
prices have dropped and large grocery chains' profits have increased.
"They need to recognise that they've had the strength of market power,
76% market share for the big 2 is the most concentrated grocery sector
in the W world," he said.
"Why is it that AUS is so out of step?
"It is time to change the balance of market power, get fairer arrangements
in place and produce a fairer price for produce and the dairy farmer."

Labor to revisit E Timor gas deal
Canberra.  The Fed Opp'n leader says a Labor govt would go back to the
drawing board in negotiations with E Timor over the Sunrise gas field.
AUS is in dispute with E Timor over maritime boundaries and oil and
gas reserves, and royalties in the Timor Sea.  Mark Latham says the
Govt has failed in its negotiations with East Timor and has told
commercial radio 2LM in Lismore in northern NSW that talks need to be
restarted.  "Our starting point is to recognise that if E Timor goes
broke that's bad for AUS," he said.  "We don't want a failed state on
our doorstep, we have an Aussie interest in the viability of E Timor
so I think we've got to conduct these negotiations in good faith.  "If
we come into govt we'll have to start again because from what I can
gather there's been a lot of bad blood across the negotiating table
and you know we've got to get it right."

Teenager charged with sexually assaulting boy
Sydney.  A SYD teenager is in police custody charged with several
counts of sexually assaulting a 5-yo boy.  The alleged incident
occurred at a shopping centre at Chulora, in SYD's SW, on Mon
afternoon when the boy was lured into a disabled toilet.  About 7 pm
yesterday, a 17-yo went to a police station where he was charged with
2 counts of aggravated sexual assault, one count of aggravated
indecent assault and one count of detain for advantage.  The teenager
is due to appear in Cobham Children's Court this afternoon.

Teen refused bail after allegedly sexually assaulting boy
Sydney.  A 17-yo youth charged with the sexual assault of a 5-yo
boy at a shopping centre in SYD's SW has been refused bail.  Police
allege the 5-yo was approached by a male at the Chullora Shopping
Centre and lured into the disabled toilets where he was assaulted.
Around 7.00 pm yesterday, the 17-yo went to a police station where he
was charged with 2 counts of aggravated sexual assault, one count of
aggravated indecent assault and one count of detain for advantage.

Search takes off for missing plane
Brisbane.  Police and emergency services are searching for a plane
believed stolen from the St George aerodrome in S Qld.  Jones Air last
night reported that the plane was missing, but police have since
learnt that the blue and white Cherokee has been gone since yesterday
morning.  Police rep Simon Kelly says it is believed the plane has
about 5 hr of fuel on board.  "The search area is currently
focused on an area 150 nautical miles around St George," he said.
"Police believe the person flying the plane does not have a pilot's
licence but is familiar with aircraft."  The Qld Police Service has
called in the emergency services helicopter, and Aussie Search and
Rescue authorities are assisting.

Missing plane found crashed
Brisbane.  Searchers have found a plane missing from St George in S
inland Qld.  It has crashed.  An injured man has been found in the
plane.  He is being treated at the scene and will be taken to St
George Hospital.

Whaling resolution hailed as victory for animal welfare
Rome (Reuters).  Whalers should strive to limit the suffering of the
giant sea mammals they kill, the Internat'l Whaling Commission (IWC)
says in a resolution hailed as a victory for animal welfare.
In the 3rd day of talks that whaling nations hope will pave the way to
end an 18-yo ban on commercial whaling, the anti-whalers showed they
were still in the majority when the intergovt'l body passed the motion
by a 29-22 vote.
"Current whaling methods do not guarantee death without pain, stress
or distress," said the resolution, which could lead to new killing
standards aimed at reducing the time whales live after being harpooned.
Campaign groups say the average time until death is 2 minutes, with
some whales surviving for hours after being hit by grenade-loaded
harpoons, the usual hunting method.
"This is a real victory for whale welfare," said Peter Davies of
Whalewatch, a coalition of lobby groups.
"We are delighted that the IWC has agreed that cruelty can no longer
be tolerated and that committed action should be taken to stop it."
Japan, Norway and Iceland, which kill some 1,400 whales a y despite
the ban, voted against the motion.
They argued that whaling is not excessively cruel and that the IWC
should concentrate on conservation rather than animal welfare.
New Zealand Conservation Min Chris Carter, who proposed the motion,
said he wanted to end all whaling, but while it continued the IWC
should strive to make it less cruel.
"I certainly would like to see no whales being killed anywhere in the
world," he told Reuters.
"But I accept the reality of whaling and so let's at least try to do
it more humanely."
* Bigger battle ahead
While whaling nations lost the battle on animal welfare, they hope to
win a more important one before the end of the IWC's annual meeting on
Thu -- one they hope will lead to the end of the whaling ban in place
since 1986.
Delegates must decide whether to push ahead with a draft system for
monitoring adherence to any future whaling quotas.
Pro-whalers say some whale species are now abundant and would not risk
extinction under a sustainable and well monitored quota system, making
the ban unnecessary.
That view is fiercely opposed by hard-line anti-whalers such as New
Zealand, AUS and Brit, which say lifting the ban is a separate matter
that should only be considered after a sound whaling management system
is in place.
The system itself is unlikely to be agreed this wk as that would
require a 75% majority.
The IWC's Danish chairman, Henrik Fischer, hopes delegates agree to
work towards a final deal at the body's next meeting in Pusan, S Korea
next y.
The talks were slowed down by a row between Japan and a campaign group
which had accused it of "vote buying" by enticing developing countries
to join the IWC and support its position.
Whaling commissioners met in several lengthy closed-door sessions to
discuss possible sanctions against the Internat'l Fund for Animal
Welfare, which made the allegation.
4 of the 6 new members joining this y, Tuvalu, Mauritania, Ivory Coast
and Surinam, have voted in line with Japan's position.
Japan denied any impropriety but says it does help those countries and
many others with development aid.

Norwegians under fire for whaling plan
Canberra.  Fed Environment Min Ian Campbell has criticised a Norwegian
plan for regulated commercial whaling which Norway says would reduce
the overall whale catch.  AUS and NZ have failed in another attempt to
establish a whale sanctuary in the S Pacific at a meeting of the
Internat'l Whaling Commission in Italy.  At the same time, Norway and
Japan have announced further increases in their whale catches for next
y.  And a lobby group partly funded by the Norwegian Govt has called
for agreement on a level of regulated commercial whaling but Sen
Campbell opposes the plan.  "I think it's an absurd cover up of their
agenda which is to take more whales," he said.  "AUS opposes whaling
and believes there should be an end to commercial whaling and if the
Norwegians genuinely believed that whaling take should be reduced then
they can agree to do that either unilaterally or in agreement with
Iceland and Japan."

{{
Midnight.
There have been chaotic scenes in Kabul at the trial of 3 Americans
accused of running a vigilante gang.  3 Afghans who were detained by
the gang gave testimony today.  One said a plastic bag had been placed
on his head and he'd been doused with boiling water.  One of the US
accused dismissed the charges against him.  The case is now delayed by
15 days after a request from def lawyers.  One of the accused said the
group was working with the direct knowledge of US Def Sec Rumsfeld.
Washington has denied that.

0.30 am
Brit Def Sec Geoff Hoon has announced the Brit military is to be cut
and at least one RAF base closed.  4 battalions in all will go.  3
naval destroyers are to be retired, along with 3 frigates.  1 RAF
squad is to be eliminated and a base closed.  The cuts will reportedly
save $US5 bn.  The savings will allow more investment on the latest
tech to boost front-line forces, said Hoon.  He said the changes were
"essential" to take the Brit military into the C21.  Hoon has
indicated the Brit military will move toward integrating more closely
with US forces, along with a greater capability for operating at
greater distances from the UK.

0.45 am
Iraqi police say 3 people have been killed when a bomb exploded in S
Baghdad.  Elsewhere, at least 2 people died when rockets were fired
at a hospital in the capital.

6.00 am
Oil is trading higher at $US40.58/bbl, on unexpected news of only 3 mn
bbl of US reserves.  Wall St closed down, on news of slowed earnings
growth.  The Dow was strong immediately after Greenspan's words, but
closed down 103 at 10,046.  The Nasdaq dived 2.5% .  In London, the
FTSE ended up 38 on stringer telcos.  The Dax was up 1%.  The AUD is
down another 1 c at 71.45 US c.  Gold fell almost $5 to $US396.65/oz.

A prev unknown group of Iraqi insurgents say they'll execute 6
hostages unless the hostages Kuwaiti employer pulls out of Iraq.  3
Indians, 2 Kenyans and an Egyptian driver are being held by the group.
None of the countries have troops in Iraq.  All 6 were shown on a
video together, apparently speaking freely.  1 is to be executed
every 72 hrs, according to messages b'cast on al Arabiya TV.

8 Iraqis have been killed in bombings and small arms attacks in the
last few hrs.  [Later reports say at least 12 killed in Baghdad,
alone].  There was a bomb attack in Ramadi. It claimed at least 2
lives.  Unlike most attacks, there was no obvious target. The bomb
exploded in an alley.  It may have exploded prematurely, say police.
The US military has denied police reports from Ramadi that a chopper
had been shot down, killing 3 US soldiers.  The US says no choppers
have been downed.

Afghani police in the N say they've found a large weapons cache, incl
12 time bombs.

Paris. Authorities evacuated the Eiffel Tower after a phone threat
that a plane would hit it.  The evac took 40 mins.  After 2 hrs, the
call was judged a hoax.

The AUS Greens and Dems say the Howard Govt has put the country in a
difficult position in voting against the UNGA Res calling on Israel to
remove its wall from occupied territories.  FM Downer has defended the
decision, claiming the current route is the only one possible to prove
Israeli security.  AUS was 1 of only 6 countries -- incl Israel and
the US -- that voted against the Res.  The Opp'n and minors say AUS
should have abstained because of the complexities of the sit'n.

6.30 am
UN Sec-Gen Annan says while the UNGA Res against the barrier was not
legally enforcable, it has a moral bearing.  In Israel, PM Sharon said
the construction would continue .  He summoned 3 key EU ambassadors to
complain about their support for the anti-barrier Res.

Perth police have now arrested 4 men in connection with a graffiti
attack on a synagogue.  One of the men is a member of a white
supremacist group.

6.45 am
There's renewed fighting in Ramadi.  US forces have also been "engaged
with insurgents" in Samarrah.  A US military rep said there was a "lot
of tension" in the city, and many 1000s of residents are leaving.
There are concerns Samarrah could become another Fallujah, said the cmdr.

Midday.
A new hostage crisis has erupted in Iraq just a day after a kidnapped
Filipino was freed, with militants saying they had seized 3 Indians, 2
Kenyans and an Egyptian and are threatening to kill them one by one.

Bomb and missile attacks have claimed at least 8 lives across Iraq in
the last few hours.

It has been revealed that AUS's best hope for an Olympic gold medal in
boxing is on bail for a violent home invasion.

The Fed Govt and the Opp'n say they would not negotiate with
terrorists if an Aussie were taken hostage in Iraq.

The US Army has long lured recruits with the slogan "Be All You Can
Be" but now soldiers and their families can receive plastic surgery,
including breast enlargements, on taxpayers' money.

US Pres George W Bush has given the green light to US arms sales to
Iraq's interim govt, which faces deadly insurgent violence nearly one
m after assuming power.

US food technologists have invented dried rations that a soldier can
rehydrate by using dirty water or even his own urine, the Brit weekly
New Scientist reports.

7 pm
The US military says it's killed 25 guerrillas in Ramadi.  13 Coal'n
troops were wounded in renewed fighting there.

9.30 pm
CBR. Flood's findings clear the govt, but recommends changes to intel
services.  The PM says he's been vindicated.  Former diplomat Philip
Flood concludes there was no pressure on intel services.  But there
was a failure of intel on Iraq's WMD.  He recommends greater
parliamentary scrutiny of the intel services [!!!???], a doubling of
staff and budget of ONA, more dissenting views within the intel
services, more reports, and more Arabic-language staff.  Flood also
found no evidence of a pro-Indon lobby in Aussie intel.

The 9/11 Commission has recommended extensive reforms to US intel
services.  This will be the biggest change since the service was
created, say observers. [Other observers say that like other
tension-reducing US inquiries like the Pearl Harbour inquiry, the
Kennedy assassination, and others -- the 9/11 report will eventually
gather dust on a shelf].

There's been a wave of clashes across C Iraq.  A US Marine died when a
vehicle was blown up nr Baghdad -- he became the 900th US soldier
killed since Mar last y.  The new hostage crisis continues.  In a new
video -- released tonight -- the 6 hostages are shown pleading for
their lives.  Elsewhere, a Phil truck-driver has been given a hero's
homecoming.  The Arroyo govt has again defended its decision against
criticism from the US and AUS.

The AUS govt says it's thinking about armed guards for Oly athletes.
The latest news says Greece has buckled to foreign demands and allowed
foreign security forces to carry arms.  Greece still says it's made no
secret deals.  But the Times says the US will send 100 armed guards,
and an armed FBI hostage rescue team.  The paper also says the
agreements have been kept secret to protect Greek pride.  The US will
also send 400 special forces under the NATO banner.

Kabul. With presid'l elections coming up, 3/4 of the estimated 10 mn
eligible voters are now registered.  But security is worsening in
large parts of the country, with attacks on the increase.  The Taliban
is determined to wreck the polls.  There are daily attacks across the
country.  Gen Rick Miller says NATO support will arrive in time for
the Oct election.  But the security vacuum is not going away.
Women's participation is particularly under attack by holdouts from
the former regime.

Javier Solana has flown into a political storm over the EU vote
against the Israeli barrier in the UNGA.  Sources close to Sharon say
Solana will be told Europe can't any more expect to play a part in the
peace process.  It was one of original road-map quartet.

Israeli troops have destroyed 10 homes in Gaza.  Solders say they
were looking for tunnels used to smuggle weapons.  2 tunnels were
reportedly found in Rafah.  A metal workshop in Khan Younis was also hit
by 2 Israeli rockets.  It manufactured weapons says the Israeli military.

There's been a mixed response to the AUS vote in the UNGA on the
Israeli barrier.  150 countries voted "yes".  AUS was of the 6 that
voted against the Res.  Israel says it was a courageous thing to do.
A Pal rep in CBR says AUS's reputation will suffer as a result of its
alliance with Washington and Tel Aviv.  The Pals were supported by 150
countries, he says, but AUS was supported by Micronesia and the
Marshall Islands.  Observers say AUS has now moved to carbon copy any
policy from Washington and will not be seen as worthy of separate
consideration by regional neighbours.  By voting "no", AUS has
indicated it may ignore future ICJ decisions, taking it outside the
global consensus and increasingly outside internat'l law, despite the
Howard Govt's continual claims it's behaving in a legal and proper
fashion.  E.g. in Iraq.

100s of residents have been evac'd in Cal as dozens of fires rage out
of control.  The fires are being fanned by strong winds.  On fire is
spreading toward LA from the S.

After a 6 m trial 3 German corporate heavyweights have been cleared of
mis-using investor money to pay themselves huge bonuses after a
telecom takeover.

The NAB dived 3% to $A27.16.  The Nikkei closed down 149 pts.  The
Hang Seng was down 75.  In London, the FTSE is presently down 63.
The AUD continues its downward slide, reaching 71.64 US c.  Oil is up
.02 at $US40.74/bbl.  Gold is down at $US395.35/oz.

10.30 pm
In Ramadi, people say most of the dead from fighting between
insurgents and US forces were civilians caught in the cross-fire.
The US says it killed 25 insurgents.  One local showed ABC TV where a
US rocket hit his house, wounding 4 family members.  "Is this
sovereignty", he called to PM Allawi.
}}

----------------------------------------
Fri, 23 Jul 2004.

