E&OE
8 October 2008
Interview, AM Agenda, Sky News
COMPERE: Good morning and welcome to AM Agenda, Foreign Minister Stephen Smith. Mr Smith, thanks for your time.
The Reserve Bank's been praised for its decisive move yesterday in cutting the official cash rate by a full one per cent. Do you think it does set a global example, that move?
STEPHEN SMITH: Well, certainly, it's very decisive. We think it'll be very helpful. Not just in underlining confidence in the Australian financial services industry and system, but also in giving some relief to working families. So we think it's a decisive move, we welcome it very much and it goes right to the heart of trying to underpin confidence in the Australian system and other countries, I'm sure, will look to that example.
We've got very good prudential and regulatory arrangements, and that has held us in good store in the past, and we certainly think it'll help us get through this particular international crisis.
COMPERE: Talking to your counterparts, your colleagues in recent days, it's certainly a crisis that hasn't left any corner of the world spared, has it?
SMITH: No, I think that's right. When I first became Foreign Minister, when I was speaking to my foreign ministerial colleagues, the international economic issue that most often was spoken about was inflation. And that was one of the reasons why the Government moved in its first Budget to address inflation as a very serious issue, putting upward pressure on interest rates. But now, both in New York recently and generally, when I'm speaking with my counterparts, it's the international financial crisis that is uppermost in their minds. And the need to not just in terms of individual countries, but the world itself get through that difficulty. And that's why, generally, there's been a lot of strong support for the financial package in the United States to underpin the United States' financial system.
COMPERE: Will our big customers, the likes of China and India, do you think that they will hold up okay?
SMITH: Well, it's hard, obviously, to be precise about particular commodities. But generally, there's been strong growth in China for a long period of time. The old adage with the Australian economy used to be that if the United States sneezed Australia got a cold. We're much better placed these days than we used to be in the past because of not just growth in China, but also growth in the ASEAN economies generally, and also, growth in India. So we think we're well placed because of those export markets that we have.
COMPERE: Okay, just moving on to a very different issue now, the sad case - the disappearance of Britt Lapthorne, the backpacker in Croatia. Has the Government done enough in support of the family? The parents have repeatedly said they don't think you have.
SMITH: Well, for the parents, of course, it's their worst nightmare. And I think every Australian feels for the terrible anguish that they're in. And I've seen all of the comments that the family have made. And, frankly, I think the family is entitled in these circumstances to say whatever they want to say.
Our responsibility is to try and make sure we're doing everything that we can, and we believe that's the case.
Firstly, if I can indicate, that I spoke to our Ambassador overnight. It'll probably take at least another 24 hours before there's a scientific analysis of the body that was found in Dubrovnik waters in the last couple of days, and that of course adds greater anguish to the family.
But we've got an AFP officer on the ground. We also have consular officers in Dubrovnik itself assisting the family. So we believe we're doing everything we can with the Croatian authorities.
But it's just a terrible nightmare for the family, and I think all Australians feel for them. Everyone out there who has got a daughter, a sister, a girlfriend or a wife, and it's just a terrible situation and they have nothing but the sympathy of all Australians.
COMPERE: Apparently, the Federal Police officer only met the father overnight. Is that good enough though? Shouldn't have been one of his priorities to make contact earlier?
SMITH: Well, the Federal Police officer's priority in the first instance was to satisfy himself that we had a first class investigation occurring, and the Croatian authorities were doing everything that they could. He satisfied himself of that.
Initially, the communication line was through Department of Foreign Affairs and Trade officials, through consular officials, but in the last 24 hours there's been a meeting between our officials, and the AFP officer, and Croatian police officials and Mr Lapthorne, and it's been agreed that from here on in, there'll be at least daily meetings and communication between the AFP and the Croatian police authorities. That'll be in addition to the regular consular assistance that we're giving.
So, in terms of communications, we think that will help. But we have a very extensive Croatian police investigation. Over 100 police officers involved. Our AFP officer has satisfied himself that anything that can be done is being done. And we just hope that there's some breakthrough which can bring this terrible anguish, so far as the family is concerned, to a conclusion.
COMPERE: Yeah, we certainly do all hope that that is the case, Mr Smith.
On another very different matter, we've got a lot of things to get across today. But the second presidential debate scheduled to take place in the next few hours, it looks increasingly like the Rudd Government will be dealing with a Democratic administration if the polls are anything to go by.
SMITH: Well, we'll wait until the verdict of the American people. It's great for those of us like you and me, who are interested in politics, it's a great spectacle, it's a great thing to observe. But so far as the Government is concerned, we will deal with whichever Administration the American people throw up, whether it's a Republican Administration or a Democratic Administration, whether it's a President Obama or a President McCain.
And underpinning, of course, that Australian Government to US Administration relationship is our longstanding, enduring Australia-US alliance. So we'll deal with whoever the American people vote in, in November, with the new President's Administration, of course, taking up office formally in January of next year.
COMPERE: Sarah Palin, the Vice Presidential candidate, has been attacking Obama for links to terrorist groups, specifically Weatherman back in the '60s. Does it show that the Republicans are getting desperate with their polls looking so bad?
SMITH: Well, I don't want to inveigle myself into commenting upon the campaign itself. That's something that I'll leave to others, including commentators like you. Suffice to say, that we'll observe, and I'll observe, the election with a great deal of interest and deal with whichever administration the American people vote for in November of this year.
COMPERE: Okay, just two quick issues before I let you go. The first, in Thailand, the situation continues to be very unstable in Bangkok. Two hundred and eighty people injured, two police shot in the protests at the Thai Parliament. What's the latest you're hearing?
SMITH: Well again it’s very concerning. I spoke to our Ambassador in Bangkok late last night. Firstly, we urge all Australians in Bangkok and in Thailand to keep away from any demonstrations. That's very important. Secondly, we urge all parties to seek to resolve their differences and this dispute peacefully and lawfully. And we certainly hope that that is in accordance with Thailand's democratic and parliamentary and political processes.
But we have become increasingly concerned. Not just about the violence in demonstrations, but also worrying about ongoing political stability. So we certainly hope that these matters can be resolved peacefully in the coming days.
COMPERE: Okay. Just finally, you fly out to the Philippines later today. What's the nature of the trip?
SMITH: Well, we're having the second Philippines-Australia Ministerial Meeting. My colleague, Simon Crean, the Trade Minister, is joining me in Manila. The Philippines of course is a very important regional friendship and partnership with Australia. We have a good trading relationship with the Philippines, but we think we can do more and better.
We're also a good development assistance partner with the Philippines, particularly in education, and we're strong supporters of the Mindanao peace process. They, of course, have difficulties in the south of the Philippines with terrorist activity, and there's a peace process in Mindanao which we strongly support.
It's a very important relationship, but it's one that Simon Crean and I think we can take to a better level, including in trade and investment, which is at a good level now, but we think that we can do even better, particularly in the minerals, and petroleum and resources area, and also in agriculture.
COMPERE: Foreign Minister Stephen Smith, thanks for your time.
SMITH: Thanks very much.
[Ends]
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