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Live.

More damaging Cabinet leaks

threaten to undermine Julia Gillard's election campaign I

couldn't begin to speculate on

who would say such a thing.

Kevin Rudd? Well I couldn't

begin to

The UN's former chief

weapons inspector says the war

in Iraq was a illegal. A Dutch

court allows 14-year-old Laura

Dekker to sail solo around the

world. An Olympic legend helps

London mark two years until the

Games.

Good morning. It's Good morning.

Wednesday, 28 July. I'm Michael

Rowland. I'm Virginia Trioli.

The top story on 'ABC News Breakfast' - the Gillard Government has again been rocked by more damaging

internal leaks. Last night,

Channel 9 reported that Julia

Gillard lobbyed in Cabinet

against the government's paid

parental leave scheme and the

size of pension increases. She

says she doesn't respond to anonymous allegations but some

of her colleagues are pointing

the finger squarely at Kevin

Rudd as the course. The former

Prime Minister says he never

comments on Cabinet talks. And

last night on 'Lateline' the Minister for Women's Affairs

Tania Plibersek insisted the

Prime Minister had always been

supportive of the scheme. I

couldn't begin to speculate on

who would say such a

thing. Kevin Rudd? Well I couldn't begin to speculate. Kevin Rudd

supporters? But I'd have to

reaffirm that the Prime

Minister's been an extremely

strong supporter of paid

parental leave. Tania

Plibersek on 'Lateline' last

night. For more Melissa Clarke

joins us now from Canberra. It

would seem in political terms

the really crucial thing here

is not so much what's been

leaked but that it's been

leaked at all and leaked

again? Absolutely. It's almost

as though whether or not these

allegations are true is a bit

incidental. The fact that there

are sources from the Labor side of politics which Laurie Oakes

has made it clear that his

rather close to Julia Gillard, information is coming from

the fact that we are getting

these leaks says a lot about

the state of the Labor Party at

the moment. This is really the

third we've had in about two

weeks. Will you remember when

Laurie Oakes stood up at the

noik about two weeks ago and

him that Julia Gillard had revealed sources were telling

reneged on a leadership deal

with Kevin Rudd on that crucial

night before the leadership

spill. And then we had Chris

Uhlmann on ABC News 24 reveal

that leaks from the Cabinet

side had confirmed speculation

and talk that Kevin Rudd had

been - had shown a casual disregard for a Cabinet

committee and now we have this

latest revelation. What we're

seeing is something you would

normally see from a political

party in the throes of

opposition, after being in

government when they generally

do a lot of navel gazing and

finger pointing and blaming of

each other. Instead it's at the

first term of a government in

the middle of an election

campaign. It's quite

extraordinary to have this sort

of internal leak going on in

the middle of an election

campaign. It says a lot about the unity or lack thereof

within the Labor Party. It has

the potential doesn't it to completely derail Julia Gillard's campaign? I would

imagine these 24 hours now will

be the 24 hours from hell, and

there will be little discussed

other than the allegation

themselves and where they came

from? And it feeds into an

issue that Julia Gillard is

really hard up against at the

moment, that is, the last 24

hours has seen a huge spotlight

on her personal life, on her

family circumstances, and

situation. And the content of

this leak that she was

apparently campaigning against

such a big rise in the pension

and campaigning against paid

parental leave, feeds into those very family issues under

which she is facing a lot of

scrutiny at the moment. So the

two issues really collide at

this point and become one

really big issue for Julia

Gillard to deal with. And it's

only going to get bigger today

because of course hitting the

'Australian Women's Weekly'. newsstands today is the

They have a wum of pages worth

of profile of Julia Gillard as

well as a cover shot of her.

