From the World-Wide Resourses of the Western Australia
Reserch Senter(*)
		OIL THE NEWS THAT FITS MY VIEWS   #211
                ===============================
In the Run-Up to World War III, Reliably Reporting the News Relevant
to Extreme Right-Wing Democratic Socialists Everywhere
(validated for RiteThink(tm) by the Office of Our Man in Can-berra).

Our Home Page: <http://www.chickenhead.com/loserscopes/>
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US Centcom News Releases: <http://www.centcom.mil/CENTCOMNews/release_list.asp>
Iraqi Body Count: <http://www.iraqbodycount.net/> [9,211 as at 02 Jun 2004].
UN Mailing List: <http://www.kymhorsell.com/UN/>
Some Of The News, Some Of The Time: <http://www.chaser.com.au/default.asp?check=No>
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Selecting latest news stories and other data for you...
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UH-OH! MY FRIDGE MAGNET IS TINGLING!

This report in inaccurate... in THAT ... the numbers are off ... by a
small amount.
-- Sec of State Colin Powell, 22 Jun 2004.
   Doubling trouble. The Whitehouse is still spitting up chunks of
   humble pie over its "world terrorism report, 2003".  Rather than a
   decline in terrorist attacks on Americans, the War on Terror has
   boosted fatalities to a 20-y high.

You get out of your office, you go downstairs, you get in your car,
you drive over, a couple of you, you sit down with 4 other people and
you talk about matters of nat'l security and there is not one shred of
evidence to support the existence of that meeting.
-- Sen David Johnson, 23 Jun 2004.
   The disputed meeting. ONA officers claim they met with DFAT officials 
   and discussed terrorist targets in SE Asia, incl Bali.  DFAT
   doesn't recall the conversation, and there appears to be no record.

The government [smiling] will act properly.
-- Aussie PM John Howard, 23 Jun 2004.
   King hit. Code for "as long as he behaves himself, a certain MP
   will be taken care of".

This is what Australian parents want.
-- PM John Howard, 22 Jun 2004.
   Free market education. In a bid to free up some money for private
   schools, the Howard govt has linked school funding to having a working
   flag pole, an appropriate Latin motto, 20 hrs of compulsory sports
   per wk, weekly parents' reports, and a documented set of school values.

[squinting to his right] I think Australian parents would be surprised if
they [schools] didn't.... I don't think it's old-fashioned at all...
-- PM John Howard, 22 Jun 2004.
   Fly the flag, or lose your funding.

Good polls, bad polls, indifferent polls, we just get on with government.
-- Govt Min Tony Abbott, 22 Jun 2004.
   A new poll says 56% of Aussie voters said George Bush was wrong to
   dip his oar into Aussie foreign policy. 2 Aussie polls put the
   Opp'n 4 pts ahead of the govt.

Obesity is a very serious problem and we have an epidemic of diabetes,
which is at least in part a disease of lifestyle.
-- Aussie Health Min Tony Abbott, 22 Jun 2004.
   Something for the fat kids. Although the Howard govt has made school
   funding contingent on compulsory school sports, cutting into the
   $200 mn burger advertising business is not part of its war on diabetes.

We have to defend the budget pledge that we have made about delivering
surpluses in every y to sustain downward pressure on interest rates
and we will.
-- Aussie Shadow Fin Min Bob McMullen, 22 Jun 2004.
   Subsidised drugs. After 2 y of claiming a proposed Howard govt hike
   in PBS fees would hit the poorest, the Opp'n has turned around and
   agreed to support it.

----------------------------------------
Tue, 22 Jun 2004.

	HEADLINES:
Oil holds steady after 3% fall
Crude oil plunges as Iraq resumes exports after 6-day halt
US top cmdrs to be questioned in Iraq prison abuse cases
SDF to continue Iraq rebuilding after Jun
S Korea says no news on fate of Iraq hostage
Nobody invited yet to Iraqi nat'l conference: organiser
Most Americans reject Iraq war: poll
Marines bodies recovered after images aired on Iraqi television
Israel training Kurdish commandos in Iraq -- report
Insurgents kill 4 Americans in Iraq
Where Are The Refugees?
46 said killed in attacks on Russia govt
Anti-crime watchdog needed in Vic: Opp'n
Bendigo remembers road crash victims
Businesses enlisted to fight terrorism
Conference hears of nuclear terrorism threats
Conn Governor announces resignation
Conservationists  fear oil drilling nr the Great Barrier Reef
Costello mocks Labor's PBS backflip
Councillors move to lift Daintree development ban
Court to deal with corruption charges: Bracks
Cycling drug investigation must be swift: anti-doping head
Deadline passes, no news on S Korean hostage
Democrats query Baxter "punishment regime"
Dozens killed in battles nr Chechnya
Families responsible for over-payments: Patterson
Fruit bin bonfire marks apple import protest
Fruit growers to protest against introduced apples
HMOs win Supreme Court malpractice case
Health report card shows Aussies living longer
High school students suspended for drug use
Hospital pays $5 mn after baby left brain damaged
Housing construction slows
Independents working to pass Govt super scheme
Kerry: Bush chooses ideology over science
NSW Govt delivers $380 mn Budget deficit
NT reveals new croc safari plan
Nat'l elections could spell end to 25 y of political stability in Canada
Nauru's Govt toppled
PM unfurls flags and fitness for schools
Poll shows ad blitz not fooling electorate: Labor
Private US rocket plane soars into space
Qantas to base some staff offshore
RSPCA rejects criticism over caged chickens, live sheep exports
Rebel gun-battles in N Ivory Coast leave 22 dead
Record health spending tipped in NSW Budget
S Korea steps up efforts to release hostage
Slow start to regional airport security boost
Sugar grants spark ethanol row
Summit to focus on housing affordability
Tarmac mishap strands Jetstar passengers
Terror suspect overcomes new bail laws
Tory plan expected to hit Air Canada rivals
Turnbull accused of electronic stalking
US markets wary ahead of rate decision
Virgin Atlantic to fly to AUS from Dec


Oil holds steady after 3% fall
Singapore (Reuters).  Oil prices steadied on Tue following a 3% slide
Mon, as an expected rise in US inventories added to a soft tone in the
market after Iraq resumed limited crude exports from its key S terminals.
US light crude for Jul, due to expire later in the day, stood at
$37.63/bbl, while the Aug contract was at $37.77, both unchanged from Mon.
The US govt's Energy Info Admin releases weekly stocks data Wed and
average forecasts are for a 1-mn-bbl rise in crude stocks due to
higher imports, according to a Reuters survey of 7 analysts.
The analysts also predicted that the EIA report would show increases of
1.5 mn bbl in distillate inventories and 1.4 mn bbl in
gasoline stocks.
Traders cautioned that while crude stocks looked comfortable, supplies of
products remained a concern as the US heads into the peak demand
period for gasoline during summer vacations.
"The real peak in gasoline demand in the US is coming in Jul and will
stay high in Aug. What we are seeing now is a bull market correction,
which will reach a bottom at $35 and start rising again," said Tony
Nunan, manager at Mitsubishi Corp's internat'l petroleum business in Tokyo.
He added the mid-to-long-term picture was bullish as global oil demand
was growing at the fastest clip in 24 y, driven by surging economic
expansion.
In the short term, Nunan said the market was being capped by higher
supplies from Saudi Arabia -- which is pumping 9.1 mn bpd in
Jun and is likely to do the same in Jul -- helping to boost total
OPEC output to nearly 30 mn bpd.
Global oil supply disruptions are also slowly recovering as Iraq
sought to restore exports to 1.6 mn bpd in a few days after repairing a
2nd pipeline at Basra.
* DISRUPTIONS EASE
The country resumed oil shipments Mon at one mn bpd, or around 55% of
normal, at its Basra and Khor al-Amaya terminals, after repairs to one of
2 sabotaged pipelines.
But fears of more raids on oil facilities ahead of the Jun 30
hand over of power to the Iraqis have limited a fall in prices, which
has seen US oil retreat 10% from this m's 21-y high at more than $42/bbl.
Azerbaijan has also resumed shipments of Azeri oil to Russia's Black
Sea port of Novorossiisk Mon after a weekend blast on the transit pipeline.
But Norway's govt said it had no plans to order an end to a 4-day
strike by oil workers, which has lopped about 10% off its 3 mn bpd
output. Norwegian govts have often directed an end to strikes under
emergency rules when they fear the economy is at risk.
The main OFS union, which is seeking better pension rights and
pressing demands for tighter curbs on non-union labour, has said it
would consider a further widening of the strike this wk beyond the 4
platforms already targeted.
Employers said there were no talks toward resolving the strike, which
had stopped about 315,000 bpd of the country's output and was
threatening to expand to 455,000 bpd.

Crude oil plunges as Iraq resumes exports after 6-day halt
NY (Bloomberg).  Crude oil futures plunged as Iraq resumed partial
exports through one of 2 pipelines shut after an attack early last wk.
Exports started at about 9 am from the Basra Oil Terminal in the
Persian Gulf. Flow rates to the facility averaged about 42,000 bbl an
hour, according to the US-led Coalition Provisional Authority. Iraq
has the world's 3rd-biggest proved oil reserves. A strike in Norway,
the world's 3rd-largest exporter, is limiting exports.
"Iraqi exports are back on line, which cancels out the strike in
Norway," said Phil Flynn, snr energy trader for Alaron Trading Corp in
Chicago. "There were a lot of terrorist attacks over the weekend but
none of them hurt the flow of oil."
Crude oil for Jul delivery was down $1.05, or 2.7%, at $37.70/bbl as of
1.39 pm on the NY Mercantile Exchange. Prices were up 22% from a y
earlier.
In London, the Aug Brent crude oil futures contract was down 83 cents, or
2.3%, at $35.38/bbl on the Internat'l Petroleum Exchange.
Iraq's export capacity will be limited to 1 mn bpd until a
2nd pipeline is repaired, Dominic d'Angelo, a US-led occupation
authority rep said in an e-mailed statement, citing an estimate from
the State Oil Marketing Organization.
* Terrorist Threat
Prices have risen 18% in NY this y in part because of concern that
terrorist attacks would disrupt shipments from the Middle East, source of
about a 3rd of the world's oil. Al-Qaeda militants have targeted W
workers in Saudi Arabia. Attacks on foreigners have prompted some
internat'l companies to evacuate workers and their families from the kingdom.
Saudi security forces killed Abdul Aziz al-Muqrin over the weekend,
the leader of the al-Qaeda group in Saudi Arabia, and 3 other members
after they beheaded US engineer Paul Johnson, 49, who was kidnapped on
Jun 5. The police also captured 12 other suspects and confiscated weapons.
An al-Qaeda group in Saudi Arabia said the kingdom's security forces
helped in the kidnap of Johnson, the Associated Press reported, citing a
description of the abduction posted on an Islamist Web site. Saudi
Arabian authorities denied the claim, which appeared on the Web site
yesterday, AP said.
* Iraqi Oil Industry
The Iraqi oil industry has yet to pump as much oil as was produced
prior to the US-led invasion in Mar 2003 because of sabotage and
looting. Iraq's daily output fell 250,000 bbl to 2.1 mn in May,
according to a Bloomberg survey of oil companies, producers and analysts.
4 US soldiers were killed nr the central Iraqi town of Ramadi and 4
Iraqi contractors were slain S of the northern city of Mosul, the
US-led occupation authority said at a briefing in Baghdad.
Security problems in Iraq are increasing as the US-led coalition
prepares to hand over sovereignty on Jun 30 to the interim Iraqi govt
led by PM Ayad Allawi.
Prices rose in early trading after Iran detained 3 UK vessels and
their 8 crew nr an oil rig in the Shatt al-Arab waterway this morning,
the Brit Broadcasting Corp reported, citing an unidentified rep for
the country's Revolutionary Guard Corps. The vessels and sailors may be
released shortly, the BBC said.
The reported seizure may worsen relations between Iran and the US-led
occupation authority in Iraq that is battling local and foreign
insurgents. The US says Iran is helping the insurgency.
* Norway Strike
Norway's govt said it won't move to stop a 4-day oil-worker strike
that's slashing output from the world's 3rd- largest oil exporter by
more than 10%.
More than 200 members of the Lederne and OFS unions ceased work early
Fri after talks with employers collapsed. They plan to expand the
strike on Wed, cutting output 450,000 bpd, union officials
said. Norway normally pumps 3 mn bpd, or 3.7% of world supply.
The unions may decide to expand the strike further later this week,
said Jan Olav Brekke, who represents about 900 oil workers in the
Lederne union.
The Organization of Petroleum Exporting Countries, which pumps more
than a 3rd of the world's oil, agreed Jun 3 to raise its production
limit by 2 mn bpd to 25.5 mn a day on Jul 1, and by a
further 500,000 bbl starting Aug 1.
* Acceptable Prices
"OPEC's decision to raise production by 2.5 mn, in a smooth and calm
situation, could push the prices to a level acceptable to all,"
Hossein Kazempour Ardebili, Iran's OPEC governor, said in a phone
interview. "Any disruption or interruption to production or export
facilities in any given country could hamper the situation and cause
the trend to be reversed."
Kazempour, who is also a snr adviser to Iran's oil minister, Bijan Namdar
Zanganeh, didn't specify the level he considered acceptable for oil
prices. Zanganeh told reporters at the Beirut meeting that oil consumers
are "comfortable" with prices of $28 to $34 for the OPEC benchmark.
Gasoline futures fell as higher US fuel imports and surging refinery
operations temper concern about adequate supplies during the peak
driving m of summer.
US gasoline imports averaged 907,000 bpd during the 4 wk
ended Jun 11, up from 838,000 bbl during the same period a y
earlier, according to Energy Dept data. Crude oil processing at US
refineries reached a record earlier this m.
Royal Dutch/Shell Group, the world's second-largest publicly traded
oil company, expects to resume processing at a refinery unit in Deer
Park, Texas, tomorrow following a shutdown on Sat.
Gasoline for Jul delivery was down 2.8 cents, or 2.3%, at $1.169 a
gallon in NY.

Conservationists  fear oil drilling nr the Great Barrier Reef
Canberra.  The Fed Govt has moved to allay fears that areas nr the
Great Barrier Reef will be considered for oil exploration.
But conservationists are not satisfied, and want the locations
included in the protected marine park.
Petroleum drilling and exploration is banned within the Great Barrier
Reef Marine Park but it is what happens nearby that is causing concern.
Last wk the Fed Govt released its energy white paper, which included a
list of 40 offshore basins showing signs of petroleum potential.
3 of those basins sit nr the Great Barrier Reef, prompting
Townsville-based Liberal backbencher Peter Lindsay to offer this assurance.
"I just want to send a clear message that the Fed Govt, myself, will
not be party to anything that might impact on the World Heritage
values in the Marine Park," he said.
But that is not good enough according to conservationist James McLellan.
"Well we've heard it all before that there'll never be oil drilling
and all the rest of it but they keep leaving this area open to it," he said.
The N Qld Conservation Council wants to see the protected Marine Park
area extended to the edge of AUS's Exclusive Economic Zone to cover
the areas they say are too sensitive for oil exploration.
"There's no chance of cleaning up an oil spill on coral. If it hits
the reef, the reef's had it," Mr McLellan said.
Mr Lindsay also believes the Marine Park should be extended further,
and says he is discussing the idea with his colleagues.
"There is no need to worry -- we won't see the reef under threat in
any shape, ever," he said.

Tory plan expected to hit Air Canada rivals
Toronto (CP/The Star).  A Conservative fed election plan to scrap a law
that holds Air Canada to stricter bilingualism standards than its
rivals would provide little short-term savings for Canada's struggling
flagship airline, industry observers said today.
However, Calgary-based WestJet Airlines could face a challenge if it
were required to have at least one bilingual member of its cabin crew on
all flights, as rival Air Canada does.
"In the short run, I don't think it would save Air Canada any money,"
said Joseph D'Cruz, a University of Toronto business professor who
follows the airline industry.
But he added, "It would cause a lot of disruption to WestJet's business
model, which is based in part on lower labour costs than Air Canada."
Conservative Leader Stephen Harper flew into a political storm on the
weekend after The Canadian Press obtained documents showing his party
would abolish the Air Canada Public Participation Act.
The law, passed in 1988 by the Mulroney Conservatives as the airline
was being privatised, requires Air Canada to keep its head office in
Montreal and provide parallel French and English customer service.
The law also requires Air Canada to keep maintenance operations in
Montreal, Winnipeg and Mississauga, Ont.
The Conservative party's position wasn't included in its official
policy platform, but was outlined in Jun 9 e-mail exchange between a
member of Harper's staff and an Air Canada employee.
On Sun, Harper said his party put all airlines under the Official
Languages Act, which would require all airlines to offer the same
level of service.
Air Canada has said it would not want to discontinue offering service in
both French and English. But it has long argued that all of the
country's airlines should be subject to the same regulations,
including those involving language.
While all of Air Canada's domestic rivals must provide safety
advisories in both French and English, only Air Canada is required by
law to provide parallel bilingual services for all of its customer contacts.
Other carriers can decide for themselves whether to provide non-safety
info in either French or English or both.
Any attempt to move Air Canada's head office out of Montreal if the
Air Canada Public Participation Act was repealed would be "strictly
symbolic" and not an economic decision since there are only a small
number of snr executives and support staff there, said Rick Erickson, an
Calgary-area industry analyst and consultant.
Similarly, the maintenance bases in Montreal, the Toronto-area and
Winnipeg are well-entrenched and expensive to move elsewhere, he said.
"I will not be surprised to see this whole issue just quietly recede
unless the other parties make a huge issue out of it," Erickson said.
However, he noted that the German bank that is prepared pay up to $850 mn
for a piece of Air Canada has indicated it wants Canada's largest
airline to be on a level playing field with its rivals in terms of
regulatory restrictions.
"They didn't identify any one piece of legislation, although this one is by
far the most paramount," Erickson said.
Meanwhile, Air Canada and its advisors, board of directors and the
court-appointed monitor are analysing proposals submitted last wk from
potential investors willing to buy a $250-mn stake in the company.
The airline, working with the monitor, has refused to identify the
bidders, but there have been reports that Cerberus Capital Management
LP and Oak Hill Capital Partners LP, both of New York, were
considering offers.
"Air Canada has been quite tight-lipped about it," D'Cruz said, adding
that he expects the decision to be controversial since both Cerberus
and Oak Hill are known as short-term investors that will hope to cash in
quickly the new Air Canada shares they would receive.
That could be disruptive, since the airline's unions have yet to
ratify cost-saving measures demanded by Deutsche Bank in return for
investing up to $850 mn in the Montreal-based company.
"There's still a lot of work to be done to actually get membership to
ratify the agreements," D'Cruz said.

HMOs win Supreme Court malpractice case
[The cases are Aetna Health Inc v Davila, 02-1845 and Cigna Healthcare of
Texas Inc v Calad, 03-83].
Washington (AP).  Patients can't seek fat damage awards in court if
their HMOs refuse to pay for doctor-recommended medical care, the
Supreme Court ruled Mon, rejecting arguments that the threat of
$multi-mn lawsuits keeps insurance companies honest.
The unanimous decision invalidated an important part of patient rights
laws in several states and tossed a political hot potato back to
Congress. Lawmakers have tried repeatedly and failed to pass nat'l
patient protections. The last and most promising effort foundered on a
wronged patient's right to sue.
Health insurers argued to Congress and again in the Supreme Court that
enormous jury awards drive up the cost of health care for everyone and
might lead some employers to drop their health plans.
The court said HMOs are shielded from lawsuits in state courts, where
juries are more apt to side with victims and order up $multi-mn
judgements from insurance companies.
Relying on a fed pension benefit law that predates the rise of managed
care, the court said patients may pursue claims only in fed courts. There,
awards are capped at only the cost of medical services the HMO would
not cover.
The ruling affects the roughly 72 mn people covered by HMOs. It
applies to a gray area of medicine and insurance, in which decisions
about what treatment to pursue and what coverage to offer are
mingled. The situation arises frequently in managed care, where
doctors belong to a closed network overseen by administrators, who may
not be doctors but who nonetheless decide what the company will pay for.
"By reserving the right to decide what is -- and what is not --
medically necessary, managed care plans can now practice medicine
without a license, and without the same accountability that physicians
face every day," the American Medical Association said afterward.
Democrats on Capitol Hill also denounced the ruling, and presumptive
Democratic presidential nominee Sen John Kerry said he will make it a
campaign issue against Pres Bush.
The justices rejected lawsuits filed by 2 Texas patients who claimed
they suffered avoidable pain and complications because their HMOs
pinched pennies. They brought suits under a Texas patients' rights law
passed when Bush was governor.
During the 2000 presidential contest, Bush took credit for the law.
When the issue reached the Supreme Court, however, the Bush Admin
sided with insurers.
Juan Davila, who sued Aetna Healthcare under the Texas patients rights
law, took what he claims was inferior pain medication instead of the
Vioxx his doctor had recommended because Aetna Health would not pay
for the more expensive drug right away.
The cheaper medication caused bleeding ulcers, and he almost had a
heart attack, Davila said.
"My life is not the same and may have been cut short because of the
HMO's decision to play doctor," said Davila, a post-polio patient.
The Supreme Court heard his case alongside that of hysterectomy
patient Ruby Calad, who claimed that Cigna Healthcare of Texas turned
her out of a Houston hospital after only one day of recovery.
The HMO would not pay for a longer stay, even though her doctor
recommended it.
She was back in the emergency room a few days later, suffering
complications she claims could have been avoided had she remained
hospitalised longer after surgery.
The Supreme Court did not decide whether Davila and Calad deserved
better, only whether and where they could sue. Insurers and business
groups had argued that the 1974 Employee Retirement Income Security
Act, or ERISA, trumps state patient protection laws that would allow
patients to sue over allegedly negligent coverage decisions.
ERISA was supposed to protect worker benefits while guaranteeing
employers uniform nat'l rules and a streamlined process of handling
lawsuits or complaints.
Calad and Davila could have brought their lawsuit under ERISA's rules
but chose not to, Justice Clarence Thomas wrote for the court. Their
lawsuits "are completely pre-empted by ERISA," he said.
In a statement after the ruling, Aetna called it a "reaffirmation of
the law applicable to employer-sponsored health plans."
"By affirming the role of ERISA in employee benefits the court has
helped to assure that mn of working Americans will continue to have
access to quality health coverage provided by their employers," the
insurer said.
At least 9 other states have laws similar to the Texas statute:
Arizona, California, Georgia, Louisiana, Maine, NJ, Oklahoma,
Washington and W Virginia.

US markets wary ahead of rate decision
US rates have not risen for 4 y.
NY/Sydney.  United States investors look to have adopted a wary
wait-and-see stance ahead of next wk's policy meeting at the US Fed Reserve.
The Fed Reserve is expected to deliver the 1st increase in American
interest rates in 4 y.
The upcoming hand over of power in Iraq is also tending to sideline
investors on American equity markets.
Not even a $14 bn takeover bid in the banking sector has been enough to
prevent an overall drop in prices on the NYSE.
The DJIA has closed 45-points lower at 10,371.
The high-tech Nasdaq composite index has fallen 12-points to 1,974.
On the Brit share market, there has been a small decline after 4 days of
gains.
The telecommunications and energy sectors have led the overall market
down and the bank Lloyds TSB has also suffered after revealing its
margins have been squeezed by industry competition.
London's FT-100 index is down 4-points at 4,502.
The Aussie market yesterday reached another all-time high.
Telstra was a significant driver of the market after announcing a new
capital management policy that will see $4.5 bn returned to
shareholders over 3 y through special dividends and share buy-backs.
Telstra shares jumped almost 5% to close at $5.02.
Elsewhere, Insurance AUS Group shares hit a record high before closing at
$5.15 after the completion of its $414 mn share buy-back.
Nat'l AUS Bank rose to $29.74 after naming Wesfarmer's Michael Chaney as
chairman-designate.
The All Ords finished 24-points up at 3,547.
Looking at trade overnight on the SYD Futures Exchange, the Share
Price Index 200 contract has closed down 12-points at 3,552.
The 10-y bond contract is up 2.5-points at 94.20, with the implied
yield easing to 5.8%.
There has been little overall movement in the value of the AUD.
A short time ago, the local currency was being quoted at 69.01 US
cents, up less than one-tenth of a cent from yesterday's local close.
On the cross-rates, it is at 0.5697 euros; 75.14 Japanese yen; 37.67
pence Sterling; and against the NZD it is at 1.099.
The gold price is sitting at $US394/oz.
West Texas crude oil has dropped to around $US37.69/bbl.

46 said killed in attacks on Russia govt
[Also reports of fighting in Dagestan].
Chermen, Russia (AP). Heavily armed militants launched overnight
attacks against police buildings, border guard stations and other govt
offices in Ingushetia, a Russian region bordering Chechnya. Russia's
Interfax news agency reported that 46 people were killed.
The fighters seized the Interior Ministry in Nazran, the largest city in
Ingushetia, and attacked the border guards' HQ there as well as in
2 villages nr the border with Chechnya shortly before midnight Mon,
regional emergency officials said.
An official from the Ingush Interior Ministry said it was not
immediately clear who the attackers were, but said some of them were
shouting "Allahu akhbar" -- a frequent rallying cry of Chechnya's
separatist rebels as their insurgency increasingly comes under the
influence of radical Islam.
Chechnya's Interior Min Alu Alkhanov, the Kremlin-supported candidate in
Chechnya's upcoming presidential elections, told the ITAR-Tass news
agency that he believes Chechen rebel cmdr Shamil Basayev, who has
been blamed for some of the most audacious attacks, was behind the
foray into Ingushetia.
Interfax, citing the Ingushetia Interior Ministry, reported that the
dead included 18 police and 28 civilians.
Earlier Tue, the Ingush medical centre told the Associated Press that
16 people had been killed and 43 wounded in the fighting.
ITAR-Tass, citing Ingush law enforcement officials, said 5 of the dead
were policemen.
Witnesses reported at least 6 more people dead in an attack on a
border guards' post on the outskirts of Nazran. A firefighter who
would reveal only his 1st name, Aslan, said he had seen more than 10
corpses on the streets of Nazran.
"There are a lot of casualties, both from the law enforcement side and
among civilians," the Interfax news agency quoted Ingush Pres Murat
Zyazikov as saying.
In a possible indication of the large scale of casualties expected,
Russian Defense Min Sergei Ivanov said that the military was setting up a
field hospital in Nazran, Interfax reported.
Ingush police estimated that up to 100 militants, armed with grenade
and rocket-launchers, were involved in the assaults. The attacks sent
the sounds of gunfire booming across Nazran and other settlements for
most of the night.
"Wherever we were, there were armed people, some in uniform, some not,
and you didn't know whose side they were on," Aslan said.
Thousands of Russian anti-terrorist special forces officers and
servicemen headed into Nazran, through the border village of Chermen in
neighbouring N Ossetia, in a long column of armoured personnel
carriers and army trucks shortly after dawn Tue. Inside the city,
firefighters fought blazes at the Interior Ministry and its weapons
storehouse, as residents cowered in their homes.
Fighting from the nearly 5-yo Chechen war -- the 2nd war in a decade
-- has occasionally spilled into Ingushetia, highlighting the Russian
military's ineffectiveness against the rebels despite having heavier
weapons and far superior manpower.
The last major incursion was in Oct 2002, when a band of fighters
attacked Russian forces well inside the republic nr the village of
Galashki, killing 17 servicemen.
In an interview excerpted on Radio Liberty last wk, Chechnya's
separatist president Aslan Maskhadov said that rebels were preparing to
undertake new offensives.
"We are planning to change tactics. Before, we concentrated our
efforts on acts of sabotage, but soon we are planing to start active
military actions," he said.
A 3-man crew from Russia's NTV television came upon some of the
presumed attackers, wearing masks and speaking accented Russian, at a
border crossing as the crew tried to enter Nazran from N Ossetia.
"Out of the dark, a voice says 'Stop, put your hands on the hood,'
said NTV correspondent Maxim Berezin. "A man carrying an automatic
weapon came up. 'Who are you?' 'We're from NTV.' He took a few steps
back, as if to shoot us.
"Then he said, 'Say that we are the Martyrs Brigade,' I don't remember of
whom, Abu, Alyua, I don't remember what he said. 'We have shot
everyone here. Go and announce that.'"
Berezin saw the bodies of at least 6 men in camouflage -- the uniform of
security service members -- lying outside a minivan.
Nearby stood a police car, its windows shot out.
There was heavy fighting in Karabulak, where the militants attacked a
border guard and customs post and a police station, and the assailants
seized a police checkpoint in the village of Yandare, Ingush emergency
officials said.
Acting Ingush Interior Min Abukar Kostoyev was wounded in the first
minutes of the fighting in Nazran and was taken to Vladikavkaz in N
Ossetia, where he died, the Ingush Interior Ministry official said.
Ingush emergency officials said that the health minister and a deputy
interior minister of Ingushetia had also been killed in the fighting in
Nazran, while ITAR-Tass said Nazran city prosecutor Mukharbek
Buzurtanov and Nazran district prosecutor Bilan Oziyev had died, as well.
Police at the Chermen checkpoint on the N Ossetian border said that a
10-vehicle Russian military convoy had been ambushed en route to
Nazran, about 1 1/2 miles away. 3 vehicles from the column were later
seen returning to Vladikavkaz, the N Ossetian capital, carrying an
unknown number of casualties.
As dawn broke Tue, there was still sporadic shooting in Nazran and
Karabulak, but the fighters were stealing away. Alleged militants
stole some Nazran residents' cars to make a getaway, and people were
hiding in their houses, said a resident who identified himself only by
his 1st name, Aslanbek.
Although Chechnya is a largely Muslim region in overwhelmingly
Christian Russia, the 1st of Chechnya's 2 wars was an essentially
secular conflict. However, after Russian troops pulled out when
Chechen rebels fought them to a standstill, the separatists
increasingly took on a specifically Islamic mantle.
The attacks in Ingushetia came as Russian and Moscow-backed Chechen
officials prepared for an Aug election to replace Kremlin-backed Chechen
Pres Akhmad Kadyrov, who was killed in a bomb attack last m. The
Kremlin has put forward its candidate, Chechen Interior Min Alu Alkhanov.

