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ABC Midday Report -

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More later in the bulletin. Thanks Anita. the weekend restaurant attacks To Bali where the horror of

is still sinking in. has no doubt who was responsible, The Indonesian Government two bombs at Jimbaran Beach suicide bombers setting off and one in Kuta.

The death toll is at least 26. Two Australians - from Bussleton in Western Australia 16-year-old Brendan Fitzgerald from Newcastle in New South Wales and Jennifer Williamson, aged 48, are among them. That toll could rise. feared dead. A Newcastle couple is also missing,

yet be over. But Bali's terror may not

bomb attacks can not be ruled out Canberra is warning that further about their safety and that Australians concerned

should consider leaving.

So far this footage taken by a

tourist weaving through a Kuta cafe

is one of the best clues yet to the

identity of the bombers. (Screaming)

They've Police are studying the video.

They've slowed it down to reveal a Police are studying the video.

man with a backpack moving among

tables of diners. They believe he man with a backpack moving among the

was one of the suicide bombers and

they're trying to find his

accomplices. TRANSLATION: Three

suicide bombers consisted of one

in Kuta and three others in suicide bombers consisted of one man

Jimbaran. I strongly believe there

were others involved in the

and the preparing of the explosives were others involved in the planning

and they're the ones we are

pursuing. Bali police have also and they're the ones we are

releasing photos of three severed

heads found near the scene of each

explosion. At Jimbaran forensic

teams are picking through the ruins

of a beachside cafe. This idyllic

spot was a very different place on

Saturday night. EXPLOSION Police

say the attacks bear many of the

Chief among their hall Marx of the 2002 Bali bombings.

Chief among their suspects are hall Marx of the 2002 Bali bombings.

Malaysians, bomb-makers Azahari bin

Husin and Noordin Mohamed Top, key

members of the JI network. The

police chief denies his force was

caught offguard, saying it is very

easy to enter Bali. Transtrnce

it's impossible to make our police

force oh and and other authorities

to check on every body, therefore

don't feel we've been to check on every body, therefore we don't feel we've been caught to check on every body, therefore we

offguard. While it may be

relatively easy to enter Bali,

many couldn't wait to leave, though relatively easy to enter Bali, today

some with heavy hearts. People will

feel frightened about coming to

but it's still a lovely country and feel frightened about coming to Bali

the people are fantastic. Tim

Palmer is in Bali. He joins me now.

We've seen chilling video footage

seen inside restaurants. What help

is that to police in trying to help is that to police in trying to help seen inside restaurants. What help

who is behind this? It shows they

have a significant amount of

evidence already. That

video, which does appear to capture evidence already. That extraordinary

a bomber to the point of detonation.

But these three dismembered bodies

and those grisly photographs of

heads and legs that the police

released yesterday clearly would

suggest and especially during the

press conference where they

it they didn't call for public help press conference where they released

in identifying them, suggests that

the police may feel they're on the in identifying them, suggests that

way to identifying these Bombers.

This is after all how they began to

track down the bombers of the

Australian embassy in Jakarta last

year and tracked down not to known

Jemaah Islamiah terrorists,

remember, but to members of the

Islam Indonesia, the Islamic nation

of Indonesia, an older group who

a number of members who'd hooked up of Indonesia, an older group who had

with Jemaah Islamiah bosses, not in

Noordin Mohamed Top and Husin. So

we've

we've spoken to at least one JI Noordin Mohamed Top and Husin. So

operative, who's been an informant

for police, who says himself he

doesn't know these people and we

should be cautious in believing

are all known JI members. It could should be cautious in believing they

be fellow travellers have joined up

again with Top and Husin. We are

hearing reports that attempts have

been made to Britain all wounded

Australians home. What can you tell

us about that? Well, certainly of those who were hospitalised, all us about that? Well, certainly all of of those who were hospitalised, all us about that? Well, certainly all

of those who had injuries enough to

keep them in hospital v been moved

out of Bali overnight on two

Hercules flights that followed a

similar medivac flight to Singapore.

