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(generated from captions) chances of reaching agreement. paint a bleak picture of their the negotiations but reports from inside another week, They've given themselves to create a new constitution. to meet their deadline sectarian leaders To analyse the failure of Iraq's And we'll stay in the Middle East. I'm Tony Jones. Good evening. Welcome to Lateline This program is captioned live. wonderful Jews. He is ruining the lives of of Israel. with shooting on every single part It will be a terrorist state into a terrorist state. He is turning our country He is ruining our lives. appeals for calm. Hardliners ignoring Ariel Sharon's largest Jewish settlement in Gaza. as Israeli troops move on the Skirmishes and arrests To the barricades. Tonight -

Ariel Sharon told the nation that evacuation, Israeli Prime Minister they leave. On the eve of the forced they leave. On the eve of the decided to scorch the earth before Palestinians, but some settlers have Palestinians, but some settlers the land is returned to the communities will be destroyed before communities will be destroyed to them by the government. These third of the compensation being paid third of the compensation being military they'll lose as much as a until they are-for-ed out by the the soldiers." If the settlers wait the soldiers." If the settlers he says. "We decided not to confront he says. "We decided not to a heavy heart, with lots of pain", a heavy heart, with lots of pain" decided to leave. "I'm leaving with decided to leave. "I'm leaving settlement in the south of Gaza have settlement in the south of Gaza quarter of the families in the Morag quarter of the families in the their communities is over. Around a settlers and soldiers who fortified Now the alliance between the territory in the Palestinian strip. For decades they've occupied Matt Brown reports. Middle East correspondent in the Gaza Strip. From the Morag settlement and leave at the eleventh hour. others have decided to pack up fight on, But while some are determined to with security forces. after scuffles broke out more than 50 people were detained At the largest settlement, yet to evacuate. for the thousands of settlers as the deadline draws closer in the Gaza Strip tonight, Tensions are rising to kill him in Australia. Beijing has sent a hit squad And a Chinese defector claims should be allowed to live. where a paroled pedophile Two state governments brawling over border war. over the Government's IR shake-up While more coalition doubts emerge oppose the full sale of Telstra. Barnaby Joyce signals he won't Double take - But first our other headlines. That's coming up. Arab Lawyers' Association. president of the London-based Sabah al-Mukhtar, the process. We'll speak to a critic of democracy fall at the first hurdle? So could Baghdad's experiment in for fresh elections. could be dissolved real fears Iraq's National Assembly And if they don't, there are

soldiers. That's part of the Afghanistan has killed 17 Spanish confirmed a helicopter crash in headed to the area. Spain has explosion and rescue teams are are reported to have heard an to mar ten neek from Panama. People is believed the plane was on route trouble before contact was lost. It airlines jet which reported engine were on board the west Caribbean ya. Officials say 152 passengers plane crash this time in vence lail Matt Brown, Lateline. There's at already decided to make a new life. remain. Their neighbours have today. Now, only the hard-core happening across the settlements accepted their fate. This is withdrawal from Gaza but now they've withdrawal from Gaza but now passionately opposed to the fact. The family has been settlement have come to help him who've been stationed around the its best people." The soldiers but now the nation is also losing with many rockets over the years, saver", he says. "We've been hit goodbyes. "Our new life will be for this man to say his last troops' morale. The moment has come troops' morale. The moment has obviously have an impact on the seen, and as time goes on, that will seen, and as time goes on, that hard, tense time, as I'm sure you've hard, tense time, as I'm sure toll on the military. This is a very toll on the military. This is a evacuation is already taking its here for quite a while. The water and we've arranged to stay have a lot of food and a lot of are determined to stay. We have - we are determined to stay. We have - But most of the settlers in Morag that we are taking this step. of strength, rather than weakness, whatsoever on the horizon. It is out whatsoever on the horizon. It is increasing hatred with no hope distress, in hot beds of ever refugee camps, in poverty and incredibly cramped and crowded every generation. They live in they are doubling their numbers million Palestinians live there and futile. TRANSLATION: Over 1 continuing to occupy Gaza would be