Dozens killed in battles nr Chechnya
Moscow (Reuters/AFP).  Rebel attacks on several key points in a
Russian region bordering troubled Chechnya have left 48 dead,
including 2 rebels, according to the Interfax news agency.
The top rep for the Ingushetia region's Interior Ministry, Yakhya
Khadziyev, says 28 civilians, 18 policemen and 2 rebels were among
those killed.
He says another 30 people had been wounded in the fighting when the
rebels launched their coordinated attacks on targets that included the
regional Interior Ministry building in Nazran.
About 200 suspected Chechen rebels stormed police targets in at least
3 Ingush towns, clashing with authorities.
Tass news agency quoted police as saying the acting regional Interior
Min Abukar Kostoyev and 2 local prosecutors had been killed.
The RIA Novosti agency said Mr Kostoyev had been in the Interior
Ministry building which was partially seized by the militants.
The rebels also staged attacks on other points in the region,
including Karbulak and Sleptsovsk.
Apart from the ministry building, rebels attacked a major border guard
building, setting it ablaze and Interior Ministry arms depots.
Police reinforcements are being rushed into the region.
RIA Novosti quoted the Ingushetia Pres's office as saying Govt forces
were in control in Nazran.
"One can still hear individual shots being fired around the building of
the republic's Interior Ministry," the agency quoted the regional
presidential office as saying.
Interfax news agency earlier quoted a regional govt official as saying
the rebels launched attacks in Nazran, Karbulak and Sleptsovsk.

Conference hears of nuclear terrorism threats
[Uh, oh! G.E. will NOT be pleased!]
Washington (BBC).  The head of the Internat'l Atomic Energy Agency
(IAEA), Mohamed ElBaradei, has warned there is a race against time to
stop terrorists getting their hands on nuclear material.  At a
conference in Washington, Dr ElBaradei warned of the risk of uranium or
plutonium falling into the wrong hands.  According to US Sen Sam
Nunn, nuclear terrorism is one of the most dangerous threats facing
the world.  It sounds like the stuff of post-Cold War thrillers --
poorly guarded installations, highly-motivated terrorists and fissile
materials available to the highest bidder.  But he believes that the
threat is real enough.  Along with his Republican colleague, Sen
Richard Lugar, he has been instrumental in ensuring that US taxpayers
dollars have gone to help safeguard and secure nuclear materials in
Russia.  He says more money is needed, but the situation is so grave
that much more needs to be done.

Most Americans reject Iraq war: poll
Washington (AFP).  52% of Americans believe the Iraq war was not worth
fighting in what amounts to a repudiation of Pres George W Bush's
argument that winning in Iraq is key to prevailing in the war on
terror, according to a new opinion poll.
The joint survey by ABC News and the Washington Post also indicated
that 7 in 10 Americans found US casualties were "unacceptable," while
the number of those confident the war has enhanced long-term US
security has slid 11 points this y, to 51%.
The findings follow a report by a bipartisan commission investigating
the Sep 11, 2001, attacks on the US that found that, contrary by the
Admin's claim, there were no cooperative ties between the former Iraqi
govt of Saddam Hussein and Al Qaeda.
Mr Bush and other Admin officials had also insisted Baghdad had a
massive arsenal of WMD.
No such weapons have ever been found.
The poll also found that 76% of Americans now believe the Iraq war has
damaged the US image in the rest of the world, 13 points up from last summer.
Another 63% said it has caused long-term harm to US relations with
countries that opposed the war.
As a result, approval of the Pres's handling of the US campaign
against terrorism has fallen to 50%, according to the poll.
In an ominous sign for Mr Bush, Democratic presidential candidate John
Kerry now runs slightly ahead of him in trust to handle terrorism, 48% to
47%, the survey showed.
Mr Bush had a 13-point lead over Sen Kerry on this issue a month ago
and a 21 point lead in Apr.
Evaluating Mr Bush's overall job performance, 47% of Americans
approved it while 51% disapproved.
In a head-to-head comparison on terrorism concerns, the public by a
14-point margin picked Mr Bush over Sen Kerry to keep the nation
"safer and more secure".
Only 4 in 10 polled said Sen Kerry had a "clear plan" on terrorism,
lagging behind Mr Bush.
If the elections were held today, Sen Kerry would have a 4-point lead
over Mr Bush in the 3-way race including independent candidate Ralph
Nader, according to the survey.
The survey of 1,201 adults had a margin of error of 3 points.

Conn Governor announces resignation
Hartford, Conn (AP). Gov John G Rowland announced his resignation Mon
amid a months-long cascade of graft allegations, a fed investigation
and a rapidly gathering drive to impeach him for accepting gifts from
friends and businessmen.
Rowland, a 3rd-term Republican who was once one of the GOP's rising
young stars, became engulfed in scandal in Dec when he admitted
accepting renovations at his lakeside cottage -- including a hot tub
and new heating system -- and lying about it. Other gifts and favours
soon came to light.
"I acknowledge that my poor judgement has brought us here," Rowland
said, standing on the back lawn of the governor's mansion, his wife
Patty by his side.
Rowland, 47, becomes the 1st US governor in 7 y to resign under
pressure. His resignation is effective Jul 1.
Republican Lt Gov M Jodi Rell will serve the rest of Rowland's
term. The next gubernatorial election is in 2006.
Rowland did not directly address the allegations against him but said he
remained proud of his accomplishments.
"I hope there have been times when I made you all proud, or made you
all smile or at least piqued your interest in this wonderful
institution we call govt," he said.
One longtime friend, a state contractor, bought the governor's
Washington condominium at an inflated price through a straw buyer.
Rowland received cigars, champagne, a vintage Ford Mustang convertible, a
canoe and free or discounted vacations from employees and friends --
including some with state contracts. The FBI was even looking into
whether Rowland skimmed money from low-stakes poker games he hosted.
For months, Rowland has insisted he never did anything in exchange for
the gifts. But the drumbeat of allegations sent his approval ratings
plummeting and led to demands for his resignation from Republicans and
Democrats alike.
"The governor has chosen late in this journey to take the honourable
road. John Rowland made many bad choices that led us to today's
resignation," said House Speaker Moira Lyons, a Democrat. "I am sad
that such a gifted and talented leader chose a path of deception and
ethical malaise for so long."
The decision effectively brings an end to what was once considered a
remarkable political career. Rowland was elected to the state House at
23 and quickly became the boy wonder of Connecticut politics, using
his charm to get elected to Congress at 27 and become governor at 37.
"It's a sad ending to what had been a brilliant political career. It
certainly takes an enormous weight off the shoulders of the committee
and of the House of Representatives and for that matter the whole
legislature," said Rep Arthur O'Neill, the Republican co-chairman of
the state House Select Committee of Inquiry.
At Arch Street Tavern in Hartford, a restaurant popular with
politicos, about 2 dozen people fell silent when Rowland's televised
speech began, leaning over the bar toward 2 giant screens.
"I think this will probably hurt his career, but he'll be able to move on
with his life," said Peter Lenares, 40.
The governor's remarks didn't impress marketing executive Geno
Taesano. "I think he's got an excellent speech writer, but it's
absolutely meaningless. It's the expected thing to do," he said.
"Apologising for a lie doesn't excuse the lie, no matter how well you
present the apology."
On Fri, the governor suffered a major setback when Connecticut's
Supreme Court ruled that he must testify before the committee, which
was just days away from deciding whether to recommend his impeachment.
He is a former chairman of the Republican Governors Association and
was once rumoured to be under consideration for positions in the Bush Admin.
"Certainly, it's a historic moment for him and one I think he has
spent a lot of time anguishing over," said Rell, 58.
During the committee hearings, the governor's lawyers criticised the
investigation, arguing that the 10-member panel never set any
standards for impeachment. Rowland fought the subpoena on the grounds it
violated the separation of powers between the legislative and
executive branches.
Senate Minority Leader Louis DeLuca, a Republican, said he spoke with
the governor shortly after news leaked about the resignation.
He quoted Rowland as saying: "I think it's reached the point that it's
the right thing to do."
The governor remained in seclusion most of the day at the governor's
residence in Hartford, fine-tuning his speech and receiving calls from
supporters.
Dean Pagani, Rowland's former chief of staff and longtime rep, said
Rowland understood that few lawmakers would have been willing to vote
against impeachment.
"I don't think there was any way he could have survived, especially in a
legislative election year," Pagani said.
The House committee postponed further testimony to await Rowland's
expected resignation. Committee leaders said they probably would still
issue a report on its investigation but not an impeachment recommendation.
In recent years, Connecticut has been rocked by scandals -- 2 of them
involving former mayors of Waterbury, the governor's hometown.
"This has been a long and painful process and with today's
announcement we can begin to move forward and heal the wounds this
scandal has inflicted upon our state," said GOP Sen John Kissel.
The last US governor to resign under pressure was Arizona's Fife
Symington, who stepped down in 1997 after he was found guilty of
defrauding lenders during his previous career as a real estate
developer. The conviction was overturned on appeal.
Only 7 governors in US history have been impeached and removed from
office. The last was Arizona's Republican Evan Mecham, a former car
dealer who was impeached in 1988 on charges of trying to thwart an
investigation into an alleged death threat made by a state official.

Kerry: Bush chooses ideology over science
Denver (AP).  Democrat John Kerry, backed by 48 Nobel Prize winners, on
Mon criticised Pres Bush for allowing ideology rather than facts to
determine science policies and repeated his pledge to overturn the ban on
fed funding of research on new stem cell lines.
"We need a president who will once again embrace our tradition of
looking toward the future and new discoveries with hope based on
scientific facts, not fear," Kerry told 100s who braved a cold rain to
hear him speak at an outdoor amphitheatre, even though he was an hour
and a half late.
The Massachusetts senator cancelled an appearance Tue in Albuquerque
and was flying back to Washington to vote in the Senate for mandatory
financing of veterans health care. In New Mexico, Kerry was to
describe his plan for further fed investments in science and technology.
In a letter endorsing Kerry, 48 scientists who have won the Nobel
Prize said the Bush Admin is undermining the nation's future by
impeding medical advances, turning away scientific talent with its
immigration practices and ignoring scientific consensus on global
warming and other critical issues.
"Unlike previous Admins, Republican and Democratic alike, the Bush
Admin has ignored unbiased scientific advice in the policy-making that is so
important to our collective welfare," their letter stated.
Dr Burton Richter, the 1976 Nobel laureate in physics, said it was
unusual for such a large number of Nobel winners to endorse a
particular political candidate.
"I hope you take that as a sign of how seriously all of us think the
errors of our present course are," Richter told reporters in a
conference call arranged by Kerry's campaign.
Bush campaign rep Steve Schmidt said the president's budget increases
fed research and development to $132 bn in 2005, a 44% increase since
taking office.
"Only John Kerry would declare the country to be in scientific decline on a
day when the country's 1st privately funded space trip is
successfully completed," Schmidt said, referring to the first flight of a
privately financed manned rocket over California.
The Kerry campaign said the Massachusetts senator will invest in
scientific research to foster discoveries to protect the economy as
well as to help cure diseases. He also will rely on scientific leaders
and expert advice when making decisions, the campaign said, and will
allow stem cells to be researched in full under the appropriate
ethical oversight.
Stem cell research gained renewed attention earlier this m after the
death of former Pres Reagan, who suffered from Alzheimer's
disease. His family, including former 1st lady Nancy Reagan, called
for more research into the disease using stem cells. 58
senators -- including Kerry -- sent Bush a letter asking that he relax
restrictions he imposed by executive order in Aug 2001. The Whitehouse
has rejected those requests.
Nancy Reagan's "pleas for stem cell research joined the pleas of mns
across this country and reinforces in all of us the need to tear down
every wall today that keeps us from finding the cures of tomorrow,"
Kerry said. "I have full faith that our scientists will go forward
with a moral compass -- with humane values and sound ethics guiding
the way."
Kerry was introduced by Chris Chappell, a 41-yo investment banker who
became a quadriplegic after suffering a spinal cord injury while
mountain biking 4 y ago. Chappell said stem cell research could help
people like him recover from injuries and illness.
The Bush Admin, according to a Kerry campaign statement, removed info
about global warming from a 2003 Environmental Protection Agency
report; ordered changes to a report that described damage that would be
caused by drilling for oil in the Arctic Nat'l Wildlife Refuge; and
deleted info about condoms from govt Web sites.
The Denver trip is Kerry's 1st public campaign visit to Colorado, a
traditionally Republican-leaning state that chose Bill Clinton in
1992. Kerry's advisers say Colorado could be won by a Democrat again
this y because of the growing Hispanic population and jobs losses
under Bush.
Kerry also hopes to have special appeal because he was born at
Fitzsimmons Army Hospital nr Denver, which he mentioned at least 3
times during his visit. Kerry, who served in the Vietnam War, also is
reaching out to the many veterans who live there.
Kerry rep David Wade said Kerry raised $1 mn for his campaign and
$400,000 for the Democratic Nat'l Committee at a fund-raiser in
Denver. He also made a quick stop in Aspen for a $500,000 luncheon
fund-raiser at the home of Michael Goldberg, president of Miami-based
airline leasing company Aerolease Internat'l. Kerry invited Aspen
resident and writer Hunter S Thompson to ride in his motorcade and
brought 3 copies of Thompson's book about the 1972 presidential race,
"Fear and Loathing: On the Campaign Trail" for autographs.

Nat'l elections could spell end to 25 y of political stability in Canada
Montreal (AFP).  Public opinion polls have both incumbent and
challenger running neck-and-neck into Canada's Jun 28 elections, with
neither expected to win an absolute legislative majority, auguring
Canada's 1st period of political instability in 25 y.
Neither PM Paul Martin and his Liberals nor challenger Stephen Harper
and his restructured Conservatives can expect more than 35% of the
vote, according to the polls, meaning the winner will have to form a
minority govt contingent on the whims of shifting alliances.
Since World War Two, no such coalition govt in Canada has lasted more
than 2 y.
The Liberals, in power nearly 11 y, are still suffering the fallout of
the so-called "sponsorship scandal," the sprawling waste of public
funds that Martin, despite wholesale house-cleaning and the
appointment of a investigating commission, has not been able to stanch.
The new Conservative Party, born last y out of the fusion of 2
right-wing factions, appears to be attracting the votes of
disillusioned liberals, but many voters seem worried about possible
back-sliding on such social issues as abortion and minority rights.
The key to deciding between the 2 may lie with 2 smaller parties.
On the left, the polls show Jack Layton's New Democratic Party (NDP),
with a platform of social solidarity and ecology, getting 15 to 20% of
the vote.
And as much as 20% -- 60 seats in the House of Commons -- could go to
Gilles Duceppe's Bloc Quebecois, the independent francophone party
which is standing candidates only in French-speaking Quebec province.
The 2 mainstream candidates, fearful of alienating voters, have
publicly eschewed any notion of a coalition.
But both Liberals and Conservatives are subtly nuzzling up to their
smaller cousins.
Martin, for example, has commented that his positions on the
environment are close to those of the NPD, and says he would be
interested in a system of proportional representation, one of the
NPD's key demands.
An alliance between the Liberals and the NPD, which are on the same
page on many social issues, appears the most likely.
But even together, there's no guarantee they would garner the minimum
155 seats needed for an absolute majority in the House of Commons.
The Conservatives have meanwhile been making discreet overtures to the
Bloc Quebecois, mindful of protecting their base among W Canada's
anglophone voters who are distrustful of the more left-leaning
francophones on social and economic issues.
But such an unlikely alliance could only function on an ad hoc basis in
parliament because the francophone "bloc-ists" have no allusions
about sitting in any fed govt.
Martin appears out in front in the race to form alliances.
In a scenario where Liberals and Conservatives finish in a dead heat,
neither with an absolute majority, G-G Adrienne Clarkson,
representative of the Queen of England in Canada, would be obliged to
turn to the incumbent PM to form a govt.
Going into the final wk of the campaign, both parties are pouring
their resources into Ontario, the country's most populous province and
holder of a 3rd of the seats in Commons.
The eastern province and its major city, Toronto, until now a Liberal
stronghold, appear within the sights of the Conservatives.

Poll shows ad blitz not fooling electorate: Labor
Polls point to a tight election race.
Canberra.  Labor MPs have welcomed the latest Newspoll saying it shows
the Govt's advertising blitz is not working.
The poll shows the Opp'n has edged ahead into an election-winning position.
The Newspoll shows Labor and the Coalition have an equal share of the
primary vote but after preferences, the ALP has a 4-point lead.
Labor MP Wayne Swan said: "People are seeing through this appalling
waste of public money on blatant political advertising."
Liberal backbencher Peter Dutton disagrees.
"Mark Latham, who'd be one of the greatest political false pretenders in
Aussie political history, has still got a lot of people fooled," he said.
The poll result has dampened speculation the PM will call an Aug election.
Govt Min Tony Abbott says the Coalition is focused on governing the country.
"Good polls, bad polls, indifferent polls, we just get on with govt," he
said.
Independent Sen Meg Lees believes it is not the polls that counts.
"The polls that really matter are the ones that the PM is having done
privately," she said.
She believes this will be the last parliamentary sitting wk before an
election.
Meanwhile, a snr Fed Govt Min has seized on another poll to claim the
Labor Party is the most anti-American Opp'n he has ever encountered.
The AC Nielsen poll shows 41% of voters believe AUS's alliance with
the US would be weakened by a Labor victory at the next election.
It also found 56% of people say the US Pres should not have commented on
Aussie domestic politics, when he labelled the Opp'n's plan to
bring troops home from Iraq by Christmas as "disastrous".
Defence Min Robert Hill says the poll shows Aussies clearly understand
the need for a strong alliance with America, even if Labor does not.
"This is a very anti-American Labor Opp'n, more so than ever in my
political life," he said.
"We've never had an experience of Labor leaders bagging US leaders in
such personal terms as that of Mr Latham."

Rebel gun-battles in N Ivory Coast leave 22 dead
Yamoussoukro (AFP).  Gun battles between rival rebel factions in N
Ivory Coast have left 22 people dead, stepping up a power struggle
that has compounded 20 m of tensions in the divided W African state,
according to officials.
Rebel military cmdr Col Soumaila Bakayoko said rebels loyal to
coup-plotter Ibrahim Coulibaly, known as IB, were pressed into service by
Pres Laurent Gbagbo and his Guinean counterpart Lansana Conte to
wage the overnight attacks in the N towns of Korhogo and Bouake.
"We have, once again, repelled a vain attempt to destroy us by extremists
from all sides of the peace process," Mr Bakayoko said in a statement.
"And we have taken steps to secure our populations and our communities
against being targeted."
Ivory Coast, the world's top cocoa producer, has been mired in unrest
since a failed Sep 2002 coup plunged the country into a divisive war
that has left the N in rebel hands ever since.
Low-level conflict continues despite a ceasefire in place since Jul
last year, while the jockeying between rebel troops commanded by
Guillaume Soro and IB loyalists has sparked numerous deadly clashes
within the boundaries of the rebel zone.

US top cmdrs to be questioned in Iraq prison abuse cases
Baghdad (Bloomberg).  A military judge ruled today that lawyers
defending 2 US soldiers accused of abusing Iraqi prisoners can
question top US military officials and ordered that the Abu Ghraib
prison be preserved as a "crime scene."
The judge's decision will give the defence access to the military
chain of command including Lt Gen Ricardo Sanchez, the head of US-led
forces in Iraq, and Gen John Abizaid, the region's cmdr, according to a
statement on today's pre-trial hearings released by the coalition
command in Baghdad.
The soldiers, Specialist Charles Graner and Staff Sgt Javal Davis, are
facing courts martial on charges of mistreating and sexually
humiliating Iraqi detainees at the Baghdad prison. A hearing for a 3rd
soldier, Staff Sgt Ivan Frederick, was postponed to Jul 23 to give
his lawyer time to reach Iraq.
The military judge, Col James Pohl, ordered the US govt "to preserve
the detention facility at Abu Ghraib as a crime scene," the statement
said. After the prison abuse scandal broke with the publication of
photographs taken at the prison, US Pres George W Bush had suggested
the jail be torn down.
Pohl also ruled that statements given to Maj Gen Antonio Taguba, who
investigated the abuse for the military, be de-classified if possible
and given to the defence along with the detainees' files.
The court denied a defence request to move the trial out of Baghdad
and set a deadline of Jul 31 for any further defence motions.
Attorneys for the accused soldiers maintain the 2 were only following
orders. "We have soldiers who did nothing wrong; they were dedicated
and devoted during their mission that was to loosen up and soften up
detainees in accordance with their instructions," AFP quoted Paul
Bergrin, Davis's attorney, as saying after today's hearing.

S Korea steps up efforts to release hostage
Seoul (AFP).  A S Korean Govt delegation is due to arrive in Jordan
later today, as part of efforts to secure the release of a S Korean
nat'l held hostage in neighbouring Iraq.  Iraqi militants last weekend
said they would behead 33-yo translator Kim Sun-Il within 24 hr,
unless plans to dispatch 1000s of S Korean troops to Iraq were
abandoned.  Chilling television footage shows the prisoner begging for
his life.  S Korea's Foreign Ministry has since rejected the
group's demand.  US-led coalition rep, Dan Senor, says everything
possible is being done to rescue him.  "We have made clear that this is
tragic and we will put all the necessary resources, both military
and intel resources, behind the safe rescue of any hostage, including
this gentleman from Korea," he said.

S Korea says no news on fate of Iraq hostage
Seoul (Reuters).  S Korea is asking for cooperation from around the
world to help free a hostage threatened with beheading in Iraq but
does not know for sure he is alive, the foreign ministry said on Tue.
A task force set up to tackle the crisis met early in the day and the
Nat'l Sec Council that advises Pres Roh Moo-hyun would meet later,
Shin Bong-kil, the ministry's chief rep, told reporters.
A group Washington accuses of links to al Qaeda set a Mon night
deadline when 33-yo Kim Sun-il was shown pleading for his life in a
video tape on Al Jazeera, an Arabic television station. The deadline
passed with no news of his fate.
Seoul has rejected the militants' demand it withdraw its plan to send
3,000 troops to Iraq to join some 670 already there.
"We don't have any new info for now. The situation in Iraq is
changeable. The govt has put in every effort for the safe return of
Kim Sun-il," Shin said.
Asked whether the govt knew whether Kim was alive, the rep said: "We
cannot confirm that for sure."
An envoy had met UN Sec-Gen Kofi Annan, he said.
"We have been asking for cooperation and received info through various
channels," Shin said. "Since that is a very sensitive issue we ask for
the media's understanding about not disclosing progress in detail."
A commerce ministry rep told Reuters all S Koreans working for
companies in Iraq were likely to leave the country by early Jul. Of
the 67 non-military S Koreans in Iraq some 22 work for about 10
companies, mostly construction and trading firms, the foreign ministry said.
In editorials published on Tue, most newspapers backed Seoul's troop
stance, and they also expressed shock and outrage.
* "THIS FOOLISHNESS"
"A latent nightmare has turned into reality," said the Korea Times.
"The kidnapping of a Korean hostage by Iraqi insurgents, though not
totally unexpected, still comes as a great shock."
Newspapers said time was not on Seoul's side.
"The most serious barrier in saving Kim is the urgency," said the
Chosun Ilbo, a leading daily newspaper.
Another major newspaper, the Dong-a Ilbo, said the govt should
"maintain its cool" and follow Japan's lead in seeking the help of the
Iraqi religious community to help free hostages.
"It was right for the govt not to cave in to the threats and to send
troops to Iraq as planned," it said. Seoul announced where it would
send the troops last Fri.
The Korea Times and the JoongAng Ilbo newspaper said the govt, which
has sent a team to the Gulf region to work for Kim's release, needed to
act quickly.
"Judging from previous cases in which citizens from countries that
have dispatched troops to Iraq were killed, there is a high
possibility that the militants will make good on their threat," the
JoongAng Ilbo said.
A voice of criticism came from the Hankyoreh newspaper, which unlike
most main newspapers in S Korea is left-wing. It said the govt
decision to try to explain the troops were going to help reconstruct
Iraq rather than fight sounded hollow.
"When Korea is becoming the country with the 3rd most troops there,
after the US and Brit, it won't work to argue about how troops are for
reconstruction aid."
It urged the govt to withdraw its troop decision.
"This foolishness will be a source of nat'l anguish for a long time to
come." it said. "Similar trials lie ahead unless it is stopped now."

Insurgents kill 4 Americans in Iraq
S Korea rejects kidnap demands
Baghdad (AP).  Insurgents gunned down 4 US service members W of
Baghdad, and S Korea said it would go ahead with plans to send 1000s
more troops to Iraq despite a threat by Iraqi extremists to kill a
South Korean hostage.
Elsewhere, Iraq resumed oil exports Mon, 6 days after insurgents
blasted pipelines carrying crude oil to the Basra terminal on the
Persian Gulf. Iraqi officials have announced stepped up measures to
protect the oil industry -- the foundation of the country's economy.
A videotape delivered Mon to Associated Press Television News showed 4
Americans in uniform lying dead in what appeared to be a walled
compound in Ramadi, an insurgent stronghold 100 km W of Baghdad.
One of the Americans was slumped in the corner of the wall.
The bodies had no flak vests -- mandatory for US troops operating in
contested areas -- and at least one was missing a boot. One field-pack
was left open next to a body as if the attackers had looted the dead
before fleeing.
Brig-Gen Mark Kimmitt, coalition deputy operations chief, confirmed
the killings but gave few details. He said a US quick-reaction force
found the bodies after the troops failed to report to their HQ as required.
American officials had been concerned about the deteriorating security
situation in Ramadi, located along a belt of Sunni militancy running
westward from Baghdad along the Euphrates river.
Last week, 7 Iraqi Civil Defence Corps members were arrested for
planting a roadside bomb that killed policeman and injured 7 civilians in
Ramadi.
Most of the kidnappings of foreigners over the past 2 m are
believed to have occurred along that belt.
In Seoul, the S Korean govt said it would go ahead with plans to send
another 3,000 troops to Iraq despite a threat by an Islamic extremist
group to kill a S Korean man seen begging for his life on a
videotape broadcast Sun night by the Arab satellite TV station Al-Jazeera.
"Korean soldiers, please get out of here," the man, Kim Sun-il,
screamed in English. "I don't want to die. I don't want to die. I know
that your life is important, but my life is important."
Kim, 33, who works for a trading company in Baghdad, was believed to
have been kidnapped about 10 days ago. The kidnappers claimed to be
from the Monotheism and Jihad group led by Jordanian-born terrorist
Abu Musab al-Zarqawi, who is believed to have ties to al-Qaeda.
Once the deployment is complete, S Korea will be the largest coalition
partner after the US and Brit. S Korea already has 600 military medics
and engineers in the S Iraqi city of Nasiriyah.
South Korean medics in Nasiriyah suspended free medical services to
Iraqi patients to protest the kidnapping, the country's Yonhap news
agency said Mon. Hundreds of protesters attended a candlelight vigil in
Seoul late Mon to demand the govt reverse its decision to send
soldiers to Iraq.
On Sat, a US air strike destroyed a house in Fallujah, 50 km W of
Baghdad, which the US said was a hideout for the al-Zarqawi
group. Kimmitt told reporters Mon that the attack killed "key
personnel in the Zarqawi network" although he would not confirm that
any foreign fighters were among the dead.
Iraqi officials in Fallujah, long one of the centres of anti-American
militancy, maintain that the attack killed only Iraqi civilians. The
Iraqi Health Ministry said at least 16 people died.
The recent kidnappings and attacks appear aimed at undermining the
interim Iraqi govt set to take power Jun 30, when the US-led
occupation formally ends. US and Iraqi officials have vowed to go
ahead with the transfer despite the violence.
Resumption of Iraqi oil exports followed intense efforts to repair the
damaged pipeline. The country's other major export line, which runs
from the N oilfields in Kirkuk to the Turkish port of Ceyhan, has been
out of service since May 27 due to sabotage.
Coalition officials said that tankers were being loaded as of Mon
morning at the Basra port. Analysts and traders said halting exports
costs Iraq about $65 mn US in lost oil revenue daily -- money on which
the conflict-ridden nation depends for reconstruction efforts after
the Jun 30 hand over of sovereignty.

Deadline passes, no news on S Korean hostage
Seoul (Reuters).  The deadline set by Islamic militants in Iraq who
had threatened to behead a S Korean hostage unless his country
scrapped plans to deploy more troops, a demand rejected by Seoul, has
passed without any news of his fate.  Jama'at al-Tawhid and Jihad, a
group led by Abu Musab al Zarqawi, who has been accused by Washington of
links to Al Qaeda, set a Mon night deadline when 33-yo Kim Sun-Il
was shown pleading for his life in a video tape on Al Jazeera.  As
yet, there was no info from any authoritative source on Mr Kim's fate.
"Please get out of here," Mr Kim begged in the video, referring to
South Korean troops already in Iraq.  "I don't want to die."  South
Korea said after an emergency meeting of Pres Roh Moo-hyun's Nat'l Sec
Council that it would go ahead with its plan to send 3,000 troops to N
Iraq, and US-led occupation authorities vowed to do all they could to
rescue Kim.  Mr Kim, an Arabic speaker and evangelical Christian who
has worked in Iraq for a y as a translator for a Korean firm supplying
goods to the US military, was seized on Jun 17 in Fallujah, W of Baghdad.

Israel training Kurdish commandos in Iraq -- report
NY (Reuters).  Israel has operatives training commando units in
Kurdish areas of US-occupied Iraq, an alignment with the Kurds that
gives Israel "eyes and ears" in Iraq, Iran and Syria, The New Yorker
magazine reported on Mon.
The article by award-winning reporter Seymour Hersh, who earlier this y
exposed the extent of prisoner abuse at Abu Ghraib, quoted a CIA
official as saying the Israeli presence is widely known in the US
intel community.
The report quoted a rep for the Israeli Embassy in Washington as
saying, "The story is simply untrue."
The report, quoting current and former intel officials in the US, the
Middle E and Europe, said one of Israel's main objectives is to
increase Kurdish military strength to balance that of Shiite militias.
"Look, Israel has always supported the Kurds in a Machiavellian way as
balance against Saddam," the magazine quotes a former Israeli intel
official as saying. "It's Realpolitik. By aligning with the Kurds,
Israel gains eyes and ears in Iran, Iraq, and Syria."
The report also said Israeli operatives had crossed into Iran with
Kurdish commandos to install sensors and other sensitive devices to
spy on Iran's suspected nuclear facilities.
Hersh wrote that by the end of last y, Israel concluded the Admin of
Pres Bush "would not be able to bring stability or democracy to Iraq,
and that Israel needed other options."
But the move to align with separatist Kurds could be damaging to
Israel's relations with Turkey and undermine efforts to create a
stable Iraq, the report said.
"We tell our Israeli and Kurdish friends that Turkey's good will lies in
keeping Iraq together," the report quoted a Turkish diplomat as saying.
"We will not support alternative solutions."