They're out of the country. The

teenagers from the group from

Newcastle where most of the older

members of the group were at this

dinner where people were either

killed or injured, all of the

children of that group have been

evacuated overnight and a large

number of holiday-makers have taken evacuated overnight and a large number of holiday-makers have taken

advantage of the Qantas flights,

extra flights, that have been put

and are streaming out of the extra flights, that have been put on

country. Against that, other people

are still despite warnings from the

doors government even slips put under

door s

doors in hotels are continuing

normal life. A bar not far from

and only 100m from the boom site at normal life. A bar not far from here

the Raja cafe in a street-front bar

where Australians watched

where Australians watched the rugby the Raja cafe in a street-front bar

league grand fine and. So some are

shrugging this off. Were locals in

Bali angry that their part of the

world has been attacked again?

I think the Balinese are

and they are waiting for the I think the Balinese are staggered

economic outcome of this again. It

took three years for rebuild

terrorism here. Bali has shown it

resillient N other places of the terrorism here. Bali has shown it is

world with this sort of attack they

wouldn't come back at all, but they

will start from square one no doubt

and while they have becomed trips

and are arriving we've heard of

hundreds and hundreds at single

hotels that are beginning to cancel

their troops that were already

booked. Tim Palmer, thanks for to arrive in Australia The first of the bomb blast victims medical treatment. are now receiving urgent Darwin early this morning Two Hercules aircraft flew into carrying some of the worst injured surgery. with many going straight into the Bali bombings 19 people wounded in

in RAAF Hercules. have been evacuated to Darwin Royal Darwin Hospital for assessment. The blast vicitms were ferried to Many are critically injured injuries, On board, 19 patients with bomb blast most were Australian, but some - as per the Federal Government's promise to treat anyone who needs help - were Indonesian. There was one Japanese tourist. Some were walking wounded, but a dozen so seriously injured, they were stretchered off the plane. Waiting for them ,

an emergency medical team to assess the injuires and prioritise those worst off. A fleet of ambulances ferried the patients to Royal Darwin Hospital's intenstive care unit. Some patients were rushed straight into surgery. On standby - the entire hospital staff. Many especially trained for this type of emergency. For many this was deja vu after treating more than 100 Bali bomb victims in 2002. There's very much a flashback mentality. That said, the staff have performed in a professional manner

and I have to say that I have looked at a number of heroes today. The types of injuries were also familiar. Our patients have largely been the victims of bomb blasts, shrapnel injury, penetrating injury compressions injury, ruptured ear drums, penetrated eyes and so on. They're consisent with the sort of injuries we saw at the time of the last Bali bombing.

The first patients back into

weren't on the huk clear. The first patients back into Darwin weren't on the huk clear late last

weren't on the huk clear late last t night it landed in Darwin on board

night it landed in Darwin on board a husband and wife. Both were in a

critical condition with severe

abdominal injuries and shrapnel

wounds. Surgeons say others are

critical with in promise they will

survive. With the shrapnel injuries

can there be penetration of body

materials and minimal signs there

materials and minimal signs there is a problem there. We will watch

a problem there. We will watch these patients closely over the next

patients closely over the next 24-48 hours because there may be problems

that we cannot detect now, which

that we cannot detect now, which may develop. Royal Darwin Hospital

remains on standby to receive more

of Bali's injured. Dr Len Notaras from Royal Darwin Hospital joins me now. Dr Notaras, what types of injuries are you seeing?

The injuries, Andrew, consistent ╝Yellow

wi ╝Yellowth

These bombs are intended to kill

and mame people around them. We see

damage to multiple organs, as well

Aspen traiting injuries, involving

ball bearings, nails and so on.

How badly hurt are the patients

How badly hurt are the patients in your hospital? Look, we've got a

number who are critical, though

stable, and the rest of them are

stable, and the rest of them are all in a serious condition, but not -

indeed, not critical. That said, at

least four, three in intensive care

and one in high dependency, are

and one in high dependency, are what we would refer to as quite serious

or critical. Do you expect all of

your patients to pull through?

