RACING yachts rarely become national icons but Australia II, racing in Skandia Cowes Week as a warm up to the America's Cup Jubilee, is a glorious exception to the rule.

Watching her back in action for the first time since her glory days in 1983, when skipper John Bertrand won the America's Cup and provided Australia with their biggest moment in history, brings tears to the eyes - unless, of course, you are American.

The 12-metre yacht, with her famous winged keel and 23m mainsail, arrived in the Solent last week.

After being fitted with a new mast and rigging she was lowered into the water on the Thursday before Cowes Week to start her campaign to make Australia proud again.

With many of her original crew on board, her progress at first was slow, as well it might be after an 18-year break in which she has spent most of her time in museums.

After she beat Dennis Conner's Liberty in the thrilling seventh race of the finals at Newport, Rhode Island, Australia II was sold in 1987 by her owner Alan Bond to the Australian government.

Since then she has resided first in the Australian National Maritime Museum in Sydney and more recently Western Australian Maritime Museum in Fremantle, the town where she was built.

The decision to allow her to come out of retirement was a complicated one.

She is one of Australia's most valuable assets and the risk of damage while sailing in Cowes Week - alongside 1,000 other boats - and then at the Jubilee, was a major consideration.

Funds were also an issue, although Eileen Bond - who was married to Alan before he was jailed for fraud - made a substantial donation to cover the transportation costs and new sails and rigging to get her race-ready.

There was also help from the Western Australian Tourist Board who were anxious to use Australia II to promote their new museum which is due to open next year.

Since her first outing last week, Australia II has steadily improved her performances and recorded two fourths in Class 0, with a win over Richard Matthew's 12-metre class yacht Crusader already in the bag.