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SYDNEY, Nov 23 (Reuters) – Australian Prime Minister Tony

Abbott said on Saturday he had written a letter to Indonesian

President Susilo Bambang Yudhoyono over a spying row that has

knocked relations between the neighbours to their lowest point

since the late 1990s.

Allegations that Canberra spied on the Indonesian leader and

his wife have triggered anti-Australian demonstrations in

Jakarta and have begun to damage commercial ties, with a

state-owned Indonesian firm on Friday suspending talks with

Australian cattle farmers, citing trust issues.

Abbott, speaking to reporters in Sydney, said he had replied

to a letter from the Indonesian leader, but he did not give any

details.

Indonesia has demanded an apology from Australia over the

allegations, which emerged from leaked intelligence released by

U.S. whistleblower Edward Snowden.

“I have written to President Yudhoyono and the letter is now

in the process of being delivered,” said Abbott, who emphasised

the importance of the relationship with Indonesia and

acknowledged the damage the row had done.

“Now, obviously, there will be good days and there will be

better days,” Abbott said of the relationship.

Australian Agriculture Minister Barnaby Joyce said he had

postponed a visit to Indonesia due to the row.

Former prime minister Julia Gillard has told CNN Abbott

should promise not to tap the Indonesian leader’s phone in

future, citing the way U.S. President Barack Obama handled

similar allegations that the U.S. was spying on German

Chancellor Angela Merkel.

Indonesia is a major importer of Australian agricultural

produces such as wheat and live cattle, while Australia is

Indonesia’s 10th-largest export market.

Yudhoyono said on national television on Wednesday he was

freezing military and intelligence cooperation, including on the

thorny issue of asylum seekers, a perennial irritant in

relations.

The spying row is straining relations already soured by

pressure from Abbott’s government since it was elected in

September to return asylum-seeker boats to Indonesia, which

Jakarta has resisted. Asylum seekers, many from South Asia and

the Middle East, often try to reach Australia via Indonesia.

Abbott has not publicly confirmed the spying but has

expressed regret for embarrassment the media reports caused

Yudhoyono and his family.

(Reporting by Christopher McCall; Editing by Robert Birsel)