Speech
at the opening of The Australia-Japan Conference for a Creative
Partnership
Tokyo, Japan, 7 November 2002
Australia and Japan: Challenges and Opportunities
Introduction
Mr Yano, Senior Vice Minister for Foreign Affairs for Japan;
Leaders of the Japanese and Australian delegations, Mr Murofushi
and Mr Ellis;
Ambassador McCarthy, Ambassador Hatake-naka, Distinguished guests
and Conference participants;
Ladies and Gentlemen.
I am very pleased to be here today for what I believe is an important
event in the Australia – Japan relationship.
When the ‘Australia – Japan Conference for the 21st Century’
concluded in Sydney in April 2001, not even the most prescient amongst
us could have envisaged the changes and challenges that would emerge.
We have had the momentous and tragic events of September 11, a global
economic slowdown and, most recently, the appalling mass murder committed
by terrorists in Indonesia – which we have remembered here today.
In the meantime, we have continued a busy bilateral agenda, particularly
the search for a new framework in which to conduct our trade and economic
relationship.
Rarely, therefore, has such a high-level Conference been more timely
for considering long-term challenges, and ways in which, together,
we can meet them and build for the future.
Today I would like explore future directions in Australia–Japan relations.
I would like to first outline the implications of regional and global
events for cooperation between our two countries, as strong regional
partners.
The Regional Security and Economic Outlook
Of course, Australia’s strategic outlook and perspective has been
sharpened by the bombing in Bali on the 12th of October.
There were at least 180 victims and we believe almost half of them
were Australians.
We also know there were at least 2 Japanese citizens, together with
citizens of many other countries, who were casualties of the attack.
And, of course, we know of scores of Indonesian casualties, not to
mention the enormous damage done to Bali and Indonesia more widely.
The bombings underscore that terrorism threatens our region.
They remind us that no one is immune, and everybody is threatened.
If left unchecked, terrorism has the potential to obstruct the welcome
trend towards a mature democracy in Indonesia, and to destabilise
other countries in our region – which of course is one of the main
aims of the perpetrators.
We must emphasise that this is not a clash between Islamic and Western
norms, cultures and civilisations.
It is a clash, instead, between tolerance and moderation, on the
one hand, and, on the other, zealotry and extremism.
Australia’s effort in the war against terrorism will remain global,
regional and domestic in nature.
Australia has troops on the ground in Afghanistan; we have been working
to strengthen intelligence, law enforcement, and counter-terrorism
capabilities in South East Asia.
We have signed Memoranda of Understanding on counter-terrorism with
Indonesia, Malaysia and Thailand and we are working on a similar arrangement
with the Philippines. It was under the MOU that we were able to establish
a joint investigation team on the Bali bombing with Indonesia.
We have also strengthened anti-terrorism legislation at home and
continue to work for tighter measures globally and in our region to
prevent the financing of terrorism.
Iraq, North Korea & Weapons of mass destruction
Ladies and gentlemen
Terrorism is an immediate threat to our security.
So too, however, is the spread of nuclear, chemical, biological and
radiological weapons – as well as missile proliferation.
The prospect of links between terrorists, weapons of mass destruction,
and certain states we know are responsible for their proliferation,
also has to be confronted.
Iraq, and North Korea, in particular, threaten regional and global
security.
Iraq has avoided its obligations to disclose and eradicate weapons
of mass destruction programs since the Gulf War.
Iraq’s defiance of the United Nations challenges the authority of
the international community and international law.
Australia supports, therefore, a tough new Security Council regime
for immediate, unimpeded, unconditional and unrestricted access to
suspected weapons of mass destruction sites.
In our own region, we are now faced with the threat of nuclear weapons
from another undemocratic state – North Korea.
Pyongyang’s admission that it is enriching uranium is renewed cause
for grave concern about North Korea’s intentions.
As a region, and with our allies, we have to ensure that North Korea
stops developing nuclear weapons, and the means of delivering them
beyond its borders.
The international community needs to present a strong, coordinated
and unified response to the DPRK to convince it of the need to address
international concerns about its nuclear program, and for it to come
into early and full compliance with its international obligations
and meet international expectations.
Australia welcomes Japan’s initiative to engage North Korea and congratulates
it for its steadfastness in challenging North Korea on its production
of enrichened uranium.
I again call on North Korea to verifiably and immediately dismantle
all nuclear weapons programs.
Australia wants to work with Japan and other countries in the region
to reach a peaceful diplomatic solution on these issues.
We will keep open our channels of dialogue with the DPRK but will
not reward it for such provocative behaviour.
