PM: I've just concluded a very good discussion with the Prime Minister of Japan, Prime Minister Fukuda.
And, subsequent to that, we had lunch together. And, it was a good wide ranging discussion.
We talked about how we enhance this Australia-Japan relationship into the future.
You would have seen our statement in terms of enhancing our bilateral and trilateral security cooperation. That's important for the future.
And we are in the process also at the bilateral level of developing a defence cooperation memorandum. And that will be concluded in the months ahead.
We will also be expanding our exercises in relation to maritime surveillance and we also have further plans in relation to defence logistics with each other.
Trilaterally, with the United States, we are also planning with our friends in the United States and in Japan for an exercise soon on response to a regional natural disaster. And that is a good practical way of taking our trilateral security cooperation forward.
Also, I appreciate very much the positive response from the Japanese Government to my proposal for an International Commission on nuclear non-proliferation and disarmament. And we continue to work with the Japanese on their participation in that.
On the economic front, the discussion about the FTA was deep and long and broad covering matters of sensitivity on both sides of the equation. I appreciate in particular the emphasis on the services sector which is contained in our joint declaration today.
To the Prime Minster I made the point which I've made publicly that our two economies are 75 per cent services economies. Modern, advanced economies. Yet the services trade is only 8 per cent of our bilateral trade. We need to do more on that. And opening that trade up further through a comprehensive FTA is a good way ahead for the future.
On the global cooperation front, the Prime Minister and I have agreed to work closely together in the lead up to the G8 outreach meeting on climate change. We've also agreed to expand our bilateral work on the whole challenge of global energy prices, global oil prices in particular. Given the impact which it is having on inflation around the world, and the impact it is having on economic activity around the world.
On the question of the Asia Pacific Community, we had a long discussion about that over our lunch in particular. And how that might be developed in the future.
In his speech of 22 May, Prime Minister Fukuda outlined his own vision for how this region can work together in the future and we have agreed to do work together on our respective concepts about future regional cooperation. I look forward to that work advancing.
My comments on whaling in the statement I made with the Prime Minister I think explain fully where we are going with that and there will be an intense period of diplomacy in the period ahead. I look forward very much to the Prime Minister taking up our invitation to visit Japan and as I said throw some Aussie beef on the barbeque.
That was the first half of the conversation, the second half of the conversation was about the State of Origin win by Queensland against New South Wales which having explained that fully to the Japanese Prime Minister he thought it was a good outcome as well. 30 nil in the cause of righteousness.
By the way in the speech I gave last night in case any of you hear something about this we were tracking the result halfway through and I was told mistakenly by a source - a Queensland source, at the table that we were ahead 14-10. To be told afterwards that we had won 30 nil was surprising. But I think it was a great outcome for Queensland. Great outcome for the game and I look forward very much to going to the third State of Origin.
Finally on tourism, tourism has been affected significantly by recent decisions by Qantas in terms of routes between Japan and Australia, including to Queensland, including to Far North Queensland and Cairns in particular. That's underpinned a statement by the Tourism Minister Martin Ferguson yesterday to match a Queensland Government injection of $4 million to support further tourism promotion for Queensland in particular.
That will also form part of a broader and new international advertising campaign designed to further promote Australia as a tourism market given these recent challenges arising from decisions in the aviation industry.
Also regional tourism organisations will now have access to the export market development grants scheme and we hope to have further to say about our overall tourism strategy for the future. This is very significant for Queensland, for Far North Queensland, and other parts of Australia affected by these decisions. I've just been speaking to Jim Turnour on the phone, the Federal Member, and it's quite clear that this has had a strong impact in his community and we have been very sensitive to his representations to the Government about the need to act on the question of the effective promotion of Queensland and those affected centres in the international tourism market which is a very competitive and difficult place to be.
Over to you for your questions.
