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Four men remain in custody

after an alleged terrorist plot

on Sydney's army barracks.

Pressure mounts on Malcolm

Turnbull as the Federal

Government steps up its attack

about the Ozcar affair. Bill Clinton makes a surprise visit

to North Korea and wins freedom

for two jailed American

journalists. A league argy-bargy, the new season

starts with a bitter slanging

match over a promotional snub. Good morning it's Wednesday 5

all. I'm Joe O'Brien. And I'm

Virginia Trioli. The top story

on News Breakfast - four men

remain in custody with still no

charges yet laid over an

alleged conspiracy to launch a

terrorist attack in western

Sydney. A fifth man Nayef

el-Sayed has been charged with

a terrorism related offence and

he'll be back in court in

October. He and the others were

taken into custody after 19

premises were raided in

Melbourne suburbs yesterday

morning. The police say the

operation against an army base

was seven months in the making and foiled what would have been

a devastating attack. A number

of men would enter into the

barracks, with automatic

weapons, with a view to killing

as many soldiers as possible,

should they have made the

entry, they would likely have

killed many many officers. We

work hard to ensure that we

maintain a constant level of

readiness. These activities

that happened or incidents that

happened are just backgrund so

what we normally train for. The

investigation has also

identified the alleged travel

of Australian citizens to

Somalia to participate in

hostilities in that

country. People don't like

violence. Violence is what

brought us here and if you run

away thousands of kilometres to

look at a safe place, a better

place to live, the last thing

you need to see is that again

to happen. The fact that the

alleged target was our own

military personnel who defend

our nation under our flag

wearing our uniform is also

very disturbing indeed. I'm

advised that events today do

not at this time warrant any

change to our national

counter-terrorism level, which

remains at medium as it has

been since the saept 11 2001 attacks in the United

States. In other news this

morning - the Federal

Government is stepping up pressure on Malcolm Turnbull

over the Ozcar affair. It's

flagged it will push for an

investigation into evidence

given by Treasury official

Godwin Grech at a Senate

inquiry. It's suggesting the

Opposition may have breeched

parliamentary privilege.

Malcolm Turnbull has released

correspondance which shows Mr

Grech drafted questions for the

Liberal Senator Eric Abetz to

ask him at the hearing. A

surprise visit to North Korea

by the former United States

President Bill Clinton has

yielded immediate results. Just

hours after he met the country's rechristive leader

Kim Jong-il State-run media

reported that two detaped American television reporters

one pardoned and released. The

news has added to speculation

that Pyongyang may be ready to

return to dialogue with

Washington. Trade talks will

dominate today's session of the Pacific Islands Forum in

Cairns. Australia had wanted to

launch talks on a regional

tread deal called Pacer Plus,

but a number of the smaller

Pacific nations are stalling.

They want more preparation and

the collusion of suspended

forum member Fiji in any talks.

In Sudan the trial of a woman

accused of dressing indecently

has been ayourned for a month.

Riot police tried to top cores

of women who protested against

the court. If found guilty he

faces a penalty of up to 40

lashes. And in on Thailand a

pilot has died when the

passenger plane he was flying

skidded off a run we while

landing on the reort idea of

Koh Samui. The been a cock

airways plane hit a trafnlg

control tower during heavy

rain. Most of the passengers on

board were tourist, everyone

were injured. There are no

reports of Australians on board

the plane. The Federal Government has rampd up its criticism of the Opposition in

the wake of the Ozcar affair.

The Consumer Affairs Minister

Craig Emerson told Lateline

that Tasmanian Liberal Senator

naur may have been in contempt

of the Senate when he asked

questions of Treasury official

Godwin Grech. You see send Senate inquiries are met to

have some weight, some authority, but when you

completely abuse those

processes by working on a

script, with a publicer is

vapt, you know that you're

misleading the Senate, you know

that you're engaged in

basicically all sorts of chi

containary here and only now

has the bhan revealed. The

Government believed that it's

got Malcolm Turnbull on the

ropes. For more on this Hayden

Cooper joins us from Canberra.

Good morning. A very rough day

for Malcolm Turnbull yesterday.

