The Hon. Alexander Downer, MP

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Speech

at the East Asia Economic Summit 2002
Kuala Lumpur, 7 October 2002

Plenary Session: managing Asia's Security Threats

Introduction

Thank you Mr. Roth; Her Excellency [President of Sri Lanka]; other distinguished guests; ladies and gentlemen.

The theme of this plenary session is "Managing Asia's Security Threats", but it may be more appropriate to talk about maintaining security and stability in the Asia-Pacific region.

Indeed, there are both positive and negative factors in the regional security situation – - but overall, favourable trends predominate. 

That said, I think most would agree that international terrorism has emerged as an immediate threat to global security. 

I would therefore like to begin by commenting on the challenge international terrorism presents for the Asia-Pacific region, and how we – Australia and its regional neighbours – are responding. 

I shall then talk about Australia's approach to some of the long-standing security challenges that persist in our region, which have not disappeared with the emergence of terrorism as an immediate threat. 

I would also like to put to you some thoughts on the role the business community can play in maintaining stability in our region.

Managing terrorism and other transnational threats

The terrorists who carried out the 11 September attacks were part of a network reaching into every part of the globe. 

They drew on training, financing and other forms of support from a vast range of countries.

We know that international terrorists operate in our own region. 

They threaten not just Western interests – though these are often the targets – but also the hopes of Asian states for security and prosperity.

Countries in the region which have limited capabilities in areas such as law enforcement, intelligence and border control are particularly vulnerable. 

But no state, no matter how sophisticated its controls, is immune. 

How are we responding to this challenge?

A positive development that has come out of the events of September 11 has been the remarkable level of cooperation between our regional countries in the face of the common threat of terrorism. 

If anything September 11 has underscored the solidity of regional alignments and the role of moderate values – in Islamic and non-Islamic countries alike - in addressing fundamentalism and extremism.

Nearly all countries in the region, in some way or another, have lent their support to the global coalition against terrorism.

And regional governments are cooperating very effectively to nip terrorism in the bud:  Indeed attacks have been foiled thanks to crucial and timely intelligence on terrorist networks in the region.

The uncovering of evidence that the Jemaah Islamiyah terrorists arrested in Singapore planned to bomb western diplomatic missions is chilling, but it does show that regional cooperation to counter terrorism is working. 

Australia has joined that effort and is working closely with other regional countries – particularly in South East Asia – to strengthen intelligence, law enforcement, and counter-terrorism capabilities.

Much is also being done to find – and sever - the terrorist networks' money trail. 

Australia has just signed an agreement with Singapore to fight money laundering. 

And we will co-host with Indonesia a conference on combating money-laundering and terrorist financing in Bali in December 2002, thus contributing to the excellent work of Asia-Pacific Group on Money Laundering.

Terrorism has also galvanised regional institutions.

We are particularly pleased that the ASEAN Regional Forum (ARF) has agreed to discuss an Australian proposal for managing the consequences of a major terrorist attack in the region.

Of course terrorism is not the only trans-national threat we face.  Unfortunately there are others – people smuggling, the illicit drug and gun trade, environmental threats, and diseases such as HIV/AIDS.

Australia's work in tackling HIV/AIDS in the region, and our co-hosting – with Indonesia – of regional conferences to address people smuggling, contributes to regional security.

The important point here is that regional states and institutions are working together to address real security threats. 

It seems to me that these transnational threats have given many countries a willingness to do things differently – to cooperate with previously unlikely partners and to be open to new strategies.

Managing long-standing regional security challenges

Regional states and institutions should apply some of that resolve and creativity to some of the long-standing security challenges we face in the region.

Our region continues to enjoy a relatively stable security environment.

US strategic engagement undoubtedly helps preserve a stable balance of power.

And the marked improvement in some key bilateral relations which has flowed from the common interest in fighting terrorism is a positive for the region as whole. 

But recent developments – tensions between India and Pakistan, the recent naval clash between the DPRK and the ROK and uncertainty in cross strait relations – show that we must not take regional stability for granted.

And internal conflicts, ethnic violence and separatism - where national governments' capabilities to ensure stability and promote economic development are uneven – can also undermine regional stability.

Australia is well placed to deal with this environment. 

 Good bilateral relations provide the strong foundation on which we have built close defence and security cooperation with many countries, and a web of bilateral security dialogues with regional powers. 

Our regional diplomacy, of course, is underpinned by our security alliance with the United States.

Those dialogues and bilateral ties dovetail with our efforts in regional institutions such as the ARF, where we are actively encouraging increased regional cooperation on security issues.

Indeed Australia sees the ARF as an excellent forum for dialogue and confidence building - we value its role in encouraging the DPRK to engage with the international community.

However, we consider that the ARF will also need to demonstrate that it is relevant at times of crisis – its handling of terrorism issues is encouraging in that respect.

Role of business

It is not just governments and regional institutions that need to adapt to meet the challenges of a fluid security environment – but business as well.

Business can deal with a more uncertain security outlook and its impact on investment and confidence by doing what it does best – identifying new opportunities, adapting to changed conditions and taking calculated risks.

Clearly, there is a link between economic growth and social and polical stability.

Business should keep up the pressure on governments to implement policies which promote healthy competition, economic growth and employment.

And all of us, governments and business alike, have an interest in promoting an open global economy.

Indeed, an integrated and prosperous region, trading and investing with the rest of the world, is the basis for a stable and peaceful region.

Conclusion

Ladies and gentlemen,

There are both new and long-running security issues in the region that demand our attention. 

Australia draws confidence from the manner in which states from every part of the Asia-Pacific region have joined together to combat terrorism.  

I see cause for some optimism about the prospects for states in the region coming to grips not only with the challenge of terrorism, but also with the other security challenges that confront them. 

Australia, for its part, will continue to contribute to the region's stability through the interlinked strands of its regional security policy – which I have outlined today.

Why? Simply because it is in our long-term strategic interest - the continued stability and prosperity of the region are inextricably linked with the continued stability and prosperity of Australia.


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