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SID MAHER: Just paraphrasing the press conference, the Prime Minister was saying that she's going to take advice from you on the way forward.

So I think, you know, some of the key things that we're interested in is, well, let's take them one at a time. I mean, where do you see the Asia Pacific Community, for example, going?

STEPHEN SMITH: We've made very good progress in trying to meet our objectives on the Asia Pacific Community, and the notion of the APc was, have we got our regional architecture right for 2020, 2025, given that economic, strategic influence is moving in our direction.

We thought that we had two significant breakthroughs in terms of getting an appreciation in the region that we were onto an issue that had to be the subject of a conversation.

I first detected it when we were at APEC last year, so you had - essentially, it was an anniversary meeting for APEC. So Hawkie was there and everyone was looking back on the formation of APEC. It was off the back of a G20 meeting, so everyone was seeing the G20 solidify as the premier international economic institution. So there was a sort of reflection on APEC, which 20 years ago was effectively non-existent, and then the emergence of the G20.

I think then there was an appreciation that what Australia had been arguing, what Kevin had been arguing, that we needed to make sure our regional architecture was right, was actually a valid argument, a valid conversation to have.

We were very pleased with the progress we made at the 1.5 Track Conference in Sydney, and then when Susilo Bambang Yudhoyono visited, we were quite clear that there was an emerging view in Indonesia and other countries that ASEAN itself had to start coming to some deliberations.

The real breakthrough in terms of getting to our objective was the communiqué from the ASEAN leaders in Hanoi, which was in April, which essentially invited the US and Russia to become more intricately involved in the regional architecture.

What we've now got down to is essentially a discussion in the first instance amongst the ASEAN countries as to whether the way forward with the US and Russia is East Asia Summit + 2, or a new group which is ASEAN + 8.

We have said to Indonesia and we've said to Singapore, from our perspective, what you get with either modality is 18 in the room at the same time which enables you to have both a strategic peace and security conversation and also an economic conversation with all of the key players in the room at the same time.

The ASEAN Foreign Ministers have been charged with the job of making recommendations to their leaders.

SID MAHER: So it'll be, you know...

STEPHEN SMITH: The phrase that - because in the meantime you had also Japanese Prime Minister Hatoyama's East Asia Community, and so there was a phrase that I first heard Marty Natalegawa use, which I've also used, which is APc equals East Asia Community equals East Asia Summit + 2, or East Asia Summit expanded, equals ASEAN + 8. So you know...

SID MAHER: So really, it's given way to ASEAN + 8 though, hasn't it? You know, that's really where you - or EAS + 2. There won't be an Asia Pacific Community.

STEPHEN SMITH: We would very happily see the East Asia Summit expanded by two and we would regard that as achieving in practical terms the objectives that Kevin set with his Asia Pacific Community speech.

There was one or two ways that you could go, which was to expand APEC, put India into APEC and then have a couple of different streams in APEC because you've got non-state actors, so you can't talk about peace and security issues, or to get the United States and Russia inextricably interwoven with the architecture.

Now, we're not putting a timetable or a timeline on it, but you know, we're very pleased with the progress that's been made and we think that's a practical reflection of our objectives.

SID MAHER: Okay. Now, I guess - now, are going to pursue the UN Security Council seat?

STEPHEN SMITH: Yes...

SID MAHER: Still committed to that?

STEPHEN SMITH: ...we're part or halfway through our campaign, which the election will be October 2012 for the '13/'14 term. So we're sort of halfway through that campaign, but we'll continue with that campaign.

SID MAHER: I guess, what will you be advising the Prime Minister to do differently in foreign affairs? I've just been talking to Hugh White and he's been saying that he thinks our relationship with Japan has gone backwards, our relationship with China is more problematic than it was. I mean, are they areas that...

STEPHEN SMITH: Well, firstly I don't agree with that analysis. But I mean, every change of Prime Minister or President brings with it a change of style, you know, a change of personal approach or personal emphasis.

SID MAHER: So what do you...