Just how damaged is he by all

this? He is undoubtedly

wounded, Virginia. It was a bad

day. But he did in his defence

step up and give the most

information he's given yet

about this case. His press

conference was lengthy, he

launched into the reasons why

he believes he was duped by

Godwin Grech and taken for a

ride basically. So Malcolm

Turnbull is hoping that that

policy of coming forward with

all of that information will

help him out, but but as you

saw the Government is going

down the path of pushing for a

privileges committee inquiry to

try and find out whether

Malcolm Turnbull and Mr Abetz

are in contempt of parliament. But in his attempt

to defend himself, some have

argued that actually that was a

bit of a self-inflicted wound

as well because in releasing

the documents that he did, the

correspond arns between the

Opposition and Godwin Grech, it

revealed even more clearly the

strange place that Godwin Grech

was in and according to some

the bells that should have been ringing for Malcolm

Turnbull? Yes, it did, it gave

a lot of information which

confirms very high level of

cooperation between Malcolm

Turnbull and Godwin Grech. So

sure, he's trying to suggest

that Godwin Grech was a willing

participant and in fact

suggested the Senate inquiry

and sent Malcolm Turnbull a

long email basically saying

many reasons why an inquiry

should be held and suggesting

the questions even that should

be asked but as you say it

confirms in the Government's

mind that Malcolm Turnbull was

entangled with this witness and

if it can be proved that the

witness was coached or

pressured then he and Eric

Abetz could be in a bit of

trouble although I think at the

moment it looks more like that

Godwin Grech was coaching the

Opposition rather than the

other way around. So is Malcolm

Turnbull safe from those within

his own party who might be

rolling their eyes at the way

he's handled this? At the

moment I think anyone else

would be mad to want to take on

Malcolm Turnbull's job before

the election. If he was

struggling before and if a Coalition victory at the

election looked unlikely

before, it's even less likely

now, and the trouble will be

that the next parliamentary

session will now begin in the

way that the last one ended and

that is the last thing that the

Coalition wanted. It will be no

surprise to you, Virginia, that

Tony Abbott was the man out

there yesterday defending

Malcolm Turnbull, he seems to

take this role on no matter who

if leader is, he did is so many

interviews yesterday pointing

out that sure, this is a pretty difficult time for the

Opposition but they will get

through it and he did this

again on the '7:30 Report' last

night. We made the judgment

last September Kerry that

Malcolm Turnbull was the best

person to lead to us the

election and we're going to stick with that

judgment. Regardless? We

are. So if it emerges over the

next few weeks and months that

Malcolm Turnbull is not recovering from this you're

going to allow him to lead you

potentially into ellal

oplifian? As long as Malcolm

Turnbull is leading the lead

the party he will lead the

party and Malcolm Turnbull is

not a quitter. Taken taking one

for the team there on '7:30

Report' last night. Finally, to

another subject all together.

The Pacific Islands Forum is

under way in Cairns, what's

expected to come out of that

Hayden? Well, yes it begins

today and Kevin Rudd actually

went up there yesterday. He's

already had several meetings

and that will continue. The

opening ceremony of course is

this morning, as all the

Pacific leaders gather and as

krudz plays the statesman, that

I think is another reason why

he wasn't willing to get into

Ozcar again yesterday and he's

obviously leaving that to his

Lieutenants. Hayden Cooper,

thank you. Labor's rule in the

Northern Territory is in

general di after the indigenous

policy ministerial Alison

Anderson quit. The Chief

Minister Paul Henderson has

moved into damage

control. Alison Andersonal has

tipped the Northern Territory

Government into crisis by

putting her words into action. I've always tried to

work internally but if I don't

see things happening internally

I'm one that will throw the

kitchen sink outside and try to get the attention of the people. Alison Andersonal has been frustrated with her

Government over delays to an indigenous housing scheme but

she had new concerns. An

article in Darwin's local paper

on Saturday criticised the Territory's indigenous

politicians, she says the piece

had her party's fingerprints

all over it. This was a dog

whistle to the electorate,

saying yourlile white boy Paul

Henderson is being flogged by

these black fellas. I find that

personally hurtful. Anybody who

knows Paul Henderson knows that

I treat people exactly the

same, whatever their colour,

their race, their ethnic

background, I treat everybody

the same. Alison Andersonal

says the Territory Government

has failed indigenous voters.

She wants a royal commission to

examine how Commonwealth funs

intended for indigenous territorians are being

spent. We will never close the

gap if we don't do things

properly. I'm calling for a

royal commission into the

Northern Territory spending on

indigenous funding The Chief Minister Paul Henderson says he

can still hold on to power and

as Alison Andersonal defected a

former Labor Minister Marion

Scrymgour who quit the party

two months ago decided to come

back into the Labor fold. That

means Labor retains 12 out of

25 seats in parliament. The

Government's fate now rests

with Independent Gerry Wood and

Alison Andersonal. If I was to

vote against the Government, in

my case I might be doing that

simply to reflect what I think a lot of people would be

thinking, that if two people

have decided to leave the Labor

Party, then even within their

own ranks there's an element of

no confidence. The Territory's

Opposition will now try to

persuade both politicians to

help them form Government. And

now we'll take a look at the

front pages of the major

newspapers around the country

and we'll start with the

Northern Territory. It's

featuring those political rucks rending the Territory at the

moment and who knows exactly

how that's going to line up and

there's a very odd graphic

there of Alison Andersonal

under state of chaos. The

'Herald Sun' has sketches of

the four men who appeared in

court accused of being part of

a terrorist plot. And the 'Age' is reporting the multiforce

operation was a pre-emptive

strike before the alleged

terror cell could obtain

automatic weapons. The

'Australian' says police

sphered suspects had recently

obtained a fatwa or religion

blessing to carry out an I an

attack within weeks. The 'Daily Telegraph' writes that Sydney's

Holland was the target of the alleged terror plan. The

'Sydney Morning Herald' reports

that the main entrance to the

barracks remains patrolled by unarmed private security

guards. The Adelaide

'Advertiser' says the alleged

terror plot involved triggering

a suicidal gun battle with

Australian solliers. The 'West

Australian' reports the plan

would have been the deadliest

terror attack on Australian

soil. The says the PM has

warned that terrorism is an

enduring threat. The

'Courier-Mail' reports that

Somali jihadists in the US have been recruiting would be

Australian terrorists for

years. And the'Mercury' has a

feature photo of what they're

calling a terror swoop and also

says a Tasmanian man was

murdered by someone he knew And

the 'Financial Review' takes a

political focus with the story

of Malcolm Turnbull blaming

Godwin Grech for misleading him

with the fake Ozcar email. If

you'd like to send us your

feedback -

The if stop stories this

morning - police in Melbourne

are still holding four men in

custody for anallied conspiracy

to launch a terrorist attack on

a industry army base. A fifth

man Nayef el-Sayed has already been charged with a


offence. Pressure mounts on

Malcolm Turnbull as the

Government suggests the

Opposition may have breeched

parliamentary privilege about

the Ozcar affair. And a

surprise visit to North Korea

by former President Bill

Clinton gets results. President

Kim Jong-il issues a special

pard yop for two detained

American journalists.