Where Are The Refugees?
[This column from Nat'l Review Online was written by Michael Rubin.
Rubin is a resident scholar at the American Enterprise Institute].
Op/Ed (CBS).  On Jun 17, I received a telephone call from an Iraqi
friend. Had I heard about the car bomb outside a military recruiting
centre in Baghdad? I had.
It was headline news. He proceeded to tell me that a mutual Iraqi
friend was in the hospital. He was heading to a meeting with an
American official and was in the wrong place at the wrong time; he was
hit by shrapnel.
Many Iraqis sacrifice for their country. Over the course of the 4 y I
have been involved in Iraqi affairs, I have lost a number of Iraqi
friends and, more recently, American colleagues. Newspapers, pundits,
and academics may scream "quagmire," but Iraqis remain better off
today than they did under Saddam. More importantly, Iraqis believe
their lives will be better in 2 y than they were 2 y ago. They have hope.
He-said, she-said arguments about media focus are meaningless. Cameras do
not lie, but they do not give the full perspective. The NY Times
has an editorial position in its news dept which is not going to change.
Headlines will continue to favour hyperbole over fact. Journalists will
write that Fallujah was a Sunni uprising, ignoring the relative calm in
Sunni towns like Ramadi, Baquba, Samarra, Hib Hib, Nahr al-Shaykh,
and Mosul.
Pundits and academics -- the shrillest of whom have not been to Iraq
-- will cast doubt on achievements. They will repeat the canard that
the Defense Dept was mistaken in its belief that Americans would be
greeted as liberators. They will ignore their own reporting from just
over a y ago: On Apr 10, 2003, the Washington Post headlined,
"Hussein's Baghdad Falls; US Forces Move Triumphantly through Capital
Streets, Cheered by Crowds Jubilant at End of Repressive Regime."
Buried in the Baltimore Sun the same day was a story entitled, "On
Arab TV, few tears shed over regime's fall; in a switch, US forces
shown controlling capital, being welcomed by mobs." Many small-town
newspapers readily reported what their un-jaded reporters saw. The
Clarion-Ledger in Jackson, Mississippi, for example, reported,
"American soldiers were welcomed as liberators as the citizens in the
streets told what US military leaders were hesitant to formally
proclaim: the end of Saddam's tyranny." The Greenville [South
Carolina] News reported that young people chanted, "'Bush, Bush, thank
you...' as American troops rolled through Saddam City in eastern
Baghdad." Even the French, never fans of liberation (except their own)
conceded the welcome.
The day after the fall of Baghdad, French radio announced, "Saddam
Hussein has fallen, his dictatorship too. The American soldiers are
received in Baghdad as liberators."
There are several objective factors to indicate that Iraqis have more
confidence in their future than do American pundits. On Oct 15, 2003,
the Coalition Provisional Authority issued a new run of Iraqi currency.
The Iraqi dinar floats freely and is traded not only across Iraq, but
also in the currency markets of Beirut, Cairo, and Karachi. Upon the
release of the new dinar, $1 bought 2,000. When I witnessed a
chaotic currency auction on the streets of Basra 3 m later, the dollar
bought only 1,100 dinar. For the last several months, the rate has
hovered between 1,400 to 1,450 dinars to the dollar. Simply put, nat'l
currencies do not strengthen when constituents have no faith in their future.
Apr 2004 was a m of chaos and scandal in Iraq. Pundits and left-wing
politicians began openly calling for withdrawal. Iraqis, however,
juxtaposed their Apr experience with what they had faced in previous
wars and under Saddam, and concluded that things were not so dire. The
Iraqi currency did lose 1.8% of its value in Apr, a relatively minor
decline compared to the Canadian dollar, which lost 4.5% of its value
relative to the USD over the same time period. Why? Iraq is not in a
free-fall; headlines or news coverage which implies as much is
wrong. Why else would the Iraqi currency do so well?
Some journalists are dishonest; most are not. Working on the streets of
Baghdad is difficult. Most correspondents hire local fixers to act as
translators, assistants, and facilitators. Often, these bilingual
Iraqis are asked to "go out and get quotes," while the W correspondent
writes his story in the Palestine or Sheraton hotel, or whatever other
lodging he has acquired. Some news agencies have continued their
relationships with their assigned fixers from before liberation. Others
disproportionately hired fixers from Saddam's now-dissolved Ministry of Info.
Ultimately, however, it is the editors' choice of what stories to
dedicate space to which shapes public opinion. Often, these stories
involve violence and the result is far less confidence in our mission
among Americans than among Iraqis. Objective indicators tell a far
different story, though. On Aug 16, 2002, the Guardian published
analysis which showed that 1-in-6 Iraqis fled their country during the
reign of Saddam Hussein. Human-rights groups intervened as Iraqis
smuggled themselves onto the shores of AUS and England. The French set up
detainment camps for refugees in towns like Calais. Turkey and
Greece cooperated to crackdown on people smuggling. In 2000-2001,
while a visiting lecturer in Safavid and Qajar dynasty Iranian history at
the University of Sulamani in N Iraq, I lost ten% of my class not to
dull lectures, but rather to people smugglers and illegal
immigration in Europe. This raises the question: If Iraq is in chaos,
too dangerous for even the UN to function, then where are the
refugees? Rather than fleeing, Iraqis are returning. They are opening
restaurants, boutiques, hotels, and car dealerships across the country.
One Iraqi told me he invested more than $200,000 in a new bottling plant.
Another spent $550,000 on a restaurant. Generally speaking, people do
not invest money when they have no confidence in the future. After 35 y of
dictatorship, ethnic cleansing, and genocide, Iraqis see light at
the end of the tunnel.
Antiwar activists, journalists, and progressive pundits paint a
portrait of Iraq that does not represent reality. On Jun 2, AUS's
largest-circulation daily, the Herald Sun analysed press bias in Iraq.
It took to task Aussie politicians who had cried wolf prior to the war.
Many of these politicians took their info from a report issued by
Internat'l Physicians for the Prevention of Nuclear War (IPPNW). The
IPPNW report predicted that US-led military activity in Iraq "could
kill between 48,000 and 260,000 civilians and combatants in just the
1st 3 m of conflict.... Post-war health effects could take an
additional 200,000 lives." Other groups predicted starvation and
malnutrition affecting 3 mn people, as well as a flood of
refugees. None of this happened.
John Pilger, the Michael Moore of Great Brit, wrote that UN sanctions
killed more than 60,000 Iraqi children each year. Civilian deaths
continue. According to www.iraqbodycount.net, 11,300 Iraqi civilians
have died since liberation. But, as the Herald Sun reported, "Iraqi
doctors now say it was Saddam himself who killed the children with his
greed and cruelty -- while killing 1000s of adults, too, every
year. So do the math. If Pilger was right, our liberation of Iraq has
already saved well over 40,000 lives."
Not everything has gone well in Iraq. US forces won a stunning
military victory; diplomats botched the occupation. Interagency
wrangling delayed establishment and hampered operation of a free Iraqi
media outlet. Rather than put an Iraqi face on occupation, Bremer
sought the spotlight. Many career diplomats treated Pres George W
Bush's goals for a democratic Iraq with disdain. Policy flip-flops
confused Iraqis looking for consistency. Bremer's personal foibles,
especially his tendency to treat mediators as adversaries and
personalise politics, antagonised Iraqis.
Because of his abuse of the Central Criminal Court of Iraq, some
Iraqis now compare Bremer to Ayatollah Sadiq Khalkhali, hanging judge of
the Iranian Revolution. Bremer's abuse of the judiciary has
undermined Iraqis' faith in American promises of democracy as much as a
small number of CIA contractors and the 800th Military Police
Brigade undermined faith in American human-rights standards. The US
military failed to adequately secure the border; Bremer's decision
last Oct to veto any contribution of Turkish troops to guard the
non-Kurdish portion of the Syrian-Iraqi border has had profound
consequence on the security of both Iraqis and American forces. Rather
than encourage political parties which span ethnic and sectarian
identification, the State Dept and Brit Foreign Office did the
opposite. Bremer's decision to hold party-slate elections rather than
single-member constituency elections will push Iraq further toward the
failed Lebanese model rather than true democracy. Ironically, Jordan
abandoned nationwide party-slate elections because they
disproportionately favoured militant Islamists.
Winston Churchill once quipped, "Americans can always be counted on to do
the right thing...after they have exhausted all other possibilities."
American operations in Iraq have not gone smoothly, but there has been
progress in Iraq, sometimes despite us, and sometimes because of us.
Iraqis may complain about CPA policies, but behind the complaints they
remain thankful that liberation created a template upon which they can
build. There is a tendency in an election y to bash Bush fairly or
unfairly. But, as the media paints a bleak picture with each bomb,
fairness requires an answer to the question, "Where are the refugees?"

SDF to continue Iraq rebuilding after Jun
Tokyo (Yomiuri Shimbun).  The govt said the Self-Defense Forces
contingent deployed in Iraq would continue to engage in humanitarian
assistance and reconstruction activities there after it joins a
multinat'l force to be formed after the transfer of power to the
interim Iraqi govt at the end of Jun.
But several issues related to SDF activities in the multinat'l force
remain unsettled as this will be the 1st time SDF personnel have taken
part in such a force.
Shigeru Ishiba, head of the Defense Agency, said Fri at a special
session of the House of Representatives' special anti-terrorism
committee that SDF personnel had never been placed under foreign
command and never would be in the future.
Ishiba said even if SDF personnel participated in the multinat'l
force, they would not take orders from the unified command.
The govt spelled out an official view on SDF activities in the
multinat'l force, saying SDF personnel would follow orders issued by
the govt based on its judgement, and SDF personnel would liaise and
coordinate activities with other countries.
Difference in terminology hinges on whether SDF personnel can turn
down requests to carry out certain activities.
At the same session, For Min Yoriko Kawaguchi said that regarding
securing Japan's right to independent command, she had gained support on
Jun 8 from the Brit minister-counsellor in Japan and a high-ranking
Brit Foreign Ministry official and on Jun 9 from the US
minister-counsellor in Japan and a high-ranking US State Dept official.
"In order to make it official between Japan and the 2 govts, the issue
was discussed formally and officially with each govt in advance," she said.
Air Self-Defense Force Chief of Staff Yoshimitsu Tsumagari said Japan
could reject on its own judgement activities it suspected involved the
use of force prohibited by the Constitution.
US Gen George Casey, the prospective cmdr of the multinat'l force,
will be in charge after SDF personnel join the multinat'l force.
Under the unified command, the Multinat'l Corps Iraq (MNCI) will
maintain law and order and fight insurgents, and the Multinat'l Force
Iraq (MNFI) will be responsible for humanitarian and reconstruction
assistance in the country.
SDF personnel will participate in the Multinat'l Division Southeast
(MNDSE), activities of which are supervised by Brit armed forces under
the control of the MNFI.
After coordinating assistance activities with other forces, the SDF
officially will receive assignments from the Brit armed forces.
From Dutch armed forces, which are in charge of maintaining public
security in Samawah, SDF personnel will seek security info after
determining the scope of their activities and routes to their destinations.
The multinat'l force's instructions to and control of the SDF
personnel will be limited to daily assistance activities.
It cannot order Ground Self-Defense Force personnel to take part in
military operations.
But Seiji Maehara, a lower house member of Minshuto (Democratic Party of
Japan), raised a question at the special session of whether SDF
personnel would enter a new category of activities after joining the
multinat'l force.
Defense Agency head Ishiba said the SDF personnel's activities would
not change and that they would not legally enter a new category.
At the session, the govt stressed it would not change SDF activities
nor its conventional interpretation of them even if the SDF
participated in the multinat'l force.
But the govt said SDF personnel would have to pay more attention to
coordinating activities they carry out there.
Currently, after the GSDF contingent in Samawah holds general
discussions with the Coalition Provisional Authority (CPA) on its
activities, it seeks agreement from local govts, water bureaus and
education boards to determine the scale and location of individual
assistance plans.
GSDF Chief of Staff Hajime Massaki said after the transfer of power,
the CPA, which has coordinated activities, would be disbanded.
"Operations under the multinat'l force are expected to become
complicated and troublesome," he said.
The govt decided to deal with such problems by increasing the number of
liaison officers responsible for coordination. The govt will
dispatch additional officials to Iraq at the end of Jun.

Nobody invited yet to Iraqi nat'l conference: organiser
Baghdad (AFP).  The chief organiser for a conference to select an
advisory body for Iraq's interim govt has said that nobody has yet
been invited, contradicting his earlier announcement that a firebrand
cleric had been asked to attend.
"The preparatory committee is currently studying selection criteria
for about 1,000 people who will help at the Nat'l Conference, so no
invitations have been sent out yet," Fuad Maasum said, correcting an
earlier statement.
Mr Maasum, head of the organising committee for the Jul conference,
said he had "invited someone recognised as someone who knows about
[Moqtada] Sadr, Ali Sumeissem, to take part in preparatory work".
Sheikh Sadr, a radical Shiite preacher, waged a 2-and-1/2 m
rebellion against US-led coalition forces and is wanted by an Iraqi
court in connection with the murder of a moderate colleague.
However, Mr Maasum said Mr Sumeissem had not turned up for a meeting
about the preparatory work.
Earlier, Mr Maasum told a press conference that Sheikh Sadr had "begun to
transform his militia into a political organisation, which is
considered a positive step", in response to a question on whether the
preacher would be invited.
Sheikh Sadr's chief rep in Najaff, the holy city 160 km S of
Baghdad which is his stronghold, said the cleric had not decided
whether to take part in the conference.
An announcement would be made on Tue, he said.
The conference, representing political movements, tribes and regions
from across Iraq, will select the country's 100-member interim nat'l
council.
The council will serve until Jan elections and have the power to
approve the nation's 2005 budget, veto legislation with a 2/3
majority, call ministers in for questioning over policy and pick a new
president or deputy president if one dies in office.

Marines bodies recovered after images aired on Iraqi television
Baghdad (AFP).  The bodies of 4 marines who were shot to death were
found in the western Iraqi city of Ramadi by a US rapid reaction force
only after Dubai-based Al Jazeera television aired images of the dead,
according to a US defence official.
"There was a firefight. We lost contact with them, and about an hour
later they were found, which I believe was after Al Jazeera aired the
photos," said the official, who asked not to be identified.
He said they were killed on what appeared to be a rooftop in Ramadi, a
city W of Baghdad that has been a focus of resistance to the US-led
occupation.
The marines were providing security for a key supply route through
Ramadi from a position overlooking the road, a 2nd defence official said.
"They were making periodic communications checks with their unit,"
that official said.
"When they missed one of those communications checks a team was
dispatched to their location and their bodies were found."
"All 4 were shot to death," he said.
Most of the marines' weapons and equipment were taken by the
assailants, the official said, adding that he did not know whether the
marines were able to return fire before they were killed.
Images replayed on US television showed the bodies of 4 men in uniform
but without helmets sprawled in an area bound by high walls.
In Baghdad, military officials said little about the deaths, following
the marines practice of providing no details on the circumstances
surrounding their casualties.
"4 US marines assigned to the 1st Marine Expeditionary Force were
killed on the 21st of Jun in the Al-Anbar province conducting
security and stability operations," a rep said, reading a statement.
In a separate incident, a US soldier has been killed in a mortar
attack in Baghdad, which left 6 other soldiers and one contractor
wounded, the US military said.
"The wounded were taken to a nearby military medical treatment
facility," the statement said.
The deaths raise to 621 the number of US troops killed in action since
the US-led invasion of Iraq in Mar 2003, according to an AFP tally
based on figures from the Pentagon.

Nauru's Govt toppled
Nauru.  The Pacific island nation of Nauru has a new Govt, which
includes several advocates of political reform.  The Opp'n was able to
topple the Admin led by Pres Rene Harris in a surprise vote of no
confidence.  Nauru's Parliament has been effectively grid-locked for
months.  Things were so bad that the Speaker issued an appeal recently
for MPs who were overseas to return home urgently so Parliament could
pass several urgent budget-related bills.  If they did not, it was
possible the Nauru Govt would run out of money on Jun 30.  Pres Rene
Harris responded to the situation by threatening to dissolve
Parliament.  Yesterday former president Kinza Clodumar broke the
impasse by crossing the floor to support an Opp'n vote of no
confidence.  The new Pres is Ludwig Scotty, and his ministerial team
reportedly includes some of the younger MPs who have been advocating
radical changes in the way the financially troubled island nation is run.

Cycling drug investigation must be swift: anti-doping head
Canberra.  It is hoped allegations of drug abuse by Aussie cyclists
will not tarnish the sport's reputation in the lead up to the Olympic Games.
The Fed Govt has called an inquiry into allegations made against 6
cyclists at the Aussie Institute of Sport in Adel.
Retired Supreme Court judge Robert Anderson will investigate the
allegations and examine if there has been any failure of management or
supervision at the Adel campus and whether the Aussie Sports
Commission responded appropriately to the allegations.
World Anti-Doping Association head Dick Pound says the investigation
must be swift and thorough.
"It will confirm that AUS is what is says it is and that is a leader in
the plate against doping in sport," he said.
The former president of the SA Cycling Federation and president of the
Adel Cycling Club, Rob Grivell agrees.
"We've got the games coming up and cyclists will be in turmoil over
these allegations," he said.
He says he welcomes the investigation.
Aussie Olympic Committee lawyer Simon Rofe says the cyclist at the
centre of the allegations could have a life ban by the Aussie Olympic
Committee reduced if he cooperates in further investigations.
"There is potential for his sanction to be reduced," he said.
He says the minimum sentence would still be 8 y.
Meanwhile, Mr Pound has warned drug cheats using growth hormones that
they are likely to be caught by a new test being prepared for the
Olympic Games.
Mr Pound says use of growth hormone is relatively new and could have
serious implications if abused.
"I hope we're going to have tests by the time of the Olympics that
will be reliable for growth hormone so I don't think that anybody who is
using it or has used it should be sleeping easily," he said.

RSPCA rejects criticism over caged chickens, live sheep exports
Sydney.  The RSPCA is rejecting criticisms by animal rights groups
aired on last night's Four-Corners program on ABC television.
The RSPCA came under fire for not doing enough about caged battery
chickens, pigs kept in small steel pens and live sheep exports.
RSPCA's nat'l president Hugh Wirth says people fail to appreciate that
govts have made these practices legal.
"Its no good blaming the RSPCA what we've got to do is get the Aussie
public to demand a change," he said.
The RSPCA says the Aussie public must demand changes in Govt laws if it
wants to stop farm animal cruelty.
Dr Wirth says the reality is that people have to be fed and they do
not think very much about where their bacon, eggs and meat comes from.
"When we have a campaign and alert Aussies to the truth about how a
particular animal species is being dealt with, we get a tremendous
reaction," he said.
"The problem is to transplant that reaction into political pressure."
Dr Wirth says his recent election as president of the World Society
for the Protection of Animals (WSPA) will help stop what he describes as
the cruel live sheep trade.
"The 1st thing I've been able to achieve is a commitment that next
year the WSPA will be running a major internat'l campaign against live
animal exports."
Dr Wirth says he has no doubt in the long term live animal exports
will be banned.

NT reveals new croc safari plan
Darwin.  The NT Govt says its latest proposal for saltwater crocodile
safari hunting addresses the Commonwealth's concerns about the humane
killing of the reptiles.  Under the plan, 25 crocodiles would be
killed by game hunters every year.  The Fed Govt received an initial
proposal earlier this y but asked for clarification on some issues.
The primary concern was whether the reptiles would be killed humanely.
The Territory's Parks and Wildlife Min, Chris Burns, says the final
report provides those assurances.

NSW Govt delivers $380 mn Budget deficit
NSW has boosted health funding by $700 mn.
Sydney.  The NSW Govt has delivered a $379 mn Budget deficit and
announced it will pay teachers more without slashing the education budget.
Today's Budget marks the 1st time in a decade that the NSW
books are in the red.
In the Apr mini-Budget, Treasurer Michael Egan forecast a $300 mn
Budget deficit but he has today revealed that has blown out by a
further $79 mn.
Mr Egan has blamed the increased deficit on the teachers' pay rise,
saying the extra 6.5% awarded a fortnight ago was double what the Govt
had factored in.
The Budget papers show the state will remain in the red next y to the
tune of $118 mn, before moving back into surplus in 2006-2007.
One of the state's richest taxation sources, stamp duty revenue, will
plateau over the coming year, with $3.8 bn making its way into
Treasury's coffers.
But Mr Egan says if not for the new vendor tax introduced in the
mini-Budget, there would have been a $400 mn shortfall.
"These facts underline the fairness of the measures we took in the
mini-Budget to impose a 2.25% vendor duty on the sale of investment
properties and completely abolish stamp duty for 1st home buyers," he said.
* Education, health
The Govt's decision to fund a pay increase for teachers from outside
the eduction budget should avoid further confrontation with the
state's teachers.
However, the NSW Teachers Federation is refusing to rule out further
industrial action.
Mr Egan has allocated an extra $700 mn to fully fund a 12% pay
increase awarded to teachers, with the education budget quarantined
after the Teachers Federation threatened to strike over the issue.
"The coming y will see our school children benefit with better paid
teachers and more of them," Mr Egan told Parliament.
The president of the Teachers Federation, Maree O'Halloran, says it welcomes
the decision not to slash the education budget to pay for the increase.
"However, this Govt should never have held out the threat of cutting
the budgets of TAFEs and public schools," she said.
She says a meeting will be held on Wed to assess the Budget and
discuss any further industrial action.
Capital works for hospitals and transport will get an extra $7.5 bn
this y, with health to get an extra $700 mn.
Health Min Morris Iemma says today's extra $700 mn for health is a
welcome investment for NSW and will go a long way to alleviate the
ongoing problems in public hospitals.
"Health is the big winner, a substantial investment backing our nurses
and doctors," he said.
"Absolutely, health is the big winner in this Budget, nearly $10 bn,
the biggest health budget of all time."
* 'A con'
The NSW Opp'n says the Govt is cooking the books by claiming it is
spending record amounts on capital works in today's Budget.
The Govt says it is spending a record $7.5 bn this y on infrastructure
for schools, transport and hospitals.
But Opp'n leader John Brogden says it is only an extra $115 mn for
this y, including $73 mn for school computers.
Mr Brogden says it is an attempt to deceive the public.
"This is not a school, this is not a hospital, this is not a railway
station," Mr Brogden said. "This is a con from the con artist himself.
"This is a stunt from Bob Carr and Michael Egan. Bob the builder is
Bob the conman and there should be no illusion about the masterful
piece of spin delivered by the Govt today."

Housing construction slows
Canberra.  New housing construction has slowed but not by as much as
forecast.  The number of new housing starts around AUS has dropped but
not as severely as widely forecast.  In the 1st 3 m of this y, work
began on almost 44,000 homes.  After quarterly increases of almost 5%
and 8.5% in the second half of last year, housing starts in the Mar
quarter this year are down 2.7%.  Financial markets had been expecting a
drop of about 7%.  At about 43,600 for the quarter, dwelling
commencements are still up almost 5% on a y ago.  In the latest 3 m,
Tas has seen its highest number of house starts in a decade and the
number in NSW has risen almost 19%.  This has been offset by falls of
between 9% and 21% in the ACT, Vic and Qld.

Summit to focus on housing affordability
Canberra.  A coalition of nat'l organisations, including housing,
local govt and welfare groups, says Aussies are now facing the worst
level of housing affordability.  The coalition will hold a summit in
CBR next wk to examine ways to address the problem.  Summit chair
Julian Disney says in the last decade, house prices have almost
doubled relative to incomes, home loan repayments have increased by
50% and the proportion of 1st home buyers has dropped by a 3rd.  He
has warned those problems will get worse without nat'l action.
"Unless there's far sighted and vigorous action, we're going to have a
poisoned legacy which we are passing on to future generations, of debt
and insecurity and hardship," he said.  "The damage won't just be to
individuals, it also erodes communities and families, it causes loss of
jobs and it gravely weakens the nat'l economy."

Fruit growers to protest against introduced apples
Shepparton, Vic.  The fruit growing town of Shepparton, in Vic's NE, is
expected to come to a standstill today, as demonstrators take to
the streets to protest against plans to introduce potentially diseased
New Zealand apples to AUS.
There are fears a Govt plan to introduce the fruit, which is commonly
found to carry the fire blight bacterium, could infect other apple
varieties, potentially wiping out the Goulburn Valley's major industry.
Fire Blight Action Committee rep David Jobling says the move by Govt is
setting the region up for an economic disaster, with a potential
annual loss of $77 mn.
"They're justifying that they believe they've got a protocol or
procedure that would allow apples to come in from NZ with minimum
risk," he said.
"We don't agree with that set of protocols and procedures. We think
that there is still a great chance for fire blight to become
established here in AUS."
New Zealand apple growers have accused their Aussie counterparts are
being hypocritical by opposing apple imports.
Phil Alison from Pipfruit NZ says there is scientific proof that
apples cannot transfer the bacteria.
He says AUS is happy with fair trade for exports, but becomes
conservative when it comes to imports.
"It's interesting, it's not just NZ, there are a number of actions
that have either been launched or are in the process of being launched
against AUS at the WTO and this is a situation that AUS's going to
have to address," he said.

Fruit bin bonfire marks apple import protest
A massive pyramid of fruit bins has been set alight at a rally at
Shepparton in Vic.
Shepparton, Vic.  About 5,000 people have attended the rally as a
protest against plans to allow NZ apples into AUS.
The rally began with a mock funeral procession of fruitgrowers,
business people and local families dressed in black who marched to the
Shepparton showgrounds.
The protest follows a report by Biosecurity AUS recommending the
importation of NZ apples under strict quarantine measures.
The Goulburn Valley produces about 85% of AUS's pears and growers fear
the industry could be wiped out if NZ apples introduce the devastating
disease, fire blight.
Frank, a cannery worker at Ardmona, says the impact would be widespread.
"What  I've  heard is, once it gets in that's it, it's there for good.
Everybody's livelihood's on the line," he said.
The rally concluded with the lighting of a stack of fruit bins,
symbolising the potential destruction of the region's economy.
Meanwhile, a protest against the import proposal has disrupted traffic at
Stirling in the Adel Hills.
The Apple and Pear Growers Association says more than 50 trucks and
100 growers are outside the office of local member and Foreign Min,
Alexander Downer.
Association manager Trevor Ranford says final submissions on the draft
report on imported apples is due tomorrow and local industry
representatives are handing their submissions into Mr Downer's office.

Bendigo remembers road crash victims
Bendigo, Vic.  Tributes are continuing to flow in for 4 Bendigo people
killed in a road crash at the weekend.  4 members of the Ervin family
from Golden Square and a French exchange student were killed when
their car and a truck hit head-on, S of Castlemaine, on Sun.
Killed were Richard Ervin, 45, his wife, Anne, 46, daughters Brooke,
17, and Jade, 14, and Elizabeth Marie Chambon, 15, from France.  The
other member of the family, Corinne Ervin, 20, who lives in MEL, is
being comforted by relatives and friends.  Anne Ervin's brother, Peter
Fitzpatrick, says the family will be deeply missed.  "They were just
fantastic people...everyone in Bendigo loved them and I mean, yes, the
funeral is just going to be massive and that just shows what sort of
people they were," he said.

Democrats query Baxter "punishment regime"
Canberra.  Aussie Democrats leader Andrew Bartlett has raised serious
concerns about what he calls a "punishment regime" at the Baxter
detention centre in SA.  In Parliament today, Sen Bartlett questioned
the legality of the alleged regime, which he says involves isolation
and delayed access to visitors and food.  However, Immigration Min
Amanda Vanstone says there is nothing illegal happening at the centre
and management is simply take proper care of detainees at risk.  "I do
not regard that as a punishment regime," she said.  "It is the proper
management of people who are at risk. You would expect them to be
watched.  "If someone threatens self harm and we were not watching
them 24/7, you would ask why."

Businesses enlisted to fight terrorism
The PM is set to encourage corporate chief executives to join the
fight against terrorism.
Canberra.  The Fed Govt has called a summit of AUS's top business
leaders to encourage them to play a greater role in the fight against
terrorism.  The forum will be held in CBR tomorrow and is believed to be
the first time PM John Howard has held a summit-style meeting with
the nation's chief executives.  Mr Howard will address the meeting, to be
attended by heads of companies in sectors seen as vulnerable to
terrorism, including energy utilities, transport, communications and
financial networks.  A-G Philip Ruddock will chair the meeting, which
ASIO chief Dennis Richardson and Aussie Fed Police Commissioner Mick
Keelty will address.  Mr Ruddock says businesses have a responsibility to
respond to the risk of attacks and to treat the threat as a
priority inside their companies.

Terror suspect overcomes new bail laws
Sydney.  The NSW Supreme Court has asked terrorism suspect Bilal
Khazal to increase to amount of surety offered, before the bail is
formally continued.  The 34-yo is charged with compiling a book on the
Internet, which the prosecution alleges was likely to facilitate
terrorist acts.  The court found Khazal has overcome the new
presumption against bail imposed by recent changes to legislation.
After he was granted bail by the local court earlier this m, the State
Govt amended legislation to create a presumption against bail for
people charged with terrorist offences.  After hearing a review of the
bail determination, Justice Greg James today told the Supreme Court he
was unable to see that Mr Khazal was any particular risk to the
community, despite the prosecution case being strong.  The matter will
return to court on Thu.