that his first loyalty should be to the Coalition Senator Joyce maintains his constitutional responsibility is to put Queenslanders first even going so far as to suggest secret ballots in parliament. Have we evolved to a point where a new form of voting by secret ballot in the Senate would address this and bring a better representation of the particular issues of states or areas within. And if that wasn't enough for the Prime Minister one of his old foes was cited as an inspiration. The late Sir Joh Bjelke-Petersen who was my mentor. I never met Lady Flo Bjelke-Petersen who is my mentor now. But the issue that's defined Barnaby Joyce's short career didn't go unremarked. I am not convinced as to the reason to sell Telstra, similarly, I was never convinced as to the reasons to sell the Commonwealth Bank. I am convinced ramifications of not participating in the debate would be to the detriment And despite John Howard's demand of human life will prevail. the immutable argument of the worth or a Labor Party Party, a Liberal Party that there ever was a National forgotten long after the annals of time have on both sides, It is brokered by good people of our time. Abortion is the slavery debate more on his mind than just Telstra. But his speech revealed a man with last week. since arriving in Canberra has rarely been out of the headlines Barnaby Joyce the Nationals' newest recruit. all eyes were on And this evening of a new Senator. on the motivations and aspirations to parliament to shed some light It's usual for a first speech reports from Canberra. Dana Robertson but the people he represents. not with the government that his first loyalty lies and restate his belief to weigh into the abortion debate the speech Senator Joyce has also used when it fianlly comes to a vote. to cross the floor over the issue he now appears unlikely At the same time, however, selling off the Commonwealth Bank. just as he wasn't convinced about of fully privatising Telstra he's not convinced about the merits telling colleagues has made his maiden speech Barnaby Joyce The new Queensland senator have made an emergency landing. helicopter I which is believed to after a collision with another reported the crash may have occurred reported the crash may have NATO-led peacekeeping mission. It is NATO-led peacekeeping mission. It of regional Australia. The speech came on the same day Cabinet met to discuss a $3 billion proposal

to improve telecommunications in the bush. But even if that gets the go-ahead, Barnaby Joyce is reserving his right to oppose the Telstra sale But this morning he signalled the government's offer should be enough to win him over. We started from nothing, the National Party started from nothing and we've gone from nothing to $6 billion on the table, that's what we've been fighting for and we've achieved. I was at the rodeo on the weekend and I think that six people... I was working at the bar, and six people came up and said what a great bloke Barnaby Joyce was, I tell you what - the rodeo next year, after he's voted for the sale of Telstra, if he sides for the sale of Telstra they won't be saying that. Telstra's not the only legislation causing internal friction within the government. As truck drivers rolled into Canberrra to protest against industrial relations changes, John Howard was still non-committal about whether to have a Senate inquiry after his Workplace Relations Minister said yesterday that it was a certainty. The question of whether there'll be a Senate inquiry into this or any other piece of legislation will of course be a matter for the Senate. I've got some concerns, I'd hate to think the things I grew up with as a working class individual were under attack. The Opposition's demanding a full Senate investigation. Dana Robertson, Lateline. It was parochial politics at its most ferocious today in a row between the NSW and WA governments over a paroled paedophile. In 2000, Otto Darcy Searle was sentenced to 424 years jail by a Perth court after being found guilty of abusing several pre-teen boys more than 20 years ago. But his sentence was made concurrent, meaning a maximum of only 11 years and he was eventually paroled after just five and allowed to move to NSW. Tom Iggulden reports. Sharon, what's the name of that Sharon, what's the name of that new Premier Morris Iemma? No, it is Morris Iemma. What sort of name is that? Apparently his parents came here from Italy in the 1 9 60s. Another immigrant to the state Another immigrant to the state has given the Premier his first taste given the Premier his first taste of the limelight. Convicted paedophile Otto Darcy Searle was paroled in Western Australia in July and has been living here on the NSW Far North Coast ever since. Searle's crimes were committed more than 20 years ago, but locals are livid that he was paroled, even though he didn't undergo a specialist psychiatric assessment. After two days of dithering, today Premier Iemma moved to send Searle back to Western Australia. Today, on the advice of the Commissioner, I'll be contacting the Premier of WA to ask for expidited application from the WA Parole Board to the Commissioner in relation to the individual on the North Coast of NSW. Has the NSW Premier called you? He said he was going to call you personally today to discuss... No, I'm not aware of any call. And Mr Iemma went a step further, promising to send others from interstate who are on parole back to where they came from. Well, it's a big deal because we don't want to be a dumping ground for WA's paedophiles. We're not going to be a dumping ground for paedophiles. But Mr Iemma's State Labor counterparts in the west had a message of their own for the rookie Premier. To suggest, as they've tried to do, that this was dumped on them in the dark of night, as they've tried to do, is pure