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ABC News Breakfast -

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(generated from captions) The pressure increases op

Malcolm Turnbull after Godwin

Grech is accused of leaking

Treasury information to the

Coalition for years. Obama

lashes out at Tehren as Britain

expels two Renan diplomats in a

tit-for-tat exchange. Peter

Garrett tells an international

summit that whales are worth

more alive than dead. And a

shock exit for Jelena Dokic but

Hewitt and Stosur are through

to the second round at women

well.

Good morning. It's Wednesday

24 June. I'm Virginia

Trioli. And I'm par bar. The

top story on News Breakfast -

the Federal Opposition Leader

Malcolm Turnbull is under

renewed pressure this morning

about his relationship with

Treasury official Godwin Grech.

The ABC has learned that Godwin

Grech has supplied unofficial information to the Coalition

for years. Federal police are investigating whether Godwin

Grech was involved in creating

the fake email at the centre of

the Ozcar affair and someone

from Treasury is also believed

to have leaked information

about other government

policies, the bank deposit

guarantee and FuelWatch. All of

this doesn't bode well for

Malcolm Turnbull who's being

called to explain all that he

knows about the forged email as

well as his tealings with

Godwin Grech. Opposition's get

their information from lots of

sources, even from journalists.

We get information from

journalist, we get information

from FOI lau, we get them from

the parliament, we get them

from public servants, and from

a range of different sources.

If somehow you're suggesting that the Opposition should be

in the business of revealing

its sources then I would say to

you and the ABC, Jan Ullrich

should reveal his sources. Opposition Treasury

spokesman Joe Hockey speaking

there on Lateline last night.

Hayden Cooper joins us now.

This story just runs and runs. It gets worse for Malcolm

Turnbull as it goes along and his observations last night

when he was door stopped and

questioned on this issue seemed

to really put him in the

hotspot? It did indeed and he

gave a very similar response to

Joe Hockey which is to say that

we're not going to reveal our

sources. It will be interesting

to see if the response is the

same, if this ends up being

asked by the police as well,

given their involvement in this

matter, but politically the

problem for Malcolm Turnbull is

that each day his links to

Godwin Grech appear to be

getting stronger and that will

only create more suspicious

about what role or what Mr

Turnbull knew about the fake

email. And at this point,

Virginia, he must be pretty

desperate for the week to

end. Desperate for the week to

eend even while the Opposition

seems to be in a point of

disarray over a number of

issues and bits of legislation

facing the parliament as well.

What comments are emerging from

the party room in relation to

Malcolm Turnbull, and his own

colleagues' view of his

behaviour, and his judgment? It

was a fairly long party room

meeting and I think it

reinforces something we talked

about a couple of days ago in

that this whole week has in a

sense demonstrated Malcolm

Turnbull's impa, and there is

the very clear that - and the

it's being voiced by now some

in the Opposition - that Mr

Turnbull shouldn't have dived

head first after the PM op

Friday night because it has now

spectacularly backfired and as

you say, the up rest on the

Coalition backbench is growing,

on this one and some are

beginning to point it out and I

think also it's demonstrated by

the election coming through to

the media, especially on this

latest question of Godwin

Grech, so there certainly are

nom discipline problems and

Malcolm Turnbull's having a

pretty hard time in keeping his

party together not only on this

but several other matters as

well Is it too early to talk

about whether Malcolm Turnbull

is going to survive in his

position as lard? I noticed the

'Age' newspaper managed to get

through to Peter Costello in

Israel and ask him whether he's reconsidering given what's

going on. His response, "no

way." So at the moment there is

a lack of a leadership rival

but it doesn't mean that

Malcolm Turnbull is not

significantly damaged by this,

and what this means in the long

run is that it will be only

destabilise his leadership and

it may well lead to further

problems for hem. But they will

have to be overcome, Malcolm

Turnbull has had his swagger

shaken somewhat this week but

he is still trying to put on a

brave face and go after Wayne Swan and yesterday in that

party room meeting he said to

all his MPs, "We should not be

shy and reserved" which I think

is code for "Guys we're getting

beaten around the head but

whatever you do don't let on

publicly that is the

case." Lead with your jaw.

Finally, on the issue of

legislation before the

parliament and also the

Opposition's position, update

us on what's likely to happen

with Port Pirie pop in the up

per - pop pop in the Upper

House. That one has come up

already this week and there was

quite a backflip drive yep by

the fact that the last thing

the Coalition want social

security an early election.

There are a couple of other

pieces of legislation only

enforcing the problems the

coalition has. There's likely

to be another split today on a

fairly obscure immigration bill

when that goes before the lower

house and of course on ETS, remember it was all going to be

about ETS this week before what

happened on Friday, that has

basically been put off until August, the Coalition managed

to move that to the bottom of

the list of bills being

considered and that means that

probably won't arrive at a vote

this week and that will delay

it for a couple of months,

thereby securing Malcolm

Turnbull a little bit more time

to try and marshall a keerpted

position among his team. - a

coordinated position among his

team. There's a lot to comment

on this morning and of course

the Ute-Gate affair rolls on.

And to other news now and

Obama has dismissed allegations

that the United States is

provoking unrest in Iran as

absurd. The US criticised

Iran's violent crackdown on

protests about the country's disputed Presidential election.

