Secret plan to free Wood failed

MELBOURNE - Australian authorities secretly negotiated hostage Douglas Wood's release 10 days before he was "accidentally found" by Iraqi troops, a report has claimed.

But his release was delayed as negotiators tried to hatch a plan without having to pay A$130,000 ($141,700) to the criminal gang holding him, said Melbourne's Sunday Age.

Federal police believed a ransom payment would set a dangerous precedent.

Arrangements were made to fly Wood from Dubai to Australia on an RAAF aircraft about June 6. But this move was cancelled suddenly.

The emergency res-ponse team believed Wood would be freed without a ransom.

Wood was to speak of his ordeal late last night on the Ten Network.

The Sunday Age said its investigations revealed:

* Wood's snatching from his hideout was carefully planned.

* Iraqi soldiers were used to pick up Wood in a bid to disguise Australia's secret dealings.

* Senior Australian Islamic cleric Sheikh Taj Aldin Alhilali played a key role in negotiations with diplomat Nick Warner.

* Alhilali was at personal risk as his communications were tracked, which led the authorities to Wood's hideout.

* The Mufti of Australia negotiated with kidnappers to reduce the ransom from US$25 million ($35.4 million) to US$100,000.

* Intelligence agencies could monitor mobile phone lines.

* The 47-day operation cost about US$3 million.

A Foreign Affairs spokeswoman would not comment on the plan to bring Wood out 10 days earlier, saying she could not speak on operational matters. "The total cost of our efforts to free Mr Wood has not been calculated. Costs were spread across a number of agencies."

Defence minister Robert Hill last night rejected the claims, saying the Government had not delayed Wood's rescue.

- AAP