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this Tonight - no keeping up with

this Jones, 'Lethal Leisel'

wins an individual gold. To win

an Olympic gold medal, the

journey was the best

part. Georgian towns fall to

Russia's relentless advance. We

are in the process of invasion,

occupation, and anilation of

independent Democratic country. Good evening Juanita Phillips

Phillips with ABC News. Once

again, it's a tale of two

cities, the Georgian capital is

on alert as Russian troops

advance towards it. First though to Beijing, where

security is said to be turning

the Olympics into the no-fun

Games, Liesel Jones won gold,

but it couldn't hide the empty

feeling elsewhere. Lisa Millar

here is in Beijing. There's a sense

here that they are bunkering

down, Swat teams outside the

athletics village, and heavy

hardware moving in to protect

the media centre, a powerful

show of might. The Australians

are determined not to let it

faze them, Liesel Jones ruling

the pool, taking gold in the

100m breast stroke. In the

second fastest time in history.

This is the moment Liesel

Jones has been waiting eight

years for, a hug from her mum

and fiancee, with a gold medal

in her hand. She was just 15

when she competed in her first

Olympics, and she's done a lot

of growing up since then. I

suppose today would have been

relief for her, and, honestly,

it's very, very proud moment,

one of the better things I have seen. The journey has been

seen. The journey has been just

as long for her mum. Very

nervous, bit of an outhlt, I'm

upset. It's good. You are

admitting to tears in

there. Absolutely. Jones had

demand of the race from the

moment she dived into the pool.

She has been the undisputed

queen of the breast stroke for

the past four years, and showed

why today, touching in

1:05.17. Liesel Jones, a full

body length in front of the

rest of the field. May be the

greatest breast stroke ever.

Wins the gold medal. Being my

third Olympics, I should know

what I'm doing, not

disappointed with the time,

happy to be done and be on

Olympic gold medallist. Just

lick Libby Trickett, Jones

failed in Athens, after going

in as the favourite. You can never underestimate the

character of a champion. There was more joy for the

Australians in the 100m backstroke, Hayden Stoeckel

taking home the bronze. Stokell

gets a medal. He thinks he has

the best to come. He keeps

saying, "Bring on the 200".

Then there was Michael Phelps,

another gold. Making it three

down, with five to go in his

bid for Olympic immortality. He

made a field of great swimmers,

look ordinary. The Americans

are going off. All the

excitement poolside can't make

up for the lack of atmosphere

elsewhere. The only people here

on the Olympic green are those

with tickets, locals wanting to

have a look are kept behind the barricades. Beijing is in

danger of becoming the no-fun Games, organisers trying to

change the rules, to have

locals fill the empty

spaces. They are, well,

encouraged to apply and a

committee will organise. They

are not backing down on

security though, overnight it

became more overt, a response

to this week's stabbing of an

American tourist. Some things

you can control, they haven't

managed the balance between

security and creating that

atmosphere, I suppose. John

Coates says expect nothing

less, it's the reality of a

post-9/11 world. Australia has

won its first silver medal of

the games and it was inside the

Water Cube. 16-year-old Melissa

Wu, teamed with Briony Cole to

take the second place behind

China in the 10 metre

synchronised platform. Here is

Peter Wilkins. A Conservative

start by the Australians had

them well placed for a medal,

but with plenty to do in the

final round. Wu and Cole were

the last to dive, needing their

highest score of the competition to claim the

silver. 87.72. The Australians

take the said A The Chinese

pair saved their best for last

with a flawless dive to take

the gold. It was

the gold. It was a particularly

special moment for 16-year-old

Wu, of Chinese dissent, the

youngest Australian diver to

win an Olympic medal: a hip

injury to star Kookaburras

Jamie Dwyer was the only

disappointment in a win against

Canada, he could miss

Australia's next game, but the

defending champions uncovered a

new star in Darwin forward Des

Abbott, collecting a hat-trick

in the Kookaburras 6-1 victory.

The Hockeyroos started slowly

in their game against Spain,

but an early second-half goal

to Nikki Hudson inspired the

Australians to a 6-1 win. All I

remember was being on the

ground and gliming up and

seeing the -- glimpsing up and

the ball was in the back of the

net. The opals kept their medal

campaign on track. There were

nervous moments. Foul trouble limited Lauren Jackson's

minutes, the Brazilians

reducing a 20-point half-time

deficit to single figures. They

their players were dominating have a great fantastic team,

in the key. Jackson returned in

the closing stages putting the

result beyond doubt. Shortly

the Australian men's eight will

attempt to qualify for the

final through the repechage,

after an extremely rare rudder

failure, forcing them to stop

rowing in their

heats. Certainly it's a part

that when you do the precheck

beforehand, you would never in

a million years look at that

part. You check most other

things because it's a hidden

part, until you move the rudder

base, you don't know that it's

happened, freakish from that

point of view. Australia is

poised to keep up its record in

the equestrian, going into the

show jumping Australia lies

second, a few points behind Germany. China lead the United

States based on gold medals

won. Australia is fifth, just

behind Italy. And in breaking

Xinhua News Agency news here tonight China's

Xinhua News Agency is reporting

more violence in the country's

west, with a knife attack on

three police officers. The

Olympics have prompted a wave

of killings in the region, when

Muslim separatists are pushing

for an independent homeland.

