



MINISTER FOR FOREIGN AFFAIRS  HON ALEXANDER DOWNER, MP



TRANSCRIPTION: PROOF COPY E & OE



DATE: December 14 2004



TITLE: Doorstop:  Lae International Hotel:  Papua New Guinea:

IAEA, Australia-PNG Ministerial Forum, Enhanced Cooperation Program, ASPI  Report on PNG



Journalist:  Mr Downer, firstly the El Baradei story,  you haven’t commented on it, but until  this stage ….

Minister:  My mother’s 80th birthday celebration so, but I mean the way the media has  reported this is right, that I’ve not taken up the opportunity to demonstrate a great deal of  interest in this job.  I’m very happy with the job I’ve got, but you know I appreciate the  interest that’s been shown, but I enjoy what I’m doing.

Journalist:   You have spoken to the Americans about it have you?

Minister:  Barely, I barely have.  For example, people like the Secretary of State - I spent two  days with him in Santiago de Chile recently.  We didn’t talk about it over those two days.  But  I mean this is a simple thing, I mean speculation, consideration of people for these sorts of  jobs happens the whole time.  But I’m the Foreign Minister of Australia and the Member for  Mayo and I’m happy with what I’ve been doing and I’ve only just been re-elected.

Journalist:  Would you say, or if an offer was made to, you know a sort of public stand or a  challenge?

Minister:  Well it’s not for anybody to make an offer, I mean this is the position of Director  General of the International Atomic Energy Agency as determined by the Board of Governors  and there’s an incumbent and he has expressed an interest in continuing in the job and that’s  something that will be considered by the Board of Governors.  It’s a whole process involved  in that and I’ve made it clear that I’m happy doing what I’m doing.  I mean I say this in  relation to any amount of speculation that’s raised with me about what I might do one day in  the future, but I can tell you I’m happy with what I’ve been doing.

Journalist:  Would Australia support the incumbent continuing?

Inquiries:  (02) 6277 7500 1





Minister:  Well it depends what he decides he wants to do.  I mean you need to understand  that Mohamed El Baradei  was in Australia as a guest of our Government very recently, just a  month or so ago at a conference that I held to focus on the issue of nuclear proliferation and  it’s an issue that of course we’ve been very active on.  And we wanted to engage the support  of the IAEA and the Director General and we’ve always had that support and so, you know,  I’m not getting into for Australia’s part any particular role in this issue at all.

Journalist:  Prime Minister Howard said he didn’t want you to go, so I thought that was an  interesting comment.  So clearly there was something in this.

Minister:  Well, the Prime Minister and I are very good mates and I don’t want to leave him  either.

Journalist:  What’s going to be the main subject tomorrow?

Minister:  Well there’s going to be focus of course principally on the Enhanced Cooperation  Program.  2004 has been an historic year in Australia’s relations with Papua New Guinea.  I  personally have been very committed to the relationship.  I’ve been concerned over the years  at the performance of the Papua New Guinean economy, though the last year has been a better  year for Papua New Guinea.  So we’ll be talking about where the economy is at, we’ll be  talking about the very early deployment of the Enhanced Cooperation Program, so that has  only just started so we’ll have to see how it goes.  It really is just at the very beginning.  It’s  taken quite a long time to put together the agreement.  In principle we reached agreement at  Mt Lofty a year ago for the deployment of the Enhanced Cooperation Program but there have  been negotiations over the terms under which that deployment would take place.  They were  agreed to in the middle of the year and now we’ve got the deployment underway.  So we need  to spend a lot of time talking about how that’s working out but I can only say at this stage,  and this is a very early stage, so far so good.

Journalist:  Is there any discussion of beefing up border security and Australia having a role  in PNG’s border security at this stage?

Minister:  Border security is an important issue and we are certainly looking to help Papua  New Guinea in the area of customs and port and transport security.  Clearly that’s got to be a  component of the Enhanced Cooperation Program and there will be some discussion about  that.

Journalist:  But going beyond that there’s sort of that large contribution?

Minister:  Well we’ve got a commitment now which is in total, including $60 million worth  of absorption, approximately a $900 million, five-year program.  We’re not at this stage  looking at adding to that in terms of the totality of our contribution, but we are looking at  making sure that there are various components to it.  There’s law and order here in Papua  New Guinea.  I think in a way I’ve identified that as the most serious problem, and that’s why  we’re sending 210 Australian Federal Police to help to improve law and order and we’re  looking at improving the operation of the Treasury and Finance Departments, the Immigration

Inquiries:  (02) 6277 7500 2



Inquiries:  (02) 6277 7500 3



service and we certainly will be looking at ways of improving the operation of their customs  and their transport security and the like.  Yes, they are all important things.

Journalist:  The Strategic Policy Institute released a fairly detailed report today on PNG  suggesting spending even more money.  Have you had a chance to examine it and have a  reaction to it?



Minister:  Well I’ve had a glance at the report during the course of today and I think their  analysis of the situation in Papua New Guinea, maybe the Government wouldn’t put it in  those terms, but it isn’t necessarily an analysis that we would argue with.  But I think we are  making a very big contribution, and I think what we’re doing and the effectiveness has to,  we’ll have to wait and see how that goes.  I think they shouldn’t, well they’re a think tank,  there job is to think things through and put up ideas, and I appreciate the work that they have  done and it’s a credible piece of work, but I’m hoping that we won’t have to go any further  than we’re going.  But, look we’ll just have to wait and see.  I think it’s unlikely that we will  expand the program beyond the very substantial investment we’re making, but we’ll always  be looking at ways of ensuring that the core element of our aid which is for $300 million a  year that we spend, is being effectively and efficiently spent.  There is always, between Papua  New Guinea and Australia, an element of flexibility in that.

Journalist:  Mr Downer, what’s your message to the Papua New Guinea Government?

Minister:  Well my message to the Papua New Guinea Government is that we appreciate the  good job that they are doing in beginning to implement reforms.  I’m happy with the approach  that the Papua New Guinea government has taken.  They’ve got good Ministers and they are

doing a good job and they deserve the support of Australia, and Australians, as Papua New  Guinea addresses the countries problems.  And I hope that all politicians, whether they be in  Government or in opposition, and other leading figures in Papua New Guinea will get behind  the reform program.  We’re certainly getting behind it - it’s a joint effort, it’s a classic  example of joint cooperation, the likes of which we haven’t seen between Australia and Papua  New Guinea since 1975.  This is an historic moment and the Papua New Guinea Government  I know is committed to continuing reform.  I know it’s difficult, I know there are political  problems involved with it, but I hope that people who are involved in political processes in  Papua New Guinea recognize the immense long-term value.  They understand the dimensions  of the problems the country faces and they understand that they have to be addressed.  You  can’t always solve problems with popular solutions.  Sometimes you’ve got to take tough  decisions and the government is taking tough decisions.  I think their budget this year is likely  to run into surplus and next year they’re projecting a very small deficit so progress is being  made.  But they are obviously going to have to continue to focus very much on ensuring that  they build on the momentum that’s now been established.

Journalist:  Thank you very much.

ENDS.

