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Old Parliament House 13 AUGUST 2004

NationalAustralia’s Engagement with Forum : A New Paradigm?

REPORT OF PROCEEDINGS

Sponsor Media Partner

ORGANISATIONS

The Asialink Centre

Asialink is ’s leading centre for the promotion of public understanding of the countries of Asia and of Australia's role in the region. Through high-level forums, international collaborations, public programs, education, and arts and cultural exchange, Asialink has for more than a decade built on its vision of “Australians equipped for full participation in the Asian region.”

The Asialink Centre is an initiative of The Myer Foundation at The University of .

For further information visit Asialink’s website at w w w . a s i a l i n k . u n i m e l b . e d u . a u

The Australian National University

The Australian National University (ANU), founded in 1946, is one of the world’s leading institutions for research and teaching about the Asia-Pacific region. The leading centres in this area are the Faculty of Asian Studies, The Research School of Pacific and Asian Studies, and the Asia Pacific School of Economics and Government. With some 250 specialists on the Asia-Pacific, the ANU has a particular concentration on .

The ANU has cooperated closely with Asialink over an extended period, including in the Asialink Leadership Program and a series of national conferences on Australian-Asian relations.

For further information visit the ANU website at w w w . a n u . e d u . a u

Sponsor: The Myer Foundation

Myer family philanthropy has its origins in the will of Sidney Myer who founded the Myer retailing business. On his death in 1934 he left one tenth of his estate for the benefit of the community in which he made his fortune. The Myer Foundation was established and initially endowed by Sidney Myer’s sons, the late Kenneth Myer, and Baillieu Myer in 1959. It is now supported by three generations of Myer family members, and represents their continuing commitment to philanthropy.

For further information visit the Foundation’s website at w w w . m y e r f o u n d a t i o n . o r g . a u

Media Partner: The Australian

The Australian is this country’s only national broadsheet newspaper. For further information, visit The Australian’s website at w w w . t h e a u s t r a l i a n . n e w s . c o m . a u

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CONTENTS

4 Overview : From the Convenors

8 Session 1 : The Next Decade: International and Domestic Trends

12 Prime Minister’s Address : Highlights

14 Shadow Foreign Minister’s Address : Highlights

16 Session 2 : Expectations for Australia: Asian Perspectives

20 Session 3 : Economic Issues

26 Session 4 : Security Issues

31 Session 5 : ‘Soft Power’ Issues

34 Session 6 : Summary: A New Paradigm for Asian Engagement?

36 Edited Transcript : Prime Minister

40 Edited Transcript : Shadow Foreign Minister

43 Media Reports

46 Participants

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OVERVIEW: FROM THE CONVENORS

“It will always be a central responsibility of the government of this country, whatever its political stripe, to maintain and continue to expand relations and understandings with the people of the Asia-Pacific region.” Prime Minister The Hon MP

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OVERVIEW: FROM THE CONVENORS

Australia Asia Engagement: a great national project?

We are pleased to present to you a summary of the National Forum - Australia's Engagement with Asia: A New Paradigm? - co- convened by Asialink at The and the Faculty of Asian Studies at The Australian National University.

Our thanks go to the 90 enthusiastic participants who made the forum the dynamic and important event that it was. They included government, business and trade union leaders, representatives of non-government organisations, research institutes and bilateral councils, and academics. There were religious and community leaders, defence and security analysts, and senior media commentators. The mere presence of so wide a range of Australian leaders - as a symbol of national commitment to Asia - would have meant the forum was a valuable one. However, they also generously contributed a wealth of views and expertise across a full day of discussion and lively encounter.

The forum, with generous support from the Myer Foundation, aimed to examine current issues and suggest additional “Measured any way you like, Australia strategies for advancing Australia's national interest in the is closer to Asia. Much has been done, dynamic Asian region. The emphasis was on planning for the more can be done, and more must future. be done.” We are especially grateful to the Prime Minister, the Hon John Baillieu Myer AC Howard MP, and the Shadow Foreign Minister, the Hon Kevin Rudd MP, for contributing major addresses. The transcripts of the speeches are included at the end of this report.

The format of the forum placed heavy demands on the session chairs. We are grateful for the leadership and judgement of: Rt Hon Ian Sinclair AC, former Speaker of the House of Representatives; Dr Pranee Thiparat, Former Chair of the ASEAN ISIS Network; Professor Andrew MacIntyre, Director, Asia Pacific School of Economics & Government at The Australian National University; Mr Michael Maher, Asia Pacific Editor, ABC News and Current Affairs; Mr Paul Kelly, Editor-at-Large, The Australian; and Dr Simon Longstaff, Executive Director, St James Ethics Centre.

EMERGING THEMES o Participant contributions reminded us that Asian engagement was more than just government-to-government interaction. It is multi-layered. It is vigorous "Track 2" processes, and also embraces professional, educational, scientific, NGO, sporting and tourist interaction and cooperation. The point was

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OVERVIEW

supported by the international speakers who called for Australia, as a matter of urgency, to exploit "all kinds of comprehensive ways" to move closer to Asia.

o Our colleagues from North, South and Southeast Asia pointed to the fact that we still face some negative misperceptions in the region, but that Australia is recognised as a valued partner with much to contribute. Professor Zhang Yun Ling, of the prestigious Chinese Academy of Social Sciences, said Australia should "proudly identify itself as a middle power to play a role, to mitigate and associate, cooperate... and to loosen tensions" in the region.

o The rising importance of China, as in many meetings on international relations, was a major theme of the forum. The country's growing economic and strategic importance was often acknowledged. Some felt, however, that the problems faced by China had been underestimated, and that there was a need for caution in estimating the economic advantages Australia might gain from a growing Chinese economy.

o In security terms, terrorism was understandably a primary concern in Australia-Asia relations. The point was made that the Asia Pacific continues to be an arena for great power rivalry - and potential rivalry - and that China, Japan, the Koreas and India are especially important. It was argued that the continued to be vital to the security of Northeast Asia and probably the region generally. Analysing and influencing United States thinking and action remains a fundamental imperative for Australia.

o In thinking about a new paradigm for Asian engagement, the forum acknowledged the complexity of the region - a diversity of nations and cultures that makes engagement a more challenging task than we had recognised a decade ago. We gave special consideration to the role of bilateralism, some seeing this as a necessary country-by-country progression towards regional engagement. Others were concerned that at least with respect to trade liberalisation, this bilateral approach lacked the strategic coherence that multi-lateralism could achieve.

o Delegates emphasised that rapid economic transformations in the region and globally demanded timely, clever and flexible responses from Australia. The balance of power between nation states was also far from stable, while non-conventional threats from terrorism, international crime, health issues, and illegal people movements required the re-conceptualising of national security.

o Knowledge of Asian societies and economies became a central theme of the day. With 50 per cent of Australian schools teaching very little or nothing about Asia in any context, many

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OVERVIEW

delegates were concerned that Australia was ill-prepared for the multiple opportunities in Asia. Senior business figures identified this as a major issue for Australian economic engagement. Others referred to the recent report on Australia's intelligence agencies, which warned about the dangers of a lack of language and cultural skills.

o One of the important gains of the day was the conveying of a strong bipartisan commitment to Asia engagement as a national priority. The major addresses of the Prime Minister and Shadow Foreign Minister conveyed a considerable degree of national consensus about Australia's regional relations.

o We were attracted to the call for 'Asia as a great national project that draws Australians together'. Such a vision provides purpose and opportunity for future generations and forecasts an agenda for action.

The extraordinary richness of the contributions to the National Forum has made the task of distilling an especially difficult one. In summing up on the day, Dr Simon Longstaff made the observation that "picking out things" was inevitably subjective and led to omissions. We have "picked out things" in the pages that follow. We hope they provide a broad overview of the themes covered. For the inevitable omissions, we beg your understanding.

TONY MILNER JENNY McGREGOR

Dean, Faculty of Asian Studies Executive Director Basham Professor of Asian History The Asialink Centre The Australian National University The University of Melbourne

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SESSION 1

“What we've done [in this session] is open the door and there are a great many visitors who lie behind that door.” The Right Honourable Ian Sinclair AC

Former Speaker of the House of Representatives

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SESSION 1: THE NEXT DECADE: INTERNATIONAL AND DOMESTIC TRENDS

The first session looked at key trends and patterns likely to impact on Australia's international relations over the next decade. Delegates discussed important drivers influencing Australian interaction with Asian countries. Chair: The Rt Hon Ian Sinclair AC, Former Speaker of the House of Representatives

“One of the things we're going “China's industrialization and “There is just no constituency “You remember the Colombo to need of course is exactly economic development poses yet in Australia for this open- Plan and what a great thing that kind of cultural an enormous challenge for the hearted engagement with Asia that was for Australia? …We familiarity with China that world economy, because it that we're describing here. have Asian students, mostly we're used to having with the changes the nature of the ethnically Chinese, here in “Now, my view, my hopeful United States. production process, changes Australia and elsewhere, who view, is that… Asia could be a the nature of pricing in go back to their homelands “Within a few years' time our great national project that markets in very substantial with a knowledge of Australia biggest trading partner, on could be seen as something ways. and a knowledge of English. present trends, will be a that draws in all Australians We also, we Australians, are country that is a strategic “'s population will and creates a common busily teaching English in Asia competitor of our principal increase by 70 million by constituency.” in a number of ways.” ally, and that imposes on 2050. That's a very big GERALDINE DOOGUE AO Australia choices in the population increase to absorb JEREMY ELLIS management of that in an economy which is Presenter of the ABC TV Chairman of the Australia relationship which are going already under stress and program, Compass Japan Foundation and to be very complex. which is of key strategic importance to Australia… Chancellor of Monash “China is going to demand a From 2030 - as a result of the University political premium for the kind two-child, then one-child of relationship we want to policy - China's population have with it.” will age very dramatically or HUGH WHITE rapidly, and that raises the Director, Australian Strategic whole question of whether Policy Institute China can in fact develop before it ages.” GORDON DE BROUWER

