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(generated from captions) The Bin Laden files -

documents reveal the al-Qaeda

leader was struggling to

control his terrorism network. This Program is Captioned

Live. Defence dilemma - Federal

Budget cuts loom amid new

regional challenges. There's no

low hanging fruit left. This

will make for tougher choices. Petrol station under

the spot light again as prices

reach near record highs. And a

Pakistani cricketer convicted

of match fixing is released

early from an English jail.

Good morning, it's Friday, 4

May I'm Paul Kennedy. And I'm

Karina Carvalho. The top story

- the US Government has just

released a series of documents

seized during the raid on Osama

bin Laden's compound a year

ago. They show the al-Qaeda

leader was worried his

terrorist network was un focus

and had lost influence. The

papers also reveal that right

up to his death Osama bin Laden was hoping to carry out another

spectacular terrorist plot. He

thought the assassination of

Barack Obama would restore

faith in al-Qaeda. The last

days of Osama bin Laden, holed

up in his walled compound in

Pakistan, before he was killed

by US Navy commanders last

year. Now we're getting a

glimpse of the so-called

treasure trove of documents grabbed from that compound: In

a US election year, Washington

has chosen to release a

fraction of the 6,000

documents, the Bin Laden files

reveal he tasked two groups

with:

Bin Laden's plan was for

Joe Biden to take over as

President, believing he was

incompetent and would lead the

US into crisis. Every insurgent

tries to figure out how you k

you conduct a military strike

that has operational

significance but even more

importantly has enormous

political significance.

Terrorism or insurgency is at

its heart a political contest

as opposed to a military

contest. One of the de classified documents refers to

British targets in Afghanistan.

What emerges here is that

by the time he was killed a

year ago, Osama bin Laden was

struggling to remain in control

of al-Qaeda. The organisation

had already fragmented, so

today it its offshoots have

sprung up pretty much

independently in Pakistan, in

Yemen, Iraq and Somalia. There

is no longer a firm control at

the top. Keep in mind that

al-Qaeda was already on the

decline before Bin Laden's

death. But the group itself is

still struggling to be

relevant. There are flu jut

fits that have emerged from

al-Qaeda shadow that have their

own leadership financing

resources and desire to plot

and plan mass casualty attacks. They don't need al-Qaeda to do

it but they are motivated by

Bin Laden's ideology and that

proop perhaps is his most

relevant aspect today. That

legacy will take a long time to

fade. Bin Laden was a highly

charismatic figure for many and

in that sense it's surprising

the US has chosen to revive his

memory today. But then the

bogey man who backed Nine 11 -

mine 11 and once terrified

America is no more, his

organisation a shadow of what

it once was. Also making

news this morning - military

analysts say the Government

will have a hard time making

multibillion-dollar cuts to the

national defence Budget. Next

week's Budget will increase

defence cut s of more than $4

billion over the next four

years. One of the projects

that's been delayed is the

purchase of the Joint Strike Fighters. Public sector unions predict about 3,000 job s will

be lost in next week's Budget.

The CPSU warns 30 agency s will

be affected as the Government

increases what it's calling its

efficiency dividends. The CPSU

says cuts already announced are

having a serious impact on work

loads and services. The union

says people are waiting up to

four weeks for appointments at

Centrelink and Medicare. The

competition watchdog again has

petrol companies nits sights.

The ACCC says it will look into

the cruise of a website which

allows petrol stations to share up-to-date information about

their price changes. It's

concerned this allows petrol

retailers to quickly signal

price movements, monitor

competitors response s to and

react to them. Geoff Sims says

the price sharing arrangement

may be - Rod Sims says the

price sharing arrangement may

be stifling competition. Police

are still unsure how many

people died in a car crash

yesterday. At least at least

three people were in the Mercedeses. Investigators believe fuel from the wreckage

was ignite bade live powerline brought down in the crash.

Police say they're baffled as

to how the accident happened.

The Chinese dissident Chen

Guangcheng says he's been

unable to meet US officials to

discuss his desire to leave the

country. The blind activist,

who has been in hospital in

Beijing, says Chinese officials

have stopped US envoys visiting

him. After he escaped house

arrest last week, Mr Chen spent

six days in the American

embassy before emerging on

Wednesday. The issue continues

to over shadow key talks

between the US and China in

Beijing. Let's look at finance -

Now military avenlists say

the Government will have a hard

time making multibillion-dollar

cuts to the national defence.

Analyst Peter Jennings says the

cut s will be manageable but

not comfortable. Given a 27

billion dollar a year Defence

Budget that is not too large. I

think it's manageable for

Defence to do that. But it's

important to remember it does

come off the back of a series

of significant internal savings

and efficiencies that Defence

has been making over a few

years. So there's no low

hanging fruit left. This will

make for tougher choices. Mr Jennings

Jennings there. Now political

correspondent Melissa Clarke

joins us now from Canberra.