That's all from Beijing, I'm

Lisa Millar. Today's other big

Lisa Millar. Today's other big

story now, and the President of

Georgia says his country is

being murdered as Russian

forces move closer to the capital, ignoring international

pleas to stop. The Russians

have swept behind the breakaway

regions of South Ossetia and

Adkhazia, forcing troops to

Tbilisi, how much longer will

Moscow fight is the big question. We have two

question. We have two reports,

Scott Bevan is in Southern

Russia, with thousands of

refugees who fled the fighting,

first, the ABC's Matt Brown

reports from the Georgian

capital, where they are waiting

and watching. Georgian troops

weren't giving up without a

fight, at least in Tskhinvali,

the capital of settia. Clashes

went on for most of the day,

but in the end

but in the end the soldiers

didn't stand a chance against

the might of the Russians. By

nightfall of the Georgeans were

in retreat after advances by

Russian troops. In another blow

the Russians surged into

Georgia from the other

breakaway province of Abkahzia

in the west. Georgian President

says his country is being cut

in half in an act of the

cold-blooded murder. We are in

cold-blooded murder. We are in

the process of invasion,

anilation of an independent

Democratic country. Earlier

Mikhail Saakashvili visited a

bombed out estate in Gorrie,

halfway between where the

fighting is taking place. Fears

of an attack sent him and his

aides diving for cover. The

panic spread, soldiers falling back towards

back towards the capital

yelling, "The Russians are coming".

TRANSLATION: We are so scared,

bombs are falling down, what

have we done to deserve this?" Thousands fled, many

others stayed, including the

elderly and frail, all

desperate for food.

TRANSLATION: There's no food

in the city. People are in pan

irk, stores and markets

irk, stores and markets are

closed. Here the capital,

people began stockpiling petrol

and other supplies. As each

day of this conflict passed

it's clear that the Georgian Government can't control any

part of the country if the Russians have different ideas,

and the sight of their

President ducking for cover

convinced most Georgeans to

fear the worse. The Georgian President offered

President offered a cease-fire,

Russia pushes on. Vladimir

Putin is no longer the Russian

President but still calls the shots.

TRANSLATION: The Georgian

leaders raised villages,

crushed children, burned

civilians, they need defending. Georgia's powerful

ally, the US upped the

rhetoric, demanding Russia pull

out. Russia has

out. Russia has invaded a

sovereign state threatening a Democratic Government elected

by its people. Such an action

is unacceptable in the 21st

century. Analysts say the end

game for Russia is to stop

Georgia from joining NATO, with

the Kremlin fearing it will be

surrounded by the Western alliance the those caught in

the middle, there's only grief

and suffering.

While the Russians moved

deeper into Georgian territory,

a flood of refugees is going in

the opposite direction,

according to Moscow tens of

thousands of people from South

Ossetia fled to Russia, as

Scott Bevan reports many head

for the southern Russian city

of Vladikavkaz. In a former summer holiday camp,

summer holiday camp, about 50km

from the Russian/Georgian

border, more than 400 are

seeking refuge, fleeing from

their homes in South Ossetia.

As the battle raged between

Russian and Georgean forces in

the capital of Tskhinvali, Milena Gogicheva escaped with

her baby daughter and 9 yooerld son, her

son, her husband stayed behind.

TRANSLATION: He phoned

yesterday, today there was

shelling of the city, I haven't

heard more. Many have stories

of terror to tell.

TRANSLATION: The shelling was

so bad, I sat in a basement for

four days. Local officials say

about 15,000 have crossed from

South Ossetia into this part of

Russia, many have headed for the City of

the City of Vladikavkaz, where

school classrooms have been

converted into dormitories.

Parents talk about what they

have been through. While the

children are encouraged to play

by social workers. It was a

horrible situation. At this

moment. They draw to express

their feelings. TRANSLATION: They are depressed. They are

depressed. They are scared.

Many children refuse to eat,

and they are not sleeping

properly. These refugees blame

Georgia for destroying their

communities and lives.