Principal Adviser, Macroeconomics, Department of Treasury

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SESSION 1

“In Malaysia and Thailand, “Australians are collaborating “I think what comes through “Seventy-seven per cent of many senior people - very closely with Vietnamese here is… that when we [the almost 200,000] interna- including cabinet ministers - colleagues in eradicating… approach Asia, it's always in tional students in Australia were educated in Australia… [the dengue-carrying] Aides terms of us having something come from Asia… 15 per cent thousands of Malaysians are Egypti mosquito from the to offer. We offer Asian of those students come from alumni of Australian water sources in Vietnamese students excellent education. China - an increase of 35 per educational institutions. villages. We can teach Asian countries cent from last year to this about governance. year. And from India… this “This is a considerable “The students [in year it was a 48 per cent foundation for an Australian biotechnology] from the south “What I want to interject now increase. engagement with the region of India and Bangalore area is… a different sort of that needs to be leveraged.” are looking now to go mainly mindset, which is that we “The value of international TOM HARLEY to America and Europe to actually have something to education to Australia in the further their research learn from these cultures, that year 2025 is [estimated at] President of Corporate training. We have a they have something to $38 billion, in 2002 dollar Development at BHP Billiton wonderful opportunity to offer us.” terms - a lot more than any bring them to Australia, but to JASON YAT SEN LI gas pipeline.” do that we have to go and LINDY HYAM visit there and work there and Insurance Australia Group develop this collaboratively. Chief Executive of IDP Education Australia “There really is a window of opportunity. But if we're not quick enough… that window will close and those opportunities will be taken up and realised not by Australian companies and Australian researchers but by our competitors… in the United States and Europe.” MICHAEL GOOD

Director, Queensland Institute of Medical Research

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SESSION 1

“I find it fascinating that since “Young people now present a “I'd like this conference …at “When you look at the funding September the 11th … over- very optimistic outlook for the end of the day, to call for of universities of Tsinghua and seas aid organisations have engagement with Asia… the funding of education and Peking - if we don't develop seen a stunning increase in More and more young people, studies of Asia in schools … to partnerships with those Australians giving to overseas especially Australian young get that back on the agenda. universities in the next few projects. Everybody predicted people, identify themselves as years, they're not going to want “If we look at security, the the opposite. global citizens as opposed to to talk to little universities like real problem of this region national citizens and that is , Melbourne and New “I'd like to think that may be Taiwan and mainland extremely important for the South Wales.” Australians are making the China. We [tend to] leave it international relations of the connection that says, you there as identifying the prob- JOHN YU AC future, for future know, you can't win a war on lem… We should go a little policymakers. Chancellor of the University terror without winning the further and say that if China of NSW war on poverty. “There's an organisation attacked Taiwan, we would called Youth Entrepreneurs support Taiwan, no doubt, “What Australians may be Organisation and membership with America. But if Taiwan hearing is that September the is based on invitation only. wants to provoke China by 11th 2001 was dreadful, 3000 Members are people who are going and taking independ- tragic deaths. Of course, on founders or controlling ence, I think we should tell that date there were another shareholders of companies them that we're not going to 20,000 - mainly children - that have a turnover of over be a part of that.” who died in the world. That $US1 million. wasn't reported. Then CHARLES GOODE AC September the 12th and “In Australia we have 210 Chairman, ANZ Banking Group September the 13th , another members and of this group, 20,000 and another 20,000 42 per cent of the members died from preventable dis- have businesses who export eases and malnutrition.” overseas with over two-thirds TIM COSTELLO of that number listing Asia as their primary market or the CEO of World Vision Australia market with the most relevance for their growth.” THAO NGUYEN

Australian Youth Representative to the United Nations

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PRIME MINISTER’S ADDRESS

"Our focus has been on the common interests between Australia and the countries of Asia, while acknowledging that there will be times when we have differences over particular issues. This mature and practical approach to engagement continues to bear fruit." Prime Minister The Hon John Howard MP

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PRIME MINISTER’S ADDRESS: HIGHLIGHTS

The Hon John Howard MP, Prime Minister of Australia, gave the keynote address of the day. He was introduced by Mr Baillieu Myer, Co-Founder and Director of the Myer Foundation and Patron of Asialink. Professor Kwong Lee Dow AM, Vice-Chancellor of The University of Melbourne, gave a vote of thanks. For a transcript of the Prime Minister's address, see page 37.

“The government's relationship with China. That As Patron of Asialink, last “The nation's schools and commitment to close achievement, as you know, Tuesday night I had the great universities are where the engagement with Asia was symbolised last year in pleasure of hosting inter-generational transition proceeds, as it must, on the the national Parliament when, [Malaysian] Prime Minister for young people for life in basis of mutual respect. A key on successive days, the Abdullah Badawi… let me say, this region occurs. We heard part of this engagement has President of the United States Prime Minister, that he this morning from business been our willingness to and the President of the mentioned the word "friend" leaders and from others that appreciate Asia's diversity. People's Republic of China or "friendship" seven times we hope that government will Simple propositions addressed our national during his short speech when provide further support, masquerading as grand Parliament.... referring to Australia and to greater support, for young strategy fail to take account of you personally. people to understand the "Just as we expect our Asia's diversity. So too they cultures and the communities, neighbours to respect our “Under your leadership, some distort Australia's position as and the languages of our values and institutions, we profound things have taken a western country with a region. We hope that both have tried to develop a place to make our relationship unique network of political, levels of government will greater understanding of and with ASEAN more substantial economic and people-to- consider this priority as they sensitivity to the historic and and mutually enriching. people links with Asia. form future budgets.” cultural foundations of their “You are well aware that the "I make no apology for the societies. KWONG LEE DOW AM more influence we have in fact that we focus our "Our focus has been on the Asia, the more valuable we are Vice-Chancellor, The engagement on those common interests between to our other friends and allies. University of Melbourne relationships and issues that Australia and the countries of Measured any way you like, matter most to Australia's Asia, while acknowledging Australia is closer to Asia. interests. In this context I that there will be times when Much has been done, more counted as one of the great we have differences over can be done, and more must successes of this country's particular issues. This mature be done.” foreign relations that we have and practical approach to simultaneously been able to BAILLIEU MYER AC engagement continues to bear strengthen our long-standing fruit." Co-founder and former ties with the United States, yet President, The Myer THE HON JOHN HOWARD MP at the same time continue to Foundation build an ever-closer Prime Minister of Australia

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SHADOW FOREIGN MINISTER’S ADDRESS

“What we face is a revolution under way and unfolding around us and I fear it is one for which we are barely prepared in terms of its long term consequences.” Shadow Foreign Minister The Hon Kevin Rudd MP

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SHADOW FOREIGN MINISTER’S ADDRESS: HIGHLIGHTS

The Hon Kevin Rudd, MP, Shadow Minister for Foreign Affairs, spoke on key trends and issues impacting Australia's relations with Asia. He was introduced by the ANU's Professor Milner, while Asialink Chairman, Mr Carrillo Gantner, gave a vote of thanks. For a transcript of the speech, see p40.

"What we face… is a "Unless we have in this “This national forum aims to "Thank you very much, Kevin, revolution under way and country a capacity over the give Asian engagement the for a very comprehensive unfolding around us and I period ahead to create an centrality it deserves in our review of many of the very, fear it is one for which we are Asia-literate Australia - one national priorities. We want to very important issues which barely prepared in terms of its which is knowledgeable and focus on the future and our we face…the rise of China, long-term consequences. familiar in the principal preparation for the future. India, the rise of Islamism, the languages of our region and Southeast Asian architecture, "So what are the principal “We open today's deliberations familiar at working with the the relationships with the change drivers affecting our with an address from The principal cultures and United States, a look at the country's future? The list is Honourable Kevin Rudd. civilisations of the region - ALP response and the familiar ... the first, inevitably, Trained in Asian studies, then frankly the task we face differences from current is the rise of China; the experienced as a professional will be very difficult indeed. government policy. second, the rise of India; diplomat, he brings an third, the rise of militant "It's the basic question of extraordinary amount of savvy "And - what I think will be Islamism in Southeast Asia; respect: that we are a small to the issue of Australia's one of the most important fourth, the emergence of country of 20 million people engagement with Asia.” issues arising today - this competing visions of a aside a continent of some two ANTHONY MILNER whole issue of education of regional architecture for wider to three billion containing young Australians and how we Dean, Faculty of Asian Studies East Asia, from which there is within it many high cultures look to the future and invest and Basham Professor of Asian a risk that we may be and civilisations which were in the future so that we don't History, The Australian excluded; and finally, considerably longer in lose another generation of National University overarching all the above, the existence before Arthur Philip young people and send them future global posture of the happened upon Botany Bay. out into the world ill- United States. equipped to deal with the "The task of preparing for our neighbourhood in which we "Together these have a long-term strategic live." capability to rewrite the shape engagement with Asia is an of our region, and the inter-generational task. It CARRILLO GANTNER AO challenge we confront is are requires much planning, Chairman, The Asialink Centre we nationally prepared for it? much forethought, much My argument today is that we foresight." are not. THE HON KEVIN RUDD MP

Shadow Foreign Minister

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SESSION 2

“I’m quite encouraged by the Honourable Kevin Rudd’s proposal on comprehensive engagement of Australia in Asia, both in deeds and in words and bipartisan foreign policy. Let’s hope it will go that far.” Pranee Thiparat

Former chair, ASEAN, Institute of Security and International Studies

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SESSION 2: EXPECTATIONS FOR AUSTRALIA: ASIAN PERSPECTIVES

International speakers gave their views on what expectations were operating in the Asian region regarding future trends, dangers and opportunities. They offered a range of Asian perspectives on Australia's role in Asia.