Iran has also provoked a

diplomatic row with the British

Government. Overnight Britain

expelled two Iranian officials

from London after two were

kicked out of Iran. The

Environment Minister Peter

Garrett has told the international whaling

commission whales are worth

more alive than dead. Prague

said he supported an

international fund for animal

welfare report which said whale

watching generated $2.f billion

tourism last year. Australia is

trying to use the Portugal

summit to stop Japan, Norway

andiseland from killing whales.

The number of people killed in

a train collision in Washington

has risen to nine. More than 70

woers injured when crane

crashed into a stationary

carriage during peak hour. It's

the worst crash in the city's

rail history. More than 50

asylum seekers will be taken to

Christmas Island after a boat

was intercepted off Australia's

west coast. Indonesian

authorities also say they've

detained 1 # Iranians bound for

Australia. The latest asylum

seekers coincides with the

release of a report which says

the cost of the Christmas

Island facility has blown out

to more than 100-00-0000. And

Australian woman who spent six

months in a cue yat which jail

says she's been haunted by the

experience. Nasrah Al Shamery

returned home after she was

convicted of verbal aye

assaulting cue yit wit's ruling

emir. The mother of search says

she was given food every two to

three days. Returning to the US

where Obama has dismissed

allegations from Iran that

America has been stoking

anti-Government protests in

Tehren. Barack Obama spoke a

short time ago. Let's listen to

what he had to say.. The United

States and the international

community have been appalled a

outraged by the threats, the

beatings and imprisonment of

the last few days. I strongly

condemn these unjust actions,

and I join with the American

people in mourning each and

every innocent life that is

lost. I've made it clear that

the United States respects the

sovereignty of the Islamic

Republic of Iran, and is not

interfering with Iran's

affairs. They've got some of

the comments that I've made

being mistranslated in Iran,

suggesting that I'm telling

rioters to go out and riot some

more. There are reports

suggesting that the CIA is

behind all this. All of which

are patently false but it gives

you a sense of the narrative

that the Iranian Government

would love to plan to. Well for

more Kim Landers joins us now

from Washington. Given that the

has been under a bit of

internal pressure for not being

rhetorically tough enough on

Lyn Iran was that a change in direction? It wasn't a change

in as far as his policy goes

but it was definitely a toughening of the language that

the has been using about Iran.

Saying that he's appalled and

outraged by the beatings and

some of the violence that he's

seen, the imprisonment of some

of those protesters. Directly

responding to Iran's criticism

that the sus meddling in its

internal affairs but saying

that those accusations are

false. They are all much

tougher language from the, he

has been accused by some

Republicans of being Timmied,

what I think he's trying to do

is carefully calibrate his

spotion, try not to make this

situation all about the US, but

he has obviously detected a

need to try to sort of toughen

up the language a bit. So what

are the consequences now, what

next do you think in terms of

the US approach to Iran? Well

despite Obama's tougher

language today he won't say

what the consequences for Iran

are if it continues to crack

down on these protesters, if we

continue to see this unrest. He

simply won't spell that out. He

keeps talking about possible consequences for the

international community but he

won't say what they are. The

other thing is he is leaving

the door open to negotiate with

this current regime, the US is

sort of looking at this

situation and saying "Well, if

Mahmoud Ahmadinejad remains in

power, the same regime that

Obama upon coming into office

reached out his hand to and

offered to hold direct talks

with Iran about its nuclear

program, if this same ruling

regime remains in power, these

are the blokes that Obama is

going to have to deal with and

so today he was also making it

clear that the door is not

closed to direct urs

negotiations with Iran. For

obvious RSPCA we're not seeing

the same situation that's

occurring with Britain now

where you're getting this tip

for at the diplomatic row? Well

you're seeing protesters

demonstrating outside the

British embassy in Tehren, the

US doesn't have diplomatic

interests in Iran, hasn't had

for many decade numerous so

you've had a situation where

rip has expelled two British -

where Iran has expelled two

British diplomats. The US and

rip can't get into that

tit-for-tat game because there

respect diplomatic relations

between these two

countries, But they kick out

the journalists. Thank you for

that. Returning to the

international whaling

commission meeting in Portugal and both Australia and New

Zealand have refused to accept

any compromise in their call

for a ban on killing whales the

the name of scientific

research. Europe correspondent

Philip Williams reports. The

fundamentals haven't changed,

Australia is still leading the

anti-whaling charge, the

Japanese and European whaling

nations defending the practice.

At the international whaling

commission meeting in Madeira, environment Minister Peter

Garrett was sending the message

that live whales are worth

forrer more than dead

ones. There are great economic

benefits from whale watching,

that whale watching is an

industry which is growing right

around the world and that the

potential for communities to

generate sustainable livelihood

from watching whales, not

killing them but watching them,

is significant. Also in

Madeira, Australian Olympic

swimming champion and anti-whaling campaigner Leisel

Jones who spented a petition

calling for an end to the

killing. There's certainly no

humane way to kill a whale and Australians also believe in

that as well. These wails take

over an hour to die. They're

using harpoons that detonate

inside its body But it's the

result on the floor of the

conference that has the most

bearing p on the future of

whaling and no-one is expecting

a breakthrough. Agreement with

Japan on a swap allowing whales

in northern rather than

southern waters looks unlikely. Their controversial scientific

kill to continue. It's the

Japanese are breaking

international law. The Japanese

are killing whales in defiance

of an internationally agreed

moratorium. What one of the

most important international

environmental agreements ever

reached between the Governments

of the world and Japan has just

ignored it. At the same time,

Australia and New Zealand have

agreed to mount their own

scientific research expeditions

to Antarctica, the big

difference, no whales will be

killed. Now to the front pages

of the major newspapers around

the country. The 'Australian'