TRANSLATION: This is barbaric

to bomb civilians, we should

have at least been warned. The

people here say while they are

grateful to have somewhere safe

to stay, they are looking

forward to returning home. Many

forward to returning home. Many have no idea what sort of home

they are returning to. Or,

indeed, what sort of future

they face. Until there's

stability, how can I go home.

Everything is ruined. Yet as

Russian weaponry rumbles

towards South Ossetia, these

refugees know that their road

home remains a highway to

home remains a highway to war. And in breaking news,

reports are coming in of an end

to Russia's military operation

in Georgia, announced in Moscow

moments ago. The decision

coming as French President

Nicolas Sarkozy travels to

Russia for talks aimed at

ending the conflict. Australia

is forged new defence ties with

Singapore, Kevin Rudd has

signed an agreement to expand

signed an agreement to expand military training and

cooperation during a brief

visit there. Singapore is about

to send army duration to

Afghanistan, where the Taliban

have again targeted Australian

troops. Dana Robertson is

travelling with the Prime Minister. It's a greeting Kevin

Rudd is getting used to at home

and abroad. The Prime Minister

sees these students as

trailblazers in his new advance

trailblazers in his new advance

on Asia. What's the mission of

the new Australian Government?

To make it the most Asia

literate country in the Western

world. Mr Rudd's determination

to engage Australia in the Asia

Pacific century prompted talk

of a revival Colombo plan. We need to

need to visit how to expand our

cooperation through tertiary

educational

opportunities. Thousands of

Australians fought and died

defending Singapore from the

Japanese. The Prime Minister

acknowledged their sack very

fis and moved to strengthen

modern day ties with the

Singapore military, signing a

deal for closer

cooperation. Singapore is glad

to have a close friend in Australia

Australia and a strategic

part. Our friends from the

Singaporean armed forces will

soon be with us in support of our own troops in

Afghanistan. The agreement

coinciding with the injury of

three Australian soldiers in Afghanistan. Two special

operations troops were hurt,

one seriously when a roadside

bomb exploded beneath their

armoured vehicle in Oruzgan Province. But the

Province. But the medical

helicopter called in to help instead caused another

casualty, a soldier on board

injured in a so-called hard landing. Afghanistan is

difficult and dangerous

work. From shoring up regional partnerships to Federal Labor

Governments closer to home, the

Prime Minister leaves Singapore

bound for Perth and a day of campaigning with

campaigning with Premier Alan Carpenter. It's pilgrims,

progress of a different kind, from visitor to permanent res

dent. Some of those that came

to Sydney for World Youth Day

want to stay, saying it's not

safe for them to go home. More

pilgrims are expected to join

them once their visitors Visas

run out. The World Youth Day

party is well and truly

party is well and truly over,

some guests don't want to go

home. They are telling us they

are here, they are afraid, they

can't go home and near

help. Sydney based asylum

seeker centre has been helping

18 pilgrims stay

permanently. There's a lot of

African countries, Zimbabwe,

Cameroon, Burr undy. The

Catholic Church says it was

responsible for World Youth

Day, not the fate of the

pilgrims once it

pilgrims once it ended. I

don't know where they are from,

how many they are, I don't

really know. Several agencies

are dealing with pilgrims

plying to stay whilst on

3-month visitor visa assist. St

Vincent de Paul confirms:

I'm sympathetic to them as

individuals, but like all of

us, they have to follow the

laws of Australia. The ABC has

spoken to two World Youth Day

pilgrims who are seeking

asylum, they want to remain

anonymous, saying they are

broke and living in a

backpackers hostel. The Immigration Department won't

reveal the number of pilgrims who have applied

who have applied to stay:

We are hearing that people

have been sleeping out,

literally sleeping

out. Sydney's asylum seekers

centre says it's worried

pilgrims applying for Visas

aren't left destitute while

clips are assessed. A judge in

quoiffed has granted bail

quoiffed has granted bail to --

Queensland has granted bail to

Dennis Ferguson, accused of

sexually assaulting a

58-year-old girl. Ferguson

surrounded himself after a

warrant was issued for his

arrest. A Court of Appeal

overturned an earlier ruling

that he couldn't get a fair

trial because of adverse publicity. Today the District

Court freed Dennis Ferguson on

bail subject to strict reporting conditions Now

reporting conditions Now we

potentially will have him in

the community for 12 months

before he face as trial. He's

at an undisclosed address while

his legal team gears up for a

High Court change. Life at Long

Bay jail returns to normal,

prison officers resuming duties

for the moment. Staff met at

the jail this morning to

discuss a recommendation by the

Industrial Relations Commission

that work bans be lifted. Inmate have been

Inmate have been locked in

their cells for longer than

usual for the past week. The

men decided to adhere to the industrial relations

recommendations and return to

work to give the union and

management the opportunity to

negotiate the security and

safety concerns that we have.

