Prime Minister John Howard promised yesterday to hold a referendum asking Australians to recognize indigenous Aborigines as the country's original inhabitants - a surprise major policy shift just weeks before elections.

But Howard again ruled out making a formal apology on behalf of the nation to Aborigines for past policies that included the forced removal of children from their families - a hot-button issue among Aborigines.

Howard's comments, made in a speech in Sydney, appeared to be a bid to raise Aboriginal affairs as a campaign issue and soften his image as unbending on a topic that polls show many Australians are more sympathetic about.