STEPHEN SMITH: Whether it brings with it any change of policy, time will tell. Certainly we don't see any change to our fundamentals, what we describe as the three planks, which is our engagement in the Asia Pacific, our alliance with the United States, and our engagement in multilateral institutions, including and in particular the UN.

The Prime Minister has already spoken about the Alliance largely off the back of a conversation with President Obama. So we don't see any change in our fundamental disposition.

Whether in due course there are changes of nuances or emphasis, time will tell. But my advice to the Prime Minister will be, we have made very good progress on our fundamentals.

I don't agree with Hugh's analysis that says that there are any fundamental or grave difficulties with any of our major bilateral relationships.

On the contrary, yes, we've had tensions in the China relationship last year, and as the successful visits of the Vice-President Xi and Vice-Premier Li have shown, we are much better placed now to manage those issues. And so the China relationship, both economically and generally, goes from strength to strength.

With India, we've taken India to a formal strategic partnership which both Australia and India wanted. And yes, we had the difficult issue of Indian students, but we have worked our way through that.

In terms of Japan, there's a very mature relationship there where, with Foreign Minister Okada's visit here and my visit, together with Defence Minister Faulkner, for the 2+2, a couple of things have emerged.

Firstly, there's a very strong commitment on the part of Australia and Japan to continue to pursue the relationship, not just as an economic relationship, but as a strategic and security and comprehensive cooperative relationship. I've been to Japan six times as Foreign Minister, the 2+2 Meeting that I had with John Faulkner and with our Japanese counterparts was, in my view, the most successful visit that I have had in Japan.

And the reason for that was everybody appreciated that the relationship was comprehensive, it wasn't just economic. We had a range of strategic, security, defence, intelligence cooperation matters that we progressed. And it was a very strong commitment between myself and Foreign Minister Okada, that whilst we have, as I have put it, a disagreement amongst friends, or a need to arbitrate on the whaling issue, there's a very strong commitment to not let that get in the way of our relationship.

With Indonesia, we inherited from our predecessors a good relationship...

SID MAHER: Yep.

STEPHEN SMITH: ...with Indonesia. That has also gone from strength to strength, as the President's visit here shows.

I don't agree with an analysis which says there are difficulties with any of our key bilateral relationships. Have there been irritants along the way? Yes, there always, there always are. But they have been managed and we've seen all of those bilateral relationships flourish.

SID MAHER: Now the Israeli Ambassador's retiring. Have we received a nomination for a new Ambassador?

STEPHEN SMITH: Well, that's not a matter that I would comment upon publicly. The announcement of an Ambassador from Israel to Australia is entirely a matter for Israel to deal with and there are formal processes to go through. So I wouldn't be...

SID MAHER: Will we do it in the normal way though?

STEPHEN SMITH: Of course. Why wouldn't we?

SID MAHER: Okay. And has Julia spoken to Japan and China, the leaders of Japan and China yet?

STEPHEN SMITH: I would have to check. She did a number on Friday. Obviously, I'd have to check with a couple that were scheduled, they may have come through. I can check that and we can give you a list of the ones that have been done.

SID MAHER: Now I'd better ask you what do you plan to do in trade? I guess you've just been briefed?

STEPHEN SMITH: Well briefings are beginning. I mean I'm very fortunate. Simon has done a very good job in the three general areas of our trading engagement, our multilateral engagement. He has been inexhaustible on Doha and we're very pleased with the G20 outcome today, which we hope will breathe life back into the Doha Round and bring some momentum. So we're absolutely strongly committed to that.

On the regional front, he did a terrific job on the Australian-New Zealand ASEAN Free Trade Agreement and now our priority in that space is firstly the TPP, the Trans-Pacific Partnership, which we regard as very important. I'm also very committed to the GCC, the Gulf Cooperation Council Free Trade Agreement, because I see that as being both strategically important as well as economically important.

And then we have the individual free trade agreement negotiations that we have in train, plus the two where we have feasibility studies, studies with India and Indonesia, both of which we are very strongly committed to.

So I have the advantage of Simon having left a very strong platform.

Second advantage I have, of course, one Department servicing two Ministers - now one Department servicing one Minister. So that's...

