



MINISTER FOR FOREIGN AFFAIRS  HON ALEXANDER DOWNER, MP



TRANSCRIPTION: PROOF COPY E & OE



DATE: February 1 2005



TITLE:   Adelaide Doorstop -  North Korea, Xstrata, Iran, Prince Charles

Downer: I just want to say something about the statement that the North Korean Foreign  Ministry made yesterday. During the course of today I’ve spoken with both the American  Secretary of State, Condoleezza Rice and also with the North Korean Ambassador, it’s an  opportunity for us to express our view. We believe that it’s very important that the six party  talks process continues. The Americans are very determined to stick with the six party talks. I  told the North Korean Ambassador that it is in North Korea’s best interest to re-engage with  the United States and other countries through the six party talks process, so that the North  Koreans themselves can get a security arrangement which will suit them but also their  economy will be able to develop. But if North Korea walks away from the six party talks  process then they will never get that kind of security undertaking and they’ll not be able to  develop their economy in the way they may wish to do so. So we would very much urge to  them to re-engage with the six party talks process. So the North Korean Ambassador said that  the North Koreans didn’t believe the atmosphere was right at the moment to re-engage in the  talks of the six party process. My own view is that we just need to keep up the diplomacy of  encouraging the North Koreans to go back to the table to talk. We need to encourage China to  use its good offices to encourage the North Koreans because China is the country that has the  greatest influence over North Korea. And I don’t think that at this stage, there is any reason  for excessive alarm.

Journalist: Have you actually had talks with China given their important role?

Downer: I haven’t yet today but I am intending to do so.

Journalist: Did the North Korean Ambassador indicate (inaudible) a time that it would  become right (inaudible)?

Downer: Well he didn’t say that but I took some encouragement from the fact that although  he thought the climate wasn’t right at the moment, that implied that matters could change and  the climate could be better. So, I think that’s really what as an international community we  have to do, we have to put all of our energy into encouraging the North Koreans to understand  that there is nothing to be gained for them in walking way from the six party process.

Journalist: It must be very (inaudible)

Inquiries:  (02) 6277 7500 1





Downer: Well, look this is not a regime that has ever been easy to deal with and on the one  hand you have to show resolve and strength when you’re dealing with these types of regimes.  But on the other, with persistence it’s remarkable how things suddenly can change. We’ve  seen that with other governments.

Journalist: Given developments (inaudible) and the United States, be more conciliatory in  tone (inaudible).

Downer: Well the United States is the country in the world that more than any other stands  up for freedom and democracy, I think we would accept that. And they are values we  passionately support as well. You’ll never find me criticising the United States for supporting  freedom and democracy against tyranny. I mean I’m not going to go out there and back  tyranny. So, we value enormously the tremendous strength and resolve the President and the  Administration shows in standing up for things that are good in life.

Journalist: Are you concerned about there nuclear weapons (inaudible).

Downer: Well, yes but on the other hand it is our view that North Korea is likely to have two  or three nuclear warheads. The Director General of the International Atomic Energy Agency,  Al-Baradei, during the course of last year suggested publicly that they might even have more  than two or three. We don’t really know but we do know that they have been working at  reprocessing. We believe almost certainly, enriching uranium and bearing that in mind, they  are likely to have some nuclear weapons, albeit maybe just two or three.

Journalist: And just regarding Xstrata, developments there, any concerns that Australia could  lose control of uranium deposits in South Australia?

Downer: Not at all. I’m the Minister responsible for our uranium export regime. We have  nuclear safeguards agreements with all the countries we export uranium to. It doesn’t matter  who owns the company that exploits the uranium resources. What matters is the terms under  which Australia exports that uranium. And they are very strict safeguards that we apply, we  only export uranium from Australia under nuclear safeguard agreements. And that is the law  of the land. And so whether Xstrata owns Western Mining or whether somebody else owns  Western Mining that’s not really going to have any bearing on the security of our uranium  exports. Whoever owns our uranium mine and Olympic Dam isn’t the only one - and the  others are foreign owned actually - who ever owns uranium mines in Australia is required to  adhere to Australian law and Australian law means that they are not allowed to export  uranium from this country to anywhere else in the world without a nuclear safeguards  agreement being in place between the Australian Government and the relevant government or  organisation.

Journalist: So that would rule out the concerns that have been raised regarding Xtrata’s links  with India and China?

Downer: I don’t think there is any need to be concerned about that at all. I mean, there are all  sorts of companies in Australia that have links with India and with China that are no concern  of ours at all. But in this particular case, China has approached Australia and asked if we

Inquiries:  (02) 6277 7500 2



Inquiries:  (02) 6277 7500 3

would be prepared to sell uranium to China. They did that quite some time ago. I said to the  Chinese government that we would only export uranium to you on condition that there was a  nuclear safeguards agreement. We would only export uranium if we were certain that

Australian origin nuclear material was only used in civilian facilities, there could be no use of  Australian uranium in any military facilities at all, including naval vessels that may be  powered by nuclear reactors. And so that is a matter for negotiations between Australia and  China. But that has nothing to do with who owns Western Mining. The ownership of Western  Mining is entirely a commercial matter, it has no bearing on national security at all. It’s the  way that the Australian Government regulates the uranium industry. And in particular the way  the Australian Government regulates uranium exports which is relevant to national security.  And for that matter, international security.

Journalist: Are you concerned about Russia’s bidding to sell uranium to Iran?

Downer: Well it’s not as simple as that. The concern about Iran is that Iran would reprocess  or enrich the uranium to create material that could be used for nuclear weapons purposes. Not  that Iran would participate in having civil nuclear power reactors, a lot of countries have  those. And as long as their civilian nuclear power generating system is consistent with Iran’s  obligations under the nuclear non-proliferation treaty and is subject to inspections by the  International Atomic Energy Agency, including the second optional protocol, then that in  itself is not a great concern to the international community, including us. So they have to  obtain the uranium from somewhere, if Russia were to export uranium to Iran, its important it  do so under appropriate and very stringent conditions. The real issue is that we do not want to  see Iran proceed with reprocessing and enrichment facilities, thereby producing material that  could be used for nuclear weapons purposes.

Journalist: Prince Charles is coming to Australia, (inaudible) get an invite to the wedding?

Downer: Well, I’ve been to a lot of weddings over the years. I think all I could say about  Prince Charles and Camilla is that I wish them well. I hope they’ll be very happy. I don’t  think anyone is in any doubt that they love each very much and it’s a wonderful thing for  them to be getting married and I wish them well. I hope they have a very happy life together.

I’ve heard some people say this is a matter for us to debate in Australia, it’s not a matter for us  who Prince Charles marries it is a matter for Prince Charles. And I always say to people - if  you can find someone who loves you and you can marry them- it’s a wonderful thing. I was  lucky enough to do that myself.

Journalist: Just briefly, you’re heading over to Melbourne for the Japan Australia  conference, will any of the activities there have any bearing on the future of Mitsubishi, will  you be raising that?

Downer: No, I haven’t been planning to, to the best of my knowledge. Whilst Mitsubishi has  been going through some very tough times and as a South Australian I’m very focused on the  problems that Mitsubishi has had, that the plans to develop the new model are going ahead.  And once the new model is launched, and that is going to happen, I understand during the

course of this year. If it’s good the company will go from strength to strength and I very much  hope it does.   ENDS

