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A British court convicts

three men of plotting to bomb

seven airlines on a single day.

Kevin Rudd wins Vietnam's

support to fight people

smuggling as another illegal

boat is intercepted off Ashmore

Reef. Australian authors step

up their fight against cheap

important book imports saying

they runl the industry.. And

wild celebrations at the US

Open as a local teenager

continue herse fairytale

run. It's Tuesday 8 September.

I'm Joe O'Brien. The top story

on News Breakfast - a British

court has convicted three men

of conspiring to blow

up Trans-Atlantic flights with of conspiring to blow up - blow

liquid explosives disguised as

soft drinks. The three British

nationals were found guilty of

plotting to kill thousands of

people with home-made bombs.

Their arrests in 2006 triggered worldwide dhiention airport security. Philip Williams

reports. It was as simple as it

would have been deadly. Three

Assad Sarwar and Tanvir men, kill Abdulla Ahmed Ali,

Hussain, convicted of a

chilling plot to killed a many

people as possible mid air. The

method - using drained drink bottles refilled with hydrogen

peroxide, impossible to detect

by X-ray and detonated using

batteries and a flash from

throw away cameras arm a test

showed what damage could have

been done if the would be

bombers has been successful.

The target - at least seven

aircraft leaving British

airports for the US and Canada.

The idea was to blow them up

high over the ocean. In scale

it would have been comparable

to 9/11 in terms of loss of

life n terms of economic impact

and perhaps because it was the

second attack it might have had

a a magnified attack because it

would have raised the

possibility of continual large

scale attacks which of course

is a nightmare scenario The

convicted men had recorded

martyrdom videos. Only wish I

can do this, come back again

and do it again and just do it

again and again until people

come to their senses and

realise how, don'ts me with -

don't mess with the

Muslims. Another four suspects

were found not guilty. They

were arrested after the biggest

surveillance operation every

mounted in British history. The

suspects were filmed as they bought chemicals, a suitcase

with materials to make

detonators was found hidden in

the woods. Thmplt case

reaffirms the fact that we face

a real and serious threat from

terrorism. This was a particularly horrendous plot

which would have led to murder

and mayhem on an unimaginable

scale. The lasting legacy of

the plot has been much tighter

airport security worldwide with

restrictions on the amount of

liquids allowed on board now a

permanent feature of air

travel. I think it makes you

feel sort of safer when you're

travelling if you know that

everybody's going through the

same process. I can't travel

with my hair products and make-up, a lot of different things. A orders to kill may

have come from Pakistan but all

those convicted of plotting to

murder innocent passengers are

British citizens. In other news

this morning, the PM Kevin Rudd

has thanked the Vietnamese

Government for its help in

recovering the remains of two Australian servicemen. Kevin

Rudd made the comments at an

official dinner for the head of

General Secretary Nong Duc Mahn Vietnam's communist party.

is in Australia on a four day

visit. The two leaders also

agreed to work together to

fight terrorism and people

smuggling. Australian authors

have stepped up their campaign for the Federal Government to

maintain restrictions on book

imports. The Government is

considering strapping a ban on

imports was the Productivity

Commission says it would lead

to cheaper books arm petition

of 4,000 sigs will be handed to

the Government today uraniuming

it to reject the proposal.

Authors say it would destroy

the local industry. A Sudanese

woman has been jailed for a

month for wearing trousers in

public. Lubna Hussein was

violating Sudan's public convicted a fined $233 for

indecency law. Hussein said she

would rather to go to prison

than pay the fine. She was

among 13 arrested in July for

wearing trousers. Ten of the

women were fined a flogged two

days later. Another suspected

asylum seeker boat has been

found and is being escorted to

Christmas Island. The boat has

seven passengers and one crew

member on board. It was spotted

by surveillance aircraft off Australia's north-west coast.