Look, we've had vast experience

Look, we've had vast experience on this site in terms of trauma

response and indeed some internationally-recognised

successes. So, we will be doing

everything in our power to ensure

that's the kiss. I understand

Darwin Hospital has been building

Darwin Hospital has been building up its expertise in treating shrapnel

wounds. What's behind that?

Andrew, as you would likely be

Andrew, as you would likely be aware back in 1999 we were involved in

back in 1999 we were involved in the evacuation of Timor during the

referendum and then 2002 played the

major role in evacuation of the

victims of Bali, which also

victims of Bali, which also involved not just burns, but having a

mentation injuries, impalements and

so on. Since that particular time,

the Prime Minister has actually

declared Royal Darwin kp hospital

declared Royal Darwin kp hospital to be a national disaster centre,

basically. We've been building upon

the good work that went before and

reing it, so to speak. Dr Len

Notaras, thanks very much for your

time. Pleasure. The head of the Australian Federal Police says the bombs used in the Bali attacks were different to those seen before in the region.

Federal Police bomb and forensic experts have been dispatched to the island to assist with the investigation. At the same time, hundreds of Australians have returned home on specially chartered evacuation flights. Hundreds of holidaymakers arrived back at Sydney airport this morning. Many have sustained minor injuries and hearing loss and were escorted back by ambulance officers and Health Department doctors.

There's a lot of psychological trauma there. It's going to take a lot of grieving. A lot of the guys on board have seen some horrific sights. The Federal Police Commissioner has dismissed suggestions that there were bombs that didn't explode buried in the sand at Jimbaran Beach.

He says there were only three bombs used and police believe they were all detonated by suicide bombers. The Indon National Police Forensic Team has quickly been able to determine the number of bombs involved. What we're working with now

is the actual make up of the bomb. They're quite a different one to what we've seen being used before. Around a dozen federal police, post-blast and forensic experts arrived in Bali last night. Mick Keelty says there was no intelligence to warn of the terrorist strike,

but stories that tourists heard rumours of an impending attack will be investigated. So what do you do? Do you shut down Kuta that night because someone heard a rumour that might happen? There's still work to be done.

We are putting an enormous number of resources into Indonesia to assist them in combating JI. The Foreign Minister says it would have been helpful for Indonesia to ban Jemaah Islamiah, although he doubts it would make a practical difference to their operations. Between 5,000 and 7,000 Australians were in Bali over the weekend, among them the Federal Health Minister Tony Abbott with his family. I was actually just here for a holiday.

The Government's reiterating its travel advisory warning against non-essential travel to Indonesia, including Bali. In the end, it's a free world. They've got to make up their own minds whether they want to make the trip or whether they don't, and make their own assessments of what they think the risks are. But Alexander Downer says the risks are significant and ever-present and Australians should not think Bali will now be safe because there's just been an attack. Dana Robertson, ABC News, Canberra.

Dr Greg Fealy from the Australian National University is an expert on Indonesian politics and Islamic revivalism. I asked him what he thought the bombers were hoping to achieve. If we judge by the perpetrators of the previous Bali bombing in October 2002, the undoubted goal was to attack the West, particularly the US and its allies, and that undoubtedly includes Australia. The previous Bali bombers who have written quite a lot about this - we have a lot of testimony from the police which shows that that was their primary target. There are quite a few secondary aims that they have but more than anything else, they sought vengeance against what they see as Islam's enemies.

Do they just lose their impact after a while? I think JI itself likes to keep regular terrorist bombings going, at least one a year, because that's the reason for its existence, I think, also, there are a number of anniversaries that they would like to record,

if not to the exact date, at least generally.

I think there's an element of anniversary to the 9/11 attack here. That was clearly a primary inspiration for a lot of JI members and a lot of other people who have terrorist inclinations in Indonesia. That's one possible element in the timing.

I think that's probably so. One would hope that most tourists going to a place like Bali or Indonesia more generally would be aware of the travel warnings. Indeed, I think many travel agency web sites refer customers to those warnings. But, ultimately, people make their own decisions. People may decide they don't want to boycott a place like Bali because that would be playing into the hands of terrorists. Other people may well believe that the risk is quite small. I think if you compared, for example,

the risk of terrorist attack - of being a victim of a terrorist attack to the risk of being a victim of a criminal act or a serious traffic accident in a place like Indonesia,

it's not an unreasonable risk to take. But everyone will be making their own decision on that. US air power continues to patrol close to the Syrian border with Iraq, as part of an operation targetting insurgents and al-Qaeda militants.

