From the World-Wide Resourses of the Western Australia Reserch Senter(*) OIL THE NEWS THAT FITS MY VIEWS #213 =============================== In the Run-Up to World War III, Reliably Reporting the News Relevant to Extreme Right-Wing Democratic Socialists Everywhere (validated for RiteThink(tm) by the Office of Our Man in Can-berra). Our Home Page: The Undeniable Evidence: Even More Uneniable Evidence: US Centcom News Releases: Iraqi Body Count: [9,211 as at 02 Jun 2004]. UN Mailing List: Some Of The News, Some Of The Time: This Stuff Blogged: Also Kindly Archived: ------------------------------------------------------------ Selecting latest news stories and other data for you... ------------------------------------------------------------ I don't like it when the values of... my country... are misunderstood, because of the actions of some of our people overseas. -- Pres Bush Jr, 26 Jun 2004. ... or in Washington. Propaganda should be paid for by political parties... not the Australian taxpayer. -- Opp'n leader Mark Latham, 27 Jun 2004. The Howard govt has reserved the "right" to bring out its "fridge magnet" campaign before the nat'l election. America is feeling wounded... about how the war in Iraq has gone so wrong. It's... sensitive... about allies who would turn their backs on the US in their time of need. -- NSW Prem Bob Carr, 25 Jun 2005. The NSW Prem has warned Opp'n leader Mark Latham about ordering an Aussie military pull-out from Iraq if Labor wins the election. We're here to farewell the PM. Farewell PM... see ya later. -- Opp'n MP, 26 Jun 2004. A rare Sat sitting has sparked speculation the Howard govt is getting ready for an early election. ---------------------------------------- Sat, 26 Jun 2004. HEADLINES: Scores killed in Yemen clashes 2 US Marines killed, one wounded in Afghanistan Up to 25 killed in Iraq air strike Oil prices slide on Norway news Wary S'pore firms shelve plans for Iraq US names replacement Iraq abuse investigator Patten worries violence could tear Iraq apart Nasdaq escapes Iraq-induced stock falls NATO strikes tentative Iraq security deal NATO nears agreement on Iraq troop request Majority of Americans say Iraq war a mistake -- poll Iraqi Shiites condemn "filthy infidel" terrorists Iraq's govt face factions, past history, come hand over Headless bodies found in Iraq Bush looks to Europe for help in Iraq Bin Laden had contact with Iraq: report ACF urges states to go it alone on green energy ALP warns of water deal pork barrelling AUS Parliament holds rare Sat sitting Annan pushes for more NATO troops in Afghanistan Blair made personal plea for Guantanamo releases: report Brit labels US military trials as "unacceptable" Bush Administration lied about secret Saudi flight Call for larger Afghanistan force Canada leaders make pitch as deadlock looms China 2008 Olympics in midst of graft scandal Confusion surrounds Istanbul airport bomb claims Consumers warned of Internet shopping dangers Court rules Princess entitled to privacy Czech survives 10 days buried alive in coffin Deadline to revive N Ireland power deal set Explosions heard in Baghdad Garrett to address Young Labor conference German men told to have more sex and "take the consequences" Hitler becomes US campaign issue Identification-to-enrol law passed Iran accused of resuming uranium program Irish rally against US policies Jackson judge says fair trial 'difficult' Latham must tread lightly with US: Carr Most troops to leave "stable" Solomons No breakthroughs in N Korean nuclear talks No corruption charges laid against drug squad Online retailers strip customers' rights: ACCC Quarterly growth slashed, inflation up Screened US animal positive for Mad Cow Soldier claims cmdr present at death of Abu Ghraib prisoner Stuck switch caused spacewalk problems: NASA Sudan denies Darfur in crisis Tasmanians at higher cancer risk The Murray River is to get an extra 500 GL of flow. UN demands access to terrorism suspects UN denounces Israeli-Palestinian violence UN rights envoys seek access to prisoners of US US Democrats preview Moore's 9/11 US investigates suspected mad cow case US strikes 3rd Zarqawi "safe house" Web surfers' passwords, bank details vulnerable Winds hamper hot air balloon championships Friendly dog prevents killing spree? Canada's killer whale relocation bid in limbo Oil prices slide on Norway news NY (AFP). World oil prices dropped in relief after the Norwegian govt halted an oil industry strike in the world's 3rd-largest exporter. NY's benchmark contract, light sweet crude for delivery in Aug fell 38 c to $US37.55. Brent N Sea crude for Aug skidded 33 c to $US34.97. "The end of the Norway strike was part of it," said Fimat USA market analyst Mike Fitzpatrick. Also, many traders now believed that US commercial crude oil inventories were large enough to justify a drop in prices, especially with more petrol on its way from Europe, Fitzpatrick said. "These are hard facts to ignore," he said. The Norwegian govt intervened to halt a week-long strike by enforced mediation between unions and employers. "The dispute on the Norwegian shelf is over," the Labour and Social Affairs Min'y said in a statement. "In parallel, it has been decided that continued strike action and the lockout are prohibited," it said. The trade union Oljearbeidernes Fellessammenslutning (OFS) had threatened on Wed to step up action from midnight on Sun. The move would have cut a quarter of Norway's daily output of about 3 mn barrels per day. Employers announced plans to lock out striking workers. Commerzbank analyst David Thomas said the market was also reassured by the prospect of the Organisation of Petroleum Exporting Countries boosting output on Aug 1 despite a recent fall in world prices. At a meeting on Jun 3, OPEC decided to raise its output ceiling to 25.5 mn bpd on Jul 1 and to 26 mn bpd from Aug 1 to try to push down high world prices. "There are talks going on about OPEC invoking their 500,000-barrel-a-day production increase from Aug. That is easing concerns about supply," Thomas said in London. "Pressure is still on OPEC to follow through on its commitment to put more oil" on the market. Traders worried about the potential for more attacks by insurgents in Iraq in the run-up to the planned Jun 30 transfer of power to an interim govt in Baghdad. Quarterly growth slashed, inflation up Washington (Reuters). The US economy grew much more slowly than previously thought in the 1st quarter and inflation was higher, a govt report showed on Fri. Separate reports, however, showed consumer sentiment rebounding in Jun and a jump in sales of existing homes in May -- likely fuelled by a rush to lock in low interest rates before a probable Fed Reserve rate hike next wk. The Commerce Dept surprised economists with a downward revision to first-quarter gross domestic product, cutting economic growth to a 3.9% annual rate from the 4.4% reported a m ago. Wall Street analysts had not expected the Commerce Dept to change the GDP estimate. While 3.9% is still a solid pace, the revision cut GDP -- which measures all output within US borders -- to below the 4.1% seen in the last quarter of 2004. The govt also ratcheted up a key gauge of inflation in the GDP report, confirming an acceleration in price rises that has fuelled expectations the Fed Reserve will begin raising interest rates from their 1958 lows next wk to head off inflation. The core price index for consumer spending -- a favourite of Fed Chairman Alan Greenspan that cuts out volatile food and energy prices -- gained at an annual rate of 2.0% in the quarter, a bump up from the 1.7% reported a m ago. "It is a bit surprising that inflation was worse and consumption was up less," said Mark Vitner, snr economist at Wachovia Securities. He said the worst in the run-up in inflation may already be past, however, with stronger real growth and lower inflation likely in the 2nd 1/2 of the y, and should not prompt an aggressive run of interest-rate hikes. "In terms of the Fed, they have to start raising rates but this report does not shout out for a 1/2-point hike. They can still move at a measured pace," Vitner said. Widespread signs of strength in the economy have cemented expectations the Fed will raise rates by a quarter of a point from 1% after a 2-day meeting on Tue and Wed. Bond prices, initially torn over whether to react to slower growth or higher prices in the GDP report, ended higher as investors sought safety ahead of Pres Bush 's visit to Turkey for a NATO summit. Blue-chip stocks finished in the red, hurt by uncertainty over the interest-rate future and Iraq, while the technology-rich Nasdaq composite gained on strong home sales and consumer sentiment data. The dollar rose. * HAPPY CONSUMERS BUY HOMES The prospect of higher rates pushed home-buyers off the fence and into the market in May, propelling sales of existing homes to a record high, while consumer sentiment climbed this m, 2 reports also out on Fri showed. The University of Michigan's final survey of consumer confidence for Jun showed its sentiment index rose to 95.6 from 90.2 in May. Economists polled by Reuters had forecast a rise to 95.5 with increased optimism due to an improved employment picture, healthy economy and a dip in lofty gasoline prices. A separate report showed home resales jumped unexpectedly by 2.6% to a record high in May as mortgage rates remained relatively low. The Nat'l Association of Realtors said sales of previously owned homes rose to a seasonally adjusted annual rate of 6.80 mn units in May from a downwardly revised 6.63 mn unit pace in Apr. "Various signs of macroeconomic activity point to a very robust economy. That provides greater confidence to consumers. If families feel financially secure, they are much more likely to go out and put down money for a big-ticket item like a house," said Frank Nothaft, chief economist at mortgage finance company Freddie Mac. The Commerce Dept said the reduction in its final assessment of first-quarter economic growth resulted from a sharp upward revision to imports -- which subtract from GDP -- and a downward revision to the amount consumers spent on bank services. In its final snapshot of the first-quarter economy, the dept said after-tax corporate profits rose 2.1% from the 4th quarter, a sharp upward revision from the 1.4% reported a ma. Still, the climb was well below the 7.6% rise notched in the final 3 m of 2003. Nasdaq escapes Iraq-induced stock falls Tech shares finished stronger in Fri trade but overall, shares were lower. NY/Sydney. Technology stocks ended higher on US markets in trade overnight, as investors nibbled at companies like Ciena Corp Investors also eyed strong home sales and consumer sentiment data but nagging uncertainty about interest rates and Iraq weighed on the Dow and the Standard & Poor's 500. A report showing the US economy grew at an unexpectedly slow pace in the 1st quarter of this y surprised Wall Street. But the report has been offset by the other upbeat economic news. Many analysts say the 3.9% annual rate, which was revised from 4.4% a m ago, is still healthy. Investors are fixated on Jun 30, hoping the day's events will resolve 2 of the market's main worries -- the Fed Reserve's decision on interest rates and the US hand over of power in Iraq. The DJIA fell 72 points, or 0.69%, to 10,372. The Standard & Poor's 500 Index fell 6 points, or 0.55%, to 1,134. The technology-laced Nasdaq Composite Index rose 10 points, or 0.49%, to 2,025. Pfizer dragged on the blue-chip Dow after it announced it would acquire the rights it does not already own to a colorectal cancer drug from Sanofi-Synthelabo for $US620 mn. Its shares fell 99 c, or 2.8%, to $US33.82. Technology shares, including Ciena and Juniper Networks, boosted the Nasdaq as the companies continued to benefit from plans for hefty spending by Sprint and SBC Communications. Ciena rose 8%, or 27 c, to $US3.76. Juniper rose 73 c to $US23.89. Stun gun maker Taser Internat'l surged 19%, or $6.67 to $US42.09. Economic reports were mixed. The final version of the University of Michigan Jun consumer sentiment index edged up further to 95.6, having jumped to 95.2 in the preliminary release from 90.2 in May. Existing home sales for May climbed 2.6% to a record seasonally adjusted annual rate of 6.80 mn units, beating forecasts. * European markets In Europe, shares ended flat as weak drug groups and patchy US and German data countered gains in Credit Suisse. Investors welcomed Credit Suisse's decision to clean up its complex structure after the ousting of co-chief executive John Mack, sending the stock up 2% to 44.9 Swiss francs. Brit's Abbey Nat'l rose 2% to 497 pence, hitting a 4-m high as talk resurfaced that Spain's Santander bank may have renewed interest in taking over its UK peer. Santander shares in Madrid fell 2% to 8.7 euros. Drug groups were mixed, with GlaxoSmithKline falling 1.8% to 1,148 pence after Smith Barney cut its rating on the stock to "hold" from "buy". Rival AstraZeneca slid 2.3% to 2,501 pence on news that a US consumer advocacy group has asked for the Anglo-Swedish firm's cholesterol-lowering treatment Crestor to be taken off the market. The group says the drug can lead to kidney damage. But shares in French merger partners Sanofi-Synthelabo and Aventis bucked the sector's downward trend. In London, the FTSE 100 index closed down 0.20% at 4,494.1 points. In Paris, the CAC 40 eased 0.36% to finish at 3,742.38. In Frankfurt, the DAX gained 0.16% to end at 4,013.35. * Currency markets On the cross-rates, the Aussie dollar is hanging on to the 70 US cent mark as the USD weakened in response to weak economic data. At 8.00 am the Aussie was buying 70.01 US c, 38.34 pence sterling, 57.47 euro c, and 73.33 yen. US investigates suspected mad cow case Washington (Reuters). A US animal may have tested positive for mad cow disease and will be re-tested at a fed veterinary laboratory in Iowa for confirmation. The US Agriculture Dept says animal health officials have reported the 1st "inconclusive" test result for the brain-wasting disease since the Govt began using rapid test kits. The kits were introduced in Jun as part of a program to test more cattle. The faster test carries a greater risk of false positives. The USDA did not say whether the animal is a cow, steer or a bull. "This is not at all unexpected. Screening tests are designed to be extremely sensitive," John Clifford, USDA's chief veterinarian, said. The USDA's animal health laboratory in Ames, Iowa, will retest the animal's brain samples using more sophisticated immunohistochemistry tests, which can take 4 to 7 days to complete. Scores killed in Yemen clashes Sana (Reuters). Yemen says 46 followers of an anti-US Muslim "extremist" cleric have been killed and 35 wounded in clashes with security forces in a siege in a mountainous area of the Arab country. Helicopters, supporting armed forces, have opened fire on various sites in the area during the siege. An Interior Min'y statement says 49 "rebel" supporters of cleric Hussein al-Houthi have also been arrested since clashes began on Jun 20. The clashes started when police tried to arrest Houthi, a Shiite Muslim leader. The ministry says security and military forces are still surrounding Houthi and a "small number of deviant elements". The statement does not mention any casualties among security forces. However, security sources say 7 policemen have been killed and 5 wounded in the clashes in Saada. The Govt has decided to send a delegation to the region to try to persuade Houthi to give himself up in order to stem the bloodshed. The poor country is fighting to root out militants linked to Saudi-born Osama bin Laden's Al Qaeda group. Houthi has not been accused of having links to Al Qaeda. Patten worries violence could tear Iraq apart Brussels. EU External Rels Commissioner Chris Patten said Fri that Europe wants to help US-led efforts in Iraq but worries that deadly unrest could tear that country apart in the coming months. "All of us [in the internat'l community] are worried that violence could lead to Iraq flying apart in the next few months," he told reporters a day before a US summit with the EU. "It's in everybody's interest to work as hard as possible to stop that happening, to enable Iraqis to make an informed choice about their own future and to enable them to get on with the job of [building] a better future." Patten acknowledged that US Pres George W. Bush's decision to invade Iraq in Mar 2003 had sparked "a period of friction" between Washington and some of its European allies, but insisted that was now in the past. "We now recognise in Europe that there is no point in continuing to focus on the passionate arguments about intervention in Iraq," he said during a joint briefing with EU Trade Commissioner Pascal Lamy. "We have a shared interest in America, Europe and rest of the democratic world in trying to ensure that the new Iraq created at the beginning of next m is able to be open, plural, democratic and -- pray God -- stable as well despite the present exceptionally difficult security situation," said Patten. But he also acknowledged transatlantic tensions over the abuse of Iraqi detainees at US-run prisons as well as concerns about the fate of prisoners held at the US base in Guantanamo Bay, Cuba. "Where I think there is a legitimate worry in Europe is whether or not the [Bush] Admin and others are as committed as we are to the application of the Geneva Conventions in all circumstances," he said. "I think once you start hair-splitting about the Geneva Conventions you risk getting into a good deal of difficulty," said Patten. Patten said the EU hoped to help with reconstruction efforts and the holding of general elections in Iraq, but that the violence could abort those efforts. "It's an impediment to anybody's political involvement from the outside just as it's an impediment to reconstruction," Patten said as Bush headed to Ireland for the brief annual summit. The US-led coalition is due on Wed to hand political power over to an interim Iraqi govt that will steer the country to general elections likely to be held in Jan 2005. "We are absolutely determined to give all the support we reasonably can to ensure that the election take place on time in Iraq and be properly conducted," said the commissioner. Patten said the EU wished to provide help with voter education, the establishment of institutions such as electoral commissions, voter lists, political districting, and ways to help monitor the elections. NATO nears agreement on Iraq troop request Brussels (AP). NATO nations moved close to an agreement Fri on giving help sought by Iraq 's interim leader in training his country's security forces, diplomats said. Ambassadors from the 26 allies met through the day to draft a reply to Iyad Allawi's request, which asked NATO for aid in rebuilding Iraq's armed forces after the US hands sovereignty to his govt on Wed. Officials said envoys sent a draft agreement back to their capitals for provisional approval by Sat morning. If no govt raises objections, the agreement should be sealed at a summit of alliance leaders Mon and Tue in Istanbul. Diplomats declined to discuss details of the draft text. NATO officials said earlier that the allies would likely offer Allawi training assistance and issue a strong statement of political support to his govt. An agreement would be a boost for the US, which has pushed for a positive allied response to Allawi's request and wants the summit to back plans to expand NATO's peacekeeping mission in Afghanistan. "The US is proposing currently, this m, the most ambitious use of NATO as a multilateral institution in our call that NATO do more in Afghanistan ... and in our proposal that NATO think what it can do to meet its responsibility in Iraq," said Nicholas Burns, the US ambassador to NATO as talks continued Fri. However, diplomats were working to define the limits of NATO's help. Italy has expressed strong support for Allawi's request, and Germany, which is already training Iraqi police, said it would consider extending its program to include the military. However, Berlin stressed that German instructors would not go to Iraq, preferring to offer training outside the country. Germany and France led European opp'n to the US-led war to topple Saddam Hussein, and have opposed US-backed calls for NATO to send troops to Iraq. However, diplomats said they hoped all the allies would accept the training mission once a sovereign Iraqi govt was in place. "NATO should never slam the door in ... this govt's face," the alliance's Sec-Gen Jaap de Hoop Scheffer said Thu. On Afghanistan, the alliance was expected to approve plans to widen its UN-backed peacekeeping mission beyond the capital, Kabul, and the N city of Kunduz. After m of delays, officials were confident European allies would offer the necessary troops, planes and helicopters to expand the mission to 5 more cities in the north. Afghan Pres Hamid Karzai is due to attend the NATO meeting Tue. The summit is also set to offer a new program of defence cooperation to Middle Eastern nations, agree to hand over peacekeeping in Bosnia to the European Union and set up permanent NATO diplomatic missions in Central Asia and the Caucasus. Wary S'pore firms shelve plans for Iraq Security concerns make them pass up potentially lucrative contracts. Singapore. This week's high-profile killing of a S Korean translator in Iraq has added to growing security concerns that have forced Singapore companies to shelve plans for the $multi bn rebuilding of the war-ravaged country. One casualty is a US$5-US$8 mn deal to provide commercial ground services at Iraq's internat'l airport. It never materialised for a Singapore consortium, which won the contract last Jul. Baghdad Airport has yet to re-open to commercial traffic, even though it was scheduled to last Aug. It is now a US military base. Most companies polled by BT said yesterday one could not be too cautious with human lives at stake. A rep for Singapore Airport Terminal Services (Sats) -- part of the consortium for the Baghdad Airport job -- said that as of now, the group has no plans to be in Iraq. Sats sent 15 Singapore staff there last y to prepare for the work, but all returned before the y was out. "Now, for prudence's sake, we will not go in," the rep said. The Singapore govt warned Singaporeans yesterday to avoid Iraq after Kim Sun Il, who worked as a translator for a S Korean company in Iraq, was beheaded earlier this wk by Islamic militants. "In view of the security situation in Iraq, Singaporeans are advised not to travel or remain there," a Foreign Affairs Min'y statement said, adding that Singaporeans residing or travelling within the region should register with the nearest Singapore embassy or consulate. Mr Kim was beheaded by militants linked to the Al-Qaeda terrorist network after Seoul rejected demands for it to pull Korean troops out of the country. S Korea will be the largest coalition partner in Iraq after the US and UK once it completes the deployment of 3,000 more troops in Aug. The mood is decidedly more sombre with news of Mr Kim's execution. Just a m ago, more than 100 company representatives turned up for a seminar in Singapore on reconstruction opportunities in Iraq. Organised by Internat'l Enterprise Singapore and US Commercial Services, an American govt agency, it was then reported that US$13 bn out of the US$18.4 bn set aside by the US Congress for the reconstruction of Iraq would be spent on construction alone. An IE Singapore rep said yesterday: "We are keeping in touch with the companies and the timing is not right. We will continue to keep a close watch on the situation." For most Singapore businessmen, the killing of an Asian and the heavy publicity have brought the reality nearer home. Last month, militants beheaded US hostage Nick Berg in Iraq and in Saudi Arabia last wk, another American, Paul Johnson, was decapitated after his captors' demand for the release of fellow Al-Qaeda militants went unmet. Aw Leng Hwee, MD of listed construction group Hor Kew, which was in talks recently for a project in Iraq, told BT that it wasn't worthwhile now. The group, he revealed, had once even considered making Iraq, together with the Middle East, part of a key growth strategy. "We have to think twice now and our staff have already said they will not go anyway," Mr Aw said, adding that Hor Kew usually sends about 5 staff from Singapore for an overseas project in the beginning. Another veteran contractor noted, too, that with Singapore being a supporter of the US-led military coalition in Iraq, "nobody can tell what might happen". But there are some who are still gung-ho. John Lee, executive chairman of listed Dayen Environmental, believes that "chaos won't last forever". His firm was among those who participated in IE Singapore's business seminar on Iraq last m. "Some interested companies in Iraq have been calling us to do projects, and some of our partners in China have also asked us about it ... I hope the situation will be better in 6-9 m, though it's very difficult to say for sure," he told BT. "By then, Dayen would be one of those willing to run the risk even if there are not many companies who would." But what if there are still no staff willing to go? Mr Lee said: "We'll have to find new staff then. It may not be substantial business but you just cannot ignore business." Call for larger Afghanistan force UN (AP). UN Sec-Gen Kofi Annan has called on NATO to keep its promise to send more troops to Afghanistan, saying plans for the nation's 1st free elections are threatened by mounting violence. Annan's plea came as Afghan Pres Hamid Karzai prepares to attend a NATO summit Tue in Istanbul, Turkey. Annan said preparations for the Sep ballot in Afghanistan are proceeding smoothly but that instability is preventing UN workers from travelling freely. "If we can get the security situation under control we should be able to hold the elections in Sep, but there is a big but -- we don't have enough troops on the ground," Annan told a news conference Fri ahead of his departure for a tour of the Middle East, Africa, Asia and Europe. "The American and NATO forces on the ground need to help us and work with the govt and the warlords in the regions to assure security," he said. Insurgents have vowed to sabotage the vote, seen as crucial to Afghanistan's rehabilitation after a quarter-century of war. NATO has 6,400 peacekeepers in Afghanistan, but they are confined to the relatively safe capital Kabul and the N province of Kunduz. "There are places in Afghanistan our staff cannot go to, even places that we thought had been safe once," Annan said. Internat'l aid groups warned this wk that the NATO summit opening Mon may be the last chance for the internat'l community to commit itself to providing the firepower needed for guaranteeing security in Afghanistan. Iraq tops US Pres George W. Bush's agenda. but he is also expected press for an expansion of NATO's peacekeeping mission in Afghanistan. In Afghanistan, Karzai on Fri met with the visiting Gen James Jones, NATO's top operational cmdr, and reiterated his intention to hold the vote on schedule. He urged NATO to boost its current 6,400 peacekeeping force as promised, so Afghans "can go to the ballot box without fear," presid'l rep Hamed Elmi said. NATO officials have expressed confidence that after m of delay European allies would offer enough troops, planes and helicopters to expand the mission to 5 more cities in the north. The US has promised to crush insurgents with a carrot-and-stick approach: Stepped-up military operations along with reconstruction aid aimed at prodding villagers to provide info on enemy movements. But the military has been unable to halt violence that has killed more than 500 people so far this y. Most troops to leave "stable" Solomons Most Aussie troops will leave the Solomons by Aug. Canberra. AUS is about to withdraw most of its remaining contribution to a regional force aimed at restoring order in Solomon Islands. The Govt began withdrawing troops involved in the Regional Assistance Mission to the Solomon Islands (RAMSI) last y. It now feels the Solomons are stable enough to bring home most of the remaining troops by late Aug. The regional force has made more than 3,000 arrests and destroyed more than 3,500 guns since landing in the Solomons last Jul. The Fed Govt says the force has made considerable progress in restoring order and the focus is now on training police and setting up a judicial system. But Justice Min Chris Ellison says the country is not yet stable enough for the entire Aussie Defence Force (ADF) contingent to leave. "We still need that ADF component to back up the police, albeit in a much reduced capacity," he said. AUS sent about 1,700 troops to Solomon Islands in Jul last y. By Aug, about 100 troops will remain in the country. The deployment will be supplemented by troops from each of the contributing nations, including NZ, Fiji, PNG and Tonga, as required. Majority of Americans say Iraq war a mistake -- poll Washington (PolitInfo). A new poll shows a big swing in US public opinion against the war in Iraq this m, with a majority of Americans now saying they believe the US made a mistake in sending troops to Iraq and the war there has made the US less safe from terrorism. 54% of those who took part in a survey conducted Jun 21-23, 2004 by the Gallup polling organisation for CNN television and the newspaper USA Today say US military involvement in Iraq was a mistake -- the 1st time that opinion has been expressed by a majority of Americans. The Gallup poll asked the same question on 6 earlier occasions since Mar 2003. During the 1st days of the war, 75% of Americans said they felt US military action was the right course; since Oct, between 40 and 44% of those polled have said the US military involvement was a mistake. Also for the 1st time a majority (55%) of the interviewed Americans say that the war in Iraq has made the US less safe from terrorism. The Gallup poll indicates the 2004 race for the White House remains very close, even though Pres Bush appears to have picked up some support in recent wk at the expense of his expected Democratic Party opponent, Sen John Kerry. The new survey has the pres leading Sen Kerry by 48 to 47%. 3 wk ago, Sen Kerry had a 6-point lead in the same poll. On the campaign trail in California this wk, Sen Kerry derided Pres Bush's promise of 4 y ago to unite the country. He said Mr Bush was "the greatest divider as a president in the modern history of this country." "Above all, what leaps out at me is the thirst among Americans for leadership that really wants to bring people together and find solutions," he said. Other Democrats are also stepping up their criticism of the president. In a speech in Washington, former VP Al Gore, the man who lost to George Bush in the 2000 election, accused the president and VP Dick Cheney of exaggerating pre-war links between Iraq and al-Qaeda. "If Iraq had nothing to do with the attack or the organisation that launched the attack against us, then that means the president took us to war when he did not have to," he said. The latest US polls suggest that Iraq and the domestic economy will be the crucial issues in the Nov election. Hitler becomes US campaign issue Washington (AFP). Adolph Hitler broke into the US presidential campaign with Democrats and Republicans trading charges over the use of the Nazi dictator's image in bitter attack ads. The row broke out over a new television spot aired by Pres George W Bush's campaign that twice shows Hitler in a compendium of clips that brands Whitehouse challenger John Kerry and his Democratic allies a "coalition of the wide-eyed". Kerry campaign rep Phil Singer issued a statement calling the images "remarkably insensitive" and "hateful," and adding, "The use of Adolph Hitler by any campaign, politician or party is simply wrong". "They are trying to convey a comparison between Sen Kerry and the Democrats and Hitler," Singer said, demanding that the Bush camp immediately pull the ads and issue an apology. "The fact that George Bush thinks it's appropriate to use images of Adolph Hitler in his campaign raises serious questions about his fitness to spend another 4 y in the Whitehouse," the rep said. But Bush campaign rep Terry Holt denied any intention to draw a direct line between Kerry and the head of the Third Reich and said the German's image came from attack ads run on the Democrat's behalf by the group MoveOn.org. MoveOn.org quickly withdrew a spot linking Bush and Hitler, and the Kerry campaign said it had nothing to do with it. But Holt said the incident was proof that the Democrats had "taken political rhetoric to a new low". In the Republican ad, Hitler's image is mixed with the angry faces of former VP and presidential candidate Al Gore, filmmaker Michael Moore, congressman Richard Gephardt, former Vermont governor Howard Dean and Kerry, all fulminating about Bush. The ad concludes with the words: "This is not time for pessimism and rage. It's a time for optimism, steady leadership and progress". Identification-to-enrol law passed Canberra (AAP). Aussies enrolling to vote will need to produce identification under changes to electoral laws which passed parliament. Members of the House of Representatives took part in a rare Sat morning sitting. The Senate sat until 2 am AEST. The parliament dealt with a backlog of business ahead of its winter recess and a possible early election. The changes to electoral laws passed will require people enrolling to vote to produce a driver's licence or 2 witnesses to serve as enrolment ID. The Senate knocked back a govt proposal which would have given Aussies who were not enrolled to vote only until 6 pm on the day writs were issued for an election to get their name on the electoral roll. Currently, Aussies have 7 days in which to enrol from the time writs are issued. The Senate also rejected a proposal to reduce to 3 working days after election writs were issued the time allowed to change address details with the electoral commission. The Senate knocked back a govt amendment to ban all full-time prisoners from voting. Peter Slipper, Parliamentary Secretary to the Min for Finance and Admin, said he was disappointed the Senate knocked back many of the govt proposals. "We're all about an open and transparent electoral system with integrity and it is a pity that the opp'n does not share our aspiration to this very important goal," Mr Slipper told parliament. "It's absolutely vital that when an election is declared ... and the result is known that as a nation we can be confident that the govt we can get is in fact the govt that the people voted for." But Labor finance rep Bob McMullan said it would not have been fair to close the electoral roll just 3 days after an election was called. "The Senate has prevented a great rort here," Mr McMullan told parliament. "What was proposed was a shocking anti-democratic rort." US Democrats preview Moore's 9/11 Washington (AP). Cheered by supporters, Michael Moore previewed his controversial documentary, Fahrenheit 9/11, before a mostly Democratic audience on Wed night. Democratic Nat'l Committee chairman Terry McAuliffe said he thought the film would play an important role in this election y. "This movie raises a lot of the issues that Americans are talking about, that George Bush has been asleep at the switch since he's been president," McAuliffe said as he walked the red carpet into the premiere. Sen Tom Harkin of Iowa implored all Americans to see the film: "It's important for the American people to understand what has gone on before, what led us to this point, and to see it sort of in this unvarnished presentation by Michael Moore." The 2-hr film depicts Bush as lazy and oblivious to warnings in the summer of 2001 that al-Qaeda was poised to strike. It also accuses the Admin of manipulating the Sep 11 attacks and fanning terrorism fears to win support for the Iraq war. Dozens of fans greeted Moore outside the theatre with applause and shouts of "Go Michael!" Moore, a fervent Bush critic, said he hopes the movie will get people to the ballot box in Nov. "If this movie can inspire a few of that 50% that did not vote in this country to get back involved, to re-engage, then the movie will have accomplished something important," he said. Opening in limited release in NY on Wed, the film drew mixed reaction. "This movie is slanted -- it's a backlash at the president, taking the view that US leadership is incompetent," said Miguel Brown, 22. "Moore makes it look like US soldiers in Iraq were thrown into battle straight off the streets. The American army is better than that." Brown is the son of a military officer. Fahrenheit 9/11 won the top honour at last m's Cannes Film Festival. The movie opens on more than 800 screens nationwide in the US on Fri. Canada leaders make pitch as deadlock looms Belleville, Ont (Reuters). With a minority govt in Canada now almost a certainty after the Jun 28 election, Liberal Prime Min Paul Martin and Conservative leader Stephen Harper began a final push on Fri to determine who will lead it. 2 polls published on Fri show Martin's Liberals just one percentage point ahead of Harper at a level which would leave both parties with less than a majority of Parliament's 308 seats and force them to link up with smaller parties. By chance, Martin and Harper both started the day in Belleville, a town in the vote-rich central province of Ontario. The Liberals have spent the last decade in power, thanks largely to their domination of Ontario and its 106 parliamentary seats. But voter unhappiness over a patronage scandal and general weariness with the Liberals means the newly merged Conservative Party could win dozens of Ontario seats. Martin urged Ontarians not to abandon the Liberals and told them that Harper was a right-wing extremist who planned to slash spending on social programs, while clamping down on abortion and gay rights. "This is not the time to take an experiment with a govt that doesn't believe people can control their own destiny," Martin told a rally in Belleville. He also seized on comments by Conservative legislator Randy White, who said "our courtrooms are much misguided and miss the conservative social reality of out times...the heck with the courts." Martin said this showed Harper wanted to erode the rights of minorities. Harper said in a radio interview that White was expressing his personal views. Speaking to a later midday rally of 500 people in Winnipeg, Manitoba, he urged voters not to be misled by Liberal scare tactics and to choose tax cuts over corruption. "It's time to put money in the pocket of ordinary Canadians instead of lining the pockets of Liberal friends," he said. "If you work hard this weekend you'll celebrate not just freedom from taxes but freedom from Liberals as well." An Ipsos-Reid poll showed the Liberals ahead by 32% of decided voters to 31% for the Conservatives, with the leftist New Democratic Party at 17%. The poll did mark a recovery for the Conservatives, who had trailed the Liberals by 28 to 34% in a poll done by the same firm earlier in the wk. Traditionally at least 40% is needed to win a majority of seats. Some traditional Liberal support has been bleeding off to the left-leaning New Democratic Party, whose supporters Martin is now targeting. "In an election race as close as this one...with the stakes as high as they are, the simple fact is that a vote for the NDP on Mon could very well make Stephen Harper PM on Tue," he told the Belleville rally. "There are differences between ourselves and the NDP and we shouldn't try to hide them. But we share the same values, they spring from the same well." The NDP would be an obvious partner in govt for the Liberals if Martin stayed on as PM, and Harper warned that the Liberals would cut any deal with the NDP and the separatist Bloc Quebecois to stay in power. "Don't let us get stuck with some kind of Liberal/NDP/Bloc arrangement that nobody told us about and nobody wants," he urged. " About 50 protesters, the largest group of the campaign so far, faced off against Conservative supporters outside the campaign event in Winnipeg, prompting police to escort Harper out the back door afterwards. Bush Administration lied about secret Saudi flight Op/Ed (Daily Mis-lead). The Bush Admin and its right-wing allies are launching an all-out assault on Michael Moore and his new movie, attempting to discredit the film before it is even public. Last month, Whitehouse communications director Dan Bartlett said the movie is "so outrageously false, it's not even worth comment" -- a comment made despite the fact that the movie was not yet public and Bartlett had not seen the film. Now the smear campaign is focused on creating the public illusion that Moore lied about a secret Saudi flight that was permitted after 9/11 when most US airspace was closed. But, according to one new report, the Tampa Internat'l Airport "confirmed that the flight did take place" -- despite 3 y of Bush Admin denials. According to the St. Petersburg Times, "2 days after the Sep 11 attacks, with most of the nation's air traffic still grounded, a small jet landed at Tampa Internat'l Airport, picked up 3 young Saudi men (including one thought to be a member of the Saudi royal family) and flew to Lexington, Kentucky. From Kentucky "the Saudis then took another flight out of the country." As the newspaper reported, "for nearly 3 y, Whitehouse, aviation and law enforcement officials have insisted the flight never took place and have denied published reports" about the flight. But now, at the request of the Nat'l Commission on Terrorist Attacks (9/11 Commission), the Tampa Internat'l Airport acknowledged the flights happened. For its part, the Bush Admin "is still not talking about the flights." According to the St. Petersburg Times, the Commission has now sent a formal letter to the Tampa Internat'l Airport asking for more info about "a chartered flight with 6 people, including a Saudi prince, that flew from Tampa, Florida on or about Sep 13, 2001" The commission "appears concerned with the handling of the Tampa flight." Meanwhile, former FBI agent Manuel Perez, who accompanied the formerly-secret flight, said the order to allow the flights "must have come from the highest levels of govt." In all, the NY Times notes it is "safe to say that central assertions of fact in 'Fahrenheit 9/11' are supported by the public record." German men told to have more sex and "take the consequences" Berlin (Reuters). Conservative politicians are urging German men to have more sex to boost birth rates or risk being labelled "limp" abroad, a newspaper has reported. Johannes Singhammer, a member of parliament and father of 6, said Germany's ageing population needed to produce more offspring to sustain its over-stretched pensions system. "Germans need to work more on that again in bed, things mustn't get to the stage where German men are scoffed at abroad for being limp," he said. His words were echoed by fellow conservative Armin Klein, who said Germans had become too selfish. "We need to have the courage to have sex and take the consequences," said MR Klein, who has 2 children. "People concentrating on themselves, which has led to a life without children for many, has gone wrong." Germany will have the world's oldest population by 2035, according to a report in Germany's Der Spiegel weekly. Deadline to revive N Ireland power deal set London. The prime ministers of Brit and Ireland have set a Sep deadline for the revival of N Ireland's power-sharing agreement. Brit's Tony Blair and Ireland's Bertie Ahern have met with the main protagonists from N Ireland's political parties in London overnight. If there is no breakthrough by Sep, Mr Ahern says they will have to consider a new approach. "We've fairly well exhausted the discussion," he said. "The question is whether we can come to a final understanding in these issues. Mr Ahern says discussions cannot continue without some progress. "Otherwise we have to think again," he said. "Clearly I'd like to be on the side that means we can complete it, but we can't just keep going and having discussions that don't lead to any ultimate conclusions." AUS Parliament holds rare Sat sitting Parliamentarians sat today, sparking further talk of an early election. Canberra (ABC, Melanie Christiansen). Fed Parliament has held a rare but very brief Sat sitting, just the 4th time the House of Representatives has met on a weekend since Federation. It convened for less than an hour this morning to deal with amendments to bills passed by the Senate, which sat until nearly 2 o'clock this morning. There is speculation the extended sitting is designed to clear Parliament's decks, allowing the PM the option of calling an Aug election. But Liberal MP Peter Slipper blamed the Senate for dragging out the final wk of Parliament before the 5-wk winter break. "It's an absolute disgrace, it's massively self-indulgent," he said. "It's costing the Aussie taxpayer more than $100,000. "You can lay all the blame at the people who Paul Keating called the 'unrepresentative swill' of the Upper House." Irish rally against US policies Dublin (AFP). Thousands of people have turned out in central Dublin to protest against American policies on Iraq, as Pres George W Bush arrived in the W of Ireland for a summit with leaders of the EU. The demo has been organised by left-wing political parties and pressure groups. The demonstrators heard speeches before setting out for Merrion Square by the Irish parliament, or Dail, which is under heavy police protection. Police put the number of protesters at 10,000 but organisers say it is between 30 and 40,000. "It's a fantastic turnout. We knew it would be big," Richard Boyd Barrett of the Irish Anti-War Movement said. Further protests are being staged in the towns of Sligo, Tralee, Waterford and Galway. Demonstrators are also planning to gather nr Dromoland Castle -- the luxurious hotel not far from Shannon airport that is the scene for Mr Bush's talks. Ireland has mounted one of the biggest security operations in its history to protect the summit from terrorist attack or intrusion by demonstrators. Some 6,000 police and soldiers have been deployed nr the castle, along with tanks and armoured personnel carriers. "I am here is to show my opp'n to US foreign policy -- in particular the war in Iraq, but not just that," Justin Moran, a member of Sinn Fein, said. "There is also the torture of prisoners, the support for the Israeli occupation of Palestine. "This is a way of bringing together those who won't be able to be in Shannon tomorrow, and try to register as big a protest as we can in Dublin." Several protesters accuse Mr Bush of using Ireland as a propaganda backdrop to attract votes in the approaching presidential elections. "In his naivety he's going to get Irish American votes. But he has absolutely no concept of what Irish people think of him," Lorraine Hughes, a writer and musician, said. "He's an embarrassment to his country and I hope the people in the US get to see how unwelcome he is here and vote him out." Many also attack the Irish Govt of PM Bertie Ahern for breaking Ireland's traditional policy of neutrality by allowing the US to use Shannon airport as a transit facility for troops travelling to Iraq. The EU-US summit is the last major event to be hosted by Ireland during its 6-m stint as president of the EU, which ends on Jun 30. Mr Bush is to leave on Sat afternoon for Turkey, where he will attend a NATO summit. Bin Laden had contact with Iraq: report NY (Reuters). Iraqi intel agents contacted Osama bin Laden in the 1990s as part of an effort by Baghdad to work with foes of the Saudi ruling family, The NY Times has reported, citing a newly disclosed document. US officials described the document as an internal Iraqi intel report detailing efforts to seek cooperation with several Saudi opp'n groups, the newspaper said. The contacts described in the report came before bin Laden's Al Qaeda organisation had become a full-fledged terrorist group, the newspaper said. The document states that Iraq agreed to re-broadcast anti-Saudi propaganda, and that a request from bin Laden to begin joint operations against foreign forces in Saudi Arabia went unanswered, the newspaper said. However there was no further indication of collaboration, the newspaper said. US Pres George W Bush insists that ousted Iraqi leader Saddam Hussein had a dangerous relationship with Al Qaeda. But the bipartisan commission probing the Sep 11 attacks has said there was no evidence of a "collaborative relationship". The newspaper said the newly released document was obtained from the Iraqi Nat'l Congress as part of a trove that the exile group gathered after Saddam was toppled last y. A US Govt taskforce studied the document and concluded it appeared authentic, the newspaper said. Confusion surrounds Istanbul airport bomb claims Istanbul (Reuters). Turkish authorities have discovered a vehicle full of explosives at Istanbul's internat'l airport, local television station CNN Turk reports. But an airport official says that investigators have so far found no evidence of a bomb. "Security received a warning and closed the car park for one to one-and-1/2 hours," the official said. "At this time, they have been unable to find any explosive device." CNN Turk reports the suspect vehicle has been parked in the airport's public garage. The bomb squad has also destroyed a remote-controlled explosive device found in the car park. It is not clear if the device was in the same vehicle. Turkey's largest city is on edge ahead of a NATO summit to be attended by US Pres George W Bush and more than 40 other world leaders. Authorities have stepped up security in Istanbul, a city of more than 10 mn people, conducting searches of pedestrians in public areas and searching people on the road to the airport. A bomb explosion killed 4 people, including the bomber, and wounded 21 others on Thu in Istanbul. Authorities have blamed left-wing extremists for the attack. Sudan denies Darfur in crisis Paris (Reuters). A Sudanese Govt Min has hit back at US Secretary of State Colin Powell for saying the situation in its violent Darfur region is catastrophic. Mr Powell will visit Darfur next wk. The US and rights groups say militias have killed, raped, looted and burned villages in the region, leaving tens of 1000s of people homeless and vulnerable to famine. The UN and humanitarian agencies have called Darfur the world's worst humanitarian crisis. But Humanitarian Affairs Min Mohamed Yousif Abdalla says the situation is under control. "The situation, according to internat'l parameters, is not at a catastrophic level as some are suggesting," he said. Mr Abdalla is in France for peace talks, of which he gave no details. While the US has hailed a peace accord between Khartoum and rebels in the S in a separate conflict, it says militias continue to carry out atrocities in Darfur. Govt-backed Arab militias have driven more than 1 mn black Africans from their homes in Darfur, a W region that borders Chad. The UN World Food Program says at least 300,000 people driven from their homes could go without food this m because of insecurity and lack of funds. UN Sec-Gen Kofi Annan is also due to visit Darfur next wk. Tasmanians at higher cancer risk Hobart (AAP). Tassie face a significantly greater risk of dying from cancer than people in other parts of AUS, the Hobart Mercury reported. 