On the eve of a summit to discuss how to distribute aid for victims of the Dec. 26 earthquake and Indian Ocean tsunami, Australia announced a package of $764 million in grants and loans, making it the No. 1 single donor. It previously had pledged $46 million, making its total $810 million.

Australia promised $810 million -- the largest government pledge -- to the tsunami relief effort, topping a $674 million German aid package on the eve of a crucial donors' conference Thursday. World leaders were competing to head the donors list as summit participants got firsthand looks at the apocalyptic landscapes carved out by south Asia's tsunami.

The twin pledges Wednesday by Australia and Germany pushed the total relief sum above $3 billion for the 11 countries hit by killer waves whipped up by a massive earthquake on Dec. 26.

Egeland, at the United Nations, called the two countries' pledges "phenomenal" and said the offers were so large that his staff members had to ask donors to repeat what they said to make sure they heard the number of zeroes correctly.

Most of Australia's pledge was for neighboring Indonesia.

"Out of the appalling tragedy of the tsunami has emerged an opportunity to build a new future," Australian Prime Minister John Howard said. Rocky ties between Australia and Indonesia have improved steadily since the nations came together in the aftermath of the 2002 Bali nightclub bombings that killed 202 people, including 88 Australians.

The United States was the first to raise the stakes dramatically in the aid race by pledging $350 million on Friday; it now lies fourth on the donor list and has sent in two aircraft carrier groups and thousands of troops. Japan last week promised a $500 million package.

The donors' conference was focusing on how best to allocate the billions in aid following a disaster that wiped out villages and infrastructure, left millions homeless and threatened with disease, and killed more than 139,000 people. Leaders also were to discuss a warning system to prevent massive death tolls from future tsunamis.

Source: Agencies