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YAREN, Nauru (July 24, 1997 - Radio Australia)---Nauru's President, Kinza Clodumar, says the leaking of a confidential Australian report has brought relations between Nauru and Australia to a very low ebb.

The once-secret briefing paper, obtained by a Reuters news agency correspondent during a meeting in Cairns, says Nauru has a dismal economic record and was suffering from mismanagement and corruption by officials.

It said things are so bad in the once phosphate-rich nation, that Nauru may lose its independence.

President Clodumar denies his country is corrupt, saying Australia now apparently will have to rely on rumor for information about Nauru, since it recently closed its High Commission office on the Micronesian island.

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