Record health spending tipped in NSW Budget
Sydney.  The centrepiece of NSW' Budget is expected to be $10 bn in
health spending when Treasurer Michael Egan delivers it in Parliament
this morning.
The Budget follows the mini-Budget in Apr which saw the introduction of a
property investment tax and relief for 1st home buyers.
Businesses are urging the NSW Govt to cut payroll tax and workers
compensation in the Budget.
Business lobby group Aussie Business Limited says employers pay more
payroll tax per employee than those in Qld and Vic, while workers'
compensation costs are the highest in AUS.
It says the gaps need to be closed to make the state more attractive
for investment.
The $300 mn deficit estimated for the coming financial y will also be
adjusted, but could blow out with the Govt having to factor in a 12%
pay rise for teachers at a cost of $400 mn.
The Greens say in the past 3 y the Govt has been too focused on
lowering debt at the expense of public services.
Egan has defended his record saying it has reduced interest payments.
"That's a bn dollars that we've saved every y in interest and that's a bn
dollars that goes into better public services and more public
works," he said.
It will be Mr Egan's 10th Budget, equalling the record for a NSW Treasurer.
* Teachers
Prem Bob Carr will not confirm where money for a 12% pay rise for
teachers will come from.
The Teachers Federation and Parents and Citizens Association want the
Govt to take it from general funds, not the education budget.
Teachers Federation president Maree O'Halloran says today's Budget
will also determine whether school and TAFE teachers will take more
industrial action.
"We'll be looking in the Budget today to make sure there is no cut to
the public education budget, that is the budget for TAFEs and for
public schools," she said.
"We'll be asking the Govt to stipulate that the salary increases have
been fully funded and that there are no cuts to programs."
Mr Carr says details will be revealed this morning and the salary
increase has put pressure on Govt coffers.
"All I can say at this stage is that the Budget will reveal record
spending in health, in schools, in public transport and police," he said.
"That's despite all the pressures we face with Fed Govt funding cuts,
increasing population pressures and, of course, the pressure of recent
salary decisions by the Industrial Relations Commission."

Health report card shows Aussies living longer
Canberra.  Aussies are living longer, more of us are surviving cancer
and fewer are dying of heart disease.  They are some of the key
findings of a health report card, produced by the Aussie Institute of
Health and Welfare and released by Health Min Tony Abbott today.  The
report also finds that fewer Aussies are smoking, dental health has
improved and childhood vaccination rates have increased considerably.
But Mr Abbott says it also reveals some disappointing news.
"Indigenous life expectancy is still 20 y or more below the life
expectancy for the rest of the community and we are now suffering from
epidemic diseases of affluence," he said.  "Obesity is a very serious
problem and we have an epidemic of diabetes, which is at least in part a
disease of lifestyle."

Councillors move to lift Daintree development ban
Daintree, FNQ.  2 councillors in far N Qld will today move to lift a
development ban nr the world heritage-listed Daintree Rainforest.
The controversial ban by the Douglas Shire Council affects 450 blocks of
undeveloped freehold land N of the Daintree River.
Deputy Mayor David Egan and Councillor George Pitt will introduce a
notice of motion at this morning's council meeting.
Councillor Egan says he will push for the development to be scrapped
unless the issue of compensation is resolved within 3 m.
"It's not Aussie, it's not democratic that people should be told that
...  after owning land for a number of years, be told they can't build on
them," he said.
"You name me anywhere else in the world or in AUS, who would be game
enough to do this?"
Tourism operators in far N Qld are demanding that a controversial
development ban stay in place.
Protesters and supporters have gathered outside a council meeting
where a motion proposing the ban be scrapped is expected to be put forward.
Shane Brant from Port Douglas Daintree Tourism says it is crucial that
the land is protected.
"Simply because we take away what is special about the place," he said.
"The fact that you have to take a barge across there, the fact that it is
not developed, it's the oldest low lying rainforest in the world,
there's also 12 species of bird there that's found nowhere else in the
world," he said.
Douglas Mayor Mike Berwick, who introduced the plan, says he is
confident the issues can be resolved.

Sugar grants spark ethanol row
$Multi-mn Commonwealth grants to Qld sugar mills has sparked a row
between the Fed Industry Min and Prem Peter Beattie.
Brisbane.  The Rocky Point Sugar Mill nr Beenleigh and the CSR
Distilleries at Sarina will share in $6.5 mn in fed grants and the
money will be used to boost ethanol production.  Mr Beattie warns the
money will be a waste if the Fed Govt does not mandate the use of
ethanol in petrol nat'ly.  "We've got to mandate e-10," he said.  "And
not only is it good for the environment it actually creates jobs in
Qld."  Fed Industry Min Ian Macfarlane says there is a lot Mr Beattie
could do to create a market for ethanol.  "He has the legislative
ability, if he wants it, and I can show him the relevant act, if he is
keen to mandate ethanol in Qld," he said.  The Prem has dismissed this
suggestion, saying it is illegal under the constitution for him to
mandate ethanol use in Qld.

High school students suspended for drug use
Edu Min Anna Bligh says drugs are not out of control in Qld schools
despite graphic evidence of drug-taking at Kenmore State High in Bris.
Brisbane.  Video footage of students smoking marijuana has been aired on
television, along with claims that some teachers turned a 'blind eye'.
The Education Dept says the school is investigating whether the
incidents were "staged" for the camera.
Ms Bligh says the school suspended 7 students when drugs were
discovered last m and a decision is due this wk on their expulsion.
"I don't think this is a common problem," she said.
"This is an unusual circumstance in a school, but I think we would be
naive to think that with literally 100s of high schools, with 100s of
1000s of students, that from time to time some of them won't get
involved in these sorts of matters.
"It is taken very seriously by schools."
The Qld Drug and Alcohol Foundation says students from the school
should not be expelled.
Foundation's chief executive Bob Aldred says expelling the students
could make the problem worse.
"Rather than have a punitive policy it would be far better for the
school to use professional counsellors to find out the reasons why
they're using [the drugs]," he said.
"Otherwise, these young [people] could feel rejected again, be left to
their own devices and become even more reliant on drugs to solve their
emotional problems."

PM unfurls flags and fitness for schools
[On even-numbered days: whinge about "the socialist nanny state";
odd-numbered days:]
Schools told to fly the flag, or no money.
Canberra.  Every Aussie school will be required to have a functional
flagpole if they are to receive additional funding, under Fed Govt
legislation to be introduced to Parliament tomorrow.
Schools will also have to set 2 hr aside every wk for exercise for
primary and jr high school students.
The flags and exercise regime are 2 of numerous new conditions that
will be attached to $31 bn in Commonwealth school funding which was
originally announced in Mar.
Under the Govts plans, principals will also have greater say in who
will teach in their schools.
Mr Howard says the policy is parent-driven and he has rejected
suggestions that making schools fly the Aussie flag is old-fashioned.
"I don't think that kind of symbolism is old-fashioned at all," he said.
"It's perfectly compatible with the attitude of Aussies, the display of
the nat'l flag by Aussies now is far more regular, far more
visible, far more a part of life than what it was when I was 30 y younger."
Mr Howard would also like the nat'l anthem sung: "I wouldn't mind
that, I mean we're not requiring that."
Labor's education rep, Jenny Macklin, told Parliament the conditions
were unfair and divisive.
"The Govt is actually more concerned about the condition of the
flagpoles at our schools rather than the resources available to our
children in our classrooms," she said.
Nonetheless, Labor says it will support the legislation to provide
funding certainty to schools.

Turnbull accused of electronic stalking
Sydney.  The Liberal Party's high profile candidate for the SYD seat of
Wentworth has been accused of electronic stalking.  [Turnbull says
he's paid Google to put his site up when anyone searches for
"Wentworth" and -- apparently -- "Peter King"].  The claim has been
made against Malcolm Turnbull in Fed Parliament by the man he defeated in a
pre-selection battle for the seat.  The sitting Liberal member
for Wentworth, Peter King, told Parliament that for several wk when
his name was typed into an Internet search engine, it produced a
sponsored link to a site for his rival.  "I believe this was a
deliberate attempt to confuse the constituency and in these respects
the interference was inappropriate and, in my view and the tentative
view of the clerk whose advice I sought, amounted to a potential
breach of Section 4 of the Parliamentary Privileges Act," he said.  Mr
King also complained of public events being interrupted and supporters
being threatened with expulsion from the party.  But Mr Turnbull says
any complaints about confrontations in the electorate are false.

Independents working to pass Govt super scheme
Canberra.  A key Sen has confirmed that she and other Independents are in
talks with the Fed Govt to help pass generous superannuation
measures in the Senate.  The changes would give high income earners a
superannuation tax cut, and create taxpayer-funded co-contribution
incentives to boost the retirement savings of low income workers.  But
Progressive Alliance Sen Meg Lees says she is not yet happy with the
deal the Govt is offering.  "We're talking, we're working on it," she
said.  "In fact I think there's a number of us who are working on it
independently at the moment to look at whether or not we can change
some of the numbers, but the principle of improving the
co-contribution, I think, is something that's worth sticking with."

Costello mocks Labor's PBS backflip
PBS drugs to cost more after Labor change of heart.
[Of course, it indicates the govt's claims drugs won't increase in
price under its policies is also a lie. Pensioners will pay an extra
$1.14 per scrip, everyone else pays $6.50 more].
Canberra.  The Fed Opp'n has decided to support the Govt's planned
increase in the amount patients pay when they buy subsidised
medicines, after previously blocking the move.
However, Labor says it will try to claw back any increases if it wins
govt at this y's election.
Labor has previously used the Senate to block govt moves to increase
the amount patients pay for subsidised medicines by $1.00 to $4.60 for
pensioners and concession card holders and by $6.00 to $28.60 for others.
Now it has decided to allow the increases to proceed.
Fed Treasurer Peter Costello has ridiculed the Opp'n for belatedly
supporting the plans Mr Costello welcomed Labor's change but
questioned why it has taken the Opp'n so long to reach the decision.
"For 25 m, that Bill has either been sitting in the Senate or
rejected by the Aussie Labor Party," he said. "For 25 m, the Aussie
Labor Party has had the opportunity to pass that Bill."
* Hard decision
Labor's finance rep, Bob McMullen, says it was a hard decision.
"Everybody knows that this is not the sort of decision that a Labor
govt would ever want to take," he said.
"But we have done it because we have to defend the integrity of our
budget situation.
"We have to defend the budget pledge that we have made about
delivering surpluses in every y to sustain downward pressure on
interest rates and we will."
Labor's Caucus endorsed the decision today after a lengthy debate.
About 15 Labor MPs spoke on the matter, some raising concerns about
affordability and the political consequences of reversing Labor's position.
But others argued the $1.1 bn in savings could be used to fund Labor's
commitments in the lead-up to the election.
Opp'n leader Mark Latham supported the change in policy.

Families responsible for over-payments: Patterson
[With Centrelink making a mn mistakes pa, better check you're actually
entitled to it before you cash that cheque!]
Canberra.  The Fed Govt says it is up to Aussie parents to notify
Centrelink if they have been incorrectly paid the $600 per child
family payment.  Almost 2 mn Aussie families are expected to have had
the Budget measure deposited directly into their bank account by the
end of today.  Labor says 100s of families have been wrongly paid the
money or paid the incorrect amount.  Families Min Kay Patterson has
told Parliament that if that is the case, it is because families have
not kept Centrelink up to date with their details.  "It is up to
families to inform Centrelink if their circumstances have changed and
some families' circumstances change depending on who has custody of
the child and changed arrangements in terms of families," she said.
"But families need to advise Centrelink of their arrangements. Where
there's a clear case of fraud, if there has been a case of fraud, the
Commonwealth would seek to recover this payment."

Tarmac mishap strands Jetstar passengers
Sydney.  More than 100 Jetstar passengers have spent the night on the
Gold Coast after a mishap on the tarmac at SYD Airport late yesterday.
Jetstar's flight 552 from SYD to Coolangatta was cancelled when the
cabin door was ripped from the plane as it tried to depart the
terminal.  The passengers on those flights were flown to Bris or the
Gold Coast on other services, but the scheduled return trip to SYD was
cancelled.  Jetstar corporate relations manager Simon Westaway says
the airline offered to meet the accommodation costs of passengers left
stranded at Coolangatta.  He says the incident at SYD Airport is being
investigated.  "Unfortunately a small section of the air bridge
connected with the aircraft door and caused some damage to the door," he
said.  "There was no impact on the passengers, on the plane in
terms of any injury under any circumstances, however the aircraft was
inoperable to fly."

Virgin Atlantic to fly to AUS from Dec
London (AFP).  Richard Branson's Virgin Atlantic airline has said it
will start flying to AUS for the 1st time in Dec, challenging the
dominance of Brit Airways and Qantas on the popular long-haul route.
Virgin will launch daily flights from London Heathrow to SYD via HK
from Dec 7, initially using an Airbus A340-600 aircraft which will
later be replaced by the new Airbus A380 super-jumbo.  "I am delighted
that Virgin Atlantic is now able to offer flights to AUS, everyone at
Virgin has long wished for us to operate to AUS and today's
announcement really is a dream come true," said Sir Richard Branson,
the Brit business tycoon who founded Virgin Atlantic and is now its
chairman.  "Aussies have also been waiting for many y for the
BA-Qantas duopoly to be broken and for new competition to be
introduced," he said in a statement.  Virgin Atlantic is 51% owned by
Branson's Virgin Group and 49% by Singapore Airlines.

Slow start to regional airport security boost
Security upgrades at regional airports such as Wagga Wagga, Albury and
Griffith will take much longer than the Fed Govt originally promised.
Canberra.  The planned changes are in response to fears of terrorism.
As the Govt's Jul 1 deadline for the enhanced aviation security
package draws closer, there has been little noticeable work carried
out at regional airports.
And if Aussie Airports Association director Michael Dubois is correct,
there is still a long way to go.
"To be honest it most probably realistically won't be in place and
airports certainly won't have their facilities in place for at least
another 12 m," he said.
Vicki Dickman, a rep for the Dept of Transport and Regional Services,
says the longer time-frame is necessary.
"The infrastructure will start to be rolled out soon, but what we want to be
able to do is ensure that when that infrastructure is rolled out
that it's not putting a huge maintenance burden on regional airports,"
she said.
A security workshop for regional airport operators will take place in
Albury tomorrow.

Qantas to base some staff offshore
Qantas will base 400 of its flight attendants in London.
Sydney.  Qantas has decided to go ahead with plans to establish a
London base for some of its internat'l flight attendants.
The decision is likely to spark industrial unrest at the airline,
given the Flight Attendants Association expressed outrage when the
proposal was 1st aired.
Qantas says 400 flight attendants will be moved to London from Jun
next y and a further 250 will be moved to a new base in Bris.
The airline's chief executive, Geoff Dixon, says in a statement the
decision will not cause any job losses but will save the company $18 mn a y
"through rostering efficiencies and reduced accommodation and
allowance costs".
"These savings, and others we need to continue to push through the
company, are essential if Qantas is to continue to grow and prosper," he
said.
"As a global airline with very significant offshore operations we
cannot continue to source all our people and services in AUS alone.
"We must strive for an internat'ly competitive cost base against many
competitors who, through Govt ownership and subsidies, do not operate to
the same economic disciplines as Qantas."
Mr Dixon says Qantas sources 94% of all its employees from AUS, a
figure which he says is much higher than at the airline's competitors.
Qantas shares fell 0.5 of a% to $3.39 immediately after the announcement.

Anti-crime watchdog needed in Vic: Opp'n
Melbourne.  Vic Opp'n leader Robert Doyle says the latest claims of
police corruption need to be investigated by an independent crime and
anti-corruption commission.
A police informer has made the allegations against 4 former Drug Squad
detectives.
The police informer made the allegations in a committal hearing over
drug trafficking charges laid against murdered underworld figure,
Lewis Moran, and 2 other men.
The corruption allegations are made against 3 serving officers --
Martin Allison, David Bartlett and Victor Anastasiadis.
The 4th former drug squad detective, Paul Firth, has been suspended.
The informer claims the men forced him to sign false documents and
turned a blind eye when he passed on nearly $3/4 mn in drug money to jailed
drug squad detective, Steve Paton, and accused detective, Wayne Strawhorn.
Mr Doyle says Vic needs an independent crime and anti-corruption
commission to investigate such allegations.
"Every fresh allegation means that we have to think about corruption
and what it means for our community," he said.
The detectives have all repeatedly rejected the informers claims in court.
Police Min Andre Haermeyer and Vic Police say they will not comment on an
ongoing hearing.

Court to deal with corruption charges: Bracks
Melbourne.  Vic Prem Steve Bracks says new allegations of corruption
against 4 former drug squad detectives will be dealt with by the
courts.  A police informer has told a closed court, the 3 officers --
Martin Allison, David Bartlett, Victor Anastasiadis -- and suspended
officer Paul Firth forced him to lie about the passing of drug money to a
police officer.  3 of the police officers are still serving.
State Opp'n leader Robert Doyle says the allegations a further proof of
the need for an independent crime commission.  Mr Bracks says a
commission would jeopardise current cases before the courts.  "We
don't want to be in a position where we're throwing out those cases
because a full and fair trial cannot be given to those particular
matters," he said.  "That was the advice that we got from the DPP,
clear advice that even a narrow term of reference around a Royal
Commission would put in jeopardy those cases."

Hospital pays $5 mn after baby left brain damaged
Melbourne.  A MEL hospital has agreed to pay $5 mn to a boy who
suffered severe brain damage after an overdose.  Nathan Liu suffered
severe brain damage after he was given 10 times the amount of dextrose he
should have received in a rehydration solution at the Royal
Childrens Hospital, where he was being treated for vomiting when he
was one-mo.  The Supreme Court heard his vision is impaired and he has
cerebral palsy.  Outside court, lawyer Kathryn Booth said the family
was relieved by the $5 mn compromise settlement.  "A terrible mistake
was made at the Royal Childrens Hospital in Sep 2001 but negligence
has been admitted and the matter has now settled," she said.

Private US rocket plane soars into space
Mojave, Calif (Reuters).  The privately funded rocket plane
SpaceShipOne flew to outer space and into history books on Mon as the
world's 1st commercial manned space flight.
The white rocket plane was released from a larger plane called the
White Knight and ignited its rocket engine to enter space and reach an
altitude of 328,491 feet, or 62.2 miles above the earth.
Against the backdrop of a clear blue sky, it landed safely back at a
runway in the Mojave Desert in California, about 100 miles N of
LA. Thousands gathered for the hour-long journey.
"The sky was jet black above, and it got very blue above the horizon,"
said pilot Michael Melvill, 63, who earned his wings as an astronaut
and was greeted by Buzz Aldrin, one of the 1st men to walk on the moon.
"The earth is so beautiful," added Melvill in describing the planet's
vast curvature and the S California coast he saw during a brief 3 and
half minutes just beyond the atmosphere.
"The flight today opens a new chapter in history, making space within
the reach of ordinary citizens," declared Patti Grace Smith, FAA
associate administrator for commercial space transportation.
In Washington, Michael Lembeck of NASA's office of exploration systems
said the agency might offer up to $30 mn in prizes to encourage
commercial missions to orbit the Earth or land on the moon.
Lembeck told Reuters there was even discussion of offering "a couple
hundred mn dollars for the 1st private orbital flight."
SpaceShipOne with its striking nose -- a pointed cone covered with
small portholes -- was designed by legendary aerospace designer Burt
Rutan and built with more than $20 mn in funding by billionaire Paul
Allen, who co-founded Microsoft Corp.
Rutan and Allen said the success of the project proved commercial
space flight and space tourism would soon become a reality.
"We've clearly shown it can be done," said Allen, who attended the
launch of the 1st US space shuttle in 1981.
Future flights in spacecraft based on SpaceShipOne's design will be
able to take at least 6 passengers to 93 miles above the earth, said
Rutan, who designed the Voyager airplane that was flown nonstop around
the world in 1986.
* GUINNESS CITES PROJECT
Melvill's mission was the 1st privately piloted flight in the space
age that began when Soviet cosmonaut Yuri Gagarin orbited the earth in
1961. It also marked the 1st time a non-govt spacecraft reached the
altitude considered to be the boundary between earth's atmosphere and
outer space.
The Fed Aviation Admin awarded Melvill with its 1st civilian astronaut
wings, and Guinness World records cited the team for achieving the 1st
commercial manned space flight.
After burning its rocket for about 80 seconds, SpaceShipOne sped up to
more than 3 times the speed of sound and then coasted to its peak
altitude, making Melvill weightless.
He said he released a bag of M&Ms chocolates, which "just spun around
like little sparkling things."
There were a few glitches, however, that may delay Allen and Rutan's
next goal, an attempt to win the $10 mn Ansari X Prize, offered by a
group of private donors to the 1st team that sends 3 people, or an
equivalent weight, into space and repeats the trip within 2 wk.
SpaceShipOne's trim controls got stuck as it made its rocket boost,
causing it to go about 22 miles off course and not reach its full
expected altitude of 68 miles.
In addition, a piece of cowling, or protective cover nr the end of the
rocket nozzle, buckled, Rutan said.

{{
1 am
SpaceShipOne has flown into space for the first time.  The first
commercial sub-orbital craft left the ground about 30 mins ago under
the wing of a specially-built airplane -- White Knight.  It carried
its single passenger to an altitude of 100 km and returned safely to earth.

3 am
Brit says it's negotiating for the return of 3 navy vessels and their
crew from the Iranian govt.  It says the boats were involved in
training the Iraqi river police, and accidentally wandered into Iran
territorial waters.

4 am
Brit officials in Iran are holding urgent talks for the return of Brit
seamen. A rep for the MoD said they hoped to bring about a swift
resolution. A rep for Tehran hinted the men could be handed over quite
soon. But observers say Iran TV has been granted permission to film
the captured men -- an indication they may be held for some time yet.

Gen Mark Kimmitt says a Brit naval training team accidentally strayed
into Iranian waters.  It had set out from Basra on a training
exercise, he said.  Other reports from the BBC say the Brit soldiers
were delivering a boat from Umm Qasr to the port of Basra.  Diplomats
are trying to sort out the mess.  Iranian authorities say it's seized
weapons, maps and satellite navigation gear.

6 am
Fighting has broken out in 2 cities in Chechnya.  At least 10 people
are reported dead.

10 am
Aussies are living longer, more of us are surviving cancer and fewer
are dying of heart disease.

Fed Opp'n leader Mark Latham has signalled Labor might wait until the
election is called before releasing its tax policy.

Labor MPs have welcomed the latest Newspoll saying it shows the Govt's
advertising blitz is not working.

Labor is back in an election-winning position, reversing poll results
earlier this month, the latest Newspoll has found.

NSW Treasurer Michael Egan says today's Budget provides essential
funding for nearly a 3rd of the state's population living outside the
metropolitan areas of SYD, Newcastle and Wollongong.

The Fed Opp'n has decided to support the Govt's planned increase in
the amount patients pay when they buy subsidised medicines, after
previously blocking the move.

The PM has ridiculed the Opp'n for refusing to make up its mind on the
proposed free-trade agreement with the US.

There has been a mixed response to a deal between the Fed Govt and the
Democrats to pass new superannuation legislation.

Midday.
All Ords is down 14 pts, handing back all its gains from the day
before.  The Dow closed down 45 pts.  In London, the FTSE closed down
4 pts.  The Nikkei is down 84.  The AUD is trading at 69.09 US c --
almost unchanged.  The greenback is weaker.  Gold is up $1.10 at
$US394.95/oz.  Oil is steady.

A roadside bomb in Mosul has killed 4 Iraqis.  The men were working
for a private company. A crowd quickly gathered. And cheered.
Overnight, the Dead of Mosul Uni's law school, and his wife, were
murdered. Their throats were slit.

Street protest in Seoul have demanded the govt scrap plans to send
more troops to Iraq.  Ohm Electric -- who was bidding on
reconstruction projects -- said the increased protests will impact
its bottom line.  The kidnapped man was working for the company.  2
other employees were shot dead in Iraq earlier this y.
[How inconvenient for the bottom line!]

Jetstar is investigating how an airplane door was ripped off during
while leaving an airport gate.  The company's blamed a contractor for
the incident.

For the first time in a decade, the NSW state budget has been pushed
into deficit.  Treas Egan said the $309 mn deficit came about because
NSW taxpayers were subsidising smaller states.

Advertisers are worried that plans to limit advertising of junk food
during children's TV times could cost their industry more than $200 mn
pa.  Medical groups say studies are unambiguous -- the more children
watch TV ads the more they eat junk food.  In a recent study of 13
OECD countries, AUS was found to have the highest number of junk food
ads during children's TV viewing times.

NAB shares are up another 20 c to $29.94, rewarding the selection of a
new chairman.

Governors of 18 US states have met to discuss the worst drought on
record [in 500 y].  On Lk Powell in S Utah, the water level has
dropped more than 125 ft over the past 5 y.  The sit'n may now be the
norm for the region.  In LV, water is so tight the city is paying
home-owners to replace lawns with cactus.  Studies of tree rings show
the last 100 y were unusually wet -- when the population grew the
most.  This may have mis-led planners.

The 62 yo pilot of SpaceShipOne says the flight was "spot on".  But he
did hear a loud noise at an altitude of around 100 km and lost some
control.  Back on the runway, he discovered some buckling in the
rocket engine cowling.

7 pm
School funding is now contingent on school exercise programs, reports to
parents where each child is in the class, each school having a
flagpole and flying the flag, that schools "work out values" and have a
school motto.  This is what Australian parents want, said PM Howard.

The Fed Opp'n has indicated it will be prepared to increase the cost of
PBS drugs in order to ensure its election promises are fully funded.
Peter Costello has welcomed the back-flip.  He told parliament today
that the "Magic Pudding" -- a common theme t'out the Treas's speeches in
the House this wk -- doesn't work the same as it did in the past.

Still no word on the 33 yo S Korean hostage in Iraq.  Al-Qaeda kidnappers
had threatened to behead him earlier today if Seoul didn't withdraw
its troops from Iraq.

9 pm
MEL. A Mornington man has been charged with the murder of his wife and
baby daughter. A special session was told Mr Sharp has admitted to
killing his wife in her sleep, and then killing his baby daughter a
few days later. Mr Sharp has previously maintained in a Mosley-like
manner than his wife had left him, and taken their daughter with him.
He claimed he'd spoken to them several times since. The court was told
Mr Sharp used his wife's credit card to maintain the illusion she was
still alive.

Brit officials are still playing down the interception of 3 Brit navy
vessels in Iranian waters. Tehran says it will prosecute 8 seamen for
illegally entering nat'l territory.  The Brits say the seamen had only
their personal weapons, and the patrol boats were unarmed.  Iranian
authorities say they found the group with detailed maps of the region.
Similar incidents sparked the Iran/Iraq war.

A Pentagon official has described as "very off" the killing of 4 US
soldiers in Ramadi. The 4 were all shot at very close range.  Mark
Kimmitt said a rapid reaction force had been sent in after the patrol
had failed to report in.

There have been more clashes in Sadr City, Baghdad.  Militias loyal to
Moqtada al-Sadr have exchanged fire with US soldiers.

Links between Saudi al-Qaeda groups and security forces have been
heightened with the announcement of a new head of the local terrorist group.

FM Downer says he's confident that the ousting of PM Harris in Nauru
will not affected Aussie detention centres on the Pacific island.
Harris lost a no confidence motion after a key govt Min crossed the
floor. The crisis was sparked after moves in AUS to foreclose on
Nauru's assets. The tiny country was once the Pacific's richest
nation. But its only income now comes from a number of detention camps
linked with the Howard govt's "Pacific Solution" to immigration.  7
Iraqis at one detention centre remain on hunger strike.

Israeli Opp'n leader Shimon Perez says speaking at an unauthorised
outpost said Labour won't join the ruling Likud govt until it commits to
the Gaza withdrawal.  Elsewhere, 10 radical Palestinian groups say
they don't want Jordan or Egypt taking any part in security after an
Israeli pullout.

At the UN's first anti-Semitism conf, Kofi Annan has condemned what he
said was a rise in hate crimes around the world.

Cycling Australia says 6 cyclists will be investigated for the use of
banned substances before they are allowed to go to the Athens Olympics.
A rep read out a comprehensive statement of denial from the group.

10 pm
Trading in Alitalia is suspended this evening, as markets wait to see
whether the Italian govt will step in and bail out the bankrupt carrier.

10.30 pm
Muslim clerics in contact with insurgents in Iraq say a deadline to
kill a hostage has been extended.  They say the S Korean translator is
still alive, but the insurgents are still demanding SK remove its
troops from Iraq.

The Brit govt has called the Iran Amb in for a "please explain" after
Iran state TV said 8 Marines and seamen would be tried on unspecified
charges.  What might have remained an "incident" has blown out into a
diplomatic row, with Tehran parading its blindfold captives on state
TV.  The FO is reportedly ropable over the treatment of the seamen and
marines.  There was nothing unusual in what the group were doing, said a
Brit cmdr, when they were captured by Iranian border guards.
Analysts say Iran may be trying to show the new Iraqi govt "who's the
boss" by starting a niggling border issue.

In Dagestan, Russian forces have clashed with insurgents in the
capital.  In Ingushetia, gunmen have seized key points. Dozens are
dead.  Russian TV says the 2 outbreaks are related for local pushes
for independence from Russia.  BBC says 200 Chechen fighters launched
the co-ordinated attacks on 3 towns across Ingushetia, starting in the
early hrs of the morning. Putin has ordered Russian forces to hunt
down guerrillas and "destroy them". As an afterthought, the Russian
Pres said if any of the insurgents could be captured alive, they would be
brought to trial.

In Perth, police have re-captured the last of a group of prisoners
that escaped from the court house earlier this m.

11 pm
The body of a 66 yo man charged with child sex offences has been found in
his Adel home. Police say there are no suspicious circumstances.

Health officials say W and C Africa is on the verge of the biggest
polio epidemic in ys, because N Nigeria has stopped its immunisation
campaign.  Islamic clerics in N Nigeria has managed to stall the govt
program to inoculate children against polio.  They claim it's a
western plot to render local women infertile. The WHO is warning of an
epidemic, with 5 times as many paralysed this region in Nigeria alone,
than in the entire region last y. In Feb virologists announced they
had found a genetically identical polio in other countries in W
Africa, and suspect it may have originated in Nigeria.

A Europol conf in the Hague will be told today that Brit police
believe there had been 100 so-called "honour killings" in the UK over
the past 10 y.

Imran Khan and his wife, Jemima, have announced their divorce after 9 y of
marriage.

11.30 pm
A 3 y study of media by Glasgow Uni has found Brit TV is biased in
favour of Israel in the Middle E.  The study found Israelis were
quoted twice as often as Palestinians, and the media had not presented
anything about the origins or history of the conflict.  The researchers
found a different kind of language was used for fatalities on either
side of the conflict.  Israeli deaths were described as "atrocities",
"cold-blooded" and "mass murder". Such terms were not favoured for
Palestinians.  During the period of the largest number of Palestinian
casualties during incursions in Jenin and other camps, more coverage
was evident for a relatively small number of Israeli deaths.  80% of
Brits rely on the TV for their news about the world.  Many people
interviewed by the study believed "the occupied territories" referred to
Palestinians occupying Israeli land.
}}

----------------------------------------
Wed, 23 Jun 2004.