More now on that story that's come out of North Korea this

morning about the so-called special pardoning and release

of two American television

journalists. Who have been in

detention since March. Lisa

Millar joins us now from

Washington. Was Bill Clinton

the difference here? It seems

that he was, not that we're hearing anything or getting any

credit for his work here in

America, the White House and

the State department have both

held lengthy briefings today

where they were questioned on

and on by journalists who

wanted some information about

this surprise visit by Bill

Clinton and neither the State

department or the White House

were give anything information

away. They said it was a private visit and in fact he

had arrived unexpectedly in an

unmarked jet into North Korea

and that it wasn't anything to

do with the Barack Obama Administration. A surprise

visit they knew nothing

about? Yes,. You can read

between the lines and be sure

that of course they'd spoken

grately about this and exactly

how Bill Clinton was going to

be handle it. Of course, we're

only just getting bits of

information now, Joe, about it

and about the fact that the two

women, these journalists who

worked for a television

production company that Al Gore

was involved with, they were

arrested back in March, the

fact that they have been

pardoned but we're hearing a

bit of information from North

Korea's State media which is claiming that Bill Clinton

apologised for their behaviour

and also brought a message from

Barack Obama to the North

Korean leadership. Now, the

White House has denied that

they sent any any message over there with Bill Clinton of

course, so once we actually get

the American view of what went

on and the conversations that

went on, but of course Joe the White House and the State

department were so desperate

not to have anything jeopardise

this meeting while it was still

going on and it literally has

lasted for less than 24 hours

this visit. And these women are

still in custody as we

understand at the moment? They

are. There's no indication when

they will be released and it is

literally many the last 35 to

40 minutes that bits of

information has been hitting

the news wires letting us know

that the decision to actually

pardon them has been made so

you would seem to suggest that

blunt's visit has been very

successful, even if it was a

private visit that he's done on

his own behalf and not as a journeyman from the White House

or the State department which

of course the State department

being his wife, Hillary

Clinton's own department. So

now that we've had - no pillow

talk there Joe! Now that we've

had this prog on the incident

with the two detakened women,

who are the implications then

for North Korea's nuclear

program and the possibilities

of movement on that

front? Well, this was the big

question, whether Bill Clinton

was going to raise other

issues. State media from North

Korea says that in fact they

covered a broad number of

issues, you would think that

North Korea's nuclear program

may have come up, but we just

don't have that information

yet. This has been a real issue especially over the last few

months and the testings of

those missiles, North Korea has

given no indication that it was

prepared to return to any talks

if it involved anyone else

other than the US, that it

wanted to be treated with

respect with a capital R, so

whether having the former

President Bill Clinton turn up

- and it's been a while since

any other American official

diplomat of that statue has

turn up in North Korea - I

think Jimmy Carter, the former

President, was the last one, so

whether that - the sign of

sending Bill Clinton is enough

respect for North Korea to come

back to the table and agree to

start dismantling its program,

well, I'm sure we'll find that

kind of information out as it

starts dribbling out over the

next day or two Finally, there

were also some Americans

detained in Iran. Is there any

movement on that story this

morning? Plucky tourists who

apparently wanted to see the

world. This is a more difficult

situation I think because we're

having to rely on the Swiss

diplomats to try and broker

some deal and find out whether

they can get those three out.

They're two men and a woman who

were venturing into - across

the border from Iraq to Iran.

Hillary Clinton has said she's

very concerned but America of

course has no diplomatic

relationship with Iran, so this

is a slightly more difficult

story I guess for America and

one that's gathering a lot of

headlines over here a lot of

concern, but so far no movement

on that. Maybe Bill Clinton

will have to fly there on a

surprise visit as well. Lisa

Millar, thank you for that.

Snchts we keep getting told

whenever we have discussion on

this program by expert

observers, about North Korea,

what North Korea wants is

engagement, they want to talk,

so someone shows up and you get

a result like that. Mr People

should show up? It seems like

it doesn't. Initiative's defeated Presidential candidates have launched a

legal challenge to overturn the

country's election result. President Susilo

Bambang Yudhoyono won a second

term in last month's pole but

his rivals say the haeks was

far from fair supporters of Presidential candidate Megawati

Sukarnoputri protesting outside

Indonesiaa's Constitutional

Court. Apart from small groups

like this, there's been little

public outcry in support of

claim of widespread fraud in

last month's Presidential

elections. But inside the court

that's exactly what lawyers for

Megawati Sukarnoputri and

fellow defeated candidates were

claiming. The President's

rivals allege there were more

than 20 million dunicated or

fantastic tissue names on the

electoral role and that many

voters were disenfranchised

because of the problems with

their registration. Indonesia's

electorate commission, the KPU,

has already declared incouple

bent President Susilo Bambang

Yudhoyono the winner of the

election by a wide margin. The

KPU says President Yudhoyono

won more than 60% of the vote.