	HEADLINES:
Roadside bomb kills US soldiers
US report finds more Iraq prisoner abuse
US Army: 94 Confirmed, alleged cases of abuse in Iraq, Afghanistan
PM defends Iraq decision
Bulgaria confirms Iraq hostage body
Small UN contingent heads to Iraq
9/11 Report
9/11 Panel urges intel overhaul
9/11 Commission recommends intel overhaul
Air Canada ups claim to $220M in WestJet lawsuit; discounter to countersue
Amazon reports profit, shares fall
Armed protection for athletes allowed outside Olympic venues
Army calls abuses 'aberrations'
Asbestos compensation fund directors apply for exemption
Body removal appals Territory MP
Bush moves to limit 9/11 report damage
Communication concerns regarding terror threats highlighted
Court to rule on Bali terrorist conviction challenge
Diplomat cull affecting intel: ex-DFAT head
Don't make the kick big, says study
Fairfax strike could hit weekend papers
Former Portuguese PM to head European Commission
Guantanamo detention tribunals begin
Howard offers no guarantees on athlete safety
Inquiry call over Rann's Nat'l Party appointment
MEL drug courier faces death in Singapore
Man in serious condition after shop explosion
Microsoft profits jump
Military, industry sonar harms whales: IWC report
More families to receive $600 pre-election sweeter
More than 160 arrested in Baghdad operation
Movement on financial markets limited
No risk for Aussie Olympians: PM
Only 6 militants surrender as Saudi amnesty expires
PM won't lay blame for intel failures
Poor weather affects missing sailor search
Powell criticises Manila for 'rewarding' militants
Praise, criticism greet 9/11 report
Radio announcer fined over bullying
Russia cuts off Georgia gas supplies amid S Ossetia row
Sales of healthy meals rocket
Seafood industry teaching kit to raise industry awareness
Sudan warns UK, US not to interfere in Darfur
Surfer accused of murder refused bail
Telecoms, energy sectors need more competition: ACCC
Terrorism on the agenda for local govt
Track athlete cleared of doping offence
Turkey train derailment death toll revised
UN evacuates staff from Gaza Strip
UN report accuses Rwanda of breaking Congo arms ban
US army criticised over Halliburton contract
US threatens Sudan with UN sanctions
Ukip MEP foiled by female fury
Up to 100 feared dead in Turkish derailment
War funds dwindling, GAO warns
Wilkie: my judgement is vindicated
Wiranto to take legal action over election count 'violations'


Russia cuts off Georgia gas supplies amid S Ossetia row
Tbilisi (AFP).  Russia has begun to cut off gas supplies to the
Georgian capital Tbilisi amid an escalating row with its neighbour over
the pro-Moscow separatist region of S Ossetia.
Tbilisi officials confirmed to AFP Thu that Russia's Gazprom energy
giant began to limit supplies on Wed and that 4 of the city's regions
would be left without gas by Thu evening.
The Tbilgaz official said Gazprom was demanding payments from the
impoverished republic that dated back half a year.
"Tbilisi needs 370,000 cubic meters of gas and now we will only be getting
200,000 cubic meters," Tbilgaz's Leval Pertselatse said by telephone.
Georgia is exclusively reliant on Russia for gas supplies and has for
y struggled to pay its debts.
But the latest delivery cut came amid a growing confrontation between
Moscow and Tbilisi linked to S Ossetia -- a separatist region that
wants to become part of Russia and which the new leadership of
Georgian Pres Mikhail Saakashvili is trying to win back.
Gazprom -- a Russian state-controlled company -- has previously cut
supplies to Ukraine and Belarus on Russia's W border amid diplomatic
disputes with those 2 former Soviet republics.
The move comes as both Russia and Georgia are building up their
military presence in the disputed region and one day after Tbilisi
warned that it may rip up a 1992 S Ossetian peacekeeping agreement.
That deal was struck after Georgia was defeated in a civil war in
which S Ossetia received military assistance from Moscow. It then
declared independence and later sought to become a part of Russia.
Georgia's border with S Ossetia is now patrolled by Russian, Georgian
and S Ossetian troops. But all sides involved claim that the other
party is sending additional supplies and reinforcements in breach of
the agreement.
This week, Georgia accused Russia of sending 40 armoured personnel
carriers and tanks destined for the S Ossetian forces.
Russia denies this, saying that the supplies were only meant to
replace broken vehicles that needed repairs as part of a regular rotation.
Georgia has threatened to build up its own forces in the region as Russian
newspapers have written grim headlines warning that war is on the horizon.
The Russian cmdr of the joint peacekeeping force said Thu that Georgia
has illegally stationed 3,000 troops in the region -- it is only allowed
500 -- and setting up customs points in S Ossetia, breaking the accord.
"The 1st thing that we must do is remove all of the military and
equipment from the conflict zone which is there in breach of our
agreement," the Russian cmdr, Svyatoslav Nabedorov, told ITAR-TASS.
He added that Georgia has set up 10 illegal customs check points in
the region. Tbilisi charges that Russia's border with Ossetia is being
used to smuggle contraband -- including unlicensed alcohol.
Moscow's conflict with Tbilisi has greater geopolitical repercussions
and is being watched by Washington officials with growing concern.
Saakashvili has leaned toward the W since toppling Georgia's old
regime in a peaceful revolution and winning the presidency in Jan,
vowing to reunify his fractured republic.
Georgia is constructing a lucrative gas pipeline from the energy-rich Caspian
Sea that skirts Russia's border and which is heavily backed by the US.
The Russian foreign ministry and the US State Dept have held regular
discussions over Georgia in recent months, with both sides seeking a
way out of the conflict without confrontation.

Movement on financial markets limited
There has been little overall movement on global financial markets
overnight.
NY/Sydney.  On Wall Street, the Dow Jones index has just managed to
close in positive territory, although at one stage it was under 10,000
points for the 1st time in 2 m, bottoming at 9, 947.
It has since closed at 10,050, an increment of just 4 points.
The heavy equipment maker, Caterpillar, undermined the market after
its earnings fell short of consensus forecasts with higher operating
costs spoiling the impact of better sales and selling prices.
The online auction house, eBay, has also disappointed investors with
its outlook for future earnings, even though its latest results
exceeded market predictions.
But more positive forecasts from Qualcomm and Network Appliance Inc have
ensured technology stocks have had a stronger session than mainstream issues.
Prices on the high-tech Nasdaq market are up 0.8% after yesterday's
2.2% plunge.
The Nasdaq composite index has regained 15 points to 1,889.
On the economic front, the private sector Conference Board's index of
leading economic indicators has slipped a touch in Jun, but analysts
say it still points to a solid level of economic activity ahead in the US.
On the Brit share market there has been a wholesale retreat with UK
investors worried about an economic slowdown and higher interest rates.
And even though the latest earnings reports have been mostly
encouraging, the market is fretting about future profits.
London's FT-100 index has slumped 71 points to finish at 4,302.  The
1.6% slide has taken the UK market to its lowest level in 8 m.
The Aussie market was also on the ropes yesterday.
The earlier decline on Wall Street unsettled local investors.
News Corporation shares fell 1.8% in value to $12.40.
The All Ords surrendered 23 points to end the day at 3,506.
On FX markets, the Aussie dollar remains below 72 US cents.
About 7.15am AEST, it was being quoted at about 71.52 US cents -- up
1/5 c on yesterday's local close.
On the cross-rates, it is at .5835 euros; 78.51 Japanese yen; 38.76
pence sterling; and 1.113 against the NZ dollar.
Gold is at $US395.10/oz.
West Texas crude oil has risen to about $US41.51/bbl.

Microsoft profits jump
LA (AFP).  Microsoft has reported its profit rose to $US2.69 bn in the
latest quarter, up sharply from $US1.48 bn in the same period last y
but below Wall Street estimates.  The company, which closed out its
4th quarter on Jun 30, ended with a fiscal full-y profit of $US8.17
bn dollars, up from $US7.53 bn the prior year.  The earnings of the
world's biggest software firm fell just short of Wall Street forecasts
after stripping out one-time gains and losses, and also projected
upcoming earnings below the consensus forecast.  Looking ahead,
Microsoft said it expects fiscal first-quarter revenues of $US8.9 bn
to $US9 bn.

Amazon reports profit, shares fall
NY (Reuters).  Amazon.com has reported a profit in the 2nd quarter
below Wall Street forecasts and its shares have fallen sharply.  The
largest online retailer reported a second-quarter net income of $US76
mn compared with a year-earlier net loss of $US43 mn.  Amazon, which
began life as a bookseller but now retails a vast array of consumer
goods online, posted 2nd quarter revenue of $US1.39 bn, within its
target range of $US1.34 bn to $US1.44 bn.  Before the announcement,
Amazon shares closed at $US45.82 on the Nasdaq, up 2.4%. In
after-hours dealings, the stock slumped to $US43.60.

Air Canada ups claim to $220M in WestJet lawsuit; discounter to countersue
Toronto (CP).  Air Canada has raised the stakes in its legal battle
with WestJet Airlines, amending its lawsuit against the discount
carrier alleging corporate espionage to demand $220 mn in damages
and compensation.
Air Canada said Thursday it is seeking $170 mn in compensation,
$25 mn in punitive damages and $25 mn for what it called
WestJet's intentional destruction of documents.
The Montreal-based airline had earlier claimed $5 mn in punitive damages.
"Through improperly accessing and misusing the plaintiffs'
confidential information from the employee website, WestJet obtained
and still has an unfair competitive advantage over the plaintiffs,"
Air Canada said in its amended statement of claim.
The move by Air Canada came as Calgary-based WestJet received the
go-ahead from an Ontario court to countersue Air Canada. It alleges
the ailing airline sent private investigators to an executive's home
to sift through his trash.
Ontario Superior Court Justice Peter Cumming granted WestJet leave to
countersue after a brief hearing that was required because Air Canada
is operating under creditor protection.
WestJet alleges Air Canada private eyes trespassed on private property
to take company documents that had been shredded and placed in a
municipal recycling container, and then later hired a Houston firm to
reassemble those documents.
"We consider there is significant merit in the claim," WestJet lawyer
Dan McDonald said.
The airline made the allegations after Air Canada sued WestJet and two
of its employees claiming they accessed an Air Canada employee website
243,630 times between May 15, 2003, and Mar 19, 2004, to check seat
availability on Air Canada flights.
With that information, WestJet could alter its routes and improve its
expansion plans, Air Canada charges.
No allegations from either side have been proven in court.
WestJet continues to believe the Air Canada allegations against it are
"without merit."
"In WestJet's view and the view of its expert witness, the information
on the Air Canada employee website is not confidential," WestJet said
in a statement late Thursday. "In fact this information is available
to the public through many sources, including counting passengers and
other public websites."
Air Canada did not oppose WestJet's request for permission to
countersue, saying the claim has no merit and "cannot be material to
Air Canada's restructuring."
WestJet has until Aug. 6 to file its counter-suit.
In its statement of defence, WestJet has dismissed Air Canada's claims
that information obtained by former WestJet vice-president Mark Hill
and financial analyst Jeffrey Lafond was confidential, since there was
no warning to that effect on the website.
Lafond is a former employee of Canadian Airlines who left after it was
acquired by Air Canada, taking along access to the website used by
current and former Air Canada employees to book personal travel.
Hill, one of WestJet's co-founders, resigned last week.

Up to 100 feared dead in Turkish derailment
Istanbul.  Up to 100 people may have died when a train derailed in NW
Turkey, a local official told the NTV news channel.  "We do not
exactly how many people died in the accident, but we estimate that
nearly 100 people were killed," Feridun Turan, the mayor of Pamukova
town, nr the site of the accident, said.  He said several people were
also injured in the accident when the train, which was on its way from
Istanbul to the capital Ankara, derailed due to a yet unknown reason
nr Pamikova in Sakarya province.  The Anatolia news agency put the
toll at 50 killed and 20 injured, but gave no source for the info.  A
doctor from a hospital nr the accident site had earlier put the death
toll at least 30 killed.  The report said 4 of the train's cars
overturned.  The accident occurred as the train was travelling from
Istanbul to capital Ankara, CNN-Turk TV said.  The cause of
the accident was not immediately known.

Turkey train derailment death toll revised
Ankara (AFP).  36 people have been killed when an express train
derailed in NW Turkey, a rep for the transport ministry crisis centre
told AFP, revising an earlier death toll of 139.
The packed express train was travelling from Istanbul to the capital,
Ankara when it crashed.
At least 4 of the train's carriages overturned in the derailment.
The Anatolia news agency said the carriages smashed into each other.
"Rescue workers are using heavy machinery to lift up the carriages and
check underneath for dead and injured," he said.
"It is total chaos out here."
A crisis centre set up in Ankara said that of the 243 people aboard the train.
It gave no further details.
The earlier death toll, given by a snr official from the health
ministry, was put at 128.
Anatolia quoted anonymous officials from the railway authority as
saying that most of the casualties were in the 1st 2 carriages of the
train and that the passengers in the remaining 2 carriages escaped unhurt.
Police and paramilitary troops immediately cordoned off the accident
site, while the Turkish Red Crescent sent off medical staff and
supplies to the region.
Turkish Prime Min Recep Tayyip Erdogan cancelled a trip to
Bosnia-Hercegovina, scheduled for Fri and left for the crash site.
There were 234 passengers and 9 staff aboard the train which was
travelling from Istanbul to capital Ankara, officials said.
The cause of the accident was not immediately known.
The train was one of a number of new express trains which came into
service last m, offering faster trips between Ankara and Istanbul
following renovation on existing tracks.
But critics had said the infrastructure was not suitable for such a project.
The trains travel at speeds of up to 150 km per hour, reducing the
duration of the trip of 567 km to 5 hours.
The train was supposed to have a speed of 75 to 80 km at the site of
the crash, railway officials said.
But officials dismissed reports the accident might have been caused by
the speed of the train.
"We estimate that the fact that the train was an accelerated one did
not play a role", Mr Turker said.

Sudan warns UK, US not to interfere in Darfur
Paris (Reuters).  Sudan warned Brit and the US Thu not to interfere in
its internal affairs, after PM Tony Blair said he had not ruled out
military aid to help combat the crisis in Darfur.
The US circulated a UN resolution threatening sanctions against
Sudan's govt if Khartoum did not prosecute Arab militia leaders in the
W region, accused of ethnic cleansing against black African villagers
in Darfur.
"We don't need any [UN] resolutions. Any resolutions from the Sec
Council will complicate things," Sudanese FM Mustafa Osman Ismail said
on a visit to Paris.
"[This] pressure closely resembles the increased pressure that was put
on Iraq [before the war]," he said.
Sec of State Colin Powell, in NY to confer with UN Sec-Gen Kofi Annan
on how to deal with the crisis, rejected Sudan's complaints, and said
he expected a positive vote on the UN resolution.
Asked whether it made sense to pressure Khartoum to disarm the
Janjaweed militia it had armed in the 1st place, Powell said: "Since
they turned it on, they can turn it off."
Facing what the UN calls the world's worst humanitarian crisis, Blair
said the world needed to act.
"We have a moral responsibility to deal with this and to deal with it
by any means that we can," Blair said, adding that he had not ruled
out the possibility of military assistance.
After long conflict between Arab nomads and black African farmers,
rebel groups launched a revolt in Feb 2003 in the E of the
oil-producing country. Janjaweed militias went on the rampage, driving
black Africans into barren camps.
Sudan denies supporting the Janjaweed.
* ARMS EMBARGO
The draft Sec Council resolution, which does not define the sanctions,
also advocated an immediate embargo on weapons funnelled to the
Janjaweed and any other armed group in Darfur.
Annan said opp'n to the resolution appeared to have died down in the
council, where Europeans had sided with the US while Russia, China,
Pakistan and others had qualms about undue pressure on Sudan.
"The reactions were quite positive," Annan said. "My sense is that it
will be successful."
Powell said the resolution would pass if a vote was held.
Ismail said he was puzzled by the increased pressure on his country.
"I don't understand why Brit and the US are systematically increasing
pressure against us."
Annan agreed. "Once they do what is right, the meddling will stop," he said.
The UN estimates that the 15-m conflict has killed at least 30,000
people and displaced more than a mn.
In agreement with Annan, Sudan has pledged to protect displaced
civilians, disarm militias, lift travel restrictions on aid workers
and punish those responsible for atrocities.
7 men convicted of belonging to the Janjaweed were sentenced in a
Darfur court to punishments ranging from execution and crucifixion to
amputation and imprisonment, a statement from the presiding judge said Thu.
Police arrested 100 Janjaweed in recent clashes, official sources
said, but a source at an internat'l organisation in Sudan said they
may have been petty looters made scapegoats.
* TROOPS TO SUDAN?
Brit's Guardian newspaper reported that Blair was considering sending
troops to Sudan to help distribute aid, lend logistical support to an
African Union (AU) protection force or protect refugee camps from
marauding militias.
"We rule nothing out, but we are not at that stage yet," Blair told
reporters in London. His foreign secretary, Jack Straw, said he would
visit Sudan, possibly Darfur, next m.
Straw said he was pushing EU members to take action, funding the AU
mission, or sending a "joint civilian military team" as backup. He
said it would not be a Brit military operation.
"What we need to do in the short term is to get the govt of Sudan to
take the measures necessary to control the militias and to make sure
the aid and assistance gets through," he said.
Khartoum has agreed to the deployment of 270 AU troops to protect 60
AU observers who will check violations of a shaky cease-fire signed
between the govt and rebels in Apr.

