Australian Commonwealth Coat of Arms

E&OE

23 July 2008

Media Q&A Session, Singapore

QUESTION: On Australia’s proposal for an Asia Pacific Community, you said in your speech just now (luncheon address to the Australian Chamber of Commerce Singapore), that none of the current architecture is comprehensive in membership, scope or purpose. I would like to know the reaction from your ASEAN colleagues. I don’t think they’ll be very happy with those comments.

STEPHEN SMITH: Well, it’s a statement of fact. The East Asia Summit, for example, doesn’t include the United States. APEC doesn’t include India. So, there’s no one piece of architecture where all of the interested parties are in the room at the same time talking both about economic and strategic and security matters.

But I’ve been very pleased with the response I’ve had from the colleagues that I’ve spoke to, both ASEAN and ASEAN-related colleagues. Largely because our intention here is to start a conversation, to start a dialogue about where we think the regional architecture might end up.

One of two things will occur. Either out of the existing architecture there will be some evolution or there will be the creation of a new body. And, the timetable that the Prime Minster, the Australian Prime Minister, referred to was essentially 2020. So we’re not talking about tomorrow here.

I mean when you go back to the history of ASEAN itself, in the 1960s a handful of nations who then spoke about or envisaged or contemplated ASEAN with the economic horsepower that it has now? The East Asia Summit, ASEAN plus the 10 plus six, or even the 10 plus three, or the ASEAN Regional Forum where we’ve got more than 20, 25 foreign ministers engaged in a conversation. So these things have a natural evolution and in the formal ASEAN Australia Post Ministerial dialogue, which we had this morning, very much of the conversation was that this is an issue, a conversation, a dialogue that all of us are looking forward to having

QUESTION: So what’s the next step?

SMITH: We’ve indicated the importance of a Prime Ministerial Envoy, former Ambassador Woolcott, who’s also a former head of our Department of Foreign Affairs and Trade. And after I’ve spoken variously to the colleagues here, I spoke about it yesterday at the East Asia Summit, in the closed sessions, I spoke about it today in the Post Ministerial dialogue and speaking bilaterally when I’m meeting ministers. Our Special Envoy, our Prime Ministerial Envoy will engage in further consultations as well. That’ll probably start September, October around there, and so that’s the next phase of our consultations and after that, of course, is the East Asia Summit in Bangkok in the middle of December.

QUESTION: It was reported that the Malaysians were very cool on the idea. Did you get any negative reaction?

SMITH: I haven’t had any negative reaction to the notion that we should have conversations about it.

QUESTION: Because of the notion of the Asia Pacific Community…

SMITH: I haven’t had any negative reaction about the notion that there is an issue about regional architecture. Regional architecture evolves. Australia has put forward an initiative, which is, let’s have a dialogue, let’s start a conversation. I haven’t had any adverse reaction to that. I’ve seen a number of commentators out there in newspapers or periodicals expressing their view that they don’t agree with the suggestions or they don’t agree with the announcements; that’s entirely a matter for them. For ourselves, we’re happy, whatever eventuates, we’re happy to have that conversation.

QUESTION: But can it work without the involvement of key players like say Malaysia and Indonesia?

SMITH: Well, neither Malaysia nor Indonesia have not told me that they’re not prepared to have the conversations.

QUESTION: But they’ve rebuffed it?

SMITH: Well, they haven’t said that they’re not prepared to have the conversation. Meanwhile back at the ranch, we continue to work very closely with ASEAN and all the ASEAN-related pieces of regional architecture and also APEC. So it’s not as if everything stops pending consideration of an idea. We’re very pleased with our engagement in and with ASEAN. I made the point today that we think, that the new Australian Government thinks, we can make that an even more effective engagement.

We’re very pleased with the East Asia Summit. We think the East Asia Summit serves Australia’s and the region’s interest well. It’s the same with the ASEAN Regional Forum. It’s not as if these things will stop. We have simply put out an initiative that asks if - as inextricably appears to be the case, economic and strategic and political influence is moving to the Asia-Pacific region in the course of this century, the rise of China, the rise of India, the under-appreciated rise of the combined ASEAN economics, architecture that started in the 60s and has been developed through the 70s and 80s and more recently - the best fit or the best suit for the year 2020? To me it's not an unreasonable question to ask, which is why I haven’t heard anyone out there saying: well that’s not a question we’re not proposed to engage in conversation about.

QUESTION: Do you have a target date for when do you want to launch this?

SMITH: Well, when the Prime Minister launched his initiative, he was talking about regional architecture for 2020, which is very much a long haul view. A long-term view of where Australia and the region might want to be.

QUESTION: When do you expect to get everyone onboard?

SMITH: Well, where are we now? It's 2008, at the first ASEAN-related forum that has been since the Prime Minister raised the initiative. This is a long-term thing.

QUESTION: Minister, I just want to ask you, is Australia anticipating a totally new entity, or why can’t you just expand APEC to include India?

SMITH: Well, it could. But as I’ve said earlier, one or two things will occur here. It'll either be the creation of a new institution or an evolution from an existing institution. What might that existing institution be? It might be APEC, it might be the East Asia Summit, it might be ASEAN Regional Forum. So it's one or two things that will occur, evolution or the creation of a new body. And, I don’t have, the Australian Government doesn’t have a predetermined view as to what that evolution might be.

QUESTION: Minister, Australia has recently received a flood of foreign investment applications in the mining industry, many from Chinese-backed firms. And, recently the Australian Treasurer said that they would be taking a closer look at the applications. Have you seen a delay in the processing and how is this affecting Australia's relationship with China?

SMITH: When it comes to foreign investment, Australia encourages overseas capital investment in Australia. We have a non-discriminatory public policy approach. It is open to the Treasurer from time to time if he chooses to reject an investment on a basis that it is contrary to Australia’s national interest. It is the case that we have a number of investments, a number of proposed investments, either before the Foreign Investment Review Board or before the Treasurer. They are matters for his portfolio and you need to ask him about that, not me.

[Ends]

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