From the World-Wide Resourses of the Western Australia Reserch Senter(*) OIL THE NEWS THAT FITS MY VIEWS #188 =============================== 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: [8,902+ as at 22 Apr 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... ------------------------------------------------------------ They want to kill innocent life to get us to quit... and we're not going to. -- Pres Bush Jr, 28 Apr 2004. Stabilisation, security, and an imminent full-scale assault on Fallujah. "Mission Accomplished". This barbaric deed was engineered by America and Australia. -- Abu Bakar Bashir rep, 30 Apr 2004. Bashir re-arrested. Indonesian police say they have a document that places the Islamic cleric at a terrorist training camp and directing the appointment of militia cmdrs. It was wide-ranging... it was {er} important... [...] I'm glad I did it. I'm glad I took the time. -- Pres Bush, 29 Apr 2004. After ms trying to weasel out of testifying, the Pres says he and Cheney managed to answer all the questions convincingly. If we had something to hide, we would never have met with them in the first place. -- Pres Bush Jr, 29 Apr 2004. Mr Bush said it was important for the Commission to see the body language between him and VP Cheney. The secret questions were not recorded or televised. The Pres will also get to redact anything in the report he doesn't like. Either Allan Jones... or the PM... is a liar. -- John Laws, 29 Apr 2004. I understood this to be an inclusive or. I think it's very sad... Some of these things are inspired by anger or jealousy... I don't know what it is. -- Telstra rep Allan Jones, 29 Apr 2004. Jones says he can't recall telling party guests he threatened the PM he'd stop his pro-govt comments on radio unless the govt re-appointed a friendly broadcasting chief. It's a serious attempt to tackle some of the structural problems. -- PM John Howard, 29 Apr 2004. The Howard govt has put up another $1/2 bn for the sugar industry in marginal Queensland seats. The govt says distortions in world markets (a technical term for "too many bilateral trade agreements") are to blame. I don't accept that Allan Jones has pulled strings with me. -- PM John Howard, 30 Apr 2004. Prof David Flint has stepped down amid a row over whose idea it was to appoint him. ---------------------------------------- Thu, 29 Apr 2004. INTERNATIONAL HEADLINES: "System wide" mistreatment of Iraqi prisoners: report 6 charged over Iraqi prisoner abuse Annan warns US raids making Iraq stand-off worse Washington Unleashes Bloodbath in Iraq US rushes more tanks to Iraq US expects mandate for more troops for Iraq Syria's Assad sees "legitimate resistance" in Iraq Spain discusses Iraq resolution in Berlin Powell defends force used in Iraq Marines fight Iraq rebels at Fallujah train station Iraqis grumble at prospect of sovereignty without authority Iraq modifies new flag after protests Iraq contracts give major boost to Halliburton revenues Death toll rises as Iraq violence continues CBS broadcasts images of US troops mistreating Iraqis Bremer considering coup in Iraq Blair faces tough questions on support for US tactics in Iraq Blair defends US tactics on Iraq Apple notches 70 mn music downloads Bush diverting enviro funds into fossil fuels Canada dollar drops Colombia backhoe crush kills 23, hurts 36 Comcast withdraws Disney bid DNA computer detects, treats test tube disease Fallujah strikes continue despite ongoing talks Flying saucer fever grips Iran, theories abound Indonesian attack claims rejected Israel confirms IAEA visit Lawyers challenge Bush's authority in detainee case Mars rovers complete missions, head for hills Mbeki includes more women in new cabinet Neanderthals not as slow as once thought: study New charges laid against 9/11 suspect Risk rises with Hollywood budgets Supreme Court hears enemy combatant case Thai troops sent S to quell unrest UN council adopts terrorist arms ban US concerned over Thailand US forces renew strikes in Fallujah US issues travel warning to Israel AUSSIE HEADLINES: ALP commits to mentor young Aussies AUS may send vehicles to Iraq Alan Jones denies the political interference claims Amex ads to promote Aussie tourism Aussies advise Nauru in asylum case Aust considers sending military equipment to Iraqi army Clark challenges suspension despite ATSIC scrapping DPP wants further inquiries into model's death High Court overturns children in detention decision Howard defends joint strike fighter Jones hits back at claims Kyoto benefits outweigh negative impacts, Latham says Laws claims there are more Flint letters Markets unsettled as Aussie dollar tumbles Military barrister wants defence concerns aired at inquiry New rum rebellion over US bourbon PM poised to announce sugar rescue deal PM unaware of fighter jets cost blowout Santos sales hit by Moomba explosion Sugar industry receives $444 mn sweetener Toohey continues attack on DIO Union boss to meet Mitsubishi AUS's managing director Union concerned Labor plan undermines female teachers Witnesses will back me up: Laws Woman dies after bag snatching incident Markets unsettled as Aussie dollar tumbles NY/Sydney. Renewed fears about rising US interest rates have unsettled financial markets overnight. Wall St has also been unsettled by the escalating Iraq conflict. There is a new focus on the possible overheating of China's economy and the measures being taken to head it off. Shares in US metal and mining companies have been sold off amid concerns that borrowing restrictions in China could dampen demand for raw materials. On the NYSE, the Dow has slumped 136 points to close at 10,343 -- a slide of 1.3%. Prices on the high-tech Nasdaq exchange have suffered a 2.1% decline, with the Nasdaq composite index losing 43 points to 1,990. The Brit market has registered its biggest fall in 5 wk as UK investors also weigh up the implications of possibly lower demand for metals out of China. Consumer goods giant Unilever has been in the firing line after uninspiring sales figures. London's FT100 index has ended 51 points lower at 4,525. Yesterday, the Aussie market edged lower again, in a holding pattern ahead of US economic growth figures due out tonight. The All Ords slipped 2 points to 3,450. On foreign exchange markets the USD has strengthened against most major currencies ahead of tonight's Gross Domestic Product measure, as a strong reading will prompt further speculation that American interest rates will soon rise. The AUD has tumbled overnight. At 7.15 am it was quoted at 72.22 US c. The gold price has slumped to $US385.40/oz and West Texas crude was at $US37.26. Canada dollar drops Stocks plunge on Nortel firings, earnings. Toronto (Bloomberg). Canada's dollar fell to a 7-m low against the USD as Canadian stocks took their biggest plunge in 13 m after Nortel Networks Corp reported the firing of top executives and accounting "mistakes" [!?]. Shares of Nortel, the eighth-biggest company in the Standard and Poor's/TSX Composite Index, which trades in $C, dropped 26%. The telephone equipment maker said it may have to reduce by half the profit it reported for 2003. Currency declines were extended on concern about slowing Chinese demand for commodities, as well as a possible narrowing of Canada's interest-rate advantage over the US "Nortel is by far the most traded stock in Canada and the TSX is down much more than other stock markets today," said Carsten Fritsch, a currency strategist at Commerzbank Securities, a unit of Germany's third-biggest bank by assets, in Frankfurt. "Isolated, that has a short-term negative effect on the Canadian dollar." At 2.25 pm in Toronto, the Canadian dollar fell 1.3% to 72.99 US cents, the lowest since Sep 17, from 73.97 US cents late Tue. One USD buys $C1.3701. The currency fell the most since Apr 8, when Canada announced the 2nd straight m of job losses. Canada's dollar also declined after China's State Council yesterday reduced the%age of debt companies may use in funding steel, cement, aluminium and real estate projects, state- run China Central Television reported. Materials and energy companies comprise about 1/3 of the S&P/TSX index, which plunged as much as 2.6% today. * Cooling in China Today the vice governor of the Chinese central bank said efforts to cool economic expansion are working, and she asked banks to help by curbing loans to businesses. Other so-called commodity currencies, including the Aussie and NZD and S Africa's rand, declined between 1.4% and 3.9% against the USD today. "Sentiment toward the traditional sectors, namely the commodity-related sectors that have been some of the best performers since the equity market rebound began in Mar of last y, has deteriorated sharply over the past 2 wk," Lehman Brothers Holdings Inc currency team noted in its weekly "Global Relative Value" report to clients. Canada's dollar will weaken and stay above $C1.3440, where sell orders are clustered, as traders await labour reports in Canada and the US next Fri, said Richard Franulovich, a NY-based currency strategist at Westpac Banking Corp, AUS's 4th-largest lender. It will rise if the Canadian indicators surpass the US, he said. * Stronger US Growth Reports this m on US retail sales, inflation and durable goods have exceeded economists' expectations and have led all 16 major currencies to fall against the USD. Canada's dollar declined 4.6%, as the anticipated shrinking Canadian yield advantage over the US curbed demand for C-dollar assets. "As long as the USD is supported across the board by rising rate expectations the Canadian currency will decline," Franulovich said. Yesterday, Canada reported that overall retail sales advanced in Feb by 2.3%, for the fastest pace since Dec 1997, driven by a 7.7% rise in new motor vehicle sales that month. The govt has also reported gains in its trade surplus, manufacturing shipments and leading indicators. "It's really going to be a USD story rather than a Canadian dollar story," said Ian Gunner, head of foreign- exchange research in London at Mellon Financial Corp, which manages about $612 bn. "The inability of the Canadian dollar to strengthen after yesterday's [retail] number was testament to that." * Rate Comparison Commerzbank's Fritsch described the effect of US rates as "the underlying factor" contributing to the Canadian dollar's drop, while the news from Nortel "must be the special factor today." The US benchmark rate is at 1%, compared with 2 percent for Canada. The Canadian dollar has risen 5.6% in the past 12 m against the USD as some investors flocked to higher-yielding Canadian debt securities. Canada's rate premium, which reached as high as 2.25 percentage points in the past year, would diminish with a US rate increase. "There was a lack of yield support" after the Bank of Canada cut rates 5 times since last Jul, including 3 times this y, Westpac's Franulovich said. The 3% bond maturing in Jun 2006 fell 7 cents to $C100.33, according to HSBC Securities Canada Inc Its yield rose almost 4 basis points, or 0.04 points, to 2.83%. Canada's 2-y bonds yield 62 basis more than their US counterparts, down from 223 basis points reached in the past 12 m. The yield on the Sep Eurodollars futures contract, a gauge of expected US interest rates, is 1.730%. Eurodollar futures settle at the 3-m London interbank offered rate, or Libor, which has averaged about 22 basis points more than the Fed's benchmark rate since 1994. Investors pushed the yield on the Canadian bankers' acceptance contract due Dec. 13, also an interest-rate future, to 2.50%, suggesting Canada's target rate may rise by Dec. Bankers' acceptance futures settle at Canada's 3-m lending rate, which has averaged 20 basis points above the target rate since Bloomberg started tracking the spread in Dec 1992. New rum rebellion over US bourbon Bundy (AAP). Forget the rum rebellion -- the proposed free trade deal between AUS and the US threatens to become a bourbon war. AUS's iconic rum producer, the Bundaberg Distilling Company, has raised fears the Free Trade Agreement (FTA) will give its American bourbon producing rivals a huge leg up. And it believes a special Aussie ruling is giving US producers a significant price advantage. Under the FTA agreed upon by AUS and the US, the 5% tariff on American bourbon will disappear as soon as the deal comes into force. On a $A40 bottle of Jack Daniels the tariff reduction is worth about $A2.00. But the chairman of the Bundaberg distilling company, Tony Scanlan, said that under the deal his rum company will have to wait 18 y before tariffs on its products sent to the US will be finally lifted. Mr Scanlan said the biggest problem was the very definition of bourbon used by AUS. While bourbon is recognised globally as being at least 40% proof, a 1975 Aussie decision means the dark alcohol needs only to be 37% proof to be called bourbon. Mr Scanlan said bulk bourbon brought in from the US was effectively being watered down to 37%, and in the process saving importers $mns in excise fees. In a letter to a parliamentary committee investigating the FTA, Mr Scanlan said this difference had to be examined and rectified. "Bundaberg requests the committee to take account of the inconsistencies in the treatment of US bourbon and Aussie rum which will result from the proposed FTA, and the manner in which competition in the distilled spirits market will be affected as a result," he said in the letter. "At the very least, in order to mitigate some of the adverse effects, Bundaberg requests the committee to insist that as part of implementing the FTA, all bulk bourbon imported into AUS be bottled and sold in accordance with the geographic indication for bourbon including a minimum alcohol content of 40%." At stake is a key regional employer. Bundaberg has been making rum since 1889, and today sells about 600,000 bottles of full strength rum and 4 mn cases of ready to drink product. Mr Scanlan said the issue was vital to Bundaberg, and the FTA was doing little to help. Comcast withdraws Disney bid LA (Reuters). The largest US cable TV company has withdrawn its unsolicited $US48.4 bn offer to buy the Walt Disney Company after the entertainment conglomerate steadfastly refused to open negotiations. Comcast's stock price rose slightly after the decision, which came amid pressure from wary shareholders and drew praise from analysts and investors. Comcast did not answer where the fast-growing company might look to expand next, or whether the failed bid might hamper its growth plans. "Unfortunately it has become abundantly clear that Disney does not share our interests," Comcast chief executive Brian Roberts said on a conference call. "I am very comfortable with our decision to withdraw even though it is not the outcome I had hoped for." The decision handed a major victory to embattled Disney chief executive Michael Eisner, who still faces a revolt from share holders contending he does not have a strategy to ensure long-term growth. A Disney rep did not immediately return calls seeking comment. The entertainment and media conglomerate's board contended Comcast's offer severely undervalued the company. Philadelphia-based Comcast may one day re-emerge with a new bid for Disney, analysts said. But for now, Mr Roberts said he will look for other ways to expand in content, distribution and technology. "We're moving on," Mr Roberts said. "Our desire is to find attractive ways to grow. We have an enviable footprint that opens up opportunities." Mr Roberts opted to make the Disney bid public in Feb after Mr Eisner rejected his initial overture. Disney shares immediately jumped well above the offer price, but Mr Roberts said he would wait for the stock to move to a more rational level. The combination of Disney's refusal to negotiate and concerns by Comcast share holders about the size of the bid led Mr Roberts to decide to withdraw the bid on Tue night after consulting with a tight-knit group of advisers for 2 days, sources close to the company said. "This was Brian's decision," one source said. "Our shareholders have been speaking pretty clearly. The board was entirely supportive." The Disney bid had led some analysts and investors to question whether Comcast believed it could sustain a cable-only strategy going forward. Mr Roberts acknowledged those concerns, but said he did not share them. "Some of our shareholders felt that we were signalling that we had lost confidence in the cable business," he said. "I'd like to make one critical point. We love the cable business. We have never been more bullish about cable and its potential for growth from the future." The withdrawal of the bid comes a day after Disney's board reiterated support for its embattled chief, Mr Eisner, who has faced sharp criticism from high profile shareholders. Mr Eisner lost his chairman title after a contentious annual meeting last m. Colombia backhoe crush kills 23, hurts 36 Bogota (AP). A construction backhoe tumbled down a steep hillside and landed on a school bus Wed, killing at least 21 elementary students and 2 adults, officials said. A crew was towing the large earth mover along a section of road higher up the hill when it rolled off a ledge and plunged 70 feet before crushing the bus on the highway below, said Claudia Cubillos, a rep for the Bogota Health Min'y, which oversees rescue efforts. The bus was taking the 7-to-12-yo students from the Agustiniano school to their homes in the capital's middle-class Suba district when the accident occurred during the afternoon rush hour. Traffic behind the wreck was backed up for several km. Around a hundred emergency workers and police used heavy machinery to try to clear the mangled wreckage. Ambulances with sirens wailing rushed the injured to hospital. There were reports of some children still trapped. Police, meanwhile, struggled to keep back panicked families desperate to find out if their children were among the victims. Mayor Luis Eduardo Garzon sped to the scene of the accident by motorbike to show solidarity with the victims and their families. "This is a dramatic, terrible tragedy," Garzon told reporters at the scene of the crash. Sgt Alberto Cantillo, a rep for the Bogota Police Dept, said it was not immediately clear whether the 2 adults were travelling inside the bus. The bus driver survived unharmed, while the backhoe's driver was in a critical condition. It was not immediately clear why the excavator tumbled off the road, though witnesses said the driver lost control of the vehicle. Police said an investigation was under way. UN to keep terrorists from WMD UN (AFP). The UN Sec Council has unanimously passed a resolution intended to keep nuclear, biological and chemical weapons out of the hands of terrorists. The resolution calls on the 191 UN member nations to stop terrorists, black market traders and all so-called "non-state actors" from acquiring such weapons or the materials and technology to make or deliver them. It also calls on them to adopt laws to prevent sensitive materials and technology from getting into their hands. The 15-0 vote approved the measure, crafted in months of negotiations by the council's 5 permanent members -- Brit, China, France, Russia and the US -- all of which are nuclear powers. The text was revised 3 times to answer objections from some of the council's 10 non-permanent members and finally won the support of the last holdout, Pakistan, which is also a nuclear-armed state. US Pres George W Bush 1st called for the resolution in Sep in a speech before the UN. "Today's vote was an important step," White House rep Scott McClellan said. "This will help make the world safer and better." Pakistani UN ambassador Munir Akram said his country strongly supported efforts to stop the spread of nuclear, biological and chemical weapons but said the Sec Council took on "exceptional responsibilities" in adopting the measure. Diplomats said there was broad agreement on the need to close the loophole in existing internat'l treaties on non-proliferation, which touch on states but not on individuals. But many nations argued treaties were the better way to address the issue. Pakistan in particular had raised concern about what actions might be taken to enforce the resolution's provisions. After wk of diplomatic haggling, the final draft said that the Sec Council would monitor implementation and "take further decisions which may be required". The mastermind of Pakistan's nuclear weapons program, AQ Khan, confessed in Feb to passing nuclear secrets to Iran, Libya and N Korea. The US said on Wed that it was seeking several other nations which may have been his "customers". Akram again stressed Pakistan, which is not a party to non-proliferation treaties, would not allow inspections of its nuclear facilities, and cited without naming its nuclear-armed rival and neighbour India. "Pakistan will not accept any demand for access, much less inspections, of our nuclear and strategic assets, materials and facilities. UN council adopts terrorist arms ban NY. The United Nations Security Council has voted unanimously for a US-drafted resolution that would punish black marketeers who traffic in nuclear, chemical and biological weapons components. The measure would obligate all 191 UN member nations to punish "non-state actors" dealing in parts and technology for WMD. Even Pakistan, which had misgivings until the last minute, voted for the resolution in the 15-nation council, giving the Bush Admin and its allies a clean sweep. Pakistan admitted this y that Abdul Qadeer Khan, a scientist revered as the father of the country's nuclear bomb, had smuggled nuclear secrets to N Korea, Iran and Libya, and was under house arrest. In an effort to get Pakistan's vote, the resolution was not made retroactive, a point noted by its UN ambassador, Munir Akram, in his address to the council. The measure was sponsored by Brit, France, Philippines, Romania, Russia, Spain as well as the US. At Sep's UN Gen Assembly, Pres George W Bush called for a resolution to "criminalise the proliferation of weapons". The resolution compels nations to adopt and enforce laws to prevent terrorists and black marketeers from being able to "manufacture, acquire, possess, develop, transport or use nuclear, chemical or biological weapons and their means of delivery". It was adopted under Chapter VII of the UN Charter, which makes it obligatory for all nations and could allow for eventual sanctions and the use of force. In this case, it does not provide any sanctions if the states do not comply. Instead, US officials said they relied mainly on "name and shame" pressures on errant nations and Brit envoys said any enforcement action would need another resolution. Pakistan's ambassador Mr Akram earlier objected to the use of Chapter VII enforcement provisions. But Mr Akram said on Wed that revisions in the text made it clear the council would not legislate for the world because it was not a representative body. The text now says it is up to individual nations to proscribe specific legislation. The US deputy ambassador, James Cunningham, told the council that "no one nation can meet this challenge alone." He hoped states would cooperate in efforts to "stop the flow of these deadly weapons." The resolution was negotiated over 6 m by the 5 permanent members of the council, the US, Brit, France, Russia and China. It aims to fill a gap in the system of treaties negotiated since World War 2 to halt the spread of nuclear and other unconventional weapons to "non-state actors" rather than states alone. In London, Brit For Sec Jack Straw said: "the importance of this resolution cannot be underestimated" as a demo "of the internat'l community's determination to tackle the threat posed by the proliferation of WMD." Among the concessions in the resolution was to lengthen from 6 m to 2 y the life of a Security Council monitoring committee. The shorter period had raised questions of quick compliance in devising and adopting new legislation.Reuters Israel confirms IAEA visit Jerusalem (BBC). Israel says the head of the Internat'l Atomic Energy Agency (IAEA), Mohammed El Baradei, is to visit the country in Jul. Israel is not a signatory to the Nuclear Non-Proliferation Treaty and has never opened its nuclear facilities to internat'l inspection. It refuses to confirm or deny that it has nuclear weapons. Israel's permanent representative to the IAEA, Gabriella Guffney, told the BBC Doctor El Baradei would be visiting Israel in Jul for what she described as a routine visit. She said the trip was still in the planning phase and that further details would be released at a later date. A rep for the IAEA, Melissa Fleming, said this would be Doctor El Baradei's 1st trip to Israel in 6 y. She said he intends to use the trip to promote non-proliferation and a nuclear weapons free zone in the Middle East. CBS broadcasts images of US troops mistreating Iraqis NY (AFP). CBS on Wed broadcast images of US troops mistreating Iraqi prisoners, saying an army investigation had found "systemwide" problems in the handling of captured Iraqis. 6 US soldiers are being court-martialed on charges stemming from the investigation into abuse of prisoners at Abu Gharaib, said Gen Mark Kimmitt, deputy chief of military operations in Iraq. Abu Gharaib is infamous as a prison where former Iraqi dictator Saddam Hussein's regime tortured and executed opponents. Photographs aired by the network on "60 Minutes II" included one showing a prisoner standing on a box with a hood over his head and wires coming from his hands. The network said he was told he would be electrocuted if he fell off. Other pictures showed nude prisoners lying on each other and simulating oral sex as US troops pointed and laughed. "We're appalled. ... These are our fellow soldiers, these are the people we work with every day, they represent us, they wear the same uniform as us, and they let their fellow soldiers down," Kimmitt told CBS in an interview from Baghdad. "We expect our soldiers to be treated well by the adversary, by the enemy, ... and if we can't hold ourselves up as an example of how to treat people with dignity and respect, we can't ask that other nations do that to our soldiers." Army Reserve Staff Sgt Chip Frederick has been charged with maltreatment, assault and indecent acts for posing for a photograph while sitting on top of a detainee, striking detainees and ordering detainees to strike each other, among other things, CBS said. Frederick, a prison guard from Virginia in civilian life, and his lawyer, Gary Myers, blamed the problems at the prison on the atmosphere created by cmdrs. "We had no support, no training whatsoever," he told CBS. Indeed, the army investigation found a lack of leadership at the prison and concluded soldiers at the prison, most of whom were reservists, were not trained on rules for handling prisoners of war under the Geneva Convention. "System wide" mistreatment of Iraqi prisoners: report CBS has aired graphic footage of soldiers abusing prisoners. Washington (AFP). CBS has broadcast images of US troops mistreating Iraqi prisoners, saying an army investigation has found "system wide" problems in the handling of captured Iraqis. Deputy chief of military operations in Iraq, Gen Mark Kimmitt, says 6 US soldiers are being court martialled on charges stemming from the investigation into abuse of prisoners at Abu Gharaib. Abu Gharaib is infamous as a prison where former Iraqi dictator Saddam Hussein's regime tortured and executed opponents. Photographs aired by the network on 60 Minutes II include one showing a prisoner standing on a box with a hood over his head and wires coming from his hands. The network says he was told he would be electrocuted if he fell off. Other pictures show nude prisoners lying on each other and simulating oral sex as US troops point and laugh. "We're appalled. ... These are our fellow soldiers, these are the people we work with every day, they represent us, they wear the same uniform as us, and they let their fellow soldiers down," Gen Kimmitt said. "We expect our soldiers to be treated well by the adversary, by the enemy... and if we can't hold ourselves up as an example of how to treat people with dignity and respect, we can't ask that other nations do that to our soldiers." Army Reserve Staff Sgt Chip Frederick has been charged with maltreatment, assault and indecent acts for posing for a photograph while sitting on top of a detainee, striking detainees and ordering detainees to strike each other, among other things, CBS reports. Frederick, a prison guard from Virginia in civilian life, and his lawyer Gary Myers blames the problems at the prison on the atmosphere created by cmdrs. "We had no support, no training whatsoever," Mr Myers told CBS. Indeed, the army investigation found a lack of leadership at the prison and concluded soldiers at the prison, most of whom are reservists, are not trained on rules for handling prisoners of war under the Geneva Convention. US troops humiliate Iraqi prisoners Washington (AFP). US TV network CBS broadcast images of American troops mistreating Iraqi prisoners, saying an army investigation had found "systemwide" problems in the handling of captured Iraqis. 6 US soldiers are being court-martialed on charges stemming from the investigation into abuse of prisoners at Abu Gharaib, said Gen Mark Kimmitt, deputy chief of military operations in Iraq. Abu Gharaib is infamous as a prison where former Iraqi dictator Saddam Hussein's regime tortured and executed opponents. Photographs aired by the network on 60 Minutes II included one showing a prisoner standing on a box with a hood over his head and wires coming from his hands. The network said he was told he would be electrocuted if he fell off. Other pictures showed nude prisoners lying on each other and simulating oral sex as US troops pointed and laughed. "We're appalled... these are our fellow soldiers, these are the people we work with every day, they represent us, they wear the same uniform as us, and they let their fellow soldiers down," Kimmitt told CBS in an interview from Baghdad. "We expect our soldiers to be treated well by the adversary, by the enemy... and if we can't hold ourselves up as an example of how to treat people with dignity and respect, we can't ask that other nations do that to our soldiers." Army Reserve Staff Sgt Chip Frederick has been charged with maltreatment, assault and indecent acts for posing for a photograph while sitting on top of a detainee, striking detainees and ordering detainees to strike each other, among other things, CBS said. Frederick, a prison guard from Virginia in civilian life, and his lawyer, Gary Myers, blamed the problems at the prison on the atmosphere created by cmdrs. "We had no support, no training whatsoever," he told CBS. Indeed, the army investigation found a lack of leadership at the prison and concluded soldiers at the prison, most of whom were reservists, were not trained on rules for handling prisoners of war under the Geneva Convention. 6 charged over Iraqi prisoner abuse Baghdad (CNN). 6 coalition military personnel have been charged with criminal offences after an investigation into the alleged abuse of prisoners in Iraq. US Brig Gen Mark Kimmitt says the investigation was launched in Jan, following complaints from another coalition soldier. "I'm not going to stand up here and apologise for those soldiers," he said. "If what they did is proven in a court of law, that is incompatible with the values we stand for as a professional military force, they will be tried before a court and then those decisions will be made." Powell defends force used in Iraq Berlin (The Australian). US Secretary of State Colin Powell today defended the scale of force being used against rebel fighters in Iraq and slammed them for using mosques to launch attacks on US troops. "We are being very careful on what we are doing in Fallujah and Najaff and Karbala and elsewhere in the country," Powell told reporters on the sidelines of an internat'l anti-Semitism conference in Berlin. "We are being as careful as we can not to injure civilians and not to damage holy places," he said. "There would be no problem if these murderers and thugs were not using holy places to store weapons, to use them as observation points and to shoot at our troops and to shoot at innocent civilians from these places." US marines have besieged the Sunni Muslim bastion city of Fallujah west of Baghdad for about a m and troops have also clashed with militias loyal to a radical Shi'ite Muslim based in the holy site of Najaff, S of the capital. Today, aircraft pounded for a 2nd day suspected rebel positions in Fallujah, the scene of the fiercest fighting of the US-led occupation and where scores of US soldiers and 100s of Iraqis have been killed this m. The assault, much of it broadcast live by Qatar-based satellite TV station Al-Jazeera, has been widely criticised in the Arab world. On the political front, Powell said he was encouraged by the plans of UN envoy Lakhdar Brahimi, who has been consulting on what interim govt should take back sovereignty from the US-led occupation coalition on Jun 30. "He is giving a course to move down. I think it is a good way to get to the interim govt. We will wait to see what the (UN) Sec-Gen says about Mr Brahimi's presentation" to the UN security council, Powell said. Later, after talks with For Min Joschka Fischer, he said that Germany and S Korea stood as historical precedents showing the US could hand over sovereignty and maintain military control. "We want to return as much sovereignty to this interim govt as it is prepared to handle," he told reporters. "I think it is a shared responsibility to help the Iraqi people live in peace." In other remarks, Powell said that he had received assurances from Poland that it would remain by the US' side in Iraq, despite the withdrawal of some other coalition countries. Blair defends US tactics on Iraq London (AP). PM Tony Blair on Wed defended US tactics in the assault on the Iraqi city of Fallujah , rejecting a legislator's assertion that the attack amounted to the "murder or mutilation of 100s of women and children." Disagreeing with the description, Blair said: "There is a situation in Fallujah where we have a large number of very well-armed former regime elements, and probably some outside terrorists as well .. and it is right that the American forces try to make sure that order is restored to that city. "The people that have been killing civilians in Iraq are not actually the American soldiers," Blair added. "They are people who through car bombs, suicide bombs, through attacks on innocent Iraqis as well as coalition forces who are causing that death and destruction totally unnecessarily." Blair faces tough questions on support for US tactics in Iraq London (Xinhua). Brit PM Tony Blair was put on the spot Wed in parliament by opp'n parties questioning his support for US tactics in Iraq. Brit PM Tony Blair was put on the spot Wed in parliament by opp'n parties questioning his support for US tactics in Iraq. Hours before, the US military launched new air strikes on some positions in the Iraqi city of Fallujah, a stronghold of Iraqi insurgents. The US attack amounted to the "murder or mutilation of 100s of women and children," the opp'n Conservative Party member of parliament Peter Tapsell asserted during a PM question and answer session at the House of Commons. "Does the PM support the murder or mutilation of 100s of women and children in Fallujah as an appropriate response to the savage murder of 4 American contractors?" Tapsell questioned. Blair, the staunchest US ally on Iraq, defended the US tactics saying US troops had every right to take action against former regime loyalists and terrorists in the city. "There is a situation in Fallujah where we have a large number of very well-armed former regime elements, and probably some outside terrorists as well...and it is right that the American forces try to make sure that order is restored to that city," Blair told the lawmakers. Charles Kennedy, leader of the opp'n Liberal Democrats, also pressed Blair on the issue, asking why the PM failed to use his influence on the US to find alternatives to the policy of "overwhelming" use of force to deal with violence in Iraq. Earlier, Blair received criticism from 52 former diplomats over his support for US Mideast policy. In a letter jointly signed by the diplomats, including ambassadors, high commissioners and governors, Blair was urged on Mon to start influencing America's "doomed" policy in the Middle E or stop backing it. The diplomats said there was "no effective plan for the post-Saddam settlement" and expressed their concern over the loss of lives during the US-led war against Iraq. They also attacked US Pres George W Bush for endorsing Israel's plan to retain some settlements in the W Bank and criticised Blair's public support for the policy which they believe is "one-sided and illegal" and will "cost yet more Israeli and Palestinian blood." Responding to the criticism, Blair answered that "we have a very clear political and military strategy. The political strategy is to make sure that there is a transition to a democratic Iraqi govt." "The military strategy is equally clear. It is to make sure that we can achieve sufficient security in Iraq for that political process to work," Blair said. Brit currently has 7,500 troops deployed in S Iraq. US rushes more tanks to Iraq Washington (Reuters). The United States military has rushed more tanks and other armoured vehicles to Iraq after requests from cmdrs in the bloodiest month for American troops since Saddam Hussein was toppled. "That armour is either [in Iraq] now or is arriving as we speak. So those requests were quickly filled," US Marine Maj Gen John Sattler told reporters on Wed. Maj Gen Sattler said the requests were made by cmdrs battling to stamp out guerrilla attacks in the so-called Sunni Triangle N and west of