AUSTRALIA: The Australian authorities were warned of the possibility of a terrorist attack but had no specific information suggesting Bali was a target, the Prime Minister, Mr Howard, said yesterday.
"We had no warning of the specific attack that occurred," Mr Howard told a news conference in parliament.
"There have been general warnings about the deteriorating security position and the deteriorating terrorist position in Indonesia," he added.
Meanwhile, four Indonesians are expected to be formally arrested as suspects in the Bali nightclub bombing which killed more than 180 people.
The four, who are being held in a police station in the resort island's capital of Denpasar, are undergoing intensive questioning, according to national police spokesman Brigadier General Saleh Saaf.
Indonesian authorities also found traces of military-grade C-4 at the scene - the same plastic explosive used in the attack on the USS Cole in the Yemen, an attack blamed on Osama bin Laden.
The latest find has heightened fears that the al-Qaeda terrorist network, or one of its extremist allies, was also responsible for the blast.
In Malaysia, four members of the militant Jemaah Islamiyah (JI) organisation, which has been linked to the bomb attack, have been arrested. Two of the four had received military training in Afghanistan, and one was linked to the al-Qaeda network, police said.
Mr Howard said the Australian government had received information from the US, warning of possible terrorist activity against US citizens in tourist locations across Indonesia, including Bali.
Australia and the US share all information gathered by their respective intelligence agencies.
However, on Tuesday Mr Howard said he had no knowledge of the US report. He said then that the report "hasn't been brought to my attention, no. We had no warning of the specific attack that occurred.
"There have been general warnings about the deteriorating security position, the deteriorating terrorist position in Indonesia."
The US embassy in Indonesia's capital Jakarta issued two travel notices, on September 26th and October 10th, warning Americans and other Westerners to "avoid large gatherings and locations known to cater primarily to a Western clientele, such as certain bars, restaurants and tourist areas".
Australia's Department of Foreign Affairs last issued travel advice regarding Indonesia on September 20th.
It urged Australians to maintain high levels of personal security amid a risk of bomb explosions, including in tourist areas, but said tourist services were "operating normally" in Bali.
Mr Howard said yesterday that: "This intelligence was assessed and the view was formed that no alteration in the threat assessment level was warranted."
The prime minister has now ordered an inquiry into Australia's handling of the intelligence, although he told parliament yesterday that there was no specific information on the planned bombing in Bali.
Australia's Foreign Minister Mr Alexander Downer has denied suggestions that his department failed to act on intelligence about a potential terrorist threat in Bali.
Speaking on Australia's ABC television last night, Mr Downer said he was satisfied with his department's handling of the matter.
"The test for me, on whether I'm satisfied in retrospect with their performance, is to measure the intelligence that was available to the Australian government with the consular advisories and also the Embassy bulletins.
"I think on the basis of that information, they did a good job, but of course they didn't do a comprehensive job because they didn't know what was going to happen in Bali on the 12th of October," Mr Downer said.
He said yesterday that Indonesia and Australia had agreed a joint investigation of the Bali bombing which killed more than 180 people last Saturday night.
The number of confirmed Australian deaths in the atrocity still stands at 30. The number of Australians missing has been revised down to 140 from 180, while 113 are still being treated for injuries in hospitals throughout the country.
A high death toll is also expected among Indonesians and Britons.
The Australian government has announced a reward of up to Aus$2 million for information leading to the capture and prosecution of those people responsible for the Bali bombing. - (Additional information Reuters)