JOURNALIST: Can the relationship between Australia and Japan is now reaffirmed (Inaudible)
PM: I believe the Australia - Japan relationship is so strong, so broad and so deep it's embedded in the political cultures in both of our countries. Labor and Liberal in Australia and LDP and I believe Democratic Party here in Japan as well. I've met many Opposition politicians since I have been here and certainly many from the LDP and from the LDP coalition partners.
The great thing about the Australia - Japan relationship is I believe it actually transcends political divides. It is so strong, it is so positive, its so important economically, politically and of course strategically. And it's a relationship which can endure differences as in fact our relationship with the United States endures differences.
JOURNALIST: Jeddah Summit (inaudible), will you be going?
PM: The Government of Australia has been invited and that has just been conveyed to me in the last hour or so. And they will be considering that overnight and we'll be considering also the actual content of the agenda for the proposed Jeddah conference which would be I think the weekend after next. So we'll have more to say about that tomorrow.
JOURNALIST: So its likely that that there will be an Australian (inaudible)
PM: That's a gross piece of verballing on your part Andrew in terms what I just said. I said an hour ago we received an invitation from the Saudis. It was conveyed as I understand it on behalf of the Saudi King and I understand the invitation has gone to other heads of Government that is correct. And I also will be looking very carefully at the proposed agenda for that meeting overnight and we'll have further to say about it tomorrow.
JOURNALIST: Mr Rudd can we assume from your comments and Prime Minister Fukuda's that when you raised the issue of whaling the Japanese Prime Minister basically was not interested. It sounds like he gave you short shrift. Please tell me if I am not right?
PM: Could I please tell you if your wrong as well?
JOURNALIST: You can.
PM: No we had a good discussion about that both in the meeting before lunch and as well as over lunch as well. We'll work on the diplomacy of this as I have said before in the months ahead. This is a matter which is held deeply both in Australia and Japan for different reasons but we intend to use every diplomatic effort in the period ahead.
There was a good discussion on it and I think we will - both he and myself - that's Prime Minister Fukuda and myself will be putting our shoulder to the wheel. I think the other important thing to say is the Prime Minister and I agreed that this disagreement among friends should not in any way undermine the strength, depth and breadth of the Australia - Japan bilateral relationship.
JOURNALIST: What does it mean to tackle this diplomatically? They want to continue whaling, you want them to stop. Where is the room to move, what actually are you (inaudible)
PM: Well if you look at the diplomacy that's being advanced through the IWC - the International Whaling Commission - there are reforms there in terms of how you approach the future of scientific whaling, for example. There are proposal which Australia has already put on the table in the lead up to the IWC meeting. This will be the subject of discussion when the IWC meets in Santiago, Chile fairly soon and we'll see what comes of that. That's what I mean by diplomacy. So its not something airy fairy. Its out there, there are proposals to talk about. But for diplomacy to work you have got to give it a go. And that means some of its private and some of its semi public and some of its public.
JOURNALIST: Did the Prime Minister give you any indication that he was prepared to give ground. What sort of hope do you have that this will achieve some change of position?
PM: I think its fair to say in our discussion that both of us hold to the positions of our respective Governments. I wouldn't wish to give any impression to the contrary. But we also hold equally to the position that this is something that we need to give a strong diplomatic push to in the months ahead. And the next stage of that will be when the respective Ministers and others meet in Santiago. But I go back to what Prime Minister Fukuda said I think in the press statement before as well as conversations privately that we do not see this as having the capacity to undermine the strength of our bilateral relationship. And we're both committed to exercising diplomacy in the period ahead.
JOURNALIST: If diplomacy is the way ahead now at least for some period, doesn't that tell us that your releasing of the pictures, sending of the surveillance vessel, causing the diplomatic damage that was quite clearly caused as a result of doing those things, was in fact an over response early on and diplomacy should have been given the run all along.
PM: Our position has not changed on the question of whaling and nor has that of the Government of Japan. But we have committed to a period of diplomatic negotiation on the way through. These positions as I said before are deeply held in Australia, they are deeply held by the Australian Government. You've heard me speak on this in Australia before. But they are also deeply held in Japan, we can respectfully disagree but we will try diplomacy for the period ahead to see what we can achieve.