Good morning, Melissa. Can you

tell us what we know about the

defence cuts so far? What we

know is that there are two key

elements the Government has already announced that will

face cuts or at least delays

that will save money. For the

first of those is the Joint Strike Fighter program and Australia is delaying somewhat

the purchase of the first two

and then the subsequent 12

Joint Strike Fighter jets that

are being made in the US. Now,

the Government says that the

delay is because in the US

their construction is being

delayed and that by purning it

back it puts us in the same

time for delivery of those

Joint Strike Fighter jets as

the US. But that has the

benefit of $1.6 billion in safes

safes in the current Budget. So

if it is a dlai, it's certainly a most welcome one for the

Federal Government. One program

they have scrapped is

self-propelled artillery, which

is a procurement project,

they're not going to go with ahead with which will save

about a quarter of a billion

dollars. That is already a

substantial amount. The Federal

Government is, however,

guaranteeing that there won't

be cuts to any operations that

have to do with Australians

being overseas. So they're

guaranteeing there won't be

cuts to any gear or equipment

or provision of hard machinery

that might help Australian

troops in Afghanistan, or this

other missions overseas such as

in East Timor or the Solomon

Islands. And what else are we

expecting to hear on this

front, perhaps next week? We

will maybe hear about 2 billion

more cuts? Is that what your

information is? We're certainly

expecting some more significant

savings to be made by fr the

Defence Budget. There's a

couple of possibilities where

that might come from . It may

well come in terms of future

procurement that had been

planned. There's some big

question marks about the

Growler program which is an

electronic war fare program involving some of involving some of the air

force. So there's questions

about how much of that will go

ahead or the time frames if

that might be shuffled around.

There's also questions about

Australia's heavy lifting

capability. There's some new

procurements that need to be

made there and there's a

question about whether the

caribou s that the Defence

Department was plan ing to buy,

if that will still go a head to

the same extent that was

initially planned. So there

might May be some savings

around there. We are expecting

some savings to be made when it

comes to some entitlements for

Defence Force members. The Government has been very clear

it is not initiate ing any new

savings but they might take up

recommendations that may result

in some savings when it comes

to entitlements. So that will

be something that will be

closely looked at the fine

print in the Budget and,

finally, we can expect the

Defence Department to be made -

to be forced to make more

savings across the board as a

number of departments are

making savings through an

efficiency dividend. Defence

Department can be expected to

face a lot more pressure for

savings across the civilian side in the department as

well. And what can you tell us

about other Government

department s that may be

prepared to cut job s? There's

a lot of concern in Canberra

because it's seen that the

public sector is an easy target

when it comes to making Budget savings. Already the Federal

Government has gone back a

number of times to the various

departments with what they call

an efficiency dividend, which is where basically the Federal

Government goes to each

department or each agency and

says you need to wipe 1% or has

been more recently 2.a 5% off

your Budget. You figure out how

you're going to do it. We're

just going to give you 2.5%

less money and you have to

decide where those savings will

come from. That happened

certain n the last Budget which

caused a lot of concern. The Community and Public Sector

Union is now saying there is no

more room for this, if there is

any more of the efficiency

dividend then department s will

be forced to cut front-line

servicings and they're

particularly worried about the

Department of Health and the

department of human services in

that respect, fearing there

might be as many #35z,000 jobs

lost in this Budget. We've seen

it in some State Budgets and

certainly Canberra is hoping

there won't be more. Given it's

an area the Opposition has

indicated they this is a good

idea for the Budget cuts it

might be on a an easy one for

the Federal Government to get

support for. Melissa Clarke in Canberra. Let's go back overseas now because the

controversy surrounding Chinese

dissident Chen Guangcheng

continues to overis shadow key

talks between the US and China

in Beijing. The blind activist

escaped house arrest last week

before spending six gays in the

US Embassy and finally emerging

on Wednesday. Stephen McDonell

reports from Beijing. The

decision by Chen Guangcheng to

change his mind and ask the

United States to get him out of

this country has reig reignited

this diplomatic battle between

Washington and Beijing. They're

supposed to be having this high

level summit but the whole

thing is quite bizarre. The

leaders of these two countries

are smiling, pretending to be

friends and agenting as if this

big diplomatic stoush hasn't

been happening. When we spoke

to Chen Guangcheng, he really seemed distressed. He doesn't

know what to do. And he is

panicking because le is really

worried about his family's safety. He's got several

options and some of them are

good for both China and the US,

and one isn't. For example, if

he goes to the United States,

it's good for China, it shuts

him up. It's good for the Obama

Administration because it looks

strong on human rights. He

could stay here and study law

and just wait for things to

calm down a bit. That would

also be good for both the Obama

Administration and President

Hu's Government because, you

know, things would seem to be

getting smooth between the

count two countries. The worst

case scenario for both of them

is for Chen Guangcheng to stay

here and keep complaining about

how unsafe he is, how human

rights are being abused in

China and for this to just keep

rolling on and on. But, you

know, it's hard to see where

the end of this is because

there's no clear way out. One

possibility, according to Chen

Guangcheng, is he could just

get on the plane with Hillary

Clinton when she leaves and

head to the United States. But, given comments

given comments by the Chinese

Government regarding US

intervention in China's

internal affairs, I just can't

see that happening. So where is

the end? It's not immediately

in sight. Stephen McDonell

there in Beijing. Now France's

two remaining presidential

candidates have gone head-to-head. The contest went

for three hours. While no-one

could agree on a winner. All

agreed it was fierce. The morning after it was called a

savage preeselection debate.