US commanders say eight insurgents have been killed in the sweep so far. Hospital officials in the town of Qaim said eleven people had been killed in the US air attacks. There's been no confirmation of an al-Qaeda claim that it's captured two marines taking part in the offensive. And a video has been released of what appears to be a downed US unmanned spy plane. If the tape is authentic it would be one of the first times a Drone has been shot down.

Thousands of tourists, stranded by strikes and riots on the Mediterranean island of Corsica, have finally begun to leave. Unions have suspended the strike that had blocked ports on the French island and sparked clashes with police. Running battles erupted between protestors and police who used tear gas to disperse demonstators in the port city of Bastia. The catalyst for the violence is government plans to privatise a ferry service between Corsica and the French mainland.

To brighter news now. And back in Australia the Wests Tigers breakthrough rugby league premiership win has sparked unprecedented celebrations in Sydney's inner west and western suburbs. The Tigers stuck to the free-running brand of football that earned them a place in the decider. For the North Queensland Cowboys it was finals heartbreak for the second year running. The Tigers won 30-16 with captain Scott Prince named man of the match. Premierships proved hard to come by

for the the old Western Suburbs Magpies and Balmain Tigers. but in just their fifth season as a joint venture this party was anything but premature. The experts said they were too young and too loose in both attack and defence. In the end they were simply too good. There's be lots of teams there sitting at home thinking, "Hell, how did they win the competition," you know. We were better than them. The Cowboys lost in last year's premliminary finals.

This season they went won further. Are they getting closer to a title? It's a pretty emotional dressing room

because they know they tried hard and they never give up at any stage. The Townsville faithful made the southern pilgrimage in force and they were soon celebrating. COMMENTATOR: He scores. 21 tries for the year! But a blunder from a Cowboys veteran gave the Tigers a sniff. Chances a pass. Did they touch down? The Tigers have shattered the mould of drafting defence-based finals football and Benji Marshall is the spearhead of the new breed. I never thought we'd go this far this early and it's my first full year

and to make a grand final let alone win one is an absolute dream come true. His blistering run and flick pass set up Pat Richards to reward the winger's hard work to recover from an ankle injury. Pat Richards has scored! Anthony La Frankie crossed after the break for the Tigers before Jonathan Thurston's sleight of hand gave the Queenslanders some hope. They flick pass to Norton! It didn't last long as tries to Daniel Fitzhenry and Todd Paton on the final siren sparked the premiership celebrations.

The Tigers!

Scott Prince's poise under constant pressue earned him the Clive Churchill medal. This is icing on the cake. Bloody sensational. The Tigers were 150-1 to win the title mid-season. They're already amongst the favourites to retain the trophy in 2006. Chris Kimble, ABC News. The ABC's Joe O'Brien is at Campbelltown in Sydney

where celebrations are still going. And Joe, it has been a hectic schedule for the players?

