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(generated from captions) This program is captioned live. Welcome to Ten's Early News. Good morning. I'm Bill Woods.

This morning, enter the battle for Timor Federal Police

for the first time today. on the dangerous front line

missing boyfriend Olivia Newton-John's and living in Mexico. reportedly alive on Melbourne. One man in custody. Police investigate a bashing murder score a courageous 1-all draw And in sport, the Socceroos

at all the morning's finance news. Now Kath Robinson with our first look US blue chips slipped on Friday a weak jobs report. as investors worried and hurt corporate profits. may lead to an economic slow down

touch down in Timor today A fresh wave of Australians that's overcome the nation. trying to put a stop to the violence is there. Ten reporter Murray McCloskey joining the front line today? Tell us about the Federal Police

The federal police were put in the

front line at yesterday they

there as front line at yesterday they were

They will say it fairly tense

They will say it fairly tense

situation. They managed to disperse situation. They managed to

the crowd. They are meet eventually

to Dover. But it was a good show by

the Federal Police. It was a baptism

of fire if you like in terms of what

they were facing on the

they were facing on the ground. to continue the nuclear debate. The Prime Minister remains determined an inquiry into nuclear energy A proposal on whether to hold will go to Cabinet early this week.

It was the mystery disappearance loved performer's hearts. that broke one of our most

may finally get some closure. But a year on Olivia Newton John has been reported alive. Her long-term boyfriend who's endured plenty of heart ache - Singing words of wisdom from a woman breast cancer

of her partner Patrick McDermott then the bizarre disappearance last year. I love him very much incredibly hard thing to go through. and as you can imagine it is an may be over. The four time Grammy winner's pain in Sydney's 'Daily Telegraph' Startling claims that the 48-year-old is alive remote Baja Peninsula. and living in Mexico's to three separate sightings, The paper points

faked his death on a fishing trip inflaming rumours the 48-year-old outstanding child support payments. to avoid possible jail time over to have taken an unscheduled stop Fishing boat 'Freedom' is believed Olivia's boyfriend of nine years that would have allowed to escape on land. chef on McDermott's last movements. A grand jury will quiz the boat's

Vanessa Arthur, Ten News. has revealed there's no doubt Model Michelle Leslie with drug possession in Bali. she was framed taking drugs in the past, While the 25-year-old admits discovered in her bag last August she claims the two ecstasy tablets were planted.

lead a reclusive and lonely life. Leslie says her ordeal's made her in his Melbourne home last night. A man has died after being bashed

are questioning another man Homicide detectives on his clothes nearby. who was found with blood Sunbury unit about 7:30 last night Neighbours called police to the after hearing a heated argument.

of a 36-year-old man Inside investigators found the body who'd been bashed. is in custody A 43-year-old man from Pasco Vale after being found outside the home. on him He had a large amount of blood to the Sunbury police station. and he was taken back over a stabbing and robbery Police have also arrested two people in Melbourne yesterday. was taken to hospital A 70-year-old shop keeper with injuries to his arms.

from a man's grand-daughter The attack occurring just metres was also lucky to survive. while his son At first I try to fight

I think that knife very sharp. but after my Dad falling down

after an intense police search The incident only ended in a neighbouring property. located two people hiding James Wakelin, Ten News.

has killed 21 people A violent attack in Iraq several high school students. including near the city of Baqouba Gunmen stopped two mini buses and dragged the passengers outside at point-blank range. before shooting them were either Shi'ites or Kurds. Most of the victims were not harmed in the assault. Four Sunni Arabs In another attack of a telecommunications company several employees were killed in a drive-by shooting.

