Subject: Australia/China relations; launch of liquid natural gas (LNG) project; North Korea; World Expo 2010; Australia/China FTA
PREMIER WEN:
The Honourable John Winston Howard, Prime Minister of Australia, first I would like to say, a very warm welcome to you again to attending the LNG project start up ceremony. This cooperation project is a symbol of the good, cooperative relations between China and Australia, and in addition this is only the beginning.
I think that the most important thing out of this is that two countries having different social systems and ideologies can indeed have peaceful existence with each other. Mr Prime Minister, as you have indicated some several times that China’s developments will benefit Australia and also the whole world. Just now Prime Minister Howard and I exchanged views on a wide range of issues including bilateral relations and international issues.
We already set a goal for our bilateral relations, that is we should work together to build a China-Australia relationship of all-round cooperation, for mutual benefit and win-win outcomes in the 21st Century and we are walking in that direction.
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We decided to set up, fix a mechanism for the exchanges of leadership between the two countries on a regular basis. We also agreed that to expedite the free trade area negotiations between China and Australia will benefit the trade between the two countries and will also serve up the economic interests of our two peoples.
We both have interests in the nuclear issue on the Korean Peninsula and the Iranian nuclear issue and we both hope that these issues will be settled peacefully through peaceful negotiations. Thank you.
PRIME MINISTER HOWARD:
Well thank you very much Mr Premier, I would like to warmly thank you for the opportunity of joining in such an important celebration of the economic relationship between Australia and China.
Our two countries have an enormous amount to gain from the sensible, trustful, economic relationship that we have built, especially over the last decade. The shipment of LNG which we welcome today represents the largest single trade agreement in Australia’s history and I especially welcome your comment Mr Premier that it’s the potential, the beginning of many more. China has much to offer the world and in turn has much to gain from the kind of relationship it has developed with my country.
The economic growth of your country, Mr Premier, has meant that tens, indeed hundreds, of millions of people in China have been lifted from poverty and given a brighter and happier future. The key to that further development, or the further development of that rather, not only in China but around the world is to be found in steady economic growth through all countries taking advantage of the benefits of globalisation.
Our talks today, Mr Premier, covered not only the bilateral relationship but also importantly, challenging world issues such as the nuclear threat on the Korean Peninsula and Iran. Neither issue is easy to resolve and all participants must refrain from any provocative behaviour which will only deepen levels distrust that exist at present.
And finally I was pleased to inform the Premier that Australia would be an enthusiastic participant in the World Expo to be held in Shanghai in 2010. Shanghai is a wonderful city and it will be a great Expo and Australia will be there in a very active and enthusiastic fashion.
PREMIER WEN:
I also said to Prime Minister Howard that Australia is very welcome to attend the Expo in Shanghai in 2010.
PRIME MINISTER HOWARD:
Thank you. Enthusiastically yes.
JOURNALIST:
Jim Middleton, from ABC Australia, Mr Premier. You mentioned that you and Mr Howard had discussed the Korean Peninsula. The United States is reported to have moved missile interceptors to Japan, how does China regard this development and what concrete steps is China taking to discourage Pongyang from launching another missile?
PREMIER WEN:
We follow closely the information showing that there might be a hostile testing launch of the missiles by the DPRK and we are following the movement of the situation very closely. We hope that the various parties will proceed in the best interests of maintaining stability on the Korean Peninsula and refrain from taking measures that might worsen the situation on the Peninsula. We still believe that the six-party talks is the only way to a peaceful settlement of the nuclear issue on the Korean Peninsula.
And therefore China will work actively on the various parties concerned for that matter so that we can resume negotiations as soon as possible and to bring about a peaceful solution to the nuclear issue on the Korean Peninsula. Our goal is peace and stability on the Korean Peninsula as a nuclear weapon-free Peninsula.
JOURNALIST:
I am a reporter from the New China News Agency. I’d just like to talk about the fact that the cooperation between Australia and China in the area of energy and minerals is very important and that whether it be talking about it in Canberra or whether talking about it here in Shenzhen, that is a very important topic.
Can we look to the future and see what our future balance in the field of energy and resources between the two countries, what would be the future of a relationship in that field?