Francois Hollande supporters

were claiming victory. 'He focus ed things on the real

problems of society whereas Mr Sarkozy seemed completely overwhelmed by the

debate.' Watched by nearly 18

million people, it was ill

temper and combative. Nicolas

Sarkozy went into this one

debate of the campaign trailing

in the polls. Francois Hollande

repeatedly criticised the

President's five-year record in

Office of Police Integrity. Mr

Sarkozy responded, calling him

a liar and

incompetent. Analysts said

while Mr Hollande may not have

been the clear winner, Mr

Sarkozy failed to land a

knockout punch. Speaking on

morning radio, the President

accused his opponent of being

the more aggressive.

TRANSLATION: I know he carries

a lot of aggressiveness in him,

that he is a socialist, that he

has the certainty that only the

left is legitimate and people

who are not on the left are suspect. TRANSLATION: My objective was

that everything should be said

and should be said clearly. And

those who thought that Nicolas

Sarkozy because he's the out going candidate could have an

advantage link ed to his job

and that I was going to be

intimidated, none of that was

verified. Nicolas Sarkozy would

have hoped his performance

would boost his re-election

bid. But the right ring

incumbent will instead be

bracing for defeat when France

votes this weekend. And now

to the front pages of the major

newspaper s around the country.

The 'Australian' says the

economic recovery is showing

alarming science of stalling,

casting doubts on next week's

Budget forecasts Tens of

thousands of families,

pensioners, single parents and

carers will have their welfare

payments slashed in a tough

love Federal Budget crackdown,

says the 'Herald Sun'. The

'West Australian' says single

parents will pay the price of Treasurer Wayne Swan's battle

to deliver a Budget

surplus. The 'Age' looks at

yesterday's announcement that more than $4 billion will be slashed from Australia's

defence Budget. The 'Financial

Review' says expert s are

worried that slashing the

defence Budget will undermine Australia's defence

capability. Prime Minister Julia Gillard says Australia

will be able to defend itself and

and its regional interests

despite those defence cuts,

that's in the 'Sydney Morning

Herald'. The 'Advertiser' says

SA has been assured 12 future

submarine s will be built in

the State. 'The Mercury' says

Tony Abbott has failed to

guarantee Tasmania would not

have its GST funding share cut

under a Coalition

Government. The parents of

Brisbane murder victim Allison

Baden-Clay have told the 'Courier Mail' of their 'Courier Mail' of their despair

at their daughter's death. The 'Canberra Times' reports a

driver evading police ran a red

light and killed a woman

crossing the road. 'The Daily Telegraph' describes how a mother pushed her daughter away

from the bus wheels that would

have crushed the baby girl to death. And the 'Northern

Territory News' reports on the

arrest of one of the Territory

east most wanted men. And the

front page also shows a 4.5m

salty captured at the Daly

River community after eating up

to nine pet dogs. A good front

page there from the 'Northern

Territory News': It hit s its

mark this morn. Nine pet dogs

that is awful. A few days ago

they had the photo of the

crocodile on the beach chasing

a pet dog. Thankfully that dog

was OK. This is a different

crocodile, different area and nine pet dogs. That is

awful. I'm more of a crocodile

man than a dog man! If you're

letting a dog roam around near

crocodiles, you have to pay the

price. It's don't know how

many viewers would agree? That

will get us a few viewer

comments no doubt. The ACCC has

announced it will look into a

website that petrol retailers

use to share pricing

information and it's launched

this investigation, it says

it's put the industry on notice

for some time about its

concerns in the area. This is

obviously high petrol prices a

big issue for consumers. We're

looking at a very tough Budget,

that is likely to be handed

down next week. Petrol prices

continue to rise. And we want

to know your thoughts - is this

ACCC investigation welcome? Do

the retailers in fact in your

opinion, do they Col yud to set

prices? Or do your eyes roll

when you hear swrun is going to

crackdown on petrol prices and

force them to be fair and

reasonable?. We will s will be discussing the issue with Alan

Evans, who is from the NRMA

later in the the program. But first a quick look at the weather.

These are the top stories -

newly released papers from

Osama bin Laden's hide-out

reveal he was frustrate and

struggling to control his

terror network. US military

says the papers show he was un

happy with affiliates attacks

on fellow Muslim, urging them to target the US

instead. Military analysts say

the Government will have a hard time making multibillion-dollar

cuts to the national defence

Budget. Next week's Budget will

include defence cuts of more

than $4 billion over the next

four years. And the competition

watchdog is again looking at

petrol prices. The ACCC says it will investigate the use of a

website which allow s petrol

stietion share up to date information about their price

changes. All eyes will be

on Westpac today as it is

expected to become a third of

the major banks to pass on at

least some of the Reserve

Bank's 50 basis pointses rate cut. While the industry

continues to appear strong,

Kate toezer looks at Australia

- Tozer looks at Australia's

bank ing history to see what could be in store. Australian

bank vence joy add dream

run. The. The smiles signaled

the news was good: It's a record interim for the bank. This is a strong, high

quality result. But a bank's

position is only as strong as

its loan book. When the

property market in South-East

Queensland turned sour last

year, the Bank of Queensland

took a hit. This approach has

contributed to the Bank of Queensland reporting a

statutory net loss after tax of

$91 million in the first half

of 2012. APRA's first round of

stress test revealed the banks

are well capitalised and secure

but there is a potential for

them to be thrown offcourse.

Economist Professor Ian Harper

says the outlook could change

if China's economy slows rap

udly, commodity prices plunge

and unemployment sores. A lot

of people would have to find

themselves in a situation where

they can't meet their mortgage

payment and where they can't

sell their houses in order to

recover their debt position.

