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Live.

The US emerging from

recession. If world's largest

economy grows for the first

time in a year . The man tipped

to be China's next Premier

lands in Australia to fast

electric a free trade

agreement. A second oil well

leaks into the Timor Sea off

Western Australia. And an

injury set break for the

Wallabies, vice captain Berrick

Barnes is ruled out of the

Bledisloe Cup crash in

Tokyo. Good morning. It's

Friday 30 October. I'm Joe

O'Brien. And I'm Virginia

Trioli.. The top story on News

Breakfast - the United States

economy has grown for the first

time in 12 months and it's a

sign that the deepest downturn

since the great depression

could be over. Official figures

show that the world's biggest

economy dwru by 3.5%.

Economists say the grouvt was

help fwisd Government's $7 70 billion plan and while President Obama says the

figures show the US is pulling

out of recession he warned that the recovery would be

slow. This is obviously welcome

news and affirmation that this

recession is abating and the

steps we've taken have made a

difference but I also know that

we've got a long way to go to

fully restore our economy and

recover from what's been the

longest and deepest downturn

since the great depression and

while this report today

represents real progress, the

benchmark I use to measure the

strength of our economy is not

just whether our GDP is growing

but whether we're creating

jobs, whether families are

having an easier time paying

their bills, whether our

businesses are hiring and doing

well. North America correspondent Lisa Miller joins

us now from Washington. Has the

mood lifted across the US? Well

no and that's exactly the

problem, Joe, because no matter

what the figures say, no matter

how much good news supposedly

has come out, Americans don't

feel like they're coming out of

a recession yet,, spe when you

look at how many jobs have been

lost over the last year or so

inta and I think that's why

you're hearing those tones from

people. Gieter in spoke about

these figures. Yes, it is the

first time that the economy has

actually shown signs of growth

when we've seen some pretty

horrific figures of decline,

6.4% declean just two water

quarters ago but no matter what

those figures say the problem

for Americans is they still

don't have their jobses and

homes are still being

foreclosed on, businesses

aren't hiring. That's the big

hurdle America has to overcome

before they can sit back and

say, "Yes thank goodness we've seen the end of the great

committee presentation." What's

led to the bounce? There's a

whole lot of factors. First and

for most, possibly the $700

billion Government stimulus package that President Obama

brought in. Most people are

crediting that with helping

those figures. We had that

massive cash for clunkers

scheme when Americans were

encouraged to ditch their old

cars, on new cars. Billion of

dollars spent on. That the

housesing market also revived

thanks to an $8,000 tax credit

for first time buyers, exports

were up. There were a lot of

factors that helped cricket to

seeing this growth thatby we have o-3.5%.

Ou you messaged the jobs

figures before. What has been

happening with the latest jobs

figures. Is that getting any

better? No, not at all. It's

9.8% unemployment here in

America and the White House

keeps saying expect it to go

over 10%. Even though we're

seeing this growth and people

are talking about the recession

perhaps being at an end we're

still possibly going to see

more jobs lost and unemployment

increase and they're also

saying that within another 12

months we're still getting to

see unemployment at the high

rates that we're seeing at the

moment. #.#% and that is the

real problem and why you heard

President Obama saying that

until people have jobs he's not

going to accept that this

recession is over. Just how

much of this bounce is being

attributed to the stimulus

package and how much of a

corner is there about what's

going to happen when that

stimulus is withdrawn? Most

analysts were expecting this

growth figure to be less than

it actually was so there is a

real sense of optimism that

perhaps people weren't

expecting today. And they are

attributing it to the stimulus.

$700 billion that was passed by

Congress. A lot of that is

still working its way through

the system. The issue with the

job, if we could go back to,

that that has always lagged

behind, whenever an economy

starts growing again the jobs

growth always lags behind so

it's just whether this

recession was so severe, the

damage so great, that that lag

is going to be even longer and

greater than we've seen in the

past and that's wh this

observers and the analysts just

don't know at this stage We've

heard this week this has been

the worst month for US troop

deaths in Afghanistan and

President Obama is facing that

there this morning? Yes. In

fact, it's one of the biggest

decisions facing him right now

and overnight he made an unscheduled surprise visit to

the Dover air force base just

north of Washington DC. That's

where the coffins of the bodies

of soldiers are returned to

America, where the family greet

them and in fact the President

went for the first time and

most people can't recall any

other President going to the

Dover air force base and

greeting these coffins as

they're returning. There were

15 army soldiers, another three

Government personnel who were

with the department who were

killed in the last week and

their deaths added to the

terrible figures for October

and of course this is all

weighing greatly on President

Obama because he is having to

make a decision about the

future war strategy for the US.

People have been asking him to

make it more quickly than he is

and they're wondering whether

this very symbolic gesture that

he made, going out there and

standling there and saluting

the coffins as they were

brought off the plane, is

perhaps a sign of which way

he's leaning but most people

have said that it was a very

solemn ceremony and they're

happy to have seen a President

do it. Thank you. In other news

this morning, the man tipped to

be Choon's next Premier has

arrived in Australia for talks

with the PM and the Opposition

Leader. Dr Li Keqiang is

China's executive vice Premier.

He was welcomed by the Deputy

PM Julia Gillard at Sydney

Airport last night. He's in

Australia to discuss the

progress of a free trade

agreement and to sign a series

of pacts ranging from education

to the environment. Another oil

well is now leaking into the

Timor Sea. The Northern Territory Government says gas

is leaking from the Puffin Oil Field off Western Australia.