But in court, the colour

campaign claimed the KPU was

biased in favour of the

incumbent and that that's own

firs show the President only

polled 40% with their candidate

getting 3 p%. On those figures

there would have to be a second

round run you have poll which

is what they want the

Constitutional Court to order.

For the defeated Presidential

candidates this is their last

chance to overturn the election

result result. A loss here will

mean there'll be no legal

reason to stop the President

being inaugurated for a second

term in October. The owners of

the department store Myer are

looking at relisting the group on the stock market, possibly

even this year. But analysts

warn the parent rush to relist

might suggest even tough times

lie ahead for retailers as although Woolworths reports. Myer department stories have been a fixture in

Australian retailing since the

early 1900s. Despite the

chain's prestige status it was

an uneasy fit within the Coles

group for two decades. In 2006,

a new group of owners led by TP

G expect embarked op a 50 month

turn around program. Now they

say Myer could be ready for a

return to public ownership. TP

G may well have other

investment opportunities

they're look to move on to. Or

there might be just a feeling

among the current owners that

perhaps Christmas this year is

the best time to get the float

away, perhaps in anticipation

of a possible slowdown or some

yards in 2010. In ament to the

market Myer says -

Three years ago Myer was

making less than 2 Crowns

profit from every one dollar in

sales now it's making more than

7 cents in the dollar. The

chief executive says his team

hit their earnings target 11

months ahead of schedule.. They've managed to really

control their supply chip since

their selloff from Coles Myer a

few years back. They've managed

to target their discounting

much better through marketing

so rather than just discounting

to get rid of excess stock they're managing to discount to

target certain parts of the

market and bring people through

the doors. Their profit levels

are expected to be in the high

single digits this year. He

says it's been a tough period

for department stores but mire

has been helped by consumers

adjusting their spending

habits. Myer have almost

benefitted from this recession

is that earlier on they tried

to compete with Dow Jones,

after a while they realised

that it wasn't going to work so

they decided to cut back and go

back to the mid range that they

were excelling at earlier and

that coincided with consumers

cutting back on their spends. Myer's potential

relisting would come at a time

when equity markets remain well

below their peaks. That makes

this year's Christmas sales

even more important than usual

for Myer. It will be very

interesting to see how as the

Government stimulus package

moves from cash handouts to long-term infrastructure

projects how the consumer

behaves in the lead-up to

Christmas? Bearing in mind that

they were getting $900 cheques

last December so there's a

question as to how much

spending the consumer consumers

got on those disposable or

impulse buys. The executive chairman of the past three

years won be there. He's

stepping down immediately citing the additional

commitment that would be

required to pursue any

potential relisting. The

world's larmest carmaker Toyota

has reported a smaller than

expected quarterly loss. It too

posted a loss of just $# 70

million for the April-underquarter. The company's Prius gas-electric

hybrid was the top selling

model in Japan for that period.

It's the first time a hybrid

clinched the spot. Looking at

the finance figures now -

You just mentioned Toyota

there, Jacqui Smith who head it

for quite some time has been

appointed now the head of BHP Billiton. We were talking about

that a bit later on

Woolrich when he joins us on

the program. Soon Shaun Higgins

will be here with a look at the

weather. And also a review of

some of the newspapers today.

We'll be joined by Associate Editor of 'The Australian',

Cameron Stewart, he's been a

very hard work reporter, he is

broke the story yesterday about

the raid on the alleged terror

cells and the 'Australian's

been a bit under fire about

that ever since that

publication. It will be

interesting having a chat to

him about the police concerns

about the breaker breaking of

that story before the raids

actually happened. With sport

here is Paul Kennedy.. Thank

you. The A league hasn't even

started this season but has

already struck controversy.

Brisbane Roar will take on the

new team Gold Coast united this

weekend, but there were some

heated words from the Gold Coast coach Miron Bleiberg,

snubbed the media conference,

Bleiberg had a falling out with

the Roar and is once described

by captain Craig Moore as a

clown. This is what the bemused

Gold Coast assistant coach Paul

Okon said and of course Frank

Farina weighed in. Did meron

elect not to come here because

he doesn't want to pub citizen

this game, as he talked about

last week? Yes, I think that's

the reason why. He went to the

launch yesterday, but decided

that as you all are aware that

he wasn't to go out of his way

and help promote this match

so... What do you think about

that? I think that question is

difficult for me to answer. I'm

not the right person to answer

that and that's what he

believes in and I as his

assistant can only respect

that, that's what he wants. You

know I think it's a little bit disgraceful, a new club has

come into the commission after

four successful years of the A

league, both Gold Coast and

North Queensland have been

accepted into the competition

and let's face it - all of us

coaches, players, we have a

duty to promote our game. Yes

and in the Essendon football

club will stad sand by lovet

Murray who was yesterday

charged with drug possession.

Let's here from the club's

managing director.. A single

ecstasy tablet was allegedly

found in his place of residence

during a place search yesterday

which was part of the wider

operation. Nathan will

vigorously contest the spotion

charge in court in October.

