The Sydney Morning Herald from Sydney, New South Wales, Australia • Page 1

XII II II II I JRSTP nV Irfll flfI fpuf iMIflKgfiiiiiBg GOOD LIVING unco 4 4 unco 3 '-tiAIS IStS ItlWMB SEFIftXl Chan lb rked -1 i r- FKea fJh' J.Pv sick 4 s. i i' i i rr-- ge V. ID' for NG S.SV feO A p. 5 pol on grassroots proposals to reconcile Bougainville groups. Justice Warwick Andrew of the PNG National Court, who conducted the Sandline inquiry, said in his report that there was no credible evidence of corruption, bribery, or personal impropriety against Sir Julius, the Finance Minister, Mr Chris Haiveta, or the Minister for Defence, Mr Mathias Ijape.

All three stood aside in March after the military and civil revolt. However, both the sacked Defence Force Commander, Brigadier General Jerry Singi-rok, and Mr Haiveta came under criticism. The report found that: General Singirok was consistently a keen and enthusiastic supporter of the mercenary plan and must take responsibility for his part in the contract. When he blew the whistle on the Sandline contract, General Singirok appeared to be motivated solely by concern that his authority was being undermined and had produced no evidence to support his allegations of corruption against the ministers. Mr Haiveta's evidence was, in part, untrue, and suspicion hung over him in relation to insider trading in Bougainville Copper Ltd shares during February.

Mr Haiveta placed a lot of personal pressure on public servants and bank officers to make the initial payment of SUSI8 million to Sandline International, before the contract was even signed. Sir Julius said he expected Mr Haiveta and Mr Ijape to resume their positions immediately. General Singirok has not yet commented on Sir Julius's move. PAGE 9: Analysis. COLUMN 8 IT WAS COLD yesterday morning, early, wasn't it? Jim Gange, of Mosman, will concur.

Around 2 am, he woke up. He was standing outside his second-floor flat, he'd been sleep-walking, and thinks the click of the door lock must have awakened him. Was it cold? Well, he was wearing only his Union Jack boxer shorts. Yes, it was cold. NOT WISHING to disturb his neighbours, he went down to the street, found a phone and dialled 000.

Mosman police picked him up and took him to the station, from where he tried to find a locksmith. No luck, so he rang his brother-in-law, Matt Sandford, of Turramurra. Matt collected him and, in daylight, wearing Mart's oversize clothes, Jim went home to find a locksmith. Police advice: "Try doing it in summer next time." THE long-service leave of Apostrophe Man in North Queensland was spoilt when he saw a brochure from The Oasis resort. He sent it to us through David Moore, of Crows Nest: Let Cairn's newest Resort cast its' spell on you Twice in one sentence POSITIVELY the last word on "Come live with me and be my love" (Column 8, Saturday).

Marie Gray, of Earlwood, has a copy of Sir Walter Raleigh's The Nymph Reply to the shepherd's request, and a copy of Cecil Day Lewis's bitter, modern version, which suggests that whoever comes and lives with him will endure hunger and old age. The boy-meets-girl, boy-wants-girl troubles will go on forever. THREE Saturdays ago, "Tyrone" knocked at the door of Guy Brazendale, of Surry Hills, with his story of falling out with his girlfriend. Guy gave him $20 and walked him to the corner to point the way to Central Station so he could get home to Manly. "I felt his performance warranted some reward," says Guy.

"As I had been home all day, the sight of my local pub opposite proved too much and I popped in for a quick beer, and had a couple of TAB bets. My first bet, a $2 quinella on the trots, came in and paid $142. Many heartfelt thanks to Tyrone." ALAN Petschack, of Leich-hardt, is still shaking his head. He got into a bus in the city full of schoolgirls in uniform, just in time to hear one say: "Yes, she's shooting up every day now." His horror at the casual way it was said was tempered when the girl went on, "Yes, shell be taller than me soon." LEST WE FORGET. Kevin Ryan, of Wahroonga, has received his house and contents insurance renewal notice.

The house notice was issued at 7.31 am on April 25 and the contents at 8.01 am the same day. Surely they working that day? Naaah. By LUCY PALMER He'a'd CoesonCet in Pet Mo'esSy Papua New Guinea's Prime Minister. Sir Julius Chan. yes-terdjy announced hi return to office, just two week before national elections, after he was cleared by the inquiry into the Sandline mercenaries affair.