	HEADLINES:
3 US oil companies subpoenaed in Iraq probe
US aid to rebuild Iraqi universities falls far short
Texans killed in Iraq since war began
Wolfowitz foreshadows years of US occupation
Support to keep troops in Iraq rising: poll
Militants decapitate S Korean hostage in Iraq
Key US allies extend Iraq troop deployments
Iraq: 4 killed in Fallujah in US air strike
Hungarian leader pledges to keep troops in Iraq
Hostage executed as soon as gov't rejected Iraq deployment demands
5 US soldiers, 5 Iraqi contractors killed
"Sovereignty": Iraq ministers told only US can impose martial law
"Fahrenheit 9/11" R rating appeal fails
ALP members defend backflip over PBS
Abbott accuses Latham of "left-wing Hansonism"
Abbott hopeful of quick passage for prescription drug Bill
Al Qaeda still lurks in Afghanistan: Hill
Baby bonus fuels Indigenous violence: ATSIC
Be alert for return of ad campaign
Brit sailors could be released soon: Iranian official
Brown urges PM to condemn interrogation techniques
Bush claimed right to waive anti-torture laws
Bush condemns latest beheading
Car bomb kills 2 children in W Baghdad
Child dies in Baghdad blast
Collins in critical condition after crash
Convicted Belgian child killer to appeal against verdict
Crude rises 48 cents to $38.11/bbl
Dams threaten world's largest rivers: report
Home ownership probe urges tax review
Howard hosts anti-terrorism summit for business
Labour motion removes Sharon's safety net
Large explosions hit Fallujah
Lawyers abandon case to release detained children
Man fronts court for murdering wife, daughter
Opp'n claims $30 mn wasted on tank upgrades
PM says prepare for the worst
PNG to use special powers to accept Aust aid
Palestinian militants killed in Gaza Strip raid
Poor paying more tax: ACTU
Rumsfeld approved harsh interrogation
S Korea to deploy troops despite beheading
Saddam prison letter says his morale high: "Newsweek"
Search continues for bodies of murder victims
Senate hitch faces US free trade bill
Senate support for FTA legislation still unclear
Sens clash with spy agency over Bali warning
Skilled vacancies rise 1.3%
Small business to benefit from new competition laws
Survey shows dairy farmers on road to recovery
Ted Smout: A soldier and a gentleman
WWI veteran Smout dies
WWI veteran Ted Smout dies
Tourist boat capsizes in China
US air strike kills 3 in Fallujah
US approved use of dogs on Guantanamo prisoners
US corrects global terrorism figures
US hands AFP crime proceeds payment
US says terror incidents rising
WA Nats alarmed over police holding cells
Wall St ready for interest rate rise
Water pressure rises ahead of summit


3 US oil companies subpoenaed in Iraq probe
Fed grand jury looking into UN oil-for-food program
UN (CNN). 3 of America's biggest oil and gas companies have received
subpoenas from fed prosecutors related to the UN oil-for-food program in Iraq.
Exxon Mobil Corp, ChevronTexaco Corp and Valero Energy Corp -- all
major buyers of Iraqi oil under the UN-managed program -- were sent
subpoenas last wk by the US attorney for the S District of NY.
"We are responding appropriately," said Prem Nair, rep for Exxon
Mobil, the largest provider of gas and oil in the United States.
"We purchased oil through the oil-for-food program from the beginning of
the program to its end, and everything we did was within US law and
UN guidelines," Nair said.
Jeff Moore, a rep for ChevronTexaco, the country's 2nd biggest oil and
gas provider, said the company is cooperating with the "request for info."
Mary Rose Brown, snr VP for corporate communications at Valero Energy,
said the company received a subpoena in connection with a fed grand
jury investigation into the program.
"We intend to cooperate fully with the investigation and have until
Jul 27 to produce a list of documents and other items associated with
our purchases of Iraqi oil in the 1995-2003 time period," Brown said.
A rep for the US attorney's office would not say what the request for
documents was related to.
Congress, the Iraqi govt and the UN are already conducting separate
investigations into allegations of corruption and mismanagement in the
program.
Paul Volcker, the former Fed Reserve chairman who heads the UN probe,
said his committee will need "a y or more" to come up with final
conclusions, though its 1st interim report is expected in 2 m.
Allegations of corruption haunted the program from its inception, but
the controversy gained momentum with the discovery of Iraqi documents
alleging UN officials and others profited from the oil sales.
Charges of misconduct 1st appeared in Jan in an Iraqi newspaper, Al
Mada, which ran a list of 270 former Iraqi Cabinet members, diplomats,
company officials and journalists suspected of profiting from the
program by making private deals with Saddam Hussein's govt.
In Mar, an official from the General Accounting Office, the
investigative arm of Congress, told a subcommittee of the US House of
Representatives that Saddam Hussein personally made $10.1 bn between
1997 and 2002, $4.4 bn on oil sold through the program and the rest
through smuggling.
The UN set up the program to provide food and medical supplies to the
Iraqi people, who were suffering from y of sanctions imposed by the
Sec Council in 1990 after Iraq invaded Kuwait.
The program began in Dec 1996 and allowed Iraq to sell some of its oil
and use the funds to buy humanitarian supplies for its people.
The program was shut down in Nov 2003, by which time it had brought some
$38 bn in humanitarian supplies into the country, according to UN figures.

Crude rises 48 cents to $38.11/bbl
NY (Houston Chronicle).  Oil prices rose today after the shutdown of a
gasoline-making unit at a key refinery threatened to tighten supplies in
the early days of the US summer driving season.
The fuel production glitch added to concerns over stalled Iraqi oil
exports after sabotage attacks last wk and a Norwegian oil workers strike.
US benchmark crude ended at $38.11/bbl, up 48 cents, or 1.2%,
and London Brent was up 48 cents at $35.60. Both US and London crude
fell more than $1 on Mon.
US prices have slipped from early Jun 21-y highs above $42, although
prices are still up more than 16% in the y to date.
The news of an outage at the ConocoPhillips refinery in Lake Charles,
La. overcame bearish concerns that US petroleum supply will show a
rise when the US govt issues weekly data Wed.
Tue afternoon, sources said the Lake Charles plant was forced to delay
the restart of a shut gasoline-making unit that has taken gasoline out of
the strained US supply chain. There was no immediate word when the
plant would return to service, which re-ignited concerns over gasoline
supplies during the summer US driving season.
Gasoline pump prices have fallen in the past 4 wk by 13 cents a gallon to
about $1.94 a gallon, the US govt said on Mon. Still, at $1.94 a
gallon for self-service regular gasoline, prices are 44 cents higher
than this time last y.
US gasoline futures traded in NY rose 3.74 cents a gallon, or 3.2%,
today. This erased a similar loss shown on Mon.
The US govts Energy Info Admin releases weekly stocks data on Wed. An
average of analysts forecasts shows expectations of a
1-mn-bbl build in crude supplies, along with a gasoline
stocks rise of about 1.5 mn bbl, a Reuters survey found.
Iraqs efforts to ramp up oil exports following a six-day stoppage
faltered after it halted crude loadings from a small Gulf terminal.
Officials hoped to return S exports to normal levels of around 1.8 mn
bpd within a few days after resuming some exports on Mon following
repairs to sabotaged pipelines.
But loadings at the Khor al-Amaya terminal were brought to a halt
again almost immediately.
"Stability in Iraq holds the key to oil price movements over the rest of
the year. The expectation has shifted from one of growing Iraqi
production to concerns about maintaining supplies at recent levels,"
said London-based Centre for Global Energy Studies in a report.
"If Iraqi production is kept relatively steady over the coming months
with occasional, but temporary, sabotage slowing exports, we can
expect prices to ease slowly from their recent heights."
In Norway, where oil workers striking over pension rights and
temporary labour, a 5-day protest has cut out 375,000 bpd of output.
Another 80,000 bpd of supply is likely to close from late Wed,
according to field operators, if the strike continues that long.
Most oil price pundits expect prices to moderate from current 21-y
peaks next y and to fall further by 2010, assuaging fears that crude is in a
new high-price era, a Reuters poll found on Tue.
A survey of 14 analysts and consultants forecasts that US crude prices
will slip to $30.12/bbl next y, down 18% from a $36.77 average so far in
2004, on course to be the highest level since 1980.
8 analysts with projections for 2010 on average forecast US crude at
$26.81/bbl, down from a mean of $29.22 so far this decade, though a
marked increase on the post-1990 average of $22.68.

Wall St ready for interest rate rise
US market frets over interest rate decision.
NY/Sydney.  The holding pattern is becoming entrenched on Wall Street.
There has been little overall movement in American stock prices as
investors count down to next wk's decision on interest rates by the US
Fed Reserve.
In what is expected to be the 1st adjustment in 4 y, the market is
ready for a lift of 1/4 of a%age point in the fed funds rate.
Again, the transition of power in Iraq next wk is also subduing
trading activity.
In the latest session, prices on the NY Stock Exchange have made small gains.
JDS Uniphase Corporation has attracted attention after announcing a
significant investment in fibre optics.
But Wal-Mart Stores has been a drag on the market as it becomes
embroiled in a class action alleging discrimination against female staff.
The DJIA has closed 24-points higher at 10,395.
The high-tech Nasdaq composite index has added 20-points to 1,994.
There has been another decline on the Brit share market.
Mobile phone giant Vodafone has shed more than 2% in value amid
worries about price competition and the possibility one of its key
European executives might resign.
UK banking stocks have also been weaker.
London's FT-100 index is down 34-points at 4,469.
The Aussie market yesterday pulled back from the previous session's
all-time highs.
News Corporation and BHP Billiton were among the heavyweights leading
the market lower.
Telstra shares consolidated at their new higher level, slipping just
two-cents to $5 after Mon's nr 5% surge on the back of its capital
management plans.
The All Ords ended the day 13.5-points behind at 3,534.
There has again been little overall movement in the value of the AUD.
At 7.30 am the local currency was being quoted at 68.76 US cents, up
1/6 of a cent from yesterday's local close.
On the cross-rates, it is at 0.5674 euros; 74.97 Japanese yen; 37.75
pence sterling; and against the NZ dollar it is at 1.094.
The gold price is sitting at $US395.40/oz.
West Texas crude oil has risen to around $US38.11/bbl.

Tourist boat capsizes in China
Beijing (AFP).  One person is dead and another 43 are missing and
feared dead after a tourist boat capsized in strong winds on the lower
reaches of China's Yellow River, state media and local officials said.
The Mingzhu Number 2 was carrying a group of Chinese sightseers when it
sank during a rainstorm in Xiaolangdi Reservoir in Henan province
around 8.00 pm tossing 69 people into the water.
By daybreak, 43 people were still missing.
"There were 69 people in the boat at the time," Jiyuan municipality
press officer Zhang Linshan said.
"Since it happened they have rescued 26 people among which one died in
hospital. There are still 43 missing.
"Where the boat sank, the water is more than 40 metres deep and there is
not much hope that they will survive."
Xinhua news agency said that at the time of the accident the wind was
blowing a force 7 gale while a silt-washing operation had sent a huge
amount of water rushing down from the reservoir, churning sediment in
the river's lower reaches.
The tourists were all staff members of Xinghua Fine Chemical Plant in
nearby Kaifeng city.
Following the accident, the provincial tourism Admin issued an
emergency notice banning visits to the reservoir during the
silt-washing operation, Xinhua said.

"Fahrenheit 9/11" R rating appeal fails
LA (VNU).  Distributors for Michael Moore's anti-Bush documentary
Fahrenheit 9/11 have failed to overturn an R rating for the film but
would release it in more than 850 theatres this wk amid what appears to be
growing audience interest.
The Motion Picture Association of America, which rates movies based on
criteria such as violence and language, initially issued the R
classification that bars people 17-years of age and under from seeing
the film without a parent or guardian.
Distributors Lions Gate Films and IFC Films appealed the ruling,
arguing that the rating should be PG-13.
That rating allows teenagers to see the film but suggests they be
accompanied by an adult.
"The images in the film are no more disturbing than what we have been
seeing and, frankly, should be seeing on network news since the
Vietnam war," said Tom Ortenberg, president of Lions Gate Films.
"It's perfectly appropriate for 15- and 16-yos who are going to be
asked to fight in this war, or the next war, to see what war is really
like."  Fahrenheit 9/11 is filled with violent images from the war in
Iraq, including burned and charred bodies of victims, severely wounded
soldiers and citizens, and injured women and children.
The MPAA does not disclose the reasons for giving a particular film
one rating or another.
While the R rating could limit the size of the audience, the appetite
among potential moviegoers does not seem be waning in the days leading up to
the Fri's nationwide release.
Mr Ortenberg says Lions Gate and IFC have managed to put the film in
over 850 theatres, surpassing the 801 theatres that debuted Tupac:
Resurrection, the 2003 documentary about the life of the murdered rap
music star.
Highlighting public interest, Fahrenheit 9/11 has become the
most-searched documentary on Web site Yahoo!
Its promotional clip is among the 5 top-screened film trailers on
Yahoo! Movies, just behind next wk's Spider-Man 2.
The film will debut in AUS at the MEL Internat'l Film Festival [!!!!] on
Jul 15.

Wolfowitz foreshadows years of US occupation
Washington (VOA).  Deputy Def Sec Paul Wolfowitz says it's "entirely
possible" that US troops could stay in Iraq for y to come.
In testimony Tue before the House Armed Services committee,
Mr. Wolfowitz rejected assertions that the military is "stuck" in its
Iraq mission. But he said he did not know how long it would take
before Iraqi troops can provide adequate security for the country.
Mr Wolfowitz said when the Iraqi govt assumes responsibility for
security with some US help, the coalition's mission in the country can be
considered a success.
The deputy secretary recently returned from a trip to Baghdad where he
discussed security issues and political and economic progress with
members of the interim Iraqi govt.

Hostage executed as soon as gov't rejected Iraq deployment demands
Family of Kim Sun-il wails after learning that Kim was killed by Iraqi
insurgents on Wed morning.
Seoul (Chosunilbo).  It has been learned that Kim Sun-il was executed as
soon as the Korean govt refused to accept unacceptable demands that it
cancel plans to send troops to Iraq.
A source familiar with events on the ground in Iraq said, "I know that
the group that kidnapped Kim presented certain conditions to start
negotiations to free the hostage... I know this wasn't a question of
money, but the cancellation of plans to send troops to Iraq as
initially presented on al-Jazeera TV."
The source said, "The kidnappers have been, from the very beginning, a
political organisation uninterested in money, and I know that they
hung preconditions on the talks that didn't involve money, but said
that if the Korean govt talks about withdrawing plans to send troops,
negotiations could begin... These were conditions the Korean govt
could not accept, and accordingly, as soon as it appeared negotiations
would go nowhere, the group made an extreme choice."
Supporting this presumption, a core Korean embassy official, when
asked about the hostage talks, said Tue evening local time [1.00 am
Wed, Korea time] that, "The situation is very bad."
Another knowledgeable source said, "I know the group that kidnapped
Kim was not a normal resistance group, but a specialised group
assembled for a political purpose...  Accordingly, I know this was not as
issue of money, but as was first presented on al-Jazeera, the
purpose was political, as were the demands."
The source said he knew that the group said through a 3rd person on
Tue that only if the Korean govt made a statement related to the
cancellation of plans to send troops to Iraq could negotiations to
release Kim begin.
He said the group gave a deadline of 7.00 pm Tue [local time] for
the Korean govt to announce its position on this matter.
Related to this, the Korean Embassy in Baghdad plans to make an
announcement on this matter once the Foreign Ministry makes an
official announcement.

Hungarian leader pledges to keep troops in Iraq
Washington (Reuters).  Hungary will keep its troops in Iraq despite
violence there targeting allies of the US, Hungarian Prime Min Peter
Medgyessy said on Tue.
Speaking to reporters after a meeting in the Oval Office with Pres
Bush, Medgyessy told reporters: "I could confirm to the president that
Hungary's commitment to the presence in Iraq is unchanged. And we want to
promote stabilisation."
"Our troops will not be removed before the term," Medgyessy added.
He spoke after the beheading in Iraq of a S Korean businessman who had
been held hostage by militants. S Korea has troops in Iraq and has
pledged to increase its deployment by 3,000.
Medgyessy also said he thought there was openness within Europe to an
agreement among NATO members to help train Iraqi security forces. Bush
departs on Fri for a trip to Ireland that will also take him to
Istanbul for the NATO summit.
"I can see that there's going to be an honest exchange of views about
this in Istanbul," Medgyessy said. "What the final outcome will be I
cannot predict. "Nevertheless, I can see that Europe is very much open to
such a dialogue today."

Key US allies extend Iraq troop deployments
Washington (AFP/Reuters).  Key allies of the US in Iraq -- Poland,
Italy, the Netherlands and Hungary -- have extended their deployment of
troops until the end of the year.
The US has asked other nations to keep their troops in Iraq after the
US-led coalition hands over power to an interim Iraqi govt on Jun 30
amid continued violence.
The commitments come after the beheading of a S Korean hostage by
Muslim militants in Iraq show had demanded troop withdrawal.
South Korea vowed to go ahead with plans to deploy 3,000 more troops,
adding the 670 already in Iraq.
The US-led multinat'l force in Iraq numbers around 160,000 troops.
Polish Defence Min Jerzy Szmajdzinski has announced that Poland would
extend its mandate in Iraq from Jun 30 to Dec 31, 2004.
An immediate withdrawal of internat'l forces "would create a security
vacuum and put into question the stabilisation process by provoking
chaos in Iraq and the region," Mr Szmajdzinski said.
The Polish Govt was planning to maintain up to 2,500 Polish troops in
Iraq until the end of Dec, while significantly reducing numbers in
2005, "upon the wishes of Iraqi authorities," he added.
Poland leads a multinat'l force of 6,200 men in a majority Shiite area
S of Baghdad and is a staunch ally of the US in its occupation of Iraq.
6 Polish soldiers have died in Iraq, according to the US Dept of Defence.
The Italian Govt has also extended the country's 3,000 troops deployed in
Iraq until the end of the year, according to a statement issued
following a cabinet meeting.
The troops' mandate has been extended by Govt decree until Dec 31, the
statement said.
Prime Min Silvio Berlusconi said during a visit by US Pres George W
Bush early this m that Italian troops would "remain in Iraq for as
long as [their presence] will be useful to strengthen democracy, for as
long as the Iraqi govt requests".
The Dutch parliament has overwhelmingly backed govt plans to keep some
1,300 troops in Iraq until Mar 2005, Dutch media reported.
Only a handful of Green and leftist MPs opposed the proposal put
forward by Prime Min Jan Peter Balkenende's centre-right govt, news
agency ANP said.
While polls indicate many Dutch oppose keeping troops in Iraq, little
public opp'n has emerged since Mr Balkenende's 3-party coalition
said it intended to extend the mandate earlier this m.
After Spain's new Socialist govt, elected 3 days after the Mar 11
Madrid train bombings, announced it was pulling its troops out of
Iraq, Dutch coalition parties said withdrawing Dutch troops too would be
tantamount to caving in to guerrilla attacks.
Hungary will also keep its troops in Iraq, Hungarian PM Peter
Medgyessy said.
Speaking to reporters after a meeting in the Oval Office with Pres
Bush, Mr Medgyessy told reporters: "I could confirm to the Pres that
Hungary's commitment to the presence in Iraq is unchanged. And we want to
promote stabilisation."
"Our troops will not be removed before the term," Mr Medgyessy added.
The US will hand over power to Iraq on Jun 30.

Support to keep troops in Iraq rising: poll
Canberra.  A poll shows the Fed Govt is gaining support for its policy to
keep the Aussie troops in Iraq.  Half of the respondents to the
Newspoll published in the The Australian say the ALP's policy to bring the
troops home by Christmas could damage AUS's alliance with the US.
48% think the troops should remain there until at
least the 2nd half of next y, while 45% support Labor's Christmas
deadline and 8% were undecided.  A poll conducted in May found 47%
were in favour of Labor's policy of bringing the troops home from Iraq by
Christmas, with 45% against.

S Korea to deploy troops despite beheading
S Korean civilian has been beheaded.
Seoul (Reuters).  S Korea has condemned the beheading of a S
Korean hostage by Muslim militants in Iraq as an "inhumane act of
terror" and vowed to go ahead with plans to deploy 3,000 more troops to
the country.
South Korean Pres Roh Moo-hyun has expressed sorrow over the killing of a
S Korean hostage in Iraq but said his country would still send
more troops there.
In unusually brief televised remarks, Mr Roh told the country South
Korea would deal resolutely with terrorism.
"We strongly condemn terrorism and we will sternly combat it in
cooperation with the internat'l community," Mr Roh said.
"I have repeatedly stressed that the dispatch of troops is not to
engage in hostile activities against Iraq and other Arab countries but to
help reconstruction and reconciliation."
In the S port city of Pusan, the parents of 33-yo Kim Sun-Il sat
cross-legged and stunned in their modest backstreet house as relatives
and neighbours sought to console a daughter wailing and thrashing
around in grief.
"The Govt strongly condemns the killing of Kim Sun-Il by a terrorist
group in Iraq as an inhumane act of terror," said the Nat'l Sec
Council that advises Pres Roh Moo-hyun after an emergency night
meeting to discuss a crisis that could magnify domestic opp'n to the
troop deployment.
South Korea has had about 670 military medics and engineers in
southern Iraq since May last y.
The militants had demanded Seoul withdraw them and drop plans to send
3,000 more troops to help rebuild a Kurdish region in N Iraq.
"Our Govt's basic spirit and position has not changed," Foreign Ministry
rep Shin Bong-kil told reporters, reading from the council statement.
"We confirm that again because our troop deployment is for
reconstruction and humanitarian aid support for Iraq."
That explanation, repeatedly given by Govt officials, had not
impressed the militants.
One of the militants said on the video tape aired on Arabic television
station Al Jazeera: "Enough lies. Your army is not here for the sake of
Iraqis but for the sake of cursed America."
* Tough but crucial
The Nat'l Sec Council said it would strengthen safety measures to
prevent similar incidents and was seeking the early withdrawal of all
non-essential S Korean civilian residents.
The Govt has already said about 30 businessman will leave.
Kim had been in Iraq for about a y working as an Arabic translator for a
small trading firm that supplies goods to the US military.
The Govt said US soldiers found Kim's body 5 days after he was
seized in Fallujah, 50 km W of Baghdad.
Mr Shin said the S Korean embassy in Iraq reported to the Govt in
Seoul soon afterwards and later confirmed the body was Kim's after
receiving an e-mailed photograph from S Korea.
There has been vocal opp'n to the deployment plan in S Korea but Roh
has argued it was a tough but crucial step to support the United
States, an ally with 37,500 troops in S Korea to deter the North.
There was no immediate comment from Mr Roh, a former labour lawyer who
was reinstated last m after the Constitutional Court overturned a
Mar impeachment vote.
Some members of Parliament have pledged to put forward a resolution to
overturn the deployment plan.
But they are unlikely to succeed because most of the ruling party,
which has a majority in the chamber since an Apr general election, and
the conservative opp'n support the deployment.
Responding to the beheading, US Pres George W Bush urged Mr Roh not to be
intimidated by the militants.
"I haven't had a chance to speak to Pres Roh yet," Mr Bush told reporters.
"But I would hope that Pres Roh would understand that the free world
cannot be intimidated by the brutal action of these barbaric people."

Texans killed in Iraq since war began
Houston (AP).  Here's a list of Texans killed in Iraq since the war
against Iraq began Mar 20, 2003, according to the US Dept of
Defense:
2004:
Jun 21: Lance Cpl Pedro Contreras, 27, of Harris County, was killed
  by hostile fire in Al Anbar Province, W of Baghdad.  Contreras was
  assigned to 2nd Battalion, 4th Marine Regiment, 1st Marine Division
  of the 1st Marine Expeditionary Force based in Camp Pendleton, Calif.
May 15: Staff Sgt Rene Ledesma, 34, of Abilene died in Baghdad when
  an improvised explosive device exploded nr his Bradley Fighting
  Vehicle. Ledesma was assigned to the Army's 1st Squadron, 7th
  Calvary Regiment, 1st Calvary Division, Fort Hood, Texas.
May 8: Spc Isela Rubalcava, 25, of El Paso died in Mosul when a
  mortar round hit nr her. Rubalcava was assigned to the 296th Combat
  Support Battalion, 3rd Brigade, 2ID (Stryker Brigade Combat Team),
  out of Fort Lewis, Wash.
Apr 19: Lance Cpl Aaron C Austin, 21, of Sunray, died from hostile
  fire in the Al Anbar Province in W Iraq. Austin was assigned to the
  2nd Battalion, 1st Marine Regiment, 1st Marine Division, I Marine
  Expeditionary Force at Camp Pendleton, Calif.
Apr 17: Lance Cpl Ruben Valdez, Jr, 21, of SD, was killed with his
  fellow Marines by enemy action in Al Anbar Province.  He was
  assigned to the 3rd Battalion, 7th Marine Regiment, 1st Marine
  Division, I Marine Expeditionary Force, at Twentynine Palms, Calif.
Apr 17: Army PFC Clayton W Henson, 20, of Stanton, was killed when
  his convoy was ambushed in Dwaniyan. He was assigned to the Army's
  1st Squadron, 2nd Armored Calvary Regiment, in Fort Polk, La.
Apr 14: Sgt Christopher Ramirez, 34, of McAllen, died in Al Anbar
  Province from injuries sustained in combat.
Apr 11: Chief Warrant Officer Wesley C Fortenberry, 38, of Woodville,
  died in Baghdad when his helicopter was shot down.
Apr 11: Marine Cpl Daniel R Amaya, 22, Odessa, Texas, died from
  hostile fire in Anbar province; assigned to the 3rd Battalion, 4th
  Marine Regiment, 1st Marine Division, I Marine Expeditionary Force,
  Twentynine Palms, Calif.
Apr 11: Army Chief Warrant Officer Wesley C Fortenberry, 38,
  Woodville, Texas; one of 2 soldiers who died when their helicopter
  was shot down; assigned to the 1st Battalion, 227th Aviation
  Regiment, 1st Cavalry Division, Fort Hood, Texas.
Apr 10: Army Spc Adolf C Carballo, 20, Houston; died when struck by
  shrapnel in Baghdad; assigned to the 1st Battalion, 21st Field
  Artillery Regiment, 1st Cavalry Division, Fort Hood, Texas.
Apr 10: Sgt William C Eckhart, 25, of Rocksprings, died in an
  explosion in Baqubah.
Apr 9: Marine Cpl Matthew E Matula, 20, Spicewood, Texas; died in
  fighting; assigned to 2nd Battalion, 1st Marines, 1st Marine
  Division, I Marine Expeditionary Force, Camp Pendleton, Calif.
Apr 9: Marine Lance Cpl Elias Torrez III, 21, Veribest, Texas; died
  in fighting; assigned to 3rd Battalion, 7th Marines, 1st Marine
  Division, I Marine Expeditionary Force, Twentynine Palms, Calif.
Apr 8: Marine Lance Cpl Michael Wafford, 20, of Spring, was killed
  after a group of Marines were fired on W of Iraq.
Apr 6: Army Sgt Gerardo Moreno, 23, who had lived in Winters and
  Terrell and was assigned to Fort Hood, died in a RPG attack nr
  Ashula, Iraq.
Apr 5: Army Spc Scott Q Larson Jr, 22, of Houston, died when his
  convoy was ambushed in Baghdad.
Apr 5: Lance Cpl Shane L Goldman, 19, of Orange, died due to
  injuries received from hostile fire in Al Anbar Province, Iraq.
Apr 3: Army Spc Robert Arsiaga, 25, of Greenwood died when his unit's
  convoy was attacked by Shiited militiamen in the Baghdad
  neighbourhood of Sadr City.
Apr 3: Army Spc Israel Garza, 25, of Lubbock died when his unit's
  convoy was attacked by Shiite militiamen in the Baghdad neighbourhood
  of Sadr City.
Apr 1: Marine PFC Dustin M Sekula, 18, of Edinburg, died Apr 1 of
  injuries sustained from enemy fire in Al Anbar Province, Iraq.
Mar 31: Army Spc Michael Greg Karr Jr, 23, of Garland, was killed
  when an explosive detonated under the M-113 armoured personnel carrier
  he was riding in N of Fallujah, Iraq.
Mar 31: Army 1st Lt Doyle M Hufstedler III, 25, of Abilene, was
  killed when an explosive detonated under the M-113 armoured personnel
  carrier he was riding in N of Fallujah, Iraq.
Mar 26: Marine PFC Leroy Sandoval Jr, 21, of Pasadena died of a
  gunshot wound sustained during a battle with Iraqi insurgents in
  Fallujah, Iraq.
Mar 25: Cpl James A Casper, 20, of Coolidge died Mar 25 in a
  non-combat related incident at Al Asad, Iraq.
Mar 17: Army Spc Tracy L Laramore, 30, of Greenville died in Baji,
  Iraq. He drowned after the Bradley fighting vehicle in which he was
  riding overturned into a river.
Mar 18: PFC Ricky A Morris Jr, 20, of Lubbock died as a result of
  enemy action in Al Qaim, Iraq.
Mar 19: PFC Jason C Ludlam, 22, of Arlington died Mar 19 in
  Ba'qubah, Iraq, when he was electrocuted while laying telephone wires.
Mar 11: Staff Sgt Joe L Dunigan Jr, 37, of Belton died in
  Fallujah, Iraq, when his vehicle was hit by an improvised explosive
  device.
Jan. 24: Army PFC Ervin Dervishi, 21, of Fort Worth, died when a RPG
  hit the Bradley Fighting Vehicle in which he was travelling in Baji, Iraq.
Jan. 21: Army PFC James Parker, 20, of Bryan, died when a mortar
  round exploded nr him at his compound in Baqubah.
Jan. 18: Army Master Sgt Kelly L Hornbeck, 36, of Fort Worth, died
  at the 28th Combat Support Hospital of wounds received Jan. 16 when
  an explosive hit his vehicle S of Samarra.
Jan. 17: Spc Larry E Polley Jr, 20, of Center, died when his Bradley
  Fighting Vehicle struck a roadside bomb while his unit was
  conducting a surveillance sweep nr the town of Taji, N of Baghdad.
Jan. 16: Army Staff Sgt Roland L Castro, 26, of San Antonio, died of
  a non-hostile gunshot wound in Camp Cedar II.
2003:
Dec 28: Army Capt Ernesto M Blanco, 28, of San Antonio, died in
  Qaryat Ash Shababi when an improvised explosion hit his vehicle.
Dec 28: Pte Rey D Cuervo, 24, of Laguna Vista, was killed when an
  improvised explosive device hit his mounted patrol in Baghdad.
Dec 22: PFC Stuart Moore, 21, of Livingston, was killed when an
  improvised explosive device struck his convoy in Baghdad.
Dec 7: PFC Ray J Hutchison, 20, of League City, was killed when his
  vehicle hit an improvised explosive device on his way back from patrol.
Nov 28: Army Sgt Ariel Rico, 25, of El Paso, was killed in action nr
  Mosul when 4 mortar shells hit his base.
Nov 8: Staff Sgt Gary L Collins, 32, of Hardin, killed while riding
  in a Bradley fighting vehicle that hit an improvised explosive device.
Nov 2: Army Sgt Keelan Moss, 23, of Houston, killed nr Fallujah when
  a helicopter was shot down by an anti-aircraft missile.
Oct 13: Army PFC Stephen E Wyatt, 19, of Kilgore, killed in action
  in Balad when his convoy was hit by an explosive and gunfire.
Oct 1: Army PFC Analaura Esparaza Gutierrez, 21, of Houston and
  based at Fort Hood, killed in action nr Tikrit when a convoy was hit
  by an improvised explosive device and RPGs.
Sep 18: Army Spc Richard Arriaga, 20, of Ganado and based at Fort
  Hood, killed in action nr Tikrit. He was one of 3 soldiers killed in
  a small-arms and RPG ambush on their Humvee.
Sep 11: Army Sgt Henry Ybarra, III, 32, of Austin, killed in an
  accident in Balad, Iraq. He died from injuries sustained when he was
  changing a tire on his military truck and the tire exploded.
Jul 26: Army Sgt Daniel K Methvin, 22, of Belton and based at Fort
  Hood, killed in action in Baghdad when a grenade was thrown from a
  window of an Iraqi civilian hospital.
Jul 24: Army Staff Sgt Hector R Perez, 40, of Corpus Christi,
  killed in action when his military convoy came under fire on the way
  toward Qayyarah, 185 miles N of Baghdad.
Jul 19: Army 2nd Lt Jonathan D Rozier, 25, of Katy, killed in action
  in Baghdad when his unit was fired on by rocket-propelled grenades
  and small-arms fire while providing security at a municipal building.
Jul 11: Army Spc Christian C Schulz, 20, of Colleyville and based
  in Fort Hood, killed in non-combat related incident in Baqubah.
Jul 9: Army Sgt Melissa Valles, 26, of Eagle Pass, killed in
  non-combat related incident in Balad.
Jun 27: Army Cpl Tomas Sotelo, Jr, 22, of Houston, killed in action
  in Baghdad. His convoy was hit by a RPG.
Jun 17: Army Pte Robert L Frantz, 19, of San Antonio, killed in
  action in Baghdad. He was on guard duty when a local resident threw
  a grenade over the wall.
Jun 16: Army Spc Joseph D Suell, 24, of Lufkin, killed in a
  non-combat related incident in Todjie.
May 28: Army Spc Jose A Perez, III, 22, of SD, killed in action in
  Taji, Iraq. His convoy was ambushed.
Apr 28: Army 1st Sgt Joe J Garza, 43, of Robstown, killed in an
  accident in Baghdad when his Humvee swerved to avoid a civilian
  vehicle. He fell out and was hit by a civilian vehicle.
Apr 22: Marine Chief Warrant Officer Andrew Todd Arnold, 30, of
  Spring, killed in an accident at a firing range nr Kut. He was among
  3 Marines killed when a RPG launcher they were firing malfunctioned.
Apr 7: Air Force Capt Eric B Das, 30, of Amarillo, killed in action
  when the F-15E he was flying went down during a combat mission.
Apr 7: Marine Cpl Jesus Martin Antonio Medellin, 21, of Fort Worth,
  killed in action in Central Iraq. He was riding in an Amphibious
  Assault Vehicle that was hit by enemy artillery.
Apr 7: Army PFC Anthony S Miller, 19, of San Antonio, killed in action.
Apr 3: Marine PFC Chad E Bales, 20, of Coahoma, killed in an
  accident nr Ash Shahin. He was involved in a non-hostile vehicle
  accident during combat operations.
Apr 2: Army Master Sgt George A Fernandez, 36, of El Paso, killed in
  action in N Iraq.
Apr 2: Army Chief Warrant Officer Scott Jamar, 32, of Granbury, killed
  in a helicopter accident in Central Iraq. He was in an UH-60 Black
  Hawk helicopter that crashed.
Mar 23: Army Sgt Edward J Anguiano, 24, of Brownsville, killed in
  action nr Nasiriyah, Iraq. He was in a convoy on Iraqi Highway 7
  that was ambushed pre-dawn after their convoy made a wrong turn.
Mar 23: Army Pte Ruben Estrella-Soto, 18, of El Paso and based at
  Fort Bliss, killed in action nr Nasiriyah, Iraq. He was in a convoy
  on Iraqi Highway 7 that was ambushed pre-dawn after their convoy
  made a wrong turn.
Mar 23: Army Spc James Kiehl, 22, of Comfort and based at Fort
  Bliss, killed in action nr Nasiriyah, Iraq. He was in a convoy on
  Iraqi Highway 7 that was ambushed pre-dawn after their convoy made a
  wrong turn.
Mar 23: Army Chief Warrant Officer Johnny Villareal Mata, 35, of El
  Paso and based at Fort Bliss, killed in action nr Nasiriyah,
  Iraq. He was in a convoy on Iraqi Highway 7 that was ambushed
  pre-dawn after their convoy made a wrong turn.
Mar 20: Marine Cpl Brian Matthew Kennedy, 25, of Houston, killed in
  a CH-46E helicopter accident in Kuwait.