The leak was reportedly dlovred

last month. Authorities are so

far been unable to plug a

separate leak. This one is at the West Atlas oil rig and

that's been discharging oil for

10 weeks. There's no end in

sight to the standoff involving

78 aslyum seekers on board the 'Oceanic Viking' customs ship

which is anchored off

Indonesia. The aslyum seekers

were due to be taken to a

detention centre but they're

refusing to leave the ship. The

Federal Opposition says the PM

should contact the Indonesian

President to resolve the

dispute, meanwhile, 34 aslyum

seekers are now being taken to

Christmas Island after their

boat was intercepted off the Ash Ashmore Reef yesterday.

Iran has responded to a draft

UN proposal aimed addressing

international concern over its

nuclear program. President

Mahmoud Ahmadinejad says Tehran

won't give up its capability

but is prepare ed to... More

than 60 soldiers and police

arrested in Iraq in connection

with sond's suicide bombings in

Baghdad. Among these arrested

from are the commanderers of 15 separate checkpoints near where

the blasts occurred. World

powers are yet to strike a deal

with Iran on its nuclear capabilities. After

negotiations with the

international atomic energy

agency, Iran wants to redraft a

urp brokered agreement which

would see its uranium processed offshore. Rip's chief nuclear

negotiator arrived in Vienna on

deadline to give his country's

answer to the prosed deal but

typically, the answer wasn't a

clear one. I just want to

announce that the Islamic

Republic of Iran would pursue

the first round of negotiation

which was held on 19 October in

Vienna with positive

approach. Reports say that Iran

has come back with new reasons.

Chief chiefly that it be

allowed to ship its stockpile

of uranium out of the country gradually rather than in one go. The head of the

international acome tick energy

agency says he's talking with

Iran and the other parties to

the deal and hopes that an

agreement will be reaching

soob. There's no indication of

whether soon means hours or

days. Even with no deal done, Iran's President Mahmoud

Ahmadinejad was triumphant at a

massive rally in the country's north.

TRANSLATION: Once they were

saying that you should shut Dunn the nuclear activity bus

today they've expressed their

readiness to cooperate with us

in fuel exchange, building

plants and nuclear reactors.

They've moved from

confrontation to

interaction. But the messages

from Iran remain mixed. Even

while claiming victory in these

negotiations, the Iranian

President was unusually placatory.

TRANSLATION: We welcome

cooperation on nuclear fuel, power plants and technology and

we are ready to

cooperate. Whether there has

indeed been a shift from

confrontation to cooperation

remains to be seen. The man

tipped to be China's next

Premier has arrived in

Australia. Chinese executive

vice Premier Dr Li Keqiang will

hold talks with Julia Gillard

today and for more Melissa

Clarke joins us now from

Canberra. This visit is being

seen as quite significant, isn't it?? Absolutely. There's

been some frosty relations

between Australia and China in

recent months. From the arrest

of Rio Tinto executive Stern Hu

flu Chinaclo's failed takeover

bid of Rio. The controversial

leader by ral beer today dir.

We've seen a bit of a a thaw

come. We've seen some

influential media in China

change their tune. We've had

the Chinese ambassador to Australia make some very

positive remarks about the

relationship and Stephen Smith

saying things are almost back

to normal and this visit by the

vice Premier Li who is the

number two, it's a very

important official visit,

giving an ex-tensive visit

talking on a range of topics,

particularly trade, is seen as

a real marker in an upturn in relations between the two

nations. And the free trade

discussions are clearly

important, it's been

interesting to note that China

is hoping to reregard the model

of the relationship between

Australia and China as a model

for its relss with other

western countries? Sri Lankan

Simon krooep has been plupging

away - sielon Crean has been

plugging away - Simon Crean has

been plugging away in the background. Clearly they see

there is a path forward there.

When relations were frosty a

couple of months ago there was

all sort of questions about

whether or not the business

imperatives between Australia

and China would triumph and I

would say this might be an

indicator that that is the

case. What's the latest with

the 'Oceanic Viking', the

customs boat that's still

moored off Indonesia with the

aslyum seekers refusing to get

off board? The stand-off is as

it was. And tear still no

closer to the resolution.

That's - and they're still no

closer to the resolution. How

are they going with simple

supplies like food and water.

The last time the 'Oceanic

Viking' had extra supplies

brought on board was a week ago

and that's when they were

moored off the Indonesian

coast. They were then able to

bring some some dry supply and

some engineering pieces.

They're going to have to do

that again in the next four

days because they are beginning

to run low on food and water. Australian border protection

and customs say that they do

have a plan in place for reprovisioning the boat and

they will be able to bring

extra water and food on board

so they may well be in for an

even longer haul yet. Let's

take a look at the front pages

of the major newspapers appear the country this morning. The 'Australian' says the Rudd

Government has failed its own

test for assessing

infrastructure projects

according to a Productivity Commission report.