Baghdad, including Fallujah where US Marines launched new air and ground attacks. As US helicopter gunships and jet aircraft pounded several districts across Fallujah, Pres George W Bush said: "Our military cmdrs will take whatever actions necessary to secure [the city]." The previous 24 hr saw the most devastating display of US warplane firepower since American forces encircled Fallujah 3 wk ago after the killing of 4 American contractors and the mutilation of their bodies in the city. US expects mandate for more troops for Iraq Washington (AFP). US Sec of State Colin Powell has said he hopes a new UN resolution on Iraq will lead to new countries sending troops to help maintain security. Mr Powell said he expects a new UN resolution as power is handed over to an interim govt on Jun 30. "I expect that as we create the interim govt we'll get a UN resolution supporting that govt and encouraging all nations to support that govt," he said on the sidelines of an anti-Semitism conference in Berlin. "Hopefully as a result of such a resolution, there may be more nations that are willing to contribute to the force that's there under a broader UN mandate," said Mr Powell. The US-led coalition in Iraq has recently suffered 3 defections with Spain, Honduras and the Dominican Republic pulling out their troops. Mr Powell said he received assurances that Poland would stay in the coalition during a meeting on Wed with Polish FM Wlodzimierz Cimoszewicz. Mr Powell heads to Denmark on Thu, where the govt has come under strong criticism for supporting the US-led war and contributing 500 troops. AUS may send vehicles to Iraq Baghdad (AAP). AUS was considering sending military vehicles and equipment to Iraq to help train the Iraqi army, Defence Min Robert Hill said. After meeting with Iraqi Defence Min Ali Alawi and US administrator Paul Bremer in Baghdad, Sen Hill told reporters in Baghdad there had been a request for vehicles. "There's been some discussion between the new ministry, the Iraqi defence ministry, and our officials in relation to some of the Aussie land equipment, particularly vehicles, but that hasn't got further than exploratory discussion," he said. "Our emphasis to date has been to help the new ministry become established and to help with the training of the new Iraqi forces." Sen Hill reaffirmed Aussie troops would remain in Iraq and said it was time for more countries to send troops there. "We think now is not the time to withdraw forces, partly because we still think there's a lot of important work to be done but partly because we also don't want to give those who wish to defeat the new Iraq victory," he said. "I've been pleased that many countries have come out recently, or come out in the last few days, and said that despite the difficulties in Fallujah and elsewhere they remain committed to continue to contribute to the new Iraq. "I think that that's very important. "I would like to actually see the number of countries contributing be expanded, that would really send a positive message." Sen Hill denied an Aussie presence was in Iraq to take advantage of the nation. However, he said once the country was better restored, AUS hoped to have a healthy trade relationship with it. "I don't think we're specifically seeking a share of the Iraqi cake, although when Iraq is again a flourishing, trading nation, we hope to do business with Iraq in a way from which we can both prosper," Sen Hill said. "But our emphasis has really been in trying to assist and support Iraq through a very difficult stage of its history and we think we do bring experiences and skills that can be useful. "Provided the Iraqi people believe that they are useful then we would wish to make that investment in the new Iraq." Aust considers sending military equipment to Iraqi army Def Min Robert Hill says more countries should contribute forces to Iraq. Baghdad. AUS Def Min Sen Robert Hill says AUS is considering sending military vehicles and equipment to the new Iraqi army. Sen Hill has made the comment at a news conference in Baghdad, following a meeting with Iraqi Defence Min Ali Alawi and the US civilian administrator, Paul Bremer. He says AUS is also preparing to help with the rebuilding of the Iraqi defence forces, provided it is the wish of the Iraqi community. "There's been some discussion between the new ministry, the Iraqi defence ministry and our officials in relation to some of the Aussie land equipment, particularly vehicles, but that hasn't got further than exploratory discussion," he said. "Our emphasis to date has been to help the new ministry become established and to help with the training of the new Iraqi forces." Earlier, Sen Hill said Spain's withdrawal from Iraq has sent a positive message to those seeking to destroy the emerging Iraqi democracy. He reaffirmed AUS's military commitment to Iraq for at least one more y and also said it is time for more countries to send in troops. "I would like to think that in the future and maybe it will require another [UN] Sec Council resolution first," he said. "I would like to actually see the number of countries contributing be expanded. That would really send a positive message." Iraq contracts give major boost to Halliburton revenues Halliburton welcomes US probe, insists it is saving taxpayers money. Washington (AFP). Controversial US oil and services group Halliburton said that its contracts in Iraq had helped boost the turnover by about 80% in the 1st 3 m of the y. Support work to US military operations and US-funded reconstruction projects made up $2.1 bn out of the company's $5.5 bn of revenue in the 1st quarter, the Houston-based group said in a statement. The contracts also contributed $32 mn of operating profit to Halliburton, which was run from 1995 to 2000 by VP Dick Cheney. The Defence Dept is investigating some of the work of Halliburton and its Kellogg, Brown and Root subsidiary following allegations of over-charging. The group has also seen 34 workers killed in Iraq since the US invasion last y. But Halliburton said it was determined to stay in Iraq. Chief executive Dave Lesar said "we are committed to honour our contracts and I am extremely proud of the tenacity, the courage and sacrifice of our employees in Iraq. In the face of a hostile environment, KBR performs well." "I am disappointed that the allegations, by politicians and in the media, have increased security risks for our employees." "We are uniquely qualified to provide military logistical support. We have been doing that for 60 years," Lesar told a conference call. Halliburton, mainly through KBR, has about $6 bn worth of contracts in Iraq, mainly for logistics -- food supplies for troops, base construction and fuel deliveries. It is also helping to rebuild the Iraq oil industry. It employs about 20,000 people in Iraq, directly or through sub-contractors. On top of the 34 dead, truck driver Thomas Hammill is held hostage in Iraq and 2 others are missing. Lesar said the value of the contracts hit a peak in the 1st quarter and would fall from now on, especially after the Jun 30 hand-over of power by the US-led coalition in Iraq. Halliburton said its overall revenues were about 80 higher than the 1st quarter of 2003 thanks to KBR's engineering and construction work in the Middle East. It said energy services revenues were up 13%. Consolidated operating profit was $175 mn in the first quarter against $142 mn in the same period last y. Halliburton recorded a 65 mn dollar loss because of funds put in to pay for compensation for asbestos workers. Bush diverting enviro funds into fossil fuels Op/Ed (Daily Mis-lead). Pres Bush yesterday tried to deflect questions about his environmental record by claiming that he supports efforts to reduce America's fossil fuel usage. He said he had "introduced ideas like a hydrogen-powered automobile, put money behind it and research behind it" so that so that we will be "less dependent on foreign sources of energy" and we will "improve the environment." But Bush's hydrogen-automobile proposal is purposely engineered to be fossil fuel dependent, and it is paid for by taking money out of programs that are actually reducing fossil fuel use. As Mother Jones reported, "the Bush Admin has been working quietly to ensure that the system used to produce hydrogen will be as fossil fuel-dependent -- and potentially as dirty -- as the one that fuels today's SUVs. According to the Admin's Nat'l Hydrogen Energy Roadmap, drafted last y in concert with the energy industry, up to 90% of all hydrogen will be refined from oil, natural gas, and other fossil fuels". Such a system, experts say, would effectively eliminate most of the benefits offered by hydrogen because the Bush plan's use of oil/coal/gas to create fuel cells would generate large amounts of pollution. Not surprisingly, such a system would insure the massive profits of the energy industry, which bankrolls Bush's campaign. Bush is, in part, paying for this fossil-fuel-based program by stripping funding from programs that are actually reducing fossil fuel use in America. As AP reported, Bush moved money into his hydrogen program at the same time he "ended an 8-y program to help automakers develop high-mileage, family size cars" such as the successful hybrids now beginning to permeate the US market. Additionally, Bush proposed reducing "fed funding for renewable energy and efficiency research program by more than $200 mn in 2002". Lawyers challenge Bush's authority in detainee case Washington. The US Supreme Court is hearing another 2 cases questioning Pres George W Bush's authority to describe people as enemy combatants and indefinitely detain them. The hearing is similar to the case involving Aussies David Hicks and Mamdouh Habib. The 2 new cases involve Americans who have been jailed and denied access to the US court system. Jose Padilla was arrested at Chicago airport on suspicion of plotting to detonate a dirty bomb. Yasser Hamdi was seized while fighting in Afghanistan. Lawyer Frank Dunham says the White House has overstepped its authority. "We have never authorised the detention of a citizen in this country without giving him an opportunity to be heard," he said. But a lawyer for the Bush Admin argued Congress had given the Pres, as cmdr in chief, wide ranging powers to fight terrorism. Supreme Court Hears Enemy Combatant Case [Hamdi v Rumsfeld, 03-6696, and Rumsfeld v Padilla, 03-1027]. Washington (AP). The war on terrorism gives the govt power to seize Americans and hold them without charges for as long as it takes to ensure they are not a danger to the nation, the Bush Admin told the Supreme Court on Wed. Lawyers for 2 men detained by the govt argued in reply that fighting terrorists cannot mean a president has unchecked authority to snatch US citizens and hold them without a chance to plead their case. "We could have people locked up all over the country tomorrow," said Frank Dunham, lawyer for a Louisiana-born man captured while fighting with the Taliban in Afghanistan. 2-and-1/2 y after the Sep 11 jetliner attacks that killed 1000s, the nation's highest court considered far-reaching questions about civil liberties, law and America's security in a changed world. By their words in court, a majority of justices seemed to give at least qualified support to the Bush Admin. The justices heard 2 cases about US citizens being held as "enemy combatants." Yaser Esam Hamdi was born in Baton Rouge while his Saudi father worked there, but grew up in the Middle East. Jose Padilla was born in Brooklyn and raised in Chicago. The American-born men, like foreign fighters also labelled enemy combatants and held abroad, have been in nr solitary confinement, without access to courts, lawyers or the outside world. Only in the past month, with the Supreme Court about to hear their cases, have they been allowed to meet with lawyers. "We've had war on our soil before, and never before in our nation's history has this court granted the president a blank check to do whatever he wants to American citizens," lawyer Jennifer Martinez argued on behalf of Padilla, a former gang member and alleged al-Qaeda associate arrested at O'Hare Airport on suspicion of plotting to detonate a radioactive bomb. Govt lawyer Paul Clement countered that Congress gave the president broad power to go after terrorists and head off future threats at home or abroad. He likened Padilla to a "latter-day, citizen version of Mohammed Atta," ringleader of the Sep 11 hijackings. The open-ended detentions prevent the men from rejoining the fight against the US and help the govt gather intel, Clement told the justices. Prisoners of war in other conflicts haven't been able to challenge their detentions in court, he said. "But have we ever had a situation like this where presumably this warlike status could last for 25 y, 50 y, whatever it is?" asked Justice Sandra Day O'Connor. Any wartime detention can seem indefinite, at least at the start, Clement replied. "If you talk about a detainee in 1942, they're not going to know how long World War II is going to last." Several justices suggested it is impractical, perhaps impossible, to expect the govt to hold extensive hearings before holding someone -- even a citizen -- who it suspects is fighting for the enemy. "You want them to run down the members of the Afghan allies who captured this man and get them to testify in a proceeding?" Justice Antonin Scalia asked Hamdi's lawyer. "It's just putting unreasonable demands upon a war situation." Wed's back-to-back arguments were the last of the current Supreme Court term. The justices are expected to rule in the Hamdi and Padilla cases by Jul. Last wk the court heard a similar case about legal rights of foreign enemy combatants held at Guantanamo Bay, Cuba, and that ruling is also expected by summer. Taken together, the 3 cases give the court the opportunity to broadly define how the govt may treat citizen and non-citizen terrorism suspects picked up at home and abroad. Hamdi was captured on an Afghan battlefield wk after the Sep 11 attacks. The govt has presented no public evidence that Hamdi was a terrorist, and his lawyer told the justices that if the govt had its way Hamdi would never get the chance to defend himself. "We have never authorised detention of a citizen in this country without giving him an opportunity to be heard, to say, 'Hey, I am an innocent person,'" Dunham argued. Speaking to reporters later, Dunham said he was not optimistic. The Bush Admin won its argument in a lower court in the Hamdi case, but lost a fed appeals court fight in the Padilla matter. Representing the govt in both cases Wed, Clement referred often to the congressional statute passed a wk after the 2001 attacks that gave the president authority to use "necessary and appropriate" means to fight terrorism. Justice Ruth Bader Ginsburg worried that a broad reading of the language could give a president unlimited power. "What is it that would be a check against torture?" she asked. Clement said that a US president wouldn't do that. But "what's constraining? That's the point," Ginsburg replied. "Is it just up to the good will of the executive? Is there any judicial check?" Clement responded a president should have the authority to use his military powers to fight terrorism, without "judicial micro-managing." Clement also argued that a fed court in NY improperly ruled in Padilla's favour because Padilla was being held in S Carolina. Padilla's lawyer was appointed in NY. New charges laid against 9/11 suspect Madrid (BBC). A Spanish judge has filed new charges against a Moroccan man wanted in connection with the Sep 11 attacks in the US in 2001. The man was initially accused of belonging to the Al Qaeda terrorist network but is also alleged to have played a role in planning the attacks and acting as a courier. This is the 1st time a judge has directly linked a suspect connected with the Mar 11 train bombings in Spain to the Sep 11 attacks on the US. Judge Baltasar Garzon has charged Moroccan man Amer Azizi with multiple counts of murder and for planning the attacks on mainland America. In this new indictment, Judge Garzon says he is charging Azizi with as many deaths and injuries as were committed on the Sep the 11 attacks. Azizi is also accused of providing lodgings in Spain for the planners of the Sep the 11 attacks, among them, suicide pilot Mohammed Atta, and acting as a courier between the plotters. Indonesian attack claims rejected Jakarta (AP). Indonesia's military denied allegations that soldiers had taken part in an attack on a church in the eastern city of Ambon, which has been wracked by 5 days of Muslim-Christian violence. Several witnesses told The Associated Press that uniformed infantrymen fired into the air before ordering 7 families living close to the city's Protestant church to leave their houses on Wed. Minutes later, unidentified men torched their homes and the church. The local newspaper, Ambon Ekspress, repeated the accusations on its front page. The claims -- the latest in a string involving Indonesia's poorly trained military -- have angered Christians in this city, where sectarian fighting since Sun has killed at least 34 people. The bloodshed raised fears of a return to the scale of violence that the eastern region saw 3 y ago when 9,000 people were killed and 100s of 1000s displaced. Sporadic gunfire rang out across the seaside city, the capital of the Maluku islands, but there were no reports of large-scale clashes. The allegations surrounding Wed's attack echo those made in relation to the 2001 conflict, where elements in the army backed Muslim radicals in their attacks on the Christian community. Ambon military cmdr Col Tony Husodo told the AP the new allegations were baseless. "Soldiers were in no way involved in that attack," he said. Asked why the villagers would lie, he said it was because their "education levels" were poor. Hours after the church was burned, about 100 Christians demonstrated outside police HQ, demanding that Indonesian troops be withdrawn from the province. A police officer joined in the protest, at one point shouting "expel the army". Indonesia's police and military have a history of bad relations, both in Ambon and elsewhere in the sprawling archipelago. Disagreements -- often sparked by control over illegal businesses -- regularly develop into gunfights. The security forces have long been accused of human rights violations. Resumption of military ties between Washington and Jakarta are on hold while alleged army involvement in the murder of two American teachers last y in the country's independence-minded province of Papua are investigated. Fighting this wk in the religiously divided city has largely been confined to a district that straddles the Christian and Muslim sectors. Police and soldiers have not prevented fighters armed with homemade guns and machetes from both sides from drawing up battle lines through the district. Witnesses said that security forces appear to be joining in the battles, rather than trying to prevent them. Death toll rises as Iraq violence continues Najaff (AFP). One woman has been killed and 6 other civilians wounded in an exchange of gunfire between US soldiers and Shiite militiamen nr the central Iraqi city of Najaff, a hospital official said. "A woman was killed and 4 other people wounded when American soldiers returned fire after shots from militiamen of the Mehdi Army of Moqtada al-Sadr," said a member of staff at Hakim Hospital in Najaff. "A rocket-propelled-grenade fired by the militia hit a house, wounding two people, including a child," added Abbas Fadel Waddae, without specifying exactly where the clash took place. The situation is tense in Najaff where supporters of the radical Shiite cleric have threatened to react violently if US soldiers enter the holy city some 160 km S of Baghdad. Cmdrs of the US occupation forces have sworn to capture or kill the young cleric whom they accuse of involvement in the murder of a political rival and of refusing to disarm his militia, which they blame for bloody clashes early in Apr in the Shiite S and in Baghdad. Meanwhile, a US soldier has died from wounds suffered in an ambush on a vehicle W of the N Iraqi city of Mosul, the US-led coalition said in a statement. 4 soldiers were wounded when a hand grenade was thrown at their vehicle on Tue, according to a statement and a military rep. 3 of the soldiers were taken to hospital where one died. The 4th suffered only minor wounds and returned to duty. Washington Unleashes Bloodbath in Iraq Fallujah (Tehran Times). With 1000s of troops massed outside the besieged cities of Fallujah in central Iraq and Najaff in the south, the Bush Admin has unleashed a bloodbath against the Iraqi people. In Fallujah, US forces on Tue escalated their attack, with AC-130 gunships firing cannon rounds into crowded residential areas. The city was also pounded by fire from helicopter gunships, jet fighters, tanks and machine guns. In one instance, tank fire was used to topple the minaret of a local mosque. Marines reportedly closed the last entrance to Fallujah, barring any more of the residents who had fled earlier fighting from returning to their homes. The action was seen by observers as the prelude to the renewal of a full-scale assault on the city of 300,000, which has been a centre of resistance to the US occupation. One Marine cmdr referred to the city -- comparable in size to Birmingham, Alabama or Newark, NJ -- as a "huge rats' nest." In Najaff, Pentagon officials claimed Tue that US occupation forces killed scores of members of the Mahdi Army, a militia loyal to Shiite leader Moqtada al-Sadr. Missile-firing helicopter gunships were called in to mow down some 60 militiamen, according to US officials. Local hospital staff, however, reported that the casualties included unarmed civilians. It was also reported that US troops had seized a major hospital and were denying access or supplies to those seeking to treat wounded Iraqis. In the aftermath of the clash, throngs of Najaff residents carried the coffins of 7 of the slain fighters through the streets, vowing to resist any attempt by US forces to take control of the city. "We're going to drive this guy into the dirt," a commanding officer of the US 1AD said of Sadr. What is being prepared is a wave of mass killing aimed at terrorising the Iraqi people into accepting the continued occupation of their country by the US military. Lacking anywhere nr the forces necessary to police a country of 25 mn people, Washington is determined to make an example out of Fallujah and Sadr's movement, much in the same fashion that the Nazi occupiers of World War II Europe levelled the Czech town of Lidice and razed the Warsaw ghetto. Given the sadism and backwardness of the occupant of the White House, who is said to be making the ultimate decisions on the 2 sieges, the looming assaults are no doubt also driven by a thirst for revenge. Since the beginning of Apr, 122 US troops have lost their lives in combat. During the same period, ten times as many Iraqis have been killed, many of them women and children. Laying siege to cities, attacking hospitals and mosques, denying medical care, food and other essential services to entire civilian populations and imprisoning close to 20,000 Iraqis without charges or hearings are all war crimes, and they are being carried out in the name of the American people. The original pretexts advanced for invading and occupying Iraq -- from WMD to supposed ties between Baghdad and Al Qaeda -- have long since been proven lies. Now, the claim that Washington is seeking to bring "freedom" and "democracy" in Iraq is being exposed as a fraud as the full horror of Washington's dirty colonialist war becomes increasingly evident. While mn of Americans oppose this war and watch with revulsion as the killing escalates, the onslaught against the Iraqi people enjoys the full support of the US establishment and both of its political parties. That the bloodletting in Iraq is the consensus policy of the entire ruling elite was made clear by editorials appearing in 2 influential dailies this wk. In an editorial entitled "The Fallujah Stakes," the Wall Street Journal on Mon gave vent to the thirst for blood that predominates among the right-wing Republican layers that are politically closest to the Bush Admin. These elements are increasingly agitated over what they see as a retreat from the Admin's unilateralist policy in Iraq. This has intensified since Bush's announcement that he will allow UN envoy Lakhdar Brahimi to effectively select the personnel for the so-called interim govt that is to be installed on Jul 1. The Journal, which in response to the 1st Persian Gulf war coined the infamous slogan, "Force works," wants to see blood soon and in great quantities. The newspaper warned Mon that the Bush Admin must not "shrink from the military campaign that is inevitable." It continued: "Sooner or later the Baath remnants, jihadists and criminals who have used Fallujah as a sanctuary have to be killed. They can't be bargained with, they can't be reasoned with, because for them a peaceful transition to Iraqi control after Jun 30 means defeat... [S]ooner or later the insurgents have to be defeated, and at the point of a gun, not by diplomacy. If we're not prepared to do that, Mr Bush might as well order the troops home now." The day before, the NY Times published an editorial entitled "A Stronger Force in Iraq" that corresponded in large measure to the positions taken by Democratic presidential candidate John Kerry. It called upon the Bush Admin to confront "unpleasant realities," including the prospect that an additional 50,000 troops or more will have to be sent to occupy Iraq, and that the occupation will continue well past 2006. It complained that the Bush White House was denying "our forces and the Iraqi people the protection that adequate troop strength would provide." The editorial concluded: "We may, in the end, find that the task Mr Bush has laid out for the brave men and women in the military and the brave Iraqi citizens who are struggling to create a better future is simply impossible to achieve. But we have not reached that point. This is not the moment for retreat and it certainly is not the moment for half measures." The meaning of this last sentence -- written in the context of the sieges mounted by the US military against Fallujah and Najaff -- is unmistakable. No "half measures" means unleashing the full force of the US military against a popular uprising that cannot be crushed without massive civilian casualties. Both the Bush Admin's most fervent right-wing backers and its supposed political opponents in what passes for the liberal establishment have come together to employ the same lies to justify the slaughter in Iraq. They both claim that the US occupation forces are in Iraq as armed missionaries of "freedom" and "democracy." For the Wall Street Journal, the transition to "Iraqi control" is possible only through the slaying of those Iraqis who are resisting foreign occupation. For the Times, "security" for the Iraqis is to be achieved through a massive escalation of a US occupation that has already claimed the lives of well over 10,000 civilians. This killing of Iraqis and the pointless sacrifice of 100s of young American soldiers' lives is being carried out not for any of the preposterous reasons -- freedom, democracy, security -- put forward by the war's defenders. Rather, US imperialism has decided to conquer and occupy an entire country and suppress its people in order to seize control of its vast oil resources and assert its hegemony over one of the world's most strategically vital regions. In the run-up to what US officials and the American media describe as "handing over sovereignty" to the Iraqi people scheduled for Jun 30, the cynicism of the US colonial project is undeniable. In an interview with Reuters news agency Mon, US Secretary of State Colin Powell made clear that the so-called "sovereignty" of a new group of hand-picked Iraqi officials will not extend beyond their desks. "It's sovereignty, but [some] of that sovereignty they are going to allow us to exercise on their behalf and with their permission," said Powell. "It is not as if we are seizing anything away from them." There will be nothing to seize. The US military will continue to occupy the country, exercising powers amounting to martial law. And Washington will resist any attempts by the new body to pass laws or amend those decreed by the occupation authority. All political and economic decisions will be made by the incoming US ambassador, John Negroponte, who will be backed by an embassy staff approaching 4,000 -- the largest anywhere in the world -- and will exercise the authority of a colonial viceroy. That the US occupation is an expedition devoted to looting rather than liberation was spelled out last m in a revealing interview by the American official 1st placed in charge in Iraq. Retired Gen Jay Garner told BBC reporter Greg Palast that the US Admin had drawn up detailed plans for the privatisation of the Iraqi economy and its oil wealth as early as 2001. Garner was removed from his post, he said, because his call for early elections cut across US plans to implement by decree this economic program of plunder and seizure. Nothing could more clearly testify to the fact that the invasion and occupation of Iraq have nothing to do with "democracy," and everything to do with transferring the country's wealth into the hands of the US oil monopolies, banks and corporations. Part of the plan, Garner added, was to establish Iraq as a US military base for operations throughout the Middle East. He said Iraq would serve much the same function as the Philippines did in projecting US naval power in the Pacific after the crushing of nat'list guerrillas in that country at the end of the 1898 Spanish-American War. "I think it is a bad analogy, but we should look right now at Iraq as our coaling station in the Middle East, where we have some presence there and it gives us a ... strategic advantage there," said Garner. These words, from the horse's mouth, provide indisputable confirmation that this war marks the resurgence of brutal and unabashed colonialism. The cynicism and hypocrisy of the US ruling elite and its political servants have no limit. One need only recall that Ronald Reagan in the 1980s hailed the CIA-funded Afghan mujaheddin who fought against Soviet military occupation as "freedom fighters" and the modern equivalent of America's founding fathers. Yet those who fight today against the American military occupation of Iraq are branded criminals. Tens of 1000s of Iraqis are resisting -- with undeniable popular support -- the overwhelming military superiority of the occupation forces. While they are routinely described by US officials and the media as "terrorists," "thugs," and "extremists," they have every right to fight for an end to the illegal occupation and colonial conquest of their country. The demand must be raised with redoubled strength in the US itself for the immediate and unconditional withdrawal of all US troops from Iraq and the payment of war reparations to the Iraqi people. Those responsible for dragging the American people into this war based on lies are guilty of war crimes and should be subjected to criminal prosecution. The "liberal" argument that the US occupation must continue because without American troops Iraq would descend into civil war is as old as colonialism itself, and merits only contempt. The worst alternative in Iraq would be the "success" of this imperialist project. It would entail the permanent occupation of Iraq and endless bloodletting, while paving the way for new and even more catastrophic wars. The Democratic and Republican parties are united in their determination to exclude from the elections any debate over the continuation of the US occupation. For both Kerry and Bush, the anti-war sentiments of tens of mn of Americans are illegitimate and must be suppressed. The struggle against war cannot be waged on the basis of the facile politics of "anybody but Bush." It requires the building of a new and independent mass political movement of American working people fighting to unite their struggles with those of working people internat'ly. Spain and Germany Discuss Cooperation on Iraq, EU Berlin (DW-Radio). Spain and Germany Discuss Cooperation on Iraq, EU Zapatero and Schroeder both opposed the US-led war in Iraq. Spanish PM Jose Luis Rodriguez Zapatero and German Chancellor Gerhard Schroeder said on Wed they supported a new UN resolution for Iraq. But they played down reports about a new European initiative. Amid high expectations Zapatero had come to Berlin seeking support for a new initiative to scale back the US role in Iraq within the framework of the UN, the 2 leaders made clear they had only begun to discuss the matter. "We are having consultations with the German govt, the French govt and the American govt about the perspectives for new suggestions in the UN Security Council," Zapatero said at a joint press conference with Schroeder. "The Spanish govt feels obligated to continue to work in Iraq. We don't have a one-sided initiative." The trip is Zapatero's 1st trip to Germany since being elected PM and comes after his decision to withdraw all of Spain's 1,300 troops in Iraq. Unlike the unflagging support of his conservative predecessor Jose Aznar, Zapatero -- like Schroeder -- has been opposed to the US-led war in Iraq. Both leaders said they discussed working together in the European Union and specifically on the European constitution, the passage of which had stalled on the opp'n of the previous Spanish govt. But the press conference was dominated by questions about the Iraq. * Berlin then Paris After meeting Schroeder in Berlin, the Spanish leader headed to Paris to talk with French Pres Jacques Chirac on Thu. Germany and France were the most outspoken opponents of last y's invasion to oust Iraqi dictator Saddam Hussein and led the campaign against the war at the UN. Spain is also currently a member of the Sec Council. "At some point there will be a new resolution," said Schroeder. "Naturally we will work closely with the Spanish and French govts. But that doesn't mean we won't continue to discuss things with other members of the Sec Council." Zapatero had initially said that the UN should play the defining role as a condition of its keeping Spanish troops in Iraq beyond Jun 30. But shortly after taking office earlier this m, he ordered their withdrawal saying that a UN resolution seemed unlikely. German FM Joschka Fischer spoke with his Spanish counterpart Miguel Angel Moratinos earlier on Wed, who said the plan was still at "a very early stage." He said the initiative was open to other nations, especially the US. Fischer said the plan outlined by UN envoy Lakhdar Brahimi to the Sec Council on Tue should be the basis for any discussion of a new resolution. The plan provides for a caretaker govt to oversee Iraq from the time it takes power on Jun 30 until nat'l elections in the end of Jan 2005. "The question of a real transfer of sovereignty in this process and keeping to the timetable should be the basis of this process," Fischer said, according to the Associated Press. Spain discusses Iraq resolution in Berlin Berlin (AFP). Spain, Germany, France and the United States are in "intense negotiations" on a new UN resolution on Iraq, Spanish PM Jose Luis Rodriguez Zapatero has said. The new Spanish leader was speaking at a press conference in Berlin following talks with German Chancellor Gerhard Schroeder. "We are in intense negotiations with Germany, France and the United States" on a new UN resolution on Iraq, he said. Mr Schroeder said Germany, Spain and France have shown "great cooperation" during the talks. Spanish For Min Miguel Angel Moratinos said in Berlin earlier on Wed that the negotiations were "in early stages". Mr Zapatero is to travel to Paris on Thu for talks with French Pres Jacques Chirac that will include discussion on Iraq. Spain had been at loggerheads over Iraq with the 2 European Union heavyweights during the Admin of Mr Zapatero's conservative predecessor Jose Maria Aznar. Since coming to power in an election last m, Mr Zapatero has ordered Spanish troops to be pulled out of the country. Bremer considering coup in Iraq Op/Ed (Tehran Times). The rumours of the possible return to power of former members of Iraq's disbanded Baath Party and US administrator Paul Bremer's private meetings with a number of them are ominous developments which have given rise to speculation that Bremer is plotting a coup against the majority of the Iraqi people. Over the past few days, Bremer has visited more than 1500 former members of the Baath Party, including former Defense Min Gen Hashim Ahmad, Gen Maher Abdel Rashid, who was the cmdr of the E Tigris Regiment during the Iran-Iraq war, and some formerly high-ranking officials of the party, namely Mohammad Zamam Abdel Razaq, Aziz Saleh al Noman, Fazil Mahmud Gharib, Abdel Baqi Abdel Karim Assa'dun, Yahya Abdellah al Abudi, Eqleh Abde Seqar al Kobeisi, Rashid Ta'an al Azzawi, Hoda Saleh Ammash, Ghazi Hamud al Obeidi, and Sa'd Abdel Majid al Faisal. There are unconfirmed reports that Bremer asked the officials of the former regime to return to their former posts and to help the US forces establish peace and security in Iraq. Bremer's strenuous efforts to establish security in Iraq are obviously meant to give a boost to Bush's reelection campaign. However, it seems that he is trying to achieve that goal by staging a traditional Iraqi-style coup d'etat. It is unfortunate that Bremer has learned nothing about Iraqi culture during his stay in the country but is taking pointers from former Iraqi dictators, even though he surely must know that most Iraqi citizens regard this to be abhorrent. The preliminary details for the coup against the Iraqi people have