Ununderstanding the process

that has taken place, the

character of Nathan himself,

and the work we know he does in

the community, we intend to

support him in this matter and

as such he will continue to

train and play at the club. To

cricket now, Andrew Flintoff

isn't the only player

struggling to be fit. Michael

Clarke strained his side making

a century at Edgbaston, he's

having treatment and hopes to

play through the pain to help

rescue Australia in the last

two Tests. So a bit of a soccer

spat there, there was another

fight though that broke out in

the soccer ranks overseas. Yesterday. It was between the

Australian under 19s firstlies

team and the Chinese team, the

China was leading 2-1 at that

stage and the referee should

have appointed a penalty so the

Australian team thought they

kicked up a bit of a stirfg and

then it was op for young and

old and the Australian team was

pelted with water bottles as

they left the field after

losing the match. There's a bit

of drama attached there. As you

understand it, was there

justification for the

Australians being - mifr that

they didn't get the penalty. I

haven't is seen any vision of

it and that photo was courtesy

of the China press, so - I

don't want to sound like a

10-year-old but who started

it? Well, let's assume that

Australia didn't start that

fight. If it makes you feel

better. I Miron Bleiberg didn't

turn up to that press

conference yesterday and - his

cardboard cut out did I'm

amazed there was a cardboard

cut-out. . Whoever brought it

it was perfect because

otherwise it would have been an

absolute no event and Miron

Bleiberg is trying to snub

because the game was relocated

from the Gold Coast have been

you to the Brisbane venue, and

the league was simply

justifying that by saying the Brisbane stadium holds a lot

more people, we think this will

be a great local rivalry, but

it goes back a couple of years

because Miron Bleiberg was the

coach at the Queensland Roar as

it was then, and got sacked for

Frank Farina to come in and has

since been called some nasty

names by people. A bit of

controversy a bit of publicity

for the A league. I think

ultimately it's pretty good.

Thank you. News Breakfast can

be watched live on the web from


Here is member for Higgins

with the weather and there's

not a lot of rape around

today.. That's right. Good. Not

very much rain. In fact settled

winter's day around the nation.

Low cloud in the south-east,

south of the Bight, high clefl

jet stream cloud, see it coming

in, that's mixed with a weak

cold front. But a broad high

pressure ridge will keep the

day mostly dry across the north. The weak front in the

bite will arrive in Tasmania

late tonight but off the coast

coast a strong cold front is

brewing. It will affect Perth

Thursday and the south-east

early Friday.

The top story on News Breakfast - the alleged

conspiracy to launch a

terrorist attack in western

Sydney. Four men are awaiting

further questions on an alleged

plot to attack the Holland. A

fifth man Nayef el-Sayed as

already been charged with a

terrorism related offence.

He'll be back in court in

October, he and the others were

taken into custody after 19

premises were raided in

Melbourne suburbs yesterday

morning. Police say the

operation was seven months in

the making and foiled what

would have been a devastating

attack. I a number of men would

enter into the barracks, with

automatic weapons, with a view

to killing as many soldiers as

possible, should they have made

ten try, they would likely have

killed many many officers. We

work hard to ensure that we

maintain a constant level of

led readiness. These incidents

that happen are just background

so what we normally train

for. The investigation has also identified theallied travel of

Australian citizens to Somalia,

to participate in hostilities

in that country. People don't

like violence. Violence is what

brought us here and if you run

away thousands of kilometres to

look at a safe place a better

place to live, the last thing

you need to see again that to

happen. The fact that the

alleged target was our own

military personnel who defend

our nation, under our flag,

wearing our uniform, is also

very disturbing indeed. I'm

advised that event Das today

not at this time warrant any

change to our national

counter-terrorism level, which

remains at medium, as it has

been since the superintendent

11, 2001 attacks in the United

States. Some of the reaction

there to the dramatic story

that broke yesterday morning.

For more, reporter Helen Brown

joins us now. Helen, how many

men are being held there

still? Three men are still

being held. The magistrate

granted police eight hours to

further question them. And

we're not quite sure where that

questioning is at. That eight

hours can with be done in

single block or in patches. I

guess maybe later this morning,

police may apply for more time

to talk to them. They may

decide to lay charges, and then

of course it would be up to the

magistrate to decide if any of

their requests were

reasonable. Do you know how

long police can hold them

without laying charges? Under

the terrorism laws, there are

set limits obviously, but

police do have a little bit

more leeway which is my

understanding, it is up to the

judge's discretion to decide if

their reasons are valid. There

was some discussion in court

yesterday about these men not

being fwrapted enough rest in

this questioning

process. Sorry. Could you say

that question again,

enough... In court yet there

was some discussion about this

men not being granted enough

sleep or rest in this

questioning process? That's one

of the concerns that is raised

by lawyers, especially those

who have dealt with those who

are charged with terrorism

offences. That in that eight

hour block, if those being

questioned aren't given enough

time to rest, to sleep, to have

some time out, then it's unfair

to them that they're put at a

disadvantage and once again,

lawyers are raising those

questions this morning, so I

guess this case also raises

those broader questions about

Australia's terrorism and the

rights of those charged under

them. Helen Brown in Melbourne,

thank you for that. In other

news this morning, the Federal

Government is increasing

pressure on Malcolm Turnbull

about the Ozcar affair. It's

flagged that it will push for

an investigation into evidence

given by Treasury official

Godwin Grech at a Senate

inquiry. It's suggesting the

Opposition may have breeched

parliamentary privilege. The Opposition Leader has released

sporpdance which showed Mr

Grech drafted questions for

Senator Eric Abetz to ask at

the hearing A surprise visit to

North Korea by United States

President Bill Clinton has

yielded immediate results. Just

hours after he met the

country's leader Kim Jong-il, State-run media reported that

the two detained American

television reporters would be

pardoned and released. The news

has added to speculation that

Pyongyang may be ready to

return to dialogue with

Washington. Trade talks will

dominate today's session of the

Pacific Islands Forum in karps.