The 'Financial Review' says

Australia and New Zealand

banking group chief executive

Mike Smith has criticised the

Reserve Bank for raising

interest rates too early. The

'Age' says the Reserve Bank of

Australia's bank note firm paid multimillion dollar commissions

to a senior Vietnamese official

and could be in breach of

Federal bribery laws. The son

of body in barrel victim Lucia

Amenta has denied he killed her

mother reports the 'Herald

Sun'. NSW Premier Nathan Rees

says funds raised from the sale

of the State's electricity

assets will be spent on

transport infrastructure,

reports the 'Sydney Morning

Herald'. The 'Daily Telegraph'

says Nathan Rees has given

himself and his Ministers a 3%

pay rise. Adelaide homes

surrounded by long grass are

posing a fire hazard says the

Adelaide 'Advertiser'. The

paper also reports replacing

Australia's fleet of submarines

could cost taxpayers $36

billion. The 'Northern

Territory News' says a grand

mother has been bashed by a

gang of teenagers as she walked

home. The ACT Government has

ordered an investigation into a

far right Christian group with

extreme views reports the. The

'Courier-Mail' says Queensland

Government owned corporations

spent $2 million wining and

dining corporate customers. And

Tasmania's Opposition says

sewage services across the

state are more expensive than

those in Melbourne reports the

'Mercury'. If you'd like to

send us your feed baedge - -

feedback - The top stories on

News Breakfast this morning -

the US economy starts to pull

out of recession after

recording its first positive

growth in 12 months. Official

figures show that America's

economy grew by 3.5% in the

last quarter. President Obama

says the recovery process will

take time. The man tipped to be

China's next Premier has

arrived in Australia for talks.

Dr Consider - - Dr Will discuss

trade and climate change when

he mets And another oil rig is

leaking in the Timor Sea. The Northern Territory Government

says gas is leaking from the

Puffin Oil Field. The I'll

field is 50 kilometre ace way

from the West Atlas oil rig

where oil has been gushing from

a well for nearly 10 weeks.

Reputation of the oil and gas

industry has taken another hit

with confirmation of a second

leak from an oil rig off

Western Australia. The rig's

said to be leaking gas into the

Timor Sea. The leak is just 50

kilometres from the West Atlas

oil rig which has been gushing

oil for nearly 10 weeks at a

rate of 400 barrels a day. News

emerged of a gas leak from the

Puffin Oil Field in the Timor

Sea which is operated by

Chinese oil and gas company

Sino-Pec. The Northern Territory Government says a

small amount of gas has escaped

from a well which isn't

harmful. It says Sino-pec will

take measures to cap the leak

gas. Meanwhile the operator of

the West Atlas oil rig fronted

the media this morning to

defend the management of a

massive oil spill off

Australia's north-west coast.

The company admits it's

impossible to say when the

problem will be fixed. We

remain committed and resolved

to achieve our goal and that

may require a few more attempts

over the next ten to 12 day sphwls oil has been gushing

from the mon Tara well platform

at the rate of 400 barrels a

day for nearly 10 weeks, the

company would not be drawn on

the cause of the leak but revealed how expensive the

operation has become. The

parent company will finalise

the stock exchange release in

Thailand and provision in our

accounts to the end of

September is $180 million. The

company has completed the first

round of its environmental

monitoring program of the area are area surrounding the oil

rig and nearby coastline. It concedes that environmental

damage has occurred but

maintains the escaping oil is

waxy and relative benign..

There certainly is an impact on

wildlife. I think there's been

27 oiled birds of which 17 are

dead and I'm not saying that's everything but there's

certainly more birds out there

and we've had single figure sea

snakes. Company says environmental monitoring of the

spill will be one of the

largest and most detailed in

Australia's history but admits

it could take years to gauge

the extent of the damage. The

managing director of Toll

Holdings is warning that the

Australian economy may not be

as rosy as many think. Paul

Little told the AGM that

volumes are picking up but says pre-Christmas trade will be

critical and he says that means

that it's it's too earliy to

withdraw the Government's

stimulus spending. The

transport and logistics firm is

something of a barometer for

the Australian economy. So it's cautious outlook should have

the experts taking

note. Australia could be a

little bit flatter than is

commonly believed. And Asia

clear I is starting to come off

a low base and show some

encouraging signs. Paul Little

told the company's AGM that

vowel volumes across its

business are rising especially

in Asia however he twarns next

six weeks will be crucial in

terms whether Toll Holdings

meets its target. Although

consumer demand remains strong he believes the Australian

Government should resist accelerating the withdrawal of

its stimulus program. With the

lead into Christmas now, with

our involvement in Christmas

volumes being so crucial,

consumer demand is something

we're watching very

carefully. And Asia remains the

company's main focus for new

acquisitions because it's

transport industry remains

fragmented. Paul Little suspect

ruling out purchases in the

United States either, despite the pronounced economic slow

down there We like I guess a softer economic situation

because it reduces prices

effectively of some of the targets that we're interested

in and there's no question that

the current economic situation

has stimulated some

opportunities there with

demaens have got themselves

into debt trouble. Any company

which gets too big you cannot

control. Executive pay was a

hot topic at the 2008 meeting.

However, this year's

remuneration report was passed

with almost 90% support and no

discussion from the

floor. We've recentred our

remuneration report quite significantly against taking on

board the flavour of the

comments made and taking advice

impartially and I believe we've

now got a policy that ticks all

the box and there wases after

appropriate that it be passed

so strongly. Those changes

include a freeze on all fixed

pay for the firm's top 150

executives. But after the

meeting some investors still

had their concerns in

particular on Paul Little's pay

package which could reach $6.5

million if bonuses are

achieved. A million is nauf. If

you have more than a mall, what

do you spend it on? Nobody's

worth more. I think in all

companies, not just Toll,

executives get paid too

much. But with Toll's share

price now 40% higher than the

same time last year, it seems

the vast majority of share

holders are in a more forgiving

mood. Now on the markets, Wall

Street has rallied because of

the news that the US is emerging from the global

financial crisis. There's

better than expects growth in

the last quarter.