fantasy on the part of the NSW Government. Fantasy or not, that was part of the NSW defence of how Searle ended up living on the State's North Coast and attending a born-again Christian church just over the border in Queensland. Not all of the information was transferred from the parole board to the regional office. As a result of that, they didn't have all the detail and it didn't trigger further inquiries. Oh, the NSW Government were inept. They were fully involved with all the processes. There was a knee-jerk reaction at a political level in NSW. But Mr Iemma continued his attack on the west's parole board for letting Searle out in the first place. The WA parole attached some conditions for his parole, saying it would be nice for him to live with family. Well, sorry, he's on parole in WA, he's a serious sex offender and the offenses are against children. He can live in WA. Searle was sentenced to 424 years for his crimes, Tom Iggulden, Lateline. A prominent Chinese defector has today claimed that he has information that a hit squad has been sent from China to assassinate him. Australia's Foreign Minister says the claims should be treated with great caution and the Chinese Embassy says they are ridiculous. Chen Yonglin says he was tipped-off by a high-ranking official within the Chinese Foreign Ministry that Beijing is determined to silence him. Michael Edwards reports. It's a startling allegation - former Chinese diplomat Chen Yonglin claiming there's a hit squad in Australia preparing to kill him. I receive a message from one of of my closest friends in China, working in the Ministry of Foreign Affairs, saying that that the government has sent - one month ago - sent...sent...sent a team, a 3-member team to conduct an operation called, ah, 'Decapitation Strike'. First they want to shut me up, want me to shut up, and the other they want to set a warning example to others who want to defect. Mr Chen says he was told the alleged assassins entered Australia on business visas. And the tip-off, he says, was an email from a friend who's a senior official within the Chinese Foreign Ministry. Lateline hasn't seen the email and has no way of verifying the claims. However, Mr Chen says he's scared and he's willing to risk his reputation by making the allegations publicly. I have no choice but to disclose their plan and hope the Australian people will believe. Mr Chen says he's already under surveillance, saying he confronted a Chinese man filming him and his family in a Sydney restaurant last night. "Why are you recording us with camera, video camera?" And he hesitated and stood up and said, "What person are you?" And then we - my friend and my family - are quite...were quite frightened and hurried away. The owner of the restaurant has confirmed there was a confrontation involving Mr Chen at his premises last night and the New South Wales Police are investigating the incident. Chen Yonglin defected from the Chinese Consulate in Sydney in May, making allegations of an extensive spy network in Australia. These claims were backed by a second defector, former spy Hao Fengjun. There has been doubt cast over another of Mr Chen's claims - that Chinese spies kidnapped the son of a man on the run from authorities in China. Alexander Downer is sceptical of the latest allegation. It would be highly improbable that the Chinese would be sending assassination squads around the world chasing people who have got protection visas of one kind or another. I mean, this happens on many occasions around the world and I haven't ever heard of it happening, at least in modern times. Security analyst Clive Williams has similar concerns. The Ministry for State Security, which is the main Chinese intelligence service overseas, mainly engages in espionage. It also monitors local Chinese communities, but it doesn't engage in that kind of assassination activity. A spokeswoman for the Chinese Embassy says Mr Chen's claims are absurd. Michael Edwards, Lateline. To Iraq now. And while there has been enormous coverage of the ongoing insurgency much less attention has been paid to the political battle that may ultimately do more to shape the country's future. Negotiations over Iraq's constitution have hit a brick wall. The original deadline to strike a deal passed overnight with Iraq's parliament voting to extend talks by one week. But deep divisions remain between Kurds, Shiites and Sunnis. And there are fears Iraq's road to democracy is under threat. Norman Hermant reports. Iraq's National Assembly did vote but this was not the breakthrough leaders had hoped for. Instead with negotiations on the constitution deadlocked all politicians could do was approve an extension. Seven more days to try to hammer out a deal. So many ethnic, religious nationalities in Iraq. It is a very difficult job. So far, there's no agreement on the role of Islamic law and on the rights of women. Kurds are demanding not only autonomy but the eventual right to secede. Shiites in the south also want self-rule and there remain big differences on the division of Iraq's oil wealth. Despite the failure to reach agreement Washington was still publicly optimistic. They are considering all of the difficult issues before them, This is an enormously important document and what you have here important document and what you have heres is an enormously important document. People