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Shaky independence. A deadly

blast rocks Iraq. A young girl

pulled from the wreckage of a

Yemeni airliner. The UN renews

its call for the release of

Aung San Suu Kyi. And China

delays its controversial

Internet filter plan.

O'Connor with ABC News for Good morning. Beverley

Australia Network. Greater

independence in Iraq is off to

a shaky start with a bomb blast

miring the overnight withdrawal

of US troops from Iraqi cities.

Hopes for the country's economy

have been dashd with a landmark

oil aus resulting in only one

deal. Deadly scenes on a day of

Iraqi independence. The

government had declared the

30th of June a public holiday,

marking the departure of US

troops from cities and towns. A

bomb blast in a crowded outdoor

market in Kirkuk interrupted

celebrations. The explosion

injured 40 and left 24 people

dead. Later the US President

hailed the troop withdrawal as

a positive move for Iraq. This

is an important step forward.

As a sovereign and united Iraq

continues to take control of

its own destiny. But he warned

the future wasn't all

bright. We know that the

violence in Iraq will continue.

We see that already in the

senseless bombing in Kirkuk

earlier today. Iraqi troops

will take over from their US

counterparts in urban areas,

ahead of a full withdrawal of

American forces by the end of

2011. In another display of

sovereignty, Iraq held its

first oil auction in more than

three decades. 20 year leases

for six oil and two gas fields

were on offer, but only one

deal came off. The consortium

of the British company BP and

CNPC China has accepted the

ministry of oil's price which

is $2 US per barrel with

maximum production of 8.5

million per day. But other

international firms with dissatisfied with the terms for

oil production . In some cases

demanding prices 10 times what

the Iraqi Government has

prepared to pay. And the threat

of violence killed off all bids

for one lease in Diala

province, home to some of

Iraq's worst conflicts.

France's Transport Minister has

revealed it had banned the

Yemeni airline which owned an

Airbus which crashed yesterday

near the Comoros Islands. A 14-year-old girl was plucked

wreckage of the plane was from the Indian Ocean where the

found. So far, she's the only

known survivor of the plane's

153 passengers and crew. The

Yemeni airlines Airbus 310

vanisheded off the radar just

after the control tower was

notified it was coming in to land. TRANSLATION: At the

time. Crash, the weather was so

bad, when the plane was

approaching the airport, the

wind speed was 61 kilometres an

hour and the sea was a bit

stormy. There were 142

passengers on board, and a

Yemeni crew of 11. French

aviation and naval support and

civilian medical teams are

helping with the search and

rescue operation off the

archipelago. Questions are now

being asked about the aircraft,

which had been in service for

19 years. It's been revealed

French inspectors found a

number of faults during an

inspection two years ago. The

French authorities informed the

company of these faults and

that plane as if by accident

did not reappear in European

air space since that date. And

relatives of the missing

passengers agree. From

France to Sunar we travel in

planes which are in good shape,

this man says, but from Sunar

to Moroney you can't really

call them aircraft. This man

says when you get to Sunar they

change the flight and you take

a small plane and it's as if

you travel by truck. We stand

until getting to Moroney. It's

the second air tragedy in a

month involving large numbers

of French citizens. Recently, a

crash killed 228 people. South Korea's Defence Minister says

North Korea appears to be

enriching uranium giving the

state another path for making

atomic weapons. The South

Korean Coastguard has raised

its alert levels amid fears of

fresh provocations from the north. Regional tensions have

been running high since North

Korea carried out its second

came off the rails and crashed exploded after several wagons of liquefied petroleum gas people of the the train's cargo west Italy killing at least 14 homes in a small town in north has derailed and ploughed into freight train loadd with fuel hold talks on Tuesday. A on the agenda when US officials Korean peninsula. It's high realise denuclearisation on the Korea's recent series of acts, confrontation. As regards North fully prepared for any United Nations. Seoul says it's sanctions were imposed by the issued soon after fresh made good on the threat it uranium. If so, the north has promoting the enrichment of evident that North Korea is warning. TRANSLATION: It is issued thissing South Korean Defence Chief has nuclear test in May. Now these