Chair: Pranee Thiparat, Former Chair of ASEAN ISIS Network Respondent: Greg Sheridan, Foreign Editor, The Australian

“I know there is a great “Whether we accept Australia to put Japan and China in the accepting Australia in some breadth in understanding of as a member [of an East Asian one framework - to find a way way, but not immediately. Asia, but there is not the community], or as a partner to stabilise that part of the What you should do depth. For example, how to cooperate with, is still a region. Another is to create in immediately is find all kinds much would an Australian question. Sometimes people East Asia some kind of of comprehensive ways to get diplomat understand about say we should encourage institution for the long term. closer to Asia.” ethnic issues? A lot of issues Australia to join, but some It will improve the balance in ZHANG YUN LING in Malaysia, Indonesia, disagree. From Australia itself the Pacific relationship are deeply ethni- we see a debate whether you between East Asia and the Director, Institute of Asia- cised, despite the fact that [on are an Asian country or Asian United States… Pacific Studies, Chinese the face] it is all legal and partner. Academy of Social Sciences “Australia is not just an arm general.” “Australia from the Chinese or a deputy of the United SHAMSUL AB perspective is not an Asian States alliance… Australia Director, Institute of Malay country. It's a western [might] identify itself as a World & Civilisation and country, but close to Asia. It's middle power to play a role, Institute of Occidental Studies, a special partner, a special to mitigate and associate, The National University of neighbour… cooperate, to bridge the others together, to play a Malaysia “But an East Asian identity - positive role and loosen community building - is a big tensions. thing for a number of reasons: one is to find a way to bring “If East Asia really can move China and ASEAN closer. to a regional identity with Already we have seen enough confidence, maybe progress [on this]. Another is that opens the way to

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SESSION 2

"We have tried in ASEAN to “If an agreement between “Many of our friends in the Asians can't expect of course encourage people-to-people India and Pakistan can region have utterly that we'll always agree with dialogue, and it is only somehow be conjured into contradictory expectations of them, just as we don't always recently that it has started being through international us and each presentation we agree with the United States - happening. I wonder how pressure... then the place heard [today] emphasized the and anyone who would Australians can be involved in would be much better. Here is national interests of each suggest that our foreign policy this dialogue - people to a chance for Australian nation, which is absolutely is the same as the United people. It is an important diplomacy - not in any heavy- sensible, but there is no single States simply doesn't follow question." handed preacher way, not Asian expectation of Australia. Australian foreign policy… because you're on the side of "China has proved since 1997 “Japan and China, for “Asia can expect of Australia the international, the that she is a great power… example, would have quite that it would speak honestly discriminatory, global, nuclear and I think we are moving contradictory expectations of and, in a positive way, bargaining, but [because you closer - "we" meaning ASEAN - Australia in terms of contribute to all the regional are] on the side of peace - to moving very close to China." prosecuting the American dynamics and regional come in and encourage those alliance or indeed on the architecture…For example, we PRANEE THIPARAT trends that want to impose Taiwan question. Thailand need to be honest and self-restraint in these two Former chair, ASEAN, Institute and Indonesia, at least at the friendly enough with our countries.” of Security and International government level, have very Chinese friends to tell them Studies “I grew up with Australian contradictory expectations that we in Australia admire cricket. It's an extremely about our participation in Taiwan's democracy, we care strong bond… there are many Iraq… about its people, and we contacts, even on issues of would strenuously oppose the “What Asians can expect from terrorism where important use of force by China to settle us is that we be successful in lessons can be learned. the Taiwan question.” our own terms; that we NARASIMHAN RAM produce an economically GREG SHERIDAN Editor-in-Chief, 'The Hindu', dynamic, positive, successful, Foreign Editor, The Australian 'Frontline', 'Business Line', multicultural, tolerant society. and 'The Sportstar', India

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SESSION 2

“Policies are often the produce of the social mind. Policy is the representation of what the society is aiming at, thus developing and understanding policies would require understanding people at micro level, as well as macro level. What can be a better solution than education to understand each other?

“Only 50 per cent of Australian schools have introduced Asian studies, even after 10 years of effort. Twenty-five per cent of schools do not teach anything about Asia. Where can Australian students learn about Asia? Shouldn't Australia be more aware of Asian culture?” LEE OK HWA

Assistant Professor, Chungbuk National University, Republic of Korea

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SESSION 3

“What strikes me as remarkable about this gathering is who is here. It's the spectrum of people that are here… What that tells me is that there is some sort of shared sense - across a fairly broad section of the community - that we need a bit of fresh thinking and a new intensity, new effort, in thinking about our relations with the region.” Andrew MacIntyre

Director, Asia Pacific School of Economics and Government, The Australian National University

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SESSION 3: ECONOMIC ISSUES

In the session on economic issues, delegates addressed a number of key questions: What are the important challenges and opportunities for Australian business in the region? What are the most effective strategies for strengthening Australia's trade and investment with the Asian region? What skills are essential for Australians to compete effectively in the new global environment? Chair: Professor Andrew MacIntyre, Director, Asia Pacific School of Economics and Government, The Australian National University

“We see now much more networking system right and political favours that some of “Unquestionably, the best complexity in the supply it promotes the evolution of you were referring to earlier thing to do, as Christopher chain between the raw the system and it lets new today…It puts us in what we said, is you must support the material and the final people in. might call a "providore role" WTO round. And the consumer… Businesses are “Bilateralism doesn't support in China… we need to think multilateral round is the thinking very differently this vision… It's inconsistent much bigger than a providore game. about themselves and they're with the evolution of the role for China.” “However, it's a bit like two separating their production network structure that is CHRISTOPHER FINDLAY games of musical chairs taking processes from the services characterising business in our Professor of Economics, place. On the one hand you've end of their business. And region. Australia-Japan Research got the WTO - the music is they're doing design in one “But we're in a game now Centre, The Australian hardly being played and the place and production in where we are pursuing a National University chairs are hardly there. And another. number of bilateral strategies there's a second game going “If you come at this from the and we need to think hard on over here, and it's called background of this network about … how we're going regional or bilateral and the perspective - of how things manage some of the risks that music is in full swing. get from a raw material stage that strategy involves. “This is a competitive business to a final consumer - you “If we go to China and do a environment. There is no wouldn't be surprised if I very old-fashioned deal, escape from being engaged in argue now that the best, most preferential trading the opportunities that present efficient set of arrangements arrangement, a bilateral FTA, themselves.” for organising trade in that it actually puts us in an environment, is a multilateral HUGH MORGAN AC extremely difficult position. It one because that creates the exposes us to the Chinese President, Business Council of best opportunities to get that strategy of exploiting those Australia

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SESSION 3

“First of all, the effect of these “These (bilateral FTA's) are “We actually still carry a “Australia is outstanding FTAs, and our involvement in about trade and about putting slightly colonial view of Asia - certainly in East Asia as one negotiations, will have a Australia's name up in lights my God, that's anything from country which does not see transformational impact upon and our products up in lights the truth today… Forty that education is a field which Australian enterprise and and our openness in lights, million people in the middle is absolutely fundamental to Australia will move from particularly in countries of class in China and growing the future of the country.” corporate to enterprise Asia but it also relates to the rapidly - much bigger than HOWARD DICK culture. There will be a much US.” Australia. That's an important Co-Director, Australian Centre stronger focus on the role of MURRAY McLEAN OAM issue: understanding the small to medium size cultural issues of our for International Business, The enterprises. Deputy Secretary, Department neighbours and of the world. University of Melbourne of Foreign Affairs and Trade “Secondly, China is not the “Our political leaders, leaders main game. The world is the in business have the main game. The market is the opportunity to create the globe. space for relationships to flourish and that involves “Today there are four Chinese building on the things that to every one American and in we're already doing. Business 2050, there will be two for has been in Asia for 30, 40 every one American - and years and longer and there's you've got an ageing Chinese been a lot of success - a lot of population and you've got a good relationships. We should dynamic US population.” celebrate those.” PHILLIP SCANLAN AM MICHAEL ROUX Principal, Inteq Limited Vice Chairman, Citigroup Australia

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SESSION 3

“Without investing in those “It seems to me that too “We've got in our midst many, language skills in the school seldom in reflections on China many young Australians from years, we will leave our young do people grapple with the all sorts of cultures… but we people strategically behind very serious challenges that hardly use [them] efficiently. those that are emerging as the Chinese government faces “I would like to throw down major competitors within our in sustaining its growth, in the challenge for the business region. And those language overhauling institutions, community... to give a helping skills will provide a window starting with financial hand to the struggling issue of into the culture and the institutions, and dealing with - language teaching at all understanding that we need.” to put it very broadly - public levels.” KEN SMITH information. This was evidenced to some extent with PHONG NGUYEN Director General, Queensland the SARS crisis.” Chair of the Ethnic Department of Education and PAUL MONK Communities Council of the Arts Victoria Co-founder and Principal, Austhink

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SESSION 3

“The growth rate which we see “In terms of elaborately “About 12 per cent of [Year “At the Asialink ASEAN in Asia makes it a very viable transformed manufacturing 12] students are taking a conversations, perhaps the market for architectural our market share is declining language other than English. most stimulating session was services and for planning in Asia and unless we put in For maths, it is around 85 about trade and the FTAs. We services. Architects' fees the R&D, the skills base, we per cent.” were privileged to host both across the board in Australia are at risk... SUSAN PASCOE one of the senior Australian averaged 17 to 18 per cent and one of the senior “We need respect for the from Asian sources over the Executive Director, Catholic Singaporean negotiators of workers in these countries last six years. In my own Education Commission those agreements and they and, in our own, where the firm's case, 34 per cent of our Victoria both said that the hardest profits are being made off fees came from Asia last part - and where they had them and their lives are year.” learnt the most - was actually pretty miserable. So labour dealing with the cultural JOHN BILMON standards, environmental issues that lay behind the standards are at the core of Managing Director, PTW technical trade matters. Architects our future sustainability.” SHARAN BURROW “Where they had learned to grapple with those prior to President, Australian Council the negotiations in terms of of Trade Unions briefings and reading, that had facilitated the actual trade negotiations more than any other preparation… “So it was the cultural underlying of the business that was the fundamental issue for them to deal with.” CARRILLO GANTNER AO

Chairman, The Asialink Centre

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SESSION 3

“We have probably 800,000 students in our universities at the moment… fewer than two per cent last year were doing an Asian language of any kind, at any level of ability. Of that two per cent, probably half were students from Asia themselves.

