Distinguished guests, [Minister for Science and Technology, Modi Sandberg and Mr Gurion Meltzer, Chairman Israel-Australia Chamber of Commerce], ladies and gentlemen

It is a great pleasure to be here today speaking before you as a guest of the Israel-Australia Chamber of Commerce.

Today I would like to share with you some thoughts on Australia's relationship with Israel.

This occasion also provides an opportunity to outline to you the Australian Government's commitment to a practical, outcomes-oriented foreign policy.

Our approach has enabled us to achieve significant results for the people of Australia and elsewhere, often in difficult circumstances.

It is also an approach which reflects Australia's values and attributes as a nation

Bilateral Trade and Economic Relationship

Of course, our relationship with Israel is one that perfectly demonstrates what I have just outlined.

Australia has been a staunch friend and partner of Israel for over 50 years.

We have a warm friendship based on a profound historic sympathy and respect for the Jewish people.

At the heart of our relationship are the bonds of family and friendship between our two peoples.

Australia is immensely proud of its active Jewish community -a community which has made a significant contribution to Australian society

Institutions such as this Chamber and the Australia-Israel Chamber of Commerce, your Australian counterpart, are fundamental to the relationship.

The Australia-Israel Chamber of Commerce is one of our most active Chambers in Australia -demonstrated by the impressive business delegations it is able to put together.

There is no question that the two chambers of commerce have contributed positively to our growing economic relationship.

In 1949-50 Australia exported $319,442 worth of mainly food items while imports from Israel were valued at just $32,490.

In those days we were the ones with the surplus.

Today the two-way trade is worth almost A$700 million (2002-2003 data), a lot of it manufactures and telecommunications.

The Australian Government supports the ambitions of both Chambers to develop the exciting potential between us, particularly in the trade in ideas and new technologies

With no shortage of inventiveness and creativity, or entrepreneurial spirit among your members, we can be confident of further growth in our trade.

Australia has a lot to offer as a trade and economic partner.

It is enjoying the longest unbroken economic boom since the 1960s

and is expected to grow by 3.75 in 2003-2004 -and faster than the OECD average in 2003, 2004 and 2005.

Our economic performance is based on sound reforms -no longer do we have the inefficiencies of high tariffs, fixed exchange rates and financial sector over-regulation.

We have undertaken significant reform of the labour market and introduced a modern, internationally competitive taxation system.

And the Government has ensured a liberal and transparent foreign investment regime operates to the benefit of Australians and investors.

There is no doubt we have created and maintained an attractive and highly competitive business and investment environment.

Indeed, it is gratifying to note that Australia's growth competitiveness ranking was seventh out of the 80 countries assessed as part of the World Economic Forum's 2002-2003 World Competitiveness Report.

And the World Bank report, Doing Business in 2004, ranked Australia first out of 133 countries for best practice in business regulation.

Added to these strengths are Australia's strategic links to Asian markets.

The Government has enhanced these links through the most ambitious approach to free trade of any Australian Government.

We have concluded free trade agreements with Singapore and Thailand

These measures, coupled with Australia's strong Asian skills and Australia's famous lifestyle, make it a competitive base from which to pursue your business interests in the Asia-Pacific.

Australian Foreign Policy -Taking Action

Ladies and gentlemen

The Australian Government has applied a similar outcomes focused approach to its foreign policy as it has to its economic policy.

In the face of grave challenges to global peace and prosperity, inaction amounts to provocative weakness.

The threats to security and prosperity from terrorism, the spread of weapons of mass destruction and weak and vulnerable states are challenges we must face with action.

Israel has for too long been plagued by the horrific and evil attacks of terrorism.

But the events of September 11 2001 and the Bali bombings in October 2002 showed that no one and no region is immune.

The awful attacks of last year in Israel, Istanbul and Riyadh leave us with no doubt as to the appalling, indiscriminate death and suffering terrorism inflicts.

Australia has been at the forefront of efforts to counter the terrorists'evil

We helped to disrupt al-Qaeda and its terrorist networks through military action in Afghanistan.

And we are just as firm in our resolve to address the terrorist threats persisting in our own region.

We have built a network of nine bilateral counter terrorism MOUs with key partners in our region -to good effect.

Our MOU with Indonesia underpinned the excellent cooperation after the Bali bombings.

There have been 36 arrests to date in connection with the bombings, of whom 29 have been successfully tried and sentenced.

This is an impressive result by any reckoning, and we commend the Indonesian Government for its energy and vigour in pursuit of justice for the perpetrators.

Beyond Indonesia, Australia's targeted capacity building programs are helping countries in the region strengthen their response to terrorism.

Across the region, over 200 suspected members and associates of the Jema'ah Islamyah terrorist group have been detained.

We will continue these efforts early next month when I and my Indonesian counterpart, Dr Hassan Wirajuda, host a regional ministerial meeting on counter terrorism in Bali.

We can look to these achievements and know that terrorists have been frustrated in their work because of our collective efforts.

But al-Qaeda, Jema'ah Islamiyah and other terrorist groups retain a frightening capacity to inflict terror.

We must all remain vigilant against this threat and firm in our commitment to counter it by all available means.