Definitely has been. That's got a

bit to do with the fact it's a

merger club, so the players have

merger club, so the players have get double the number of engagements to

attend and double the amount of

partying to do. We're at the

Campbelltown sports stadium at the

moment. There are a couple of

thousand of fans who've gathered

here. The players are going to be

presented any minute now. I don't

know that anyone would have had

know that anyone would have had that much slope, know. After the game

players had a quick recovery

players had a quick recovery session and then on to the old West Club at

Ashfield and row sell. It wasn't

easy to sleep in that suburb last

night apparently. Off to like hard

Oval where they're expected to get

an even bigger reception than they

are getting here. This is a great

story for this club from even four

or five years ago. It's a sent

nation story. It's a merger club

nation story. It's a merger club the Balmain Tigers and Tigers. The

Tigers won last the 1960s. They

were in danger of collapse in the

1990s, merged in '99 and played

their first season in 2000. They

didn't have a lot of money. They

budget younger players and player

budget younger players and playered

that had been rejected from other

clubs. They weren't favourites at

the start of the season but became

crowd favourites at the start of

crowd favourites at the start of the season because of their flair and

style of play. They're called the

hype active puppy dogs. The win

hype active puppy dogs. The win saw Tim Sheens really cement his place

Tim Sheens really cement his place as one of the supercoaches of Rugby

League? It's great story for Tim

Sheens. He was koefing the Cowboys

Sheens. He was koefing the Cowboys a couple of years back and they

couple of years back and they dumped him because he wasn't producing the

good. He's come back in a Grand

Final and beaten them to add to

other wins he's last. Joe O'Brien,

thank you very much for. And just two players from yesterday's Grand Final have been named in the Australian team for the Tri-Nations Rugby League series.

They are Wests Tigers captain Scott Prince and the Cowboys Luke O'Donnell. Tasmania's rail operator, Pacific National, has warned it can't wait much longer for an injection of government funding before it closes its container freight services on the island. Pacific National wants more than $100 million to upgrade infrastructure to make the service viable. The Federal Government has lashed out at the Toll-Patrick's joint venture, saying taxpayers can't be expected to subsidise profitable companies.

But the rail operator says it's only fair that it receives some assistance.

If you compare it against the road system,

they are receiving grants from the Government, they are receiving assistance. So far the rail system has not received any subsidies or any assistance at all. The Tasmanian and Federal governments are considering commissioning an independent study into the rail network before deciding on any funding. And in more bad news for Tasmania, the Renison tin mine on the west coast

is to close because of a significant drop in the tin price. About 200 workers will lose their jobs. Anita Savage joins us again with a closer look at the markets. And, Anita, what impact, if any, is the latest terrorist attack in Bali having on our market today?

It's not really having any major

direct impact, Andrew. There might

be a few squiters, the attack

be a few squiters, the attack wasn't on the financial infrastructure. So

the broader market is relatively

unscathed. The sad truth, though,

unscathed. The sad truth, though, is since September 11, the possibility

of terrorism is already factored

into investments and that's why

we've seen little impact today and

why the market weathered the recent

attacks in London without any major

financial losses. This lunchtime

financial losses. This lunchtime the All Ords is down about 6 points at

4,587. The ASX 200 is also 6 points

lower at 4,635. One of the

lower at 4,635. One of the companies that is definitely feeling the

effects, though, is Qantas.

effects, though, is Qantas. Airlines always are hit particularly hard by

terrorist attacks. Shares in Qantas

opened more than 1% lower. They're

now down 2 cents at $3.35. Qantas

flies about 20 services into

Indonesia a week. The global

Indonesia a week. The global airline industry has racked up losses of

more than $40 billion in the past

five years and started with the

September 11 attacks in the US and

then has continued with the war in

Iraq, the SARS virus and soaring

fuel prices and bombings in Bali,

Madrid and London. Anita, what is

moving the market today? The big

miners are weighing on the market.

Rio Tinto and BHP Billiton have

dropped in a fall in copper prices

in New York. Rio tinlt tow shares

are 6 cents lower. The BHP Billiton

is off 5 cents at $22.20 a share.

Trading volumes are thin today and

that is because of the Labor day

public holiday in NSW, South

Australia and the ACT as well. So

let's have a closer look at some of

the domestic markets' other big

movers in the ASX top 100. Grocery wholesaler Metcash and Sonic Healthcare are up more than 1%. Lihir Gold and miner, Newcrest down almost 2%. Thanks Anita. To Wall Sreet where stocks reversed early losses to finish in the black. The Dow closed up 16 points. The Nasdaq added 11. In London, the FTSE was steady.

In Japan, the Nikkei on the slide after recent gains. Hong Kong has opened weaker. New Zealand is down slightly. In currencies: In commodities:

The stock market is continuing to boost the retirement incomes of Australians with its 10th consecutive quarterly rise. Although the market lost ground on Friday,

it was up nearly 9% since 1 July. I asked Colonial First State's head of investment research, Hans Kunnen,

if the China's resources boom is driving the market at the moment.

