Good evening, Angela Pearman with the latest news. America's tough talk of war against
Iraq appears to have paid off. President Saddam Hussein today proposed releasing all foreign
hostages as long as Iraq is guaranteed against attack.
Iraq's parliament is looking at what it says is a new initiative which would allow all
foreigners to leave. A previous Iraqi plan had set the price for the hostages as a commitment
by the US not to attack Iraq. Parliamentary Speaker Saadi Mardisaleh.
We don't say we want the pledge from the United States. We say we want the pledge from the
five permanent members of the Security Council or two or more from these states which we
mention, France, Germany, USSR, China and Japan.
The latest Iraqi initiative should be seen as another attempt to forge a split between
the United States and Britain and those members of the UN Security Council who favor a softer
approach, France, the Soviet Union and China. And the unveiling of a possible peacemaking
role for Japan and Germany is clearly timed given the arrival in Baghdad of a former Japanese
Prime Minister, Mr Nakasone, and the announcement of a former West German Chancellor, Billy
Brandt. Clashes continue over a disputed temple in
northern India. At least 40 more people have died in fighting between police and militant
Hindus wanting to storm the Ayodhya mosque. Almost 250 people have died since the dispute
began a fortnight ago. The conflict threatens to bring down the government of V.P. Singh
which this week faces a no confidence vote in parliament. In his shadow, former Premier
Rajiv Gandhi who according to opinion polls is well placed to make a comeback.
Israeli soldiers have shot dead one Arab and injured at least 150 others during violent
clashes in the Israeli occupied Gaza Strip. The fighting was sparked by the death of a
PLO activist held in prison. Israelis say he hanged himself. The man's family accused
the Israelis of torturing him. Back home the Federal Finance Minister has admitted the
budget forecasts for both unemployment and inflation could blow out as the economic recession
deepens. Ralph Willis' comments come as the government faces increasing pressure on its
economic policy. Paul Keating on Friday continued the Federal
Government's reluctance to admit that the economy has in all probability moved into
recession. I think what you've got is from what we can see you've got a fairly significant
slowing in spending and activity. Whether that slowing is significant enough
to constitute a recession no government minister will say. Finance Minister Ralph Willis is
also refusing to play the recession game today calling it a substantial slow down. But he's
prepared to admit that some of the budget forecasts are looking shaky, notably the 7.5
percent figure for unemployment. We're close to that point now so it may be that we'll
go a bit above that by the end of the financial year. And the forecast for inflation. That
probably will be a little higher than we expected because of petrol prices. The government will
know better just how it's going in both these areas this week with the release of the consumer
price index and unemployment figures. An exciting finish today in the Australian
Grand Prix with Brazilian veteran Nelson Piquet taking a surprise win. He held off a last
lap challenge from Britain's Nigel Mansell. Prost finished third. World champion Ayrton
Senna was ousted from the race after he crashed in the final stages. With 20 laps to go Ayrton
Senna was well in front until mechanical failure robed him of victory.
The lead belonged to Benetton's Nelson Piquet with Prost second but Mansell moved up on
his teammate and overtook on the back straight. A second separated Piquet and Mansell but
a daring move on the final hairpin didn't pay off for the Ferrari driver and Piquet
took the chequered flag. Yes Nelson Piquet wins his twenty second.