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KEVIN RUDD: Okay. Thank you ladies and gentlemen. First of all if I could welcome very much the Foreign Minister of the Philippines Albert del Rosario, and Gregory Domingo, the Trade Minister of the Philippines, here for the third Philippines-Australian Ministerial Meeting.

We in Australia regard the Philippines as a country of great significance to Australia's interests in East Asia. We also regard the Philippines as sharing the values of Australia in the region.

The Philippines is a strong democracy, a long upholder of human rights, and therefore a country with which we have common endeavours in so many spheres in the world.

Also our bilateral relationship this year celebrates its sixty-fifth anniversary. That is the mark of a healthy relationship when you get to 65 years old, and therefore I would pay particular respect to the contribution of our forebears in these positions over more than six and a half decades in crafting an excellent relationship from Australia's point of view, and I believe the Philippines as well.

Also in Australia we are pleased to be home to about a quarter of a million Filipino Australians. These good folk have come to make their home in Australia and have made huge contributions to Australian life, our businesses, our community life, and also their contributions to Australia's overall national interest.

There is extensive travel between our two countries involving many tens of thousands of Filipinos and Australians each year.

On the commercial front, our trade last year reached 2.6 billion. This is therefore a significant trade relationship for Australia.

Regionally we cooperate closely. We cooperate closely in the ASEAN Regional Forum, the East Asia Summit, the ASEAN Defence Ministers' meeting, and APEC, and of course beyond the region the United Nations itself.

Today the Minister and I discussed at some length our participation in the upcoming ASEAN Regional Forum and EAS Foreign Ministers' Meeting where we'll be discussing preparations for the EAS Summit later this year in Bali.

This will be a significant summit because for the first time both America and Russia will participate at head of government level. Therefore what the Minister and I have been discussing is how we shape the agenda for that important summit, how we advance the political and security agenda for the summit, how we advance our cooperation in natural disaster management given the proliferation of natural disasters across our wider region to the detriment of so many of our citizens.

Also the East Asia Summit includes of course on its agenda enhanced economic and finance cooperation across the region and a comprehensive economic partnership in East Asia.

Therefore for these reasons our relationship is important. One further reason goes to the cooperation we've had ongoing for some time now in counter-terrorism.

We're familiar with some of the challenges which have existed in the Philippines over the years and I would like to place publicly on record the Australian Government's deep appreciation for the work of the Philippines Government through its law enforcement agencies, its security agencies with Australia's in dealing with the challenge of terrorism within our region. This is a matter deeply on our mind today as Abu Bakar Bashir's trial continues in Indonesia.

Finally, the Philippines is also a focus of Australia's overseas Development Assistance Program. Australia is the third largest partner of the Philippines. We're proud of our contribution to the people of the Philippines. We are particularly proud of our contribution to what we do in the education sector in the Philippines, where I'm advised our programs over the years have helped improve the quality of schooling in the Philippines for approximately two million Filipino kids.

So, Albert, if I could say to you how much I've appreciated our discussion today. We believe that this is an important relationship, not just to celebrate for its previous 65 years, but an important relationship for this, the Asia Pacific Century. In the midst of so much regional uncertainty as we embark on the second decade of this century, it's good to know that in the Philippines we have such a strong partner for the future.

Now I might ask Albert if you'd like to make some remarks, opening remarks.

ALBERT DEL ROSARIO: Thank you very much Kevin. Kevin is — has become a very good friend and I certainly value his friendship and we'd like to thank Kevin and Craig for the very warm welcome and the commendations that we have received during our visit here.

We are very happy and very forward-looking in terms of the progress that we have made in the discussions on this Filipino Australian Ministerial Meeting which is the third as Kevin had indicated. And in the discussions we were able to review and expand and enhance the bilateral relations as well as the multilateral cooperation that we have in the multilateral — in the regional and as well as in the international fora.

In terms of the bilateral relations, we're very happy to say that we're proceeding in terms of the various initiatives encompassing trade and investment, number one; number two, defence and security; number three, we — actually Kevin mentioned development assistance which is a significant part of our relationship for this disaster management. And fifth is the — again, Craig also mentioned that the people to people relationship that exists between the folks of Australia and that of the Philippines.

The trade and investment will be dwelt upon by my colleague Secretary Greg Domingo. I'd just like to say a little bit about the other areas of cooperation in the bilateral arena.

In terms of the defence and security we do have a focus in terms of counter-terrorism, which is also mentioned by Greg. Counter-terrorism I think includes law enforcement as well as border control.