Much has been happening in the

United States. That is the

type of trauma which would be

required before our banks got

into anything like serious

trouble. The Government's

financial claim scheme came

into effect in February,

guaranteeing deposits of

$250,000 per person, per

institution in the event of a

banking crisis. A temporary

guarantee was put in place in

the aftermath of the 2008 Lehman Brothers collapse and

there's a suggestion now that a

bank run then may have been

imminent. The episode's never

been investigated formally but

there was certainly a lot of anecdotal evidence that some

people had started to take

money out of banks and were

sitting on cash.

In 1990, rumours questioning

the financial state of the

Pyramid group of buildings

societies forced a run on

deposits. I am taking it all

out. Why? I heard a

rumour. Settle have you taken

your money out as a result of

those rumours? Yes. There were

whispers going around and

everyone said no, Pyramid is

too big, it can't happen. We

just thought it's small town

talk. Peter burn set a public

Annan in Geelong Victoria where

Pyramid was based. He was

nervous about the rumours but never believed they were

true. We have had the

reassurance that in fact

depositors funds are safe, are

secure and that the building society is in a sound,

financial position. No amount

of reassurance could contain the damage

the damage and eventually the

Pyramid group collapsed with

dents of more than $2

billion. For Peter Burnett, it

meant having to repay a $1

million loan which almost sent

him bankrupt. I spoke to every

loan shark, I spoke to so many

different Banks. I was paying

33% interest at one stage and I

had to do that for six months.

That hurt. I lost the family

home. Pyramid was crippled

after high risk ven turs and

bad loans but it's thought the

group may have been able to

trade through the crisis had

not it not been for the rumours

which some believe were spread

by rival institutions. The bank

runs are lethal: Any rumour

which undermine's people's

confidence is lethal. The

problem is the bank guarantees

in place don't protect against

market rumours. We can bring

you some breaking news from the

United States. We know that

Facebook is about to go public

later on this month. It has now

set its IPO share price of

between $28 and $35. Meaning

they're valuing the company at

guess how much, Paul? $87 to

E90 billion! You're not far

off. They're saying between $85

and $95 billion. The company is

set to list on the Nasdaq and

it would be morworth more than

hulit Packards: And that pricing would enable Facebook

to raise as much as $12 billion

through its stock market

listing. It will be the largest

ever for an Internet firm and

bigger than Google's valuation of

of $23 billion eight years ago.

Just extraordinary amounts of

money. So those two rower s

will be putting their hand out

again. So they should. To the

markets and the Dow was 62

points lower. The Nasdaq lost 36 points.

Most of my knowledge of Facebook comes from the movie

Social network. I think most

people's does. Mark Zuckerberg

is a very private person. He

does ntz release too much

information about himself. That

is my disclaimer on

inappropriate comments! Now

let's look at the sport and

Andrew Arthur joins us this

morning Good morning. We will

start over in England. A bit of

flaks the cricket you might

remember the match-fixing scam.

One of the cricketers jailed

for his part in the scam has

been released from jail early.

Mohammed Asif was released from

an English prison after serving

half his 12-month sentence.

A-Saif and salmon butt were

jailed for deliberately

throwing no balls in a

match. The 2003 US Open China

Shawn McKeel has shot a 5 under

67 to hold a one shot lead over

a group of three players.

Bright and breezy conditions

helped his game but life was tougher for

tougher for the morning players

with wet and windy conditions

making things difficult. Matthew Zions and Richard Green

are at the event but are well off the pace. 'Serpico' Jose

Mourinho has become the first

man to win four trophieses in

four countries. It follows

titles he won in Portugal,

England and Italy, Real Madrid

has taken the title from

Barcelona who has held it for

the last three years. Now, as

you guys would have heard, Paul

and Karina, yesterday was the

launch of the Olympic union form.

form. It's one o - uniform.

It's one of the many staged

reveelts an launches as we get

close to the public Olympics. A

month ago we had the launch of

the playing uniform. This time

the official uniform has been

revealed. Karina was critical

of the playing uniform. What do

you like of these? I like them.

When the photos started coming

through yesterday I thought

they were great. I like the

dullness of the green, some

people have likened it to a

lawn bowls outfit. And what do

you make of the dun lop

volleys? I they they're

great. Is it appropriate to

bring back Dunlop volleys into

high Olympic sports fashion? I

thought that was part of the

cuts from yesterday! But But

they're back in fashion: Very

1980s. It is. We can take a bit

of a look back at some of the

other uni forms. This has been

considered by some fashionista

s as a little bit bland. This

is at the Beijing Olympics.

This uni form was praised by

one of I think the 'New York

Times' fashion critic or

somebody from New York for its

colours. If we go back to

Athens it was a far more

relaxed look with the open

jumpers there and the stars on

the green yes, sir jersey. If

we go back again we can look at

- this is back in Sydney. It

was an interesting choice. My

favourite - 1992. There you go.

Safari. You that looks more

like a modern bowls uniform I

think than what today's outfit

- I Robert de Castella's

mode. I think he will be

embarrassed every time Olympic

uni forms come up because that

picture will always be brought

up. It's the key shot from the

opening ceremony in 1992. But

we will have more on looking a

head to the weekend sport later in the program. So what is coming

coming up on the weekend? A big

game tonight for the AFL, Collingwood hope ing to keep

their season on track. They

play the Bulldogs. And aig &

big game for the Eels in the

League rugby league. If they lose tonight against the

Bulldogs it will be their worst

start to a year ever. And

they're not playing that well.