The Bott was stopped as it

aprochd Ashmore Reef and the

survivor has been found a day

after that ferry sank off the

southern fls. Lita Casunglon

survived drifting in the ocean

for more than 24 hours. The

rescue team found her about 15

demooerts from where the ferry

went down. Nine people died in

the incident. Returning now to

our top story and that's that

three British men have been been found guilty of plotting

to blow up planes with home

made liquid bombs. Philip

Williams joins us now. This

whole matter took two trials

and the billingest counter-terrorism operation in

British history, why was the

matter so lengthy and

complicated? Well, simply

because there was a wealth of

information that had to be

processed. For example, they

raided about 50 homes, they

took 400 computer ace way for

analysis, so there was a

massive information that had to

be processed before they could

actually bring the matter to

court, when they did bring it

to court, they didn't get

convictions and so this is the

second trial. They didn't get

the convictions on the specific

charges that the prosecutors

wanted so it's been a very

drawn out affair but of course

now great relief that finally

there is a conviction, that

these people have been fingered as responsibility for what

would have been an horrendous

act of terrorism had it

succeeded. Perhaps killing up

to several thousand people, had

it succeeded, particularly if

they'd blown these planes up

over pop latd areas it would have compounded the whole

problem, so the prosecutors

here are very, very plozed with

today's result. The counter-terrorism operatives in

Britain seem to have been on to

this plot for quite some time

because we can see all that

surveillance footage and the

documentation they had on the

three? Yes,. Absolutely. It was

a Mazzive operation. Involving

all agencies and in fact it was

described to us as a case of

stopping almost all other

operation, kusht terrorism

operations, because this was

seen as a very specific and

dangerous threat from men identified as quite serious

about these attacks. It was

really only at the point where

they felt that they were getting close to actually

carrying out these attacks that

they swooped on them. They had

a lot of information as you can

see from the video, the

surveillance videos, of them buying chemicals for example

and digging up the caches of

detonators, that they had

followed these people for some

months and followed them very,

very extensively, so it's been

a massive operation and

vindication, the security

people here in Britain say, of

all the effort and all the

extra money that has gone into

anti-terrorism efforts

here. Finally, we've been

looking at some soft the

martyrdom videos that those

three made. This is Syme you're

going to bring about another

outpouring of discussion of

about how is it that we have

so-called home grown terrorists

in the United Kingdom. Yes and

this is props for the British

the most disturbing aspect of

all, that they all have British

accents. They were raised in

Britain. They took their

commends from Pakistan but they

were home-xwroun and yes there

have been extensive efforts

made to try and happen change

the culture particularly for

young men here that would

perhaps drift into this

radicalsation and the

Government would argue that Mr

Needs to be done and that those

sort of efforts need to

continue to ensure that these

sorts of people, these are

disaffected youth, aren't

attracted to these violent sort

of crimes. Thank you. Thank you. The Palestinian Government has condemed

Israel's decision to build

hundred of new homes for Jewish

settlers in the occupied West

Bank. The Palestinians say it's

a direct challenge to US

efforts to restart peace talks.

The Israeli Defence Minister

Ehud Olmert has approved the

construction of 455 new

homes. On a hill outside

Jerusalem, the first sod is

turn if a new neighbourhood,

one is US does not want to go

ahead. Do you think it sends a

message to the United States? I

hope so. I hope they'll

understand that just as we

don't interfere in their

internal politics, just as we

don't decide where they're

going to build in Washington,

New York Los Angeles, this is

Israel and we have the right to

make our decision, what's good

for us Even George W. Bush

pressured Israel not to allow

this project known as E 1, to

happen. If it does it would

join the outlying settlement

with Jerusalem, on land

Palestinians want for their own

State. According to

international community this

land is not part of Israel, but

that doesn't mean much

here. This definitely a part of

Israel. Is New York part of

America? They did that to the

India scbls this is also a

message to Israel's Government to stand up to frorn pressure

to stop building here in the

West Bank. That appears to be

happening. On the same day,

Israel Defence Minister

approved hundreds of new

apartments in West Bank settlements.

TRANSLATION: Even if there is

disagreement with the United

States I am convinced that it

is possible and it should be

overcome in order to push for a significant political process

that will lead to two States

for two nations. The US says

these settlements are not

legitimate but among Israelis

voices of protest are few and

far between. This snot a time

to make movication. This is a

time to make gestures for

peace. The people here to

support this are settlers who reject everything the United States and the rest of the

world tells them about where

they can live. But they're not

at the fringe of Israeli public opinion. One poll shows that

more than two thirds of

Israelis support building in

east Jerusalem which the United

States is also against.

Israel's Government hasn't yet

approved building at this site

but is under growing pressure

from within. The PM Kevin Rudd

met the head f of Vietnam's

communist party overnight. For

more, Melissa Clarke joins us

fro Canberra. Why is this

gentleman in town and what did

they talk about, what did they

agree on? Nong Duc Mahn is in

town for four cay days, having

a visit with a lot of top Australian Government fecial and of course the PM Kevin

Rudd. They've already agreed to have closer cooperation and

better ties when it comes to

things like people smuggling and counterterrorism. That's where they want to work

together and work much more

closely to look at those

issues. We've seen the

Australian Government look to

closer ties between a number of

South-East Asia nations on

these issues. We've seen closer

ties with Indonesia and

Malaysia on people smuggling

and counter-terrorism. It comes

at a particularly poignant time

given we've just seen the

return home of the bodies of

the last two missing servicemen

from the Vietnam war, come

home, so it is good timing, I

think, because for this visit

from Nong Duc Mahn. And parliamentary entitlements are

back on the agenda today. Why

is that? The Auditor-General

over the last few months has

been looking into MPs'

entitlements. It's a wide

ranging review. Lit cover

things like printing

allowances, car and travel

allowances, all these sort of

extra funds that MPs are

entitled to, but comes under a

bit of controversy because it's

often not clear or

straightforward as to how much

they can use and how they can

spend it and we understand that

there is going to be some

finding of some misuse of some

of these fundses in particular

the printing allowance. MPs get

about $100,000 every year and

the money is meant to be help

MPs communicate with their electorate. But there are

concerns that that money is

being used for partisan

purpose, to spruik for

re-election, rather than just

for letting constituents know

what the Government is up to.

