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(generated from captions) attacks, Saudi and Emirates

troops drive demonstrators out

of Bahrain's capital. And a

special report on the growing

religious intolerance in

Indonesia. In a rare appearance the Japanese emperor has revealed worried about the crisis that's followed the earthquake in the

Emperor Akihito appearing live h Ouyen and the tsunami.

on TV say he was praying for

his people. The emperor spoke tonight after technicians were forced to temporarily abandon

the quake crippled Fukushima

nuclear power plant after

braving radiation and fire.

The technicians have now

returned to resume the battle

to avert a broader nuclear

catastrophe. Here's Hayden Cooper. From the national

figurehead some a message of

sorrow. TRANSLATION:

Northern Japan was hit by Northern Japan was hit by an unprecedented massive magnitude 9.0 earthquake. I feel deep in my

my heart as I see the miserable

condition in the affected area.

As Japan mourns its loss,

Emperor Akihito gave a rare television address. He, too, was fearful of the nuclear crisis. TRANSLATION: I am

nuclear deeply concerned about the

nuclear situation because it is

unpredictable. With the help

of those involved, I hope

things will not get worse. No one seems to know exactly what

is happening in the Fukushima

Daiichi nuclear plant. What is

certain is that the level of

radiation was on the radiation was on the march

again today. A plume of what

appeared to be white smoke but was

was actually steam was seen

billowing from reactor 3. TRANSLATION: We are

thinking as the most likely

possibility, although this is

not yet confirmed, that the

of some parts of the smoke is the vapour coming out

vessel, just like what happened

to the Number 2 reactor. We

monitor the high radiation

level temporarily as the smoke had

had some radioactive material

stored in the container. It was enough to cause the plant

operator to order the workers

to leave. They were allowed

back in when radiation fell

later in the

fire again this morning just a

day after an explosion blew a

whole in the building housing

it. TRANSLATION: Our employee

who had been carrying a battery

to the master control room of

the fourth reactor spotted the fourth reactor spotted the

smoke coming out of the

north-west of the outer

housing. The most significant

because that fire took place in

a basically swimming pool like

structure where used highly

stored. That fuel is hot and

if you're not kept underwater

them water is going to then a

risk of a fire which already seen. That's also concerning. Four Australian

rescue workers came too close

for comfort when weather forced

their helicopter to land at

Fukushima Airport. Two suffered low-level

contamination on their shoes.

Tokyo's health conscious locals

are on edge too. Some are supplies, others are flooding stocking up on food and

the airport. Frequent new

tremors in the capital and

beyond only add to beyond only add to the anxiety.

Tokyo's not chaotic and there's

no sense of panic, but it is

clear that some of its people

are taking no chances. The

city's been told that radiation

levels in the area pose no

threat to human health, but

they higher than normal. Any

more bad nuclear news and the

nerves will be tested. Hayden Cooper, 'Lateline'. The ABC's

North Asia correspondent Mark

reporting on devastated seaside

communities where rescue

workers in some cases have only recently arrived. Today he

made his way to

before it was hit by a 10 metre

tsunami was home to 40,000

people many of whom are now missing. This is Ofunato, a

fishing town of about 40,000

people. When the tsunami

smashed into this place it was

10 metres high and travelling

came from behind me and at 60 kilometres an hour.

destroyed everything in its

path, houses, cars, people's

lives. We'll take a look over

here. I'll pop under these

powerlines, they're not live.

Oh. As you can see, if we Oh. As you can see, if

swing around, there are cars

propped up over here, there's a

house that's been pushed down this channel hundreds and

hundreds and hundreds of

metres. Everything, household

items, sinks, doors, items, sinks, doors, if we

swing over here you can see the second floor of the local

supermarket which has been pushed hundreds of metres

inland. The death toll here in

its thousands, we don't know

least six exact figures. We know at

out of here yesterday. Bodies. least six people were pulled

No one has been found alive.

There are US and British teams

here. We've spoken to some

from Los Angeles who haves

experience in Haiti and the

recent Christchurch earthquake.

