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DATE=5/11/2000 TYPE=CORRESPONDENT REPORT TITLE=INDONESIA / AUSTRALIA / L-O NUMBER=2-262219 BYLINE=ANNE BARKER DATELINE=CANBERRA CONTENT= VOICED AT: INTRO: Australia denies allegations it has flown spy planes through Indonesian airspace to monitor military communications. Reports in a British magazine and the "Australian Financial Review" have accused Australia of using air force planes to intercept military intelligence. But, as Anne Barker reports from Canberra, it appears any spying has been done from international airspace. TEXT: The British magazine "Flight International" reports two Australian Air Force Orion planes were secretly converted early last year to monitor Indonesian radio and mobile phone signals. The report's author, Peter La Franchi, says the spy missions were launched to monitor events in East Timor before and after last year's independence ballot. The magazine says the flights continue. // LA FRANCHI ACTUALITY // The particular operation that's now underway, though at a reduced level, commenced around February last year. It's still focused on East Timor, though my sources or some of my sources on this story indicate to me that the aircraft have flown missions against military installations and military signals on the island of Java. // END ACTUALITY Australia denies sending spy planes into Indonesian airspace. Defense Minister John Moore has issued a statement rejecting the allegations, but will not elaborate on Australia's surveillance capabilities. Mr. LaFranchi says the planes have monitored Indonesian intelligence from international airspace. // LA FRANCHI ACTUALITY // With the E-P Three aircraft, it's not necessary to penetrate Indonesian airspace. They take off from R- A-A-F Base Tindal. They fly up to the edge of Indonesian airspace and then they sit out there for ten-12 hours, at a time, and one aircraft relieves the other so you can keep up a 24-hour-a-day operation, if you need to. // END ACTUALITY // Mr La Franchi says Australian defense sources have told him Indonesia has taken counter measures against the spy flights. The allegations put a new strain on Australia's relationship with Indonesia, which has deteriorated substantially since Australia led a force of international troops into East Timor last September. Australia's Prime Minister John Howard has repeated an invitation to Indonesia's President Abdurrahman Wahid to visit Australia, in an effort to normalize relations. But President Wahid has continually deferred such plans and has yet to announce if he will visit. (signed). NEB / AB / WD 11-May-2000 06:47 AM EDT (11-May-2000 1047 UTC) NNNN Source: Voice of America .