be urging Burma to release Secretary-General says he will The United Nations semifinals. cruise into Wimbledon's themselves. Venus and Serena sisters are doing it for people smuggling. And - the steps up efforts to stamp out the Australian Prime Minister Australia Network. Coming up - You're watching ABC News for the area has been sealed off. people have been evacuated and injured. About a thousand sleep while dozens more were the dead were killed in their middle of the night. Many of into nearby houses in the

detained pro-democracy leader

Aung San Suu Kyi when he visits

the military-ruled country

later this week. Ban Ki Moon is

currently in Japan on a three

day diplomatic visit. The UN Secretary-General outlined a

clear vision for his visit to

Burma. The release of all

Aung San Suu Kyi, the political prisoners including

Aung San Suu Kyi, the

resumption of dialogue between the government and opposition

as a necessary part of any national reconciliation

process, and thirdly, the need

to create conditions conducive

to credible elections next

year. And Japan's Foreign

Minister says his country is

also concerned about Burma's

treatment of the pro-democracy leader. TRANSLATION: Japan will would also like

will would also like to express

its concerns regarding other

various problems including the humanitarian situation and

other domestic issues. Mr Ban

will visit Burma on Friday, the

very day the trial of Aung San

Suu Kyi will begin. Ms Suu Kyi

is being held in Burma's

notorious Insain Prison and

will be tried on July 3 on

charges of vif lating the terms

of her house arrest.

of her house arrest. She faces

up to five years in jail if

convicted. Her supporters say

the UN Secretary-General must

meet with her if he hopes to

make real progress towards

democratic reforms. Mr Ban is

currently on a three-day visit

to Japan, where he and the

country's Foreign Minister will discuss topics including North

Korea and climate change. On

North Korea, the pair are

expected to urge the regime to

give up its nuclear

give up its nuclear program and

return to international

disarmament talks. While I urge

most importantly the DPRK

authorities to fully cooperate

and full y comply with this

resolution, at the same time,

member states of the United

Nations should fully cooperate

so that this resolution

so that this resolution should

be able to be implemented. Mr

Ban will also meet with the

Japanese Prime Minister.

Michael Jackson's parents

have applied for permanent

custody of his three children.

Jackson's mother Catherine was

granted temporary guardianship,

meaning the children will stay

with the family until a court

makes a ruling. We love those kids

kids too. We're gonna take care

of 'em and give them the

education they're supposed to

have. We can do that. Joe

Jackson also expressed more

doubts about the circumstances

surrounding his son's death. He

hasn't ruled out foul play,

even though the autopsy's

preliminary findings show no

evidence of it. The family is waiting for the results of a

second autopsy before setting a

date for the

date for the funeral. China

will reportedly delay a

controversial policy to force

manufacturers to install

mandatory filtering software on

all new computers. The policy

known as Green Dam Youth Escort

was due to come into effect

later today. But the Chinese

government appears to have

backed down for now at least.

This is the program that's

causing the controversy,

causing the controversy, in

name it's for filtering

pornography on the Internet but

critics say in reality it's

another way for China's leaders

to censor criticism of their

rule. This is a huge step in

terms of crossing from the

boundary of filtering and

censoring in the cloud of the

Internet to something being on

the personal property of a

citizen in China. But the

government is sees it

differently. I believe no matter what

matter what kind of views or

comments there are the Chinese

Government has a responsibility

to prevent harmful Internet

information from influence ing

our teenagers. In a country

where the Internet is the only

source of information not owned

and controlled by the state, that argument hasn't swayed

free speech activists. One of

them, a prominent and blogger

and artist, has organised a

boycott of the Internet. He

says thousands of Chinese will turn off their

turn off their email and

Internet prouzers in a silent protest. --

browsers. It's a way to show

how the Internet is free and

uncontrolled. Any effort that

hopes to limit freedom on the

Internet will end in vain. He

says his boycott has inspired

by Iranian protesters who've

used the Internet to organise demonstration s and he is

warning the Chinese Government

to take

to take notice. Blocking access

to information on the Internet

will cause a huge explosion.

And that explosion will have

unimaginable power because it's

the only outlet for people's

demand for information and

opinion. Despite the

suggestion that the Chinese

company that makes Green Dam's

to be sued for copyright

infringement there are reports

several international computer

makers have already installed the software

the software on computers to be

sold in China.