will face court again next week. 17 terror suspects arrested in Canada were taken into custody yesterday The 12 men and 5 youths a huge vault of explosives after police discovered and bomb-making equipment. financial and political interests The men had devised plans to strike

in the city of Toronto. that included one tourist site

uto have trained together Officials say the men are known

at a camp in Canada

the same suburban mosque. and most attended have held a candle light vigil Thousands of people in Hong Kong overnight in the Tiananmen Square massacre. to remember those who died stormed the square in Beijing It's 17 years since the Chinese army mainly student protesters. killing hundreds of people, People held candles wreaths in Hong Kong's Victoria Park. and watched as others laid floral

all services and talk The Chinese Government has banned

on the Chinese mainland. commemorating the massacre Reduced to 10 men in the second half a courageous 1-all draw the Socceroos have scored against a top quality Dutch team. The match a huge confidence boost match against Japan next week. ahead of their opening World Cup

the Uruguay series In their biggest test since called into action early. not surprisingly Mark Schwarzer was Ruud Van Nistelroy moments later. But he couldn't keep out It could easily have been two in the area. when Grella handled the ball Australia's first shot on goal Marco Bresciano provided .5

closest to drawing the match level. but it was Mark Viduka who went

when Mark Viduka was dragged down. A rare move forward earning a penalty reviving memories of his miss The skipper though in the shoot-out against Uruguay. But Tim Cahill came to the rescue. Celebrations were short-lived.

offence drawing a red card. Luke Wilkshire's second bookable was causing loads of trouble Arsenal's Robin Van Persie denied again by Schwarzer and then by the wood work. Guss Hiddink's men holding on for a remarkable draw.

It should be a big Queen's birthday game between Collingwood and Melbourne, following the Demons' impressive 13 point win over St Kilda.

They delivered on a record-breaking day for David Neitz. The script couldn't have been written any better for the Demons new game's record holder.

David Neitz bursting the game wide open. Winning six of the last seven the Demons now tackle the league's surprise packet Collingwood.

The Pies preparing to be without Blake Caracella for the rest of the season after he suffered a cracked veterbrae and brusied spinal cord. He remains in hospital and will spend up to six weeks in a neck brace. In Canberra, the heartbreak continued for the Kangaroos. A Barry Hall inspired Sydney coming from 32-points down

to inflict the Roos fourth straight defeat. And Port Adelaide recorded back-to-back wins for the first time this year, beating Carlton by 34 points. Now finance the Government adamant Telstra will be sold off? The Government says we won't see a backflip like we did with the Snowy Hydro sale when time comes to sell off Telstra.

The Deputy Prime Minister Mark Vaile says stiff opposition in the bush to the Snowy sale was the key reason behind the decision.

The Government hopes to sell off the phone giant this year once Telstra overcomes its regulatory spat with the competition regulator.

Weather:

Now for a look at today's newspapers.

Michelle Leslie breaks her silence

and explains what really happened in Bali. More when Ten's Early News returns.

This program is captioned live. Welcome back to Ten's Early News. Making headlines this morning. The PM to tell Cabinet a public inquiry is needed into nuclear energy days after 14 sites were identified for a possible reactor.

Model Michelle Leslie tells of her Bali experience saying she was framed for drug possession. Our front line force - Federal Police in the thick of Timor action for the first time today. And in sport, a day of upsets at the French Open, top seeds taken out. Another finance update now, here's Kath Robinson. US stocks could be poised for a recovery this week

if the latest jobs data temper inflation without dimming the outlook for corporate profits.

The Prime Minister will tell Cabinet this week that the time has come for an inquiry into nuclear energy.

But the public remains sceptical after the release of a secret document showing 14 sites for a possible nuclear reactor.

Giving thanks and perhaps seeking some divine guidance, Mark Vaile agrees Australians aren't yet ready to sing the praises of nuclear energy. It's a reasonable position for any Australian to take, but we shouldn't take any decision in ignorance. A leaked Cabinet document shows

the nuclear issue was on the table well before now. 14 sites were selected nine years ago for a nuclear research facility. Cabinet was warned, publishing the list would lead to unnecessary alarm.

The sites included army land at Holsworthy near Sydney, at Goulburn further south, and even the Adelaide Hills, in Alexander Downer's own electorate. The number one thing the Australian people want to know is where are these nuclear power stations going to go?