US threatens Sudan with UN sanctions
[Bush careful not to say "genocide" in public].
UN (Reuters).  The US has circulated a United Nations resolution
threatening sanctions against the Sudan govt if Khartoum did not
prosecute Arab militia leaders in the W Darfur region.
In the measure, which does not define the sanctions, the Bush Admin also
advocated an immediate embargo on weapons given to Arab militias, called
Janjaweed, as well as any other armed group terrorising Darfur civilians.
The revised draft UN Sec Council resolution was submitted on the day
US Secretary of State Colin Powell planned a visit to NY to work on a
joint strategy on Darfur with Sec-Gen Kofi Annan.
Each visited Sudan and Darfur this m.
The 15-m conflict has killed at least 30,000 people, forced villagers
into concentration-camp type compounds and left 2 mn people without
enough food and medicine in Sudan's W region.
The new resolution tightens language on a weapons ban and on what
Khartoum must do to avoid sanctions, such as "bring to justice
Janjaweed leaders and their associates" within 30 days.
"The resolution demands that Sudan apprehend Janjaweed leaders and
bring them to justice," said US representative Stuart Holliday.
"In 30 days, if there is no compliance, the council will look to take
action, including the imposition of sanctions," he said.
"We would like the govt to work with us to honour their commitments.
The resolution also says any UN planning for peacekeepers in southern
Sudan, where a decades old civil war is coming to an end, should
consider including Darfur as well.
Washington faces an uphill battle in the 15-member council, where
several members, including Russia, China, Pakistan and others, opposed
even a threat of sanctions against Khartoum.
Diplomats said the United States might have to soften the draft or
call a vote next wk and dare nations to oppose the measure.
The arms embargo is difficult to enforce, with the Khartoum govt
having been accused of using its aircraft and helicopters to aid the
Janjaweed, who are blamed for murder, widespread rape, pillaging and
driving African villagers from their homes.
"The initial reporting that I have received is very disturbing as to
the actions of the Janjaweed and how the Janjaweed were supported by
the Govt of Sudan," Mr Powell said.
Sudan, in an agreement with Mr Annan 2 wk ago, pledged to protect
displaced civilians, disarm the Janjaweed and other armed groups,
suspend visa and travel restrictions on relief workers, allow African
Union human rights monitors and punish those responsible for
atrocities.
The conflict began in Feb 2003, when African rebel groups protested
govt policies, saying the Darfur region had been ignored by Arab govt
in Khartoum.
The UN, the US and the African Union, which has sent a team to Darfur,
are monitoring whether Sudan complies with its pledges.

UN report accuses Rwanda of breaking Congo arms ban
Nairobi.  The Govt of Rwanda was accused yesterday of breaking a UN
security council arms embargo and of abusing human rights within its
own borders. A damning report by a panel of UN experts accuses Rwanda
of supporting a military revolt in the Democratic Republic of Congo (DRC).
It claims Rwanda recruited soldiers led by Col Jules Mutebutsi and
General Laurent Nkunda, who tried unsuccessfully to overthrow their
govt last m.
Rwanda's Regional Co-operation minister, Protais Mitaly, dismissed the
report as "lacking credible evidence" but his denial was undermined by
General Nkunda, who told reporters yesterday that he felt the Rwandan
govt would support him if it felt its security was threatened. The
general said: "I cannot say that Rwanda cannot back me -- they can if
there is reason to."
The fighting in eastern Congo has continued this m and now threatens to
upset the Congo's delicate peace process, which aims to end a 5-y war that
has killed more than 3 mn people and sucked in 6 neighbouring countries.
The UN said the conflict had been prolonged by weapons and ammunition
which were brought over this y from Rwanda and hidden in river water.
It added: "Rwanda's violations involved direct and indirect support,
in both the DRC and Rwanda, to the mutinous troops of Jules Mutebutsi
and Laurent Nkunda."
Rwanda has already invaded the Congo twice in the past 8 y, claiming
it was hunting those responsible for the 1994 genocide when almost
800,000 Tutsis and Hutu moderates were killed. General Nkunda claims
he is fighting to protect ethnic Tutsis from being killed by Congolese
govt soldiers, but UN investigators have found no evidence of mass
killings so far.
Elsewhere, members of a Rwandan human rights organisation fled to
Uganda after a parliamentary committee accused them of working with a
genocidal ideology.
The workers for the Rwandan League for Promotion and Defence of Human
Rights [Liprodor] said they feared for their lives after the govt
accused them of promoting ethnic divisions and MPs called for them to
be sentenced to death. Liprodor has spoken out against the govt's
record in human rights.
"Opportunities for any form of dissent are limited in Rwanda, and the
public position of its parliament is based on no proof. The charge of
divisionism has become so broad and so vague that it can now encompass
any form of debate," Alison Des Forges, the snr adviser at Human
Rights Watch, said.

Wilkie: my judgement is vindicated
Sydney (AAP).  Former intel officer and whistle-blower Andrew Wilkie
has admitted some professional satisfaction that the Flood inquiry
vindicated his judgements about Iraq's weapons of mass destruction.
Mr Wilkie, who is standing as a Greens candidate against PM John
Howard at the next fed election, said the report confirmed again that
the WMD reason for going to war was completely unfounded.
He said on balance the report was very bad news for the govt.
"There is some sense of professional satisfaction about my
judgements. But the circumstances remain far too tragic for anyone to
be crowing about anything," he told the 9 Network.
"Sooner or later someone has got to stand up in this country and admit
they got it wrong, starting with the PM and the foreign minister and
sooner or later we have got to say yeah there was a serious intel
failure." Mr Wilkie, a snr analyst with the Office of Nat'l
Assessment, quit in Mar last y and went to the media, claiming intel
on Iraq's WMD programs did not justify going to war.
The Flood report found actual Iraq intel filled just 5-and-1/2 pages
and was thin, ambiguous and incomplete.
Mr Wilkie said it was not unusual for key intel reports to be brief.
"It is routine. The PM of course receives dozen of reports every day
so the intel reports are short and punchy," he said.
"They probably are not detailed enough for what he requires." Mr
Wilkie said it should be remembered that govts chose to go to war
based on lots of inputs, of which intel was one.
He said he was delighted with the Flood recommendation that Office of
Nat'l Assessments (ONA) be substantially increased in size, receive a
big boost in funding and that its coordination functions be strengthened.
But he said he didn't he didn't believe this inquiry was the right way
to approach the issue.
"Mr Flood is a decent man but he is a stakeholder as a former head of
one of the intel agencies," he said.
"His terms of reference were much too narrow. The much more important
thing to look at now is the govt's relationship with the agencies."

PM defends Iraq decision
John Howard has defended the decision to invade Iraq.
Canberra.  PM John Howard says he does not regret sending Aussie
troops to war in Iraq, despite a finding his decision was based on
"thin, ambiguous and incomplete" intel.
AUS went to war in Iraq mainly because the Govt believed Saddam
Hussein had WMD.
Now a report by former spy chief Philip Flood finds that conclusion
was based on limited and incomplete intel, which was not rigorously
challenged by Aussie intel agencies.
Mr Howard is unrepentant.
"You make judgements on the basis of the info before you at the time,"
he said.
"I believed Saddam had WMD, I had grounds for believing it."
Labor's Kevin Rudd does not accept that.
"So now we have the PM of AUS taking this country to war on the basis
of a hunch," he said.
The Flood report did not find any evidence of political interference
in the intel, but Mr Rudd is not convinced.
"The culture of this Govt is there are right answers and there are
wrong answers," he said.
He says that culture will not change while the Howard govt remains in power.
Democrats Leader Andrew Bartlett is also not convinced by the Flood
report's finding that there was no evidence of political interference
in the intel services.
"It just beggars belief that the Aussie, UK and US intel could all
have had flaws and those flaws all just happened to suit what the 3
govts of those countries wanted to hear," he said.
Mr Howard says AUS also went to war because of its alliance with the
US, and he says the Iraqi people are now better off, because Saddam
Hussein has been removed from power.

PM won't lay blame for intel failures
Canberra.  PM John Howard says if Aussies are looking for someone to
blame for Aussie intel failures he will accept responsibility.
A report released yesterday found AUS's intel on Iraq's suspected
weapons of mass destruction was "thin, ambiguous and incomplete", and
was not rigorously challenged by intel agencies.
"In the end, I am the person who gets it in the neck from the
electorate if they don't like the way I've run the country and I
accept that," Mr Howard said.
Mr Howard says he will not look for scapegoats in AUS's intel agencies
as a result of the Flood report's findings.
"I'm not going to say 'well, because something went wrong I'm going to
fire you', I'm not going to do that," he said.
Mr Howard insists the report found the agencies are performing well
and that the Govt did not engage in political interference.
He says the current head of the Office of Nat'l Assessments (ONA) will
keep his job and has praised the efforts of his predecessor.
The PM also rejected fresh calls for a royal commission into the
issue, saying he believes voters are sick of hearing about it.
* Spelt out
A former intel analyst who quit his job at the ONA over concerns about
pre-Iraq intel says he does not believe the Prime Min when he says he
cannot recall being told intel on Iraq's WMD was flimsy.
Andrew Wilkie says the issue was clearly spelt out to Mr Howard.
"Flood has made it quite clear that intel agencies and ONA in
particular was offering the Govt cautious and qualified advice," he said.
"The Govt was needing to quite deliberately go beyond that to make the
very strong and very unambiguous case for war."
The Aussie Democrats have condemned Mr Howard's comments that he would
make the same decision again to take AUS to war in Iraq.
Democrats leader Andrew Bartlett says it shows Mr Howard cannot be
trusted to make those judgements.
"Not only did he commit the mistake that he made with all the
deception attached to it but he would make the mistake again and if
you're not going to learn from your mistakes then frankly I think that
says more than anything," he said.
"I don't think we should trust the PM to have the power anymore to
send Aussie men and women to risk their lives overseas."

Diplomat cull affecting intel: ex-DFAT head
Canberra.  A former head of the Dept of Foreign Affairs (DFAT) has
backed claims in the Flood report that a decline in Aussie diplomatic
staff is hampering the efforts of intel assessment agencies.
The report says the number of diplomatic staff overseas, and the info
they report to CBR, has been declining over successive govts.
Former dept'al secretary Mike Costello says diplomats used to be more
involved in what was known as political reporting.
"Particularly in countries like Indonesia, there'd be considerable
number of political officers whose job basically is just to know the
country, to know its language, to know its culture, to just wander
around on trips, talk to all sorts of people," he said.
"That's not intel work in the conventional sense but that was the bulk
of the info on which you'd rely for your assessments."
Mr Costello also says AUS was culpable in neglecting one of the most
important issues of the campaign -- how to deal with Iraq after the war.
"This is where the great failings of the Americans, for which they
should be held so responsible, are," he said.
"That they did not plan for it, that they made obvious mistakes and
were slow to rectify them and we as a good ally, and would've in the
past, should have been pressing for this before it ever started."

Bush moves to limit 9/11 report damage
The Sep 11 report criticised both the Bush and Clinton Admins.
Washington (Reuters).  US Pres George W Bush says many of the failings
in US defences identified by the Sep 11 commission developed before he
took office in 2001.
The Sep 11 commission criticised both the Bush and Clinton Admins for
failing to fully grasp or effectively combat the threat Al Qaeda posed.
"I agree with their conclusion that the terrorists were able to
exploit deep institutional failings in our nation's defences that
developed over more than a decade," Mr Bush said.
Mr Bush, who is running for re-election on the argument that he has
made the US safer since the Sep 11 attacks, pledged to give serious
consideration to the commissioners' recommendations but stopped short
of endorsing their call for a nat'l intel director.
"The commission's recommendations are consistent with the strategy my
Admin is following to address these failings and to win the war on
terror," he said.
On US TV, nat'l security adviser Condoleezza Rice said: "It's
not a matter of will there be intel reform, there's going to be intel
reform and we're going to need to make major intel reform."
She did not offer specifics.
Pres Bush had a large advantage in the polls over Democrat John Kerry
on the issue of who would make the country safer but lost some of it
because of unease over the war in Iraq.
Democrats allege Mr Bush has short-changed the country's police and
firefighters and has not been aggressive enough in securing US ports
against attack.
Mr Bush also has been considering nominating a new CIA director to
replace George Tenet, who resigned earlier this m.
But he has declined to say whether he would go along with the panel's
central recommendation for a nat'l intel director to oversee the
country's massive intel apparatus, which goes well beyond the CIA.
Both the acting CIA director, John McLaughlin, and homeland security
secretary Tom Ridge have raised questions about such an idea, which Mr
Kerry long ago embraced.
"The commission has suggested a number of reforms to improve our intel
capabilities so we can better anticipate emerging threats," Mr Bush said.
It was unclear how far intel reforms would be able to proceed this y
with Mr Bush and many members of the US Congress busy campaigning for office.
White House rep Scott McClellan said he did not want to put an
"artificial time-line" on when the Admin might act.

US army criticised over Halliburton contract
Washington (Guardian/AP).  The US army bungled the planning and
management of a $multi-bn contract with Halliburton to provide food
and other services to troops in Iraq, congressional investigators
today concluded.
Investigators from the US govt's accountability office found a
"pattern of contractor management problems" leading to cost disputes
between the Pentagon and Halliburton. They also criticised
Halliburton's staffing and accounting.
So far, the military has agreed to pay Halliburton -- which was headed
by the US vice-president, Dick Cheney, between 1995 and 2000 -- more
than $5bn on the deal.
Separate fed investigations are examining whether Halliburton had over-charged
the army for fuel and meals, and looking into allegations that former
company workers could have taken bribes from a Kuwaiti subcontractor.
A separate report from congressional Democrats said Halliburton
charged the govt $2.68 per gallon to import gasoline to Iraq from
Kuwait, but a govt agency did the same work for $1.57 a gallon. That
difference had cost the govt an extra $166.5m, the report said.
Wendy Hall, a Halliburton rep, said price comparisons were "unfair"
because the terms of the contracts were probably different. She added
that the company had not obtained a copy of the govt arrangement cited
in the Democrats' report.
The report said Halliburton had hired a Kuwaiti company to buy the gas
as a middleman and transport it into Iraq, while the defence energy
support centre bought the fuel directly and hired the company only to
transport it.
Halliburton has said that Kuwait's govt-controlled oil company would
sell gasoline only through the firm, named Altanmia, adding that it
"did the best it could" amid the chaos of war.
It has complained of problems with military overseeing of the contract
-- complaints echoed in today's GAO report.
The report said problems with army oversight included waiting until
May 2003 -- after the fall of Baghdad -- to develop a plan for providing
support services to troops in Iraq. The "piecemeal approach to planning"
resulted in constant changes being made to the support plan -- more
than 150 in all.
It also revealed that, in some cases, it had taken more than a y for
the final costs of projects worth $bns to be worked out.
However, the report said Halliburton's staffing problems and
"antiquated accounting system" had hampered the process of finalising
costs for portions of the contract.
It said the company's cost estimates were frequently inaccurate or
lacked the proper documentation, and added that Halliburton was often
behind schedule on its work.
In a statement, Halliburton said it had "placed continuous pressure"
on itself to "do better" and was following constantly-changing
directions given by military officials.