The — if we're talking about, for example, development assistance we're talking about many areas of focus here that would include education assistance, health care assistance. In education, again, as I mentioned earlier, a significant number of school houses have been constructed in Mindanao. In terms of health care, many assistance programs have been started and are moving forward, such initiatives for example as eradication of malaria. In terms of we — if we go on to… by the way, development assistance also provides a very notable package of assistance to the peace process, our peace process in Mindanao.

If we go on to disaster management, disaster management goes hand in hand with climate change. In climate change we are looking for climate change adaptation. In the case of disaster management, we're looking for disaster risk management assistance.

Of course in the last item in the bilaterals that we have embarked on we're — Kevin also mentioned that we do have a quarter of a million Filipinos here. And we are grateful to the Australian Government for hosting them and for taking good care of them. And we of course are — we hope that they are contributing in a substantial way to the socioeconomic development of — and progress of Australia.

In the multilateral arena, Kevin also mentioned that we do have cooperation in topics that are of mutual concern in regional fora and regional architecture that are also of significant cooperation for us, areas of cooperation.

As he mentioned, we are in — we cooperate in ASEAN to begin with, and EAS. EAS, as you know, is a strategic leaders-led forum.

We are in ARF; this is a security driven forum. We are in ASEM where we were together. It's the first time I had the privilege of meeting my good friend Kevin. This was just last week. And, as you know, ASEM is an architecture which tends — which… the intention of which is to put ASEAN and EU closer together.

The — in the regional and international fora, we are able to focus on, as I said, on areas of mutual interest. This could be in the area of human and drug-trafficking. We could be talking about smuggling. We could be talking about piracy, and the like.

So it's a total menu which I think you could say that this all comes under the non-traditional security challenges that we face.

We have — I have reserved one last final topic. As you know, we do have — in our region we have this problem in the West Philippines Sea, otherwise known as the South China Sea.

We had of course hoped that the DOC — which is the declaration conduct of parties in the South China Sea — would be able to finalise the terms of that agreement, but we are actually looking for the code of conduct itself, if that can be moved forward.

Beyond that, what we have done is — it's a bit shaky there now. What we have tried to do is we've tried to introduce into the community that is interested in terms of what happens in that area a — we've tried to introduce a framework, let's call it a framework, an actionable framework, which transform… which transforms that area by segregating the… transforms the area into a zone of peace, freedom, and cooperation by segregating the disputed features from the undisputed waters in accordance with the principle of law, principally, the UNCLOS.

We feel that if we're able to undertake this process, which is a process of injecting international law into the problem, then we can consider that the disputed areas can be looked upon as areas for joint development and exploration.

Clearly, it's a framework, and what we're interested in doing is we're interested in injecting a rules regime in the — to address the problems of the West Philippines Sea.

I think that we have had a very constructive and, as I said, a very satisfactory meeting with Kevin and it's a matter of great satisfaction for us to have friends and partners like Australia in terms of our multilateral thrust in the diplomatic area.

And again, I'd like to reiterate to Kevin and Craig our most humble thanks.

KEVIN RUDD: Thank you very much, Albert. If I could ask for some comments now from Craig and then Greg will conclude and take your questions.

CRAIG EMERSON: I'll just make a couple of key points and then we could probably cover any unresolved questions in the question and answer session.

But, as the Trade Minister, it's long been my belief that the greatest investment that two countries can make is in the talents of each other's people. And this is what's happening in Australia already. A quarter of a million Filipinos here in Australia. They are — the attitude of Australians, I think, towards our Filipino brothers and sisters is one of great affection.

The Filipino community plays a critical role in the social fabric of Australia. And if I can just mention in passing as a Catholic who tries to get to church from time to time, you'll always find the Filipinos supporting the Catholic Church on Sundays, and they do that with great voice, and it's just an indication of the way the Filipino community is part of our social life, and they are very welcome.

I think it's worth pointing out, in addition, that by around 2025 there will be 125 million Filipinos, which makes the Philippines one of the giants of our region. Sure, not 1.3 billion such as in China, or 1.3 billion as in India, not the 235 million in Indonesia, but 125 million Filipinos is a lot of people, and a big market.

Now, we want to continue that investment in the education between our two countries. Filipino students are most welcome here. Obviously we would encourage more Australians to travel to one of the most beautiful countries on Earth, the Philippines.

In respect of the government of the Philippines, this is a strongly reforming government. It is absolutely committed to economic reform which will open up greater areas for economic cooperation between our countries in both trade and investment.