JOURNALIST: Inaudible
PM: Well on the question of whaling our objective all along quite apart from our broader objectives for the IWC is to make sure that there is appropriate protection for whales in what is proscribed by us as the Australian whale sanctuary in the southern ocean. That's where the objective has been.
We have of course broader whaling policy considerations alive within the IWC. And as you know we've had broader and distinct and continuing reservations about scientific whaling as currently (inaudible). For example one of the proposals which is being considered in the IWC is non lethal scientific whaling. That is if research into whaling is deemed to be necessary then there are ways in which that can be advanced by non lethal means and therefore that one of the proposals being considered.
JOURNALIST: Prime Minister Julia Irwin says Belinda Neal is being singled out because she is a woman. What's going on with your backbench at the moment?
PM: I've seen those comments from the member for Fowler and I believe they are wrong.
JOURNALIST: Will she be disciplined?
PM: No they are just wrong.
JOURNALIST: (inaudible)
PM: I think everyone can get out there and have their say about things, that's fine but I think on this one Ms Irwin is wrong.
JOURNALIST: (Inaudible)
PM:I think its fair to say that given Japan's particular experience of nuclear weapons in the events of 1945 there is a strong level of interest and support in Japan for this Australian proposal, this proposed international commission. The Japanese Prime Minister went to this topic spontaneously in his conversation with me prior to the press statement and we returned to it I seem to recall in the discussion we had over lunch as well.
So I think its something which they are supportive of. Secondly on the question of Japanese participation. That will take some time ahead for them to resolve internally. We are pretty relaxed about that. We welcome whatever form of participation Japan chooses to advance.
This is really important, its 18 months effectively from now until were in the year when the non proliferation treaty review conference is held. The last one did not get very far. We can't afford to have the NPT fragment into the future. It's time, it's well and truly time, that we got together, started to shape a political consensus and a policy consensus and that's what this proposed commission and subsequent international conference would seek to do.
JOURNALIST: Are we likely to see Japanese troops training on Australian soil as a result of the expanded Defence cooperation (inaudible)
PM: That's not currently the subject of discussion as I understand it between our respective militaries. As I have said before, we're currently developing a defence memorandum of cooperation between us. That will make it easier for existing forms of maritime cooperation to occur as I understand it. We will be increasing our joint exercising when it comes to maritime surveillance. These are important steps forward into the future.
Japan and Australia under the new Australian Government and under Prime Minister Fukuda's administration wish to take our bilateral defence and security cooperation further. I think the Prime Minister believes this is good for the overall security and stability of our region.
JOURNALIST: (Inaudible)
PM: Oh look Ms Neal and I had an extensive conversation yesterday as I indicated in my statements to you. And it was my conclusion that based on that conversation with her that this was the appropriate way ahead. As I said there seemed to me to be an apparent pattern of unacceptable behaviour and the proposal to engage in counselling was one that I fully supported. As I said again it's important that all members of parliament, all members of parliament reflect on the fact that nobody is guaranteed of a future in politics.
JOURNALIST: (Inaudible)
PM: Agriculture has been shall I say canvassed in its normal firm frank and friendly way between the Japanese and the Australian sides. But it was actually a very good and detailed conversation about AG. Very detailed conversation about agriculture, very detailed conversation about the services industries. And what I've said not just in the meetings with Prime Minister Fukuda but also with other Japanese Ministers who I've met today including the Minister for METI, the Minister for the economy and international trade and industry. As well as other Japanese members of the diet is that we want a comprehensive Free Trade Agreement as soon as possible, dealing with agriculture, dealing also with the services industries and we'll need their support and the Japanese political process to get there.
This will be very tough, really tough but together with our combined efforts right now between the Japanese Minister and Simon Crean most recently at the Paris OECD meeting on a final push and shove on the DOHA round to try and push that towards a global outcome. I've got to say the two sides are working very well together on trade policy right now. It's still going to be a hard negotiation.