So we can expect to see

something from the

Auditor-General there. With

that printing allowance it's

not the case that the money

they don't use they can

pocket? No in the case of the

printing allowance if they

don't use it they get to roll

it over next year and from are

some concerns that MPs might

sit on their funds and create a

bit of a war chest in time for

the next election when they can

then flood the electorate with

printing that's come depr those

funds. But it's not

straightforward at all because

things like the electorate

allowance where they get extra

money for various things in

their electorate, if they don't

spend all that, about $Po,000 a

year, they get to keep that on

top of their salary and then

there are other oi lowances

like the accommodation

allowance that they get for

coming to Canberra where they

get $200 for heech night

regardless of the

accommodation. It is a bit of a

web and MP and Senators often

complain that a it's quite to hard to judge whether they're

doing the right thing because

there's not a clear set of

rules and standard. A lot of

this is don on convention and understanding. We might see some of the results of that in the Auditor-General's report

today and no doubt a few people

reassessing how they're going

about using their

allowances. We've heard over

the last couple of days about

this push for a Senate inquiry

into the state of the stimulus

spending. What's happening with

that Senate inquiry or that

possible inquiry? We're

expecting that to come to a

vote in the Senate today on

whether or not that short

inquiry by the Senate economics

committee will in fact go

ahead. The Greens are pushing

this and it seems they've

managed to get the Government

on board and the Government

will support setting it up

which would mean if they get

the extra support of Senators

Xenophon and Fielding as well

they would be able to call the

secretary of the Treasury

department Ken Henry and

question him about whether or

not all this stimulus spending

is necessary. Stands in the way

is the Opposition. They haven't

decided yet whether or not

they're going to support the

Greens motion, clearly

Government is confident enough

that Ken Henry will support the Government's stand and say,

"Yes all this stimulus spending

is necessary which would be why

they're willing to pore the

Green." The Opposition don't

want to give the government a

platform if everything's going

to go their way. It will be.

Melissa Clarke, thank you for

that. We'll be talking to

Christopher Pyne later in the

program about that this morning

so we'll be able to get the

Opposition position on

that. We'll take a look at the

front pages of the major

newspapers around the kufnlt

we'll start with the

'Australian' and it says that

Deputy PM Julia Gillard is

facing Gowing union backlash

about the Federal Government's

awards overhaul. The paper's

been on that story for a number

of days now Marginal

employments and seats won by

Labor at the last election have

been the main beneficiaries of

the Government's community infrastructure grants according

to the 'Financial Review'. The

age has the exclusive report

that says Victoria's gambling

authority will re-examine the

social and economic impact of

the Government's decision to

allow another 150 poke tables

at Crown Casino. The 'Herald

Sun''s front page features

Geelong star Gary Ablett junior

who won the AFL Players

Association MVP award. It's

also reporting Federal polices

will be stripped of some of

their printing entitlements

under a rorts crackdown as

Melissa Clarke was just

mentionings. The 'Daily

Telegraph' features the

captains of NSW rugby league

teams taking part in the

finals. It also says that

murdered businessman Michael McGurk tried to visit State parliament two days before he

was killed. Donation to the

Labor party by a friend of

Michael McGurk are exampled on the 'Sydney Morning Herald'

front poidge. The reports shops

and homes could be built on a

prime piece of real estate in

the heart of Canberra. The 'Courier-Mail' says the

Queensland health department

has told tired doctors to drink

five or six cups of coffee

during their shifts to stay

alert. Works for me. The

'Mercury' is leading with

worker outrange at payouts and

salaries received by executives

at collapsed Launceston car

parts flrm ACL. The West

Australian says dredging

operations could affect the

quality of Perth's beaches,

this summer. The 'Northern

Territory News' has the

headline U-Loo-Roo and says

tourists are using the top of

the sacred indigenous site as a

toilet apparently. If you'd

like so send us your feedback,

send us an email - the top

stories on ABC News Breakfast -

three British men have been

found guilty of properties to

plough up planes with home-made

liquid bombs. The arrest of the

men in 2006 led to airport

restrictions on liquids that

can be carried on board planes.

The PM Kevin Rudd has met the

head of Vietnam's communist

party at a dinner overnight. Mr

Rudd thatched Nong Duc Mahn

fong for Vietnam's help in

repatriating the demains of two Australian servicemen misses in

action after the war. And Australian authors are stepping

up their campaign to stop the

Federal Government from lifting

restrictions on book imports. A

petition of 4,000 signatures will be handed to the

Government today urging it to

reject the proposal, authors

say the decision will ruin the

local industry. Taiwan's PM and

his entire Cabinet have offered

to resign over the Government's

handling of last month's

typhoon. The offer was made

after the President led a national mourning ceremony for

the victims of Typhoon

Morakot. Thousands of people

gather inside a stadium close

to the community's worst hit by

Typhoon Morakot. They stood

with their heads bowed to

remember the dead. The typhoon

hit Taiwan on August 8,

powerful winds and torrential

rain killed at least f00

people. Under pressure over his

handling of the disaster,

Taiwan's President told the crowd his Government would

immediately improve disaster

prevention measures.

TRANSLATION: The work that

should have been done better by

the Government such as water

and soil conservation, flood

prevention and bridge construction, will conduct

strict reviews for improvement The President also

thanked countries in the region

for their support and made

special mention of China.

TRANSLATION: We've received

generous donation from the

Chinese Government and fellow

Chinese compatots including

more than 1,000 mobile houses.

Done frustration China have

exceeded $5 billion Taiwan

dollars. This is the

biggest. But as a result of

public criticism that the

Government's response to the

typhoon was too slow and

inefficient, the Premier has

resigned saying someone had to

take political responsibility.