3 Tas's die every day from cancer with lung cancer the biggest killer. It accounted for 23% of cancer deaths in males and 13.7% in females, the paper reported. The main causes were thought to be behaviour and lifestyle factors, such as tobacco smoking, diet and lack of physical exercise. Health authorities reported a big rise in the number of people seeking help to stop smoking following the death of former Tas'n Prem Jim Bacon of cancer, the paper said. Figures compiled by Tas's Office of Public Health show Tas'n males and females are significantly over-represented in cancer mortality rates. Figures adjusted to take into account age show that every y cancer kills 146.5 in every 100,000 males and 93.8 in every 100,000 females in AUS. In Tas, the annual death rate from cancer is higher at 156.4 in every 100,000 males and 107 in every 100,000 females. Cancer was responsible for just under 28% of all Tas'n deaths, the paper said. UN rights envoys seek access to prisoners of US Geneva (Reuters). UN human rights investigators Fri demanded access to prisoners held by US forces in Iraq, Afghanistan and Guantanamo Bay to check that internat'l standards were being upheld. In a rare joint statement, they unequivocally condemned terrorism in all forms, but reiterated "concerns about certain measures taken in the name of the fight against terrorism." The US military, facing a backlash across the Arab world for its abuse of Iraqi prisoners, last m launched an investigation into its treatment of detainees in Afghanistan -- the 1st stop in Pres Bush 's war on terror. The UN statement said a panel of U.N rapporteurs spanning areas such as torture and arbitrary detention should visit inmates held for suspected terrorism offences in Iraq, Afghanistan, the US military base at Cuba's Guantanamo Bay, and elsewhere. "This is a collective step in the hope that it will have more effect," Theo van Boven, UN special rapporteur on torture, told a news conference after chairing closed-door talks with 30 rights investigators. The plea follows a scandal last m sparked by photographs taken in the US-run Abu Ghraib jail in Iraq, showing prisoners, some in hoods, being sexually humiliated by soldiers and intimidated with dogs. On the subject of Abu Ghraib, Van Boven said: "The whole picture being drawn up is a matter of great concern." He said a 1987 Convention against Torture -- ratified by the US -- was clear. "The prohibition of torture and inhuman and degrading treatment is an absolute one. It may not be derogated from in any circumstances." Bush said this wk that he had never ordered and would never order detainees to be tortured. Reed Brody, counsel at the NY-based Human Rights Watch, told Reuters: "If the Bush Admin is serious about its rejection of torture, it needs to let UN inspectors in." Activists have expressed alarm that many people arrested since the Sep 11, 2001, attacks on the US have been held for more than 2 y without charges being laid, often incommunicado, which can facilitate mistreatment. Van Boven said he wanted to investigate suspected abuses in more than 10 countries -- including China and Russia -- but that the US had a special role. "There is a tendency among many other countries, particularly those where the US has influence, to say if the US can afford to do that, why should we not follow suit?," he said. Brit labels US military trials as "unacceptable" London (Reuters). Brit's top legal officer has slammed as "unacceptable" proposed US military trials of Guantanamo Bay detainees. A-G Lord Goldsmith's comments, were one of the bluntest statements yet of London's disquiet over the US handling of terror suspects at the US base in Cuba. "While we must be flexible and be prepared to countenance some limitation of fundamental rights if properly justified and proportionate, there are certain principles on which there can be no compromise," he said. "Fair trial is one of those, which is the reason we in the UK have been unable to accept that the US military tribunals...offer sufficient guarantees of a fair trial in accordance with internat'l standards." Goldsmith is the head of a Brit team negotiating over the fate of 4 Britons among some 600 people held without charge at the camp, suspected of fighting with the Taliban in Afghanistan or supporting Al Qaeda radicals. 5 Britons were released from Guantanamo in Mar and several alleged mistreatment by US interrogators. The Pentagon has yet to hold any trials under the proposed rules. It says trials would be fair, but that the entire process would be controlled by the Defence Dept and there is no right to appeal to a civilian court. Access to lawyers would be restricted and defendants will not see secret evidence. Brit Def Sec, Geoff Hoon, said the Govt would study what Lord Goldsmith had said and act accordingly, but ultimately it was a matter for the US. Soldier claims cmdr present at death of Abu Ghraib prisoner Baghdad (AFP). A US soldier has told how a snr military intel cmdr at Iraq's notorious Abu Ghraib prison was present when a detainee died during questioning. Testifying at a 2-day preliminary hearing at a military court in Baghdad for a female soldier embroiled in the Iraqi prisoner abuse scandal, Capt Donald Reese said Col Pappas was one of a number of people present during the interrogation. Col Thomas Pappas was cmdr of the 205 Military Intel Brigade at the prison nr Baghdad. On the 1st day of the hearing for Specialist Sabrina Harman, Reese described how he saw the bleeding body of a prisoner who had been brought in alive after an Oct 27 bomb attack on the HQ here of the Internat'l Committee of the Red Cross. Harman, 26, faces a range of charges including descrating a corpse and mistreating prisoners. She was photographed grinning next to the body in one of the images of the scandal that shocked the world when it broke in Apr. "I was told that when he was brought in he was combative, that they took him up to the room and during the interrogation he passed," Reese testified, adding that the 1st time he saw the man was when he was dead in a shower. Reese said he was 1st told that the man died of a heart attack. The body "was bleeding from the head, nose, mouth," he said. "I heard Col Pappas say: 'I'm not going to go down alone for this'," Reese told the hearing. The body was left locked in the shower overnight to avoid frightening other prisoners and an autopsy was conducted the following day, the captain said. It established the cause of death as a blood clot from trauma, he added. The proceedings which are due to continue, also heard how detainees were kept naked and were abused by military police. Specialist Israel Rivera, one of 6 defence witnesses, described how 3 naked, terrified detainees, who had been accused of raping a 15-yo fellow prisoner, were made to drag themselves along the floor. He said Harman and Specialist Charles Graner, who is facing separate proceedings over the abuse scandal, were directing the incident. UN demands access to terrorism suspects The US is holding more than 600 terrorism suspects -- including 2 Aussies -- at Guantanamo Bay in Cuba. Brussels (ABC, Fran Kelly and Reuters). Leading UN human rights experts are demanding access to terrorism suspects being held at Guantanamo Bay and other US detention centres. In a rare joint statement, the 31 human rights experts condemn terrorism in all forms but express concerns about some of the measures taken in the name of the fight against terrorism. Although it does not single out the US for criticism, the statement says a team of UN representatives should visit inmates held on suspicion of terrorism offences in Iraq, Afghanistan and Guantanamo Bay -- all US military operations. The experts say their joint demand is motivated by a number of recent alarming developments in the detention and treatment of prisoners at specific locations -- a reference to the scandal at Abu Ghraib prison near Baghdad where US soldiers were photographed abusing Iraqi detainees. The human rights experts are calling for access to the prison inmates as soon as possible. The US military is facing a backlash across the Arab world for its abuse of prisoners at Abu Ghraib. Last month, it launched an investigation into its treatment of detainees in Afghanistan, which was the 1st stop in US Pres George W Bush's war on terrorism. * Collective step The UN statement says a panel of UN rapporteurs spanning areas such as torture and arbitrary detention should visit inmates held for suspected terrorism offences in Iraq, Afghanistan, Guantanamo Bay and elsewhere. "This is a collective step in the hope that it will have more effect," said Theo van Boven, UN special rapporteur on torture. Mr Van Boven says a 1987 Convention Against Torture, ratified by the US, is clear. "The prohibition of torture and inhuman and degrading treatment is an absolute one," he said. "It may not be derogated from in any circumstances." Mr Bush said this wk that he had never ordered and would never order detainees to be tortured. Reed Brody, counsel at the NY-based Human Rights Watch, said: "If the Bush Admin is serious about its rejection of torture, it needs to let UN inspectors in." The call coincides with a speech by the UK's A-G, Lord Peter Goldsmith, which criticised the US's planned military tribunals for detainees at Guantanamo Bay. Lord Goldsmith says Brit rejects the proposed tribunals on the grounds that they do not offer a fair trial in accordance with internat'l standards. He says the arrangements will not ensure a fair trial and are unacceptable. Brit Defence Secretary Geoff Hoon says while the Govt will raise its concerns about the 4 Brit detainees, there is a limit to Brit's influence. US names replacement Iraq abuse investigator Washington (Reuters). The US Army has named a higher-ranking general as the snr investigator of abuse of Iraqis at Abu Ghraib prison in Iraq amid lawmakers' complaints the probe is dragging on too long. The new chief investigator is Lt Gen Anthony Jones, a 3-star officer who is deputy cmdr of the US Army Training and Doctrine Command. He has been designated by Les Brownlee, the acting secretary of the Army. Lt Gen Jones's appointment is the latest development in US attempts to contain the damage caused by leaked photographs of US soldiers abusing Iraqi prisoners at Abu Ghraib. The photographs show US soldiers grinning while sexually humiliating naked prisoners and intimidating them with dogs. They have deeply embarrassed the US, which has promised Iraqis freedom and democracy. Lt Gen Jones will complete the work of Maj Gen George Fay, a 2-star. The change is aimed at facilitating the interviewing of Lt Gen Ricardo Sanchez, the 3-star who is the top US cmdr in Iraq. An army spokesperson says it "seems more appropriate" to have a more snr officer in charge to avoid any suggestion of command influence over the investigation. Although Lt Gen Jones and Lt Gen Sanchez hold the same rank, Lt Gen Jones is more snr because he has held the rank longer. Blair made personal plea for Guantanamo releases: report London (AFP). Brit PM Tony Blair has personally asked US Pres George W Bush to hand over the 4 remaining Brit nat'ls being held at Guantanamo Bay, according to a Brit newspaper report. The Guardian reports it has seen part of London's formal defence to a legal action brought by lawyers for 2 of the remaining prisoners seeking a court order compelling Brit to formally demand their return. "The UK Govt is continuing to seek the return of the 4 remaining prisoners and the PM has made a direct request to Pres Bush to that effect," the Govt's defence reportedly states. In all, 9 Britons were held without charge at Guantanamo Bay, a US naval base at the eastern end of Cuba. They were detained in Afghanistan or Pakistan following the Sep 11, 2001 attacks on the US. 5 were sent back to Brit in Mar, where they were freed without charge and subsequently protested their innocence of any terrorism connections. They also alleged widespread mistreatment of prisoners at the jail. The remaining 4, along with around 650 other inmates, are being detained indefinitely. They face possible military trial for alleged connections with Osama bin Laden's Al Qaeda network and Afghanistan's deposed Taliban regime. Iraq's govt face factions, past history, come hand over Baghdad (KR). Earlier this m, a letter from Iraq's top Shiite Muslim cleric arrived at the offices of Iraq's new PM, advising him that as he takes charge of the country he should remember the Islamic concept of amana -- guarding other people's precious property with one's life. It was Grand Ayatollah Ali al Sistani's tacit endorsement of the interim leadership of PM Iyad Allawi and his fledgling Cabinet, and it was greeted with relief. 3 other times during the American occupation, Sistani's objections short-circuited American plans for governing Iraq. But the letter also was a reminder that Iraq belongs to many. While officially Allawi and his govt of opp'n leaders and technocrats will be in charge come Thu, much of the real power will lie outside the interim govt. The most powerful player remains the US-led coalition, renamed the Multinat'l Forces, whose role is still being determined. Muslim clerics, deadly insurgents and US-backed Kurdish political parties all will play a role in determining Iraq's future. To fulfil his Islamic responsibility under amana, as well as his secular duty as the latest ruler of a diverse and war-weary nation, Allawi must delicately deal with all the players. If he does so skillfully, Iraq may yet evolve into something of a democratic model in the Middle East. If he fails, Iraq could spin into civil war, breed more terrorism and instability and endanger Pres Bush's chances for a 2nd term. "Iyad Allawi and his group want Iraqi independence and they want to succeed in this political process by working with the Americans," said Ayad Samarrai, the deputy Sec-Gen of the Iraqi Islamic Party, an influential Sunni Muslim group. "The other groups want the same thing, but they don't trust the Americans and won't work with them. But the goal for independence is the same." Serving so many masters could leave Allawi's new govt hamstrung. Each faction brings a different vision of what sovereign Iraq should look like, and so far none of them squares with the Bush Admin's plans for a secular, American-friendly model of Middle E democracy. These then are the factions Allawi must deal with as he takes the helm. The Shiites Iraq's Shiite majority was badly fractured during an uprising that pitted Sistani against rebel cleric Muqtada al Sadr. With that fighting now largely over, the Shiites are trying to bring together rival groups, build a voting bloc and sweep elections late next y. Many Shiite parties have demanded an Islam-based constitution and other measures that hint of a theocracy in the vein of neighbouring Iran. Sistani, elderly and reclusive, is still considered the most influential cleric, and his religious edicts are considered law by many. The Supreme Council for the Islamic Revolution in Iraq, the dominant Shiite political party, enjoys Sistani's support and has key positions in Allawi's govt. But al Sadr's radical stance against the American occupiers enchanted many young Shiites and it remains to be seen whether moderate Shiites loyal to Sistani can woo them back. A recent poll put al Sadr in 2nd place, after Sistani, as the most respected man in Iraq. Building a partnership with the man widely believed to be in favour of removing the moderate clergy by any means necessary is a risky prospect for the Shiites in the new govt. Sadr still isn't completely trusted, though the relationship is "better than before," said Homam Hamodi, a leading figure in the Supreme Council for the Islamic Revolution. Al Sadr, meanwhile, is using his new status as folk hero for political leverage. The man who a m ago battled US troops with his ragtag Mahdi Army militia has been invited to send a delegate to the nat'l convention, which will elect a nat'l assembly in coming months. What Allawi will do about a murder charge still pending against al Sadr in connection with the death of a rival cleric last y is unknown, as is al Sadr's own feelings about taking part in the govt. "The shift from fighter to politician is a difficult one and it takes time," Hamodi said with a wry smile. * The Kurds Iraqi politicians privy to the talks that resulted in the new govt say the country's powerful Kurdish parties, the most consistently pro-American groups in Iraq, wanted either the presidency or the PM post. They got neither. Kurds, brutally oppressed under Saddam Hussein, fought alongside US troops during the war and seek recognition for the sacrifices of their peshmerga militias. Arab politicians balked and the slots went to Allawi, a Shiite Arab, and Ghazi al Yawer, a Sunni Arab tribesman whose flowing robes and traditional headdress sharply contrast with his colleagues' W business suits. As a sort of consolation prize, Iraqi officials said, a Kurd was named VP, another is a deputy PM and Kurdish technocrats now head several key ministries, including foreign affairs, human rights, public works and water resources. While the new govt publicly talks of a unified, diverse Iraq, simmering ethnic tension threatens to derail Allawi's plans inside and outside the govt. Kurdish ministers threatened to resign or withdraw their support of the new govt after a UN Sec Council resolution didn't include protections they won under interim Iraqi laws. VP Rowsch Shaways, a German-educated engineer and former PM of the semi-autonomous Kurdish region, is expected to quell ethnic tension as well as ensure that Kurdish rights are protected in the next phase of govt. Outside officialdom, a struggle remains over control of the oil-rich city of Kirkuk, N of Baghdad, which many Kurds say should be incorporated into their semi-autonomous N region. Rival Arab and Turkmen groups have resisted, though 1000s of Kurds are camped out in the city to sway the demographics in their favour. "The Kurds run their own region, so their influence across Iraq won't be so great," said a snr Arab member of the new govt, speaking on condition of anonymity for fear of angering Kurdish colleagues. "But the Americans must stay in Kirkuk and prevent a violent takeover by the Kurds. The allies should never withdraw _ the situation is too explosive." * The insurgents and terrorists The key measure of Allawi's success will be in how he handles the deteriorating security conditions in Iraq. Already, Allawi is winning a reputation as a no-nonsense heavyweight. He's announced plans to streamline the country's nascent security forces into a terrorism-fighting system and hasn't ruled out martial law to regain control of the country in the 1st wks of sovereignty. "The new govt is like a sieve. It'll filter out the people who are all talk and no action," said Amal Kashif al Getaa of the Islamic Union of Women and Children. "Iyad Allawi is strong and tough with a hard edge. He'll make things better. The new govt is a step forward, but the religious leaders and the tribes still run things." Enemy No. 1 is Abu Musab al Zarqawi, the Jordanian-born terrorist who claims responsibility for most of Iraq's large-scale bombings, attacks on US-appointed Iraqi leaders and the gruesome slayings of foreign hostages. On Wed, al Zarqawi turned his attention to Allawi, calling for the PM's head in a taped death threat broadcast throughout the Arab world on satellite TV. Zarqawi, supported by disenchanted Sunnis in the flash-point city of Fallujah and vehemently anti-American Sunni militant groups elsewhere in the country, vowed his attacks wouldn't stop until "Islamic rule is back on earth." * Pres Bush and the US Tens of 1000s of US troops will remain in Iraq long after Jun 30 and probably even after elections scheduled for the end of 2005. To establish his credibility, Allawi will have to separate himself somehow from the Americans and that will almost certainly mean confronting them at some point on some issue -- most likely the conduct of military operations in the country. Allawi reportedly was furious that he was given only a few hours' warning before the coalition launched an airstrike on a suspected terrorist safe house in Fallujah, killing at least 19 Iraqis last weekend. Publicly, Allawi said he welcomed hits on terrorist targets. Privately, he reportedly is angling for more control over major US military operations. How willing the Americans will be to give him greater say could well hinge on a factor clearly outside of Allawi's control, the American political process. The political stakes for Bush are huge as the Nov elections near. Polls indicate that events in Iraq are the single biggest factor in shaping voter attitudes. When things are going well, voters are more likely to approve of Bush's performance and express more confidence about the direction of the country. When things go badly, Bush suffers in the polls. "Iraq as an issue is entirely about what happens between now and Election Day," said Stephen Hess, a presidential scholar at the Brookings Institution in Washington. Most Iraqis in the new govt defend a prolonged American presence as a necessary evil until Iraqi security forces are up to the job. But it's clear that it grates. Juwad al Maliki, a member of the Shiite Dawa political party, recently called himself an optimist about the hand over. "I'm willing to pay the price for those who suffered under the brutalities of the old regime and for those who suffered under the occupation," he said. But it comes with a personal cost. Al Maliki later walked in the broiling sun to a checkpoint outside an office he uses in the heavily fortified Green Zone, where the coalition keeps its HQ. American and Nepalese private security forces turned him away, apparently because they didn't recognise him. "They'll never understand us. They'll just never understand," al Maliki muttered, humiliated and sweating, as he set off down an empty road, in search of another entrance. Headless bodies found in Iraq Kirkuk. 2 headless bodies were found on Fri in the restive Iraqi city of Kirkuk, where police were on high alert after deadly attacks in 4 other cities the previous day, officials said. "The 2 corpses were discovered in bags by the police, who have no idea who the victims are except that they look Iraqi," said a police source. One torso was spotted on the main road to Salimaniyah and the second in the Askari district, the sources said. "We don't know if they are Kurds, Turkmen or Arabs," he said, adding that "the inquiry will be difficult". Turkmen, Kurds and Arabs populate the city of Kirkuk, 255 km N of Baghdad, which has been the scene of numerous clashes since the fall of Saddam Hussein during last y's US-led invasion. * Have info of possible attacks Earlier, city police chief Gen Turhan Yussef said Kirkuk's police force were on maximum alert in case of a terrorist attack. "We have info of possible terrorist attacks against police stations or local officials," he said. "This probability has been reinforced by the fact that one of Thu's attacks took place in a city that was close to here," he said, referring to Mosul, 150 km to the NE, where a string of bomb blasts outside police stations killed 44 people and wounded 216. "More than 5 000 policemen have been deployed all around Kirkuk, expecially in sensitive areas such as the city centre and towards the S -- favoured targets for attacks," the police chief added. * Co-ordinated violence The central cities of Baquba, Fallujah and Ramadi were also caught up in Thu's co-ordinated violence. It was the most serious challenge to the US-led coalition's efforts to restore stability since Apr, when Shiite Muslim radicals launched an uprising in central and S Iraq. In a further sign of the simmering unrest, unknown attackers shot dead a colonel of Saddam Hussein's former Republican Guard on Fri, the police said. "They opened fire at 10.40 on the car of colonel Assud Hadidi near to his house, killing him," said police office Anwar Saber, noting that the colonel had refused to take part in Iraq's new security forces and had chosen to become a taxi driver instead. His death was the eighth assassination of a snr member of the former regime in Kirkuk. Bush looks to Europe for help in Iraq Pres Bush heads to summit in Ireland, looks to European allies for help in Iraq. Ennis, Ireland (AP). Criticised for his go-it-alone approach in Iraq, Pres Bush is trying to build a new consensus among allies wary of a US leader whose policies are widely unpopular in Europe. The next 5 days are all about summitry the US-European Union summit this weekend in Ireland and the NATO summit in Turkey next week. Allied leaders are expressing a new willingness to help in Iraq, although not at the levels once anticipated. Still, they risk their own political capital back home if they appear too cozy with Bush. "America has never been at a lower point in the minds of citizens around the world," says Thomas Mann, a political analyst at Brookings Institution, a liberal-leaning think tank. "Our relations with other countries, including natural allies, have seldom been as strained. To be associated with Pres Bush and current American policy is a political liability around the world right now." Police and troops shut down roads and erected barbed-wire barricades Fri to deter protesters from interrupting the summit between Bush and European Union leaders. Hours before Bush was to arrive in western Ireland, some 4,000 police and 2,000 soldiers more than 1/3 of the entire security forces of the Irish Republic took up positions around Shannon Airport and Dromoland Castle, a luxury hotel where the summit will be held. "Sadly, there's no great welcome for Pres Bush," said the Rev Tom Ryan, a Catholic priest in the town of Shannon. "The vast majority of people would not agree with the policies of the American govt or Pres Bush." Protests are expected in several European cities this weekend. Left-wing activists planned protests in Dublin on Fri night and the summit venue Sat. The protesters want Ireland to stop allowing US military planes to land at Shannon airport, a strategic refuelling point en route to Iraq. Protests are expected in several European cities this weekend. Topics at both summits will range from Afghanistan to counterterrorism, from trade to curbing the spread of nuclear weapons. But Iraq will be at the forefront. Bush, who is seeking allies' help in Iraq, will be holding out one hand and carrying what he believes is a persuasive argument in his pocket one that asks NATO members to look in their own history books. On Sat in Ireland, Bush meets with PM Bertie Ahern, currently the head of the European Union, and Pres Mary McAleese before the start of the US-EU summit. He'll meet later Sat with business leaders. In an interview with Turkey's private NTV television before he left Washington, Bush acknowledged it was unlikely that NATO countries would contribute additional troops to Iraq, but said he was hopeful some would help train Iraqi forces. Bush also pledged to help Turkey and Iraq crack down on Turkish Kurdish rebels seeking autonomy from Turkey. He was speaking on the eve of a weekend visit to Turkey ahead of Mon's NATO summit meeting in Istanbul. Both France and Germany have resisted a NATO mission in Iraq. "This is about the spread of freedom and liberty," Bush's nat'l security adviser, Condoleezza Rice, said Thu in explaining the message Bush will carry to Europe. "That's what NATO has stood up for from the very beginning. ... Many of the members of NATO would not be free and at liberty themselves had it not been for the sacrifices of others, including sacrifices of the US." In an interview Thu with Ireland's RTE television, Bush defended his decision to invade Iraq and insisted most of Europe backed the move. He also disputed the interviewer's assertion that most Irish people thought the world was more dangerous today than before the Iraq invasion. "What was it like Sep 11th, 2001?" he retorted. "I wouldn't have made the decisions I did if I didn't believe the world would be better. Why would I put people in harm's way if I didn't believe the world would be better?" he asked. "History will judge what I'm about," the president said. "But I'm the kind of person I don't really try to chase popularity polls." The Whitehouse emphasises that 16 NATO nations already have forces in Iraq, and some members of the alliance say they're willing to help train Iraqi security forces. Major NATO powers such as Germany and France have emphatically declined to send troops. Raising their profiles in Iraq presents risks for US allies, says Kurt Campbell, a former deputy assistant secretary of defence at the Pentagon and foreign policy expert at the Center for Strategic and Internat'l Studies in Washington. "If you are going to enter this fray, then you are going to make yourself a target for the kinds of fundamentalism and attacks that the US and other coalition members have experienced," he said. Up to 25 killed in Iraq air strike Baghdad (Reuters). US warplanes bombed a suspected guerrilla safe house W of Baghdad on Fri, stepping up a hunt for Jordanian militant Abu Musab Zarqawi believed to be behind a series of deadly attacks in Iraq. "Somewhere between 20 and 25 people were killed in today's strike," said a US-led coalition official, who declined to be named. It was not immediately clear who was among the dead. The US military said the house in the restive town of Fallujah, some 50 km from Baghdad, was a "known Zarqawi network safe house" and was destroyed in the daylight strike, the 3rd on suspected Fallujah safe houses this wk. "This operation employed precision weapons to target and destroy the safe house and underscores the coalition's continuing resolve...to completely destroy terrorist networks," Brig Gen Mark Kimmitt said in a statement. Fallujah residents said the house, in the SE of the city, was reduced to rubble. Washington, due to hand over to an interim Iraqi govt on Jun 30, accuses Zarqawi of links to al Qaeda and say he has masterminded a number of major attacks, as well as being responsible for the beheading of an American and a S Korean. Militants in Fallujah issued a taped statement on Fri denying Zarqawi was holed up in the town. * IRAQI VOW TO CRUSH MILITANTS The attack occurred shortly before Iraqi Defence Min Hazim al-Shalaan warned guerrillas that Iraq's security forces, backed by the US-led coalition, were determined to crush them. "Today is the day for the Iraqi people to say to these traitors that the time has come for a showdown and God willing that showdown will be big and victory will be for us, the people," said Shalaan, flanked by the interior minister. Both ministers blamed Iraq's instability on foreign fighters and said it was up to all Iraqis to cooperate with the new interim govt in putting an end to the guerrilla threat. "We have capacities and capabilities that will soon be seen," Shalaan said. Militants killed 3 Iraqi policemen in an attack with rocket propelled grenades on a police station nr the town of Baquba, N of Baghdad. Some of the black-clad gunmen who attacked police and govt buildings in Baquba proclaimed loyalty to Zarqawi and wore yellow headbands linking them to his militant group. PM Iyad Allawi blamed foreign fighters and Saddam Hussein supporters for killing more than 100 people in suicide bombings and other attacks on Thu. "We are going to defeat them...We have been expecting this escalation and we are expecting more escalation in the days ahead," Allawi told reporters. * MOSUL WORST HIT Iraq's 3rd largest city Mosul was worst hit in Thu's attacks, with 4 suicide bombings killing 62 people, including a US soldier, and wounding 220, a snr coalition military official said. He said the attacks showed signs of loose coordination between groups intent on destabilising Iraq and warned of more bloodshed before and after the Jun 30 hand over, when the US-led occupation formally ends. Zarqawi threatened in a taped message on an Islamist Internet site on Wed to assassinate Allawi. A CIA official in Washington said the voice on the tape was probably that of Zarqawi himself. Iraq's nat'l security adviser Mowaffaq al-Rubaie said Iraqi officials had good intel on Zarqawi. "We will adopt a pre-emptive strike against these people," he told ABC television. "We will not wait for them to come to Baghdad to do these massacres against our civilian people." The violence that swept Sunni cities on Thu did not extend to regions dominated by Iraq's Shi'ite majority. * SADR MILITIA CEASEFIRE The Mehdi Army militia of radical Shi'ite cleric Moqtada al-Sadr declared a unilateral ceasefire on Thu in a Baghdad slum -- its last holdout against US troops. Sadr, apparently keen to enter mainstream politics, has already withdrawn his forces from the holy Shi'ite cities of Najaff and Kerbala under pressure from moderate Shi'ite leaders. Allawi's interim govt is to run Iraq until planned elections in Jan. A multinat'l force of 160,000 mostly US troops will stay to support fledgling Iraqi security forces. Amid the violence and questions about the justification for the Iraq war, most Americans now say the US-led invasion was a mistake, a new USA Today/CNN/Gallup opinion poll showed. 54% thought the invasion had been a mistake, compared with 41% who held that view 3 wk ago. 55% said the war had made the US less safe from terrorism, compared to a Dec poll in which 56% said it had made the US safer. US Pres George W Bush ordered the invasion on grounds that Saddam possessed WMD, but no such arms have been found so far. US strikes 3rd Zarqawi "safe house" The US has targeted what it believes are safe houses of Abu Mussab al-Zarqawi. Baghdad (AFP). US-led forces say they have killed between 20 and 25 people in an air strike on a suspected safe house of alleged Al Qaeda operative Abu Mussab al-Zarqawi in the Iraqi town of Fallujah. Witnesses say they saw a US plane fire 2 missiles on the residential Shuhada district in the S of the city, 50 km W of Baghdad. The local hospital says it has only treated 2 injured people. US Brig Gen Mark Kimmitt says coalition forces "conducted another strike on a known Zarqawi network safe house in SE Fallujah, based on multiple confirmations of Iraqi and coalition intel". "This operation employed precision weapons to target and destroy the safe house." A snr military official says between 20 and 25 people were killed. The strike follows 2 other airborne missile attacks on suspected Zarqawi hideouts in Fallujah over the past week. The US military says the total death toll from the 3 raids is 59 to 64 people, warning that it would not shrink from carrying out further similar strikes. "Wherever and whenever we find elements of the Zarqawi network, we will attack them," Brig Gen Kimmitt said. * Shell-shocked But the air strikes have left behind a shell-shocked city. A leading sheikh, Abdallah Janabi, condemns the attacks as launched "under the pretext that Zarqawi is based in Fallujah". "There are no foreign fighters here", he said. An Internet message attributed to Zarqawi on Wed mocked the US strikes. It says they were taken "under the pretext that I am in Fallujah". "This is not correct, because those fools do not know that I travel in Iraq where I am greeted everywhere by my brothers," the statement said. Zarqawi is a fugitive Jordanian Islamis who has a $US10 mn bounty on his head. The US and Iraqi officials accuse him of being behind numerous attacks in Iraq. Some believe he may be holed up in Fallujah, a bastion of Sunni Muslim opp'n to the US-led occupation. Zarqawi heads his own militant faction named Tawhid wa al-Jihad (Unification and Holy War), which has claimed responsibility for 2 huge car bombings in Iraq this m as well as the beheading of a South Korean hostage. Fighters in the town of Baquba, NE of the capital, are pledging allegiance to Zarqawi's faction in a pamphlet handed out to residents, threatening them with death if they help US forces. NATO strikes tentative Iraq security deal Brussels (Reuters). NATO nations' envoys have struck a tentative deal to help the interim Iraqi Govt train its security forces. Diplomats say the agreement comes after hours of wrangling that echoed last y's bust-up before the US-led Iraq war. "We've agreed it, we've agreed on it tentatively," one diplomat said. The debate is in response to a written request from Iraqi Prime Min Iyad Allawi. The diplomat says members of the 26-nation alliance will have until 1000 GMT on Sat to raise objections. After that time the wording of a statement would be deemed to have been adopted. It will be released at a NATO summit in Turkey on Mon. Diplomats say the talks became bogged down as the US and Brit pushed for a detailed and enthusiastic response to Mr Allawi, while France and Germany favoured a vaguely worded reply. An agreement appeared to be at hand as evening fell, but France raised last-minute objections. The ambassadors were forced to get back around the table for another meeting. NATO's role in stabilising the violence-plagued Iraq will be a far cry from the deployment of troops originally sought by the US. That request was shot down by opp'n from France and Germany, which are fierce opponents of last y's conflict. The US had lowered its ambitions for the alliance in Iraq wk ago, partly because the presence of NATO-led troops could complicate the chain of command. It also recognises many European allies are both unwilling and militarily over-stretched. Nevertheless, a snr US Admin official told reporters travelling with Pres George W Bush to Ireland that the White House expects NATO leaders to agree in-principle to help train Iraq's security forces. Iraqi Shiites condemn "filthy infidel" terrorists Grand Ayatollah Ali al-Sistani has criticised Islamic terrorists. Baghdad (ABC, Matt Brown). Some of Iraq's most influential Shiite leaders have condemned the Al Qaeda-linked terrorists operating in the country. At a Fri prayer meeting in Karbala, a rep for Grand Ayatollah Ali al Sistani told worshippers that Al Qaeda's top leaders are "filthy infidels". He names Osama bin Laden and the Jordanian-born terrorist purportedly operating in Iraq, Abu Mussab al-Zarqawi. He says they are "bastards" who "nurture malignance" against Shiite Muslims. A prominent Shiite leader was assassinated in Iraq on Thu night. Al Qaeda's leadership is made up of Sunni Muslims from the Wahabi sect. Explosions heard in Baghdad Baghdad (AFP). A series of loud explosions has rocked Baghdad's west, an AFP correspondent reports. Heavy weapons fire has been heard from the city's W and flashes of light have illuminated the sky. The incidents started around 12.30 am local time and a series of intermittent booms lasted till 3.00 am. The US military has no immediate comment on the explosions. Meanwhile, 4 rocket-propelled grenades (RPGs) have been fired in the direction of the US-led coalition's Baghdad HQ. However, a US soldier says the projectiles fell short. "Insurgents fired 4 RPGs. They were probably trying to hit the Green Zone," the soldier said. The military also says there has been a failed bomb attack outside the house of the new deputy defence minister in Baghdad. The failed attacks come amid warnings by US military officials of greater violence ahead of the Jun 30 transfer of power in Iraq. Iran accused of resuming uranium program Washington. The US has accused Iran of resuming its uranium enrichment program. In testimony before a Congressional Committee the State Dept's John Bolton said Iran had reneged on its commitments. He says it is another example of Iran thumbing its nose at the internat'l community. "We have been informed that Iran has announced a substantial resumption of its Iranian enrichment program reneging on the commitment that it made to the UK, Germany and France by informing them and the IAEA that it would begin next wk the production of uranium centrifuge parts and equipment," he said. 2 US Marines killed, one wounded in Afghanistan Kabul (Reuters). 