















PRIME MINISTER



3 April 2006

TRANSCRIPT OF THE PRIME MINISTER  THE HON JOHN HOWARD MP  JOINT PRESS CONFERENCE WITH   HIS EXCELLENCY MR WEN JIABAO,

PREMIER OF THE STATE COUNCIL,  PEOPLE’S REPUBLIC OF CHINA  PARLIAMENT HOUSE, CANBERRA



Subjects: Australia-China relations.

E&OE…………………………………………………………………………………



PRIME MINISTER HOWARD:

I would very much like to welcome to Canberra, His Excellency Mr Wen Jiabao, the  Premier of China. We have had a discussion across the whole gamut of the economic  and political relationship between Australia and China and both of us are very well  satisfied. The Premier will respond in a moment. I simply want to make a point that I  made earlier in my discussions with the Premier, and that is that of all of the  relationships that Australia has, major relationships Australia has with other countries,  none has been more completely transformed than the relationship with China over the  last ten years. Now I don’t seek to invoke language such as special relationships and  so forth, but I simply make the point that the transformation of the relationship with  China has been remarkable. Mr Premier would you like to speak now?

PREMIER WEN:

First I would like to thank Prime Minister John Howard for kindly inviting me to  Australia. I would also like to take this opportunity to thank people of the  Commonwealth of Australia for their gracious hospitality. As a matter of fact, the  Prime Minister and I started our work very early this morning. We took a walk  together early this morning and just now we had a small group discussion followed by

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a big group discussion. We had an in-depth exchange of views on bilateral relations as  well as other important international issues. The Prime Minister and I reached a very  important common understanding, that is, China and Australia should work together  to build a relationship of all-round cooperation for mutual benefit and win-win  outcomes in the 21st Century. This means that China and Australia should have  consultation and dialogue on political, economic and cultural issues, as well as other  major international issues. I am very pleased that the discussions that I have had with  the Prime Minister and his colleagues are friendly and productive.

PRIME MINISTER HOWARD:

Questions. Chinese media first?

JOURNALIST:

Thank you for giving me this opportunity. Mr Premier, you mentioned just now that  you have reached agreement with the Prime Minister John Howard that China and  Australia should work together to build a relationship of all-round cooperation for  mutual benefit and win-win outcomes in the 21st Century. Can you give us more  specific countenance of this kind of a relationship? Can you elaborate a little further  on this relationship?

PREMIER WEN:

Speaking of the specific countenance of this relationship of all-round cooperation for  mutual benefit and win-win outcomes in the 21st Century, I believe that there are four  major aspects. First, China and Australia should enhance the mutual visits and  discussions between the leaders of the two Governments. I proposed during our  discussions that the two countries have at least one meeting or one visit by a Deputy  Prime Minister or above senior officials between the two countries. However Prime  Minister John Howard said that he has only one Deputy Prime Minister and I  responded that this meeting can be conducted in various forms, the forms are not as  important as the substance. Second, China and Australia should work together to  enhance economic cooperation on all fields, and at present, what is more important  for the two countries is to expedite the negotiation process for the establishment of a  free trade area between the two sides.

On this issue, the Prime Minister and I reached the important consensus and we also  worked out consensus on the timetable for this negotiation. That is to say, in the next  one or two years, China and Australia should work together to strive for  breakthroughs on major issues related to the FTA negotiations, first to lay the  foundation for the arrival of an overall agreement in that field. Thirdly, China and  Australia shall work together to enhance their cooperation in science, technology,  culture, sports, tourism and other fields. The cultural and performing arts troupes and  sports teams of the two countries shall visit each other and so too the students and  young people of the two countries. During this visit I extended a formal invitation to  Australia to send 100 young Australians to visit Australia. China and Australia should  work together to enhance their consultation and coordination on major issues on the  bilateral level with respect to questions of major international organisations. China’s  foreign policy is open. China does not draw a line on the basis of ideology and China

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does not enter into alliance with any other country or any other group of countries.  We are ready and we are willing to live in peace with all other nations on this planet.  Thank you.

PRIME MINISTER HOWARD:

Allison.

JOURNALIST:

Mr Premier Wen under the nuclear agreement signed today, how much Chinese  investment in Australian resources companies will this facilitate and can you rule out  price caps on Australian uranium? And to you Prime Minister, what safety guarantees  have you received and how will you overcome capacity restraints imposed by Labor’s  three-mines policy?