Howard hosts anti-terrorism summit for business
Canberra.  Aussie business executives have gathered at Parliament
House in CBR to receive terrorism briefings from ASIO and the Aussie
Fed Police.  The Prime Min launched the informal summit and a new
document titled "Protecting AUS Against Terrorism" outlining the
Govt's anti-terrorism initiatives.  John Howard says the Sep 11
terrorist attacks cost the United States Govt $US75 bn.  He says
AUS is not immune from terrorists and businesses must be prepared.
"Security and taking the necessary precautions is a cost of doing
business because if there is an attack, if there is damage done, if
there is a security breach which is serious enough, then that effects
the bottom line," he said.  "It effects the business's profits so
therefore it effects the cost of doing business."

PM says prepare for the worst
Canberra (AAP).  PM John Howard urged businesses to work hard to protect their
infrastructure from terrorist attacks, warning that another Madrid-style
bombing was likely somewhere around the world in coming months.
Mr Howard told snr officers from 40 of AUS's biggest companies,
including Telstra, Qantas, oil companies and banks, that the price of
protection from terror attacks was a cost that had to be factored into
operating plans.
The Sep 11 attacks on the US had cost the American economy $US75 bn
[$A109.35 bn] since 2001, he said at the meeting in Parliament House.
"There is a cost for all of us," Mr Howard said.
"We live in a world now where taking measures to improve security and
fight terrorism is a cost of doing business.
"But overall the price, what we do pay in those economic terms, has to be
put against the extraordinarily high level of disruption and
dislocation to our economy, as well as to our way of life, let alone of
course the cost in loss of life that might occur if a terrorist
attack were to take place in this country."
Mr Howard said he was often asked if a terrorist attack was likely in AUS.
"I say God forbid it should occur, but I can't give any guarantees
that it won't happen in this country, and any nation ... that believes
it's immune, in some way is going to slip through the net, going to go by
unnoticed, is frankly deluding itself," he said.
Any weakness or equivocation on the part of the govt would only
encourage terrorists, Mr Howard said.
"We've seen that sadly demonstrated over the past few months, we saw it
demonstrated in relation to the events in Spain and we will see it
demonstrated, I'm sorry to say, in the m ahead," Mr Howard said.
The meeting will continue behind closed doors.

US hands AFP crime proceeds payment
Canberra.  The US has today handed over more than $2 mn to the Aussie
Fed Police from the proceeds of crime.  Justice Min Chris Ellison says
the 2 countries have recently cooperated to crack down on a
large-scale fraud and a drug operation.  "What it does demonstrate is
that the proceeds of crime is an essential part of our fight against
transitional and organised crime," he said.  "Of course the benefit of
this is that these funds can be channelled into crime fighting in AUS
and of course drug rehabilitation."

US says terror incidents rising
[Uh, oh! Whitehouse still apologising for another huge intel bungle].
Washington (AP).  Correcting an inaccurate report, the US State Dept
announced that acts of terror worldwide increased slightly last y and
the number of people wounded rose dramatically.
The dept also reported a decline in the number of people killed -- to
625 from 725 during 2002. But in Apr, the dept reported 307 people had
been killed last y -- a much bigger decline.
The findings had been used by snr Bush Admin officials to bolster Pres
George W Bush's claim of success in countering terrorism.
Initially, 190 acts of terror were reported in 2003, a slight decrease
from the 198 attacks reported for 2002. Today, the State Dept said
there were 208 acts of terror last y, a slight increase from 2002.
35 US citizens died in internat'l terror attacks last y. The deadliest
incident was a suicide bombing in Riyadh, Saudi Arabia, in May in
which 9 Americans were killed.
The report did not include US troops killed or wounded in Iraq in its
report "because they were directed at combatants." Attacks against
civilians and unarmed military personnel were included.
A total of 3,646 people were wounded worldwide in terror attacks last
y, the report said. This represented a sharp increase from the 2,013
wounded in 2002.
In Apr, the dept had said that 1,593 people were wounded in 2003, a
sharp decline from the prev y.
Secretary of State Colin Powell prepared to make a statement later today.
The initial report was issued on Apr 28. On Jun 10, the State Dept
acknowledged the findings were inaccurate. Powell attributed the
errors partly to a new data system and said there was no attempt to
manipulate the figures to buttress Bush's argument.
When the report was issued, snr Admin officials claimed that it showed
Bush's counter-terror campaign was a success.
State Dept rep Richard Boucher said the report was based "on the facts as we
had them at the time. The facts that we had were wrong."
The Apr report said attacks had declined last year to 190, down from
198 in 2002 and 346 in 2001. The 2003 figure would have been the
lowest level in 34 y and a 45% drop since 2001, Bush's 1st y as
president. The dept is now working to determine the correct figures.
Democratic Representative Henry A Waxman had challenged the initial
findings. He said he was pleased that officials "have now recognised
that they have a report that has been inaccurate, and based on the
inaccurate info they tried to take self-serving political credit for
the results that were wrong."
But Representative Rahm Emanuel, also a Democrat, was sharply critical today.

US corrects global terrorism figures
US has admitted its initial figures were wrong.
Washington (ABC, Lisa Millar).  It has been revealed global terrorism
killed 625-people last y, more than double the original figure
released by the Bush Admin.  The US State Dept has admitted its
initial figures were wrong.  The 1st report released 2 m ago was used as
evidence the Bush Admin was winning its campaign against terrorism.
The figures were challenged and the State Dept was forced to admit
they were wrong.  "Events were left out, some were mislabelled," dept
official Cofer Black said.  Secretary of State Colin Powell denies the
figures were deliberately manipulated.  "The report is not designed to
make our efforts looks better or worse or terrorism look better or
worse but to provide the facts to the American people," he said.  The
revised report shows a drop in the number of people killed over last y
but an increase in acts of terror and in the numbers wounded.

Militants decapitate S Korean hostage in Iraq
Baghdad (AFP/CNN/Reuters).  Militants have beheaded a S Korean hostage in
Iraq after Seoul refused their demand to withdraw its troops and
scrap plans to send more.
South Korea confirmed that US troops had found the body of 33-yo Kim
Sun-Il, 5 days after he was seized in Fallujah, 50 km W of Baghdad.
Arabic satellite channel Al Jazeera broadcast footage of 4 heavily
armed men standing over a kneeling Kim, who was dressed in an orange
tunic and with an orange blindfold, mimicking the orange jumpsuits
worn by prisoners in US detention facilities like Guantanamo Bay and
Abu Ghraib.
"We warned you and you ignored [the warning] ... enough lies. Your
army is not here for the sake of Iraqis but for the sake of cursed
America," one of the men said.
A rep for the television network said the tape went on to show one of
the men cutting off Mr Kim's head with a knife.
On Mon, a group led by Jordanian-born militant Abu Musab al Zarqawi
said it was holding Mr Kim and would execute him unless Seoul pulled
out its 670 military medics and engineers in Iraq and cancelled plans to
deploy 3,000 more troops.
South Korea has reaffirmed it will push ahead with its plan to deploy
1000s of troops in Iraq despite the execution.
Foreign Ministry rep Shin Bong-Kil says there will not be any change in
the Govt's position, after a Nat'l Sec Council meeting in Seoul.
The humanitarian deployment will make Seoul the 3rd largest coalition
partner in Iraq, after the US and Brit.
Civic groups in S Korea had held several rallies demanding that Pres
Roh Moo-Hyun bow to the Islamic group's demand.
US officials say Zarqawi's group also beheaded US hostage Nicholas
Berg in Iraq last m and that Zarqawi himself probably wielded the
knife in Berg's killing.
In footage of Mr Berg's decapitation, he was shown wearing an orange tunic.
The captors of Paul Johnson, a US contractor beheaded in Saudi Arabia
last wk by militants linked to Al Qaeda, also dressed him in orange
before they killed him.
Since early Apr, dozens of foreign hostages have been seized in Iraq,
many around Fallujah.
Most have been freed but at least 4 have been killed by their captors.
Mr Kim, an Arabic speaker and evangelical Christian, had worked in
Iraq for a y as a translator for a S Korean firm supplying goods to
the US army.
The S Korean Foreign Ministry has ordered that all S Koreans will be
evacuated from Iraq except for essential personnel.
South Korean Ambassador to the US, Han Sung-Joo, says he believes
coalition forces in Iraq did all they could to find the missing man.
"We did get full help, and we are very appreciative of all the support
and assistance," he said.
"It's just too bad that it didn't succeed in rescuing, or releasing
the victim."

Bush condemns latest beheading
Washington (Kyodo).  US Pres George W Bush has condemned the beheading of a
South Korean man by Iraqi militants as a "brutal action" and said he is
confident that Seoul will send additional troops to Iraq despite
the incident.
"I haven't had a chance to speak to [South Korean] Pres Roh [Moo
Hyun], but I would hope that Pres Roh would understand that the free
world cannot be intimidated by the brutal action of these barbaric
people," Mr Bush told reporters.
"They're trying to shake our will and our confidence," Mr Bush said.
"They're trying to get us to withdraw from the world so that they can
impose their dark vision on people."
The Qatar-based satellite broadcaster Al Jazeera reported that Kim
Sun-Il, the S Korean man taken hostage by a militant group in Iraq,
was beheaded.
South Korean Foreign Affairs and Trade Ministry officials in Soul
later confirmed his execution.
The militant group kidnapped Mr Kim, who worked for a S Korean company
supplying the US military in Iraq, last wk and threatened to behead
him unless S Korea pulled its troops out of Iraq.
The S Korean Govt said last wk that it will send another 3,000 troops in
addition to the 600 already dispatched there.

Brown urges PM to condemn interrogation techniques
Canberra.  Greens leader Bob Brown has called on the PM to condemn
official "interrogation" techniques used by US soldiers at Guantanamo
Bay in Cuba.  The Pentagon has de-classified a number of memos about
interrogation procedures used at the prison camp.  Among them is a
directive signed by US Def Sec Donald Rumsfeld authorising a technique
called "water boarding", in which prisoners are strapped down,
immersed in water, and made to feel as if they are going to drown.
The Bush Admin has denied that any of the memos amounted to approving
mistreatment or torture, but Sen Brown says they breach the Geneva
Convention.  "There's no way AUS can stand by and not react to that," he
said.  "The PM has got to contact the Pres of the US and say AUS
will not stand for that, the ramifications for the rule of law around
the world are too gross."

Bush claimed right to waive anti-torture laws
Rumsfeld approved prisoner threats
Washington (AP/Khaleej Times).  Pres George W Bush claimed the right to
waive anti-torture laws and treaties covering prisoners of war
after the invasion of Afghanistan, and Def Sec Donald Rumsfeld
authorised guards to strip detainees and threaten them with dogs,
according to documents released on Tue.
The documents were handed out at the Whitehouse in an effort to blunt
allegations that the Admin had authorised torture against Al Qaeda
prisoners from Afghanistan and Iraq.
"I have never ordered torture," Bush said. "I will never
order torture. The values of this country are such that torture is not a
part of our soul and our being."
The memos were meant to deal with an election-y headache that followed
revelations about abuses at Abu Ghraib prison in Iraq, but the
documents also brought to light some practices that the Admin decided
had gone too far. The human rights group Amnesty Internat'l revived
its call for the appointment of a special counsel to investigate any
torture and ill-treatment of prisoners in US custody.
The Justice Dept disavowed a memo written in 2002 that appeared to
justify the use of torture in the war on terror. The memo also argued
that the president's wartime powers superseded anti-torture laws
and treaties.
That 50-page document, dated Aug. 1, 2002, will be replaced, Justice
Dept officials said. Whitehouse counsel Alberto Gonzales said that
some legal memos contained "unnecessary and overbroad
discussions" that could be "subject to misinterpretation."
But he added, "The analysis underpinning the president's
decisions stand and are not being reviewed."
A new memo will instead narrowly address the question of proper
interrogation techniques for Al Qaeda and Taliban detainees, the
Justice Dept said.
Bush had outlined his own views in a Feb. 7. 2002, document regarding
treatment of Al Qaeda detainees from Afghanistan. He said the war
against terrorism had ushered in a "new paradigm" and that
terrorist attacks required "new thinking in the law of war."
Still, he said prisoners must be treated humanely and in accordance
with the Geneva Conventions.
"I accept the legal conclusion of the A-G and the Dept of Justice
that I have the authority under the Constitution to suspend Geneva as
between the US and Afghanistan, but I decline to exercise that
authority at this time," the president said in the memo, entitled
"Humane Treatment of Al Qaeda and Taliban Detainees."
Explaining Bush's memo, Gonzales said the US "is fighting "an
enemy that does not fight, attack or plan according to accepted laws of
war -- in particular the Geneva Conventions."
In a separate Pentagon memo, dated Nov 27, 2002, the Defense
Dept's chief lawyer, William J Haynes II, recommended that
Rumsfeld approve the use of 14 interrogation techniques on detainees at
Guantanamo Bay, such as yelling at a prisoner during questioning
and using "stress positions," like standing, for up to 4 hrs.
Haynes also recommended approval of one technique among harsher
methods requested by US military authorities at Guantanamo: use of
"mild, non-injurious physical contact such as grabbing, poking in
the chest with the finger and light pushing."
Among the techniques that Rumsfeld approved on Dec 2, 2002, in
addition to the grabbing, the yelling and the stress positions:
* Use of 20-hr interrogations.
* Removal of all comfort items, including religious items.
* Removal of clothing.
* Using detainees' "individual phobias such as fear of dogs to
  induce stress."
Rumsfeld scribbled a note on Haynes' memo that said, "However, I
stand for 8-10 hr a day. Why is standing limited to 4 hr."
In a Jan. 15, 2003, note, Rumsfeld rescinded his approval of
Haynes' recommendations and said a review would be conducted to
consider legal, policy and operational issues relating to interrogations of
detainees held by the US military in the war on terrorism.
Rumsfeld's decision was prompted at least in part by objections
raised by some military lawyers who felt that the techniques might go
too far, officials said earlier this y.
The review was completed in Apr 2003, and on that basis Rumsfeld
reissued his guidance on Apr 16, 2003. He approved 24 interrogation
techniques, to be used in a manner consistent with the Geneva
Conventions, but said that any use of 4 of those methods would have to be
approved by him in advance: the use of rewards or removal of
privileges; attacking or insulting the ego of a detainee; alternating
the use of friendly and harsh interrogators, and isolation.
The Apr 2003 review said that removing a detainees' clothing would
raise legal issues because it could be construed as degrading, which is
against the internat'l convention on torture. The removal of
clothing, approved by Rumsfeld for use at Guantanamo Bay in late 2002,
was not among the authorised techniques in his revised guidelines
issued in Apr 2003.
At the Justice Dept, snr officials said that the 50-page memo issued to
the Whitehouse on Aug. 1, 2002, would be repudiated and replaced.
The memo, signed by former Assistant A-G Jay Bybee, included lengthy
sections that appeared to justify use of torture in the war on
terrorism and it contended that US personnel could be immune from
prosecution for torture. The memo also argued that the president's
powers as cmdr in chief allow him to override US laws and internat'l
treaties banning torture.
Critics on Capitol Hill and elsewhere have said that memo provided the
legal underpinnings for subsequent abuses of prisoners in Afghanistan
and Iraq.
Reacting to the Whitehouse release, Vermont Sen Patrick Leahy, the snr
Democrat on the Judiciary Committee, accused the Admin of continuing to
withhold info.
"Though this is a self-serving selection, at least it is a
beginning," Leahy said. "But for the Judiciary Committee and the
Senate to find the whole truth, we will need much more cooperation and
extensive hearings."

Rumsfeld approved harsh interrogation
Washington (AFP).  US Def Sec Donald Rumsfeld approved the use of
stress positions, hoods, forced nudity, and dogs to instill fear
during interrogations of prisoners at Guantanamo Bay, Cuba, in Dec
2002, memos reveal.
The techniques, which Rumsfeld rescinded the following m after
complaints from military officers, were eerily reminiscent of some of
the abuses of Iraqi prisoners that surfaced earlier this y at Abu Ghraib.
The techniques were detailed in a series of memos released by the
Whitehouse that tracked exchanges between cmdrs, Rumsfeld and the
Pentagon's general counsel over interrogation techniques to be used on
suspected al-Qaeda and Taliban prisoners held at Guantanamo.
"Let me make very clear the position of my govt and our country. We do
not condone torture. I have never ordered torture. I will never order
torture," Pres George W Bush said shortly before the memos were released.
"The values of this country are such that torture is not a part of our
soul and our being," he insisted at a Whitehouse meeting with
Hungarian premier Peter Medgyessy.
The Hungarian, Bush said, "brought up the Abu Ghraib situation. I
assured him that these soldiers do not represent what Americans think.
And I also assured him that, unlike a society run by a tyrant, the
world will see an open, fair trial for those accused of breaking US
military law."
A review ordered by Rumsfeld concluded in Apr 2003 that the Pentagon
had even broader leeway to conduct interrogations than contained in
army field manuals and recommended a list of 35 techniques, including
those initially approved by the defence secretary.
But in issuing a new authorisation to cmdrs in Guantanamo on Apr 16
after the review, Rumsfeld approved a softer set of 24 techniques,
dropping the harsher techniques that had been initially approved.
The question of how far interrogators could go came up in Oct 2002
when cmdrs at Guantanamo asked for permission to use more aggressive
techniques on a prisoner who was believed to be the 20th hijacker in
the Sep 11 attacks on the US.
Among the techniques requested and subsequently approved by Rumsfeld in
Dec 2002 were:
* "The use of stress positions (like standing) for a maximum of 4 hr";
* "the use of the isolation facility for up to 30 days;"
* "deprivation of light and sensory stimuli;"
* "the use of 20 hr interrogations;"
* "removal of clothing;"
* "using detainee's individual phobias (such as fear of dogs) to
  induce stress;
* "use of mild, non injurious physical contact such as grabbing,
  poling in the chest with the finger and light pushing."
He rejected several other techniques requested, including the use of
"water boarding," in which a wet towel or dripping water is used to
create a sensation of suffocation in a prisoner.
In signing off on the request, Rumsfeld scribbled a note in his own
hand initialled DR: "However, I stand for 8-10 hr a day. Why is
standing limited to 4 hr."
The final interrogation techniques approved by Rumsfeld in Apr 2003,
however, contained none of the harsher techniques initially approved,
except isolation.
He also required advance notice for the use of 4 techniques.
They were: the use of incentives or removal of incentives; "pride and
ego down;" "good cop/bad cop;" and "segregation from the other
detainees," according to an official.

US approved use of dogs on Guantanamo prisoners
Washington (Reuters).  US Defense Secretary Donald Rumsfeld approved
the use of stress positions, hoods, forced nudity, and dogs to instill
fear during interrogations of prisoners at a detention centre in
Guantanamo Bay, Cuba, in Dec 2002, newly released secret documents show.
The White House release of a thick file of newly de-classified papers
tried to demonstrate that Mr Bush and his top aides, in setting policy on
interrogation methods, insisted that detainees at Guantanamo Bay,
Cuba, be treated humanely.
The documents showed Def Sec Donald Rumsfeld rescind many of those wk
later and approve less aggressive techniques in Apr of 2003.
2 Aussies, David Hicks and Mamdouh Habib, have been held in Guantanamo
Bay for more than 2 y.
Treatment of the Guantanamo detainees, including interrogation
methods, has come under scrutiny following a scandal over abuse and
sexual humiliation of Iraqi prisoners by US forces at Abu Ghraib
prison nr Baghdad.
Pres George W Bush said he has never ordered the torture of Iraqi or
Al Qaeda prisoners.
"Let me make very clear the position of my govt and our country:
We do not condone torture. I have never ordered torture. I will never
order torture. The values of this country are such that torture is not a
part of our soul and our being," Mr Bush told reporters at the White House.
Democratic Sen Patrick Leahy of Vermont accused the Whitehouse of
releasing a "self-serving selection" of documents.
"The stonewalling in the prison abuse scandal has been building to a
crisis point," he said.
Mr Rumsfeld originally approved aggressive interrogation tactics at
Guantanamo Bay after military leaders there complained in a memo that
"current guidelines for interrogation procedures at GTMO limit the
ability of interrogators to counter advanced resistance".
The Guantanamo Bay leaders requested permission to use a wet towel and
dripping water to induce "the misperception of suffocation" and the
use of "mild, non-injurious physical contact such as grabbing, poking in
the chest with the finger, and light pushing".
In response, in Dec 2002 Mr Rumsfeld approved tactics such as forcing a
detainee to stand up for up 4 hr, forced isolation for up to 30
days, deprivation of light, use of 20-hr interrogations, removal of
clothing, forced shaving of facial hair, "inducing stress by use of
detainee's fears (eg, dogs)" and use of mild physical contact that did
not cause injury.
A Pentagon legal brief recommending the use of the tactics argued that
the proposed techniques were likely to pass constitutional muster as
long as they were applied "in a good faith effort and not maliciously or
sadistically for the very purpose of causing harm".
"The fed torture statute will not be violated as long as any of the
proposed strategies are not specifically intended to cause severe
physical pain or suffering or prolonged mental harm," the legal brief said.
White House legal counsel Alberto Gonzales played down some of the
documents produced by lawyers as "abstract legal theories" that "do
not reflect the policies the Admin ultimately adopted".
The methods actually used, according to a memo, fell somewhat short of
what Mr Rumsfeld approved, such as 20-hr interrogations and
deprivation of light and forced shaving.
Mr Rumsfeld abruptly rescinded most of the aggressive tactics in a Jan
15, 2003, order and said if any of them were believed needed a request
should be forwarded to him for a decision with a "thorough justification"
and a "detailed plan for the use of such techniques".
Then in Apr 2003, Mr Rumsfeld outlined a new list of interrogation
techniques that permitted significantly increasing the fear level in a
detainee, "sleep adjustment," "changing the diet of a detainee" with no
intended deprivation of food or water, and isolation of detainees.
An Aug 1, 2002, Justice Dept memo detailed how to avoid violating US
and internat'l terror statutes while interrogating prisoners.
White House officials insisted the broad policy was that prisoners
should be treated humanely, but included in the documents was an
active discussion of how far interrogations could go without being
called torture.
"We're going to be aggressive in our interrogations. There's no
question about that," Mr Gonzales said. He insisted that the United
States would not engage in torture and said the Admin uses the
definition of torture provided by Congress as "a specific intent to
inflict severe physical or mental harm or suffering".
The documents outlined previous and current techniques for nearly 600
Al Qaeda and Taliban prisoners now at Guantanamo Bay, most taken in
Afghanistan.
A Feb 7, 2002, memo from Mr Bush to top members of his Admin said Al
Qaeda and Taliban detainees were to be "treated humanely and to the
extent appropriate and consistent with military necessity, in a manner
consistent with the principles" of the Geneva Convention.
Mr Gonzales denied Mr Bush's determination contributed to the abuses at
Abu Ghraib. "We categorically reject any connections," he said.
A top Pentagon lawyer, Daniel Dell'Orto, said it was clear from the
start that the Geneva Convention would apply in Iraq.
He said any abuses at Guantanamo were punished.
He cited an incident in which a female interrogator took off her
blouse, kept her t-shirt on, sat on a detainee's lap "as part of her
interrogation technique" and ran her hands through his hair. She was
suspended from duties for 30 days.

Saddam prison letter says his morale high: "Newsweek"
NY (Reuters).  Former Iraqi president Saddam Hussein says his spirit
and morale are high and asks relatives to "say hello to everyone" in
the only message he has sent to his family since his capture last Dec,
Newsweek magazine has reported.
The message addressed "to my daughter" was delivered to Saddam's
eldest daughter, in Amman, Jordan, after representatives of the
Internat'l Committee of the Red Cross (ICRC) visited him on Feb 21,
Newsweek said, citing one of 20 lawyers retained by the family.
The heavily censored letter was shown to Newsweek by one of the
lawyers, Muhammed al Rushadan, according to an article posted on the
magazine's Website.
The letter, apparently in Saddam's handwriting, reads in part: "In the
name of God the Merciful ... To my small family and my big family,
salaam alekum.  As for my spirit and my morale, they are high, thanks to
greatness of God. And say hello to everyone," the report said.
US military authorities censored 9 of the 14 lines written on a
standard "family message form" provided by the ICRC, Newsweek said.
"Two-thirds of it are blacked out," Mr Rushadan was quoted as saying.
"There are only 17 words you can read, there's not enough to
understand the meaning very well."
Mr Rushadan also produced what the ICRC calls a "capture card".
It was apparently signed by Saddam and dated Jan 21.
The card lists Saddam's occupation as "Pres of the Republic of Iraq"
and his rank as "Field Marshal."
It noted he was in "good health" and "slightly wounded".
The magazine said it was uncertain whether the card was filled out by
Saddam or whether it was an independent assessment of his condition.
The lawyer claims the former Iraqi leader's human rights are being
violated, but offered no evidence to back up his assertion, Newsweek said.
US military authorities have said Saddam is being treated humanely.
The form provides no details on where Saddam is being held, nor does it
indicate whether he is being held as a prisoner of war or security
detainee or a common prisoner.