2 US Marines have been killed and one was wounded in an operation against Islamic militants in eastern Afghanistan, the US military said. The Marines were killed in Kunar province, which borders Pakistan, on Thu evening, said military rep Master Sgt Cindy Beam. She said the wounded Marine was hurt by gunfire, but she said she did not know how the 2 were killed or have any other details. Residents of Kunar said the attack happened in a mountainous district called Naray, close to the border with Pakistan. They said they saw the bodies of the 2 Marines and they appeared to have been shot with assault rifles. This month, a US soldier was killed and 2 were wounded when their vehicle was hit by an explosion in the central province of Uruzgan. Annan pushes for more NATO troops in Afghanistan UN (Reuters). Urging NATO to send more peacekeepers to Afghanistan, UN Sec-Gen Kofi Annan says Sep elections there can proceed on time only if security improves. "If we can get the security situation under control, we should be able to hold the elections in Sep as planned," Mr Annan said. "But there is a big 'but'. We do not have enough troops on the ground." Mr Annan's plea coincides with a separate appeal to NATO from Afghan Pres Hamid Karzai as the alliance prepares for a 2-day summit opening in Istanbul. US Pres George W. Bush will urge NATO allies at the summit to help train security forces in Iraq -- a request that may well compete with the one from Afghanistan for alliance resources. Mr Annan says NATO should beef up the 6,400-strong multinat'l force now providing security mainly in Kabul and deploy them in the provinces. He says NATO should also fulfil a pledge to send 5 additional reconstruction teams into the countryside. There have been concerns that too few Afghans would register to vote due to security fears. However, Mr Annan says 4.5 mn have signed up so far in the UN-assisted drive. "We are registering Afghans at the rate of 100,000 a day, and the pace of registration shows the interest of the Afghans to take charge of their political destiny," he said. "[But] there are places in Afghanistan our staff cannot go to, even places that we thought had been safe once." Behind the violence are Islamic militants and allies who have declared a holy war against the 20,000 US troops now in Afghanistan and vowed to disrupt the elections. No breakthroughs in N Korean nuclear talks Beijing (AFP). Talks on N Korea's nuclear weapons program has ended with no breakthroughs, the US said, but it played down concerns that elements in Pyongyang wanted to test a bomb. "The results would have to be described as mixed so far, no breakthroughs," a snr US official said at a briefing. A joint statement at the conclusion of the talks was also ruled out. "We frankly didn't feel that we had made enough tangible, boastable progress to articulate that statement, there is no doubt that the process is moving along, but we are not ready to point to successes," he said. The 3rd day of talks involving China, the 2 Koreas, Russia, Japan and the US ended after less than 3 hr. 2 previous rounds of negotiations also concluded with little progress. Fri's negotiations were delayed for more than 2 hr after N Korea and its closest ally China held an emergency meeting following the nuclear test threat. The US has put forward a plan at the talks that calls for a step-by-step dismantling of N Korea's plutonium and uranium weapons programs in return for aid and security guarantees and easing of its political and economic isolation. But N Korea again repeatedly denied it was running a uranium-enrichment program, a position that appears to be hampering progress. "The DPRK [N Korea] made it clear that they won't accept uranium enrichment," the US official said. "That is a real problem for us because of the public and private evidence that suggests that it is there and it needs to be part of our solution." However he pointed to some encouraging signs. "The DPRK [North Korea] has made clear that the freeze-for-compensation, their stated goal, and the terms that they use," he said. "They at least made clear that this is the 1st step on the way to nuclear dismantlement." The stand-off erupted in Oct 2002 when the US said N Korea acknowledged it was developing nuclear weapons, violating a 1994 internat'l agreement. UN denounces Israeli-Palestinian violence UN (Reuters). UN human rights investigators have denounced Israel for targeted assassinations, excessive use of force and destruction of homes in the occupied Palestinian territories, while also condemning suicide bombings attacks by Palestinians. In a joint statement issued after a week-long annual meeting, about 30 special rapporteurs are urging the Security Council to deploy an internat'l protection force to stop the "abuses". The text, which also condemns Palestinian suicide bombings against the Israeli population, voices "strong concern regarding continuous violations of human rights and fundamental freedoms in the occupied Palestinian territories." Miloon Kothari, the UN special rapporteur on the right to adequate housing, says the statement has been provoked by the worsening situation in the occupied W Bank and Gaza Strip. "In the last wk alone there have been extrajudicial executions, Palestinian civilians killed by Israeli troops, confiscation of agricultural lands, demolition of homes has continued in Gaza and construction of the annexation wall has continued," he said. Mr Kothari, an independent expert from India, says the statement is "unprecedented" because it is the 1st such collective statement by UN human rights rapporteurs. "It is very important to have a collective position calling into question these practices and also calling upon the Sec Council to authorise an internat'l protection force," he said. In Apr and May, Israeli forces assassinated Hamas leaders Sheikh Ahmed Yassin and Abdel-Aziz al-Rantissi, whose Islamic group is sworn to Israel's destruction. "We deplore the practices of the Israeli authorities, including targeted killings, excessive use of force during military incursions, arbitrary and long periods of incommunicado detention and torture and other forms of inhuman and degrading ill-treatment," the statement said. "Furthermore, we deeply regret the policy of demolition of Palestinian houses and destruction of civilian property, the massive confiscation and destruction of land, and restrictions on the freedom of movement." It notes the disruption to vital sectors, including health, education and work. Israel says it has destroyed homes in Rafah in the S Gaza strip to uncover tunnels used to smuggle weapons from neighbouring Egypt and in fighting with militants. Screened US animal positive for Mad Cow Washington (AP). An animal in the US tested positive in a preliminary screening test for mad cow disease, Agriculture Dept officials said Fri. John Clifford, deputy administrator of USDA veterinary services, said officials learned of the "inconclusive" test result at 5.30 pm Fri. The carcass is being sent to USDA Nat'l Veterinary Laboratory in Ames, Iowa, for additional tests. Results are expected in 4 to 7 days. Clifford declined to identify the animal or its location until testing is complete, noting that it's "very likely" final testing could turn up negative. "The animal in question didn't enter the food chain," he said. "If positive, we'll provide additional info on the animal and origins." If the animal tests positive, it would be the 2nd case of mad cow discovered in the US. In Dec, a single Holstein on a Washington state farm was found to have the disease, prompting more than 50 countries to ban imports of US beef. Japan and S Korea, 2 of the biggest export markets for US beef, still have their bans in effect despite the efforts of American officials to get them lifted. The Agriculture Dept this m expanded nat'l testing for the disease in response to that mad cow scare, leading to Fri's first "inconclusive" reading in the preliminary test, officials said. More than 7,000 animals so far have been tested under the program, which seeks to check about 220,000 animals over the next y to 18 m. The announcement came late Fri and officials sought to downplay the potential gravity of the preliminary result, which they said wasn't unexpected given the test's sensitivity. The US' beef trading partners had been notified and the company was given earlier notice, Clifford said. "The inconclusive result does not mean we have found another case of BSE in this country," Clifford said. "Inconclusive results are a normal component of most screening tests, which are designed to be extremely sensitive so they will detect any sample that could possibly be positive." "The USDA remains confident in the safety of the food supply," Clifford said. Representatives from the US beef industry also sought to emphasise there was no reason to worry at this initial stage. "We hope that the US consumers will recognise that the United States has among the most stringent BSE safeguards in place," said Bill Bullard, chief executive officer of R-CALF USA, a cattlemen's group. "We are encouraging the public to recognise that this is an inconclusive test result." Mad cow disease -- known also as bovine spongiform encephalopathy, or BSE -- eats holes in the brains of cattle. It sprang up in Brit in 1986 and spread through countries in Europe and Asia, prompting massive destruction of herds and decimating the European beef industry. A form of mad cow disease can be contracted by humans if they eat infected beef or nerve tissue, and possibly through blood transfusions. Variant Creutzfeldt-Jakob disease, the human form of mad cow disease, so far has killed 100 people in Brit and elsewhere, including a Florida woman this wk who was believed to have contracted the disease in England. The govt last y conducted mad cow tests on tissues from 20,543 animals, virtually all of them cattle that could not stand or walk and had to be dragged to slaughter. After the nation's 1st case in Dec, the Agriculture Dept initially doubled the number of animals to be tested this y to 40,000. With many foreign govts still reluctant to ease bans on US beef, the testing program was expanded at a cost of $70 mn to include as many as 220,000 slaughtered animals, following recommendations from an internat'l scientific review panel. About 35 mn head of cattle are slaughtered each y in the US. China 2008 Olympics in midst of graft scandal Beijing. China's 2008 Olympic Games has been caught up in a graft scandal. China's top auditor has alleged that money allocated for the Beijing Olympics has been misappropriated. The Nat'l Audit Office found the General Admin of Sports diverted more than $22 mn dollars from the Games since 1999. The money went to new apartments for staff, and in business investments. China's accounting watchdog investigated 55 central govt depts and uncovered the rampant abuse of public money, widespread tax evasion and corruption within local and central govt and state-owned enterprises. Jackson judge says fair trial 'difficult' LA (AFP). The judge in pop star Michael Jackson's child molestation case concedes that intense media scrutiny has made his chances of getting a fair trial "very difficult". The admission from judge Rodney Melville comes as media lawyers attempt to win access to more explosive details of the case that prosecutors, defence lawyers and the judge want to keep under wraps. "I'm being very careful, I'm following the law," Mr Melville said. "It is exasperating when the individual is known around the world. It makes it very difficult for the individual to get a fair trial." The comments come in response to comments from media lawyer Theodore Boutros, who says a "blanket of secrecy" has been thrown over the case. Mr Boutros represents a group of media organisations and has made fresh calls for the release of more documents and details about the child sex allegations. Mr Boutros says the public has no idea if prosecutors are treating Jackson fairly and whether his status as a wealthy celebrity is affecting the way the run-up to his trial is being handled. "The time has come in the case to let the sun shine in," Mr Boutros told the judge. * Secrecy "boomerang" He says that the secrecy surrounding the case could come back like a "boomerang" on prosecutors and defence lawyers. Mr Boutros has vowed to take his fight to uncover more details of the allegations against Jackson to a higher court. "My problem is that the secrecy has gotten worse and worse," he said. "Both sides have gotten together to create this almost impenetrable veil of secrecy." The key document media organisations want access to is the sealed indictment that formally accuses the 45-yo pop icon of molesting a 12-yo boy at his Neverland ranch last y. The indictment was handed down by a grand jury in Apr. Jackson pleaded not guilty to 10 charges, including child abuse, conspiracy to abduct a child and administering alcohol to the boy in order to abuse him. But details of the allegations and the testimony of key witnesses in the case, including the alleged victim, remain secret. Court rules Princess entitled to privacy Brussels. Princess Caroline of Monaco has obtained a landmark privacy ruling that could affect the rights of the paparazzi around the globe. The Princess had sought the judgement from the European Court of Human Rights, after she was photographed skiing, playing tennis and sitting in a cafe. The court decided that the pictures, which were printed in 3 magazines, violated her right to privacy and should not have been published. The court said every person, however well known, must be able to enjoy a legitimate hope for the protection of their private life. The case has overturned a 1999 ruling in a German court, which found that as a high-profile figure Princess Caroline had to accept being photographed while out in public places. Winds hamper hot air balloon championships Mildura, Vic. Bad weather has grounded more than 100 hot air balloons that were preparing to take to the skies above Mildura in Vic's NW this morning. It is the 1st time the World Hot Air Balloon Championship has been held in AUS during its 16-y history. The event's organiser, Kerry Frankle, says despite this morning's practice session being cancelled, the competition will proceed tonight. "We've had all the horrible weather in the last couple of days and it's fining up and it's looking great for the opening ceremony tonight," she said. "Some pilots have arrived yesterday afternoon. "Unfortunately I don't think they will have the opportunity to fly in the practice session this morning, it's just slightly too windy." Aussie hot air ballooning nat'l champion Sean Cavanagh says fans will have a spectacular view when the competition gets underway. "Balloons will really fill the sky from horizon to horizon," he said. ALP warns of water deal pork barrelling The Murray River is to get an extra 500 GL of flow. Canberra. The Fed Opp'n has raised concerns that the Govt will use a key element of the new nat'l water strategy for "pork barrelling" in the lead-up to the election. Fed, state and territory leaders yesterday signed the agreement in CBR. It will see an extra 500 GL flow into the ailing Murray River and provide greater certainty for farmers' water rights. The Commonwealth will also consider financial assistance for regional water projects and for farmers who have had their water allocations reduced. Labor's Kelvin Thomson says there is a risk of "pork barrelling" before the fed election. "Money which is spent on restoring the rivers needs to be based around the science and around good environmental outcomes, not used for political objectives," he said. Deputy Prime Min John Anderson says the agreement will have a major impact on the management of the nation's water. "That gives people what they need -- the investment certainty," he said. "They can go to their banks and say here's certainty over the next 30 y or whatever they need to invest." Mr Anderson says the money will be wisely spent. "You probably never convince people of that because we're so cynical, we're all switched on to who gets a bit of taxpayers' money here -- I can tell you now the focus will be on a bit of justice for some people who have copped a very raw deal," he said. The Murray River is to get an extra 500 GL of flow. Debate flows over nat'l water plan Canberra. Dep PM John Anderson says yesterday's nat'l water deal will be as important for farmers as land title was in the 1800s. The Fed Govt has struck a historic $500 mn deal with the states to return water from irrigation to the country's stressed rivers, starting with the Murray Darling. The agreement commits to sending an additional 500 GL of water down the Murray River and includes a $500 mn funding agreement and a nat'l trading system for water. The deal was signed at yesterday's Council of Aussie Govts (COAG) meeting. Mr Anderson, who is also the Nat'l Party leader, has told delegates at the party's annual New S Wales conference that the deal provides certainty and security for farmers. "They have what they need now to plan and invest with security, and to take it forward with their banks," Mr Anderson said. Gary Jones, the head of the Cooperative Research Centre for Freshwater Ecology, has backed yesterday's agreement, saying tackling the country's dwindling water resources needs to be a priority for all govts. * First step Prof Jones says the agreement is a good 1st step. "[I'm] really pleased to see that the majority of states and Commonwealth have signed off on this and we can start moving forward," he said. "I guess we'd like to see a bit more money on the table from the Commonwealth as well but hopefully the states will keep the negotiations happening." Professor Jones says it is disappointing W AUS has not signed up to the deal. "They'll have their own reasons for doing that and I'm not familiar with all the issues in W AUS but we do hope that we can get a nat'l approach," he said. WA's rejection of the deal has angered PM John Howard, who calls it petty and foolish. However, the Greens have supported Prem Geoff Gallop's decision. * Wider debate Dr Gallop says there is nothing in the deal for W AUS. WA Greens MLC Dee Margetts agrees. She says his actions should spark a wider debate about the effectiveness of the strategy. "We all have an obligation to work in the right direction, to work towards a more sustainable water future," she said. "But we now have to ask the serious questions about whether the COAG reforms are going to take us in that direction." Despite Dr Gallop's opp'n, SA, Qld, Vic and NSW are happy with the water plan. South Aussie Prem Mike Rann believes the agreement is the best case scenario he was hoping for. Mr Rann says the deal delivers important initiatives to improve conditions for both Adel residents and farmers. * Water trading "We've also introduced a new mechanisms for water trading, which is what farmers in SA have been wanting for a long time," he said. "[It] also for the 1st time guarantees of future compensation is the scientific research lead to reductions in allocations to irrigators and farmers." SA Farmers Federation president John Lush agrees. "I think its good news for SA... [better] water quality and it looks like irrigators only have to give up 3% of the water to attain that," Mr Lush said. "I actually think they will be better off." But Qld Greens leader Drew Hutton says landholders are the only ones who will benefit from the plan. "The water resources from the Murray Darling basin have been privatised," Mr Hutton said. "We've got a privatisation of the water resources, this public resource is now basically in private hands. "We've got no extra water going in the Murray system. It's not a win for the environment this whole agreement." ACF urges states to go it alone on green energy Environmentalists say Fed Govt energy plans are not green enough. Canberra. The Aussie Conservation Foundation (ACF) is calling on state and territory energy ministers to reject the Fed Govt's energy statement in favour of a state-based response to climate change. State and territory energy ministers are meeting today in a show of support for the renewable energy sector. There are fears that the sector's growth will grind to a halt within ys under the fed plan, which provides funding for research on clean power technology but does not lift renewable energy targets. The mandatory renewable energy target for 2010 will stay capped at 9,500 GW hr. The foundation's John Connor says the Fed Govt's plans fail to protect nat'l treasures like the Great Barrier Reef and Kakadu. "That is the consequence of not moving fast enough or seriously enough on greenhouse pollution," he said. "The Fed Govt's neither joining the community of nations or taking action on that to the Kyoto protocol nor doing enough domestically to reduce green house emissions in the time frame we need." The foundation is asking the state ministers to agree to a number of measures as a step towards a state-based response to climate control. Mr Connor says the Fed Govt's plan is short-sighted. "It's up to the states to show some nat'l leadership here, to actually get in behind Kyoto protocol," he said. "To set a nat'l target and road map percentage to cutting pollution and green house emissions and some state driven programs on emissions energy and trading." Currently, 60% of AUS's renewable energy is produced in Tas but expansion plans are now in doubt. Tas's Energy Min, Bryan Green, says it is a nat'l concern. "The other states are interested because they've got developments happening in their own states," he said. "People are keen to see those go ahead." Vic'n Energy Min Theo Theophanous says the states will focus on developing a responsible alternative to the Fed Govt's plan. "The failure to address our nat'l or internat'l obligations to reduce our emissions is a serious blow to those who believe we should abide by these internat'l obligations," Mr Theophanous said. Garrett to address Young Labor conference Canberra. Peter Garrett will address aspiring Labor politicians, sitting members and candidates in CBR this weekend, as a speaker at the nat'l Young Labor conference. More than 100 delegates will discuss everything from youth wages through to policies on immigration and defence. Nat'l president Alex Dighton says it is a coup to have the former rock singer, who recently joined the party, address the conference. "We're really pleased to have Peter coming to talk to Young Labor members," he said. "It shows he's very committed to talking to members of the Labor Party and particularly young people." The Young Labor conference will also consider motions on the environment, health and foreign affairs. Mr Dighton says some of the topics may surprise snr ALP members. "We've got a number of issues on the agenda [not all] of which will not be in line with the fed Labor Party," he said. "Others will definitely line up with Mark Latham's vision for AUS." Latham must tread lightly with US: Carr Bob Carr ... US relations will require careful diplomacy. Sydney. NSW Prem Bob Carr says fed Labor leader Mark Latham faces a great challenge in dealing with the US if he is elected PM. Labor's policy to withdraw Aussie troops from Iraq has drawn sharp criticism from the US Admin of Pres George W Bush. In an interview with the ABC's Sun Profile program, Mr Carr suggests that the issue would need the skills of foreign affairs rep Kevin Rudd or former leader Kim Beazley rather than Mr Latham. Mr Carr says the Labor Party knows the US is sensitive about the issue. "If Labor is to be elected in the forthcoming elections, this will be a major diplomatic challenge," Mr Carr said. "There will be ultra-nat'lists in Washington who will react very strongly to the implementation of Labor's policy. "It's going to require sensitive diplomacy." Prime Min John Howard says Mr Carr's comments amount to an accusation that Mr Latham is wrong on Iraq. "What Bob Carr has done is to confirm the Govt's criticism of Mr Latham," Mr Howard said. "His policy of cutting and running from Iraq would be seen as unwelcome, as an unfriendly act, and would certainly have an adverse impact on the alliance." The full interview with Mr Carr can be heard on Sun Profile on ABC local radio after 9.00 pm tomorrow. No corruption charges laid against drug squad Melbourne. Vic's Assistant Commissioner for Crime, Simon Overland, says there will be no criminal charges laid against 4 former drug squad detectives accused of corruption. A police informer has alleged in a committal hearing that the detectives forced him to sign false documents about the passing of drug money to a police officer. 3 of the officers are still serving and one of those is involved in drug-related investigations. Assistant Commissioner Overland has told ABC TV's Stateline program that the allegations have been thoroughly investigated. "As I understand it, the investigations into the officers as far as criminal matters is concerned are over," he said. "There may be some internal matters, some disciplinary charges that have to be considered and that's obviously in progress. "We will go back and look at the committal and if there's any further matters that need to be investigated or old matters that need to be re-investigated that will happen." Assistant Commissioner Overland says there is also a new staffing policy in the drug investigation division. "People will, after a period of about 3 or 4 y, be moved out and new people will be moved in," he said. "We are not going to allow people to sit in that sort of spot for 10-12 y because past experience indicates that is when risks arise. "That's when, unfortunately, sometimes you see individuals become engaged in corrupt behaviour." Canada's killer whale relocation bid in limbo Vancouver, BC (Reuters). A plan to relocate a lost killer whale on Canada's Pacific coast was in limbo on Fri after objections by native Indians, who claim the animal holds the spirit of a dead chief. The whale experts who travelled to Nootka Sound on Vancouver Island to help capture the orca, nicknamed Luna, were headed home and it was unclear if they would return, said Vancouver Aquarium rep Angela Nielsen. "It's a wait and see situation," Nielsen said. Canada's Dept of Fisheries and Oceans halted the effort to reunify the whale with its family pod until it can reach an agreement with the natives. The whale has become the focus of a circus-like tug-of-war between the scientists, who were using a boat to lure Luna to a pen, and members of the Mowachaht-Muchalaht Indians, who used canoes to lure the animal in the other direction. Scientists have cited the whale's attraction to boats and float planes as the reason it needed to be relocated to the Strait of Juan de Fuca, where its pod spends the summer. The population of killer whales on the US-Canada border is endangered and it is hoped the return of a young breeding male would help ensure their survival. The whale was accidentally separated from its pod in 2001 and has been living alone in Nootka Sound. Experts believe the 1.8 ton whale is lonely and they worry it will be hurt or killed by a collision with a boat as it seeks human companionship. The Mowachaht-Muchalaht natives believe the whale carries the spirit of a band chief who died a wk before the animal arrived in their traditional territory. He had said he would return as a killer whale. The natives want the whale left where it is, but say if it does have to be relocated it should be led down the ocean coast by canoe. The Strait of Juan de Fuca is about 200 km S of Nootka Sound. Fisheries' officials said the native's plan was unworkable and want to use a specially equipped truck to carry the whale to the reunification area E of Vic. Officials suspended the capture effort on Thu over concern the battle for the whale's attention was making it more comfortable with people. Dept officials planned to meet with native leaders next wk. Consumers warned of Internet shopping dangers Sydney. The Aussie Competition and Consumer Commission is warning consumers to be aware of their rights when shopping on the Internet. Deputy chair of the ACCC Louise Sylvan says a survey of the top 100 Aussie Internet sites selling goods or services, found over 1/2 do not comply with the Trade Practices Act. She says they either deny consumers' warranty rights or limit liability. Ms Sylvan says consumers' rights are the same online as when shopping by other methods. Online retailers strip customers' rights: ACCC Sydney. Online shoppers deserve the same protection as real-world customers, according to the ACCC. The Aussie Competition and Consumer Commission (ACCC) says it is concerned people shopping over the Internet are not being treated fairly. The ACCC's deputy chairwoman, Louise Sylvan, says a survey of Aussie web sites selling goods and services has found 50% either deny consumers' warranty rights or try to limit their own liability. She says the ACCC is concerned many sites are not properly disclosing statutory warranties and conditions of purchase. Ms Sylvan says the Trade Practices Act still applies to businesses selling goods online. "It doesn't matter whether people are shopping in a mall, shopping on the high street or shopping online, the rights for consumers are absolutely identical," she said. "They cannot be contracted out of, even if people are transacting online." Stuck switch caused spacewalk problems: NASA Houston (Reuters). The abrupt abort of an ambitious spacewalk from the Internat'l Space Station (ISS) yesterday was caused by a stuck switch and not a dangerous oxygen leak, NASA says. American astronaut Michael Fincke, who was making his 1st spacewalk, was outside the airlock for less than 2 minutes before Russian ground controllers ordered him to return. They also ordered his Russian colleague Gennady Padalka to return. Mission Control in Moscow detected a drop in pressure from Mr Fincke's primary oxygen tank, which might have indicated a dangerous leak. But NASA says that an auxiliary switch for feeding oxygen to the Russian suit had been left in an "on" position, even though an indicator showed it was "off". NASA says Mr Fincke tested the switch before leaving the airlock and returned it to the off position, something confirmed by an indicator light in his helmet. However, for some reason the mechanism stuck. The result was the shortest spacewalk in US history. "The Russians completely exonerated the crew of any mistake," NASA rep Rob Navias said. Mission managers will meet on Tue to reschedule the spacewalk, which is tentatively set for that evening. The success of the mission could prove vital to the space station's operations. Only 2 of 4 large gyroscopes that keep the 200-t station stable in flight currently work. Another gyro failure would force the station to begin using up precious fuel stores as thrusters took over the job. Web surfers' passwords, bank details vulnerable Some Internet security experts are warning web surfers not to use Microsoft Internet Explorer. LA (Reuters). A potentially dangerous Internet attack designed to steal financial data and passwords from Internet users is rippling across the World Wide Web. Computer security experts say the attack, which surfaced earlier this week and is known as the "Scob" outbreak, exploits a vulnerability in servers using a version of Microsoft's IIS software. The Scob outbreak is also known as 'Download.Ject', JS.Scob.Trojan and JS.Toofeer. It has been called more dangerous than the recent "Sasser" and "Blaster" infections. Infected servers exploit another vulnerability in Microsoft's Internet Explorer browser to install a trojan file on the PCs of web surfers who visit the infected sites. The trojan places a keystroke logger on users' PCs. Alfred Huger, snr director of engineering at Internet security company Symantec Corp, says users do not realise their computers are affected. "All of this takes place while it looks like you're viewing the same web page," Mr Huger said. "You don't even know that parts of your browser have been redirected to another web site." The US Computer Emergency Readiness team warns on its web site that "any web site, even those that may be trusted by the user, may be affected by this activity and thus contain potentially malicious code". Michael Murray of nCircle Network Security says the trojan is designed to capture credit card numbers and passwords and send them back to a server in Russia. However, the threat to users' personal data seems to have diminished, at least for the time being. "The server appears to have been shut down in the last 8 hr," Mr Murray said. "We don't know if it was shut down by authorities or whether it was accidental." There are no patches available yet from Microsoft to fix the vulnerability in Internet Explorer. Microsoft says users could search for the files "Kk32.dll" or "Surf.dat" to see if their PCs are infected. The company also suggests that users set their browser security level to "high". The Internet Storm Centre, a body monitoring and warning of Internet security attacks, suggests web surfers use a browser other than Microsoft's Internet Explorer -- or turn off javascript -- until the current vulnerabilities are patched. Friendly dog prevents killing spree? [It could ONLY happen in Canada! :)] Toronto (Reuters). A Canadian man, driving a car packed with weapons and ammunition, was intent on killing as many people as possible in a Toronto neighbourhood but gave up the plan at the last minute when he encountered a friendly dog, police said on Thu. The middle-aged man, who police said was mentally disturbed, had planned to carry out the shooting spree on Wed to ensure he would be put in jail permanently, Toronto police said. He had set himself up in an east-end park to load his weapons and then planned to drive around shooting. He later told police that a dog then approached and started playing with him. The encounter melted the man's heart, and he then went in search of police to give himself up, police said. "He happens to be a pet lover, and decided that since there was such a nice dog in the area, that people were too nice and he wasn't going to carry out his plan," Detective Nick Ashley told reporters. Police found 6,000 rounds of ammunition, 2 rifles, a shotgun, a semi-automatic pistol, a revolver and an air rifle in the man's car, along with a machete and a hunting knife. The car also contained a throwing knife, a camouflage mask and netting. He had recently arrived in Toronto from New Brunswick. James Paul Stanson, 43, has been charged with a variety of weapons-related offences and appeared in court for a bail hearing on Thu. Czech survives 10 days buried alive in coffin Prague (AFP). A 50-yo Czech man has survived 10 days buried underground in a wooden coffin without food and water, setting what he claims is a new world record, local media has reported. Zdenek Zahradka, a holy man or fakir, was connected with the outside world only by a ventilation pipe and said the most difficult thing to endure during the feat was severe thirst. Mr Zahradka said he spent most of the time sleeping or contemplating and sometimes spoke to friends through the pipe. "While I was underground I thought about all the things happening in the world, and I realised that human life is so futile that we must be glad for the time given to us, we should respect our lives," he said. Mr Zahradka said he beat the previous world record for being buried alive by 4 days and will apply to be registered in the Guinness Book of World Records. "Of course I do not agree with what he did, but now that he has succeeded, I am glad," his wife Alena said. According to doctors, Mr Zahradka lost almost 9 kg during his time in the coffin. Mr Zahradka, alias Ben Ghan, has already set several records during his career. In 1979, he was the 1st in the world to swallow a sword that measured 55 cm long. {{ 8 am Qld Prem Peter Beattie says the Council of Aussie Govts (COAG) is so badly organised it is like a "chook yard". The Vic Govt says its fed counterpart has failed to announce funding for the Wimmera Mallee Pipeline at today's Council of Aussie Govts (COAG) meeting. 10 am The US Army has named a higher-ranking general as the snr investigator of abuse of Iraqis at Abu Ghraib prison in Iraq amid lawmakers' complaints the probe is dragging on too long. US-led forces say they have killed between 20 and 25 people in an air strike on a suspected safe house of alleged Al Qaeda operative Abu Mussab al-Zarqawi in the Iraqi town of Fallujah. A series of loud explosions has rocked Baghdad's west, an AFP correspondent reports. Brit PM Tony Blair has personally asked US Pres George W Bush to hand over the 4 remaining Brit nat'ls being held at Guantanamo Bay, according to a Brit newspaper report. Leading UN human rights experts are demanding access to terrorism suspects being held at Guantanamo Bay and other US detention centres. NATO nations' envoys have struck a tentative deal to help the interim Iraqi Govt train its security forces. PM John Howard has hailed a nat'l water agreement as a tremendous day for AUS but W AUS's Prem and the Greens have criticised the plan. Thousands of people have turned out in central Dublin to protest against American policies on Iraq, as Pres George W Bush arrived in the W of Ireland for a summit with leaders of the EU. Midday. Canberra. Parliament has risen after a rare Sat sitting. PM Howard ignored speculation he's clearing the decks for an Aug 7 poll. The UN has made a public call to be allowed access to US-run military prisons in Iraq, Afghanistan and Guantanamo Bay, Cuba. The highly-unusual move has been made because the Special Envoy on Torture says prev requests to gain access to the facilities have been rebuffed or ignored. UN reps say they fear the US is still violating human rights at some facilities. Washington. VP Dick Cheney has defended his right to swear at opponents. He reportedly said "fuck" in a confrontation with a Dem senator this wk. Cheney and Pat Leahy clashed as lawmakers gathered for a photo in the Senate. Cheney says it's not the kind of language he normally uses, but Leahy had been the latest to challenge his integrity. The VP told Fox News he "felt better" after he swore at Leahy. Baghdad. The US military says it's killed 20-25 people in a 3rd Fallujah air strike on al-Qaeda operative Abu Massab al-Zarqawi. A rep says the attack was along the lines of 2 other airborne missile strikes on suspected hideous over the past wk. The total death toll from the targeted assassination raids is now between 59 and 64. The US military says it won't shrink from more attacks. Moscow. Russia's Duma has ratified the Conventional Forces in Europe treaty. The agreement regulates the deployment of military aircraft, tanks and other heavy weapons in Europe. It was ratified 355-28, with 2 abstentions. It's seen as being in Russia's interests. Beijing. Torrential rainstorms in C and S China have triggered flooding that's claimed at least 29 lives in the past wk. Media reports say storms in China's Hunan prov over the past 6 days killed 28 people, while floods in the Guizhou prov have killed 1 person. Another 27 people are reported missing in Hunan. Ray Bradbury claims Michael Moore has "stolen" the title of his story and has called for the title "Fahrenheit 9/11" to be removed and for Moore to offer a public apology. "Fahrenheit 451" was Bradbury's story about a totalitarian future where the fire brigade burns books. 451 F is -- according to the story -- the temp at which book paper catches fire. The US Coast Guard has sent 34 Cubans back home after intercepting their boats off the coast of Florida. Pt-au-Prince. A UN stabilisation force has officially taken over security in Haiti, replacing a US-led mission after former Pres Bertrand Aristide left Haiti on Feb 29. The US force -- incl a large French contingent -- will leave by the end of the m. Brazilian Gen Augusto Heleno is leading the new 6,700 member UN force, incl 1,200 Brazilian soldiers, known as MINUSTHA. An additional 1,600 UN police will provide security. Beijing. A 3rd round of 6-way talks with N Korea have closed, with negotiators expected to issue an 8-pt statement. The Xinhua agency says the negotiations on NK's nuclear weapons drive agreed in principle to hold another round of talks in Sep, and resume working-group meetings ASAP. While progress had been expected in the latest round, with the US and Japan making unprecedented offers of aid in return for NK renouncing nuclear weapons development, Pyongyang threatened to conduct its first weapons test. European newspapers are predicting a future Iraq will be much less secular than the one under the deposed regime. Ayatollah Sistani is expected to gain influence in nat'l elections, with many Iraqis expected to support Shi'ite parties. OTOH, a Dutch delegation returned from Turkey says that country is much less under the influence of religious leaders than prev thought. 6 pm Aussie soldiers have come under mortar attack in Iraq. A training team of about a dozen Aussies came under mortar attack nr Mosul where they were training members of the new Iraqi army. 5 Iraqi army soldiers were hurt in the attack, 2 seriously. No Australians were killed or hurt. Insurgents fires 1/2 a dozen shells at the training camp. 1 landed in the compound. A rapid reaction force went after the attackers, but they escaped. Earlier, guerrillas blew up the party HQ of interim PM Allawi after fighters stormed the building in Baquba, N of Baghdad. 2 people were killed. US planes then flattened a nearby house, killing its residents. US war planes have hit Fallujah again. US cmdrs say up to 25 members of the al-Qaeda network were killed when the house was flattened. It's the 3rd similar attack this wk. UN Sec-Gen Kofi Annan says force is not the answer. The UN has refused to return to Iraq until the security sit'n improves. Iraq may declare a state of emergency with the interim govt turning to NATO for help, says invasion architect Paul Wolfowitz. Demonstrators have staged a big anti-war protest in Dublin. 20,000 people turned out in the Irish capital to shout about Bush, GWII and Tony Blair. Elsewhere, Mr Bush tried to mend fences with EU leaders during an 18 hr visit. He's on a brief stop-over before a NATO meeting in Turkey. The NATO summit comes just days before the transition to the interim govt in Iraq. Mr Bush said in a prev recorded interview he didn't expect more troops from NATO, but the US expected to get a training mission out of the organisation. It was the only solution [to America's quagmire], Bush said. In Istanbul, anti-US protesters are already on the streets. Turkey has done its utmost to ensure the security of the 40 world leaders who are to attend the summit. Police expect bigger demos when Mr Bush arrives. A new document obtained by US ABC TV shows there was contact between Saddam's regime and OBL. The papers were found in Baghdad after the invasion. They indicate Saddam explored a relationship with OBL when the terror leader was living in Sudan, and before he was widely known as a terrorist leader. Saddam was also exploring links with other anti-Saudi groups, incl Hezbollah. It's reported OBL suggested Iraq re-broadcast some anti-Saudi speeches from a firebrand cleric, and Saddam complied. But OBL reportedly did not want to become an Iraqi agent. ABC says there was no indication that any other suggestions or requests from OBL were ever acted on. Fahrenheit 9/11 has opened across America, taking $30 mn in its first day. Moore hopes enough people will see it to unseat Bush. Democrats have taken advantage, expecting the film will see gatherings of anti-Bush voters. They've set up info booths outside. Viewers say their ideas could not have been changed by seeing the film. Conservatives are out to muzzle ads for the movie. Moore says when conservatives don't like something, they don't want you to see it; when "we" don't like something, he says, "we" just don't go see it. Flooding in Hunan. The weather bureau is forecasting better weather over the next few days. Its estimates of damage in the prov run to $500 mn. MEL. Police had to block off Lygon St last night after Greece kicked France out of the 2004 football comp in Portugal. Muscle cars roared up and down the local drag, and crowds gathered as flares were lit. But there were no arrests reported. 9 pm About 20 people have been killed in Baquba after insurgents attacked the HQ of Shia leader Ayatollah Sistani. The attack came a day after Sistani criticised the Sunni leadership of the local al-Qaeda terrorist network. A Brit researcher says he may have the first proof the world is entering the 6th mass extinction period in Earth history. Prev research has concentrated on a limited number of bird species world-wide. But the latest study involves looking at Brit butterflies. It finds the "average" butterfly has decreased in range by 15% in Brit over the past 10 y -- a huge amount. The research seems to unexpectedly indicate the extinction rate of insects could be significantly larger than the prev published studies on birds. The rate for animals and plants world-wide could have become orders of magnitude greater than the background rate, researchers say. Many scientists believe humankind has at least played a part in the development. 10 pm A bus has been blown up in E Afghanistan. The bus of female electoral workers had left Jalalabad on the way to the Pak border on a voter registration mission when it exploded. A bomb had been placed on the bus earlier. 2 women and a child were killed. 9 others were injured. The deaths were confirmed by the electoral board. The Taliban later claimed responsibility for the attack. It's the first time any electoral staff have been killed. There have been attacks on electoral buses before. There have been 2 attacks in Baquba. The offices of the PM's party were blown up. Offices connected with a Shia group were also attacked . In Arbil, bombers attacked an office of the local Kurdish govt. A govt min was wounded and a guard was killed. An American soldier was killed in Baghdad when his convoy was hit by RPG's. Several people have been killed in Kashmir after gunmen broke into several homes in a village and opened fire indiscriminantly. Vietnam era vets are teary as 20 "Hughies" are retired today. The choppers were converted to "Bushranger" gunships after the war. The "thumping sound" means a lot to soldiers who served in Vietnam in the 60s and early 70s, said a rep, because it meant help had arrived. 11 pm Mr Bush and EU leaders are meeting in Ireland. In a joint statement, they offered encouragement to the new Iraqi govt, and urged Iran to review its nuclear enrichment decision. The meeting has drawn a line under the disputes over why GWII was fought. The EU is speaking of providing assistance to Iraq to ensure transition to free elections take place by Jan next y. Elsewhere, the IAEA has forecast a sig increase in nuke energy generation. }} ---------------------------------------- Sun, 27 Jun 2004. HEADLINES: Israel kills top militant leader linked to Arafat Hamas, Al Aqsa leaders killed in Nablus raid Shiite party members killed in Iraq UN to appoint new Iraq envoy New Iraq PM promises amnesty for insurgents Zarqawi supporters threaten to behead 3 Turks Living in Iraq, US army-style Iraqi military won't get tanks Iraq welcomes NATO training plan Iraq violence may force state of emergency; NATO to help Iraq plans amnesty for some insurgents Iraq oil pipeline reopens; feeder blasted Iraq attack "shows troops must stay" Insurgency may delay Iraqi elections Deadly car bomb hits S Iraqi city Bush declares Iraq rifts healed 6 die in Iraq violence ahead of handover "Fahrenheit 9/11" tops $8 mn in first day 5 Canadian flight surgeons pass ailing Afghan boy for trip to Canada 9/11 commission links al-Qaeda, Iran ALP quiet on "fairer" tax plan details ALP rethinks terrorism hotline as glitch goes unnoticed Another bomb explodes in Istanbul ahead of NATO summit Arafat commits to truce during Olympics Australia to ask Gusmao to halt deportation Canada's Liberal Party could lose majority Carr expresses faith in Latham Close call tests Aust troops' response Czech govt falls as PM resigns Energy co-op generates public interest Enron CEO admits responsibility for collapse Fire destroys $10 mn movie studio Greenpeace removes Homebush toxic waste Greens challenge Garrett on port plans Greens reject endorsement for Ralph Nader Hot air ballooning championships lift off Iran pushes ahead with uranium enrichment plans Israel dismisses Olympics truce offer Kakadu fee cuts "would lift visitor numbers" Latham vows to make parties pay for ads Leak reveals baby bonus payment concerns Microsoft requests stay on EU penalties Movie theatres fill in Washington to see Fahrenheit 9/11 Nuclear power "can't stop climate change" Pakistan PM resigns: report Pakistani Cabinet dissolves as PM resigns Public invited to inspect "Ballarat" Pulp mill plan wins fed backing Russia to ship N Korea food aid Sex abuse criticism "surprised" Hollingworth Smelter proposal "too crazy to be real" The $muli bn robbery the US calls reconstruction The woman who is taking on Wal-Mart US committed to Geneva Conventions: Bush US wants reconstruction fund to pay Saddam debts WA joins state-based energy strategy Police know Norfolk Island killer's identity: Sen Iraq oil pipeline reopens; feeder blasted Baghdad (AP). Repair crews patched up the larger of 2 S crude oil pipelines damaged by saboteurs and resumed pumping to offshore terminals, an oil official said Sat. But hours after the pumping resumed, attackers blasted a small pipeline that feeds into domestic storage tanks, igniting a blaze, Iraqi police said. Oil exports are hovering between 1.7 mn and 1.8 mn barrels a day -- about the same level as before the war started in Mar 2003, according to an official with the S Oil Co. The damage to the 2 lines essentially cut off Iraqi oil exports earlier this m, heightening supply fears. One of the pipelines was brought back on line Mon nr the S city of Basra, but repairs on the 2nd one took longer because it was more damaged. The crude is sent to storage terminals on the Faw Peninsula, then pumped through to the Basra and Khor Amaya terminals. "Pumping began at about 10 am this morning," the oil official, speaking on condition of anonymity, said of the 2nd line. A bomb planted by saboteurs underneath a small, domestic feeder line exploded Sat evening nr the town of Latifiyah, about 50 km S of Baghdad, Iraqi 1st Lt Alaa Hussein said. The line carries crude to storage tanks in Latifiyah. Insurgents repeatedly have targeted the pipelines in a bid to restrict the new interim govt's access to export revenue needed for post-handover reconstruction efforts. Iraqi officials have stressed that protecting the pipelines and other oil infrastructure is a priority. But with about 7,000 km of pipelines snaking through the country -- most running through desolate regions -- they concede the task is a formidable one. Saboteurs also blasted a key N oil pipeline transporting crude oil from the town of Beji to the Dora Refinery, one of Iraq's largest plants, on Mon. The blast cut off crude oil supplies to the refinery, which produces gasoline, kerosene and liquefied petroleum gas for the domestic market. Another smaller line linking the N oil fields of Kirkuk with the Turkish port of Ceyhan, was repaired earlier this wk after being knocked out of service by attacks last m. That line, which carries about 200,000 barrels a day, has been repeatedly attacked and has operated only sporadically over the past few months. The Oil Min'y has set up a special police unit responsible for monitoring the network, and the Air Force recently purchased 2 Aussie reconnaissance planes that will provide aerial surveillance. Those planes will eventually be supplemented with about 14 more that will also help monitor the country's porous borders. The new govt, which will formally take over the country's Admin on Jun 30, also has contracted with tribal leaders to monitor pipelines that pass through their regions. Iraq has the world's second-largest oil reserves. But y of war, UN sanctions and mismanagement have left it with dilapidated and obsolete oil facilities, and Iraqis have failed to restore crude exports to prewar levels. Microsoft requests stay on EU penalties Brussels (AFP). Microsoft has asked the European Union's top court to suspend an anti-trust ruling by the EU's executive arm in a move bitterly contested by the US software giant's rivals. The request for a stay of the Mar ruling by the European Commission has been lodged with the chamber of 1st instance of the European Court of Justice. "The request for the suspension has gone in but it was too late last night to get entered into the court's registry, so that will happen on Mon," a Microsoft rep said. The commission has fined Microsoft a record 497 mn euros and ordered changes to its Windows operating system after a 5-y investigation into the group's overwhelming market dominance. The ruling came as a blow after the Seattle-based titan largely fended off its anti-trust battles with the US Govt. While the EU fine is small change to a group the size of Microsoft, the enforced product changes would hurt. Microsoft has already lodged an appeal with the European court in Luxembourg against the landmark ruling by Brussels. The action aims to annul the commission's decision but a ruling might not come for several ys, leading Microsoft to try to get the commission's remedies suspended in the meantime. The EU's executive arm has given Microsoft until the end of Jun to offer computer makers a separate version of its Windows operating system that does not include its "Media Player" audio and video program. The company's core business strategy is to offer an all-in-one suite of applications that caters to the home user's every need. However, according to the pro-Microsoft Association for Competitive Technology (ACT), rival players such as Apple's QuickTime and RealPlayer are doing just fine. "Across the industry, new entrants are making massive headway and competition is vibrant and growing," ACT president Jonathan Zuck said. "The commission's remedy is utterly unnecessary as there is no competitive issue in this market." Not so, shot back the anti-Microsoft Computer and Communications Industry Association (CCIA), which has filed its own counter-appeal with the EU court. "It is perfectly clear that Microsoft's claim has no legal merit, and therefore not surprising that it is again trying to use the media to create unwarranted fear and confusion," CCIA chief executive Ed Black said. "But being made to follow the law and play by the rules will not cause any irreparable harm to Microsoft or anyone else. "To the contrary, all the evidence from the marketplace confirms that only a suspension of the commission's remedies would create irreparable harm -- to consumers, competitors and the marketplace." To get the remedies suspended, Microsoft must prove to the European court that it has a prima facie case in law. It must also prove that it would suffer "serious and irreparable harm" if the measures were to take immediate effect. Enron CEO admits responsibility for collapse Kenneth Lay admits responsibility over Enron. NY (AFP). Former Enron chief executive officer Kenneth Lay has acknowledged that he bears full responsibility for Enron's collapse in 2001. "I take full responsibility for what happened at Enron," 62-yo Mr Lay said in an interview with the NY Times. "But saying that, I know in my mind that I did nothing criminal." The US Govt is expected to decide soon whether to charge Mr Lay with a crime over the collapse of Enron and the ensuing scandal. Mr Lay told the Times that the Enron collapse was the outgrowth of the actions of the company's chief financial officer, Andrew Fastow. Fastow has pleaded guilty to charges of conspiracy to commit wire fraud and conspiracy to commit securities fraud. He has negotiated a 10-y prison term and agreed to cooperate with the Justice Dept's ongoing investigation of Enron. US wants reconstruction fund to pay Saddam debts Fury as State Dept plans to raid rebuilding budget to pay off $150 bn bill. Washington (Observer). The US is proposing to divert funds earmarked for the reconstruction of Iraq to pay off the war-torn country's massive #150 bn internat'l debt and reparations bill. A leaked letter from the US State Dept recommends deducting up to $640 mn from the $18.4 bn reconstruction budget to pay the cost of cancelling Iraqi debt run up by the country's imprisoned former ruler, Saddam Hussein. The move, coming as the US prepares to hand sovereignty over to an unelected Iraqi govt, will anger campaigners who believe the country should not be made to pay for the deeds of Saddam. Justin Alexander, coordinator of Jubilee Iraq, said: 'This is an unexpected development, but it is an indication of US cynicism.' The issue of cancelling Iraqi debt will be raised at this weekend's summit between George Bush and EU leaders in Ireland. A statement is expected today, but a final deal will not be reached until the end of the y. Meanwhile, the UN is expected this wk to increase Iraq's reparations bill from the $30 bn already outstanding. Protests are expected at UN offices in Geneva in coming days. Iraq is already heading for an economic meltdown, which would wreak further devastation on the country, as a result of the debt and reparations bill. Increased oil revenues are too uncertain to prevent it. US Nat'l Security Adviser Condoleeza Rice last wk stated Iraq would have to draw up a long-term programme of privatisations to pay back debt. Iraq's $150 bn debt arises out of loans dating back to its bloody war against Iran during the Eighties. The country owes another $30 bn in reparation payments for damage inflicted on neighbouring countries such as Kuwait during the invasion in 1990. Internat'l efforts are being made to write off 2/3 of the debt. 