“The study of Asia - politics, history, cultural things: fewer than five per cent of that 800,000 cohort are doing any study at all about a country of Asia.

“Indonesian, once such a flourishing activity, is no longer so. It hangs on in various ways, but “hang on” is the operative verb.” ROBIN JEFFREY

President, Asian Studies Association of Australia

25 2004 NATIONAL FORUM

SESSION 4

“The three key points we want to address in this session on security are: first of all, how regional security dynamics have changed since 9/11; secondly, what are some of the critical challenges facing Australia's defence and police planners over the next decade? Thirdly, we want to look at the strategies we need to adopt to deal with these challenges.” Michael Maher

Asia Pacific Editor, ABC News and Current Affairs

26 2004 NATIONAL FORUM

SESSION 4: SECURITY ISSUES

The security session aimed to look at changes in regional security dynamics since 9/11, and the challenges ahead for Australia's defence planning. Chair: Mr Michael Maher, Asia Pacific Editor, ABC News and Current Affairs

“Those who say geography central for us - but I'll tell you “There would be very little role? Our role, I think, is to doesn't matter are careless what is the central issue: that I'd disagree with in what help build capability to deal and irresponsible with the understanding the sources of Paul had to say, but a range of with them.” national security and I say American conduct, issues are eating at the heart BILL PATERSON PSM that advisedly. When people particularly post 9/11... We of a number of countries in proclaim that nations' states have an Australia-Japan Southeast Asia. They are the First Assistant Secretary, are no longer trumps, have I centre; we study, in a issues of illegal people South and Southeast Asia missed something or is there a disciplined way, Indonesia movements, piracy, terrorism, Division, Department of risk of a major power war on and China. There is no focus smuggling, money laundering Foreign Affairs and Trade the Korean Peninsula, across for the study of the United and narcotics. the Taiwan Straits and States in this country, not in “In our engagement of the between India and Pakistan? the intelligence community, region, we have to That is our difference with not in the policy community acknowledge that for some of Europe. In Europe now, the and certainly not in these countries, these are the risk of war between the major academia.” security threats. They're no powers is an obsolete concept. PAUL DIBB AM longer the threats of potential It is not an obsolete concept attack from an armed force in Asia. To say that nation Chairman, Strategic and from China, the communist states no longer matter, and Defence Studies Centre, The insurgencies, Japanese that all that matters is Australian National University militarism, or whatever. international terrorism, is careless in the extreme. “They are insidious threats from within and across “Understanding China, Southeast Asia. What's our understanding Indonesia are

27 2004 NATIONAL FORUM

SESSION 4

“An institute for US studies “Australians need to learn “A decade ago now, at the end need to think about other might sound gimmicky to how to relate comfortably to of the Cold War, there was a ways of adding ballast to that some - it did to me the first religious issues, not only at great burgeoning of activity of cooperative structure. time. But there really is a lack home but in nations overseas, various sorts: the creation of “Track 2 - for instance the of depth and comprehension, and to become very aware of multilateral dialogue fora, the Council for Security a lack of understanding of the very different modes of creation of new pan-regional Cooperation in the Asia Pacific fundamentally different managing religious diversity. institutions such as the ASEAN - has been a mechanism which culture - of money, religion, Regional Forum, the “We have the expertise in our receives a lot of favourable the military, freedom, beginnings of greater universities; we have a very response in Asia… and in ingrained notions - that transparency in the region, rich expertise in our religious several areas - maritime people in a more egalitarian the implementation of new communities - and that needs cooperation, preventive country have some difficulty confidence-building measures to be drawn on.” diplomacy, trans-national in grappling with.” in the region, and an crime and some of those GARY BOUMA enormous growth in defence THE HON ANDREW PEACOCK AC human security issues. I think cooperation among defence Deputy Chairperson, the Track 2 process can really President, Boeing Australia forces, including the Australian Chapter, World add a lot.” Australian Defence Force. Conference on Religion and DESMOND BALL Peace “A lot of that collapsed during the economic crisis and then Strategic and Defence Studies the problems between Centre, The Australian Australia and Indonesia in 99 National University and . We're in the process of now reconstructing a lot of that regional security cooperation … we have to take into account some of the things we're doing on the counter-terrorist side, where there's big scope for a lot more cooperation, but we also

28 2004 NATIONAL FORUM

SESSION 4

“I do think one of the main “China was a great beneficiary challenges that Australian of two of the very large crises defence and foreign policy in the world over the past planners will continue to seven to eight years. First of grapple with in the years to all, during the Asian financial come is the challenge of state crisis of 1997-98: its ability weakness particularly in the to sail through that, unlike south-west Pacific… you can't most of its neighbours, just insulate yourself from changed perceptions in the problems and internal decline rest of the world of what in a state on your doorstep. Southeast Asia was like and facilitated the floodtide of FDI “Building up Solomon Islands' towards China that we've seen institutions is going to take a since. number of years… We're about to deploy 300 or so “The second great crisis that it police and public servants to benefited from, of course, was Papua New Guinea. 9/11, mostly because it “There's a very commendable rescued - in the nick of time - renewed focus on the South the US-China relationship Pacific. The challenge for from going down a perilous Australia is to make sure… the new path to Chinese focus remains and that it is identification by the neocons long term, and that it doesn't as a new evil empire.” fall victim to competing ALLAN GYNGELL domestic and international Executive Director, Lowy imperatives.” Institute for International ELSINA WAINWRIGHT Policy Program Director, Australian Strategic Policy Institute

29 2004 NATIONAL FORUM

SESSION 5

“Soft Power is rarely discussed or analysed in Australia today, yet I do think it's quite critical to our engagement in the region. It goes to issues such as the influence we have, and… one of the interesting features of it is that governments don't always control Soft Power. It goes to image, media, NGOs, institutional arrangements.” Paul Kelly

Editor-at-Large, The Australian

30 2004 NATIONAL FORUM

SESSION 5: ‘SOFT POWER’ ISSUES

The final session of the day offered an overview of some of Australia's important “soft power” assets in the region - and suggested proactive strategies to maximise influence.

Chair: Mr Paul Kelly, Editor-at-Large, The Australian

“About four years ago, there lost something through that. “A key element of the leader of an organisation was a 50th anniversary [UNSW's Neighbours] program engaged, even if only “I think there's too much meeting celebrating the is that it's trying to encourage inevitably because they're the emphasis on that. It's Colombo Plan, sponsored by relationships between leader, that will have a important to us. I mean, if it the government, which organizations, and catalytic impact. stopped tomorrow we'd all be brought people from all particularly between leaders in deep trouble at the ANU. “If it encourages people to around the world. And the of organizations, rather than Twenty-two per cent of our think that it is respected in minister who was there just between individuals. total student population is the organisation that they're remarked on the fact how There are a number of very from outside Australia. It's in, that one is Asia literate, to much these people loved and valuable programs trying to probably the national average, use a term from earlier, then had great affection for encourage linkages on an 22 per cent. There are billions it will encourage people who Australia. individual basis, very often of dollars brought into the are not obsessively Asianist to aimed at young people, and “Many of them were leaders, country into our universities nevertheless try to become we've heard of one today that still are leaders in their through that, but it changes familiar with that part of the will be expanded. countries, and I think that the relationship. It changes world.” their attention to and the relationship sometimes for “I think they're valuable… but JULIAN DISNEY AO understanding of Australia - the worse because it's I think that quite often those and indeed to an extent, ours commercial, pure, in many programs do run the risk of Director, Social Justice Project, of them and their countries - respects, and it's seen to be eventually just being an The University of New South came out of that process. So, such by us and by those interesting experience that Wales we have many thousands of students. It changes the someone had early in their Australian university alumni relationship sometimes for the lives with which they may throughout the region - many better… Somehow, we've got regale people at the dinner more now than came straight to get the balance right.” table, but don't actually lead out of the Colombo Plan IAN CHUBB AO on to a major life long because, of course, now we're involvement. encouraged to think about Vice Chancellor, The “[However], if you can get the international education as a Australian National University business, and I think we've

31 2004 NATIONAL FORUM

SESSION 5

“If you put your minds back “[For example], one of the “A soft asset which we have in organisers or people 20 years when Japanese first things I see time and time Asia is Australia's burgeoning experienced out of the Sydney started to come to Australia, again in Asia is the Aussie involvement in the world of Olympics. I'm sure you would have all sense of humour that we're so special major events, “The single greatest repository chuckled at the groups that proud of. Aussie sense of especially sporting events… of knowledge in training a got out of the buses at humour doesn't translate so the demonstrable export of games workforce in the world Circular Quay and en masse well in Asia. It's actually seen Australian major event would be TAFE New South took pictures of the Opera as pretty disrespectful.” services and expertise. Wales… So it's clever stuff House and then en masse get about the clever country. GREIG McALLAN “It might astonish some back on the bus and went to people to realise that in “Sport is a familiar area for the next icon and took Executive General Manager, virtually all the major venues people-to-people connection, pictures of that. Eastern Hemisphere, Tourism Australia tenders for the and still is, but the traditional “It's changed. These people Olympics so far, there is an people-to-people benefits of are looking for a more in- Australian architectural sport connection are now depth experience. They're practice which has been being added to by a sharp looking to engage Australia successful. professional-to-professional and Australians - not the connection in this field of a “If I went to Dohar, I would koalas, not the kangaroos. kind that equals the sorts of find that the broadcast of the They've sort of got past that professional connections we'd Asian games will be done by point some years ago. want in Asia, in such fields as an Australian broadcaster. If I law, engineering, architecture “If we want to become good went to New Delhi where the or other disciplines.” neighbours, if we're Commonwealth Games will be responsible neighbours, we've held in 2010, I would find SANDY HOLLWAY AO got to engage the people of that their principal focus in Business Development Adviser Asia on their own terms. seeking expertise in the world and former CEO of the Sydney would be from the Melbourne Organising Committee of the Commonwealth Games Olympic Games

