Australian Commonwealth Coat of Arms

E&OE

8 October 2008

Press Conference, Sydney

STEPHEN SMITH: Later this morning I'll leave for the Philippines for the second of the Philippines-Australia Ministerial Meetings, and I'll be joined in Manila by the Minister for Trade, my colleague Simon Crean. We'll conduct the Philippines-Australia Ministerial Meeting with our counterparts - Foreign Secretary Romulo and Trade Secretary Favila.

This is the second of the Philippines Australia Ministerial Meetings. The first one was held in 2005. It reflects the fact that Australia and the Philippines are longstanding, good regional friends and partners. We have a good trade and investment relationship with the Philippines, but Simon Crean and I and the Government believe that we can take that to a much higher level.

Currently, our two way trade between Australia and the Philippines is about $2.5 billion. Australian investment in the Philippines has increased substantially over the last half dozen years, and there is now over $1.5 billion of Australian investment in the Philippines. We believe that trading relationship will be enhanced by the Australia-New Zealand-ASEAN Free Trade Agreement, where Australia and the Philippines work closely together. But in addition to our trading relationship, we also have very strong and close defence, security and counter-terrorism arrangements with the Philippines. Indeed, Australia is the Philippines’ second-closest defence and security partner.

We're also strong supporters of the Mindanao peace process, and continue to urge the Philippines to apply itself to that peace process in the south of the Philippines.

So far as development assistance is concerned, Australia in recent years has substantially increased its development assistance. Our development assistance to the Philippines is now over $110 million, and a large proportion of that goes to rural development, but also to education and human security.

We are strong supporters, with the Philippines, of the regional interfaith dialogue, and recently at the United Nations, I indicated our desire to increase or upgrade our involvement in the United Nations Ministerial Meeting on Interfaith Dialogue, which is chaired by the Philippines, from observer status to full membership status.

So we work very closely with the Philippines on interfaith dialogue matters within our region and internationally. We also work very closely with the Philippines in regional and international arrangements, whether it's ASEAN, whether it's the ASEAN Regional Forum, East Asia Summit, or in trading arrangements whether it's APEC or the WTO. We work closely with the Philippines in those regional international arrangements. But we believe that our relationship with the Philippines can go to an even higher level.

We think there is significant potential for further trade and investment, particularly in the minerals resources area, but also in agriculture and agribusiness. So Mr Crean and I look very much forward to formally conducting the Ministerial meeting.

We'll also be meeting with President Arroyo, underlining the strength of the relationship between our two countries. But also making the point that we believe that across the board, we can take the relationship to a higher level.

If I can just make some remarks about the situation in Thailand. I spoke to our Ambassador overnight. We are of course concerned that protests in Thailand appear to have become increasingly more violent, and so there are a range of points I'll make.

Firstly, we urge Australians in Bangkok or Thailand to avoid demonstrations. There are always a large number of Australian visitors and tourists to Thailand. And so we urge them to take special care, but in particular to avoid any gatherings or demonstrations.

We certainly hope that the matters can be resolved peacefully and lawfully between the Government and the protesters. And we certainly urge upon all sides, firstly, restraint, but secondly, the peaceful and lawful resolution of these political differences. And we certainly hope that Thailand's democratic and parliamentary and political processes are respected, and I make the point in passing that the army chief has indicated that he sees no role for the army in these matters, in terms of a resolution; wanting to see a political resolution, a democratic resolution, and a parliamentary resolution to these difficulties in Thailand.

Finally, can I make some remarks on the Lapthorne case.

Again, can I just personally indicate to the family how the thoughts of all Australians are with them. This is a terrible nightmare for them. Everyone out there has a daughter, a sister, a girlfriend, or a wife. And the anguish that they're going through is just terrible, and they have the sympathy of all Australians.

As you would be aware, in the last couple of days, a body was discovered, effectively, in Dubrovnik Harbour. Can I indicate that it will be at least, on the advice I have, 24 hours and possibly longer, before there is any definitive scientific identification or autopsy report made available by the Croatian authorities.

I spoke to our Ambassador last night. I've been in regular contact with her.

The advice I received overnight was that it will be at least 24 hours and possibly longer before a definitive scientific analysis is made available, and we simply await the Croatian authorities work in this respect.

At any given time, there are a million Australians overseas. And currently, we have nearly 50 Australians who are missing, registered as missing overseas. And so the terrible anguish that the Lapthorne family is going through is also a terrible reminder to the other 50 families who have loved ones missing overseas.