There are still many people

missing, as I say , among them

local 30 elderly people from the

not expected to be found alive. Security forces in

Bahrain have used tear gas and

tanks to crackdown on anti-government protesters in

the capital Manama. Groups of

mostly Shia demonstrators have

been calling for political and

economic form but the arrival

of foreign troops from Saudi

Arabia has given the King the

military boost he need add head of declaring martial law. Ben Knight reports for

'Lateline'. Hundreds of riot protesters firing buck shot and police descended on the

tear gas and pushing the

demonstrators out of the city

centre. The protesters, who

are mostly Shi'ite

have been camped in the city's

pearl round about for a month

calling for political reform

from Bahrain's Sunni rulers. They've released pressure from

local security forces but an

the arrival on Monday of 1000 Saudi troops in Saudi troops in armoured vehicles and police from the Emirates led to this violent

crackdown. One woman who took

part in the protest start spoke

to 'Lateline'. We just stood there in front of there in front of them and we

all had flowers. One guy was

calling to them we are brothers, how can you brothers. Have you guns and brothers, how can you kill your

we don't have anything but

flowers. Suddenly we saw the riot police coming from the other direction and they just

ran towards us and they didn't care that we had flowers or

anything. They just started

shooting straight way. With the backing of foreign Bahrain's King has today

declared a 3 month state of emergency. State-run

television announced that the Bahraini army was taking measures to restore order while

the King was busy discussing

the crisis with Bahrain's

neighbours in the

Gulf. TRANSLATION: This

behaviour will not go

unpunished. I call on all

citizens and residents to be calm. Opposition groups in

Bahrain have condemned the

arrival of foreign troops

arrival of foreign troops as an

occupation. TRANSLATION: We

consider the crossing of any

tank, military or not, into

Bahrain a disgraceful

occupation. But there's

another more worrying element

to the arrival of foreign

forces. The vast majority of

protesters in Bahrain are

Shi'ite Muslims who say they've been discriminated against and

repressed by the country's

Sunni ruling elite. I feel very

sad that we have to live through this

that our only demand is what is

rightfully ours, our country,

our only demand is to have a

democracy to have a leader that represents us represents us and does what's

in our interests, the people's

interests, not his own family's interests. The idea that a

popular Shi'ite rebellion would

overthrew a Sunni government is

making other Sunni regimes in

the region extremely nervous,

especially next core in sab

raud. To them it is opening the tore

the Shi'ite regime of Iran.

The Iranians are not at all

impressed with the Saudi show of force in

Bahrain. TRANSLATION: We do

not generally approve of the

military of other countries

interfering in the Gulf region.

This kind of interference will not resolve anything. Bahrain

is home to the United States's

fifth fleet and is a close

American ally. The White House

has stopped short of has stopped short of calling

for the Saudi troops Bahrain. The US Secretary of

State is encouraging restraint

on all sides. The use of force

and violence from any source

will only worsen the situation and create a much more

difficult environment in which

to arrive at a political

solution. But any chance of

peaceful negotiation a now be

gone. A struggle by rebel

fighters to survive is

continuing in Libya and

resurgent Gaddafi forces is far

from over. The Libyan army has

been shelling and bombing the

edges of one of the last rebel

strongholds in eastern

town of Adjabiya. An ABC crew

is on the ground as an

artillery battle enveloped the

town which isn't main road to

rebel headquarters Benghazi.

Tim Palmer sent this report

from Adjabiya. Morning found

the rebels dug in at the gates to Adjabiya. Still confident

of victory, they peer across

the desert looking for

Gaddafi's frontline troops.

This man says it is only the threat from the air that

worries him. They take the

time to service the

antiaircraft guns. They'd need

them soon enough. Just a

couple of minutes after we

pulled back from their

positions, a Libyan Air Force

jet struck. Keep it rolling, rich. Over here.

Well, just a few seconds after we left, an antiaircraft

position just over there,

they've dropped a bomb probably

200 metres from it. After we'd

pulled back, the sand storm

that was up this morning cleared and that's given the Libyan pilots the visibility

they need to target these positions which are right at

the gates of Adjabiya. There

were more organised professional troops among the

rebels here. They told us they

held the tanks of Gaddafi

loyalists. We have better

forces than Gaddafi. We think

we can take it if it is a fight

on the ground. We're worried about the aircraft, not the tanks. As tanks. As he spoke, there was a

plane circling overhead, way out of range of the rebel's

antiaircraft guns. Pretty

soon, shells began landing. At

first 8 kilometres away and

then the Gaddafi loyalist

artillery ranged closer and

closer. Their target close to

us on the edge of Adjabiya.

no time, a heavy artillery

battle was under way. pretty clear in the last few

hours this conflict around Adjabiya has changed

altogether. Those are rockets

fired by the rebel army off

towards the pro-Gaddafi forces

which must have out flanked

Brega because their shells are

landing four kilometres from

here and this is in the middle of this city. It is pretty clear that the battle of

