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DAVID SPEERS: Today Australia's Foreign Minister Stephen Smith is meeting his Russian counterpart in Moscow to discuss selling Australian uranium to Russia. A treaty to allow uranium sales was first proposed by the Howard Government three years ago. At the time, Labor was very concerned but, since coming to office, it's now on board with the idea.

I spoke to Foreign Minister Stephen Smith a little earlier, from Moscow.

Foreign Minister, Stephen Smith, thank you for joining us.

Can I first ask what will you be telling your Russian counterpart about Australia's willingness to sell uranium to Russia?

STEPHEN SMITH: Well, I'll indicate to Foreign Minister Lavrov that the Government has responded to the Australian Parliament Treaty Committee's report, that so far as the Government is concerned, there is no reason in principle why Australia and Russia should not move to ratification.

But obviously progressing ratification of the agreement is something that I want to have a discussion with Foreign Minister Lavrov about, and we will be meeting later this morning Moscow time.

The Government's response to the Parliament makes it clear that the Government doesn't see any reason in principle why we can't move to ratification to allow Australian uranium to be safely exported to Russia for civil nuclear purposes.

DAVID SPEERS: So what is holding up ratification? Do you need any more safeguards?

STEPHEN SMITH: No, I just want to have a conversation with Foreign Minister Lavrov about the process. Ratification, of course, is a technical process - both for Australia and for Russia. But we of course want to have that conversation in the midst of a very important time for nuclear non-proliferation and disarmament. We've just seen recently, for example, held in the United States, a Nuclear Security Summit that underlined the importance of all countries being very careful about the physical protection and security of nuclear materials.

Russia is very conscious of this. Russia indeed has volunteered to host the next Nuclear Security Summit. It's also been one of the first countries to move to ratify the Convention so far as physical protection of materials is concerned.

And we also have the Nuclear Non-Proliferation Treaty Review Conference occurring in the United States, in New York, early next month.

So I also want to have a general conversation with Foreign Minister Lavrov about non-proliferation and disarmament. Of course, in that context, we welcome very much the recent agreement between Russia and the United States for the so-called re-START agreement to reduce the number of deployable nuclear weapons and delivery systems that Russia and the United States have.

DAVID SPEERS: Well, India, as you know, will be watching this closely. They want to buy our uranium, and our uranium industry wants to sell. Is the government's position going to shift at all when it comes to India?

STEPHEN SMITH: Russia is of course a party to the Nuclear Non-Proliferation Treaty, and the Australian Government's position is well known and understood by India. We don't export uranium to a country that is not a party to the Nuclear Non-Proliferation Treaty. India's position is also well understood by Australia, which is India is not proposing to enter into the Nuclear Non-Proliferation Treaty.

So our approach is an approach which is policy driven by adherence to support for the Nuclear Non-proliferation Treaty.

We deal with these matters essentially country-by-country, case-by-case. Our policy approach is not an approach which identifies or singles out India. We export uranium to countries which are party to the Nuclear Non-Proliferation Treaty, and countries which also enter into bilateral safeguards agreement with us. And it is the bilateral safeguard agreement that has recently been the subject of Australian Parliamentary consideration between, of course, Australia and Russia.

DAVID SPEERS: Minister, just a couple of other issues. Flights have resumed there in Europe; there's a backlog to clear. Do you think authorities were too cautious in response to this issue with the volcanic ash?

STEPHEN SMITH: Today we've seen most of the European airways open. There are still restrictions in a couple of areas - Finland, for example, and parts of Scotland. There's also of course the prospect that further volcanic eruptions may see further restrictions, or indeed movements of the volcanic cloud may see further restrictions.

But this is an area where I think European regulators and also the airlines have proceeded very sensibly on the basis of one is better off being safe rather than sorry. That's certainly, for example, been Qantas' approach, which has in my view adopted a very responsible approach to these matters.

When it comes to airline safety or transport safety generally, in the end it is the safety and security of the travelling public that has to be put first.

And whilst there's been substantial inconvenience, not just to Australians but to people from very many countries, it's been inconvenience rather than life threatening.

So regulators have to proceed on the basis of safety first. That's what Australian air traffic regulators do and that's obviously a very sensible approach.

DAVID SPEERS: And, Minister, just finally, another issue back home. BHP Billiton has acknowledged that it is - that some of its staff may have been involved in possible corruption. It's not giving any details as to exactly where but this is flowing from an investigation from the US Securities and Exchange Commission. Of course it follows the conviction of - on corruption charges of Rio Tinto workers including Stern Hu in China.

What is going on here? Do you have concerns about big Australian miners and corruption in some of their overseas operations?

STEPHEN SMITH: Well, what BHP has done here and they've made public is that they have provided to relevant regulators, including the United States Security and Exchange Commission, including ASIC our own regulator, information relating to possible bribery of government officials.

Other than indicating it's not related to China, they have not made public which country or countries they are referring to.

BHP have assured the Australian regulator, ASIC, that they have at all times disclosed relevant material to the market. And it's important, I think, to make the point that of course bribery of Government officials is an offence in Australia, but bribery by Australian companies or Australians of government officials in other countries is also an offence under Australian law.

I'm not in a position to indicate to you any more than that which BHP Billiton has made public. But BHP Billiton are assuring Australian regulators and departments they have informed the market appropriately at all times. BHP, as a responsible Australian company, of course doesn't condone bribery or corruption, nor should it, and that is certainly the very strong position of the Australian Government. We do not condone the bribing of government officials, either in Australia or elsewhere.

DAVID SPEERS: But is it time for the Government to take further action, more initiative on this, and hold some sort of new inquiry into what these big mining companies are doing overseas?

STEPHEN SMITH: I don't think that is a sensible or appropriate response for the Government to take.

Australian law has extraterritorial effect. An Australian or an Australian company which engages in the bribing of government officials overseas commits an offence against Australian law. And so the Australian legal position is quite clear.

We also proceed on the basis that we expect Australian companies, and I don't in any way single out BHP, we expect Australian companies to conduct themselves wherever they operate in accordance with Australian law, in accordance with the law of the land in which they are operating if they are operating in another country, and also to conduct themselves as good corporate citizens. That is certainly the benchmark which BHP Billiton sets for itself, but it's also the benchmark that very many Australian companies set for themselves, and that is appropriate.

But I don't believe that there's anything that I've seen which would cause the Australian Government to move to an inquiry of the nature that you've suggested.

DAVID SPEERS: Alright. Foreign Minister Stephen Smith, we will have to leave it there, but thank you for joining us from Moscow today.

STEPHEN SMITH: Thank you very much.

[ENDS]

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