Leading Aborigine calls Australian PM a racist ADELAIDE, (Reuters) - A leading Australian Aboriginal activist on Monday accused Prime Minister John Howard of rasicm, saying Aborigines had reached the desperation point in their fight against Howard's plans to limit native land title. ``Somebody who proposes racially discriminatory legislation is, as a matter of logic, a racist,'' Noel Pearson, chairman of the Cape York Land Council, told reporters. Pearson, who last week described the Howard government as ``racist scum,'' signalled an intensified campaign against the government's moves to limit native title. ``This really is desperation time,'' Pearson said after addressing a resource industry conference. ``We are all in favour of compromise but we cannot capitulate.'' Pearson said native title had not been won through war, guerilla activity or protest, but through Australian law and was the government's only opportunity to forge a civilised peace with the indigenous community. Native title was first recognised in law in 1994 after a court ruled Australia was not an empty land (Terra Nullius) when white settlers arrived in 1788. But the country was plunged into a bitter debate over land rights last year after a court ruled Aboriginal native title could co-exist with farmers' leases, which Howard has said left about 80 percent of Australia now open to native title claims. Howard reacted strongly to Pearson's description of his government as ``racist scum,'' saying the comments threatened free speech. ``That is the kind of sweeping, intemperate, intolerant remark which demeans a very serious debate,'' Howard told the Australian Broadcasting Corporation radio on Monday. ``Have we, surely, not reached a situation in this country where, if you disagree with somebody, you have the smear of racism directed at you?'' Howard said. Howard's 10-point native title legislation, which has already passed the lower house of parliament and goes before the upper house soon, effectively wipes out native title on government land leased to farmers. The legislation will make it harder to prove native title exists, impose a six-year sunset clause for claims, water down Aboriginal rights to negotiate and create exclusive ownership leases that will override native title. Howard argues this is necessary to ensure certainty of investment in the multi-million dollar rural industry. But Pearson told the resource conference the government's legislation was disastrous for industry and would promote conflict and chaos, sparking a stream of compensation claims which would cost the country more than the land was worth. He said Aborigines would prefer to deal directly with business and avoid government. ``A lot of businesses are now wise to the fact that you cannot jackboot a result (to native title claims),'' he said. ``While the politicians do the scaremongering....business opportunities are falling by the wayside,'' he said, adding that Aborigines often found it easier to negotiate with offshore companies who were the least ideological in their approach. Australia's Labor opposition and upper house independents have opposed the native title legislation, prompting government ministers to threaten an early election if it is not passed. ______________________________________________________ Get Your Private, Free Email at http://www.hotmail.com