are trying to make a future after decades of tierny. after decades of tyranny. Months of talks have brought limited progress. Some here say that won't change in a week. "Differences, frankly, are very huge" says this Sunni spokesman who pleads with political parties to renounce their differences while at the same reiterating the Sunni position that the Iraqi people do not want federalism. But that's exactly what Kurds and Shiites do want. If there's no deal soon there are predictions the National Assembly could be dissolved. New elections could be called leaving Iraq's passage to democracy seriously off track. Norman Hermant, Lateline. Well, is there a solution to Iraq's constitutional difficulties or will the problem prove intractable? To discuss the problems and the possible outcomes I'm joined by Sabah al-Mukhtar, President of the London-based Arab Lawyers' Association. yranny. Sabah al-Mukhtar, thanks for joining us. Thank you The for joining us. Thank you The Iraq government has been trying to sound optimistic about all of this, but how likely is it, do you believe, that an agreement can be thrashed out by Monday? Well, that is very unlikely possibility. I don't think they will be able to do so. I think what they are going to do is steamroller the Constitution, which is a US-imposed but agreed with Kurdish and Shi'ite Constitution. That document is based on the idea that the western leaders, that the western leaders, especially in the US and Australia, are tell in the US and Australia, are telling their electorates that the solution of Iraq is to sign this piece of paper. At the same time they are being told that this contusion is going to solve the problem of Iraq when in fact it is actually dismantling Iraq into various sects and various regions which will not only be infighting between themselves, but within each one of them and within each one of them

them and within each one of them and the neighbouring countries. Turkey will not like what is going to happen in the north because they is a problem with the Kurds. Saudi Arabia and Kuwait will not like what's going to happen to have an Islamic Shi'ite republic on their border. The Iraqis themselves are divided on the issue. They are trying to give the impression there is a helmagenious Sunni and Kurdish population is totally untrue. We have in Iraq, in Baghdad itself in the capital, you have almost 2 million Shi'ites, you have almost 1 million Kurds who would have to decide whether they're going to be ethically cleansed and pushed to ethically cleansed and pushed to the south and north where they came from. What is going to happen to from. What is going to happen to the "Sunnies" Arabs in the north and south.? With that's why most people are opposed to what is called federalism but it is disfragmentation of the state disfragmentation of the state except for the leaders benefitting from that. Let's go through if we can, though, you seem confident the Constitution will be rammed through. There doesn't seem to be confidence coming from within the constitutional committee itself. There seems to be major sticking points. Even tonight the Prime Minister Ibrahim al-Jaafari is saying that the Kurds' demand for the right to sook seed will be one of the major sticking points? Yes, of course, but at the same time he's supporting the concept time he's supporting the concept of federalism because when he and the others were, so to speak, in opposition sitting outside Iraq opposition sitting outside Iraq they divided at the time Iraq between these various factions. We have one of the main leaders of the shait people who is al-Kahim. He said people who is al-Kahim. He said he'd like to have a federal state in the south of Iraq which in fact is south of Iraq which in fact is going to be a pro Iran Islamic republic which is opposed by even some of which is opposed by even some of the Shi'ites within that area of Iraq. They may want to have a Shi'ite federal part of the state, but they don't like to be linked to Iran and the same thin happens in the north. The same thing happens in the West. That's the recipe which - those politicians are pedalling it politicians are pedalling it because of short-sitedness. They are not looking at the interest of their community or, indeed, Iraq. Iraq been defragmented. community or, indeed, Iraq. Iraq has been defragmented. It's been now what is being attempted to do is in fact legislate the defragmentation and the deasemling of the state of Iraq. The problem is -- If I can interrupt you. Even if you are interrupt you. Even if you are right about that, it appears that those frag pmented, those sectarian frag pmented, those sectarian groups can agree on pretty basic issues can agree on pretty basic issues and they can sign up to any sort of Constitution, how to divide political power between them, how political power between them, how to divide oil revenue, the role of Islam in Iraqi law, the role of women and the rights of women in society, all of these seem to be critical issues that none of them can agree on. Well, there are certain things they can agree on. certain things they can agree on. If those politicians for expediency they are - you agree on this one, I grow on this one - and this is not in the interests of the communities themselves, nor is it for the interest of the Iraqi people as a interest of the Iraqi