She does adorn the front page. Being the 'Australian Women's

Weekly' and looking at her as a

female Prime Minister, they ask

her in this profile about marriage, about whether or not

she would get married to her

partner Tim, they ask her the

normal sorts of questions you

get for a profile for a

politician v you ever trade

marijuana or drugs? But it also

makes some interesting

observations about Julia

Gillard, the profile describes

her as a lone wolf, as someone

for her it doesn't really matter whether she has a

partner or not. She acts on her

to own. And I think that's going

to feed into a lot of the talk

we have had from the media and

on-line in particular about

Julia Gillard's personal

circumstances and how that

might feed or play into her

Prime Ministership. We know

that Julia Gillard is in

Adelaide today and as soon as

we can we'll confirm what we can we'll confirm what her

media engagements might be because those first early

interviews are going to be

about little other than these

leaks. What's Tony Abbott up to

today? Some I guess in his campaign might argue what you

do today is you lay low? And

look, what we've seen when Tony

Abbott has been asked about these family and personal

issues about Julia Gillard, he

has been very careful to toe

the line and say it doesn't

matter what gender someone is ,

it's how they approach the job

and the content of what they

do, but there has been a very

big focus of emphasising his

own family circumstances. We've

had his wife join him on the

campaign trail at the start of

the week. One of his daughters

joined him yesterday in Mackay,

where he was making an

announcement about marine

protected areas so he is

bringing his family into the

spotlight. He is making a lot of references to himself being

a family man and understanding

the struggles of a family. But

whenever he is pressed about

it, he shies away from making

any comment about it. I think

that would be at the advice of

his campaign directors and

campaign managers, because as

long as the spotlight is on

Julia Gillard, that makes it

safe territory for him. Good

to talk to you, thanks so much. The us Defence Department has

been criticised for failing to

keep track of billions of

dollars it received to help

rebuild Iraq. The US

Inspector-General for Iraq Reconstruction says the

department is unable to account

for more than $9 billion. The

US military says the funds are

not necessarily missing but

records may not have been

archived. The man due to become

BP's new chief says the company

will emerge from the oil spill

crisis smaller and wiser. Bob

Dudley will replace Tony

Hayward in October. Earlier the

company reported a record $18

billion loss. BP has also set

aside $35 billion to cover the

cost of the spill. A

14-year-old Dutch girl has won

a legal battle to try to become

the youngest person to sail

solo around the world A Netherlands court lifted a

child protection order after it

found that Laura Dekker had

improved her preparations. The young sailor must complete the

trip before she turns 17 in

September 2012 to break the

record. Health fishes say

there's strong evidence to

suggest the number of women

who've contracted hepatitis C

from a Melbourne doctor has now

risen to 35. The link between

the Croydon Day Surgery and the

cluster was first revealed in

April when there were 12 cases

A lawyer bringing a class

action over the outbreak says

she doesn't understand where --

why authorities are not more

worried about other clinics

where the doctor worked. A

Romanian rescue official says a

helicopter burst into flames on

impact. Crews are now

investigating the cause of the

crash. The United Nations chief

weapons inspector Hans Blix has

testified at an inquiry into

London into the Iraq war. Dr

Blix criticised both the British and American

Governments over their role in

the run-up toot conflict. Now

82 the former UN chief weapons inspector was adamant he

thought the war was illegal and

that the Americans under

President Bush were keen to

bring it on. The US at the time

was high on military. They felt

that they could get away with

it and therefore it was decide

desirable to do so. Hans Blix

he said he thought Iraq

probably was hiding weapons of mass destruction but as the

inspection teeps started

turning up nothing he had his

doubts which he started on --

passed on to the US and

Britain. I said many times,

wouldn't it be paradoxical for

you to invade Iraq with 250,000

men and find very little

That's exactly what happened, an invasion he says may have

been avoided if intelligence

gathered from dubious Iraqi

defectors had been more

rigorously tested. They

should've res liesed both in

London and in Washington that

their sources were poor. There

are people that defect or they

give them intelligence and they

want to get some reward for it,

so they will be inclined to

think what the interrogators

want to hear. But Hans Blix

does not subscribe to the

theory that both President Bush

and Prime Minister Blair went

to war knowing that the weapons

of mass destruction didn't

exist. I have never questioned

the good faith of Mr Blair or

Bush or anyone else. What I questioned was the good

judgment. Particularly with

Bush but also in Blair's

judgment. As for Saddam

Hussein's regime - Hans Blix

says the UN resolution demanded

a physical account of WMD was reasonable.0. Yes, except that

it was very hard for them to declare any weapons when they

didn't have any. So no smoking

gun, no biting recriminations

today. But a decision to invade

another country still has the

power to divide just as it did seven years ago.

The death toll from flooding in central China has reached

almost 800 with many more

missing. Torrential rains in

the err a are the first real

test of China's massive Three

Gorges Dam project, which was

partly built to help control

floodwaters. They're the

heaviest rains seen in this

part of China for more than a

decade. They're also so

deadliest. The death toll is

expected to claim well above

1,000 as rising waters have

swept bridges, roads and in

some cases houses away. As the

floodwaters surge eastward down

the Yangtze River, rescuers

continue to pull victims both

dead and alive from its wake.

Upstream, much of the city of

Chong Ching in Sichuan Province

is still under water, even as

rains begin to ease and the

economic cost is still being

counted. Now the price of

watermelon has risen to 13 or

so US cents per kilogram. It

was easier to distribute the

fruit down there. Downstream in

Hunan province they're bracing

for the arrival of the surging floodwaters there is particular

concern for a city on the

shores of a large reservoir

created by the Three Gorges Dam

project. If the city is flooded

around 250,000 people living

downtown to the south of

Dongting lake will be

affected. This is just the

sort of natural disaster the Three Gorges project was supposed to help control. With

the area still in the midst of

the crisis there is yet to be

an official analysis of the

dam's effectiveness but an army

officials has been monitoring

the waters and regularly

opening the sluices to release

huge streams of floodwaters and

ease unprecedented pressure on

the dam's weak spots. The peak

waters will pass through the

dam's main gates in the next 24

hours. Now to front pages of

major newspapers around the

country that the Labor Party

will not be want to see,

dominated by the Channel 9

leaked story about Julia

Gillard privately arguing

against the generosity of the government's increases in

pensions and also the parental

leave payments. The 'West

Australian' says the revelation is a damaging blow to Ms

Gillard's attempts to portray

herself as family friendly.

With pro-Rudd forces suspected

of leaking the damaging claims, bitter divisions threaten to

derail Ms Gillard's campaign. The 'Australian' says

the Prime Minister has had to defend her government against

allegations of pork-barrelling

after an audit report found

part of its stimulus program

favoured Labor electorates. A

1.15 billion dollar federal

election promise aimed at

winning marginal seats is set

to cause an infrastructure headache for State

Government. The Canberra 'Times' says the ACT Government

wants to see a partial return

to boarding houses and hostels

to resolve the capital's housing crisis. Commuters

should brace for another six

months of chaos on Melbourne's

rail network. Business has

backed Tony Abbott on leaving

industrial relations

untouched. New South Wales is

missing out on road and rail

infrastructure funding while

the Prime Minister targets

marginal Queensland seats. The

'Mercury' says a man sent a

suicide text message just hours

before smashing into a building while fleeing police on

Monday. The Northern Territory

'News' reports on the mystery

of the Territory tiger. Oh yes.