War funds dwindling, GAO warns
Washington (WashPost).  The US military has spent most of the $65 bn
that Congress approved for fighting the wars in Iraq and Afghanistan
and is scrambling to find $12.3 bn more from within the Defense Dept
to finance the wars through the end of the fiscal year, fed
investigators said yesterday.
The report from the Govt Accountability Office, Congress's independent
investigative arm, warned that the budget crunch is having an adverse
impact on the military as it shifts resources to Iraq and away from
training and maintenance in other parts of the world. The study -- the
most detailed examination to date of the military's funding problems
-- appears to contradict Whitehouse assurances that the services have
enough money to get through the calendar year.
Already, the GAO said, the services have deferred the repair of
equipment used in Iraq, grounded some Air Force and Navy pilots,
cancelled training exercises, and delayed facility-restoration
projects. The Air Force is straining to cover the cost of body armour
for airmen in combat areas, night-vision gear and surveillance
equipment, according to the report.
The Army, which is overspending its budget by $10.2 bn for operations
and maintenance, is asking the Marines and the Air Force to help cover
the escalating costs of its logistics contract with Halliburton Co But
the Air Force is also exceeding its budget by $1.4 bn, while the
Marines are coming up $500 mn short.
The Army is even having trouble paying the contractors guarding its
garrisons outside the war zones, the report said.
Whitehouse rep Trent Duffy said the Defense Dept continues to believe that
extra funds will not be needed this FY. Pres Bush had requested a $25 bn
reserve to cover shortfalls that may arise between Oct 1, when the new
fiscal y begins, and Feb, when the Whitehouse plans to submit a
detailed funding request for military operations. But for now, Duffy
said, there are no plans to tap the reserve. He added: "This president
has said repeatedly the troops will have what they need, when they need it.
That's why he has stood steadfastly in support of funding for our troops."
Lt Col Rose-Ann Lynch, a rep for the Pentagon 's comptroller, said
that though the fiscal 2004 budget is tight, "the dept still
anticipates sufficient funding to finance ongoing operations."
Democrats quickly pounced on the report, charging that the Bush Admin
is turning a blind eye to military funding issues to avoid adding to the
overall budget deficit or conceding that the Iraq operations are off-course.
"George W Bush likes to call himself a wartime president, yet in his
role as cmdr in chief, he has grossly mismanaged the war on terrorism
and the war in Iraq," contended Mark Kitchens, nat'l security rep for
Democratic presidential candidate John F Kerry. "He went to war
without allies, without properly equipping our troops and without a
plan to win the peace. Now we find he can't even manage a wartime budget."
The GAO report detailed just why a $65 bn emergency appropriation has
proved to be insufficient. When Bush requested that money, the
Pentagon assumed that troop levels in Iraq would decline from 130,000
to 99,000 by Sep 30, that a more peaceful Iraq would allow the use of
more cost-effective but slower sea lifts to transport troops and
equipment, and that troops rotating in would need fewer armoured
vehicles than the service members they replace.
Instead, troop levels will remain at 138,000 for the foreseeable
future, the military is heavily dependent on costly airlifts and the
Army's force has actually become more dependent on heavily armoured
vehicles. The weight of those vehicles, in turn, has contributed to
higher-than-anticipated repair and maintenance costs. Higher troop
levels have also pushed up the cost of the Pentagon's massive
logistical contract with Halliburton subsidiary Kellogg Brown & Root.
About 4,000 Navy personnel in Iraq and Kuwait were not expected to be
there, contributing to a $931 mn hole in the Navy's budget for fiscal
2004. The Marine Corps was supposed to have decreased its presence in
Iraq but instead has 26,500 Marines in the country and an additional 2
expeditionary units supporting the war on terrorism.
The strain is beginning to add up, the GAO said. The hard-hit Army
faces a $5.3 bn shortfall in funds supporting deployed forces, a $2 bn
budget deficit for the refurbishing of equipment used in Iraq and a
$753 mn deficit in its logistics contract. The Army also needs $800 mn
more to cover equipment maintenance costs and $650 mn to pay
contractors guarding garrisons.
The Air Force has decreased flying hours for pilots, eliminated some
training, slowed civilian hiring and curtailed "lower priority
requirements such as travel, supplies and equipment," the report said.
The Pentagon comptroller told GAO investigators that the Defense Dept
has sufficient funds to cover the shortfalls, provided Congress gives
officials more authority to transfer money among accounts.
But the GAO report warned that there will be a serious downside to
that approach, especially the deferral of maintenance and refurbishing
plans until next y.
"We believe that the deferral of these activities will add to the
requirements that will need to be funded in fiscal y 2005 and
potentially later y and could result in a 'bow wave' effect in future
years," the report cautioned. "Activities that are deferred also run
the risk of costing more in future years."
A "bow wave" refers to a time when deferred costs confront Congress
all at once, making it impossible to meet the demands.

Wiranto to take legal action over election count 'violations'
Jakarta.  Indonesia's former army chief General Wiranto has disputed
the result of the 1st round of presidential elections and called for a
manual recount of the vote.  General Wiranto and his team announced
they would take legal action to correct what he called "violations".
According to the former general, there were 15 problem areas
surrounding the conduct of the 1st round election earlier this m and
he said he would take legal steps to resolve them.  Chief among the
problems he said were the mn of ballots accidentally punched more than
once by voters which were at first ruled invalid then recounted as
valid in the days after the poll.  He also suggested there had been
electoral fraud and that the electoral commission's vote count
differed from figures his own scrutineers gathered.  Wiranto's
complaints and legal threats come just 3 days before the final count
is to be announced.  It is expected the count will put him in 3rd
place and left out of the run off election in Sep which will then be
between Susilo Bambang Yudhoyono and current Pres Megawati Sukarnoputri.

9/11 Report
'The system was blinking red'
Official investigation into 11 Sep admits US ignored obvious warnings
and says attacks might have been prevented.
Washington (Independent).  A blue riband commission delivered a
blistering indictment of America's failure to prevent the Sep 2001
terrorist attacks yesterday.
Concluding that the attacks were "a shock, not a surprise", it
detailed a litany of intel failures to act upon the "drumbeat" of
warnings that al-Qaeda was planning a "spectacular" attack on
American soil.
As early as 23 Mar 2001, the Nat'l Security Adviser, Condoleezza Rice,
was warned that al-Qaeda cells were in the US and that terrorists
might use a truck bomb in Washington.
US intel agencies warned of "something very, very, very big". "The
system was blinking red," CIA director George Tenet said. But the info
pointed to an attack outside the US.
In May the FBI had warned of plans to launch attacks on London, Boston
and NY. By late Aug a report, Islamic Extremist Learns to Fly, had
landed on Mr Tenet's desk and the CIA warned the Paris embassy of
"subjects involved in suspicious 747 flight training".
The commission issued recommendations for reform of the country's
intel structure yesterday but warned that further and probably
deadlier attacks were to be expected.
In a 567-page report, the bipartisan 9/11 Commission said neither Pres
George Bush nor Pres Bill Clinton was directly to blame for not thwarting
the al-Qaeda plot. It says the massive failure was primarily one of
"imagination", that such a scheme could be devised and carried out on
US soil. Since 11 Sep, America had become safer, but was not safe.
It lists 9 "missed opportunities" by the CIA, the FBI, the immigration
service and the air transport authorities, but concludes that the
attacks almost certainly would have gone ahead.
The main recommendation is for a complete overhaul of the country's
discredited intel bureaucracy, and the creation of a new intel "tsar"
with cabinet rank. He would have overall control of the more than a
dozen US intel agencies and their $40 bn annual budget. But the
commission came out against a new domestic intel agency, along the
lines of MI5.
At an operational level, the report calls for the introduction of a
biometric screening system, and increased spending on neglected
aspects of the US transport system. Since Sep 2001, 90% of such
security spending had gone on aviation, the commission acidly noted,
"to fight the last war".
At home, it urges creation of a fully integrated nat'l anti-terrorism
centre. Abroad, the commission says the US must not only carry the
battle to terrorism's sanctuaries. It must work towards a more honest
relationship with Saudi Arabia, where 15 of the 19 hijackers
originated, and provide a stronger commitment to Pakistan and Afghanistan.
The US also had to develop more effective public diplomacy to counter
the enemy, that was "not Islam, the great world faith" in the
commission's words, "but a perversion of Islam". The most sensitive
political aspect of the report is its conclusion that Iraq had no hand
in the 11 Sep attacks, and that there were no close links between
Saddam Hussein's regime and al-Qaeda. Specifically, it dismisses
reports of the alleged meeting in Prague in Apr 2001 between Mohammed
Atta, the ringleader of the hijackers, and an Iraqi intel officer.
The commission found that Iran did give transit to some of the
hijackers on their way from Saudi Arabia to the US, but there was no
evidence that Tehran had any inkling of the planning for the terrorist
attacks. The same went for the Saudi govt in Riyadh.
The report, the fruit of 20 m' work, was given a positive welcome
across the political spectrum yesterday.
After being given a preview of the report at the Whitehouse, Pres Bush
promised that "where the govt needs to act, we will". His Democratic
challenger in Nov, Sen John Kerry of Massachusetts, went further,
vowing that if the intel shake-up had not already been adopted, he
would if elected summon a "nat'l security summit" to push it through.
The report is deeply critical of the culture and mindset of govt and
the various agencies responsible for nat'l security. The CIA lacked
resources and was forced to rely excessively on proxies in its efforts
to tackle al-Qaeda. The FBI is blamed for focusing too much on
catching criminals and terrorists after the event, rather than on
preventing the crime. Both agencies are blamed for their refusal to
pool all info.
Above all, the various strands of the fight against terrorism in
general and al-Qaeda in particular were never pulled together. The
report notes that between 1995 and 11 Sep itself there was no Nat'l
Intel Estimate -- the most important intel report -- on terrorism.
The report, based on more than 2,000 interviews with top officials,
offers a remarkably detailed account of the build-up to the 2001 attacks.
The US was facing one of the greatest security challenges in its history.
"We looked back to look ahead," Thomas Kean, the former Republican
governor of NJ who chaired the report, said yesterday, demanding a
"shift in the nat'l mindset".
"The goal is to prevent future attacks. We don't have the luxury of time.
We must prepare and we must act."
"If, God forbid there is another attack, we must be ready to
respond. We must educate the public, train and equip 1st responders
and anticipate countless scenarios," Mr Kean said.

9/11 Panel urges intel overhaul
Washington (AP).  America's leaders failed to grasp the gravity of
terrorist threats before the devastating attacks of Sep 11, 2001,
taking actions so feeble they never even slowed the al-Qaeda plotters,
a nat'l commission said in a blistering report Thu.
The panel warned "we are not safe" -- and called for major intel
changes. Its work is sure to reverberate across the presidential campaign.
In an exhaustive investigation of the deadliest attack in US history,
the commission noted numerous govt mis-steps but did not cast blame on
any official and stopped short of saying the hijackings could have
been prevented.
While the panel did not fault Pres Bush or former Pres Clinton, it did
say both failed to make anti-terrorism a top priority.
"We do not believe they fully understood just how many people al-Qaeda
might kill and how soon it might do it," the 10-member, bipartisan
panel said in its unanimous findings.
"We also believe that they did not take it as seriously as it should
be taken. It was not their top priority," Thomas Kean, the Republican
chairman, said at a news conference with members of the Nat'l
Commission on Terrorist Attacks Upon the US. "We do believe both
presidents could have done more in this area."
The final report, available on the commission Web site and at
bookstores, largely mirrored the preliminary reports released during
the commission's 20 m of investigation.
Coming less than 4 m before the election, the politically sensitive
report could be trouble for Bush, who has made his handling of
terrorism the centrepiece of his campaign and has insisted he fully
understood the threat.
The report comes on the heels of House and Senate reports that
documented US intel failures and undermined the major claims cited by
Bush to justify the war against Iraq. The commission report repeated
its earlier preliminary findings that Saddam Hussein did not have a
close relationship with al-Qaeda and had nothing to do with the attacks.
Still, in the days after the hijackings, some in the Bush Admin were
seeking to make that link, the commission found.
Deputy Def Sec Paul Wolfowitz, in a Sep 17, 2001, memo to Def Sec
Donald H Rumsfeld, wrote that if there was "even a 10% chance" that
Saddam had a role in the attacks, "maximum priority should be placed
on eliminating that threat."
Despite Wolfowitz's arguments, Rumsfeld issued a memo to Pentagon
cmdrs on Sep 19 that addressed only al-Qaeda, the Taliban and Afghanistan.
Bush welcomed the panel's recommendations as "very constructive,"
although his Admin has reacted coolly toward a key proposal to
establish a Cabinet-level nat'l intel director. He said that "where
govt needs to act, we will."
Bush initially opposed the creation of the commission, resisted the
release of some documents and fought against letting nat'l security
adviser Condoleezza Rice testify publicly under oath. Still Kean
thanked Bush for allowing "unprecedented access to documents and
cooperation from your Admin."
Democrat John Kerry, campaigning for president in Detroit, said
disputes within the Bush Admin had delayed the commission's work and
improvements to the nation's security.
"Nearly 3 y after terrorists have attacked our shores and murdered our
loved ones, this report carries a very simple message for all of America
about the security of all Americans -- we can do better," Kerry said.
House Speaker Dennis Hastert, R-Ill, expressed doubt that lawmakers would
have time to consider sweeping reforms this y. But efforts began in both
the House and Senate to build bipartisan coalitions of support for the
recommendations. Relatives of Sep 11 victims said they would lobby, too.
"The families know that this is an election year. We're going to hold
these people's feet to the fire," said Debra Burlingame, whose brother
Charles was the pilot of the hijacked plane that struck the Pentagon.
The report portrayed the Sep 11 terrorists as sure-footed and
determined while the nation they were preparing to strike was
unprepared, sluggish and uncomprehending of the imminent danger.
"Across the govt, there were failures of imagination, policy,
capabilities and management," the commission concluded in a 567-page
indictment that documented a series of missed opportunities by the CIA
and FBI to uncover the Sep 11 plot. Nearly 3,000 people were killed
when 19 Arab hijackers flew airliners into NY's Twin Towers, the
Pentagon and the Pennsylvania countryside.
3 y later, Americans are safer because of improvements in homeland
security and the war against terrorists, the report said.
"But we are not safe."
"Every expert with whom we spoke told us an attack of even greater
magnitude is now possible and even probable," Kean said. "We do not
have the luxury of time."
The commission's report said that as the Sep 11 plot advanced, the US
govt was bogged down in an outdated Cold War mentality, lacking
imagination to deal with new threats or recognise the looming danger.
"What we can say with confidence is that none of the measures adopted
by the US govt from 1998 to 2001 disturbed or even delayed the
progress of the al-Qaeda plot," the report said.
Commission co-chairman Lee Hamilton, a former Democratic congressman
from Indiana, said a key finding was that no one in govt was in charge
of insuring that intel agencies pool resources, avoid duplication and
plan jointly to keep America safe. To unify efforts, the commission
recommended creating a nat'l counterterrorism centre.
It also recommended a Cabinet-level nat'l intel director to centralise
efforts now spread over 15 agencies in 6 Cabinet depts, including the CIA.
The report said Congress, like the executive branch, responded slowly
to the rise of global terrorism.
But the panel found that the "most important failure" leading to the
Sep 11 attacks "was one of imagination. We do not believe leaders
understood the gravity of the threat."
The commission identified 9 "specific points of vulnerability" in the
Sep 11 plot that might have led to its disruption had the govt been
better organised and more watchful. Despite these opportunities, "we
cannot know whether any single step or series of steps would have
defeated" the hijackers, the report concluded.
Some members have speculated the attacks could have been stopped.
"We do not know," Kean said. "We think it's possible. But we have not
drawn that absolute conclusion because we don't believe that absolute
conclusion is justified by the facts."
The report detailed contacts between Iraq and al-Qaeda, noting that
Osama bin Laden began exploring a possible alliance in the early
1990s. The report said that an Iraqi delegation travelled to
Afghanistan in Jul 1998 to meet with the ruling Taliban and with bin Laden.
While there were "friendly contacts" between Iraq and al-Qaeda and a
common hatred of the US, none of these contacts "ever developed into a
collaborative relationship," the report said.
That question has been the subject of intense political debate, as
critics accuse Bush of exaggerating the contacts between al-Qaeda and
Iraq to justify the war.
The panel said it did not find evidence that Iran, Iraq's neighbour,
had advance knowledge of bin Laden's plans, or that Saudi Arabia's
govt had a role in the terror conspiracy, which involved 15 Saudi hijackers.

9/11 Commission recommends intel overhaul
The Sep 11 report ... hot off the press.
Washington (AFP).  A nat'l commission probing the Sep 11 attacks has
found "failures of imagination, policy, capabilities and management"
by the United States govt and recommended a sweeping overhaul of intel
services.
In a 567-page report concluding 2 y of investigation the 10-member
bipartisan commission called for establishment of a "nat'l
counter-terrorism centre" to unify intel and operational planning
under a new "nat'l intel director".
The panel issued a broad indictment of US intel and air defences in
the attacks on the World Trade Centre and Pentagon that left nearly
3,000 people dead and sent the superpower reeling.
"What we can say with confidence is that none of the measures adopted
by the US govt from 1998 to 2001 disturbed or even delayed the
progress of the Al Qaeda plot," an executive summary said.
"Across the govt, there were failures of imagination, policy,
capabilities and management," it said.
The report by the bipartisan 10-member committee capped nearly two
years of work and was sure to fuel a politically charged debate
already raging over responsibility for the attacks.
With security looming as a major issue in Nov's presidential election,
the Democrats have slammed Mr Bush for massive intel failures before
the Sep 11 onslaught and laxity in beefing up homeland security since.
Mr Bush, who received a copy of the report, had insisted there was no
way he could have foiled the strikes.
"Had we had any inkling whatsoever that terrorists were about to
attack our country, we would have moved heaven and earth to protect
America," he said.
The Pres met on Thu with panel leaders to launch what he called a
"full discussion about how best to coordinate the different
intel-gathering services here in the country".
But he did not explicitly endorse calls for putting the US intel
apparatus -- currently a hodgepodge of agencies with different missions
and answering to different masters -- under a new Cabinet-level chief.
The conclusion there was no operational link between Al Qaeda and
Saddam Hussein also undermined one of Mr Bush's main justifications
for invading Iraq last y and intensified Democratic assaults on the
president's credibility.
The Whitehouse was also coping with the new allegations that Iran, a
member of Bush's "axis of evil" but untouched by US military action,
let 8 of the Sep 11 hijackers transit through its territory.
"As to direct connections with Sep the 11th, we're digging into the
facts to determine if there was one," Mr Bush said this wk.
Tehran has denied providing any support to the terrorist operation.
The Nat'l Commission on Terrorist Attacks Upon the US, named by Mr
Bush under pressure for a full-scale probe of Sep 11, interviewed
1000s of witnesses and scoured more than two mn pages of documents.
Through a series of gripping public hearings and 17 detailed staff
reports, it painted a chilling picture of how 19 hijackers foiled US
defences to strike at the heart of US economic and military power.
The panel identified numerous breaches of the US security network,
including botched analyses, poor communications or overly timid action
by agencies such as the Fed Bureau of Investigation and the Central
Intel Agency.