32 2004 NATIONAL FORUM

SESSION 5

“Through both Radio “What young Australians since it involves new continuing program of Australia and ABC Asia Pacific, should gain from their knowledge, a changed cultural funding and political and [Australia's] assets are being schooling is a body of orientation, and a shift in management attention. transmitted to quite knowledge and a set of skills perspectives about the world. “Without these characteristics, extraordinarily wide that equips them to be It impinges on politics and we'll be playing at the audiences. informed participants in values. It's a venture into margins of schooling and our discussions about our territory where prejudice and “One-third of the adult children will inhabit the relationships with Asia, racism lurk. Most demanding population of Papua New margins of Asia.” effective contributors in a of all, of course, it affects Guinea now listens regularly workforce which will teacher behaviour and the BRUCE WILSON to Radio Australia - twice the increasingly interact with school timetable. audience registered by the Chief Executive Officer, Asian workers and companies, BBC. And since December last “Because it's a long-term Curriculum Corporation and personally thoughtful, year, Radio Australia has gone complex national change, it respectful, trusting, generous on to a 24-hour FM relay has some distinctive and equitable in their own service in Port Moresby. requirements for success. The engagements with Asian engagement and commitment “In the main Asian capital colleagues and friends. must continue to be cities, ABC Asia Pacific is now “If we're to achieve these bipartisan if it's to survive the fastest growing channel in outcomes, it must be through shifts in the political Asia.” school education. environment during that 20 DONALD McDONALD AO year period. It must continue “School education is glacial in to involve all education Chairman, Australian its change processes at the jurisdictions: the Australian Broadcasting Corporation best of times, and the change government, each of the state we're engaged in here is of and territory governments, the most sophisticated kind. Catholic authorities and It will take a long time, independent schools… and it perhaps another 20 years if must involve a substantial we're honest. It's complex -

33 2004 NATIONAL FORUM

SUMMARY SESSION

“What I heard coming through pretty strongly was that it’s important that we have what might be called a strategic engagement... that we actually think - as a country - about what things we might want to do.

“If we think about it - as Australia - we might say from a strategic point of view that it’s important to maintain some rigorous capacity in Asian studies.

“That’s why what we heard from Kevin Rudd and John Howard in their separate ways today was pretty important because what I heard... was a very clear bipartisan view emerging, which is the precondition for a more strategic approach.

“Underlying all this, is the notion of not just developing a technical capacity to respond to the challenges and opportunities, but also a certain kind of disposition in which we look beyond simply economic advantage or strategic advantage... the notion of neighbourhood and all that’s implied there, and what the Prime Minister was saying: ‘It’s not just about economics: it’s about responsibility.’” Simon Longstaff

Executive Director, St James Ethics Centre

34 2004 NATIONAL FORUM

SUMMARY SESSION

Chair: Dr Simon Longstaff, Executive Director, St James Ethics Centre

“It's critical to avoid the “There's a huge gap between “We have been excited by the “If Australia is in a new stage perception that there is still your understanding and your extraordinary energy of today of engagement activism, and I quite a lot of latent racism in influence in the region. I find and also the enthusiasm. think we are, we need to Australia… I think also this very commonly when we recognise that the “What was raised consistently particularly important in do work for Australian circumstances have changed by a number of people all Indonesia and Malaysia, companies in the region. They since the heady days of the day, and significantly by the Brunei, Philippines, is that we know who is important and 80s and the early 90s. We've business representatives here, avoid any perception of they identify their had the Asian economic crisis, was the need for a major and religious intolerance. relationships with that person the Timor crisis and what ongoing and bipartisan as high and being able to some call the new terrorism - “We somehow have to [also] commitment by both levels of influence them. When you go and our new engagement get the impression across that government to our school and talk to the other side, activism, it might be argued, we're not a sort of Anglo- education.” there's a huge gap. needs to be informed by this American misfit in this part of JENNY McGREGOR learning experience. Our new the world - a sort of compliant “So what do you do?… [you optimism needs to be more echo of United States policies. need] some form of cohesive Executive Director, The savvy.” And it's not easy to pursue an top-down national vision and Asialink Centre independent foreign policy values - an aspirational vision ANTHONY MILNER within the framework of an and values, which is long Dean, Faculty of Asian Studies alliance, but that's what we term, about what is the role and Basham Professor of Asian have to do.” very long term of Australia in History, The Australian RICHARD WOOLCOTT AC the region.” National University IAN BUCHANAN Founding Director, Asia Society, Austral/Asia Centre Chairman, Australia, New Zealand and Southeast Asia, Booz Allen Hamilton

35 2004 NATIONAL FORUM

EDITED TRANSCRIPT: PRIME MINISTER

“I congratulate The Australian National University and Asialink for this and their many other initiatives to encourage greater contact and cooperation between Australia and the nations of our region.” Prime Minister The Hon John Howard MP

36 2004 NATIONAL FORUM

EDITED TRANSCRIPT: PRIME MINISTER

THE HON JOHN HOWARD MP, PRIME MINISTER OF AUSTRALIA Address to Asialink-ANU National Forum: Australia’s Engagement with Asia: A New Paradigm

Events such as this summit provide an opportunity to build understanding respect. A key part of this engagement has been our willingness to appreciate within our own community about the region in which we live and how important Asia's diversity. As I have said previously, simple propositions masquerading it is to the future prosperity and security of our country. I congratulate the as grand strategy fail to take account of Asia's diversity. So too they distort Australian National University and Asialink for this and their many other Australia's position as a western country with a unique network of political initiatives to encourage greater contact and cooperation between Australia and economic and people-to-people links with Asia. the nations of our region, and the excellent relations we enjoy currently owe much to the strong bonds and associations forged by what is often termed I make no apology for the fact that we focus our engagement on those Track 2 diplomacy; the contact and discussions between individuals and non- relationships and issues that matter most to Australia's interests. In this government institutions. context I counted as one of the great successes of this country's foreign relations that we have been simultaneously able to strengthen our long- Vigorous open debate about any government's foreign policy is crucial in a standing ties with the United States, yet at the same time continue to build an democratic society. This is especially so in respect of Australia's links with the ever-closer relationship with China. That achievement, as you know, was region, so vital to our long-term prosperity and security. In that spirit let me say symbolised last year in the national Parliament when, on successive days, the very directly and appropriately, on this day when the parliament of Australia will president of the United States and the president of the People's Republic of pass the legislation ratifying the free trade agreement between Australia and China addressed our national Parliament. I note Prof Milner's observation that the United States, that the great canard levelled against this government is “The more we engage in our region - the more we interact in commerce, that the deepening of our relations with the United States in recent years has education, tourism and diplomacy - the more we tend to recognise the come at the expense of a closer engagement with Asia. characteristics that distinguish us in the region.”

This charge proceeds on a totally false assumption - the false assumption that He is also right to say that those differences do not inhibit us forming strong there is some inevitable zero sum game where closer relations with the United bonds with Asian nations. In fact, I would argue those characteristics are States are inimical to improved relations with our region. It is profoundly wrong valued and appreciated by many of our neighbours. And just as we expect our when one notes this government's success in forging, for example, a strong neighbours to respect our values and institutions, we have tried to develop a strategic economic relationship with China. It ignores, for example, our free greater understanding of and sensitivity to the historic and cultural foundations trade agreements with Singapore and Thailand. It is misleading at a time when of their societies. we have put relations with Indonesia, despite the inevitable challenges flowing out of our proper involvement in East Timor on a more solid cooperative and Our focus has been on the common interests between Australia and the sustainable footing. countries of Asia, while acknowledging that there will be times when we have differences over particular issues. This mature and practical approach to It is equally an error now when we have agreed on a scoping study or a free engagement continues to bear fruit. trade agreement with Malaysia; the country long-seen as the least receptive to Australia's closer engagement with the region. An Australia seen by both sides Nowhere has this been more obvious than the close cooperation that has of politics in Washington as a close and trusted partner is an Australia with developed on security issues, especially between Australia and the nations of enhanced influence, not least in our own region - whether the issue is the fight South-East Asia. International solidarity and close collaboration involving against terrorism in South-East Asia, events on the Korean Peninsula, or governments and regional and multilateral organisations are critical if the fight longer term trends in regional power relations. against terrorism is to be successful. In this regard Australia has been resolute in its commitment to strengthen multilateral, as well as bilateral cooperation, The relationships we forge with other nations and our specific position on for instance in APEC and the ASEAN regional forum. issues should, and under my government always will, be determined by considerations of Australia's national interest and in accordance with Australian There are few more important tools at the present time than the network of values. And so it should be, because I have long argued that any disconnect nine bilateral counter-terrorism arrangements Australia has put in place with between foreign policy and national values jeopardises the domestic regional neighbours, focusing as they do on law enforcement, border control community support that is absolutely crucial to achieving Australia's foreign and port security. They are the foundation for practical operational level policy objectives. cooperation between police, intelligence agencies, security authorities, customs and immigration services, defence forces, central banks, and financial In my view some Australian commentary about the region rests on a second units. Our strategic engagement has also been supported by a network of false assumption and that is that there is some singular entity called Asia bilateral security dialogues. which we should approach always and everywhere with the same level of intensity independent of Australia's interests. The government's commitment to Over the past eight and a half years we have expanded the network to include close engagement with Asia proceeds, as it must, on the basis of mutual key regional partners; Japan, Korea, Vietnam, the Philippines and India, in

