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Abdullah, Howard at odds on plans to fight militants

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Refusal to admit Canberra in East Asian talks raises tensions

Australian and Malaysian leaders failed to resolve long-standing differences over how to tackle terrorism in Southeast Asia at a meeting in Canberra yesterday, at which Malaysia also refused to back Australia's push for inclusion in a new regional grouping.

In the first Australian visit by a Malaysian leader in 21 years, Prime Minister Abdullah Badawi and his Australian counterpart John Howard announced plans to negotiate a free-trade agreement but refused to concede ground on key differences regarding Canberra's role in the region.

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Both leaders played down tensions over Malaysia's objection to Australian participation in the inaugural East Asia summit, Canberra's refusal to sign the Association of Southeast Asian Nations' Treaty of Amity and Co-operation and Mr Howard's threat of unilateral action against militant bases in the region.

'Like all countries that take their relationship seriously, there will over time be differences and there will in the future be differences,' Mr Howard said.

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The Australian leader cut a joint press conference short after persistent questioning on thorny bilateral issues, in contrast with the easy ties displayed during Indonesian President Susilo Bambang Yudhoyono's visit earlier this week.

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