Soon Vanessa O'Hanlon will be

be a long with a look at the weather. A thaep look at

Friday's papers and this

morning our readventurer is Mike Smith, former editor of the 'Age' newspaper and now

director of Inside Public

Relations. Now with sport here

is Luke Waters. Thank you. Good

morning. Rugby is first and

Australia's Bledisloe Cup hopes

have been date cruel blow with

vice captain barn barn to miss

through injuriment here's a

shot of barn barn being carried

off before he was rushed to

hospital with pa suspected

broken ankle, that was in Tokyo

yesterday yesterday. X-rays

cleared barp been a of any

fracture but he'll miss Saturday's clash. It's not known whether he'll be

available for the Wallabies

grand slam tour. To basketball

and the Adelaide 36ers

disappointing road report continued overnight going down

to the Breakers in Auckland. At

one point they trailed by 24

points but they rallied in the

second period Po outscore the

Kiwis 35 to 15. The match ended

up a real Nile baiter with the

claim locked at # 4 apiece

before five minute overtime.

The Breakers were too good

winning by eight points. To

baseball and the opening game of the world series has seen

the New York yankese go down

6-1 to Philadelphia. Phillies

left-hander chase utly

demolished the yankee pitchers.

His effort helped them to a 6-1

win and on track or a promising

season. To racing and leading

trainers are prebing a tight

contest in Saturday's Victoria

derby. This year's race pits

two old mates against each

other in a high quality

field. For a few years now

trainers Danny O'Brien and Mark

Kavanagh have watched the sun

come up together but on

Saturday their valuable colt

lts do battle for the $1.5

million Victoria derby.

Shamoline Warrior is St

favourite and Danny O'Brien

will turn out the second

favourite Rockferry but if you

believe them they next mix

business with pleasure. We

never talk about horses. We do

our work and to keep harmonious with your colleagues we never

talk about horses. Just talk.

Does talk a lot but no it's not

always about horses. We've got

our jobs to do but we're just

typical bant they're most

people have during the day He's

still hoping his stayer vigour

will make it ointo the cup

field without having tories on

Saturday to qualify and South

African trainer Herman Brown is

warning punters not to write

off the international Raiders.

His galloper Mourilyan

impressing in its final hit out

before thes by race. I didn't

bring him here nor nothing.

Ment it's going to be a really

difficult race and it's an open

race but he's definitely in

with a chance Suspended jockey

Glen Boss made the trip to

Sandown. His suspension

finishes on Cup Day. And the

pain Paine, the Australian

wicket-keeper injured a couple

of days ago with the broken

finger from the Siddle

delivery, his replacement has

been named and it is Graeme

Manou, probably conservative but the South Australian skipper will be going over to

India for the remaining five

one-day games. And was he sheen

as the most likely candidate to

replace Paine? Pretty much.

He's the only other contracted

Australian wicket-keeper but

he's probably the best

glovesman going around but perhaps not as good with the

bat as some of what the other

keepers are Isn't it remarkable

how types have changed if you

are not a cricket nut and

you're listening to our daily

conversation, these names would

mean nothing. They're all just

brand new strange names and I

think it says something about

how cricket Australia, yes,

signed some new talent but

really hasn't worked these

people through as well as they

could. Perhaps they're so new

to it ul. Also given the fact

that Australia have so many

injuries at the moment, I can't

remember in Australian cricket

there being so many juniors and

now we're down to our third

keeper because obviously Haddin

missed out, Paine and now manO

missed out, Paine and now manO

umplt News Breakfast can be

watched live on the web from

anywhere. If you're not near

your television or if the kids

have dominated it, pull out

your computer and visit the

website. Now with the weather

is here is vam and it's pretty

warm a-around the south-east

this morning? That's right. For

both Adelaide and Melbourne,

you're waking up to about 22

degrees as we look at the

satellite image and after a wet

week for parses of NSW and Queensland, just the odd storm

with the patchy cloud and for

the south-east we have a band

of cloud that's causing a few

light showers along a weak

front. On hor winds are causing

a few showers along the

Queensland coast and the high

in the Tasmaniaman sea sending

very perform anywheres into

Queensland, NSW and Victoria.

Vor hot conditions for swaus

and a trough will bring a weak

cool change to South Australia,

another in WA will cause shunder showers over the

north-west and after a lot

weekend a front on Monday will

bring a cool change to the south-east. Around the States -

The top story on News

Breakfast - there are signs

that the United States is

pulling out of recession.

America's economy grew by 3.5%

in the last quarter, its first

expansion in more than a

year. President Obama said the

figures showed that the US is

recovering, but he warned it

will be a slow process. This is

obviously welcome news and affirmation that this

rescretion abating and the

steps we've taken have made a

difference but I also know that

we've got a long way to go to

fully restore our economy and

recover from what's been the

longest and deepest downturn

since the great depression.

