In his first major press conference since defeating Labor challenger Mark Latham, Howard identified continued economic growth and national security as the key priorities for his new term as head of the Liberal-National coalition government.

Howard also said he has no plans to change Australia's commitment of about 850 troops in Iraq -- in sharp contrast to Latham's stance that he would withdraw the troops by Christmas.

Howard said that at the Chile APEC gathering, he hoped to discuss with Yudhoyono the concept of even closer cooperation between Australian and Indonesian police forces as part of a stronger bilateral relationship.

Police in the two countries have worked together in recent years, particularly since the October 2002 Bali nightclub attacks which killed 202 people, including 88 Australians.

It would be the first meeting between the leaders of Australia and Indonesia since the September 9 bomb attack on the Australian embassy in Jakarta.

Howard also said he will announce his new ministry next week, while confirming Alexander Downer will remain as Foreign Minister and Peter Costello would keep the post of Treasurer if that was his choice.

Costello is Howard's deputy in the Liberal Party and is expected to succeed him as Prime Minister some time over the next three years

Latest indications suggest Howard's conservative coalition will have as many as 87 seats in the 150-seat governing House of Representatives, with Labor likely to drop back four to 60, and independents holding the remaining three seats.

The government may also control the 76-seat Senate, if it wins the support of the conservative Christian Family First party which is set to gain its first upper house seat.

Winning control in the Senate would give Howard the freedom to push through previously contentious reforms.

These include the sale of the government's controlling stake in the national telecommunications carrier, Telstra, and key industrial relations changes.

Voters comprehensively dismissed the challenge of 43-year-old Mark Latham's Labor Party, opting to stick with the vastly more experienced Howard.

In particular, key "mortgage belt" seats in the cities of Sydney and Brisbane stayed with Howard -- evidence a scare campaign run by Howard suggesting Labor would raise interest rates was effective.

A reluctance to change goverments during a time of unprecedented economic prosperity in Australia was also a key factor.

That caution cleary outweighed some of Howard's less popular decisions, such as committing Australian troops to the invasion of Iraq.

"This nation stands on the threshold of a new era of great achievement ... a nation which can achieve anything it wants, if its sets its mind to it," a beaming Howard told supporters in Sydney.

"I am truly humbled by this extraordinary expression of confidence in the leadership of this great nation by the coalition," he added.

Opposition leader Mark Latham said: "We made a decision to run a positive campaign. We wanted to support opportunity for the Australian people and we will continue to advance our beliefs and our policies to the parliament in the coming three years," he said.

The Howard triumph may give some comfort to fellow "coalition of the willing" allies, George W. Bush and Britain's Tony Blair, both facing imminent election -- Bush on November 2 and Blair possibly in May next year.

In Australia, Iraq has by no means been a key election issue -- despite a major clash of policies on the issue.

Howard has been a steadfast supporter of the U.S. action Iraq and committed 2,000 troops to the invasion.

Latham had been opposed to Australia's involvement in Iraq and had vowed to bring the remaining 900 troops base in Iraq home by the end of the year if he won government.

But this election has not been fought on the Iraq issue, mainly because Australia's commitment has been largely symbolic and no casualties have been recorded.

While a majority of Australians may be opposed to involvement in the war, it has not proven to be a strong enough issue to change voting patterns.

The Howard campaign focussed strongly on its economic record, having presided over years of prosperity in Australia.

Equally, the government has hammered a simple message: That interest rates would go up under a Labor administration.

For Latham, a loss will not likely be the end of his political career.

At just 43 and having led Labor for less than a year, it is expected he would remain as opposition leader, set to do it all again in 2007.

http://edition.cnn.com/2004/WORLD/asiapcf/10/11/australia.howard.team/index.html