But a new poll confirms Cabinet had good reason to keep the list secret - 45% of voters oppose nuclear energy. 15% haven't made up their minds. Despite the public's reluctance, the PM appears determined to continue the nuclear debate. A proposal for an inquiry into nuclear energy is expected go to Cabinet early this week. Fenn Kemp, Ten News.

Indonesia's grudge against Australia is expected to dissipate later this month when Prime Minister John Howard meets the country's president. Susilo Bambang Yudhoyono reportedly felt betrayed by Australia's decision to grant temporary protection visas to 42 Papuan separatists in March. He didn't speak to Mr Howard for several weeks after the ruling. But putting an end to the sourness Dr Yudhoyono now accepts Canberra's legal explanation for the visas.

A possible breakthrough in the missing person's case that's devastated Aussie songstress Olivia Newton-John. Her boyfriend of nine years - Patrick McDermott - is believed to be alive and living in Mexico.

Sydney's 'Daily Telegraph' has confirmed three separate sightings of the 48-year-old on the remote Baja Peninsula. The article adds to rumors McDermott faked his death on a fishing trip

to avoid hefty childcare repayments to his former wife. A grand jury in Australia was about to investigate his disappearance. Model Michelle Leslie has revealed there's no doubt she was framed with drug possession in Bali. While the 25-year-old admits taking drugs in the past, she claims the two ecstasy tablets discovered in her bag last August were planted. Six months after her release from a Bali jail,

Michelle Leslie has told her side of the story. The model believes she was set up. I've made many mistakes and this isn't one of them. Leslie also revealing she was told by authorities following her arrest she could avoid jail with money.

Initially they said US$25,000 and then asked if I wanted to negotiate in US or Euro. Leslie says her ordeal's made her lead a reclusive and lonely life. Her father also revealing his daughter's conviction

cost close to $300,000 and they had to mortgage the family home.

Federal Police head to Dili's dangerous front line for the first time today.

They'll join Australia's 1,300 peacekeeping troops who've spent a fourth consecutive day seizing weapons and carrying out raids. Mobs are running wild burning and looting. East Timor's embattled Prime Minister Mari Alkatiri issuing this desperate plea.

Meantime, the United Nations has ordered its personnel not to help Australian police investigating the slaughter of 12 Dili police.

The AFP says it will work with all parties.

A group of school children have been killed by gunmen in Iraq. Insurgents pulled the students from two buses picked out the Shia's and Kurds and executed them on the side of the road. Even for a country where violence is common place this was a ruthless attack. Students killed on their way to lessons. Men on their way to work. Dragged from the bus at a makeshift roadblock and shot.

It's not clear why they were killed. But this happened in a ethnically mixed area where sectarian tensions are high. And while the violence continues the political process seems to falter. The new PM failed again today to appoint a minister for defence or interior, the people responsible for dealing with security in Iraq.

All of which leaves the situation on the ground as periless as ever. This is Basra, the scene of a gun battle

at a mosque between Sunni worshippers and Shi'ite police.

The PM declared a state of emergency here last week. He promised to use an iron fist to make the city safe but so far there's only been more bloodshed and violence.

It's been a day of upsets at the French Open. Women's number one seed Amelie Mauresmo is out. 12th seed Mario Ancic has struggled through another five-setter to secure a quarterfinal meeting with world number one Roger Federer. In a battle of the rising stars Ancic, the towering Croatian, was down two sets to one, when he stepped up in the fourth.

But with fans willing him on 7th seed Tommy Robredo wouldn't give up easily. Long rallies as the game moved into its fourth hour. took their toll on both players. Cramp got the better of Robredo. While down the other end Ancic struggled to hold in the tension. Trainers called to see both through. Ancic timing his run to perfection.

taking his third five-setter of the tournament 7-5 in the final set. He'll meet Roger Federer in the quarterfinals after the top seed won his fourth round match in a clinical straight sets display. In the womens draw, Russia's Maria Sharapova has gone down to compatriot Dinara Safina in a three-set slugfest.