been taken care of. It appears that the US, some regional countries, and the UN representative in Iraq are the main players in the coup plot. It is believed that the plan calls for the dismissal of prominent members of the interim Iraqi Governing Council and preventing Shias from becoming high-ranking officers in the future Iraqi armed forces. The UN Sec-Gen's representative in Iraq, who has extreme nat'list inclinations, is trying to legitimise the occupation and seeks to establish an ethnically based neo-Baathist govt which would exclude Shias. Analysts say the plan being prepared by US officials through consultations with military and political experts from a number of Arab states in the region will only be implemented as a last resort to prevent a complete failure of the occupation. This is the real reason why Bremer has been delaying handing over the approximately 5000 former members of the Baath Party currently detained by coalition forces to the Iraqi Governing Council for prosecution. Moreover, US Pres George W Bush is no longer blabbering about establishing democracy in Iraq and recently delegated decision-making power and responsibility for the establishment of the new govt in Iraq to Bremer, Pentagon military experts, and the UN representative in Iraq. Unfortunately, by failing to properly assess the internal situation in Iraq, Bremer is playing with fire, a fire that not only threatens to destroy Iraq but which could also spread to other countries in the region. The possibility of the return to power of the wicked criminals of the Baath Party has incensed the religious leaders of Iraq. If the plot is implemented, the Iraqi people will definitely not remain silent. And if nothing is done to remedy the situation, all this will certainly lead to a civil war in Iraq. Iraqis grumble at prospect of sovereignty without authority Baghdad (AP). A govt that can't pass laws, a nation that doesn't control its own armed forces. Many of Iraq's US-picked leaders wonder just how sovereign a state Washington will give them on Jun 30. The US says that Iraq will indeed receive its sovereignty on that date, in the sense that the official US-led occupation will end. But no one disputes that the new govt's authority will be limited. "Let's separate sovereignty and let's separate out authority and let's keep this in context that this is an interim representative body that we are talking about," White House rep Scott McClellan said Tue of the incoming govt. Iraqi leaders may have been willing to accept a sovereignty in name only several wk ago. Earlier this y, many Shiites were saying the Jun 30 Admin should only have limited powers until an elected govt is created. But violence that has bloodied and battered Iraq for the past 3 weeks, particularly in and around the cities of Fallujah and Najaff, has opened a divide. The US appears ready to cede less power -- while Iraqi leaders have become more insistent on seeing more authority in their hands. Mohsen Abdel-Hamid, a Sunni Arab on the US-appointed Governing Council, said the prospect of the US retaining some sovereignty is "not acceptable, this is totally rejected." If the Americans do not respect agreements on giving complete sovereignty, "then the Iraqi people know what route to take," he said. Asked if the Governing Council might call for resistance, Abdel-Hamid told The Associated Press: "I hope that we will not be forced to do that, and I hope that the Iraqi people won't be forced to do that too. We hope to gain our sovereignty by peaceful means." What does sovereignty mean for a nation? There are the tangible elements: control over its armed forces and the work of govt; the power to legislate and to manage the economy; the power to decide who enters its territory. Then there are symbolic elements such as embassies and recognition in world bodies. Iraq after Jun 30 looks like it will have much more of the latter than the former. US officials suggest that sovereignty will be full, but that Iraqis should accept limits on power that simply reflect the reality in Iraq. With the insurgency still running strong, well over 100,000 US troops will remain on Iraqi soil, and the US ambassador-to-be, John Negroponte, said Tue that the military will have authority over Iraqi security forces. The US Embassy will manage $bns of reconstruction money in consultation with the Iraqis, a huge influence on the economy. Iraqi ministries will keep the work of govt running. But Negroponte also said the new Admin may not be able to pass laws. UN envoy Lakhdar Brahimi -- whom the US has looked to for help forming the post-Jun 30 Admin -- told the UN Security Council on Tue that a caretaker govt made up of "honest, qualified" people should be selected by the end of May. Brahimi spoke only of a complete transfer of sovereignty, not a limited transfer. And he said the relationship with the US military should be spelled out in "crystal clear understandings" before the hand-over takes place. US occupation officials spoke in the past of drawing up a "Status of Forces" agreement that would define relations between the US military and the Iraqi security forces. It's not clear if that is now off the table, but there is little talk of it. Negroponte instead said "lines of communication" and diplomacy would resolve disputes when the US military wants to go one way and Iraqi leaders want to go the other. The bloodshed since the beginning of Apr has taught both sides sharply differing lessons. For the Americans, it demonstrated that US-trained Iraqi security forces are in no shape to face Sunni insurgents. About half the Iraqi police and Civil Defense Forces either deserted or joined the insurgents. An Iraqi Army battalion refused to fight in Fallujah. But for some Iraqi leaders, the violence showed the danger of the US military having too free a hand. The current council president, Kurdish leader and close US ally Massoud Barzani, suggested he wouldn't have launched the crackdowns in Fallujah and Najaff in the 1st place. No one on the council is suggesting US forces leave. But they want their voice to be guaranteed. "Iraqis should have a bigger role in security ... in taking financial decisions ... in running the Iraqi reconstruction fund," Ahmad Chalabi, a council member and close Pentagon ally, told the Arab TV station Al-Arabiya. But the result may disappoint Iraqis who concluded from past US promises that they would have sovereignty in the full sense of the word. "I think the sovereignty will be weak and not complete," said council member Mahmoud Othman. "The less sovereignty there is, the less the possibility that the govt will be able to work and achieve its tasks." Marines fight Iraq rebels at Fallujah train station Fallujah (Bloomberg). US Marines are fighting insurgents in Fallujah nr its train station with the support of combat helicopters. Pool TV pictures showed a plume of black smoke rising from buildings in the NW part of the Iraqi city, which has come to symbolise entrenched resistance. "This battle continues," US Army Brig Gen Mark Kimmitt said at a briefing televised from Baghdad today. There have been "numerous violations" in the past day of a cease-fire agreement with rebels, Kimmitt said. "When we get shot at, we will respond." The fighting followed a battle last night in the predominantly Sunni Muslim city, in which air strikes and artillery were used to try to quell insurgents who oppose the occupation by a US-led coalition. Fallujah residents benefited from Saddam Hussein's Sunni-dominated regime, and the area also has attracted foreign militants eager to fight US forces. Kimmitt said political negotiations might yet resolve the conflict in the encircled city. "The Marines still believe that the talks have promise," the general said. The US sent Marines into Fallujah after 4 civilian contractors were killed and mutilated there Mar 31, in a challenge to coalition control of the country. The US is also fighting against supporters of Shiite cleric Moqtada al-Sadr in S Iraq, where Kimmitt said today there were indications that another Shiite group is trying to drive al-Sadr's militia out of Najaff, a city holy to Shiites. Kimmitt said some Najaff residents were angered by intimidation from al-Sadr's gun-toting loyalists. * Republican Guard The US says foreign terrorists, possibly including alleged al-Qaeda associate Abu Musab al-Zarqawi, are fighting and hiding in and around Fallujah, a city of about 250,000 people that is 56 km W of Baghdad. Other fighters include members of the elite Special Republican Guard forces that operated under Hussein. Coalition forces in the air over Fallujah saw insurgents in a flatbed truck and a sedan driving from intersection to intersection in the city with their lights off, dropping off and picking up people, Kimmitt said. That tactic had been used before previous attacks, and coalition aircraft destroyed the vehicles and the ammunition they were carrying, Kimmitt said. The insurgents then took shelter in a building that coalition aircraft fired on, producing secondary explosions that indicated "large amounts of ordnance inside," Kimmitt said. At least 280 people have been killed in Fallujah since Apr 5, Agence France-Presse reported, citing the Iraqi health ministry. The agency earlier this m cited an unidentified Fallujah hospital director as saying more than 600 people had died in the city, most of them civilians. "It was a fairly one-sided fight last night. And I think everybody saw the video," Kimmitt said today in an interview with the "CBS Early Show." "The Marines did quite well." According to US Dept of Defense figures, 126 US soldiers and Marines have died in combat this m in Iraq, more than the 109 killed during the invasion phase that ended when US Pres George W Bush declared an end to major combat operations on May 1. * Shiites Fight Al-Sadr In the holy city of Najaff, S of Baghdad, there are indications, based on "anecdotal evidence," that other members of Iraq's Shiite Muslim majority have been fighting al-Sadr's militia, which may be holed up in mosques and shrines, in an effort to drive them out, Kimmitt said. Iraq's top Shiite cleric, Ayatollah Ali Sistani, 73, earlier this m called for calm and the restoration of order, Agence France-Presse reported, citing aide Sheikh Abdel Mahdi al-Karbalai. Members of Iraq's interim Governing Council have tried to negotiate a settlement with al-Sadr, who wants US forces to leave the country. The US military says al-Sadr, 31, is subject to an arrest warrant in connection with the killing of a cleric. Iraq's Shiites make up 60% of the country's 25 mn people. US forces renew strikes in Fallujah Fallujah (Reuters). US Marines have launched a fresh air and ground assault in the besieged Iraqi city of Fallujah. Thick black smoke rose above the palm-dotted Golan district, the target of an overnight aerial bombardment. Marines told one reporter they had stormed an area around a railway station. One witness said aircraft also struck at least 2 other districts. US cmdrs had earlier said they were holding off from an all-out assault on the city of 300,000 in the hope of cutting a deal with the Sunni Muslim insurgents they have had encircled in Fallujah for more than 3 wk. Cobra attack helicopters strafed Golan after shelling and fierce exchanges of gunfire broke out in mid-afternoon. A US TV reporter with the Marines said the air strikes were in support of troops on the ground after snipers fired on them. Amid warnings from the UN's Iraq envoy of bloody consequences should talks fail in Fallujah, an AC-130 gunship, 1st used in Vietnam, had blasted Golan overnight. The main US military rep in Baghdad, Brig Gen Mark Kimmitt, told US ABC TV shortly before the new outbreak of fighting that he still hoped for a deal. "We are going to continue to push the political track as far as it is going to take us and if it does not take us far enough, we are prepared to use military means," he said. "If they have to take this to a fight, that's going to be a one-way fight." * Twin threats A y after the fall of Saddam Hussein, who spent his 67th birthday in the custody of US forces on Wed, American troops are trying to quell twin threats to the new order in Iraq from Sunni Muslim guerrillas in Fallujah and Shiite fighters in the S before "sovereignty" passes [;-)] to Iraqis on Jun 30. Cmdrs nr Najaff said an AC-130 attack late on Mon that they believed had killed some 60 Shiite fighters, appeared to have demoralised the guerrillas and was part of a strategy to persuade their wanted religious leader to give himself up. Local forces, however, vowed to resist any American incursions. In Fallujah a y ago -- previously a public holiday in honour of Saddam's birthday -- US soldiers killed and wounded dozens of demonstrators in an early public relations setback. The town, 50 km W of Baghdad, is now a byword for resistance by Iraq's long dominant Sunni Muslim minority. Some people in Fallujah, where civic leaders struck a truce with the Marines 2 wk ago, are furious. "This attack shows the frustration in the ranks of American soldiers in Iraq and the American political defeat," Ali Abdullah said. "We have uncovered the treachery and barbarity of the US army." Local doctors say 600 people have been killed and many more have fled the city since US retaliation began after the killing and mutilation of 4 American security guards. "Unless this stand-off is brought to a resolution through peaceful means, there is great risk of a very bloody confrontation," envoy Lakhdar Brahimi told the UN. A fierce firefight also took place overnight in Khaldiya, W of Fallujah, and US patrols appeared to have been stepped up in other towns in the "Sunni triangle" N and W of Baghdad, Saddam's home region and a bastion of his support. Some 115 US soldiers have been killed this m, compared with fewer than 100 in the 3 wk it took to oust Saddam. At least 520 have died in combat since last y's invasion. A Ukrainian soldier was killed on Wed, in a reminder of the dangers that have prompted some US allies to pull out. * Najaff Dangers US forces could face an even more delicate dilemma in Najaff, where a radical cleric from Iraq's Shiite majority, Moqtada al-Sadr, has taken refuge among the shrines with his Mehdi Army militia, several thousand strong. An aide to Sadr was quick to echo local accusations that many civilians died in Mon night's US attack nr Kufa, outside the city, the heaviest in a 3-wk stand-off. Qais al-Khazali said a move into Najaff itself would "transform the situation into a Shiite Islamic confrontation with the Americans". Sadr has vowed suicide attacks if they do. Cleric Hussam al-Husseini warned against what he saw as a US attempt to cut off Kufa, base for many fighters, from Najaff. "All the land of Najaff region is holy and we have the right to defend our holy sites," Mr Husseini told Reuters. US cmdrs say they will only attack mosques if they are used in combat -- in Fallujah, troops destroyed a minaret on Mon after saying snipers were using it to fire on them. "Our goal is to continue to pressure Sadr to understand that we are not going away," said Col Brad May, cmdr of the 2AC Regiment outside Najaff. "It is in his best interest to go ahead and lay down arms." Fallujah strikes continue despite ongoing talks US cmdrs say they are still committed to ongoing peace talks. Fallujah (AFP). United States aircraft have pounded suspected insurgent positions in the Sunni Muslim bastion of Fallujah for a 2nd day but US cmdrs said they were still committed to ongoing peace talks. US helicopters and planes rained missile and machine-gun fire onto several buildings after heavy battles broke out in the N of the besieged city, according to an AFP correspondent and a US military rep. Plumes of black smoke could be seen rising from the buildings in the afternoon as the helicopters made repeated raids and as US marine snipers fired at unknown targets in the apparently deserted streets. US Brig Gen Mark Kimmitt, speaking to reporters in Baghdad, insisted the Marines were "rigidly adhering" to a fragile ceasefire and remained committed to resolving the standoff peacefully. "If this can be solved by not putting our soldiers' or Marines' lives at risk so much the better," he said, referring to talks between US-led coalition representatives and local community leaders. "There is still a determined aspiration on the part of the coalition to maintain the ceasefire and resolve this situation by peaceful means." He warned that Marines, who he said killed 2 insurgents in battles overnight, were prepared to resume offensive operations, unilaterally suspended earlier this m. "There is certainly no military problem that cannot be solved in Fallujah," he said. Fallujah has been the scene of the fiercest fighting of the US-led occupation of Iraq, with scores of US soldiers and 100s of Iraqis killed there this m despite the so-called truce. Marines have besieged Fallujah since Apr 5 following the murders of 4 US civilian contractors, which triggered a bloody offensive. The Iraqi health ministry said 280 people, including 24 women and 30 children, had been killed in Fallujah since Apr 5 but the figures did not seem to include those who had not made it to hospital. The injured were numbered at 820, the ministry said. The UN refugee agency said some 50,000 residents were estimated to have fled Fallujah, 50 km W of Baghdad, to temporary camps, mosques or homes of families elsewhere in the country. Capt Christopher Logan, a Marine rep, said insurgents had engaged "multiple" coalition units on Wed and air strikes were called in to support the troops on the ground. "There were multiple close air support missions requested and conducted," he said as fighter jets screamed overhead. The Fallujah railway station was among the targets, said Col John Coleman, chief of staff of the 1st Marine Expeditionary Force. Insurgent positions were also pounded in a US air strike on Tue night after Iraqi fighters opened fire on US troops with small arms and RPGs, US officers said. "Marines took RPG and direct fire and called air support to engage a vehicle transporting weapons and personnel," said marine Maj T V Johnson. He said a heavily armed AC-130 Spectre plane "hit the target ... the anti-Iraqi forces fled to a nearby building. The aircraft shot at the building." Marine officers said that in both cases, in addition to the blasts from the air strikes, there were also "massive secondary explosions" which suggested ammunition stockpiles were also struck. "We hit a sweet spot," said Col Coleman. On Wed night, a US network pool reporter said live on CNN that an AC-130 had attacked a position on the NE edge of Fallujah, causing what appeared to be a secondary explosion that shot flames and smoke into the sky. He said it looked as if the strike might have hit an ammunition dump but that there was no official confirmation. He said that around nightfall a fighter jet had hit the same position. Spectre gunships have previously bombarded guerrilla positions in Fallujah but the footage shown live on US TV overnight renewed debate about the proportionality of the US forces' military tactics in the town. Brit Prime Min Tony Blair defended the air strikes on Wed, saying US forces retained the right to fight back if attacked. "I deeply regret any civilian deaths in Fallujah but it is necessary that order is restored and the Americans are trying to do that," he told Parliament during weekly question time. "If it is the case that American soldiers have been fired on, American soldiers are going to have to fire back and take action to ensure that those insurgents, these former regime elements and terrorists, can't disrupt the political process," he told the House of Commons. Both sides accuse the other of breaking the ceasefire and US forces insist they only fire in self-defence. Coalition officials said they planned to stage joint US-Iraqi patrols in the city on Tue but US overseer Paul Bremer said on Iraqi TV they had been delayed until Thu due to training problems. Marine officers on the ground said the decision was based on sensitivity for the birthday of ousted dictator Saddam Hussein, which falls on Wed. Syria's Assad sees "legitimate resistance" in Iraq Dubai (Reuters). Syrian Pres Bashar al-Assad, under pressure from Washington to help stop attacks against US forces in Iraq, has said in an interview that the Iraqi insurgency is legitimate resistance. US forces in Iraq are trying to quell twin threats from Sunni Muslim guerrillas in Fallujah and Shi'ite fighters in the south before they hand over sovereignty to Iraqis on Jun 30. "Certainly, what has happened on the popular level gives legitimacy to the resistance and shows that the major part of what is happening is resistance," Assad said in comments aired on Arabic satellite channel Al Jazeera on Wed. "You are talking now about resistance which is against the occupation forces," Assad said. Asked if the resistance was legitimate, he said: "Well, of course, it's understood that way". The US has accused Syria of sheltering "terrorists" and not doing enough to stop foreign fighters infiltrating from its territory into neighbouring Iraq. Syria says it has done its utmost to control the border and has helped the US in its "war against terror". Parts of the interview were shown by the Qatar-based channel which Washington has accused of inflaming an anti-US revolt. Iraq modifies new flag after protests Baghdad (Reuters). Iraq's US-appointed Governing Council has unveiled a modified version of the new nat'l flag after protests that the original was similar to Israel's. A pale blue crescent and 2 lines on the bottom were given a darker shade of blue and some dimensions were changed, but it was not clear if the new version would satisfy protesters. A yellow strip divides the blue lines. Many Iraqis, from Kurdish and Arab areas in the north to Sunni Muslim towns in the centre and Shi'ite south, had decried the flag as resembling Israel's, which has 2 pale blue lines on top and bottom and a pale blue Star of David in the middle on a white background. A Council rep said on Wed the white stood for peace and a new start for Iraq, the crescent represented Islam, the blue strips represented Iraq's main rivers, the Tigris and Euphrates, and the yellow represented its Kurdish population. Annan warns US raids making Iraq stand-off worse UN (AFP). United Nations Sec-Gen Kofi Annan has said US raids on insurgents are worsening the situation in Iraq and called for negotiations to help calm the situation. "It's definitely time now for those who prefer restraint and dialogue to make their voices heard," he said, a day after his Iraq envoy, Lakhdar Brahimi, warned the security situation was hampering plans for Iraq's political future. "Violent military action by an occupying power against the inhabitants of an occupied country will only make matters worse," he told a press conference at UN HQ in NY. "There is nothing cowardly or faint-hearted about this approach," Mr Annan said. "It takes courage and dogged determination to work for peace in a violent world." US forces on Wed again hammered the flash-point Iraqi city of Fallujah as Pres George W Bush vowed to take "whatever action is necessary" to secure the city, a bastion of Sunni Muslim resistance to the US occupation. Fallujah has been the scene of the fiercest fighting since US-led forces invaded Iraq in Mar last y at the start of the war that brought down Saddam Hussein. Scores of US soldiers have been killed since they laid siege to the city on Apr 5 after 4 US civilian contractors were killed in an ambush. The Iraqi health ministry says 280 Iraqis have died, including 24 women and 30 children, with 820 wounded, but the toll may be far higher. Mr Annan said Mr Brahimi's briefing to the UN Sec Council on Tue was a "very sober assessment" of the "deteriorating" security situation in the country. Mr Brahimi warned of the Fallujah stand-off: "Unless this stand-off is brought to a resolution through peaceful means, there is great risk of a very bloody confrontation." He said the continuing bloodshed had raised the question of "whether a credible political process is even viable under such circumstances" but said the internat'l community had "no alternative" but to make Iraq work. Mr Brahimi has been tasked with helping to craft an interim Iraqi govt to take power on Jun 30 when the US-led occupation will formally come to an end. He said Iraqis should name the members of that govt by the end of May, in order to give them at least a m to reach "crystal clear understandings" on the role of US and other forces in Iraq after Jun 30. Flying saucer fever grips Iran, theories abound Tehran (Reuters). Is Iran about to be invaded by little green men or are the Americans racing through the night sky in spaceships to spy on the Islamic Republic? Flying saucer fever has gripped Iran after dozens of sightings in the last few days. Fanciful cartoons of alien spacecraft have adorned the front pages. State TV on Wed showed a sparkling white disc it said was filmed over Tehran on Tue night. More colourful Unidentified Flying Objects (UFOs) have been spotted beaming out green, red, blue and purple rays over the N cities of Tabriz and Ardebil and in the Caspian Sea province of Golestan, the official IRNA news agency reported. Newspapers and agencies reported people rushing out into the streets in 8 towns on Tue night to watch a bright extraterrestrial light dipping in and out of the clouds. An airforce officer in the Revolutionary Guards was quoted in the reformist Vagha-ye Etefaghiyeh daily saying Iran's Supreme Nat'l Sec Council should investigate whether these visitors from afar had hostile intent. But Sa'dollah Nasiri-Qeydari, head of the Astronomical Society of Iran, told Reuters the stories were unfounded. "In my opinion, flying saucers do not exist," he said, insisting his telescopes would have picked up invaders from outer space. "The people who have seen these things are not experts -- farmers, villagers and pilots," he added. He said what people reported was consistent with the planet Venus, whose intense light in its current position would be given different hues by being filtered through the atmosphere. Thai troops sent S to quell unrest Dozens have been killed in Thailand clashes. Bangkok (Reuters). Hundreds of troops have fanned out across S Thailand to shut down the restive region after a day of carnage in which security forces shot dead more than 100 gun and machete-wielding Muslim militants. Army chiefs ordered 2 extra battalions of soldiers into the country's 3 S most provinces, a predominantly Muslim region already crawling with police and security officials after nearly 4 m of low-level unrest. PM Thaksin Shinawatra said 107 "bandits" and 5 soldiers and police died in the fighting, which started when gangs of black-robed young men, some wearing Islamic slogans, launched dawn attacks on around 15 army and police posts. In one of the worst incidents, troops fired teargas and stormed a mosque nr the provincial town of Pattani, killing over 30 gunmen holed up inside. An angry crowd gathered to watch as soldiers dragged their bodies from the bullet-riddled building. The impoverished region has a history of sometimes violent Islamic separatism, but Thai officials have insisted local gangsters manipulating drug-crazed youths are behind the unrest. However, one of Mr Thaksin's security advisers, said the attacks could have been coordinated by separatists. "The incidents were pulled together by separatist movements and gangs of drug dealers and contraband smugglers," Lt Gen Kitti Ratanachaya told a Bangkok TV channel. The region is a hotbed of crime, feeding off a lucrative cross-border smuggling trade with neighbouring Malaysia, but analysts say that does not explain why so many of Wed's attackers were young, Muslim and appeared ready to die. "Those who died must have believed they were dying for their religion," said Ahmad Somboon Bualang of Pattani's University of Prince Songkhla. "They must have had an ideology beyond separatism, otherwise why would they attack with their bare hands and swords?" Analysts fear internat'l militant networks, such as Osama bin Laden's Al Qaeda, might find the region's disaffected Muslim youth a fertile recruiting ground. Authorities appealed for calm as a debate over whether the Admin's 'get tough' policy adopted after a spate of violence erupted in Jan is the right way to win over a local population with few ties to the mainly Buddhist country. Thai Defence Min Chetta Thanajaro did not point any fingers of blame but said if authorities managed to build bridges with the families of those killed they might dry up a local pool of disquiet. "What we need to do next is reach an understanding with the families of each of those killed, and to win over their cooperation with the govt, so that those behind the unrest stop what they have been doing,' Mr Chetta told reporters. US concerned over Thailand Washington (AFP). The US expressed concern over unprecedented violence in S Thailand where more than 100 Muslim militants were killed in clashes with security forces and a bloody raid on a mosque. Washington said it was discussing the situation with the Thai authorities and was prepared to provide any assistance they might need. "We are concerned about the violence in S Thailand, and we are in close contact with the Thai govt on the situation there through our embassy," US State Dept deputy rep Adam Ereli told reporters. In the worst violence ever seen in Thailand's troubled south, police and soldiers battled armed groups who launched coordinated attacks at 10 police stations and security checkpoints in 3 provinces nr the Malaysian border. Thai Army cmdr Gen Chaisit Shinawatra said 107 attackers were killed, 6 were injured and 17 were arrested. 2 soldiers and 3 police were killed and another 15 security forces injured. The attacks were the latest in a series of bombings, raids and murders in Thailand's S provinces, which in the past 4 m have claimed the lives of 65 security forces personnel, govt officials and Buddhist monks. Asked whether the Thai military sparked the violence, Ereli said those who attacked the Thai police stations were responsible for it. "We, at this point, don't have info that any individual or group has claimed responsibility for attacks against Thai police stations which started this round of violence," he said. "There's an investigation that's going on. And at this point, we're not going to speculate about who might have been behind the attacks against the 15 Thai police stations on S Thailand. "There hasn't been anybody who's claimed responsibility so far." Thai officials said the attackers were mostly teenagers, poorly armed with only machetes and a few guns. The last battle zone was at a mosque outside the southern Pattani provincial town, where 32 rebels who had holed up there were killed when troops stormed the mosque to end a 6-hr standoff. "We are concerned about threats to public order and stability in S Thailand represented by these attacks," Ereli said. He said the US wanted to work with the Thai govt to bring the situation under control "in a way that is responsive to the needs of the citizens of that part of the country". Thailand is a predominantly Buddhist nation but about 5% of the population is Muslim, and most live in the 5 S provinces bordering Malaysia. US issues travel warning to Israel Washington (AFP). The United States has warned its citizens to avoid all travel to Israel and the Palestinian territories and renewed appeals for Americans to leave the Gaza Strip immediately, citing terrorist threats stemming from Israel's killing of 2 militant Palestinian leaders. The State Dept updated an existing Mar 23 travel warning for Israel, the W Bank and Gaza issued the day Israel assassinated Hamas founder Sheikh Ahmed Yassin to include threats to avenge the Apr 17 killing of his successor, Abdel Aziz al-Rantissi. "In the aftermath of the killings of 2 Hamas leaders by Israel in less than a month, statements have been made by some Hamas elements and other terrorist groups threatening revenge against US interests, which could include kidnappings," it said in a statement. "The Dept of State warns US citizens to depart Gaza immediately and to defer travel to Israel, the W Bank and Gaza due to current safety and security concerns," it said. Although the dept said it had no indication that the threats would actually "be carried out at this time", it stressed the security situation throughout Israel and the Palestinian territories remained highly unstable. "Ongoing violence over the last 3 y has caused numerous civilian deaths and injuries, including to some American tourists, students and residents, as well as to US mission personnel," it said. "The potential for further terrorist acts remains high," it said. "The situation in Israel, Jerusalem, Gaza and the W Bank remains extremely volatile with continuing terrorist attacks, confrontations and clashes." The dept repeated longstanding advice for US citizens who choose to stay to avoid public places such as restaurants, cafes, shopping and market areas and malls, pedestrian zones, public buses and bus stops, or other crowded venues. Americans should also avoid large crowds and demos, it added. The State Dept and the US embassy in Tel Aviv 1st urged Americans to leave the Gaza Strip in Oct, after 3 Americans working as part of the embassy's security force were killed in the roadside bombing of a diplomatic convoy there. The warning was issued following a suicide car bombing by a Hamas militant that wounded 4 Israeli soldiers in the Gaza Strip. Aussies advise Nauru in asylum case Nauru (AAP). The 2nd day of a court hearing on the legality of detaining asylum seekers on Nauru was under way, with 2 Aussie solicitors advising a senior Nauruan lawyer. The news comes a day after Nauru justice minister Russell Kun ordered Aussie snr counsel appointed to represent the Nauru and Aussie govts in the case to return home to ensure the hearing was fair. A para-legal pleader, Reuben Kun, a former finance minister and the uncle of Mr Kun, was appointed to represent the detainees after Nauruan authorities barred the Aussie legal team that mounted the case from entering the island nation. The hearing will test the validity of the visas, which require asylum seekers to remain locked up for all their time in Nauru. Nauru govt rep Helen Bogdan said the two Aussie lawyers were advising solicitors for the snr counsel were sent home on Wed. She said they would advise the Nauru govt's lawyer, acting secretary for justice Lionel Aingemere but would not address the court. The Aussie legal team, headed by prominent MEL lawyer Julian Burnside, QC, was barred from boarding a flight to Nauru on Sun to take part in the hearing after their visas were cancelled by Mr Harris and Russell Kun. On Mon, Russell Kun said he did not see the need for the team to attend the hearing. This left Reuben Kun pitted against Aussie QCs and snr counsel without the ability to argue the case -- he could only read from papers prepared by Mr Burnside. But on Wed Ms Bogdan said Russell Kun had told her he had ordered Aussie lawyers representing the Aussie and Nauru govts to leave to ensure the hearing was fair. In response, Mr Burnside on Wed said he was pleased the other legal teams had been sent home. "It makes it a fair fight again," he said. Under the Pacific solution deal, signed in 2001, the Aussie govt agreed to pay tens of $mns to the cash-strapped Pacific nation in return for the right to keep asylum seekers there. The Aussie govt last wk also signed a treaty with Nauru to help it out of a financial crisis, after America's General Electric Capital Corporation moved to recover debts of more than $230 mn. Under the treaty, AUS will provide a snr treasury officer and officials from the finance dept to help Nauru reorganise its finances. Mbeki includes more women in new cabinet Jo'burg (AFP). South African Pres Thabo Mbeki has unveiled a new cabinet for his second and final term. The cabinet includes more women and members of other parties but retains the finance, defence and foreign ministers and his controversial health minister. "This is a very strong team. I'm glad that when I spoke to them all last night and early this morning they responded well to the critical challenge which is the implementation of policy," he said of the 50-member team. 22 of the team, which includes Deputy Pres Jacob Zuma, Cabinet ministers and deputy ministers, are women. "We've sought to address the matter of the gender issue to further increase the number of women ministers and the number of women deputy ministers compared to the 1999 cabinet," he said, adding that there were 5 more women ministers. "We haven't quite reached 50% yet but we're getting there." Pres Mbeki retained Mosiuoa Lekota in the defence portfolio, Trevor Manuel at finance and Nkosazana Dlamini-Zuma at foreign affairs, as well as Health Min Manto Tshabalala-Msimang, who has sparked criticism for advocating a quirky diet to fight HIV-AIDS, South Africa's biggest killer. He dropped former home minister Mangosuthu Buthelezi, the leader of the Zulu-dominated Inkatha Freedom Party (IFP), who has clashed with the president over new immigration rules and the outcome in the Zulu heartland of Kwa-Zulu Natal of the Apr 14 vote. Mr Mbeki's African Nat'l Congress (ANC) garnered 70% of votes cast in the election, the 3rd since the end of apartheid. Mr Buthelezi was replaced by his former woman deputy, Nosiviwe Mapisa-Nqaqula. But there were 2 deputy ministers from the IFP in the new team and Mr Mbeki said the ministerial team was broader-based with people from more political parties such as the Azanian People's Organisation, the IFP and the New Nat'l Party in the govt in keeping with his poll pledge for a "people's contract" to face new challenges. Pres