But he stopped short of using the word ``sorry'' in a historic statement to a hushed parliament expressing ``deep and sincere regret to indigenous Australians'' for the hurt and trauma suffered in the past.

The statement, which came after many hours of negotiations with newly-elected aboriginal senator Aiden Ridgeway, acknowledged past mistreatment and reaffirmed Howard's commitment to reconciliation with Australia's 400,000 Aborigines.

The statement is seen as a major breakthrough after two years of resistance by Howard to making a formal apology to the tens of thousands of victims of the policy practised for almost a century up to the late 1960s. Many were abused after being separated from their families in a misguided attempt to assimilate them into white society.

Howard's motion acknowledged ``that the mistreatment ofmany indigenous Australians over a significant period represents the most blemished chapter in our national history.''

It expressed ``deep and sincere regret that indigenous Australians suffered injustices under the practices of past generations, and for the hurt and trauma that many indigenous people continue to feel as a consequence of those practices.'' It called on the House to reaffirm ``its wholehearted commitment to the cause of reconciliation between indigenous and non-indigenous Australians as an important national priority for all Australians.''

The motion also stressed the importance of ``measures leading to practical results that address the profound economic and social disadvantage which continues to be experienced by many indigenous Australians.''

The statement was prepared following consultation with key aboriginal leaders including the former chairwoman of the Aboriginal and Torres Strait Islander Commission, Dr Lowitja O'Donoghue, a victim of the policy, who said she was elated with thestatement. But another aboriginal leader and member of the stolen generation, Tracker Tilmouth, Director of the Central Land Council condemned the statement as ``limp-wristed and a bit soft.''

A 1987 Human Rights Commission report recommended compensation for the victims of a policy it described as ``genocide'', saying most had been physically or emotionally scarred by being taken from their families. They ended up in orphanages or foster homes where most were abused.

Stolen generation woman loses test case

SYDNEY: An aboriginal member of the stolen generation on Thursday lost her 11-year legal fight for damages in a test case against the New South Wales state government.

Joy Williams, 56, had sued the state claiming it breached its duty of care when it assumed guardianship of her and put her in various institutions. She claimed she suffered sexual, physical and psychiatric abuse at the hands of state officials.

In a 432-page judgment, Supreme Court Judge Justice Alan Abadee found the NewSouth Wales state was not negligent and there was no common law duty of care imposed on the Aboriginal Welfare Board which took her in. He ruled the case did not concern stolen generation issues and noted that courts could not provide a solvent for every social problem.