TRANSLATION: I'm the top

administrator and all the

political responsibility rests

on my shoulders so I offered my

resignation to the President

and he agreed. The entire

Cabinet is likely to follow

suit with a formal announcement

expected later this week. In

finance news more businesses

are becoming optimistic about

their sales and profits as the

Christmas season nears

according to a new study. The

Dun & Bradstreet business

expectations survey found 4 #%

of executives had forecast

their sales would increase in

the December quarter. 1 #% of

executives expected sales to

fall and we'll be speaking to

Dun & Bradstreet about that

survey later on this

morning. Despite a change if

Government and the worse

recession since World War II,

Japan as emerged as a lucrative

source of business revenue for

Australian companies.. Trade

with Japan increased by 39%

last year and Australian

companies have been urged to

take advantage of cashed up

businesses that are looking to

spend some money here. Flying

high over Brisbane workers show

off the skills that make this

company a leader in building

maintenance using rope access.

The owner saw a gap in the

market in Japan and formed a

joint venture there to train

workers and save

lives. Obviously we're all

trying to recession proof our

own business. People need to

own business. People need to

look outside the box and... The

deal's worth around half a

million dollars over two years,

a big boost for a small

business. And despite the down

turn, two-way trade is booming

crating fresh opportunities for

growth . We had an increase of

39% in our trade to Japan last

year, it's been growing on

average to% every yeah for the

last five years.

A top level delation of

Government and business leaders has visited Australia looking

for way to boost public and private partnerships with

Japan. Japan I think has

something like 20 trillion

dollars in savings, it has a

huge savings base. We would

hope that some of that money

would be looking at investing

in Australia and in

infrastructure particularly Big fantasticet spends is already

under way. Japan's among the

miedge major financial backers

of Melbournes $3.5 billion

desalinisation project.. The

Japanese trading companies in particular at the moment are

very cashed up in most cases

and they're looking for

opportunities in Australia,

competition for this kind of

finance is massive. They are

looking for projects where not

only they have good return and

good partners but they also

have to offer that kind of

environmental

sustainability. For those

willing to take the plunge fund

finding common ground is the

first step for even small

operators to break into a

growing market. Interesting,

been waiting for quite some

time for China to outstrip

Japan as our major trading

partier in, a 3 #% increase

that that relationship is not

done yet. Got a way to go. The

finance figure s now -

Vanessa O'Hanlon will be us

to take a look at the national

weather. Then we review the newspapers today and this

morning we'll be joined by the Radio Australia broadcaster

Phil Kafcaloudes. He always

likes looking at the Newspoll

figures when they come

out. Always had an animal yarn

too. We'll see if he comes up

with one today. Yes With sport

and a bit of tennis knews here

is Paul Kennedy. A 17-year-old

American has continued her

fairytale run at the US Open.

At one set down in the fourth

round, Melanie Oudin came back

to stun her opponent and the

crowd, here's match point.

CHEERING AND APPLAUSE

Melanie Oudin in her first

grand slam quarterfinal and it

comes here at the US Open. The

17-year-old from Georgia living

a dream. What a path she has

taken. Elena Dementieva, shard

shard sharks Nadia Petrova. -

Maria Sharapova, Nadia

Petrova. Her twin sister

overwhelmed with

happiness. Tells you more about

the Oudin family. Ricky Ponting

has retired from international

Twenty20 cricket with the hope

of extending his Test career. He's been driven by disappointment already to return to England in four years. This is how he announced

it.. The last 10 or 12 days for me has been a lot about

reflection, looking back to the

Ashes and looking forward to

the rest of my playing career, my playing further and over the

last 12 days I've thought long

and hard and spoken to a lot of

people about me going forward

and as of today I've decided to

retire from international

Twenty20 cricket. The decision

that I've made is all to do

with my longevity in the game.

When I came back from England

I'm really passionate and

committed to being the best

player I can be for Australia

for as long as possible and

over the last couple of years

I've found it increasingly

difficult to play all three

leaves of the game. Having

returned from England with the

taste in my mouth that I had, I

was very keen to be able to

give it every possible crack to

get back there again and this

decision now is certainly a big

part of giving myself the best

chance to achieve that. And

Gary Ablett has been named the

AFL's best player by his peers

for the third consecutive year.

He missed three games this year

but is still one of favourites

for the most prestigious award,

the Brownlow medal. The AFL's

big award is named after lmz.

Runner up was Dane Swan.

Melanie Oudin, Dan, Oudin, by

the end of this program I will

have nailed council a

pronunciation. People are still

just getting to her here. She's

a 17-year-old from deporga. She

was home schooled after the 7th

grade because her parents

wanted her to concentrate on

tennis and she is envious of

her twin sister that gets to go

to regular school. Looks like

the twin sister is envious of

her now. She actually made the

fourth round of Wimbledon so

that was her first foray into

the spotlight of crazy world of international tennis but she

must have liked it because

she's bounced back in the US

Open and now she's through to

the quarterfinals and they

thought that when she passed

Maria Sharapova in the third

round that would be abit but

she continued on and after that

match against shard shard she

said, "I guess it's kind of

surprising but I've work so

hard for this" a the 'New York

Times' said her speech patterns

are entirely age

appropriate. We heard earlier

in the week from the young

Australian who did quite well

Olivia Rogowska, and she looked

like such a girl in the shots,

a teenager, the shots we saw of

her, this American looks a lot

stronger and older but... She's

really strong and hits the ball

hard. I guess that's why she

looks a little bit older. Her

hero is Justine Henin because she says that she proved that

you don't have to be tall to

win things. Gritty little

player. I think her birthday,

she turns 18 in a couple of

weeks. That might be a nice

present if she continues on for

another couple of games. News

Breakfast can be watched live

on the web from anywhere. Hood

some heavy showers in

south-east Queensland over

night. Here is Vanessa O'Hanlon. Good morning. That's

right. Of course with a good

lashing of rain comes the bad

news and there's been some backouts overnight flout south-east Queensland but it

has been some of the best rain

if months. Since #am yesterday

Brisbane at 15.6 million and

28mm for Bundaberg. Let's take

a look at the satellite image.