It's a very real possibility

they won't win. Looking forward

to that Collingwood match

tonight, can we get a couple of

their stars back. It's a petty

we couldn't presue it with

Michael as well. I think he's

got the day off to go and study

the form and get ready mentally

for the big game tonight

between Collingwood and the

Western Bulldogs. I think the

Dogs fan also need a lot of

mental strength to get through. I think it's

Collingwood quite easily. Let's

hope so. They do have their

injury concerns. Thank you for

that, Andrew. Vanessa O'Hanlon

joins with us the weather for

the first time this morning.

Good morning. Good morning.

This will make you want to

reach out for your chot

chocolate. At Falls Creek in Victoria, snow started falling

late yesterday and it was

consistent throughout the day at Mount bore bore. The

official opening of the ski

weekend is still about wive

five weeks away. But as we look

on the satellite image, cloud

is still swirling around a low

pressure system and is radar is

still detecting rain around

that low. A band of cloud in the south-west is associated

with two low pressure troughs

and another front is due early

next week. Showers to expected

until next Wednesday. The highest highest rainfall s will be

today and we are expecting at

least 25mm in some areas. So

far, 5.4 material in Perth. The

trough off the east coast issem

badembedded with lows. The one

near Tasmania will continue to

direct cool southerly winds

over the south-east and showers

Lyn crease over the Queensland,

NSW border. The low off the NSW

coast is deepening. Around the States - You're watching ABC News

Breakfast. Still to come on the

program, we will be speaking to

our North America correspondent Craig McMurtrie about the

release of some of Osama bin

Laden's secret documents taken

in that raid when he was killed

a year ago in Pakistan. And

also ahead we will have a

review of some of the newspapers. This morning we

will be joined by Dr Lawrie

Zion, who is an Associate

Professor of journalism at Latrobe University. But first

the news with Paul. Leading the

news - documents found in Osama bin Laden's Pakistani compound

show the al-Qaeda was worried

his terrorist network was un

focus and had lost influences.

They showed Osama bin Laden

Qantas frustrated his regional terrorist groups were attacking

Muslims. Military analyst says

the Government will have a hard

time making multibillion-dollar

cuts to the national defence

Budget. Next week's Budget Lyn

collude cuts to more than $4

billion over the next four

years. One project that's been

Adelaide is the purchase of Joint Strike Fighters. Public

sector unions predict about

3,000 job s will be lost in

next week's Budget. The CPSU

warns 30 agencies will be

affected as the Government

increases its efficiency

dividend. The union says people

are already waiting up to four

weeks for apointments at

Centrelink and Meddy care. The competition watchdog again has

petrol companies in its sights. The ACCC

The ACCC says it will look into

a website which allows petrol

stations to share up to date

information about their price

changing. It's concerned this

aloud petrol retailers to

quickly signal price movements. Melbourne police say

they're unsure how many people

died when a car burst into

flames after hitting another

car yesterday afternoon. At

least three people were in the

Mercedes when it struck a

parked car and tree in

Northcote. Investigators

believe fuel was ignited by a

live powerline brought down in

the crash. Papers released

from Osama bin Laden's hide-out

show a frustrated al-Qaeda

leader struggling to control an

un rulely network. For more

we're joined by Craig McMurtrie

in Washington. How do these

documents paint Bin Laden and al-Qaeda? Essentially they

paint him as an isolated

figure, a micro manager,

someone who was concerned about

the future of the terrorist

organisation, al-Qaeda. He was

worried about the competency of al-Qaeda affiliates. It's

interesting they show he didn't

have that much time for

American radical cleric a lark

y. He was later killed in a

drone strike. It's important to

note that these are 17

documents of thousand s ceased

by the savy seals in that raid

a year ago that result ed in

Osama bin Laden's death and

these documents have been

chosen by official s to be

released on the anniversary of

his death They show some human

aspects to Osama bin Laden. He

was worried about his children,

urging family members to make sure they weren't being

followed to the Pakistan

compound where he was hiding

out. He lamented the fact that

al-Qaeda was targeting - was

looking for targets other than

direct major US targets. There

was conversations about wanting

to target Barack Obama, the US President of course, and then

General David Petraeus. There

doesn't seem to be anything explicit in these documents about what level of support he

