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NZ Shrinks - EAST TIMOR (Extended Coverage) - Statement From Dr Bottrill - Jailed! For Art

NZ SHRINKS: Economy Shrinks: After three quarters of growth the economy has shrunk by 0.3%. ANZ economic forecaster says it is proving hard to sell exports even though overseas economy's are picking up. Good news low interest rates. Bill English says it is fine. Opposition says it proves the government is a failure. Kiwi dollar has dropped a cent against the AUS and half a cent against the US - long and short ends of the curve both down (=bonds rally).


At mass refugees return to Dili. Gunmen open up nearby - sending everybody running. Gurkhas in action fail to find the gunmen. Later another incident. - a patrol is spooked by three trucks of armed men. In the shooting a press compound is evacuated nearby. Three lorry loads of soldiers coming. Militia with guns ."Way too much for us to cope with" reports Gurkha commander.

The Force Commander recommends the acceleration of deployment - Mgen Cosgrove clip..

LIVE CROSS: Colonel Dunne - Live from Dili - Ranking NZ Officer

Q: Should you be mounting more street patrols?

A: The level of patrolling has increased and is continuing to increase. We were damned if we did and damned if we didn't get into this place. We are here doing the job and. I think some of the footage was not fair in how it portrayed an incident - (probably the shot of an APC nearly running over some Aussies.)

Someone had to get in here and conduct this operation. As time goes on more and more people will join it. As every hour goes by the forces are growing in confidence. We beleive we have the skills and wherewithall to deal with the situation. (Helicopter noise interrupts)

General Cosgrove has made it clear he could do with more people as soon as possible. As far as NZers are concerned I will make an assessment on whether the NZ company should come in here and report to my superiors. Philippines forces are also here now.

JAKARTA: Angry scenes turn to violence. Police fire shots in air and then towards the crowd. Critics of the new law say the Military is trying to take too much power - General Wiranto replies - in Indonesian - this is not for the sake of the military police or parliament it is to secure the country for all of us. - Commentary: Wider powers are being sought to hold this huge wretched country together. More violence like this could see the law brought into practice.

DARWIN: Announcer - reading from note - "the SAS about to move into Bacau but the Army won't confirm that". John Stewart live from Darwin Q: Is the company ready to move in. A: No the company is not ready yet to move in. They have to acclimatise first. They have to get used to the climate. They won't go in till Wednesday at the earliest. And the troops will not go in if the lack of artillery - in transit - is a matter which raises concern for their safety. David Wimhurst has just headed back to Dili. Ian Martin is in New York receiving instructions. They have done a reconnaissance flight in the hills to the west and it is not a good look. I asked someone about the behaviour of journalists over there…he said.

Australian Officer Clip: - it has been made clear that it is a dangerous place and if the risk their lives they risk the effectiveness of the force to do its job of bringing relief to the people

CANCER INQUIRY: Dr Bottril has released a statement saying he is "deeply concerned" - "I will provide the Ministerial inquiry with as much assistance as is required".

JAILED! Fourteen years - maximum - jail term for art thief who damaged a Tissot. He had lots of previous.

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