There's more showers and storms

for eastern Queensland with

that active trough. The heavier

falls are expected near the

coast, possibly 25mm. More

showers for eastern Tasmania

and Victoria with cloud that's

surrounding a low and that low

is also directing strong winds

over the two states. By

tomorrow the trough over

Queensland will swing east and

the rain will start to ease.

Over the next few days drier

weather with the developing

high pressure system and the

front near WA will move into

the Bight and that will clear

the showers ahead of another

weak front for the south-west

tomorrow.

The stop story on News

Breakfast - a British court had

convicted three men of

conspiring to blow up Trans-Atlantic flights with liquid explosives disguised as

soft drinks. Abdulla Ahmed Ali,

Assad Sarwar and Tanvir Hussain

were found guilty of plotting

to kill thousands of people

with home-made bombs. Their

arrests in 2006 triggered

worldwide changes to airport

security. Here is the Alan jouns, the British home

secretary. This was a

particularly horrendous plot

which would have led to murder

and mayhem on an unimaginable

scale. The police security

services and CP is have done an

excellent job in bringing these

people to Justice as part of

the largest and most complex counterterrorism operation in

the UK. Here is how you can

contribute to News Breakfast

- In other news, the PM Kevin

Rudd has thanked the Vietnamese

Government for it help in

recovering the remains of two

Australian servicemen. Kevin

Rudd made the comments at an

official dinner for head of

Vietnam's communist party. General Secretary Nong Duc Mahn

is in Australia on a four day visit. The two leaders also

agreed to working to to fight

terrorism and people smuggling.

Another suspected asylum seeker

boat has been found off

north-west Australia and is

being escorted to Christmas

Island. The boat has seven

passenger and one crew member

onboard, it was spotted by surveillance aircraft off

Australia's coast. The boat was

stopped as it aprochd Ashmore

Reef. Australian awe sthrors increased their campaign for

theing if to maintain

restrictions on book imports.

The Government is considering

strapping a boon on imports, the Productivity Commission

says dropping the ban would

lead to chaeper books but a

petition of 4,000 signatures

will be handed to the

Government today urging it to

reject the proposal. Authors

say imports would destroy the

local industry. A Sudanese

women has been jailed for a

month for wearing trousers in

public. Lubna Hussein was

convicted and tuned $233 for violating Sudan's public

indecency law. Hussein said

she'd rather go to prison than

pay the fine. Ten of the women

were fined and flogged two days

later. Palestinian leaders have

condemned the veil Government

for approaching a plan to

extend settlements in the West

Bank. Israel plans to build 455

new houses for Jewish settlers.

The decision goes quens a

request from the United States

to halt all further

expansions Rescuers in the

southern Philippines have fluk

plucked a woman from the sea.

The coast guard says 957 people

have now been rescued. The

ferry sank early on Sunday,

nine people drowned. As a sur

survivors arrived back on dry

land they told of the panic

when the order was given to

abandon the blist listing

ferry. Some say the ferry was

listing even before it sailed

from the port. And the wait for

rescue krafrt seemed to take

forever. Although it was only a

few hours for most. This woman

says there was no alarm, the

ship suddenly listed as its

passengers slept and there was

panic as people grabbed life

vests. No alarm, there was no -

no-one come banging on the

doors to let us know and I was

in there for half an hour, so

there was stuff that happened

and the ship was tipping so

there was obviously something wrong.

TRANSLATION: I heard something

that sounded like an explosion

from the cargo area. Maybe

that's why the ship tilted even

more. Authorities will ask the

captain and crew just what bent

- went wrong. The captain is

aboard the navy ship 116 at the

moment but we have confirmed

and also about 113 crew were still verifying the number and

the whereabouts of the craw It's hoped the marine

inquiry can begin as soon as

possible. We have yet to

conduct the border marine

inquiry and our target is to

start by Friday The inquiry

will try to determine how a

similar incident can be avoided

in the future and also

determine the liability of the

crew, captain and the ferry

company. Philippine thors have

experts on standby in case the

sunken ferry starts leaking

oil. South Korea has demanded

an official explanation from

North Korea after Pyongyang

released flows from a dam

without warning. In the south

six people were swept away by

if floodwaters. Officials in

Seoul have called it an

unpardonable criminal

act. Rescuers have found the

bodice of three of the missing

South Koreans . They were

camping on the banks of the

river when water levels jumped

more than two 2m early Sunday

morning. Family members waiting

by the Riverside received the

grim news. Along with the

campers rescue workers found

the body of a 4 or 5-year-old

North Korean Boyd who had

apparently drifted down river.

South Korea has demanded an apology.

