Karl Stefanovic, Host: Foreign Minister Penny Wong joins us now live from Canberra. Hey Penny, good to see you this morning. Thanks for your time. Look, are we doing a deal to lease Japanese subs?
Penny Wong, Foreign Minister: Good morning Karl, good to be with you. And it was a real pleasure last night to welcome Prime Minister Takaichi to Australia. Japan is our Special Strategic Partner. Our relationship has grown from strength to strength over the last 50 years and this year is the 50th anniversary of our Basic Treaty. We have a plan on submarines, and that plan is AUKUS. And that plan is meeting its milestones. It's a big project. We're focused on it because we believe that's the best capability for Australia.
Stefanovic: But are we going to, in the interim period, lease Japanese subs?
Foreign Minister: We have a clear AUKUS plan. That is our focus. Having said that, we obviously will continue to work very closely with Japan. And you might recall that we have engaged with them increasingly. You might recall the Mogami frigates, which the Deputy Prime Minister announced. So, obviously we have a very close relationship across a whole range of domains.
Stefanovic: You're not saying no?
Foreign Minister: I am saying that we are focused on AUKUS. That's the plan.
Stefanovic: Okay, that's still not a no. Look, the Japanese PM isn't mincing her words on her stand against China. She is tough. But we're trying to get fuel off China. How is that little dance going with Beijing? That's delicate.
Foreign Minister: First, I appreciated the discussions in Beijing, and I made the point to Foreign Minister Wang Yi that our fuel security depends on each other in many ways. That the energy we supply, the coal we supply, the iron ore we supply, requires jet fuel, requires diesel. And it's the same message I've been giving to the countries of the region. I was pleased that there was an indication that there would be discussions between companies in relation to jet fuel. I understand those discussions are underway and we hope that there will be a result.
Stefanovic: You haven't secured anything yet, though.
Foreign Minister: I understand that we got an agreement for discussions to occur. I understand those have commenced. Obviously, they're commercial in confidence, and we hope that that will result in Australia receiving more jet fuel.
Stefanovic: Another ship has been attacked coming out of the Strait of Hormuz, as you know. Have you had any correspondence with your US colleagues at all and do you know what the plan is yet?
Foreign Minister: Look, we're engaging with the US, with the UK, with France, with others around the the Strait of Hormuz. Obviously, we all want to see the Strait opened. That attack is deeply concerning. I understand that the reports say the crew members are safe, and that is a good thing. Ultimately, the Strait does need to be reopened and we hope that the US negotiations with Iran can get to a point where we see oil flowing through the Strait again. There's obviously been a very big effect on global markets and also on Australians here, and we're very conscious of that.
Stefanovic: Are you getting any info at all out of the US?
Foreign Minister: We're engaging with the United States. Obviously, we're not part of these negotiations and we're not part of the strikes that were taken on Iran. But we have an interest as, as the whole world does, in making sure that the Strait is open. So, obviously we're engaging with all parties.
Stefanovic: In two weeks' time, I think it is, they'll have to stop producing because they'll run out of storage in Iran. What are the flow on effects for us as a result of that?
Foreign Minister: I think the major effect is simply the closure of the Strait. As you know, Karl, and we've spoken about this before, it's 20% of the world's oil, but it's 80% of the oil coming to our region. So, that pretty big impact on Australia explains why we've been doing what we've been doing, why I spent last week in North Asia engaging with partners – Korea, Japan and China – about assuring fuel security for Australians. That's what we're focused on.
Stefanovic: Okay, just finally the PM's got some good news in the polls today. He's also announced he'll be hanging around to the next election at least. So, he's going to be hanging around like a nasty winter flu, I say.
Foreign Minister: The Prime Minister is doing an outstanding job and he's made very clear he's up for a third term and I think that long-term leadership is good for the country.
Stefanovic: Good to talk to you, Penny. Thank you.
Foreign Minister: Good to speak, Karl.