Mbeki appointed Marthinus van Schalkwyk, the leader of the New Nat'l Party -- the reincarnation of a party that formed the bulwark of the apartheid regime -- as minister of environmental affairs and tourism. Mr Van Schalkwyk's party, which jointly ruled with Mbeki's African Nat'l Congress (ANC) party in the W Cape province, was routed in the last elections, getting less than 2% of the total vote. In the other cabinet position given to a member outside of that of the ANC, the chair of Science and Technology went to Mosibudi Mangena of the left-wing Azanian People's Organisation. Mr Mbeki faces stiff challenges in his last term and has promised to deliver on ambitious election pledges to fight poverty, unemployment, the HIV-AIDS scourge and crime. Unemployment hovers between 40 and 50%, according to various estimates, while many say poverty has deepened in the last decade. The governing ANC had made steep promises in its manifesto: creating 1 mn new jobs in 5 y; spending 100 bn rand [$A20 bn] to improve infrastructure and halving poverty and unemployment by 2014. Risk rises with Hollywood budgets LA (Reuters). Rising movie production costs, which are nearing $US200 mn for some of the biggest blockbuster films, could lead to disaster for the studios that make them, as a major flop would result in huge charges, a top media executive has said. News Corporation president and chief operating officer Peter Chernin said few people were willing to talk about just how expensive movies have become. "The cost of these movies is the dirty secret of Hollywood," Mr Chernin said at a Milken Institute conference in LA. Were a movie to cost $US200 mn for production and then bring in only about $US25 mn at the box office, Mr Chernin said, the fallout from write-downs and charges would be shocking. "It will rock the industry to its foundation and appropriately so," Mr Chernin said. Speaking on the same panel, Viacom chairman Sumner Redstone said his company's movie studio, Paramount, would have a freer rein to make big-budget pictures costing more than $US100 mn, though it would not spend for the sake of spending. "They will not be profligate," Mr Redstone said of Paramount's executives. The panel's group of executives also addressed entertainment technology like broadband delivery, video on demand, digital video recording and piracy. The general consensus was that the movie industry was not suffering from digital piracy in the same way as the music industry both because of the larger file sizes for movies, as opposed to songs, and because the movie business had embraced legal digital downloads of its products. "It's ironic that you can buy a movie cheaper than you can buy the soundtrack to that movie," Mr Chernin said. He said digital video recorders, which allow viewers to watch programs without the commercials, would change traditional TV advertising models but not kill them. "I don't think advertising is threatened, but I think the long block of interruptions may need adjusting," he said. Amex ads to promote Aussie tourism Canberra. The Fed Govt has announced a $30 mn partnership with an internat'l financial institution to attract more tourists to AUS. Tourism Min Joe Hockey says American Express will use its client database to promote Aussie tourism destinations. The campaign is expected to attract 10,000 "high yielding" Americans to AUS over the next 12 m. Mr Hockey says the campaign is likely to be extended into other markets in the future. Toohey continues attack on DIO Canberra (AAP). Naval lawyer Martin Toohey continued his criticism of AUS's spy agency the Defence Intel Organisation (DIO), saying it was politicised and misled the public. Capt Toohey has attacked the govt over its treatment of him and whistle-blower Lt Col Lance Collins amid allegations of failures by the DIO. He said he believed the govt was involved in a cover-up over the Collins affair and said he wanted to appear at a parliamentary inquiry into the military justice system. Lt Col Collins, chosen by defence chief Gen Peter Cosgrove to oversee intel in E Timor, was at the centre of allegations he leaked sensitive material. But a report by Capt Toohey cleared him of the claims and found evidence of a pro-Jakarta lobby within the DIO. The govt later released another report by Col Richard Tracey which discredited the Toohey report. Capt Toohey said he disagreed with the govt and said the Tracey report was a cover-up. He said the DIO was "misleading the govt and the people of Australia". Capt Toohey said the politicisation of the DIO was life threatening and the head of the organisation should be sacked. "I believe that the head of DIO is politicised, I believe that he really should be replaced," he told ABC Radio. "DIO has been politicised and that is a very sad situation and indeed a dangerous situation if we have another E Timor where the intel is of such a poor standard again lives will be at risk." Capt Toohey said he wanted to testify before a parliamentary inquiry because the cover-up was a constant thorn in his side. He also claimed to be the victim of a witch-hunt for the leaking of the Collins report to the media. "I've had 2 investigators from the defence security interview me," Capt Toohey said. "I have no idea how it was leaked, I told them so. Military barrister wants defence concerns aired at inquiry Capt Martin Toohey says he wants to appear before a parliamentary inquiry. Canberra. The military barrister who accused the Fed Govt of being involved in a "shabby, tawdry cover-up" in relation to defence intel says he wants to appear before a parliamentary inquiry to express his concerns. Capt Martin Toohey claims he has been part of a witch hunt. Capt Toohey's investigation which found the Defence Intel Organisation (DIO) tailored its reports to suit govt policy was leaked to the media earlier this m. The Govt later released a document by a MEL QC contradicting the report. Speaking to the ABC's AM program, Capt Toohey was standing by his findings. "[The] DIO has been politicised and that is a very sad situation and indeed, a dangerous situation," he said. He told the program he is being investigated but was not responsible for the leaking of the report. "I've had 2 investigators from defence security interview me. I have no idea how it was leaked, I told them so," he said. "That's simply not good enough, it's a witch hunt and don't shoot the messenger." He wants to appear before a parliamentary inquiry into military justice and says his concerns about bias in AUS's intel agencies are supported by other snr military officers. Witnesses will back me up: Laws Broadcasters embroiled in ABA scandal. Sydney (AAP). Radio broadcaster John Laws insisted he had witnesses to back his claims that rival Alan Jones boasted of pressuring PM John Howard to re-appoint the broadcasting watchdog. Mr Laws on Wed claimed Mr Jones had boasted at a dinner party in 2000 about "instructing" Mr Howard to re-appoint Aussie Broadcasting Authority (ABA) chairman David Flint in exchange for his support before the 2001 fed election. Both Mr Howard and Mr Jones, the prominent 2GB breakfast broadcaster, have strongly denied any pressure was exerted to re-appoint Prof Flint. Mr Jones challenged Mr Laws's recollection of events and denied ever having spoken to Mr Howard about Prof Flint. Mr Laws said people should believe him because of the number of witnesses he had to Mr Jones's comments. "The statement, I'm telling you, was made," Mr Laws said on his radio 2UE show. Mr Laws on Wed said Mr Jones made the claim in front of several other guests at a Nov 2000 dinner party, hosted by his (Laws') manager John Fordham. On Wed night Mr Fordham backed Mr Laws' version of events at the dinner party. Mr Laws said Mr Jones had made his comments in front of him and 4 other people. "All of us without exception were bemused to say the least by the remark," Mr Laws said. "And that's why it was printed indelibly on our respective memories. "Now Alan predictably claims that he can't remember the occasion... "Well, I'm quite sure that if any of you had been at a dinner party and had gone through the dramas I had gone through with Prof Flint and the ABA you would certainly remember a comment like that, wouldn't you." Mr Laws said his rival was a highly intelligent man and had pretty good recall. "So it's really a simple matter of deciding who you believe," Mr Laws said. Alan Jones denies the political interference claims Sydney. Radio broadcaster John Laws is standing by comments he made accusing fellow broadcaster Alan Jones of political interference. Mr Laws claimed on Radio 2UE that Mr Jones told him at a dinner party in Nov 2000 he had instructed John Howard to re-appoint Prof Flint. Mr Laws said Mr Jones warned him not to criticise Prof Flint. "Alan Jones then went on to say in fact, 'I was so determined to have David Flint re-elected that I personally went to Kirribilli House and instructed John Howard to re-appoint David Flint or he would not have the support of Alan Jones in the forthcoming election'," Mr Laws said. Mr Jones and Mr Howard both deny any such conversation took place. Speaking on the ABC's 7.30 Report Mr Laws said he was quoting Mr Jones pretty much verbatim when he made the comments. He also said 5 people at the dinner party were witness to Mr Jones's comments and can verify what he said. Mr Laws also denied any professional jealousy of Mr Jones and said he and his rival broadcaster disagree on only one thing. "Well somebody has asked the question before and I answered it this way, we only really disagree on religion, religious grounds, I refuse to treat him like God," he said. * Jones hits back Mr Jones has accused Mr Laws of airing the allegations to boost flagging ratings. He told Radio 2GB the comments attributed to him were "ludicrous and fanciful". Mr Jones admitted attending the party but said he did not think he had ever spoken to the PM about Prof David Flint. "I don't think I've ever had a discussion with John Howard about David Flint, ever," he said. "For me to say that I actually went personally to Kirribilli House. Now presumably you just walk through the gate do you, knock on the door and say 'PM get out here, I've got a few lessons to teach you'. "I instructed John Howard to re-appoint David Flint? I don't think that I've ever had a discussion with John Howard about David Flint ever. "That's as memory tells me." Speaking in Bris, the Prime Min rejected claims Mr Jones tried to influence him over the re-appointment of Prof Flint. "As to the suggestion that he tried to heavy me under threats that if I didn't re-appoint David Flint he wouldn't support me in the election campaign is absurd and wrong," he said. "No such conversation at Kirribilli House or anywhere else took place between Mr Jones and myself. "Indeed I can't recollect Mr Jones ever raising Mr Flint's position with me." "I totally reject any suggestion that I was heavied under threat if I didn't do this somebody would not support me in an election campaign. "No such threat has ever been made to me by Jones or anybody else and if it were I would tell them to get lost." However, Fed Labor leader Mark Latham said the allegations were disturbing and required a full explanation from Mr Howard. "This matter is very serious. It would, for example, be a serious breach of the ministerial code of conduct at a minimum and more serious matters could flow," he said. "I think it's incumbent for the PM to give a thorough explanation to the Aussie people." * Letter of praise ABC TV's Media Watch this wk revealed Prof Flint sent Mr Jones a letter praising his extraordinary ability to express the opinions of the majority. Prof Flint told the ABC's 7.30 Report he wrote the letter after he was inspired by comments made by a conference keynote speaker praising Mr Jones. "This was to an assembly of people learned in this area. I thought that was so interesting, I thought I would let Alan Jones know that that view was being put about by another person," he said. Prof Flint said when he wrote the letter he was not aware there would be a cash for comment inquiry and certainly not one involving Mr Jones. "[It] came in later into the radar of the investigation and I wasn't aware at that time that I was writing, that there was any possibility of an investigation by the ABA," he said. Prof Flint said contact with Mr Jones was legitimate and it did not compromise the inquiry. "We don't exclude ourselves because we know the person involved," he said. "We've had contact with them, we may have praised them. The question is, 'had I previously taken a view in relation to personal sponsorships?'. "I had not." Prof Flint said he would not have written the letter, had he known the cash for comment inquiry would be conducted. Jones hits back at claims Sydney. Radio broadcaster Alan Jones has used his breakfast program this morning to hit back at claims that he boasted about instructing Prime Min John Howard to re-appoint Prof David Flint to head the Aussie Broadcasting Authority (ABA). John Laws made the claims on a rival radio network yesterday after Jones's program had ended. It was not until 4 hours after Mr Laws made his claims that Mr Jones took to the airwaves to deny them, but this morning, on his own program on the Macquarie Network, he wasted no time in suggesting a motive. "In many ways it's very sad I think that some of these things are inspired by envy or jealously -- I don't know what they are," he said. One talkback caller saw a grander conspiracy. "I would suggest that it's been cobbled together by the ALP and its electronic wing the ABC and a very sympathetic 2UE," the caller said. On air this morning John Laws told S Cross listeners he has given an honest account and he has 5 witnesses. "Either Alan Jones or the PM is a liar," he said. The Prime Min says Alan Jones is a friend but rejects Mr Laws's allegation. "I specifically deny any conversation remotely resembling what has been alleged," he said. Mr Howard told S Cross Radio he does not know what took place at the dinner party but there was no such conversation between himself and Mr Jones. "If somebody approached me, somebody from the media with a threat that they would withdraw support from me if I didn't do such and such I would to use the Aussie vernacular tell them to get lost," he said. Fed Opp'n leader Mark Latham has called for an independent public inquiry into the allegations. "We need an independent public inquiry, we've got 5 independent witnesses on one side alleging improper influence and even corruption," Mr Latham said. "It's a very serious allegation, a very, very serious allegation and when you've got 5 people alleging one side of the story and denials on he other and Mr Howard's in the middle you can't have a cloud hanging over the office of PM. "You need an inquiry to establish the facts." The Democrats support calls for an independent inquiry into the issue. Laws claims there are more Flint letters Laws claims he has seen other correspondence between Mr Jones and Prof Flint. Sydney. The board of the Aussie Broadcasting Authority is due to meet this afternoon amid continuing controversy over chairman David Flint and the nature of his relationship with broadcaster Alan Jones. There has been debate on Prof Flint's impartiality since ABC TV's Media Watch program revealed a letter sent before the 'cash-for-comment' inquiry, in which he praises Mr Jones. Now broadcaster John Laws says he has been informed of the existence and dates of 3 more letters between the men. In one of those letters, Mr Jones is said to express a general allegiance with Prof Flint. Former ABA board member Kerry Henderson says Prof Flint should make all the correspondence public. "It would certainly help the debate if we could see the correspondence and evaluate it all of the letters and take a view on that," he said. "Otherwise, what I think David must do is no doubt what David is doing -- considering very carefully what his position is and what he ought to do." * Jones denial Earlier today, Mr Alan Jones used his breakfast program to hit back at claims that he boasted about instructing PM John Howard to re-appoint Prof Flint. Mr Jones is very sure of Mr Laws's motive. "In many ways it's very sad I think that some of these things are inspired by envy or jealously -- I don't know what they are," he said. One talkback caller saw a grander conspiracy. "I would suggest that it's been cobbled together by the ALP and its electronic wing the ABC and a very sympathetic 2UE," the caller said. While Mr Laws is sticking by his claims, the PM has denied he was or would ever be influenced in such a way. "I specifically deny any conversation remotely resembling what has been alleged," Mr Howard said. "If somebody approached me, somebody from the media with a threat that they would withdraw support from me if I didn't do such and such I would to use the Aussie vernacular tell them to get lost." The Opp'n and the Democrats are maintaining their calls for an independent inquiry into the issue. PM poised to announce sugar rescue deal Canberra. The Prime Min will unveil a rescue package for the ailing sugar industry today in Qld. It is understood the package is worth more than $440 mn. John Howard and the Deputy PM, John Anderson, will visit Bundaberg in the marginal Nat'ls seat of Hinkler to make the announcement. Mr Anderson has indicated the package will include funding to help farmers and sugar mills diversify into other areas such as ethanol production, and assistance for those who want to leave the industry. "There's considerable emphasis in the package on helping people in the sugar industry adapt to some of the new opportunities that we think will be there for value adding and for other alternative uses for sugar in the future," he said. Mr Anderson hopes the rescue package will ease the frustrations of sugar farmers who were left out of the free trade agreement with the US. "I think that if they look at it objectively they'll recognise that this is really of considerably more help in my judgement than the relatively modest amounts of sugar we were likely to get in in the short-term anyway," he said. Mr Anderson says the sugar industry has lifted its productivity in recent years, and the measures will help farmers make a living at a time of very low world prices for sugar. Meanwhile Nat'ls MP for Hinkler Paul Neville says he is confident the funding package will help those who want to remain in the sugar industry. "I don't think govts in the past have seriously addressed the restructuring aspect of it or put any serious money into that," he said. "I get the impression that John Howard and John Anderson have taken that on board from the fed members and that Cabinet will have an element of that restructuring in the package," he said. Meanwhile, unions have vowed to fight any rescue package that leads to further mill closures. Aussie Manufacturing Workers Union rep Andrew Dettmer says any package that means mills will close will be opposed. "What I would hope for is a proper package which addresses all the issues of the industry," he said. "What I'm fearful of is, following their current form, you would think that it'll only address part of the industry. "That is, the only people that they have spoken to so far have been the growers -- or certain sections of the growers -- and the millers. "Of course that leaves out the sugar workers and their communities and we think that any solution that doesn't take their interests into account is no solution at all." Sugar industry receives $444 mn sweetener Farmers will have access to a one-off sustainability grant. Bundy. The Fed Govt has announced a $444 mn sugar package aimed at reviving the cash-strapped industry. Cane growers and millers will have access to a $146 mn one-off sustainability grant, which equates to about $30 per tonne of cane produced this y. The package includes re-establishment grants and re-training assistance for cane growers and mill workers. Prime Min John Howard has told 100s of cane farmers in the southern Qld city of Bundaberg, that one-off grants for growers leaving the industry will be increased from $45,000 to $100,000. He says $75 mn will be available over 3 y to help explore diversification and value-adding opportunities. "It is a large package but it is necessarily so," he said. "A half-hearted response would not have been enough. "It is a combination of generous assistance in the short-term to keep people going, but also a recognition that in the medium to longer term change and restructuring will be necessary." Sugar Industry Task Force chief De-Anne Kelly says the generous package will give all sectors of the industry a range of options. "That $146 mn will be based on a price of $30 per tonne of sugar and then growers have a number of choices," she said. "For those growers who have decided they don't want to grow sugar cane anymore...there's a re-establishment grant of $100,000." Canegrowers general manager Ian Ballantyne says the package will be the catalyst for change but he believes farmers will not decide overnight whether to stay or leave the industry. "They've got to look at forecast prices that may be coming down the stream over the next ys," he said. "What the options they may have on farms, what types of change may be brought about within their own district, now these things are not going to be revealed tomorrow. "It is my view it will take some m before some of the regional plans are completed before some of the consequences of these things are understood." Qld Prem Peter Beattie says the fed package ties in with the state's reforms to the industry. "Without our reforms, then the money allocated by the Commonwealth would have been just like a pack of cards it would have fallen over," he said. "So what we now sensibly have at the end is appropriate reforms that can value add and create jobs for the future, and that's very important, and secondly we now have a reform package so I'm pleased about that." Santos sales hit by Moomba explosion Sydney. Santos has released 1st quarter results showing the financial impact on the oil and gas producer of the New Year's Day explosion and fire at Moomba in SA's far NE. Total production for the 1st 3 m of 2004 was down a little over 3 mn barrels when compared with the 1st quarter last y. That translates to a drop in revenue of $106 mn, a result Santos says is directly linked to the devastating Jan explosion. General manager of business development Graeme Bethune says production is getting back on track. "The good news is that Moomba is back up to full gas production now and has been since the end of Mar, and we're going to get back to full liquids production over the period between May and Jul," he said. He says full y production will also be down but the company remains confident of building production to record levels over the next few years. Union boss to meet Mitsubishi AUS's managing director Adelaide. Mitsubishi workers in Adel are dealing with yet another threat to their jobs. The Aussie Manufacturing Workers Union's (AMWU) fed secretary will meet Mitsubishi's Aussie managing director in Adel this morning. Doug Cameron wants to find out from Tom Phillips what the future holds for more than 3,000 Mitsubishi staff in Adel. The concerns for the company's 2 Adel plants have been caused by cancellation of a $multi-bn recovery plan to help its overseas businesses. Mr Cameron says he wants to see deeper involvement by the Fed Govt to ensure Mitsubishi's S Aussie interests are secure. "We want to sit down around the table with the Govt, the Fed Govt, the State Govt and Mitsubishi AUS to look at what are the key issues to maintain the viability of Mitsubishi AUS," he said. "I've written to the PM asking for such a meeting to take place." Union concerned Labor plan undermines female teachers Perth. WA's State School Teachers Union in concerned a Fed Opp'n plan to increase the number of male teachers could undermine the work of their female counterparts. Fed Labor has promised to spend $9 mn on a mentoring program for boys and to attract male high school students to teaching as a career. The Fed Govt has already outlined a similar plan. The vice-president of the union Anne Gisborne says while she has no objections to increasing the number of male teachers in the public system, it is dangerous to assume male teachers can have a big impact on the development of boys. "It puts an incredible amount of responsibility on any males that may come into the system and I think it puts also at risk any sense that the responsibility for boys may well be with 1/4 of the profession as opposed to the whole of the profession," she said. "As far as I know there's been no research that indicates that females or males are better than each other. "I think we need to keep our eyes focused on the individual and the individual's capacity to deliver the best education for our students." Clark challenges suspension despite ATSIC scrapping Geoff Clark: fighting on. Warrnambool. Former Aboriginal and Torres Strait Islander Commission (ATSIC) leader Geoff Clark is continuing his Fed Court challenge over his suspension as chairman, despite the body ceasing to exist. Geoff Clark was suspended after being convicted of obstructing police during a pub brawl in the Vic town of Warrnambool. The MEL hearing is centring on the legislation Indigenous Affairs Min Amanda Vanstone used to terminate his appointment. High Court overturns children in detention decision Adelaide. 5 juvenile asylum seekers housed by a Catholic welfare agency in Adel are facing immediate return to detention after a High Court decision today. A lawyer for the family is seeking an urgent hearing in the Fed Court to stop the children's removal. The 5 children were shifted to a home in Adel's eastern suburbs after the full court of the Family Court rejected a Fed Govt appeal. The Family Court had intervened to protect the children and ordered their release from detention housing in the outback town of Woomera. The Fed Govt then appealed to the High Court. In its judgement today the High Court said the family court had no jurisdiction. It said the language of the Migration Act was intractable and didn't differentiate between children and adults. Neither could the migration act make allowances for internat'l law. The High Court judgement reaffirmed that mandatory detention was clear, valid and applicable to children. The headmaster of an Adel school the 2 boys attend has called on the Fed Govt to act with compassion and understanding and allow the boys to continue their education there. He described the ruling as disappointing, saying it was semantic and the opinions of the judges notwithstanding, it is against all principles of natural justice and decency to keep children and people who have committed no crime, behind wire. Acting Immigration Min Gary Hardgrave says the arrangements for the children will remain in place for the time being. "We're not going to make public announcements about their circumstances on the run," he said. Mr Hardgrave says it is a complex judgement and the Govt will review implications for the children before making a decision. Howard defends joint strike fighter Canberra (AAP). PM John Howard described the joint strike fighter project with the US as "a fantastic concept", following reports of cost blowouts in the program. The Aussie newspaper said the $16 bn fed govt plan to buy a fleet of US-made fighter jets was being undermined by a blowout in costs, production schedules and design problems. The report said the fighter jets were losing US congressional support and were about 680 kg overweight in the design stage. The Fed Govt has invested $205 mn in the fighter jet design program. Mr Howard, in Qld to launch his govt's sugar industry rescue package, said he did not know whether the basis of the report was correct. "You get a lot of these reports about cost blowouts," Mr Howard told 4BC radio in Bris. "Cost blowouts do occur and have always occurred in every country in relation to the development of new technology connected with new weaponry." Mr Howard said the deal, in which AUS planned to buy up to 100 of the aircraft in the largest govt purchase since Federation, was "very big and very valuable". "It's a fantastic aircraft concept, it really is, and it will give an enormous defence reassurance to the Royal Aussie Air Force when we get it," Mr Howard said. PM unaware of fighter jets cost blowout PM John Howard says cost blowouts are not uncommon. Canberra. PM John Howard says he is not aware of a cost blowout in a plan to buy a new fleet of US fighter jets. There are reports that the bn dollar project, which is said to be the largest in AUS's history, is being undermined by cost concerns. Mr Howard has told S Cross radio the aircraft will give the Aussie Air Force enormous capacity within the next decade. He says cost blowouts are not uncommon. "The cost blowouts do occur, they always have occurred and occur in every country in relation to the development of new technology connected with new weaponry," he said. "It's often difficult to forecast and foresee in advance what's going to happen." ALP commits to mentor young Aussies Melbourne. Mark Latham aims to have 10,000 mentors trained by 2006. Fed Opp'n leader Mark Latham has committed a future Labor govt to a $33 mn program to train mentors for young people. Mr Latham says the program includes the establishment of a nat'l mentoring foundation to distribute funding for mentoring programs He says it will have 10,000 new mentors trained and practising by the end of 2006. He made the announcement after visiting a mentoring program at the Traralgon Secondary College. "We need to work constructively with communities to provide social solutions to problems," he said. "We have young people who have difficulties through their adolescent years who need better guidance and social support, so to build mentors around them is vital." Woman dies after bag snatching incident Melbourne. A 77-yo woman has died after suffering serious injuries during a bag snatching incident in the MEL suburb of Croydon yesterday afternoon. The incident occurred on Mt Dandenong Road shortly after 2.00 pm. The alleged offender was arrested after a witness chased the man to Croydon railway station. The Mooroolbark woman, who was in hospital in a critical condition, died early this morning. A 34-yo Bayswater man charged with robbery and recklessly causing injury in relation to the incident, has been remanded to face court today. DPP wants further inquiries into model's death Sydney. The New S Wales Director of Public Prosecutions (DPP) has requested police conduct further investigations into the death of SYD model Caroline Byrne. Police from Strikeforce Irondale have forwarded a brief of evidence to the DPP. The 24-yo was found at the bottom of a cliff at The Gap in SYD's E in 1995. In a statement, Nicholas Cowdery QC says advice will not be given until that action is complete and the results assessed. Kyoto benefits outweigh negative impacts, Latham says Opp'n leader Mark Latham has backed the Kyoto Protocol. Melbourne. Fed Opp'n leader Mark Latham has rejected suggestions that signing the Kyoto Protocol and limiting greenhouse gas emissions would have disastrous consequences for the Latrobe Valley power industry. He has also rejected support for a carbon tax rumoured to be under consideration by the Vicn Govt. Mr Latham says the Kyoto Protocol is all about good environmental policy and he disagrees with the analysis made by the Nat'ls Member for Gippsland, Peter McGauran. He says Labor believes the overall benefits to AUS from signing the Kyoto Protocol would outweigh any negative impact. "The Kyoto Protocol is all about good environmental policy, which has important economic benefits for this nation as well, in terms of saving the Great Barrier Reef, in saving the Kakadu Nat'l Park," he said. "We believe overall, the benefits for the Aussie economy would be quite strong." He says the benefits from signing the protocol would outweigh any impact it might have on the brown coal power industry. "We're always keen to make assistance for the Latrobe Valley," he said. "We'll have other initiatives and good policies to help the Latrobe Valley economy and building up basic services as a key part of that." Mars rovers complete missions, head for hills LA (Reuters). 2 robot-geologists have successfully completed the assignment they were sent to do on Mars and have been sent exploring for extra credit, scientists at NASA's Jet Propulsion Laboratory said on Wed. The twin rovers, Spirit and Opportunity, are in good condition after enduring more than 3 m of extreme temperature swings and dust storms on the Red Planet, mission manager Matt Wallace said. Scientists at the Pasadena, California, laboratory were surprised to find that the vehicles' solar-powered batteries were degrading faster than expected due to use and dust accumulation, he said. The 6-wheeled vehicles were designed for 90-day missions but the JPL team expects them to operate twice as long. The golf cart-sized rovers captured the world's attention with their dramatic landings in Jan on opposite sides of Mars, and with their discovery of geologic evidence that salt water once covered parts of the barren planet. Opportunity completed its 90th Martian day, or sol, on Mon -- a landmark achieved by Spirit on Apr 5. NASA has approved funding to extend the missions through Sep. During the primary mission, Opportunity drove more than 1 km, snapped nearly 12,500 images with its on-board cameras and used its instrument arm to drill into 5 rocks. The rover, now roaming on a flat gray expanse nr Mars' equator known as Meridiani Planum, spent most of its primary mission studying a rocky outcrop in the small crater where it landed. Opportunity has since climbed out of the crater and is headed for another small crater nicknamed named Endurance about 246 feet away where scientists have spotted some "tantalising" rocks, science team member Scott McClennan said. In about 10 sols, engineers plan to test Opportunity's "deep sleep" mode in hopes of cutting a power drain caused by a heater on the rover's instrument arm that has been stuck in the "On" position since the start of the mission, Wallace said. From its landing site in the massive Gusev Crater, Spirit has wandered about 1.2 km along the lip of a crater nicknamed Bonneville and into a field of small rocks and depressions. Spirit's ultimate destination is a range of hills nicknamed the Columbia Hills that are more than 2 km away. Scientists said they hope the formation will yield rock layers older than the volcanic plain Spirit has been crossing. Apple notches 70 mn music downloads SF (Reuters). In its 1st year, Apple's online music store has sold more than 70 mn songs, short of its original 100 mn song target but more than anyone else, the company has said. Apple, maker of the Macintosh computer and the wildly popular iPod digital music players, also upgraded its iTunes digital jukebox software with new features such as "iMix", which lets customers publish their play lists on the iTunes online music store, which other customers can then purchase. "We're very, very excited about the results from the 1st year," Steve Jobs, Apple's co-founder, chairman and chief executive said, adding that the Cupertino, California-based company has sold more than 3 mn iPods since they were introduced in Oct 2001. "If there is a keystone here, it's iPod," said Phil Leigh, an analyst with market research firm Inside Digital Media. "As long as Jobs can maintain market share there, he has a good chance at remaining number one in online music." Apple had initially set a goal of selling 100 mn songs in its first y of operating the store, but Jobs said the company was not at all disappointed with 70 mn songs. In fact, the computer maker is offering a free song to customers for the next 8 days to mark the store's anniversary. "If a y ago anyone had predicted iTunes would have sold 70 mn songs, they would have been laughed out of town," Mr Jobs said. Apple now sells about 2.7 mn songs per week. Mr Jobs also said that the company has no current plans to start offering a subscription-based online music service, while many of its rivals do. "Subscription services are not succeeding," Mr Jobs said, adding that the iTunes music store had a "small profit" in its most recent quarter. "When you subscribe to music you don't get a chance to put it on your portable player and take it with you." Mr Jobs said that Apple's online music store now has more than 700,000 tracks available for purchase, an increase from 200,000 when it launched the service a y ago. Tracks cost US99 cents each and about 40% of the music sold is in the form of albums, rather than individual tracks. Apple has led the online music industry in the legal purchase and downloading of music, scoring agreements with all 5 major record labels with the launch of iTunes. The iPod has nearly 50% of the market for all MP3 players, Mr Jobs said, including $US50 players that use Flash memory to store media. However, Apple said last m it would delay global sales of its new iPod mini digital music player until Jul due to a problem with its supplier. Apple's iPods cost $US249 to $US499 and can store 1,000 to 10,000 songs and use hard disk drives for storage. Neanderthals not as slow as once thought: study Paris (Reuters). Neanderthals may conjure up images of an uncivilised, brutish species but they were surprisingly early developers, researchers have said. Although Neanderthals disappeared from Europe about 30,000 y ago, scientists at the French research institute CRNS in Paris have uncovered new details about them by studying fossilised remains. The findings were reported in the science journal Nature and suggest Neanderthals reached adulthood by the age of 15, about 3 y before early modern humans, probably ate a high calorie diet and were a distinct species from modern humans. "Neanderthals, despite having a large brain, were characterised by a short period of development," said Fernando Ramirez Rozzi. Creatures with large brains tend to have lengthier growth periods and take longer to mature, but Mr Ramirez Rozzi and his colleague Jose Maria Bermudez de Castro found that the opposite applied with Neanderthals. "Until now the idea was: the longer the growth, the bigger the brain but in Neanderthals this relationship is completely broken," Mr Ramirez Rozzi said. "This difference in growth between Neanderthals and modern humans is, I think, very strong proof of 2 different species," he added. Why they developed so quickly is a puzzle but Mr Ramirez Rossi suspects Neanderthals had a high mortality rate because of the hostile conditions in which they lived, and they adapted to this by maturing quickly. Dental growth records contain biological info and give an overall indication of the maturity of a species. Ramirez Rozzi and Bermudez de Castro studied the series of ridges, called perikymata, on teeth fossils. They compared teeth fossils from Neanderthals dating from 130,000 to 28,000 y ago, earlier samples dating between 800,000 and 400,000 years and teeth fossils of homo sapiens that were 20,000-8,000 y old. "Neanderthals were characterised by having the shortest period of dental growth," said Mr Ramirez Rozzi. Whether Neanderthals evolved gradually into modern humans or were displaced or killed off by them is a question still being debated by scientists. Some researchers believe there may have been inter-breeding to some degree. Neanderthals lived in caves or huts, used fires and tools and ate a variety of animals. They may have been cannibals and could have communicated with speech. Jan Kelley, of the University of Illinois in Chicago, said in a commentary in the journal that more studies on teeth fossils are needed to support the conclusions reached by Mr Ramirez Rozzi and Mr Bermudez de Castro. "Nonetheless, these authors have opened up what should prove to be a fruitful line of research into both the relationships and the palaeobiology of Neanderthals," Kelley said. DNA computer detects, treats test tube disease Tel Aviv (Reuters). Scientists have come a step closer to creating a minuscule DNA computer that may one day be able to spot diseases like cancer from inside the body and release a drug to treat it. Prof Ehud Shapiro and researchers at Israel's Weizmann Institute constructed the world's smallest biomolecular computer a few years ago. Now they have programmed it to analyse biological info to detect and treat prostate cancer and a form of lung cancer in laboratory experiments. "We've taken our earlier molecular computer and augmented it with an input and output module. Together the computer can diagnose a disease and in response produce a drug for the disease in a test tube," Prof Shapiro told Reuters. The microscopic computer is so minuscule a trillion could fit in a drop of water. Its input, output and software are made up of DNA molecules which store and process encoded info about living organisms. "Our work represents the 1st actual proof of concept and the first actual demo of a possible real-life application for this kind of computer," Prof Shapiro added. The findings, which are published online by the science journal Nature and were presented at a symposium in Brussels, could transform how diseases like cancer are treated in the future. Instead of biopsies to remove cancerous tissue, which then must be analysed in the laboratory, the DNA computer could potentially diagnose the disease within the tissue in the body. "Our medical computer might one day be administered as a drug, and be distributed throughout the body by the bloodstream to detect disease markers autonomously and independently in every cell," Prof Shapiro said. It could enable doctors to treat cancer in its earliest stages before tumours have formed and to deliver drugs to hard to reach cells if the disease has spread to other parts of the body. Different inputs could be used to detect other diseases. "It could work for any illness for which there is a particular pattern of over-expression or under-expression of genes which is characteristic for the disease," according to Prof Shapiro. He readily admits that a DNA computer roaming around the body spotting and treating disease is still a long way away. "There are many, many hurdles. It could take decades," Prof Shapiro said, adding that he and his colleagues had not expected to accomplish this step so quickly. Prof Shapiro's DNA computer is a molecular model of one of the simplest computing machines, the automaton, which can answer certain yes or no questions. It uses enzymes, which manipulate DNA, as the computer's hardware. The computer is pre-programmed with medical info and detects markers, or concentrations of certain molecules of RNA [a cousin of DNA] which are overproduced or under-produced to detect the cancer. If the markers signify a disease, the output releases a molecule similar to an anti-cancer drug to destroy the cancerous cells. Leonard Adleman, of the University of S California, pioneered the field of DNA computers a decade ago by using DNA in a test tube to solve a mathematical problem. {{ 1 am The battle for Fallujah continues. After several hrs of relative quiet, Marines and insurgents have against been engaged in a series of firefights. 