This creature turns up every

now and again. There is a puma

on the loose in New South Wales

pat some point. But this

Territory tiger makes an

appearance every now and again, perhaps a long lost cousin of

the Tassie tiger. How will it

shape up against the Territory

crocs, which is the big

story. The story this morning,

is the very fact that the Labor

Party itself is clearly leaking

against itself in the middle of

a federal election campaign.

Now, what does that tell you

about happy little Vegemites

within the party? And Around

does this make you think twice

about potentially voting for

Labor if this instability is

going to continue. What does

this say about a re-elected

Gillard Government being able

to steer the ship without

effectively being destabilised

by more disunion fee? It was

interesting hearing Simon Crean

speaking at the weekend on ABC1

and talking about how - being

very particularly about Kevin Rudd and saying Kevin Rudd had

to get on board, had to be a

team player, if he was going to

find his way back into Cabinet should the Gillard Government be successful and be

re-elected. Now, that very

direct warning to him is

interesting, I think, in the

context of these repeated leaks

that Laurie Oakes has been

receiving on Channel 9. I think

the discussion now about just

what Kevin Rudd is or isn't

doing for his team is

interesting. If the blood is as

bitter and the rows as deep as

many in the Labor Party say,

will Kevin Rudd simply ignore

such threats, and continue

making these leaks and

destabilise his successor? Over to you this morning.

A quick look at the weather

around the nation's capital

cities: The top stories on 'ABC News Breakfast' - the Federal

Government has been hit with

more damaging leaks in the

midst of the election campaign.

Channel 9 has quoted unnamed government sources as saying

Julia Gillard argued against

the paid parental leave scheme and the size of pension

increases. She says she doesn't respond to anonymous

allegations. The UN's former

chief weapons inspector Hans

Blix says it is his firm view

that the Iraq war was illegal.

Dr Blix made the comments as he

testified at a London inquiry

into the war. A 14-year-old

Dutch girl Laura Dekker could

become the youngest person to

sail solo around the world. A

Netherlands court has lifted a

child protection order after

finding Ms Dekker had improved her preparations.

Barack Obama says a military

leak about the war in

Afghanistan is a concern but he

denied it revealed any new

information. In his first

public reaction to the

WikiLeaks document Mr Obama

said the data was already in

the public domain and it had

justified his decision to

overhaul the US military

strategy in Afghanistan. I'm

concerned about the disclosure

of sensitive information from

the battlefield that could potentially jeopardise

individuals or operations. The

fact is these documents don't

they veal any issues that

haven't already informed our

public deb at on Afghanistan.

Indeed they point to the same

challenges that led me to

conduct an extensive review of

our policy last fall. So let me

underscore what I have said

many times. For seven years, we

failed to implement a strategy

adequate to the challenge in

this region, the region from

which the 9/11 attacks were

waged and other attacks against

the United States and our

friends and allies have been

planned. A former CIA official

and the President of the intelligence and security

academy joins us now from

Washington. In your view, just

how damaging to the US military

in Afghanistan are these

leaks? I think the President

basically has it right. There wasn't that much new

information in there, but it

makes it much harder to operate

when you are concerned that information like this is going

to keep getting out. And there

was probably some operational

detail in the papers that

would've been better not to have been preserved. But a lot

of papers were quite old. It's

more the fact of the leak and

fact of what happened than the

actual content. Are you

worried that there could be

more where this became from,

more damaging leaks in the

months ahead? I think those are

inevitable. First of all the

nature of how information is

held these days and the fact

that you have sites like

WikiLeaks that are basically promoting the idea of leaking

for whatever reason, I think

makes it inevitable for countries, western democracy

type countries to be facing

more leaks in the future. A lot has been made about the

revelation or the highlighting

in some of the documents about

the role of Pakistan's security

agency ISI in collaborating

with the Taliban. A lot of

commentators have said simply

that's not new, but it would

seen highlight in many people's

minds some doubts about just

what the US is up to in terms

of trying to build a

relationship with Pakistan. Do

you share that view? I don't

think the concerns are new. We

have known about the ISI's

relationship with the Taliban

going back to the Soviet Afghan

war. We've had concerns about

this for a long time, concerns

about the licence given to some

of the groups in Waziristan and

other federated areas. It took

us a while to push the

Pakistanis into being more

forceful. It makes it much

harder to conduct a

relationship with Pakistan if

they're concerned every time we

write something it appears in

the press. It's very hard to

conduct successful policy of

any sort when this type of

thing happens. In a broader

intelligence sense, might it

create some doubts in the eyes

of America's allies in terms of

sharing information with US

intelligence agencies if it

ends up being leaked in such a

sensational way?. We tend to be

more open than most of our

intelligence part ners. We have

a larger intelligence community

so we're more prone to leaks .

In the mid # 0s when we had a series of investigations some

of our partners have had warms

about sharing intelligence

wuss. I don't think l be be as

severe as it was 30 years ago.