The fourth seed's lack of match practice showed as she made repeated unforced errors. allowing the taller Safina to get the upperhand in the final set coming from behind to win the last six games in a row.

While local hope top seed Amelie Mauresmo's Open has come to an end outsmarted and outplayed by Nicole Vaidisova who took the match 4-6 6-3 6-2

and will meet Venus Williams in the quarterfinals. Melbourne has put another knife in St Kilda's season and celebrated a few other occasions on the way. Demons skipper David Neitz broke the club record for games played and booted 8 goals in the 13 point win. But Melbourne's focus quickly switched to Collingwood next week. Magpies forward Blake Caracella could be out for the season with a cracked veterbra and bruised spinal chord. To rugby league and both sides for State of Origin II will be announced today. Blues halfback Brett Finch is expected to retain his spot. The same can't be said for referee Sean Hampstead. He's affectionately known as Mr Bean but may soon be known as Mr Gone.

Sean Hampstead yesterday in the video referee seat but under no less scrutiny. Hampstead awarded what appeared a text book double movement and he could find himself on the outer when the Origin referee is announced following a controversial performance on Friday night as well.

Manly won for the first time in over a decade at Penrith. Steve Menzies scoring a try in his 300th first grade match. The final score 29 to 22 Sea Eagles. The Tigers won two straight for the first time this season, beating grand finalists North Queensland 24-14. It's a good first step anyway but still a long way away from being where we were last year. Broncos remain on top of the ladder after beating the Warriors 23-18. Rob Canning, Ten News. More finance news and Tabcorp hopeful it will succeed with its battle for Unitab? The gaming giant's $2.1 billion takeover offer

is conditional on the Queensland Government amending legislation that would require Unitab's head office to remain in Queensland.

Tabcorp's MD is confident he can get the deal across the line by promising 200 jobs to Queenslanders

when Unitab's head office is absorbed into Tabcorp's operations. He's meeting with Government officials today in the hope of striking a deal and he may be in luck, A dramatic turn of events in the Westpoint saga with one of the company's main promoters denied entry to the United States after trying to flee Australia. Financial adviser Neil Austin Burnard flew out to America on Friday morning just hours before ASIC obtained orders to freeze his assets

and confiscate his passport. Mr Burnard reportedly attracted $100 million-worth of investment to Westpoint but when he arrived in the US, where it's believed he was planning to live, he was promptly sent back to Australia.

Weather for today -

Children under 10 years of age prescribed anti-depressants. More after this break when Ten's Early News returns..

This program is captioned live.

Welcome to Ten's Early News. This morning, Federal Police enter the battle for Timor on the dangerous front line for the first time today.

Olivia Newton-John's missing boyfriend reportedly alive and living in Mexico. Police investigate a bashing murder in Melbourne. One man in custody. And in sport, the Socceroos score a courageous 1-all draw in the Dutch friendly.

A look at today's weather forecast. Finance. US blue chips slipped on Friday.

A new poll shows Australians are yet to be convinced of the benefits of nuclear energy. 45% of those questioned oppose nuclear energy but 15% have yet to make up their minds.

The Prime Minister remains determined to continue the nuclear debate. A proposal on whether to hold an inquiry into nuclear energy will go to Cabinet early this week. Model Michelle Leslie has revealed there's no doubt she was framed with drug possession in Bali. While the 25-year-old admits taking drugs in the past, she claims the two ecstasy tablets discovered in her bag last August were planted. Leslie says her ordeal's made her lead a reclusive and lonely life.

Singing words of wisdom from a woman who's endured plenty of heartache - breast cancer then the bizarre disappearance of her partner Patrick McDermott last year. I love him very much and as you can imagine it is an incredibly hard thing to go through. The four time Grammy winner's pain may be over. Startling claims in Sydney's 'Daily Telegraph' that the 48-year-old is alive and living in Mexico's remote Baja Peninsula. The paper points to three separate sightings, inflaming rumours the 48-year-old faked his death on a fishing trip to avoid possible jail time over outstanding child support payments. Fishing boat 'Freedom' is believed to have taken an unscheduled stop

that would have allowed Olivia's boyfriend of nine years to escape on land. A grand jury will quiz the boat's chef on McDermott's last movements. Vanessa Arthur, Ten News.