While this report today

representing real progress, the

benchmark I use to measure the

strength of our economy is not

just whether our GDP is growing

but whether we're creating

jobs, whether families are

having an easier time paying

their bills, whether our

businesses are hiring and doing well. These improvements are

the direct result of the tax

kits and investments that were

part of the refer covery act

and the actions we've taken to

stabilise the financial system

and unfreeze credit markets but

this is just a beginning.

Unemployment remains unacceptably high for every

person out of work forrer for

ever family, for ever small

business faces a credit crunch

the recession remains alive and

acute. In other news this

morning, the man tipped to be

China's's next Premier has

arrived in Australia for talks

with the PM and the Opposition

Leader. Dr Li Keqiang is

China's executive vice Premier,

he was welcomed by the Deputy

PM Julia Gillard at Sydney

Airport last night. He's in

Australia to discuss the

progress of a free trade

agreement, education, and the

environment. Another oil rig is

leaking in the Timor Sea. The Northern Territory Government

says gas is leaking from the Puffin Oil Field off Western

Australia. The leak was reportedly discovered last

month. Authorities have so far

been unable to plug a separate

leak at the West Atlas oil rig

which has been discharging oil

for 10 weeks now. There's no

end in sight to the stand-off

involving 78 aslyum seekers on

board the 'Oceanic Viking'

customs ship anchored off

Indonesia. The aslyum seekers

were due to be taken to a

detention centre but are

refusing to leave the ship. The

frofz says the PM should

contact the Indonesian

President to resolve the

dispute. Meanwhile 3 h aslyum

seekers are being taken to Christmas Island of their boat

was intercepted off Ashmore

Reef yesterday. Iran has

responded to a draft UN

proposal aimed at addressing

international concern over it

nuclear program. President

Mahmoud Ahmadinejad says Tehran

won't give up its nuclear

capabilities but is prepared to

ship some of its enriched

uranium abroad gradually. He

says the ground has been paved

for cooperation with the west

on the issue. The UN Security

Council will hold a crisis

meeting on Afghanistan today

following an attack on a UN

guest house in Kabul. Six UN

workers and three Afghans were

killed in the suicide bombing.

The meeting will also address

the security situation in

neighbouring Pakistan. US

President Obama has made a late

night visit to an air force

base in the United States to

honour the soldiers killed in

Afghanistan this month. The

President saluted the coffins

and met the solders' families.

His visit is being seen as

highly symbolic as he's it in

middle of weighs America's

future strategy in Afghanistan. The President

arrived at the air Bates north

of Washington just before 1am.

Knowing his presence as

commanderer in chief would be a

stark reminder of the price

America is paying for this war.

The bodies of 15 soldiers were

carried across the tarmac, they

were the victims of the

deadliest month for the US in

Afghanistan since the war

began. The media were once

banned from filming these kinds

of pictures at all, but these

images of a President is a

lieuing a flag-draped casket

are bound to endure. Barack

Obama is facing a difficult decision on Afghanistan a decision he vowed just this

week not to rush. While I will

never hastate to use force to

protect the American people or

our vital interest I also

promise you this - it is very

important as we consider our

next steps in Afghanistan. I

will never rush the solemn

decision of sending you into

harm's way. I won't risk your

lives unless it is absolutely

necessary. But the pressure is

mounting for him to to agree to

requests from his top

commanders to send more troops

into this deadly conflict or

risk losing a war that's now

being going for eight

years. Every day that goes by

without that decision being

made St more days there are

where young Americans are

unnecessarily in harm's way in

my view. He'll meet with the

joint keefs of staff again

tomorrow, his seventh meeting

during this review of the war

strategy. His decision the

White House says, will come

shortly. In China, the search

is on for the parents of 60

children who police believe

were stolen as part of a

trafficking ring. The 60 are

among more than 2,000 children

police have found in a six

month nation wide crackdown on

the crime. But even when such

children are e united with

their birth parents they face a

complicated future. Chinese state television is

broadcasting the faces of the

60 children, hoping someone,

somewhere will recognise them.

It's an unprecedented effort by

Chinese authorities to deal

with the Ann all too common

crime. Conservative Government

stills say around 2500 children

are stolen each year in China,

feeding a thriving market for either male off South Africa or

a second child to get around

the country's one child policy. TRANSLATION: When these

criminals kidnap children, the

only cost to them is often just

a piece of chewing gum or a

pack of peanuts. It's virtually

nothing, just a few cent bus

when the child is transferred

to an adopted family, they can

earn thousands. Most children are abducted in southern

China's booming industrial

cities. Police say it's the

families of migrant workers who

are the biggest target for

child abductions, they're often

from small villages where children are allowed to roam

free under the protective eye

of friends and neighbours, when

they come south for work

they're simply naive about the

darker side of life in the big

city. The long hours they work

at their factory jobs often

makes child minding extremely

difficult. This man has been

looking for his son for five

years. He and his wife have

travelled to every one of

China's more than 30 Provences

chasing up snippets of

information he thinks will help

find him.

TRANSLATION: Even if it means

we have no money for food, as

long as we have the much for

train tickets we'll still go.