'Even with the best deal rich countries are likely to offer Iraq, its debt will still exceed the country's health and education budget and will devastate a country that is desperately poor and in danger of civil war,' said Alexander. 'Quite apart from the injustice of requiring Iraqis to pay debts incurred by Saddam Hussein, it is economically crazy to expect the repayment of so much, because it will send the country into a tailspin.' Iraq owes most of the money to other Arab nations, but a substantial chunk of its debt is held by some of the world's richest countries. Germany is owed nearly #3 bn and Brit more than #1 bn. The $muli bn robbery the US calls reconstruction The shameless corporate feeding frenzy in Iraq is fuelling the resistance Baghdad (Guardian). Good news out of Baghdad: the Program Management Office, which oversees the $18.4 bn in US reconstruction funds, has finally set a goal it can meet. Sure, electricity is below pre-war levels, the streets are rivers of sewage and more Iraqis have been fired than hired. But now the PMO has contracted the Brit mercenary firm Aegis to protect its employees from "assassination, kidnapping, injury and" -- get this -- "embarrassment". I don't know if Aegis will succeed in protecting PMO employees from violent attack, but embarrassment? I'd say mission already accomplished. The people in charge of rebuilding Iraq can't be embarrassed, because, clearly, they have no shame. In the run-up to the Jun 30 underhand (sorry, I can't bring myself to call it a "handover"), US occupation powers have been unabashed in their efforts to steal money that is supposed to aid a war-ravaged people. The state dept has taken $184 mn earmarked for drinking water projects and moved it to the budget for the lavish new US embassy in Saddam Hussein's former palace. Short of $1 bn for the embassy, Richard Armitage, the deputy secretary of state, said he might have to "rob from Peter in my fiefdom to pay Paul". In fact, he is robbing Iraq's people, who, according to a recent study by the consumer group Public Citizen, are facing "massive outbreaks of cholera, diarrhoea, nausea and kidney stones" from drinking contaminated water. If the occupation chief Paul Bremer and his staff were capable of embarrassment, they might be a little sheepish about having spent only $3.2 bn of the $18.4 bn Congress allotted -- the reason the reconstruction is so disastrously behind schedule. At first, Bremer said the money would be spent by the time Iraq was sovereign, but apparently someone had a better idea: parcel it out over 5 y so Ambassador John Negroponte can use it as leverage. With $15 bn outstanding, how likely are Iraq's politicians to refuse US demands for military bases and economic "reforms"? Unwilling to let go of their own money, the shameless ones have had no qualms about dipping into funds belonging to Iraqis. After losing the fight to keep control of Iraq's oil money after the underhand, occupation authorities grabbed $2.5 bn of those revenues and are now spending the money on projects that are supposedly already covered by American tax dollars. But then, if financial scandals made you blush, the entire reconstruction of Iraq would be pretty mortifying. From the start, its architects rejected the idea that it should be a New Deal-style public works project for Iraqis to reclaim their country. Instead, it was treated as an ideological experiment in privatisation. The dream was for multinat'l firms, mostly from the US, to swoop in and dazzle the Iraqis with their speed and efficiency. Iraqis saw something else: desperately needed jobs going to Americans, Europeans and S Asians; roads crowded with trucks shipping in supplies produced in foreign plants, while Iraqi factories were not even supplied with emergency generators. As a result, the reconstruction was seen not as a recovery from war but as an extension of the occupation, a foreign invasion of a different sort. And so, as the resistance grew, the reconstruction itself became a prime target. The contractors have responded by behaving even more like an invading army, building elaborate fortresses in the green zone -- the walled-in city within a city that houses the occupation authority in Baghdad -- and surrounding themselves with mercenaries. And being hated is expensive. According to the latest estimates, security costs are eating up 25% of reconstruction contracts -- money not being spent on hospitals, water-treatment plants or telephone exchanges. Meanwhile, insurance brokers selling sudden-death policies to contractors in Iraq have doubled their premiums, with insurance costs reaching 30% of payroll. That means many companies are spending 1/2 their budgets arming and insuring themselves against the people they are supposedly in Iraq to help. And, according to Charles Adwan of Transparency Internat'l, quoted on US Nat'l Public Radio's Marketplace programme, "at least 20% of US spending in Iraq is lost to corruption". How much is actually left over for reconstruction? Don't do the maths. Rather than models of speed and efficiency, the contractors look more like over-charging, under-performing, lumbering beasts, barely able to move for fear of the hatred they have helped generate. The problem goes well beyond the latest reports of Halliburton drivers abandoning $85,000 trucks on the road because they don't carry spare tyres. Private contractors are also accused of playing leadership roles in the torture of prisoners at Abu Ghraib. A landmark class-action lawsuit filed by the Centre for Constitutional Rights alleges that Titan Corporation and CACI Internat'l conspired to "humiliate, torture and abuse persons" in order to increase demand for their "interrogation services". And then there's Aegis, the company being paid $293 mn to save the PMO from embarrassment. It turns out that Aegis's CEO, Tim Spicer, has a bit of an embarrassing past himself. In the 90s, he helped to put down rebels and stage a military coup in PNG, as well as hatching a plan to break an arms embargo in Sierra Leone. If Iraq's occupiers were capable of feeling shame, they might have responded by imposing tough new regulations. Instead, Senate Republicans have just defeated an attempt to bar private contractors from interrogating prisoners and also voted down a proposal to impose stiffer penalties on contractors who overcharge. Meanwhile, the Whitehouse is also trying to get immunity from prosecution for US contractors in Iraq and has requested the exemption from the new PM, Iyad Allawi. It seems likely that Allawi will agree, since he is, after all, a kind of US contractor himself. A former CIA spy, he is already threatening to declare martial law, while his defence minister says of resistance fighters: "We will cut off their hands, and we will behead them." In a final feat of out-sourcing, Iraqi governance has been sub-contracted to even more brutal surrogates. Is this embarrassing, after an invasion to overthrow a dictatorship? Not at all; this is what the occupiers call "sovereignty". The Aegis guys can relax -- embarrassment is not going to be an issue. "Fahrenheit 9/11" tops $8 mn in first day LA (AP). "Fahrenheit 9/11," Michael Moore's assault on Pres Bush, took in $8.2 million to $8.4 million in its first day, positioning it as the weekend's No. 1 film, its distributors said Sat. Based on Fri's numbers, "Fahrenheit 9/11" was on track for an opening weekend that would surpass the $21.6 million total gross of Moore's "Bowling for Columbine," his 2002 film that earned him an Academy Award for best documentary. "Bowling for Columbine" holds the record for highest domestic gross among documentaries, excluding concert films and movies made for huge-screen IMAX theatres. Fri grosses for "Fahrenheit 9/11" ran about $1.5 million ahead of its closest competitor, the Wayans brothers comedy "White Chicks." The performance of "Fahrenheit 9/11" was even more remarkable considering it played in just 868 theaters, fewer than a 3rd the number for "White Chicks." "Fahrenheit 9/11" benefited from a flurry of praise and condemnation. Supporters mobilised liberal-minded audiences to see it over opening weekend to counter efforts by some right-wing groups to discredit the film. "It always helps when there's a group out there that says, 'Don't go see this movie. It's bad for you,'" said Jonathan Sehring, president of IFC Films, one of the film's distributors. "Fahrenheit 9/11" paints Bush as a neglectful president who ignored terrorism warnings before Sep 11, then stirred up fear of more attacks to win public support for the Iraq war. The movie won the top honour at the Cannes Film Festival in May. The film has ridden a wave of publicity since just before Cannes, when Moore began assailing Disney for refusing to let subsidiary Miramax release "Fahrenheit 9/11" because of its political content. Miramax bosses Harvey and Bob Weinstein bought back the film and hooked up with Lions Gate Films and IFC to distribute it. The fury over "Fahrenheit 9/11" resembled the firestorm created by Mel Gibson's "The Passion of the Christ," which rose to blockbuster status amid debate over whether it was anti-Semitic. "It's like how 'The Passion of the Christ' redefined what a certain genre of movie could do at the box office, 'Fahrenheit 9/11' is doing the same thing," said Paul Dergarabedian, president of box-office tracker Exhibitor Relations. "This blows away any conceivable record for box office of a documentary." Canada's Liberal Party could lose majority Ottawa (AP). Embarrassed by financial scandal and hard-pressed by a newly united conservative opp'n, Canada's Liberal Party heads into nat'l elections Mon in grave danger of losing the parliamentary majority it has held since 1993. The result, regardless of who gets the most votes, could be one of Canada's most unstable govts in decades -- perhaps hesitant to make bold foreign policy commitments or other tough political decisions. The final batch of opinion polls suggest that both the Liberals, headed by PM Paul Martin, and the Conservative Party will fall short of an outright majority of the House of Commons' 308 seats. In that case, the party with the most seats would face the task of forming a minority govt by wooing smaller parties -- the separatist Bloc Quebecois and left-wing New Democratic Party -- into potentially awkward and shifting alliances. Canada's last minority govt was in 1979, and it lasted only 6 m. Recent nat'l polls have the 2 major parties virtually deadlocked, each backed by almost 1/3 of the voters, with the rest split among undecideds, the New Democrats and the Bloc Quebecois -- which operates only in Quebec. If the Conservatives get to form a govt, the new prime minister will be Stephen Harper, 45, a former Parliament member from Alberta who has devoted much of the past decade to strengthening and unifying Canada's right-of-centre factions. He has promised to cut middle-class taxes, increase defence spending, expand military ranks from 60,000 to 80,000, and scrap a mandatory nat'l registry of firearms. The Liberals' central campaign promise is to pump bn of dollars more into the nat'l health care system to reduce sometimes agonisingly long waits for medical procedures. Martin, 65, took over as Liberal PM in Dec, without an election, when Jean Chretien stepped down after 10 y in power. Though sometimes at odds with Chretien, Martin had served him ably as a shrewd, deficit-slashing finance minister. Now, Martin's decision to call elections this m -- a y sooner than required -- is being second-guessed as voters signal a weariness with Liberal rule. The Conservatives have surged in the polls, and the Liberals have been tarnished by revelations that tens of mns of dollars in govt funds were improperly diverted to Liberal-aligned advertising companies in Quebec during the 1990s. "The Conservatives' message is a very negative message," said University of Calgary political scientist Barry Cooper, referring to Harper's emphasis on alleged Liberal corruption. "However, the Liberals have countered with their own negative message, that the Conservatives are scary and right-wing and not to be trusted." Harper expended considerable effort during the campaign denying his party would push Canada sharply to the right on social issues. He promised not to seek new restrictions on abortions, but said he would prefer that Parliament, not the courts, set nat'l policy on same-sex marriage, which is now legal in 3 provinces. The election marks the 1st nationwide test for Harper's revamped party, created last y as a fusion of the 136-yo Progressive Conservative Party and the western-based Canadian Alliance. Harper said that if elected to lead a minority govt, the Conservatives would probably not negotiate a power-sharing deal with the smaller parties, but rather seek their support on a vote-to-vote basis. He said neither the Bloc Quebecois, which favours independence for mostly French-speaking Quebec, nor the New Democratic Party, a favourite of labour unions, have enough ideological common ground with the Conservatives to fit as a full-fledged coalition partner. If the Liberals emerge from the election as weakened leaders of a minority govt, this could further aggravate the sometimes-strained relationship with Washington, said Joel Sokolsky, a Canadian political scientist who has taught at the Royal Military College of Canada and at Bridgewater State College in Massachusetts. The Liberals already have disappointed Pres Bush's Admin by skimping on defence spending and keeping Canadian troops out of Iraq. Canada must decide soon whether to participate in a new US missile defence program; a "No" might further bruise relations. "A Liberal minority dependent on the New Democrats would push Martin to the left on security issues," Sokolsky said. "From the American standpoint, that would be the worst outcome." The new Parliament will have 7 more members than the outgoing one, in which the Liberals hold 168 seats, the Conservatives 73, the Bloc Quebecois 33 and the New Democrats 14. There are 9 independents and 4 vacant seats. Greens reject endorsement for Ralph Nader Milwaukee (AP). The Green Party nominated Texas attorney David Cobb as its candidate for president Sat, rejecting Ralph Nader's efforts to secure the party's formal endorsement and likely access to the ballot in key states like Wisconsin and California. Nader, the party's candidate in 1996 and 2000, had told Green officials m ago he would not accept the party's nomination for president, preferring to build a coalition of 3rd-party groups and independents rather than running under one banner. Still, he openly courted their formal endorsement as a means to get on the ballot in the 22 states and Washington, DC, where the party has a ballot line. But 408 delegates voted for Cobb on the 2nd ballot to give him the nomination. In Oregon, meanwhile, Nader made another bid Sat to get 1,000 people together at a Portland high school to sign a petition to get him on the Nov ballot as an independent. A similar attempt in Apr drew 751 people. Election officials said they had counted 1,150 people when the second meeting convened Sat evening, leaving little margin for signatures that are later invalidated. Another complicating factor was a drive by Democrats to stack the room with committed Democrats who would take up space, but in the end decline to sign the petition. Republicans, on the other hand, were urged to show up and sign the petition so Nader could get on the ballot and, perhaps, take votes away from Democratic candidate John Kerry. Nader's supporters at the Green Party convention argued that an endorsement for him as the only real option for Greens if they hoped to maintain their nat'l profile and play a role in the presidential race. But Cobb has touted himself as a homegrown Green who would work to build the party from the ground up, while Nader has maintained he is not a member of the party and does not plan to join. Cobb went out of his way to praise Nader in accepting the nomination, but said later the vote was a sign the Green Party "has gotten out from under the shadow of a man who has probably cast a larger shadow than any other living American." The party's endorsement would not have guaranteed Nader the Green Party's ballot lines. Rather, it would have given state chapter officials the option of presenting Nader as the candidate of their choice for president to state election officials. Still, that prospect was much less daunting than other means for getting on the ballot. In California, for example, Nader will have to gather more than 150,000 signatures to get on the ballot as an independent. Nader tapped longtime Green activist Peter Camejo as his running mate this wk, a step his supporters hoped would bolster his chances of winning the party's endorsement. Many Democrats still blame Nader for Pres Bush's victory 4 y ago and fear he could still syphon off enough votes to hand the Republican a 2nd term. Nader recently was polling about 6% nat'ly, according to an Associated Press poll conducted by Ipsos-Public Affairs. Nader rep Kevin Zeese said the consumer activist knew he faced an uphill battle for the party's endorsement by electing in Dec not to participate in the primary process and not sending representatives to the party convention until this wk. He said Nader would now turn his attention to his drive to get on the ballot by other means in states where Greens have access and said Greens will not know until Election Day whether their decision to back someone else will pay off. Nader already has the backing of the Reform Party, which has ballot access in 7 states, but he has yet to be placed on any state ballots. Movie theatres fill in Washington to see Fahrenheit 9/11 Washington (AFP). Crowds in the US capital have flocked to the opening of Michael Moore's film Fahrenheit 9/11, about the Bush Admin in the lead up to the Sep 11 attacks, to see what the controversy is all about. Impatient viewers in Washington invaded cinemas as the movie opened. At a 14-screen multiplex theatre in Georgetown, in the heart of the US capital, the movie was being shown on 3 screens. Tickets had been sold out for days, and some people were forced to sit on the ground. The movie begins with the Nov 2000 US presidential election. For a few minutes Democrat Al Gore appears to be winning but he then concedes victory to Republican Bush. The camera pauses on Bush, who laughs nervously. Then there is footage of Bush on vacation at his ranch in Crawford, Texas. When the movie turns to the Sep 11, 2001 terror attacks in the United States, the screen goes dark, with only the sound effects telling the story. The film then moves to Iraq, where a woman is seen pleading to Allah after her uncle's home is destroyed in a US bombing. In another moving scene, the mother of a US soldier killed in Iraq breaks down in sobs as she talks about her son's death and her doubts about the reasons for going to war. Fahrenheit 9/11 appeared in 868 US theatres, a record for a documentary. It is unclear what effect, if any, the movie will have on the outcome of the US presidential election in Nov. Bush declares Iraq rifts healed Dublin (Reuters). US Pres George W Bush has declared an end to Western rifts over Iraq but has won little in his search for European military help in the country. "The bitter differences of the war are over," Mr Bush said. However, Mr Bush encountered strong anti-American criticism during the US-EU summit in Ireland, with protests delaying a final press conference. Fenced off from his detractors by 2,000 soldiers and 4,000 police -- 1/3 of the Irish security forces -- Mr Bush met European Union leaders in a W Irish castle. He has now flown to the Turkish capital, Ankara, where he is due to have talks with Turkey's Pres and PM before joining other world leaders at a NATO summit in Istanbul. NATO leaders are expected to rubber-stamp a deal to train Iraqi security forces, a concrete sign of new trans-Atlantic unity. But the deal falls far short of Washington's original goal of getting NATO troops into Iraq. Diplomats say it may be just the lowest common denominator the 2 sides can live with. Mr Bush has challenged European partners in the NATO military alliance to help him end the US-led occupation. "NATO has the capability and I believe the responsibility to help the Iraqi people defeat the terrorist threat that's facing their country," Mr Bush said. "The faster the Iraqis take over their own security needs, the faster the mission will end." In their private talks and a joint US-EU statement, European leaders made clear their disquiet over both the detention of terrorism suspects in Guantanamo Bay in Cuba and the US military abuse of prisoners at Iraq's Abu Ghraib jail. The statement pointedly stresses "the need for full respect of the Geneva Conventions". Mr Bush responded that the Abu Ghraib scandal made him "sick" and said in a separate statement that the US was fully committed to the Geneva Conventions. * "MacBush" Protesters have been kept well away from 16th century Dromoland Castle where Mr Bush met Irish PM Bertie Ahern, whose country holds the rotating EU presidency. "This summit has re-affirmed the strength, the depth and the significance of our relationship in a spirit of partnership," Mr Ahern said. But as on Mr Bush's previous trips to Europe, few on Ireland's streets are ready to forgive and forget the US-led invasion. About 10,000 protesters took to Dublin's streets on Fri. While demos close to the summit venue have been smaller, they made up for low numbers with high theatre. One group staged a version of Shakespeare's tragedy Macbeth at a police roadblock 1 km from the castle, with "MacBush" cast as the ruthless Scottish king. "The Irish Govt has no guts," demonstrator Robert Sheehy said. "It should stand up to Bush and tell him we don't want his war, we don't want his planes at our airport." The whistling and jeering is a sharp contrast to the jubilant welcomes usually afforded to American presidents. Mr Bush shrugs off his low standing in Europe, saying the polls he cares most about "are those that are going to take place in early Nov" to elect the next US pres. "As far as my own personal standing goes, my job is to do my job," he said. "I will lead and we'll just let the chips fall where they may." Czech govt falls as PM resigns Prague (Reuters). Czech PM Vladimir Spidla has resigned, becoming the first leader of an EU country to pay for a dismal showing in European Parliament elections this m. Mr Spidla narrowly survived a no-confidence vote by his Social Democratic Party earlier in the day. Critics opposed to economic austerity measures fell just short of a required 3/5 majority to remove him. "When it became apparent I do not have the support of my own party, I cannot continue as premier," he said. "I will formally inform the cabinet of the resignation on Wed." Mr Spidla, who headed a centre-left coalition govt, has helped to steer the Czech Republic to EU membership on May 1. "The confidence in the Govt was shaken by the result of the European election and the Social Democratic Party reacted in this way," he said. Mr Spidla's resignation will automatically trigger the fall of the 3-party coalition, which also includes the centrist Christian Democrats and the right-wing Freedom Union. The Social Democrats are the biggest party. Pres Vaclav Klaus will be in charge of appointing another prime minister who will try to form a new cabinet. Mr Klaus's rep says the Pres would not take any steps until he meets Mr Spidla about the resignation. Another bomb explodes in Istanbul ahead of NATO summit Istanbul (AFP). A small bomb attached to a banner with an anti-NATO message has exploded in Istanbul just days ahead of the alliance's summit, but no one was injured, police said. The bomb went off as police were sealing off a footbridge in the Bahcelievler district in the city's European quarter where the banner was hung. The bomb used was a small time-controlled device. Police immediately closed the area to traffic and detonated a second package attached to the banner, which was found to contain no explosives. The banner attached to the explosive device read "KP-IO/Murderer NATO". It was not clear what the "KP-IO" part of the message referred to, police said. Sat's explosion came 2 days after 4 people were killed and 21 wounded when a bomb went off in a crowded public bus. Turkish authorities said that a radical left-wing militant wanted by police for past violent acts was behind that bombing. Turkish security forces have been put on high alert ahead of the summit due to be held Mon and Tue, to be attended by world leaders including US Pres George W Bush. US committed to Geneva Conventions: Bush Dublin (AFP). Pres George W Bush says the United States is committed to upholding the Geneva Conventions, in a statement marking the UN Internat'l Day in Support of Victims of Torture. He pledges to prevent cruel and unusual punishment and hold accountable any violators of the policy. "The American people were horrified by the abuse of detainees at Abu Ghraib prison in Iraq," Mr Bush said. "These acts were wrong. They were inconsistent with our policies and our values as a nation. "We will investigate and prosecute all acts of torture and undertake to prevent other cruel and unusual punishment in all territory under our jurisdiction." The statement says the US reaffirms its commitment to the worldwide elimination of torture and the Geneva Conventions. "These conventions provide important protections designed to reduce human suffering in armed conflict," it said. "We expect other nations to treat our service members and civilians in accordance with the Geneva Conventions. "Our armed forces are committed to complying with them and to holding accountable those in our military who do not." Brit Foreign Secretary Jack Straw says the UK, plagued for months by allegations its troops have also abused prisoners in Iraq, will do everything possible to eliminate torture around the world. "We vehemently oppose torture as a matter of fundamental principle," Mr Straw said. "Torture is absolutely prohibited in internat'l law and is to be condemned." Mr Straw says the seriousness with which Brit is responding to allegations of brutality by Brit troops in Iraq is "a true test of its commitment to human rights and internat'l humanitarian law". In 2003, Brit became only the 3rd country in the world to sign and ratify the optional protocol to the UN Convention Against Torture. The protocol makes a series of conditions for the treatment of prisoners, for example, stipulating that places of detention should be inspected by internat'l teams. Living in Iraq, US army-style Insurgent attacks breed paranoia. 'This is all a waste of time. I joined the Nat'l Guard to defend America. We should not be leaving American soil.' -- Soldier, Camp Gunslinger Camp Gunslinger, Baghdad (Toronto Star). It is the 1st joint Iraqi-American operation for the soldiers of Alpha Company, and they don't like it one bit. At 45C, the acrid air feels like fire in the lungs. But that's not the problem. The problem is that the gates of the US Army's Camp Gunslinger, here on the N outskirts of Baghdad, just got hit by another mortar round. Someone out there is taking potshots. Again. And for the 4 soldiers hunkered inside their enhanced-armour Humvee, the prime suspect stands among the Iraqi allies with whom they are about to entrust their lives. "Who's he talking to? Who the hell is he talking to?" shouts an incredulous lieutenant behind the wheel of the idling troop carrier. He is waggling his finger toward one of 11 Iraqi Nat'l Guardsmen standing apart from the main group with a police radio at his ear. "There's nobody in radio range. Nobody he should be talking to. What the hell's going on?" It is midday Thu and all of Iraq seems to be exploding. Multiple morning car bombs in Mosul, timed to coincide with brazen insurgent attacks in Baquba, Fallujah and Ramadi. The death toll, already well on its way to what will be 107, has forced a quick change of plan. Alpha Company, of 3rd Battalion, 39th Infantry Brigade, is abandoning its original assignment. Instead, it will assist these fledgling Iraqi recruits to filter highway traffic en route to Baghdad from the dissolute Sunni Triangle. The immediate worry is that Baghdad, as always, remains the target for a new campaign of car bombers and assassins dedicated to disrupting the official handover to Iraqi self-rule, now just 4 days away. But the larger paranoia for the Americans of Camp Gunslinger is whether the Iraqis they are about to join up with are with them or against them. The night before this mission, one soldier reflected bitterly on all those m of "cultural training" he received back at Fort Hood, Texas, before deploying in Apr. "Cultural training takes 10 seconds," he said: "The Iraqis hate us. They want to kill us. That's all you need to know." Such sentiments are now commonplace among the rank-and-file troops the Star surveyed during visits to 3 US-led coalition bases in and around the Iraqi capital this wk. Take the temperature of the average soldier, and you will find it high with frustration. Yesterday's CNN/USA Today poll showing an unprecedented 54 % of Americans now believe the invasion of Iraq was a mistake underscores the sense that those now "in-country" are trapped in an assignment that may bring them no glory. That they want out, there can be no doubt. And most now accept that the continuing insurgency, whatever its genesis, is a disease they simply cannot cure. But until the ragtag and under-trained Iraqis -- still courageous enough to volunteer for security positions -- can hold the country together on their own, they know they won't be going anywhere. "What it boils down to now is the Iraqis have to finish the job," said Capt Joel Lynch, leader of Alpha Company. "We'll cover their backs. But they're the ones who know the terrain and the people. It's the only way." Lynch is mindful of the shower-room talk among his soldiers; many US soldiers are beginning to wonder if they aren't the problem. Could it be that the US Army's very presence is a guarantee of perpetual insurgency? "Who can really answer that?" wonders Lynch. "It's kind of difficult to roll the dice and pull out a whole coalition on that idea." Most of the men at Gunslinger are with the 39th Infantry, comprised entirely of men from Arkansas. Not regular army, but US Nat'l Guardsmen, from all walks of life. One installs telephone systems for a living, another sells Kawasaki motorcycles, a 3rd said he left his restaurant in the care of a brother when the call-up notice came. A few joined the Guard after 9/11, and it is they more than the others who remain gung-ho about the job at hand. Others saw enlistment in the Guard as a way to pay for college. Most, however, were banking on Guard duty amounting to nothing more than 2 wk a y and the occasional weekend. And now they find themselves at the least hospitable of the army's new network of FOBs -- Forward Operating Bases -- that were built for the 2nd wave of soldiers who arrived this spring for what is dubbed Operation Iraqi Freedom II. Of the 1/2-dozen facilities in and around Baghdad, Gunslinger is an act of improvisation, to say the least. Temporary plumbing pipes tail around the outside of looted buildings, inside one of which a command centre and impromptu barracks have been jerry-rigged with dodgy, but crucial, air conditioning. It is rustic, but it works -- and no other location would suffice, since it lies adjacent to the largest water treatment plant in all of Baghdad, a facility that must be protected. Gunslinger gets twice-daily convoys of stale food from the far more impressive Camp Cooke, where the wonders of modern military frills are a sight to behold. For an army about to lose the title of occupier, the vast and constantly expanding Cooke facility gives the impression none of these soldiers will be leaving anytime soon. And it is but one of a 1/2-dozen bases in and around Baghdad built over the winter with a budget from the Pentagon of $800 mn. Erected on the badly looted remnants of the Saddam era's largest air force facility, Camp Cooke, just N of the Iraqi capital at the town of Taji, is now so large that shuttle buses ease weary soldiers' feet. The only place the buses don't go is what is known as "The Boneyard" -- a dumping ground where the former Iraqi regime's heavy metal has been sent. Yet The Boneyard has become a favourite site for US troops to gather virtual war trophies. Though they are forbidden from bringing home any such loot, the troops at Cooke have grown fond of spray-painting messages to their loved ones on many 100s of wrecked tanks, jeeps, army trucks and artillery cannons that once belonged to Saddam. Cooke's Internet cafe makes sending home digital photos a breeze. The residents of Cooke are overwhelmingly members of the US 1st Cavalry Division, for whom the entire network of FOBs around Baghdad were built. The main body began arriving in Mar, just as a 2nd front of insurgency -- that of radical Shiite cleric Moqtada al-Sadr -- was about to catch fire. With his Mahdi Army creating havoc to the S and the Sunni Triangle getting hotter on all sides, the Cavalry's awakening to its new assignment was far ruder than advertised. Then came the Abu Ghraib prison abuse scandal, a subject few soldiers here are inclined to discuss. One 1st Calvary infantry lieutenant told the Star his 1st reaction upon seeing the now infamous images from Abu Ghraib was shock. "Then, I just couldn't help but think: 'You imbeciles. You actually took pictures.' What idiots," he said. "Then finally, it dawned on me. Those pictures just put my life at risk. We just bought ourselves a lot more mortar attacks, a lot more IEDs [improved explosive devices]." It can safely be said Col George Armstrong Custer would no longer recognise his Cavalry if he were to see it today. There is not a horse on site -- the "First Team," as it is nicknamed, dismounted formally in 1943. But the army that once fought Pancho Villa now brings with it heavy armour and an air support fleet of Apache, Black Hawk and workhorse Chinook helicopters. Sgt David Snyder, a platoon leader and Black Hawk pilot, spoke to the Star about the unknowns of flying over Baghdad. All traffic in and out of Camp Cooke hugs the ground for the duration of the journey. "I've had rocks hit us. I've had soccer balls almost hit us, if you can believe it. Some of these guys can really kick a ball," said Snyder. "But I'd still rather be up in the air where we've got a big field of vision. We just don't know what will be down there next." A certain number of soldiers throughout the camps take the line that everything is fine. Or, rather, much finer than the media is letting on. One such Cavalry specialist confronted this reporter during the week. His 1st act was to repeat a popular prank -- he pressed his hand on the "Press" label of my flak jacket, taking it to be a command rather than a sign of identification. Once he stopped laughing, he offered a sobering afterthought: "If you guys would just tell the truth, and if the Iraqis would have the guts to stand up and fight with the good guys, everything would be all right." But the truth -- or at least part of the truth -- is that the Iraq many of these soldiers see never extends "outside the wire." The enormous%age of US troops who never leave the base remains a sore point for those infantry who return dust-encrusted from patrols. Hitching a ride between bases this wk, a team of Arkansas Nat'l Guardsmen assigned the unenviable task of twice-daily LogPack runs -- more army jargon for Logistics Packages, meaning food and other essential supplies -- vented on that reality. "We're supporting our support people, because they're afraid to go outside. It's ridiculous." Nowhere is that bubble of insulation more evident than at North Victory Camp, still under construction on Saddam Hussein's former hunting grounds NE of Baghdad Internat'l Airport. If there were such a place as Stepford, Iraq, N Victory would be it. Here, the generals in command of the 1st Cavalry lord over what is emerging as one of the largest US base camps built since Vietnam. Among its attractions, a PX, or camp store, that would not seem out of place in the Wal-Mart portfolio. Here, in giant air-conditioned double-clamshell structure, soldiers browse through a cornucopia of American amusements, from CD and DVD players, televisions and satellite dishes to Weber barbecues, charcoal briquettes and flash-frozen Omaha T-bone steaks to drop on the grill, at $14.95 a pop. Among the war souvenirs: coffee mugs bearing slogans such as "Total Whoopass: Operation Iraqi Freedom" and "[There is no] Hard Rock Café, Baghdad"; T-shirts emblazoned "Who's Your Baghdaddio!" North Victory boasts Iraq's only Burger King, a mobile operation comprising 2 tractor-trailers -- but only for those willing to use their own cash, rather than accessing the thrice daily catered meals courtesy of the Pentagon contractor, Gulf Catering Co That food is served at no cost and in vast quantities in a massive new mess hall at N Victory that comes with attractions of its own. Among them, 2 wide-screen televisions piping in the latest from ESPN and Armed Forces Network. And last Sun, a uniformed Cavalry jazz trio just happened to be playing Miles Davis when the Star stumbled in. The tune was "Kinda Blue." The heat, surprisingly, is far less of an issue for these soldiers than one might imagine, given that the Cavalry has forgone tents for this assignment. Instead, soldiers are sleeping 2-to-a-room in a vast expanse of trailer parks. The white-walled trailers provide 4-metre-square rooms, each with one small window and, most crucially, air conditioning. Thus, a 45C day becomes 22C whenever a soldier can find an excuse to go to his room. The trailer homes have not yet acquired a nickname, unlike most things army. Given the environment, Ice Cubes might be appropriate. It all adds up to something that is not quite America, but nowhere nr Iraq. Yet for those who never travel beyond the limits of these bases, reality still comes crashing. Mortar and rocket strikes continue to rain periodically on their parade. Soldiers here whisper of the one that crashed into the mess hall at Camp Cooke. And the one that killed 4 soldiers in Apr, shortly upon arrival. And around Gunslinger, if nowhere else, the "aimers" are getting better, according to Sgt Lynch. "We found one launcher that was nothing more than a PVC pipe. Probably $20 was all they spent to rig the whole thing together," he said. "Somebody knows what they're doing. And they're getting closer." Like IEDs, the Americans can do nothing against the mortar attacks, many of which are drive-by, and in at least one instance, rigged to an inexpensive kitchen timer. The soldiers find themselves targets, rather than combatants. "They won't fight," complained one of Gunslinger's infantry. "They shoot and run. And when you get close to catching them, they take cover in a mosque, which we're not allowed to touch. "It's almost like kids playing tag: just as you get close enough to touch them, they say, 'Time out.'" The gunslinger soldier then added a surprising afterthought. "This sucks. They call us occupiers and I don't blame them. This is all a waste of time. I joined the Nat'l Guard to defend America. We should not be leaving American soil." Back in the Humvee full of paranoia, the operation begins. Sucking up their suspicions, the US soldiers swing into their agreed convoy position directly behind a truck carrying the Iraqi Guardsmen. The motorcade proceeds outside the wire and 10 minutes later arrives to set up its checkpoint at the northern entrance to Baghdad. What's different this time is that for the very 1st time, the Iraqis do the checking. US soldiers fall back in a supporting position. An army tent is erected, complete with air conditioner, but not before one of the Americans collapses in the heat. Bottles of water frozen hard the night before melt within the hour. The Iraqi Guardsmen are a ragtag lot, clad in 5 different camouflage uniform styles between the 11 of them. But they are keen. Taking position on the highway, they filter each Baghdad-bound vehicle using eyes that can see what the Americans cannot. "It's a work in progress," Capt Lynch acknowledges, wiping his brow as he watches from afar. "We've trained them. We've given them some time on the range and some of them actually are getting to be pretty good shots. "And now, finally, this is their 1st assignment. For everybody's sake, it has to succeed." Shiite party members killed in Iraq Baquba (AP). Attackers fired RPGs at the offices of a leading Shiite political party in Baquba on Sat, killing 3 people and wounding 2, hospital officials and witnesses said. The attack on the offices of Supreme Council of the Islamic Revolution in Iraq underscored the deep political and religious friction afflicting the country in the days leading to the transfer of sovereignty on Jun 30. The assailants killed only party members in the attack, said Maitham Ibrahim, who was wounded in the assault. The party, known as SCIRI, has long clashed with Saddam's loyalists in this town, which is inhabited by Sunnis, Shiites and Kurds. Baquba is 56 km NE of the capital Baghdad. It was one of several cities and towns targeted in a series of attacks on police stations and govt complexes on Thu. More than 100 people were killed. The US military accused Saddam Hussein's sympathisers for leading the insurgency in the area. Iraqi military won't get tanks Baghdad (AP). The lightly armed military taking shape in Iraq is far different from Saddam Hussein's massive force, and the United States appears to want it that way -- at least for the time being. "Right now tanks and heavy armament are not necessary," said Frederick C. Smith, the US snr adviser for nat'l security. "What's needed are well-trained, disciplined troops with the proper equipment." Rearming Iraq is a delicate undertaking. A robust military that can tamp down Iraq's guerrilla uprising is key to the American exit strategy. Too big a military brings forth alarming spectres of coups and threats against neighbours. Iraq needs a strong military to survive in one of the world's toughest regions -- and to wean