"There is no impediment, legal or otherwise, acting against ny resumption." he told a media conference. "There is no evidence whatsoever about any form of corruption that matter has now been disposed of." In a further assertion of his leadership. Sir Julius refused to rule out a continuation of the controversial $45 million contract with the London-based Sandline International aimed at wiping out pro-independence rebels on Bougainville. However, the Acting IVime Minister during the two-month inquiry. Mr John (iiheno.

said he had conflicting legal advice about whether Sir Julius could remain in office until the elections, although he did not directly challenge Sir Julius's decision. Mr (iiheno said he was not satisfied with the inquiry's report, and said that if it had been possible he would have convened another inquiry to look into additional aspects of the Sandline affair. "In the interests of gixnl government this must be done, but I think according to him (Sir Julius the report is finished, he hat been cleared and he would like to resume office." he said. Tension has flared agjin on the mineral rich island with the kidnapping of Mr John Momis, a local MP and former provincial premier, from an election meeting on Sunday by the Bougainville Revolutionary Arms. Sir Julius indicated that 'in pis i rrr i i t'-Zfr --rr miiiiiiiimi I 1i i jrnwar tt i Tf iir rn nr i -n i i i i i i A i'- 1 resounding election win which Page 8.

Photograph by reuter (RAQ in Macquarie Street and the adjacent Quay Apartments. A single tower would be built on the merged site and HKSH would transfer apartments from the contentious Bennelong Point site to the new development The company could then demolish the half-finished Quay building and replace it with a Continued Page 4 vl i r. in. urti ar i New French Prime Minister Mr Lionel Jospin waves to Socialist Party supporters after his leaves in doubt the future of both President Chirac and European monetary union. Full reports, THE SANDLINE SAGA Fab 22, 1997 Story breaks that PNG has hired Sandline international to provide mercenary soldiers.

Mar 17 Army commander Jerry Singirok demands PM Sir Julius Chan (rght) resign Mar 22 All mercenaries, bar Tim Spicer, leave PNG. Mar 24 Governor-General, Sir Wiwa Korowi, calls for Chan to step aside while mercenary deal investigated. Mar 25 Chan wms vote of confidence In Parliament Mar 2S Chan. Deputy PM Haiveta, and Defence Minister ijape step aside pending inquiry. Mar 27 Plane carrying arms for PNG everted to Tindal RAAr base.

Apr 1 Inquiry begins under Justice Andrew of National Court Apr 23 After appearing before inquiry, Cnan says no reason ne should not resume office May 7 Campaigning under way for June 14-28 elections May 29 Justice Andrew delivers report to Acting PM John Giheno, who stalls release and announces adoption of Barter peace plan for Bougainville May 31 Chan business associate meets Singirok to enlist support for Chan's return as PM iun 1 Bougainville MP John Momis captured by rebels Jan 2 Chan. Haiveta and Ijape resume; Chan releases 12page final report saying all exonerated the scuttling of the Sandline operation by an army revolt in March still rankled. "Once I commit myself to a thing I put my heart and soul into iL This is a very vexed question, it's something I've got to look into. It's quite serious and it's cost us a lot of money." The raising of a possible military solution by Sir Julius will cause dismay among PNG and regional leaders who last week hailed Mr Giheno's adoption of the peace plan formulated by the Local Government Minister. Mr Peter Barter, based numbers of taxpayers.

Mr Evans was asked by the Opposition Treasury spokesman. Senator Nick Sherry, to respond to a 1995 OECD report which suggested that tax incentives overall did not increase household saving, and that the net result for national saving "may be Mr Evans said the report was something that "could well have been written by When he said the scheme would not boost saving for many individuals and would work only "at the Senator Sherry hit back, saying the cost of S2 billion as a "very expensive Mr Evans responded: "That's a judgment." The Federal Government has promoted its savings rebate as a solution to address Australia's low national saving, which is behind the continued inexorable slide into foreign debt Asked the day after the Budget whether Treasury advice said the measure would boost national savings, Mr Costello declined to reveal Treasury's thinking. Mr Costello told Parliament: "What the Treasury policy is doesnl matter to the Government-" The Treasury set up a task force to assess the benefit of compulsory superannuation to national savings. While it produced precise estimates on the increase to saving from superannuation, Mr Evans said such modelling for the 15 per cent rebate was impossible. PAGE 25: Inflation fears dog interest rates.

Drop everything: hopes soar over new Quay compromise Treasury admits Costello savings plan may backfire By PAOLA TOTARO and ROBERT WAINWRIGHT A solution to the East Circular Quay controversy moved a step closer last night when the Hong Kong owner of Sydney's most hated building promised to reconsider its plans if asked to do so by the State Government. Earlier, the Premier's office reiterated Mr Carr's promise to Man arrested after threat to poison Nestle products the Los Angeles-based developer Mr David Brice. A spokeswoman for the chief executive of HKSH, Mr Pierre Boppe, told the Herald that senior executives met Mr Brice formally late last week but said she could not comment on the details. Ms Kate Kelly said a proposal had been outlined by Mr until a large ransom was paid. Police sources said tests on the yogurt found it had been contaminated with a common pesticide.