Large explosions hit Fallujah
Fallujah (AP).  Large explosions rocked Fallujah in the same area as a
US air strike last weekend, witnesses said. The Americans said the
weekend attack was against a safe house of Jordanian terrorist Abu
Musab al-Zarqawi's movement.
Ambulances raced to the area after the 10.30 pm blasts. Wounded and
dead were being evacuated, said Col Mekky Zeidan.
The attack came only days after a strike Sat that levelled a building
US officials said was a suspected safe house for Zarqawi's network.
Zarqawi, a militant thought to have ties to al-Qaeda, has been blamed
for a string of car bombs across Iraq, including a blast last wk that
killed 35 people and wounded 145 at an Iraqi military recruiting
centre in Baghdad.
His Monotheism and Jihad movement carried through its threat to behead
S Korean hostage Kim Sun-il after S Korea refused to withdraw its
troops from Iraq.

US air strike kills 3 in Fallujah
Fallujah (Reuters).  The 2nd US "precision" strike in 4 days on a
suspected safe house of Al Qaeda terror suspect Abu Mussab al-Zarqawi
has killed 3 people and wounded 10 others in the flash point W
Iraqi city of Fallujah.
The witnesses said the air strike hit a garage.
The strike came just hours after Islamic militants beheaded South
Korean translator Kim Sun-Il, whose body was found Tue by the US
military nr Fallujah.
Zarqawi's militant faction Tawhid wa al-Jihad (Unification and Holy
War) announced Sun it had kidnapped Kim and vowed to behead him if
Seoul did not abandon its plan to send 1000s of troops to Iraq.
Iraqi police and US troops sealed off roads leading to the scene of
the attack, the witnesses said.
"There was an air strike that hit a car garage nr my home," witness
Muhawmish Hammadi said.
"A warplane was in the area for 10 minutes and then it fired a rocket at
the garage."
A doctor at Fallujah general hospital, where the casualties were
taken, said they had received 3 bodies and ten wounded.
Brig Gen Mark Kimmitt, deputy director of operations for the US
military in Iraq, said in a statement the strike was based on
"multiple confirmations of actionable intel".
"This evening, coalition forces conducted another strike on a known
Zarqawi network safe house in S central Fallujah, based on multiple
confirmations of actionable intel," he said.
"This operation employed precision weapons to target and destroy the
safe house.  Wherever and whenever we find elements of the Zarqawi
network, we will attack them."
A US air strike on a house in Fallujah killed 22 people on Sat.
The US military said the building was a safe house for fighters loyal to
Abu Musab al Zarqawi, who they say is the top Al Qaeda operative in Iraq.
Iraqis at the scene of that attack and local security officials said
civilians were killed and the house was not linked to Zarqawi.
A Jordanian with a $US10 mn bounty on his head, Zarqawi has been
accused by coalition and Iraqi officials of being behind numerous
atrocities, including last Thu's suicide bomb in Baghdad that killed
35 people.

Iraq: 4 killed in Fallujah in US air strike
Baghdad (AP).  The US forces in Iraq launched an air strike Tue in
Fallujah on a safe house used by followers of Jordanian terrorist Abu
Musab al-Zarqawi -- the 2nd strike against the terror network in 3 days.
Eyewitnesses said that 4 people were killed in the attack and 6 others
wounded.
Brig Gen Mark Kimmitt, the US-led coalition's deputy chief of
operations, said the strike involved precision weapons to "target and
destroy" the safe house and was based on "multiple confirmations of
actionable intel."
"Wherever and whenever we find elements of the Zarqawi network, we
will attack them," he said.
The Sat attack levelled a building US officials said was a suspected
al-Zarqawi safe house. Fallujah officials claimed the house was owned by an
Iraqi family and that no foreign terrorists were there.
Al-Zarqawi, who is thought to have ties to al-Qaeda, has been blamed
for a string of car bombs across Iraq, including a blast last wk that
killed 35 people and wounded 145 at an Iraqi military recruiting
centre in Baghdad.
His Monotheism and Jihad movement carried through its threat to behead
S Korean hostage Kim Sun-il after S Korea refused to withdraw its
troops from Iraq.

US aid to rebuild Iraqi universities falls far short
Baghdad (WashPost).  John Agresto arrived 9 m ago with 2 suitcases, a
feather pillow and a suffusion of optimism. He didn't know much about
Iraq but was certain the US occupation and his mission to oversee the
country's university system would be a success.
"Like everyone else in America, I saw the images of people cheering as
Saddam Hussein's statue was pulled down. I saw people hitting pictures of
him with their shoes," said Agresto, former president of
525-student St John's College in Santa Fe, NM. "Once you see that,
you can't help but say, 'OK. This is going to work.' "
But the Iraq he encountered was different from what he had expected.
Visits to the universities he was trying to rebuild and the faculty he
wanted to invigorate were more and more dangerous and infrequent.
His Iraqi staff was threatened by insurgents. His evenings were
disrupted by mortar attacks on the occupation authority's Baghdad HQ.
His plans to repair 100s of campus buildings were scuttled by the Bush
Admin's move to shift reconstruction efforts and by the failure to
raise aid from other sources.
His hope that Iraqis would put aside differences and personal
interests for a common cause was, as he put it, "way too idealistic."
"I'm a neoconservative who's been mugged by reality," Agresto said as he
puffed on a pipe next to a resort-size swimming pool behind the
marbled palace that houses the occupation authority.
"We can't deny there were mistakes, things that didn't work out the
way we wanted," he added. "We have to be honest with ourselves."
Agresto's candor is unusual among the staff of the Coalition
Provisional Authority, the US bureaucracy responsible for the civil
Admin of Iraq until Jun 30. He is one of the few US officials in Baghdad to
speak on the record at length about the shortcomings of the occupation.
Iraq's institutions of higher learning were once the most modern in
the Middle East. But they were smothered under Saddam Hussein, then
further devastated by looting after Saddam's govt was toppled last y.
In his initial travels around Iraq, Agresto, 58, observed students
sitting on the floor in burned-out classrooms. He visited technical
colleges with no tools. He saw academic journals from the 1960s kept
under lock at an agricultural college because the school did not
possess more-recent books.
"It's difficult to describe how bad things were," he recalled.
Agresto found the universities needed $1.2 bn to become viable centres of
learning and reap goodwill for the US rebuilding effort. But of the
$18.6 bn US reconstruction package approved by Congress last year,
higher education received $8 mn, a tiny fraction of his
proposal. When Agresto asked the US Agency for Internat'l Development
for 130,000 desks, he got 8,000.
"I really thought this would have been valuable money, well spent and
sorely needed," he said. "We're not buying books for the
libraries. We're not buying saws and nails for the technical
institutes. We're not replacing the computers that were stolen. I
can't be anything but sad about it."
Agresto, a lifelong Republican and political conservative, still believes in
the US invasion. He is proud of the changes the Coalition Provisional
Authority instilled in Iraq's universities, including the promotion of
academic freedom and a purge of snr officials of Saddam's Baath party.
He says he believes the provisional authority accomplished "a lot of
good under very difficult conditions."
While acknowledging US mistakes, Agresto aimed some of his most
pointed criticism at Iraqis. In his view, the US toppled a dictator
and prepared the ground for democracy, but Iraqis have not stepped up to
build on that start.
"They don't know how to be a community," he said. "They put their
individual interests first. They only look out for themselves."
Some American academics who are familiar with Iraq's university system
blame the Bush Admin, and Agresto, for failing to secure more
independent funding.
They said that in choosing Agresto, the Whitehouse shunned scholars
with greater acceptance in academic circles, many of whom had opposed
the invasion, in favour of a conservative loyalist who had spent much of
his career criticising the US academic establishment.
"Had it been someone different than Agresto, the possibility of that
would have been so much better," said Keith Watenpaugh, an assistant
professor of Middle E history at Le Moyne College in Syracuse, NY, who
travelled to Baghdad last y to assess Iraq's university system.
"The politics of the occupation were so divisive, and the American
academy felt so disempowered by the way things were happening, that
when such political creatures like Agresto came asking for things, it
was too difficult to put aside those politics," he said.
"If the Admin had really been committed to rebuilding Iraq's education
structures, they wouldn't have sent Agresto."

Child dies in Baghdad blast
Baghdad (AFP).  2 Iraqis including one child have been killed and a
3rd person has been injured in a bomb blast which went off as a US
military convoy passed in central Baghdad, a police officer said.  "2
people, a man and a child, were killed and another man was injured
when a bomb exploded, destroying a taxi they were travelling in," Col
Safaddin Mehdi said at the scene of the attack.  He said the blast
went off at about 8.45 am local time as the 3-vehicle convoy
passed.  Debris from the German-brand car was visible on Palestine
Avenue, nr to Beirut Place.  The US military sealed off the area
straight away and emergency services arrived to evacuate the victims.

Car bomb kills 2 children in W Baghdad
Baghdad (AFP).  A car bomb killed 2 children in W Baghdad today
witnesses said.  "The explosion went off while a civilian car was
passing and 2 children were burnt in the back of the vehicle," said a
witness who owns a shop nr the site of the attack.  He added that
the children's parents were also wounded in the attack in the Amariyah
district.  4 cars were destroyed in the blast and American forces had
surrounded the area he said.

5 US soldiers, 5 Iraqi contractors killed
Baghdad (Bloomberg).  5 US soldiers were killed Mon, four nr the
central Iraqi town of Ramadi, and 5 Iraqi contractors were slain S of
the N city of Mosul, the US-led occupation authority said at a
briefing in Baghdad.
The coalition is also looking for a S Korean being held hostage, US
Army Brig Gen Mark Kimmitt said. A group of insurgents believed to be
led by Abu Musab al-Zarqawi -- who is affiliated with the al-Qaeda
terrorist network, according to the US -- is threatening to behead the
man if S Korean soldiers deployed in Iraq aren't withdrawn in 24
hr, he said.
The kidnapping of the S Korean is "tragic" and his rescue is "a very
high priority," occupation rep Dan Senor told reporters at the
briefing. No other details on the hostage-taking would be made
available, he said.
The attacks precede next Wed's transfer of political sovereignty to
Iraq's interim govt. The US has said it expects violence to increase
over the summer m as insurgents seek to derail Iraq's US-led
transition to democracy and a free market economy.
One US soldier was killed and 7 wounded when their convoy was attacked
with mortar fire in Baghdad, the US military said in a press release.
* Korean Commitment
South Korean Pres Roh Moo Hyun's Admin will honour his commitment to
the US to send 3,000 troops to Iraq, Vice For Min Choi Young Jin said
earlier today in a televised broadcast. About 600 army engineers and
medics are already serving in the country.
US Secretary of State Colin Powell discussed the kidnapping, among
other issues, with S Korean For Min Ban Ki Moon last night, State Dept
rep Richard Boucher said.
Ghazi al-Yawar, president of Iraq's interim govt, told reporters today he
wouldn't rule out emergency measures -- such as imposing a curfew
and banning public demos -- to cope with the violence. He said
emergency rule 'is an option we are not ruling out," and a "right" of
his govt.
"We are determined to go ahead with our plans, reinstate govt
institutions and enhance our security along with multinat'l forces
which are invited to help us secure security in Iraq," al-Yawar said
after meeting with a US congressional delegation in Baghdad. "Probably
there will be some turbulence. We are expecting the forces of the
darkness, as we call them, will try to deter our movement."
15 of Iraq's 26 ministries have already been turned over to Iraqis,
and the remaining ministries will be transferred by the end of this
wk, Senor said today.
* Zarqawi Attack
The US attacked a site in Fallujah suspected of being used by Zarqawi
and his followers, Kimmitt said. Warplanes dropped 3 225-kg
bombs in Fallujah, a centre of anti-US resistance, the NY
Times reported, citing an unidentified Iraqi official as saying 23 of
the 26 people killed in the attack were foreign fighters, including
men from Algeria, Saudi Arabia and Yemen. 3 Iraqis were killed and 2
others wounded, the newspaper said, citing the official.
"We had very strong pre-strike intel that the house in Fallujah was
occupied by members of Zarqawi's terrorist network," Kimmitt
said. "The intel continues to confirm that."
Kimmitt has said Zarqawi may be using Fallujah as a base to plan
terrorist attacks and that the region -- which the US has turned over to
Iraqi security services -- was likely being used as a haven by
foreign fighters.
* US Soldiers Killed
The 4 US soldiers who were killed in Ramadi didn't check in with HQ at an
appointed time, and a quick-reaction force was sent into the area,
Kimmitt told reporters.  No additional info was disclosed. Ramadi is
50 km W of Fallujah.
The 5 Iraqis were killed and 3 others wounded when their convoy ran
over a homemade bomb S of Mosul. The body of a member of a local Iraqi
governing council was found nr Tikrit, the home of deposed Iraqi
dictator Saddam Hussein, Kimmitt said.
The US military also captured 5 people in eastern Mosul suspected of
firing at coalition soldiers and killing Iraqi security forces. In
Samarra, N of Baghdad, 4 people firing mortars at a coalition base
were killed, Kimmitt said.
Coalition soldiers Sat detained an individual suspected of helping to
kidnap 4 Italian hostages, one of whom was subsequently killed. The
suspect was seized in Mahmudiyah, about 10 miles S of Baghdad, Kimmitt said.

"Sovereignty": Iraq ministers told only US can impose martial law
Baghdad (FT).  The US-led occupation authority in Baghdad has warned
Iraq's interim govt not to carry out its threat of declaring martial
law, insisting that only the US-led coalition has the right to adopt
emergency powers after the Jun 30 hand over of sovereignty.
Snr American officials say Iraq's authorities are bound by human
rights clauses in the interim constitution, known as the Transitional
Administrative Law, prohibiting administrative detention.
But they say the recent UN Sec Council resolution 1546 sanctions the
use by foreign forces in Iraq of "all necessary measures" to provide
security.
A snr coalition official in Baghdad said: "Under the UN resolution,
the multinat'l force will have the power to take all actions
traditionally associated with martial law." He said they had raised
their legal objections with Iyad Allawi, Iraq's prime minister.
Mr Allawi on Tue appeared to back away from remarks made on Sun that
the govt would assume emergency powers after the hand over.
"No, I didn't specifically say martial law meaning martial law," he
said, adding that the govt was developing a "public safety law" which
would allow it to implement curfews, searches, and "apprehend the
enemies of Iraq".
The coalition's warning highlights growing tension between the US-led
multinat'l force and Iraq's appointed govt over how to handle
counter-insurgency after the hand over.
US advisers are concerned about the security powers sought by Mr
Allawi, a one-time Baath party member, and are struggling to check the
ambitions of his ministers to rebuild and re-arm Iraq's forces.
"Iraq will have a lightly-armed standing army and no heavy field
artillery," says Jacinta Caroll, director of defence policy for the
Coalition Provisional Authority. If tanks and attack aircraft were
needed, Iraq would have to rely on US-led forces, she said.
Frustrated Iraqi officials say reliance on US-led forces will
undermine public confidence in the restoration of sovereignty and
re-ignite claims that they are lackeys of the occupying forces.
To curb Iraq's access to heavy weapons, observers say the occupation
authorities have signed a $259 mn contract with US company Anham Joint
Venture to be sole supplier of arms to Iraq's armed forces for the
next 2 y.
Alarmed that the deal could leave Iraq's forces out-gunned by an enemy
with mortars and rockets, Mr Allawi this wk vowed to refurbish the old
Iraq army's arsenal, and appealed to neighbouring states to provide
military hardware.
All but 20% of the defence ministry's 2004 $1.5bn budget stems from US
funds, say coalition officials, and Iraq's share is earmarked for the
payment of salaries, not equipment. In addition, the coalition has
impounded Iraq's remaining heavy weapons and is hampering the issue of
end-user certificates for fresh supplies, say western security experts.
An American defence adviser in Baghdad this wk said that Iraq also
remained under "a partial UN weapons embargo".

Brit sailors could be released soon: Iranian official
Captured Brit sailors on Iranian television.
Tehran (Reuters).  An Iranian military official has said 8 Brit
sailors seized in Iranian waters could be released soon, if
investigations show their incursion was not ill-intended.
The Royal Navy personnel have appeared in blindfolds on Iranian
television, and the Brit Govt has summoned Iran's ambassador to London
and called for their release.
Some Iranian media reports have said the Britons were carrying
sophisticated maps and arms and would be prosecuted, but snr
Iranian military officials have also said they could be freed shortly.
Iranian Revolutionary Guards arrested the Britons earlier this wk on
the Shatt al-Arab waterway which marks the S stretch of Iraq's border
with Iran.
Iranian TV has broadcast footage of 2 Brit sailors arrested earlier
this wk on the Shatt al-Arab waterway, apologising for entering
Iranian territorial waters.
In comments dubbed into Arabic and shown on al-Alam TV, one of the
sailors -- identified as Sgt Thomas Hawkins -- has said the team
wrongly entered Iranian waters and apologised because it was a big mistake.
Sgt Hawkins has said his team of sailors had been more than one km
inside Iranian territorial waters when they were arrested by Iran's
Revolutionary Guards.
The Royal Navy personnel had earlier appeared in blindfolds on Iranian TV.
Brit has said the group was training Iraqi police and was on a routine
mission delivering a boat to an Iraqi river patrol.
Fabian Hamilton, a member of the UK Foreign Affairs Select Committee,
says it is likely there is a domestic element to the arrest of the
Brit servicemen, involving reformers and hard-liners within the Iranian Govt.
"This is an issue between the different factions within the Iranian
state, which is of course bitterly divided as to whether there should be a
rapprochement with the W and friendly relations with countries
like the UK, or whether we should be regarded as we were by the
revolutionaries as the little Satan as America's great Satan," he said.

Al Qaeda still lurks in Afghanistan: Hill
Canberra.  The Fed Govt says the Islamic extremist group Al Qaeda is
trying to reassert itself in Afghanistan.  Defence Min Robert Hill,
says the US coalition has had significant success in Afghanistan but
there will be a long struggle to deal with Al-Qaeda.  "Al Qaeda was
never totally defeated in Afghanistan, what was defeated was its HQ,
its command and control, the destruction of many of its major weapons
caches and its training camps," he said.  "Al Qaeda operatives
nevertheless still remained in Afghanistan."  "I don't see them being
able to export their terror in the way that they did before the
attacks by the coalition within Afghanistan."

Palestinian militants killed in Gaza Strip raid
Gaza.  Israeli snipers have killed 2 Palestinian militants during a
raid in the Gaza Strip.  Palestinians also say a civilian was
seriously wounded in the ensuing gun battle.  The Israeli military
says snipers opened fire on 2 Palestinians during an operation to stop
militants launching rockets at Israeli targets.  In a statement, the
al-Aqsa Martyrs Brigades said the 2 were on their way to plant bombs nr
Israeli positions when they were killed.  Meanwhile, Israel's Shin
Bet security agency has charged a Palestinian policeman with helping
Hamas carry out a double suicide bombing at an Israeli port 3 m ago.
The coordinated attacks killed 10 people.

Labour motion removes Sharon's safety net
Jerusalem (AFP).  The opp'n Labour Party has filed its 1st
no-confidence motion against the Israeli Govt, withdrawing the "safety
net" it has provided since the Cabinet approved PM Ariel Sharon's
disengagement plan on Jun 6.
The motion, which will be debated in parliament on Mon, was tabled in
response to the Govt's socio-economic policies, which have been
fiercely attacked by the party.
Israel army radio reports the latest submission is the sixth
no-confidence motion to challenge the Sharon Govt in the past 10 days.
All the votes have been defeated.
Last week, the parliament voted down 3 no-confidence motions in what
was the 1st test of Mr Sharon's strength in the Knesset since losing
his majority there a wk earlier.
Mr Sharon's decision to sack 2-right wing deputies ensured that he
won a majority in Cabinet for his so-called disengagement plan on Jun 6.
Following the move, 2 hard-right ministers resigned in protest,
leaving the Prime Min with the theoretical support of no more than 59
deputies in the 120-seat parliament.
Since approval of the plan, which envisages an Israeli withdrawal from
the Gaza Strip and 4 other settlements in the N W Bank, Labour has
been providing Mr Sharon's govt with a "safety net" by relinquishing
its opp'n role and abstaining in censure motions.
But that appears to be at an end with the latest submission.
Mr Sharon has been expected to bring Labour into a new broad-based
coalition in the nr future in order to secure a majority for his Gaza
pullout plan.

PNG to use special powers to accept Aust aid
Pt Moresby (ABC, Shane McLeod).  Papua New Guinea's Govt will use
special urgency powers to formally accept a new $bn aid program
being offered by AUS.  A new treaty on the Enhanced Cooperation
Program is expected to be ratified next wk.  PNG's constitution
requires new treaties to be presented to Parliament for 10 sitting
days before they can be agreed to.  The provision can be waived if
urgency is required and the Govt has set in train events so it can
endorse the package as soon as next week.  The acting For Min has
written to the Speaker of Parliament, who can endorse the treaty with
the support of the PM.  The PM is out of the country until Mon.  More
than 200 police and up to 70 public servants will take up posts in PNG
under the plan.

Convicted Belgian child killer to appeal against verdict
Brussels (AFP).  The paedophile rapist and murderer Marc Dutroux, who
was sentenced to life behind bars by a Belgian court, intends to
appeal against his conviction, his lawyer said following the hearing.
"Marc Dutroux will exercise his right to an appeal. I will follow him if
there is a way to do so," Xavier Magnee, Dutroux's principal
lawyer, said outside the courtroom in SE Belgium.
Mr Magnee described as "inevitable" the verdict, which was handed down
Thu at the end of a harrowing trial over the shocking abduction and
rape of 6 girls in the mid-1990s, 4 of whom died.
The 47-yo former electrician was convicted of murdering 2 teenaged
girls, An Marchal and Eefje Lambrecks.
He was also convicted of kidnapping and raping Julie Lejeune and
Melissa Russo, both aged eight.
He was further convicted of abducting, imprisoning and raping Sabine
Dardenne, then aged 12, and Laetitia Delhez, then 14, who both
survived the ordeal.
Dubbed "Belgium's most hated man" by the press, Dutroux considers his
conviction to be just one "step" in a legal process, his lawyer said.
Mr Magnee said his client considered the case to remain open through a
parallel court investigation which is to continue to hunt for possible
other accomplices in the affair.
Thierry Bayet, one of the lawyers for Dutroux's ex-wife Michelle
Martin, said that his client would take "a few days to think" the
situation over before deciding whether to appeal.
Martin, 44, was jailed for 30 y for imprisoning the abducted girls and
for raping a Slovakian woman.
Her lawyer said she had acknowledged the sentence.
"We are a little disappointed that we could not make ourselves fully
heard" added her lawyer, who had pleaded for "extenuating
circumstances" to be taken into account in Martin's case.

WWI veteran Ted Smout dies
AUS's oldest surviving World War I veteran Ted Smout has died, aged 106.
Brisbane (AAP).  His death on Wed afternoon in Bris means there are
now just 5 surviving Aussie Great War veterans.
Mr Smout was one of 4 Aussie veterans who travelled to Europe in 1998 to
receive France's highest military distinction, the Legion of Honour.
He served in the Aussie Army Medical Corps' sanitary section during
the war and was underage when he signed up in 1915 as a 17-yo.
Like many young men of the time, he faked his age to fight for his country.
"My friends all enlisted, it was the thing to do," Mr Smout said in
recent years.
"There was a very strong loyalty to Brit at the time. I'd say there
wasn't a family in AUS who didn't lose a member in the war."
Mr Smout served in France and Belgium, where his main role was
checking water quality.
In his 2001 biography, 3 Centuries Spanned, written by his brother
Arthur, Mr Smout recounted the day the German flying ace Baron Von
Richtofen -- the Red Baron -- was shot down by an Aussie machine gun.
"I happened to be one of the 1st on the spot," Mr Smout recalled.
"I admired his fine leather knee boots, but resisted the temptation to
souvenir them, or the Iron Cross he was wearing on a chain around his neck."
Other soldiers weren't as restrained and the Red Baron's boots and
iron cross are housed in the nat'l war memorial in CBR.
Despite his war experiences, Mr Smout never lost his sense of fun.
In a 1998 interview he recalled his night out at Paris' famed Folies
Bergeres 2 days after the Nov 11, 1918, armistice.
"I was the only Aussie soldier there," he said.

WWI veteran Smout dies
Ted Smout [to his vast surprise] and 3 other Aussie veterans were
awarded the French Legion of Honour in 1998.
Brisbane.  One of AUS's last remaining World War I veterans has died.
Ted Smout, aged 106, passed away in a Bris hospital yesterday afternoon.
Mr Smout was only 17 when he headed to France in 1915 and was a medic
during the World War I.
In 1998, he received France's highest military award -- the Legion of
Honour.
Prime Min John Howard paid tribute to Mr Smout as a great Aussie.
"I had the opportunity of meeting him in 1993 and on several occasions
afterwards," he said.
"He had a tremendous personality and just made everybody so proud
about the way in which he was an exemplar of that magnificent generation."
The RSL's nat'l president, Maj Gen Bill Cruize, says Mr Smout
epitomised the Anzac spirit.
"He was a humble man and that humility was one of the hallmarks of
many of our World War I veterans," he said.
Qld Prem Peter Beattie has offered Mr Smout's family a state funeral.
"He's one of those people who through his personality won and warmed
everybody," he said.
"As a World War I digger and someone who is a great Aussie in my view, he
will be given the offer, his family will be given the offer of a
state funeral."
Mr Smout celebrated his 105th birthday in Jan last y.
At the time, he mused about his long life.
"When you get old, you know, you're inclined to look back and think
about the past and the highlights, there have been many in my 105
years, many highlights," he said.
"I'm extremely blessed with good health and fortunate I've got all my
faculties still."

Ted Smout: A soldier and a gentleman
Brisbane (ABC radio reporters).  A revered soldier, gentleman and a
corporate success, World War I veteran Ted Smout once mused that his
106-y long life had many highlights.
"When you get old, you know, you're inclined to look back and think
about the past," he said.
"There's been many in my... years, many highlights."
Born in 1898, Ted Smout was only 17 when he went to France in 1915.
Enlisted as a lance corporal, he served as a medic in the Great War,
tending to the horrific injuries sustained on the battlefields and in
the trenches.
"Witnessed terrible casualties, shocking casualties, some of the
wounds were so horrendous that today if you'd saw them you'd faint,
you know, with shock," he once said.
The trauma Mr Smout witnessed stayed with him for decades.
"I received the Citizen of the Year award on Foundation Day and we
moved out into the square for a flag-raising ceremony," he told AM in 2000.
"I had my daughter with me, fortunately, and they fired off a 21-gun salute.
"I dived for the ground at the 1st shot, she caught me, and every shot
I was shaking all over.
"People thought I was having an epileptic fit.
"And that was 85 y after I got shell-shocked in France."
The sounds of life in a war zone also continued to evoked an emotional
response from Mr Smout.
"Whenever I hear the last post, whether it's at a memorial service or
not I get the quivers you know," he once said.
"I have quite an emotional reaction to it always... still."
In 1998, Mr Smout received France's highest military award, the Legion of
Honour.
He was also made a member of the Order of AUS in 1978, named a Qld
Great and received the 80th Anniversary Armistice Remembrance Medal.
But Mr Smout did not regard his war service as a special achievement.
"No wars are pleasant -- all they do is get people killed," he said.
* Fine achievement
Instead, Mr Smout regarded his marriage of nearly 70 y as his finest
achievement.
The Smouts have 3 children, and 12 grandchildren.
But Mr Smout found returning to normal life after the war very difficult.
"I was back a y and I had a complete breakdown, they reckon it was the
effect of the shell-shock," he said.
"I had to go away out W for 3 m to try to recover my health, which I
did, but it had a very serious effect on me and took me a long time to
get back to what I would consider normal."
In his later years, Mr Smout was an active campaigner for a republic,
and was awarded life membership of the Aussie Republican Movement in 2002.
He also played a role in educating school children about war, and,
fiercely patriotic, defended the importance of Anzac Day.
"It epitomises AUS as a nation," he told AM.
"[It's] set aside to honour the memory of those that were killed in
war, not only World War I but wars since, the Second World War, Vietnam.
"I think the tradition should be kept up, I think it's important."
RSL nat'l president Maj Gen Bill Cruize says Mr Smout epitomised
the Anzac spirit.
"As many others did at the time and has carried that forward and made
known what's important to AUS in subsequent generations, both within
his family and the wider community," he said.
* Great Aussie
In 2001, Mr Smout released a biography penned by his brother, Arthur.
The book, 3 Centuries Spanned reflects on Mr Smout's war y but also
his successful business career and his dedication to community work,
including 65 y as a member of Legacy.
PM John Howard says Mr Smout was a great Aussie.
"He had a tremendous personality and just made everybody so proud
about the way in which he was an exemplar of that magnificent
generation," Mr Howard said.
Qld Prem Peter Beattie says Mr Smout was a popular man.
"He, I think, is one of those people who through his personality won
and warmed everybody," Mr Beattie said.
Others who met him say he was a gentleman humbled by the attention he
received in his later years.
Once asked, 'What do you look forward to in the future?"
Mr Smout replied: "To keep breathing."
Mr Smout's last breath has expired but his legacy lives on, captured in
formal records like those at the Aussie War Museum and in the
interest in AUS's war time history he and other veterans generated.

Poor paying more tax: ACTU
Sydney (AAP).  Single people on incomes of $540 a wk would be forced to
pay $2,500 more in tax over the next term of a Howard govt, tax
modelling by the nation's peak union movement has found.
ACTU president Sharan Burrow will release the modelling at a nat'l
summit on the integrity of the tax system in SYD.
"This modelling shows that since 1996, the top end of town has gained
from tax cuts and tax rorts under the Howard govt while low and middle
income taxpayers have lost out," Ms Burrow said.
The modelling, based on bracket creep, the GST and tax cuts since
1996, shows that over the next term of a Howard govt, those earning
less than $52,000 a y will pay between $1,900 and $2,500 extra in tax.
At the same time, people earning more than $80,000 a y will get an
effective tax cut of $5,800 over the 3-y term, the ACTU said.
Ms Burrow said the analysis showed that top end tax cuts were leaving
low and middle income earners further behind.
The Fed Govt announced tax cuts in the May Budget for middle and high
income earners.