itself from an unpopular dependence on the US, said Ibrahim al-Jaafari, one of Iraq's 2 incoming VPs. "We don't want to turn Iraq into an arsenal. We don't want the military to return to a strategy of aggression," al-Jaafari told The Associated Press. "But we want Iraq to be strong enough to return assaults from others. There must be an army with reasonable weapons that can make the country safe, so no one can assault it." Pres Ghazi al-Yawer has already called for doubling the size of the army, from the planned 3 infantry divisions to 6. And PM Iyad Allawi has appealed to other countries to donate military hardware to bolster Iraq's beleaguered forces. "Until our forces are fully capable we will continue to need support from our friends," Allawi said on Sun. Compared to Saddam's 400,000-man army, which boasted Soviet tanks and other heavy weapons, the Iraqi govt that takes power Wed will wield a token force. The army is expected to field some 35,000 soldiers early next y, equipped with light infantry weapons and non-armoured vehicles, Smith told reporters in a briefing on Thu. Iraq's Nat'l Guard, a growing internal security force formerly known as the Iraq Civil Defense Corps, counts some 30,000 members. The nascent air force owns just 2 light reconnaissance planes. The military's chief task is to fight resident guerrillas, not high-intensity warfare with a neighbouring state. "The general idea is that Iraq will not have an offensive capability that its neighbours find threatening," said Jeremy Binnie, an Iraq analyst with the London defence consultancy Jane's. "They'll be much lighter, mobile forces that can resist security threats when they arise, not like the previous forces organised to launch heavy armoured assaults." It is expected to take a y or more before Iraq's army can hold its own against well-armed Iraqi rebels, let alone handle an invasion from a neighbouring state. For the nr future, the 150,000 coalition troops who will remain here after the transfer of sovereignty Wed will guarantee Iraq is not invaded, Smith said after the briefing. He also said that if Iraqi forces wind up needing more protection, as the Americans did, the country would have to find a way to pay for it. The US is already spending $5 bn to equip Iraqi soldiers with light vehicles, AK-47s and body armour. "That will be a future decision of the Iraqi leadership," Smith said. "It will be dependent on their resources." American troops keep their casualties down by riding in tanks and armoured vehicles, which stand a better chance against roadside bombs and RPGs. The US also sends ground-attack jets to bomb rebel positions, and responds to mortar and rocket barrages with artillery fire. Iraqi forces lacking that kind of protection suffer higher casualties. A heavily armed military whose loyalties to the govt haven't been tested is another worry, especially when soldiers with previous allegiance to tribal or ethnic militias are brought in, Binnie said. For that reason US advisers say they built ethnically mixed battalions, and have not imported militias intact into the army. "We want to rebuild the army on new principles, new morals, balancing the different ethnic groups in Iraq," al-Jaafari said. Saddam's army favoured Sunni Muslim Arabs in its leadership -- mirroring those in govt -- and kept Shiites as its foot soldiers, who were sent in the 1980s to fight the Shiite army of Iran. That eight-y war cost mn of lives and finally ended when the 2 countries fought themselves to a virtual stalemate. Smith, the Pentagon's adviser, said the decision to avoid heavy weapons hinged on their expense and inappropriateness in the counterinsurgency fight, not a mistrust of the Iraqi military. He said he was "absolutely confident" the Iraqi army won't turn its weapons on US forces or the nascent Iraqi govt. UN to appoint new Iraq envoy UN (Al-Jazeera). Annan said he will name a new UN envoy to Iraq shortly Sec-Gen Kofi Annan said he expects to appoint a new Baghdad-based UN envoy next despite the upsurge in violence this week. Annan told reporters on Fri that the new appointment will be announced soon. "I will be naming a special representative shortly, and his duty station will be Baghdad," he said. Asked when, he replied, "Let's say in about a week, within a week." Annan ordered all UN internat'l staff to leave Iraq in Oct following 2 bombings at UN HQ and a spate of attacks targeting foreign workers. The 1st bombing on 19 Aug killed 22 people, including top UN envoy Sergio Vieira de Mello. Since the withdrawal, Annan has dispatched snr UN officials on special assignments, including special adviser Lakhdar Brahimi -- who helped put together the interim govt that will take power on 30 Jun -- and the UN elections chief Carina Perelli. * First snr UN official The new UN envoy would be the 1st snr official permanently based in Iraq since Oct, but Annan has said he won't send large numbers of UN staff back to Iraq until the security situation improves. Even though the current UN mission for Iraq works out of HQ in neighbouring Amman, Jordan, Annan defended its effectiveness. "The UN is doing everything it can to help Iraqis prepare for free and credible elections in Jan next y," he said. "It is vital that the interim govt is given a real chance to exercise sovereignty in the meantime. I appeal to all concerned to do what they can to facilitate its formidable task." Annan said Perelli's team helped put in place the legal framework for elections and a team of Iraqis was now being trained in Mexico to prepare for the elections. * Operating from Jordan In addition to helping with elections, and eventually with the drafting of a new Iraqi constitution, Annan said UN staff in Amman have been operating in Iraq using local staff. The UN Development Programme, for example, is handling a $200 mn programme with Iraqi staff, he said. "We are doing whatever we can from Amman, and where necessary we do cross-border trips," he said. "We are trying to find creative ways to assist without necessarily over-exposing our staff." There are limits to what force alone can do said the UN's Annan. The UN Sec Council approved a major role for the UN after the handover of power, but made it contingent on security conditions, leaving it up to Annan to decide when staff should return. He stressed that the electoral process and the political transition that the UN just helped with "are very critical activities." "Quite frankly, if we are going to resolve the conflict in Iraq, it's through political reconciliation, it's through political work, it's through inclusive, participatory elections and the nat'l conference that will be held next m" to bring all parts of Iraqi society together, Annan said. "There are limits to what force alone can do; you have to go the political route," he stressed. "So please do not underestimate efforts to get the political process going and to get the Iraqis engaged in talking to each other, democratically and otherwise. And I think that that is, in the long run, going to make much more difference than any force you can put in," Annan said. New Iraq PM promises amnesty for insurgents Allawi sympathy for 'lawful' resistance. Leader rejects US model of democracy. Baghdad (Independent). Days before he is installed as Iraq's interim PM, Iyad Allawi has expressed understanding for Iraqis who have acted against the US-led occupation "out of a sense of desperation", and says that he plans to offer them an amnesty. Writing exclusively in this newspaper just ahead of the official handover of sovereignty to his Admin on Wed, Dr Allawi seeks to establish some distance between himself and his backers, Tony Blair and George Bush. He implicitly criticises the US decision to disband the Iraqi army immediately after the war, warns that Iraqi democracy "should not be a replica of an imported model from the US, Brit, or ... any other country", and stresses that the world must carry out its pledges of economic help. The most startling departure, however, is the interim PM's comment that his govt "will make a clear distinction between those Iraqis who have acted against the occupation out of a sense of desperation, and those foreign terrorist fundamentalists and criminals whose sole objective is to kill and maim innocent people and to see Iraq fail". The objective will be "to reach out to the former group in a nat'l reconciliation effort and invite them to join us in a fresh start to build our country's future together, while at the same time isolating and defeating the latter group". To achieve this "we are drawing up plans to provide amnesty to Iraqis who supported the so-called resistance without committing crimes". Even some members and units of the newly trained security forces have joined the uprising against the invaders. Dr Allawi's words appear aimed not only at reassuring them, but at exploiting a widening split among opponents of the occupation. Insurgents killed at least 17 Iraqis yesterday, when a car bomb was detonated in Hilla, S of Baghdad. And a group led by Abu Musab al-Zarqawi, accused by Washington of links with al-Qa'ida, said it had kidnapped 3 Turkish workers and threatened to behead them. The storming of police stations and the killing of so many Iraqi police is creating a backlash against the Islamic resistance. Shia and Sunni Muslim preachers have denounced the death of 100 Iraqis in a co-ordinated offensive on Thu, and expressed fear that foreigners are hijacking the resistance. Anger at the attacks on the police is a boost for Dr Allawi, who has promised to restore order. Even Muqtada al-Sadr, the radical Shia cleric whose militia have been fighting US troops since the end of Mar, denounced the "terrorists and saboteurs". He offered to help police protect govt buildings, hospitals, pipelines and infrastructure. In Fallujah, seen as a Sunni hotbed, one armed group is making clear it believes the suicide bombings against Iraqi targets are discrediting their movement, and says it will scale down attacks on US forces for now. An aide to Dr Allawi said: "It is very important to distinguish between those who resisted occupation through desperation and those who are genuinely seeking to destabilise the country through terrorism ... An example of where the blind labelling of people caused much chaos was the disbanding of the entire army post-war. We are still suffering the consequences." Iraq violence may force state of emergency; NATO to help Baghdad (Khaleej Times). Iraq's defence minister said that a declaration of a state of emergency may be needed to deal with violence in Iraq as NATO members met to respond to a request for help from Iraq's interim PM. With only 5 days to go before the US-led coalition hands over power to an Iraqi interim govt, US warplanes bombed Fallujah for the 3rd time in a wk to root out rebels. In Baghdad, heavy weapons fire was heard from the W of the city and flashes of light illuminated the sky early Sat morning, an AFP correspondent reported, but the US military had no immediate comment. In a separate incident, 4 RPGs were fired toward the US-coalition's Baghdad HQ, but the explosives fell short of their target, a US soldier said. There was also a failed bomb attack outside the house of the new deputy defence minister late Fri in the capital, the military said in a statement. Iraqi defence minister Hazem al-Shaalan told reporters: "We have an urgent plan for Baghdad and also for a state of emergency for other provinces," without giving the specifics of either measure. It was the 1st time any Iraqi official had named an area where emergency measures would be used. NATO ambassadors meanwhile met to address Iraqi PM Iyad Allawi's request for help training police and soldiers. The special session came as leaders of the 26-nation military alliance prepared to convene in Istanbul for a summit on Mon and Tue. US Pres George W. Bush told Turkish NTV, "I think" NATO allies would help. A Whitehouse official added, "I would expect that NATO is going to be ready to help the Iraqis." Key NATO members Germany, France and Belgium opposed the US-led war to depose Saddam Hussein. France wants any agreement reached in Istanbul limited to training the Iraqi army and to exclude any direct role in the country. In Washington, US Deputy Secretary of Defense Paul Wolfowitz said Fri he hoped France and Germany will deploy troops to protect the UN mission in Iraq. UN officials in NY said deteriorating security made a return of the UN mission to Baghdad difficult. The UN pulled out of Iraq after a bomb last y killed 22 of its staff, including the chief of mission. Washington has turned to the UN to provide the legal umbrella for a broader internat'l participation in Iraq. The UN is charged with shepherding elections slated for Jan. The US-led coalition said Fri that the elections should reduce unrest. In Washington, the US Senate unanimously confirmed Gen George Casey, the US Army's second-highest-ranking official, to replace Gen Ricardo Sanchez as head of the multinat'l force in Iraq. Casey, 55, told senators that one of his goals was to have NATO send a force to Iraq to protect UN personnel overseeing elections. He also emphasised work with Iraqi authorities to put down recent violence and to create a strong Iraqi force, a task in which he said NATO could play a crucial role. In Iraq, officials said US warplanes dropped 14 bombs in strikes against targets in Fallujah and Baquba. The strike targeted what US officials said was a terrorist hideout in Fallujah. A snr military official said 20 to 25 people died in the attack. The total deaths from the 3 raids was 59 to 64 people, the US military said, warning that it would not shrink from carrying out further missions. The strikes left behind a shell-shocked city 50 km W of Baghdad. In the fighting, guerrillas pledged allegiance to a group called Tawhid wa al-Jihad (Unification and Holy War), a militant faction linked to Abu Mussab al-Zarqawi, whom Washington accuses of being linked with Al Qaeda. Tawhid al-Jihad claimed the beheadings of 26-yo American Nicholas Berg in early May and S Korean Kim Sun-Il on Tue. It has also threatened to kill Allawi. It was the 1st time the group had engaged directly in open fighting with the coalition, as opposed to planting bombs. Radical Shiite cleric Moqtada Sadr's armed militia sought to prove it served the nat'l interest Fri as it laid down its weapons and backed the country's interim govt in the run-up to Iraqi self rule on Jun 30. "There will not be a transfer of power to the Iraqi authorities," Sheikh Aws al-Khafaji said at Fri prayers in the Baghdad Shiite slum of Sadr City. "But so the Americans cannot say the Mehdi Army has prevented the transfer of power, we will follow the Marjaiya's [snr Shiite cleric's] orders and see what they [the Americans] truly do." In Karbala, a representative of Iraq's top Shiite cleric, Grand Ayatollah Ali al-Sistani, on Fri denounced the terror attacks and slammed Al Qaeda's top leaders. "Zarqawi, Zawahiri and bin Laden are filthy infidels who nurture malignance against Imam Ali and his sons," he added. 6 die in Iraq violence ahead of handover Renewed fighting in Fallujah. Baghdad (Reuters). There was renewed fighting in Fallujah, breaking a ceasefire agreed a day earlier between American troops and local Muslim leaders. A car bomb explosion killed a man and wounded 40 people in the Kurdish city of Arbil as insurgents kept up a bloody drive to derail Iraq's transition to an interim govt in 4 days' time. Gunmen assaulted a Shiite party building in Baquba, NW of Baghdad, killing 3 guards, and blew up a building used by interim PM Iyad Allawi's party. 2 guards were wounded in the attack on the office of the Supreme Council for Islamic Revolution in Iraq, a moderate Shiite group. One of them said the gunmen stormed the building in the mixed Sunni-Shiite town at 8.30 am local time. In a separate attack in Baquba, armed men chased the guards from a building used by Allawi's Iraqi Nat'l Accord group and then destroyed it with explosives, police said. A blast in Arbil, 350 km N of Baghdad, killed a shopkeeper and wounded Mahmoud Mohammed, culture minister in the Kurdish regional govt, in the head. Arbil has been relatively free of trouble since US-led forces invaded Iraq last y, though twin suicide attacks on Kurdish party offices in Feb killed more than 100 people. In another attack in the north, gunmen ambushed a police patrol 30 km south of Kirkuk on, killing one policeman and wounding another, police said. The US military said an American soldier died of his wounds overnight after an ambush in Baghdad. US and Iraqi officials say they expect more violence in the run-up to the Jun 30 handover of power. In a sign that the truce between Moqtada Al Sadr's Mehdi Army and the US led coalition may be fracturing in Najaff, militiamen loyal to the radical cleric fired on a US military convoy. The convoy of Humvees and trucks was shot at as it travelled on the outskirts of the holy city, 160 km S of Baghdad, where US forces spent wk putting down a rebellion by Shiite militiamen. There were no immediate reports of any casualties or damage in the exchange of fire. A string of bloody attacks on Thu killed about 100 people in 5 cities. A group led by Jordanian militant Abu Musab al-Zarqawi claimed responsibility for those attacks and on Fri US planes bombed what the US military called a "known Zarqawi network safe house" in the city of Fallujah, W of Baghdad. "Somewhere between 20 and 25 people were killed in today's strike," said a US-led coalition official after the raid, the 3rd on suspected Zarqawi safe houses in Fallujah this wk. Zarqawi, said by Washington to have links with al Qaeda, has claimed responsibility for several major attacks in Iraq, as well as the beheading of an American and a S Korean. Militants in Fallujah issued a statement on Fri denying Zarqawi was holed up in the town. Zarqawi threatened this wk to assassinate Allawi, who responded by vowing to crush him and other insurgents. A multinat'l force of 160,000 mostly US troops will stay to support Iraqi forces after Jun 30. Allawi has asked NATO to help train fledgling Iraqi security forces and alliance members are expected to respond positively at a NATO summit in Istanbul on Mon and Tue. NATO's role in Iraq will be a far cry from the deployment of troops originally sought by Washington. France and Germany, which opposed the Iraq war, opposed the idea. A mortar attack also took place in Mosul, where Aussie Army personnel are training members of the new Iraqi Army. No Aussie personnel were injured. An Army statement says 6 to 8 mortar rounds were fired, but only one landed inside the compound, injuring a number of Iraqi troops. Aussie and American medics treated the casualties. Zarqawi supporters threaten to behead 3 Turks Baghdad (Reuters). Suspected militants from Abu Musab al-Zarqawi's group have kidnapped 3 Turks in Iraq and is threatening to behead them unless Turkish firms and contractors leave within 72 hr, Al Jazeera television reports. The group's deadline would expire before the end of a 2-day NATO summit that is scheduled for Mon and Tue in Istanbul. US Pres George W Bush will attend the summit, where a NATO role in Iraq will be discussed. The Arabic channel reports it has received a statement and a videotape purportedly from the Jama'at al Tawhid and Jihad of Al Qaeda-linked operative Zarqawi. His group last wk claimed responsibility for beheading a S Korean hostage in Iraq. A brief video image shows 3 men, who are holding what appears to be passports, crouching before gunmen. Al Jazeera reports the men read out their names in Turkish on the recording. According to Al Jazeera, the statement calls on "Turkish forces and companies that support the occupation forces in Iraq" to leave by the deadline or the 3 workers would be killed. Turkey is not part of the multinat'l occupation force in Iraq but many Turks work as contractors supplying and supporting US-led forces. Al Jazeera also says the statement urges Turks to take to the streets to protest against Mr Bush's visit. On Tue, militants from Jamat al-Tawhid and Jihad beheaded S Korean contractor Kim Sun-il after Seoul rejected demands to pull military medics and engineers out of Iraq and drop plans to send more troops. Mr Kim's decapitation followed the beheading of US hostage Nicholas Berg in Iraq last m by the same group. Al Qaeda militants also beheaded American contractor Paul Johnson in Saudi Arabia last wk. US officials say Zarqawi is their top foe and "number one target" in Iraq. The US-led occupation forces have intensified their hunt for the Jordanian-born militant, who has a $10 mn bounty on his head. Deadly car bomb hits S Iraqi city Baghdad (AFP). A car bomb blast in the in the Iraqi city of Hilla, S of Baghdad, has killed up to 32 people nr the former Saddam mosque, named after the toppled Iraqi pres. The Arab satellite news channel Al-Jazeera says the blast killed 32 people and injured 22 more. The Qatar-based channel reports that the bomb caused substantial damage, including the destruction of 10 cars. Earlier, the deputy director of coalition operations, Brig Gen Mark Kimmitt, said the toll stood at 17 dead and 40 injured. "It is a suspected car bomb," Brig Gen Kimmitt said. Lt Col Robert Strzelecki, rep for the Polish-led force that patrols the city, says the blast occurred at 8.45 pm local time. The blast comes 4 days before the scheduled handover of power from the coalition to a caretaker interim Iraqi Govt. On Thu, at least 100 people were killed in a wave of bombings and attacks throughout Iraq. Iraq welcomes NATO training plan Baghdad (AFP). Iraq's interim Govt says it would welcome NATO troops in the country as the military alliance reached a deal on training its fledgling armed forces. A rep for the caretaker Iraqi Govt, which will take power on Wed, confirms that Iraq has asked for the help of the N Atlantic Treaty Organisation (NATO). It is seeking NATO help in training and equipping its forces as insurgency rages in the country. "We have asked the N Atlantic Treaty Organisation for help with the training of the new Iraqi army," Govt rep Gurgis Sada said. "But if NATO shows that it wants to have troops on the ground alongside the multinat'l force, they would be most welcome." NATO chief Jaap de Hoop Scheffer confirms that the alliance has reached a deal on training Iraqi armed forces, which is expected to be approved at a summit in Istanbul this wk. "NATO heads of state and govt are expected to approve this agreement at their summit meeting in Istanbul on Jun 28," he said. In a recent letter to the 26-member military alliance, Iraqi Prime Min Iyad Allawi had asked for help to train the army and other, unspecified, "forms of technical assistance". The US-led coalition is due to transfer sovereignty to Mr Allawi's caretaker Govt in 4 days, but a large contingent of US and other countries' troops will remain on the ground to help with security. Mr Allawi has already streamlined Iraq's command structure. He has redirected the bulk of the country's armed forces against the insurgents, who have left 100s dead in scores of attacks since his Govt was unveiled on Jun 1. He has also announced an elite anti-insurgency force. That announcement was made after 35 people were killed and 138 injured in a suicide bombing at a recruitment centre for the new army. Iraq's armed forces are in an embryonic state after the dissolution of the former army, which was about 400,000 strong, and the destruction and looting of its equipment. The new army currently has about 10,000 members with the aim of increasing the figure to 40,000. It is still poorly equipped and trained, and desertions are common in the face of persistent attacks from insurgents. Close call tests Aust troops' response Mortars fired within 30-50 metres of Aussie troops. Mosul (ABC, Matt Pulford and Geoff Thompson). Aussie soldiers training Iraqi army recruits nr the northern city of Mosul narrowly escaped injury yesterday, when insurgents fired mortar rounds at their camp. 6 Iraqi officers were wounded in the attack and one was hospitalised. Just before 8.00 am yesterday Aussie troops were sitting at breakfast at an Iraqi army training camp nr Mosul when they heard mortar rounds exploding nearby. The Aussie commanding officer, Lt-Col Ian Cruickshank, says it was an unexpected start to the day. "We heard a couple of rounds impacting in the local area," he said. "We ascertained that they were probably mortar rounds, obviously fired by some threat forces. "On the 3rd impact we realised that the location we currently reside in was being mortared." "I think what they've done is they've fired the 1st couple of rounds just to range in on the position and once they got their range they started walking, as we describe it, the rounds towards us," Lt Col Cruickshank said. 6 to 8 rounds later, one landed inside the old fort compound where Iraqi and Aussie troops were sheltering. "The closest rounds I guess were something in the vicinity of 30 to 40 metres away," Lt Col Cruickshank said. No Aussies were injured but 6 Iraqi officers were and one of them was taken to a coalition hospital for treatment. Lt Col Cruickshank says the attack was a good test of procedures. "The Iraqis worked very well in consultation and concert with ourselves and the other coalition members," he said. "I was pretty satisfied, as the other coalition members were, with all the procedures that were conducted." Lt Col Cruickshank says a camera crew happened to be in the area at the time of the attack. "We had a camera crew here who were going to do some filming of some training that we had planned for the day," he said. "It was an interesting start to the day, something we that we hadn't planned obviously." Insurgency may delay Iraqi elections Baghdad (AFP). Iraq's tenuous security situation could delay nat'l elections by two months, according to interim PM Iyad Allawi. The elections are supposed to be held in Feb. "We are committed to elections and one of the tasks is really to work towards achieving these objectives," Mr Allawi told the CBS TV network. "However, security will be the main feature of whether we will be able to do it in Jan, Feb or Mar," he added. The former neurosurgeon has vowed to restore security to Iraq, which is currently plagued by a tenacious insurgency. The insurgency is threatening to derail the political process with its use of car bombings, mortars and rockets that have claimed the lives of 100s of Iraqis and US troops. Mr Allawi, a former member of Saddam Hussein's Baath Party, and his ministers have raised the idea of declaring emergency law in areas of Iraq as they seek to crush the insurgency. Mr Allawi says emergency measures are legal in the name of bringing peace to Iraq. "We are considering among other things a law which we are calling the defence of public safety ... which is still being considered," he said. He denies the law would serve as a form of martial law. "It would be empowering the Govt to take action and measures against criminals, apprehend them, question them, investigate and impose curfews whenever is necessary," he said. "These are all that we are calling the defence of public safety in Iraq." Mr Allawi says he expects a decision on the matter in the coming few days. Iraq plans amnesty for some insurgents Iyad Allawi ... amnesty planned for some insurgents. Baghdad (Reuters). Iraq's interim Prime Min is offering amnesty to his countrymen who have resisted the US occupation out of a sense of indignation, not destabilisation. Iyad Allawi says his Admin will have understanding for fellow Iraqis who have risen up against the occupation out of a sense of desperation. However, it will draw the line at those who had joined the foreign conspiracy to destabilise the country. "We are drawing up plans to provide amnesty to Iraqis who supported the so-called resistance without committing crimes, while isolating the hard-core elements of terrorists and criminals," Mr Allawi writes in the Independent on Sun newspaper. "The Govt will make a clear distinction between those Iraqis who have acted against the occupation out of a sense of desperation and those foreign terrorist fundamentalists and criminals whose sole objective is to kill and maim innocent people and to see Iraq fail." Mr Allawi says nat'l security is his top priority. "This mandates the rapid rebuilding of Iraq's key institutions for law enforcement including the army, police, border control and intel services," he wrote. But he insists such a rebirth will exclude former members of the security services known to have blood on their hands from working for Saddam. "The honour of decent Iraqi ex-officials, including military and police, should be restored, excluding of course those who committed heinous crimes against the nation," he wrote. He says economic regeneration, job creation and democracy will be the guiding lights of the new Iraq. Mr Allawi's interim Admin formally takes over from the US-dominated Coal'n Provisional Authority this wk. Iraq attack "shows troops must stay" John Anderson ... troops must remain in Iraq. Canberra. Dep PM John Anderson says an attack on Aussie forces in N Iraq this weekend is another reminder that AUS must keep its troops in Iraq. Aussie soldiers training Iraqi army recruits nr Mosul narrowly escaped injury yesterday, when insurgents fired mortar rounds at their camp. 6 Iraqi officers were wounded in the attack and one was hospitalised. Mr Anderson has told Channel 9 that the "evil" in Iraq must be resisted at all costs. He says the attack is "a reminder that we've got some morally and mentally deranged butchers out there, who want to assault decency everywhere". "You can't give in to these sorts of morally and mentally deranged butchers," Mr Anderson said. "What they are doing is so utterly appalling that the idea that you would hand them some sort of victory that would encourage them or others or play into the hands of their recruiters around the world is to me beyond the pale. "We have no choice -- this evil must be resisted at all costs and overcome." Mr Anderson added: "All of us are very conscious of the dangers the Aussies [in Iraq] face." * Unexpected The attack came just before 8.00 am yesterday, while Aussie troops were sitting at breakfast at an Iraqi army training camp nr Mosul. The Aussie commanding officer, Lt-Col Ian Cruickshank, says troops heard mortar rounds exploding nearby, an unexpected start to the day. "We heard a couple of rounds impacting in the local area," he said. "We ascertained that they were probably mortar rounds, obviously fired by some threat forces. "On the 3rd impact we realised that the location we currently reside in was being mortared." "I think what they've done is they've fired the 1st couple of rounds just to range in on the position and once they got their range they started walking, as we describe it, the rounds towards us," Lt Col Cruickshank said. 6 to 8 rounds later, one landed inside the old fort compound where Iraqi and Aussie troops were sheltering. "The closest rounds I guess were something in the vicinity of 30 to 40 metres away," Lt Col Cruickshank said. No Aussies were injured but 6 Iraqi officers were and one of them was taken to a coalition hospital for treatment. * Good test Lt Col Cruickshank says the attack was a good test of procedures. "The Iraqis worked very well in consultation and concert with ourselves and the other coalition members," he said. "I was pretty satisfied, as the other coalition members were, with all the procedures that were conducted." Lt Col Cruickshank says a camera crew happened to be in the area at the time of the attack. "We had a camera crew here who were going to do some filming of some training that we had planned for the day," he said. "It was an interesting start to the day, something we that we hadn't planned obviously." 9/11 commission links al-Qaeda, Iran Terrorist group may have aided Hezbollah in 1996 bombing of Saudi tower complex. Washington (WashPost). While it found no operational ties between al-Qaeda and Iraq, the commission investigating the Sep 11, 2001, attacks has concluded that Osama bin Laden's terrorist network had long-running contacts with Iraq's neighbour and historic foe, Iran. Al-Qaeda, the commission determined, may even have played a "yet unknown role" in aiding Hezbollah militants in the 1996 bombing of the Khobar Towers complex in Saudi Arabia, an attack the US has long blamed solely on Hezbollah and its Iranian sponsors. The notion that bin Laden might have had a hand in the Khobar bombing would mark a rare operational alliance between Sunni and Shiite Muslim groups that historically have been at odds. That possibility, largely overlooked in the furor of new revelations released last wk by the commission, comes amid worsening relations between the US and Iran, which announced Thu that it would resume building equipment necessary for a nuclear weapons program. The Sep 11 panel's findings on Iran have been eclipsed by the continuing political debate over Iraq, which the commission said had not developed a "collaborative relationship" with al-Qaeda despite limited contacts in the 1990s. That appeared to conflict with previous characterisations made by Pres George Bush, VP Dick Cheney and other Admin officials in their justifications for launching the war against Saddam Hussein. In relation to Iran, commission investigators said intel "showed far greater potential for collaboration between Hezbollah and al-Qaeda than many had previously thought." Iran is a primary sponsor of Hezbollah, the Lebanon-based anti-Israel group that the US has designated a terrorist organisation. The commission's Republican chairman, former NJ Gov Thomas Kean, also said in a television appearance last wk "there were a lot more active contacts, frankly, with Iran and with Pakistan than there were with Iraq." But perhaps most startling was the commission's finding that bin Laden may have played a role in the Khobar attack. While previous court filings and testimony have indicated that al-Qaeda and Iranian elements had contacts during the 1990s, US authorities have not publicly linked bin Laden or his operatives to that strike, which killed 19 US servicemen. A Jun 2001 indictment of 14 defendants in the case makes no mention of al-Qaeda or bin Laden and lays the organisational blame for the attacks solely on Hezbollah and Iran. Bruce Hoffman, a terrorism expert who heads the Washington office of the Rand Corp, said that while bin Laden's then-fledgling group was an early suspect in the blasts, "the evidence kept pointing to an Iranian connection, so people tended to discount a bin Laden connection." "What the commission report is raising is that the relationship might have been much tighter and was in fact operational and not just spiritual," Hoffman said. The broader notion of links between bin Laden's group and Hezbollah or hard-line elements in Iran's security forces has been a hot topic in US law enforcement and intel circles for ys. Many analysts have viewed such an alliance as dubious largely because of ancient animosities between Shiites and Sunnis. Several leaders of al-Qaeda, a Sunni organisation, have issued rabidly anti-Shiite proclamations. Nonetheless, the US has previously compiled evidence of limited contacts between Iranian interests and al-Qaeda. US officials alleged after the Sep 11 attacks that Iran was harbouring al-Qaeda militants who had fled Afghanistan following the US invasion there. Iran pushes ahead with uranium enrichment plans Tehran (AFP). Iran has told Brit, France and Germany it intends to resume work towards uranium enrichment. The statement goes against a resolution the 3 countries sponsored that criticised Tehran for failing to live up to pledges of total cooperation with the UN nuclear watchdog. Iran has not confirmed charges made Thu by Washington's top arms control official, John Bolton, that it had told the trio of its plans and that this was a direct violation of Iranian pledges to the Internat'l Atomic Energy Agency. The For Min has said only that Hassan Rowhani, head of Iran's Supreme Nat'l Sec Council and top nuclear negotiator, had sent a letter to the trio's FM's and to IAEA chief Mohamed ElBaradei that "outlined Iran's point of view on nuclear technology and its use." But Berlin, London and Paris confirmed Mr Bolton's charges and said they were preparing a joint response to Iran's announcement it was breaking a deal with them over the centrifuges. All expressed disappointment at the letter sent to them, in a move Bolton described as proof of the Islamic republic's intent to work on a secret nuclear weapons program. The question of the nuclear fuel cycle is a serious concern at the IAEA, which fears it could eventually be used for military purposes. Iran agreed last y to suspend enrichment following pressure from the IAEA, which is trying to verify whether Iran's nuclear programme is purely peaceful. Last Fri's IAEA resolution rebuked Iran for failing to come clean about its nuclear program, deploring the level of Iranian cooperation and calling for the 15-mo investigation into Iran's nuclear activities to be wrapped up within a few months. 5 Canadian flight surgeons pass ailing Afghan boy for trip to Canada Kabul (CP). Canadian military doctors poked, prodded and probed a dying Afghan boy Sat before finally declaring him fit to fly to Ottawa on Canada Day for what they hope will be life-saving heart surgery. 5 Canadian flight surgeons conducted x-rays, ultrasounds, blood pressure checks and blood tests on nine-yo Djamshid Djan Popal, whose plight one of them discovered in a remote mountain village far from their base. And Djamshid endured it all with nary a tear, "a brave son of Afghanistan," as one observer called him. The boy suffers from a congenital heart defect that cannot be corrected in his native country. His arm was so emaciated doctors had to wrap their smallest blood-pressure cuff around it 5 times before they could proceed. If their diagnosis using rudimentary equipment is correct, "there's a good chance we can cure this child," said Capt Americo Rodrigues, the army doctor from Toronto who found Djamshid during a clinic in the village of Mohla Mahmad Khail, 3-and-1/2 hr NE of the Afghan capital. "The good news is that the heart is functioning quite well even though it is in failure. We still have one or 2 m to do something." Financed by Saddique Khan of Hamilton, Djamshid will fly to Islamabad later this wk, where he will spend the night before travelling on Pakistan Internat'l Airways to Birmingham, England, then on to Toronto. He will then be taken to the Children's Hospital of Eastern Ontario in Ottawa, where he is expected to arrive on Fri. He will be accompanied by his father, Shafiullah, and Cpl Kevin Comeau, a Canadian army medic and paratrooper from Tabusintac, N B Comeau, who was on the armoured reconnaissance mission that found Djamshid, said the assignment is as nerve-wracking as any jump he's ever made. "It's a big responsibility and pretty well the whole country is going to know about this," said Comeau, an eight-y army veteran. "I just want to make sure everything goes the way it should." Comeau will be travelling with a Pashto-English dictionary and an Iridium satellite phone. "He'll never be far away from help," said Rodrigues. The boy is believed to have a condition known as patent ductus arteriosus, a birth defect where blood from the left side of the heart circulates back to the right side without taking its normal course through the body. In Canada, the condition is normally detected and easily corrected during a routine examination within hours of birth, usually with a common anti-inflammatory medication. Left uncorrected, the heart has to pump twice as much in order for it to provide the body with enough oxygenated blood to survive. Ultimately the heart is strained and enlarged. It begins to weaken and blood starts pooling in the liver. Patients suffer high blood pressure in the lungs and swelling of the ankles, followed by heart and liver failure, then death. The incidence is rare -- one in 2,500 N American births -- and nine-yos with the condition are almost unheard of. Specialists in Canada who have seen what limited diagnostics that have been done say there are other possible diagnoses that can only be detected with the kind of medical technology available in developed countries. Whatever it is, Djamshid's heart and liver are enlarged, signs that his condition is in its final -- and fatal -- stages and before Sat's run-up doctors feared he's been so damaged that even with medical intervention he may not survive. But Capt Michael Hughson, a military doctor from Fredericton, said the boy's kidneys were good, his liver was functioning and his oxygen levels were good. In fact, his blood oxygen content was 98% -- as good or better than most Canadian soldiers patrolling in the heat and altitude -- 2,100 m -- of Kabul. "No matter what the diagnosis is, if we don't do anything, he will die," said Rodrigues. "Once corrected, we expect him to lead a normal life." When Rodrigues confirmed their travel plans through an interpreter, Djamshid's father said it was "the most promising sentence I have ever heard." His son has been slowly dying for 3 y. "I miss his fights, his humour, his attention toward his younger brothers and sister -- and I can't imagine how happy I'll be when I see my son going to school and coming back home," he said, promising to sacrifice a goat if his son recovers. "I can't imagine how happy I'll be hearing his words, saying: 'Mom, I'm very hungry; I need to eat something.' Oh Allah almighty, save my child, my sweetheart, my echo, my soul, my shadow." "May Allah bless all the Canadian doctors and their families, especially their children." Russia to ship N Korea food aid Moscow (Reuters). A Russian freight ship carrying 35 t of food aid is to sail to famine-hit N Korea on Mon, a top Russian foreign ministry official says. "Fairly substantial aid will be sent to N Korea -- almost 35 tons of wheat," Russian Deputy For Min Yury Fedotov said. "This should ease the tension linked to the difficult food situation in the country." North Korea has suffered from chronic shortages of energy and raw materials, outdated industrial structures and low productivity due to natural disasters and economic mismanagement. That has led to severe famine. The Stalinist state earlier this m asked S Korea to provide it with the same level of food aid this y as it did last, amounting to about 400,000 t. South Korean Pres Roh Moo-Hyun then offered to extend "comprehensive and concrete" economic aid to N Korea if the communist country scraps its nuclear weapons program. Russia is part of the 6-country talks on N Korea's nuclear issue that closed on Sat with only limited results. Russia, with Soviet-era ties to N Korea, has tried to play the role of neutral negotiator in the crisis. However, its role has been overshadowed by that of China, the reclusive Stalinist state's major trade partner. Israel kills top militant leader linked to Arafat Nablus, W Bank (Reuters). Israel has dealt its heaviest blow to a key militant group within Palestinian Pres Yasser Arafat's Fatah faction, killing its most snr W Bank cmdr. Israeli troops shot dead Nayef Abu Sharkh and 5 other Palestinian gunmen on Sat during an ambush on their hideout in a house in Nablus, a militant stronghold. It was the deadliest raid into the West Bank for months. The al-Aqsa Martyrs Brigades, whose militants have carried out dozens of suicide bombings and attacks against Israelis, vowed revenge and said in a statement its retaliation would be "unprecedented" and "like an earthquake." The militant group, one of the driving forces behind a Palestinian uprising that began in Sep 2000, operates largely from the West Bank where Arafat lives. Also among the dead were 2 lower-ranking local leaders of Hamas and Islamic Jihad in the W Bank. Nablus has long been a centre for militant groups that have killed 100s of Israelis in suicide bombings in over 3 1/2 y of conflict. The Jewish state launched its latest raid into Nablus's old city, a warren of ancient streets, 3 days ago. Lt Col Itzik, an army cmdr who led the ambush, confirmed the raid was carried out after Israel prevented a bombing in Jerusalem planned by militants based in Nablus. "That's the reason we acted this weekend, but even though we act, they [the militants] still manage to carry out attacks," he said. "We will continue to act there in the city as long as there's a threat on Israel." The killings overshadowed a visit by US Assistant Secretary of State William Burns, who urged both sides to fulfil commitments and take advantage of the "moment of opportunity" offered by Prime Min Ariel Sharon's Gaza pullout plan. Israeli troops late last m raided the Rafah refugee camp in Gaza, killing about 44 Palestinians, but have not pushed into W Bank towns with significant force since Apr. Earlier on Sat, Israeli troops shot dead another al-Aqsa Martyrs Brigades armed militant in Nablus who military sources said had confronted soldiers. On Fri, soldiers killed 2 Palestinians, including one gunman in the city. Nabil Abu Rdainah, a snr adviser to Arafat, called Sat's killings "a grave escalation that aims to sabotage the Egyptian and American efforts to revive the peace process." Egypt has been talking with Palestinian officials about plans to train Palestinian security officers so they can secure control over Gaza after an Israeli pullout. Israeli hard-liners fear Gaza militants plan to take over Gaza after a withdrawal. Sharon has won cabinet support in principle for his Gaza plan, which calls for the gradual evacuation of all 21 Jewish settlements in the Gaza Strip and another 4 in the W Bank. A second vote is necessary for its implementation. Arafat commits to truce during Olympics Gaza (Reuters). Palestinian Pres Yasser Arafat has told foreign diplomats he was committed to a truce during the Aug Olympics in Greece. His comments came amid Egyptian efforts to mediate a total ceasefire between Israel and the Palestinian Authority that would allow for a smooth withdrawal of Israeli troops and the evacuation of Jewish settlements from the Gaza Strip. "I announce our commitment and respect of the Olympic truce," Mr Arafat said. "We hope that the revival of this ancient, noble tradition will help create a world that enjoys peace, justice and security for coming generations." The Palestinian Authority is sending a swimmer and a runner to the Olympic games. An Israeli official said Arafat's remarks were further proof he controls Palestinian militants, a charge the Palestinian Pres has denied. Hamas, Al Aqsa leaders killed in Nablus raid Nablus (Reuters/AFP). Israeli troops have shot dead 7 Palestinian gunmen, including 3 snr militant group leaders, in the W Bank city of Nablus, according to sources. The killings come on the 3rd day of an Israeli raid in the area. Palestinian medics say the dead include Nayef Abu Sharkh, who is the West Bank leader of Al Aqsa Martyrs Brigades. The Brigades are a militant group within Palestinian Pres Yasser Arafat's Fatah faction. The local leader of the military wing of Hamas in Nablus and the top cmdr for Islamic Jihad in the W Bank city of Jenin have also both been killed. Israel was quick to hail the killing of Sharkh but the Palestinian leadership condemned what it described as a "dangerous escalation" and the militants threatened dire revenge. Sharkh had been tracked by Israeli troops and was killed in a hideout in Nablus's Old City along with 6 other militants, Palestinian sources told AFP. An Israeli Army rep hailed the blow delivered to the "terrorist leadership holed up in the house". * "Unprecedented" retaliation But the Al Aqsa Martyrs vowed to "retaliate in an unprecedented fashion against soldiers, [Jewish] settlers and Israel itself". The group took the Palestinian leadership to task for "failing to do anything" to stop the 3-day-old Israeli offensive. Mr Arafat's chief advisor, Nabil Abu Rudeina, condemned what he described as a "dangerous escalation aimed at sabotaging Egyptian and US efforts for an Israeli withdrawal from the Gaza Strip". "Israel bears full responsibility and we call on the US in particular to stop these Israeli crimes," the advisor said. Nablus Governor Mahmoud Alaloul accused the Israeli Army of a "massacre". "There is no justification at all for this killing," he said. But Lt Col Itzik, an Israeli Army cmdr who led the ambush, says the Israeli raids will continue. He confirmed the latest raid was carried out after Israel prevented a bombing in Jerusalem planned by militants based in Nablus. "That's the reason we acted this weekend but even though we act, they still manage to carry out attacks," he said. "We will continue to act there in the city as long as there's a threat on Israel." Earlier in the day, Israeli troops shot dead a Palestinian gunman in Nablus who military sources said had confronted soldiers. The deaths bring the toll from the Israeli raids to 10 after the earlier killing of 2 unarmed Palestinian teenagers in separate incidents. * Talks overshadowed The violence has overshadowed talks between US Middle E envoy William Burns and Palestinian premier Ahmed Qurie on a proposed Israeli pullout from the Gaza Strip, which the American official had described as "excellent". The US envoy gave an upbeat assessment of his talks with Palestinian officials on the unilateral Israeli withdrawal proposal. "We genuinely believe that this is a moment of opportunity and none of us can afford to miss this," Mr Burns said after a meeting he described as "an excellent discussion". "I expressed Pres Bush's determination to do everything the United States can to help seize the opportunity presented by the Israeli initiative to withdraw from Gaza and parts of the W Bank as part of the full implementation of the roadmap, and ultimately, towards a negotiated 2-state solution," he said. Mr Burns emphasised the importance of putting together "a political plan of action in connection with the disengagement from Gaza and parts of the W Bank". He also reiterated US support for Egypt's offer of help in the wake of the Israeli pullout from Gaza. "We talked in practical terms about how Egypt can support and help the Palestinians rebuild their capacity to maintain law and order," he said. Mr Burns stressed the "crucial importance of the Palestinian leadership in making and implementing decisions to make a success of these efforts". Israel dismisses Olympics truce offer Jerusalem. Israel has dismissed an offer by Palestinian leader Yasser Arafat to call a truce during this y's Olympic Games. The Palestinian pres says he wants to observe the Greek ritual of peace during the Games. Mr Arafat has told foreign diplomats he is committed to a truce to mark the Aug Olympic Games in Athens. Last month, the Palestinian leader reportedly ordered all militant factions under his control to prevent any attacks on the event. But a snr Israeli official has dismissed Mr Arafat's offer of a truce. Speaking to Israel's Ha'arertz newspaper, the unnamed official accuses Mr Arafat of being behind the murder of 11 Israeli athletes at the 1972 Munich Olympics. Pakistan PM resigns: report Islamabad. Reports from Pakistan say the PM, Zafarullah Khan Jamali, has tendered his resignation. Mr Jamali has informed Pres Pervez Musharraf and a formal announcement is expected to be made at a party meeting later. A member of the Nat'l Alliance govt says Mr Musharraf has asked Mr Jamali to continue until a new PM takes office. Correspondents say the Pres has been seeking to replace Mr Jamali with someone more able to counter parliamentary opp'n. Pakistani Cabinet dissolves as PM resigns Islamabad (AFP). Pakistani PM Zafarullah Jamali has announced his resignation from office and dissolved the Cabinet at a meeting of ruling party members. Mr Jamali's departure after a 19-m tenure follows m of speculation over his uneasy relationship with Pres Pervez Musharraf. Gen Musharraf seized power nearly 5 y ago in a military coup. Mr Jamali has nominated the pres of the ruling Pakistan Muslim League (PML), Chaudhry Shujaat Hussain, as his successor. However, that is apparently only for an interim period. Outgoing Finance Min Shaukat Aziz will then take over as prime minister after about 2 m, Info Min Sheikh Rashid says. "I have decided to resign immediately in the interest of the country and the party," Mr Jamali said. "I have nominated Chaudhry Shujaat Hussain as new PM." He says Cabinet ministers and advisors will submit their resignations. Mr Jamali says he has been "authorised" to announce Chaudhry Shujaat's name. "Chaudhry Shujaat will take [a] vote of confidence on Mon and we will all support him," he said. He says Shaukat Aziz will take the post of snr minister in the new set-up. Mr Hussain paid tribute to Mr Jamali at the meeting, saying: "His name will go down in the history in golden words." Mr Jamali says his Govt remains unblemished, adding that he has performed according to his ability and people will themselves judge how far he was successful. "My intention was pious and my conscience is clear," he said. Referring to speculation that had been circulating for more than a month about an in-house change and criticism from party members, he said: "I came to the conclusion that in the interest of the country and to save the party I should quit. It's not an easy thing to do, it needs courage." Australia to ask Gusmao to halt deportation An Aussie man facing charges in E Timor says he hopes to appeal to the Pres, Xanana Gusmao, to intervene in his case. Dili. Julian King, an activist and freelance journalist, had originally been charged with possessing ammunition and illegal documents. 