Praise, criticism greet 9/11 report
Washington (AFP).  Reactions to the final report of a US inquiry into
the Sep 11 terror attacks ranged from high praise for the panel's
exhaustive efforts, to outrage over perceived flaws and oversights in
the document.
US Pres George W Bush, speaking after being briefed on the report at
the White House by the nat'l commission's top officials, said they
recognised there was a still a threat of terror attacks hovering over
the US and vowed that "if the govt needs to act, we will".
"There is still a threat," Mr Bush said.
"We in the govt have an obligation to do everything in our power to
safeguard the American people."
He warmly embraced calls for revamping US intel efforts, including
placing a renewed focus on human sources but stopped well short of
endorsing the commission's call for placing the many US intel agencies
under a new, Cabinet-level "czar".
Mr Bush, who had initially opposed creating the commission that
investigated the failures that led to the attacks of 2001, eagerly
associated himself with some of the recommendations from the
bipartisan 10-member panel.
"I agree with their conclusion that the terrorists were able to
exploit deep institutional failings in our nation's defences that
developed over more than a decade," he said.
"We agree that better coordination between the various intel agencies
is needed; we agree that more human intel is needed, because we know
the best way to figure out what the enemy is thinking is to get to
know the enemy 1st hand."
Massachusetts Sen John Kerry, the Democrats' presidential candidate,
used the report's release as an opportunity to take a swipe at Mr Bush.
He said the Whitehouse had not done nearly enough since the Al Qaeda
attacks to combat terror.
"This report carries a simple message for all of America, about the
security of all Americans: we can do better," Sen Kerry said.
"We must do better and there is an urgency about us doing better."
On the floor of the US Senate, Democrats praised the commissioners as
heroes who had pulled off a monumental task in minutely documenting
how the attacks were carried out, and then providing practicable,
forward-thinking recommendations.
"They have done an incredible job," said NY Sen Chuck Schumer, whose
state, site of the World Trade Centre's twin towers, was hardest hit
in the terror attacks nearly 3 y ago.
"In this town racked by partisanship, to come up with bipartisan
recommendations is an amazing accomplishment in itself," Sen Schumer said.
"When you look at what the recommendations are and the thoroughness
with which the commission investigated the mistakes that were made in
the past, the report assumes an even greater magnitude," he said.
The Republican chairman of the Senate Intel Committee also praised the
report for finding that US intel officials failed to think outside the
box in envisioning the kinds of attacks terrorists might devise.
Sen Pat Roberts also told CNN TV that it was to the bipartisan
commission's credit that the report succeeded in appearing even-handed.
"The most important thing about this report, it doesn't look in the
rear view mirror and point fingers of blame," he said.
"It gets on beyond that and makes recommendations," said Sen Roberts,
whose intel committee earlier this m issued its own report on flawed
US intel, focusing on events leading up to the US-led invasion of Iraq.
Critics were emphatic in debunking the report.
Kyle Hence, co-founder of 9/11 Citizens Watch, criticised it as a
"catalogue of compromises, flawed premises, conflicts of interest,
unanswered questions, neglected areas of inquiry and ignored whistle-blowers".
"The report being released today by this so-called independent commission
cannot possibly be deemed definitive or authoritative as an account
for the events of Sep 11, not by any stretch of the imagination," Mr
Hence told a Washington press conference.
He added that the group intended to issue its own analysis detailing
its view of how the 9/11 attacks were carried out.
Others responding to the document focused on the way forward now that
the commission's work is finished.
Democratic lawmaker Sheila Jackson Lee told a press conference that
Congress should now turn its full attention to the panel's
recommendations, including the finding that a director is needed to
coordinate the disparate elements of America's unwieldy intel network.
"The question of whether or not we have a czar, a director...that
coordinates intel, I think, is key," Ms Jackson Lee said.
"One of the major emphases in this commission's report was the fact
that our intel system is not working," she said.

Armed protection for athletes allowed outside Olympic venues
Athens (ABC, Fran Kelly and AFP).  Greek Public Order Min Yiorgos
Voulgarakis says foreign athletes attending next m's Olympic Games can
receive armed protection from their countries but only outside Olympic
venues.  The Greek Govt has always insisted foreign security personnel
would not be allowed to carry weapons inside Olympic venues.  But
following requests from some nations the govt has confirmed foreign
athletes and dignitaries can have their own armed guards.  But Mr
Voulgarakis says the guards must be accredited by their embassies and
must surrender their weapons when they enter Olympic venues.  Greek
law currently forbids foreign personnel from carrying weapons inside
Greece.  With security at the games costing more than $1 bn, NATO has
just agreed to a request from Greece to place alliance troops on
standby in a nearby country in case of any terrorist threat.

No risk for Aussie Olympians: PM
Canberra (AAP).  There was no intel suggesting any particular risk to
Aussie athletes taking part in the Athens Olympic Games, PM John
Howard said.  But he could not guarantee there would be no terrorist
acts, he said.  "No, I can't guarantee it, no I can't," Mr Howard
said.  "The govt has received no intel suggesting that they are at
particular risk.  "[But] when you ask me can I guarantee something, I
have to honestly say I can't guarantee something.  "All I can say is
that all of the advice is that they are at no particular risk and the
Aussie Olympic Committee is satisfied with the security arrangements.
"But in relation to their safety, the govt continues to assess the
situation and, if there needs to be any change to the stance we have
taken, then obviously that change will occur."

Howard offers no guarantees on athlete safety
[But claims they're "safe"].
Canberra.  PM John Howard says there is no intel suggesting a
particular threat to Aussie athletes in Athens but cannot guarantee
their safety.  "I can't guarantee that, no," he said.  "I can say
that...there is no specific threat but it is impossible for me to
guarantee," he said.  Mr Howard's comments comes after Greece said
foreign armed guards could protect athletes outside Olympic venues.
No decision has been made on whether AUS's Olympic team will be
protected by armed guards.  Attorney General Philip Ruddock says
security requirements for Aussie athletes are still being assessed.
"We've had a high level of cooperation with Greek as well as other
authorities, and we will act as is appropriate to protect AUS's
interests," he said.  "These matters are the subject of ongoing
discussions, and I don't intend to pre-empt those discussions."

Only 6 militants surrender as Saudi amnesty expires
[Earlier reports claimed more than 60].
Riyadh (AFP).  6 militants in total surrendered to Saudi authorities
taking up the offer of royal amnesty which has expired, while 12
most-wanted terror suspects remained at large.
Saudi authorities hunting down militants behind a wave of deadly
attacks in the kingdom did not extend the one-m amnesty despite calls
for allowing militants more time to come forward.
2 suspects wanted in security-related matters surrendered on the last
day of the amnesty period, bringing the total number to 6.
Only one is on the kingdom's 26 most-wanted list.
Fawzan al-Fawzan was the latest to turn himself in to authorities.
He arrived late Thu with his family in Riyadh after surrendering to
the Saudi embassy in Damascus.
Another militant, Fayez al-Khushman al-Dossari turned himself in
earlier the same evening in the W city of Taef, hours before the end
of the amnesty offer.
Ibrahim al-Sadek al-Kaydi al-Harbi and Khaled bin Odeh bin Mohammed
al-Harbi both surrendered last wk and were extradited from Damascus
and Tehran, respectively.
Khaled Harbi is suspected of being a top Al-Qaeda figure and close to
Osama bin Laden.
Othman Hadi al-Maqbul al-Aamri, who is 19 on the wanted list,
surrendered on Jun 28 after 2 y on the run, while Saaban bin Mohammed
bin Abdullah al-Laylahi al-Shihri turned himself in the day after the
amnesty was granted.
But an active mediator between the govt and terror suspects said late
Thu that the leader of Al-Qaeda in Saudi Arabia and two other people
on the country's most wanted list were willing to negotiate their surrender.
Sheikh Safar al-Hawali told AFP that Saleh Mohammed al-Oufi was ready
to negotiate surrender terms along with 2 other unnamed suspects.
"Mediators confirmed that Oufi is willing to negotiate and they are
optimistic about the results," Hawali said.
"Negotiations with the other 2 suspects who are also on the 26
most-wanted list started over a m ago. They prefer to remain
anonymous," he added.
Oufi, a 38-yo former policeman, was reportedly involved in the latest
shoot-out between security forces and militants in Riyadh, which took
place on Tue night.
2 extremists were killed in raids by police that also led to the
discovery in a refrigerator of the head of US hostage Paul Johnson,
kidnapped last m by suspected Al-Qaeda members.
The interior ministry said Oufi's wife and 3 children were taken to safety.
But despite refusing to extend amnesty, the interior ministry said anyone
wanting to surrender but living in remote areas could declare their
willingness before the deadline while procedures would be completed later.
Hawali said that he has drawn a list of suspects willing to negotiate
surrender, which was to be presented to Crown Prince Abdullah Thu
before the end of the period.
"The confirmed list includes 8 suspects in Saudi Arabia, and 2 others
in Yemen", Hawali told AFP after the expiry of the amnesty.
"It was difficult to verify the willingness of around 15 more suspects
living in Arab countries to negotiate surrender, due to communication
problems", he added.
Hawali had told AFP earlier that Crown Prince Abdullah suggested
collecting the names of those willing to negotiate surrendering.
They will be included regardless of the period needed to conclude negotiations.
Al-Qaeda had swiftly rejected the pardon, issued on Jun 23, branding
it in a statement posted on Islamist websites as destined to fail.
The Saudi monarch coupled the one-m deadline for a "last chance" to
surrender with a warning of doom for those who ignore it.
The authorities have already been piling the pressure on militants
believed behind a spate of attacks in the oil-rich kingdom, which have
killed some 90 people and wounded 100s since May 2003.

Terrorism on the agenda for local govt
Hobart.  Local govt leaders from across AUS will meet in Hobart today
to discuss the threat posed by terrorism.  Fed A-G Philip Ruddock will
address the gathering to talk on terrorism and risk management of
critical infrastructure.  Hobart Lord Mayor Rob Valentine says it is
important local govts be brought up to scratch on what public
infrastructure could be the target of terrorists.  "We need to know
what the Commonwealth Govt feel, what they're doing about protecting
these sorts of facilities and what role they expect the capital cities
to play," he said.  "It's very important for us to know and to
understand what role we're expected to play in a major incident."  The
Council of Capital City Lord Mayors meeting will also discuss urban
planning policy and infrastructure planning.

Communication concerns regarding terror threats highlighted
Concerns have been raised about the level of communication between
city councils and state and fed govts on terrorist threats.
Hobart.  The lord mayors from AUS's capital cities are meeting in
Hobart today.
This morning they have been briefed by Fed A-G Philip Ruddock on
terrorist threats and risk management.
The Lord Mayor of Perth, Peter Nattrass, says a major counter-terrorism
exercise was held in his city about 3 wk ago and the 1st he heard of
it was in this morning's briefing.
"The purpose of today's meeting with Philip Ruddock was to highlight
to him the role that capital city councils can play in trying to
address this problem," he said.
"But I think it wouldn't be right to say that we didn't have close
liaison with our state govt, certainly with terrorism we haven't and I
think that we're all on a learning curve."
Mr Ruddock concedes communication needs to be improved.
He says concerns raised this morning will be taken on board.
"If you've carried out a major exercise and somebody in a major
capital city learns about it a wk after it's occurred, the cooperation
that's necessary hasn't been perhaps as close as it should be and
that's a matter that I intend to follow-up," he said.

Powell criticises Manila for 'rewarding' militants
Washington (AFP).  US Sec of State Colin Powell has lashed out at the
Philippines for pulling its 51 troops out of Iraq to save the life of
a hostage, saying it was "a very high price" to pay and "rewarded" the
militants for kidnapping.
"In effect, kidnappers were rewarded for kidnapping," Mr Powell said
after meeting with his Bulgarian counterpart, Solomon Passy.
"They were paid off. They made a demand, a political demand against
the Philippine govt, which the Philippine govt, a sovereign govt,
decided that it had to meet.
"When you start meeting the demands of kidnappers, I think you're
going down a very bad and slippery slope, which incentivises [sic]
kidnappings."
Asked what repercussions the action might have on US-Philippine
relations, Powell said "the Philippine nation and the Philippine
people are allies of the US, friends of the US, and we have been for
many, many years.
"We were very disappointed in the actions of the Philippine govt.  I'm
pleased that the Filipino gentleman was returned home safely, but I
think a very high price was paid for the policy position that the
Philippine govt took," he said.
"But friends can have disagreements and those disagreements have to be
worked out eventually."
Mr Powell hailed the Bulgarian decision not to cede to a similar
demand by kidnappers who killed one Bulgarian hostage and were
threatening Thu to kill a 2nd unless Bulgaria's 470 troops were
withdrawn from Iraq within 24 hr.
"I just want to thank the Bulgarian govt, the minister, and the
Bulgarian people for their clear understanding of how you have to deal
with this kind of situation, and for their strong support," he said.

Sales of healthy meals rocket
McDonald's celebrates its salad days
London (Independent).  The fast-food giant McDonald's posted its
fastest sales increase in 17 years yesterday, in a remarkable
turnaround the company credited to its new line of salads and other
"healthy" options.
Just 18 m after the company posted its 1st quarterly loss and saw its
share price drop 2/3 of its value, it announced second-quarter net
income of $591m (#320m), up from $471m for the same period last y.
The 25% increase was the biggest single-quarter jump since 1987.
McDonald's has faced every obstacle imaginable in the past 2 y --
complaints about its service, lawsuits attempting to blame the company
for America's obesity epidemic, a mad-cow disease scare, increases in
beef and cheese prices, attacks from anti-globalisation protesters
and, most recently, the documentary Super Size Me, in which a NY-based
film-maker eats himself sick on a steady diet of McDonald's
cheeseburgers and fries.
McDonald's and other fast-food chains appear to have revived customer
interest, however, by diversifying their menus and giving at least the
appearance of healthier options. Wendy's, a McDonald's subsidiary, and
Burger King have also increased their salad, low-fat and low-carb
options, with similar positive effects on the bottom line.
"We are encouraged by this progress and confident that our service,
food, value and marketing initiatives will generate steady
improvements over the long term," an ebullient McDonald's chief
executive, Charlie Bell, told reporters in a conference call.
In the US, as in Europe and other parts of the world, customers can
now order fruit slices for breakfast, bunless sandwiches and
lettuce-wrapped burgers, bottled water instead of soda, and full
meal-style "premium salads". As of a couple of m ago, the company has
begun offering Stepometer machines so customers can monitor how much
exercise they are getting in the course of their day.
It is not clear whether the company's new-found success is due to a
perceived increase in quality and healthiness on its menu -- something
that has been contested by its detractors -- or simply to the
increased variety of food on offer.
In his film Super Size Me, Morgan Spurlock uses McDonald's own
nutrition statistics to show that the salads, too, are chock-ful of
fat, cholesterol and other health no-nos -- because of the dressings
and because of their non-green ingredients. The Caesar salad with
chicken premiere, for example, contains more fat than a cheeseburger.
Mr Spurlock's film has been a public relations, if not a commercial,
disaster for the company. Shortly before it was released in the United
States, McDonald's abandoned the practice of "super-sizing" -- offering
monster portions of fries and Coke -- and moved to introduce the Stepometer.
Stock analysts commenting on the McDonald's turnaround have credited
much of it to improved management of the chain, starting with Jim
Cantalupo, chief executive until his sudden death from a heart attack
in Apr, and continuing under Mr Bell.
Mr Bell is not well either -- having just undergone a course of
chemotherapy -- and he said in his conference call that although he
felt good the company had a succession plan in place, just in case.
* A WEIGHTY ISSUE
Food companies and outlets are increasingly turning their attention to
producing more healthy fare for reasons from customer preferences to
the threat of legal action.
In the name of "consumer demand", Birds Eye gave a guarantee this m
that all 130 of its products are free from artificial colourings,
flavourings, preservatives and, therefore, nearly all E numbers. It
also announced it was substantially cutting salt and saturated fat levels.
But adverse publicity was what stung several firms, including United
Biscuits and Cadbury Schweppes, into action. As a result, both
companies announced they were reducing levels of hydrogenated
vegetable fat, a hardening agent that doctors say has a similar effect
on human arteries.
The Dept of Health last m "named and shamed" 27 companies including
McDonald's, Heinz and Nestle, for failing to form adequate plans to
cut salt levels. Manufacturers responded with a 5% cut in salt in
sliced bread -- food experts said was just a 3rd of that which should
be put into effect immediately.

