On July 7 last year, Khan led a group of suicide bombers who blew themselves up on London subways and a bus, killing 52 people.

Agents had become aware of Khan and Shazad Tanweer, another of the bombers, as peripheral characters in other investigations and surveillance operations.

People detained in other countries had referred to men from Britain known only by pseudonyms who had travelled to Pakistan in 2003 and sought meetings with al-Qaeda figures, said the report, which was released Thursday.

However, British agents hadn't been able to confirm their identities before the attacks.

Instead, intelligence agents focused on more pressing cases, including "known plans to attack the U.K.," the report said.

"When resources became available, attempts were made to find out more about these two and other peripheral contacts, but these resources were soon diverted back to what were considered to be higher investigative priorities."

The report said the involvement of al-Qaeda in the attacks was unclear, and it had found no links between the July 7 bombers and the men who failed in their attempt to bomb the London transit system two weeks later.

The report also concludes that security services could not have stopped the attacks.

"During the past year, Canada and Canadian interests abroad continued to be under threat from al-Qaeda and its affiliated groups,'' Jim Judd said in his 2004-05 report to the public safety minister.

The Canadian Press obtained a copy of the report on Tuesday through an access to information request.

"While the threat remains concentrated overseas, an attack on Canadian soil is now probable," Judd wrote.

The annual report was top secret when it was hand-delivered in November to Anne McLellan, the Liberal MP who held the public safety portfolio at the time.

A declassified copy of Judd's report was handed over to the Canadian Press.

Both McLellan and her government were defeated in the Jan. 23 election, and Conservative Stockwell Day is now the public safety minister.

Canada appeared on two different lists of target countries prepared by Osama bin Laden's al-Qaeda network, in November 2002 and March 2004.

Canadian soldiers have recently taken on a higher-profile role in Afghanistan, trying to eradicate remnants of the former Taliban government, which gave shelter to bin Laden before and after the attacks against the United States in September, 2001.

Conservatives aware of warning

Prime Minister Stephen Harper's acting national security adviser told the Canadian Press Tuesday that the Conservatives are aware of Judd's warning and the continued threat.

"We're just trying to increase the level of sophistication as to how we refine that consideration of the threat, where it might come, how it might come,'' said Stephen Rigby.

Last week's budget set aside $95 million for a fund to let rail and public transit operators pay for measures designed to protect passengers from the kind of carnage caused in 2005 when militants bombed the transit system in London, England.

The Canadian Air Transport Security Authority, which handles airport security across the country, is also getting more money for its operations -- $133 million this fiscal year.

According to the charge laid yesterday, Amundsen allegedly "dishonestly obtained explosives and detonators" from Orica Quarries, at Yatala near Movie World on the Gold Coast between April 11 and May 10 this year.

Ferny Grove High was closed for most of yesterday morning as police with sniffer dogs checked classrooms, before declaring it safe for students and staff to resume lessons.

Explosives experts and counter-terrorism sources said last night that Powergel was specifically designed for use in moving large rocks and earth in the mining industry.

Amundsen's neighbours spoke yesterday of a man who had become agitated in recent weeks and who loved to hoard things.

Some spoke of seeing him in the past month carrying large plastic barrels in his car, raising their suspicions.

One neighbour, Sharyn Sneddon, said she and her husband had seen Amundsen transport five large plastic barrels in his car about eight weeks ago.

Lilly Boccalatte, who lives across the road, said her husband saw the man walking down the street with rubber gloves on at the weekend "but didn't take much notice of it".

A 69-year-old neighbour who did not want to be named said Amundsen, who is single and has no children, had appeared agitated recently. "He was getting around the place a bit, just marching up and down the street," she said.

The three-day Shangri-La Dialogue - named after the Singapore hotel where it's held - begins June 2, and will involve delegates from at least 22 countries including the United States, Britain, Canada, France, Japan, China and India.

Issues to be addressed include U.S.-Asia security relations, the rise of India and China, maritime security co-operation, counterinsurgency and regional security concerns, the London-based International Institute for Strategic Studies said in a statement Wednesday.

Singapore's Prime Minister Lee Hsien Loong will deliver the conference's keynote address, after which defence ministers will hold bilateral discussions and round-table meetings.

U.S. defence secretary Donald Rumsfeld attended the security forum last year, when he challenged China's military buildup and urged political change in the world's fastest growing economy.

Last month US senators visiting Moscow said Russia's slide towards authoritarianism and stance on the Iranian nuclear crisis may undermine the country's bid to join the World Trade Organisation.

In his speech, Mr Putin said the government would strengthen the nation's nuclear deterrent as well as conventional military forces without repeating the mistakes of the Cold War era, when a costly arms race against the US drained Soviet resources.

Russia's military budget is 25 times lower than that of the US.

"We need a military that is able simultaneously to carry on battle in global, regional and, if need be, several local conflicts," he said.

The president also pledged action to counter Russia's acute demographic crisis, calling on members of parliament to vote money for more generous birth bonuses and childcare subsidies.

He said: "I am convinced that with such an approach, you will earn words of gratitude from millions of mothers, young families, all the citizens of our country."

Russia's population dropped by 4 per cent to 142.7 million between 1993 and 2006, according to the Health Ministry.

The report, entitled From Camp to Community: Liberia Study on Exploitation of Children, was carried out by Save the Children.

A total of 315 people were interviewed, 23% were boys and 26% were girls while 27% were men and 24% were women.

Half were refugees living in camps within their own troubled country (internally displaced people or IDPs) while the other half had returned to their homes after years of conflict to live in makeshift communities.

The study found that girls aged from eight to 18 were involved in sexual activities with men but that girls of 12 and upwards were providing sex regularly.

"They are between 10 and 15 years; as soon as they see their 'tete' (breasts) coming up then they jump in this man business," one interviewee said.

Reasons for having sex with the men - aged on average between 30 and 60 - varied from economic deprivation, pressure from peers and parents, seeing other children with material goods and boredom.

Many more young women were found to be having sex with adult men in the hope of payment than mature women.

The report said: "The over-riding reason cited for this is that men can have sex with young girls for very little in return, sometimes nothing."

Save the Children found numerous groups of men were guilty of exploiting young girls including businessmen, police officers, teachers and peace-keeping soldiers.

Humanitarian workers and those running the camps were also guilty.

"All focus groups and individual interviewees without exception mentioned NGO workers," the study claimed.

"In all the IDP camps where discussion groups were conducted, the Camp Management Committee (CMC) and block leaders were implicated."

Another interviewee told Save the Children: "In the camp, most camp officials were loving to (seeking sex with) children.

"During distribution (of food and goods), when these people have interest in some of the girls, the authorities serve them very fast.

"After the distribution they would arrange an appointment with these girls."

Sex takes place in distribution centres, entertainment area, bushland and even latrines and washing areas.

The study found that many parents knew that sex was going on but "accept it because of poverty and the dire situation in the camps".

Among the underage girls having sex, most were afraid to report it because by implicating NGO staff, for example, could lead to NGO support being withdrawn.

"They would not know where to report it as the Camp Management Committee and block leaders were themselves involved in it," the report said.

Save the Children's UK chief executive Jasmine Whitbread called on the Liberian government, the UN and international NGOs to do more to fight the problem.

"This cannot continue," she said. "It must be tackled.

"Men who use positions of power to take advantage of vulnerable children must be reported and those who are taking advantage of their position must be fired.

"More must be done to support children and their families to make a living without turning to this kind of desperation."