Well, the resources boom has

certainly added significantly to

certainly added significantly to the boom, but, no, other companies,

industrials, the wool worth, the

Coles the banks are also doing

particularly well at this time.

So how long do you think the

market can maintain this stellar

performance? The economy has been

growing now for 14 years and

growing now for 14 years and profits areprofits will continue to grow

areprofits will continue to grow and that will support the share market.

So there's no immediate end in

sight, in terms of the general

uptrend of the share market. Any

threats out there you can see?

Well, there are always issues

Well, there are always issues that could happen. Overseas if the

could happen. Overseas if the United States has some really bad news in

the share market falls, we'd be

affected by that, but because our

economy is strong, because we're

selling materials to China, our

interest rates are low, the whole

economy is doing well and they are

the sorts of things that support

the sorts of things that support the market. It's inflation, it could be

oil prices and it could be issues

oil prices and it could be issues in the US that hold us back for a

while. In the current climate,

which are the most vulnerable

sectors of the market? The ones

with d most competition in them. If

share prices depend on earnings,

where there's strong competition,

that's where there are problems and

we are seeing that in the smaller

retail sector, we're seeing that in

telecommunications and to some

degree we're seeing it in insurance

where cost cutting or price-cutting

is holding back earnings growth.

High petrol prices are in the

headlines at that time moment. Even

if that hits consumer demand here,

will the fact that Australia is a

net energy exporter continue to

net energy exporter continue to prop up the market. It does hurt at an

individual level, but for the

economy as a whole because we're a

net exporter the revenue is flowing

in, the government gets extra money,

so they're in a position to

potentially do tax cuts or other

things to ameliorate this. For the

individual it hurts but for the

economy it's a good thing because

economy it's a good thing because we export coal, gas and oil. Because

the Stock Exchange is so high, is

the Stock Exchange is so high, is it a place that investors should be

wary of at the moment or embrace it?

There are always risks, but when

you compare it to the alternatives

that are out there, house price

that are out there, house pricing,

the marginal dollar is no longer

going into housing. So money is

flowing into the share market.

Interest rates are relatively le

Interest rates are relatively le and the returns - the dividend cheques

you get in the mail from shares are

quit good. Sowoman paired to the

alternatives, the share market

alternatives, the share market still seem as reasonable place to put

seem as reasonable place to put your money. And you don't see it

money. And you don't see it turning down any time soon? Not in a big

sense. There are always days where

it is down a touch or up a touch,

but in terms of following the

economy agree over the next 18

months, that's what I think will

lap. HansKunnen, thanks for your

time. Pleasure. Briefly in other world news. Hundreds of people have been evacuated in El Salvador after the Ilamatepec volcano kicked into action.

It's been flinging rocks and ash more than a kilometre from its crater,

setting fire to houses and scrub. A replica of a Swedish 18th century frigate has set sail for China on a two year voyage aimed at promoting Swedish culture and business. The ship, Gothenburg,

is modelled on a merchant vessel that sank in 1745 as it arrived back in Sweden loaded with goods from Asia.

And a 16-year-old tightrope walker has created a new world record in China, walking over the heads of lions and tigers in Beijing. He achieved the feat walking backwards with eyes blindfolded along a 200 metre cable suspended 25 metres above the big cats.

The weather now. Cloud is forming across central Australia, extending into western Queensland.

There's cloud crossing Victoria and Tasmania. Mainly fine elsewhere.

A high in the Tasman is sending a ridge over NSW and Queensland bringing fine conditions. A front is crossing Victoria and Tasmania generating strong to galeforce winds. There's a deep low in the Bight, while a heat trough lies across inland WA. Showers in the Northern Territory.

Isolated showers in southern Victoria. Showers too in western, southern and central Tasmania. The forecasts - Sunny for Brisbane, Sydney and Canberra. Windy with showers in Melbourne and Hobart, becoming fine in Adelaide, a late shower in Perth, but mostly fine for Darwin. And a final check of the midday markets.

That's the news for now. There'll be more at 7 o'clock. I'm Andrew Robertson. Good afternoon. Captions by Captioning and Subtitling International.

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