Bulgaria confirms Iraq hostage body
Sofia (AP).  A decapitated body found last wk in Iraq has been
identified as that of Georgi Lazov, a Bulgarian truck driver who was
captured and held hostage by a militant group, Bulgaria's Foreign
Ministry said.
The headless body had been found in the Tigris River, N of Baghdad, on
Jul 15. Bulgarian officials had been trying to determine whether it
was the remains of either of 2 Bulgarians who were kidnapped nr the N
city of Mosul.
"The fingerprints taken from the body found on Jul 15 match with those
of Georgi Lazov," Foreign Ministry rep Vic Melamed said.
Melamed also confirmed reports in Iraq that a second decapitated body
was found, but said there was no info about the identity of that body.
Lazov, 30, and Ivaylo Kepov, 32, were kidnapped on Jun 29 as they were
driving trucks loaded with used cars to Mosul.
The men's wives had appealed to the kidnappers to show mercy for their
husbands, who took the risky but well-paid jobs in Iraq out of
financial need.
Neither of the 2 women could be reached.
In the city of Kocherinovo, the hometown of the executed truck driver,
people were shocked after hearing radio reports that Lazov had been
confirmed dead.
"We knew that there was almost no chance that Georgi was alive, but
hope dies last," said Georgi Klisurski, a city hall employee.
Dimitar Sotirov, the mayor of Boboshevo, the hometown of Kepov, the
other kidnapping victim, said in a phone interview that people in the
community were prepared for bad news. On Fri, the town council would
decide whether to declare official mourning, he added.
Hristo Hristov, 48, a technician from the nearby city of Dupnitsa,
said that he felt sorry for the killed Bulgarian, but added that
drivers who go to Iraq are well aware of the huge risks they face there.
"The govt should be held responsible only for those who are sent
officially to Iraq," Hristov said and added that he supports
Bulgaria's policy to keep its peacekeepers in Iraq.
Bulgaria, which joined NATO earlier this y, has a 480-member infantry
battalion serving in central Iraq.
The country lost 5 soldiers in a suicide attack against its base in
Dec. In Apr, a 6th Bulgarian was killed in a skirmish with insurgents.
The govt has said it will not withdraw its troops despite the execution.

US report finds more Iraq prisoner abuse
Abuse by the US military was more extensive than previously reported.
Washington (AFP).  A US army probe has so far unearthed 94 cases of
abuse of detainees at US-run military prisons in Iraq and Afghanistan,
Pentagon officials said.
The findings by the army's inspector general were made public at a
hearing of the US Senate Armed Services Committee.
Acting Army Secretary Les Brownlee told lawmakers that between Oct
2001 and early Jun 2004, 94 cases of "confirmed or possible abuse of
any type, which include theft, physical assault, sexual assault and
death" were uncovered.
"The army has initiated criminal investigations into these allegations
and, where appropriate, legal action has been and will be taken," Mr
Brownlee told the panel, emphasising that the abuse was in direct
violation of army regulations.
"These incidents resulted from the failure of individuals to follow
known standards of discipline and army values and, in some cases, the
failure of a few leaders to enforce those standards of discipline," he said.
He said the study was ordered after numerous detainees had been abused
by US army prison guards at Baghdad's Abu Ghraib prison.
He added that the abuse, while appalling, was, as far as the army
could determine, the exception, rather than the rule.
"This represents an extremely rare chapter, in my opinion, in the
otherwise extraordinary proud history of our armed forces," he said.
"It defies common sense and contradicts all the values which Americans
stand for and which our military defends," he said.
Mr Brownlee noted that since Oct 2001, US forces had detained some
50,000 individuals in Afghanistan and Iraq.
A team of investigators conducted their inspection over a 5-m period,
visiting some 16 detention facilities in US central command.
Pentagon officials told the panel that the investigators interviewed
some 650 soldiers, non-commissioned officers and officers, in
compiling the data for the report.
Mr Brownlee said the abuses point to the army's need to continue to
improve training and discipline.
"Prior to 9/11, few people in our military had experience in the
detention of prisoners," he said.
"It was a skill not often practised."
That has changed since operations began in Afghanistan and now
continuing through Iraq," he said.

US Army: 94 Confirmed, alleged cases of abuse in Iraq, Afghanistan
Washington (VOA).  The US Army's inspector general has found a total
of 94 cases of confirmed or alleged abuse of prisoners by US troops in
Iraq and Afghanistan, a higher number than previous estimates by the
Defense Dept. The inspector general testified before a Senate panel Thu.
The Army's Inspector General, Lt Gen Paul Mikolashek told
the Senate Armed Services Committee he found no evidence that there
were systemic problems that contributed to the prisoner abuse.
Instead, he said much of the abuse was a result of officers not
following proper interrogation policies. "We found that training and
oversight of these policies were inconsistent, but also could find no
confirmed instance involving the application of an approved approach
technique that led to abuse," he said.
Acting Secretary of the Army, Les Brownlee, responded to the inspector
general's findings. "These incidents are not representative of army
policy, doctrine, or soldier training," he said. "These actions, while
regrettable, are aberrations compared to the actions of 100s of 1000s
of our soldiers who have served and continue to serve around the world
with distinction and honour."
7 soldiers are facing charges in connection with the prisoner abuse scandal.
The inspector general's report was ordered by top military officials
in Feb, after allegations surfaced about abuse of Iraqi detainees at
Abu Ghraib prison outside Baghdad.
The report also notes that an Internat'l Committee of the Red Cross
report in Feb alleged that military intel officials used physical or
psychological coercion to force confessions or cooperation.
But Inspector General Mikolashek said his investigation did not pursue
the Red Cross allegations.
The comments drew an angry response from Sen Jack Reed, a Rhode Island
Democrat. "You have not looked at the responsiveness of the chain of
command evident in explicit reports of abuse," he said. "It seems to
me this is just reinforcing the conclusion that there are just 5 or 6
aberrant soldiers. I do not think you have done the job that you have to do."
Sen Jeff Sessions, an Alabama Republican, expressed concerned the
prisoner abuse scandal would prompt military officials to reassess
effective legal interrogation tools.
"We want our soldiers right up to the limit of what they can legally
do to obtain good intel," he said.
The inspector general report also found that between Oct 2001 and Jun
of this y, the US had held more than 50,000 prisoners in Afghanistan
and Iraq.

Army calls abuses 'aberrations'
Washington (WashPost).  The Army's inspector general reported
yesterday that 94 incidents of confirmed or possible detainee abuse
occurred in US prison facilities throughout Iraq and Afghanistan, but
he added that the incidents were not due to "systemic" problems, even
though a months-long inspection found that soldiers were inadequately
trained and lacked proper supervision and clear orders.
The report by Lt Gen Paul T Mikolashek -- presented to the Senate
Armed Services Committee at a hastily scheduled hearing yesterday
morning -- concluded that cases of abuse such as those at Abu Ghraib
prison were "aberrations" that did not result from flawed Army doctrine.
Some senators and human rights advocates criticised the report. They
said it ignored many of the most important questions, such as the
hiding of "ghost detainees" and the use of un-muzzled dogs during
interrogations. They also said the report's findings are contradicted
by the Internat'l Committee of the Red Cross.
Mikolashek and his team blamed 20 detainee deaths and 74 other
reported instances of abuse -- including beatings, sexual assaults and
thefts -- on "the failure of individuals to follow known standards of
discipline and Army values and, in some cases, the failure of a few
leaders to enforce those standards of discipline."
Mikolashek's 300-page report was released on the same day as the
eagerly anticipated report of the nat'l commission investigating the
Sep 11, 2001, terrorist attacks. Mikolashek's inspection team detailed
failures at 16 prison facilities. His report said the abuse cases were
not part of a pattern and involved a tiny%age of the more than 50,000
detainees who have been held by US forces in Iraq and Afghanistan. The
Pentagon and the Bush Admin have blamed a band of rogue soldiers for
the abuse at Abu Ghraib.
"These abuses should be viewed as what they are -- unauthorised
actions taken by a few individuals," the report said, which went on to
praise the majority of soldiers. "We found numerous examples of
military professionalism, ingrained Army values and moral courage in
both leaders and soldiers."
Mikolashek said that he looked at broad Army doctrine and training,
interviewed 650 soldiers and officers, and visited more than 2 dozen
military installations in Iraq, Afghanistan and the United States.
He did not investigate individual cases of abuse, relying instead on the
findings of previous Army investigations. His team looked at the records
of 125 reported cases of detainee abuse and found that no abuse occurred
in 31 cases. Of the rest, 54 cases remain "open or undetermined."
Of the 20 deaths considered confirmed or possible abuse, 10 occurred
at prisons or other permanent holding facilities, 5 at forward
collection points and 5 at the point of capture. Nearly half of the
alleged cases of abuse occurred at the point of capture, while 22%
were reported at the holding facilities, which included Abu
Ghraib. The remainder came from collection points and other locations.
Though the Army inspectors did not discover systemic detainee abuse,
they did document widespread problems throughout the US military's
detention operations in Iraq and Afghanistan. They said that there
were not enough translators and interrogators in the field and that
valuable intel may have been lost. To make up for the shortage, the
military hired private contractors to conduct interrogations, but more
than a 3rd of those workers were not properly trained in military
interrogation techniques, the report said.
The inspectors found that nearly 2 thirds of the detainees were held
at makeshift prison camps called collection points for as long as 30
days. Army doctrine restricts the lengths of stay to 12 hr at the
camps, some of them little more than concertina wire and a feeding
station set up in the middle of the desert.
The inspectors also said that there were widespread problems with
preventive medical services for those captured, and that none of the
US-run facilities the team inspected was in compliance with the Army's
medical screening requirements.
In addition, only 4 of the 16 facilities the team visited had copies
of the Geneva Conventions in the detainees' native languages, as
required under internat'l laws of war. None of the facilities in
Afghanistan complied with the requirement, according to the report.
Extremely poor conditions were documented at US-run facilities in Iraq
and Afghanistan. At Abu Ghraib, the inspectors discovered serious
overcrowding, garbage and sewage covering the grounds of the outdoor
camps, and only 12 shower heads for 600 to 700 detainees.
Fresh water was in short supply. So were detainee meals, which were
frequently contaminated with dirt and rodent droppings.
The location of Abu Ghraib, 20 miles from Baghdad and nr an urban and
hostile area, "lends itself to poor and dangerous living and working
conditions," the report said. The inspectors recommended that Abu
Ghraib be closed and its detainees transferred to Camp Bucca, in a
more isolated area of the country.
In Afghanistan, inspectors documented numerous problems at the Bagram
air base, a former Soviet airfield, portions of which the US turned
into a detention and interrogation centre. The inspection team said
the facility was plagued with safety hazards.
The roof leaked. Toxic chemicals from previous airport operations
contaminated sections of the facility. There was no sanitary system.
"Human waste spills were frequent on the main floor," the inspectors said.
The report stands in sharp contrast to findings issued by the Red
Cross. The agency has called the abuse it found part of a pattern.
In Feb, the Red Cross prepared a confidential report concluding that
detainees under the supervision of military intel soldiers and
officers "were at high risk of being subjected to a variety of harsh
treatments ranging from insults, threats and humiliation to both
physical and psychological coercion, which in some cases was
tantamount to torture."
The agency said the widespread "use of ill-treatment" could be
considered a "practice tolerated" by the coalition forces because it
continued even after Red Cross warnings to US military and govt officials.
A Red Cross rep declined to discuss the Army report yesterday.
Mikolashek said his team found no widespread evidence that un-muzzled
dogs were used in interrogations or that ghost detainees were shuttled
through the system, practices that were mentioned in an earlier and
widely publicised report by Army Maj Gen Antonio M Taguba.
Sen John McCain (R-Ariz) said he was not satisfied with Mikolashek's
report or its findings. "If you didn't look at the gross and egregious
violations, what else didn't you investigate?" McCain asked.
Sen James M Talent (R-Mo) praised the report as "vindicating our
leaders and our soldiers."
The Army's inspection report was one of several ordered this spring
after the revelation -- in vivid and shocking digital photographs --
of abuse at the Abu Ghraib prison.
Though the report detailed many problems at Abu Ghraib, it blamed a
few soldiers and failed leadership at the prison.
Mikolashek assigned no blame to high-ranking officers in Iraq, but he
criticised some policies as confusing. He reported that military intel
and military police had conflicting instructions about their relative
roles at the prison that could "create settings in which un-sanctioned
behaviour, including detainee abuse, could occur."
The report attacked the interrogation policies as being vague: "While
the language of the approved policies could be viewed as a careful
attempt to draw the line between lawful and unlawful conduct, the
published instructions left considerable room for misapplication."
A lawyer for one of the 7 soldiers implicated in the Abu Ghraib case
labelled as a "whitewash" the finding of no systemic abuse.
"That would be tantamount to hiding one's head in the sand," said Guy
Womack, who represents Spc Charles A Graner Jr, a reservist with the
372nd Military Police Company in Cresaptown, Md.
After the hearing, McCain said he does not believe the report was a
whitewash, but he added "there are certainly questions."
Sen Jack Reed (D-RI) faulted the report in an interview yesterday for
not examining chain-of-command issues. "It has not answered with
finality what went wrong," he said. "We don't know in a definitive and
factual way what were the policies coming out of higher HQ. It's
pretty murky."
Research editor Margot Williams contributed to this report.

Guantanamo detention tribunals begin
Guatmo.  Special military tribunals have started to review the
detention of 100s of prisoners at Guantanamo Bay in Cuba.  The
tribunals will decide whether their custody is legal.  2 Aussies,
David Hicks and Mamdouh Habib, are being held in Guantanamo Bay.  The
move comes after the US Supreme Court ruled that inmates can challenge
the US Govt.  The joint detention cmdr, Col Nelson Cannon, says if
inmates are found innocent they will be released.  "I'm very happy for
the tribunals to look at the enemy combatant status," he said.  "If
they determine that they should not have been considered as enemy
combatant then they'll be released."

Roadside bomb kills US soldiers
Baghdad (AFP).  2 US soldiers have been killed and one wounded when
their convoy hit a roadside bomb outside the rebel city of Samarra N
of Baghdad, the US military said.  "One soldier died in the attack,
and the 2nd died later of wounds from the attack," it said in a
statement.  A vehicle was also damaged in the blast, which occurred at
about 6:30 pm local time according to the US military.  Samarra, 125
km N of Baghdad, has been the scene of sporadic deadly clashes since a
powerful suicide car bomb attack on Jul 8 on the city's Iraqi Nat'l
Guard HQ killed 5 US soldiers and 4 Iraqi guardsmen.

More than 160 arrested in Baghdad operation
Baghdad (BBC).  The Iraqi Nat'l Guard says it has mounted a major
operation in central Baghdad and arrested many people suspected of
helping insurgents.  The head of the force says up to 165 people have
been arrested in an operation that lasted for several hours.  Earlier,
the American military authorities in Iraq said US marines had killed
25 insurgents in a gun battle in the city of Ramadi, W of Baghdad.

Small UN contingent heads to Iraq
UN (Reuters).  The new UN chief envoy for Iraq will go to Baghdad next
m along with a small team to reestablish a permanent UN presence, says
Sec-Gen Kofi Annan.
Veteran Pakistani diplomat Ashraf Jehangir Qazi, Annan's newly
appointed special representative for Iraq, dismissed concerns UN
officials would be unwelcome in the country torn by lawlessness but
acknowledged security was a top concern.
"I believe there is every reason for the Iraqi people to see the UN
mission in Iraq as a mission in their service -- for them -- and it
will be my job to strengthen that impression," Qazi told reporters on Thu.
The world body at one point had some 600 internat'l staff working in
Iraq following the US-led invasion.
All were pulled out last y after a bomb attack on UN offices in Baghdad
killed 22 people, including Qazi's predecessor, Sergio Vieira de Mello.
But from what he has heard, Qazi said Iraqis "believe the UN has a
vital role to play ... in bringing about a political transition in
which the entire Iraqi people are stakeholders."
While all security precautions would be taken, "ultimately, of course,
life is in Allah's hands," Qazi said.
Just a handful of UN staff are in Iraq at the moment -- a team of
technical experts helping set up a nat'l conference on Iraq's
political future, and a security liaison team.
Hundreds of other UN staff are working on Iraqi projects from
neighbouring Jordan. But a large permanent presence in Iraq would need
soldiers to protect them, particularly if the world body is to help
prepare for elections expected in Jan, Annan said.
The Sec Council has called for a dedicated force to protect UN
staff. But no country has yet agreed to contribute troops although
several have discussed the possibility including Pakistan, Nepal,
Georgia, Azerbaijan and Ukraine.
Pakistan has indicated it would send soldiers only if Iraq's interim
govt asked it to and if other Muslim countries sent troops, Annan said.
Until the force was in place, the world body could work on the
"absolutely essential" tasks of election preparations and the
political transition, using interim security arrangements.
But it would be unable to do much on reconstruction, institution
building and human rights matters, "and this I think the internat'l
community understands," Annan said.