says the Coalition has been

drawn even deeper into the

Treasury leaking inquiry. The

'Canberra Times' reports

pressure is on Malcolm Turnbull

after claims that Treasury

official Godwin Grech is a

Liberal Party mole. The 'Age'

says Malcolm Turnbull is facing

criticism from some of his own

MPs about his handling of the

affair. Malcolm Turnbull's

authority over his party is

slipping according to the 'Sydney Morning Herald' this morning. The Adelaide

'Advertiser' says Treasury

official Godwin Grech is in the

firing line over Treasury

talks. The 'Northern Territory

News' says police are

investigating an arson attack

on a Territory property. The

'Herald Sun' says a woman who

claims she was raped by a

Carlton football player has

called on former club John

Elliott to help her. Australian

States are set to borrow more

than $2230 billion to offset

falling revenue according to

the 'Financial Review'. And the

West Australian reports the

state's police force were crack down on cops with criminal

friends and the 'Mercury' is

reporting on Tasmaniaese new

car theft hotspots. The 'Daily

Telegraph' says the NSW blues

will put it all on the line to

when the second State of Origin

match and the 'Courier-Mail' reports a new poll has found more than half of Queenslanders

want to abolish the State

system but they don't mind the

divide when it comes to stourg

rugby. You mean, Queenslands

want to, remove the line

between them and NSW? I don't

believe the figures. I don't

think either of us believe it

this morning. The stop stories

now - the Federal Opposition

Leader Malcolm Turnbull is

under renewed pressure to

explain his relationship with

the Treasury official, being

investigated about the fake

email at the centre of the

Ozcar affair. The ABC has

learned that god god has

supplied unofficial information

to the Coalition for years. US

Obama has spoken out about

rip's crack down on unrest.

Britain has also expelled two

Iranian official from London

after two British diplomats

were kicked out of Tehren. The environment Minister Peter

Garrett has told the international whaling

commission meeting in Portugal

that whales are worth more

alive than dead. Peter Garrett

said he supported a report

which said whale watching

generated $2.6 billion tourism

last year. While China's elite

continue to benefit from the cup's rapid industrialsation

there's evident the poor are

paying a social cost for it. In

the coal mining province of

Shanxi progress is having a

negative impact on the health

of the next generation. Tom

Iggulden reports. In this

relatively impoverished part of

China coal is the ticket to a

better economic future but even

as each load leaves to help

power China's new factories and

suburbs, it's gone but not

forgotten. This local well

tells the story, contaminated

with filthy coal dust.

TRANSLATION: Before, every

family got drinking water from

the well in our court yard. But

now the water is so polluted by

the coal mines and washaries

around our village that we

cannot drink it anymore. But

there's an even darker effect

on this village, 10-year-old

still hasn't learnt to speak

and his 13-year-old sister can

only say a few words. Their

father says they seemed normal

when they were born but didn't

mature like other kids.

TRANSLATION: I'm especially

worried about my sonment he

doesn't know how to take care

of himself, I have to do

everything for him. He doesn't

know why they didn't grow up

normally but a Beijing research

has discovered the rate of

birth defects in Shanxi

province is six times the

national average.

TRANSLATION: The higher rate of

birth defects in Shanxi

province is related to environmental pollution caused

by the high level of energy

production and burning of

coal. China's leaders are

debating how to get better

medical care to the country's

poor but a solution seems

decades off. Meanwhile there's

a generation of young victims

who need that care the most

that seem dessined to pay the

social cost of the cup's

economic boom. To finance news

now and forecasters expect

Australia to be hit hard by the

slide in commodity prices. The

numbers are being dragged down

by lower contract prices from

bulk commodities like ire ore

and coal. In line with the

market sentiment today and the

increasing nervousness, that

the global check recovery could

have stalled, analysts are

forecasting further committee

clients in some commodity

markets. Have prices got ahead

of actually underlying

fundamentals and to some degree

I believe that's the case so

there's every chance we might

see a 10 to 15, vep 20%

retracement but we're still extremely positive on the

outlook for the world economy

and indeed commodities. This is the retracement we had to

have. Reinforcing this outlook

the Australian bureau of agricultural and resource

economics forecasts for mineral

and energy export social

security tipped to slump 22% to

$124 billion but given last

year's record levels the result

isn't too bad. Those forecasts

are a pretty good outcome. I

think the market obviously was

anticipating a drop off in

export income given the

significant falls in commodity

prices over the last nine

months . They are generally

down by 30, 35% or so, so that

really formed the basis for the

decline with forecasts in terms

of minerals and energy export

values. Rain has eased the long

drought in many rural

communities, helping boost

exports of farm

commodities. The soft commodity

sector obviously is underpinned

by, you know, basic food

consumption and so forth and

everybody needs to eat, so, you

know, obviously that is helping underpin prices and currently

at this point in time, global

stocks of a number of key

commodities are still very

low. Strong demand has already

underpinned improvements in the

price of pally, lupin cotton

and sugar, and looking ahead,

the ABARE forecast for farm

commodities assumes more favour

rabble weather Cups, north-east

financial year ex port earnings

are tip to jump. We don't

expect that the price also

stage a very sharp decline. I

think most of the prices we

expect that will hold up,

really well. But any bullish

momentum could stall if the

recovery in global growth is

further weakened. The OECD has

warned that unemployment in industrialised countries could

approach 10% next year. The

organisation for economic

development said more than 57 million people are likely to be

out of work by the end of 2010.