It doesn't matter to us how

hard life is, our lives are

lived for our missing son. We

don't think about our own lives anymore He says the

Government's yak down won't

help stop demand for trafficked children?. Every time a child is rescued the Government

doesn't do anything to those

who bought the child. There is

no punishment for buyers in

China at all. We put the

accusation to police in the

city of dong who uncovered a

trafficking ring during the crackdown? I'd rather not

answer that question. It involves the issue of

legislation and also the issue

of multiparty cooperation among

different departments. This is

a video of some of supervisor

Dong's men interviewing a wm

who bought a son from the

traffickers. He's had the son

for search years and doesn't

want to give him back. Policele

the her there's a good chance

the birth parent also allow her

to legally adopt the child an

extraordinary asurps on the

face of it, but then look at

this video of the boy and two

others trafficked by the ring

when they're reunited with

their birth parents. Police

have asked to us obscure their

faces but it's clear the boys who were around 3 when they

were stolen and are now around

10 don't recognise their own

families. This boy cries as his

birth father tries to hold him

and then asks police to take

him away. Another looks on in

confusion as his birth mother

explains how much she's missed

him. He doesn't understand her die elect because he was

brought up in a different part

of China. Do you ever have

enstances where the adopted

parents end up working in

conjunction with the birth

parents to bring up the child

together? There are instances

of that and it's reasonable

from a humane perspective it's

a better way for the children

to grow up. But that's cold

comfort to those whose children

are missing. For so many years

I've done nothing but look for

my so in. People who never had

that experience will never

understand the pain of the

parents of missing

children. The horrible truth is

that even if he is found, his

parents may be forced to share

him with the family who bought

him. Well the crucial fine week

of Victoria's Spring Racing

Carnival kicks off tomorrow

with thousands of visitors

pouring into Melbourne for -y

day and for the Melbourne Cup

next Tuesday. As always the

fashion at Flemington will play

almost as big a role as the

horses. A bid to address

complaint it's dress standards

pr in decline this year the

Victorian racing club is

issuing advice on appropriate

atire especially for young women. MUSIC

I don't know. It's just all

changed and I still slightfully

shock of what you see when you

go to the races. I think that

now it doesn't seem to be sort

of striving for perfection like

it used to be years

ago. Fashion does change and

racing fashion is no exception

to that, so maybe it has kind

of gotten off track. I think

you've just got to have a

giggle and say, "We wouldn't

wear that in our day." J They

certainly wouldn't. Plunging

neckline, backless frock, in

fact the more flesh the party,

is now the dominant dress code

at Melbourne's spring racing

can valbut of course it wasn't

always so. It's a socially vent

too. Famous faces at the races.

It look nice and round and

while everyone looks at their

hats, they hope the ladies look

at the horses for fashion is

always with us but the

Melbourne Cup comes only once a

year. Almost from the moment it

started back in 1861, the

Melbourne Cup became a premiere

fashion event for the laidies.

Many would plan their outfits

for months in advance at the

carnival. There's plenty of

gayness in the open air with

Perth Kings walk and style

queens talk And over the years

the focus on dress intensified,

with the introduction of a

fashions on the field

competition in 1962. The

matches with the shoes and the

bag and the hat and all had to

complement the dress and

everything was paramount. There

was a section after the derby

in the Melbourne 'Age' on the

best dressed women at the races

and we all wanted to be in the

top eight. And did you get

into the top eight a number of

times? A number of time,

yes. The winds of change

started to sweep through in

1965 with the arrival of the

hat lest English model jeep

Shrimpton's. Her choice of race

wear last week swamped the

frontals of Australian

newspapers with banner

headlines. Many of the fashion

leaders in Melbourne are still

fuming. I was most disappointed

in inn deed. Think she would

have worn a hat? J nos

definitely. If came in a

sleeveless dress and no

demroefs and stockings, it was

an absolute outrage. Of course

the Sthimpton style was nothing

compared to what would follow

in the ensuring decades. By the

1 # 90s it had come to

this. Bare legs, fag tan,

little sort of itty bitty hats,

not groomed. Lady Susan Rehnof

is a well known picture tur of Spring Racing Carnivals she was

once a newspaper reporter on

fashion. She went on to judge

fashions on the field nah 1908

and and her then husband Robert

Sangster won the Melbourne Cup.

Her eye for fashion detail knew

no bounds. We always had our

hand bags and our shoes

sometimes dyed to match the

colour of the outfit we were

wearing or the main colour and

the hats were works of heart

#6789 Some of those hats are

now on display at Melbourne's

racing museum including one of

lady Susan Rehnofs. Originally

designed by Freddy Fox,

milliner to the British

royals. I just put it on on an

angle like that and off I went

to the derby. Would you wear

that now? Yes. Yes. I

would. Did you get a lot of

comments at the time I did.

Particularly from men. They

said, "When is it flying

away?" To cut a spruiking

figure at the carnival, the

search for the latest fashions

in racing wear does still go on

in exclusive boutiques with

designer labels dominate. I

think in the market place it's difficult for people to find

this kind of thing to start off

with because most stores don't

really stock race wear, they stock more party clothes and

this kind of thing and this is

unfortunately why is little

bare strappy dresses and this

kind of thing is really seen at

the races more Maybe now it's

just the after fluent and the

supermodels who can truly

afford what the more

traditional fashionable doyens

deem suitable fashion atire N

this corporate marquee on

Caulfield Cup day they're in abundance. Here today you can

see everyone looks gamer os,

sophisticated everyone's made a

little bit of effort. My

message is to try and embrace

that beautiful traditional

style. I don't think it's going

zoun hill. I think young laldys

are realising that you don't

have to show every part of your

body to be sexy and to have

fun. So here in the landof

corporate marquees, while high

fashion seems to be alive and

well, what about out in the

public arena. Less's go and

see. It becomes pretty clear

that the young women here

aren't about to ditch the

popular short skirts and scichy

dresses even on a 16 degree

day. I think it's in line with

the fashion of today I guess.