UN evacuates staff from Gaza Strip
Gaza.  The UN Nations says it plans to evacuate non-essential foreign
staff from the Gaza Strip because of the deteriorating security
situation.  The move follows a UN decision to move Gaza up to security
level "Phase Four", one step below the maximum which requires all
internat'l staff to leave.  Unrest between Palestinian rivals surged
in Gaza over the weekend and 4 foreign aid workers were briefly
kidnapped.  The UN agency for Palestinian refugees says their main
concern is that staff could be caught in crossfire with Israeli troops.

Court to rule on Bali terrorist conviction challenge
[Later reports say court rules trials unconstitutional].
Jakarta.  Indonesia's constitutional court will today rule whether the
conviction of a member of the Bali bomb plot should stand or be
overturned.  The decision, which could apply to all the convicted Bali
bombers, will be based on the use of anti-terror legislation in the
prosecutions.  The anti-terror laws were only brought into force after
the Bali bombing and the constitutional challenge hinges on a passage
in the constitution that expressly rules out trial under a law being
applied retrospectively.  The man bringing the appeal, Masykur Abdul
Kadir, was one of the more junior conspirators in the bomb plot, but
any decision overturning his conviction could lead the quashing of the
convictions of the ringleaders, including 4 men now on death row.
Prosecutors argued during the trials that the Bali bombings amounted
to gross human rights violations and as such it was internat'ly
accepted that an exception could be made to the retrospectivity provision.

Ukip MEP foiled by female fury
Brussels (Guardian).  The women of the European parliament today took
revenge on Godfrey Bloom, the Ukip MEP, when they thwarted his attempt
to join a committee devoted to women's rights.
Mr Bloom caused uproar on Tue -- his 1st day in Strasbourg -- by
attacking maternity rights, saying pregnant women should resign from
their jobs. He then added that women should spend more time "cleaning
behind the refrigerator".
He said he wanted to join the committee to "promote men's rights" and
"Yorkshire women, who always have dinner on the table when you get home".
Today, Mr Bloom had what a Ukip party rep described as "ding-dong"
with Italian MEP Allesandra Mussolini, a descendant of the Italian
dictator, on the floor of the parliament.
Ms Mussolini objected to Mr Bloom's proposed appointment on the
grounds that she was sure he was not capable of cleaning behind the
fridge or cooking.
Mr Bloom surpassed Robert Kilroy-Silk as Ukip's most famous member
after creating party policy on maternity rights in a series of one-liners.
MEP Glenys Kinnock expressed some pleasure that Mr Kilroy-Silk, a
former daytime TV presenter, would have had his "nose put out
of joint" by the attention directed at Mr Bloom.
She added that a "turn the clock back" mentality lay beneath the
Yorkshire MEP's comments.
"He's entitled to join the committee, though I wouldn't hold out much
hope he'll enjoy it or get an easy ride," she said, adding that Ukip's
less than exemplary attendance record in the European parliament
suggested he might not even attend the committee's meetings.
"In the last parliament, they [Ukip] went to the minimum number of
committee sessions to qualify for allowances, and that is all you saw
of them," she added.
Ukip's leader in Strasbourg, Nigel Farage, said the party's 11 MEPs
hoped to disrupt and delay new EU legislation, raising the possibility
that Mr Bloom could have use a position on the women's rights and gender
equality committee to obstruct new maternity and paternity pay initiatives.
Earlier this wk, he told Guardian Unlimited that the UK's maternity
policy, which guarantees a woman 6 m of paid leave after having a
baby, should be scrapped because it was costing women jobs.
"If you're a small business, you'd be a lunatic to hire a woman of
child bearing age," he said. "If you want to have a baby, you hand in
your resignation and free up a job for another young lady."
Liberal Democrat MEP Emma Nicholson, a former member of the women's
committee, said it hoped to discuss an extension of paternity rights
-- currently at 2 wk paid leave in the UK -- in its next session.
Mr Bloom will serve as a substitute member of the women's committee, a
position Baroness Nicholson described as "valueless".
She said she credited the EU for "100% of the UK's current maternity
allowance", and added: "Maternity leave is one of the most important
provisions that the EU has brought in. In an equal opportunities society,
both men and women have a right to exercise talents and earn money,"
she said.
Back in Wressle, Yorkshire, Mr Bloom's neighbours were distinctly
unimpressed with their new representative in Europe, with women in the
village describing him as a "buffoon".
"My husband and I are a small business, and I can tell you they wouldn't
exist without women," local businesswoman Claire Smith told the Guardian.

Former Portuguese PM to head European Commission
Brussels (BBC).  The European parliament in Strasbourg has voted to
accept former Portuguese PM Jose Manuel Barroso as the next president
of the European Commission.  Mr Barroso had been nominated for the
position by EU heads of govt after m of wrangling.  In accepting his
new post he said he would seek to build a united European coalition
"I'm delighted, honoured and proud that European Parliament have
confirmed my appointment," he said.  "As I've told you, I see myself
as someone who can build bridges, I think that left-right is only one
dimension in politics, there are others."  Mr Barroso will take over
the job when the current commission president Romano Prodi steps down
later this y.

Seafood industry teaching kit to raise industry awareness
The Fed Govt has released a new primary school teaching kit on AUS's
seafood industry.
Canberra.  The kit, The Story of Seafood, is AUS's 1st education
program to raise awareness of the industry.
Fed Fisheries Min Sen Ian Macdonald says seafood generates more than
$2.4 bn to the Aussie economy each year.
"It's only by educating our younger generation about the importance of
seafood will we ensure that it is sustainably harvested for
generations to come," he said.
Sen Macdonald says it also addresses environmental issues.
"It's a fun way of learning [about] the importance of fish to our planet
and it's an important story to tell about how we should preserve our
fish so that the ecology is clear in the future and...so we have
plenty of good healthy seafood to feed young growing bodies," he said.
Sen Macdonald says the publication is well-researched, fun educational
material, which will encourage children to make seafood a major part
of their diet while providing them and the fishing industry with a
healthy future.
"It's not boring black and white data," he said.
"It's bright, easy to read and has a heap of 'fishy' jokes, but at the
same time delivers a crucial message."

Radio announcer fined over bullying
Melbourne.  A Vic radio announcer has been convicted on 2 counts of
workplace bullying and fined a total of $10,000.  Ballarat Magistrates
Court heard Reginald David Mowat, 34, of Ballarat verbally abused,
physically threatened and assaulted 5 employees of Ballarat radio
station 3BA during a three-y period to Oct last year, before being
sacked.  Mowat's lawyer said his client had volunteered to be
interviewed by police, pleaded guilty to the charges and acknowledged
that his conduct was inappropriate.  Magistrate James Mornane said
despite some shortcomings in how Mowat was managed and an exemplary
work record since, the explosive, repetitive and serious nature of his
behaviour warranted conviction and a $10,000 fine.

Track athlete cleared of doping offence
Canberra.  An Aussie male track and field athlete has been cleared of
a drug offence by Athletics AUS.  However Athletics AUS is unable to
name the person who will compete at the Athens Olympics.  The athlete
was stopped by Customs in 1998 on his return from overseas.  Athletics
AUS says under privacy rules it cannot name the person, nor will it
identify the country he had returned from.  Athletics AUS says the
athlete brought back capsules containing the stimulant ephedrine.  It
says the substance is not illegal during out of competition testing.
The athlete says be bought the substance as a natural weight loss
product.  Athletics AUS says the athlete has cooperated fully with
their inquiries.

Fairfax strike could hit weekend papers
Sydney.  Tomorrow's weekend Fairfax papers in SYD could be a little
thinner due to a strike by its printing staff at Chullora in W SYD.
More than 300 workers involved in printing, maintenance and electrical
jobs are expected to strike today between 2:00pm and 5:00pm and again
at 10:00pm for 3 hr.
Mathew Love from the Aussie Manufacturing Workers Union (AMWU) says
the union is seeking a better pay rise than Fairfax is currently
offering, more notice of redundancies and the opportunity for long-
term casuals to become permanent.
"At times there's up to 130 people employed casual at Fairfax or
working regular hours in excess of 35 hr a week, so it's just
ridiculous that that many people can be employed for such a long
period of time with absolutely no provision to be made permanent," he said.
Mr Love says tomorrow's SYD Morning Herald, the Financial Review and
Illawarra Mercury will be delayed and there will be problems with some
of the inserts or sections.
Fairfax says it is working through the issues with the union and
readers should not expect significant disruptions to their weekend papers.

Telecoms, energy sectors need more competition: ACCC
Canberra.  AUS's competition watchdog has lamented the lack of
competition in both the energy and telecommunications sectors.  The
Aussie Competition and Consumer Commission (ACCC) believes
consideration should be given to forcing Telstra to sell its cable
network and Foxtel holding.  Chairman Graeme Samuel has told the
Aussie Council for Infrastructure Development that "aspects of the
telecommunications market remain far from truly competitive with the
continuing dominance of Telstra over virtually all aspects of the
industry continuing to retard effective competition".  Mr Samuel says
its major competitor Optus still relies heavily on Telstra for access
to its customer base, and Telstra's partial ownership of Foxtel also
acts to deny competition.  Commissioner Ed Willet has also voiced
concern about recent merger activity in the electricity industry and
says plans for more acquisitions threaten to reverse the reforms of
the past decade.

More families to receive $600 pre-election sweeter
Canberra.  More than 100,000 families, initially denied the Fed Govt's
new $600 family payment announced in the Budget, will now receive the
windfall.
Those who missed out include families with children born between the
May Budget and the end of the financial year, families with older
teenage children on Abstudy, veterans' families and families who
receive other benefits in a lump sum.
Families Min Kay Patterson says the $600 payments will be sent to
those families soon but insists the Govt did not mean to exclude them
from the payment.
"We knew that we had to do this, we built a provision into the
legislation to cover these small groups of people that needed to be
paid in a way that was different from the 2 major groups who were paid
automatically," she said.
Meanwhile, the Prime Min says he will consider extending the Govt's
carers payment announced in the May Budget to more people.
A caller to ABC local radio in Bris this morning said carers who
registered between the those 2 dates, should also be eligible for the
carers payment.
"That is a very good point, that has not been raised with me before," he said.
"As a matter of principal, it should and I will have a look at that."
"There may be provision for it."
The Fed Opp'n has supported a call for extending the govt's carers payment.
Opp'n family services rep Wayne Swan says the carers deserve the money.
"They certainly have a strong case and being left out is yet another
illustration of why these one-off payments are not good social policy
and that that payment should have been built into a regular
fortnightly payment," he said.
"That is what the carers want, they want some sustainable relief over time."

Inquiry call over Rann's Nat'l Party appointment
[While SA Nats and Libs are ropable, 70% of voters in Maywald's
electorate are in favour of her Cabinet position].
Adelaide.  A SA Fed Liberal MP wants an independent corruption probe
into the SA Govt's recruitment of Nat'l Party MP Karlene Maywald.
Mrs Maywald will be sworn in today as the Min for the River Murray,
Small Business, Regional Development and Consumer Affairs.
The Liberals say Mrs Maywald's rise to Labor's front-bench will cost
taxpayers around $2 mn a year.
Fed Liberal MP Patrick Secker says the decision to add Independent MP
Rory McEwen to the Cabinet team about 18 m ago cost about the same.
Mr Secker, who was facing a possible challenge from Mrs Maywald for
his seat of Barker, has accused the Govt of buying a majority in
Parliament's Lower House by appointing the State' only Nat'l MP.
He says there should be an independent corruption inquiry into whether
the recruitment of non-Labor MPs to ministries has been ethical.
"I'm really concerned at the use of taxpayers' money to shore up a
govt's position in the House of Parliament, that is a complete misuse
of power," he said.
But the Prem says the Govt has been open about the appointments and
has laughed off Mr Secker's suggestion.
"I can understand that he's upset that he's unlikely to make anyone's
front-bench but the statement was quite unhinged," he said.
Independent Min Rory McEwen has rejected the Opp'n claims that he and
Mrs Maywald have been bought by the Govt.
Parliamentary Speaker Peter Lewis also says he is not concerned about
his future in the wake of Mrs Maywald's appointment to the Govt ministry.
The Democrats claim Mrs Maywald's appointment gives Labor a majority
in the Lower House and is part of a Govt move to dump Mr Lewis as speaker.
Mr Lewis says he has a written guarantee from the Prem that he will
stay on as Speaker for the duration of this Parliament and is not worried.

Man in serious condition after shop explosion
A gas cylinder explosion in MEL has left a man seriously injured.
Melbourne (AAP).  A man was seriously injured when he fell out a
second floor window today after a gas cylinder exploded at a MEL cafe.
4 other people were treated for shock after metal and glass flew onto
the Moonee Ponds street and a fire began, spreading to an adjoining property.
An Ambulance rep said officers were called to the cafe in Puckle St just
before 9am after a gas cylinder had exploded at the rear of a cafe.
Several fire trucks were called to the scene.
A witness said he saw a man jump from a 2nd floor building onto the
awnings above the shop next door.
"There was a huge explosion, I looked out ... and flames from the
explosion were above the two-storey building next door, you could see
it from our office window," he told ABC radio.
"There was a chap that's just jumped out of the window onto the
awnings above the shop next door."
Metropolitan Fire Brigade rep James Howe said a man in his 50s was
taken to the Royal MEL Hospital in a serious but stable condition.
He said the man had cuts, bruises and injuries consistent to being
thrown, but he could not confirm whether the man had jumped from a building.
Mr Howe said 4 other people were also treated by ambulance crews for shock.
The street has been blocked to traffic and is expected to be closed
for several hours.
He said it was fortunate the explosion occurred while there were few
people in the area.
"If this had have happened at lunch time we would have been in a lot
of strife," Mr Howe said.
"It would have been an absolute disaster."

Poor weather affects missing sailor search
Perth.  Bad weather has continued to hamper the search for a 73-yo
Albany sailor missing off the W Aussie NW coast.  Jim Wellstead is on
the return leg of a trip to Karratha on his 7-m yacht, but has not
made contact with authorities for more than a week.  7 search planes
are in the NW to help scour the Coral Bay and Carnarvon area for Mr
Wellstead.  But the water police say only one of the planes could be
used yesterday because of strong winds and rain in the area.  The
weather has also reduced the water-borne search to one boat.

Asbestos compensation fund directors apply for exemption
Asbestos manufacturers want to be exempt from laws covering directors'
duties.
Sydney.  The directors of an under-funded foundation holding the
liabilities of Aussie asbestos manufacturers are today applying to be
exempt from laws covering directors' duties.  The unusual application
is a result of insurance companies around the world refusing to
indemnify the directors of the Medical Research and Compensation
Foundation.  The foundation, set up by the James Hardie company before
it moved overseas, expects to pay $5 mn a m to asbestos disease
sufferers.  The compensation bill could reach $2 bn over the next few
decades.  The directors want to make full payments to people diagnosed
with asbestos diseases, but they believe they could be held liable by
future victims for authorising payouts when they know there is not
enough money for everyone.  They want a ruling that they cannot be
held liable for any negligence or breach of trust and duty as directors.

MEL drug courier faces death in Singapore
Singapore.  A MEL man found guilty of drug offences could become the
first Aussie to be executed in Singapore.  Van Tuong Nguyen, 22, was
acting as a courier when he was caught with nearly 400 grams of pure
heroin at Singapore airport.  His Aussie lawyer, Lex Lasry QC, says an
appeal against his mandatory death sentence will be heard in Singapore
on Mon.  Mr Lasry says his client is a young 1st offender and in AUS
his sentence would typically be between 5 and 10 y jail.  "If the
appeal were to fail then the next step would be to ask the president
of Singapore to exercise a power of clemency," he said.  "If the
appeal succeeds, some lesser penalty would be imposed, a long period
of imprisonment and of course Singapore maintains a regime which
includes the use of corporal punishment as well."