The jobless rate in the 30

countries surveyed by the OECD

was 7.8% in April. US home

sales have risen for second is

month in a rou. Existing home

sales were up the.4% in May.

The first month to month increase since 2005. The

industry says the result is a

sign that the US real estate

sector is steadying. And the US

Government will lope billions

of dollars to automanufacturers

to improve fuel efficiency. The

Government will loan $7.5

billion to the Ford motor cape

company and $2 billion to

Nessian. The loans are designed

to help the troubled

autoindustry to meet tough new

US fuel efficiency

standards. To the figures now -

Very soon Vanessa O'Hanlon

will join us for a look at the

national weather And also we'll

have a review of some of the newspapers this morning, we'll

be joined by the Acting Director of Monash University's

Centre for Islam and the Modern

World Greg Barton, but now all

the sport, good morning Paul

Kennedy. Good morning Barrie.

It was a mixed pag for the Australians at Wimbledon overnight. Lleyton Hewitt and

Samantha Stosur won through to

the second round, Hewitt will

now take on fifth seed Juan

Martin Del Portro but as you

can see, Jelena Dokic had a

hard time of it. She lost a

three set match to a qualifier,

Docklands Stadium was seen by

the trainers at the start of

the third set. Her blood

pressure was taken. She

continued playing but lost the

decider 6-2. She later blamed

the loss on a poor preparation.

Let's hear now from Jelena

Dokic and the other two

Australians. I was dizzy for

the last week, about four or

five times, in a few different

days, so maybe it's just a

virus or something. Just today

I felt that I lot more and

obviously a match situation is

always different when you have

nerves and everything, so maybe

it was just worse because of

that. I just played the wrong

tournament, I didn't play

enough of them, you know?

Sometimes you're worried about

not playing too much, but, you

know, there are players that

are in the top ten already

played 30, 40 matches this year

and I haven't played even close

to that or even more, 50

matches, so I think I made a

huge mistake with my

schedule. It's going to be a

tough match. He's a class

player and, you know, he was

only a couple of points

probably from winning the

French Open a couple of weeks

ago, so it's a different

surface and, you know, he

hasn't had the best success but

he is a class player, it's an

all court player, got a big

game, going to be a good challenge. Feeling good about

my game right now and thought I

was serving really well, all

match and very good to know

that if you're down a break

point thenno can kind of rely

on a good first serve. So State

of Origin game two is on

tonight. NSW is trying to

prevent Queensland making

history by winning this series

and has left until the last

possible moment to pick its

team. The Maroons have an

illness concern, Nath Myles hit

by a stomach bug and was

quarantined yesterday. And

Taniela Tuiaki missed out on being selected for the game

against France this week.

Meanwhile, the dream run of

James O'Connor, the teenage

star Wallaby, has been moved

back to the bench for this

week's game after a less than

spectacular Test against Italy

many Melbourne. He surely

couldn't live up to the first

Test where he scored three tries. Adam Ashley-Cooper moves

to fullback. Take us through

what happened with Docklands

Stadium cock. It's a surprising

crash out for her? It was a

terrible loss for he. She would

have expected to breeze past

that opponent and she just

blamed her prepation as we

heard from her. Didn't play

enough matches. Hurt her back

in the French Open where she

was on top of someone in a

match there and had to for feet

that one. Usually you see

tennis players for feet just as

they're about to lose but not

as they're bt to win. It must have been an ordinary back

injury and she seemed to be out

of sorts and had her blood

pressure taken and that was at

the start of the third so you

would have thought at that

stage she should have felt like

she would have been able to

win. Do you think? any of the

father stuff has been a

distraction for her? Who knows.

I would have thought that she'd

been over him, not over him as

such, but able to deal with it.

She had been dealing with it

really well through the

Australian Open and then the

French, a back injury is not

inemotional problem that we've

seen from her in the past Never

had any trouble feeling how she

feels at any given time? You

know precisely what her mood

is, she so tran parent. Sitting

there slumped. She pours it all

out. I think that's why people

like her now but Lleyton Hewitt

won through and he's got a big

ask now to beat Juan Martin Del

Portro. What he was saying in a

nice way was Del Potro is

usually a clay court specialist but I don't think that's true

anymore. He wins on all

surfaces so hur it's got a

tough draw and Stosur, I'll

check on her opponent but she

should have a better draw being

the 18th seed. Thank you. News

Breakfast can be watched live

on the web from anywhere. Just

visit: Now Vanessa O'Hanlon

joins force interest the

weather.. Good morning A stormy

day on the way for areas that

desperately need the rain and

there's even some snow on the

way, the latest satellite image

is showing a lot of activity

around Western Australia and

also the central parts of

Victoria and NSW. The blanket

of cloud is spreading further into Western Australia, the

cloud band that's crossing

inland NSW and Victoria is

causing showers and

thunderstorms, heavier falls

over the border around Albury. Further to Western Australia, a

low and trough will move over

to south-west today before

whackening late tonight causing

heavy rainfalls of off to 30mm

over the coastal region and the

winds could peak around 100km/h and more widespread showers

throughout the south. Further

fronts are expected throughout

the week. The low in the Bight

is also weakening, that's

combining with a couple of

troughs that are sitting over

the south-east causing showers,

particularly over Victoria's

north-east and NSW Riverina.