But it gives everybody some

concern. Will it change

anything about the course of

the US military strategy in

Afghanistan?. It's very hard to

have a rational debate over

policy when you have selective

leaks of documents. These are

the documents that WikiLeaks

received and the ones they

decided to leak and they post

them for a purpose. They're

flying to influence policy.

This is not a neutral do-good

organisation. They're trying to have an influence on the policy

of very few nations. It becomes

very hard to have a rational

debate when this kind of noise

exists in the background but I

don't think it's going to

change the course the

administration believes it's set

set on. What's your view of the

people involved in this leak?

Is it a fairly small number of

people or is it a much wider

network? My guess is it's

probably a fairly small number

of people. But because of the

way in which information is

stored these days if you have

the right access you can get

your hands on a fair amount of

information. You can move it

quickly onto a disc, a thumb

drive T makes this kind of of

activity easier, the technology

makes it easier. I really

appreciate your insights this

morning. Thank you. You're

welcome. A look at the markets

now of the the Dow closed 12 points higher. Excitement is building in

London ahead of the 2012

Olympic Games. Here with the

details is Paul Kennedy. Good

morning. Yes, plenty of times

we see that stadiums are late

and there's all talk about not

making a schedule. But London

is on track. It's two years to

the day since they'll open the day since they'll open the

ceremony. There is Michael

Johnson, still holds the 400m

world record from 1996 if you

can believe that. He won four

gold medals but didn't win that

race and Chris Hoy who has also

won four Olympic gold medals

had a ride around just to check

out the particular facility

there. Let's hear from Michael

Johnson. Obviously that's key,

delivering everything on time.

The stadium seems to be on

time. It looks great. This is

certainly a motivation for those athletes that are

preparing and just reminding

them of what they're out there

training for every day. It's

easy to get caught up into the

training so much, and this is a great reminder and motivation

for those athletes training

every day that this is what

you're training for. Players

around the age of 30 decide to either move on and play another

year or hang up the boots and

that's what Warren Tredrea has

decided to do. His ageing body

has had enough. He has decided

that's it for him at AFL level.

Quite an emotional press

conference. I want to show you

some pictures of a seem that

seemed a long, long time ago

now. That's 2004 premiership. A

couple of things you might want

to take note of there. There

was a good punch-up, that was

back when Akermanis was doing

brilliant things for the

Brisbane Lions. There is Mark

Williams, sacked this year from

Port Adelaide or moved on

anyway. Let's hear from him

now. A great journey. As I

said, it's been a privilege. I

came here, I suppose, a naive

schoolboy and leave a father

and husband and premiership

player. So one thing I get to

do now is become a fan again,

so thank you. Obviously this

year didn't go the way I

would've liked. I was battling

early in the season mentally

with AFL football and

everything it went about. When

I come to the realisation I

come injured, so maybe it was a

blessing and a sign anyway. If

it would've finished back then,

I would've felt robbed to go

down 28 years of age when

you're supposed to be at your

peak. At look at what's

happening with the Wallabies in preparation for the Bledisloe

Cup in Melbourne on Saturday

night. The rugby coaches

weren't talking about the surface, they didn't want a bar

of it, even though the AFL

players and their managers and

so on are making warnings that

the surface won't be fit to be

played on there is a few

changes too of course and Matt

Giteau will be moving into Quade Cooper's position and not

staying at inside centre .

Here's Ben Worsley with the err

other news. Robbie Deans calls

it the ultimate test. His

charges are well aware that

beating the Springboks is one

thing, con questionering the

All Blacks is another. It will

be a great occasion. It will be

a great game. It will be great

theatre. There will be an awful lot of people to enjoy

it. That's assuming the players

can keep their fit. So

concerned is the AFL Players

Association with The Docklands

surface it's warned the

Wallabies not to take the field

but if Deans is worried about

it, he is not letting on. Sure

to be a lot of players falling

over but nothing to do with the

surface. Well aplay on the

asphalt if we have to. With

50,000 tickets sold and the MCG

occupied the match isn't

shifting even if the surface is. There has been talk about

the surface but we can't change

it. We just have to get on and

do it. Quade Cooper's

suspension has forced Matt

Giteau to fly half. Barrick

Barnes will play inside centre. I have played with

Berrick the first two seasons.

I really enjoy playing with

him. Stephen Moore Mr Replace

Saia Faingaa as starting

hooker. A win to Australia to

end a seven gave losing streak

fence the Kiwis. Warren Tredrea

is a very interesting player.

He plays that traditional

centre half forward type. It's

amazing how those guys are

battered around. They're binge

an strong but by late 20s,

Warren Tredrea was trying to

manage his injuries. The Lions

were going for four in a row

and Port Adelaide came out and

won that. That was the one

where Mark Williams taunted his

former sponsor on the

stand. Holding up the medal

around the neck. I thought that

was one of the great grand

finals in recent times

actually. Quite a dignified

exit by the cap feign. He almost left --

lost it at the press

conference. Playing around with

the kids will make him feel

better about what he has in

front of him. The perfect Auskick coach! That's right.

You can watch us live on the

web from anywhere. Visit the

main ABC News web site, we're

streamed live every day, 24

hours a day. Vanessa O'Hanlon

joins us for a look at the

weather now. A look at today's

satellite image as we brace

ourselves for rain particularly

in the north east. There is an

inland trough that's moving over Queensland and New South

Wales causing heavy rain.