TRANSLATION: We strongly urge

the north not to make it happen

again, asking them to notify us

in aseasons when they expect to

release water . It's not the

firth the north has released

dam flows unannounced but it is

the first time there have been casualties. Deaths come as

international attitudes to

North Korea once again turn

frosty. The US envoy says

discussions between the US and

North Korea won't be held in

any form unless it's at six

party talks a aimed at ridding

Pyongyang of its nuclear

weapons. He was speaking in

Tokyo and his audience was

recryptive. Any diplomatic

tactics by North Korea should

not be trusted unless knock

engages in the denuclearsation process. In response North

Korea says lit strengthen its

military capacity in every way,

saying the US is showing empl

treatment hostility and

accusing Washington of having a

sinter agenda for a second

Korean war. The north has

recently announced it's many

the final stages of a second method for making nuclear

bombs. Renewed six party talks

could be a long way off.

Hundred of thousands of votes

in Afghanistan's election have

been cancelled due to electoral

fraud. Some polling stations

recorded 100% of the votes for President Hamid Karzai. With

counts still under way violence

in the country also continues.

In the latest unrest, a rocket

hit a residential area in the

capital of Kabul killing three

civilians. This rocket hit a

densely populated residential

area of western Kabul. Hardly a

strategic hit the victims were

a couple and their child. Tran treason TRANSLATION: The child tide

when I was carrying him in my

hands. They were not my

relatives but... Police say

three rockets were lobbed from

outside the expect. Insurgents

fired them according to

Government. In the north of the

country, NATO forces are still

scrambling to determine just ho

was under its rockets when it

launched an air strike on

hijacked fuel tankers three

days ago. Scores were killed,

human rights groups say they

were mostly civilians. At the

time, the German military

insisted all the victims were Taliban fighters but but over

the weekend the commander of

NATO forces in Afghanistan,

General Stanley McChrystal,

acknowledged that wasn't the

case. I clearly don't know all

the facts now and would not

want to affect a potential

potential investigation by

saying, making some conclusion

that would be inappropriate but

from what I have seen today and

going to the hospital, it's

clear to me that there were

some civilians who were harmed

in that site. Now the German

chancellor has joined in

calling for a more precise

answer and quickly. TRANSLATION: The German

Government and I personally

want to see a NATO

investigative team swiftly put

together a will carry out a

thorough and quick explanation

of what took place and whether

there were civilians killed. If

there have been civilians among

the victims, I will of course

deeply regret this. All year

NATO military leaders have

insirsed the reduction of

civilian casualties would be

the new measure of strategic

success in Afghanistan. Their

political leaders are wrestling

with another strategic

imperative, to gt together with

France, German and Britain, are

calling on the United Nations

to set new targets for transferring security

responsibilities to the Afghan authorities. Germany and

Britain are major contributors

to the h 1 nation Coalition on

Afghanistan. We have shared the

burden with many other

countries and one of the issues

is of course that we need

people to accept the

responsibilities and share the

burdens in the future. They

want this process to happen

after the Presidential

election. But that poll is

currently being undermined by

electoral fraud allegations.

The 'New York Times' has

reported that Afghans loyal to

President Hamid Karzai had set

up fictitious polling sites

with where no-one voted but

votes were still recorded.

TRANSLATION: According to the

evidence we have received we

have thrown out votes at 447

voting sites across the country

because of fraud

allegations. That's a small

percentage of the 26,000

polling stations which opened,

but still equates to more than

200,000 votes. I'm concerned

about the electoral process as

a whole and my concern is that

if you cannot save this

process, if the future

Government of Afghanistan is

based on fraud, on top of every

other problem that we have,

there will be ill legitimate

rule. In results released so

far Hamid Karzai has extended

his lead. He now has more than

48% of the vote while Abdullah

Abdullah has only 31%. Abdullah

Abdullah is urging his

supporters to remain

supporters to remain calm. On

the '7:30 Report' last night,

the south yaz correspondent

Sala Sarah did a really

powerful piece, she spent a

couple of days in a military

hospital there in Afghanistan

telling the story of the locals

who came in injuried from

different attacks and the

military personnel there

treating the people, was z just

- it was really powerful F you

get a chance to site, log on to

the ABC website and take a look

at it. The ABC's senior

management has wrapped up a

trip to Beijing where it's been

pushing for closer cooperation

between international and

Chinese state broadcasters. The

ABC was one of the first

foreign news organisations to

set up a bureau in Beijing as

Tom Iggulden reports. China's

thrust on to the world economic

stage is giving rise to serious

cultural ambitions too. The

country's national broadcasters

are trying to modernise and

expand into the global media

industry. Now the ABC's hoping

to get in on the act sending a

delegatation of senior

executives to Beijing to meet

Government and media

officials. We're talking with

them about animation series,

that they can do in partnership

with us, which we can show in

Australia, show in China and show elsewhere around the

world. The ABC's also been lobbying the Chinese Government

to allow it to prauk its

international service Australia

network in China. China's the

biggest mart market there is

and if Australia is to be

serious about using

broadcasting for soft

diplomacy, we want to be in

China and we want to tell the

Australian story. The ABC's

already been telling China's

story to Australians for

decades. In 18973 it was the

first western news broadcaster

to establish a perm qulent

bureau in Beijing. There's no

portfolio pollution Form quonts

gathered at a party to remind

the Chinese side of the ABC's

presence in the capital. Fmplt

a Chinese when I was here

mentioned the world capitalism,

20 years a prison Labor camp to

this year when the world comes

begging to China to save

capitalism and China agrees.