Thanks to the high it will be a

fairly dry day for both

Queensland and the Northern

Territory. ek. The low in the Bight is also weakening, that's combining with a couple of troughs that are sitting over the south-east causing showers, particularly over Victoria's north-east and NSW Riverina. Thanks to the high it will be a fairly dry day for both Queensland and the Northern Territory.

I'll see you in half an hour.

The top story on News

Breakfast - the Federal

Opposition Leader Malcolm

Turnbull is under renewed

pressure this morning about his

relationship with Treasury

official Godwin Grech. The ABC

last night revealed that Godwin

Grech has supplied unofficial

information to the Coalition

dating back to its days in

Government. And Federal police are investigating whether god

god was involved in creating

the fake email at the trough

o-Ozcar affair. One man's name is how abouting Malcolm

Turnbull. I have certainly

spoken to Mr Grech. I know Mr

Grech. As I know many public

servians in Canberra. He's a

very highly reported man. And

Godwin Grech's name is

richocheting around the

capital, after revelations the

senior Treasury official is

under investigation over a

forged mail. That sought to

implicate the PM in pushing the

cause of a car dealer mate. Did

any members of the Opposition

or their staff have any contact

with Mr Grech? In the last two

months? Or did any recently

departed staff have any contact

with Mr Grech in the last two

months. This goes to the core

of the smear campaign. The ABC

understands that Mr Grech will

also be questioned about other

leaks from Treasury. The the

'Australian' fell police have

been watching Treasury for a

while and senior Government

Ministers are convinced there

is at least one mole in the

department. They're looking

into a drip feed of minor

information and some major

embarrassments, including an

email exchange between the

Reserve Bank Governor and the

head of Treasury on the bank

deposit guarantee and damaging

departmental advice on

FuelWatch. The ABC has been

told Godwin Grech routinely

provided the former Howard

Government with what's been

described as offline or unofficial information about

the department of PM and

Cabinet. In the words of one

Liberal -

Several Liberals have told

the ABC they believe Godwin

Grech has been supplying information to Malcolm

Turnbull. And one says he knows

it to be the case. But the

nature of that information

isn't known. Has Godwin Grech

been supplying you with

information from

Treasury? Well, as an intrepid

member of the press corp, you

would know that the last thing

I would do is ever discuss

anymore than you would, anybody

who may provide us with

information. Is that a yes? No,

it's not. It's neither a yes or

a No. Only the police

investigation will establish if

there's a link between Godwin

Grech and the other Treasury

leaks and there's nothing wrong with Malcolm Turnbull receiving

the information, his problem is

political. And with each day

more questions will be asked

about his knowledge of an email

now proven to be a fraud.

There's immense pressure on the

Liberal leader. The revelations

by the ABC indicate that Mr

Turnbull has some explaining to

do about what is the nature of

any long-standing relationship

between the Liberal Party and

Mr Grech. He also has to

explain clearly whether any

pressure has been placed on

this Treasury official. Let's

be clear now about what is

being alleged. It's now

suggested that Godwin Grech for

years has been supplying

information to the Liberal

Party, that FuelWatch was one

and the other was the bank

guarantee, but that Malcolm

Turnbull in recent times became

somebody who spoke with himming

are le, in other words I guess thealliation is that Godwin Grech became Malcolm Turnbull's

mole in Treasury. Then, the further allegation being

investigated by the Federal

police is that Godwin Grech was

the author of a fabricated

document, Malcolm Turnbull

relies on that document to

launch an attack on Kevin Rudd

and it all brows up in his

face. It becomes a very serious

matter. We were speaking

earlier with Hayden Cooper

about whether it's too early to

get him to talk now about the

solid foundation or not of

Malcolm Turnbull's leadership,

there have within questions

raised about his judgment. The

question is whether those are

questions being asked by his

own people. Are they now

seriously questioning his

judgment enough for his

position to be shaky disglf

others will look, the police

and others, will look at

whether anything improper has

been done here but his party

will look at whether he retains

any credibility, whether he's

now somebody who can prosecute

a case against the Government

given that this blew up oso

badly in his face. Many the

'Age' tha, don't call it

Ute-Gate, it's not godwin gate.