The mobile telecommunications company

Digicel is about to start

operating in another Pacific

island country, Nauru. Digicel

now has licences to operate in

six nations in the Pacific. In

the past three years, the

Digicel mobile telephone

operator has set itself up in

Fiji, Vanuatu, Papua New

Fiji, Vanuatu, Papua New

Guinea, Samoa and Tonga. Next

in line is Nauru . Digicel and

the Nauru government have

announced from August, Nauru's

10,000 residents will have

access to GSM mobile telecommunications. Several

years ago, Nauru opted for a

different technology. And

commissioned a company to

install wind and solar powered

telecommunication access points

on power poles around the

on power poles around the

island. The hope was that

they'd provide affordable

mobile phone and wireless

Internet connections to 80% of

the pop lis. It was not a

success. And much of the system

has fallen into disrepair,

partly because of corrosion

from the salt laden air. Nauru

turned back to Digicel and the

government's statement cites

Digicel's positive track record

in the Pacific. Phone

in the Pacific. Phone access

has risen dramatically, and

costs have fallen. The Digicel

revolution is probably the best

thing that's happened in the

Pacific since independence.

Digicel says the network it's

installing in Nauru will also

enable Internet access through

mobile devices to the whole of Nauru.

The Australian Government is

stepping up efforts to stamp

out people smuggling in countries where

countries where the trade is

carried out. So far this year,

the Australian Navy has

apprehended 16 boats carrying

asylum seekers into Australian

waters. There are concerns that

tens of thousands of others are

waiting in Malaysia to make the journey. The Prime Minister

says tackling people smuggling

in countries like Pakistan and

Sri Lanka is part of Canberra's

security strategy. The

security strategy. The instability recently in Sri

Lanka is a big factor, a very

big factor on the peninsula.

Dealing with problems at source

countries is critical which is

why, again, we've been clear

about enhancing our police and related security representation

in so many countries around the

region, including Sri Lanka.

Mr Rudd says every regional

leader he speaks to is experiencing similar problems with border

with border security.

Australian consumers have been

eager buyers of Chinese -made

clothes, electronics and food.

Now, Australia's enthusiasm for

imported goods is being put to

a new test. The first

Chinese-made utility vehicle is

going on sale locally and it

will cost up to a third less than other makes. Like beer and

the footy, the ute is about as dinky di

dinky di as you can get.

Australia even claims to have

invented it. So this ute made

in China might just be a tough

sell down-under. It's probably

the most un-Australian ute I

have ever seen. If this ute's

name is anything to go by it

could be around for some

time. It will be promoted as

the great ute of China. Like

many Chinese imports it does

come cheap. At around $20,000, the Chinese

the Chinese ute undercuts more

established brands by up to a

third. But airbags and anti-lock brakes will cost

extra. China's a very efficient

producer nowadays. It's the

largest producer of motor

vehicles in the worm. Analysts

say this ute could be the start

of the first wave of Chinese

made car imports into Australia. The local industry

body acknowledge it is could be

a threat to Australian-made brands. The Australian market

is one of the most open and competitive anywhere in the

world. We welcome competition. The Australian

vehicle manufacturing sector is

under considerable pressure

right now and this car is not

going to ease the pain.

Especially if it challenges one

of our national icons. You're watching ABC News for

Australia Network. Recapping

our top story - celebrations to

mark the withdrawal of US

troops from Iraqi cities have

been marred by violence as a

car bomb explodes in a crowded

market in the northern city of

Kirkuk. At least 27 people died

and 80 others were injured.

The new financial year has

arrived in Australia with investors hoping for better times ahead.

times ahead. Over the past 12

months, the Australian share

market experienced its biggest

fall in 26 years. Most analysts

expect the next year to be

better. But one has to be

fairly cautious. It's going to

be a fairly difficult market to

really pick the winners. It's

also going to be tougher for many approaching retirement,

who will see the maximum superannuation contribution

limits halve, making super

limits halve, making super less attractive. These people will

maybe have to look at alternative ways of building up

their wealth and maybe look for

a tax break maybe through

negative gearing or other

methods as well. Pensioners

will have extra spending power,

and tax cuts deliver modest

savings to middle and high

income earners. Although retailers aren't expecting it

to make much difference. The

big problem we face is that so

long as people are uncertain

about their jobs, no matter

about their jobs, no matter how

much money they might have in

the back pocket they're showing

very great unwillingness to

spend. The Reserve Bank is

expected to spend much. Next 12

months sitting on its hands

when it comes to interest rates

but that doesn't mean

Australia's major home lenders

won't put up interest rates

unilateral ly. The big banks

will face snowballing loan

problems. The bad debts will

problems. The bad debts will

increase significantly next

year, of the order of 50%. To

they'll look to home loans

where profits have been

squeezed. The banks could well

decide they're going to reclaim

some of that margin, puts in a

safety buffer if you like and that would mean that variable mortgage rates would be

raised. Will the Reserve Bank

Governor Glenn Stevens care?