1.45 am UN Sec Gen Kofi Annan has appealed to all parties in Iraq to refrain from violence. He also warmly endorsed a report from UN envoy Brahimi on plans for a transitional govt. 2 am Fallujah. Witnesses say they've seen missile and machine gun fire. There's heavy gunfire nr a railway stn in the N of the city. The Iraqi Health Min'y says 280 Iraqis have died in the fighting. The US-led Coal'n is talking to local leaders, trying to have them persuade local guerrillas to lay down their arms. Black-clad bandits have attacked police stns in the S Provs of Thailand. The govt is blaming the attacks on S Islamic militants. 150 people have died in fighting in the S since early Jan. Berlin. An anti Semitism conf in Berlin has been warned of growing anti-Jewish feeling in Europe and around the world. The 2 day event was called in response to a rise in anti-Jewish attacks and propaganda in several EU countries. Colin Powell is attending. WHO teams have arrived in Beijing to help limit the spread of SARS ahead of the May Day holiday. At a press conf in Singapore, WHO reps said Chinese authorities are doing their best to curb the spread of the disease. All cases in the latest outbreak are linked to a Beijing lab. Relief is pouring into N Korea. NK has put the death toll at 151 with 1,300 others injured. SK has sent a ship of supplies and medical equipment. But it's criticising NK for requesting TVs rather than medical aid. Many victims in the huge blast have been left blind and deaf. 3 am Pres Bush has said the US will do "whatever it takes" to regain control of Fallujah. He says the insurgents in the city were trying to derail the "hand over of sovereignty" on Jun 30. On the ground, US cmdrs are saying the cease-fire is still holding. But observers say there are on-going fire-fights. US forces are directing air-power and tank fire against any locations they suspect insurgents may be hiding. Observes say US cmdrs are making the "cease-fire is holding" for political reasons. Najaff. There's been sporadic gunfire around the city. 1 woman has been killed and at least 8 other injured when they were caught in cross-fire between US forces and Shia militants. Comcast has pulled its $multi bn hostile take-over of Disney. The CEO admitted he'd mis-calculated, complaining Disney officials had refused to even talk about the offer. Eisner has dodged another bullet. 6 am Pres Bush and VP Cheney have been drilling with advisors before they appear before the 9/11 commission tomorrow. They will not be sworn to tell the truth. They will appear together. The Whitehouse says this will reduce the number of questions. Observers say they want to minimise the chance they give conflicting evidence. The Whitehouse has also not allowed any public record to be made of the testimony. This is allegedly because secret intel may be discussed. The Dow has dived more than 100 pts on news of a new corporate fraud. Despite good profit news, Nortel says it's sacked its CEO because of profit over-statements. The company has had to re-state its profits several times. Analysts say exec bonuses were linked to profits. China has announced a credit squeeze in cool its rampaging economy. There are now fears that China is over-heating and demand for raw materials will slump. The news has put pressure on related currencies, incl the AUD. Meanwhile, NZ has raised its int rates o'night. The C bank hiked the cash rate 25 basis pts to 5.5%. The AUD has bounced off 72.16 and is presently at 72.28. London gold has slumped below $386/oz -- down $11.60 in the last 24 hrs. Base metals are also weaker. In NY, the Dow slumped 136 to 10,343. The Nasdaq also closed down 1.75%. In London, the FTSE ended down 51 pts. The Dax lost 1.7% on poor profit news. Oil is down on profit taking after hitting a 3-y high. NYMEX closed at $US37.46/bbl. 8 am Witnesses at a John Laws' party came forward saying they remember Jones boasting he'd told the PM to re-appoint Flint. Allan Jones and PM Howard continue to deny there was a deal to install David Flint as chief of the broadcasting authority, although their memories are developing the shakes. PM Howard says he can't remember what Jones said to him. But his memory is good enough to remember he can't remember ever having a conversation with Jones about Flint. Mr Howard says if Jones had said something that sounded like a threat he would have told him to get lost. Jones has hit the air-waves this morning, putting the Laws claims down to jealousy. But he also says he can't remember what he said at the time. Callers to Jones' morning talk program are putting it down to an ALP conspiracy. Thai police have seized 11 fake NZ passports. 2 men have been arrested in Bangkok with forged passports. They were trying to sell them to pain-clothed police. The haul included a couple of European passports. Russia. Moscow prosecutors have accused 4 doctors of preparing to murder a patient. The group was nabbed by police just as they were about to remove both kidneys from a 50 yo for transplant into another patient. The "donor" was in hospital for head injuries. One doctors is charged with attempted murder. The head of hospital's ICU is charged with "abuse of power". A 12 yo US boy is charged with the strangulation death of an 8 yo neighbour girl. He could be tried as an adult. Berlin. US Sec of State Powell says criticising Israel is not anti-semitic, but using Nazi symbolism is. He was speaking at OSCE 2 day anti-Semitism meeting. Delegates also were told that with 57 nations present, the conf on stopping religious hatred needs to be more inclusive. Maybe Muslims will be invited next time. In Mosul, 1 US soldier has been killed and 4 wounded when a hand-grenade was thrown at their vehicle outside the town. One of the injured soldiers later died of his wounds. In the city centre, 1 Iraqi policeman was killed and several others wounded in another attack. In Baghdad, Aussie Def Min Robert Hill has indicated AUS may supply vehicles to the new Iraqi army. Sen Hill has met with provisional Iraqi Mins and US Gov Bremer. For a 4th night, explosions and gunfire have been heard across Ambon. Several buildings were set on fire. 32 people are dead and more than 100 injured in the latest round of violence. Govt officials flew in to assess the security sit'n, but observers say they didn't visit the city. 6 US soldiers have been charged with abusing prisoners in Iraq. Brig Gen Mark Kimmitt said he wasn't going to defend them. But he claimed the group were not given proper training. He begged his audience not to judge the whole US military by the US officers that had been running the notorious Saddam-era prison. One of the accused is a Gen. 6 Coalition military personnel have been charged with criminal offences after an investigation into the alleged abuse of prisoners in Iraq. Fed Treas Peter Costello has ruled out a further financial bail out for car maker Mitsubishi, saying the company's troubles are out of AUS's hands. A woman has been killed and 6 other civilians wounded in an exchange of gunfire between US soldiers and Shiite militiamen near the central Iraqi city of Najaff, a hospital official said. UN Sec-Gen Kofi Annan has said US raids on insurgents are worsening the situation in Iraq and called for negotiations to help calm the situation. Midday. Analysts expect the main US attack on Fallujah to come over the weekend. CBS TV has shown pix of US soldiers abusing prisoners in the notorious Abu Gharib prison outside Baghdad. 6 soldiers have been put on charges, incl the Brig Gen in charge of the prison. The defendants claim they had never received proper training to run a prison. The pix showed soldiers posing with naked prisoners forced into positions simulating group sex. Another man was forced to get onto a box with a hood over his head, and told if he fell off the box he'd been electrocuted. Other excuseniks claim the CIA had asked the military to "toughen up" the soldiers by exposing them to the human rights abuses. "It was intoxicating" said one appeaser on "60 Minutes". The program comes as a new Iraqi poll shows more than 50% of Iraqis say the US military is doing more harm than good in the country. But 60% think the removal of Saddam is worth the continued abuse. An Iranian court has ruled a veterans' compensation case will go forward. The veterans are claiming poison gas used against them by Saddam Hussein was sold to Iraq by the US. They're claiming $800 mn in compensation. The claim has been passed to the Swiss embassy in Tehran. The Swiss have been the go-betweens since 1980 when the US closed its embassy in Iran. Lawyers for 5 children released from an Aussie concentration camp by the Family Court face an uncertain future after the High Court ruled the decision was not in the jurisdiction of the Family Court. The High Court says the immigration act is the only legislation that applies, and it makes no distinction between an adult or a child asylum-seeker who are to be locked up for an indefinite period. The children's lawyers plan to appeal the decision and are calling on the govt not to lock them up. The Fed Court will consider the application tomorrow. The temporary Im Min says the govt won't be making any immediate decision. 5 pm In Kut, 2 Ukrainian soldiers have been killed when insurgents attacked their convoy. The US military says fighting inside Najaff seems to be another group attacking Moqtada al-Sadr's militias. There were no details about the new group. In Fallujah, a local reporter for NPR said there were firefights in the N of the city where Marines are located. He also said airstrikes were called in and dropped 10 bombs in the S of the city. Others bombs were dropped in the E. There was no info of US casualties. Marie cmdrs said they would not start joint patrols for at least 24 hrs. There are concerns the Iraqi police and CDF don't have enough experience for the patrol job. The reporter said they were being given an extra day of training [!!]. The report contradicts Pres Bush's earlier comments. He had said that most of the city was quiet. 6.30 pm A CBS/NYT poll says Pres Bush would lose to John Kerry if an election were held now. It should support for the Iraq war and Pres Bush at all-time lows. Opinion polls in Israel show the Likud party will reject Sharon's withdrawal plan. A party vote on the Gaza pull-out plan is due soon. Elsewhere, the Israeli A-G has indicated he will not proceed in a bribery case involving PM Sharon and 2 of his sons. There's not enough evidence, he says. 7 pm PM John Howard says he's "reviewing correspondence" concerning ABA chief Prof David Flint. It's the first sing Flint may be sacked. Tonight, Prof Flint survived an extraordinary ABA board meeting. DIO head Frank Lewingcamp has to go, says Martin Toohey. He's a political appointee, says Toohey, and is skewing the intel. The defence investigator wants to appear before a parliamentary investigation after he was pilloried for defending Lt Col Lance Collins. Capt Toohey denies he leaked his report about the Collins investigation. Elsewhere, the Defense "establishment" is closing ranks about any investigation into Aussie intel. In Italy, all 9 defendants recently arrested in connection with terrorism have been freed by the courts. The court ruled the govt did not present enough evidence. In England, 7 men who'd been detained for questioning under the UK's new terrorism legislation have also been freed without charge. The Thai govt is under pressure over its use of deadly force in pursuing alleged Islamic militants in the S provs. The govt originally claimed to have shot dozens of militants in self defence. Now it's emerging the army lured ate least one group into a trap. Another group of 30 men was shot to death in a mosque. It was found they were armed only with knives and machetes. The Malaysian govt has expressed reservations about the violence crossing the border. In another major embarrassment for PM Howard, a letter of support sent to Allan Jones over the latest "cash for comment" and "peddling influence" row was accidentally sent to John Laws who's now leaked it to the press. The letter says the govt admires Jones and he should hang tough. 10.30 pm 8 US soldiers have been killed in a car bomb attack, S of Baghdad. The deaths take the US toll for this m to 126. 11 pm BBC World News. Has there been a peace deal in the siege of Fallujah? US forces say they've reached an agreement, after several wks of heavy fighting. Quoting US Marine cmdr Lt Col Burns the BBC says the US forces will withdraw and a new force will replace the Marines around the city. 1,100 Iraqi soldiers -- "The Fallujah Protection Army" -- headed by a Gen from the Saddam Hussein era will enforce security. And the US forces would "protect" the new troops. But there's been no official word about the plan from Baghdad. Relatives of 3 security guards kidnapped in Iraq are planning to demonstrate in Rome. They're calling on the population to support their protest. A tape from the kidnappers said if the Italian people held protests against the War and PM Berlusconi the mens lives would be spared. Pres Bush and VP Cheney continue to prepare for questioning by 9/11 commission. The Whitehouse says the meeting shows the Pres is "committed to helping the inquiry", but opponents say Mr Bush only agreed under weeks of intense pressure. At a news conf to rally support for the EU expansion, French Pres Chirac was non-committal about a referendum on the EU Const'n. He described the expansion as "a giant step" that would "turn Europe into a world economic power". The Nikkei was closed today. Oil is down .70 to $US37.46/bbl. The AUD continues to sink, trading around 71.76 US c. Likudniks are angry that "The Bulldozer" wants to U-turn and pull out of Gaza. Israeli PM Sharon has warned Likud if it rejects his plan it will be a victory for Yassar Arafat and militant Palestinians. He stopped short of threatening to resign if his plan is rejected. The party can't support him and oppose his plan at same time, he says. The Bush/Sharon plan calls for the 7,500 settlers from Gaza to leave, but 400,000 in the W Bank and Jerusalem would stay where they are. There are growing concerns the families of about 108 Muslim men killed in the S provs of Thailand will launch revenge attacks. }} ---------------------------------------- Fri, 30 Apr 2003. INTERNATIONAL HEADLINES: Bush and Cheney testify in secret Terror attacks "at 30-y low" 8 US soldiers killed in Baghdad area, US military says Filipino civilian contractor killed in Iraq US to ease Fallujah siege, Iraq death toll leaps US says terrorism down, but not in Iraq US general under scrutiny in Iraqi prisoner case SA confirms 5th nat'l killed in Iraq Pope, Italians appeal for release of Iraq Hostages Polls reveal Iraqi opp'n and fall in US support for war Many Italians are opposed to the invasion and occupation of Iraq Bush losing public support over Iraq Brit mulls bigger role in Iraq as US errors raise the stakes Bashir rearrested as supporters riot Book studying cultural gap between Canada and the US wins Donner Prize British police release terrorism suspects CIA angers Russia by predicting break-up of state within 10 y Canada claims victory in wood export row with US Canada to decide on whether to join US missile defence by fall: Martin China on holiday SARS alert at airports, stations Colombian school bus accident claims 22 lives Diesel fouls marsh near SF Fiji mourns Mara Google float forecast to raise $2.7 bn and turn founders into billionaires Manifesto may hold key to Blair's future New searchable database charts Bush/Cheney lies PM costs Italy its media ranking Police request calm after Bashir's re-arrest Post workers defended after 70,000 thefts Scientist believes Atlantis found off Cyprus Sesame Street heads to Afghanistan Space station trio return safely to Earth Stock prices slide as US rates speculation continues Thai extremists warn tourists to stay away US military "pressuring" journalists US stations to boycott troop tribute US terrorism report condemns Iran, praises S Arabia US troops pull back, bombing Fallujah on bloody day AUSSIE HEADLINES: ALP vows to protect coastline Australia welcomes new Mitsubishi head Children won't automatically return to detention: Howard Community service for AFL ticket scalper FTA offers marginal economic benefits: ALP Filmmaker drops Blue Mountains appeal Govt urged to condemn alleged Iraqi prisoners abuse Govt warns under-performing job providers Housing loans jump by 2.1% Howard condemns Iraq prisoners' alleged treatment Howard disputes intelligence concerns IAG announces share buy-back details Lack of university places 'wastes talent' Latham renews calls for ABA inquiry Mental health problems no longer taboo, AMA says Ministers plan plea for Mitsubishi future Mitsubishi set for extraordinary shareholders meeting More funding announced to tackle drug problem New study ramps up FTA benefits Nothing untoward about Jones friendship, PM says Nurses strike set to escalate PM distances himself from Telstra price rise Panel formed to continue delivery of Indigenous services Regional intelligence spot on, says Howard Site of Portuguese shipwreck to stay secret for time being Telstra defends price increase Wheat price claims worry Vaile Stock prices slide as US rates speculation continues NY/Sydney. There has been a further slide in stock prices on Wall Street as conjecture increases about a rise in American interest rates. A key inflation indicator has further spurred speculation that a move by the US Federal Reserve is only m away. The US Commerce Department has released economic growth figures showing American Gross Domestic Product (GDP) rose at an annual pace of 4.2% in the Mar quarter. That is below the 5% rate that had been widely touted on financial markets. Within the figures, the PCE index, which is an inflation gauge based on personal consumption spending and excluding volatile food and energy prices, has almost doubled. At the same time, first time claims for unemployment benefits have fallen by 18,000 in the latest week. The situation in Iraq has also kept investors wary. The equity market weakness has come despite more reasonable profit reports from the likes of Exxon Mobil and Time Warner. On the NYSE, the Dow has surrendered early gains and fallen a further 70 points to close at 10,272. Prices on the high-tech Nasdaq exchange have also succumbed, dropping 1.1% overall. The Nasdaq composite index has lost another 31 points to 1,959. Meanwhile, the search engine Google has named Morgan Stanley and Credit Suisse First Boston as lead brokers to its $US2.7 bn share market float, the documents for which have now been filed with US regulators. The British market has slipped a touch lower with London's FT100 index falling 5 points to 4,520. Yesterday, the Australian market followed Wall Street's lead with investors fretting about moves by China to put a break on its overheating economy. Lead by resource heavy weights, BHP Billiton and Rio Tinto, the All Ords tumbled 43 points to 3,408. On foreign exchange markets and the AUD has regained some ground. At 7.30 am it was quoted at 72.10, up almost 0.4 c on the night. Gold is priced at $US387.90/oz and a barrel of West Texas intermediate crude oil is worth $US37.52/bbl. Google float forecast to raise $2.7 bn and turn founders into billionaires LA (Guardian). Google, the world's largest web search engine, marked a coming of age last night when it filed to become a public company, a move expected to raise $2.7 bn and make billionaires of its 2 30-something founders. In a filing to US regulators, the 6-yo business also revealed the state of its finances for the 1st time, info likely to be seized on by rivals Microsoft and Yahoo! The Californian company is expected to be valued at up to $25 bn in the much-trailed flotation, expected to take place "as soon as practicable". According to the SEC filing, the company made a net profit of $105.6 mn last year on revenues of $962 mn, up from $347 mn a y before. Founders Larry Page, 31, and Sergey Brin, 30, plan to retain a controlling stake in the company through a two-tier share structure echoing that of large media companies. Their stake, undisclosed last night, is likely to be valued in the bns. Googlers, the title adopted by company employees, will also share in the bonanza. In a folksy introduction to the prospectus, the founders emphasise the importance of the company's culture, summed up as: "Don't be evil." A letter to shareholders headed An Owner's Manual says: "Google is not a conventional company. We do not intend to become one ... Our goal is to develop services that improve the lives of as many people as possible -- to do things that matter." The letter combines the wisdom of Warren Buffett, the famed Nebraskan investor, with the accoutrements of a W Coast technology firm. Staff perks such as free meals, doctors and washing machines will be preserved. In a swipe at the scandals that engulfed corporate America, the founders promise not to massage quarterly figures to meet market expectations. The letter quotes the Sage of Omaha: "If earnings figures are lumpy when they reach HQ, they will be lumpy when they reach you." Other existing investors in the company include members of the Sun Valley gliterati such as Sun Microsystems co-founder Andy Bechtolsheim as well as venture capital firms Kleiner Perkins Caufield & Byers and Sequoia Capital. Investment bankers led by Morgan Stanley and Credit Suisse First Boston are expected to share $100 mn of fees. Last night's announcement had been heralded with the sort of anticipation much more common at the height of the internet boom. Google, which accounted for more than 50% of all internet searches at the end of last y, handles more than 200 mn web inquiries a day. Figures issued last night show that the company made a pre-tax profit of $155 mn on revenues of $389 mn in the 1st quarter of this y, against $85 mn profit a y earlier. The filing revealed that chief executive Eric Schmidt received $552,000 in salary and bonus last y while founders Sergey Brin and Larry Page were each paid $356,556 in salary and bonus. Yesterday's release was attended by an extensive health warning outlining the risks to investors if they decide to buy shares in the company. Among the warnings was one about potential copyright violations. Google also said that it was sued in 2002 by Overture Services, which claims patent infringement related to advertisement placement processes. Google said it believed the lawsuit was without merit. Google is going public because new fed rules require companies with more than 500 shareholders and $10 mn in assets to disclose more info about their business. The company makes money by displaying advertising alongside search results, but it has also recently started a free email service, Gmail. Canada claims victory in wood export row with US Ottawa (AFP). Canada claimed a key victory in a bitter row over its softwood lumber exports to the US, on the eve of PM Paul Martin's 1st official visit to the White House. A N American Free Trade Agreement dispute panel ruled that despite US claims, American lumber producers had not suffered any damage as a result of Canadian imports. The long-running dispute has been a key sticking point in US-Canada relations, and was likely to be a key bone of contention when Bush hosts Martin Fri at the White House. The lumber industry is a weighty political constituency in US states and Canadian provinces important for both leaders in looming election battles. "This supports what Canada has been saying all along: Canadian softwood lumber exports do not threaten to injure US producers," said Canadian Internat'l Trade Min Jim Peterson in Washington. "Once again, the panel has ruled in our favour. This is a significant victory for Canada." The US however defended its claims as said it was "disappointed" with the ruling. The NAFTA panel ruled there was no evidence to support a May 2002 determination by the US Internat'l Trade Commission, a quasi-judicial US trade body, that Canadian imports would increase or depress prices. It also ruled that claims that the US lumber industry was threatened with material injury by subsidised or dumped Canadian imports were "not supported by substantial evidence." Following the commission's determination, the US Dept of Commerce imposed countervailing and anti-dumping duties on Canadian lumber. A US trade official in Washington however defended the ruling. "We continue to believe that the ITC acted in accordance with US law," the official said. "We continue to believe that it is in the interests of producers on both sides of the border to reach a durable, long-term solution to the lumber dispute." The World Trade Organization has also ruled in Canada's favour in the dispute, but its determination is not binding. The US lumber industry is expected to push for an appeal of Thu's verdict, but pressure will now mount on Ottawa and Washington for a negotiated settlement. "We will consider our options, including to pursue this matter further in an extraordinary challenge," the US trade official said. Colombian school bus accident claims 22 lives Bogota (AFP). Residents from the Colombian capital Bogota are in shock, one day after a 50-tonne excavator fell from a slope onto a school bus, killing 22 children on their way home from school and one adult. Colombian prosecutors have announced they are opening a manslaughter investigation against the machine's operator, Reinaldo Blanco, 55, who was undergoing surgery after suffering head injuries in Wed's accident. The children who died in the accident were aged between 4 and 17 y old and another 30 people were injured. "There are no words to describe this. It is profoundly painful," mayor Luis Eduardo Garzon, who declared Fri a day of mourning, said. The city blamed the accident on the consortium operating the machine, saying it violated security regulations for excavators. Grieving parents claimed their children's bodies, while students at Agustiniano Norte College awaited a funeral for their 22 fellow students. Tragedy befell the city again on Thu when 2 children and one adult were killed in two other accidents involving school buses. Another 52 people were injured. Canada to decide on whether to join US missile defence by fall: Martin Washington (CP). Canada will decide by this fall whether to take part in the US ballistic missile defence system, PM Paul Martin said Thu. Asked about it at a news conference in Washington, Martin denied he was trying to put off a contentious decision until after the fed election. Talks on the issue must 1st resolve whether the proposed missile defence system should come under Norad, the N American Aerospace Defence Command -- as is preferred by Canada. A decision on that should come in the early summer, Martin said. And by this fall, "a decision on whether we are going to sign the missile defence agreement or not will be taken," Martin said. "Essentially, these are the time periods that have been set out to take those decisions." Martin's comments followed Defence Min David Pratt's remarks in the House of Commons earlier Thu in Ottawa. Pratt said talks with the US on the missile defence system are continuing and it likely will be fall before a decision is made. "They are fairly complex discussions," Pratt said. "They deal with a number of complex issues which we are working hard to resolve." Opp'n MPs quoted a published report saying Canada had agreed to sign on to an aerospace early-warning system and that this almost ensures it will join the missile defence system. Pratt rep Darren Gibb said Canada has participated in space-based early warning systems with the US for decades as part of Norad. Pratt wrote to US Def Sec Donald Rumsfeld in Jan proposing talks on the defence system. "I made it clear that on behalf of the govt we were interested in pursuing discussions with the US," Pratt told the House. "That did not mean that we were ready to sign on to ballistic missile defence, not by any stretch of the imagination." The US plans to have the 1st handful of ground-based interceptors in Alaska and California on line by fall. The system is supposed to defend against a missile fired in error or by some rogue state. It is not big enough to handle a full-scale missile assault. One concern of the Canadian military is that if Canada refuses to participate in the missile shield system, Norad will be marginalised. The organisation has been a linchpin of Canadian defence policy for 50 y. Opp'n MPs said the govt is hiding the announcement of participation in missile defence to avoid it becoming an election issue. But Pratt responded: "We have not signed on to ballistic missile defence." Bush and Cheney testify in secret Washington (Independent). Behind closed doors and without even a recording being made of what they said, Pres George Bush and his deputy Dick Cheney were questioned yesterday by the 11 Sep commission about the Admin's failure to prevent the al-Qaeda attacks. Before the private session began, the American public had been unsure about the extent to which Mr Bush and his officials were warned about the threat of Osama bin Laden's terror network; afterwards, they were barely better informed. The only concession to the historical record agreed by the White House was to allow 2 staff members of the commission to take written notes. Mr Bush had never wanted to face the commission he set up to investigate the circumstances of the attacks. The Admin eventually agreed that he and Mr Cheney would appear together, neither under oath, in a single, closed-door session with the 10 commission members in the Oval Office of the White House. That was hailed as a breakthrough by the commission but, in exchange for that concession, its chairman had to agree that Mr Bush, Mr Cheney and no other snr officials would face further questioning. After the three-hr session Mr Bush told reporters: "I'm glad I did it; it's important." Asked if had been advised by his lawyer not to answer any specific questions from the commissioners, he added: "I answered every question they asked ... It's probably best I not go into the details of the questions and let them incorporate [that] into their report ... If we had anything to hide we would not have met them." The testimony of Mr Bush and Mr Cheney has gripped Washington, with critics claiming the Pres is trying to protect himself from scrutiny. His defenders say presidents rarely testify in such circumstances and the former president Bill Clinton -- also under scrutiny for what he did and not do to tackle the threat from al-Qaeda -- also spoke to the commission in private. "This is a good opportunity for the Pres to sit down with members of the commission and talk with them about the seriousness with which we took the threat from al-Qaeda, the steps we were taking to confront it, and how we have been responding to the attacks of 11 Sep," Mr Bush's rep, Scott McClellan, said. The commissioners arrived at the White House at about 9.15 am and gathered for photographs around Mr Bush and Mr Cheney. Alberto Gonzales, a snr White House lawyer and 2 unidentified members of his staff were also present. The session began at 9.30 am. There was much for the commission members to ask. Timothy Roemer, a former Indiana Congressman and one of 5 Democrats on the commission, said he would ask Mr Bush about the contents of an intel briefing entitled "Bin Laden determined to strike in US" that was given to him on 6 Aug, 2001, and what he did with that info. "Why wasn't [the threat level] higher, given the threat levels in spring and summer [of] 2001?" he said. Some relatives of those killed in the attacks on NY and Washington said they were looking for answers. "The purpose is not to lay blame but to assess possible reforms," said Kristen Breitweiser, from NJ, whose husband, Ronald, was killed. The White House has been thrown on the defensive by claims that it did not take seriously warnings about the growing threat from al-Qaeda in the spring and summer of 2001. Richard Clarke, Mr Bush's former counter-terrorism chief, and FBI whistle-blower Sibel Edmonds say warnings were ignored. CIA angers Russia by predicting break-up of state within 10 y Moscow (Independent). Russia's political elite has been stung by a recently de-classified CIA report that suggests the world's largest country could fall apart at the seams in a decade and split into as many as 8 different states. The