Another trough over South

Australia that's also causing

showers and storms. Sh the

inland trough will continue to

cause rain over most of the

east. A low pressure trough

will make its way over the

south and then there is a

series of cold fronts to

follow.

That's the latest weather.

You're watching 'ABC News

Breakfast'. Still to come, we

will be speaking to former

government adviser on mental health John Mandoza. He

resigned spectacularly last

month over the Rudd

Government's inaction offer

mental health issues. We'll ask

him about Julia Gillard's new

approach, the Gillard

Government has announced a new

mem health policy yesterday.

We'll get him to give is his

report card score. We'll have a

review of some of the

newspapers. This morning we

will be joined by Barrie

Cassidy. Ichl oot Gillard

Government has been rocked by

more damaging internal leaks.

Last night Channel 9 reported

that Julia Gillard lobbied in

Cabinet against the government's paid parental

leave scheme and the size of intention

intention increases. Ms Gillard

says she doesn't respond to

anonymous allegations but some

of her colleagues are pointing

the finger of blame at Kevin

Rudd as the source. The former

Prime Minister says he never

comments on Cabinet talks. The

United Nations chief weapons

inspector Hans Blix says he

believes the war in Iraq was

illegal. Dr Blix made the

statement while giving evidence

at the UK inquiry into the war.

The man due to become the new

chief of BP says the company

will emerge from the oil spill

smaller and wiser. Bob Dudley

is in charge of the clean-up

and he will replace Tony

Hayward in October. 14-year-old

Dutch girl has won a legal

battle to try to become

youngest person to sail solo

around the world. A Netherlands

court lifted a child protection

order after it found Laura

Dekker had improved her

preparations. The young sailor

must complete the trip before

she turns 17 in September 2012

to make the record. Health

officials say there's strong

evidence to suggest the number

of women who've contracted

hepatitis C from a Melbourne

doctor has now risen to 35. The

link between the Croydon say

surgery and the cluster surgery and the cluster was

first revealed in haip when

there were 12 cases. A lawyer

bringing a class action over

the outbreak says she doesn't

understand why authorities

aren't more worried about other

clinics where Dr James Peters worked. The fallout from the

massive leak of tens of

thousands of classified US military documents is still

being felt around the globe.

Not only has it raised

questions about tensions with

Pakistan and the progress of

the war in Afghanistan, but

also the ability of the US to

keep secret its own military

documents. T White House's

immediate reaction to the

release of the document was to

play down their news

worthiness. In terms of broad revelations, there aren't any

that we see in these

documents. But behind the

scenes the Obama administration

is furious that the field intelligence and threat reports

were leaked. The Secretary of

State Hillary Clinton who was

in Pakistan just days before

the documents were released

dodged a question on it. I'm

looking foward to my meeting

with the Defence Minister. But

the State Department had

noticed that it was coming and

warned litres from both

Afghanistan and Pakistan. At

high levels, we gave an alert

to President Karzai, to

President Zardari and to the

other ministries on both sides

so they'd understand that -

anticipate the release of these

documents. Amongst the

thousands of pages, there are

reports involving Australians.

A December 2008 mortar

engagement with insurgents that

left Han Australian soldier

wounded. A July 2006 attack

where an Australian and Danish

soldier were injured, possibly

by friendly fire when their

fortified position collapsed.

An account of Australians

firing on a car at a check

point. Chin were taken to

hospital. There is a brief US diplomatic cable from April

2007, reporting that Canberra

was ready to nearly double its deployment but wouldn't

announce it for five days,

asking that the US not publicly

mention the decision. I

obviously am concerned to see

national security-style

material leak. I have sought

advice from the minister for

defence and he has told me our

Defence Department has

established a task force to

examine these documents. The

Australian-born whistleblower

who founded WikiLeaks, where

the documentless were released,

says it's important for the

public to know the truth. We'd

like to see this material, the revelations this material

gives, be taken seriously. Investigated by

governments. The US Government

has guaranteed it will be investigating exactly who

leaked the documents. We

continue to investigate the

source of this week and also to

assess t impact on our

security. A representative

from the heritage foundation is

a leading expert on defence and homeland security. He's shocked

so many classified documents

ended up in the wrong

hands. War is all about

knowledge and information. From

the enemy's perspective this is

a treasure trove to look out

are there names of Afghans we

with kill, there are American

locations we didn't know about?

Are there American procedures

we didn't know about that we

can get information on now?

From the enemy's perspective

there could be a lot of things

here. While many analysts agree

with the White House that much

of the material was already

known, Matt Schroeder an armed sales expert with the federation of American scientists says there are

worrying elements. The

revelations I found more

disturbing were the things

coming from Iraq, Iran's

apparent involvement in that

conflict. Evidence suggests

Iran is one of the main

providers of weapons and other

military assistance to anti-US

groups. Both the US and

Pakistani governments say the

masses of documents paint an

outdated picture of the efforts

and relationship between the

two countries. I won't stand

here on July 26 and tell you

that all is well. I will tell

you that we have made progress

in moving this relationship

forward, in having the

Pakistanis as I said earlier

address the issue of safe

haven, the issue of extremists

operating in that country. The

leaks, as well as exposing a

major breakdown in US security,

also risk creating more doubts

here in America about the war

in Afghanistan. Critics say it

will help convince Americans

that the nearly 9 year battle

is at a hopeless stalemate. The

cost of its Gulf of Mexico oil

spill has pushed BP into the

red for the first time in 18 years. The news of the

company's $19 billion quarterly

loss coincides with BP's

decision to replace embattled

chief check tiff Tony Hayward.