Australia had wanted to launch

talk on a regional trade deal

called Pacer Plus but a number

of the smaller pafic nations

are stalling. They want more

preparation and the inclusion

of Fiji in any talks. In Sudan

the trial of a woman accused of

dressing indecent ly has been

adjourned for a month. Police

tried to stop scores of woman

who protested outside the court in Khartoum. Lubna Ahmed

Hussein say she was arrested

for wearing trousers, if found

guilty she faces a penalty of

up to 40 lashes. In north-east

China hat least 17 people have died when a partially

constructioned factory

collapsed. The two storey

building in the city of

Shijiazhuang housed an iron

casting company and crumbled

during a torrential downpour.

Three people were pulled alive

from the rubble and they're

being treated in hospital. A a

rocket strike at the heart of Kabul has further raised

tensions ahead of the

Afghanistan elections. Taliban

militants have claimed

responsibility. At least nine

rockets targeted Kabul

neighbourhoods. Two landed in

the diplomatic area, near the

US embassy and the headquarters

of the NATO-led forces. It

was early morning this man says

and thank god nobody was hurt.

Everybody was sleeping. We are

are very happy this attack

happened when there were not

many people on the streets.

Taliban Mel tants have vowed to

disrupt the lead-up to the

Presidential poll on August 20.

And the attacks may be having

the desired effect. This Kabul

resident says if the situation

continues, no-one will go to

vote on election day. Today, a

rocket hit my house, the next

time it will hit another house.

A Taliban spokesman says the

attacks underline the Afghan

Government's inabling to

control security around Kabul.

NATO and the US military have

poured thousands more troops

into Afghanistan in the last

few months to try to secure the

election. It's a crucial poll

for both Afghanistan and the

United States which has made

Afghanistan its top foreign

policy priority. Pakistan's

decision to free the founder of

Lashkar-e-Taiba has caused

comotion in India's

parliament. MPs were outraged

when charged against Mumbai

attack Haaser mind Hafiz Saeed

were dropped. There were scenes

of chaos as members of

parliament expressed their

anger at a Pakistani court

decision to indefinitely

adjourn the case against Hafiz

Saeed. An alleged militant who

once headed Lashkar-e-Taiba. The prosecution of Hafiz Saeed was

not done properly in the

Supreme Court. That militant is

a very dangerous accused. He

was detained after last year's

Mom buy anaks which 166 people

were killed. After a UN

Security Council resolution,

put him and his charity group

on an international terror

list. He was later released

from house detention, a

decision which Pakistani prosecutors sought to challenge. But that challenge

has now been lost and India is

furious. The leader of the

regional party says Pakistan

has betrayed India and accused

Pakistan of encouraging

terrorism. He's also are

critical of PM Singh for his

recent joint statement with the

Pakistani PM. Than tran this

man of the main Opposition

party said the home Minister

recently provided Pakistan with

a new dossier contains enough evidence against Hafiz

Saeed. Sit down. India wants

Pakistan to get tough in

helping to end terrorism and to

start the trial of five

militants held in recall pindy

for their alleged role in the

Mumbai plot. And you can

understand the anger in India

about that, on 'Four Corners'

on Monday night there was a

really powerful long format

program describing exactly what

happened in Mumbai with

telephone taps of instructions

from terror controllers in

Pakistan to the men with the

guns who were running through

the streets of Mumbai killing

people. It was just the most

powerful television I've ever

seen and if you get the chance

to see that 'Four Corners'

program you should. A pilot has

died and more than 30

passengers injured in a plane

crash on the Thai reort of Koh

Samui. It skidded off the

runway and crashed into an air

traffic control tower. The

Bangkok airways flietion was

trying to land in stormy

weather when it ran uf off the

runway and hit the airport's

old control tower. The jet was

flying from a tourist town in

the south-west with 68

passengers and four crew.

TRANSLATION: The plane slid to

the lift. It's nose then hit

the unused control tower and

the impact damaged the plane. We rescued the passengers by

gradually getting them out. It

took rescuers more than two

hours to free the co-pilot from

the wredge ak, six passengers

were also injured.

TRANSLATION: The four people

who were reported seriously

injured, two of them are

British, one is Swiss and one

is Italian. The most serious

injury is a broken leg. Several

passengers were treated for

minor bruises or shock. The

pilot of the plane had almost

20 years flying experience. The

airport was closed as

investigations began into the

accident. In 1990 a plane

trying to land at the same

airport crashed in heavy rain

killing all 37 peel on board.