Australia wants to send a clear message to the DPRK about the consequences
of its activities.
Failure to comply with international obligations risks undermining
the DPRK’s own economic aspirations and interests in developing relations
with neighbours and other countries.
Power relativities in East Asia
Ladies and gentlemen
North Korea’s admission that it is developing nuclear weapons raises
longer term, strategic considerations for the region.
The Asia-Pacific is home to the world’s six largest armies – those
of China, the United States, Russia, India, North Korea and South
Korea.
It is also home to three of the world’s most volatile flashpoints
- the Taiwan Strait, the Korean Peninsula and Kashmir.
China’s rising economic, political and strategic weight is the most
important long-term trend in the region.
It is – truly – an awakening giant, which faces enormous internal
hurdles as it modernises, not least the economic and political impacts
of transition from socialist enterprise to market capitalism.
Japan, despite its current difficulties, is still the world’s second
largest economy, and will remain a critical player regionally and
globally.
That said, Japan does have serious issues of demographic change –
and Japan will need to address long term questions of how it contributes
to regional security.
For our part, Australia supports Japan playing a more active role
in regional security issues, at a pace with which it is comfortable.
The United States’ strategic presence in East Asia – to which our
bilateral security alliance contributes much – underpins the long
term security and stability of the region.
It is crucial – both to the United States and to the region – that
the United States remains engaged in the region, economically, politically
and strategically.
South East Asia continues to undergo a quite fundamental transition
after the financial crisis of 1997 and the subsequent economic and
political impacts.
Those impacts have varied across the region, with some countries
adjusting more quickly than others to the flight of capital and the
resulting collapse of currencies, incomes, demand, and employment.
Now we have the added impacts of terrorism and the Bali bombings,
which took place in the country which has undergone most change, and
where the impacts have been greatest – Indonesia.
It remains to be seen where this transition will take South East
Asia – but in the short term, at least, the region will suffer from
a lack of confidence and direction.
We need to think long and hard about where uncertainty – and possible
instability – will take our region.
Implications for Australian and Japan cooperation in the region
Ladies and gentlemen
I wish I could say with complete confidence that I feel that the
region will negotiate the challenges before it easily – but it is
going to be an enormous task.
It is absolutely clear that the challenge presented by terrorism
is not going to be met successfully by individual effort.
In his speech in Singapore in January this year, Prime Minister Koizumi
called for the establishment of a regional community that encourages
functional cooperation.
Prime Minister Koizumi also said that Australia would be a core member
of such a community.
Prime Minister Koizumi’s vision is one that is shared by Australia:
Asia has been an abiding priority in our foreign policy and we are
committed to playing a constructive and active part in cooperative
efforts in the region.
Australia also believes that Japan has an important role to play
in promoting the benefits of open regionalism, and promoting the contribution
inclusive arrangements can continue to make to regional stability
and prosperity.
Together, Australia and Japan are well placed to build on a proud
record of cooperation, and provide leadership in this area.
We have vital strategic and economic interests in the stability of
the region, and through it the consolidation of free markets and democratic
government.
We also have considerable diplomatic, financial, technical, defence
and other resources to bring to bear.
Our task, then, is to look at how we can further enhance these links
in view of the nature of the challenges we face.
One possible area, for instance, is continuous and rapid information
exchange.
The regional strategic environment – be it terrorism or the recent
admission by the DPRK – demonstrates that developments unfold quickly,
as does the requirement for effective responses.
This maxim applies whether we are talking about specific threats
and challenges, initiatives to deal with them, or broader strategic
policy dialogue.
Australia and Japan have already developed a very effective strategic
dialogue which operates at several levels: -- a new “one and a half
track” dialogue, annual political-military talks, and counter terrorism
consultations.
We have cooperated on peacekeeping and intelligence exchange, are
increasing our defence contacts – such as in East Timor - and are
working closely in areas such as disarmament, including in the South
Pacific.
We will explore possibilities for further cooperation.
One area is in our response to the terrorist threat in South East
Asia – through capacity building, and supporting regional states in
their efforts to crack down on terrorists.
Another area is strengthening regional arrangements that can facilitate
the swift and effective handling of the security challenges we face.
The APEC Leaders’ Summit in Mexico last month focussed on security
as well as economic issues -- in particular terrorism -- in a highly
productive manner.
Our cooperation in the Bali Conference on People Smuggling last January,
as well as after the September 11 attacks, is a good example of the
flexibility and creativity that is required.
One general observation I would make is that there is now considerable
overlap in our increased cooperation on security matters, and on economic
issues.
