A self-styled sheikh accused of sending abusive letters to families of soldiers killed in Afghanistan wrapped himself in chains and waved Australian flags after a court appearance Tuesday.

Man Monis, also known as Sheikh Haron, then made the bizarre suggestion that popular children's band The Wiggles should perform a peace concert for children whose parents were killed during the conflict.

"I love Australia. I want safety for Australia," he told journalists, while waving small Australian flags.

"When the Australian government kills innocent Afghan civilians they might kill our civilians."

Monis, a 45-year-old Sydney resident, faces up to two years in jail if convicted on seven counts of using the postal service to menace, harass or cause offence.

Outside court, he addressed journalists in Arabic before switching to English, when he strongly criticised Australia's involvement in Afghanistan.

He also harangued Prime Minister Kevin Rudd, who described the hate-mail allegations as sickening when they came to light last month.

"I ask Mr. Kevin Rudd…did your stomach turn when you heard the news that the Australian army has killed innocent civilians?"

The matter against Monis, who did not indicate how he will plead, was adjourned to January 19. Local media have said he is an Iranian-born immigrant who claims to be an Islamic spiritual leader.

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