37 2004 NATIONAL FORUM

EDITED TRANSCRIPT: PRIME MINISTER

addition to the longstanding arrangements with China and Indonesia, and we have also, as you know, worked very hard as Prime Minister to build an look forward to arranging our first politico-military talks with Malaysia some enduring relationship with China; a relationship which is mature, practical, and time this year. Australia has continued to work hard to strengthen its defence of course, substantial. At the ministerial level our political relationship is more cooperation relationships with key regional partners in ASEAN and it is worth vibrant than it has ever been. Most members of the Australian cabinet have noting that our contribution to defence cooperation in South-East Asia is visited China. Similarly, almost all the members of China's politburo standing second only to that provided by the United States. committee have now been to Australia, and I interpolate that I think I'm the first leader of a western democratic political party, certainly of the centre right, to Australia has also recognised that helping countries develop their own have addressed the cadres of the Central Committee of the Chinese capabilities to fight terrorism is as important as operational level cooperation. Communist Party. In addition to capacity-building packages for Indonesia and the Philippines, Australia is contributing $36.8 million to the Centre for Law Enforcement The government's approach to China has been based on three key elements: Cooperation in Jakarta. This international education and training institution will maintaining high level contact, frank dialogue and a shared commitment to greatly increase the ability of our region to respond to the complex challenges constructive relations based on mutual respect. That does not mean side- posed by the operation of international terrorists in our region, but perhaps of stepping issues where we differ. That would be inconsistent with our values even more immediate significance are the growing connections we have been and the very notion of mutual respect. But it does mean that we agree to able to forge with the region's police forces. manage those issues in a mature and sensitive way. Increasingly, we are being recognised as a trusted partner, not just by China, but the region as a Australian Federal Police officers are now posted in Bangkok, Chiang Mai, whole. This is in part because we share an ambition to increase the wealth Hanoi, Ho Chi Minh City, Manila, Jakarta, Kuala Lumpur, Phnom Penh, Dili, and the prosperity of the region and its people. Rangoon and Singapore. Ultimately the success of the region's response to the terrorists' threat will depend on the degree to which the region's police and The government recognises that the best way to achieve open markets is security agencies can effectively cooperate, because it is at this working level through multilateral trade agreements. Undoubtedly they provide the most where the greatest gains can be made and the greatest dividends secured. comprehensive outcomes but in this uncertain and messy world it would be Along with the challenge of terrorism, North Korea's nuclear posturing foolish to rely entirely on multilateral pursuits and outcomes. My doctrine has represents yet another ingredient which creates a degree of instability and always been to look for opportunities that will deliver for Australia, and if we tension in our region. can negotiate a bilateral deal that delivers tangible benefits now, we will go for it. Australia is responding at two levels. We are engaging fully and energetically in patient diplomacy but we have also urged those nations most likely to Australia actively pursued free trade agreements with the countries of South influence the behaviour of North Korea, that is, South Korea, Japan, Russia, East Asia, either collectively or bilaterally, long before we started negotiations the United States and especially China, to speak in a firm and united fashion. with the United States. Through the hard work of the Trade Minister, Mark We believe that China in particular has a crucial role to play in that process Vaile, and the Australian negotiators, we were able to finalise free trade and we have been encouraged by China's constructive contribution to finding a agreements with Singapore and Thailand in 2002 and 2004 respectively. peaceful solution, especially its pivotal role in hosting the six-party talks. These agreements are indicative of Australia's increasing engagement with those nations and the gains are not exclusively economic because the It must be understood that what is still properly called the ANZUS Alliance resulting increased level of contact will inevitably encourage greater cross- does not isolate us from our neighbours. It adds to our value. ANZUS cultural exchange and awareness. combines with the other security alliance and the arrangements the United States has forged throughout Asia - not only with Japan and Korea, but also The momentum from these agreements is building. During her recent visit to with Thailand and the Philippines - to form a strategic framework that helps to Australia, the Malaysian Trade Minister, Rafidah Aziz, and Mr Vaile, agreed keep the whole region stable. It is self-evident that the relationship between that Australia and Malaysia should explore the possibility of a free trade the United States and China will be extremely important, indeed, crucial to the agreement Similarly, the government recently concluded a trade and economic stability of our region. Our aim is unashamedly to see a continued, calm and framework with China which includes a commitment to undertake a detailed constructive dialogue between the United States and China, something we joint study into the feasibility and benefits of an Australia-China free trade take an opportunity of urging on every available occasion. agreement.

The government recognises that as a nation which has different but China has experienced remarkable economic development over the last 20 nonetheless close relationships with both countries, Australia is well placed to years; development that has seen it become one of the world's most dynamic promote and support and encourage that constructive dialogue. Our economics and one of Australia's most important economic partners. relationship with the United States is well-known and well-understood but I Increased opportunities in China from its surging economy do not, however,

38 2004 NATIONAL FORUM

EDITED TRANSCRIPT: PRIME MINISTER

mean diminished opportunities in Japan. Trade and investment links between 61 per cent of Australia's official development assistance, more than 1.2 billion, China and Japan themselves are growing strongly. In fact the growth in was directed to countries in the Asia-Pacific. I see our role as a friend and Japanese exports to China is helping fuel Japanese economic recovery. The partner helping our neighbours to build their own futures. That is why I am very Australian and Chinese economies strongly complement each other. China is pleased today to announce a significant expansion of the Australia Youth already our number one market for iron, steel and wool. Ambassador for Development Program. The government has decided to commit an extra $24.5 million over the next four years with funding for this In 2003 more than 190,000 students from Asian countries were studying in program essentially doubling by 2006. Australian educational institutions. Australia is also a leader in establishing joint education projects in country with programs already under way in China, Currently there are 230 youth ambassadors on short-term assignments in Vietnam and Indonesia. Last year educational activities with our Asian developing countries throughout the Asia-Pacific. By 2006 there will be some neighbours generated some $4.4 billion of income for the Australian economy 400 young Australians selected for overseas development assignments. Not but we should never be complacent about these opportunities. Increasingly, we only do these young people make a terrific contribution to the development of are looking to our west and observing India's growing political and economic our region but they are playing a really positive role in strengthening mutual weight and India is looking east seeking to forge stronger links with our region. understanding between Australia and our neighbours, and I know that our best and brightest have been attracted to this program. The indications are that India is set to become one of Australia's most important regional and bilateral partners. Australia is already the third-largest So in conclusion, ladies and gentlemen, can I again thank the forum for the destination for Indian students seeking higher professional skills and new opportunity of sharing my thoughts on what we have endeavoured to achieve; initiatives in educational exchange hold particular promise for strengthening of reminding this audience of the goal we had in achieving an appropriate not only commercial links, but the people-to-people links which are so vital to balance in our foreign policy between the undeniable fact that our immediate growing that relationship. India and Australia enjoy similar democratic destiny and strategic position is permanently tied up with this part of the world, institutions; legal, financial and governmental structures. We are both and it will always be a central responsibility of the government of this country, Commonwealth members and strong advocates of that organisation's whatever its political stripe, to maintain and continue to expand relations and democratic principles. We share a common language and, of course, a understandings with the people of the Asia-Pacific region. I again congratulate passion for a great game that does not need to be named. those who have organised this forum for the continued focus on the links between Australia and Asia and I hope my thoughts and contributions of other The Indian Ocean may divide us geographically but its strategic importance to members of my government have been of great assistance. Thank you. Australia and the region as a whole is a very significant unifying factor in that relationship. Our common security interests, especially in relation to combating and responding to international terrorism, led to last year's MOU on counter- terrorism. Not surprisingly, both nations are very focused on the maritime security of the Indian Ocean. Our economies also have strong complementarities. India is already Australia's seventh-largest merchandise export market and Australia is one of the top 10 investors in India.

As you can see, solid groundwork has been laid and I'm looking forward to seeing considerable benefit accrue to both nations, over the next decade, from the continued strengthening and growth of that bilateral relationship.

But being a part of the Asia Pacific is not simply about opportunity. It is also about responsibility. Over the last eight and a half years Australia has demonstrated its willingness to contribute - as with our response to the financial crisis of 1997 and our involvement in the liberation of East Timor. I am also very proud of Australia's recent participation in the assistance mission to the Solomon Islands. The Ramsey intervention, to which so many countries in the Pacific contributed has been a remarkable success, and we are particularly pleased by the fact that it was not a solo Australian effort.

The government's aid program has played an integral role in promoting Australia's efforts to support regional development and stability. In 2003-4, over

39 2004 NATIONAL FORUM

EDITED TRANSCRIPT: SHADOW FOREIGN MINISTER

THE HON KEVIN RUDD MP, OPPOSITION FOREIGN SPOKESMAN ON FOREIGN AFFAIRS Address to Asialink-ANU National Forum: Australia’s Engagement with Asia: A New Paradigm

What we face is a revolution under way and unfolding around us and I fear it is elected a president whose political party maintains a level of formal one for which we are barely prepared in terms of its long-term consequences. commitment to Taiwan achieving its independence. A central policy dynamic for the future strategic stability and economic growth of East Asia is how this If I can read from the lead article this month in Foreign Affairs Magazine, central question is handled. entitled “A Global Power Shift in the Making” - I'll just read you the first part: In addition to China, India is emerging as a second major economic engine of A transfer of power from west to east is gathering pace and soon will growth here in the wider region. A decade following India's departure from dramatically change the context for dealing with international challenges as previous unsuccessful economic models, a series of market-based reforms well as the challenges themselves. Many in the west are aware of Asia's have now realised significant growth in the Indian economy. We are today growing strength. This awareness, however, has not yet been translated into seeing the emergence of a country very much focused on its future. Its strive preparedness. Major shifts of power between states, not to mention regions, forward will, if harnessed constructively, be a major and welcome influence in occur infrequently and rarely peacefully. the development of our wider region.