Just a few quick examples. We've got Australian companies involved in telecommunications in the Philippines where there is an exciting new chapter in Public Private Partnerships and so we've got Australian interest there. We have Australian interest in very large mineral projects in the Philippines. And I want to pay tribute to the business communities as represented during our meeting by the Australian Filipino Business Association, the Philippine Australian Business Association, and we are soon to have the inaugural Philippines Australia New Zealand Business Forum in Manila in July.

Now, we do have an ASEAN Australia New Zealand Free Trade Agreement. It's one of these high quality agreements you might have heard me talking about; genuinely liberalising. But, in the end, the decisions are made by the businesses. And what we can do is open the way, clear the path and allow those commercial decisions to be made.

But I'll end where I finish, in the end it's people. And we have a very warm and friendly relationship with the people of the Philippines which we want to continue and strengthen.

KEVIN RUDD: One final word from Greg.

GREGORY DOMINGO: Thank you, Kevin.

We had a very constructive and productive third PAMM meeting. In my bilateral meeting with Minister Emerson this morning, as well as our session with Australian businessmen in the business dialogue on Tuesday evening, I reiterated the importance of Australia as a trade and investment partner, and the brighter prospects ahead in expanding our economic relations under the free trade agreement.

The Philippines is committed to strengthen our trade, investment and economic ties with Australia, and I notice that in the — I felt that in the meetings that we've had since Tuesday with businesses as well as with the government that there's a lot of good chemistry between the two countries and the two peoples.

We had an open and frank discussion on issues that have challenged our efforts to increase trade and expand Australian investments in the Philippines, notably in the mining sector.

We recognise great potential of cooperation within our countries in the strategic infrastructure projects, as mentioned in the PPP.

We also recognise opportunities of cooperation and institutional linkages in the areas of education and technical and vocational training.

Mr Emerson and I also exchanged views on common areas of concern in the global economic and trade situation, most notably the ongoing negotiations in Doha. Australia and the Philippines are firmly committed to the multilateral trading system.

We have agreed to exert or best efforts to support the DDA, the Doha Development Agenda, and to consult each other regarding developments at the WTO end in Doha.

KEVIN RUDD: Thank you very much Greg. Normal practice here, Albert and Greg, is we have a few questions aside. We normally start with our visiting press corps, and over here to our friend from the Philippines.

REPORTER: [Indistinct] from ABS-CBN for Minister Rudd.

How much concern are you viewing the increased Chinese activity in the South China Sea? And what steps are you taking, or do you think should be taken, to try to reduce that tension or address it if it escalates?

KEVIN RUDD: The Australian Government's view is that our overriding objective is to maintain peace and stability across East Asia, and that includes the West Pacific.

And therefore, when it comes to what we do about it, what I have been on about for some years in this government has been the importance of developing rules of the road within the Asia Pacific region, rules of the road within East Asia and the West Pacific to deal with difficulties when they arise.

A few years ago we advocated the concept of an Asia Pacific community. With America and Russia now joining the East Asian Summit, we have a huge leap forward in advancing that agenda because for the first time we have all the principal parties in the region around the table, at head of government level, capable of dealing with political and security questions.

Up until now that has not been possible. APEC has had an economic agenda and the other forums have not been at head of government level.

And so therefore it will be up to leaders when they meet in Bali later this year as to how this is shaped. What we are doing currently with our friends in the Philippines and in Jakarta and in Hanoi — and I spoke to Foreign Minister Yang Jiechi about this the other day in Budapest — is how we shape an agenda which works for the common security interests of all.

That means confidence in security building measures, it means rules of the road, it means avoiding incidents at sea, it means those sorts of things.

At present, regrettably, across the region we have very little such architecture. That's one of the reasons why this has been such an active part of Australian diplomacy in the last several years, from the Australian side.

We'll come back to the Philippines next time round. Yeah mate.

REPORTER: Foreign Secretary del Rosario, I just want to quickly ask you, on the South China Sea as well. The Philippines has removed some Chinese markers from disputed reefs but China today sent its largest civilian patrol ship down into that area to enforce territorial claims. How concerned are you about Chinese setting up fresh markers and how widely have you discussed your idea of a framework that you raised a second ago?

ALBERT DEL ROSARIO: Well, we are very concerned about these markers being placed in waters and areas — and areas and features that are clearly ours. For example, if we take a specific instance, the Reed Bank is an area where there is a promise of a very large natural gas possibility. Now, the Reed Bank is 85 nautical miles off Palawan, well into the continental shelf of Palawan. That same Reed Bank is — the closest it is to China is about 570 nautical miles. So obviously if you're looking at exclusive economic zone extensions — projections rather, or you're looking at projections of the continental shelf, that is beyond 200 nautical miles.