was or wasn't getting from

Pakistan authorities which is

obviously a very, very

sensitive issue. But in short

they paint a picture of someone

who was isolate and someone

worried about the future of al-Qaeda. Another sensitive

issue is that of dissident Chen

Guangcheng. What can you tell

us about him. This story is

getting more and more

extraordinary. I can't remember

a diplomatic episode like this

one. A minutes ago, presumably

from his hospital bed in

Beijing hospital, Chen Guangcheng, this 40-year-old

human rights acted activist in

China now at the centre of this

diplomatic tug of war, phoned

into a congressional hearing to

make a direct appeal for the

Secretary of State, Hillary

Clinton, to meet with him, to

come to his hospital. And

really for US officials this is

turning into a diplomatic

nightmare. 24 hours ago they

naught they had a very neat solution that they had an agreement with Chinese

authorities, they were saying Mr Chen had not sought asylum,

they es koort - escorted him

out of the safety of the US

embassy to a hospital. They

told reporters that they had this deal where he would be

reunited with his family, would

be allowed to stay in Beijing

and study at university. Now

there are reports that his

family has been threatened,

that his wife was died Thaied

up an beaten by Chinese

officials. He was saying he was

un aware of this when he agreed

to leave the US beamsy and he

He is pleading to be allowed to

fly out with Hillary Clinton on

her aircraft and for his family

to come with him. For the

Secretary of State who is in

Beijing now pursuing sensitive

talks, this is a really

difficult problem. So what is

likely to be the reaction then from China and the United

States, Craig? Well, Chinese -

the Chinese Government is

essentially demanding an

apology. The US Ambassador

there, Gary Locke, has there, Gary Locke, has given interviewed, describing the

lepts the embassy went to to

reach out and bring Mr Chen

into the embassy, describing it

as a mission impossible

retrieval operation that they

went out and there are separate reports of a high speed chase

to get him to the embassy. Now,

Mr Chen's supporters are saying

he really had no choice but to

leave the embassy. They are

suggestioning that US officials

made it clear if he stayed at tem Bassi but didn't want to

seek asylum he would remain

separated from his family. As

to the way forward it's

difficult to see how this does

get resolved iefrmtsd dangerous

escalation of this issue: It

throws up again in the starkest

way possible the big difference

differences between these two

powers on human rights and the

US are saying they're not

getting access to Mr Chen. There are reports he is under

guard at the hospital. And

no-one is getting access to

him. Which makes this live

phone call to the congressional

hearing that's taken place in

the last few minutes even more

extraordinary. Back home and engineers

engineers and scientists are

urging the Federal Government

to look beyond short-term

politics when deciding how to

manage the country's water

supply. In a report released

today, the Academy of Technological Sciences and

Engineering notes that

innovation is being impeded by

existing long-term investments

in infrastructure. Dr Brian

Spies co-led the study and he

joins us from Sydney. Thanks

for your time. If innovation is being stifled by long-term

investments, what is the solution? Good morning. With

Australia with these so-called

droughts and floods it's very

important to have good long

term adaptable decision

making. Investments in water

structure Infrastructure have a lifetime so it's good to have a

flexible and adaptable system

based on the best available

science in order to be able to

adapt tz climate changes. Is

Australia particularly

difficult, given the different

water situations in different parts of the country? Yes,

that is correct. We have a very

different water supply to the

rest of the world. So we do is

have a very variable rainfall

pla,fully the major cities. The water authorities have been very good at developing a

portfolio of sources, based on

new science and technology. And

we need to be able to adapt and

use those quickly:

Unfortunately some decisions

mite be based on a short-term

political needs and not use

this infrastructure most

effectively. Do you think one

of those issues is desalination

plants? We've seen various

State governments around the

country look at desalination

options. They're very expensive

and take a long time to get up

and running. Desalination is a

very interesting example . That

is the only water supply option

we have which is not depend on

rainfall. So as far as

reliable, it's a very good thing

thing to have and almost all

the capital cities except

Darwin have desalination plants

in place or are planned. Unfortunately they're

very expensive and you really

need to run them at full

capacity once they're built in

order to get water share price

to be reasonable, around $2 a

kilo litre. If you turn them on and off when there's lots of rain

rain and water in the reserve was, the water becomes more

expensive. We should only be

using desal when it's necessary

and using the smallest possible

plants and be able to adapt and

bring more online as

needed. And what is your take

on the Murray-Darling Basin

issue? SA very keen to get the

largest share of the water

allocation. We have a seminar

this afternoon in the academy's symposium on the Murray-Darling

Basin. This project for the

academy is calleded Green growth in Australia and that is

trying to balance the social, environmental and economic

needs of the country. The

Murray-Darling Basin represent

s a very good example of a difficulty that policy makers

have in trying to balance those

three aspects. There's no point

growing the economy if you're

going to be destroy ing the

environment and social

cohesion. The Murray-Darling

Basin plan that's been rolled

out at the moment is a really

good example of how difficult

it is. But Australia is really

leading the world in trying to

get those three aspects balanced. Now what about water

recycling? This is obviously a

very controversialic and potable water, having it

allowable for drinking water. Is that something that

Australians you think will ever

embrace? I think we probably

have to eventually. Unfortunately there's the yuck factor,

there's the fear of people have

about recycled water. Which

doesn't really happen overseas

as much, it's very easy to have

a public scare campaign. But

the current level of science

and technology and water

purification is such that we

are able to mix highly purified

recycled water into the water supply. The south-east water grid up in Queensland is able

to do it but a decision has

been made not to do it at the

moment. It's something we

should be doing eventually.

