Subjects: East Timor; Indonesia; Reserve Bank
E&OE ……………………………………………………………………………………
JOURNALIST:
Prime Minister did you discuss President Wahid’s suggestion that there should be tripartite talks between you, Xanana Gusmao and Wahid?
PRIME MINISTER:
Yes, that was one of the things we talked about. Australia’s attitude towards that suggestion is positive. We are quite agreeable to, in principle, to there being a tripartite meeting between the Indonesian President, myself and Mr Gusmao. However, such a meeting should follow and be separate from a bi-lateral meeting between the Indonesian President and myself. I’ve indicated to Mr Gusmao and I’ll be indicating to the Indonesian President, I’ll be writing to him in the next [pause] I’ll be writing to the Indonesian President in the next few days indicating that I think the order of things should be first a bi-lateral meeting between the President and myself.
JOURNALIST:
Where will that be?
PRIME MINISTER:
And then, well the President’s proposed to come to Australia and I understand that is still his intention and I think it will be very good. It will be the first time we have had a visit from an Indonesian President for twenty five years.
JOURNALIST:
When will that be?
PRIME MINISTER:
Well, it’s a matter for the two countries to sort out the exact date. I think a date some time in July is one that he has suggested, but it’s a question of mutually fixing a time. I’m not going to get tied down to a particular date now. But that is the proposal that he made and I think it is a good proposal. As to the meeting between the three of us, I think that is a good idea too. But it has got to follow the other one because clearly there is a bi-lateral relationship that is separate from the relationship that each of us has to the emerging nation of East Timor.
JOURNALIST:
Can you tell us what specifically was discussed today regarding the rebuilding of East Timor?
PRIME MINISTER:
Well, Mr Gusmao may want to add to what I’m about to say. We talked about progress, we talked about the meeting taking place in June of the donor countries. I reiterated Australia’s continuing support for the reconstruction effort in East Timor. We talked about the security situation, we talked about relations between the Territory and Indonesia. We also talked about the building of a judicial structure, all of the things that face an emerging country. I am filled with admiration for the efforts that are being made by Mr Gusmao and his colleagues to build a new nation out of a very difficult situation. Few territories in the world have faced such a daunting task as he and his colleagues are facing and they deserve the world’s admiration and support. Support is very important. We emphasise that very strongly that countries other than Australia have responsibilities although we accept a particular role in East Timor.
JOURNALIST:
Mr Gusmao are you happy with the talks with the Prime Minister today?
MR GUSMAO:
Of course. First of all I really want to publicly to thank the Prime Minister, his government and the whole Australian people for continuing to help us, support us. Actually we need more people support in this very difficult situation out there. We are very, very happy with this meeting because as the Prime Minister has said the commitment to help us and support us is there [inaudible].
JOURNALIST:
Mr Gusmao, was there any further re-negotiation, talk about the re-negotiation of the Timor Gap oil treaty today?
MR GUSMAO:
I don’t think that I am the right person to talk about this because there are teams looking at this issue and I believe that the contacts between UNTAET and the Australian Government and other parties involved in this issue are continuing.
JOURNALIST:
When is it likely to see a resolution of that issue?
MR GUSMAO:
Unfortunately I cannot tell you.
JOURNALIST:
If there was to be a tripartite meeting where would you like it to be held?
MR GUSMAO:
Of course if I can be honest Dili would be the best place [inaudible] but President Wahid suggested Darwin.
PRIME MINISTER:
I think that is something we’ll just work out between us. The important thing is that we are all agreeable in principle. But it ought to follow and be separate from the meeting between Dr Wahid and myself.
JOURNALIST:
If President Wahid does come how soon would you expect the tripartite meeting ?
PRIME MINISTER:
Ask me that after the other one has been set up. It’s too early to say.
JOURNALIST:
Prime Minister, can I ask you about the Reserve Bank’s comments on the decline of the dollar allegedly being caused by political comment, including your own. Are you responsible for that.
PRIME MINISTER:
Oh no, it’s nonsense.
JOURNALIST:
Why is that?
PRIME MINISTER:
Well it’s just plainly nonsense.
JOURNALIST:
Are you surprised the Reserve Bank made reference to it ?
PRIME MINISTER:
Well, I think a bit too much is being read into what was in the bank’s report, but the comments I made back in January were entirely appropriate and proper. I was criticising the comments of some economic commentators and the proposition that the Prime Minister can’t do that would be a bit ludicrous wouldn’t it? And in any event the bank and particularly the governor has had plenty of opportunity between now and then to express a concern to me privately. He has had plenty of opportunity and not done so. So, I dismiss the interpretation put on it by the newspaper this morning.
JOURNALIST:
Why do you think they made those comments ?
PRIME MINISTER:
Who?
JOURNALIST:
The RBA.
PRIME MINISTER:
Well, you better go and ask them that. I mean, I don’t write their reports. I can only speak for myself and the remarks I made in January were entirely appropriate and proper and as I say the bank and the Governor have had ample opportunity to express directly to me any, and privately, any personal concern they have and they haven’t done so. So I can only draw a reasonable conclusion from that.
JOURNALIST:
[inaudible] quite possible that those comments could have affected the dollar ?
PRIME MINISTER:
No.
JOURNALIST:
Mr Gusmao how would you describe the situation in East Timor?
MR GUSMAO:
I think things are improving in some fields. But there are still many, many things to do. Mostly in the reconstruction field and other, although we are expecting [inaudible] we are optimistic that after the June meeting with donor countries we can start something concrete.
JOURNALIST:
Were you surprised that President Wahid called this tripartite meeting?
MR GUSMAO:
Not at all. The meeting is more to do, to discuss problems in East Timor and it is not the original meeting but we were fairly happy because it could help very much the change in the relationship between East Timor and Indonesia and the change after things happened in West Timor [inaudible] for us it is of more benefit to us and that is why we immediately found that it was very interesting.
PRIME MINISTER:
Can I just add on that, that back in December when Mr Gusmao came to Canberra after the INTERFET force had gone into East Timor, we encouraged him, difficult though it was in the wake of the events that had transpired, to try and build a positive relationship with Indonesia and East Timor’s future is clearly tied up in her relations with both Indonesia and Australia. And it is very much part of that process that the idea of a tripartite meeting being particularly concerned about East Timor and the interface between the three countries, two nations and the emerging nation, should take place.
JOURNALIST:
Relations have been strained Prime Minister do you think they are getting back on track?
PRIME MINISTER:
Well, I’m a realist, John, about the relationship. You can’t go through what Australia and Indonesia went through without there being a strain. I think people who pretend that you can do what we did in defence of the people of East Timor and then the next day expect the relationship with Indonesia to be the same, I think it is unrealistic. I know some people, some people will imagine that you can do that. But I’m more of a realist. But, over time, the relationship will strengthen. It won’t be the same as it was before, but it will still be quite strong. And that’s our view. And I know that’s Dr Wahid’s view. I follow very carefully what he says and also what he does and I admire very much the way he has brought more openness and democracy and transparency into Indonesian politics, into Indonesian society, and I think that is the basis for a very strong relationship between Australia and Indonesia well into the future.
JOURNALIST:
Mr Gusmao, what did you think [inaudible]
MR GUSMAO:
[inaudible]
PRIME MINISTER:
We’re reaching the sort of the tail end stage of the news conference, in fact, I think that’s about it.
[ends]