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Former board member concerned over Telstra cl -

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(generated from captions) how Mr Trujillo has been operating In just analysing how or looking at in terms of his relations with the Government down there, it certainly struck a familiar chord

with their aggressive and sometimes arrogant stance toward the government regulators. Tony Mendoza was a United States telecommunications regulator when Sol Trujillo was head of a Minnesota telco five years ago. Mr Mendoza says anti-regulation comments from Mr Trujillo were common -

and the cost of regulation was often used as scapegoat for other management issues. Those statements were probably made

in the interests of increasing his bargaining leverage

in respect to some of the conditions in the legislation authorising the sale of the company, in trying to weaken some of those conditions. Mr Trujillo says regulation could shave $850 million from Telstra's profits and a leaked private briefing document for the Federal Government paints an even bleaker picture. The Australia Securities and Investments Commission is now investigating whether Telstra has met its disclosure duties. Former Telstra director, Peter Redlich says if sensitive information was witheld from the market then it's a big problem for everyone involved. If that in fact occurred, I would have thought it's a serious breach of corporate law. I mean, if management knew this and didn't make it public, that's extraordinarily serious. If the shareholder knew, then that's also extraordinarily serious.

However, Mr Redlich doesn't think the current board will be too distressed by the controversy

over the future of Telstra and he predicts they will stick by Mr Trujillo. I've got to say though, I've got to admire the three amigos because they have brought out into the open the public debate.

Issues that are very relevant to Telstra and should be very much scrutinised by the public and now they are. The head of the Government's regional communications inquiry in 2002, Dick Estens says it's no secret that a huge amount of money needs to be outlayed by Telstra, particularly in regional areas. You know, you've got a lot of copper wire services out there that are been in there far past their use-by date. You know, some of these services are pretty ricketty

and will need upgrading in the next year or two. You know, you can't have situation where Telstra's sold and there's not a fund out there to keep the program rolling. Dick Estens says the National party's $3 billion trust fund is a reasonable way to overcome the regional infrastructure problem and once adequate competition has been reached in the telecommunications industry, it may be possible to loosen regulation. It's really important in rural, regional and remote Australia,

where I think something like 60% of Australia's GDP comes from,

that we have good infrastructure. You know, we're major export earners and it's not about a money grab. It's about, you know, getting the wealth of Australia out there. Telstra released the government briefing document to the stock market today, with a note saying it wasn't intended for public release, but because it had been leaked,

Telstra was now making it available to all shareholders. Corporate law experts say the release of the document

is unlikely to have any affect on the ASIC investigation. Rachel Carbonell, Lateline. Australia's former ambassador to the United Nations, Richard Butler, has accused the United States' government of terrorism over its plans to abandon United Nations targets to reduce global poverty. The US has moved 750 amendments to a draft declaration on the United Nations' millenium development goals,

which aim to alleviate global poverty by 2015. The Federal Government is being urged to fight the amendments, but it says it believes the US is negotiating in good faith.

Hamish Fitzsimmons reports. Ten years ago,

as Australia's ambassador to the United Nations,

Richard Butler,