Australian Commonwealth Coat of Arms

E&OE

9 October 2008

Interview, ABC PM Program

MARK COLVIN: The Foreign Affairs Minister Stephen Smith has accused Fiji's leader Frank Bainimarama of a lack of honour, failing to hold democratic elections.Mr Smith says he's not worried that a High Court decision there, legitimising the 2006 military takeover, will cement the government's right to stay in office. Australia's Foreign Minister also expressed his continuing concern at unrest in Thailand, but he's more optimistic about Asia's ability to weather the financial crisis.

The Foreign Minister told Lyndal Curtis that as well as trade he and the Philippines Ministers have also been talking about help to stem terrorist activities in the country's south.

STEPHEN SMITH: Australia was disappointed that the peace process has effectively been put on hold in recent times. We had a full briefing from the Foreign Secretary and his colleagues. The Philippines Government remains determined to get the peace process back on track. One of the things that Australia's been doing to help is that about half of our development assistance goes to Mindanao in the south to help on basic education and health, and it's much needed in that disadvantaged area.

But the Government here is determined to try and get a long-term enduring political solution to the difficulties in the south, and we obviously support that.

LYNDAL CURTIS: You had expressed concern about the continuing unrest in Thailand and political stability in that country. Have your concerns eased at all in the last couple of days?

SMITH: Well, we remain very concerned about Thailand. Certainly we continue to advise Australians not to go anywhere near demonstrations or gatherings in Bangkok. We certainly want to see the political difficulties in Thailand resolved in a peaceful and lawful manner. And we regret very much the violence which has occurred, and we want to ensure that Thailand returns to a stable political situation but utilises its political and democratic processes in doing so.

CURTIS: In Fiji the High Court there has ruled that the 2006 military coup is legal. Does that decision legitimise the Government?

SMITH: Well no, because I think Mr Qarase has made it clear that he's contemplating an appeal to the Supreme Court. So that doesn't disturb the fundamental point which is Commodore Bainimarama gave a faithful undertaking to the Pacific Island leaders at the Pacific Island Forum in Tonga in October of 2007 that he would have an election by the end of March next year.

Whatever he holds up as his excuse or his reason, it's a breach of faith and it's a lack of honour. He looked at his colleagues, the leaders of the Pacific Forum, in the eye and said he would have an election, and he's breaking that faithful undertaking if he doesn't.

We continue to be of the view that the only thing stopping an election in Fiji is political will.

CURTIS: Just finally Minister, you're in Asia, the Asian countries' performance during the global financial crisis has been patchy. China is holding up relatively well but stock markets in other Asian nations are falling.

There hasn't been the sort of coordinated rescue packages that we've seen in the US or Europe. Do you think there will be a need for one in Asia? SMITH: Well, time will tell. I think there's no doubt, just as Australia will see potential for reduced economic growth as a result of a reduction of economic growth internationally, there's no doubt that there will be adverse consequences.

But I think just as Australia has been very well placed because of structural reforms and changes in prudential requirements that it has effected in the past, so will a lot of the ASEAN nations will benefit from some of the structural changes made in the aftermath of the Asian financial crisis.

COLVIN: The Foreign Affairs Minister Stephen Smith on a rather scratchy line from the Philippines to Lyndal Curtis.

[Ends]

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