Adjabiya has re gun. Suddenly

the Gaddafi army shells were landing less than had I kilometre kilometre away. Among the rebel positions we'd filmed

earlier. There was a chaotic

stream away from the explosions

and deeper into a city of

around 200,000 people that's

the last hold out of the rebels

before Benghazi up and holds

the keys to the road as cross the desert that that city from both sides. The

rebels say they'll make a stand

here. For now the tide of here. For now the tide of the

battle is running the other

way. Just before the last parliamentary session, Julia Gillard delivered a landmark

speech in Melbourne comparing

her Government's reforms to

those of the Hawke-Keating

years. Parliament resumes

again next week and tonight the

Prime Minister's been speak ing

inher home town of Adelaide

distancing herself from her the Greens. Here's

'Lateline''s political

correspondent Tom

Iggulden. Labor's National

Secretary, Carl bit tar, quit

today. He's done a good job

in what have been sometimes very difficult

circumstances. He was the

architect of Labor's architect of Labor's last

election campaign, one fought

largely on the defensive and

which delivered Julia Gillard minority

minority government. Her

forced alliance with the Greens

has proved politically damaging early if in her term as she acknowledged in a speech this

evening. If I had been

leading a majority government I

would have been getting on with an an emissions trading scheme as I promised the Australian

people. Tonight in an

unprecedented move for an

alliance that's been mostly

peaceful, she turned on the

party that she says forced her

into that backflip. The

Greens are not a party of government and have no

tradition of striking the balance required to deliver major reform. Like the economic transformation of the

1980s, this is a reform that

can only be handled in the progressive Labor tradition. And the Prime Minister didn't stop there.

Your name is not Julia. Taking

on media pundits who questioned

the need for a carbon tax by

laying out the science of

climate change. The scientific

consensus is stronger than

ever. Given these ask who would I rather have on

my side. Alan Jones, Piers Akerman and Andrew Bolt or the CSIRO, the Australian Academy

of Science, the Bureau of

Meteorology, NASA, the US national atmospheric

administration and every

receipt put be climb scientist

in the world. This the new real

July were one prepared to be

drawn into public stoushes with her detractors and prepared to

paint your partners as dreamers

unacquainted with the burdens

of real power. The Prime

Minister may soon have an

international critic to add to

the domestic ones. China's

expected to raise a protest

about a visit to Parliament

next week by the exiled leader

of a Muslim ethnic minority in China.

A. The Wegas want autonomy

guaranteed to them under a

Chinese federation. They are quite a their own culture. His last

visit two years ago became a

flashpoint in relations between

Canberra and Beijing where she's considered an enemy of

the state on par with the Dalai

Lama. Her visit is being

organised by a government

MP. She will be here to talk

about the tanks of we ga cult

yr under the current

circumstances where China has a towards political dissent and

human rights. The timing is

sensitive with China in the

midst in a crackdown for

dissent. Following calls for

a Jasmine revolution against the government inn spiesed by

the uprising in the Arab world.

At the head of the program

serious questions have been

raised about how transparent the Japanese Government and

have been in releasing detailed

information about the crisis. To discuss the ongoing crisis

in Japan and the crisis in

Libya we're joined in Brisbane by the Foreign Minister Kevin

Rudd. Thanks for having me on

the program. Are you aware of international concerns about

the nature of the information

being released by the Japanese

Government? Certainly have

been a number of reports in the

public domain. Of course they

in part reflect some of the

history concerning TEPCO, the Japanese electricity company,

going back I think to 2004.

The key question here is how

can we best be confident of the

data which has been provided

now. I think the key factor

here, Tony, is that the data

coming out of Japan is,

firstly, being scrutinised by the United

the United States nuclear

regulatory commission, the NRC.

