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SYDNEY, July 5 (Reuters) – An Australian navy vessel was

headed towards a suspected asylum seeker boat in distress south

of Indonesia on Friday, just as the leaders of the two countries

met to discuss refugees, one of the key issues in Australia’s

upcoming general election.

The boat, around 42 nautical miles south of Java, had

requested assistance and been spotted by a customs surveillance

aircraft, Australian Customers and Border Protection said.

One navy vessel and two merchant ships were heading to the

scene, a spokesman said, adding that the boat was still making

its way south.

“It’s reported that there are 80 people on board,” a

spokeswoman for the Australian Maritime Safety Authority told

the Australian Associated Press. “We believe they are taking on

water.”

Australian Prime Minister Kevin Rudd is visiting Indonesia

on his first overseas trip since being reinstalled to address

sensitive bilateral issues including asylum seekers with

Indonesia President Susilo Bambang Yudhoyono.

Refugees seeking asylum in Australia often set sail from

Indonesia or Sri Lanka, heading for Australia’s Indian Ocean

territory of Christmas Island in dangerous and overcrowded

boats, with the help of people smugglers.

Rudd is seeking to defuse voter unease ahead of elections

scheduled for September and is expected to take a tougher line

on refugees than his predecessor, Julia Gillard.

Rudd replaced Gillard as prime minister in a Labor party

vote last month after successive polls predicting a Labor

government washout at the election.

(Editing by Nick Macfie)