And secondly I’d like to ask another question and that is in April of this year Premier Wen Jiabao went to Australia for a visit and during that visit several agreements were signed including an agreement for the peaceful use of nuclear materials and the transfer of these raw materials. As of yet, the Australian Federal Parliament has yet to ratify those two treaties, so can you give us a rough date when you think actual, substantive cooperation in the nuclear will start with Australia and China?
PRIME MINISTER HOWARD:
Well can I start on the second question, the ratification process, I believe, will proceed quite quickly, but there are certain courtesies to be observed and I am always respectful of my parliament. But I am optimistic that the great majority of Australian parliamentarians will smile on those agreements.
On the broader energy relationship with China, it is as optimistic as the demand of China is great and the capacity of Australia to supply is very extensive and to the extent that agreement can be reached on price. In other words China has lots of demand, Australia has lots of energy and there has to be a coming together on supply and demand. But it is a competitive market and that is a factor that both parties have to bear in mind.
JOURNALIST:
Rowan Callick from The Australian newspaper, Prime Minister, this morning at the Dapeng Terminal, Premier Wen spoke about his desire to expand the two countries’ energy cooperation upstream to mining and extraction and to clean energy and new technologies, what is your response to that request?
PRIME MINISTER HOWARD:
Well my response, broadly, is very positive. Clearly individual proposals have to be evaluated according to their commercial worth and the cost price tensions that they might reflect and it is important as the relationship matures further that we understand the market forces that will come into operation. Governments should be there, to use that old expression, to help, but in the end there has to be a commercial meeting of the minds in relation to all of these things.
But generally speaking, I have a very positive attitude towards the relationship, I have worked very hard on a personal level to do what I can and the Australian Government will continue to bring all of its capacities to bear to smooth the path where that’s appropriate, but recognising in the end in our system, we do operate according to the principles of competitive capitalism and commercial decisions must be made.
JOURNALIST:
CCTV, just now the Prime Minister of Australia has explained, on a comprehensive scale, the attitude of the Australian Government towards the energy cooperation between the two countries. So what is the position of the Chinese Government on this issue?
The other question is in addition to the energy cooperation, in what area does China hope to have cooperation with Australia so as deepen the comprehensive cooperative relations between the two countries.
Mr Premier, just then you said that in your discussion with Prime Minister Howard, you talked about FTA, the free trade area agreement between the two countries, so can you say something about the progress, if there is any?
PREMIER WEN:
China and Australia at the moment enjoy a very good relationship of mutual benefit and cooperation between the two sides, and I think this is to be seen from several perspectives.
First, we have decided to develop a China-Australia relationship of all round cooperation for mutual benefit and win-win results for the 21st Century.
Second, we have also put in place a mechanism of exchange of views and business by the leaders of the two countries on a regular basis and in addition we also put in place a political consultative mechanism between the two foreign ministries of our two countries.
And third, speaking of the economic cooperation, I believe that our two economies complement each other very neatly. Australia has very rich natural resources and it also has advanced technologies on par with China. We have a large market and we also have a (inaudible) for further economic growth and therefore it is very important that our two countries work together to develop trade and not only in the trade of natural resources or energy but also in other areas.
For example, last year bilateral trade was US$27 billion and this year this figure is expected to exceed US$30 billion. As the next step we should encourage the businesses of the two countries to have mutual investment in to each other and also to encourage them to have technological cooperation with each other and fourthly, speaking of the economic relations between China and Australia we should want to improve the mechanism for the economic relationship between the two sides.
Speaking of that issue it brings me to the issue of the free trade area agreement between the two sides. We are already in the fifth round of negotiations on this issue. Fundamentally speaking, we believe that a FTA is in the fundamental interests of the Chinese and Australian peoples, and of course this is not difficult free and however, the contacts between the leaders of the two countries and the discussions between the departments of the two Governments of the two countries are sincere and faithful. I therefore believe that the negotiations will proceed very successfully and smoothly in the future.
Fifthly, China-Australia relationship is good and this good shape of our bilateral relationship should not only be in the economic field but should also be in cultural, science and technological, educational and humanistic fields as well. Next year we happen to celebrate the 25th anniversary of our diplomatic relations and I hope that we will work together to bring this bilateral relationship to a new higher level. Thank you.
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