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TV1 News - East Timor/APEC Special.

As leaders arrive in Auckland the killing continues in Dili.

EAST TIMOR.

Reports that piles of bodies are stacked up in police cells in Dili.

In last hour a report from a journalist in the UN compound says that the Compound is under a sustained seige she sounds scared . (odd since they are all supposed to have left.)

Five NZ soldiers and Wellington lawyer Andrew Ladley are staying in Dili.

Rare footage from the BBC (see earlier BBC and CNN media monitor) - Matt Frei reporting - "where have all the people gone".

Focus turns to New Zealand. Regional leaders gather.

In Washington President Clinton makes his strongest statement yet and announces suspension of all military ties.

PM Shipley follows suit and decides to cancel military ties.

Lloyd Axworthy - Canada - says other nations should also sever military ties.

Alexander Downer - Australia - "we are the air-bridge" decides not to.

President Clinton "this issue is obviously an important part of our discussions in New Zealand"

Indonesia is continuing to refuse to accept peace keepers.

Nobel Peace Prize recipient East Timor's Jose Ramos Horta arrives in Auckland determined to see the APEC community come down hard on Indonesia - talking genocide. Meets with Mrs Shipley. Mr Horta says Timor not trade should be discussed - "it would be immoral ", like being silent while witness to the Holocaust.

Linda Clark Live From APEC Media Centre: Officials say it can go two ways. It could be alright or alternatively Jakarta could implode. The diplomats here do not know which way it will go. Around here everybody says sanctions against Indonesia won't work but the business community are taking out their money and so it is having an effect anyway. People are slightly more optimistic. Someone said there is now a consensus for a broad coalition. We understand Kofi Annan is under pressure too.



APEC

Progress on trade:

AGRICULTURE: All countries have agreed to remove tariffs on agricultural products. Lockwood Smith - "this is a very significant step" - the US is the last country in the APEC left to agree to remove subsidies to agricultural exports. NZ Farmer however fears that the talk will not be converted to action.

CLINTON: President Clinton is on his way and so is his daughter.

Several other significant arrivals.

PHILLIPINES: Phillipines President Estrada is due in a few hours. The president has pulled out of his hotel the Park and moved to another the Heritage. This means 42 rooms have been cancelled and the hotel is not happy and wonders who pays. He has moved to the Heritage hotel where Indonesia was to have been housed. There is some discussion over who will pick up the tab for the move. No need for security at the spurned hotel now as no leader housed there now. Estrada was unhappy about being only leader in his hotel.

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