people as a nation. But the exercise is that nation. But the exercise is that the Americans are very good at fast Americans are very good at fast food meals and they think they can have meals and they think they can have a Constitution in a fast way in the same way. This is salute nonsense. This is really playing with fire. That country is going to be the area, if they continue this process, it will enhance, it will increase the resist tense to the occupation. It will increase the division It will increase the division within the country itself because of the poll lordision of the people along these fault lines which are being pedalled by the politicians who are incidentally most of them are citizens of the USA, France, Britain, Iran and Saudi Arabia. Those people have no interest of Iraq. They have the interests of

those who have imposed them and it is really disturbing to see democracies like, for instance, Australia, which is playing the Australia, which is playing the role as if it is really the way to solve the problem of Iraq when they know or they ought to know that this is not how you solve the problem of that country. The country at the present moment is under occupation. Iraqis are not martians. No-one likes occupation and it doesn't matter whether the occupiers come under the giz of spreading Islam or Christianity or democracy, or any other principle, occupation is occupation. They are now installing people who are supporting their views. Here's the problem, the central problem is that the occupiers have put themselves in a position where they can't actually leave the count tli until there's a - country fll's a new Constitution and functioning military and police force in this new state. How long force in this new state. How long do you think that might take to happen? Well, in the first instance I think the occupiers have think the occupiers have swallowed bigger than what they can do bigger than what they can do because the last thing the Americans would have wanted is to get rid of Saddam Hussein and replace him with an Islamic republic like the Iranian one. On the other hand, now the Americans have the situation they have what's called the Sunni triangle, they have the foreign fighters , you know you imagine Americans in Iraq accusing Arabs Americans in Iraq accusing Arabs who are fighting there as being foreign fighters, as if the Americans are nationals. Nevertheless, they are trying at the present moment to steer clear of this dispute, but at the same time they're not willing the same time they're not willing to actually declare formally in a way that is acceptable that they will that is acceptable that they will be leaving Iraq and handing it over to the Iraqi people not to Iraqis who support their view. This is what support their view. This is what the Americans need to do. But on departure from Iraq, the Spanish contingent was 300 men, in order contingent was 300 men, in order for them to leave Iraq it took them three months to leave. I assure you

for the Americans and other powers to leave Iraq it will take them at least three years to leave. Nobody is leaving tomorrow. All of this talk about people are balloons for tests. Alright. Let's look at the condition institution, though. Are you convinced that a deal will be stitched up to create a by next Monday? stitched up to create a Constitution by nex No, I don't think so. I by nex No, I don't think so. I think at the end of the day they'll have to ram it through the parliament because the rest of the so-called Sunnis who are not in agreement Sunnis who are not in agreement with it simply because the The Sunnies are the only people left who are really keen on having Iraq as a unit, as one country, including unit, as one country, including some of the Shi'ites and some of the Kurds. The politicians, on the Kurds. The politicians, on the other side, they want to achieve their objectives. They have already said that whether they grow or they don't, they're going to ram it through parliament. On the Sunni side t they are saying whether we support it or we don't support it, they're going to do exactly what they're going to do. The Shi'ites are going to create an Islamic republic Iran-style in the south. The Kurds are going to create a republic in the north. Both these two republics, which are going to two republics, which are going to be created in the north and south, created in the north and south, have animosity within itself, that's the factions between Talibans on the Kurdish side and various Shi'ite groups in the south and these two republics have animosity already. republics have animosity already. So with the neighbouring countries. So at the end of the day it's really a situation where those people situation where those people who incidentally most of them have all of their families outside Iraq, they're going to try and ram this through, stay as long as they can, but I don't think that will bring instability to Iraq or safety. Why couldn't you have a con fed Why couldn't you have a confederation system within Iraq, confederation system within Iraq, a Constitution with three separate semi-autonomous areas? Why wouldn't that work? First of all, you don't create - probably you mean