Body removal appals Territory MP
Darwin.  The NT's Member for Barkly says it is appalling a dead woman
was pushed, pulled and eventually dropped on to the ground when her
body was being removed from the Ghan passenger train.
Elliott McAdam says the woman was ungraciously removed at the Tennant
Creek train snr, which has no platform.
He says it was disturbing for the woman's friend and other passengers
to witness the events, which even embarrassed emergency service workers.
Mr McAdam says the train's operator Great S Railway needs to work on a
solution.
"I think it's obviously a matter that needs to be addressed and I
think essentially the responsibility lies with Great S in respect to
how they deal with matters as such into the future."
Meanwhile, the chief executive of Great S Railway says the company
handled the death of the woman as capably as they could.
Tony Braxton-Smith says the company has expressed its sympathy to the
woman's friend and family about the incident.
He has defended his staff saying they are well trained.
"I really don't want to enter into discussion of the details of this
particular situation and I do that out of respect for the relatives," he said.
"When someone [passes] away, the circumstances are always stressful
and difficult. Our staff are trained to handle situations and they do
so and they did so very capably."

Surfer accused of murder refused bail
Sydney.  A professional surfer accused of shooting a 'standover man'
in SYD's eastern suburbs last y has been refused bail in the New South
Wales Supreme Court.  Police say Jai Abberton shot Anthony Hines in
the back of the head at point blank range in Aug last y.  Today the
court heard Abberton believed the eastern suburbs stand-over man was
going to rape his girlfriend, allegedly telling police "she was the
reason I did it'.  But the crown says there is nothing in her evidence
to suggest the victim was acting in a sexually predatory way on the
night of the murder.  It is alleged Abberton shot Mr Hines then dumped
the body over a cliff.  His brother pro surfer Koby Abberton has been
charged with being an accessory after the fact, and will face a
committal hearing next month.

Military, industry sonar harms whales: IWC report
Rome (Reuters).  Sonar used by the military to spot enemy submarines
is to blame for increasing cases of whales being stranded on beaches
and dying, the scientific committee of the Internat'l Whaling
Commission (IWC) has said.
The IWC report adds weight to theories that sonar harms the giant sea
mammals, a hypothesis that has been disputed by the military and by
the oil and gas industry, which uses the technology to search for
energy reserves.
"There is now compelling evidence implicating military sonar as a
direct impact on beaked whales in particular," said the report,
released at the IWC's 4-day annual convention, which was winding up on Thu.
The report cited examples of bizarre and self-destructive whale
behaviour that seemed to have been caused by military sonar, such as a
mass stampede of 200 melon-headed whales into shallow water in Hawaii
last m during a US-Japanese naval training exercise. One animal died.
Scientists are unsure exactly why sonar causes whales to get stranded.
One theory is that the noise disrupts their communication and
navigation systems. Another is that the signals confuse whales in deep
water, forcing them to surface quickly, suffering rapid decompression
and a form of the bends.
The report may strengthen the hand of US conservation groups which are
threatening to sue the navy over its use of mid-frequency sonar.
* Backflips
The Natural Resources Defence Council (NRDC) has already secured an
injunction limiting the US Navy's use of new low-frequency sonar that
can travel vast distances through the oceans, and is now targeting the
more common mid-frequency sonar.
"This is the 1st time such a broad, diverse group [of scientists] has
made this finding," said NDRC lawyer Joel Reynolds. "Navies of the
world do backflips to deny any connection."
The IWC, a 57-country intergovt'l body which regulates whaling, said
earlier in the wk that oil and gas exploration off Russia's Pacific
coast threatened a colony of grey whales with extinction due to sonar
and the threat of pollution.
Energy firms blast noise waves down to the sea floor to detect the
presence of oil and gas reserves.
The IWC expressed concern about energy activities in the Sakhalin
Island region off Russia where Royal Dutch/Shell, Exxon Mobil and BP operate.
Its scientific report also identified oil and gas exploration nr the
Abrolhos Banks, a coral reef off Brazil, as a hazard for humpback
whales and called on the govt to protect the mammals from the noise.

Don't make the kick big, says study
A computer can judge your swimming style.
Perth.  A computer program has been developed that can scan the body
of a swimmer and analysis how they kick. The WA Institute of Sport
says the results have been surprising.

{{
1 am
The 9/11 Commission has released its full report.  The Commission finds
systemic failures led to the success of the terrorist attack against
the Pentagon and WTC.  None of the measures adopted by US govts
between 1998 and 2001 disturbed or delayed the attackers, the report
says.  But no single agency or group was responsible for the failure.
The report makes dozens of recommendations to improve US security,
incl the creation of an intel tsar.  The 600 page report follows a
2-and-1/2 y investigation by the Commission.

7 am
139 people have been killed in a train crash in Turkey.  A simular
number have been injured.  The express commuter was travelling between
Istanbul and Ankara when it came off the tracks.  Passengers were
thrown violently from the train as it derailed in NW Turkey.  The new
high-speed trains went into service only last m.

Former ONA analyst Andrew Wilkie says his reservations have been
vindicated by the Flood report.  He says the investigation and a prev
report show the Howard Govt picked and chose which intel to listen to.
He called on the PM and FM to own up to their bungle in taking AUS to
war based on thin and ambiguous intel.  The total intel on Iraq passed
to the PM was 5-and-1/2 pages.

Gen Wiranto has disputed the result in the first round of Pres'l
elections and called for a manual re-count.  He said there had been
voting "violations".  According to the former Gen, there were 15
problem areas in the poll and he would take legal steps.  One problem
was mns of ballots were punched more than once.  They were first ruled
invalid, but later recounted.  There was also straight out electoral
fraud, says Wiranto.  His own scrutineers got a different count from the
official number.  His complaints comes just 3 days before the official
result was to be announced.

The Dow is up 4 pts after dipping below 10,000 during trade.  The FTSE
is down 1.5% -- to an 8 m low .  The same for German and French
bourses.  The AUD is at 71.50 US c, down 1/10 from last night.  Gold
lost $2 and is down at a 2 wk low of $US395.30/oz.  Oil is up .88 at
$US41.51/bbl on fears of lower US stocks.  Yukos also warned Russian
oil exports could be affected by its imminent bankruptcy.

OPEC has announced another prod'n boost of 10% by the end of 2005.  It
says there is little spare capacity in producers, but it will scrap
together a boost in an attempt to keep crude prices down.

A European study has linked caffeine to memory loss [Uh, oh!].

US investment bank Babcock & Brown is to move to Australia.

Farmers in NSW have been told to report locust hatchings ahead of what
could be biggest plague in 25 y.

It's been found Centrelink has failed to update its website with info
released 1 y ago by the govt.

7.45 am
The death toll from the Turkey train crash has been revised sharply
down from 139 to to 36.  Other reports say there were 230 people on
the train.

A new US Army report says there have been 94 confirmed or alleged
cases of POW abuse since Oct 2001.  The cases incl sexual abuse and
even death.  This is a much larger number than prev admitted.  But the
Army says it doesn't indicate a systemic problem.

The Greek govt has admitted it's allowing armed guards at the
Olympics.  The Public Order Min says armed guards will only be
allowed outside Oly venues.  Guards must surrender weapons when they
enter games venues.

Midday.
A nat'l commission probing the Sep 11 attacks has found "failures of
imagination, policy, capabilities and management" by the United States
govt and recommended a sweeping overhaul of intel services.

Reactions to the final report of a US inquiry into the Sep 11 terror
attacks ranged from high praise for the panel's exhaustive efforts, to
outrage over perceived flaws and oversights in the document.

A security video has emerged in the US showing 4 hijackers of the
plane that crashed into the Pentagon on Sep 11, undergoing additional
security checks at Dulles Airport in Washington.

Pres George W Bush has said many of the failings in US defences
identified by the Sep 11 commission developed before he took office in 2001.

A new report has cleared the govt of pressuring AUS's intel agencies
to support the case for going to war in Iraq.

PM John Howard says he does not regret sending Aussie troops to war in
Iraq, despite a finding his decision was based on "thin, ambiguous and
incomplete" intel.

PM John Howard says the Govt is still assessing whether AUS's Olympic
team in Athens will be protected by armed guards.

A former head of the Dept of Foreign Affairs (DFAT) has backed claims
in the Flood report that a decline in Aussie diplomatic staff is
hampering the efforts of intel assessment agencies.

Bulgaria's foreign ministry has confirmed that a body found in the
Tigris river in Iraq last wk was that of a Bulgarian hostage executed
by a group linked to the Al-Qaeda terror network.

Greek Public Order Min Yiorgos Voulgarakis says foreign athletes
attending next month's Olympic Games can receive armed protection from
their countries but only outside Olympic venues.

6.30 pm
The Constitutional Court in Indon has ruled the convictions of dozens
of Bali bombing suspects unconstitutional.  But in a confusing ruling,
it says it will not overturn the convictions. The 5:4 decision does
pave the way for appeals.  33 Bali suspects have been convicted under
Indonesia's terrorism laws, incl Amrozi -- the smiling assassin -- and
masterminds Muklas and Samudra.  A slim majority of the Court ruled the
retrospective use of the laws breached the 1945 Const'n and therefore
have no legal force.  It's not clear whether the convictions will be
overturned.  Lawyers say they're looking at new appeals.  The ruling
is disturbing for the families of the 202 Bali victims.  This is going
to be a very long and horrific episode, said the father of one victim.
The AUS Opp'n says the ruling is "deeply disturbing".  The Howard Govt
is still examining the verdict.  Indon police are worried about the
impact of the decision.  Lawyers for alleged JI boos Bashir are now
calling for him to be freed.

The 9/11 Commission found 12 specific warnings were made to the US govt
about use of aircraft as terrorist weapons, incl one in Mid 2001.
Previously, Pres Bush and other Whitehouse officials have claimed there
was "no warning" that aircraft might be used in an attack.  The CIA is
praised by the report for doing the most to counter terrorism.  But it
also lost track of 2 suspects who entered the US and failed to contact
the FBI when it did.  There were 10 opportunities missed by the CIA
and FBI that could have discovered the WTC plot.  The report also
found -- in contradiction to frequent claims from VP Cheney -- there
were no operational links between Saddam and al-Qaeda that could have
justified the Iraq war.  But it did find there were "strong links"
between al-Qaeda and Iran.

There's been a "flurry of diplomatic activity" in Baghdad after a
demand by kidnappers for a Kuwait transp company to pull out of Iraq.
3 countries are trying to save their nationals.  The activity follows
the discovery of another decapitated body and fears a 2nd Bulgarian
hostage was killed.  Just hrs before the body was found, the Bulgarian
FM visiting Washington renewed a pledge to stand against capitulating
to terrorist demands.  Meanwhile, in Kenya, families are pleading with
the govt for the safe return of their loved ones.  Kenya has advised
all workers to leave Iraq ASAP.  New Delhi says India, like Kenya, has
no troops in Iraq and had nothing to do with the war.  But it has
dispatched diplomats to Baghdad.  There is no word from the Kuwaiti
employer of the hostages.

In another damning report, the US Army has released details about POW
abuse claims.  It ack's there are more than 90 confirmed or suspected
cases.  The investigation was authorised only after the Abu Ghraib
case broke this y.  The cases have all occurred since Oct 2001, says
the report.  US soldiers have held up to 50,000 POWs in Iraq and
Afghanistan.  1/2 of the 94 cases took place at the point of capture.
The investigation found no systematic abuse.  There has been little
media coverage of the report in the US.  But it didn't escape the
notice of Dem Senators.  If it found 5 or 6 soldiers did all the
abuse, the Committee didn't do their job, said one Senator.

Accused terrorist David Hicks' lawyer has not commented on whether his
client will challenge his illegal combatant status at the US
commissions.  The lawyer for Habib says he's advised his client not to
challenge.  The commissions will involve an officer "assisting" the
accused to present their case to a tribunal.  They can call witnesses,
but after being in jail for up to 3 y may be unable to.  The US
military will be able to present almost any evidence to show the
accused is an illegal combatant -- even hearsay or rough notes.  The
US Supreme Court has ruled POW's have access to the US legal process,
and some detainees may try to take their cases directly to civilian courts.

Although humpback whale are only 1/3 of their pre-whaling numbers,
Japan wants a resumption of the kill after an 18 y moratorium.  The
IWC still maintains a small majority in favour of continuing the ban.
But as a compromise to the increasingly strident pro-whaling countries,
the Commission has proposed a "management plan" that would move closer
to commercial whaling.  But the plan has now been put on hold.  It's
estimated whale tourism in AUS brings in $300 mn pa to the economy.

The All Ords closed down 10 pts.  The NAB is down to $A25.87 -- losing
more than 1% in the session.  It breached $26 for the first time since
9/11 and has now lost more than it's paid back in
dividends. [SHEE-IT!!!]  The Nikkei ended down 98 ahead of 1/4 profit
results.  Wall St ended up 4 pts.  The Nasdaq added 15.  The AUD is
down another .13 at 71.30 US c.

8.30 pm
The US House of Reps has declared a genocide in Darfur, and has urged
Pres Bush to issue directives to intercede.  It passed with a
unanimous vote.  Hrs before the Res passed, Sec of State Powell met
the UN Sec Gen to discuss the Sudan sit'n.  The US has proposed a UNSC
Res that would impose a specific timetable for Khartoum.  Annan
agreed the UN needed to take action.  Sudan's amb to the UN said the
Khartoum govt was doing all it could, but was hampered by a break-down
in talks with rebels.

The US military in Iraq has made another strike on a hideout of wanted
al-Qaeda leader Zaqarwi.  It says it bombed a compound where 12
supporters were gathered in Fallujah.

9.30 pm
CBR. One of the unreported findings of Flood's investigation was a
complaint intel agencies possess too few foreign language skills.
Only 4% of Def Intel officers have languages other than English.  And
the problem is not isolated to the intel agencies.  There are poor
levels of language training across community, says Flood.  Warren Reid
says the management of intel services has been a "betrayal of national
interests".  He worked in ASIS.  About 40% of ONA have language skills,
says the report.  In the DIO, only 4% have accredited lang skills.  As
of Apr 2004 the ONA had capabilities for 13 languages.  But while
Flood says that's impressive for an agency with only 39 analysis, the
loss of only 2 key staff would reduce that to 8 langs.  Flood says 2 y
ago the Fed Govt made cuts to lang programs in Aussie universities.
There are consequently a declining number of students doing langs, and
a declining number of facilities for those that want to.

10 pm
FM Downer says Indon lawyers don't believe a court ruling will mean
other Bali bombers will be freed.  The Court found the Indon terror
laws were backdated and therefore unconstitutional when applied to
convict Bali bombers.

86 Afghani natl's in Aussie immigration detention will be re-assessed,
says the DFAT.  There is "new info" on Afghanistan.  The interviews
will start next wk.  Most of the Afghanis are at Baxter detention
centre nr Pt Augusta, SA.  Immig Min Vanstone declined to be specific
about the new info.  We don't judge all Afghanis the same, she said.

AUS officials says world trade talks are near a breakthrough on ag.
Mark Vaile leaves for Geneva next wk.  The end of the m is the drop
dead date for a resolution.  Otherwise negotiations will stall until
late next y because of the US election.  Vaile says if an agreement is
reached to throw out all subsidies it will end a struggle that's
lasted 50 y.

The Howard Govt will extend family payments to more families.  The
change results from a change in the qualification dates.  After
announcing the change, the PM was asked on Bris radio why careers
should not also have the same benefits.  The PM said he would examine
it.  Careers may be eligible for an extra $1600.

11 pm
It's been announced there has been 1 death or injury in every 1 or 2
days in the race to finish the Olympic venues in Athens.  It's a Greek
tragedy, said a Greek Opp'n official.

Daimler Chrysler has reached an agreement with its Germany workforce.
It will cut $1/2 bn in costs pa to protect 6,000 jobs.  The company
had threatened to move the jobs to S Africa.  Under the agreement,
employees in some areas will work longer.  Some workers will loose
benefits, incl the 5 min rest they now enjoy every hr.  The 6,000 jobs
are guaranteed until 2012.  Members of the company board also agreed to
take a pay cut.

In London wanted terror suspect Abu Hamza al Mazri is facing
extradition by the US. America says he tried to start a training camp
in Oregon.  The court was told he was part of the global conspiracy of
war on the West.  Lawyers for the accused say he's been pre-judged in
the US, with his name appearing on a Presid'l list of known terrorists.

In Mostar, Bosnia-Herzegovina, there's a day of celebration to mark the
re-opening of the local bridge.  Destroyed during the war, the
structure dated back to the 16th C.  It has been rebuilt using the
hand tools and traditional materials of the original Turkish
buildings.  At a cost of $US13 mn.  There is no shortage of metaphors
in the bride re-opening, said Patton.  The bridge was destroyed by RC
Serbs 11 y ago.  It will be formally opened in a few hrs time.

11.10 pm
9 people have been killed and another 10 injured when a bus collided
with a US tank N of Baghdad.  US soldiers helped take the injured to
a nearby hospital.

The RSL has spent $90,000 to bar membership to a digger who wouldn't
swear allegiance to the Queen.  The Equal Opp Commission had found Mr
Buchanan was discriminated against.  The RSL had appealed.  Now it's
in shock the original decision has been upheld.
}}
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