In fact, there are 11, In fact, there are 11, as I'm advised, NRC officials embedded

within the Japanese nuclear

agencies. On top of that, the IAEA is monitoring data

comes out and then you've got

national agencies, including

our own, the Australian

radiation protection and

nuclear safety authority,

analysing that data as well. Have all these

international experts you're

talking about been sent in recently to monitor

transparency? Firstly, on the question of the NRC, my advice

is they went in recently. The

IEAE is in the process of

sending in a team. If you look at the public at the public statements by the

NRC, the nuclear regulatory

commission of the United States, they've said public

that the responses so far by

the Japanese Government have

been consistent with what the

United States would have done

in similar circumstances. Similarly in terms of the

health results, I'm advised that the actions and warnings given

given by the Japanese Government, the world health

organisation has indicated

they're consistent with what

they would do under similar

circumstances. We in

Australia, we always our own appropriate national

restraint and we separately analyse this data as well,

which is why the Australian radiation protection and

nuclear safety authority every

hour of every day, 24 hours a

day is analysing every jot of data that comes out of Tokyo

and then consulting with the

national and international regulatory authorities derive their own conclusions. Just a short time ago another international

authority, the EU he energy Commissioner, said the

situation in Japan was out of

control and that the amount of

information coming from the

Japanese Government was

insufficient. I haven't seen

those reports and there have

been a lot of reports from

various spokesmen, governmental

and non-governmental, in the

last several days. What's our responsibility as the

Australian Government? One, to be informed be informed and advised by our own highly professional

Australian radiation protection and nuclear safety authority,

as well as being inform by the international International

Atomic Energy Agency as well

and the Americans. That is our

most solid basis for

proceeding. Look, there's a

lot of debate about the

reliability of data. Our

agencies are doing a good job

on this. We are reliant on

their advice. Only on Sunday

you demanded you demanded from the Japanese

Foreign Minister urgent

briefings to Australia and in

fact the rest of the international community about

the precise status of these

reactors. Why did you think

that was necessary to make that

demand? Because on day one and

day two of this nuclear event or series of events, it was plain from the Australian

radiation protection and

nuclear safety agency of this country that we were getting

conflicting conclusions, that

is, from our analysts, about

what was emerging in what was emerging in Japan.

Secondly, I'm also aware of the

historical data in terms of the

events I referred to with TEPCO back in 2004. You mean a history of non-transparency. In

the case of TEPCO, 2004 TEPCO owns the Fukushima

nuclear plant and in 2004 there

was an incident concerning

non-transparency. Let's be

frank about that. It is well documented. I documented. I won't pretend it doesn't exist. That's the

first point. The second is

there are a range of international reports which, as

you have said, have reflected adversely on the historical transparency of the Japanese Government on these matters. I

don't make any particular

comment on that. Thirdly, on day one I sat and I the Australian radiation

protection and nuclear safety

agency and we were getting conflicting Therefore, if you have an opportunity with opportunity with the Foreign

Minister of Japan, given that

he is obviously speaking to foreign ministers from around

the world, to register our

explicit concern, because we

have 11,000 plus Australians in

that country and a number of

Australians in adjoining countries, then it opportunity to say to my

colleague we understand the

pressures you're going through,

we'll provide you with any

support that you need,

including our own nuclear

experts as well, but I would

request of you, as a colleague,

that this information be

provided on a cooperative basis

both to the Australian

authorities and the IAEA on a

continuing basis. I note the

following day that there was an

open press conference for the

first time in

crisis where the Japanese brought in the international

media and began explaining what

they thought was going on and

to be fair to them, it is a

highly fluid situation. Yes. One of the things that's been

puzzling nuclear experts is how the pools that are meant to

contain water to keep cool the

spent fuel reactors and spent fuel reactors and indeed

other reactors that have been taken taken out of the reactors that

were shut down for maintenance,

how those pools of water were allowed to

that the fuel rods, very

dangerously, have been exposed.

Do we know the answer to that

yet. I have no technical answer

to that question as I've been advised. You're right, however,

however, to point to a generic

concern which is why we the Australian Government and the Prime Minister reflected this

in her comments today, remain concerned about the unfolding

nuclear incident at Fukushima.

We have officials working

around the clock on every ounce of data. You specifically to let's call them

the cooling ponds for spent

nuclear rods. These have

become into particular focus in

the reactor units I think 4, 5

and 6 of the overall facility.

Those were shut down for

maintenance we're advised at

the time the earthquake and

associated tsunami struck. But

we've now had a fire and

possibly a repeat fire

but which had these cooling

ponds which had spent fuel rods

in them. What does that mean

in layman's language? The in layman's language? The rods

have been used, however, within

them they contain elements of

nuclear material, not as active

as active fuel rods that we

have in units 1, 2 and 3, but

nonetheless capable of emitting

radiation. That obviously has

been a source of concern to the

Australian nuclear regulatory authorities and those around

the world. You did issue a new

travel advisory today to

Australians in Japan and

Australians who might even be

considering going to Japan.

