Keneally said her involvement in the proposal came at the "pointy end" and what was presented to her was a bad cabinet minute.
Brown repeatedly said he did not recall specifics about altering the cabinet minute or who instructed him to change it.
Kevin Rudd has been sworn in as prime minister for a second time, three years after being deposed, and now faces the daunting task of reworking policy and replacing more than one-third of the cabinet just months before an election.
He said Kelly "did not agree" with the original minute and, when asked what comment Kelly had made when he was shown the original, Brown replied: "None, I don't think … It was obviously a minute prepared by someone who didn't have a lot of experience in writing cabinet minutes.
The original misattributed words spoken by Laurie Brown to Phillip Costa and mistakenly said Costa said he may have given instructions for the cabinet minute to be changed and admitted making alterations.
But Fox's pledge to maintain Britain's ability to wage war unilaterally, cooperate with France while snubbing the EU's defence agency, cutting Whitehall staff and reforming wasteful procurement (again) does not sound like tough realism, especially when combined with Cameron's gimmicky "war cabinet" and national security adviser approach.
But with cabinet ministers, Labour MPs and Lib Dem activists all warning against excess Lib-Lab intimacy, that may prove a forlorn hope.
"Alex said to the cabinet: are we going to go for it, or not?
To date, only one cabinet minister and a few junior officials have been arrested.
However, Lord O'Donnell, the former cabinet secretary who was intimately involved in the 2010 negotiations, said the key constitutional requirement for a prime minister is simply the ability to command the confidence of the House of Commons.
After a bruising cabinet discussion on the citizenship issue was leaked to the media, the Abbott government is still considering stripping sole citizens suspected of terrorist offences if they can potentially access citizenship elsewhere.