2 of those charges had been dropped but late yesterday police added a new charge of being in E Timor illegally. Mr King says he has tried to apply for the right visa but police have ignored a court order to return his passport. He says immigration authorities are now threatening to begin extradition proceedings against him even though he has done nothing wrong. "We're planning to write to the Pres to inform him in case he isn't aware," he said. "We need to inform him that the police dept are refusing to follow the rulings of both the Dili District Court and the High Court judges." Mr King says he is being victimised because of his research against the Govt. He says he is determined to clear his name. "I believe I've done nothing wrong here in the last 4-and-1/2 years," he said. "I've been coming and going, I've been very supportive of the independence movement, very supportive of local NGOs [non-govt organisations]. "I believe this is purely an attempt by certain people in the Govt to stop me reporting, to stop me researching on the Timor Gap oil issue and to stop any criticism." The woman who is taking on Wal-Mart Betty Dukes, a California supermarket worker, is leading the biggest civil rights lawsuit in US history. SF (Observer). When Betty Dukes signed on as a check-out counter assistant at Wal-Mart, the world's biggest supermarket company, it was for 5 dollars an hour and the chance of moving up through the company ranks. 'I thought I'd move forward quickly. I thought I'd get promoted and get good pay rises,' she says. She got neither. Instead she got the last thing she was looking for: a starring role in an $8 bn legal battle that could change the face of corporate America and earn her a reputation as the new Erin Brockovich. Last wk a SF judge ruled that Dukes and 1.5 mn current and former employees at Wal-Mart could proceed with a lawsuit alleging that the company discriminated against female employees, bypassing them for promotion and paying them less than their male counterparts. It is the largest civil rights case in US history. 'Am I scared of what we are taking on? Fear can hold anyone back -- but not me,' says Dukes, who has worked at a Wal-Mart in Pittsburg, California, since 1994. 'The way I see it Wal-Mart is an American company and I'm an American who is protected by the laws of my country, which state I have the right to excel in my job, regardless of gender, race or financial status.' It would be tempting to describe the battle between Duke and her co-workers and Wal-Mart as David versus Goliath but that would be underestimating the gulf in resources between the 2 sides. In one corner stand some of the lowest paid, least protected workers in America. In the other corner stands Wal-Mart, an American institution with a mn employees, an annual turnover of $254 bn and profits of $8 bn. Legend has it that Wal-Mart expanded from a small-town operation to a global conglomerate -- it now owns the Brit supermarket Asda, as well as 3,500 US stores -- thanks to the austere but savvy business practices of its founder Sam Walton, the so-called working man's retailer. But, according to lawyers acting for Dukes and her co-workers, the company's expansion was achieved at the expense of its employees, especially women. In her 1st 9 y at Wal-Mart, Betty Dukes's pay rose by an average of 48 cents per hour. Despite repeatedly asking her superiors about the chances for promotion, jobs she wanted and was qualified to get were filled by men. 'I was always told to wait, that my time would come, that there were no openings available, that I didn't have enough experience to move on. But on a number of occasions men with less experience than me were put in jobs that I desperately wanted and know I could have done well.' In 2000, she approached the Impact Fund, an anti-discrimination organisation based in Berkeley, California, which was already investigation similar complaints from other Wal-Mart employees. Jocelyn Larkin, a lawyer based at Impact Fund, says her organisation started to look into the company's employment practices and discovered a disturbing pattern. 'Based on a study of company-wide statistics we found that of men and women who started at Wal-Mart at the same time, the men had a 7 times greater chance of ending up in a management position.' Based on this evidence the Impact Fund filed a lawsuit against the company in 2001, which yielded an enormous amount of internal documents and another startling discovery. 'Our research discovered that women doing the same jobs as men were being paid less. This was not in one store, or one region; it was a consistent pattern right across the country. 'Wal-Mart leaves it up to individual store managers to decide who should get pay rises and it is our belief that these store managers -- mostly men -- rely on their stereotypes rather than on a person's performance to make the decision about who should get paid what. They were rewarding the people who most resembled themselves -- other men.' Larkin claimed that on average women at Wal-Mart were paid $1,400 a y less than men in similar positions. Female store managers earned $89,000 pa, $16,000 less than male store managers, according to one study. This alleged discrepancy led to further legal action on behalf of 1.5 mn women who have worked at Wal-Mart since 1998. This week's court ruling means that a full trial can go ahead, with lawyers for Dukes and her co-workers claiming upwards of $8 bn damages. It was a devastating blow for Wal-Mart, which has suffered a series of setbacks in recent months, including one legal action alleging it forced workers to work unpaid hours. A number of the company's premises were raided last y by police, who arrested over 200 illegal immigrants hired to clean Wal-Mart stores. The company said it will appeal this latest decision, claiming the lawsuit ignores the fact that 1000s of female employees make more than their male counterparts. A rep said Wal-Mart continued to re-evaluate its employment practices but that a new pay structure and new rules on filling job vacancies had been introduced. Meanwhile, Dukes continues to work at Wal-Mart as a store greeter, though the gathering momentum of her legal battle has coincided with one piece of good news -- her wages have increased dramatically over the last y, from $8.44 an hour to $12.53. However, the extra money has not sated her ambition. 'I'm not saying I want to run the company, or that I even want to be a store manager. All I want is the chance to do is to fulfil my potential.' Sex abuse criticism "surprised" Hollingworth Sydney. Peter Hollingworth says he had no idea criticism about his handling of sex abuse claims would arise. Former G-G Peter Hollingworth says he was surprised by criticism of the way he handled child sexual abuse claims as the Anglican archbishop of Bris. Dr Hollingworth has told Radio Nat'l that if he knew the claims would emerge, he would have dealt with them instead of accepting the post of governor-general. "I had no idea that criticism would emerge," he said. "If I had any idea, I would never have accepted the appointment [as governor-general]. "I would have seen it through, I would have dealt with it." Dr Hollingworth became the 1st governor-general in a century to resign. He left after an independent report found he had mishandled the sex abuse claims when he was the archbishop of Bris. "[It] was just devastating," he said. "I don't think I can say too much about that but again it came from left field. "I had no idea it was coming." He says he now has a deeper understanding of what child sexual abuse victims go through. Pulp mill plan wins fed backing Canberra. The fed Min for Forestry, Ian Macdonald, says the prospect of a N Tas pulp mill has the Coaln's full support. Timber company Gunns has announced it is conducting a feasibility study on the $mn project, which would produce 700,000 t of pulp pa. Sen Macdonald says an Aussie-owned pulp mill would go far to reduce forestry's current trade deficit. "Anything that helps create jobs, helps create wealth for Aussies, [if] it can be done in a sustainable way and does something about our huge trade deficit in forest products, has to be good for the country," he said. Tas forest workers have also welcomed news of the feasibility study, although with more caution than Sen Macdonald. This weekend's conference of Timber Communities AUS is looking closely at the proposal. Timber Communities AUS's N Tas rep, Adrian Coward, says workers are excited about local value-adding. However, they are concerned about a possible down-scaling of other sectors. "Sawmilling is vulnerable, with the old growth issue," he said. The Sawmillers Association's Owen Maskell says sawmillers' share of the forest resource is not up for negotiation. "The sawmilling industry is based on mature forests, and we'll fight like nothing else to keep access into those mature forests," he said. Gunns chief John Gay has said native forest in Tas's NE will be processed if the pulp mill goes ahead. Public invited to inspect "Ballarat" Melbourne. HMAS Ballarat is open for public inspection today, after its commissioning at Docklands in MEL. Yesterday, the white ensign was raised over the ANZAC frigate. The ceremony was held at Docklands to symbolise the direct link with the Vic'n community. The frigate will be open to the public between 1.00 pm and 4.00 pm. The Navy's Ross Gillett says visitors will see state-of-the-art military weaponry on board the frigate. "They'll be able to look over the new helicopter, they'll be able to walk through the ship from bow to stern," he said. "They'll be able to look at the new 5-inch gun, which is the main armament of the new ship, and also meet the crew and just enjoy themselves in this very maritime atmosphere down here at Docklands." Hot air ballooning championships lift off Mildura. Perfect conditions are aiding competitors in the 16th World Hot Air Ballooning Championships at Mildura in Vic. The 1st 30 of almost 100 balloons are lifting off for the 1st race this morning. Vic'n Balloon Association pres Tony Parkes says conditions are perfect, with light winds. He says an observer is in every basket to ensure rules are not broken. Mr Parkes says competition ballooning is becoming very sophisticated and in some cases it is not a level playing field. "Some pilots now fly with laptop computers in their baskets that are tied into their GPS [global positioning system]," he said. "They have extremely sophisticated map-reading programs on the computer whereas some other pilots are just learning to fly with a GPS." Mr Parkes, who is also in competition with the Belgian team, says piloting a hot air balloon in competition can be very complex. "Competition ballooning is having to fly to a target that's normally been set for them just by using the wind that's available to them," he said. "The wind moves in different levels in different heights and different speeds and in different directions ... and by using those winds they have to fly to the target." Fire destroys $10 mn movie studio Gold Coast, Qld. A fire believed to have been started by a large candle has destroyed a film studio at the Movie World theme park on Qld's Gold Coast. Early estimates put the damage bill at more than $10 mn. The cast and crew of House of Wax, which stars hotel heiress Paris Hilton, say they are lucky to have escaped the fire. Studio 8 was largely engulfed in flames when fire crews arrived on the scene at 6.30 pm yesterday. Several large LPG cylinders intensified the blaze. It took 10 crews several hours to bring the fire under control. The snr operations coordinator for the SE region, Ross Mutzelberg, says the damage bill will be in the $mns. "The building has partially collapsed and it's been fully involved in fire," he said. "It'll be a complete loss for that sound stage." The studio recently played host to American hotel heiress Paris Hilton, who was acting in a horror film. Mr Mutzelberg says an investigation into the cause of the blaze will continue today. "When the fire's at a stage where people can enter, we will have our fire investigation unit attend," he said. "The police will most naturally have their investigators there too and a full investigation will be undertaken." ALP rethinks terrorism hotline as glitch goes unnoticed Anti-terrorism hotline down-time revealed. Canberra. Labor's homeland security rep, Robert McClelland, says he is having 2nd thoughts about the Govt's anti-terrorism hotline after revelations that it was offline for 4 hr but nobody noticed because of the scarcity of calls. Mr McClelland says he now regrets supporting the Govt when it set up the hotline. It has been revealed that the hotline was offline for a 4-hour period last m because of a technical problem. However, no-one noticed because it is not unusual for there to be few calls. Mr McClelland says in retrospect, a new hotline number may not have been the best solution. "I wonder whether the Fed Govt would have been better off setting something up in interaction with state Crime Stopper hotlines," he said. "You've got one resource, [a] one-stop phone-in if you like. "But having said that, it has been set up and it is important to have it working effectively." Mr McClelland says the hotline was set up to handle 2,000 calls a day but is only receiving about 40. Kakadu fee cuts "would lift visitor numbers" Darwin. The NT's Member for Solomon has called for the Kakadu Nat'l Park entry fee to be dropped to help lift visitor numbers. Dave Tollner says he has raised the idea with the PM's Office and the man responsible for developing a strategy to lift tourist numbers, John Morse. To recoup the reduced funding, Mr Tollner says fees should be placed on activities in the park such as tour cruises and scenic flights. "It works very well in Katherine Gorge," he said. "The way things work there is that the locals can go down to the gorge, they can have swim, enjoy the amenities. "The minute that they step foot on a cruise or jump on a scenic flight or hire a canoe, immediately they are than paying a fee that goes toward the management of that facility." Mr Tollner says it is a viable option to stop the decline in park visitors. "Particularly Territorians aren't going to Kakadu and I think the entry fee is a huge deterrent for Territorians," he said. "I think people feel that they should be able to go to our parks for no charge at all." Energy co-op generates public interest Adelaide. A group establishing an energy co-operative to secure cheaper electricity says it has been overwhelmed by the public's response. S Aussies are being invited to sign up with the South Aussie Energy Co-operative to give them bargaining power with electricity retailers. Co-op rep John Harris says the group has registered more than 100,000 hits on its web site in just 3 days since the launch less than a wk ago. "There is a real sense that the de-regulated electricity market hasn't delivered the values to the people at the small end of town," he said. "Big business can get discounts of as much as 40% but a lot of people just look at their power bill and see it as massively more than it was 5 or 6 y ago." Mr Harris would not indicate what sort of discount price the group might achieve for ordinary SAs. But he says the 40% going to big business shows how deep the margins go for the power companies. Smelter proposal "too crazy to be real" An alliance of environmental and community groups says a proposal for a $4 bn aluminium smelter in SW WA is so crazy it must be a stunt. Perth. The smelter forms part of the State Govt's master plan for the future of the resources industry in WA. The Alumina Action Alliance, made up of environmental and community groups, says the project would be environmentally devastating to an area that is already burdened with 4 alumina refineries. Convenor Neil Bartholomaeus says it also makes no economic sense because the public would have to subsidise the plant's huge energy requirements. "Its energy requirements would be massive and the SW is very short of energy supplies," he said. He says the announcement is out of the blue. "One can only assume it's a stunt to prove that the State Govt can deliver development to the WA community but it would be an horrendous impact on the environment and the economy," he said. State Development Min Clive Brown says the claim that taxpayers will have to subsidise the project is ludicrous and the overall criticism of the proposal premature. "Whenever you come forward with these ideas there's always a mn and one reasons why something can't happen and that's even before the matter's been considered in detail," he said. Mr Brown says the criticism is a sign that some people in Western AUS still believe in a basket weaving-led recovery. "Those of us who live in the real world have to understand that we need a strong economy to provide the jobs that people need," he said. "We're not about to see a basket weaving-led recovery any time soon." Greenpeace removes Homebush toxic waste Sydney. Members of Greenpeace have broken into an industrial site at Homebush Bay in SYD's W to stop toxic waste from being incinerated. The protesters are moving about 60 barrels of the waste to a neighbouring property, where they claim cleaner technology is used. Although the 20 environmentalists are not authorised to be on the sites, there has been no resistance so far. Campaigner Jason Collins says the incineration of the waste has been approved by the NSW Govt. "Incineration is recognised as one of the world's biggest sources of dioxin and dioxin is one of the most toxic chemicals made by man," Mr Collins said. "Any use of incineration is going to increase the amount of dioxin in the environment and that's a major health concern." Greenpeace says at the neighbouring former Union Carbide site equally toxic waste will be treated with "a safer, cleaner, closed loop technology". Under the Stockholm Convention, internat'l law ratified by AUS in May this y, incineration of toxic waste is illegal, the group said in a statement. WA joins state-based energy strategy WA will join 4 other states to try to improve on the Fed Govt's recently released energy strategy. Canberra. Energy ministers from Vic, NSW, SA and Tas met in SYD yesterday. They have rejected the Govt's white paper on energy and are vowing to adopt a state-based approach to reducing greenhouse gas emissions. WA Energy Min Eric Ripper could not attend the meeting but shares the other ministers' concerns. The Commonwealth strategy set aside more than $600 mn to develop low-emission and renewable energy technologies. However, it did not increase the target for renewable energy use. Mr Ripper says the strategy has received widespread criticism. "You'd have to say that, judging by the reaction, the Fed Govt's energy statement has been a failure with almost all of the groups it's sought to address," he said. Mr Ripper says the strategy shows no leadership on the question of energy efficiency. He says the issue of gas penetration has also been ignored. "We've got significant use of gas in W AUS's electricity system," he said. "The eastern states electricity systems just don't have the same penetration of gas, that's a very significant nat'l issue. "Western Aussie gas in the long run could be used to make up for that deficiency." Greens challenge Garrett on port plans Sydney. The Aussie Greens have announced plans to tackle new Labor candidate Peter Garrett head-on in the SYD electorate of Kingsford Smith. The Greens are challenging the Labor Party's star recruit to oppose a 3rd container terminal at Port Botany. Mr Garrett has previously expressed concern about the proposal, a view different from the ALP. The Greens' NSW Senate candidate, John Kaye, says it will be the main issue for their local campaign in the seat. "The Greens see it as a major test for Peter Garrett," Mr Kaye said. "If he can demonstrate his environmental and social justice credentials by stopping the 3rd container terminal at Port Botany, then he will have passed that test." Lawyer Hannah Robert will stand as the Greens' candidate against Mr Garrett in Kingsford Smith. Leak reveals baby bonus payment concerns Canberra. The Fed Govt is under pressure to change the way it hands out its $3,000 baby bonus. Labor's families rep, Wayne Swan, says Cabinet has ignored a document recommending that the money be paid fortnightly instead of in a lump sum. The Govt says Centrelink already has the option of paying the money in 6 instalments if necessary. But Mr Swan says the payments should be spread over 14 wk. "It's better to make payments to women... on a regular fortnightly basis to enable the mother to recover from the birth of the child and to give them some essential financial assistance during that period," Mr Swan said. "It is simply irresponsible to be making lump sum payments across the board." Family and Community Services Min Kay Patterson says parents and new mothers are best placed to decide how to spend the money. "There are safeguards within the legislation to assist people who are at risk to get their payment in instalments," she said. "But we believe the vast majority of families and mothers know how best to spend their money and [should] not to be dictated to by Labor as to when they should get it and how they should spend it." ALP quiet on "fairer" tax plan details Canberra. The Fed Opp'n is fine-tuning its tax plan but will not say when it expects to release the policy. The Govt has been increasing pressure on Labor to reveal its tax plan since the Coal'n unveiled its own tax cuts in the May Budget. Labor's trade rep, Stephen Conroy, has been helping to prepare the tax policy. He says it will be broader and fairer than the Govt's plan. Sen Conroy's told Channel 7 that the policy will be independently costed to ensure it is fully funded. "We're making sure that all of the dollars are there for it and that's the key test for Labor," he said. "[If] we're rushed into it simply because the Govt's playing politics... then we could make a mistake. "That's why we're taking our time making sure it all adds up. "Ultimately you'll find this is fully funded, fully costed and will be a vote winner for Labor." Latham vows to make parties pay for ads Canberra. A fed Labor govt will make the Liberal Party pay back any money for current advertising that is found to be political, leader Mark Latham says. Mr Latham says that if he is elected, he will ensure political parties rather than the govt of the day pay for any advertising found to have any electoral advantage. Mr Latham says the move will be backdated to today. The Fed Govt is currently spending more than $120 mn on advertising for programs such as its Medicare changes. "All this advertising material here is being developed by the Govt to assist its election prospects in the future when the money would be better spent on the basic services needed in the Aussie community," Mr Latham said. The Opp'n says the advertising is a blatant attempt to buy votes for the coming election. Carr expresses faith in Latham Sydney. NSW Prem Bob Carr has moved to clarify his apparent criticism of fed Labor leader Mark Latham over his handling of US relations. In an interview recorded last wk and due to air tonight, Mr Carr told the ABC that if it wins the next election, Labor will face a major diplomatic challenge in dealing with the US. Mr Carr now says that the Aussie-US relationship would prosper under a Latham govt. "The interview is an extended, and I hope, thoughtful demolition of the arguments that got us into the Iraq war to start with," he said. "In passing, I made the commonsense observation that ... AUS's withdrawal from Iraq, which I support, had to be handled with diplomacy. "I believe the Aussie-American partnership would survive and prosper under a Latham Labor govt, as it did under the Hawke and Keating Labor govts. That's my strong belief." Mr Latham's policy of withdrawing troops from Iraq has attracted strong criticism from the US Govt. * "Diplomatic challenge" In the earlier interview -- to be aired on ABC radio tonight -- Mr Carr suggests that the issue would need the skills of Labor's foreign affairs rep, Kevin Rudd, or former leader Kim Beazley rather than Mr Latham. "If Labor is to be elected in the forthcoming elections, this will be a major diplomatic challenge," Mr Carr told the Sun Profile program. "There will be ultra-nat'lists in Washington who will react very strongly to the implementation of Labor's policy. "It's going to require sensitive diplomacy." Prime Min John Howard seized on Mr Carr's comments, saying they amounted to an accusation that Mr Latham was wrong on Iraq. "What Bob Carr has done is to confirm the Govt's criticism of Mr Latham," Mr Howard said. "His policy of cutting and running from Iraq would be seen as unwelcome, as an unfriendly act, and would certainly have an adverse impact on the alliance." Police know Norfolk Island killer's identity: Sen The body of Janelle Patton was found 2 y ago but her murder remains unsolved. Canberra. The chairman of the parliamentary committee that oversees Norfolk Island says locals and police know who murdered Janelle Patton. The body of the 29-yo was found 2 y ago but despite a recent inquest the case remains unsolved. It is the 1st known murder in the island's history. Sen Ross Lightfoot has told Channel 9 that the evidence points to a male offender who lives on the island. He says a policeman has told him he knows the killer's identity. "People on the island know who murdered Janelle Patton, [there's] no question they know," Sen Lightfoot said. "It's very, very hard to penetrate that husk of silence that surrounds Norfolk Islanders when they want to protect their own." Sen Lightfoot says the Fed Govt is keen to do whatever is necessary to penetrate the shroud of silence. "We also offer and guarantee a safe house anywhere in the Commonwealth, with a new identity if necessary, if that person can come forward [with] the info from whom will lead to a conviction," he said. Ms Patton's body was found in Mar 2002. She had been stabbed and beaten, with 64 separate injuries to her body. The coroner who examined the case, Ron Cahill, this m delivered an open finding, describing the case as one of the most difficult he has presided over. 16 people were named as of interest to the investigation at the 4-day inquest but the coroner found that no charges could be laid against any person. He said no-one on the list had a motivation that fitted the crime. Nuclear power "can't stop climate change" Nuclear power cannot solve global warming, the internat'l body set up to promote atomic energy admits today. Vienna (Independent). The Internat'l Atomic Energy Agency (IAEA), which exists to spread the peaceful use of the atom, reveals in a new report that it could not grow fast enough over the next decades to slow climate change -- even under the most favourable circumstances. The report -- published to celebrate yesterday's 50th anniversary of nuclear power -- contradicts a recent surge of support for the atom as the answer to global warming. That surge was provoked by an article in The Independent last m by Professor James Lovelock -- the creator of the Gaia theory -- who said that only a massive expansion of nuclear power as the world's main energy source could prevent climate change overwhelming the globe. Professor Lovelock, a long-time nuclear supporter, wrote: "Civilisation is in imminent danger and has to use nuclear -- the one safe, available, energy source -- now or suffer the pain soon to be inflicted by our outraged planet." His comments were backed by Sir Bernard Ingham, Lady Thatcher's former PR chief, and other commentators, but have now been rebutted by the most authoritative organisation on the matter. Unlike fossil fuels, nuclear power emits no carbon dioxide, the main cause of climate change. However, it has long been in decline in the face of rising public opp'n and increasing reluctance of govts and utilities to finance its enormous construction costs. No new atomic power station has been ordered in the US for a quarter of a century, and only one is being built in W Europe -- in Finland. Meanwhile, Germany, Belgium, the Netherlands and Sweden have all pledged to phase out existing plants. The IAEA report considers 2 scenarios. In the first, nuclear energy continues to decline, with no new stations built beyond those already planned. Its share of world electricity -- and thus its relative contribution to fighting global warming -- drops from its current 16 % to 12% by 2030. Surprisingly, it made an even smaller relative contribution to combating climate change under the IAEA's most favourable scenario, seeing nuclear power grow by 70% over the next 25 y. This is because the world would have to be so prosperous to afford the expansions that traditional ways of generating electricity from fossil fuels would have grown even faster. Climate change would doom the planet before nuclear power could save it. Alan McDonald, an IAEA nuclear energy analyst, told The Independent on Sun last night: "Saying that nuclear power can solve global warming by itself is way over the top." But he added that closing existing nuclear power stations would make tackling climate change harder. {{ Midnight. The IAEA estimates by 2030 26% of the world's electricity will be generated by nuclear power -- 4 times the present level. While the West has seen no nuclear development in recent ys -- due to fears of accidents -- almost all of the new nuke stns are in Asia. The PM of Pak has resigned. The announcement followed a meeting of the governing party. The PM's successor is the head of the governing Muslim League. No reasons were given for stepping down. Rumours say there were strained relation because the PM had failed to fully support Musharraf's policies. It's believed the PM was told to step down and the move raises questions about the civilian rule in Pak after 3 y of military dictatorship. 1 am The US and EU have signed an agreement on the use of Europe's proposed civilian positioning system -- Galileo -- and the US GPS nav systems. Two dozen Italian police officers have been charged of a raft of crimes ranging from falsifying evidence to excessive force. The 29 officers had been part of security measures at the G8 summit in Genoa. The charges step from a police raid on a protest HQ. 3 am Pal doctors say 5 Pal bodies have arrived in a hospital in Nablus, riddled with bullets. The deaths come amid an Israeli raid in the town. Soldiers went into a house, reportedly looking for weapons. They say they saw "suspicious movements" and opened fire and threw grenades. The Czech PM has resigned. He says it's because he lacks the support of his own party. He's stepping down as PM and party leader. The announcement came just hrs the PM won a no-conf motion by a narrow margin. He becomes the first EU politician to pay for the poor showing in the EP polls. In the lead-up to the NATO meeting in Turkey, it now seems almost certain NATO will help train Iraqi troops. This is a far cry from what the US was asking for at the G8 summit just wks ago. Then, it wanted NATO to sned troops to Iraq to help beef up security. Now, the Bush Admin has set the bar so low even France will jump over it. 3.30 am Oil officials in Iraq say 2 pipes have been repaired in the S of the country. Oil pumping is almost back to the level of last y. 6 am The US military says a bomb has killed at least 17 Iraqis in Hillah. A militant group has threatened to behead 3 Turkish hostages within 72 hrs unless Ankara orders Turkish workers and contractors out of Iraq. The group -- reportedly the same one that executed Korean translator Kim -- says it also wants anti-Bush demonstrations at the NATO meeting in Istanbul. The Italian opp'n looks set to take power in Milan -- PM Berlusconi's own power base. To add to the PM's woes, a key member of the governing coal'n is threatening to pull out. 11 am Milwaukee. American Greens have complicated Ralph Nader's bid to run in the presid'l elections in Nov by endorsing Cal lawyer David Cobb. If the meeting of 800 Greens had endorsed Nader -- as they did in the last 2 elections -- he would have gained automatic access to the tickets in 22 states. 11.30 The death toll in Hillah has risen to over 30. Iraqi interim PM Allawi says the security sit'n could delay nat'l elections, scheduled for Jan 2005. Midday. Israel has dismissed an offer by Arafat to call a truce during the Olympics. Govt reps say the offer just proves Arafat is behind Israel's security problems. Kay Patterson has defended the decision to pay the $600 pre-election family bonus in a lump sum. The Opp'n has obtained a Cabinet paper that recommended the payment be made fortnightly. There has been some concern that some families had spent the money on alcohol or otherwise rashly. Patterson says families can best decide how to spend the govt windfall. 12.30 pm The Fed'l Govt's "terrorism hotline" was off for 4 hrs overnight, without anyone noticing. Designed to handle 2,000 calls a day, it's only been receiving 40. 1 pm Dep PM John Anderson says an attack on Aussie forces in N Iraq this weekend is another reminder that AUS must keep its troops in Iraq. At least 17 people have been killed and 40 wounded in a suspected car bomb blast in the Iraqi city of Hilla, S of Baghdad, a snr US-led coalition military rep says. A car bomb blast in the in the Iraqi city of Hilla, S of Baghdad, has killed up to 32 people nr the former Saddam mosque, named after the toppled Iraqi pres. A fed Labor govt will make the Liberal Party pay back any money for current advertising that is found to be political, leader Mark Latham says. Iraq's interim Govt says it would welcome NATO troops in the country as the military alliance reached a deal on training its fledgling armed forces. Iraq's interim Prime Min is offering amnesty to his countrymen who have resisted the US occupation out of a sense of indignation, not destabilisation. Iraq's tenuous security situation could delay nat'l elections by 2 months, according to interim PM Iyad Allawi. Labor's homeland security rep, Robert McClelland, says he is having 2nd thoughts about the Govt's anti-terrorism hotline after revelations that it was offline for 4 hr but nobody noticed because of the scarcity of calls. Pres George W Bush says the US is committed to upholding the Geneva Conventions, in a statement marking the UN Internat'l Day in Support of Victims of Torture. Suspected militants from Abu Musab al-Zarqawi's group have kidnapped 3 Turks in Iraq and is threatening to behead them unless Turkish firms and contractors leave within 72 hr, Al Jazeera television reports. The Aussie Greens have announced plans to tackle new Labor candidate Peter Garrett head-on in the SYD electorate of Kingsford Smith. The Fed Govt is under pressure to change the way it hands out its $3,000 baby bonus. The Fed Opp'n is fine-tuning its tax plan but will not say when it expects to release the policy. The Greens are accusing timber company Gunns of trying to pre-empt a decision by the major political parties on forestry policy in the lead-up to the fed election. United States Pres George W Bush has declared an end to Western rifts over Iraq but has won little in his search for European military help in the country. 5 pm 15 people have been killed in China, in Jijang prov. 11 died on the spot. 4 others died later in hospital. 15 people injured, and 3 are in critical condition. 2 car bombs have exploded in Hillah. The blasts have killed up to 40 people, and injured 20 more. Originally, the toll was put at 17. The bigger blast occurred nr a mosque, on a busy street. All cas seem to be civilians. The WashPost says the CIA has suspended the use of tough interrogation techniques as a result of the Abu Ghraib fallout. Aussie Opp'n leader Mark Latham says propaganda should be paid for by political parties. The ALP says its leg'n would be back-dated to today. The govt says guidelines to prevent the diversion of taxpayer money into party-political advertising is in place and the Latham announcement was just designed for quick political advantage. 6.30 pm A day after Brit A-G Lord Goldsmith said the US military commissions were unlikely to be fair, documents have been revealed in which the Blair govt request the remainder of Brit natl's back from Guantanamo Bay. Earlier this y the US transferred a number of low priority detainees from Guatmo back to the UK, but continued to hold around 1/2-a-dozen Brit natl's it still considers a threat to US nat'l security. A WWII vintage aircraft has crashed into a house outside Moscow, killing 3 and injuring several moire. IAEA chief ElBaradei is in Moscow today, to commemorate the start of the world's first nuclear electric generation stn in Russia. While the IAEA is forecasting a rapid development of nuclear power in this next few decade, an indep nuclear analyst told the BBC that nuclear power had failed. He said present-day Brits curse the Victorians for their lead works and gas works. He suspects future generations could curse the C21 for nuclear power. Police have broken up demonstrators with tear gas. 1000s turned out on the streets of Ankara to protest the NATO meeting and the visit of Pres Bush. Local media is saying 4 police officers were injured in the fracas. 