The four-day Commonwealth Heads of Government Meeting (CHOGM) yesterday began in Australia with the leaders urging some of the world's poorest nations to join the "fight against terrorism", racism and religious intolerance.

They agreed to expel any member state that aided, funded or harboured terrorists.

In the first major announcement of their four-day meeting, the Commonwealth leaders said they had agreed on a "terrorist action plan" under which members would also act to stop abuse of financial systems and freeze and confiscate the assets of terrorists.

The leaders also called on the world's rich nations to adopt more humane globalisation policies to reduce the gap between rich and poor, which provides fertile ground for political instability.

And there was the call for promotion of democracy, but the summit showed no sign of taking action against strife-torn African nation Zimbabwe's President Robert Mugabe over allegations that he is intimidating voters and rigging the result ahead of a March 9-10 presidential election.

The biennial summit of the group composed mainly of ex-British colonies is divided over whether to impose sanctions against Zimbabwe.

But even though any measures taken by the Commonwealth would be largely symbolic, African states who make up about one third of the group are opposed to action until after next week's poll.

"The Commonwealth is not a police force," one southern African leader said, adding it would be premature even to consider what action to take until the elections were over.

British Prime Minister Tony Blair, who has been leading a campaign to suspend Zimbabwe from the 54-nation grouping, said the Commonwealth's credibility was on the line.

Blair has been pushing for tough action against Zimbabwe, calling on leaders to send "a really tough statement making clear our total abhorrence and condemnation of what's happened in Zimbabwe".

"If, after the elections in Zimbabwe, the Commonwealth observers report there was malpractice and intimidation…then it is essential we take action against Zimbabwe if Mugabe is still in power," he told reporters.

Mugabe, who has led Zimbabwe for 22 years, faces a stern challenge from Morgan Tsvangirai, the leader of the Movement for Democratic Change.

The European Union has already imposed sanctions on Mugabe's inner circle and withdrawn its election observers after Zimbabwe refused to accredit their head. Washington has followed suit.

Earlier, opening the summit with Britain's Queen Elizabeth II, Commonwealth Secretary-General Don McKinnon said: "We know we can make a difference in the fight against terrorism". But he added the greatest challenge facing the world was the huge divide between rich and poor.

"No-one in the world can have a secure future when half the world has no future at all," he said. "In the Commonwealth we want to have a spirit of generous globalisation."

McKinnon said children and young people have to be given major priority as they are the future custodians of the Commonwealth. The 54-nation Commonwealth represents 1.7 billion people, about one third of the world's population, but includes some of the poorest nations on earth like Bangladesh and the Pacific island of Tuvalu.

Host Australian Prime Minister John Howard welcomed the leaders, including those from two of the world's richest states Britain and Canada, and called for more open and freer trade to close the gap between rich and poor.

Our correspondent Aasha Mehreen Amin reports from Coolum: A spectacular opening ceremony of the 35th CHOGM took place in the huge auditorium specially designed for the grand event.

The makeshift venue, which can accommodate up to 2,500 people, was adorned with colourful logos of the Commonwealth symbolising the diversity of the member states. Big screens, projectors and acoustic equipment were installed all around the venue and even the pouring

shower outside the massive tent could not dampen the upbeat mood of some 1,500 guests.

The heads of states and governments and representatives of countries were escorted by flag bearers. Among the high profile dignitaries was Queen Elizabeth II and British Prime Minister Tony Blair. Prime Minister Khaleda Zia also attended the opening.

The programme began with a show titled 'Postcards of Australia' with music played by the Australian Army Band while young girls from the Queeensland Rhythmic Gymnastics Academy performed a dance number.

The programme gave glimpses of Australian history, beautiful landscape and modern development in light and sound and through on-screen projections. Indigenous music of Australia's aborigines as well as pop, country and rock music featured in the show.

Referred to as the 'traditional landowners' of Australia, aboriginal artistes in a welcome dance, called 'the Gubbi Gubbi', gave an electrifying performance with their catchy beats, haunting chants and flamboyant costumes and body paint.

The dances were followed by the rendition of the Australian national anthem by young boys and girls. A visual history with narration on the significance of the Commonwealth of Nations was shown on the screens.

Next came the 'Australia in the 21st Century' programme. A singer sang 'I am an Australian' while performers danced along. Then came speeches by the Queen, Australian Prime Minister John Howard, Commonwealth Secretary General Donald McKinnon and South African President Thabo Mbeki.

The speeches were followed by a grand finale-- a remarkable cultural show featuring several dances of various ethnic origins. They included a fast paced river dance by young girls in colourful dresses, a vibrant Indian Bhangra and a traditional Samoan dance. At the end all the performers, including the tap dancers who featured earlier in the programme, and the versatile gymnasts danced together, drawing excited applause from the audience. Thus ended the 90-minute highly choreographed opening ceremony of CHOGM.