A violent attack in Iraq has killed 21 people including several high school students. Gunmen stopped two mini buses near the city of Baqouba and dragged the passengers outside before shooting them at point-blank range. Most of the victims were either Shi'ites or Kurds. Four Sunni Arabs were not harmed in the assault. In another attack several employees of a telecommunications company were killed in a drive-by shooting.

Reduced to 10 men in the second half the Socceroos have scored a courageous 1-all draw against a top quality Dutch team. The match a huge confidence boost ahead of their opening World Cup match against Japan next week. In their biggest test since the Uruguay series not surprisingly Mark Schwarzer was called into action early. But he couldn't keep out Ruud Van Nistelroy moments later.

It could easily have been two

when Grella handled the ball in the area.

Marco Bresciano provided Australia's first shot on goal but it was Mark Viduka who went closest to drawing the match level. A rare move forward earning a penalty when Mark Viduka was dragged down. The skipper though reviving memories of his miss in the shoot-out against Uruguay. But Tim Cahill came to the rescue. Celebrations were short-lived. Luke Wilkshire's second bookable offence drawing a red card. Arsenal's Robin Van Persie was causing loads of trouble denied again by Schwarzer and then by the wood work. Guss Hiddink's men holding on for a remarkable draw. The script couldn't have been written any better

for the Demons new game's record holder. David Neitz bursting the game wide open.

Winning six of the last seven the Demons now tackle the league's surprise packet Collingwood.

The Pies preparing to be without Blake Caracella for the rest of the season after he suffered a cracked veterbrae and brusied spinal cord.

He remains in hospital and will spend up to six weeks in a neck brace. In Canberra, the heartbreak continued for the Kangaroos. A Barry Hall inspired Sydney coming from 32-points down to inflict the Roos fourth straight defeat.

And Port Adelaide recorded back-to-back wins for the first time this year, beating Carlton by 34 points.

Finance, and details about two upcoming State budgets. It's the first budget for Mr Iemma and it's expected to be in the red to the tune of $533 million. The State Government will reportedly work to try and secure more business investment but public service job cuts are likely to feature. In Queensland, the Government has admitted it will also have to borrow to fund major health and infrastructure projects. It will be the first time in four years the State has borrowed funds.

Weather for today -

More after this break when Ten's Early News returns..

This program is captioned live. Welcome back to Ten's Early News. Making headlines this morning.

The PM to tell Cabinet a public inquiry is needed into nuclear energy days after 14 sites were identified for a possible reactor. Model Michelle Leslie tells of her Bali experience saying she was framed for drug possession. Our front line force -

Federal Police in the thick of Timor action for the first time today. And in sport, a day of upsets at the French Open, top seeds taken out.

Giving thanks and perhaps seeking some divine guidance, Mark Vaile agrees Australians aren't yet ready to sing the praises of nuclear energy. It's a reasonable position for any Australian to take, but we shouldn't take any decision in ignorance. A leaked Cabinet document shows the nuclear issue was on the table well before now. 14 sites were selected nine years ago for a nuclear research facility.

Cabinet was warned, publishing the list would lead to unnecessary alarm. The sites included army land at Holsworthy near Sydney, at Goulburn further south, They eventually settled on an overhaul of Lucas Heights in Sydney - controversial to this day. I'm not ruling in or ruling out sites. The number one thing the Australian people want to know is where are these nuclear power stations going to go? But a new poll confirms Cabinet had good reason to keep the list secret -

Despite the public's reluctance, the PM appears determined to continue the nuclear debate. A proposal for an inquiry into nuclear energy is expected go to Cabinet early this week. Fenn Kemp, Ten News. Indonesia's grudge against Australia is expected to dissipate later this month when Prime Minister John Howard meets the country's president. Susilo Bambang Yudhoyono reportedly felt betrayed

by Australia's decision to grant temporary protection visas to 42 Papuan separatists in March.