Koh Samui is Thailand's third

biggest Island and one of the

country's most popular holiday

destinations. You're watching

News Breakfast - the top

stories this morning - police in Melbourne are still holding

four men in custody for

anallied conspiracy to launch a

terrorist attack on a Sydney

army base. A fifth McMananan

Nayef el-Sayed has already been

charged with a terrorism

related offence.. Pressure

poupts on mount as the Government suggests the

Opposition may have breech

breached parliamentary

privilege about the Ozcar

affair. And a surprise visit to

North Korea by former President

Bill Clinton gets results.

President Kim Jong-il has

issued a special pardon for two

detained American journalists.

We'll look at today's painers

in just a moment and Cameron Stewart from the 'Australian'

will be joibs. He was the one

who prok broke the terrorism

raid story after negotiating

with the Federal police over

publication date once he came

across the yarn about a week

ago.. However, Victoria's chief

Police Commissioner Simon

Overland wasn't happy about his

report. Here is what he said

yesterday. Obviously there was

reporting of this, these raids

in the 'Australian' newspaper

this morning, I am extremely

disappointed that the details

of this operation have leaked

in the way that they have and

will be vigorously pursuing the

leak from my end and I expect

that the Federal authorities

will be doing the same thing.

The AFP negotiated with the

'Australian' newspaper as I'm

advised in terms of having the

story run today. I am concerned that despite those

negotiations, copies of that

paper I'm told were available

on the streets here in

Melbourne at 1:30am this

morning, well before the

warrants were actually

executed. This in my view

represents an unacceptable risk

to the operation, an up isable

risk to my staff ch it's a risk

that I take extremely seriously

and is cause for great

concern. Simon Overland

speaking there at the press

conference at the time of the raids. Associate Editor of 'The Australian', Cameron Stewart

joins numerous to talk about

that matter and to look at the

papers today, good

morning. Good morning. What was

the arrangement that you struck

with the AFP and did you breach

it? No, we certainly didn't

breach it. The arrangement took

just to the background, in the

middle of last week, last

Thursday , I obtained information about this

investigation. Quite a lot of

information. I went to the AFP

and I said, "What comment do

you have?" They looked at it

and said, "Please don't

publish, you'll compromise the

investigation potentially if

you do publish" so the paper

agreed to hold off for - it was

five days in the end but we

just agreed to hold off until

the AFP gave us the green light

to publish. And they did that. They gave us the green light

the previous night before the

stories were published

yesterday. We got the call

saying that it was OK to

publish. Simon Overland knew we

were publishing and they also

knew the precautions the paper

was taking which was not to

publish the story in the first

three editions. It meant that

almost half of Australia h has

not seen the story because of

that situation. And that was

fine, so the paper went to

extraordinary lengths to ensure

that it hit the streets of

Melbourne as late as possible.

Now, if you ask exactly when it

hit the streets of Melbourne, I

don't know, but the production

is done by the editors in

Sydney but they - I can't be

specific on that myself but

they deny Simon Overland's

claim the paper was available

at 1:30am. They say that's not

the case. Can you understand

his concern if the paper was on

the streets and I guess there's

a definition of the paper's

actually being delivered to

news agents and then newsing as

actually selling them. Is there

a chance that the papers were

actually hitting the news

agents shops before these raids

went ahead? There are all sorts

of things there. Some papers

come down, they go to home

delivery, rather than for

general, and there's all sorts

of layers of editions which I'm

frankly not familiar with being

a writer based netball, however

I think that there is an incredibly minute chance of

that happening. The chances of

this was all discussed, with

police. At great length. They

agreed after the discussions of

this to go ahead and the

'Australian' kid precisely what

it said it would do. I just

think that Simon Overland is

being a bit disingenuous

here. Why. I want to ask you

specific able that. It's an

agreement with the police. Was

the AFP cross with you about

what you did or just Victoria

police? The AFP is fine with

us. They don't have the same

level of gripes that Simon

Overland has and it's

interesting because there's two

things - When you say the same

level of gripes, do they have

some gripes? It's a joint

investigation. I think that the

situation caused a quite a wit

of tension between the AFP and

victim police, that was obvious

at the press conference

yesterday. Simon Overland said

an unusual thing, he said in

the press conference openly, he

said, "I was disappointed after

criticising the fact the

article existed, I was

disappointed that within the

article Victoria police did not

receive what I thought was

their due credit." So he's obviously also upset about the

fact that he thinks victim

police has not got the level of

Kreft. He was upset on two

fronts and there was a two

fronts which is understandable.

He's is upset that the leak

happened at all. Why don't we

look through some of the papers

because the alleged terrorist plot is on the front page of

all the national papers. A day

after the 'Australian' mpt The

'Australian's got it on page

one. Take us through the cover

am as you see it from a very

particular and interested point

of view? Well, I'll start off

self-interestedly with our

paper. As if I could stop

you! We do have a fresh angle

today. What we've written is

that this Melbourne group was

seeking a fatwa to give you

religious blessing if you like

for their act. But it looks

like this might have been very

relevant to the timing of

yesterday's raids because a

Somali Australian man who when

to Somali to receive training

with Al-Shabaab had gone

through to get a fa what. He

understanding is that police -

did not whether h he'd obtained

one and it was a very awkward

situation because surveillance

did not pick up an answer to

that question either way and

they were intigly concerned

that there may be on the quiet

some sort of move to make the

alleged attack imminent. Is

there a suggestion that they

were having trouble getting a

fatwa from a Muslim

cleric? Yes, they definitely

had a lot of trouble. They

asked quite a few clearics who

turned them down. Interestingly

they didn't two to a Sheikh in

as in Australia which is quite

a reassuring thing because their judgment was that no

Sheikh would even do that or

possibly dob them in. So it's

interesting, that might well be

the cause, we don't know

definitively of the reason why

police went in yesterday

because even though the police

were very cagey about assay ing

exactly why they jumping yesterday it's quite clear that

this group was becoming more

active this their conversation

n intelligence the police were

getting and I think they

genuinely feared that it was a

matter of an attack within weeks Take us through the

terror attacks with the other

papers. Have you looked at the

other front pages as well?.