report, Global Trends 2015, has sparked a lively debate in Russia about the country's territorial integrity and triggered passionate denunciations from some of Russia's leading politicians. Its unflinchingly bleak assessment of Russia's prospects has angered many at a time when the Russian govt is doing its best to talk up the economy. The fact that the gloomy prognosis comes from its old Cold War enemy makes it all the harder for Russia to swallow. But many ordinary Russians seem to share the CIA's pessimism. An opinion poll conducted by radio station Ekho Moskvy earlier this wk revealed that 71% of those surveyed [3,380 people] thought that the disintegration of the motherland was a "real threat". Yesterday's Komsomolskaya Pravda newspaper printed a map for its readers showing how Russia might look by 2015 if the CIA is right. It showed Siberia broken up into 4 different countries, with W Russia similarly partitioned. It is not for nothing that president Vladimir Putin's party is called United Russia. According to the CIA, some of Russia's eastern regions are so rich in natural resources such as oil and gas that they will opt to break away from Moscow, which they have long accused of poor governance. Komsomolskaya Pravda was dismissive of the report. "Either the CIA has super perspicacious analysts who can see what mortal Russians, including politicians and political scientists, cannot, or someone has got it wrong," it said. Boris Gryzlov, the speaker of the Russian parliament, said: "I completely reject the possibility of Russia breaking up. "Over the past 4 y, a lot has been done to strengthen vertical power and legislation in the constituent parts of the Russian Federation was brought into line with the constitution a long time ago." According to the CIA report, a falling birth rate meant that the country's population was likely to decline to 130 mn by 2015 from 146 mn today. It also painted a picture of Russia as a terminally ill patient. "The Soviet economic inheritance will continue to plague Russia," the report said. "Besides a crumbling physical infrastructure, y of environmental neglect are taking a toll on the population, a toll made worse by such societal costs of transition as alcoholism, cardiac diseases, drugs and a worsening health delivery system. Russia's population is not only getting smaller, but it is becoming less and less healthy and less able to serve as an engine of economic recover." Dmitry Orlov, the director of Russia's political and economic communications agency, claimed the CIA had an ulterior motive. "The conservative wing of the American Republican party is interested in the maximum weakening of Russia's position and maybe even in its fragmentation," Mr Orlov told the Izvestia newspaper. PM costs Italy its media ranking Rome (Guardian). Silvio Berlusconi's hold on the media was blamed yesterday for Italy being downgraded in a global survey of press and TV freedoms, to the same "partly free" class as Albania, Mongolia and Burkina Faso. The latest blow to its democratic credentials came as the senate gave final approval to the controversial media bill which opponents of Mr Berlusconi's govt say is tailored to the interests of his vast media empire. The independence of TV in particular will be a key theme in the campaign for the local and European elections in mid-Jun. Earlier this wk one of country's best-known broadcasters resigned to stand as a candidate for the centre-left, saying the publicly owned RAI network was trimming its news coverage to please the govt as never before. And earlier this m the European parliament singled out Italy as the country in which the media was concentrated in fewest hands. All 6 main TV channels are answerable, directly or indirectly, to the PM, Mr Berlusconi. Explaining its decision, Freedom House, a non-profit organisation partly financed by the US govt, said yesterday: "Berlusconi's substantial family business holdings control the 3 largest private TV stations and one newspaper, as well as a significant portion of the advertising market. As PM, he is able to exert influence over public service broadcaster RAI as well." Freedom House assessed 193 countries and ranked Italy 74th, below Mali and Benin. The UK was 37th. The last place went to N Korea. Jointly top of the list were Denmark, Iceland and Sweden. The organisation concluded that 5% less of the world's population now lived in countries with media classed as free. "Some of the most serious setbacks took place in countries where democracy is back-sliding, such as Bolivia and Russia, and in older, established democracies, most notably Italy," it said. The legislation approved yesterday is a revamped version of a bill the president, Carlo Azeglio Ciampi, refused to sign last y. He is bound by the constitution to approve the revised text. US military "pressuring" journalists Al-Jazeera: accused of taking an "anti-coalition stance" Baghdad (Guardian, 14 Apr 2004). The US military has been accused of threatening the media covering the conflict in Iraq and pressuring journalists into presenting a one-sided picture of events. Al-Jazeera, the Arab TV channel, made the accusations after a US army rep, Brig Gen Kimmitt, accused the station and the Dubai-based al-Arabiya news channel, of taking an "anti-coalition" stance in their reporting. The already fractious relationship between the US military in Iraq and Arab media has been made more difficult by pictures of wounded civilians within the besieged town of Fallujah. The American Admin in Iraq accused al-Jazeera of exaggerating the number of civilian casualties and helping to boost anti-coalition sentiment. The US marine cmdr in charge of Fallujah has said the majority of the estimated 600 people killed in the 4-day conflict were legitimate targets, saying, "95% of those were military age males that were killed in the fighting". However al-Jazeera and al-Arabiya have repeatedly shown pictures of women and children among the dead and injured. In a statement the TV channel said the US military was putting "unjustified pressure on the media". "Al-Jazeera rejects these accusations and considers them a threat to the right of the media to cover the reality in Iraq amid a difficult and complex situation on the ground." Al-Jazeera's accusations follow suggestions that US soldiers fired on a reporting team from the station based in Fallujah and had made the removal of al-Jazeera's crew from the town one of its terms for a ceasefire with the rebels. A rep added that the station felt compelled to make it clear to viewers that it was broadcasting an unbiased account of events in Iraq. "We felt it was a grave accusation and wanted to set the record straight. Al-Jazeera is determined to maintain its professional integrity and reporting in a balanced way," he said. Al-Jazeera's claims come amid increasing concern that the mounting dangers facing W journalists in Iraq could mean the end of independent reporting from the country. * "We will not operate outside Baghdad" James Hider, a Times reporter who is embedded with US Marines nr the front line outside Fallujah, said the threat of kidnapping had become so acute that the majority of W journalists were no longer venturing beyond Baghdad. "It was very serious even before the current situation, but for the past month it has got much worse. The kidnappings and shooting are coming thick and fast. "We've more or less decided not to operate outside Baghdad. A lot of pretty seasoned war correspondents have decided it's not worth the risk," Hider told MediaGuardian.co.uk. Hider, whose colleague Stephen Farrell was kidnapped and eventually released last wk, said the only way he and a group of other W media personnel had made it to Fallujah was on heavily armed US helicopter gunships. Francis Harris, the deputy foreign news editor at the Daily Telegraph, said the situation in Iraq could get to the stage where the paper would consider withdrawing its reporters. "It could come to that. What would trigger an exodus is something bad happening to a Brit journalist. "If that happens you'd get to a situation like Beirut in the 1980s, when everybody left except a hardened few." * "If bandits are after cash you are in real trouble" Hider said the journalists who were most at risk of kidnapping were those with little experience of the country or those who were on short-term visits. "A lot of people come in on short-term visits and pick up drivers and translators not knowing who they are. There have been a few kidnappings that have had the look of inside jobs. So we work with a trusted pool of drivers and translators." In spite of the increasingly serious situation in Iraq, Hider said he believed the W press would stay even if journalists were restricted to Baghdad and the Palestine Hotel, which is being used as a base by most foreign journalists in the country. "The Palestine Hotel is pretty much unassailable. It's unlikely journalists would be driven out, it's just that then the danger is that you couldn't get the story." He said the real threat to journalists came from bands of Iraqi insurgents unconnected with the main resistance group. "The level of danger depends on who you get kidnapped by. If it's the hard core resistance, they are fairly disciplined and want journalists to come in and see what the US is doing. If you get taken by some dodgy group that's little more than a group of bandits that have decided to join up with the resistance movement or are after cash, then you are in real trouble." * Movement of Brit journalists restricted The Daily Telegraph currently has its staff reporter, David Blair, and freelance stringer, Jack Fairweather, on the ground in Baghdad, but Harris said their movements were being hampered by the growing danger from kidnappers and resistance fighters outside the capital. "It has greatly limited their ability to travel outside Baghdad. "They are being considerably more cautious than they were before this trouble began. But inevitably in order to do the job, they need to talk to people. It's never been the policy of this paper or any other Brit paper to have reporters go around in forests of guns to guarantee their security," he said. "If it becomes too dangerous you end up with journalists locked up in secure zones interviewing each other and relying on the authorities for info," he said. Over the past week, as well as Farrell, a French journalist, 2 Japanese and 2 Czech journalists have been kidnapped along with a growing number of foreign contract workers. Hider said most experienced journalists had been using ordinary Iraqi cars and were accompanied by a trusted driver and translator when venturing around Baghdad or to other towns. But even with extra precautions such as tinted windows and disguises, Hider said travelling on the roads to key areas such as Najaff and Kut was now deemed too dangerous by most journalists. On his last drive outside of Baghdad -- to Najaff -- Hider said he and his colleagues had had to run the gauntlet of burning vehicles and shooting on either side of the road. "The danger has been being mistaken for a contractor. The number one rule is, don't be driven around in a big white 4x4 like the ones used by contractors, because they are basically bullet magnets. Govt urged to condemn alleged Iraqi prisoners abuse Canberra. The Fed Opp'n has called on the AUS Govt to be forthright in its condemnation of the alleged mistreatment of prisoners at an Iraqi prison. A US TV program has shown photos of naked prisoners being forced to simulate sexual acts. Other pictures show a man with wires attached to his genitals. Labor's foreign affairs spokesman Kevin Rudd told the ABC's Lateline program, Australia has responsibilities as an occupying power to help prevent such incidents which have the potential to destabilise an already fragile situation. "I think once this hits the Al Jazeera network and more widely across the Middle East it's not going to help things," he said. "It may attract further jihadists from outside Iraq into Iraq and in terms of the existing fragile basis of support within Iraq, it's simply not going to help." US general under scrutiny in Iraqi prisoner case The incidents are alleged to have occurred at Abu Ghraib prison. Baghdad (Reuters). The US military is weighing disciplinary action against the Army general who was in charge of a prison on the western outskirts of Baghdad where American troops were accused of abusing Iraqi prisoners, according to officials. The CBS News program 60 Minutes II on Wed aired photographs taken at the prison late last year showing American troops abusing some of the Iraqis held at the Abu Ghraib prison, a notorious centre of torture and executions under toppled president Saddam Hussein's govt. The pictures showed US troops smiling, posing, laughing or giving the thumbs-up sign as naked, male Iraqi prisoners were stacked in a pyramid or positioned to simulate sex acts with one another. One Iraqi man had a slur written on his skin in English. Another was directed by Americans to stand on a box with his head covered, and wires attached to his hands, and was informed that if he fell off the box, he would be electrocuted. Brig Gen Janice Karpinski, in charge of the prison, could be relieved of her command, blocked from promotion or receive a letter of reprimand after a non-criminal administrative investigation relating to events at Abu Ghraib prison, said Col Jill Morgenthaler, a military spokeswoman in Baghdad. Brig Gen Karpinski, who left Iraq earlier this year as part of a scheduled rotation of US forces, "might be determined to be blameless", Col Morgenthaler said. "We found it very abhorrent that American soldiers indulged in those acts of humiliation. And second of all, they photographed these acts. It's very shameful." * Swift response Lt Gen Ricardo Sanchez, the top US officer in Iraq, "responded swiftly" upon learning of the conduct with criminal and administrative investigations, Col Morgenthaler said. The US military now holds several thousand prisoners at Abu Ghraib, most of them rounded up on suspicion of carrying out attacks against US-led forces. The US military announced on Mar 20 it had brought criminal charges against 6 soldiers with the 800th Military Police Brigade, which could lead to court-martials. The charges, stemming from a probe launched in Jan, relate to accusations of abuses carried out in Nov and Dec 2003 on around 20 detainees at the prison. The charges included indecent acts with another person, maltreatment, battery, dereliction of duty and aggravated assault, Col Morgenthaler said. She said a non-criminal administrative investigation also has resulted in recommendations of disciplinary action against 5 officers and three other service members. [After 36 hrs...] Howard condemns Iraq prisoners' alleged treatment Canberra. PM John Howard has condemned the treatment of Iraqi prisoners by the United States military. Photographs were aired on an American TV network yesterday, showing prisoners stacked in a human pyramid and one detainee standing on a box with a hood over his head and wires attached to him. The photos were taken at a prison near Baghdad where US Military Police are holding and interrogating hundreds of captured Iraqis. Six Military Police members are now facing court martial over the prisoner's treatment. Mr Howard told Southern Cross Radio what has allegedly occurred is not helpful. "I was appalled but I note immediately they are court martialling people," he said. "People who did far worse than that under Saddam Hussein were promoted, they weren't court martialled. "They were lauded, they were encouraged, it was an instrument of state policy to do far worse than that." US stations to boycott troop tribute [In a fit of corporate projection, Sinclair officials say "Nightline" has a political agenda. They say, instead of broadcasting the names of dead soldiers, the program should recite the names of 1000s of people that have died in terrorist attacks since 9/11, incl those who died in the WTC attacks. "Nightline" has responded with "we have already, STOO-pid"]. NY (Reuters). A major TV chain, the Sinclair Broadcast Group, is barring its ABC-affiliated stations from airing a planned Nightline tribute to fallen US troops in Iraq, saying the program is a political statement disguised as news. ABC News plans to devote Fri's entire Nightline segment to the tribute, with anchor Ted Koppel reading aloud the names of hundreds of fallen American servicemen and women as their photographs are shown. The network's intentions drew a denunciation from Sinclair, a Baltimore-based owner of 62 TV stations in 39 markets reaching roughly 24% of US TV households. Sinclair says the Nightline segment "appears to be motivated by a political agenda designed to undermine the efforts of the United States in Iraq". In a statement posted on its website, the broadcast group accuses Koppel and his show of seeking to "highlight only one aspect of the war effort and in doing so to influence public opinion against the military action in Iraq." An ABC News spokesman says Sinclair's decision to pre-empt Fri's Nightline on its stations would remove the program in at least 7 markets: St Louis, Missouri; Columbus, Ohio; Charleston, West Virginia; Pensacola, Florida; Springfield, Massachusetts, and Asheville and Winston-Salem, North Carolina. Sticking to its plans, ABC News defends the planned broadcast as "an expression of respect which simply seeks to honour those who have laid down their lives for this country". In an interview with Internet media report Poynteronline, Koppel himself rejects the notion that he is out to make a political point. "Just look at these people. Look at their names. And look at their ages. Consider what they've done for you. Honour them," Koppel said. "I truly believe that people will take away from this program the reflection of what they bring to it." Sinclair's boycott drew a sharp rebuke from U.S. Rep. Maurice Hinchey, a New York Democrat and leading congressional critic of newly relaxed media ownership regulations adopted last year by the Federal Communications Commission. "The decision by Sinclair to keep this program off its stations is being made by a corporation with a political agenda without regard to the wants or needs of its viewers," Hinchey said. "This move may be providing a chilling look into the future if we allow media ownership to be consolidated into fewer and fewer hands." A Washington-based liberal think tank, the Centre for American Progress, cites campaign contribution reports showing Sinclair executives have donated more than $130,000 to President George W Bush and his political allies since 2000. Bush losing public support over Iraq ...Americans have become much less positive about both the rationale for the war and about the way the war is progressing -- Gallup NY (AFP/Aljazeera). Approval for Pres Bush's handling of Iraq drops to 41% American support for Pres George Bush over Iraq is wavering as unrest and the US death toll mounts. The 100s of military deaths in the y since Bush declared major combat over, the failure to find WMD and the fraying of the occupation have all shaken many Americans. But until recently a majority had shown confidence in Bush, who faces a presidential election in 6 m. According to a NY Times/CBS poll published on Thu, however, the number of Americans who feel the 20 Mar 2003 invasion was justified has fallen to 47%, from 58% a m ago and 63% in Dec. Approval of Bush's handling of Iraq has dropped to 41% from 49% last month and 59% in Dec. * Lowest ratings Bush's overall approval rating dropped to 46%, the lowest of his presidency and 3%age points lower than last m. It was 89% after the Sep 11 attacks, and 71% at the start of the Iraq invasion. In the polls, 46% said the US should have stayed out of Iraq, up from 37% a m ago while 58% said the results of the invasion were not worth the loss of American lives, up from 54% a m ago. A USA Today/CNN/Gallup poll of 3,444 Iraqis released on Thu showed they were growing weary of the occupation, with 57% wanting the US-led occupation out immediately, despite fears it could place them in greater jeopardy. While 61% of Iraqis felt the invasion to oust Saddam Hussein as president was worth it, 46% said it did Iraq more harm than good. * Kerry struggles But polls do not show a major swing of support for Democratic presidential contender John Kerry as events in Iraq worsen. A Gallup poll released this m found that 48% of adults supported the Republican president, while 46% supported John Kerry. "Over the last 12 m, Americans have become much less positive about both the rationale for the war and about the way the war is progressing," the Gallup organisation said. "Yet even now, there is a majority [albeit a bare majority] who support the basic concept of the US presence in Iraq. As long as that majority holds, Bush will continue to be able to hold off his critics," it added. Poll: Americans' support for Iraq war falling NY (VOA). A new poll finds that Americans' support for the war in Iraq has dropped sharply in the last m. Less than 1/2 of those surveyed, 47%, say the United States did the right thing by taking military action in Iraq. That number is down from 58% in Mar and 63% back in Dec. The poll by The NY Times and CBS News measures Mr Bush's approval rating at 46%, down 5% from the same poll in Mar and down more than 20% from 1 ya. The drop comes after a m of attacks and clashes in Iraq that have killed at least 125 US military personnel. Like other polls, the new survey shows a close race between Mr. Bush and his main challenger in the Nov election, Democrat John Kerry. Asked who they would vote for if the election were held today, 46% of registered voters said they would vote for Mr Kerry, 44% for Mr Bush. When independent candidate Ralph Nader was factored into the race, Mr. Bush came out slightly ahead, suggesting that Mr Nader is drawing most of his support from voters who would otherwise support Mr Kerry. The poll of 1,042 Americans was conducted last weekend. Polls reveal Iraqi opp'n and fall in US support for war Washington/Baghdad (Independent). In a particularly ominous turn for Pres George Bush, opinion is hardening in both the US and Iraq against his handling of the Iraq conflict, amid rumblings of unease in the military and among diplomats at the course of events there and the Middle E as a whole. According to a NY Times/CBS News poll, for the 1st time less than half of Americans -- 47% -- now believe it was the right decision to invade Iraq. Support has slumped from 58% just last m, 63% in Dec, and over 70% when the war began. That finding coincides with a no less alarming survey of the mood within Iraq itself. The basic message of a new CNN-USA Today poll is that ordinary Iraqis are glad that Saddam Hussein has gone but feel less secure than when he was in power. They no longer regard US forces as liberators, but as heavy-handed occupiers. By a 56-37 majority, Iraqis would prefer US and Brit troops to leave their country at once. Over 2/3 believe that, during military operations, US forces are "not trying at all" to protect ordinary civilians from being killed or wounded. Almost 3,500 Iraqis, from all sections of the population, were interviewed, in the biggest exercise of its kind yet. Opinion is split on whether Iraq as a whole is better off as a result of the invasion, although a clear majority say they personally and their families are financially better off. However, the poll includes the semi-autonomous Kurdish areas of Iraq, where support for the invasion was almost 100%. In Baghdad itself, by a 3 to one majority, people now believe the war has done more harm than good. 2/3 of Baghdadis say the current attacks against US forces are sometimes or always justifiable. Much of the polling, moreover, was carried out before the latest upsurge in violence, and the flare-ups in the cities of Najaff and Fallujah. It is very difficult in Baghdad to find anybody willing to say a good word for the US. "The Americans really have made a terrible mess of it," complained Dr Mahmoud Othman, veteran opponent of Saddam Hussein and a member of the US appointed Iraqi Governing Council in Baghdad. "People in Baghdad, a y after the US took over, are afraid to leave their homes even in the daytime. That is real failure." Abu Amir, a shopkeeper in the middle-class Jadriyah district of the capital, said: "Under Saddam, I sometimes did not make money in my store but I could go home in the evening without worrying if my son had got back safely. Now there is looting everywhere." The mood is no better on the home front, on the eve of the 1st anniversary of Mr Bush's "Mission Accomplished" appearance on the aircraft carrier Abraham Lincoln, in which he announced an end to "major combat operations" in Iraq. Speaking in Denmark yesterday, Colin Powell, the Secretary of State, conceded the US military had faced "tough" wk in Iraq. When casualties were rising, he said, "this causes people to stop and think and reflect, 'What are we doing?" Gen Powell was speaking hours after 10 more US soldiers were killed in Iraq, 8 of them in a car bombing nr Baghdad. At least 126 US servicemen died in Iraq in Apr 2004, making it the bloodiest m of the conflict by far. During the 7-wk war proper, only 109 US troops were lost to hostile action. During a teleconference with Mr Bush this wk, Gen John Abizaid, head of US Central command and in overall charge of the Iraq campaign, is said to have expressed his fear that if the Fallujah and Najaff rebellions were quashed, the fighting might nonetheless spread. Gen Abizaid is also worried that more Iraqis were not opposing the insurgents. The Pentagon, meanwhile, is urgently shipping more heavy armour to Iraq, after complaints by cmdrs on the ground that existing equipment offers insufficient protection. The growing criticism of the Admin's Iraq policies is not translating into increased support for Sen John Kerry, Mr Bush's probable Presid'l election opponent in Nov. According to the New York Times/CBS poll, the 2 are still virtually tied. Manifesto may hold key to Blair's future London (Guardian). Tony Blair's long-term political future as PM may depend on whether he can secure a radical third-term election manifesto bearing his personal imprint, some of his closest aides believe. They say that discussions under way at the top of the party will decide whether he has to settle for a safety-first manifesto largely based on the govt's successful economic record or achieves a ground-breaking platform that might galvanise his demoralised troops. Blairites fear that the "safety-first" mandate is the preferred option of the chancellor, Gordon Brown. That assumption infuriates the Brown camp: the chancellor's aides point out that he is pushing the radical theme of personalised welfare services. The dispute is unlikely to be resolved during the 3-y spending review and the writing of dept'al 5 y plans. Mr Brown and Mr Blair are cooperating better than for some time, but the PM is suffering an unprecedented torrent of speculation that he will be forced to stand down before the election, or soon after a 3rd term victory. The health secretary, John Reid, tried to end the speculation, saying: "If the Brit people are willing and God is willing, Mr Blair will serve a full 3rd term." In truth, no snr Labour politician can say anything else, and few can have any idea if they are speaking the truth. The speculation has been given fresh impetus by the sense that Mr Blair's authority has been drained by the muddled handling of recent announcements and the sense that the decision to hold a referendum on the European constitution was forced upon him. Yesterday he won the support of 5 cabinet members on the referendum decision, including that of Charles Clarke, the education secretary and one of the bruised egos most aggrieved at the lack of consultation. Mr Blair told the cabinet that some of the announcements made in the past fortnight, including the European referendum, identity cards and immigration, had been difficult, but would strengthen the party in the long term. Ground had been cleared for Labour to fight the European and local elections on the party's economic and public services agenda, Downing St said. The party is still convinced that there is a contrast between the electorate's local optimism about the state of improving public services and its nat'l pessimism. Labour will launch its local election agenda on Tue, hoping to make inroads in some of the metropolitan seats lost 4 y ago. Yesterday's announcement of limited capping of "overspending councils" may help. The party is insisting that it will run distinctive European and local campaigns, built around the theme that Brit is better under Labour: Don't Let the Tories Wreck, a reversal of a familiar Tory postwar election slogan. The triumvirate of Gordon Brown, the party chairman Ian McCartney, and the deputy PM John Prescott will take charge of the election grid, the schedule by which the party plans announcements. Mins know that they will have difficult talks on the future constitution of Europe at important inter-govt'l talks during the campaign. But Mr Blair is about to make a big speech on education on Sun, trying to prove that he still has a strong vision for the domestic issue most closely associated with him. New searchable database charts Bush/Cheney lies Op/Ed (Daily Mis-lead). As the Sep 11th Commission grills Pres Bush and VP Cheney about their contradictory statements today, we wanted to alert you to a powerful new tool to help journalists, activists and the public compare the Bush Admin's claims against well-documented facts. The Center for American Progress today launched a comprehensive Claim vs Fact database at that documents statements from conservatives like Pres Bush, VP Cheney, Members of Congress and Fox News personalities, and compares those statements to the facts. Each fact is sourced, and in many cases includes a web link directly to that source. The database has more than 400 entries so far, but THEY NEED YOUR HELP BUILDING IT. If you know of a lie, distortion or dishonest statement from a Bush Admin official or another conservative that isn't already in the database, please go to their submission page at: or There you can submit an entry for addition to the database, so that the tool grows and becomes a real-time tracker of lies. US terrorism report condemns Iran, praises S Arabia Washington (AFP/Dawn). The US on Thu again condemned Iran as the world's leading "state sponsor of terrorism" but praised Saudi Arabia, which it said had made significant strides in combating extremist violence. As in prev ys, the State Dept identified Iran as the chief exporter of terrorism in its annual "Patterns of Global Terrorism" report, accusing the Islamic republic of fomenting terrorist attacks throughout the Middle East, particularly against Israel. "Iran remained the most active state sponsor of terrorism in 2003," the report said, maintaining that Tehran's intel and security services were responsible for supporting extremist groups and that the country had failed to meet pledges to act against Osama bin Laden's al-Qaeda network. Iran's "Islamic Revolutionary Guard Corps and Min'y of Intel and Security were involved in the planning of and support for terrorist acts and continued to exhort a variety of groups that use terrorism to pursue their goals," it said. The most egregious of these actions were Iran's continued funding of and arms transfers to Palestinian "rejectionist groups," its attempts to thwart the efforts of the US-led coalition in Iraq and its refusal to turn over al-Qaeda operatives it says are in custody, according to the report. "During 2003, Iran maintained a high-profile role in encouraging anti-Israeli activity, both rhetorically and operationally," it said, citing Tehran's backing for Hezbollah, Hamas, Palestinian Islamic Jihad and the Popular Front for the Liberation of Palestine-Gen Command. All of those groups are designated "foreign terrorist organisations" by Washington and subject to US sanctions, as is Iran. The report said Iranian officials had encouraged Palestinians to carry out suicide bombings against Israeli civilians and cited comments by a member of the country's conservative religious leadership urging Iraqis to follow that model in combating the US-led coalition there. It also suggested that after Saddam Hussein's ouster in Apr, Iranian operatives tried to sow discontent with the occupation among Shias in southern Iraq and that elements of the govt assisted members of terrorist organisations in escaping the coalition. Other Middle E nations, with the exception of Syria and Lebanon, had positive records in fighting terrorism in 2003, with Saudi Arabia being singled out for exceptional work after deadly suicide attacks in Riyadh in May and Nov. Saudi Arabia has come under heavy criticism from US lawmakers for its alleged unwillingness to deal with extremism, which manifested itself in the fact that it was home to 15 of the 19 hijackers involved in the Sep 11, 2001 terrorist attacks on the US. * PRAISE FOR S.ARABIA But the report lauds Saudi actions taken since then. "I would cite Saudi Arabia as an excellent example of a nation increasingly focusing its political will to fight terrorism," the State Dept counter terrorism coordinator, Cofer Black, wrote in the introduction to the report. "Saudi Arabia has launched an aggressive, comprehensive and unprecedented campaign to hunt down terrorists, uncover their plots and cut off their sources of funding," he said. "I have been greatly impressed with the strides they have made and their seriousness of purpose." Jordan and Morocco -- both of which were sites of terrorist attacks in 2003 -- were also cited for their cooperation in the global war on terrorism, as were Algeria, Egypt, Israel, Tunisia and the Gulf states of Bahrain, Oman, Qatar and the United Arab Emirates. Terror attacks "at 30-y low" Washington (BBC). Saudi Arabia has cracked down after several attacks US govt figures suggest that terrorist attacks have fallen to the lowest level for more than 30 y. The annual report records a slight fall in the number of internat'l attacks last y and a dramatic decrease in the number of victims. The report says that less than half the number of people lost their lives in such attacks last y compared with the y before. However, most of the violence in Iraq has not been included in the figures. The US govt routinely labels many attacks on coalition forces as terrorism, but these do not fit within the report's definitions. * Progress Nevertheless, the State Dept coordinator for counter-terrorism, Cofer Black, said there had been significant progress since the US declared a war on terror in the wake of the 11 Sep attacks. He said that last y there had been unprecedented cooperation between the US and foreign countries to defeat terrorism. The report goes out of its way to praise the work of Saudi Arabia in fighting terror in the wake of 2 major attacks in the country last y. The State Dept says the attacks galvanised the Saudi govt into action, although the clear implication is that Saudi Arabia was not doing enough before then. The report also criticises some familiar targets. Iran and Syria are among the countries still condemned as state sponsors of terror. Such state sponsors, argues the report, provide a critical foundation for terrorist groups. US says terrorism down, but not in Iraq Washington (AP). There were fewer internat'l terrorist attacks last y than any other y since 1969, the State Dept said Thu, although it didn't include most of the violence in Iraq. Though Bush Admin officials frequently refer to Iraqi insurgents as terrorists, most attacks in Iraq were not considered internat'l terrorism because they were directed at combatants, the report said. "Increasingly, the line between insurgency and terrorism has been blurred by anti-coalition attacks that have included suicide car bombings at police stations, an Italian military police base and the HQ of the Internat'l Red Cross," the State Dept said in its annual report on terrorism. The 181-page Patterns of Global Terrorism Report offered a country-by-country review of terrorist attacks and cooperation in fighting terrorism. In its introduction, the State Dept's top counterterrorism official, Cofer Black, cited Saudi Arabia "as an excellent example of a nation increasingly focusing its political will to fight terrorism." The kingdom has frequently been criticised by members of Congress for not doing enough to stop terrorism. Black said terrorist attacks in Saudi Arabia in May and Nov "served to strengthen Saudi resolve." Black also said al-Qaeda "is no longer the organisation it once was. ... Most of the group's snr leadership is dead or in custody, its membership on the run and its capabilities sharply degraded." He said more than 3,400 al-Qaeda suspects have been detained worldwide. In a news conference, he described Abu Musab Zarqawi, a Sunni extremist believed responsible for attacks in Iraq, as "a little bit of an independent actor," sharing al-Qaeda's goals but not requiring its direct guidance. Of the 7 nations designated as sponsors of terrorism, the report said Libya and Sudan "took significant steps to cooperate in the global war on terrorism." But Cuba, Iran, Syria and N Korea didn't do enough to sever their ties to terrorism. Iraq technically remains on the list, because it can't be removed until it has a govt in place. Pres Bush has exempted it from sanctions imposed on state sponsors of terrorism. Black said Iraq would probably be removed from the list after an interim Iraqi govt takes power Jun 30 and shows it is renouncing terrorism. The US has been improving relations with Libya, which Black said could be removed from the list if it demonstrates it has cut ties to terrorist groups. Among the