federation. There's a difference between the two. Federation are states and confederation are regions. First of all you don't create it on ethnic lines, especially when Iraq has the population spread all over the place. As I said there, are more Kurds in Baghdad than in other places. In the north, there is a large Kurdish community, but there are Arabs there. The Shi'ites probably are scattered throughout the country, including the northern area. You do not create this. There are no - Iraq at the present moment have 18 governments. You could give that one a lot of freedom and that one a lot of freedom and rights to run the affairs of the locality. You would have to continue to keep the state as a state. But even when you talk about a federal state, you talk about a federal state, like the US of America or whatever, then you'd still have the oil t neighal interest, the defence, the foreign affairs, the military in the hands of the central government. What is being proposed, at least in one of the versions, is somebody said that we will follow the so-called Swiss example, ie any state can enter example, ie any state can enter into a treaty with a foreign nation. So you can imagine what's going to happen. The south will team up with Iran. The north is going to be Iran. The north is going to be under the pressure of the Turks because they don't like the idea because they've an even bigger Kurdish community in Turkey. That's the problem. What is going to happen is probably foreign powers will tear Iraq to pieces, either having a continuing war or occupying Iraq or parts of that in that this is the problem we have. You cannot create this kind of a federation, especially that one of the main leaders of the shaits have already said that they would like to have a federation which covers nine governments, more than half of Iraq, and the Kurdish leadership have already sent their people out in already sent their people out in the street to say, "We would like to have a cessation. We would like to have independence." This is tearing

this country to bits. Maybe people don't mind, but what I'm suggesting is this is not in the interests of Iraq and not the interests of the neighbouring countries and neighbouring countries and certainly not in the interests of the major powers, including the USA and Australia. Alright. Sabah al-Mukhtar, you've certainly given us some food for thought there. us some food for thought there. It's obviously extremely complex, the obviously extremely complex, the way you put it at least, thank you for joining us tonight. Thank you. The people of the troubled Indonesian province of Aceh have cautiously welcomed the truce which could end their 40-year civil war. The deal sees the Free Aceh movement renounce claims for independence, in return for a degree of self-government. Indonesia correspondent Tim Palmer reports. Doubly cursed, the village of Lam Baru Neujid lies on a bay pounded by December's tsunami and backs onto wild mountains meaning Aceh's decades-long war has been fought on its doorstep. Last August, villagers watched Indonesian soldiers chase a wounded separatist as he ran through the village screaming for his mother. "The soldiers caught him," says Muchtar. "They mutilated him, then called his family, "lay him down and hit him hard in the head. "It scared me and in the end, he died." It's hardly the climate for reconciliation. But now, as the village is being rebuilt from the swamp of the tsunami, these people are being asked to rebuild their faith in Indonesia too and in a peace accord that sees separatists - and most people here are - accept Aceh's place in Indonesia. The deal was done across the globe in Helsinki. Applause On the steps of Aceh's Grand Mosque, What we hope we have achieved is the beginning of a process that will bring justice to the people

of achai. On the steps of achai's grand mosque few people jostled to watch the scenes in health and watch the scenes in health and cheer the moment. Under the accord, hostilities cease immediately and peace monitors from the European Union and Asian nations start work today. Separatist guerillas are to debomilise and decommission their weapons. Indonesia's to withdraw the bulk of its troops and police and release political prisoners within weeks. Aceh will keep 70% of its great oil and gas revenues and by next year a law is to be passed allowing a form of self-government for Aceh and for local political representation, including former pro-independence figures. But in Lam Baru Neujid there's scepticism. "There are lots of liars in this," says Muchtar. "Seeing is believing." The immediate dividends of peace might help to break that down. Around two dozen of the village's young men make up part of a larger, armed GAM guerilla camp in the mountains just behind the town. Now promised land and an amnesty under the peace package, the villagers hope their sons and brothers will be coming home within days. The villagers promise the welcome will be unbelievable. Tim Palmer, ABC News, Lam Baru Neujid. To the markets now. The All Ordinaries ended higher today, climbing nearly 21 points. A slight drop in the oil price sent stocks in both Woodside Petroleum and Santos sliding. Now to the weather. And that's all for this evening. If you'd like to look back at tonight's interview or review any of Lateline's stories or transcripts, you can visit our website at: I'll be back tomorrow night, so please join me then. Goodnight. Captions by Captioning and Subtitling International.