PRIME MINISTER:
Well ladies and gentlemen I understand your deadlines are tight so I can start by announcing that agreement has been reached and the Memorandum of Understanding has been signed to commence negotiations for a Free Trade Agreement between Australia and China. It will be a challenging task, it'll be complicated but we approach it with a great deal of optimism and enthusiasm and I believe China will do likewise and if that attitude continues there is no reason why after a difficult negotiation success cannot be achieved. We already have a remarkably good economic relationship and a Free Trade Agreement, particularly as it is agreed that everything will be on the table, can add even further to that very strong relationship.
The talks I've had with the both the Premier and the President have been very positive, not only did we talk about economic matters but we also talked about the challenges concerning North Korea, we've both agreed that every effort should be made to persuade North Korea to return to negotiations and discussions. We talked about the importance of very constructive relations between the United States and China which is so important to the stability of the entire region. In a recent speech I made in Sydney I expressed a rather more optimistic view about that relationship than others have done in the past and I have no reason to change that view as a result of the discussions that I've had with the Premier and with the President.
Do you have any questions? I know that we will be having a lengthier news conference tomorrow but do you have any questions?
JOURNALIST:
...negotiations?
PRIME MINISTER:
How long?
JOURNALIST:
Do you think the (inaudible) negotiation of the FTA could take?
PRIME MINISTER:
I wouldn't hazard a guess Lenore. They will be difficult and they will be complex but the positive thing is that both sides are approaching the negotiations with a very serious commitment coming off the back of a relationship that both find very satisfying and very positive on the economic front.
JOURNALIST:
Did you talk about the East Asian Summit?
PRIME MINISTER:
Yes, we did talk about the East Asian Summit and it's fair to say that the Premier expressed stronger views about Australia's participation than had previously been expressed by China. And that was a view that was essentially confirmed in a different way by the President.
JOURNALIST:
Positive views though?
PRIME MINISTER:
Yes, yes positive views, yes.
JOURNALIST:
Do you now expect that China will support Australia...
PRIME MINISTER:
Well no I just believe what I just said.
JOURNALIST:
Prime Minister, what's the significance of the (inaudible) operation that has led to eight men being charged with...
PRIME MINISTER:
What is the significance of it?
JOURNALIST:
Yes.
PRIME MINISTER:
Well the operational aspects of that should be commented upon by the Australian Federal Police. I didn't know anything about it and nor should I until the people were arrested. It is normal for the Australian Federal Police to cooperate with the Indonesian police if they have reason to believe that people have broken the law. I would always encourage the Australian Federal Police to cooperate with their counterparts in neighbouring countries in the apprehension of suspected drug offenders. But as to the details of this particular case I know nothing other than that nine people have been arrested, that they are entitled like anybody else to a presumption of innocence, I hope they will be dealt with fairly and justly by the process, the charges are very serious and there's quite a number of Australians involved, nine, it's a large number. This is a matter though for the courts, the Indonesian authorities, but I endorse very strongly, very strongly indeed, cooperation between the Australian Federal Police and the Indonesian authorities in trying to track down people who are trafficking in drugs.
JOURNALIST:
Prime Minister, is it possible that as a consequence of this joint operation involving the AFP that Australians could face the death penalty...
PRIME MINISTER:
Jim, I'm not going to start making comments that in any way bear upon this particular case, that would be inappropriate, I think you know that.
JOURNALIST:
Your discussions Prime Minister on the East Asian Summit, did either of the Chinese leaders express a view as to whether (inaudible)?
PRIME MINISTER:
No, it wasn't mentioned.
JOURNALIST:
We are set possibly to become one of the first developed nations to form a Free Trade Agreement with China...
PRIME MINISTER:
No, we will be the first, not one of the first, the first.
JOURNALIST:
If we are the first will we will be pioneers or guinea pigs?
PRIME MINISTER:
We will be pragmatic negotiators in Australia's interests. The dominant consideration that my negotiators will bring to the table is to get an outcome that is good for Australia, respecting the fact that China will not sign an agreement unless there's an outcome that's good for China, I said that to the Premier and he agreed.
JOURNALIST:
What about New Zealand?
PRIME MINISTER:
What about New Zealand? Well that's a matter for New Zealand.
JOURNALIST:
Well aren't they a fully developed economy?
PRIME MINISTER:
Well I said we would be the first, yes. It doesn't alter the fact.
JOURNALIST:
Mr Howard, given that China now has recognition of market economy status in Australia, does it have (inaudible) incentives to (inaudible) negotiate openly for a Free Trade Agreement with us (inaudible)?
PRIME MINISTER:
Oh yes. Those issues relating to an open market economy bear upon a more limited area of things that some commentators suggest.
JOURNALIST:
Prime Minister, can you provide assurances that we won't see a flood of (inaudible) importers, particularly (inaudible) textiles that will be damaging (inaudible) manufacturing?
PRIME MINISTER:
Well things like a flood of cheap exports, well cheap imports rather, mean different things to different people. We have very low tariffs at the present time and I have a lot of people say to me from time to time that we already have cheap imports coming into Australia. I can assure you that we're not going to agree to something that is not in Australia's interests but in any trade agreement you can't expect all the give to be on the other side, if we are to get something from China, improved access, greater participation and so forth then we must be willing to give something to China in return. I mean it's just unrealistic to imagine that you can do otherwise. Now in the end we will make a judgment. I remind you that there are all sorts of doomsday scenarios painted when we negotiated a Free Trade Agreement with the United States, now that that's been bedded down most of that talk has disappeared. It'll be a tough negotiation, it won't be easy but in the end if we both continue to be very positive then we're going to achieve something.
JOURNALIST:
Do you expect there will be large carve outs like there was in the US...
PRIME MINISTER:
Look I'm not going to start getting into that, it's too early, we've only just signed the Memorandum of Understanding, you know have faith young man.
Thank you.
[ends]