The dose would not have been enough to kill, the sources said, but would probably have caused severe illness. However, the strong odour probably would have discouraged consumption in any case. Media including The Sydney Morning Herald were briefed on the extortion threat on May 23, when police asked for a media blackout to help them catch the extortionist The Herald co-operated after police and Nestle said that they were confident public health would not be jeopardised by a media blackout Nestle's managing director, Mr Ern Pope, said last night: "It's been business as usual because there was no public risk." A man was expected to be charged late last night and to appear in a Melbourne court this morning for an extradition hearing. PAGE 4: Nestle leads rivals. Brice to the executives.

"If there is an initiative from the NSW Government asking us to reconsider any proposal then we would be obliged to consider it seriously." The Herald revealed yesterday that Mr Brice had brokered the $800 million "win, win, win" proposal, which would amalgamate the Royal Automobile Club Protest as uni approves fees The University of NSW's governing council voted last night to introduce fees of up to $100,000 for some undergraduate students from next year. More than 100 people gathered outside to protest PAGE 3: Full report. IOC wants toxi waste answers A report on the contamination of Homebush Bay with toxic dioxin is being sought from the State Government by an environment consultant working for the International Olympic Commission. PAGE 3: Full report. Liberal MP splits ranks on apology The Federal Government's representative on the National Reconciliation Council, Liberal MP Mr Peter Nugent, has put himself at odds with the Prime Minister by advocating an apology to Aborigines for the removal of children.

PAGE 5: Full report "drop everything" and talk to the developer, Hong Kong Shanghai Hotels (HKSH), if a compromise could be found that did not involve public money. Last night, the Minister for Urban Affairs, Mr Knowles, was trying to contact senior executives of HKSH to try to confirm details of an $800 million proposal by Mr Pope business as usual. anyone with family and friends who may have purchased this product on Thursday afternoon to contact them in case they may not be aware of this recall." This was the second call to Nestle from the extortionist The previous day, May 21, the extortionist made the initial contact telling the company where to find a product he had already contaminated to prove he was capable of carrying out the threat He said he would continue to contaminate Nestle products TOMORROW Sydney Fine. North-westerly to north-easterly winds with a maximum of 20. NSW: Showers clearing from the far North Coast.

Dry elsewhere. FULL DETAILS Page 23. LhbbJI mmmmmmtmm INSIDE Amusements Arts Bridge Business By PAUL CLCARY EconoT-s The federal Treasury has directly contradicted Government claims about its 1 5 per cent savings rebate, the centrepiece of last month's Budget, saying it may backfire and lead to lower national savings. The Government's most senior economic adviser. Mr Ted Lvans, revealed to a Senate committee vesterday that the Treasury had not been able to prove hether the $2 billion tat rebate achieved its goal of boosting national sav ings, and conceded that the net impact could easily be negative.

The Secretary to the Treasury has been outspoken supporter of the 15 per cent tax rebate, and wid yesterday its universality made it an equitable tax break. But when asked about the fine detail Mr Lvans was less certain. Asked whether the S2 billion cost to the Government could exceed any increase in saving by individuals. Mr Lvans told the committee: "Yes. there is that risk." He said this negative result "could be an outcome of certain approaches if they were not well and would only say the Government was taking "less of a risk" with its scheme than those introduced in other countries.

He answered "yes" when asked if the rebate could be obtained in full by taxpayers who had not increased their saving, or had reduced their savings in any given financial vear. and said it might trigger higher saving only by small Internet wwrnjiriLConua DELIVERY (07,92323300 KM 03U431S i trtTi By NATHAN VASS and ANDREW CLENNELL An extortion threat involving the contamination of Nestle food on supermarket shelves in Sydney culminated in the arrest of a Melbourne man at his home last night. Police from the NSW task force Operation Billiat and the Victorian special response group arrested the man, aged 33, after 13 days of uncertainty during which Nestle removed contaminated products from store shelves and issued a recall notice. At the height of the threat, on May 22, Nestle withdrew twin packs of 200g black cherry yogurt from Coles in the Eastgate Shopping Centre at Bondi Junction. The extortionist had contacted the company that day and said the product was contaminated.

By the time he called, some of the yogurt had been sold, prompting the recall notice, with the urgent call: "Any consumer who may have purchased this product should not consume it as it is not fit for consumption. We ask I (t aOms tymiOtf) OdftiiHt) Weather today 8 to 19- Eary frost patches. Fine, coo) to mild with high cloud increasing. Liverpool 5 to 19. Richmond 3 to 19.

Classified index 42 Mails, Shipping 38 PHONE Crosswords 23 Opinion 15 20-22 Features 11 Personal notices 33 Editorial ..9282 2822 12,13 Law notices 38 Sport 3842 Classified 38 Letters 14 Television 24 132535 25-31 $2 Lottery 6264 19 World 8-10 General. ...9282 2833 on trie Norm coast clearing. N-v Mainly dry in the south and west. Cool. am Sunset 4.54 pm.

Sunrise 6.53 770312631025 lift ee39 ipuwTTp fiv.