That, in many respects, is our text for today. So what are the principal change A third major driver of global and regional change in the period ahead is drivers affecting our country's future? The list is familiar but I fear the terrorism: its driving forces, its political manifestation and the reactions to it by consequences for the country are less so: the first, inevitably, is the rise of governments, by corporations and by populations around the world and around China; the second, almost as inevitably, the rise of India; third, the rise of our neighbourhood. Terrorism is not a new phenomenon in history; it is a form militant Islamism in Southeast Asia; fourth, the emergence of competing of asymmetric warfare waged by non-state actors against other governments, visions of a regional architecture for wider East Asia, from which there is a risk against governments here in our own region. It usually takes the form of that we may be excluded; and finally, overarching all the above, the future threats of violence or the application of violence to civilian or non-armed global posture of the United States. targets in order to extract political concessions from the state actors in question. The inherent asymmetric nature of terrorism is illustrated by Dr Together these change drivers have a capability to rewrite the shape of our Zachary Abuza, probably the world's leading authority in Jemaah Islamiah who region over the next quarter century and the challenge we confront is are we noted recently, and I quote: nationally prepared for it? My argument today is that we are not and we must, at every level, radically lift our national game. The Bali bombing in which 202 people were killed and led to the estimated loss of more than $1 billion in tourism revenue for the country, that is, Parallel to China's emergence as a significant economic power, China is also Indonesia, cost under $35,000. Terrorism is truly asymmetric warfare. emerging as a much more active participant in regional and global foreign policy. This is new. In the United Nations, the WTO, the Six Party Talks on A critical question arises as to how Al Qaeda, Jemaah Islamiah and their North Korea, APEC, the ASEAN Regional Forum, ASEAN Plus Three, in associated organisations continue to recruit effectively in Southeast Asia, given addition to negotiating a range of bilateral FTAs within the region, China is no the intensity of the Bali bombings and other attacks and the reactions to them longer a passive factor in the overall international policy terrain. It is an active across the region. player, an active participant, pursuing its interests with vigour. We can expect these trends and developments to continue into the period ahead. Beyond the appeal of their original jihadist mission, to understand this phenomenon we must also look to the underlying social, economic, political Likewise, we can already see that a pivotal challenge for regional policy- factors in Indonesia and elsewhere which continue to enable these makers in the decades ahead will be the task of maintaining a constructive organisations to recruit. We must also look at how these organisations relationship between China and the United States. Over the past 25 years we continue to be financed. There's a combination of all these factors that gives have seen that relationship go through several permutations as both countries rise to the continuing terrorist threat against Australians and Australian have attempted to gain each other's measure. Nonetheless, while significant interests across Southeast Asia. disagreements remain, Sino-US cooperation, the war against terrorism, China's hosting the Six Party talks on Korea, in addition to a burgeoning A fourth change driver in the region is the emerging debate on the future bilateral economic relationship, all point to the current relationship between shape of our regional architecture both economic and strategic. Unlike in Washington and Beijing being and staying in good shape for some time to Europe, East Asia has not yet developed strong regionwide institutions come. fostering economic cooperation and collective security. The region's increasing economic interdependence has been driven by the economic reconstruction of The one potential cloud on the horizon is of course Taiwan. It is well known Japan, the growing intra-regional trade and investment flows, and the rapid that Chinese policy remains the reunification of China while refusing, development of the newly industrialised economies of Southeast Asia and ultimately, to rule out the military option. For its part, Taiwan has recently re- China's economic growth.

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Similarly, on regional security, there is no NATO in East Asia nor is there an Australia noted recently, and I quote: East Asian equivalent of the CSCE, the Conference on Security Cooperation in Europe; rather, the region's security has been underpinned by a strong The point that is relevant to us in Australia is that, even if some of the continuing US strategic presence reinforced by a range of alliance economic issues currently under discussion in East Asia do not seem to be relationships in key regional powers. primary issues in our narrow national interest, the institutional framework which builds up around those issues will be the forum and structures on which US strategic engagement has helped prevent the re-emergence of historical deeper regional integration will be built. tensions between the region's major powers, and this has to be welcomed. Since the Vietnam War, US strategic engagement has prevented the region's We may not think these issues are of pressing importance to us, but if we let unresolved territorial disputes from erupting into full-scale armed conflict in them go through to the keeper, then we will miss out on the other more East Asia. A vigorous debate, however, is now taking place about the future nebulous benefits of regional integration, learning how to get along with one shape of a pan-regional architecture. Unlike in Europe, this is very much a another. We need to recognise that there is already a very active network of work still in progress, but the debate itself should be regarded as a significant cooperation built largely around ASEAN Plus Three, and the importance of this change driver in the decade ahead. goes beyond the often technical nature of the specific links. Of course, even if we are keep to take part, our Asian counterparts may take some persuading. ASEAN is one of the oldest continuing organisations in the region, founded as a strategic counterweight to communist victories in Indochina. ASEAN oversaw So how does Labor respond to the above? We do so within the framework of the rapid economic development of its original members. An indicator of our approach to foreign policy overall, a framework which we have based on ASEAN's success has been the successful accessions of its original strategic three pillars: our alliance with the United States; our membership to the United adversaries: Vietnam in 95, Laos in 97, Cambodia in 99. Beyond that, ASEAN Nations and participation in the global multilateral system; and thirdly our Plus Three - that is, ASEAN plus China plus the Republic of Korea and Japan policy of comprehensive engagement with Asia. - has emerged as a significant regional forum. Recently in a speech in Sydney I foreshadowed that should I become Foriegn APT, as it is called, meetings began to be held during the 1990s alongside Minster I would establish an India division. We must have an institutional APEC meetings. Since 97 there has been a broadening of support for capacity to drive into this country from our bureaucracy the emerging developing the APT, (ASEAN Plus Three), processes into an East Asian paramount importance of India to our nation's long-term economic and economic grouping. Factors promoting this development have included the strategic future. Also, we must inject greater political ballast into this traumatic impact on many regional economies of the Asian financial crisis from relationship. We need to establish a regular pattern, semi-annual if possible, of mid-97, which prompted many regional countries to consider the desirability of Prime Ministerial visits in both directions. We must do better on India and we greater coordination to forestall any further crises and to add greater weight for must do so now. East Asia and the region's dealings with international institutions like the IMF. On the regional architecture, I noted before that there is an emerging problem A second factor reinforcing this view was an emerging regional view that the in terms of ASEAN Plus Three, emerging in the absence of any effective ongoing development of other regional groupings in Europe and the Americas, Australian diplomatic participation. That too must change. There is a danger namely the EU and NAFTA, should be matched by greater East Asian that within the region we will see the emergence of pan-regional architecture coordination and cooperation; and, third, the inauguration of ASEM, the Asia completely in Australia's absence in shaping the rules for that region, its Europe Meeting, in 1996 which promoted greater internal dialogue within East institutional shape and the way in which it actually behaves in the time ahead. Asia to bring to the ASEM table a consolidated Asian view. This is a profound and deep challenge for Australian diplomacy. I do not confess that it is easy. Recent changes in the political leadership in parts of the Since 97, ASEAN Plus Three has developed considerable momentum. It has region will assist that process, but it must be in the top three diplomatic commissioned studies and reports to explore bases for further East Asian priorities of any incoming government in Australia. cooperation. For example, in 2001 it received a report which envisaged East Asia as moving from a region of nations to a bona-fide regional community But on the strategic side and on the security side, we must begin to look at where collective efforts are made for peace, prosperity and progress. what we can do further with the ARF, the ASEAN Regional Forum. It's a body which has a capacity to effect positive change on the security front. It is Regrettably, Australia finds itself at the margins of much of this real debate moving in the direction of greater influence but has a long way to go yet. We about the future shape of the region's political and economic architecture. For must use it, the ARF, to acquire a greater strategic role in the future. The this to change will require more effective Australian diplomacy in the future challenges, particularly in terms of pan-regional terrorism, are great - and the than in the past. For Australia, the stakes involved in this debate are very high ARF has a capacity within it to develop its mandate, given its membership, to indeed. Dr Stephen Grenville, former deputy governor of the Reserve Bank of do better on this score. To date, no regionwide strategy to defeat international

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terrorism and its sources of financial support and recruitment has been temperature of a relationship is of fundamental importance, and it is on that developed. The ASEAN regional forum is well placed to do that. question that we have seen much fraying at the edges in recent years.