The new man in the job is

American Robert Dudley. First,

listen to closely to the

accent. Ware not going away. We

won't cut and run of the we'll

throw the resources of BP at

it. BP's new chief, Bob

Dudley, comes from Mississippi.

For the last month, he has been

in charge of BP's response to

the oil spill in the Gulf.

There Dudley missed out on the

top job at BP three years ago.

Now he becomes the first

American ever to run the

company. The man on the right

raised in the American south,

replaces the man on the left

born in Slough. You can see the

new chief in the corner in a

meeting with President Obama.

Now Bob Dudley moves to the

centre. We'll learn a lot from

this accident. It's a tragic

accident. The industry will

learn a lot. There is no

question we'll change as a

company and from those

learnings, we'll emerge wiser.

Robert Dudley has over 30 years

of experience in the oil

industry. He wants to keep BP

as the top producer of oil in

America. He will have to win

over men like these, fishing

here in Louisiana. They can't

get work because of the oil

spill. What do they make of

BP's new, almost local

chief? Damage is already done.

Now you're just trying to save

your company, save wildlife,

save everything around you. He

is just picking up the pieces.

Not sure yet. Depends on how

he runs things. Time will

tell That clean-up could take

years. The Obama administration

insists it doesn't care who

runs BP, just so long as the

company gets rid of its oil

slick. The biggest test a

President can face is his

response to a disaster. Many

here believe that President

Obama has sometimes struggled

to show he is on top of the

response to the oil spill. So

in some ways, the resignation

of BP's Chief Executive is a

new start not just for the oil

company but for the President

as well. It would be a smaller

and wiser company particularly

after taking that profit hit!

And the 35 billion it has to

fork out to help clean up the

mess in the Gulf of Mexico.

Smaller, maybe wiser, we'll

have to see on that

front. First it was the heat,

now the smoke that's making

life very miserable in Moscow.

Fires burning near the city

have seen it shrouded in an

acrid haze for much of this week, and it appears there may

be no relief in sight. A

record heatwave was bad enough.

Now smoke is also plaguing

Moscow. At times, thick haze

makes seeing difficult and

breathing down right

unpleasant. This is the cause.

Fires sparked by unprecedented

dry and hot weather. At least

26 forest fires are burning

near Moscow. Every day,

stretched cruise are trying to

guess where the flames will

break out next. That is unpredictable. You see how hot

it is this year. In some spots

it's plus 40, plus 50 degrees.

More of the smoke shrouding

Moscow comes from below ground

than above. There are more than

30 peat bog fires smouldering

deep underground. The only way

to fight these fires is to soak

these areas over and over. It

is slow and gruelling work. Me

low me a layer of peat is moss

is on fire. Once it ignites,

it's extremely hard to

extinguish. It could take two

weeks to put this fire out. By

the time they're done here,

chances are more peat bog fires

will have sparked up. Right

now, there are simply not

enough firefighting crews to go

around. Each day might bring

new fires. They do happen until

normal weather is established,

the fires won't stop. That

means until the heatwave

breaks, Russia's capital will be

be in for more days like this.

Now we've just noticed on

the wires this morning some

news of the Booker Prize now

known as the Mann Booker Prize.

A long list has been published

just before they get to the

short list, and a very short

number of people who have been

invited to the ceremony and

will win one of the most

prestigious prizes in

international fiction. Two Australians have been included

on the long list. One is

Christos Tsolkas, you might be

familiar with his book the

Slap, and also Peter Carey's

Pass rot and Olivier in

America. Along with people like

Rose Tremanin and Paul

Murray. An amazing achievement

to make that list, about to be

culled down. The Slap is in the

process of being made into an

ABC telemovie. It's in pre-production now. Probably

won't make it to our screens

for another year, but great

news for knows two

authors. Returning to the

federal election, during the

campaign we will be heading out

every day to a city or town

around the country talking to a

local about the issue that's

important to them. Today we

visit the electorate of Werriwa in New South Wales.

I'm a first-time voter. I

live in Ingleburn in the seat

of Werriwa. I'm a

communications student at UTS.

A lot of us are finishing off

our tertiary degrees. I feel

like our voices need to be

heard. Education definitely is

a main area. I will be

graduating with about $15,000

in de. When people consider

university they have to consider the fact that when

they graduate, they may not get

the job they wanted. They will

have this debt hanging over

their heads that they'll owe

the government. We're 18, 19,

we already have to think about

the fact that we will be

putting off buying houses and

cars because we say we're going

a law degree and we'll graduate

with about $100,000 debt. It

definitely mean things will be

harder. I'm worried after I

finish this degree, I might not

be able to find a job. And so I

might find myself needing to do

a second degree, which means

adding to my HECS debt or a

postgraduate degree which isn't

covered by HECS. That will mean

that I will have an enormous

debt. University used to be

knowledge, not necessarily

about getting a job. With the

tuition fees, we have to also

really consider the job aspect.