The more flesh the better these

days. That's not saying - I'm

not, you know, I'm just going

with the fashion. I tried to

make my dress shorter but I

couldn't. We don't want to look

like old people. I was looking

for something affordable and

youthful, yeah and just easy to

wear. If that's the way it is,

the fashion doyens resign

themselves to offering this

advice for the big racing days

ahead. It's easy to fok back

one too many champagnes but I

think pushing it too far to the

point where you can't walk is

probably best to be avoided. They let themselves

down is what I'm trying to say

because of their behaviour.

Really, rather than what they

wear. Now she... Whether anyone

young or old takes any notice,

is another matter. After all,

this is Melbourne's biggest

party time of the year and

restraint is not exactly the

buzz word. You're having

fun? Yes! Go the limo. That was

great to see Heather frocked

up. Seriously frocked up.

Imwith those young women. I

don't want a 16-year-old girl

to look like an our dour person

either. I wouldn't want to put

a stuffed sea gul on the hat. The top stories on ABC

News Breakfast -. The US

economy starts to pull out of

recession after recording its

first positive growth in 12

months. Official figures show

that America's economy grew by

3.5% in the last quarter.

President Obama says the

recovery process will take

time. The man stip tipped to be

China's next Premier has

arrived in Australia for talks.

Dr Li Keqiang is China's

executive vice Premier and

he'll discuss trade and climate

change with Deputy PM Julia

Gillard today. And another oil

rig is leaks in the Timor Sea. The Northern Territory

Government says disgas leaking

from the Puffin Oil Field, the

oil field is 50 kilometres away

from the West Atlas oil rig

where oil has been gushing from

a well for nearly 10

weeks. Let's take a look at the

national pain areas we're

joined now by Mike Smith, former editor of the 'Age' newspaper and now director of

Inside Public Relations. Good

morning. Good morning What do

you start with today? Well,

with the 'Daily Telegraph' I

don't think we're left in any

doubt about what the 'Daily

Telegraph' thinks about a 3%

pay rise that's going to NSW

politicians. And the Premier.

Whatever happened to the

separation between news and

comment. I think I have was

just making that point

yesterday. There's a couple of

points about this story. One,

we love pulling down tall

poppies but also kicking them

when they're down. Is there a

more embattled politician in

Australia than Nathan Rees. Can

you ever say Nathan Rees was a

tall poppy was? He was before he ran into serious political

problems about a year and a

half ago. There's a 3% pay rise

that's a direct flow on from a

Commonwealth decision. The

'Daily Telegraph' says he's

given himself a 3% pay rise. In

fact it flows from a Federal

tribunal that's an independent

body. On the front page they

say his salary is $351,000.

That figure include if you look

at page six, $100,000 in awe

lowances that don't go into his

pocket. They compare his salary

with Kevin Rudd owes of $340.S

That not fair because on top of

the 340 Kevin Rudd ges huge

allowances of much more than

100,000. Are they counts the

superannuation as well? They do

separate arithmetic on

that. One story last night was

the possibility of Sydney or

NSW losing the NRL final to a

place like Brisbane and Barry

oforel the Opposition Leader

came up with the phrase that it

wouldn't stand for NRL gnarl

nah National rugby league, it

would stand Nathan Rees loser

if he was to lose the NRL grand

final. I think there'd be no

way up for Nathan Rees? Nice

line. It's difficult to see a

way up for him anyway. He's

ridden in scandal and you want

want to back him for the next election You're not

representing Nathan Rees are

you? Very strong defence of him

this morning? No, I'm not

defending him. He's gone. He's

a loser, he won't win the next

election, I'll declare that but

I think it's a bit rough for

how the 'Daily Telegraph' has

treated a 3% pay rise that he

did not award himself You're

looking now at the

'Courier-Mail'?. Another soft

target is fat cats. Politicians

and fat cats and the demal has

got a story today about

Queensland's Government owned

enterprises spent more than $2

million on entertainment and

wining and dining last

year. These stories are always

a wonderful gimmee and they

come straight to newspapers

because the public documents

are there and there you go,

there's your headline? You can

see it around the News Limited

group, the papers in every

city, pick up the same FOI

request and get this sort of

material but again in this

story, what you don't learn

until deep into the story is in

fact they Kim came in a million dollars under budget. Their

budget was $3 opinion 8 million

and they spent $# million on

big parties and a million on

little parties it's less than

one tenth of 1% of the

dividends that those

enterprises give to got The

Queenslanders should be

grateful for that should they?

That's a small bar bill. The

'Age' has been running a bit of

a campaign on this RBA issue

for a while. It's pretty heavy

going? It is. The 'Age' has

been hammering it for

months Can you put it in a nut

shell for us? The story is that

the Reserve Bank of Australia

has an agency on which Reserve

Bank officials sit that markets

the technology to produce

plastic bank notes, a wonderful

bit of Australian technology

and it's been sold around the

world. The 'Age' story is about

how it's been sold ,

particularly to third world

countries or near third world

country that have different

business cultures and there's

allegations of wrieb bribes to

people in Vietnam, African

countries, and the 'Age' is having real trouble getting

traction with the story. One,

because it's difficult, and the

opposition is even lukewarm

about pursuing it. The other

media is not following it up.