I've seen the remarks that the Lapthorne family have made, and can I make this point: given the terrible anguish that the family find themselves in, I think the family are entitled to make whatever points they want to make, to make whatever comments they want to make.

It's my responsibility and the Government's responsibility to ensure that the Government is doing everything it can to assist the family. And we've been doing that by consular assistance in Dubrovnik in Croatia. We have two officers in Dubrovnik rendering consular assistance to Mr Lapthorne and his son.

In addition, we obtained the agreement of the Croatian authorities to send an AFP officer to observe and assist. And the advice of the AFP officer is that the Croatian authorities are conducting an exhaustive investigation and are leaving no stone unturned to try and resolve the case.

In the last 24 hours, it's been agreed that there will be at least daily meetings and briefings between Mr Lapthorne, the AFP officer, and the Croatian police authorities and this will ensure that the lines of communication are good so far as the Lapthorne family is concerned. Until that agreement, information was being relayed via our consular officers of the Department of Foreign Affairs and Trade. It's been agreed between the family, our Foreign Affairs officers, the AFP and Croatian police authorities that in the future there will be regular daily briefings between the AFP, the Croatian police authorities and the Lapthorne family.

The Croatians have invested significant resources in this investigation with over 100 Croatian police and emergency officers involved in the investigation, which is being overseen by a senior detective from Zagreb. But we will continue to do everything that we can to render assistance to the Lapthorne family, and do everything we can to seek to resolve this case as quickly as we can. It's a terrible circumstance, and our hearts go out, and the hearts of all Australians go out to the family at this, at this terrible time.

I'm happy to respond to your questions on those, or other issues.

QUESTION: Back to your trip today - can you give us a bit of an idea of what impact the global economic crisis has had on [inaudible], and what impact that may have on your plans [inaudible]?

SMITH: Well, when I became Foreign Minister at the end of last year, in the initial period, whenever I was having a conversation with my counterparts about international economic matters they tended to focus on inflation, just as, when we came to office our most pressing problem was inflation. It was the case that throughout the region, particularly the ASEAN countries, that inflation was an issue or a difficulty. Which is one of the reasons why the Government moved very quickly to reduce or seek to reduce inflationary pressures in the economy so as to ensure no additional pressures on interest rates.

It's quite clear now that the international financial crisis is the key international economic issue. And I will be expecting, as I did recently in New York with other counterparts, to have that as a central part of the conversation that I have with Foreign Secretary Romulo, and also expect that that will be a central part of the conversation that Trade Minister Crean has with Trade Secretary Favila.

The ASEAN economies, including the Philippines economy, of course in the last decade or so have been through the ASEAN economic or financial crisis. And so just as Australia is, in our view, well placed to buffer the crisis, the international crisis, so the ASEAN economies and the Philippines economy are much better placed now than they were a decade or a decade and a half ago to respond to the challenge.

But there is no doubt that we are looking now at a period of slower international economic growth, and that's no doubt one of the reasons why the Reserve yesterday reduced interest rates by a percentage point, which was a very welcome move so far as the Government's view is concerned.

QUESTION: Is the regional issue of the violence in Thailand likely to have come up in any of your discussions whilst in the Philippines?

SMITH: It may come up in passing because Thailand of course currently chair ASEAN. They are the Chair of ASEAN effectively for the next 18 months. And, it is of concern.

Of course, people are entitled to demonstrate and put a political point of view, but we've become increasingly concerned over the last 24 to 36 hours that the demonstrations have turned violent. Again I urge all Australians if they are in Bangkok to avoid demonstrations, and we urge all parties in Thailand to exercise restraint, and to resolve these matters peacefully and lawfully in accordance with Thailand's political and democratic systems and structures.

QUESTION: And, is there any update on the situation in Sri Lanka, given that there's been recent violence there?

SMITH: Well there was a terrible suicide bombing over the weekend, where Major General Perera and his wife were killed. And we condemn that absolutely. But we urge both parties, both the Government and the Tamil Tigers, the LTTE, to respect human rights, to observe international law, and to conduct themselves in a manner in which civilian casualties are eliminated and are not a feature.

We have become increasingly concerned about the breakdown of the peace process in Sri Lanka, which broke down some time ago; increasingly concerned about the level of violence, particularly in the north; and increasingly concerned about breaches of human rights across the board.

We call on both parties, both the Government and the Tamil Tigers, to respect international law; to respect human rights; to engage again in the peace process, and to seek to resolve these very difficult issues peacefully and not through the force of arms or the use of bombs. Thank you.

[Ends]

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