Yes, it's fairly very

competitive coverage in every

single papers, especially of

course the virp papers. I think

the 'Herald Sun' dominate Ms

Many pages to it. It's a very

big story across the country,

of course but in Melbourne in

particular, I think it's a huge

story . The other story

yesterday and today that's been

pushed to the side to an extent

is the Godwin Grech story. It's

incredible. It's just a

wonderful political soap opera

isn't it. I don't think I've

ever seen a better definition

of own goal in all my life when it comes to Australian

politics? Who could cast a

character like Godwin Grech and

Malcolm Turnbull now - the

coverage of the pain daers is of course looking at the fact

that Turnbull is now saying he

was misled, he was duped. The

choice of photograph by the 'Financial Review' shows where

people sympathies are I guess

editorial at the moment. It's a

very unkind shot? It's a

interestible shot, isn't it?.

It's absolutely appalling and

the thing is of course with the auditor report yesterday,

completely clearing the dwufrt,

the spotlight just goes

straight on to Turnbull, and

straight on to the matters of

his judgment and even though

yesterday he put out a very

comprehensive explanation as to

suggest that Grech in fact

wooed him and everything... In

the hope of putting a full stop

to the story. It actually made

it worse. It does. It's one of

those interesting things. You

would think that a public

servant coming to you and

giving you an email - it would

just raise some alarm bells,

yub? It's an interesting one.

It's just a huge thing. I'd

assume that sort of thing would

happen with political parties

not fairly regularly but every

now and then though? But

probably not with the gravity

of this sort of thing and I

guess he just showed a lack of

caution that was fairly

concerning. It's really just

comes to a judgment thing. I

think this will melt away and

it will be a colourful issue

but a non-issue for Turnbull

down the track but there is a

question of his judgment,

especially because he went in

so hard and I think that was a

problem. There's now the

question of political momentum

as well which is now it would

appear completely out of the

hands of the Opposition and

they have no leverage at the

moment. We've had the story breaking this morning which has

been mentioned in the papers

but it's moved very rapidly

today. Bill Clinton has had

great success over in

Pyongyang? Take us through

what is story is? Bill Clinton

went to pong Geelong and we

presume met with Kim

Jong-il. He did. There's a

photograph of him there.. OK. I

find this the most

extraordinary thing. I just had

this wonderful vision of their

dinner. This big long table

with Kim Jong-il at one end and

Bill at the other. It's just

an extraordinary story. He's

gone there and I think quite

clearly, he - the way this

would work is Clinton would not

have gone there without an

outcome knowing an outcome and

it seems like he has secured

the release of these American

journalists who crossed the

border. I can't wait for the

Team America take on this meeting. Super-Clinton. Absolutely.

I'd love to have been a fly on

the wall at that dinner. That would have been the most fantastic piece of

international engagement for a

long time. I'll look forward to

the interview with Bill Clinton

when he returns to America.

That will be fantastic. Cameron

Stewart, go and get some sleep.

I think I will Now a reminer

for you all, you can watch News

Breakfast streamed live every

morning. Here the Paul Kennedy

with sport. Thank you. The A

leek hasn't even started this

season but has already struck

kofrs. Brisbane Roar will take

on the new team Gold Coast

United this weekend but there

were heated words when the Gold

Coast coach Miron Bleiberg

snubbed the media conference.

Miron Bleiberg was once

described by captain Craig

Moore as a clown. Police have charged Essendon football club

player Nathan lovet Murray with

drug possession driving while

unlicenced. Lovet Murray has

told the club he'll vigorously

contest the possession charge

in October. In the meantime the

club says he'll continue to

train and play, police say they

found a single ecstasy tablet

in lovet Murray's home during a search. And Andrew Flintoff

isn't the only player

struggling to be fit for the

fourth Ashes Test. Michael

Clarke strained his side making

a century at Edgbaston. He's

having treatment and homes to

play through the pane to help

rescue Australia in the last

two Tests. We're going to need

him.. And Shane Warne said this

morning that Peter Siddle

should be rested or dropped for

someone else which is a big

call from one Victorian about

another Victorian, they like to

have their own in the side, but

I think Warny thinks that

probably Stuart Clark is a

better option. To return to the

Bomber story for a moment, it's

important to note that Murray

said yesterday - and he's boss

said this on his behalf - he'll

submit to a hair test a blood

test, whatever test you've got,

through it at me because he

says he's not a drug taker

which is nice and strong to

hear that. And the club is

stand big him. Thank you, Paul.

Here is haul Higgins with the