First of all, briefly set out

what it is you're saying. Are

you saying leave if you don't

have to be there, leave the

country? What we have aid in

the travel advisory is this.

If you're in Tokyo or any of

the affected Prefectures and

we've nominated 8, we're not

restricted to that, we're saying you

the reason we're saying that is because we have received

multiple reports from the

embassy and elsewhere in Tokyo

that when it that when it comes to the state of the electricity supply

industry, the state of water

supply, the impact on road

transport, the interruptions to

train transport, schools being closed, and of course the

continued manifestation of aftershocks,

aftershocks, unless it is essential

essential you be there, we're saying you should

consider going. Can I interrupt you there. Are you specifically suggesting because you're making you're making it the possibility available for embassy staff, for example, embassy staff, for example, to send their children and

families out of the country. Are you suggesting it could be

dangerous for children because obviously children don't need

to be in Tokyo or any of those

Prefectures? I mean exactly what I just said what I just said before, Tony, which is for all Australians,

all Australians in Tokyo and

those eight affected

Prefectures, unless it is

essential that you personally

be in Tokyo and those affected

Prefectures, our advice is that

you should consider departure. That applies to Australians working in the broad business

community, the social sector,

education sector or whatever,

as well as to our embassy staff

to whom we're providing the

same opportunity. The embassy

by definition is in Tokyo. The French citizens to leave. Could it

get to that point? If a

radiation cloud is heading to Tokyo could you end up

suggesting all Australians

leave. I know it is an extreme

suggestion, but the French have

already gone there. If you

did, how would they get out?

Firstly, with due deference to

the French, let me make two

points: in the last 24, 48, 72

hours the French embassy in

Tokyo has issued two sets of directives to French citizens

in Japan only to have them

repudiated subsequently by the French Foreign Ministry French Foreign Ministry in

Paris. What we seek to do on

this matter is to liaise

closely with the United States,

United Kingdom, Canada tan New

Zealand. We're workshoping

this hour by hour, sometimes

minute by minute, with our

colleagues in those countries.

That's what we do. You raised

a second part of your question concerning contingency

planning. It would be wise

every government, including our

own, to be continuing in our

analysis of the information from

from the nuclear

calibrating that into our travel advisories to the

Australian public and making

all appropriate contingency planning so that we've got planning so that we've got the

resources available to act

against anything in the future

which may happen. That's what we're seeking to do. That is the responsible course of action on the part of the

government. Quickly to another

crisis, Libya.

forces move towards the major

rebel stronghold of Benghazi,

are you worried there could be a bloodbath there? a bloodbath there? The time is

run actually running out for

the West to act. Yes. So what

should happen immediately? Well, my position and the Government's position and the Prime Minister's position has been

been consistent on this since

25 February. That is, that measure which is next available to the international community

is to impose a no-fly zone.

The Arab League met on Saturday

and I've spoken to many of their foreign ministers about

the important of them sending a clear signal to the international community that

they the surrounding Arab

countries wanted this for their

fellow arabs in Libya. They

did that and God on them for

doing it. We had a

disappointing result from the

G8 at their meeting in Paris where they've fallen short of

calling on the UN Security

Council to do that. Our policy is very clear: we continue to

call on the UN Security Council

to respond positively to the position taken by the Arab

League in support of the a

no-fly zone. In your report

just before, I came into this

interview with you, you had an

opposition military commander

saying that his problem was not

the face to face against the ground forces

that's a matter for debate in

terms of the relevant fire

power which they each have, but

he made the explicit point

about the fact about the fact that Gaddafi has the support of the Libyan Air

Force and based on our information also, Libyan reconnaissance aircraft which

can support the ground

operations. If he's saying

that, the Arab League is saying

that, our policy as an Australian government reason

forces that and we call again

on the UN Security Council to

support this call by the Arab League. Do you know if Gaddafi

possesses chemical or

biological weapons? The advice

on that I am unclear on. If I was in a better position to advise you I would. But I

don't wish to mislead you. Are

there circumstances in which

you would advocate stronger

action, stronger in fact than a

no-fly zone, invoking the UN

doctrine of a responsibility to

protect, particularly, if there

ends up being a ends up being a bloodbath in

Benghazi? What is interesting

in this entire debate and that when the UN Security

Council a couple of weeks ago

put outfits first joint

statement, again at that time steeld by the Arab

the first time that I can

recall, and maybe others can

recall some other examples. UN

Security Council invoked the doctrine of the responsibility

to protect. What is that? The

UN charter classically has been

interpreting as meaning you

invoke international law to

defend one station against at dretiongy other state. responsibility to protect is the UN Security Council

exacting in defence of the

indigenous population of one country if they're being

brutalised by their own regime.

