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Australian foreign minister resigns amid speculation of leadership bid

Australian Foreign Minister Kevin Rudd resigns amid speculation that he might mount a leadership challenge to Prime Minister Julia Gillard.

(CNN) Washington – The Australian media have been abuzz in recent days with reports that Rudd is considering contesting Gillard’s leadership of the governing Labor Party.

Observers predicted a showdown could take place next week when Parliament resumes and Rudd was due to return from an overseas trip. But his sudden announcement in Washington in the middle of the night caught people by surprise.

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