Third pipe systems that a lot

of greenfield developments are

putting in are quite expensive

and it would be better to use

the standard water

infrastructure. But before that

is acceptable it would need a

lot of public discussion, education, really understanding

what the science and what the

advantages are of recycling. Dr Dryian Spies, a controversial

issue indeed. Thank you. Thank

you. Now to something that is

quite related to water and the

Prime Minister says Australia

has the potential to become the region's food super

power. Julia Gillard has told

an international summit in Melbourne

Melbourne Australia's food production industry could boom

like the mining industry. Just

as we have become minerals and

energy giant, Australia can be

a great provider of reliable,

high quality food to meet

Asia's growing needs. In doing

this we are not just an

exporter of commodities but a

partner in growing international markets and a

provider of higher valued

products and services for the

global food industry. As I

have said it is not just about

more exports, it's about

developing the systems and

services that add extra value

to them and participating in

the development of a market-based solution to food security

security across the

region. Building our food

processing industry so that it

can supply Asia's growing

consumer markets, and

developing the research, technologies

technologies and logistics that

strengthen irrigation, grow

higher yield crops and improve

safety. Shiftwork and overseas

travel can wreak halving on on

your body clock taking days or

weeks to reset. Drugs could be

on their way to provide relief.

Scientists have found two

settlement elements to

regulating the circadian

rhythm. Security guard Jack

Datta has been a shift worker

most of his life and a diabetic

for the last 30 years. As you

get older it affects you more.

You feel more tired and your

body clock is all over the

place: Help is on the way, and

it's been an international team effort. Sydney scientist Chris

Liddle has been working with

the San Diego team to identify

two core elements of the circadian clock. With wha we

were able to show is if you

take these guy s out, then the

circadian clock is oh severe ly

disrupted. This accomplished

them as gears or kotion of the

mechanism. A number of clocks

in the body recklate the entire

circadian cycle, thest not just

the brain that is affected by

disrupted sleep patterns. The

liver plays a key part in

regulating energy and

metabolism and that's where

scientists remove these two

resept Norse mice. You see

changes in behaviour and you

seeds See a rise in blood sugar

and blood fats. Shift workers

have a higher incidence of

diabetes an obesity. That's

often been blamed on a bad diet

but a disrupted sleep pat

everyone plays a big part. The

drugs that will offer some

relief for those with disrupted

circadian rhythms is coming. If

everything is normal like

eating Weiss and taking your

medication I suppose you feel

much better anyway. But the

64-year-olds is likely to be

retired well before any

treatment is available.

Interesting story there.

Shiftwork. We sort of qualify a

bit for that. A bit! That gives

me excuse for butt putting on

weight. You haven't put on any

weight but that is a very interesting story. It's interesting to see whether

there might be some sort of

medical solution or help. I

don't know whether it would

help me. I think - I don't know

if drugs are the answer. You

have to get your body into a rhythm. You're watching ABC

News Breakfast. The top stories

- newly released from Osama bin

Laden's hide-out reveal he was

frustrateded and struggling to

control his terror network. The

US military says the paper s

show sh he was un happy with

affiliates attacks on Mel

Fellow Muslims urging them to

target the US instead. Military

analysts say the Government

will have a hard time making

multibillion-dollar cuts to the

national defence Budget. Next

week's Budget will include

defence cuts of more than $4 billion over the next four years. The competition

watchdog is look at petrol

prices. The ACCC says it will

investigate the use of a

website which allows petrol

stations to share up to date information about their price

changes. For a look at the national newspapers this

morning we're joined in the

studio by Dr Lawrie Zion, who

is an Associate Professor of journalism at Latrobe University. Good morning. Good morning. We're going to start

with those defence cuts which

is on the front pages of many

of the newspapers. On the front

page, different figures I've

just been noticing being

bandied around as to the extent

of the cuts. Greg Sheridan in

the 'Australian' suggests they

might be $6 billion. The 'Fin

Review' is suggesting more than

$5 bll. The 'Age' is saying

defence is going to be slashed

by $4 billion. One of the themes that comes through is

obviously this is designed to

help bring in a balanced Budget

next week. And also I think

that part of the commentary on

it seems to focus on an

assessment of Labor having been

too lavish in its promise s a

as to what it was going to do

with Defence and is now

actually pulling back and

bringing forward a white paper

that was going to be done in a

couple of fr of years to next

year so they can look at what

our needs are. What is the

criticism about bringing

forward that white paper that

was due 12 months beyond? I

think that people are seeing

this as - a lot of people are

seeing this as a good thing in

itself. One of the things that

should be clarified about the

cuts is that along with those

Julia Gillard's announced the

greatest procurement outlay

ever in Australia I think by

saying there will be $40

billion put aside to build 12

submarines and it's going to

cost hundreds of millions of

dollars to do the case study,

to do the studies to see which

type we should get. In Adelaide

itself, this has gone down

particularly well in the Adelaide 'Advertiser' this

morning. So it looks like over

the next it will be 15 years

Adelaide will get - will be the

sent ore after $40 billion

spend on building new subs. It's huge boon for manufacturing in that

State. And we all know Adelaide

has had its problems with other industries going belly up or being in decline. It's re

orientation on paper it looks

like less in the air and more

on the sea. The Government can

say we have to balance the

Budget, we have to look more

close ly at some of the

promises made early when Rudd

was Prime Minister. So we will

get more detail next week on

that. What do you think about the timing of the announcement

yesterday and do you think it's

also because the electorate,

fleece an appetite to see

Defence spending cut because it

doesn't directly affect, say, families household

incomes? It's really hard to

say. I think a lot of people

would feel that Defence is

really important. But I think

the figures when you look at

how much it cost to build a

submarine and you look at, like

that 12 artillery cost s 600

million over four years and that's what's been taken away.