So what we're trying to say is what's ours is ours. We are free to do with that as we please. But we're not saying that we should not consider inviting others to co-invest with us, and this will have to be done in accordance with Philippine law.

That's a possibility. On the other hand we're also saying that in the disputed areas — and this is in accordance with China's overall recommendation — is that we can consider that for joint development, our joint cooperation.

We have actually — we sat down with the Chinese government, specifically the Ambassador to the Philippines from China, and we have made clear our position in terms of the Reed Bank, for example. And we have made clear what our position is in terms of validating our position in accordance with international law, principally UNCLOS.

KEVIN RUDD: Thanks very much. Now a colleague from the Philippines.

REPORTER: Minister Domingo, how did you address concerns on local government restrictions on mining where there are a lot of Australian investments? And how is — the Trade Minister, how is Australia going to help the Philippines launch its PPP initiative considering Australia's own PPP experience?

GREGORY DOMINGO: Well, as far as the local government units are concerned, we on the mining side — we're actually tackling the mining issues on the whole, and the President himself has already mentioned to us that he will handle it personally. So he will get involved because it requires not only an investment decision but it requires a political decision as well.

CRAIG EMERSON: In respect to Public Private Partnerships, Australia has had quite a bit of experience with them. In the early days they probably weren't as successful as we would have liked but more and more projects over the last decade have been initiated under a Public Private Partnership model.

We're happy to share any experience that we have there but I emphasise at the outset that this government, as a strongly reforming government in the Philippines, has opened a new chapter in Philippine economic history, an exciting new chapter.

And its commitment to working with the private sector on Public Private Partnerships to provide the very infrastructure that is needed, not only in terms of energy but very much in terms of tourism and other essential infrastructure, I think is an indication of this government's commitment to reform. And our companies where they possibly can will engage with the Philippines in Public Private Partnerships.

And if we had any experience that we've acquired over the years as to those parts or dimensions of Public Private Partnership that are good and those that are less good, we're happy to share those. But we certainly don't want to be in any way saying to the Philippines, this is the particular way to go.

I think that the fact that the Philippines is so committed to economic reform is exciting, not only for the people of the Philippines but also for our relationship between the two countries.

REPORTER: Mr Rudd, just on a domestic issue, sorry.

KEVIN RUDD: The Australian side?

REPORTER: It's been reported today that you are — your colleagues, some of your colleagues believe that you are plotting; collecting numbers for a future leadership tilt. Are you? Why do you think people are — some of your colleagues believe that are you are?

And, finally, do you believe that it's legitimate for yourself to harbour leadership ambitions for some stage in the future, as it is for anybody else?

KEVIN RUDD: Well, I think the thing I'd say in terms of the first part of the question, Matthew, is that the first I heard of this was when I read The Canberra Times — a journal of local record, they say — this morning, and there is no truth in it.

The second thing I'd say is those of you who watched carefully my reasons for re-contesting the last federal election were as follows: to ensure that one, Tony Abbott did not end up being Prime Minister of Australia.

That remains my ambition. And the reason it's my ambition is because I do not think Tony Abbott becoming a prime minister of this country is in our country's national interest.

The reasons we can go into at some length if you wish. But if someone stands up as the alternative prime minister of Australia and promises to undo, for example, one of the largest health and hospital reforms in this country's history because he thinks it's smart to oppose everything, then I don't think that's acting in the national interest. It means that you've got someone who is acting in a partisan interest.

On the second part of your question, let me be very clear.

On the question of my future, my aspiration is to be one day, maybe, one of Australia's better — probably not the best — foreign minister. And I've got a long way to go on that.

I enjoy the job very much. I'm able to achieve some things in it, in cooperation with partners like the Philippines.

And that's where my heart and soul lies, in terms of my own future, apart from whatever contribution I can make to ensure that one T Abbott, Esquire, doesn't make it to The Lodge.

And I'm deadly serious about that.

And on the question it think of numbers, could I just put in a plug here for numbers.

At the CEO Sleepout tonight in Melbourne, I'm up to 5000 in terms of dollar support. Those of you in this room who haven't put up their hand to — or put their hand in their pocket for some money for the homeless, now is your big chance before the Sleepout starts.

They're the numbers I'm interested in.

CRAIG EMERSON: They all went to the Midwinter Ball and they reckon they're skint but I'm sure there's a little bit more…

[Laughter]

…if they dig deep enough.

KEVIN RUDD: Okay, no more questions from the Philippines? Thank you very much. Appreciate it.

ENDS

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