findings in the report: * There were 190 acts of internat'l terrorism last y, compared with 198 in 2002 and 346 in 2001. It was the lowest figure in 34 y. * In those attacks last y, 307 people were killed, compared with 725 in 2002; 1,593 people were wounded, compared with 2,013 in 2002. * 35 Americans died in 15 internat'l terrorist attacks. The deadliest was a May 12 attack by suicide bombers in Riyadh, Saudi Arabia, that killed 9 US citizens and 26 people overall. * Anti-US attacks increased slightly to 82 from 77 in 2002. But they have declined sharply since the 219 attacks in 2001. * Asia had the highest number of internat'l terrorist attacks, with 159 people killed in 70 attacks. Black credited improved internat'l cooperation with the drop in internat'l terrorism. "The world is a far better place now in terms of how we interact with each other," he said. The figures do not include attacks considered to be domestic terrorism in which foreigners weren't among the victims. For example, the report listed three people killed in internat'l terrorism attacks last y in all of Latin America. A nightclub bombing in Bogota, Colombia, that killed 34 people wasn't included because it was considered domestic terrorism. Thai extremists warn tourists to stay away Dozens have been killed in Thailand clashes Bangkok (ABC, Peter Lloyd). An Islamic extremist group suspected of involvement in this week's uprising in southern Thailand has warned foreigners to stay away from the country's main tourist destinations. Britain and Denmark have already upgraded travel advisories but the information provided by the Federal Government remains unchanged. The threat covers resorts popular with Australians including Phuket, Phi Phi and Krabi. The destinations were named in a statement posted on an Internet site run by the Pattani United Liberation Organisation (PULO) an established separatist group blamed for bombing a southern Thai train station 3 y ago. It said the "Pattani people are not responsible for anything [that] happens to you after this warning". It came a day after 108 suspected Islamic separatists were killed in clashes that followed raids on police and army checkpoints in provinces bordering Malaysia. Extra troops are being sent to the region amid fears of more attacks. Meanwhile, the Thai Def Min revealed the authorities believe up to 500 Thai Muslims have been to Syria, Libya, Pakistan and Afghanistan for training. It is the first time a senior minister has conceded the existence of links between Thai separatists and foreigners. Security analysts have long feared international militant networks, such as Al Qaeda and Jemaah Islamiah, might find a fertile recruiting ground among the impoverished region's disaffected Muslim youth. British police release terrorism suspects London. British police have released all 10 people who were detained almost two weeks ago on suspicion of planning terrorist attacks. The 9 men and one woman were arrested in a series of anti-terrorism raids focusing on Manchester in north-west England. At the time, it was speculated that the police had foiled an attack against a Manchester United football match at Old Trafford stadium despite the fact no bomb-making equipment had been found. The security service MI5 and Scotland Yard were also involved in the operation. Several of those who have been released have been re-arrested on unrelated immigration offences and one has been deported to North Africa. Police are refusing to give further details. China on holiday SARS alert at airports, stations Beijing (Reuters). Airports and rail stations across China are checking temperatures of passengers from Beijing and eastern Anhui province for SARS as the week-long May Day holiday approaches, state media said Fri. The Health Min'y has reported 4 diagnosed and 5 suspected cases of Severe Acute Respiratory Syndrome in Beijing and Anhui in recent weeks, including one suspected SARS patient who died on Apr 19 in Anhui. One of the confirmed cases was in critical condition, the ministry said. "Railway stations and airports have been ordered to check the temperatures of all passengers from Beijing and Anhui," the China Daily said Fri. Several countries, fearful of a repeat of last y's devastating SARS outbreak, have started screening visitors from China. China said it had notified foreign visitors that a Beijing disease control laboratory could be the source of the new outbreak. The World Health Organization, which has a team of about 16 people in Beijing and Anhui investigating the latest outbreak, said Fri there was an apparent "chain of transmission" in the cases so far. "What we are saying at the moment is that there is no significant public health threat from SARS in China," rep Bob Dietz said. Hundreds of people have been isolated for observation but life in the Chinese capital is going on at its usual hectic pace, with some getting an early start to the holiday in which scores of mn of people will travel. The China Daily, quoting a snr official with the Nat'l Tourism Admin, said tour-related industries were expected to reap $4.2 bn from countrywide travel next wk. At Beijing's main railway station and airport, virtually no one has been seen wearing face masks, ubiquitous during last y's outbreak of the deadly disease that killed nearly 800 people worldwide. Vietnam, where 5 people died last y, has resumed checks on temperatures of passengers from China, a newspaper said Thu, following a similar move by Thailand. Canada has introduced voluntary screening. SA confirms 5th nat'l killed in Iraq Johannesburg (AFP/Times of India). A S African was killed in Iraq on Thu, the 5th nat'l to die in the conflict, the foreign ministry said. "The S African diplomatic mission in Kuwait has confirmed the death of yet another S African in the ongoing conflict in Iraq," a foreign ministry statement said. Foreign ministry rep Ronnie Mamoepa told the SAPA news agency that Pretoria was concerned about the S African deaths in Iraq "particularly after the call by Deputy Foreign Min Aziz Pahad on S Africans not to go to Iraq ." A Brit military official said in the S Iraqi city of Basra that a civilian, believed to be S African, was killed in a shooting. 2 S Africans died in Jan in Iraq and 2 others were killed in Apr. The defence ministry warned in Mar that S Africans offering security or military services in Iraq without official permission could face prosecution. A former policeman from Pretoria and 5 other S Africans who worked for a company that provides security services to US civilians in Iraq were wounded in a suicide bombing in Jan. A S African security firm, Erinys Africa, has won a $multi-mn contract to protect Iraq 's oil infrastructure. Filipino civilian contractor killed in Iraq Manila (AP). A Filipino civilian contractor has been killed in Iraq, becoming the country's 1st casualty there, the president said Fri. Despite the incident, Pres Gloria Macapagal Arroyo, a staunch US ally, said the govt won't pull out its 41 soldiers, police and health workers from central Iraq, or order the evacuation of about 4,000 workers contracted in the country. "He was a private employee who died in an attack while travelling with other nat'ls," Arroyo said in a statement. She gave no other details, saying the govt was trying to confirm the victim's identity. "Filipinos are in the line of fire helping the Iraqi people rebuild their nation," she said. "This incident does not call for the mass evacuation of our workers, although we are prepared for a calibrated response to any emergency." She added: "I am not inclined to order the pullout of our humanitarian contingent in Iraq since its members are actively involved in ensuring the safety and security of our nat'ls." "Our commitment to democracy and reconstruction is undiminished." Arroyo said earlier this m that the mounting violence in Iraq had prompted her govt to study whether to withdraw its troops -- but she later said they'd stay indefinitely. Many Italians are opposed to the invasion and occupation of Iraq Rome (AFP/Aljazeera). Pope John Paul II has called for 3 Italian hostages to be freed in Iraq, as 1000s of people marched through Rome demanding their release and protesting against the occupation. The families of the hostages led the demo on Thu, stressing they were sending a message of peace, and refused to allow the march to become politicised. Police estimated the turnout at about 3000. The crowd carried a huge rainbow coloured flag, the internat'l symbol of the anti-Iraq war movement, but remained silent throughout the march. The 3 security guards should be freed "in the name of the one God who will judge us all", the pope said in a message read out by his foreign minister, Archbishop Giovanni Lajolo, in Saint Peter's Square. * Vatican prayers Lajolo said the head of the Roman Catholic Church was praying for the hostages in his private chapel. At the end of the march, the Vatican allowed a small number of people onto the square to express their views, though police stopped a group carrying a banner demanding the immediate withdrawal of the 3000 Italian troops from Iraq. Arrangements for the march were made before Italy's main unions refused on Tue to yield to demands by the kidnappers that the traditional 1 May labour marches be turned into protests against the presence of Italian troops in the US-led occupation force in Iraq. The kidnappers, who have already murdered one of 4 men they seized on 12 Apr, Fabrizio Quattrocchi, have threatened to kill the others if the demand is not met. Italy has about 3,000 troops in the US-led occupation force in Iraq and PM Silvio Berlusconi has said they will remain there despite the kidnappings. Pope, Italians appeal for Release of Iraq Hostages Baghdad (Reuters). 10 US soldiers were killed in attacks around Baghdad on Thu, 8 of them in an apparent suicide car bombing just south of the capital, the US military said. The deaths took to 534 the number of US soldiers killed in action since US-led forces invaded Iraq 13 m ago. About 125 of them have been killed in Apr, the bloodiest m for US forces in Iraq since the invasion. The car bomb went off just S of Baghdad nr Mahmudia at about 11.30 am, the US military said in a statement. "A driver in a station wagon approached the task force. Once he was close enough to inflict injury he detonated the explosive device," it said a statement, which did not make clear whether the driver was in the vehicle when it exploded. The soldiers, who were searching for roadside bombs which are a favourite insurgent weapon, were all from the 1AD and the wounded were flown to a Baghdad military hospital by helicopter, it said. Shortly before dawn, a US soldier was killed in a rocket-propelled grenade attack in eastern Baghdad, a separate statement said. At around 10 a.m, a roadside bomb killed a US soldier and wounded another in the town of Baquba, 65 km N of Baghdad. Iraqi police said an Iraqi civilian was also killed in the attack. With just wk to go before the US hands over sovereignty to Iraqis on Jun 30, US-led forces face a growing insurgency. New polls showed Iraqi civilian deaths combined with heavy US losses this m have eroded support for Pres Bush's war plan both among Iraqis and among the Americans who will vote on his re-election in Nov. 8 US soldiers killed in Baghdad area, US military says Baghdad (AP). 8 US soldiers were killed Thu in the Baghdad area, a US military rep said. Media reports said the troops were killed in a car bomb attack, but the rep had no details. The Arab TV network Al-Arabiya reported that the troops were killed in a car bomb explosion in the town of Mahmoudiyah, S of Baghdad. The rep could not confirm the report. The deaths came after another US soldier was killed Thu by a RPG attack on his patrol in eastern Baghdad, the military said. Another soldier was killed and another wounded Thu when a roadside bomb exploded nr their convoy outside the city of Baquba, about 40 km N of the capital, the military said. The deaths raises to 126 the number of US service members killed in combat in Apr, the bloodiest m for US forces in Iraq. The military announced that another soldier died in a vehicle accident in W Baghdad. At least 736 US troops have died in Iraq since the war began in Mar 2003. Up to 1,200 Iraqis also have been killed this m. US to ease Fallujah siege, Iraq death toll leaps Fallujah (Reuters). US Marines agreed to ease their grip on Fallujah Thu, striking a deal to entrust security to former Iraqi army officers in hope of ending a month-long siege which has cost 100s of lives. But new explosions as US jets pounded 3 areas in the volatile city and sketchy details from US officers and local police made it unclear whether the battle with an estimated 2,000 Sunni Muslim insurgents was indeed ending. On one of the bloodiest days of the bloodiest m for US troops in Iraq -- 10 soldiers were killed, including 8 by a car bomb -- any progress toward a peaceful settlement would be welcome news in Washington. Previous deals in Fallujah, notably a cease-fire, have broken down and heavy US air strikes this wk and some tough talk by Pres Bush seemed to herald a possible all-out assault. But Marines and police said troops would now start withdrawing from their siege lines. Fallujah police chief Sabar al-Janabi told Reuters the withdrawal would be completed by Fri. He said US officers seemed to have backed away from insistence on conducting joint patrols with Iraqi forces in the city, where US cmdrs say about 200 foreign Islamic militants may also be operating. A Marine rep at Fallujah confirmed US forces were pulling back from some areas under a security deal agreed with former officers of the Iraqi army. Thousands of people have fled Fallujah, where doctors say 600 died during a first US offensive 3 wk ago in retaliation for the killing of 4 American contractors. A Reuters journalist watched US Marines open fire on a minibus at a checkpoint on the outskirts, setting the vehicle ablaze. Up to 4 civilians died, a policeman said. * EIGHT SOLDIERS KILLED 8 soldiers of the 1AD were killed and 4 wounded by a car bomb nr Mahmudiya, just S of Baghdad, a US military rep said, making at least 10 soldiers dead in 3 attacks Thu. That took to at least 125 the number of US service personnel killed in action this m, far outnumbering the toll in the 3 wk it took to dash to Baghdad and topple Saddam a y ago. In all, 534 have been killed since the invasion of Iraq in Mar 2003. US troops pull back, bombing Fallujah on bloody day Fallujah (Reuters). US Marines have eased their grip on Fallujah, but details of a deal with former Iraqi army officers remain sketchy and new air strikes on the besieged city show a mo insurgency was not over. On another bloody day in the bloodiest m for US troops in Iraq, 10 soldiers were killed on Thu -- including 8 by an apparent suicide car bomber -- in attacks around Baghdad. Within hours of Marine officers and Fallujah's police chief saying troops were pulling back from some siege positions around the Sunni bastion W of Baghdad, US warplanes again pounded districts where as many as 2000 guerrillas are holed up. As darkness fell, gunfire crackled across streets where ambulances raced to the scene of the bombings. Doctors say about 600 people have been killed since Marines encircled the city at the beginning of Apr after the killing of 4 American security guards, whose bodies were then mutilated in public. Previous deals in Fallujah, notably a cease-fire 2 wk ago, have broken down and US air strikes this wk and tough talk by Pres Bush seemed to herald a possible all-out assault. The Pentagon said it had sent more tanks to Fallujah and other restive areas around Baghdad. UN Sec-Gen Kofi Annan urged restraint. US officials are keen to stabilise the country before handing over sovereignty to an interim Iraqi govt on Jun 30. Annan, whose envoy is helping form a new Admin, said more military force could stiffen guerrilla resistance. The 10 latest US combat deaths brought to at least 125 the number of Americans killed in action this m, far outnumbering the toll in the 3 wk it took to dash to Baghdad and topple Saddam Hussein a y ago. A total of 534 have been killed in action since the US-led invasion of Iraq in Mar last y. Faced with violence such as the Baghdad car bomb and armed defiance in Fallujah and the S holy Shi'te city of Najaff, Bush signalled he had given US cmdrs a free hand. "Our military cmdrs will take whatever actions necessary to secure Fallujah," he said on Wed. Bush's opinion poll ratings have slipped in the run-up to the US presidential election in Nov, but Secretary of State Colin Powell said showing US troops were back on top in Iraq could reverse the trend. "Apr has been a particularly bad m for casualties... You can expect this to be reflected in the polls," Powell said. "But I am also convinced that once we deal with this current difficult situation in Fallujah and down in Najaf...people will recognise we are on top of it and the polls will reflect that." Fallujah police chief Sabar al-Janabi told Reuters the US withdrawal would be completed by Fri. US officers seemed to have backed away from insistence on conducting joint patrols with Iraqi forces inside the city, he said. There was no word on previous US demands that guerrillas turn in heavy weapons. A Marine rep in Fallujah confirmed US forces were pulling back from some areas under a security deal agreed with former snr officers of Saddam's old Iraqi army. But it was unclear who the men were or what influence they had over the guerrillas, some of whom, US officials say, are foreigners. Thousands of civilians have fled the siege, a focus for increasing Iraqi dismay with the US-led occupation, especially among the Sunni minority dominant under Saddam. A Reuters journalist watched Marines open fire on a minibus at a checkpoint on the outskirts, setting the vehicle ablaze. Up to 4 civilians died, an Iraqi policeman said. Such incidents have angered many Iraqis who welcomed the fall of Saddam. A new poll conducted before the latest surge of violence showed Iraqis who disliked the outcome of the US-led war to oust Saddam slightly outnumbered those who felt life had improved. Around Najaff, US forces set up roadblocks, tightening a squeeze on the Mehdi Army militia loyal to anti-American Shi'ite cleric Moqtada al-Sadr, who has taken refuge among the shrines. US cmdrs believe they can isolate Sadr and turn factional differences among Shi'ite leaders to their advantage. Sadr is popular with young, disaffected Shi'ites impatient for the power their 60% majority could give them after decades of oppression. But he is wanted over the murder of a rival cleric in Najaff last year and has plenty of Shi'ite foes. In other violence on Thu, a S African civilian was killed in a drive-by shooting nr oil company offices in the S city of Basra. The head of security for the vital N oilfields was wounded in Kirkuk. Brit mulls bigger role in Iraq as US errors raise the stakes London (Reuters). Brit military planners may be concluding that the only way out of Iraq is to plunge in deeper in the hope of reversing dangerous US missteps. A looming decision on whether Brit will send a contingent of troops to replace withdrawing Spaniards could lead to a major shift in the balance of power in Iraq, with London eventually assuming control of the entire Shiite south. This would amount to a major gamble for PM Tony Blair, who is caught between plunging his country deeper into a costly and unpopular occupation, or watching the occupation fail if heavy-handed US tactics backfire. "Does Brit want to be sucked even deeper into this crisis? On the other hand, it's becoming increasingly obvious that the Brits are very worried about what the Americans could do," said Tim Ripley, a military analyst at Lancaster University. "There is a great, great worry about the whole thing completely unravelling if there was a bloodbath ... And the idea that they could take it over and be responsible for the Shiites -- yes, it's a bigger commitment, but it might be safer," Ripley said. As the main US ally, Brit bore a far greater share of the burden of invading Iraq last year than it has in occupying the country since. At its peak during the war to oust former Iraqi president Saddam Hussein, Brit's force of 45,000 troops -- its largest deployment in 50 y -- was about 1/6 the size of the US invasion force. Today, Brit's 7,500 troops patrolling Basra are little more than a 20th the size of the US presence. Much of that slack was taken up by other allies, including Poles, Italians, Spaniards, Bulgarians, Ukrainians, Salvadorans and others, who together outnumber Brit forces 2 to one. That has unquestionably cost Brit clout in Baghdad. Brit patrols Basra, Iraq's comparatively quiet 2nd city in the south, while a Polish-led internat'l force patrols the "south central" zone, the Shiite heartland S of the capital. Spain's withdrawal and an uprising by Shiite militia have led to worries about the long term viability of the 15-nation Polish-led force. "That Polish multinat'l division is slowly unravelling," Ripley said. "The Spanish were part of it. Some of the others who were part of it are either pulling out or thinking of pulling out, or have proved to be militarily ineffective." Brit is discussing sending troops to replace 1,300 Spaniards withdrawing from the Polish-led division. But experts expect that sooner or later London would probably take over command of the Polish division as other allies peel away. The Times of London has discussed a possible plan to send over a Brit-run NATO divisional HQ from Europe. Along with Basra, that would give Brit responsibility for the entire Shiite-dominated S half of Iraq, giving London a more substantial role in what has so far been a US-run occupation. "Together that's half the country. It's where the Brit can be most effective," said Col Christopher Langton, head of the Internat'l Institute for Strategic Studies in London. "I think the Brit will feel that if they get into the central-south they are going to have more influence. The mood here at the moment is that we've got this problem, we've got to look at ways of solving it," he said. There are already signs of such a shift, most notably the arrival in Baghdad 2 wk ago of Brit Maj Gen John McColl, who set up and commanded a Brit-led peace force in Kabul after Afghanistan's Taliban rulers were toppled in 2001. McColl will now take the role of deputy to the US cmdr in Iraq. Brit's military called his arrival "a slight increase in our representation." Brit officers consider the peacekeeping and counterinsurgency tactics needed in S Iraq to be their forte. "They are better at it and have more experience than the Americans," said Ellie Goldsworthy, head of the UK Military Studies program at the Royal United Services Institute. "It may be that it's a good thing for the Brit to extend the area over which they are responsible, because Brit forces are particularly good at managing these types of situations." Langton said the belief was now widespread in the Brit military establishment that heavy-handed US military tactics had made the situation worse by inflaming Iraqi public opinion. "Nobody wants to criticise the effort the Americans have made, but I think they accept -- and the Americans themselves accept -- that they are constrained by their own doctrine," he said. "US military doctrine is a war-fighting doctrine." Brit leaders may hope to persuade the US to exercise more restraint. But the price of influence is boots on the ground, Ripley said. "By skulking in Basra, in many ways they were seen as being peripheral players. The main event is Baghdad, the Shiite holy places, the centre of the country. There is a logic that says 'Get people in because you have more of a say over what goes on,'" he said. Sesame Street heads to Afghanistan LA (AFP). Elmo, Cookie Monster and the Sesame Street gang will help Afghan teachers educate their students, many of whom have never been in a classroom, project sponsors announced on Thu. About 400 kits will be distributed in Afghanistan. They were prepared by the Sesame Workshop, the show's non-profit educational arm, and the Rand Corporation, a non-profit think-tank based in Santa Monica, Cal. The kits include 10 videotapes, each with a 20 minute episode of Koche Sesame the Afghan version of Sesame Street, a teacher handbook, a poster and school supplies. Children will see a dubbed version of the Egyptian show called Alam Simsim, with some material from the United States, said Beatrice Chow of the Sesame Workshop. "Because of the Taliban's repressive regime, a large majority of Afghan children have little or no educational background," said Cheryl Benard, who heads Rand's portion of the project. "This material has been assembled specifically to address the needs of a post-conflict society." Rand and the Sesame Workshop got help from Afghanistan's Min'y of Information and Culture, Afghan teachers and media groups and Afghan-Americans in selecting material for Afghan children. "We are very pleased with this gift," said Sekander Giyam, adviser to the Afghan minister of education. "We need our children to have their eyes and their minds opened to new ideas," he said. The videos will be also shown in women's centres, orphanages, children's centres and in specially equipped travelling vans. Episodes will be broadcast on national and provincial TV but few Afghan families have TV sets. The episodes help teachers with instruction, foster awareness of other cultures, highlight opportunities for women and increase student interest in education and careers. It is funded, in part, by Qatar, which is helping rebuild Afghanistan. Fiji mourns Mara Suva. A predominately Indigenous Fijian crowd has turned out in their thousands in Suva for the memorial service for the late PM and president Ratu Sir Kamisese Mara. The open air service on Albert Park has been led by the Catholic Archbishop of Suva. School children and ordinary members of the Fijian community sat on the side of the road, heads bowed, as a funeral party led by soldiers and traditional warriors accompanied the coffin from Government House to Albert Park. Thousands then sat in the blazing sun during the extended service. Catholic Archbishop Petero Mataca says Mr Mara spent his life working for the unity of Fiji, where every man saw every woman as his sister and every man as his brother. Mr Mara's body now will be taken by boat to his home island of Lakeba for burial on Mon. * "Impressive" atmosphere Australia's FM Alexander Downer says he encountered a most impressive funeral atmosphere at Government House in Suva this morning. He went there to sign the condolence book ahead of the open air funeral service. Mr Downer says Fiji is remembering a great figure of the Pacific, a very traditional and most impressive man who had enormous integrity. This is how Mr Downer described the atmosphere at Government House: "Women sitting down all dressed in black, blowing the shells. The warriors standing by, some of them painted in black, looking like the Grim Reaper really. "It nevertheless is a profoundly impressive atmosphere in that it underlines the sense of sorrow at the death of a truly great chief and it comes through very strongly." Police request calm after Bashir's re-arrest Supporters of Abu Bakar Bashir demonstrate outside Jakarta prison. Jakarta (ABC/Reuters, Tim Palmer). Indonesian police have asked Abu Bakar Bashir's supporters to remain calm today after announcing the radical Muslim cleric would be re-arrested rather than freed from prison as scheduled. The hundred or so members of radical militia-like groups have protested outside the prison all wk. The protesters include the Islamic Defenders Front and Bashir's own Indonesian Mujahedeen Council and will be joined by hundreds more supporters, most arriving from central Java through the night. They have warned there could be violent consequences if Bashir is not freed today when his sentence for immigration charges ends. Police say Bashir will be held under anti-terror laws, citing evidence of Bashir's involvement in training camps and recruitment for the Jemaah Islamiah movement. [Police say they have a document that places him at a JI training camp and appointing militia cmdrs]. Bashir rearrested as supporters riot Jakarta (ABC/Reuters, Tim Palmer). Radical Muslim cleric Abu Bakar Bashir has been released from jail but was immediately re-arrested despite the violent protest of hundreds of his supporters. Bashir was loaded into a grey armoured police vehicle carrying a single black suitcase and taken from Jakarta's Salemba Prison, presumably to the national police headquarters in Jakarta. Police questioned him this week regarding the Oct 2002 bomb blasts in Bali which killed 202 people, but it was not clear under what charges he was re-arrested. "He has been detained. He was released by the penitentiary and we handed him the arrest warrant and then detained him," Maj Gen Suyitno Landung, head of the police criminal investigation department, told Reuters. According to a police warrant shown earlier in the week to reporters when Bashir was being questioned, the allegations against him include terror conspiracy, plotting attacks and the role of Jemaah Islamiah in terror cases. At around midnight local time there were 50 to 100 Bashir supporters outside the jail vowing to stop police taking him. During the night they were joined by hundreds more and negotiations with police began at daybreak. Within half an hour the negotiations had descended into chaos with police using water cannon and tear gas to hold back the stone throwing crowds. They have now driven hundreds of supporters through the streets around the prison and Bashir has been taken away in relative calm. Post workers defended after 70,000 thefts London (Guardian). Postal workers stole 70,000 items of mail last y, resulting in some 300 prosecutions, according to internal Royal Mail figures obtained by the Guardian. The figures suggest that scores of workers could be stealing, according to one industry insider, but Royal Mail said the stolen items, down from just under 107,000 in 2001-02, were just a fraction of the more than 25 bn letters delivered each year. More than 200 items were taken each working day, when 82 mn letters are delivered, but Adam Crozier, chief executive, said the vast majority of the 105,000 delivery staff were "conscientious and honest" and "not only trusted but held in great affection by the public and the company". The revelation came as Royal Mail rounded on a Channel 4 Dispatches programme which last night claimed to expose widespread fraud, theft and ineptitude in the postal service. Mr Crozier said: "If there are any issues raised of any wrongdoing then, absolutely, these people will be dealt with very quickly but also very fairly. We will root it out." Royal Mail employed a team of investigators and prosecutors to monitor postal staff's work, and uses undercover sting operations to weed out thieves, he added. Alex Ricketts, from Postwatch, the consumer watchdog, said: "Royal Mail do vet their staff and the overwhelming majority are honest but every now and then they will get a few bad apples, as you will in any walk of life." But Norman Candy, a London executive member of the Communication Workers' Union, the postal workers' union, said desperate managers were often forced to take on untrained agency or casual staff, many of whom could not pass a basic language test and were given no security check. The CWU claims people with criminal records have been employed and gangs have been operating for up to 10 y. Mr Ricketts said chequebooks, debit and credit cards were the thieves' main targets: "If they're methodical they've got access to all the correspondence, the PIN numbers and then the card." There is also evidence that criminals targeting the mail are becoming more organised. Royal Mail's internal figures show an increase of 43,000 instances of "fraudulent redirections" from the y before, where thieves redirect mail to steal credit cards and PIN numbers. In the Channel 4 programme an undercover reporter got a job in the Paddington office, with the only check on whether he was a criminal being a form he was asked to sign to say he did not have any convictions. On camera the programme captured letters lying on the floor, untrained staff wandering lost through the streets as they try to deliver mail, untrained managers, and working practices reminiscent of the 1970s. One worker tells the undercover reporter that he is working too hard, saying "make it stretch", meaning he should sort letters more slowly. Managers are alleged to have to pay "ghost overtime" to get people to work the 8 hr they are supposed to, otherwise they go home 3-and-1/2 hr early. Postal workers are caught on camera playing football in the office, one running a business selling mobile phones and SIM cards while he is supposed to be working, and another allegedly selling counterfeit trainers. Clumps of mail are dumped around the office rather than being sorted, and letters are sometimes torn to shreds when they become snagged in the antiquated machines: "They lose a lot of letters, trust me", says one postal worker caught on camera. Perhaps most alarmingly the programme also revealed a gang scouring letters and parcels in search of credit cards, cash and passports. Postal workers from one sorting office, who asked not to be identified, denied that theft, laziness and weak management was typical. One 20-y veteran, who takes home #260 for a 40-hr week, said: "It doesn't happen in my office. You go down to any floor, there are no letters or parcels lying around." "You've got cameras all over the place in any sensitive area, it's all recorded. How are you going to take anything?" Another said stealing would be madness for those who want to stay employed in the service: "Anyone working full time for the Post Office would not think of it." But complaints about missing mail are on the rise, according to Postwatch, an independent postal users group. In 2003-4 it received 8,500 complaints compared to 2,500 2 y before. A rep for the mail industry regulator, Postcomm, said it would investigate if Channel 4 had any hard evidence. He added: "As far as we're aware from the Royal Mail figures, they are moving in the right direction. We can't micro-manage Royal Mail." One option could see enforcement action taken against the state-owned company which already faces a hefty fine for missing service delivery targets because of last autumn's strikes. Only 90% of first-class mail is delivered on time, against a target of 92.5%. Mr Crozier, who is due to announce annual operating profits of #200 mn next month after losses of #1.8 bn in the previous 2 y, also took issue with the programme's portrayal of a service in terminal decline, claiming full govt -- and union -- support for the board's modernisation programme. including the shift to a single daily delivery. Productivity and efficiency measures have been agreed at 1,100 of 1,400 delivery offices while Royal Mail is also seeking an end to restrictive practices at some 78 mail centres, although Mr Crozier admitted that some offices were resisting the changes. Book studying cultural gap between Canada and the US wins Donner Prize Toronto (CP). Environics president Michael Adams has won the 2003 Donner Prize for his book Fire and Ice: The US, Canada and the Myth of Converging Values (Penguin Canada). The winner of the $35,000 prize was announced at an awards dinner Thu night. In Fire and Ice, Adams draws on Environics research done in both Canada and the US to show that the cultural gap between the sometimes uneasy neighbours is widening in significant ways. He argues that it is not inevitable that Canadian views will converge with American views despite the presence of American mass culture, free trade and increased economic integration. "A Canadian way of living and thinking will endure well into the future," he writes. "Thought-provoking and well written, Fire And Ice addresses a critical issue that underlies many current policy arguments," said Grant Reuber, who chaired the jury. "Adams' research challenges conventional views and will be widely used by those who make policy decisions -- his research is key to understanding how our fellow citizens perceive the world around them." The 3 other nominees for the prize each received $5,000. They were Hidden Agendas: How Journalists Influence the News by Lydia Miljan and Barry Cooper (UBC Press); Misplaced Distrust: Policy Networks and the Environment in France, the US, and Canada by Eric Montpetit (UBC Press); and The Canadian Senate in Bicameral Perspective by David E. Smith (University of Toronto Press). Filmmaker drops Blue Mountains appeal Wilderness preserved: An appeal against the film ban will not be made. Sydney. A film production company has withdrawn its appeal against a Land and Environment Court decision banning it from filming its Hollywood movie in the Blue Mountains. The court yesterday halted filming of the war movie Stealth in the world heritage listed Grose wilderness because the New South Wales Government's approval breached the Wilderness Act. An appeal by the company and the State Government was to be heard next Wed, with Premier Bob Carr promising to introduce special legislation if it failed. But the company now says it cannot wait until an appeal is heard. It has abandoned plans to shoot in the area because it needs to find another location this week. IAG announces share buy-back details Sydney. The details of a $350 mn share buy-back have been announced by Insurance Australia Group. The former NRMA Insurance will purchase the shares off market with the final price expected to be in a range of $4.00 to $5.00 a share. It will be a tax effective offer for accepting shareholders with a capital component of $1.78 and