PM: Thanks everybody. Welcome to China. It's important to be here in China with such a significant economic partner for Australia as the People's Republic. This relationship is now more than 35 years old.
The Australian Labor Government more than 35 years ago dug the foundations of this relationship and the purpose of my visit today is of course to build on those foundations.
The days ahead that I have in China are important. All of us are currently engaged with the debate concerning the impact of global financial markets and how that will wash over the United States economy, Europe and what impact it might have here in the East Asian hemisphere.
On top of that, I am looking forward to good bilateral discussions with the Chinese Leadership, both with the Prime Minister and the President. One of the areas for expanding the economic relationship, deal with what we do in the financial services sector. And the gathering from which I have just come and the one to which I will just be returning in a minute, involves senior representatives of China's financial institutions.
I have said back home in Australia that one of the things I want to do is to make sure it is possible, for Australia's banks and Australia's funds managers to have greater access to this market. And that is one of the purposes of this gathering today with senior representatives of the Australian banks and the funds management industry and many of their Chinese counterparts.
Beyond that of course, in China we will be discussing other foreign policy matters which we have a common interest on including the six party talks, including our common interest in the wider Asia Pacific region. And of course in the context of those discussions, we will be having a straightforward exchange on questions concerning human rights in Tibet as well.
Over to you folks.
JOURNALIST: Mr Rudd have you met Rio Tinto and BHP in recent days and (inaudible) any concerns that you have about Chinese Foreign investment. What would your concerns be? What would you be saying to Chinese leaders on foreign investment?
PM: Look, it is quite normal for Australian firms, particularly the resource majors, to seek appointments with the Australian Government. We have done so with BHP not long ago in Australia. We will do so with Rio, because of their London operations, that is where they requested a meeting with us and we were happy to oblige. Obviously, one of the things that all the resource majors are concerned about is their long term resource contracts with China, as I say to the Chinese I say to the Australian resource majors, these ultimately are commercial matters, my job is to ensure that there is an overall framework of stability of supply from Australia to this country's and other market's long-term development needs.
I think my job as the Australian Prime Minister is to defend the Australian national interest and the Australian national economic interest and I will make no apology for that, while I am here or elsewhere in the world.
JOURNALIST: On Chinese investment, you also asked about Chinese investment, what view will you take to the Chinese Government?
PM: That's what I have said many times in back home in Australia. Australia is an open market when it comes to foreign investment. And if you look at Australia, we have had a history of relying upon internationally sourced capital to fund the countries long term development. In the great State of Western Australia, it's like that. I mean, you have a relatively small population, a huge land mass and therefore foreign investment has been necessary. Secondly, though, with every foreign investment proposal going back to whenever, we have always had the proper regulatory processes to examine and to advise on investment projects of consequence.
That is normal and natural. This country, for example China, has significant restrictions when it comes to inbound investment into its market. Now, that is the normal thing for nation states to do. We will assess, as we should, deploying the Australian national interest each significant investment project on its way through.
JOURNALIST: Prime Minister Rudd the Chinese Government has officially protested your comments in Washington in regard to Tibet, how damaging do you judge those comments to have been to our relationship with China?
PM: Well look, as I have said before, I think I may have said this in a public lecture I gave in London (inaudible) relationship with China is always going to be complex. It is always going to be challenging. I accept that. I have been in and out of this country for the better part of a quarter of a century.
I make, I have made those comments in Washington, I stand by them. I think this relationship is broad enough to tolerate disagreement. And on these questions, I will be putting my views forthrightly, as I was direct about them in my remarks earlier today at the university.
JOURNALIST: I've just come from the Chinese Government briefing on Tibet at which (inaudible) was asked about your comment and the answer was from the Government on Tibet was that people, you know, countries like Australia and other countries should have a look at the history of Tibet and China and they should have a better appreciation and understanding that people in Tibet are now enjoying democracy and wonderful human rights protection and your comments were totally unfounded. Given this type of uncompromising statements coming out of Beijing, how are you going to have a progressive dialogue on this issue?
PM: Well it is important to, as I said in my speech earlier today, you have a relationship which is capable of handling disagreement and putting views in a straight forward fashion. That is what I said I would be doing in my remarks earlier today and that is what I will be doing. And I stand by the comments I have made earlier on his matter.
JOURNALIST: You have spoken Mandarin this morning and got a good response. Do you think your -
PM: They were being polite.
JOURNALIST: Do you think your views on Tibet and other issues of conflict the Chinese might see as controversial has extra weight (inaudible) because you are a Mandarin speaker and other leaders aren't?
PM: Oh look I think there is a body of opinion around the World on this question. It has been expressed by many World Leaders in recent days. My job is to reflect, I believe, the views of the Australian people and the views of the Australian Government, I have a responsibility to do that, and I have a responsibility to do that also in the context of the breadth of our relationship.
This is an important political relationship for Australia. It is an important economic relationship for the reasons we have just been talking about. Climate change, we have a whole lot of stuff to do with China, if we don't fix carbon capture and storage for example, if we don't deal with Climate Change with our friends in China, well, we have got a real problem globally.
This is a broad-based relationship. This is an area of difference and disagreement. I have always said, let's work on the things that we have in common, that we agree on, and let's be frank and straight forward about some of the things that we don't.
JOURNALIST: Prime Minister, (inaudible) how would you feel about a Chinese State-owned company with a controlling stake in a company like BHP?
PM: I would think that any significant foreign investment application should be considered by the FIRB and taken on its merits. And secondly I would say that there is a whole bunch of SOEs and SWFs, sovereign wealth funds, state owned enterprises. Sorry someone was using SOEs before. Sovereign Wealth Funds, State-owned enterprises, from all around the world.
In the Middle East, the Gulf, Abu Dhabi, they are huge. And I have received some briefings on their global operations when I was in London, similarly over the Russian Federation. I mean this is, if you go around the world, right now, a whole bunch of Governments around the World are assessing how you deal with capital flows from such entities. Our approach is still one of being open to foreign investment flows, each project should be considered on its merits and consistent with the guidelines we have enunciated.
JOURNALIST: You have said that you don't want to see any interruption to the Olympics and the ceremonies and so forth. The Torch is, the torch leg is going ahead in Australia and will there be the flame attendants in Canberra?
PM: My understanding from Canberra first of all is that we have said from day one that we will be providing all the security, and I mean, all the security. That means that which physically surrounds the Torch when it's in Canberra, and my advice from Canberra is that that will be the case on the ground.
One more then I better zip this - I've just left a lunch that's all.
JOURNALIST: Mr Rudd there have been calls for Australians to turn their backs on the Torch bearers when the Torch goes through Canberra. Would you be disappointed if that happens?
PM: You know, one thing about Australia is that it is a robust democracy, people can express their view in whichever way they want and that's what's good, and I am sure people will make their own call on that. I think it's important that we provide the physical security which Dennis was asking me about before. We're going to do that and treat these matters respectfully, but we live in a free country, people can express their point of view in any manner that they choose, and I have really got to go and attend to this lunch, I'm sorry.