SID MAHER: Now, what does that say to all the public servants in trade? Does it...

STEPHEN SMITH: Oh, what it says is what I said to them this afternoon, which is in the past I've had some face to face and personal access to you. Now I'll have more.

SID MAHER: Yeah, so it doesn't actually mean anything?

STEPHEN SMITH: No, it doesn't. There will be no change in the fundamental structure of the Department. It just means that all roads will lead to one Minister.

So you've got - and also the third thing is - or third aspect, I think, is with Simon's travel and representations, as with my travel and my representations, there's often a cross-over. So I've, over the last two and a half years, been making representations to my Korean counterpart about the need for a Free Trade Agreement in Korea, Japan...

SID MAHER: Oh, okay.

STEPHEN SMITH: ...et cetera, et cetera.

SID MAHER: So there is a cross-over.

STEPHEN SMITH: There is a complementarity. That's not to say that I have been dealing with these things in anywhere near the detail that Simon has. But I have been, as Foreign Minister, you get to see the strategic importance of a free trade agreement, whether it's individual, bilateral or regional, or multilateral.

As Trade Minister you, of course, are compelled to also go through all of the detail in terms of the individual economic benefits, merits and demerits.

But there's a good complementarity in terms of the strategic influences and the strategic benefits. And I see that as being, you know, a good, if you like, a good first vision or first view to have these from it.

Primarily the best thing would be that Simon has left a very good shop across the range of issues and I'm very familiar with the Department and the advice that's been given, a lot of it I've seen, because of this sort of complementary roles that Simon and I have played in the past.

SID MAHER: Okay. Now are you - do you see yourself as long-term Foreign Minister?

STEPHEN SMITH: Well...

SID MAHER: I mean there's been a lot of speculation about what Kevin Rudd would do. I mean...

STEPHEN SMITH: Well, as I've said recently, these matters are always entirely matters for the Prime Minister of the day. Of course there's a significant intervening event, which also has a considerable influence, which is called an election.

SID MAHER: Yes, sure.

STEPHEN SMITH: But what I have, the view I do take is irrespective of how long I'm Minister for Foreign Affairs, or Minister for Trade, the judgements you make can only be judgements about our long-term national interest. So you never know how long a particular gig will last, but you've always got to make your judgements on the basis of what adverse consequences or what beneficial consequences will this have for our long-term national interest.

But, you know, as I've made clear in recent days, I'm very pleased to do the Foreign Affairs job. I was very pleased that the Prime Minister asked me to do the Trade job. I'll happily do that. But in the course of this year there will be an election. That will be tough. If we win the election, then it will be entirely a matter for the Prime Minister to determine again the allocation of portfolios.

But for the present, I'll continue to do the job as Foreign Minister, as I have in the past and I'll now add to that the Trade ministerial responsibilities as well.

SID MAHER: Okay. So there's no change of emphasis anywhere in Foreign Affairs with the new Prime Minister?

STEPHEN SMITH: Well we've got a very firm foundation, both on the foreign policy front and on the trade front.

SID MAHER: Yeah, so it will be business as usual?

STEPHEN SMITH: Well it's continuity, consistency, and with any new Prime Minister, with any new Government, at some stage you will see a different style, a different approach, the odd nuance here, or change of emphasis there. But our fundamentals in foreign policy remain the same, remain true and our fundamentals in trade remain the same.

SID MAHER: But given that Julia Gillard's not Kevin Rudd, how do you think things will be different in foreign policy?

STEPHEN SMITH: Well in terms of their substantive outcomes, they're alike.

SID MAHER: Right.

STEPHEN SMITH: Because we are guided not by personalities, we're guided by the fundamentals of our policy approach.

SID MAHER: What about at the margins though?

STEPHEN SMITH: Well that's what I said, with any new leader, there is always a change of style and that potentially brings with it a change of nuance, or a change of emphasis and time will tell where they emerge.

SID MAHER: Okay.

STEPHEN SMITH: All right.

SID MAHER: All right. Good on you. Thank you.

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