The UN Security Council put

that in their first statement.

He referred the Libyan regime

to the UN criminal court.

Myself and the Prime Minister

have constantly said all other

options should remain on the table

obvious other options if things

get worse, including using aircraft to attack ground

forces to attack Gaddafi a

tanks, artillery, tanks, artillery, to take away his potential for destroying Benghazi. That's of course a matter for matter for the UN Security

Council. Let me tell you the

step which lies ahead of us now

is for a no-fly zone. If we're

seeing a few people go weak at

the knees on this one, in the G8, given meeting in Paris the other night, we may have some

problems ahead. My overriding

principle is this, Tony, and

that of the Government's, let's

look at the UN, look back to

Rwanda, fail, look back at dar

fur, fail, look back at the

Balkans, partial fail, too late

really. And the rest. It's

2011. I would have hoped the

international community would

learn from history because in a month's time, two three months time, if for

whatever reason Gaddafi begins

to prevail and we see the large

Carl butchery of Libyan civilians, I'm deeply concerned

how the international community

will reflect on itself. And

then plain itself to the Arab

countries of the Middle East

who have called for this

action. We're out of time I'm frayed.

frayed. There's a lot more

debate on those issues. We'll

have to leave you there. Thanks very much for joining program.

Religious intolerance and

violence is on the rise in

Indonesia. Hardline Muslims

are spers cuting members of a

Islamic sect with backing.

Military and police intelligence officers planning with Muslim clerics to take

over mosques belonging to sect. Last night three parcel

bombs were sent to different

locations in Jakarta seriously

wounding a police officer in

what were thought to be separate acts of religion

tolerance. Matt Brown reports from

What began as low-level

harassment exploded recently

into a full-scale lynching by

Muslim mob. The violence is

aimed at members of a small

Muslim sect, but it's raising big questions about Indonesia's

reputation as a tolerant plural

list place. Had the state

been strong enough and

functioned the way it's

supposed to function, I don't think that this so-called

radicalism will Esperance escal escalate. They have enraged

hardline Muslims because they

believe a 19th century Indian

man was a Muslim Messiah. This

attack last month claimed the

lives of three sect members.

TRANSLATION: We are human.

Some time when I really think

about t I really want to run as

fast as I can, but I don't know where to where to run. The persecution

has a form of official backing.

The Muslim vigilant tease say

they're simply enforcing a 2008 government decree which bans

them from spreading their beliefs. TRANSLATION: I can't

accept this. The pain, the

sadness, I'm suffocated. sadness, I'm suffocated. I

can't express it verbally or

non-verbally. I can't accept

my son died like that. The

criticised because the police

usually do nothing to intervene

until it's too late. Amidst

the escalating persecution

attention was focused on presidential palace and the

leadership of Susilo Bambang Yudhoyono. What we need is a

strong word from President

Yudhoyono to say that this

isn't right. While the President's condemned the

violence, he's also urged

to obey the ban on prosz advertising. A slew of

regional governments are gone

all the way, banning the all the way, banning the group altogether. In this exclusive

ABC footage members of

Indonesia's peak Islamic body

can be seen planning with

military and police intelligence officers to take

over a mosque south-west of

Jakarta. I believe there will

be resistance in some areas, but trying. We'll continue to

convince them. The first attempt

attempt was repelled with words

and argument. But the

potential for ongoing conflict

remains high. On a separate

front, a high-profile moderate

Muslim commentator was targeted

by a parcel bomb in Jakarta

yesterday. When local chief

detective handle the device, it blew off his left

hand. TRANSLATION: What these few people did, terrorising

humanity will not stop

fighting for peace and human rights in this country. As

police searched for clues, another bomb was discovered at

the drug squad. It was

addressed to the chief who is a Christian with a long track

record in counter-terrorism. A

similar bomb was received by

the leader of a youth group

whose mother is Jewish. Brown, 'Lateline'. A quick look

at the weketeder now. A few

showers in Sydney, Melbourne, Brisbane

Brisbane and Canberra, a

possible afternoon storm in the

hills for Perth,

showers and storms in Darwin,

high cloud for Adelaide but

mainly fine in Hobart. That's

all from us. If you'd like to

look back at tonight's interview with Kevin Rudd or

review any 'Lateline' stories

or transcript visit our

website. You can also follow

us on Twitter and Facebook.

night. Good night. Closed Captions by CSI. This Program is Captioned

Live Good evening, welcome to

Lateline Business. I'm Ticky

Fullerton. Tonight - we talk to about the implications for

Europe of the nuclear crisis in Japan. The European comminger

in for energy decided there are

stress tests for the 143 nuclear plantses in Europe.