The key to the whole story now

is godwin, his relationship

with Malcolm Turnbull and with

the Opposition I wonder if we

now have an explanation as to

why Godwin Grech looked so

uncomfortable when he was being

question in the Senate

sphiments. You can always give

us - Senate estimates. Send

emails to -

US defence officials are

expected to urge China to

support sperl pressure on North

Korea during talks taking place

in Beijing. Ahead of the

meeting the US was tracking a

North Korean ship suspected of

carrying weapons illegally

prompted China to oppose any

forced boarding of North Korean

vessel ts as the US destroyer

tracks a North Korean ship

bound for Burma, China has

cautioned against any enforced

boarding. TRANSLATION: We believe ship

inspects should be enforced

according to relevant

international and domestic laws

and one should have ample

evident and proper use They

believe the boat may be

carrying missiles or missile

parts. Its due to dock in

Singapore for refuelling where

authorities have the right to

board the ship. US officials

are yet to indicate if or when

they may ask to search the boat

but what is almost certain,

Pyongyang's refusal. While

Beijing supports a UN security

resolution condemning North

Korea's recent nuclear test

it's warning against enforced boarding highlights the divide

between it and oh nations

seeking a more assertive

approach to Pyongyang. The

comments also come as several

nations Pete in Seoul to

discuss plans and defensive

nushs counter any possible

strike. We've begun to out a

future plan of responses and

defensive measures with our

allies that we will take,

should North Korea refuse to

adjust course. China is seen as

crucial to effective

enforcement of the UN measures

designed to kriple the North's

atomic and long range missile

perhapses. We continue to

believe it is a North Korea's

own best interests to return to

serious negotiations and the

United States position remains

unchanged, we will not accept

North Korea as a nuclear

weapons state. Meetings are

also in-Dr Way in Beijing,

officially US and China will

discuss their military

relationship but also on the

table, how to deal with

Pyongyang. In other news this

morning, Obama has dismissed as

absurd allegations that the US

is provoking unrest in Iran.

The US criticised rip's violent

crack down on protests about

the country's dispurted

Presidential election. Iran has

also provoked a diplomatic row

with the British Government.

Overnight Britain expelled two

Iranian officials from land

after two British diplomats

were kicked out of Tehren. The Environment Minister Peter

Garrett has told the international whaling commission whales are worth

more alive than dead. Peter

Garrett said he supported an

international fund for animal

welfare report, which said

whale watching generated $2.6

billion tourism last year,

Australia is trying oto use the

Portugal summit to stop Japan,

Norway and iceland from killing

more whales. The number of

people killed in a train

collision in Washington has

risen now to nine. More than 70

others were injured when the

train crashed into a stationary

carriage during peak hour on

the city subway. In is the

worst crash in the city's rail

history. More than 50 asylum

seekers will be taken to

Christmas Island after a boat

was intercepted off Australia's

west coast. Indonesian

authorities also say they've

detained 12 Iranians bound for

Australia. The latest arrivals

coincide with the release of a

report that said the cost of

the Christmas Island facility

has blown out to more than $100

million. And the parents of the

second person to die with swine

flu say that he waited hours

for an intensive care hospital

bed before he died. 35-year-old Anthony Splat went to

Victoria's colack hop with

flu-like siment yops. He had

serious existing medical

problems and was only found to

have had swine flu after he died. Now Nasrah Al Shamery is back home many

?!EZ SPEAKER 01?: Interview no

none to happy about the six

months she spent in a prison.

In her first view she maintains

her innocence and talks about

what she's been through since a

fateful airport allocation last

kes involving the whole

family. Home at last. Nasrah Al

Shamery was told she could

leave prison and Kuwait 12 days

ago but is haunted by the

memories of the past six

months.

They were also hard on the

family many Sydney and the two

sons who were in the gulf state

waiting for months on bail but

never charged. I thought I get

better thing from Australia. I

can't get over it. The way they

treat us snrx they were

arrested with their mother in

Kuwait city last December after

a request for information at

the airport turned into a clash

with more than 30 security

guards and officials. The guy

was kicking my head. He was

kicking it, my head razz

rebouncing. What every person

of my age can do if they see

his dad getting hit by

immigration and oh policeman,

Sir, for me, seeing that, I was

protecting my family. I hit

them because they hit my

dad. The 44-year-old mother of

search was given a two year

sentence in April, after being

convicted of assaulting the

ruling emir of Kuwait. The

alleged assault was not

physical but was treated as an

assault because she's part-time

insulted the ruler. Born in

Kuwait but now an Australian

citizen, Mrs Al Shamery says

she'll we a ware that people

shouldn't insult Arab leaders.

Did you say anything about

the emir, anything?Nasrah Al

Shamery and her two oldest sons

were detained and the sons

subjected to hours of physical

abuse. How many times were you

hit by how many people? It was

about six hours, the first six

hours we were getting hit

non-stopping How hard? It's

like kicks, because we were

hand cuffed, it was kick, punches, slap,

everything. Nasrah Al Shamery

says she was also struck and

she received an extraordinary

offer to get out of her

predicament.

Mrs Al Shamery says she's

kept in a small confind space

for days with food only

available every second or third

day. Lateline was unable to

contact anyone from the Kuwaiti

embassy. The Al Shameries are

now focussing their efforts on

paying a large legal bill and

looking after their

mother. Still unhappy, because

all my family are back and

we're back together, and we

move forward, to have a good

life. We're going to need to

forget the past and start the

new life. The family is

critical of the Australian

Government's involvement in the

case, but the Department of

Foreign Affairs, says it did

what it could. The department

says it can't intervene in the

judicial processes of another

country. And you're watching

News Breakfast - the stop

stories - the Federal

Opposition Leader Malcolm

Turnbull is under renewed

pressure to explain his

relationship with the Treasury official being investigated

about the fake email at the

centre of the Ozcar affair. The

akz has learned that Godwin

Grech has supplied unofficial

information to the Coalition

for years. Obama has spoken out

about Iran's violent crackdown

on anti-Government protests and

has dismissed allegations the

US has been provoking the

unrest. Britain has also

expelled two Iranian officials

from London after two British

diplomats were kicked out of Tehren. The environment

Minister Peter Garrett has told

the international whaling

commission meeting in Portugal

that whales are worth more

alive than dead. Peter Garrett

said he supported a report

which said whale watching

generated $2.6 billion in

tourism dollars last year.

