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Interviewer: [inaudible]

Minister Smith: Shanghai is the most important centre so far as trade and commerce and investment between Australia and China is concerned. All of these things led us to want to make a significant investment. As well, of course, even though we all had difficulties with the global financial crisis, we have managed our economy well and avoided a recession of our own. But we're very pleased to make such an investment, underlining as it does the strength of the relationship. We are very pleased that to date it's been popular with people of China and also with international visitors.

Interviewer: And in the Australian Pavilion, I noticed that many contents are cartoons. Is that a coincidence or intentional to attract to more and more young people or teenagers to go to Australia?

Minister Smith: We welcome young people to come to Australia. We have, for example, over a 150,000 young Chinese students enrolled and studying in Australia. Australia is now very popular destination for young Chinese tourists. But in addition to showing that it's attractive place to visit, [the Pavilion] also reflects the strength of the quality life in Australia.

The fact that family can raise their children in a peaceful and secure environment, one which you can also enjoy whether it's part of city or part of our vast rural and regional country side.

So it reflects the strength of the family in Australia, and also reflects the ability to live in the way which you can better your family's life and better the quality of life for your children.

Interviewer: Yes, and we know the current Australian Government may have some advantages when dealing with China issues because we know that Prime Minister Mr Kevin Rudd… can speak fluent Chinese. So do you think that his passion and understanding about China will also influence other members in the government about opinions of China?

Minister Smith: Well certainly the Prime Minister is very, very strong on the importance of the relationship between Australia and China. And the fact that he speaks very good Mandarin is a matter of keen interest in China itself. So in some respects it's of advantage to us. But our modern relationship with China dates back to 1972. We were one of the first countries to have diplomatic relations with modern China. We recognised China and began our “one China” policy in 1972 and we have adhered to that ever since. Our relationship has gone from strength to strength.

Initially, on economic matters, mineral resources and petroleum resources which remain very important and which help build China's domestic economy. But now it is much wider than that: agriculture, financial and legal services, education, scientific endeavours.

So the links are now very strong, the people-to-people exchanges are strong; the cultural exchange is strong and the economic relationship is very important to Australia and very important to China.

Interviewer: And regarding how to deepen the western societies' understanding of China - what do you think about current Australian Government can do in your opinion.

Minister Smith: We're very keen to enhance Chinese language speaking in Australia, particularly among Australian school students. We are very keen for Australians to have much greater understanding of Chinese culture.

Next year, in Australia, we'll have the International Year of Chinese Culture. We are very keen to ensure that Australia, as significant country in Asia-Pacific, has a full understanding of modern China. One of the reasons we are so well-represented at the Expo is we want China and the Chinese people to appreciate the modern Australia as a modern contemporary tolerant multi-cultural society. So it's very important for not just there to be high level exchanges between governments, but also people-to-people and cultural exchange, and a thorough understanding of each other peoples.

Interviewer: And we also know that some incidents in 2009 may have brought fluctuation to the relations between our two countries and what is your comment on these incidents.

Minister Smith: In any relationship, even a strong relationship like the relationship between Australia and China, there will always be issues at which we differ and last year in 2009 we had a number of those. There are sometimes issues in respect of which one simply has to disagree. I think the important thing we've learned in the course of that period is to understand we can have differences which don't get it way of the relationship, which don't prevent the relationship in the long term from going from strength to strength. So in some respects, while there were some difficult moments it has taught us to understand how to manage some of these issues which arise form time to time.

Interviewer: Last question. I want to know how to maintain the stability of the trade relations between our two countries?

Minister Smith: China's highest economic priority is to continue to grow its domestic economy. To do that, it continues to need stable and regular supplies of energy resources, mineral resources and petroleum resources and Australia is a world class producer and exporter in these areas. For as long as China wants to have diverse sources to help grow its economy and to improve the standard living for its own people, there will be a strong complementarity between Australia's economy and China's economy. That will remain the basis of the economic links between our two countries.

But as I say, we've already seen underlined by the Expo, services being provided now from Australia in China whether it is financial services, education services or legal services. So those exchanges will continue to grow, continue to enhance and that is not just for Australia's good or Australia's interest also in our view, in China's interest.

Interviewer: Thank you, thank you Mr. Minister. And the Australia Pavilion is very unique and beautiful. Visitors are all like it.

Minister Smith: Thank you. I am pleased you like it.

[ENDS]

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