That takes a bit away from what

university traditionally is. I

love to see government

considering the fact that

students to do have fees and

that maybe lower HECS, take

away HECS, that would be great, essentially. But in the

meantime, bought cap on HECS. Keeping an eye on young people

and making sure those in the

tertiary sector are looked

after. Mark Latham's old seat

of Werriwa. If you want a look at what Australians have to say

about the issues that matter to

them, visit the ABC elections

page. You're watching 'ABC News

Breakfast' the the top stories

- the government has been hit

with more damaging leaks in the

midst of the election campaign.

Channel 9 has quoted unnamed government source as saying

Julia Gillard argued against

the paid parental leave scheme

and the size of pension

increases. Ms Gillard says she

doesn't respond to anonymous

allegations. The UN's former

chief weapons inspector Hans

Blix says it's his firm view

that the Iraq war was illegal.

Dr Blix made the comments as he

testified at a UK inquiry into

the war. A Netherlands court

has lifted a child protection

order after finding Lech Lech

Lech had improved her preparations to sail around the

world.

A look at the papers. We're

joined by Insiders presenter

Barrie Cassidy. Aren't they

happy little Vegemites in the

Labor camp? Aren't they ever!

The 'West Australian' gave this

story the most prominence.

Look, it's damaging for Labor

because it demonstrates there

is a person or persons within

the ALP who would rather the

ALP lose the election than have

Julia Gillard as Prime

Minister. Laurie Oakes sought a

comment from Julia Gillard.

When she blamed the Liberals,

that's when he exposed the

source. If it's not Kevin Rudd, it's somebody very close to him

who is now leaking this

damaging material against Julia Gillard. If the conversation

only took place in the

so-called kitchen Cabinet as

we're led to understand, that's

just four of them? Michelle

Grattan suggested the

discussions happened in kitchen

Cabinet. That leaves Lindsay

Tanner who has really just

taken one step to the left and

stayed out of it. Wayne Swan.

Not really in his interests for

the Labor Party to lose the

election. It does narrow the

field. Why where is all this

going? There are surely more

leaks where this has come

from? There might be. The impression I got last night was

whatever happens now, the Labor

Party doesn't operate like a

court of law. They don't want

proof. This suggestion that you

can't prove Kevin Rudd didn't

do this, they couldn't care

less. A lot of key people think there is no future for Kevin

Rudd beyond the election. Julia

Gillard will probably maintain

the line if he remains a team

player there is a job for him.

If she was to give him a job in

the ministry after the

election, it would tear the

Labor Party apart. This leak in

particular coming as it does in

the beginning of week 2 of the

campaign, does this actually

have the ability to completely

derail the campaign and perhaps

also mean that the Labor

Government loses? Whatever she

has in mind today will be

thrown totally offtrack as a

result of this. It's quite

damaging. It goes to the whole

family values thing. It's the

nature of the leak as well as

where it came from that's

particularly hurtful for Labor.

This suggestion when they were

ib talking about an increase for the pensions she said

something to the effect that

old people don't vote for the

Labor Party which shows a lack

of sympathy for older people

but also demonstrates the

nature of decision making, that it's politically driven if this

is what she said. Same with the

maternity leave. You will remember some women in the

Labor Party weres very disappointed with Julia Gillard

at the time. I know at the time

a lot of woman were

disappointed. They didn't ever

regard Julia Gillard as a great

standard bearer for maternity leave. New South Wales Labor is asking Julia Gillard to show

them the money. ALP to New

South Wales: drop dead T links

it to the fact that there are

only 16 hospital beds but

because it's of what it's going

on in Queensland. $742 million offered to Queensland yesterday

for a rail link at the

Redcliffe rail link. She was offering a ring-road around

Mackay. These sorts of things

are damaging to get a headline

like that. I suppose it's

trying to sort of stir it up a

bit and get a better deal for

New South Wales because as it

stands at the moment it looks

as if all the money is going to Queensland. This election

campaign, even though we're

still in the early stages more

than any other that I remember

seems to be a federal election

fought in about 15 seats, and

they're the only seats that

matter, they're the only voters

that matter and that's where

both the parties are targeting

all their attention. You can

almost understand it stirs up a headline like that when you

think this is really just about

some seats in Western Sydney,

some in Queensland amounted

that's it? And look, that's

often the case, they focus on

marginals but because most of

the marginals this time around

are focused in two State and Queensland in particular you

get more of an impression

that's where they're

concentrating their efforts.

When the Labor Party offered

the 740 million yesterday, Tony

Abbott within a flash said I

will meet that. Next! It

demonstrates the amount of pull Queensland has in this

election. What's your view of

the small target strategy? More

so than ever, I don't think I

have seen an election campaign where both political parties

are so anxious just to stay out

of the mire, just stay focused.

Follow the focus groups. And

really not say or so anything

that get them into trouble but

things keep coming out of a

clear blue sky. You pull up

some of the images out of the

'Women's Weekly' today. We have

some images from today's

'Women's Weekly'. You wills

have got the 'Financial

Review'? We have the 'Women's

Weekly' shots. That's published

today. It's like a 'Vanity

Fair' spread. 13 pages. She is

asked all the family questions,

the baby questions an also the

marijuana questions. That's why

you can't have too much

sympathy for her being bombarded with personal

questions . But they do this as

well, they go and chase this

kind of personal stuff, and so

I guess they have to take the

good with the bad. I was

surprised by the stumbling

nature of that answer to the

marriage questions. Would've

thought she would have a line

worked out immediately on that.