The nexus between economic prosperity and political stability is
now more clear than ever – and I believe there is much Australia and
Japan can do to inject some much needed certainty and confidence in
the region.
___________________
The Bilateral relationship
Ladies and gentlemen
When Prime Minister Koizumi visited Australia earlier this year,
he agreed with Prime Minister Howard that our two countries should
explore all options for deeper economic linkages.
Australian and Japanese business representatives have strongly supported
this initiative – including by recommending that we begin negotiating
a free trade agreement (FTA).
There is no secret about the short term impediments to concluding
an FTA, but we should not lose sight of the longer term opportunities
and strategic benefits of an FTA.
In recent years, Australia’s and Japan’s trade policy focus has expanded
to include preferential trade agreements.
While neither of us has lessened our commitment to the WTO, we both
see FTAs as building economic and political links at a depth that
is not possible by relying exclusively on the WTO.
We need to make sure our bilateral economic relations reflect these
changes -- by keeping alive the option of a bilateral FTA, and by
making sure our interests are not affected adversely by FTAs we conclude
with other countries.
Australia and Japan have always provided each other “most favoured
nation” (MFN) status, by granting market access at least as good as
that granted to any other country.
The MFN principle should continue as a central feature in our relations
– but it should also be updated to maintain a clear focus on promoting
future growth.
Australia and Japan share strategic and economic interests in having
regional economies continue to liberalise their economies.
In establishing rules which allow the market to operate freely, and
which foster enterprise and innovation, a new Australia-Japan agreement
could be a model for other regional agreements.
Indeed, a new agreement could enhance Japan’s credentials with other
regional countries, some of which seem sceptical about Japan’s commitment
to comprehensive trade liberalisation.
A new agreement could also deliver economic gains by promoting further
trade and investment liberalisation, including in new areas such as
biotechnology and ICT, and by encouraging greater integration between
our business communities.
In short, a new agreement could ensure the trade and investment environment
maximises the potential for growth in the relationship.
I encourage you all to consider a bold, creative approach to enhancing
trade and economic links and to support an ambitious new agreement.
____________________
Ladies and gentlemen
I think it worthwhile to address also our social, cultural and scientific
relations – for if we want true quality and depth in our relations,
it is essential that solid links between everyday people, and between
our public and private institutions, are nurtured.
In a sense, our social, cultural and scientific relations are a study
in inter-generational change.
It took nearly thirty years - from immediately after World War II,
through the embryonic commercial links developed in the 1950’s and
1960’s – to develop a platform for broad exchange.
This involved Japanese tourism, study and investment in Australia
– and for Australia’s part, investments in Japanese culture and language.
The intensity of activity was formally signified by a range of cultural
and scientific agreements, as well passing the Australia-Japan Foundation
Act in the Australian Parliament in 1976.
Today we stand on the cusp of further generational change, brought
about in many respects by external forces in the way of globalisation
and technological change.
Both of our economies and societies are in a state of change, as
we – and others - grapple with new technologies and new forms of exchange
– in short, the new economy.
There is fertile ground for new forms of cooperation in new economy
areas such as e-learning, nanotechnology and biotechnology, as well
as in more established areas such as health and the arts.
The task is to create, develop and nurture such links, and I am much
encouraged by the progress that has been made since the first Australia
Japan Conference.
Conclusion
Ladies and gentlemen
We have played an integral role in each other’s contemporary development,
spawning diverse links that have enriched us both.
From an Australian perspective – and I’m sure Japan’s as well - these
benefits have been openly acknowledged and appreciated for many years.
They are founded not just on a keen awareness of our shared interests,
but also strong pride about what we have achieved.
In the past two years, directed by our Prime Ministers and with your
help, we have embarked on a project to prepare our relationship for
the challenges of the future.
I think that as a result of the Australia Japan Conference process,
we are off to a very good start.
We have here today some of the foremost experts on the bilateral
relationship and its various aspects in both countries to continue
the process commenced at the Australia – Japan Conference for the
21st Century.
On this note, I should express my appreciation to those who have
already dedicated so much time to this process, particularly the two
co-Chairs, Mr Murofushi and Mr Ellis. My thanks also to our Japanese
hosts, who have worked assiduously in organising today’s conference.
Finally, I would like to thank participants from both countries for
your efforts, and wish you and your delegations all the best as you
go about ensuring that Australia and Japan continue to nurture the
vibrant and mutually rewarding friendship which has been built up
over many years.
I certainly look forward to hearing your views. Thank you.
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Local Date:
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