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Crosswhite said the Commonwealth Games Federation would hold a teleconference to discuss security issues "very shortly" following the Lahore attacks.
The Australian Commonwealth Games Association has expressed shock at the terror attack on the Sri Lankan cricket team in Lahore but sees "no reason" for the 2010 Delhi Games to be called off amid cries from different quarters for the event to be cancelled.
Australian swimming legend Dawn Fraser called for the Commonwealth Games in India to be cancelled to avoid "another Munich" following the Lahore attack which killed at least eight people and injured six Sri Lankan cricketers.
However, ACGA chief executive Perry Crosswhite - who was an athlete at the 1972 Munich Olympics Games when Black September millitants killed 11 Israeli team members - said he would only be concerned about competing in Delhi if security threats were "beyond an acceptable level".
"I won't call it a new threat, I call it a new implication," Crosswhite said following the Lahore attack.
"I don't think it means you automatically have to stop the Games. It's how you deal with it - that's what everyone is putting their minds to now. Of paramount importance to us is the safety of our athletes.
"At this stage the Games are on at Delhi in 2010 and we have no reason to believe that they won't take place," Crosswhite was quoted as saying by the Australian Associated Press.
Crosswhite said the Commonwealth Games Federation would hold a teleconference to discuss security issues "very shortly" following the Lahore attacks.
ACGA officials will also visit Delhi in early April.
Reports last month suggested Delhi organisers were already struggling with numerous issues ahead of the scheduled
opening ceremony on October 3, including security, venue construction, broadcasting and accommodation.
However, Crosswhite said cancelling the Games was not being considered.
"Like everyone else I am shocked that they attacked a sporting team, and Pakistan cricket is so popular - for terrorists to do this is almost unheard of," he said.
"(But) we are not saying the Games are going to be cancelled.
"Dawn (Fraser) is a great icon and has her personal views but she is not aware of what is going on (with security). "We are looking at new steps to put in place to ensure our athletes are protected."
Asked if they could guarantee an athlete's safety, Crosswhite said, "I don't think anyone can guarantee anybody's safety any more.
"The Pakistan government was supposed to have guaranteed the safety of the Sri Lankan cricketers.
"But what we can say is that we will make an assessment... that the potential threats are at an acceptable level (at Delhi)," he said.
"If we did feel that those security issues were beyond an acceptable level we would have no hesitation in making our views known to the athletes," Crosswhite said.
But he added that no one would stand in an athlete's way if he/she did not want to compete at Delhi.
"It is up to the athletes whether they go or not," he said.
"We won't force them to go. (But) it has always been my view that the Commonwealth Games are a low priority target because most of the countries in the Commonwealth are developing nations."
Crosswhite said dealing with security issues was nothing new for the Commonwealth Games, with the 2002 Manchester Games held just months after the 9/11 attacks.
And he dismissed the notion that Melbourne could host the 2010 Games.
"Quite frankly it is very difficult to organise the Games anywhere else at this stage," he said.
He said ACGA would continue to receive security updates from the Delhi Games organising committee, the Commonwealth Games Federation and Australia's Department of Foreign Affairs and Trade.
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