PRIME MINISTER HOWARD:
Well ladies and gentlemen I am delighted to welcome to Canberra and to Australia, the President of Korea. It's his first visit to Australia; our two countries have very close relations steeped in history and, of course, the presence in our country of thousands of Australians now of Korean heritage. The President and I have discussed two things principally this morning; the very close and important and growing economic links between Australia and Korea. That country is our third best export destination and has been a wonderful and reliable customer of Australia particularly but not only in the resource sector over many years. As partners in the region we also discussed the challenging issue of North Korea. We both welcome the resumption of the Six-Party talks, we share a common goal of achieving an outcome whereby the threat of a nuclear North Korea is removed. We also want to see the opening up of North Korea to the world and the growth in living standards and opportunities for the North Korean people. Mr President, you are very welcome in our country. You and your countrymen and women are good friends of Australia and Australians and I invite you to say a few introductory words and then we will take a few questions.
PRESIDENT ROH:
Your Excellency, Prime Minister Howard, I would like to thank you and through you, the people of Australia, for your warm welcome. Prime Minister Howard and I had a very constructive dialogue on strengthening the bilateral relations between our two countries and we discussed issues of mutual interest including the North Korean nuclear issue and strengthening cooperation and international fora such as APEC. Further we shared the view that in order to have substantive progress in our bilateral relations, it is essential that we expand economic and trade cooperation. In this context, we agreed to strengthen our cooperation in the energy and resource sector. And in December, we agreed to launch a joint study by private research institutions on both sides to conduct a feasibility survey on a Free Trade Agreement between our two countries. We also concluded the social security agreement which would allow the exemption of double insurance taxation and also we concluded an agreement on the protection of migratory birds. The Prime Minister and I also agreed to expand the friendship and mutual understanding by increasing interaction in the field of culture, education, academics and sports. The Prime Minister and I also discussed implementing fully the UN Security Council resolution 1718 in order to resolve the North Korean nuclear issue. We also affirmed our commitment to cooperating closely in regional and international bodies such as the East Asia Summit and the United Nations. In this regard we resolved to work closely together for a successful APEC summit to be held next year in Sydney. I am very pleased to have the opportunity to witness first hand the very constructive role Australia is playing in promoting democracy and market economies in the Asia-Pacific region. I am pleased to be able to say that my visit is an important and meaningful step in taking our bilateral relations to the future. Once again my sincere thanks to His Excellency Prime Minister and to the people of Australia for your warm welcome and hospitality.
PRIME MINISTER HOWARD:
Now we'll take two questions, one each from Australian and Korean press parties. Mr Lewis.
JOURNALIST:
Mr President, could I ask a question of both if I may, President Roh did you explain Korea's refusal to support the PSI initiative, the intercepting of ships as part of a regional effort to counter North Korea's nuclear program and Prime Minister Howard, does that, does Korea's stance on the PSI stand as a sticking point in the bilateral relationship and the regional efforts to counter North Korea's nuclear program?
PRESIDENT ROH:
On the issue of the Korean Government's position on the Proliferation Security Initiative, I think we can see contradictory reports and criticism on both sides by some who claim that the Government has refused to take part in the PSI and also some claim that we are fully participating in the PSI. In any case we are under fire from both sides. And so I would like to take this opportunity to clarify our position on this matter. The Korean Government supports the principles and goals of the PSI. My government's position is that although we fully support the PSI that we would like to evade any situation that could bring a possible or physical conflict between North Korea and Korea. On all other areas we are ready and we are in fact fully cooperating and so I do not think it is appropriate to label the Korean Government's views on this issue as a total refusal or a full participation. So to sum it up my government is cooperating for the implementation of the PSI. And so my government's position is that it is wise to refrain from actions that could cause a physical arms confrontation between the two Koreas because, after all, the purpose of our action by the international community, whether it be a PSI or any other action, the purpose is to bring peace. And for this purpose, for peace in the region, we are making appropriate and strategic decisions.
PRIME MINISTER HOWARD:
The President has explained his government's position. There are differences between our two countries on this issue but it does not in any way inhibit our cooperation in relation to other matters concerning North Korea. Somebody from the Korean press.
JOURNALIST:
Mr Prime Minister, you said the economic relationship between our two countries have been strengthened and improving, however, if you look at the figures of the trade balance, Korea is offering $6 billion worth of deficit. And if you add the number of Korean students here, then the deficit for the Korean part would be increased. So I'd like to know if you have any specific measures to rectify this problem? And you also said a private sector research or survey will be conducted for a possible Free Trade Agreement negotiation between our two countries, then when do you think the actual negotiations on agreement will start and what kind of specific results are you expecting from that agreement?
PRIME MINISTER HOWARD:
In relation to the Free Trade Agreement, I did not say that. In relation to the trade imbalance, the nature of international trade is that you never have a perfect equilibrium with each individual country. There are resource and business factors that influence the trade flows between our two countries and you have to take an aggregate approach to trading relationships. But Australia has been progressively dismantling tariff barriers and protections and I don't see too many obstacles to the free flow of goods and services from Korea into Australia. Right, an Australian, Jim Middleton.
JOURNALIST:
Prime Minister the incoming American Defence Secretary has delivered a pretty pessimistic assessment in Washington overnight of the prospects for the war in Iraq, suggesting that the coalition is losing the war, that not enough troops were sent in the first place and that a change of course, I think those were his exact words, is essential. Do you share his pessimism? And secondly, has President Bush acted on his Hanoi commitment to you to keep you up to date on United States' intentions in light of these assessments?
PRIME MINISTER HOWARD:
Well I don't think there's any doubt that things aren't going as well in Iraq as I would like, as President Bush would like, as Mr Blair and other coalition leaders would like. If you look at the totality of Robert Gates' testimony he spoke of a number of things including an acknowledgment of those. It's obvious that the Americans are reworking the details of their approach in Iraq. No firm conclusions have been reached. I am sure that if there are any significant changes in relation to the detail of their approach I will be apprised of those in accordance with the undertaking that President Bush gave me, but I am equally sure that there will be no fundamental reappraisal of their commitment and that there will not be a precipitate withdrawal. Korean question.
JOURNALIST:
What are some specific timelines for the FTA between Korea and Australia? And what kind of tangible results do you expect from such a survey at this point?
PRESIDENT ROH:
My understanding is that the FTA being pursued by both sides, and I believe that Australia is the more enthusiastic party at this time, but because my government feels that it is desirable that we look into the possibility of the FTA in the future, we decided mutually to launch the private study on this issue and during this study period I believe we'll be able to have a better idea of what specific results and progress we can make for the interests of both countries. And so we'll be continually talking on the methodology and the timing of our discussions. And these studies by the private research institutes, I believe, will start in the first half of next year and Korea is currently undertaking such study programs with several other countries, and I believe this is a very good start for Korea and Australia.
PRIME MINISTER HOWARD:
Thank you.
[ends]