the remainder to be paid as a fully franked dividend. IAG shares closed yesterday at $4.71. New study ramps up FTA benefits Trade Min Mark Vaile quotes the study as saying the free trade deal will create 40,000 new jobs. Canberra. The Fed Govt has [selectively] released a new study showing the free trade agreement with the United States will provide more economic benefits to Australia than previously thought. The analysis by the Centre for International Economics suggests that 10 y after the agreement comes into force it will be worth more than $6 bn to the Australian economy. That is $2 bn more than the Government forecast. Trade Min Mark Vaile says the study shows the agreement will also lead to the creation of 40,000 new jobs and there will be no impact on the operations of the pharmaceutical benefits scheme. Mr Vaile has again reiterated the price of medicines will not rise. The trade deal is currently being reviewed by two parliamentary committees with the Govt hoping to put legislation before both houses of Parliament in Aug. FTA offers marginal economic benefits: ALP Benefit unknown: Estimates value the FTA at $1 bn to $7 bn. Canberra. The Federal Opposition says a new study into the Australia-US free trade agreement (FTA) shows the deal would provide only marginal economic benefit to Australia. The Centre for International Economics Report estimates the "most probable" effect a decade into the FTA would be a $6 bn benefit to the domestic economy. That is $2 bn more than the Government forecast. The study, which was commissioned by the Department of Foreign Affairs and Trade (DFAT), also suggests more than 40,000 jobs will be created. Trade Min Mark Vaile says the analysis proves the agreement will provide enormous economic benefits. But his Opposition counterpart, Stephen Conroy, is not convinced. "The Government's own report is heavily qualified, what it says is that the benefits to Australia will probably be between $1 bn and $7 bn," he said. "So there are a number of very heroic assumptions in there about the impact on investment." The trade deal is currently being reviewed by two parliamentary committees with the Government hoping to put legislation before both houses of Parliament in Aug. PM John Howard says the latest figures puts renewed pressure on Labor to support the deal. "There is overwhelming evidence of great benefits to the Australian economy, the aggregate figure is in fact bigger than the original one," he said. "I can't understand why the Labor Party doesn't immediately say this free trade agreement is good for Australia and come out and back it." Wheat price claims worry Vaile Overpriced: The AWB is alleged to have been paying kickbacks to the regime of Saddam. Canberra. Trade Min Mark Vaile says he is concerned about reports that the Australian Wheat Board (AWB) may have been selling wheat to Iraq at inflated prices. Newspaper reports claim the United States Defence Contract Audit Agency believes the AWB has been "potentially over-pricing" its wheat by as much as $20 mn. The reports say the extra money was allegedly used to pay kickbacks to Saddam Hussein's regime. The AWB denies the reports. Peter McBride, from the AWB, says they have done nothing wrong. "AWB denies any allegations regarding any kickbacks to the former Iraqi regime," he said. "All the contracts were approved by the UN committee and they were all vetoed and approved by the UN Oil-For-Food Program." Mr Vaile says he has received guarantees from the AWB that its dealings with Iraq have been above board. "They have assured us that they have acted quite transparently and with all probity in and propriety in their dealings in that area because it's been under such public spotlight even before the war," he said. Nurses strike set to escalate Melbourne. The industrial chaos in Victorian hospitals will escalate this weekend with more workers to impose bans. An Australian Nursing Federation (ANF) spokesperson says thousands of Division Two nurses have already imposed work bans to protest against the introduction of "unqualified staff" in public aged care wards and facilities, and secure a fair wage rise and appropriate nurse/patient ratios. The ANF's campaign has already closed more than 1,300 public hospital beds. From Sun, Division Two nurses will stop transporting patients and preparing beds which is expected to have a major impact on the running of hospital wards. Health Services Union spokesman Jeff Jackson says emergency departments will be exempted but the nurses have yet to decide if the Children's Hospital or cancer treatment services will be affected. "It unfortunately will affect the processes inside the hospital," he said. "So regrettably Victorians are having difficulty in getting a bed in Victorian hospitals. "Those who are lucky enough to get a bed unfortunately are going to find some disruption because of this." Govt warns under-performing job providers Canberra. The Federal Government has released performance figures comparing Job Network providers. They show that since Jul 2003, 385,000 job seekers have found employment and in the 4 m to Mar this year, a record number of long-term jobs have been filled. Employment Services Min Mal Brough says the new system of rating and comparing different job network providers is working. He says those providers who have been lagging behind will risk losing funding. "We will be contacting Job Network members who have been under-performing in relation to others saying to them that they run the very real risk of losing some of their business and potentially all of their business to better performing operators in the next 6 months," Mr Brough said. Housing loans jump by 2.1% [Another Aussie interest rate hike increasingly likely. Tipsters say the RBA will add 25 pts next wk to bring the cash rate to 5.5%]. Canberra. There has been a renewed upturn in the amount of money going into housing. The Reserve Bank of Australia has released monthly credit figures showing a 2.1% jump in housing credit during Mar. That is the sharpest rise in 5 m and on an annual basis, housing credit has increased by a record 23.9%. Personal loans have slowed to 1% growth in the month and business credit has decreased by 0.5%. The central bank will hold its regular monthly policy meeting next Tue. Mitsubishi set for extraordinary shareholders meeting Tokyo. Mitsubishi Motors in Japan is preparing for an extraordinary shareholders meeting. A major restructuring plan has been postponed. Japan's 4th biggest carmaker is weighed down by huge debts. It was planning to release a global review of its operations this morning, but news that Mitsubishi's major shareholder, DaimlerChrysler, would not be injecting cash has forced it formulate a new survival plan. That means the uncertainty surrounding the carmaker's SA operations will continue for a few more weeks. An extraordinary shareholders meeting scheduled for today will go ahead. It will consider partial amendments to Mitsubishi's articles of incorporation and the election of two board members. There have been unconfirmed reports that the group will redirect more than $2.5 bn to develop new car models under a restructure. Australian Manufacturing Workers Union national secretary Doug Cameron says he is positive but cautious about the South Australian operations continuing after talks with Mitsubishi management in Adelaide yesterday. "Our position is that we still have to fight to ensure that that new model is built here, we will be writing to Mitsubishi Heavy Industries in Australia, we will be writing to Mitsubishi in Japan, we would be prepared to take a delegation to Japan so that the Japanese company understands the importance of the jobs for South Australians," he said. Ministers plan plea for Mitsubishi future Ministers have put politics aside in a bid to save jobs at Mitsubishi Australia. Canberra. A bipartisan delegation of high-level government ministers will head to Japan within a fortnight to make a personal plea for Mitsubishi's future in Adelaide. Federal Ind Min, Ian Macfarlane, and South Australian Treasurer Kevin Foley will hold direct talks with the company's new chief executive. The ministers, from opposing sides of politics, have a meeting already scheduled with the new Mitsubishi boss, even before he is officially appointed. It will take place in Tokyo on Mon week and Mr Foley says it is an unprecedented approach. "I think it's important that politics is put aside and we demonstrate that local politics means nothing at the end of the day when the future of a work force is in question," he said. "I think it's a good feature of Australian governments that we can work so closely together." The Australian ambassador to Japan, John McCarthy, will also meet the Mitsubishi chairman on Mon to pave the way for the official party. Australia welcomes new Mitsubishi head Mitsubishi has appointed a replacement for Rolf Eckrodt. Adelaide (ABC/AFP). Mitsubishi Australia's managing director, Tom Phillips, has welcomed the appointment of a new president and chief executive for the international car maker. The head of Mitsubishi Heavy Industries, Yoichiro Okazaki, will take over after last week's resignation of Rolf Eckrodt. Mr Eckrodt's resignation follows last week's surprise announcement that DaimlerChrysler has decided against putting more funds into the car maker. Mitsubishi shareholders approved 61-year-old Mr Okazaki's nomination at an extraordinary meeting today. The company had originally scheduled to announce a drastic restructuring plan, supposedly backed by DaimlerChrysler, at the meeting. The Mitsubishi conglomerate now plans to thrash out an alternative plan within a month. Mr Phillips says he has not met Mr Okazaki yet but he is pleased he now has someone to put his case to. "I know very little at this stage," Mr Phillips said. "I've had a look at his CV, he's got a very extensive background in manufacturing through Mitsubishi Heavy Industries and it seems to me that he's a very qualified person to take on this role." Shareholders at the meeting have approved an amendment to articles of incorporation to allow the company to issue up to 3.5 mn new preferred shares with no voting rights to raise fresh funds. They have also voted to bring onto the board one executive each from Mitsubishi Heavy Industries, Japan's largest heavy machinery maker, and DaimlerChrysler. In addition to Mr Okazaki, Mitsubishi has named Eckhard Cordes, widely seen as the right-hand man of DaimlerChrysler chief executive officer Jurgen Schrempp, to be a non-executive board member. Mitsubishi group companies, including trading house Mitsubishi Corp and the Bank of Tokyo-Mitsubishi, have rallied around Mitsubishi Motors. The company has been hit by slumping sales in the key North American market and recall scandals. Nothing untoward about Jones friendship, PM says John Howard says Alan Jones has never threatened him. Canberra. PM John Howard has defended his relationship with radio broadcaster Alan Jones and says he is satisfied Professor David Flint, head of the Australian Broadcasting Authority, is independent. Radio broadcaster John Laws claims Mr Jones told him he pressured John Howard to re-appoint Professor Flint. Both Mr Jones and Mr Howard reject the allegation. "At no stage has Alan Jones ever threatened me. He puts views about things," Mr Howard said. On Southern Cross Radio Mr Howard was questioned about the friendship. "I know Alan Jones, I like him, I don't deny that, but it's perfectly possible to have a friendship without that person exerting undue influence," he said. Mr Howard says he has had a private conversation with Mr Jones since the row erupted but Mr Howard would not detail the nature of the discussion. Mr Howard has also defended his Veterans Affairs Min Danna Vale, who sent a letter of support to Mr Jones yesterday, urging him to "stay brave and true". Latham renews calls for ABA inquiry Labor has questioned Professor David Flints re-appointment as chairman of the ABA. Canberra. The Federal Labor leader says the PM must call an independent inquiry into the Alan Jones affair, after reports John Howard personally intervened to have David Flint re-appointed as chairman of the Australian Broadcasting Authority (ABA). Mr Howard rejected claims this week that broadcaster Alan Jones threatened to withdraw his support for the Government unless it gave David Flint another term as ABA chairman. But today Brisbane newspaper The Courier-Mail has quoted an unnamed former federal minister saying Mr Howard ordered the then communications minister to rewrite a cabinet submission recommending that Mr Flint be replaced. Labor's Mark Latham says the allegation is stunning. "In those circumstances it demands an independent public inquiry to get to the heart of the matter," he said. "To get the facts out there and give the Australian people some piece of mind that we haven't got corruption at the highest level of the Federal Government." Howard disputes intelligence concerns John Howard says he does not agree with complaints by Lt Col Lance Collins over intelligence failures. Canberra. The PM has written to the Army's top intelligence officer, Lt Col Lance Collins, disputing his claims that there have been widespread failures by Australia's intelligence agencies. Lt Col Collins wrote to the PM in Mar, complaining of intelligence failures over the past 8 y, including the Bali bombings. Mr Howard has released his response to the inquiry call from Army Lt Col Lance Collins, as well as a report by the inspector-general of intelligence. In his letter to Lt Col Collins, Mr Howard defends Australia's intelligence gathering and analysis on Iraq's banned weapons programs, warnings about the Bali terrorist attack and the resumption of nuclear testing by India. The PM concedes it has taken too long to deal with Lt Col Collins's concerns about his treatment by Defence. Mr Howard says he doubts the letter will end the debate about intelligence agencies. "I've given him a full response, I promised him a conscientious, courteous reply and that's what I've provided to him," he said. "I'm satisfied on the information available to me that there is no case to have a royal commission. "We have an inquiry going on and that inquiry will report in due course." * Regional accuracy Mr Howard says Australian intelligence agencies have an excellent record in the region. He says Australian intelligence warned of the possibility of a coup in Solomon Islands in 2000. He also says Australian intelligence gave a comprehensive assessment of developments in Papua New Guinea ahead of the Sandline mercenary crisis in 1997. Mr Howard says Australian agencies observed that Indonesia's President Suharto might be compelled to resign some months before he left office. Regional intelligence spot on, says Howard Canberra. PM John Howard says Australian intelligence warned of the possibility of a coup in Solomon Islands in 2000. But Mr Howard concedes that Australia was fooled and did not forecast the Indian nuclear tests in 1998. Mr Howard made the comments in a letter rejecting a call for a royal commission into Australia's intelligence services. Mr Howard has released his response to the inquiry call from Army Lt Col Lance Collins, as well as a report by the inspector-general of intelligence. Rejecting the call for an inquiry, the PM says Australian intelligence gave a clear picture of the problems in Solomon Islands and warned of the chance of a coup before it took place in May, 2000. He also says Australian intelligence gave a comprehensive assessment of developments in Papua New Guinea ahead of the Sandline mercenary crisis in 1997. Mr Howard says Australian agencies observed that Indonesia's President Suharto might be compelled to resign some months before he left office. But he says India's nuclear tests in 1998 were not forecast by intelligence agencies. Panel formed to continue delivery of Indigenous services Canberra. A new national panel has been formed to ensure services to Indigenous people in regional Australia are delivered. The working party was established after a meeting of the heads of the nation's 35 regional Aboriginal and Torres Strait Islander Commission's (ATSIC) councils. Earlier this month, PM John Howard announced ATSIC would be abolished and the regional structure would be phased out next year. Perth Nyoongar regional council chairman Gordon Cole and a former state ATSIC chairman, Barry Taylor, will represent Western Australia. Mr Cole says the panel will fight to make sure Mr Howard does not hand pick the replacement body. "We also will be advocating and negotiating for a structure at a national level also to be in place," he said. "Whilst ATSIC has been announced to be abolished we're also mindful of the fact that we need a democratically elected representative national body to represent the views of Aboriginal people across the country." Children won't automatically return to detention: Howard Return uncertain: The Govt is seeking advice on the High Court ruling. Canberra. The PM says the 5 children involved in the High Court decision that overturned a Family Court ruling releasing them from immigration detention will remain where they are for the moment. John Howard says the Federal Government did not believe the Family Court had the jurisdiction to rule in favour of releasing the children from South Australia's Baxter Detention Centre last year. Mr Howard says the High Court decision validates the Government's mandatory detention laws. But he says the decision does not mean the Government will take the children out of their current care arrangements. "We're assessing it and the Minister and I have sought some advice on that," he said. "But people shouldn't assume that we are going to automatically reverse the current arrangement." The children are living in an Adelaide home. They are attending school in Adelaide and are being cared for by Catholic welfare agency Centacare pending a Federal Court challenge. The children's guardian, Centacare director Dale West, says a compromise is being worked out with the Department of Immigration. "The model that we are discussing is that we would declare it a detention facility and the people who are involved with the children would need to be declared detention officers," she said. "So that would mean that everyone who's in the house with them, they would need to travel with designated people to school and back." Telstra defends price increase Sydney. Telstra customers under the company's most popular fixed-line monthly plan will pay an extra $41 a year under a raft of price increases announced yesterday. Call connection fees will rise two cents, while customers will now be charged extra for paying their bill by credit card. Telstra's head of consumer marketing Jenny Young says the increases are in line with the pricing schedule approved by the Australian Competition and Consumer Commission (ACCC). Ms Young says current fees do not cover the cost of providing the network. "Apart from the reward options that we're giving back for our multiple service customers we've provided continuous innovation with our fixed line network, including talking text, free home messages, call forwarding, call waiting and the list goes on," she said. Ms Young says pensioners will be looked after with an increase in concessions aimed at offsetting the effect of the rises. The Australian Consumers Association has criticised Telstra's decision to increase prices for its telephone services. Association spokesman Charles Britton says the new charges, particularly for line rental, are excessive. "Well 30 bucks a month, it's quite a lot to be shelling out for a fixed line phone rental," he said. Telstra made a profit of $2.9 bn for the 6 m to last Dec. Federal Opposition communications spokesman Lindsay Tanner says the telephone is an essential service and Telstra is making it too expensive. "These price increases are totally outrageous," he said. "Over the past 4 years the price that ordinary families have got to pay just for having the privilege of having a phone in their own home has gone up by $200 a year. "Under John Howard the telephone is becoming a luxury and lots of taxes and charges are going up all the time." PM distances himself from Telstra price rise John Howard says it is ridiculous he should be expected to answer for Telstra. Canberra. PM John Howard has distanced himself from Telstra's decision to increase its phone rental prices. From Jun, there will be an increase in line rental charges of between 60 cents and $3.45 per month for residential customers, and a fee for telephone bills paid by credit card. Mr Howard told Southern Cross Radio he can not control Telstra's pricing decisions but the plan has been agreed to by the Australian Competition and Consumer Commission. "You've got to worry about the people who have invested in the company and the share price is lower than what it was," he said. "Every time the subject of Telstra comes up, I find myself in this ridiculous position of... having to answer for the company." Telstra says the increases are justified but the decision has being criticised because the telecommunications giant has recently recorded a profit of more than $2 bn. A consumer law expert warns the latest price rise is souring the company's relationship with the community. Consumer Law Centre executive director Chris Field says Telstra should take heed of the community's reaction when the banks introduced a raft of higher charges a few years ago. He says the telecommunications giant is now a political hot potato. "Well it is very much given that this is an election year," he said. "Given, of course, some real problems with the governance of Telstra there is no doubt that is a serious political issue and one that Telstra ought to take heed of." Mental health problems no longer taboo, AMA says Melbourne. The Australian Medical Association (AMA) says the latest report from the Institute of Health and Welfare shows there has been some success in making sure GPs do mental assessments on their patients. The report from the institute found between 2001 and 2002, more than 3 mn Australians saw their GP for depression. The report also finds that more than 10 mn GP consultations were for mental health-related problems including depression, anxiety and stress-related diseases. The results suggest more women than men see their doctor for depression and that help was most commonly sought after in the 25 to 44-year-old age bracket. AMA president Dr Bill Glasson says the results show mental health problems are not the taboo subject they once were. "We try and educate our patients that if they've got concerns either physically or mentally to visit their general practitioner to discuss the issue," he said. "I suppose it reflects the success of our general practitioners in this area in both identifying mental disorders and I'm sure in treating those mental disorders even better." More funding announced to tackle drug problem Canberra. PM John Howard has announced additional funding of almost $18 mn to help tackle the country's illicit drug problem. This latest round of funding comes on top of the $1 bn allocated to the national illicit drug strategy since 1997. Mr Howard used a gathering of Queensland police, Liberal Party members including high-profile candidate Ingrid Tall, and anti-drug campaigners in Brisbane to outline further assistance specifically for non-government organisations across the country to provide treatment. "We do know for example that the number of people dying of heroin overdose is continuing to fall," he said. This latest funding commitment comes on the heels of yesterday's $444 mn package for the ailing sugar industry. ALP vows to protect coastline Protection: Labor has a variety of plans to save coastal regions. Canberra. The Federal Opposition has promised to spend $31 mn protecting Australia's coastline if it is elected to government. The plan includes nominating new coastal world heritage areas like Ningaloo Reef in Western Australia. Labor is also promising to propose new wetlands for protection under the Ramsar Convention. Environment spokesman Kelvin Thompson says where necessary the federal Labor government would make strategic investments to protect high conservation areas. "More than 85% of Australians choose to live on or near the coast. But we are in danger of loving the coast to death," he said. "We've got problems with erosion, water quality, clearing of remnant vegetation, so the policies that we are announcing today and talking about are aimed at dealing with one of Australia's critical environmental challenges - protecting the coast." Lack of university places 'wastes talent' Canberra. Federal Shadow Ed Min Jenny Macklin says the number of would-be students missing out on a university spot is a waste of talent. Her comments come as the Australian Vice Chancellors' Committee releases its annual survey on university places. It finds nationally that more than 24,000 applicants missed out on a university spot despite meeting the admission criteria. Ms Macklin says in Queensland more than 6,300 failed to get in. "These are students who want to go to university. They've worked hard, they've got the qualifications, yet they can't get a place at university just because the Howard Government won't create the places," she said. "I think the responsibility on government is to make sure that those students who work hard can get into university and get the education they want." Community service for AFL ticket scalper Melbourne. A Melbourne man has avoided jail after he admitted to selling stolen tickets for last year's Australian Football League (AFL) grand final. Michael Dvorkin, 21, of Caufield South pleaded guilty to handling stolen goods and obtaining property by deception. The County Court in Melbourne heard 100 AFL grand final tickets were stolen from the St Kilda Football Club in Sep last year. The court was told Dvorkin made more than $10,000 dollars by selling 21 of the tickets to footy fans. The tickets were cancelled before the match. Judge Elizabeth Curtain said it must have been extremely disappointing and frustrating for the buyers when they were refused entry to the Melbourne Cricket Ground. Dvorkin was fined $3,000 dollars and ordered to perform 250 hours of unpaid community work. The man accused of stealing the tickets will face a committal hearing in Jul. Diesel Fouls Marsh Near SF SF (AP). A pipeline that pumps petroleum from refineries in the SF Bay area ruptured, gushing diesel fuel into a marsh that serves as a key nesting ground for migratory birds. The spill, which began Tue, prompted an emergency cleanup effort at Suisun Marsh, about 50 km NE of SF. Several dead animals, mostly ducks, were found at the scene, said Coast Guard rep Clare Maranda. State officials estimated that 40,000 gallons of fuel spilled. Initial worst-case estimates had put the spill 1 mn gallons. Kinder Morgan Energy Partners, the Houston firm that owns the pipeline, estimated that 500 to 1,000 barrels, containing 42 gallons of fuel each, leaked into the marsh, rep Jerry Engelhardt said. The spill was mostly contained by Thu and was limited to a diked area of roughly 600 acres, so the fuel couldn't easily escape to the rest of the marsh, officials said. About 50 workers from state, county and fed agencies were using containment booms and absorbent pads to clean up the spill, which left a sheen atop the water. The pipeline, which carries fuel from SF Bay area refineries to Chico, Sacramento and Reno, Nev, ruptured sometime Tue. Kinder Morgan noticed a drop in pipeline pressure around 6 p.m. Tue night and shut down a section of the pipeline, Engelhardt said. Environmental officials were told about it Wed. The broken section of the pipeline would be replaced and back in service by Sat, but it could take several wk or even m to completely clean up the spill, Engelhardt said. The Suisun Marsh is considered California's second-largest natural marsh, according to Greg Green, a biologist for Memphis, Tenn.-based Ducks Unlimited, a wetlands conservation group. But it's also a highly managed area, with large sections diked off to control the flow of water. "It's an important area for biological purposes," Green said. The marsh covers 57,000 acres and is frequented by about 700,000 birds, including migratory shorebirds and raptors. Site of Portuguese shipwreck to stay secret for time being Perth. Marine archaeologists are examining the site of a Portuguese shipwreck off Western Australia's northern coast. The Correio da Azia was discovered yesterday by a Maritime Museum team after a hunt lasting more than 16 y. WA Min for Culture, Sheila McHale, says it is a significant find because it is the earliest historic Portuguese shipwreck to be discovered in Australian waters. She says the location will be kept secret for the time being. "There's likely to be important artefacts on the shipwreck and we need to ensure that those artefacts are recovered, they are identified and that there's a management plan to ensure the site is preserved," she said. Scientist believes Atlantis found off Cyprus Cyprus. The quest to find the lost city of Atlantis has begun in earnest off Cyprus's southern shores. A US-led team of explorers claims the ancient city lies on the seabed between Cyprus and Syria. With the aid of unique underwater maps, a US researcher claims to have assembled evidence to prove the mythological island of Atlantis really existed. Using sophisticated sonar technology, California-based Robert Salmas says he has not only been able to pinpoint Atlantis to a sunken land mass off Cyprus's southern coast, but even discern its geographical features as described by Plato. The alleged discovery has been greeted with barely concealed mirth by the Mediterranean island's tourism office. Space station trio return safely to Earth The 3 have returned safety from the International Space Station. Moscow (Reuters). A Soyuz space capsule has touched down safely in the steppes of Kazakhstan bringing a Russian, a US astronaut and a Dutchman back to Earth from the International Space Station (ISS). NASA's Michael Foale and Russian Alexander Kaleri spent 6 m aboard the 16-nation, $US95 bn station. Dutchman Andre Kuipers, from the European Space Agency, spent just 11 days there doing scientific experiments on his maiden trip into space. The craft landed near the northern Kazakh town of Arkalyk in the Central Asian steppe at 4.11 am Moscow time (0011 GMT). "Everything is stable, the cosmonauts returned to Earth," a spokesman at mission control outside Moscow said by telephone. "It was a soft landing." The capsule had disengaged from the ISS a few hours earlier and started its return to Earth. The start of Kaleri's and Foale's daunting 6-month mission last Oct was heavily overshadowed by China's launch of its first spaceman. But their return is being watched with avid interest amid intense preparations for an operation to locate and find them quickly. A similar Soyuz capsule carrying the US astronauts Kenneth Bowersox and Donald Pettit and Russia's Nikolai Budarin back from the ISS made a hard landing 100s of km off target last May because of a technical glitch that caused an early re-entry. The next ISS crew landed safely with clockwork precision last Oct, even though one member of the crew had apparently hit a wrong button. Gen Vladimir Popov, commander of the recovery operation, said two all-terrain vehicles known as Bluebirds had already been sent to the assumed landing area to check the density of the ground, atmospheric pressure and weather conditions. The capsule's bright orange parachute was due to unfold 15 minutes before the landing, which should have been cushioned by the blasts of several "soft landing engines". Col Mikhail Polukhin, a coordinator of the recovery operation, told Reuters in Kustanai, the main operation centre, that the returning crew would have a satellite phone - a routine precaution against getting lost. Russia has borne the brunt of ferrying crews and cargo to the ISS since Feb 2003 after the United States grounded its space shuttles following the disintegration of the Columbia over Texas, killing all 7 astronauts on board. {{ 1 am Pres Bush and VP Cheney are meeting the 9/11 Commission. No photo, no transcripts and no TV are the result of ms of haggling over the ground rules between the Commission and the Whitehouse. The Bush Admin got the better of the negotiations. The pair will be asked about the priority they gave terrorism before 9/11. The latest opinion polls show a large majority of Americans believe the Bush Admin didn't do enough to prevent the attack. 1 US soldier has been killed in Baghdad, and another in Baquba. The Malaysian govt has urged their Thai counterparts not to make the sit'n in S Thailand worse by reckless military action. PM Badawi said he was "really worried" about events in the S when 100 men were killed by the Thai military and police after they allegedly conducted raids on army and police posts. It's unclear who was responsible for the attacks or what they were trying to accomplish. The PM says they are bandits trying to take control of the drug trade. But that is unlikely, say the Malaysians, given the mosque shoot-out in which 30 young men armed with machetes were killed by the army. 1.30 am 13,000 Cubans are preparing for the chess playing record. Castro and Karpov are taking part. 4 am Several 1000 family members and supporters have marched in Rome, calling on the govt to pull soldiers out of Iraq. In an unusual move, the crowd was allowed into the Vatican city to receive a message from Pope JP2. Al Qaeda is dangerous and hates us. We must be correct 100% of the time. Therefore we are vulnerable. These were the words of Pres Bush after he emerged from a 3 hr drilling by the 9/11 Commission. He said the talks had been wide-ranging and "good", but refused to indicate what had been discussed. We'll have to wait until the end of July for the Commission's report. For the first time only a minority of Americans think GWII was a good idea. The NY Times poll found only 47% of Americans now back the invasion of Iraq, down from 58% only 1 m ago. Midday. Prof David Flint has stepped aside amid a continuing row over the political influence of some radio announcers. The ABA earlier today said it was uncomfortable with the fan letters written by the chairman to radio announcer Allan Jones. The ABA also says Flint will take no part in a case brought by the Fed Govt against the ABC over alleged one-sided reporting of the Iraq war. Flint had previously publicly indicated he supported the govt position in the dispute. 6 pm The "unofficial biographer" of Allan Jones has revealed up to 4 letters between David Flint and Allan Jones, expressing Flint's gushing support. Observers say the missives should rule Flint out as an arbiter of Aussie broadcasting standards. Flint has also come out publicly against the ABC's coverage of GWII, claiming it was anti-American and "biased". That is the same claim the ABA is meant to be investigating -- brought by former Comm Min Richard Alston and the AUS govt. While Flint has not taken a backward step all week, today he essentially backed down on every criticism. He said he'd "forgotten" to declare his letters of support to Allan Jones -- ahead of an investigation of Allan Jones -- due to an "oversight". He says he now regrets writing the letters and they were a "mistake". Someone claiming to be an al-Qaeda cmdr in Jordan has denied the terrorist group was planning a chemical weapon attack in the country, as claimed by the govt. But he ack'ed the group had plans to attack the Intel HQ in Amman. 9 pm PM John Howard has released a new intel report today that he believes supports his lack of concern over the claims of Lt Col Collins. A letter the PM wrote to Collins has also been leaked to the press. In the letter, Mr Howard rejects all Collins' concerns. But he ack's it's taken too long to address his mis-treatment by the AUS def dept. The report is from an official investigation by the Inspector Gen of Intel. While the PM intended it would provide more ammo for his own claims there are "no problems" with Aussie intel and the Def Dept -- despite the failure to predict India's nuclear weapons, Indon involvement in E Timor, the overthrow of the Fiji govt, and the belief that Saddam had WMD -- observers say it may eventually do the opposite. The report reveals there were at least 5 more snr intel officers -- along with the 2 that have come forward so far -- that had the same concerns. Mr Howard had prev tried to claim only a "couple of dissident voices" claimed there were problems in the DIO. The report also indicates the AUS govt had been kean in the past to put the best spin on Indon operations in Timor, despite what the facts on the ground indicated. 11 pm Much of the talk in Fallujah today was aimed at ending 4 wks of fighting. But the Marines were still hammering parts of the city. In other suburbs, they were pulling back. Barbed wire was pushed away, road blocks removed. An Iraqi force will take their place. Much comment has surrounded the appointment of a Saddam-era General to head the so-called Fallujah Protection Force. It's another significant departure from past US policy. The General rec'd a hero's welcome in Fallujah today. It's evidence how desperate we are, said a US commentator. It's also not clear whether the desperate move will pull the US' chestnuts out of the fire. Today AUS Def Min Hill visited the HMAS Stuart off the Iraq coast. He said Aussie forces are playing an important role there, and many more countries should consider supporting the Coal'n efforts in Iraq. }} ======================================== (*) 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! All speling macroizated for correctitood by Mcrosotf Speelchek. *** Please stand by for further orders from The Leader ***