Now for a look at the national papers we're joined by the Acting Director of Monash University's Centre for Islam

and the Modern World, Greg

Barton. Fworm. I know you'll

immediately want to turn your

mind to issues happening in

Iran but role politics have

caught your attention too? I

think local politics are sort

of just consuming our attention

as we've been discussing all

morning in the last few days in

fact. Things have gone a little

bit topsy for Malcolm Turnbull.

I particularly like the

cartoon, very small, on the

front page of today's 'Age' a

snipers rifle with the bar el

pointed backwards facing the

firer and the details are

larger than life. You couldn't

make them up The smoking gun

there with the barrel that's

just turned back on the

shooter. Poor old Malcolm

Turnbull. The details are

larger than life. What struck

you as must intriguing in the

last few days. Just that it

should go badly wrong and be so

badly thought out and the

details are humourous and

perhaps not consequential but

having a character with a name

like Godwin Grech a sort of

young sir Humphrey, very

earnest and keen to please, and

yet it would appear

contributing to this mess and

somebody has savvy as Malcolm

Turnbull just not seeing this

coming. It's the sort of stroir

that just evolves every day.

Something, a revelation every

day that just sets the

something going again just when

you think it's as big as it

could get. I was struck by a

quote from Peter Costello

currently on tour in Israel and

he said whether he uld would reconsider his retirement

position and he said in two

words "No way." Who would ever

walk back into this mess.

What's intriguing about the

story and also propelling the

story in such a strong way, the

true natures and personalities

of the protag nieses of course

are revealed very clearly in a

stroir like this and you see

the pugnacious fight and keep

fighting crash or crash through

nature of Malcolm Turnbull

where anyone else bowed and

unabashed might have stepped

out of the fray, he punches on

and someone zeeply interested

in sport, it did occur to in sport, it did ccur to in sport, it did occur to me

that the punch that alley

didn't throw on the way down,

the sucker punch that actually

is the act of grace, was thrown

yesterday, by Kevin Rudd in

parliament. But what I think

interesting about the painers

this morning is that Jan

Ullrich's story last night as

changed everything. That's the confirmation that there's

something really sinister going

on here and the papers didn't

really reflect that because

that came quite late. Some of

them have picked up and have extensionively quoted the ABC

report but then inside the pain

threers a lot of analysis that

doesn't take account of the

latest revelation and people

are still backing both sides of

the argument. Not anymore. I

think if you find that that

story had broken earlier in the

day, it would have been a

different treatment. We're

talking about in the papers but

if we're talking about last

night's Lateline interview with

Joe Hockey but it comes too

late in the cycle to be caught

in the morning papers. It's not

done and dusted yet and as

there's the AFF investigation

to go. In the meantime, why

don't we talk about Iran

because it's an area of keen

interest for you Greg, and we'd

be very interested in your

analysis, just what is going on

in terms oof the power play in

the ruling structure of Iran at

the same time as we have these

protests? Well I turn the to

this graphing photograph in the

Australian on page eight but

viewers might be interested in

looking at the 'New York

Times'. There's a very

interesting story on their

website talking about the real

power behind the regime and

Iran and that power is in the

military of course, it'sral

military regime,, but particularly the Revolutionary

Guard and their 3 million

strong vigilantes, a sort of

semiofficial vigilante thugs,

who infiltrate every section of society, every university,

every department, every office

, every club or society, and

act in a very vicious manner as

we've been seeing. That's the

real story. They're aban

important part of it a and the

ruling elite as wellful how to

you regard the so-called

splitses and schisms in the

ruling part? This is the

curious things. We've seen

someone come out really encoursing the idea of change or questioning the result of

this election, there's no

question this election was

rigged, the real question is

though why was it rigged in

such a heavy handed fashion. A little subtle fashion may have

been enough for the regime but

they seem to have Joan

overboard. It certainly was plusible that Mahmoud

Ahmadinejad should win but the

way they've dope it, no-one

bloefrs it anymore and - the

brooefrs it anymore but the

open criticism of - suggests

that most of the religious

establishment, even though on

the 86 strong assembly of

emperts and the not perhaps the

1 # on the council of

guardenens really aren't happen

with what's happening. All

power plies with the Supreme

Leader, without power behind

him, the military, the Revolutionary Guard in

particular, and his supposed

support from his brother

clerics seems to be melting

away. If there is a big shift

fog on in Iran, often these

things happen, they come down

to a single incident but the death of that girl and the

fabling that she died on the

Internet, you could see her die

on the net, that could be the

one incident that brings it

home to the rest of the world

and could make a difference?.