7.30 pm 2 blasts have been heard nr the Green Zone, in Baghdad. Part of the Warner movie studio on the Gold Coast has been destroyed in a fire. The fire happened during the filming of "House of Wax". Peter Beattie says he doesn't think the local movie ind'y will suffer. }} ---------------------------------------- Mon, 28 Jun 2004. Governor Bremer has handed "sovereignty" over to interim PM Allawi. HEADLINES: Two children killed in Baghdad mortar strike: hospital One killed in attack on RAAF Hercules Govt rules out sex change for serial killer China bus crash kills 12 2 killed in Palestinian rocket attack Iraqis clear up after car bomb kills 23 S of Baghdad Iraq handover moved forward Oil prices retreat; Oslo intervenes in Norwegian strike US, Iraq at odds on Saddam US predicts more support over Iraq Saddam to be hauled in dock within days: Iraqi security head Reign of chaos and confusion in Iraq NATO agrees to train Iraqi forces amid summit protests Masked Iraq gunmen threaten to behead Pakistani Iraqi bns unaccounted for Iraq PM says victims of terror should be compensated Democrats film attacks Iraq involvement Bremer imposes US influence on Iraq "Fahrenheit 9/11" tops N American box office 2UE escapes "cash for comment" charges ASEAN to sign off on draft security plan Agreement reached on Offset Alpine documents All eyes on US interest rates Blair directly asked Bush to return terror prisoners Boat capsizes in India, 5 dead Bonus prompts baby talk, principal says Bush courts Turkey amid protests and violence China sentences dozens of drug dealers to death EU suspends anti-trust measures against Microsoft Federal election time? Fiji treason trial begins Forestry needs more transparency, report says Former teacher found guilty of child sex charges Free or charge Guantanamo prisoners, Turkish PM says Funding undermining witness protection: Vic police Harradine tells supporters of retirement plans Hospital admissions up, length of stay down Israeli helicopters fires missiles in Gaza Militants threatens to behead "US Marine" Nationalist concedes defeat in Serbian presid'l vote Navy commitments to remain heavy, says new cmdr Nuclear industry still haunted by Chernobyl -- UN OECD gives AUS poor marks for equity in education PM dismisses Latham's advertising "stunt" Palestinians blow up Israeli army post in Gaza Police allege "violent" man detained girl for 8 m Protest in Brussels after Jewish teenager stabbed Qantas passengers stranded by faulty door Ransom paid for Italian hostages' release: report Summit calls for huge housing investment Tas homes evacuated as cliff collapses Tax office unveils investment property deductions Turkey a model Muslim democracy: Bush All eyes on US interest rates Sydney (AAP). The Aussie share market is likely to remain in a holding pattern ahead of the widely expected first rise in official US interest rates in 4 y this wk. The Jun 30 decision by the US Fed Reserve, when it is likely to hike rates by a small quarter of a%age point to a still low 1.25 %, will also mark another important date for financial markets -- the US hand over of power in Iraq. HSBC analysts said a US rate rise is a virtual certainty but there will be real interest in the accompanying statement for an insight into Fed supremo Alan Greenspan and his fellow central bankers' view on the world's largest economy. "The Fed thinks inflation will stay low despite upside surprises in the 1st quarter, so the assessment of inflation risks should remain balanced, as should growth risks," HSBC said. Otherwise, markets will be focused on a rush of local data releases as the financial y ticks over, including trade balance, building approvals, retail trade and credit growth numbers. HSBC has pencilled in a $2 bn deficit in May, up from $1.8 bn previously, with exports up around 2%, but imports up a stronger 3%. "On the exports side, we expect a 1.4% seasonally adjusted rise in rural exports after a 12.9% jump previously," they said. On Wed, the Reserve Bank of AUS is due to release private sector credit statistics for May. Macquarie Bank has tipped the growth level to have eased in line with the decline in demand for housing finance. Retail Trade figures will be out on Thu and should have risen in line with its recent trend, Macquarie said. Influences and evidence for May sales were mixed. "The continued firm labour market is a positive for sales, with firm trend employment growth continuing and a new cycle low for the unemployment rate. But on the negative side, petrol prices rose 6.7% in the month, reducing disposable income for spending on other retail items [and petrol sales are not included in the retail sales survey]," Macquarie analysts said. Wall Street provided a soft lead for the Aussie share market where blue chip stocks fell on Fri. The DJIA fell 71.97 points, or 0.69%, to 10,371.84. The Standard & Poor's 500 Index fell 6.33 points, or 0.55%, to 1,134.32. The technology-heavy Nasdaq Composite Index rose 9.90 points, or 0.49%, to 2,025.47. OECD gives AUS poor marks for equity in education Vienna. One of the world's leading maths educators has given AUS a poor report card for its treatment of students from disadvantaged backgrounds. The Organisation for Economic Cooperation and Development (OECD) education director, Barry McGaw, says AUS has among the highest performances for literacy and maths skills, but is among the worst for equity in education. Speaking in Townsville, Dr McGraw says more needs to be done to help those from disadvantaged backgrounds strive for excellence. "What AUS ought to be doing is trying to understand much more from its data about how these inequities are distributed and what might be the causes in order then to know what might best be done to reduce them," he said. Oil prices retreat; Oslo intervenes in Norwegian strike London (AFP). Oil prices retreated Fri as the Norwegian govt stepped in to resolve a strike that has hit output from the world's 3rd-largest exporter. The price of benchmark Brent N Sea crude oil for delivery in Aug fell by US$0.38 to US$34.92 in late trading here. NY's reference light sweet crude for Aug delivery dropped by US$0.58 to US$37.35 in early deals. The Norwegian govt intervened to halt a week-long escalating strike in the country's oil sector by enforced mediation between unions and employers. "The dispute on the Norwegian shelf is over," the Labor and Social Affairs ministry said in a statement. "In parallel, it has been decided that continued strike action and the lock-out are prohibited," it said. The trade union Oljearbeidernes Fellessammenslutning (OFS) on Wed vowed to step up its action from midnight today. The move would have forced the daily Norwegian output down to just 75% of the usual capacity of around 3 mn bpd. Employers meanwhile announced Thu a lock-out of striking workers. Even before news of the Norwegian govt's intervention traders had been optimistic about the chances of a swift resolution. "There is a building feeling that the strike in Norway will be short-lived and that the govt will intervene and therefore the interruption of supplies will be very limited," Commerzbank analyst David Thomas said. He added that the market was also reassured by the prospect of the Organization of Petroleum Exporting Countries pressing ahead with a planned output boost on Aug. 1 despite a recent fall in world prices. At a meeting on Jun 3, OPEC decided to raise its output ceiling to 25.5 mn bpd on Jul 1 and to 26 mn bpd from Aug. 1 to try to push down high world prices. "There are talks going on about OPEC invoking their 500,000 barrels a day production increase from Aug. That is easing concerns about supply," Thomas said. "Pressure is still on OPEC to follow through on its commitment to put more oil" on the market. The market was also nervous about the potential for more attacks by insurgents in Iraq in the run-up to the planned Jun 30 transfer of power to a new interim govt in Baghdad. "Iraq will continue to be the focus because there are potential supply disruptions and exports are still lower than their previous levels before the recent pipeline attacks," said Thomas. EU suspends anti-trust measures against Microsoft Brussels (AFP). The European Commission has said it was putting anti-trust measures against Microsoft on hold until the EU's top court rules on a request by the software giant to suspend the punishment. The European Union's executive arm said that "in the interest of a proper administration of justice", it was delaying the implementation of its measures "while a Microsoft application for interim measures is being considered". The "interim measures" referred to an application by Microsoft on Fri for the European Court of Justice to stay the Mar ruling by Brussels, which imposed a hefty fine and product changes after a 5-y anti-trust probe. "The commission is of the opinion that it is not appropriate to enforce remedies before the pres of the Court of First Instance [the court's lower chamber] decides on a Microsoft application for interim measures," it said in a statement. It added that the decision to put the punishment on hold was "without prejudice to Microsoft's obligation to implement the remedies" should the court reject the company's request. "The commission believes that the remedies are reasonable, balanced and necessary to restore competition in the marketplace and that there is a strong public interest in favour of implementing them without waiting for the judgement on the substance of the case," it added. China sentences dozens of drug dealers to death Beijing (Reuters). China has sentenced dozens of drug dealers to death ahead of the Internat'l Day Against Drug Abuse, despite a chorus of protests by human rights groups, state media has reported. In the south-western city of Chongqing alone, 16 drug traffickers received death sentences in a public trial on Sat, the designated internat'l anti-drug day, the official Xinhua news agency reported. In Shanghai, one man was executed for smuggling 1.8 kg of heroin into the city from Burma, it said. State media said on Fri that executions had taken place in the south-western province of Yunnan, the southern province of Guangdong, the eastern province of Zhejiang, the north-western province of Shaanxi and the western region of Xinjiang. Photographs splashed on official Web sites showed masked, machinegun-toting police gripping the arms of convicts in prison garb. A convicted drug dealer usually receives either a bullet in the back of the head or a lethal injection. Rights groups such as Amnesty Internat'l, which opposes the death penalty in all cases, called on Beijing to halt drug-related executions and review future use of the death penalty. "We have seen an annual spree of executions in China in the run-up to UN Internat'l Day Against Drug Abuse and Illicit Trafficking in previous years," it said in a statement. "Yet no convincing evidence has ever been produced that the death penalty deters would-be traffickers and users more effectively than any other punishment," it said. China executed at least 50 people on drug-related charges last y, but drug use, related crimes and trafficking are actually rising despite these tactics, Amnesty said. China, which borders the Southeast Asian "Golden Triangle" and Afghanistan, 2 of the world's biggest opium producers, faces a serious and growing drug problem. It has more than one mn registered addicts, and many more who are not registered. China bus crash kills 12 Beijing. At least 12 people have drowned in south-west China, after their bus plunged into a river. State media says 16 of 21 survivors have been injured -- 2 of them severely. The Xinhua news agency says rescue workers are searching for any missing people, as police are unable to ascertain how many passengers were on the bus when the accident occurred. Witnesses have said the driver lost control of the vehicle just before it plunged into the Diaojiang river in the province of Guangxi. More than 104,000 people died on China's roads last y --- about 285 people a day. China accounts for about 15 per cent of traffic deaths around the world, although it only has 2 per cent of the world's vehicles. Boat capsizes in India, 5 dead Delhi. At least 5 people have died and 15 others are missing, after a small boat capsized in the northern Indian state of Uttar Pradesh. The Press Trust of India news agency says the boat was taking 35 villagers to a nearby temple function, when it capsized in the Gomti River. Police say 15 adults swam to shore, but at least 15 other people remain missing. They say 5 bodies have been recovered. Boating accidents are frequent in India. US predicts more support over Iraq Istanbul (AFP). The Bush administration has hailed NATO's expected move to train Iraqi security forces as proof it was healing diplomatic wounds from the war and mustering broad world support for its military operation. The officials said the N Atlantic Treaty Organisation (NATO), which has baulked at providing more troops for Iraq, was virtually certain to approve training for Iraqi security forces in a gesture with important diplomatic overtones. After an upbeat meeting Sat with the European Union, US officials predicted the NATO summit opening on Mon in Turkey would finally bury what Pres George W Bush called "bitter differences" over last y's invasion. National Security Adviser Condoleezza Rice told Fox News Sun from Turkey that the Istanbul summit would produce "a strong political commitment that the countries of NATO understand that the future of Iraq is important to them". Ms Rice also went on the American ABC News to praise the "very good support" the United States was getting from Europe, where countries such as France and Germany had staunchly opposed the war to topple Saddam Hussein. "I think you will see more [support] now that there is a [UN] Security Council resolution and as the reconstruction phase really kicks in," she said in a reference to the UN vote early this month endorsing the new interim Iraqi government. A snr administration official, briefing reporters aboard Air Force One as it flew from Ireland to Turkey, exulted in what the aide called "the most productive US-EU summit" since Mr Bush assumed the presidency in Jan 2001. "It's very clear that you now have a political consensus between the United States and Europe on the way forward -- not a political consensus in retrospect about Iraq last y, but a consensus on what we do now," the official said. Although the EU made no mention of a future military role in Iraq in the joint statement issued after the summit in Ireland, the snr US official said the Europeans still blessed the multinat'l force on the ground. "This means that the European Union member states who have troops in Iraq now can no longer be accused by anyone of acting against a general European consensus," the official said, speaking on condition of anonymity. A potential new row loomed over where to train the Iraqi security forces, with both Paris and Berlin refusing to send instructors into Iraq. Ms Rice said on Sun that NATO members, as opposed to the alliance itself, would handle the instruction and "most of the training will need to take place in Iraq" with perhaps part of it in another country. Sec of State Colin Powell told CBS television that the site for training "hasn't been determined" and would be discussed at the NATO summit. Mr Bush and his main war allies, prime ministers Tony Blair of Britain and Silvio Berlusconi of Italy, have worked hard to forge a display of trans-Atlantic unity, but it escaped them at a summit of eight leading powers 2 wk ago. If they were able to bask in the unanimous UN Security Council resolution putting the world body's stamp on the restoration of Iraqi self-rule on Wed, there was no agreement on sending more troops or on how much Iraqi debt to forgive. Mr Bush, who faces a tough fight for re-election in Nov, hopes to refurbish his diplomatic image at a time when support for the war has plunged and his Democratic rival John Kerry is pushing for wider internat'l involvement. New polls show a majority of Americans now consider the invasion a mistake but Mr Powell said that they were a reaction to the recent spate of violence that has plagued Iraq ahead of the handover of power. "I hope that as the Iraqi government takes over, the American people will see that they are taking over and they now have sovereignty and they are now in charge of their country and moving their country in the right way," he told CNN. "In due course they will see that we have made the right decision, and what we are doing is noble work. And those [poll] numbers will change," Mr Powell said in an interview from Turkey. The Americans appeared at loggerheads with the new Iraqi government, however, over the immediate fate of ousted dictator Saddam Hussein, who was arrested in Dec and was due to be tried on charges of war crimes and crimes against humanity. Mr Powell said that while US forces planned to transfer legal authority over Saddam to the Iraqis some time soon, "physical custody would remain in our hands for the foreseeable future". This appeared to contradict Iyad Allawi, the new Iraqi prime minister, who told reporters in Baghdad on Sun that Saddam would be moved early next month to a new jail with Iraqi guards and limited support from the US-led military. Federal election time? Howard's Tas visit heralds election: Lennon Hobart. Tasmania's Premier Paul Lennon says it is clear that a federal election will be held soon. There is renewed speculation about a possible Aug election, after a rare Sat sitting of the federal Parliament to help clear a backlog of legislation. PM John Howard arrives in Launceston this afternoon for a two-day visit to one of the country's most marginal seats, Bass. Mr Lennon says Mr Howard's 2-day visit to northern Tasmania leaves little doubt about his intentions. "The Prime Minister only comes to Tasmania when there's an election in the wind," he said. "Obviously this is pure electioneering. He's hoping to con Tasmanians into voting Liberal. "The only way that Tasmanians should be prepared to even entertain the Prime Minister during this visit is if he is prepared to restore the funding that he's taken off us in recent weeks. "Deliver on the promises that your senators have been making in Tasmania or don't bother coming," Mr Lennon said. Liberal senator Guy Barnett says Mr Lennons claims are laughable, arguing the State Government has never had as much federal funding coming in as it does now. "They are absolutely swimming in money, so if it wasn't so serious you'd be laughing your head off," he said. While in the country's eighth most marginal seat, Mr Howard will attend an afternoon tea for Bass candidate Michael Ferguson, before opening a childhood obesity forum tomorrow. Mr Howard is expected to arrive in Launceston around 2.00 pm. "Fahrenheit 9/11" tops N American box office LA (AFP). Michael Moore's incendiary anti-Bush documentary Fahrenheit 9/11 was the top ticket at N American cinemas this weekend, according to preliminary figures released Sun. The film slamming US Pres George W Bush is expected to gross $US21.8 mn over the weekend, according to Exhibitor Relations. In a record for a documentary, Fahrenheit 9/11 is appearing in nearly 868 US theatres. The film, which won Cannes' top Palme d'Or prize has been delighting US liberals and garnering the condemnation of conservatives for its attacks on the White House and the conduct of the administration's war against terrorism. The film will debut in Australia at the Melbourne Internat'l Film Festival on Jul 15. Debuting in second place, the comedy White Chicks, starring siblings Shawn and Marlon Wayans as black FBI agents disguised as white women, earned about $US19.6 mn and has grossed about $US27.1 mn since opening on Wed. Last week's leader, Dodgeball: A True Underdog Story, dropped to 3rd place, reaping $US18.5 mn. Rounding out the top 5 were The Terminal, which earned $US13.9 mn, and the newly released film The Notebook, which grossed $US13 mn. Nationalist concedes defeat in Serbian presid'l vote Serbia (AFP). Serbian nationalist Tomislav Nikolic has conceded defeat at the presid'l run-off to reformist pro-European candidate Boris Tadic and congratulated him on winning the election. "I congratulate him on the election," Mr Nikolic told reporters at his Serbian Radical party (SRS) headquarters. The Centre for Free and Fair Elections said according to their final estimates Mr Tadic won 53.7% of the vote compared to nationalist Mr Nikolic's 45%. "The fight was bitter, but I am completely satisfied with the success I have made," Mr Nikolic said. The first official results are expected later today, with the final result expected tomorrow at the earliest. A European Union official says the EU is very happy with the result. "It is a very good result for Serbia and for democracy in Serbia. It has helped clarify the political scene" in the republic, said the head of the European Commission Delegation to Serbia and Montenegro Geoffrey Barrett. "We at the EU are very, very happy with this result," Mr Barrett told AFP. Before the elections, EU leaders told voters that a win for Mr Tadic would help Serbia's European integration but a Mr Nikolic victory would see it branded once again as a pariah state. Bush courts Turkey amid protests and violence Fiery protests in Ankara. Ankara (DW). US Pres Bush renewed calls for Turkey's EU entry as he sought to boost ties with the country in Ankara on the eve of a NATO summit. Thousands of people protested on the sidelines. US Pres George W. Bush's first-ever visit to Turkey on Sat got off to a violent start. Preceded by a series of protests and bomb blasts, including two last Thu that injured 3 people outside the Ankara hotel where Bush is expected to stay and killed another 4 on a bus in Istanbul, the president's arrival has put Turkish security forces on high alert. In a dramatic beefing up of security, F-16 warplanes patrolled the skies over Istanbul on Sun while Turkish commandos are monitoring the Bosporus in rubber boats with mounted machine guns. More than 23,000 Turkish police will be on duty when the NATO summit gets underway in Istanbul on Sun. About 20,000 demonstrators, many members of leftist groups, gathered in a Ankara square on Sun chanting anti-Bush slogans and protesting American policies in the Middle East. Earlier on Sat, Turkish police fired tear gas at hordes of stone-throwing leftist protesters, just hours before Bush arrived in the country. The fortress that Ankara came to resemble over the weekend led a Turkish commentator to write: "This visit is making our lives hell." * "Barbaric act" The president's visit also coincided with the hostage-taking of 3 Turkish workers in Iraq by militants loyal to Abu Musab al-Zarqawi, a Jordanian-born terrorist believed to have links to al Qaeda. The militants have threatened to behead them within 72 hr unless Turkish companies stop working with US forces in Iraq. The al-Jazeera Arabic television channel showed pictures of the 3 men crouching in front of masked gunmen and holding up their passports. The same group beheaded a S Korean hostage earlier this wk and an American man last m. On Sat Bush refused to answer reporters' questions about the kidnappings, but Whitehouse rep Sean McCormack said, "We're in close contact with the Turkish govt on the issue. It is an awful reminder of the barbaric nature of these terrorists, but their acts will not shake the will of free people everywhere." * "A model for the Middle East" Meeting with Turkish PM Recep Tayyip Erdogan on Sun, Bush vowed to fight hard for Turkey to become a member of the European Union, a line he stressed even during a EU-US summit in Ireland on Sat morning. "I will remind people of this good country that I believe ought to be given a date by the EU for your eventual acceptance into the EU," Bush said. The pres also praised Turkey for reconciling democracy with its Muslim tradition and said it could set an example for the Middle East. "I appreciate so very much the example your country has set on how to be a Muslim country and at the same time a country which embraces democracy and rule of law and freedom," he said. Bush, who is on a Europe trip to mobilise support for his mission in Iraq, is hoping that his talks with Turkish leaders will improve America's ties with the only Muslim nation in the western alliance. Bush's relations with Turkey were strained in the run-up to the Iraq war when Turkey's parliament rejected a US request to let American troops use Turkish bases to invade Iraq from the south. * NATO to train Iraqi military ON Mon, Bush will fly to Istanbul to attend a summit of the 26-nation NATO alliance. On Sat, NATO nations cautiously agreed to respond to Iraqi PM Iyad Allawi's request to train Iraqi security forces. The agreement is expected to be finalised at the NATO summit that ends Tue, a day before the transfer of political power in Iraq. Turkey a model Muslim democracy: Bush Istanbul (AFP/ABC). US Pres George W Bush sought to bolster ties with Turkey after strains over the war in Iraq, touting the country as a model for the Muslim world during a visit ahead of a NATO summit. Pres Bush has been having talks in Ankara with the Turkish PM, Recep Tayyip Erdogan. Pres Bush's visit to the Turkish capital was preceded by a series of bomb blasts and protests, but he does not appear to have let that disturb him. Nor did he want to respond to the kidnapping of 3 Turkish citizens in Iraq. He ignored reporters' questions over their abduction. The US Turkish relationship, strong for decades, took a severe knock last Mar when Turkey refused to allow its territory to be used for the invasion of Iraq. Pres Bush expressed support for Turkey's efforts to join the European Union and praised the country as a model of Muslim democracy. "I will remind the people of this good country that you ought to be given a date by the EU for your eventual acceptance into the EU," Mr Bush said. Washington has been a robust supporter of Turkey's aspirations to win a date for EU membership talks when EU leaders assess the Muslim country's democratisation progress in Dec. "I appreciate very much the example that your country has set on how to be a Muslim country, and at the same time a country which... embraces democracy and rule of law and freedom," Mr Bush said. He said his talks with Mr Erdogan would concentrate on bilateral ties, ways of strengthening NATO and regional issues, including the situation in neighbouring Iraq. Bush is visiting Ankara prior to attending a NATO summit in Istanbul, set for Mon and Tue. Mr Erdogan, said he was happy to welcome Bush in Turkey for the first time. "I wish that the discussions that we will have both on the region and on Turkish-American relations will be useful for both countries," he said. Mr Erdogan also told Pres Bush on he expected the United States to take action against Kurdish militants holed up in northern Iraq, Anatolian news agency reported. It said Bush responded by reiterating a pledge to act against the militant Kurdistan Workers Party (PKK), which has been blamed for a recent upsurge in cross-border attacks on security forces in south-east Turkey. ASEAN to sign off on draft security plan Jakarta (AFP). Senior officials from the Association of South-East Asian Nations (ASEAN) have completed negotiations on a draft action plan for a security community among the 10-nation grouping. A spokesman says the draft -- proposed by Indonesia -- will be submitted to the ASEAN FM's for endorsement when they hold an annual meeting in Jakarta tomorrow. He says ASEAN leaders will then adopt the document when they meet at a summit in Nov in Laos. The spokesman says the final draft is a compromised version that differs from Indonesia's original proposal but he says it is still an important achievement. Observers say one proposal for an ASEAN peacekeeping force as part of the security community has been quietly shelved, after objections from other ASEAN countries. Blair directly asked Bush to return terror prisoners London (AP). PM Tony Blair has personally asked US Pres George W. Bush to allow 4 Britons held at Guantanamo Bay to return home, according to court papers filed by lawyers acting for the Brit govt. The papers, obtained by The Associated Press, were filed at the High Court in response to an application by lawyers for Feroz Abbasi and Martin Mubanga, 2 of the detained Britons. The application calls on the Brit govt to make a formal request to the US for the men's return. Christopher Greenwood and Philip Sales, acting for Home Secretary David Blunkett and Foreign Secretary Jack Straw, said in the summary defence document, dated on Jun 17, that "the UK govt has already made unequivocal requests for the return of all the Brit detainees at Guantanamo Bay to the US govt." They added that "the PM has made a direct request to Pres Bush to that effect". The High Court has yet to rule in the case. The papers were sent to the AP by a spokesperson for lawyers representing some Guantanamo Bay detainees in a US Supreme Court case. The Brit govt has long said the detainees should be given a fair trial or returned home, but it is facing mounting pressure to resolve the issue. A rep for Blair's office said that "the PM is on record as saying he has raised the matter with the president several times. We want to see the situation resolved". Brit's A-G, Lord Goldsmith, said on Fri that the American plan to use a military tribunal to prosecute terrorist suspects being held at the detention centre in Cuba is unacceptable because it would not provide a fair trial by internat'l standards. "While we must be flexible and be prepared to countenance some limitation of fundamental rights if properly justified and proportionate, there are certain principles on which there can be no compromise," Goldsmith said in a speech to the Internat'l Criminal Law Association. The text of the speech was released to the media. Defence Min Geoff Hoon said the govt would raise concerns about Brit detainees in Guantanamo with the US but that there was a limit to Brit's influence. Hoon said that the govt would study the advice provided by Goldsmith, the country's snr legal adviser, and act accordingly. However, he said the final consideration of the legality of the tribunals was a matter for the US. "It is very important to be realistic in the relationship between 2 sovereign states," Hoon told Brit Broadcasting Corp radio. "We can certainly set out what is the position of the Brit govt. We can certainly, as we do on a regular basis, affect the way in which the US sees those issues," he said. "But we would have to be realistic. We are not always successful, nor would anyone realistically expect us always to be successful." US Pres George W. Bush has unveiled plans for a system of military commissions to try 600 detainees at the Cuban base. Abbasi and Begg, two of the 4 Brit nat'ls still held at Camp Delta, were among Bush's initial list of 6 people to be tried by the tribunal. Free or charge Guantanamo prisoners, Turkish PM says Istanbul (AFP). Turkish PM Recept Tayyip Erdogan has asked visiting US Pres George W Bush to charge or free 3 Turkish nat'ls held at the US detention centre in Guantanamo Bay, Cuba. "Mr Erdogan has called on Mr Bush to ensure that the judicial procedure against the 3 Turks detained at Guantanamo is concluded and, if they are innocent, that their extradition takes place," an official statement read. The 3 Turks, along with around 650 other inmates, are being detained indefinitely and face possible military trial for alleged connections with Osama bin Laden's Al Qaeda network and Afghanistan's deposed Taliban regime. Washington describes the detainees as illegal combatants, denying them the protection of the Geneva conventions on the treatment of prisoners of war. Mr Bush arrived in Turkey on Sat where he held a series of meetings in the capital Ankara, before travelling to Istanbul ahead of a 2-day NATO summit starting on Mon. US, Iraq at odds on Saddam Washington (Herald Sun). Former Iraqi leader Saddam Hussein would remain in the physical custody of US forces for the "foreseeable future", US Secretary of State Colin Powell said today, apparently contradicting Iraq's new PM. Iyad Allawi told reporters in Baghdad today Saddam, arrested in Dec, would be moved early next m to a new jail with Iraqi guards and limited support from the US-led military. But Mr Powell, in an interview with CNN from Turkey ahead of a NATO summit, made the distinction between transferring legal responsibility for Saddam to the Iraqis and actually keeping him under guard. "I would expect that legal custody would be handed over shortly, but physical custody would remain in our hands for the foreseeable future," he said. He said discussions were continuing on the "legal transfer, who has the legal authority and responsibility for him, and then there's physical custody, who can best protect him, but also best keep him from escaping". "All those items are being worked out," Mr Powell said. Mr Allawi, who was named interim PM to run the country after the restoration of self-rule on Wed, appeared to have a different take on Saddam's fate. "He will be kept by Iraqis ... We may ask a multinat'l force to be involved in the protection of the outside, of the outskirts of the prison, but definitely he will be under the jurisdiction of Iraq," he said. The PM said the transfer would happen "very, very soon" perhaps by Jul 4, and he appeared convinced he had the manpower to hold Saddam securely. "We have the forces, we have the judicial system," Mr Allawi said. Saddam to be hauled in dock within days: Iraqi security head Baghdad (AFP). A handcuffed and chained Saddam Hussein will be hauled in front of an Iraqi judge within days to hear his arrest warrant, Iraq's nat'l security adviser Muwaffaq al-Rubaie has told CBS television. "We're going to have control of Saddam Hussein," Mr Rubaie told CBS anchorman Dan Rather. "We're going to have 2 American military MPs to hand him over to 4 Iraqi policemen. They will put a chain [on him] and take him to the waiting room. "The judge will call his name, Saddam Hussein Majid. And they will bring him in ... open his chain, handcuff and take him to the judge and the judge is going to give him his rights and his defence and he's going to issue an arrest warrant against Saddam Hussein. "They're going to put the handcuffs on him. Take him ... controlled by Iraqi policemen." STOP THE PRESSES: Iraq handover moved forward [Later reports say the handover has been achieved, Bremer has flown out of Iraq, and the interim govt sworn in -- 3 days ahead of time]. Istanbul (ABC/Reuters/BBC). The formal handover of power to the interim Iraqi Govt has been brought forward and will take place today, according to the Iraqi Foreign Min and coalition sources. The handover was due to occur on Wed. During a joint press conference with Brit PM Tony Blair on the sidelines of a NATO summit in Istanbul, Iraqi For Min Hoshyar Zebari told reporters the date was being brought forward. "I believe that we will challenge these terrorists, criminals, Saddamists and anti-democratic forces by bringing even the date of the handover forward," Mr Zebari said. The BBC reports that Mr Zebari "let slip" about the change of date and when asked to confirm the info, Mr Blair said he could not but that there was an announcement coming later in the day. "The important thing is that from now on Iraq controls its own destiny," Mr Blair said. A coalition source in Baghdad has confirmed that the formal handover has been brought forward 2 days to Mon and a diplomatic source at the NATO summit told Reuters the handover could take place "as soon as today". Bremer imposes US influence on Iraq Baghdad (UPI). The US is to hand power to Iraqi officials Wed, but legal changes recommended by administrator L. Paul Bremer will retain US influence. The Washington Post reported Sun that Bremer has approved numerous actions, such as appointing at least 2 dozen Iraqis to govt jobs with multi-y terms -- beyond that of the Iraq's interim govt. For example, Bremer has ordered the Iraqi nat'l security adviser and nat'l intel chief chosen by the interim prime minister, Ayad Allawi, be given 5-y terms. That, in effect, imposes Allawi's choices on the newly-elected govt that is to take over next y, the Post said. Bremer's measures will remain in effect unless overturned by Iraq's interim govt. One measure restricts the power of the interim govt and details US-crafted rules for the country's democratic transition. Another controversial order gives a seven-member commission the power to disqualify political parties and any candidate the govt supports. Reign of chaos and confusion in Iraq Baghdad (ABC, Nicolas Rothwell). More hostages on the screen of Al-Jazeera, more bombs exploding in Iraq's cities. More fear, more chaos, more helicopter patrols and paranoia. With just 3 days before the formal transfer of power from the US-led coalition to the Iraqi govt, the prospects for a smooth handover look bleak. They are bleak for one great reason: despite the intense security operation on the streets of the Iraqi capital, despite the best efforts of US and Iraqi intel experts, no one knows much about the insurgency -- who directs it, who supports it, what they want. Almost all the attacks are attributed by everyday Iraqis to the supposed terrorist network operated by Jordanian-born militant Abu Musab al-Zarqawi, supposedly hiding out in a provincial Iraqi base, possibly Fallujah. Hostage-takers and bombers routinely sign their notes of vindication with the handy name of al-Qaeda. This claim is taken seriously at the highest level. All across Baghdad, smart new posters depict a handsome, rifle-wielding member of the new Iraqi police force, underneath this legend: 'We will protect you from the thieves and Zarqawists and al-Qaeda people!' Tough talk is the order of the hour. Interim PM Iyad Allawi promises to take all 'necessary measures' and launch a security dragnet, mounted by the new Iraqi civil defence force and the police, within a wk or 2 of taking over. Defence minister Hazem Shalan Khuzaei, like Allawi a former member of the long-ruling Baath party and a former political exile, insists the new govt has the strength and the will to impose order against these clearly defined enemies. But in the US camp, the view is more graduated. US generals have said publicly in recent days that the current wave of attacks and bombings may not be coming from the al-Qaeda cells around Zarqawi alone. The present pattern is striking. In the past 48 hr, bombings, kidnappings and terror operations -- displaying increasing confidence -- have been carried out across the country, from Mosul in the far north, to Hilla, S of the capital, where at least 23 people are reported to have been killed in an explosion in a mosque. The political intent behind the operations is ever more clear: the seizure of 3 Turkish contractors yesterday reads like a loud message to Turkey, host of this wk's NATO summit, to stay out of Iraq, and refrain from sending its troops to train the new Iraqi armed forces. The weekend of violence in Barquba, nr Baghdad, included a targeted attack on the regional HQ of Allawi's political party, that masked gunmen briefly took over. This was a clear act of defiance, intended to sap the new leader's strong 1st showing. But who mounts these attacks? Who directs them? This must be the most shadowy insurgency of modern times. Even when weapons caches are found, there are no clues to where they have come from. Almost every family in Iraq's big towns has a gun. Baghdad people believe the insurgents are controlled from outside the country. They say Iraq had strong, well-protected borders in the past, but since the Americans came it has leaked like a sieve. "The country is full of foreign agents," people say at every turn. US intel briefers have long held the view that about 30% of the attackers are foreigners. They point the finger at neighbouring Iran, which has a clear interest in dividing and weakening Iraq. Iraqi ministers speak openly of the presence in the country of opp'nists drawn from the ranks of the old regime. But the most worrying possibility is that there is no central, directed operation being run against the US-led forces, and against the tormented reconstruction. This theory seemed to be lurking behind Allawi's words at the weekend, when he was touring an oil installation nr Baghdad. He appealed for an end to violence and offered an amnesty to those who had been opposing the US forces, but had not yet employed violence. This suggests that his new govt accepts there is a deep, developing hostility among many Iraqis towards the occupation. But Allawi's strength would be greatly boosted by a few successes against the obscure foot-soldiers of the counter-revolution. Iraqis can see very well the ease with which their country has been destabilised in recent weeks, and how completely the US military has been pushed back into its own fortified encampments. Over the crucial next wk, when security concerns are at a burning height, the Americans have decided to stop patrolling even the arterial road between Baghdad and its airport -- scene of most of the bombings and kidnappings of recent weeks. It is equally plain that since the insurgency began, the whole effort of the Coal'n has been reactive: an explosion, a car bombing, is followed by a retaliatory raid or military crackdown. When a range of assaults took place late last wk, the US bombed a house in Fallujah, claiming it was occupied by followers of Zarqawi. Locals said ordinary families lived there; the rubble can't provide the answers. Certainly, if terror operations can be foiled in advance by good intel, that would be the best secret in today's Iraq. Instead, it seems clear the mysterious foe can carry out its attacks almost at will -- and Iraq today is being held hostage by its assailants, internal or external. Iraqi bns unaccounted for London (AP). $bns of Iraqi money cannot be accounted for by the Coal'n Provisional Authority, which was given responsibility by the UN for the country's finances, reports by lawmakers and aid agencies say. The reports by Christian Aid and the Liberal Democrats, Brit's 3rd-largest political party, said there were glaring gaps in the handling of $US20 bn generated by Iraq's oil and other sources since the US-led war to oust Pres Saddam Hussein ended last y. The Christian Aid report also said the majority of Iraq's reconstruction projects have been awarded to US companies, which charge up to 10 times more than their Iraqi equivalents. When giving the CPA responsibility for the Development Fund for Iraq (DFI) after the fall of Saddam in May 2003, the UN stipulated that expenditure must be shown to be in the country's best interests and that all revenue should be paid into a simple fund. However, Christian Aid and the Liberal Democrats said that no audit on the money was carried out until Apr. "For the entire y that the CPA has been in power in Iraq, it has been impossible to tell with any accuracy what the CPA has been doing with Iraq's money," Helen Collison from Christian Aid said. The CPA reported in May that $US9.4 bn had been paid into the DFI and spent on, among others, a wheat purchase program, electricity and oil infrastructure programs and equipment for Iraqi security forces. The CPA said that $US10.8 bn of the total sum was due from oil revenues by Jun 21, this y. However, the Liberal Democrat report said its research suggested that oil revenues stood at $US12.2 bn to $US14.5 bn. Christian Aid put the figure at $US13 bn. Both reports stressed it was not clear how much of the money had been spent. The Liberal Democrats' study cited the accounting firm KPMG, which criticised the CPA for not metering oil production and questioned its spending. "This apparent discrepancy requires full investigation," Menzies Campbell, the Liberal Democrat rep for foreign affairs, said. "The cost of reconstruction of Iraq is considerable and those countries who are being asked to contribute will want to know that Iraq's own resources are making a maximum contribution," he added. Christian Aid said that Iraqi companies had been awarded contracts worth a total of $US500,000 ($A717,000) since Apr 2004. It added that around $US2 bn of Iraqi money was given to poorly thought-out projects. Iraqis clear up after car bomb kills 23 S of Baghdad Hillah (AFP/Reuters). Shocked residents in the town of Hilla laboured to clear the wreckage left by a massive car bomb blast in a shopping district that killed 23 people and wounded 58, many of them children. The explosion on Sat ripped through the area near to a new democracy centre and religious university funded by the US-led coalition in Hilla, a mainly Shiite Muslim city 100 km S of the capital. The blast site was nowhere near Iraqi police or coalition military posts that are favoured targets of a bloody insurgency that US and Iraqi officials have warned will increase as the handover of sovereignty from the coalition to an Iraqi government on Wed nears. The attacks was condemned by US overseer in Iraq Paul Bremer, who said it was carried out by "enemies of Iraq" when he visited the scene today. "There were 23 people killed and 58 injured, some seriously, meaning the number of dead could rise," said hospital director Mohammad Dia Bayram. The coalition, which earlier estimated that up to 40 people may have been killed in the attack, confirmed the latest toll figure, as did the health ministry. Mangled car parts and other debris still littered the street while a crane picked through the wreckage as hundreds of locals gathered around to watch. Witnesses said the force of the blast, which went off at about 8.45 pm local time, caused severe destruction. "When the car bomb, which was in an Opel Vectra, exploded it set fire to other stationary vehicles and some of them exploded," said Naddar Qassem, a local shop owner whose bakery was damaged. A second shopkeeper, Mohammad Jabawi, said his CD shop was devastated. The explosion happened just 200 metres from the university, which was visited by Mr Bremer. Mr Bremer was on a previously arranged final visit to Hilla ahead of his departure back to the United States on Wed, and officials said they did not think the car-bomb was connected to it. "These anti-democratic forces have struck again not far from this building last night and wounded and killed dozens of Iraqi civilians," Mr Bremer said. "These are the enemies of Iraq, not enemies of the occupation, not [enemies of] the coalition." All the victims were believed to be civilians. * Rocket attack In other developments 2 rockets hit the protected area of central Baghdad used by the US-led coalition Sun but there were no immediate reports of casualties or damage, a military spokesman said. "Two rockets impacted and we are conducting the investigation," Capt Lennol Apsher, who is based in the Green Zone secured area, told AFP. Smoke was seen rising from the Green Zone, a frequent target of mortar and rocket attacks, after the blasts at about 11.15 am local time. * US troops deployment US Defence Secretary Donald Rumsfeld said on Sun Washington was making plans in case it needed to send more troops to Iraq but a further deployment may not be essential. "That does not mean that we will necessarily need them, that means we will do the prudent planning," Mr Rumsfeld told BBC Television from Istanbul, where he will attend a NATO summit. "The real task of security is not to flood a country with more and more troops." * Elections The US wants Iraq to hold elections as planned next Jan, a spokesman said after Baghdad's incoming PM suggested security concerns could force a delay. "We remain committed to that [elections by Jan], but we also understand the concerns that the Prime Minister is raising about the security situation," White House spokesman Scott McClellan told reporters travelling with US Pres George W Bush to a NATO summit in Istanbul. Iraqi PM Iyad Allawi, said on Sat that polls could be as late as Mar because of violence. Iraq PM says victims of terror should be compensated Baghdad. Interim PM Iyad Allawi has said that the victims of terror acts in violence-torn Iraq should be financially compensated. "Those who are now falling victim to the forces of evil, the Iraqi martyrs that are being slaughtered every day, should be compensated," Mr Allawi told reporters following an impromptu appearance at a conference organised by a local non-governmental organisation to discuss the issue. Many Iraqis have been killed since the start of the y in attacks throughout Iraq as well as in fighting which has pitted US-led troops against both Sunni insurgents and Shiite radical militiamen. The Council for the Protection of Civil Rights which is spear-heading the effort has proposed creating committees that would include legal experts and representatives of the caretaker government to look into victims' claims. Initially only civil servants affected while performing their duties would be covered by the scheme, according to the council's head Bassem Al Rubbaie. "I assure you that the caretaker government will accord this issue its utmost attention," Mr Allawi told Iraqis attending the conference. Mr Allawi refused to say whether war victims' complaints would be addressed. "I have to wait for the findings and resolutions of this conference," he told them. "Once they present us with their findings, I will make my final comment on this issue," he said, adding that victims of Saddam Hussein's old regime should be compensated. The conference was held inside the compound housing the US-led Coal'n Provisional Authority, which will dissolve on Wed with the official handover of power to Allawi's government. The event, which attracted more than 300 people, became an opportunity for Iraqis to vent their anger at losses they suffered during the war and the incessant violence and lawlessness that ensued. In the latest violence to hit Iraq, 23 people were killed, many of them children, and 58 wounded in a twin car bombing in Hilla, S of Baghdad, on Sat. Two children killed in Baghdad mortar strike: hospital Baghdad (AFP). Two Iraqi children have been killed and eight wounded in a mortar strike on the Tigris river bank near Baghdad's Sheraton Hotel, popular with Western media and businessmen, a local hospital said. Earlier, a policeman at the site of the attack had said 5 people were killed by 2 mortars as they had just finished wading in the Tigris. A doctor at Al-Kindi hospital corrected the officer's toll and his account of the incident. The group of boys and young men had been playing football when 2 mortars burst, sending shrapnel flying, and killed 2 of them, said Dr Walid Hamid. "Two children were killed and eight wounded, 3 of them seriously," Dr Hamid told AFP. "They were playing football along the river and Abu Nawas street. We don't know who fired the 2 mortars," a witness said. Blood stained the eastern bank of the Tigris river. The projectiles had gouged a hole in the dirt. The mortar strike was the source of 2 loud blasts that shook central Baghdad at 7.05 pm local time. Insurgents fire mortars and rockets almost daily toward the sealed-off headquarters of the US-led coalition, known as the Green Zone, across the river from the Sheraton. Masked Iraq gunmen threaten to behead Pakistani Baghdad (Reuters). An unidentified group of gunmen in Iraq have kidnapped a Pakistani driver and are threatening to behead him within 3 days unless Iraqi prisoners are released, Al Arabiya television has reported. "This man was taken after an attack on a US base in Balad," said one of the masked gunmen on a tape Al Arabiya said it had obtained. "You must release our prisoners held near the US base in Balad, in Dujail, in Yethrib, in Samarra and near Abu Ghraib. You have 3 days from the date of this recording and after that we will behead him. We have warned you." The tape also showed the Pakistani man, who was wearing an identity card given to contractors linked to the US military, urging Pakistani Pres Pervez Musharraf to shut down his country's embassy in Iraq. His comments were translated into Arabic by Al Arabiya. The Pakistani is the latest foreigner to be taken hostage by Iraqi militants. On Sat, suspected militants from Al Qaeda-linked operative Abu Musab al-Zarqawi's group said they had kidnapped 3 Turkish contractors and threatened to behead them within 72 hr if Turkey did not withdraw all companies working with the US-led occupation forces in Iraq. The deadline coincides with UN Pres George W Bush's visit to Turkey for a NATO summit. Militants threatens to behead "US Marine" Baghdad (AFP). An armed group saying it has kidnapped a US Marine has threatened