On terrorism, our approach is this: bilateral arrangements with countries within The political relationship must be in first class working order but underneath it the region on security, intelligence and police cooperation front are slowly our people must also become an Asia-literate Australia. Unless we have in this developing. They need to be taken further at the regional level but our view of country a capacity over the period ahead to create an Asia-literate Australia, an effective conduct on the war against terrorism here in our own region is that one which is knowledgable and familiar in the principal languages of our region it must be the sound of two hands clapping, not the sound of one hand and familiar at working with the principal cultures and civilisations of the region, clapping. The sound of one hand clapping is that this is purely and exclusively then frankly the task we face will be very difficult indeed. a security policy, political policy, intelligence policy and/or a police law enforcement challenge. It is broader than that. Unless you address It's the basic question of respect; that we are a small country of 20 million simultaneously those factors which make it possible for jihadist organisations people aside a continent of some two to three billion containing within it many to recruit with increasing effectiveness across East Asia, you're missing the high cultures and civilisations which were considerably longer in existence other half of the equation. before Arthur Philip happened upon Botany Bay. For those reasons, deepening cultural respect, deepening our understanding of these civilisations, and For us, therefore, as a practical step in that direction, we have announced that deepening our ability linguistically to engage is a huge challenge. we will work with the Indonesian government to lead an international donor consortium with the international donor countries from the European Union, For the life of me, the one thing I cannot understand in terms of what has Japan and elsewhere to rebuild the Indonesian mainstream education system - happened in the last several years is the current government's decision to an education system which, in many respects, was fundamentally undermined abolish federal funding for a national program to teach Asian languages in our by the loss of budget revenues arising from the Asian financial crisis and the schools. We crafted that in 1994 between governments, Labor and Liberal, IMF intervention package of 97/98. State and Commonwealth. It was implemented over the following eight years. As a result, by the end of 2002, we had 750,000 kids in the Australian school Why is that important? Because an increasing trend across Indonesia has system studying either Chinese or Japanese or Indonesian, some Korean. been that, with schools running out of money, teachers not being paid and Unilaterally, the Howard government cancelled its funding for that program at there being no curriculum effectively offered in the schools, kids increasingly the end of 2002. are offered cheaper forms of education in schools which are run by Islamist organisations funded through various Saudi Arabian foundations. And as a The task of preparing for our long-term strategic engagement with Asia is an consequence - a slow but seductive introduction into Wahhabism, the minority inter-generational task. It requires much planning, much forethought, much tradition within Islam that I referred to before. foresight. That was had a decade ago and unfortunately the programs based on that have been dismantled. It is important in shaping in this country an You can sit back and allow all that to happen or you can act, you can do attitude of respect in our dealings with our regional partners. Above all these something about it. If there's one country in the world which has a fundamental things, let us return this country to a healthy and intelligent bipartisanship on interest in getting Indonesia right it's the Commonwealth of Australia. For that the question of comprehensive regional engagement... As a country of 20 to occur in partnership with our friends in Jakarta, we must do better on this million people, given the risks and challenges and opportunities we face, I front - the sound of two hands clapping, not one. believe for this country there is no alternative.

To conclude, all of these things are doable but purely on the back of effective and good bilateral political relationships with our friends and partners in the region. We can talk about that a lot, but the tonality of those relationships, their content and their feeling are fundamental factors in your ability to do business. You cannot have an effective security cooperation relationship with Jakarta unless the political relationship is in good order. If you are seeking to develop a long term 25 long economic relationship with China based on the energy and resources sector, a first class political relationship is a fundamental prerequisite.

This is not just a thing that diplomats say, it's not just a thing that foreign professionals say, it is the thing that those of us who have worked on the ground in these areas in the past know only to be true, that the political

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MEDIA REPORTS

The National Forum attracted a large contingent of national print, radio and television media. A brief selection of the coverage follows.

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MEDIA REPORTS

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MEDIA REPORTS

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PARTICIPANTS

The Right Honourable the Lord Mayor Peter ADAMSON , Lord Mayor, Darwin City Council Geoff ALLEN , Director, The Allen Consulting Group Professor Desmond BALL , Professor, Strategic and Defence Studies Centre, The Australian National University Professor Bruce BENNETT AO, Head of Department of English, Australian Defence Force Academy, The University of New South Wales John BILMON , Managing Director, PTW Architects Professor Gary BOUMA , Deputy Chairperson, Australian Chapter, World Conference on Religion and Peace Sharryn BROWNLEE , Senior Vice President, Australian Council of State School Organisations Ian BUCHANAN, Professor Michael GOOD Chairman, Australia, New Zealand and Southeast , Director, Queensland Institute of Asia, Booz Allen Hamilton Medical Research Sharan BURROW Charles GOODE AC , President, Australian Council of Trade Unions , Chairman, ANZ Banking Group Alison CARROLL, Dr Meg GURRY Director, Arts Program, The Asialink Centre , Committee Member, Beyond Australia Benjamin CHOW Committee, Myer Foundation , Chair, Council for Multicultural Australia Allan GYNGELL Professor Ian CHUBB AO , Executive Director, Lowy Institute for , Vice Chancellor, The Australian International Policy National University Tom HARLEY Reverend Tim COSTELLO , President, Corporate Development, BHP Billiton , Chief Executive, World Vision Australia Peter HAY Ross COTTRILL , Chief Executive Officer, Freehills , Executive Director, Australian Institute of Sandy HOLLWAY AO International Affairs , Director, TFG International Pty Ltd Professor Gordon DE BROUWER Lindy HYAM , Principal Advisor, Macro , Chief Executive, IDP Education Australia David INGLIS Economics, Department of Treasury , Committee Member, Beyond Australia Committee, Bruce DAVIS , Director General, Australian Agency for Myer Foundation Professor Robin JEFFREY International Development , President, Asian Studies Association of Professor Paul DIBB AM , Chairman, Strategic and Defence Australia Paul KELLY Studies Centre, The Australian National University , Editor-at-Large, The Australian Associate Professor Howard DICK Kathe KIRBY , Co-Director, Australian , Director, Asia Education Foundation Centre for International Business, The University of Melbourne Professor LEE Ok hwa Professor Julian DISNEY AO , Assistant Professor, Department of , Director, Social Justice Project, The Computer Education, Chungbuk National University, Republic of University of New South Wales Korea Graeme DOBELL Professor Kwong LEE DOW AM , Foreign Affairs & Defence Correspondent, ABC , Vice Chancellor, The University Radio Australia of Melbourne Geraldine DOOGUE AO Peter LEWIS , Presenter, Compass, ABC TV , General Manager - Global Business, Commonwealth Reverend Monsignor Thomas DOYLE PP Scientific & Industrial Research Organisation , AO, Chair, National Dr Simon LONGSTAFF Catholic Education Commission , Executive Director, St James Ethics Centre Jeremy ELLIS Tuong Quang LUU AO , Chairman, Australia Japan Foundation , General Manager, SBS Corporation Professor Christopher FINDLAY Professor Andrew MACINTYRE , Professor of Economics, , Director, Asia Pacific School of Australia-Japan Research Centre, The Australian National Economics & Government, The Australian National University Greig McALLAN University , Executive General Manager, Eastern Hemisphere, Philip FLOOD AO , Chairman, Australia Indonesia Institute Tourism Australia Donald McDONALD AO Carrillo GANTNER AO , Chairman, Australian Broadcasting , Chairman, The Asialink Centre Corporation

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PARTICIPANTS

Jenny McGREGOR Neville ROACH AO , Executive Director, The Asialink Centre , Chairman, Australia India Business Council Murray McLEAN OAM Michael ROUX , Deputy Secretary, Department of Foreign , Vice Chairman, Citigroup Australia Affairs & Trade Phillip SCANLAN AM Pamela MACKLIN , Principal, Inteq Ltd , General Manager, Curriculum Solutions, Professor Dr SHAMSUL AB , Director, Institute of the Malay Curriculum Corporation Michael MAHER World & Civilization and Institute of Occidental Studies, The , Asia Pacific Editor, ABC News and Current National Affairs Greg SHERIDAN Professor Anthony MILNER , Foreign Editor, The Australian , Dean, Faculty of Asian Studies, The The Right Honourable Ian SINCLAIR AC , Former Speaker of the Australian National University Martyn MITCHELL House of Representatives, Commonwealth of Australia , Partner, Asia Pacific Leader, Technology, Dean SMITH , Manager, Government Relations and Policy, Information, Communication and Entertainment, Insurance Australia Group PricewaterhouseCoopers Ken SMITH Dr Paul MONK , Director General, Queensland Department of , Co-Founder & Principal, Austhink Hugh MORGAN AC Education and the Arts , President, Business Council of Australia The Right Honourable the Lord Mayor John SO JP Dr Stephen MOSS , Lord Mayor, , Chief Executive Officer and Managing City of Melbourne Director, ACIL Australia Pty Ltd Dr Pranee THIPARAT , Former Chair, ASEAN ISIS Network

Baillieu MYER AC Dr Ellie WAINWRIGHT , Co-Founder and Director, Myer Foundation , Program Director, Strategy and Phong NGUYEN International Program, Australian Strategic Policy Institute , Chairperson, Ethnic Communities Council of Hugh WHITE Victoria , Director, Australian Strategic Policy Institute Thao NGUYEN Scott WIDMER , Australian Youth Representative to the United , Solicitor, Freehills Nations Bruce WILSON Susan PASCOE , Chief Executive Officer, Curriculum Corporation , Executive Director, Catholic Education Jason YAT Sen Li , Head of Sustainable Development and Head of Commission Victoria Bill PATERSON PSM China Strategy, Insurance Australia Group , First Assistant Secretary, South and Harrison YOUNG , Chairman, Morgan Stanley Australia Southeast Asia Division, Department of Foreign Affairs and Trade The Honourable Andrew PEACOCK AC Dr John YU AC , President, Boeing , Chancellor, The University of New South Wales Professor ZHANG Yun ling Australia , Director, Institute of Asia-Pacific Ken PEACOCK AM , Chairman, JSF Industry Advisory Council Studies, Chinese Academy of Social Sciences, PR China John PUTTICK , Executive Chairman, GBST Limited John RALPH AC , Chairperson, Commonwealth Bank Ltd Narasimhan RAM , Editor-in-Chief, ‘The Hindu’, ‘Frontline’, ‘Business Line’ and ‘The Sportstar’, India

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Copies of this report are available from The Asialink Centre: 4th Floor, Sidney Myer Asia Centre The University of Melbourne VIC 3010 Australia Tel +61 3 8344 4800 Fax +61 3 9347 1768 Web www.asialink.unimelb.edu.au

Published by The Asialink Centre, December 2004. All rights reserved © 2004 Asialink. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage retrieval system, without written permission from the publisher.

Editor: Jennifer Conley Design: Jacinta Schreuder