PM:I just had an excellent 2.5 hours with Premier Wen Jiabao both in our formal discussions and in further discussions over the official luncheon which he kindly hosted for me. I would like to extend my appreciation and thanks for his hospitality and for the hospitality of the Chinese Government during the course of this visit.
We covered a range of subjects and three I would like to emphasise right now in terms of the economic relationship. One is the fact that we have decided to elevate our cooperation in the area of climate change to a ministerial level partnership. There is a joint statement from both Governments on this matter and we look forward to working very closely with the Chinese on climate change going forward.
The fact that our Minister for Climate Change Penny Wong has been here in Beijing these last couple of days has been important of itself and the discussions which she has already commenced with the Deputy Director of the NDRC, the National Development and Reform Commission of China which has the lead agency responsibility for climate change policy.
Furthermore, we intend to make this into a regular semi-annual policy dialogue between us. The focus will be in two areas. One will be bilateral and technical cooperation. We will be funding an Australian $20 million Australia China Joint Coordinating Group on clean coal technology.
As I said in a forum on climate change yesterday here in Beijing, the fact that Australia is the world's largest coal exporting country and that China is the world's largest coal consuming country, presents both of us with a fundamental responsibility to act in this area of critical technology.
Therefore what I am looking for through this new bilateral, ministerial level partnership with China is to elevate considerably, the intensity of our technical and scientific and commercial cooperation in the area of clean coal technology.
This also formed part of my informal discussions with some of China's leading energy companies yesterday, including Shenhua as well as CNOOC in the climate change round table which I attended with Senator Wong.
Also the second part of the proposed bilateral, ministerial policy dialogue on climate change would include our, a forum for us to continue to work on our combined policy on the conclusion of the UNFCCC, UN Framework Convention on Climate Change negotiations, which will have their conclusion at Copenhagen at the end of next year. This will be important for China, important for Australia, important for the world and we look forward to advancing our cooperation in that area as well.
Thirdly and significantly, we have agreed to further our future actions to reduce deforestation around the world, and that I think is an important area for us both to work in. That is on the climate change front.
Secondly, one of the other reasons that I have been in Beijing is to support the expansion of the Australian bilateral economic relationship in the area of the trade in services, in particular the area of the trade in financial services.
I spent yesterday at lunch with the Australian Ambassador and the representatives of Australia's leading banks and financial institutions and their Chinese counterparts. One of the core propositions that I am putting to the Chinese Government for consideration is to expand a number of Australian funds managers who are able to operate here in the Chinese market.
This is a significant growing market in terms of the size and diversity of China's pensions and superannuation industry, pensions and superannuation funds. Australia has among the biggest funds managers in the world. (inaudible) funds managers has effectively a license to operate here. We need to expand that further. What I have agreed with the Chinese today is that we will be establishing a ministerial services round table and its first priority will be the trade in financial services and that will get under way very soon.
This is an important step forward for us, because we want to rapidly grow the services trade between our two countries, particularly in the area of financial services, particularly in what we have to offer in the funds management industry.
Third point, on the economic front, is that we have today agreed to unfreeze what has been the frozen bilateral negotiations for a free trade agreement between Australia and China. And this is important for both of us. We are both committed to ensuring that this is a broadly based, comprehensive and substantive free trade agreement.
Therefore, the Australian Trade Minister Simon Crean will be here within the month, and the object of that meeting will be to identify clearly with his Chinese counterparts, a list of remaining obstacles to be cleared in this bilateral free trade negotiation.
And we have today reaffirmed our commitment to bringing those negotiations to a successful conclusion as soon as possible as it would benefit both countries. Beyond the bilateral economic relationship and beyond our discussion of climate change, of course the question of the Olympics, Tibet and human rights was also discussed. I reiterated to the Chinese Government, the position of the Australian Government which I articulated yesterday in my address at Beijing University, and there was some considerable discussion about the current situation in Tibet and of course on the broad question of the Olympics itself.
That was a significant part of our discussion, which ran I think some half hour, half an hour overtime, largely to accommodate that part of our discussion. Also in wider discussions with the Chinese Premier, we discussed the continuation of the Six Party Talks on North Korea.
Those talks have been continuing in recent days and it is important that we see progress from them. Particularly on the North Korean side on the question of the declaration of their, final declaration of their nuclear status. I spoke at length with the Chinese Premier about the desirability of this Six Party Talks mechanism being expanded into a broader security dialogue across East Asia and I believe that there is a supportive attitude emerging on the part of the Chinese Government for that, as I anticipated, as I encountered also during my discussions in Washington on this.
I reflected to the Chinese, as I reflected to the Americans, that from the point of view of the Australian Government, the desirability of us being able to participate as Australians in this unfolding dialogue as it is (inaudible) extends being the immediate concerns on the Korean peninsular and North Korea's nuclear program in particular.