The workers say they are concerned about staffing levels

on the boom gates and in the

towers. We have said that we'll

talk and consult on the

talk and consult on the issues.

We won't increase the position

in the Long Bay hospital, it's

an agreed staffing. The parties

report back to the Industrial

Commission on Thursday. Lawyers

for the billionaire businessman Richard Pratt have told the

Federal Court that the case

against their client is a

setup. They have accused the

ACCC of trying to further its

campaign for the

criminalisation of cartel

conduct, but prosecutors say the evidence will

the evidence will speak for

itself. Richard Pratt chose not

to attend the preliminary

hearing for his case, and if

his legal team gets its way, it

won't go to trial. In court Mr

Pratt's lawyer Robert Richter

claimed the ACCC waged a

concerted campaign to set his

client up. Mr Pratt faces four

charges of providing false

evidence to an ACCC hearing in 2005.

2005. In a civil case brought

by the consumer watchdog his

company Visy was fined $36

million last year after

admitting fixing the price of

cardboard packaging with rival Amcor. Robert Richter told the

court the call was made not to

move on criminal charges so

evidence could be gathered in

criminal proceedings, saying:

Mr Richter said chairman

Graeme Samuel wants to use the

case as part of his agenda for

the criminalisation of cartel

conduct. Prosecutor Mark Dean

SC said suggesting that people

had targeted Pratt for improper

or personal reasons was an

extremely serious allegation

with no foundation. No date has

been set for a further hearing,

but Mr Richter said the case

but Mr Richter said the case

needs to move fast because his

client isn't a young man. The

Australian dollar has taken a

dive for the 11th day in a row

putting pressure on the family

budget, it's slowing the fall

in petrol prices, sending up

the cost of the imported goods

like washing machines and

fridges. The prospect of lower

interest rates, a fall in commodity

commodity price and a resurgent

US currency are blamed for the

slide. There are some benefits. What a difference a

month makes, on 15 July the

Australian dollar was at 98 US

cent and rising, today it's 88

cent and falling. By the middle

of next year the Australian

dollar will be down to about 83

cent, and behind close to

around 77 cent as a long-term

around 77 cent as a long-term average going forward. With the

Reserve Bank yesterday

predicting a dramatic slowing

in the Australian economy, the

fall in the dollar is

timely. It stimulates

exporters, particularly the

mining exporters, commodity

prices, coming off, are at high

levels, and it's also

stimulating the tourist sector,

and some of the other sectors exposed to the international

economy. Such as the drought-hit farming

drought-hit farming sector,

which is done the numbers and

sees a windfall from a lower

Australian dollar. We talk

about a 10% decrease in the

value of the Australian dollar

against the US currency, we are

talking about a $1.9 billion in

farming incomes. The bad news

is motorists won't get the full

benefit of the recent plunge in

the price of crude oil.

According to Commonwealth Bank

According to Commonwealth Bank

calculations petrol should drop

5 cent a litre from the

national average of $1.50. If

the Australian dollar was at a

high of 98 cent it would be 17 cent. Electrical goods sold in

Australia are importd, meaning

prices will go up if the dollar

falls. With the economy already

slowing and sales dropping,

it's come at a bad time for

it's come at a bad time for retailers. Sales have gone up

80%, refrigerators and washing

machines will be expensive. With the dollar going where it

is, that's a double whammy. The

only saving grace for stores like Harvey Norman is the

Olympics generated a short-term

boom in sales of televisions. In other finance

news, business conditions have crashed,

crashed, the low elevels in

seven years, evidence that the

economy is slowing sharply.

Here is Briony Cole. According

to the latest -- here is Alan

Kohler. Trading condition and confidence about the future have fallen sharply. Confidence

has been down for a while, the

gloom is turning into reality.

The elements of the business

survey are at recessionry

levels, such as forward orders, employment

employment and profitability, falling sharply indeed.

Businesses are in cost-cutting

mode, trying to hold profit

margins against weak revenues

and rising input price,

unemployment is likely to start

rising. Here is where the

Australian dollar is trading.

Down another cent. Against the

trade-weighted index is back to

where it was at the start of

the year. Although this is

partly caused by a slow down in the Australian

the Australian economy, which

will see interest rates fall,

it's also got a lot to do with

a resurgence of the US dollar.