It certainly could p perhaps no

wonder she's been been called

the angel of Tehren. If you

look at her fas, this recent

photograph on page 8 of the

'Australian', what strikous is

somebody who is somebody just

like us. Could be our sister,

daughter, friend, our class

mate, we're so often accustomed

to thinking of Tehren as being

exotic and alien and she comes

across here as just a regular

young prepare, face full of

hope and a positive future. We

know that's ended now and she

wasn't even protesting. I think

this will be a tipping

point. We've been reporting

this morning that Obama, the

US, has slightly tough yepped

up his language when it comes

to Iran. What role do you wish

to see America playing in all

of this moment? This is a

really tough call for Obama,

this is one of those predicted

tests that he'd be facing. He

he has to walk a very fine

line. He can't be seen to be

siding with Mir Hossein

Mousavi's people because that

would be seen to be unsafe ir

interference. Of course he's

being goaded by the Foreign

Ministry in Iran and by other

into taking a slightly tougher

lean because they want to

support their thesis that he's

trying to influence politics

and trying to stir up civilian

inris in Iran, he's doing

exactly the right thing. I know

many of his colleagues and

certainly John McCain are

coming out criticising him,

saying "Where's the?" But I

think he's doing all that he

can. At the end of the day

obviously this notion of

engaging with Iran has been put

op hold for a while but at the

end of the day whatever halves

there'll still have some

engagement and if this is a

slow slide to change, so

America being able to help this

that is good. Bart bart wart good to have you on the

program. You can always watch

all of News Breakfast streamed

live every morning. The address

is - now here's Paul Kennedy

again with the port headlines,

Paul? Thank you. It was a mixd

bag for the Australians at

Wimbledon overnight. Lleyton

Hewitt and Samantha Stosur won

through to the second round.

Hue lit now take on the fifth seed, Juan Martin Del Portro,

but Jelena Dokic is out after a

three set loss to a qualifier.

Dokic was seem seen by the

trainers at the start of the

third set. She was distressed

her blood pressure was taken.

She continued playing by lost

the decider 6-2. State of

Origin game two is on tonight.

NSW is trying to prevent

Queensland making history by

winning this series and has

left until the last possible

moment to Peter Costello its

team. The Maroons have an

illness concern, Nath Myles has

been hit by a stomach bug and

was quarantined yesterday and

they'll wait to see how he goes

this morning before deciding

whether he can play and Lote

Tuqiri's rugby isolation has

deepened. He missed out on

being selected for the game

against France this week.

Meanwhile, the dream run of

Andrew O'Connor, the teenage

star Wallaby has hit a speed

bump, moved back to the bench

for this weekend's game after a

resz spectacular Test against

Italy in Melbourne. And Lote

Tuqiri is an interesting

subject at the moment, and we

will be talking a bit more

about this later in the program

but he's been shelved at the

moment and they're talking

about him fweg fit and getting

ready to come back later on If

Queensland were to win the State of Origin tonight, wrap

up the series, that's four in a

row, a lot of people interpreting that you'd have to

say it's the greatest

Queensland team of all time but

surely it's more a reflection

of the opposition? Maybe. Not

what Queensland wants to hear

from you right now? I think

there have been better

Queensland teams than the once

playing at the moment. That's

possible. Queensland's played

with a lot of legends. Thank

you, Paul. Vanessa O'Hanlon now

joins us for the weather. Thank

you. Following heavy rainfalls over south-east Queensland this

week, for the first time in

over seven years the three

major water catchments are

over-75% full, it will be

rain-free there today but there

will be heavy rain over parts

of Western Australia under this

blanket of cloud. We also have

a cloud bands that crosses

Victoria and NSW, causing

showers and enthusiastics,

heavier falls over the border

and around Albury. Further to

Western Australia, a low and

trough will move over to the

west coast and into the

south-west today before it

weakens late tonight causing

heavy rafrs of up to 30mm over

the coastal fringe, wind gusts

could pick up to 100km/h and more widespread showers

throughout the south, further

fronts are expected throughout

the week. The low in the Bight

is weakening, it's combining

with some associated troughs

and causing isolated showers

over the south-east,

particularly over Victoria's

north-east and NSW Riverina.

For Queensland today - the south, further fronts are expected throughout the week. The low in the Bight is weakening, it's combining with some associated troughs and causing isolated showers over the south-east, particularly over Victoria's north-east and NSW Riverina. For Queensland today -

Thank you so much. Finally,

the lifg end claim the

prestigious song of the year

award for 'White Noise' at the

annual awards in Melbourne last

night and the presets won song

writer of the year. While

Aboriginal former took the prize for breakthrough song

writer of the year and good

news for old rocker, ACDC,

ahead of their Australian tour

next year, their 1 # 79 song

'Highway to hell' was the most

played Australian song

overseas. Not good news for

contemporary Australian artist.

We'll speak in the next hour to

the former Australian

ambassador to Israel, Peter

Rogers about unrest in Iran. So

that's coming up after this

very short break. On News

Breakfast. Barrie Cassidy and I

will be back with with you very

shortly.

The pressure increases on

proument after Godwin Grech is

accused of leaking Treasury

information to the Coalition

for years. Obama lashes out at

Tehren as Britain expels two

Iranian diplomats. Prague tell an international sulit whales

are worth more alive than dead.

And a shock exit for Jelena

Dokic but Hewitt and Stosur are

through to the second round at

Wimbledon.

Good morning. It's Wednesday 254 June, I'm Virginia

Trioli. And I'm Barrie Cassidy.

The top story on News Breakfast

- the Federal Opposition Leader

Malcolm Turnbull is under

renewed pressure this morning

about his relationship with

Treasury official Godwin Grech.

The ABC has learned that Godwin

Grech has supplied unofficial

informati