Don't ask me, ask Tim! She

doesn't have to have a plan

worked out in ... A line

perhaps. Yes. The 'Financial

Review'? Interesting in one

sense, when Tony Abbott was

getting into a bit of strife

because he said no action on

industrial relations for at

least three years, the

'Financial Review' talked to 20

influential business and trade

groups and they found they're

not worried about that.

Virtually no-one was pushing for industrial relations reform. They're more interested

in tax reform. They want

consultation, they want more

infrastructure, hand they want

a quick answer on climate

change. How can we maintain

this cracking pace for the next

three weeks? People say this

campaign is boring. I find with

two characters like Julia

Gillard and Tony Abbott, it

will never be boring. I want

to see the edifice crack both slightly on both of them. Tony Abbott is being incredibly

careful for someone who has a

reputation as being a truth

teller who will answer your

question when you ask it. He is suppressing just about

everything. That's working. The

big test for Julia Gillard will

be today I think. She is in for

a shocker particularly if the

CPI figures are worse than expected. Perhaps Tony Abbott

should just have coffee at home

with the wife. Take it quietly

for the day. Here is Paul

Kennedy with the sport

headlines. Ak loo at some fresh

pictures from London now.

They're getting ready for the

will be Olympics already. It

seems like a long time to go.

It's just two years to the day, and there they were just

launching the facilities and

updating people. That's Michael

Johnson, the four-time Olympic

gold medallist. Still holds the

world record for the 400m from

1996. That's Chris Hoy, near

quadruple gold medallist just

checking out the facilities

there. One of my favourite

players retired yesterday,

Warren Tredrea from the Port

Adelaide Power. He was the captain, the premiership

captain from 2004 that meet the

great Brisbane Lions team in

the last few years it's been

sad to see him hobbling around

and trying to get on top of his

injuries. He has had enough,

you play in that position long

enough, you will probably

retire around 30. A couple of

flashbacks from the 2004. We'll

hold on that for a couple of

seconds to show you how times

have changeded. There is ak unanimous doing great things

for the Lions and being popular

about it, too. The Wallabies from yesterday there is talk about the playing surface but

not from either of the teams.

The Wallabies and All Blacks

don't want to talk about that.

They're getting on with the

business. I want to show you

something from a paper this

morning. That's how large this

photograph is being run. This

is a graphic of it. It's a

photograph of a piece of paper

that Graham Henry the All

Blacks coach was holding. That

is the match plan for the All

Blacks. Oh no! A box

formation, a lot of stuff in

there that I'm sure only the

two coaches would be able to

work out. A could be an elaborate hoax. It is

elaborate, I tell you! All

Greek to me. Thanks, Paul. Vanessa O'Hanlon joins us

with the weather now. Some

rainy days ahead? That's

right. There is a lot of

moisture in the air, more so

than usual A look at the

synoptic there is plenty of

development. We have an inland

trough over New South Wales and

Queensland. That's dragging

rain across the north east, and

developing troughs over the

south west will move over

towards the south that will

drag the moisture into the

south-east over the next few

days and then of course we will

have a lot of rainfall today.

Around the States:

Stay with us. We have lots more ahead for you.

More damaging Cabinet leaks

threaten to undermine Julia

Gillard's election campaign. I

couldn't begin to speculate on

who would say such a thing.

Kevin Rudd? I couldn't begin to

speculate.

The UN's former chief weapons inspector says the war

in Iraq was illegal. A Dutch

court allows 14-year-old Laura

Dekker to sail solo around the

world. An Olympic legend helps

London mark two years until the

games.

It's Wednesday, 28 July. The

top story on 'ABC News

Breakfast' - the Gillard

Government has been rocked by

more damaging internal leaks.

Last night, Channel 9 reported

that Julia Gillard lobbied in

Cabinet against the

government's paid parental

leave scheme and the size of

pension increases. Ms Gillard

says she doesn't respond to

anonymous allegations but some

of her colleagues are pointing the finger squarely at Kevin

Rudd as the source. The former Prime Minister says he never

comments on Cabinet talks. Last

night on 'Lateline' the mir for

Women's affairs - the Minister

for Women's Affairs insisted

the Prime Minister had always been supportive of the

scheme. I can't begin to

speculate on who would say such

a thing. Kevin Rudd? I couldn't

begin to speculate. Kevin

Rudd e's supporters? But I have to reaffirm that the Prime

Minister has been an extremely

strong supporter of paid

parental leave. For more,

Melissa Clarke joins us now

from Canberra. Good morning. So

more damaging leaks, clearly

coming from the Labor Party,

because Laurie Oakes himself

has said that how bad could

this get today for Julia Gillard? It puts her under a

hell of a lot of pressure. What

we're seeing from the Labor

Party is the sort of behaviour

you would expect to see from an

opposition after an election

defeat. Having these sorts of

Cabinet leaks isn't something

that a unified government

seeking re-election, that you

would normally get from a party

in such a position. What we're

getting is these leaks, I think

it'd be the third in about two

weeks. First we had Laurie

Oakes revealing that there were leaks that Julia Gillard had

reneged on a leadership deal

with Kevin Rudd, then Chris

Uhlmann revealed some elements

of Kevin Rudd's attitude

towards Cabinet committees, now

we have this latest leak from Laurie Oakes that Julia Gillard

in Cabinet discussions about

the paid parental leave scheme

suggesting that apparently

electorally it wouldn't do Labor too many favours and that

the pension increase, maybe it

didn't really need to be as b