to behead the captive unless Iraqi prisoners are released in the war-torn country, according to a video broadcast on Al Jazeera television. The group, which called itself the "Islamic Retaliation Movement -- Armed Resistance Wing," said it had abducted the Marine of Pakistani origin and would execute him unless detainees in US-led coalition prisons were freed. It identified the US hostage as Hasun Wassef Ali, claiming to have abducted him after "infiltrating a US military base in Iraq". The US military said it was investigating the claim and that a Marine of Lebanese descent was missing in Iraq. The spokesman said the Marine belonged to the First Marine Expeditionary Force and had been missing since Jun 21. "Contrary to press reports, Naval Criminal Investigative Services cannot confirm Corporal Wassef Ali Hassoun was taken hostage," the spokesman said. US Secretary of State Colin Powell says the US and its allies will never back down in the face of these kinds of threats. "Iraqi people just want to be left in peace so that later this week they can see the full transfer of sovereignty and be responsible for their own destiny," he said. * Hostage threats Militants in Iraq have already seized 3 Turks and a Pakistani man over the past week in a new spate of kidnappings just days before the formal handover of sovereignty by occupying forces to an interim Iraqi government on Jun 30. Fighters loyal to Al Qaeda ally Abu Musab al-Zarqawi said on Sat they were holding the Turks and would behead them within 72 hr unless Turks stopped working with US forces. The threat has cast a shadow over US Pres George W Bush's visit to Turkey for a NATO summit on Mon and Tue. "They're taking innocent Turkish civilians in this case as a way to make their case and they will not succeed, we cannot yield to this kind of terrorism," Mr Powell said. Turkey has refused to bow to the kidnappers' demands. "Turkey has been fighting terrorist activity for more than 20 years," Turkish Def Min Vecdi Gonul told reporters in Istanbul. "They ask many things, they demand many things. We never consider them with seriousness." * US reward Zarqawi's group beheaded a S Korean hostage last week after Seoul rejected a demand to withdraw its forces from Iraq, and last month decapitated a US captive. Zarqawi has also claimed responsibility for a series of bloody attacks, most recently a wave of suicide bombings and armed assaults in 5 cities on Thursday that killed more than 100 Iraqis and 3 US soldiers. Washington has offered $10 mn for Zarqawi's capture. Earlier, an armed group said it would behead a Pakistani within 72 hours unless prisoners are released in Iraq, in a video broadcast by Al Arabiya television. The Dubai-based satellite news channel showed 4 hooded gunmen standing behind a man who was described as a Pakistani employee. A member of the group, reading a statement, said they captured the Pakistani who worked at a US base in Balad, 75 km N of Baghdad, and threatened to kill him within 3 days unless local detainees were freed. The ID of the Pakistani was shown, naming him as Yousf Amjid, an employee of US contractor Kellogg Brown and Root (KBR), a subsidiary of Halliburton. * Pakistan investigating Pakistan is trying to confirm the man's identity. "We are trying to find out the details," Int Min Faisal Saleh Hayat told AFP. "We are not sure if he is a Pakistani... Our embassy in Iraq is taking the necessary action." The hostage said he had travelled to Iraq from neighbouring Kuwait in search of work. He called on Pakistani Pres Pervez Musharraf to close his country's embassy in Baghdad and to repatriate all Pakistanis, while urging compatriots to stay away. "There is no work here. I ask you not to come," he said on Al Arabiya. Pakistan, the world's second largest Muslim country, opposed the United States' decision to invade Iraq last y without UN approval. It has resisted US and British appeals to send troops to help stabilise Iraq but has said it could consider sending soldiers if asked to do so by the United Nations or the people of Iraq. One killed in attack on RAAF Hercules Baghdad (ABC/Reuters). A Royal Australian Air Force Hercules C-130 transport plane has been hit by gunfire after take-off from Baghdad airport, killing one person on board. The Defence Department has confirmed that an RAAF Hercules was hit by small arms fire and a United States civilian contractor was killed. PM John Howard says he is relieved that no Australians were hurt. "This does illustrate yet again just how dangerous is the task being undertaken by the Australians," he said. "These pilots [and] C-130s are in the direct line of fire. "These incidents involving Australians drive home the fact that there is a job of work to be done." It is believed to be the first time an Australian aircraft has been hit during an attack in Iraq. Speaking from Baghdad, the cmdr of Australian forces in Iraq, Brig Peter Hutchinson says he was surprised by the incident. "This was a one in a mn chance in that there was one single bullet hit the aircraft and unfortunately, the Hercules is a huge aircraft [and] it's hit the passenger," he said. The civilian contractor to the US Department of Defence was injured in the attack and later died of his injuries. "While there was no significant damage to the aircraft, one person was wounded which caused the aircraft to divert back to Baghdad Internat'l Airport for medical treatment," US spokesman Brigadier Gen Mark Kimmitt said in a statement. The aircraft was crewed by RAAF personnel and there was no significant damage. Defence is promising a thorough investigation and a review of security procedures but says it is difficult to guard against such attacks. A spokeswoman for the Def Min says Robert Hill and Brigadier Hutchinson have offered their condolences to the family of the US contractor. Labor leader Mark Latham has also offered his sympathies to the family of the US civilian and commended the 5 Australians on board the Hercules. The attack marks the first time since the fall of Saddam Hussein that guerrillas have mounted a deadly attack on a fixed-wing plane taking off from or landing at Baghdad's airport. In Jan, a US Air Force C-5 cargo jet carrying 63 passengers and crew was hit by ground fire and made a safe emergency landing. Last y, a DHL cargo plane also made an emergency landing after being hit by ground fire. The RAAF has 2 C-130 Hercules and about 150 personnel from the Richmond base in New S Wales providing logistical support in the Iraq theatre. NATO agrees to train Iraqi forces amid summit protests Istanbul (AFP). NATO has agreed to help Iraq train its new army on the eve of a summit in Istanbul, but emotions were high amid street protests against visiting US Pres George W Bush and tight security. "We have decided today to offer NATO's assistance to the government of Iraq with the training of its security forces," said a draft declaration urging member "nations to contribute to the training of the Iraqi armed forces". "We have asked the N Atlantic Council to develop on an urgent basis the modalities to implement this decision with the Iraqi interim government," said the draft, seen by AFP. Iraq is set to dominate the summit agenda with members keen to present a united front after divisions last y over the war there provoked the worst crisis in NATO's 55-y history. The draft suggests the 26-strong military alliance will formalise an accord to train the Iraqi army, struck in Brussels on Sat. However, it was still unclear if the training would take place inside or outside Iraq -- a key issue since critics of the war, France and Germany, have said they are unwilling to send troops into the violence-stricken country. German Chancellor Gerhard Schroeder reiterated that position on Sun, saying that Berlin was willing to train Iraqi soldiers but not inside Iraq. Iraq's interim FM Hoshyar Zebari insisted that any training should take place on his country's soil. "We want that, in order to build a viable security force, we need actually that training to take place inside Iraq and to be adaptable to Iraqi conditions," he told reporters. Earlier, Mr Zebari and Hazem al-Shalan -- the defence minister in the interim government which formally assumes sovereignty in Iraq on Jun 30 -- held talks with US Defence Secretary Donald Rumsfeld about what their training needs would be. "The important thing is that NATO is fulfilling a responsibility to assist in the training and equipping of the Iraqi forces," Mr Rumsfeld told reporters. "They will then work with the new Iraqi government, and tasks will be assigned out." * Protests On the other side of the Bosphorus strait which bisects Turkey's largest city, tens of thousands of protesters wielded anti-NATO and anti-US banners and shouted slogans against Bush's presence. With fighter jets overhead and warships on hand in the Bosphorus, they rallied peacefully but noisily in a district on the Asian side of the city. There was no official figure on how many protesters took part but some organisers put it as high as 100,000. Speeches delivered by the organisers -- 3 anti-NATO groups, opposition parties, trade unions and civic bodies -- charged that the Alliance, under US-leadership, was preparing a belligerent policy in the Middle East that would throw the region into chaos. "The torturers, the killers are here for a summit of war. Our struggle is for the people of the Middle East who resist torture and occupation," said Mustafa Avci, the secretary-general of KESK, one of Turkey's biggest trade unions. Local authorities, edgy after a series of bomb blasts, insisted the demonstration be held far from the complex of swish hotels, university buildings and conference halls where 49 heads of state and government are due to meet on Mon and Tue. In the end, it was held about 4 km away from so-called 'NATO Valley' across the busy waterway. Hours before Mr Bush's arrival from Ankara, thousands of police were deployed in Istanbul's old city and kms of roads running along the waterfront and out to the airport were sealed. While the violence in Iraq will focus the leaders' minds, NATO officials were keen to emphasise the positive on Sun. "The internat'l community is coming together now," said one, adding: "This is an important step from the internat'l community." The other thorny topic on the agenda for NATO delegates is Afghanistan. NATO chiefs have voiced optimism of the military alliance finally coming good on its commitment to expand its peacekeeping force in Afghanistan as the civil war-wracked country readies for elections in Sep. Ransom paid for Italian hostages' release: report London (AFP). A $US4 mn ransom was paid for the release of 3 Italian hostages in Iraq in Apr, after a 4th hostage was executed, according to an interview of one of the alleged kidnappers in Britain's Sun Times newspaper. Abu Yussuf, an Iraqi Sunnite who claims to be one of the kidnappers, denied the official version of events, according to which the men were freed in a joint operation by Italian secret services and coalition forces in Iraq, without a ransom being involved. The Italian Government reiterated on Sun that no ransom had ever been paid to free the hostages. Salvatore Stefio, 34, Umberto Cupertino, 35, and Maurizio Agliana, 37, all employees of a security firm in Iraq, were kidnapped in mid-Apr and held until Jun 8, when they were freed along with a Polish hostage. A 4th Italian, Fabrizio Quattrocchi, was executed days after his abduction in what his killers described as punishment for Italy's refusal to withdraw its troops from Iraq. Democrats film attacks Iraq involvement Canberra. The Australian Democrats have launched a short film on the Internet to attack the Federal Government's decision last y to join the invasion of Iraq. The one minute video clip shows footage of the war and argues that approval must be sought from both of houses of Federal Parliament before any troops are deployed. Democrats leader Andrew Bartlett says Australians should never forget the lies that were used to justify the invasion of Iraq. Senator Bartlett says he hopes at least 50,000 people will see the short film on their computers. "I think these sorts of campaigns are important because they don't rely on lots of corporate donations," he said. "They don't rely on the large scale mass media to run them, but I think as Howard Dean showed, the use of the Internet skilfully can have a big impact." Palestinians blow up Israeli army post in Gaza Gaza (ABC, Mark Willacy and Reuters/AFP). Palestinian militants have blown up an Israeli military post in the southern Gaza Strip injuring up to 1/2 a dozen Israeli soldiers. The militants dug a 350 metre tunnel under the army post near the settlement of Gush Katif and set off a large quantity of explosives. 5 of the soldiers were evacuated to hospital while a 6th was trapped in the rubble left by the blast. Rescue workers initially reported dozens of casualties in the explosion, but later revised their figures down after medics arrived at the scene. Al Jazeera television said 5 Israeli soldiers had been killed while Israel's Channel 10 said one Israeli was believed killed and at least 5 others wounded in the attack. Gen Shmuel Zacai, cmdr of an Israeli division in Gaza, confirmed that the blast had come from a tunnel built by Palestinian militants and then filled with explosives. "It has taken quite a number of days to build this tunnel. A certain amount of explosives were then planted -- I estimate several dozens of kg -- before they activated them," he told reporters. Rescue efforts were hampered by heavy gun and mortar fire by Palestinian militants, rescue workers at the scene said. The militant Islamic Hamas group and the al-Aqsa Martyrs Brigades both claimed responsibility for the night-time attack. Hamas's armed wing said in a statement and telephone call to AFP's offices that the attack was carried out to avenge the Israeli army's killing of Hamas founder Sheikh Ahmed Yassin and his successor Abdelaziz Rantissi earlier this y. "This operation came as part of our revenge for the crime of the assassinations of Sheikh Ahmed Yassin and Dr Rantissi, and the assassinations and massacres of our people in Rafah and in Nablus," the Ezzedine Al-Qassam Brigades said. Palestinian militants had also vowed to avenge a deadly Israeli military raid into the West Bank city of Nablus in which a top militant leader from the al-Aqsa Martyrs Brigades was killed. Earlier, Israeli troops pulled out of the West Bank city of Nablus, after a large-scale operation which left 3 snr militant leaders dead. Israeli leaders have praised the army for carrying out a successful operation. Chairing the weekly Cabinet meeting, Israeli PM Ariel Sharon described the 3-day raid as another impressive achievement against terrorism. In one strike Israeli soldiers killed seven wanted militants, including the cmdr of the al-Aqsa Martyrs Brigades in the West Bank. Palestinian PM Ahmed Qurie denounced the Israeli operation as a brutal and ugly crime. Israeli helicopters fires missiles in Gaza Gaza (Reuters). Israeli helicopter gunships have launched separate missile attacks on targets in Gaza city, hours after Palestinian militants blew up an army post. In the first strike, a helicopter fired 3 missiles into a metal foundry in the Zeitoun neighbourhood in eastern Gaza City. Nobody was hurt in that attack. Shortly afterwards helicopter gunships fired 5 missiles at another foundry nearby. A woman was slightly hurt by flying glass. The Israeli army confirmed the attacks, saying militants produce homemade weapons and rockets in the workshops, while Palestinians have said they were used for civilian purposes. The attacks occurred just hours after Palestinian militants blew up an Israeli army post in the Gaza strip, wounding at least 6 soldiers. The militant Islamic Hamas movement and the al-Aqsa Martyrs Brigades, an armed group in Pres Yasser Arafat's Fatah faction, both claimed responsibility for the Sun night attack on the post near Gaza's Gush Katif settlement bloc. Israeli forces have shot dead 2 Palestinians -- including a 13-yo boy -- following a major explosion at an army post in the southern Gaza Strip, Palestinian medics and witnesses said. The Israeli army said there was heavy Palestinian fire from a nearby refugee camp, where the 2 died, and that troops fired back. 2 killed in Palestinian rocket attack Gaza (Reuters). Palestinian rockets fired from the Gaza Strip have slammed into a town in southern Israel, killing at least 2 people, Israeli security sources said. The attack on Sderot was launched several hours after Palestinian militants tunnelled under an Israeli army post in the Gaza Strip and blew it up in a large explosion that killed one soldier and wounded 5. The security sources said that in addition to the 2 dead, several other people were wounded in the town. Military sources said 2 rockets hit Sderot, which borders the Gaza Strip and has been a frequent target of such attacks. Protest in Brussels after Jewish teenager stabbed Brussels (AFP). Several hundred protesters have rallied at a Jewish memorial in Brussels Sun to denounce anti-Semitism after the stabbing of a 16-yo Jewish boy in the northern Belgian city of Antwerp. Government ministers and Muslim groups joined the rally in front of a memorial to Belgian-Jewish victims of Nazi crimes in the Brussels suburb of Anderlecht. Justice Min Laurette Onkelinx vowed that authorities would hunt down those behind Thursday's attack in Antwerp which left the Jewish boy in a serious condition. "There will be no tolerance at all of anti-Semitic and racist acts," she told RTL-TVi television at the demonstration. Philippe Marckiewicz of the Coordinating Committee of Belgian Jewish Organisations said the stabbing should act as a rallying cry to all sections of society to come together. "We think that Belgian society...must respond and that's why the Jewish community called this protest today, a protest for the respect for others, a protest for democracy, for mutual understanding between all Belgians," he said. The teenager and 3 friends were attacked as they left a Jewish school in Antwerp late on Thu. The city, is home to about 20,000 Orthodox Jews. Authorities said a group of N African youths was responsible. But no-one has been arrested so far for the attack, which Jewish groups say has highlighted rising anti-Semitism in Belgium. Fiji treason trial begins Suva. The treason trial of Fiji's VP and 5 others has begun in Suva. The case relates to the attempted coup in 2000. Security at the Suva High Court is extremely tight and anyone entering the court has to pass through metal detectors and have their bags searched. The prosecution team lead by Australian prosecutor Mark Tedeschi opened by outlining their arguments this morning. Later, one of the accused, Deputy Speaker of the House of Representatives Ratu Rakuita Vakalalabure, told the court he had approached another lawyer to represent him, Abhay Singh, who asked for another week to prepare his defence. Judge Nazhat Shameem has given them until later this afternoon to talk to his client saying she is anxious to get the trial underway as soon as possible. Tas homes evacuated as cliff collapses Strahan, W Tas. Homes at Strahan on Tasmania's west coast are being evacuated because of a cliff collapse and rising water levels. West coast mayor Darryl Gerrity says heavy rain and strong winds are causing flooding throughout the town and a cliff on the Esplanade has collapsed over the main road. About 5 t of rock and soil collapsed near Fraser Street about 10.00 am and there has been a further collapse since. Mr Gerrity says some homes have been evacuated and others are preparing for flooding. "They're looking like they're in trouble and a couple of homes people have been into and raised some of the furniture above the water line or the expected water line of where it is as a precaution," he said. "We're monitoring it every few minutes as the moment because there is a lot of rain here now." Mr Gerrity says trees have also blocked a number of roads. "There are trees down on Macquarie Heads Road, I believe there are trees down on the road between Zeehan and Strahan, there are a lot of branches down on the Queenstown-Strahan road and as we speak part of a cliff has just collapsed along the Esplanade, Strahan, and closed the Esplanade," he said. "Public works are now working on it." Agreement reached on Offset Alpine documents Sydney. Businessman Trevor Kennedy has reached agreement with the corporate regulator on which documents seized during investigations into the Offset Alpine affair should be protected under legal professional privilege. Mr Kennedy had taken Federal Court action to prevent the Australian Securities and Investments Commission (ASIC) examining the contents of a computer hard drive. A copy of the hard drive was made during an ASIC raid on Mr Kennedy's Sydney offices last y as part of investigations into the printing company Offset Alpine. Earlier this month Justice Catherine Branson rejected the argument that legal professional privilege could be claimed over the hard drive as a whole. Mr Kennedy's lawyers today told the court they would not be seeking an appeal, and agreement had been reached between the parties, on which documents are protected under privilege. Summit calls for huge housing investment Canberra. Participants at a nat'l summit on housing affordability want the Federal Government to contribute to a trust to help more people buy their own home. An options paper at the summit says in the past decade, the proportion of first home buyers has fallen by about 30% and opportunities to rent public housing have dropped by about 20%. Summit chairman Prof Julian Disney says average house prices relative to household income have almost doubled in the past decade. Prof Disney says the idea of buying a home is out of reach for people across the country, not just for those living in Sydney or Melbourne. "Adelaide, Hobart, markets like that have had very substantial increases, and it's also important to bear in mind in many of the places where prices are lower, incomes are very much lower as well," he said. The Construction Forestry Mining and Energy Union wants funding currently used for rental assistance and tax incentives for investors to be redirected to the trust, which would see state governments providing land and public housing stock. The union's John Sutton says under the proposal the Federal Government and superannuation funds would be the trust's major investors. "Ultimately there ought to be hundreds of mns and perhaps bns spent to be able to get back to the days of public provision of affordable accommodation," he said. "It's not a pipe dream, it can be achieved by innovative new financing arrangements." Summit participants want a federal housing minister to be appointed, to develop a 5-y nat'l housing plan. They are also calling for an inquiry to assess how tax affects housing affordability. Tax office unveils investment property deductions Residential property investors are being targeted by the ATO. Canberra. Residential property investors are being targeted by the Australian Taxation Office (ATO) with more information on allowable tax deductions. With the FY ending this week, the ATO is providing new information for the owners of residential rental properties about the tax deductions they can claim for depreciating assets. The ATO says there is no need for property investors to be alarmed about new depreciation schedules because they will only apply to properties purchased after Jun 30, 2004. Last FY, more than 1.3 mn taxpayers claimed deductions, more than 220,000 of them new rental property owners. The ATO has listed 150 depreciating assets, a big increase over the previous list. It also includes the effective lives of assets. Assistant Tax Commissioner Elizabeth Goli says there has been a boom in recent ys in the number of people who negatively gear their property and the new schedules will ensure they get their depreciation claims right. "Most of the changes that are in there are beneficial, there are some new depreciation rates so for the first time there'll be some guidance for taxpayers," she said. "There were 220,000 new rental property owners last y and it's all about ensuring they've got some guidance so they can get their returns right." The chief executive of the Property Council of Australia, Peter Verwer, says it is important for investors to seek professional help about the changes. "There'll definitely be some winners and there'll be some losers on the other side," he said. "The big problem is it's not as logical as it could be, but we've come to expect that from the tax system haven't we?" Bonus prompts baby talk, principal says Sydney. A western Sydney school principal says the Federal Government's $3,000 baby bonus is encouraging his students to fall pregnant. A dozen teenager mothers already take their babies to classes at Plumpton High School. And school principal Glen Sargent is worried that the baby bonus will see even more teenage pregnancy in the low socieconomic area. "I had 2 visits from mothers over the past 3 wk and they came to tell me that since this $3,000 bonus was announced that their 2 daughters they'd heard their 2 daughters discussing falling pregnant to get the $3,000," he said. Navy commitments to remain heavy, says new cmdr Sydney. Australia's new maritime cmdr believes the navy's resources will remain stretched over the next couple of y. Rear Admiral Rowan Moffitt has today taken command of 6,000 personnel and a 60-strong fleet. He has replaced Rear Admiral Raydon Gates who has been appointed to a military advisory position in the US. Rear Admiral Moffitt says there is every indication the navy's unprecedented workload in the Middle East and S Pacific will continue. "These are troubled times. We can I think expect the uncertainty to continue and therefore we've got to be ready to face at least a continuing operational tempo as high as we've seen in the last couple of years," he said. Hospital admissions up, length of stay down New figures show hospital admissions across the country are going up, but the length of stay is falling. Canberra. Research by the Institute of Health and Welfare shows there were 6.7 mn admissions to hospitals in 2002-2003, up 4% on the prev y. Jenny Hargreaves from the Australian Institute of Health and Welfare says there were similar increases at public and private hospitals. "About 3.2% in public hospitals, and after adjusting for some hospitals in the collection, about 3% in private hospitals," she said. "Average length of stay in hospitals is going down to about 3.5 days in 2002-03." The average waiting time for elective surgery in public hospitals was 28 days, an increase of one day. 4% of patients were forced to wait more than a y for a specific operation. Forestry needs more transparency, report says Melbourne. A new report by the Uniting Church has identified a need for an independent and transparent regulator for Tasmania's forestry industry. The church says it has consulted all relevant stakeholders to compile the report on forestry practises in Victoria and Tasmania. The church's Mark Zirnsak says among other things, the report has raised concerns about the future of Tasmania's native forests, and that old-growth forest commitments are not being met. But Dr Zirnsak says the most pressing issue appears to be accountability, saying the logging industry dominates current regulatory bodies, creating potential conflicts of interest. "What is coming out is for Government to really look at an independent and transparent regulator of forestry in Tasmania, to open it up, for example, open forestry up to freedom of information legislation and therefore lay these concerns that have been raised about forestry and forest practises to rest," he said. The Government business enterprise has been exempt from complying with freedom-of-information requests for the past 10 y. Tasmania's Energy and Resources Min Bryan Green says the State Government has set the agenda on transparency in the forestry industry. Mr Green says there will be announcements soon on the issue. "Of course the Government is prepared to look at these issues, but we're not prepared to make unilateral decisions with regard to these important matters," he said. "What we want to do is work with those people who are at the coalface when it comes to management of the forest industries to work out the best structure available." State Opposition leader Rene Hidding says Forestry Tasmania will have to comply with freedom of information laws if the Liberals win government in 2006. PM dismisses Latham's advertising "stunt" The Federal Opp'n leader has gone on the attack, angry at a taxpayer funded advertising blitz by the Howard Government. Canberra. PM John Howard says the Opposition's plan to crack down on taxpayer-funded political advertising is nothing more than a stunt. Under Labor's policy, a political party would be billed for government advertising that is found to give it an electoral advantage. The penalties would be backdated to this week, to include any ads commissioned by the Howard Government. Mr Howard says government advertisements such as the current Medicare campaign provide useful advice to people. "I would understand Mr Latham's argument if you were spending public money attacking him, I mean that would be political," he said. "I can understand his argument if you were spending public money promoting the philosophy of the Liberal Party, but when you're actually explaining a new government policy I don't agree with him." Health minister Tony Abbott echoed the PM's position. "Our ads are perfectly in line with the government advertising that we saw from the former Labor Government, they're perfectly in keeping with the kind of advertising we see regularly from the state Labor governments, and if Mr Latham is against government advertising, he should be heavily critical of the work of the state Labor governments," he said. Mr Abbott says new figures show more that 400,000 people have now registered for the new Medicare safety net. Harradine tells supporters of retirement plans Canberra. Tassie Independent Sen Brian Harradine has written to his supporters telling them he does not plan to contest the next Senate election. However, the 69-yo Senator has indicated his decision is not final. In a letter written to supporters last week, Senator Harradine said he did not intend to contest the next election whenever it is called. He said it was a decision made with sadness and regret but after 29 y in the Senate it was time to spend more time with his family. Senator Harradine said he was aware it would be a hard fight for him, or for any other Senator Brian Harradine Group candidate, to be re-elected. Senator Harradine says unless there is a double dissolution election, in which case his term would finish immediately, he will finish in Jun next y. Senator Harradine says he has had many appeals to change his mind and hopes to make public a final decision tomorrow. Qantas passengers stranded by faulty door LA. More than 400 Qantas passengers bound for Los Angeles remain stranded in Brisbane more than 24 hr after their flight to the United States was due to leave. One of the passengers, Graham Gillespie, says staff spent more than an hour trying to close one of the plane's doors while passengers were on board yesterday morning and the airline is yet to fix the problem. Speaking from the internat'l terminal, Mr Gillespie says he has now been told the plane may be ready to leave at 10.00 pm. "People have got business arrangements and they've got holiday arrangements that just follow on from there," he said. "It's just throwing everything into chaos but the big problem is that they are not doing anything sufficiently to try and resolve the situation. "They're just holding us here while they play around with the plane trying to fix it." 2UE escapes "cash for comment" charges 2UE will not face charges over the John Laws cash for comment scandal. Canberra. The Aussie Broadcasting Authority (ABA) will not pursue SYD radio station 2UE through the criminal courts over "cash for comment" breaches. Last y, the ABA found 2UE guilty of 19 breaches when broadcaster John Laws did not adequately disclose a commercial agreement when giving related opinions. Acting ABA chairwoman Lyn Maddock says the Director of Public Prosecutions has advised there would not be a reasonable prospect of a conviction if 2UE were charged. "The burden of proof in criminal cases is much higher than in civil cases and for a successful prosecution in this case it would have to be proven that radio 2UE engaged in the conduct with the requisite criminal intention," Ms Maddock said in a statement. "This outcome highlights how difficult it is for the ABA to impose appropriate sanctions when it finds breaches of licence conditions and program standards. "The only civil law-based remedies available to the ABA are imposition of further licence conditions [which must not be punitive], or suspension or cancellation of the broadcasters licence. "The ABA has imposed a stringent monitoring condition on radio 2UE but would always be extremely reluctant to deprive the public of a popular service by suspending or cancelling the broadcasters licence," she said. Communications Law Centre director Derek Wilding says he is disappointed because the decision provides no incentive for media organisations to follow the ABA's regulations. "The ABA has been backed into a corner in a sense and it's quite true it doesn't have a sufficient range of remedies available," he said. "The only solution here is that there are amendments considered to the Broadcasting Services Act and that's something that's required by Parliament, not by the ABA." Former teacher found guilty of child sex charges Brisbane. After more than 2 days of deliberations, a Supreme Court jury has found a former Brisbane school teacher guilty of dozens of child sex charges. Gary Robin Ford, 55, pleaded not guilty to 39 child sex and drugs charges. The court heard Ford surrounded himself with teenage boys, offering them a place to watch pornography, play video games and wag school. He was also accused of involving them in pagan rituals. The former National Party campaigner denied the allegations but admitted having a sexual relationship with one of the boys after he turned 18. Ford was remanded in custody late yesterday and will have to undergo medical and psychiatric assessments before being sentenced. Funding undermining witness protection: Vic police Murdered corruption informer Terrence Hodson was denied the best home security system because of a lack of police resources. Melbourne. The ABC understands a police technician spoke about boosting security at Hodson's home, but did not include the best option in his written report. Shortly after Hodson's murder, the police technician's unit began to refuse requests to review the home security of corruption witnesses and corruption investigators. Terrence Hodson and his wife Christine were murdered in May. Victoria's assistant Commissioner for Crime, Simon Overland, says a lack of money was not a factor in protecting Hodson. "This is a matter for the Ethical Standards Department and I understand Assistant Commissioner Walsh will comment on this issue as well, but the briefings I have received indicate to me that it was never about money," he told Southern Cross radio. Hodson's security camera almost certainly recorded the approach of their killer or killers, but homicide detectives could not find the camera's VHS tape. Hodson's home security system had been reviewed by the Ethical Standards Department's technical support unit. The AM program has spoken to multiple police sources. They say the technician who did the review spoke to colleagues before the murder about the need for a system that would record surveillance camera footage at a secure location away from Hodson's home. Police did pay to upgrade Hodson's security system, but the upgrade did not include a remote recording system. The police media unit says such a system was never discussed or recommended. The technical support unit is now refusing to do such security reviews for corruption investigators or their witnesses. The unit suffered a budget cut close to 20% in the current FY. Govt rules out sex change for serial killer The Vic Govt says serial killer Paul Denyer will not receive official assistance in his bid to undergo a sex change. Melbourne. Denyer has already lost a legal battle to wear make-up in prison and has appealed against an Equal Opportunity Commission rejection of his application for gender reassignment. In 1993, Denyer received 3 life sentences after pleading guilty to the murders of 3 young women, Elizabeth Stevens, Debbie Fream and Natalie Russell. It has been revealed a Corrections Department official visited Denyer in prison recently to assess his health. The results are confidential. Corrections Min Andre Haermeyer says Denyer is an attention seeker and is adamant the matter will go no further. "This attempt to have his gender changed or reassigned is something that is deeply offensive to the families of the victims and to the rest of the community and we're adamant that it won't proceed," he said. "It's already been knocked back by the Equal Opportunity Commission and we think is should not proceed any further." His ongoing campaign has upset Brian Russell, whose 17-yo daughter was one of the victims. "Just makes you sick to be quite honest. This bloke has murdered 3 young women, he's not put there to be feted in this way," he said. Corrections Victoria says there are no plans for Denyer to have further health referrals. Police allege "violent" man detained girl for 8 m Wollongong. A 31-yo Wollongong man has appeared in court charged with kidnapping and attempting to murder by suffocation, a 17-yo girl. Police allege Azzam Hamid of Cringila kidnapped and assaulted the woman at his home, and made death threats against her family, between Nov last y and last Fri night. The accused was brought into the court wearing handcuffs. An application for bail was made, with the defence solicitor telling the court the woman consented to live in the home of the accused and it was a case of his word against hers. But magistrate Chris Johnson refused bail, on the grounds of the seriousness of the offences, a history of violent crimes by the accused and the fact he was on a court bond at the time of the alleged offences. The magistrate also ordered a psychiatric report into his mental condition. The case is due to return to court next Wed. Nuclear industry still haunted by Chernobyl -- UN Moscow (Reuters). The nuclear industry is still struggling to overcome the damage done to its reputation by Chernobyl, even though nuclear power is an "environmentally superior" energy source, the UN atomic agency said Sun. "Despite the array of measures that have been put in place since Chernobyl to offset the possibility of a severe accident, these risks can never be brought to zero and they continue to weigh heavily on public perceptions," Internat'l Atomic Energy Agency chief Mohamed ElBaradei said. The Chernobyl disaster occurred in Apr 1986, when an explosion at the Ukrainian power plant spewed a cloud of radioactivity across Europe and the Soviet Union. Around 30 people died from radiation exposure after the accident, nearly 2,000 children later developed thyroid cancer and 1000s of other fatal illnesses have been blamed on it. More than 100,000 people were resettled, causing physical, economic and psychological hardship. In a speech at a conference marking the 50th anniversary of the first nuclear power plant nr Moscow, ElBaradei said that the nuclear power industry has never fully recovered. He said that in 1986, the y of the Chernobyl accident, atomic energy accounted for around 16% of the world's energy output -- the same ratio as today. "The environmental superiority of nuclear power as a source of electricity -- particularly important in light of recent concerns about greenhouse gases and climate change -- has frequently received less attention than the accumulation of spent (reactor) fuel and radioactive waste." The IAEA has said that nuclear power emits virtually no greenhouse gases, which are believed to be the cause of global warming. ElBaradei added that in the future, nuclear power would probably be recognised as indispensable in developing countries which lack natural resources like gas, oil or coal. Later at a news conference, ElBaradei told reporters that greater reliance on nuclear energy could avoid the "excessive use of fossil fuel" and prevent an environmental catastrophe. {{ 5 am The US military says 1 person has been killed when small arms fire hit a transport aircraft flying out of Baghdad airport. PM Allawi has vowed to crack down on insurgents and terrorists. He's indicated he'll distinguish between foreign insurgents and Iraqis, who might have attacked the police or US forces out of frustration. Midday. The Def Dept in CBR has confirmed an RAAF transport aircraft taking off from Baghdad has been hit by gunfire and an American civilian contractor on board has been killed. After the incident, the aircraft was deemed safe to fly and returned to its normal base in another Middle E country. It's the 2nd attack on Aussie forces in 2 days. A US Marine is believed to be among the latest hostages taken in Iraq. Al-Jazeera TV showed a military ID on the captive that indicated the man was a serving Cpl. The US military has confirmed a Cpl is missing since Jun 21. Militants in Iraq are holding 6 captives and are threatening to decapitate them unless foreigners pull out of the country. Paul Bremer flew into Hillah today, saying farewell before he returns to the US after the Jun 30 handover. Last night, militants blew up a bomb outside a mosque in Hillah, killing 23 people. Bremer described them as "enemies of Iraq". The US military says deaths from guerilla attacks had been running at 100 per wk, and now "well exceed" that. The NATO chief Japp de Hoop Scheffer says the organisation will "do its part" in the training and supply of Iraqi forces. But he was non-committal over the details. The US wants training of the Iraqi army to take place inside the country. But French Pres Chirac wants NATO training to happen outside Iraq. At the NATO meeting in Istanbul, the US is also pushing for more assistance in Afghanistan, which some officials describe as "another disaster". Israeli choppers have attacked buildings in Gaza City. There were not reports of cas. The raids came just hrs after 6 Israeli soldiers were injured [later reports say killed] in a bomb attack when Palestinian militants dug a tunnel under an army base. The militants described it as "revenge" for the assassination of Sheikh Yassin and the killing of 7 Palestinians over the weekend. On the local markets, resources and News Corp have eased ahead. But the All Ords is down 6 pts. In Japan, the Nikkei is up 18 pts. The AUD is at 69.81 US c and without friends. Gold is up .80 to $US402.14/oz. Oil is steady at $US37.42/bbl. Bill Gates is in Sydney today, putting up $40 mn over 5 y to 5 charities to provide Internet access to indigenous groups and the elderly. 500 people attended at a SYD hotel to hear Gates announce his "Unlimited potential" program. 1 pm 6 Iraqi soldiers and 1 insurgent have been killed when gunmen attacked a checkpoint nr Hillah. 2 people have been killed in a Palestinian rocket attack on an Israeli settlement. While people ate often injured by the home-made rockets, this is the first fatality associated with the Kassam. 2 pm A federal Labor government will make the Liberal Party pay back any money for current advertising that is found to be political, leader Mark Latham says. A $US4 mn ransom was paid for the release of 3 Italian hostages in Iraq in Apr, after a 4th hostage was executed, according to an interview of one of the alleged kidnappers in Brit's Sun Times newspaper. A Royal Aussie Air Force Hercules C-130 transport plane has been hit by gunfire after take-off from Baghdad airport, killing one person on board. An armed group saying it has kidnapped a US Marine has threatened to behead the captive unless Iraqi prisoners are released in the war-torn country, according to a video broadcast on Al Jazeera television. Israeli helicopter gunships have launched separate missile attacks on targets in Gaza city, hours after Palestinian militants blew up an army post. NATO has agreed to help Iraq train its new army on the eve of a summit in Istanbul, but emotions were high amid street protests against visiting US Pres George W Bush and tight security. 6.30 pm There's been a surprise hand-over of "sovereignty" in Iraq, 3 days early. A simple handshake between Bremer and Allawi marked the surprise transition. Bremer handed over legal documents, ended 14 m of US occupation. Reports of the deal leaked from the NATO summit meeting in Turkey. It comes amid increasing violence from insurgent groups. It's not clear what's behind the sudden change of plan. The news broke as leaders arrived for the NATO meeting in Istanbul. The interim Iraqi FM called for help from NATO, and to take Iraq more seriously. Insurgents are threatening to behead 5 captives in Iraq, demanding the release of all Iraqi prisoners. Rumsfeld said compliance with terrorists would be the end of the road for freedom. Saddam will be brought before a court within days. The Iraqi interim govt wants to demo it's in control and the former dictator is in their hands. A controversial display continues in the Knesset, after it was temporarily closed down by the Israeli army and the organisers called in for questioning. The photos -- taken by Israeli soldiers -- show what they say is the day-to-day reality of the occupied territories. Pal children play-act at lining up to be frisked by Israeli soldiers. A man is shown in the cross-hairs of an Israeli rifle sight. A teen-aged boy is blindfolded and tied to a chair, as a group of soldiers take a break. The soldiers that organised the exhibition say they want their countrymen to see what their govt is ordering the armed forces to do. They say they've been told to fire tear gas into crowds of Palestinians, just to see what reaction there would be. 7.30 pm There's a rumour Jordanian terrorist al-Zarqawi has been arrested by US forces in Iraq. There was a $mn reward on his head. If confirmed, the news will be a feather in the cap of the new interim Iraqi govt, which has been mercilessly targeted by foreign terrorists. 9 pm A group of Israeli settlers for the first time says it will accept compensation payments to move from the occupied territories back to Israel. 11 pm Paul Bremer has flown out of Iraq. The interim govt was later sworn in, at a secret location. While US officials say Bremer just left because he didn't have anything more to do, US cmdrs have told BBC reporters the Jun 30 date was just too big a target for some spectacular guerilla attack. 11.50 pm Pres Bush is giving a press conf. Today is a moral achievement. We promised to end the Saddam regime . We've kept our word. Today Iraq is an ally of the US and the civilised world. 15 m ago Iraq was a sponsor of terrorism. Now Iraq is fighting terrorism across the country. Iraq's democratic progress will be an inspiration to the Middle E. Iraq murdered 100s of 1000s and buried them in mass graves [cut off by BBC]. }} ======================================== (*) Who is responcible for W.A.R.S? A small group of dedicated sandgrubbers, bannana-lickers and 5th columnists on the run from support payments and sundry legalese in their home countries. Mention us at any Uncle Harry's Suburban Bunker and get a 10% discount on cop-killers! Special deals for multiple posting aliases! All speling macroizated for correctitood by Mcrosotf Speelchek. *** Please stand by for further orders from The Leader ***