That's immense. From the ABC's

coverage of the 16989 Tiananmen

Square protests to today's

economic and diplomatic

tension, China's often been

uncomfortian with the

Australian media's presence

here, a potential sticking

point in negotiations about

cooperation between national broadcasters. They appreciate

it as an independent public

broadcaster your to report to

story as you find it and they

just want a fair go as

politicians in Canberra want a

fair two and I think that's

reasonable. The Chinese

Government has given to

indication it will grant

broadcasting rights to the ABC,

in fact it's accusing the

broadcaster of having an

anti-China bias but senior

managers from the ABC say

they'll keep coming back to

Beijing anyway. You can

anticipate the day can't you

that should that broadcaster be

set up, that relationship, that

one they maybe the computers go

down at the ABC and they can't

get into Internet access as

often happens in China. Could

be the case. You are watching

News Breakfast - the top stories on ABC News Breakfast -

- three British men have been

found guilty of plotting to

blow up - to blow up Trans-Atlantic flights with liquid explosives disguised as

soft drinks. The arrest of the

men in 2006 led to restricts on

the amount of liquids that can

be carried on planes. The Kevin

Rudd has met the head of

Vietnam's communist party at a

dinner overnight. Mr Rudd thanked General Secretary Nong

Duc Mahn for Vietnam's help in

repatriating the remains of two

Australian servicemen missing

in action after the war. And

Australian authors are stepping

up their campaign to stop the

Federal Government from lift

regular stricts on book

imports. A petition of 4,000

signatures will be handed to

the Government today uraniuming

it to reject the proposal.

Authors say import also ruin

the local industry. Of course

you continue have time to read

all the national papers today

so on your behalf, we've asked the Radio Australia broadcaster

Phil Kafcaloudes to do it for

you. Let's go straight to the 'Daily Telegraph', the big

story of the week in politics

in this country of course has

been the Underbelly things in

NSW. Smoking gun, house call.

This is about an MP who says that he saw Michael McGurk,

he's the man gunned down last

week, going into Federal

parliament but the smoking gun

house call. MP interviewed by

detectives. Ding, alarm bell

goes off. The MP doesn't want

to be named. Ding alarm bells

goes off. As it works out this

MP is simply a person who says

he saw Michael McGurk at the entrance to Parliament

House That's the base es for a

front page story. What's the

smoking gun bit I don't know.

Who knows. That's just a rhetorical flourish is

it Because if Michael McGurk

was seen in there there must

be, that's smoke, there must be

a gun. There must be a bullet

somewhere. He's visiting an MP.

We don't know who the MP was.

This MP had nothing to do with

anything. I can understand if

it was MP Joe O'Brien who said

I was interviewed by tet

detectives was I saw somebody

you would want your name in the

paper because "What's the real

relationship with Joe O'Brien.

He's got a shompgy face

anyway." So that's where that

story comes, starts, finishes,

all right. He may have been in

Parliament House, they've revud

footage but haven't found

him. And the thing with that

story also is that this tape

that everyone keeps talking

about is not necessarily

connected to what happened

anyway. There seem to be so

many different threads to this

story. Especially when you look

at Graham Richardson and there

is a big article - of course as

we've heard with Graham

Richardson, he has said that

he's heard this tape and it was barely audible. Graham

Richardson is getting on in

years, if we're going to necessarily trust Graham

Richardson's ears to say, we'll

get technology to fub out if

there anything on that one. I

don't know in the issue is

Graham Richardson's ears but

it's remarkable to me that

Graham Richardson even emerges

in the story after he's been

deliberately hidden from sight

saying not a word in relation

to a particular printing press

having burned down in

Switzerland ever since Offset

Alpine he's been as silent. It

is remarkable and you could

write a TV series about this.

It's called ?Underbelly."

Jennifer Hewitt in the taken

said just when it seems the

level of politics in NSW can't

sink any lower it's a sure bet

that it will. And risk staining

Federal Labor's shiny image

too. This is the interesting

thing from this morning. If it

does go any further and if it

does affect Kevin Rudd it

certainly hasn't done so far, a

new poll today - Nice segue

Phil? Got a few segways today.

You'll be very impressed. Here

we are the Newspoll today and

it shows a couple of things.

Kevin Rudd has actually gone up

and very interesting. 61% of

satisfaction rating gog up to 6

h%. Malcolm Turnbull has gone

up from 30 to 31. What else

have are have we got? We've

also got two party preferred

stats, exactly the same. 55 to

45. Big win, big lead there.

Better PM, Kevin Rudd is up

slightly on that one but this

was conducted from 4 to 6, so that was as the weekend

started. Interesting to see I

think next weekend what they

come out with. You think NSW

Labor problem also play out Federally? Well that's

certainly what is suggested in

the papers. I don't know if it

will. We need more facts before

that comes through but what

Jennifer Hewitt is saying it

looks like it may take some of the gloss after Federal as

well. I hear the theory mounted

from time to time, it doesn't

quite persuade me People often

say that voters are able to distinguish between State and

Federal politics. I did a

thesis on that once where all

the people that I interviewed

there was absolutely no

crossover all and we know that

with Neville Wran back in 1976

when Labor was on the nose.