I think it's very hard for individuals to get their head

around do we need more planes

in the sky, do we need

different kinds of

submarines? And I suppose

no-one wants to feel

vulnerable. Big ticket it yoms

come out of defence. And I

guess with the strike fighter

program it's a delay as opposed

to a program being

scrapped. Soite Jess Tus money

has come out of this Budget and

will have to come out of a

Budget at some point. Yeah. In

a way it's very hard to kind of

get anything other than

abstract notion of what that

might mean. If you're thinking

how long will we be defended

with these changes in place? In

newspapers wars aren't just

fought against other

continuesries in the enemy

- It's on all fronts: There's

a war on welfare that is part

of this Budget as well. The 'Herald Sun' leads with that

this morning. I love it when

people use terms like tough

love crackdown in - because

where is the to start off

with? And they're calling it

Gillard's tough love gamble.

But what is really - what

really looks like is the main

gist to this story is the

details of some of the people

who will lose protection seems

to be highlighted in a very

positive way by the 'Herald

Sun'. If you go overseas for

six weeks you will have a

reduction in your benefits if

you're living on benefits and

the line is that benefits are

there to help you in situations

and not meant to be there for

life that. Tha will all play

quite well into the idea that

if you we're going to balance

the Budget we have to look at

what's happen ing with welfare.

The issue that will cause further discussion is what

happening with single paverns

who start to lose payments,

which they might otherwise be

able to keep until their child

is 16 year s old. It does look

like this may - at the moment

there's bandying around of

figures there will be a lot of

follow-up in the news today and

tomorrow as to what this means

for people who are currently on welfare. We're running out of

time so let's go to the

'Australian' and Barack Obama's

early Australian romance? In

his book that he put out a few

years ago he talked about a New

York girlfriend. And what

technical issue was a New York

and she was his girlfriend but

now a war war post journalist

has written a book called

Barack Obama - the The story

and named the girl. She is not

a girl now. And what happened

is that this Australian woman

has kept a diary and although

she talks a little bit in

general terms about the

break-up between them, in fact

a lot of what she says seems to

fit in with the Obama we know

today, that he seemed really

good but he has a sort of

withdrawn sense to him or can be cool. Interestingly he

really liked her voice and her

ak sent. And she on the other

hand said that he was confused

about whether he was white or

black. And how his identity

will blai Play out. Tin sights

that we've got via the magazine

Vanity Fair are interesting.

Certainly I don't think you

could say they put Obama in could say they put Obama in a

poor light. But it looks like

this romance has been kept

quiet, the identity of the

woman Genevieve Cook, the

Australian girl has been kept

Quieet for about 20

years. 'The Daily Telegraph'

and there's lots of stories

around Melbourne and Victoria

trying to pinch one State of

Origin match per year. It used

to be that the AFL people would

not even bother watching rugby

league now it's trying to steal it! I'm interested in what you

think of this. The idea behind

it, the rationale is Melbourne's Australia's

sporting capital. If we're

going to build up rugby league

in Melbourne we have to have

more matches here, all that

kind of things. Is this just

Australia Agra gate ing all of

Australia's main even and

couldn't Sydney retaliate by

borrowing our Grand Final or

the Melbourne Cup in the th

Sydney only for 2012? Paul? I

reckon it has to go that way.

More State of Origin of

Melbourne and the Grand Final

in Sydney would be good at some

stage. Agreed. No problem with me on that. Thank you very

much. And Andrew Arthur joins

us now with a the sport. We a

Pakistan cricketer jailed for

his part in a match-fixing scam

has been released from jail

early. Mohammad Asif was one of

three cricketers found guilty

and jailed over the scal. He

was released from an English

prison after serving half of

his 12-month sentence. Asif and

his team-mate Salman Butt and

Mohammad Amir were jailed over

a plot to bowl deliberate no

balls in a Test match against

England. All three players were

also given five-year playing

bans. The 2003 US Open champion

Shaun Micheel has the early

lead in the Spanish yep golf

tournament in Seville. He shot

a five der 67 to hold just a

one Hoff shot lead over a group

of three yair players. Bright

and breezy conditions helped

his became. Life on course was

much tougher for the morning

players with wet and windy

conditions making things quite difficult. And supercoach Jose

Mourinho has become the first

man to win four football league

times in different countries.

He guided Real Madrid to

success in pain's La Liga with

a 3-0 win over Bilbao. Titles

he won in Portugal, Italy and

England. That is the sport headlines for the moment. Thank

you. We will go to the weather now with Vanessa

O'Hanlon. Today's satellite

image and cloud over southern

Victoria and Tasmania still

wrapped around low. A trough is

causing showers over South-East

Queensland and north-east NSW.

And another band of cloud has

increased over WA's south-west

as low pressure troughs as low pressure troughs trigger

heavy rain. Another front al

system is due early next week.

That will maintain showers

until mid-next week. Around the States -

The Bin Laden files

- documents reveal the al-Qaeda

leader was struggling to

control his terrorism network. Terrorism or

insurgency is at its heart a

political contest as opposed to

a military contest. This Program is Captioned

Live.

Defence dilemma - Federal

Budget cuts loom. There is no

hanging fruit left. This will make for tougher choices. Melbourne Police

baffled by a car crash that

burnt to death at least three

young men. And an early release

for a Pakistani cricketer

convicted of match-fixing.

Good morning. You're watching

ABC News Breakfast on 4 May.

I'm Paul Kennedy. Coming up on

the progr