JOURNALIST:
Mr Howard, while you are here in China will you be discussing LNG prices as one of the issues in your talks?
PRIME MINISTER:
Not directly, no, because they are a matter for market negotiations. I would never encourage the idea that governments should negotiate LNG prices. At no stage was the Australian Government directly involved in pricing issues in relation to the $25 billion contract. The first fruits of which, I am here to witness so I haven't changed my mind on that. I am sure the broad issue will come up but it is not for the Government to negotiate LNG prices.
JOURNALIST:
Mr Howard, how does this shipment and your purpose here on this visit, how does that fit in to the emerging commercial relationship with China in the future?
PRIME MINISTER:
Well our exports to China have quadrupled, quadrupled since 1996. This particular shipment is the largest single trade agreement that Australia has ever signed. It can in my view be the beginning of a further stage of expansion. Of course, China is not the only customer for Australian LNG, Japan and Korea are wonderful customers and I hope in time, the United States, particularly the west coast of the United States, might become a customer. But it really is part of the opportunity Australia has to underpin China's enormous industrial expansion.
JOURNALIST:
What do you think Australia's chances are to win future contracts? Have you planned to sign any while you are here?
PRIME MINISTER:
No, no, I am not a contract signer. Contracts are signed by governments, I am sorry, by private enterprise. In the case of China of course, some of the agencies are government controlled and government owned, but that's not the way Australia does business and there is quite an understanding of that. We, to use that well understood phrase, we're here to help, but ultimately the negotiations have got to be undertaken in a commercial manner and according to commercial circumstances.
JOURNALIST:
So do you expect more to be signed while you are here?
PRIME MINISTER:
No, once again this is not something to do with a particular contract. It is an important, symbolic visit for me to be present around the time of the first shipment of LNG, it's an opportunity to have a lengthy discussion with the Chinese Premier which will take place tomorrow, to participate in a free trade seminar, and to promote the cause of a free trade agreement between Australian and China. The discussions are going quite well, and then I will be going back to Australia. It's what you might call a very quick working visit.
JOURNALIST:
What will you be discussing with Premier Wen?
PRIME MINISTER:
I beg your pardon?
JOURNALIST:
What will you be discussing...
PRIME MINISTER:
We'll talk about, obviously the economic relationship, but I always take the opportunity when I meet the Chinese leadership to talk about issues such as North Korea, such as Iran and generally relations in our region. I never miss the opportunity and those two countries continue to worry the world, and in the case of North Korea in particular, worry the region and no country has a greater influence on North Korea than does China and I've had a regular dialogue with the Chinese leadership on North Korea over a number of years, and I will be resuming that dialogue when I see the Premier.
JOURNALIST:
Prime Minister, how is the free trade agreement negotiations, how are they progressing, and how long before Australians see commercial benefits from that?
PRIME MINISTER:
Well I would have thought quadrupling of exports over ten years is a fair commercial benefit. The negotiations, Greg, are going quite well, I don't know how long they will take to complete and I am not giving a guarantee about either completion or about a time. What we should remember is that whether we sign a free trade agreement with China or not we have one super duper economic relationship with this country and the quadrupling of exports over a period of ten years is a pretty remarkable achievement, and that's been done without a free trade agreement. If we can add to it, that's good, but there are some important issues involved for the domestic industries of the two countries.
JOURNALIST:
Is there a possibility that the free trade talks won't reach an agreement?
PRIME MINISTER:
Well nothing is agreed until it's agreed. I think they probably will and I am on the optimistic side, but I am not giving guarantees and I am not going to make myself a hostage to a timetable. But even if it wasn't to be achieved, China would still remain a fantastic trading partner, our second largest trading partner, our second largest export destination after Japan, and an absolute transformation of that relationship in ten years. Thank you.
JOURNALIST:
How would you describe the chances of Australian companies doing more contracts like this gas deal.
PRIME MINISTER:
Well I think it's... in the resources sector it's very strong, but we don't want to see the relationship just in terms of resources and if you look at the people who are attending the conference from Australia you see a very wide range of people. The service sector has certainly got enormous opportunities and I think we should see the relationship in a very broad manner and not just see it in terms of coal and iron ore and gas, important though that is. Thank you.
[ends]