Federally, Gough Whitlam was

very much out of favour but

what they're saying there that

the cross yore could well be

because the Labor right wing

power backers in NSW do have a

Federal ips flun as

well. Because you have have key

figures like Anthony Albanese

and the like up there. That two

party preferred figure is remarkable.. No matter what the

Opposition throws at the

Government so far, at least according to noouvrp not

sticking. Until the nick circumstances change significantly you have to think

that it will probably stay that

way It may well although was

esaid last week, an hour is a

long time if politics as Nathan

Rees found out but for Barack

Obama, it's so interesting,

segue, Barack Obama, his voters

are losing faith in him.

Apparently. This is a story

that is in the 'Age' and a

great pick of Barack Obama and

his family. Beautiful picture.

Look at how Malia is growing

up. She's standing on a

box. She's not actually. But

she's just grown like topsy.

Amazing. His voter support has

gone down a long way I

specially among whites. It was

expected that this would happen

anyway but white Democrats as

well. It's gone down 11% since

April. There's been a couple of

gaffes as you would expect from

any White House. Health care is

the problem. He should get some

advice from Hillary Clinton on

that one. If he gets health

care through then they expect

that his poll willing go

up. Because it is one of his

signature issues, apart from

anything else and he's got to

perform on that. But he's not.

He's stuffing it up royally,

it's been amazing, really and

surely some of that white

Democrat support that he's

Hockeyroosing would be both

surprise and huge

disappointment at how he's

mislandling a petrol and a

matter that means so much to

him. Communicates it so

poorly. And also one of his

chief advisors on green issue,

green jobs has had to resign

after making a few in-Jew

dishous statements as well.

From health care reform to

health care. This is in the

'Courier-Mail', it's about

exhausted doctors. This is

Queensland health has

proscribed that six cups of

coffee which is enough to

trigger an addiction, six cups

of coffee, Six a day can be

beneficial. I had - I don't

drink tea or coffee. I drink

one cha. What is cha. That

means tea? I could suck it in

for 3.50 for a cup of tea. This

is really serious issue because

the doctors are worked

ridiculous hours in some situations. It's a rite of

passage. Come on. Goodness

sake. And every year they don't

necessarily address the problem

and this is serious - the

health department has actually

recommended they drink

coffee? It could be beneficial

to have six cups of coffee.

Every doctor I've ever known

has said, "What? Get out of

here." Also on the front page

it says dead tide is the little

caption part. It should be

actually dead wide I would

think. I want to finish with

the 'Herald Sun', page 14 and

this is a story that says about

why women want to have sex. 84%

say that they have sex because

they want to ensure a quiet

life. Bargain to have chores

done. And putting in this in

context about marriage bag

wonderful institution, they

also do it to relieve powered

yom, give them something to do

and also to relieve a migraine,

marriage. Nice to see you,

thank you so much. You can watch all of News Breakfast streamed live every

morning. You go to your spurt

and your type in - with sport

here is Paul Kennedy. Thank

you. Teenager Melanie Oudin has

won through to the

quarterfinals of the US Open.

The American stunned 12th seed

Nadia Petrova in three sets to

prompt emotional celebrations.

Her twin sister was crying in

the stands as America adopted

their new champion. Just two

months ago, Oudin was well

outside the top 100 sleeping in

a dormitory while trying to

qualify for Wimbledon. Now

she's the talk of the tennis

world. Gary Ablett was named the AFL Players Association MVP

award by his peers for the

third consecutive year land.

Ablet miss there'd games this

year but is still one of the

favourites for the Brownlow

medal. The AFL Players

Association MVP award big award

is named after Leigh Matthews,

the champion player and coach.

Runner up was Dane Swan. Joel

Selwood won another world and

Australian cyclist Cadel Evans

has sur end ed the yellow

jersey in the spour of Spain.

Evans head a slender lead into

the second big mountain climb

stage. Spaniard Veloso won the

stage and Alejandro Valverde

now wears yellow but Evans

didn't lose too much time. Just

seven second bes hind the

leader. Alejandro Valverde is a controversial rider and has

been banned from a doping

charge, banned from riding in

Italy and that's why he

couldn't compete in the Tour de

France this year because a

couple of the stages dipped

down into Italy, so Cadel Evans

seven seconds behind him. Here is Vanessa O'Hanlon with a look

at the weather and it's been

pretty wet in the expect cities

over the last 24 hours.. That's

right. All of our capital

cities have had some showers.

Adelaide only 0.2 but 15mm fell

around Brisbane. More than 10

for both Hobart and Darwin.

They're experiencing an early wet season at the moment. We'll

take a look at today's rainfall

model next hour but from

today's satellite there's

plenty of cloud over eastern

Queensland with showers and

storms, heaviest falls today

expected near the coast.

Possibly 25mm. Nor showers

expected for eastern Tasmania

and also Victoria with cloud

that's around the low. It's

also directing strong winds

over the two States, by

tomorrow the trough over Queensland will swing around

east and rain will ease. Over

the next few days drier weather

with the developing high

pressure system and the front that's near WA will move into

the Bight and clear the

showers

Thank you. Let me call these

up for you. Received a couple

of Twitters this morning and

opinion asking what you think

about importing foreign pocks,

cheaper books apparently. "If

it leads to cheaper pricing I'm

for it N a global economy you

can't keep protecting the more

executive product." Still ahead

on News