The Japanese stockmarketal

lease but damage to

manufacturing is expected to hit Australian car dealers. In

those Japanese motor vehicle

manufacturers lose their market

in Australia, it will take them

years and years to get that

market back. And a new wave

raising funds while spreading the risk. The covered bond finds favour with the

Government and the banks. It is an important move towards

making sure that Australian

banks are able to get banks are able to get reliable and the cheapest money

available and that obviously

flows to what we need to charge

customers. To the markets,

Australian shares clawed back a

little of the losses suffered

over the last five days. The

All Ordinaries was up three

quarters of a per cent. ASX:

As Japan struggles with the humanitarian and nuclear

disaster it is face challenges

on norn fronts. Manufacturing has been brought to a standstill are many plants shut

down due to power outages and infrastructure breakdowns.

Only a few companies have sustained manage to plants and

factories because they lie out

of the worst hit area the Sendai

Sendai region. There's no

doubt the supply chain will be

interrupted and Australian

dealers of Japanese cars are already calling for assistance.

Here's Emily Stewart. Japan is known as the world, with millions of its

electronic goods, cars and

trucks sold in Australia every

year. To gauge the impact of the disaster on production, the

ABC contacted a number of Japanese companies. They said

they've had minimal damage to

plants and factories as many

are based in the south of Japan with headquarters in Tokyo, Osaka or Hamamatsu. David

Ackery from Harvey Norman says

he's been in touch regularly

with his suppliers which

include Panasonic, Sony and Fuji and he predicts there

won't be a flow-on effect for

Australian retailers. What's

emerged over the last couple of

days has been that there days has been that there won't

be any great effect on the stock or the manufacturing

because in fact most of that

has gone offshore in the last few years. However, technology

research company, IHS iSuppli

says it is the electronic

components that will cause the

most problems because they're

largely still manufactured in

Japan. It is predicting there

will be a components from as early as

late March and this could slow

down production of the end product. When contacted

directly, Sony says its shut

down 8

through the effects of the

earthquake on the Australian

consumer market. Panasonic has

shut down production but says

customers won't notice any

changes. Meanwhile, Sharp's

factories are working as usual.

Exports say this there ill be

challenges for Japanese

companies in the future. These

include power outages caused by the damage to nuclear power plant, infrastructure

challenges because of damaged

roads and bridges, supply chain

problems such a lack of raw

materials and difficulty in physically getting physically getting employees to the workplace. Shipping will

be difficult with ports in the

north destroyed and hold ups at

other ports that were half

unloaded when the earthquake

struck. Customers in Australia

may feel the effects more

deeply in the car industry.

Australia imports more than a

third of new cars from Japan. All Japanese car companies have

shut down production for at

least three days and concerned about suppliers in

the Sendai area. Nissan has

sustained damage to several

plants. The greater impact will be the transportation and

logistics, pars suppliers undoubtedly have been tremendously affected also. tremendously affected also. It

is just way too early to say

what impact it's directly going to have on us Australia. Toyota

is expected get back loin today

but the shut down will result

in a loss down of 40,000 ups.

Honda will suspend production

until next week which will mean a loss

a loss of 16,000 weeks. Suzuki, Mazda and Mitsubishi

haven't sustained any major

damage but have raised concerns about shortages of components

such as steel plates and brake parts. The Australian Motor

Traders Association says the

slow down could affect 20,000 local jobs and it is urging the

Federal Government to consider tax breaks for dealers. If those Japanese motor vehicle

manufacturers lose their market

in Australia it will take them

years and years to get that

market back and their industry

is going to be crippled for

decade s because

the nuclear power crisis

continuing it is hikely to be a

difficult road ahead for many

Japanese businesses. Still on

the subject of trade and the subject of trade and Europe Trade Commissioner Karen de

Gucht was in Sydney today

meeting with Trade Minister.