He didn't speak to Mr Howard for several weeks after the ruling. But putting an end to the sourness Dr Yudhoyono now accepts Canberra's legal explanation for the visas. Model Michelle Leslie has revealed there's no doubt she was framed with drug possession in Bali. Six months after her release from a Bali jail,

Michelle Leslie has told her side of the story.

The model believes she was set up. I've made many mistakes and this isn't one of them. Leslie also revealing she was told by authorities following her arrest she could avoid jail with money.

Initially they said US$25,000 and then asked if I wanted to negotiate in US or Euro. Leslie says her ordeal's made her lead a reclusive and lonely life. Her father also revealing his daughter's conviction cost close to $300,000 and they had to mortgage the family home.

Federal Police head to Dili's dangerous front line for the first time today. They'll join Australia's 1,300 peacekeeping troops who've spent a fourth consecutive day seizing weapons and carrying out raids. Mobs are running wild burning and looting.

East Timor's embattled Prime Minister Mari Alkatiri issuing this desperate plea. Meantime, the United Nations has ordered its personnel not to help Australian police

investigating the slaughter of 12 Dili police. The AFP says it will work with all parties. A group of school children have been killed by gunmen in Iraq. Even for a country where violence is common place this was a ruthless attack. Students killed on their way to lessons. Men on their way to work. Dragged from the bus at a makeshift roadblock and shot. It's not clear why they were killed. But this happened in a ethnically mixed area where sectarian tensions are high. And while the violence continues the political process seems to falter. The new PM failed again today to appoint a minister for defence or interior,

the people responsible for dealing with security in Iraq. All of which leaves the situation on the ground as periless as ever. This is Basra, the scene of a gun battle at a mosque between Sunni worshippers and Shi'ite police. The PM declared a state of emergency here last week. He promised to use an iron fist to make the city safe but so far there's only been more bloodshed and violence.

A possible breakthrough in the missing person's case that's devastated Aussie songstress Olivia Newton-John. Her boyfriend of nine years - Patrick McDermott - is believed to be alive and living in Mexico. Sydney's 'Daily Telegraph' has confirmed three separate sightings of the 48-year-old on the remote Baja Peninsula. The article adds to rumors McDermott faked his death on a fishing trip

to avoid hefty childcare repayments to his former wife. A grand jury in Australia was about to investigate his disappearance. It's been a day of upsets at the French Open. 12th seed Mario Ancic has struggled through another five-setter to secure a quarterfinal meeting with world number one Roger Federer. Women's number one seed Amelie Mauresmo is out.

To rugby league and both sides for State of Origin II will be announced today. Blues halfback Brett Finch is expected to retain his spot. The same can't be said for referee Sean Hampstead. He's affectionately known as Mr Bean but may soon be known as Mr Gone. Sean Hampstead yesterday in the video referee seat but under no less scrutiny.

Hampstead awarded what appeared a text book double movement

and he could find himself on the outer when the Origin referee is announced following a controversial performance on Friday night as well. Manly won for the first time in over a decade at Penrith. Steve Menzies scoring a try in his 300th first grade match. The final score 29 to 22 Sea Eagles. The Tigers won two straight for the first time this season, beating grand finalists North Queensland 24-14. It's a good first step anyway but still a long way away from being where we were last year. Broncos remain on top of the ladder after beating the Warriors 23-18. Rob Canning, Ten News. Finance, worries over the ASX/SFE tie up.

Analysts and investors are concerned about the merger proposal and hope the Australian Stock Exchange will make some revisions. They want the ASX to sweeten its offer, saying the independent valuation by Deloitte underestimates future earnings potential at the SFE. The calls come just one month before shareholders vote on the proposal that's already received ACCC approval. The SFE maintains there is no reason to alter the offer.

Weather for today -

And that's it for Ten Early News this morning. I'm Bill Woods, bye for now. And I'm Kath Robinson.

Supertext Captions by the Australian Caption Centre. www.auscap.com.au