PREMIER WEN:

China and Australia are conducting nuclear cooperation and this is solely for the  peaceful purposes. China and Australia are both members of the IAEA and therefore  when we proceed with our nuclear cooperation we must observe the principles of the  NPT. The agreement that we entered today has provided safeguards for that, for the  peaceful purposes of our nuclear cooperation. We must proceed with our cooperation  in this field on the basis of mutual respect, mutual benefit and equality. As for the  price of the iron ore, I believe that the mineral trade constitutes an important part of  economic and trade relations between China and Australia. Australia is richly  endowed with natural resources - in particular the energy resources - while China  presents the world with a huge market.

The trade in mineral resources between our two countries must proceed and be  approached from a long-term perspective. That is to say China and Australia shall  work together to put in place a long-term relationship of stable supply and demand.  And also a pricing mechanism that is up to the international practices. This is  conducive to both China and Australia. As for the specific prices regarding iron ore I  believe that this is a matter to be decided by the market, in particular by the  relationship between supply and demand of iron ore on the market. Therefore it is a  commercial act, the responsibility for the government, for the government of the two  countries, is to put in place a fair, open and reasonable market order, as well as to  come up with a pricing mechanism that is in accordance with the international  practices. Thank you.

PRIME MINISTER HOWARD:

Well I am satisfied that the safeguards that are there will be enforced and it’s on that  basis that the agreements have been signed. In relation to the capacity constraints, or  supply constraints, there are signs that the three-mine policy is already crumbling and  we’ll examine that and watch developments in that area with great interest and the  Government will also in the fullness of time examine what other capacities the  national government has if that becomes necessary. But it’s a little early to be  contemplating that.

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JOURNALIST:

I’d like to ask my question to Prime Minister Howard. I’m from the New China  Newsagency. Just now Premier Wen Jiabao has talked about setting up a new  relationship with Australia that is comprehensive and that also will promote the  relationship in the new century, that will be a mutually beneficial and also a win-win  situation. And Mr Premier Wen has also talked about that. Can you, from your  perspective, tell us what you think that relationship should comprise and give us an  evaluation of what the Premier has said? On another aspect, prior to meeting Premier  Wen told us that the relationship, the bilateral relationship with China is the best that  it’s ever been and can you tell us how you plan to promote the political and economic  relationship with China in the future?

PRIME MINISTER HOWARD:

That is to both of us or…

JOURNALIST:

No, these questions are all for Prime Minister Howard.

PRIME MINISTER HOWARD:

They’re all for me? Thank you. I liked the five ideas. It will mean that the Deputy  Prime Minister is overworked, I may have to appoint some temporary acting deputy  prime ministers perhaps to help out. I’ll have no trouble with volunteers. But seriously  though, jokes aside, I liked everything that he had to put forward. The best way to  build the relationship further is to continue doing what China and Australia do best  and that is to understand our fundamental differences, to be realistic about those  differences, but nonetheless focus on those areas of common interest where we can  fully cooperate, not least the people-to-people links which are so very important.  Thank you. Mr Barker.

JOURNALIST:

Prime Minister Wen will you have any assurances that China will not, when it has  Australian uranium, divert its present supplies into its ongoing weapons programme?  And Prime Minister Howard can you give an assurance that the treaty on mutual legal  assistance in criminal matters, will not involve any compromise in Australia’s  concerns about human rights in China, notably the Falun Gong issue?

PRIME MINISTER WEN:

China is a responsible country in the international community and China is also a  member of the International Atomic Energy Agency and China is also a signatory to  the non proliferation treaty, and therefore China will surely observe the provisions  and regulations laid out in the IAEA and the NPT. And today, while we signed the  agreement on nuclear cooperation between China and Australia. We also put in place  a mechanism for safeguards. We believe that this safeguards mechanism will ensure  that the nuclear cooperation will not be used for non-peaceful purposes.

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PRIME MINISTER HOWARD:

In answer to the question about mutual assistance, yes I can and perhaps I can  illustrate the point better by telling you that during the discussions, the Attorney-General raised a particular case where the extradition of somebody from Australia is  being held up pending discussions, or the outcome of discussions regarding the  possible application of the death penalty. It’s an illustration of the attitude that  Australia has brought to those matters.  Thank you.

PRIME MINISTER WEN:

Thank you.

[ends]