Weapons of Mass Destruction

The proliferation of weapons of mass destruction, like terrorism, is a major threat to global security and prosperity.

And, like terrorism, proliferation of WMD requires international cooperation if our efforts to combat it are to be effective.

Terrorism itself has made this even more urgent -we know terrorists have sought to acquire weapons of mass destruction.

And we have heard chilling statements from Osama bin Laden that he would use such weapons if he could access them.

Australia has been an active and consistent supporter of multilateral non-proliferation regimes

But, as we showed with respect to Iraq, while these multilateral regimes remain critical, they need to be reinforced by effective action to address the threat of WMD proliferation.

To this end, Australia has sought to cut the supply of WMD-related materials and missiles to rogue states through effective export and transhipment controls.

We are a driving force in the Proliferation Security Initiative, which is developing practical ways to impede illicit trade in WMD, including through maritime, air and ground interdiction.

Australia's foreign policy supports broader efforts to ensure Iran and North Korea know their interests lie squarely in heeding the international community's concerns about proliferation.

Iran, whose nuclear program has caused grave concern to many in Israel, has recently agreed to cooperate fully with the IAEA.

Australia welcomes this positive outcome and looks to Iran to follow through on its undertakings.

North Korea can be in no doubt that it risks even further isolation if it pursues a nuclear weapons program.

Australia strongly urges North Korea back to a second round of six party talks.

Libya's agreement to forsake weapons of mass destruction and allow weapons inspectors from international organisations into the country is welcome.

Others, like Syria, are taking more care to review their approach in light of these developments

Effective action against WMD proliferation does, it would seem, deliver real results.

Achieving true regional stability and prosperity

Since September 11 2001 the world has come to understand more comprehensively the threats that weak and vulnerable states present to global security and prosperity.

Such states can be used by terrorists as havens or staging points -as Afghanistan was by al-Qaeda -or by money launderers or people smuggling other humans, drugs or weapons.

These states can threaten others with the environmental degradation or financial disasters because of their weak institutions and poor governance.

Australia is helping neighbouring states to build sound institutions and governance regimes

Australia's approach has already posted some early results on the board.

Our leading role in the assistance mission to the Solomon Islands to our north east in the Pacific is improving the security and economic outlook for that country.

We are also working in cooperation with Papua New Guinea to help secure its future and achieve its national goals.

And we continue to assist neighbouring East Timor.

Iraq

Ladies and gentlemen

Events in Iraq have of course been a significant focus for Australia, and for Israel.

Australia is proud to have contributed to the campaign to remove the threats to global and regional security posed by Saddam's regime.

The coalition's action against Saddam Hussein may not have been universally popular.

But it was the right -and only -course of action that would ensure Saddam Hussein could never use weapons of mass destruction again.

Saddam's regime was, of course, a particular threat to the people of Israel -it fired its missiles at Tel Aviv and rewarded Palestinian suicide bombings.

Coalition action in Iraq has sent a clear message to would be proliferators about the resolve of the international community to deal with the WMD threat.

Crucially, we have delivered the Iraqi people from Saddam's tyranny; from the torture chambers and mass graves.

The Iraqi people are now free to choose and build their political institutions

Terrorists and remnants of the former regime may continue to do what they can to disrupt these efforts to rebuild the nation.

But they will inevitably fail, for the international community is determined to meet their challenge with strength and resolve.

We must -and will -stay the course in Iraq.

The Middle East

Ladies and gentlemen

We remain hopeful that the new strategic environment created by the coalition's actions in Iraq will lead to greater peace and security for you and for all the peoples of the region.

Australia has consistently supported international efforts to resolve the Israel-Palestine conflict.

But -as Israel knows -Australia sees no value in wasting the time and energy of the UN General Assembly with ultimately unproductive resolutions.

Australia is a strong supporter of the Roadmap to Middle East peace as the way forward.

The Roadmap sets out the necessary steps for peaceful resolution of the conflict and the realisation of two states -Israel and Palestine -living side by side in peace.

We urge both parties to get back on the Roadmap without delay -to take the necessary actions required by the Roadmap -with courage and resolve.

Our support for the Roadmap to Middle East peace does not qualify our support for Israel.

The best long-term guarantee of Israel's security is a viable, democratic Palestinian state.

Statehood is also the legitimate aspiration of the Palestinian people.

But to realise it the Palestinians must act to end the terror of the suicide/homicide bombers.

The Roadmap leaves no doubt about their obligation to do so.

Australia calls on Israel to play its part to make the Roadmap work by meeting all its obligations with regard to the settlements.

We welcome Prime Minister Sharon's recent reiteration of his determination to do so.

Australia will remain a strong supporter of the cause for peace and will continue to look for ways we can support the Roadmap.

Conclusion

Ladies and gentlemen

It is good to be back in Israel and among close friends.

Australia and Israel may lie on opposite sides of the globe, but our relationship is far closer.

We share your hopes and aspirationsand your anguish at the loss of loved ones at the hands of terrorists.

Above all, we admire the strength and courage of Israelisfor these are attributes Australians see in ourselves.

Australians share the hopes and aspirations of Israelis for a better, secure and prosperous future

and we are prepared to stand by our friends, do what we can, to ensure we reach this goal.