Craig Emerson. Welcome to the

program. Thank you. Let me

start with Japan. Europe's energy Commissioner has described Japan's nuclear

disaster as apocalyptic. Do

you think there's change appetite for nuclear in

Europe. Angela Merkel already

decided to postpone the

decision on keeping the nuclear

plants open for a longer

time. She's under a lot of

political pressure. She's

under a lot of pressure. That will surface in many European countries and the European Commissioner For Energy, Mr

Atunga, has decided there would

be express tests for the 143 nuclear plants in Europe and much will depend

of those express tests. Certain also going to reopen

the debate. What sort of impact

could this have on demand for

Australian uranium from Europe?

There are a lot of nuclear

plants in Europe, so they're

not going to disappear from

today to tomorrow by the way it

would make a lot of problems

with respect to with respect to energy

production. My country, for

example, 60 per cent of the

energy production is out of

nuclear energy. Today, you met with our Trade Minister Craig

Emerson. You spoke about

concerns of raw materials supply. I assume that means

things like Russia with gas,

bell Roozendaal and also China

and lot rare earths What progress have you made

there? We had a very good discussion on raw materials

because as you know Europe is

the biggest economy in the

world, but on the other hand we

have very, very few raw

materials. It really depends

on imports for us having a

level playing field for all raw

materials is essentially. You

nentioned China and Russia and

we are of the

should have a discussion on the global problems of raw

materials at the level of the

G20 and presently Australia and European Union are

common paper for the G20

meeting which is to be held

later on in France. We've also

got Doha. Do you believe that

some form of multilateral

agreement can be achieved?

We've still got quantitative

easing in the US. We've still got currency got currency wars,

protectionism everywhere. Can anything happen with

Doha. You're giving the right reasons why it should happen

because we have to combat

protectionism. The about the mechanism to

discipline countries. We have

a dispute settlement mechanism and one of the most and one of the most important

reasons we should really make

the deal is that we should not allow the WT O to unravel. It

has been going for 10 years.

If something doesn't happen

this year people will walk from the deal. That's the

risk. We have to get to a deal by the summer time. I believe

it is possible. The idea we

would need more years to

discuss what we need is a

political will to make a deal. What we need is a genuine give and take by all the main stakeholders. Europe is

prepared to do so, but we cannot do that

alone. Underpinning Europe's

trade position is of course its

economy and the issue of

sovereign debt. There's a new

budget that the ECB has already called insufficient and my understanding is that stability facility of $440

billion euros can buy bonds but

not in the secondary market.

They can only buy bonds from countries that have actually

been part of a bailout; so not

Portugal. Can these sortses of

developments really fix

Europe's problems? What we have in deciding recently, that

will be official by next week,

is that we would move from a

temporary system to a permanent

system whereby the actual

lending capacity of the fund would be 500 million euros.

First of all, it is a fund that

is giving guarantees to lend

money to the countries that

need it and what you have also decided which is quite new we

could buy bonds on the primary

market which is in fact

something completely new in the

system and is not essentially.

What the essential thing is you

can give the

are necessary to make sure that

countries that get into difficulty can nevertheless

lend the money they need to

make their optimistic about these initiatives? I'm not only

optimistic, I'm quite sure that

there's no risk at all for the

euro. I know in your country

some people doubt about that,

but this is in vain. The euro

will be there for the next of

our lifetime. I hope it will

be fairly long. Are you doing

anything and talking to our

Trade Minister about business

to business relations between Europe and Australia? Yes. the way, Europe, together with

ASEAN, will organise a business

summit at the beginning of May

in Jakarta in in Jakarta in the margins of the ministerial meeting where

also your country will be present, so we give a big

priority to that. Also with

respect to raw materials, by the

the way, we want to establish

let's say the general framework

where it is up to the companies

concerned to make the deals

they think are useful. That

would be a forum for businesses

to get together. Of course. I

can't let you can't let you go without

talking to about our carbon

trading which is back on the

table. Presumably, would you

welcome this coming in

Australia? We have no carbon

tax in Europe. What we have is

a carbon trading system, in fact,

fact, and we would prefer that other

other countries go in the same

direction, yes, but it is of

course up to Australia to make

up their mind and take the

decision they think most useful

for them. Are there any lessons

to be learned from Europe? It is a system that works and it

will work better if more countries adhere

countries adhere to it because

that will establish a market

and what you need for this trading system trading system is of course a proper market. Thank you very

much for joining us today,