To conclude, this was a good, solid, discussion between the Chinese Premier and the Australian Prime Minister. We covered core elements of our bilateral relationship. Core elements of our bilateral economic relationship, as well as sensitive questions concerning human rights, Tibet and the Olympics, as well as key areas in the future for foreign policy and security policy cooperation.
This is an important relationship for Australia and Australia is an important relationship for China. As I may have said yesterday, and in earlier days, it is important to embrace this relationship for all the strengths it contains, recognise that we can expand it further into the future and recognise as well that we need to deal in a frank and straightforward way with disagreements when they arise, as I have done today. Happy to take your questions.
JOURNALIST: What was your message on Tibet and what was the response from Premier Wen?
PM:On the question of Tibet, I stated, as I stated yesterday at Beijing University that first of all, Australia, together with the rest of the international community recognise Chinese Sovereignty over Tibet.
Secondly that when it comes to the particular events of recent times, that the position of the Australian government is that there are significant human rights problems in Tibet which require resolution through two mechanisms. One, non violent approaches and two, through dialogue. And that furthermore, we would want and hope and expect to see progress on these measures in the period ahead. I don't wish to characterise the views of the Chinese Government but I think it is fair to say that those reflected to me in our private discussions were consistent with the public position you have seen from the Chinese government in recent times on the question of Tibet.
JOURNALIST: (inaudible) I wondered if you could talk about what you mean by that and how Premier Wen interpreted it.
PM:I spoke in English today and so certainly in terms of our formal discussions, as I may have indicated to some of your prior to coming here. What I meant by that term yesterday in the address to Peking University was that there was a form of friendship which you can have with China which is broad and open and capable of incorporating within it, different points of view and providing a point of view to our partners, in this case, the Chinese, which seeks to encourage them in a particular direction and providing counsel where we can on sensitive matters.
Whether that counsel, or whether that advice is received, then that's a separate matter. But that is the tradition of friendship which I was referring to in yesterday's discussion and it is consistent with what I just said before, namely that you want a broad based relationship with China, capable of advancing all the things we have in common and how we wish to develop this relationship while recognising in an up front, frank and straightforward manner, where there may be disagreements.
JOURNALIST: Mr Rudd did you get the impressions today that Premier Wen did not accept your counsel on the issue of Tibet?
PM:I think it is quite fair to say that the Chinese government in its discussions with me in our extensive bilateral this morning, their position has been today, was consistent with the public positions that China has adopted in recent times,
JOURNALIST: Was there any discussion of sovereign investment funds, investment in Australia generally, foreign investment review?
PM:I emphasised to Premier Wen, as I said, these discussions went from a very extensive formal session, to a less formal session over the official luncheon, we just attended. And on the question of Australia's welcoming of foreign investment to Australia, the point that I made to the Chinese Premier was that, we welcome foreign investment, always have done, always will do.
Secondly, our approach to that is non discriminatory, in terms of country of origin. Thirdly, the application of particular guidelines concerning foreign government related entities applies as much to China as to anyone else in the world, whether it is Singapore, the Persian Gulf or wherever.
And finally I said that, consistent with Australia's historical approach to significant inbound investment projects, that each of those will be considered on its merits, based on the advice of the Foreign Investment Review Board. And we had a good discussion around that.
JOURNALIST: Mr Rudd, do you, from what you have said, do you believe there is no chance of China taking any notice of foreign representations about Tibet.
PM:(inaudible) that's a matter for them to describe themselves. My responsibility as the Prime Minister of Australia, as the Prime Minister of a friend of China, as a Prime Minister of a robust democracy is to report our view about these matters and I have done so.
I have done so publicly yesterday and privately today in a manner consistent with the points that I have made elsewhere. On the response of China, that of course isn't (inaudible) and I understand we have a very challenging period ahead of us on these questions but we will continue to be engaging with our Chinese friends here -
JOURNALIST: (inaudible)
PM:My public lecture at Peking University was not discussed in itself today. The points of discussion in relation to Tibet human rights and the Olympics were discussed afresh.
JOURNALIST: (inaudible)
PM:The dialogue was of course raised and the position I have put privately to the Chinese is entirely consistent with what I put publicly (inaudible)
JOURNALIST: (inaudible)
PM:On the first point, no. That was not explicitly raised with me, on the question of energy security. Obviously it is connected with the broader question of trade in energy and resources and our investment relationship in energy and resources. And that's why I expressed the views which I began answering in Dennis's question before.
On the second part of your question (inaudible). Calling a spade a spade, let me just say this. (inaudible) they have been the same and in fact the conclusion I have reached is that they are virtually stalemated and frozen. So while there didn't seem to be allowed (inaudible) into the never, never. The attitude that I took was that we should kick start the negotiations and get it going (inaudible). What has come out of this, is a desire to apply fresh political momentum to getting these negotiations going again, therefore mapping a road map forward in these negotiations will be the principle task for the Trade Ministers when they sit down and (BREAK IN TAPE).
Ends.