Skilled vacancies rise 1.3%
Canberra.  Vacancies for skilled workers rose 1.3% in Jun and were
11.8% lower than the same time last y, official figures showed.
The Dept of Employment and Workplace Relations (DEWR) said its skilled
vacancies index rose to 115.1 in Jun, rising across 2 out of 3
major occupational groups.
A separate index for info technology and communications vacancies
published on recruitment websites rose 4.5% in Jun to be up 64.9 per
cent since the same time last y.
DEWR said the biggest falls in vacancies in the month were for medical
science technical officers (down 8.8%), social professionals (down
2.8%) and building and engineering professionals (down 1.9%.)
The biggest rises were for marketing and advertising professionals (up
10.9%), organisation and info professionals (up 8.5%) and
electronic and electrical trades (up 5.9%).
DEWR said over the year, the vacancies in the trades rose 21.2% and
for associate professionals rose 0.2%, while professionals fell 1.4%.

Home ownership probe urges tax review
Canberra (ABC, Adrian Thirsk).  The current tax regime, together with
land release and planning bottlenecks are being partly blamed for the
recent boom in Aussie house prices.
In the final report of the Productivity Commission's inquiry into
first home ownership, released today by the Govt, "unrealistic
expectations of ongoing capital gains" are identified as a key factor in
recent house price gains.
The commission urges a review as soon as practicable of aspects of the
personal tax regime, focusing on the capital gains tax and negative
gearing arrangements.
The Govt says it will not be conducting a review, saying that there is no
conclusive evidence the tax system has had a significant impact on
house prices, and that Aussies need certainty for their investment decisions.
A call for a public inquiry into the housing needs of low income
households has been similarly rejected.
The commission and Govt do agree that state-based stamp duties should be
reduced.
Housing Industry Association nat'l executive director Ron Silberberg says
the commission's final report is an improvement over the interim findings.
"There is a much better appreciation of the contribution of land
supply, infrastructure funding, charges impacting on affordability," he said.

Small business to benefit from new competition laws
Canberra.  The Fed Govt has announced changes to the Trade Practices
Act which include a massive rise in penalties for anti-competitive
conduct.  Treasurer Peter Costello says the new legislation to be
introduced tomorrow gives additional rights to small business.  Under
the laws, predatory pricing will be easier to prove and small
businesses will be able to collectively bargain for the best price.
For example, independent service stations can join together to
negotiate with the big petrol suppliers and small farmers can work
collectively to get the best deal from the big retailers.  Mr Costello
thinks the changes are the most significant step forward for small
businesses in the last 30 y and he says the major change is the
increase to fines.  "It increases the penalty for anti-competitive
conduct so that the penalties can involve penalties related to the
value that somebody has got from anti-competitive position," he said.
"You can be fined $10 mn or 3 times the value of the benefit of the
conduct or if that cannot be determined, 10% of the turnover."

Survey shows dairy farmers on road to recovery
Brisbane.  A nat'l survey of more than 1,000 dairy farmers shows they
believe their industry is beginning to recover from the drought and
low prices.  Qld Dairyfarmers Organisation's Wes Judd says there is
more optimism, with 40% of farmers feeling positive about the
future.  He says some are already starting to get back on track.  "A
lot of extra debt has been incurred because of the drought and there's
a%age of users who have said that they are starting to make headway
into that extra debt and reduce that," he said.  "But obviously
there's many who haven't been able to do that yet."

Water pressure rises ahead of summit
Canberra.  The Aussie Bankers Association has joined the Nat'l
Farmers Federation (NFF) and the Conservation Foundation to deliver a
set of six principles on water reform to the Fed Govt.  The move comes
ahead of Fri's debate on a nat'l water plan, to be held at the Council of
Aussie Govts (COAG) meeting in CBR.  The joint statement calls on
the Govt to identify areas where water is over-allocated within 12 m
and decide how to share the cost of reducing water entitlements.
Bankers Association director Stephen Carroll says he would like to see
water titles similar to those held for land.  "What that means is that
where a farmer uses a water entitlement...  for collateral purposes to
support a mortgage, they get the same sort of deal they would get if
they were using land for that purpose," he said.

Collins in critical condition after crash
Adelaide.  Former Fed Labor minister Bob Collins is now in a critical
condition in an Adel hospital after being injured in a car crash at
the weekend.  Mr Collins, 57, was involved in a single vehicle crash in
Kakadu Nat'l Park on Sun.  He sustained serious leg and other
injuries and was earlier reported in a stable condition.  Last night he
was flown from Darwin to Adel and is now undergoing surgery.  A rep
for the Royal Adel Hospital says Mr Collins condition is listed as
critical.  Mr Collins has been overseeing reforms to S AUS's
Anangu-Pitjanjatjara Aboriginal lands, after being appointed by the SA
Govt in May.

Baby bonus fuels Indigenous violence: ATSIC
Family payments criticised by ATSIC.
Darwin.  An ATSIC regional councillor in the NT says the Fed Govt's
$600 child bonus is proving disastrous for Aboriginal communities.
Michael Berto, a councillor in Katherine, says there has been a marked
increase in drinking, drug abuse and violence since the money became
available last wk.
Northern Territory Chief Min Clare Martin agrees the payments have
caused problems in Indigenous communities.
Ms Martin says she is meeting with the PM this wk and she will lobby
against introducing the lump sum baby bonus payments from Jul 1.
Mr Berto says it is ridiculous for the Govt to throw money around with no
explanation about what it is for.
"They're well aware that we're desperately fighting levels of alcohol
abuse and drug abuse, violence that's occurring in our communities...
and they go and do this sort of thing," he said.
"You know, there's been no education campaign, nothing to say why this
money was being paid to people."
Mr Berto says the spending spree has undone attempts to reduce the
level of violence in communities.
He predicts things will get worse when the baby bonus becomes
available next m.
This is only the start of it. We've got another period to get through
when the $3,000 payment kicks in on the 1st of Jul," he said.
"That's going to increase pregnancy rates. I'm sure in our communities
once those monies are able to be accessed, once they're eligible that
is, you know, it's going to create more havoc."

Lawyers abandon case to release detained children
Adelaide.  The legal team for the 5 Bakhtiari children has abandoned
its attempt to have the children released from community immigration
detention.
The case was due back in the Fed Court in Adel today, after the case
for an interim release failed.
Lawyers say the case was dropped because they believed it was unlikely to
succeed.
The children are living in community detention in suburban Adel and
have recently been re-united with their mother and baby brother.
Lawyer Jeremy Moore says the Bakhtiaris feel they have achieved as
much as they can and are now happy.
"They don't want to be involved in any more court cases at this
stage," he said.
"They've got everything they could ask for, they've got the minister
making a public pronouncement they could continue living in the house
and the kids can go to school while the dad's proceedings are still on
foot in the country."
Their father remains in the Baxter detention centre, nr Port Augusta.

Opp'n claims $30 mn wasted on tank upgrades
Canberra.  The Fed Opp'n says the Govt has wasted nearly $30 mn on
unnecessary upgrades of the Leopard tank, which is to be
retired.  The $multi-mn projects have been cancelled before
completion, because the Govt has decided to buy the heavier US made
Abrams tank.  Govt documents reveal 4 upgrades to the Leopard tank
have been cancelled, but $mns have already been spent on the projects.
They include a thermal sight and a cooling system for the ageing
tanks, at a total cost of nearly $30 mn.  Labor's defence rep,
Chris Evans says taxpayers' money has again been wasted.  "Quite
frankly it's got to stop, the Howard Govt's record on defence
acquisition is appalling and every taxpayer is paying the price," he
said.  He fears there could be a further cost blow-out, if suppliers
seek compensation from the govt for cancelling the contracts.  Defence
Min Robert Hill says most of the upgrades can be transferred to other
Army vehicles and Sen Evans' comments are greatly exaggerated.

Be alert for return of ad campaign
Canberra.  Prime Min John Howard says the Govt is reserving its right to
reintroduce the "Be Alert but not Alarmed" advertising campaign.
The campaign launched last y saw all households receive a fridge
magnet and encouraged Aussies to ring a special hotline if they
noticed any suspicious activity.  Labor had criticised the campaign in
the past but John Howard says it has proved to be a great success.
"That is not in any sense, shape or form a campaign that can be
criticised," he said.  "It's been very successful, the response has
been very good, much of the early cynicism has fallen away and all
that's been indicated is that we will reserve the right to revisit it."

Sens clash with spy agency over Bali warning
[Records of a possible discussion of pre-Bali intel appear to have
been "lost" by several departments].
Canberra.  Liberal senators have clashed with snr officers of the
intel agency which advises the Prime Min during a Senate committee
hearing on the terrorist threat in South-East Asia.
They have questioned why there is no record of a meeting in which the
Office of Nat'l Assessments (ONA) says it raised concerns about Bali
being a possible terrorist target.
The ONA says in Jun 2002, 4 m before the Bali attacks, it briefed the
For Min Alexander Downer on the terrorist threat in South-East Asia,
and named Bali as an attractive target for terrorists.
The ONA says it repeated that briefing for snr officers from Mr
Downer's dept, but Foreign Affairs denies that later meeting took
place, prompting concern from Liberal Sen David Johnston.
"You get out of your office, you go downstairs, you get in your car,
you drive over, a couple of you, you sit down with 4 other people and
you talk about matters of nat'l security and there is not one shred of
evidence to support the existence of that meeting," he said.
Another Liberal Sen, Santo Santoro, says it is incredible there is no
record of the meeting.
"It's just highly unusual that busy people, key people in
organisations have got no record of a meeting," he said.
The ONA has told the committee it stands by its recollections and it
now keeps track of all meetings.

Abbott hopeful of quick passage for prescription drug Bill
Canberra.  Fed Health Min Tony Abbott says he expects legislation that
will raise the cost of prescription medicines will pass the Parliament by
the end of the week.  The Opp'n has decided to support the Govt's
plan to increase the cost of subsidised drugs by $1 for pensioners and
concession card holders, and by $6 for others.  Labor has opposed the
measure since the Govt 1st announced it in May 2002, but now says the
savings from the changes will help pay for its election promises.  Mr
Abbott has told the ABC's Lateline, the Govt has waited more than 2 y
for the Opp'n's support.  "We obviously want to get the legislation
through after 25 m of procrastination and confusion from the Labor
Party but we've got a lot that needs to go through the Senate this wk we
certainly will get this through the Senate this wk but whether it's
tomorrow, the day after I just don't want to say at this point," he said.

Abbott accuses Latham of "left-wing Hansonism"
Canberra.  The Fed Health Min has accused the Opp'n Leader of
practising a form of "left-wing Hansonism".  Tony Abbott says voters
are starting to see through Mark Latham's messages about childhood
obesity and the importance of reading to youngsters.  What they REALLY
want, said Mr Abbott, was a strong flag pole and $600 in the pocket
before the next elections.  Mr Abbott has told Lateline, the Labor
leader has released ill-conceived policies and is not a credible
alternative Prime Min.  "Basically Latham is practising a form of
left-wing Hansonism, he is listening to focus group polling and everything
that people have a grizzle about he's striking a pose on," he said.

Senate support for FTA legislation still unclear
Labor awaits the Senate report into the FTA.
Canberra.  The Fed Opp'n will vote for legislation supporting the free
trade agreement with the US in the lower house but could oppose the
bills in the Senate.
The 1st of 2 parliamentary reports into the deal will be released this
morning.
The Parliament's treaties committee received over 200 submissions and
held hearings in most capital cities.
Today it will release its findings into the benefits of the trade deal
struck with the US.
Tomorrow the Senate inquiry also looking at the agreement will table an
interim report.
Its final report is due in Aug.
Labor has been under pressure to say whether it supports the deal or not.
To force the ALP into declaring its position the Govt will introduce
legislation supporting the agreement today.
The Opp'n has decided to vote for the FTA in the House but wait until
the Senate inquiry releases its findings in Aug before making a final
decision on passing the deal in the Senate.

Senate hitch faces US free trade bill
Govt will introduce FTA bill to Parliament.
Canberra.  Labor has agreed to pass the legislation for a free trade
agreement (FTA) with the US in the House of Representatives, but will
not decide what to do in the Senate until a committee report in Aug.
A fed parliamentary committee tabled its report on the free trade
agreement (FTA) with the US today, finding the deal is in the nat'l
interest.
Labor members on the Treaties Committee have filed a dissenting
report, saying not enough time was given to consider the impact of the deal.
They claim the report was rushed so the Govt could introduce its
legislation to support the FTA into parliament today.
Trade Min Mark Vaile has told Parliament the bills must be passed
without delay or amendment, or massive economic benefits will be lost.
"This is the most liberal agreement on services and investment the US
has ever done. How could we reject it?" he said.
Labor members like Kim Wilkie say they have not had the time to
determine that.
"The inquiry has been exceptionally rushed," he said.
Labor has also ridiculed economic analysis of the deal showing AUS
will receive $bns in benefits.
Democrats Leader Andrew Bartlett does not want the laws rushed through
the Senate.
"We'd be voting against any legislation that would enable the
agreement to be enacted," he said.
Parliament committee chairman Andrew Southcott, who is a Liberal MP,
says AUS will benefit.
"There has been a wide debate on economic models," he said.
"Economic models depend on the underlying assumptions but the
important thing is, the main thing is, this figure is positive.
"The committee has concluded that AUS will receive a positive economic
benefit from the US free trade agreement."

ALP members defend backflip over PBS
Canberra.  The minor parties are continuing to express dismay at the
fed Labor Party's decision to support cost increases for prescription
drugs.  Opp'n MPs are defending the move and one even thinks more Govt
legislation should now be passed.  After 2 y of resistance, the Labor
Party says it will now support Govt legislation to allow the cost of
subsidised medicines to rise by 30%.  It will deliver the Govt more
than $1 bn over 4 y and Labor says that will help pay for its election
promises.  Opp'n MP Roger Price now wants Labor to reconsider other
legislation it is blocking in the Senate, including stricter
requirements for Disability Support Pensions.  "I think we should look at
everything that we've held back in the past," he said.  The minor
parties have been left furious by Labor's back down.  Greens Leader
Bob Brown said that it was "incredible bad social policy".  The
Democrats agree as does independent Sen Meg Lees.  "Whoever the
strategist is that thought this up should be sacked."

Search continues for bodies of murder victims
Melbourne.  Vicn Police are searching the home of a Mornington man who
was last night charged with murdering his wife and 2-yo daughter.
John Miles Sharpe, 37, had maintained his innocence after the
disappearance of his wife Anna Marie Kemp and 2-yo daughter Gracie
late in Mar.  Police have failed to find them in searches of a lake
and nature reserve in the area.  Last night police told an out of
sessions court Sharpe had made full and frank admissions to killing
his wife and daughter and he will appear in the MEL Magistrates Court
this morning.  Police are continuing to look for the bodies and are
this morning digging up the backyard of the couple's home.

WA Nats alarmed over police holding cells
Perth.  The Nat'l Party in WA says the safety of the public and police is
being put at risk by sub-standard holding cells in regional police stations.
Deputy leader Terry Waldron told State Parliament that 21 country
police stations in WA have been deemed to be in need of urgent upgrades.
Following the Deaths in Custody Royal Commission, prisoners in cells
that do not meet certain standards must be under constant watch.
Mr Waldron says only 25% of cells in rural WA comply with "safe cell"
standards.
"Prisoners when they're held in a cell have to be watched constantly,
and when there's only one policeman and he has to do other duties we
have a case of prisoners being held in front offices of police
stations and surely this is dangerous to police themselves and to the
general public," he said.
The police union says for y it has been calling on successive govts to
fix the problem, but they have ignored the deaths in custody recommendations.
Union president Mike Dean says many country stations, particularly
Port Hedland, Esperance and Carnarvon are not up to scratch.
"I received some photographs today of water coming through the ceiling of
flooded cells in Port Hedland, that's a disgrace," he said.
"Right across the state, particularly in country areas, go and have a
look at the cells, you will be outraged."

Man fronts court for murdering wife, daughter
A Mornington man accused of murdering his wife and toddler has
appeared in a MEL court.
Melbourne.  John Myles Sharpe, 37, of Mornington, S of MEL, is charged
with murdering his 41-yo wife Anna Kemp and 2-yo daughter Gracie
Sharpe in Mar this y.
It is alleged he admitted killing his wife and then his daughter four
days later as they both slept.
Their bodies have not been found.
Mr Sharpe appeared in an out-of-sessions court hearing last night and
has appeared again at the MEL Magistrates Court where the prosecutor
sought a longer time period to prepare the brief of evidence against him.
He says the court the case was very much circumstantial and further
investigations were needed.
Mr Sharpe has been remanded in custody to reappear in court in Nov.
Meanwhile police are continuing their search for the bodies of Ms Kemp
and her daughter.
Police have been at the Sharpe family home in Princes Street since
early this morning and have closely examined the front and back
gardens of the house.
A truck full of digging equipment is outside and 2 german shepherd
dogs are also being used to help find the bodies.
Police are also searching a local tip.
It has now been 3 m since Ms Kemp and her daughter Gracie disappeared,
and earlier searches of a local lake and nature reserve have failed to
find any trace of them.

Dams threaten world's largest rivers: report
NY.  A new report warns that indiscriminate dam building is
threatening the world's largest and most important rivers.  The
Worldwide Fund for Nature has identified more than 20 rivers that it
says are at risk including the Yangtze in China, the La Plata in South
America, and the Tigris and Euphrates in the Middle East.  The report
says more than 60 % of the world's 227 largest rivers have been
fragmented by dams, which has led to the destruction of wetlands and
the forced displacement of tens of mn of people.  It concludes that
the benefits that dams provide, such as hydropower and irrigation, are
often overtaken by negative environmental and social impacts.

{{
Midnight.
A car bomb has exploded in Baghdad, killing at least 2 people.

The biggest study on the health effects of smoking has been published in
the BMJ.  The study is based on 50 y of data.  It finds cigarette
smoking is riskier than prev thought, and smokers die on average 10 y
earlier than others.  Researchers say the study shows about 1/2 of
regular smokers die of a smoking-related disease and that stopping --
even at the age of 60 -- is beneficial.

Amman. Jordan says it will do its utmost to secure the release of a 33 yo
Korean hostage in Iraq.  A high-powered delegation from Korea
arrived in the Jordanian capital Tue. In Apr, Tokyo sent a hostage
team and diplomats to Amman. Jordan helped negotiate the release of 3
Japanese hostages, but the details have remained unclear.

0.15 am
Congo. A rebel DRC General has led 305 soldiers across the border into
Rwanda.  Earlier in the m Gen Nkunda and another rebel officer took
control of Bakuvu.  He crossed into Rwanda today after being
outnumbers by DRC troops.  He'd also tangled with UN forces earlier.
Another dissident general remains at large.  Congo accuses Rwanda of
being behind the insurgency.  Rwanda denies the charge.

China is the world's 2nd-biggest importer of oil -- after the US.
Nevertheless, it's suffering widespread blackouts.  Power demand is up
15% on last y, and it looks like being a long, hot summer.  Beijing is
thinking up a raft of measures to use less electricity.  It estimates
a/c consumes about 14% of power in the cities.  The govt has limited
the temp they can set their units to.  In Shanghai, the govt says
temps are to be set no lower than 26 C.  In Beijing officials have
been more lenient -- temps can be set to 23 C in hotels.  But these
are short-term measures.  In the longer term, the govt plans to
generate 10% of the nation's power from renewables by 2010.

5 am
Militants have executed a hostage in Iraq.  Korean officials have
confirmed the body of a 33 yo translator has been found in
Fallujah. Insurgents had threatened to behead the hostage unless Korea
withdrew its troops from Iraq.

6 am
In a video to the Korean govt, an Iraqi militant group says it had
warned the Korean govt it would execute a hostage, but it had not
listened. The statement said the Korean troops stationed in Iraq were
not there to serve the Iraqi people, but to serve the interests of America.

Wall St has bounced back at the close to finish in positive territory.
The Dow ended up 24.  The tech-heavy Nasdaq was 20 pts higher.  In
London, the FTSE closed down 34 pts.  Gold is $1 higher at $US395.50/oz.
Oil is trading at $US38.11/bbl. The AUD is trading lower at 68.68 US c.

Iran has again hinted it could soon release 8 RAN sailors and marines.
An official said the group could be released if interrogations show
they didn't have "bad intentions".

A Newspoll has found most Aussies want troops to remain in Iraq.

Housing affordability in AUS has slumped to historic lows.

2 Ukrainian seamen have claimed they were tortured in Baghdad's
notorious Abu Ghraib prison.

State govt's have slammed the Fed Govt for tying $32 bn in funding to
schools flying Australian flags.

Parliamentarians have been warned not to shout because it might damage
the hearing of Hansard reporters.

7 am
All they do is to get people killed.  That summed up Ted Smout's
opinion of all wars.  The forthright WWI digger died overnight, aged
106.  After refusing for ys to allow anyone to write his life story, he
relented last y, with his younger 94 yo brother penning his
biography.  Onya Ted.

PM John Howard has hinted the Fed election is some ms away.  After
prev hinting at an election date as early as Aug 7, recent polls
showing the Opp'n retaining the lead despite a massive spending and
"government information" ad campaign have warned Mr Howard from going
early. An election is due by Nov this y.

The Israeli military says it's killed 2 Pal militants.  Pals say a
civilian was also killed in the cross-fire.  The army says snipers
opened fire on 2 Pal who were about to fire missiles on an Israeli
settlement.  Israel security has also charged a Palestinian policeman
with helping militants carry out a co-ordinated attack in Haifa in Mar
that killed 10 people.

10 am
A poll shows the Fed Govt is gaining support for its policy to keep
the Aussie troops in Iraq.

An Iranian military official has said 8 Brit sailors seized in Iranian
waters could be released soon, if investigations show their incursion
was not ill-intended.

Lawyers representing Guantanamo Bay detainees, including Aussie David
Hicks, are claiming harassment by the US govt.

S Korea has condemned the beheading of a S Korean hostage by Muslim
militants in Iraq as an "inhumane act of terror" and vowed to go ahead
with plans to deploy 3,000 more troops to the country.

The Fed Opp'n has released details about how it plans to respond to
the Govt's legislation supporting AUS's free trade agreement (FTA)
with the US.

The Fed Opp'n will vote for legislation supporting the free trade
agreement with the US in the lower house but could oppose the bills in
the Senate.

The US is holding terrorism suspects in more than 2 dozen detention
centres worldwide, about half of which operate in total secrecy,
according to a new human rights report.

The mysterious "20th hijacker" believed to be missing from the group of
terrorists that took control of US passenger airplanes on Sep 11,
2001 is being held in Guantanamo Bay, The NY Times reported today.

US officials have vastly overstated the intel value of the nearly 600
detainees being held at the US naval base in Guantanamo Bay, according to a
NY Times report.

US Def Sec Donald Rumsfeld approved the use of stress positions,
hoods, forced nudity, and dogs to instill fear during interrogations of
prisoners at a detention centre in Guantanamo Bay, Cuba, in Dec
2002, newly released secret documents show.

Midday.
Social welfare groups are continuing to criticise the Fed Opp'n for
backing down on the Howard govt policy to hike PBS fees 30%.  Catholic
Welfare says the rise will hit below-average income families the most,
where prescription drugs account for 9% of household income.  In
well-off households, drugs account for about 2% of household income.
Reps for welfare groups say even the Opp'n remains divided over the
controversial move.  Walking around parliament, some ALP MP's are
shrugging, asking what can they do -- others are hurrying by, refusing to
meet eyes, apparently contemplating imperfections in the flooring.
While Opp'n reps say Labor could reverse the policy when they get into
govt, observers say the decision appears to be set in stone.  Mr
Latham and other snr ALP MP's yesterday indicated the hike was needed to
fund tax cuts and other spending for middle income families.

The Fed Govt has rejected key recommendations from a Productivity
Commission investigation into the housing market.  The govt's had the
report for ms.  Treas Peter Costello released it this morning.  He
immediately rejected 2 key recommendations from the report.  The
Commission had urged a review of tax and negative gearing applying to
housing investment, saying it had a tendency to increase speculation
and overheat the market.  The report also recommended the govt's first
home buyer's grant be targeted at poorer families.  At present there's no
means test.  Mr Costello told a press conf govt policy on the 2
points would [could?] not change.

MEL. Prem Bracks has announced Vic will be under permanent water
restrictions from this y.  He also announced the cost of water will
rise about 5%, to cover investment in water recycling and other water
saving measures.  The Prem said the moves were necessary to secure
the state's water supplies into the future.

The reconstruction of Dresden has officially been completed.  During
1944, allied aircraft dropped 1000s of fire bombs on Dresden, leading to a
fire storm that destroyed almost the whole city.  Today, the
outside work on Dresden's cathedral has been (re-)completed.  Work
will continue for some time on the inside.

6.30 pm
Iran has ordered the release of 8 Brit Navy personnel who accidentally
strayed into its waters.  Tehran has backed away from threats to send
the group to trial.

A US soldier at Guatmo says he was bashed by guards while he posed as
a detainee.  He had been asked to enter a cell and pose as a prisoner
for a training exercise, but was beaten up -- suffering a traumatic
brain injury -- when mistaken for a real prisoner. The beating only
stopped when he managed to convince the guards he was a soldier.  Spc
Sean Baker's account appears to directly contradict a number of
selectively released memos from Def Sec Rummy.  A month after
approving harsh methods, incl the use of dogs and stress positions, he
rescinded them in favour of softer methods.  The Bush Admin says the
memos show limits were placed on interrogation techniques.  Snr Sen
Patrick Leahy (D-VT) says the release is self-serving and selective.

The Bush Admin is still apologising for its bungled report on world
terrorism. On Apr 29 Armitage said the report was proof the US was
winning its war on terror. But the real data shows the number of
deaths from terrorism in 2003 were twice the number stated in the
report. Despite admitting yet another humiliating intel bungle, Sec
Powell had said earlier this wk the report was "not off by a wild amount".

PM Howard has indicated he might reprise his "fridge magnet" campaign to
remind Australians before the Fed election to hate anyone that
looks like a damn non-white foreigner.  Mr Howard was speaking at a
business conf today.  A-G Ruddock also attended, sporting a black
eye. He claims it was down to an accident at a friend's house.

A Senate committee is worried that all records of a meeting discussing
intel relevant to threats in Indonesia prior to the Bali bombing have
"disappeared". While some ONA officers ONA say they definitely met
with DFAT officials, neither organisation seems to have kept any diary or
other records of it.  DFAT and ONA have now promised to keep
accurate diaries on their meetings.  The Senate is investigating
whether intel warning of an imminent attack on the tourist haven might
have been overlooked.  The attack killed more than 200 -- 88 of them Aussies.

In a nat'l broadcast, the Bosnian Serb govt has admitted to the murder of
1000s of Muslim men and boys in Srebrenica.  The PM said Karadic
and Mladic might be pursued, because the Serb nation couldn't be
expected to "loose face" because of 2 renegades.

One person is dead and 40 are missing, feared drowned, after a tourist
boat carrying 70 passengers overturned on a reservoir in Hunan prov
last night.

The Opp'n has allowed the govt to introduce an FTA bill into the lower
house today. Unions are angry that Labor doesn't now oppose the leg'n
at every move. The Democrats also say the introduction could be a
means of paving the way for another roll-over.  Mark Latham says Labor
will kill the bill later in the Senate, if an investigation shows it
isn't in the nat'l interest.

7 pm
Iran's FM has indicated its brit prisoners will be released later today.

9.30 pm
The 8 Brit navy team have been released by Iran.  After an uncertain 2
days, held at an uncertain location, Tehran has backed away from
earlier statements it would send the men to trial. The men's public
contrition on Iranian TV seems to have convinced the authorities their
incursion was accidental. The Brit govt has refused to discuss why
some of the weapons seized by Iranian guards were the type issued by
US forces for special ops.

S&P has indicated News Corp must be removed from Aussie share market
indexes if the company is listed on the NYSE.  Because indexes are
used as a measure of performance for institutional investors, a
sell-off is expected to be sparked by News Corps removal.  A number of
large investors are expected to block the move.  But News tonight said
its move to America will go ahead. A vote of shareholders will take
place later in the y.

Jordan-born Abu Musab al-Zarqawi, who is believed to have ties to
al-Qaeda, has reportedly threatened to kill the Iraqi PM.  In a tape
on an Islamic web site announcing the beheading of a Korean hostage,
the terrorist leader said his group was targeting Mr Allawi, who he
said was a puppet of the US.

10 pm
A US judge has allowed the largest class action of its kind to go
forward.  1.6 mn women are suing Wal-Mart for sex discrimination,
claiming women are payed less and have fewer promotions than men in
the company's stores.  Wal-Mart will defend the action, saying
discrimination could not have been systemic because hiring policies
vary from store-to-store.

A choking haze is again covering the island of Sumatra, spreading as
far as Singapore, as farmers and others conduct the annual burn-offs
across Indonesia.

10.30 pm
About 1,500 people tonight are holding a candlelight vigil, blaming
the Korean govt for the death of Kim Sun-il in Iraq.  Kim's family
says the govt didn't do everything it could to save their son. Kim's
father has called to bury him at the Foreign Ministry.

11 pm
Oil is firmer at $US38.35/bbl.

11.30 pm
Iraq says it's taking seriously a threat on the life of PM Allawi by
the local al-Qaeda leader Abu Musab al-Zarqawi.  A statement on a
militant web site said a "deadly poison and a sharp sword" were being
prepared for the Iraqi PM.

Russia says the death toll from Mon attacks by Chechen rebels across
Ingushetia has risen to 92.  Interfax quotes the Dep PM of Ingushetia
as saying more than 60 others were wounded.

Amnesty International has criticised Russia's human rights record in
Chechnya. It says Russian forces continue to raid civilian homes in
the rebel state, despite orders from Pres Putin that they cease. AI
says 1000s of civilians have been disappeared in Chechnya. And those
that are taken by Russian forces and later released often speak of
torture and rape.
}}
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