Sometimes stories - Englandest

it's a good Colin Barnett You

think it's got legs. There a

couple of stories where I don't

quite see the suggesting

malfeasance there? The

difference between a commission

- legitimate commission and a

prieb is sometimes a fine line,

particularly in other business cultures when you're tealing

with other countries but there

are some parallels, not

complete parallels but some parallels with the Australian

wheat board and I think that's

what tweaked the 'Age''s

interest but there are also

some difference, sometimes a

story can be too exclusive. It

can be very difficult for the

other media to buy into it to

get a resource. It reminds me

of a story about a correspond

about from a deep African

country who cabled a story

exclusive story about a coup in

an obscure African Republic and

24 hours later he got a cable

from his editor saying "Your

story is still exclusive.

Please explain." The kudos to

the 'Age' for continuing down

this path if it believes that

this is a worthy issue, despite

the fact that other media

aren't picking it up simply

because it's a complicated

pretty dry kind of story? I'm

sure there's something from and

clearly the 'Age' thinks there is. There's serious questions

that need to be asked and

that's part of the role of the

media but surprising that it

hasn't got the track and been

picked up by other media or in

a strong way by the Opposition.

Maybe the Opposition is a bit

gun shy after ute fwt and going

after obscure encomplete stories. And in the meantime

you would then have the Reserve

Bank sitting there sitting

still very quietly thinking

"All right the storm hasn't

quite broken around us yet,

let's just hope it stays that

which." And they're staying silent in that environment, a

good strategy, but the RBA is

supposed the pillar of integ

and I independence , it's our top regulator, if there some

funny business and RBA

officials do sit on this

company that is marketing this

technology, it's a serious

issue. How quickly can you sum up for us the 'Sydney Morning

Herald' online story nah you'd

like to finish with? It's a

pretty slow news day. Every paper has a different front

page story, you know it's a

slow news day when you get

stories like this, a piece of

science from Britain that

looked into why tea pots

dribble. That might be a now

news day, that's the story

people will be talking about

all day though? Their solution

is to put some butter on the

spout. Who wants butter

flavoured tea? Always nice to

see you Mike Smith. Thank

you. The wonders of science!

You can watch all of News

Breakfast streemed live every

morning. Now with sport here is

Luke Waters? Thank you. Rugby

is first and Australia's

Bledisloe Cup hopes have been

crueled with vice captain

Berrick Barnes to piss through

injury. Here's a shot of barn

barn being carried off the

training track in Tokyo before

he was carried off. It's not

known whether Barnes will be

available for the Wallabies

grand slam tour. To basketball

and the Adelaide 36ers

disappointing road record

continued overnight going down

to the Breakers in Auckland. At

one point the Sixers trailed by

24 points but they rallied in

the six period to outscore the

Kiwis 35 to 15. The match ended

up a real nail pieter with the

game locked before the five

minute overtime but the

Breakers were too good. To gfl

and bad weather put an early

end to day one of the Singapore

Open. This is how things look,

pretty gloomy from mid-amp but

it was not beforern Iy Els

managed to put himself in a

handy position. Else finished

one shot off the face. Poult poult poult the clubhouse

leader after the rain affected

opening day. And a very

quickly, Matt Maguire has been

delisted by St Kilda after 99

games. But probably be picked

up by someone else now. Thank you. Here's Vanessa O'Hanlon

with a look at the weather and

what's in store for derby day

in Melbourne? There's a few

isolated showers, also

afternoon thunderstorms,

northerlies of up to 30km/h but

it will be warm. 28 degrees so

you can wear those skimpy

dresses. After a wet week for

part of NSW and Queensland if

we take take a look at the

satellite, the odd storm under

this patchy cloud. The band of

cloud is causing a few slight

showers along a weak front.

Onshore winds are causing awe

showers along the Queensland coast. Very warm northerlies are flowing from western Queensland into NSW and Victoria with this high that's

in the Tasman and very hot

conditions over the next few

days for South Australia.

Another trough in WA will cause thundery showers over the

north-west later on today. It

will be a hot weekend a front

on Monday will bring a deal

change towards the south-east.

For Queensland today -

Still ahead on News Breakfast

the - we'll be talking to an analyst from the Australian extra teenage yg policy

institute about the expected

cost of the next swag of

Australia's submarines and

they're expecting it's going to

cost around $36 billion. We

just can't seem to get ones

that aren't too noisy to run

quietly in the deep and we'll

also speak about the visit of

the high profile and power pfl

Chinese official to Australia.

That's coming up shortly after

this break. Stay with us.

This Program is Captioned

Live.

The US emerging from

recession. The world's largest

economy grows for the first

time in a year.. The man tipped

to be China's next Premier lands in Australia to fast

track a free trade agreement. A

second oil rig leaks into the

Timor Sea off Western

Australia. And an injury

setback for the Wallabies vice

captain Berrick Barnes is ruled

out for the Bledisloe Cup clash

in Tokyo. Good morningment it's

Friday 30 October. I'm Joe

O'Brien. And I'm Virginia

Trioli.. The top story on News

Breakfast - the United States

economy has grown for the first

time in 12 months, and it's a

sign that the deepest downturn

since the great depression could be over. Official figures

show that the world's biggest

economy grew by 3.5% in the

last quarter. Economists say

the growth was helped by the US

Government's $8 # 30 billion

stimulus plan and while