In the past three weeks the

greenback came back 7% against

the Uro, some brave analysts

are suggesting it may have

halted. 7-year slide that began

after 9/11. The side effect is

that precious metals prices collapsed. Gold

collapsed. Gold falling more

than $36 dollars, silver

dropping 8%. The share market

closed less than half a percent

higher. St George rising 3.5%,

with a 12.5% lift in profit,

improving sentiment among the

banks. Rio Tinto bouncing 2%

and Worley Parsons jumping 3.5%,

3.5%, after announcing an

ambitious plan to build solar

power stations. Maina Gielgud

wants to prove a point, the

former prima ballerina wanting

to show that age doesn't prove

a barrier, she's making a

comeback at 63. If the show

fits where it, Maina Gielgud

has collected her fair share as

a prima ballerina. Whatever you

do, don't move. She's worn or

worn out all of these and

more. Giselle I did 200 times.

So it adds up. Maina Gielgud

has broken in footwear with the

world's best, including Rudolf

Nureyev. After retiring as a

dancer in 1981, she led the

Australian ballet for another

14 years, now Maina Gielgud is

returning to the stage in a ballet called 'The Exquisite

Hour', it's a duet based on a

play by Samuel Beckett, about

an ageing dancer. There's lots

of memory, forgetfulness, and

sort of daddering, and asking

questions, " What time is it?",

things like that. The ballet has been created especially for

her, even so, getting back into

shape took time, at first she

felt like a beginner all over

again. And every little step

up, every time you can actually

do a pica on to arabis, it's

like Christmas. The hard work

paid off, helped by knowing

where to find the short

cuts. Do you fake a

cuts. Do you fake a built? Some

things canned be faked. Maina

Gielgud was up there on point,

a skill she first learnt when

she was six years old. After

peaking as a dancer past her

prime, she promised to retire

gracefully and for good. Time

to check the weather now, and

with the cycling time-trial on

tomorrow, let's see if the

conditions will be better than

the last road race. The good

news is it won't be wet but

humid and overcast with a top

temperature of 31 expected in

Beijing. For the second day in

a row pollution levels are

below the World Health

Organisation goal of 50.

Maximum temperatures were

warmer than it felt in

warmer than it felt in Sydney.

Cold dry winds kept the wind

chill down into single figures,

as wind drops, so will the

temperatures, we'll see frost

across the western suburbs.

Chap sticks had a work

occupant, fresh and dry

south-westerly winds, most of

the state with temperatures

below average, except for the

South Coast. High cloud

developed in an active

developed in an active jet

stream and a front producing

showers and snow in the

southern inlands. Rainfall was

light, most of the totals

falling as snow. Today was no

different with light and

isolated falls, some of which

fell as snow over the southern

ranges. Temperatures over the

south-east, it fell as a front

moved through, snow at low

levels around Hobart. Fire bans

continued in Darwin. Now the

jet stream over the northern

half of the continent is

high-level cloud, it won't

bring rain. The cloud band

associated with the front in

the south-east will produce

further showers and snowfalls,

moving into the Tasman Sea,

with a high in the Bight and

deepening low off southern New Zealand maintaining dry and

strong south-west winds keeping

temperatures cool. It will keep

most of the state dry with rain

along the southern slopes and

Alps. The winter chill

continues in Adelaide,

Melbourne, Hobart and Canberra.

Little improvement on the

conditions until Sunday. Gusty

west to south-west winds across

much of NSW tomorrow with dry

weather after early frost,

there will be early showers

falling as snow above 900m on

the central and southern ranges, but most of

ranges, but most of the showers

will be confined to the western

slopes of the far southern

ranges and high cloud over the

northern inland. In Sydney a

sunny day after early frosts in

the west.

Thanks for that. Now, just

repeating tonight's breaking

news, reports are coming out of

Moscow that Russia is ceasing

all military operations in

Georgia. The Russian President

is quoted as saying the Kremlin

achieved its military

objectives and will agree to a

cease-fire. That is ABC News

for this Tuesday, the '7.30

Report' is next, I'll be back with

with updates during the

evening. Goodnight. CC

Welcome to the program. And

first to the conflict between

Georgia and Russia, where news

has broken that the Russians

may be about to call a halt to

their military operations

inside Georgia, the news from

Moscow that Russian President

Dmitry Medvedev indicated a

cease-fire was in the offing

came after the gornalan capital

Tbilisi was rocked

Tbilisi was rocked by an

explosion believed to be by a

Russian bomb. Tanks had

reportedly moved closer to

Tbilisi. The Kremlin said the

only way to end the fighting is

if Georgia withdraws from the

breakaway South Ossetia region,

Matt Brown is in the capital

Tbilisi, and I spoke with him

by satellite a short time