That depends on the economy's


Let's check the financial

markets now. In the United States overnight, both the Dow

and Nasdaq fell.

Sport now. The top four women's seeds have moved

through to the semifinals at


Easy wins for Elena Dementieva and the Williams

sisters but a much tougher

watch for world No. 1 Dinara Safina. Following a hard-fought

win in the fourth round, world

No. 1 Dinara Safina was hoping

for an easier quarterfinal but

she didn't start well, losing

the first set to unseeded

German teenager Sabine Lisicki

before receiving a warning for

her behaviour.

The Russian regained her composure and soon had the

match levelled at a set all.

The momentum stayed with

Safina in the decider, breaking

early in the set on her way to

a victory. Sometimes I don't

a victory. Sometimes I don't do

the things that I have to, like

even if I'm doubting or

something, but I still have to

do it. It was really disappointing. Because

yesterday was a good match.

Today again I had a very slow

start. Defending champion Venus

Williams took just over an hour

to dispose of the 11th seed

6-1, 6-2.

Do I feel invincible? I'd

like to say yes but I really do

work at it. Sister Serena had

just an easy a win beating

Victoria Azarenka while Elena

Dementieva was far too strong

for her unseeded opponent,

winning 6-2, 6-2. In cricket, Michael Vaughan has announced

his retirement from all forms

of the game. Two weeks ago in

the garden with my little lad

Archie, he bowled a ball that

hit a weed and it knocked my

staff stump out the ground. If

a 3-year-old is bowl Meg out,

it's time to move over! The

current England captain was

leapt to the defence of Andrew

Flintoff for another off-field

incident. He missed the bus to

a team outing. This is a time

keeping thing. Of course

there've been incidents with

Fred before but for us to start looking back on that would be

completely wrong. The first

Ashes Test against Australia

starts next week.

Getting exciting! Now let's

look at how the regional

weather is shaping up for us

for this Wednesday.

Now before we go, Australian

parents hoping for an empty

nest and a quiet retirement are becoming increasingly

disappointed. A new report

indicates more young people

stay in the family home for

longer. And even those who do

eventually leave are more

likely to move back in! When it comes to

comes to moving out of home for

the first time, it seems the

grass isn't always greener.

New figures confirm what

bairnts have long suspected.

Children are leaving the family

nest later and later in

life. One in four young

Australians are still living at

home. The main reasons they

stay at home are for financial

reasons, but many of them also

say it's convenient at home and

they enjoy living there. The

ABS says people are tefring

major milestones, studying

longer, marrying later, and

then there are the boomerang

kids the ones who take the plunge but keep coming

back. What's

this? Porridge. It's even spawn

ed one of the country's top

rating TV soaps. You shouldn't

find a space for their room

when they go, because chances are they will be

are they will be back. A US

company even offers contracts

that parents and so-called

kid-ults can sign laying out

the ground rules of new living

arrangements. This woman found

it ease ier living closer to

her mother so as an adult moved back. A constant party, which

is not always good, but

is not always good, but it's

better than the alternative,

which is isolation. It's

convenient but is it

spongeing? I still sponge. But

she puts in as well. The

latest figures are based on the

2006 national census, and that

was before any hint of global

financial crash. Parents now

expect that tougher economic

times might drive more and more

adult kids back to the family nest. Better set another place for dinner! You're watching ABC News for

Australia Network. Let's check

again our top stories. A deadly

bomb blast mars celebrations in

Iraq as US troops complete

their first stage of

withdrawal. A 14-year-old girl

remains the only survivor from

a Yemeni air Airlines crash and

China announces further delays

China announces further delays

to the roll-out of its Internet

filter. That's all in this

bulletin. For more news and

current affairs you can go to

our web site. I'm Bev O'Connor.

Thanks for your company. Hope

to see you soon. Bye-bye now.

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