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AUSTRALIA-UNITED STATES MINISTERIAL 
CONSULTATIONS

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JOINT COMMUNIQUE

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1.Â The Australian Minister for Foreign Affairs, 
Alexander Downer, and the Minister for Defence, Ian McLachlan. the United 
States Secretary of State, Madeleine Albright, and Secretary o  f Defence, William Cohen, 
met in Sydney on 30-31 July 1998 to advance further the Australia-U.S. 
alliance relationship, and to discuss regional and global issues.

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2.Â Australia and the United States noted that the depth and maturity 
of the relationship and the scope of their common agenda underlined 
the enduring value and importance of these consultations. They welcomed 
the opportunity to exchange views and assessments, and to consider ways 
of advancing their common interest in global and regional peace and 
prosperity, and in the development of the bilateral relationship. Australia 
expressed support for continued, comprehensive U.S. engagement in the 
Asia Pacific which provides the underpinning for the security and stability 
of the region and its return to prosperity. The United States welcomed 
the important contribution that Australia's wide-ranging engagement in 
the Asia Pacific continues to make to regional security and stability. 
Ministers reaffirmed their strong commitment to the 1996 Sydney Statement, 
observing that events over the past year had confirmed once again,' 
the special quality of the partnership between the two countries.

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3.Â Ministers focused particularly on two developments with important 
implications for regional and global stability and security:

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*Â First, developments in the Asia Pacific, with particular emphasis 
on the Asian financial crisis, including measures to enhance Australia-U.S. 
cooperation to promote a secure and prosperous region; and

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*Â Second, events in South Asia, with partic  ular emphasis on the ramifications of India's and Pakistan's nuclear 
test explosions, and the crucial importance of the Treaty on the Non-Proliferation 
of Nuclear Weapons (NPT) and the Comprehensive Nuclear Test Ban Treaty 
(CTBT) as two global pillars of the international nuclear non-proliferation 
and disarmament regime.

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REGIONAL CHALLENGES AND OPPORTUNITIES

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4.Â With profound economic, political and strategic changes underway 
in the Asia Pacific region, Australia and the United States emphasised 
the importance of practical and well-focused bilateral, regional and 
global cooperation in helping the Asia Pacific to meet current and emerging 
difficulties. The Asian financial crisis continues to pose major challenges 
for affected regional countries, with wider implications for the Asia 
Pacific and globally. The two governments expressed confidence that 
the fundamental regional strengths which had generated prosperity and 
stability in the Asia Pacific would provide the basis for regional recovery 
over the longer term.

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5.Â Sound macroeconomic policies, stronger and more transparent financial 
systems, structural reform and more open markets are the key to restoring 
financial stability and confidence in the economic health of countries 
affected by the financial crisis. Implementation of economic reform 
programs supported by the international financial institutions will 
continue to have a central role in helping to restore financial and 
monetary stability in the   region, and in alleviating the wider social 
impact of the crisis. The two governments underlined the importance 
of social policies which address the burden of the economic adjustment 
on the poor and most vulnerable members of affected countries. Australia 
and the United States expressed strong support for the continued leadership 
shown by the International Monetary Fund (IMF), the World Bank and the 
Asian Development Bank, in mobilising financial and other assistance 
for countries affected by the crisis. Both governments expressed their 
support for the on-going efforts of international financial institutions 
to tailor their assistance programs to meet the needs of individual 
countries. Australia and the United States recognised the important 
role played by APEC in responding to the crisis, including in holding 
the line on free trade and in endorsing the Manila Framework, which 
facilitates bilateral assistance to those countries in the region requiring 
balance of payments support, as well as the work arising from the Special 
Meeting of Finance Ministers and Central Bank Governors held in Washington 
in April 1998.

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6.Â Australia and the United States agreed that, 
international assistance to support economic reform should continue 
to be based on progress; in implementing economic adjustment goals. 
Australia strongly supported the efforts of the U.S. administration 
to   obtain 
Congressional approval for contributing to the IMF's Eleventh General 
Quota Increase. The United States welcomed Australia's contribution 
to the management of the international response to the economic crisis, 
and its role as a source of support to countries affected by the economic 
downturn. The two governments praised Thailand and the Republic of Korea 
on the progress made thus far in stabilising their economies and implementing 
appropriate financial sector reforms.

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7.Â Recent events have underscored the significant influence which Indonesia 
has on the stability, security and prosperity of South East Asia and 
the wider region. Australia and the United States emphasised their conviction 
that Indonesia was in transition to a new era and both sides expressed 
strong support for the Indonesian Government's commitment to political 
reform and the staging of early elections consistent with the aspirations 
of all Indonesians. Both sides urged all parties in Indonesia to continue 
to give priority to an orderly and peaceful transition. The two governments 
expressed their common resolve to continue to help Indonesia overcome 
its pressing economic difficulties, including increased humanitarian 
assistance, as Indonesia proceeds with its commitment to implementing 
economic reform in close cooperation with the IMF. Both governments 
urged all parties to exercise utmost restraint in pursuit of a lasting 
solution to the future of East Timor.

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8.Â Strong and confident bilateral and regional relationships are the 
foundation of the Asia Pacific's efforts to manage the financial crisis 
and its wider implications. Australia and the United States undertook 
to continue to work closely together, and with others in the region, 
to help the region overcome the financial crisis. The two governments 
welcomed the increased level of bilateral consultation and exchange 
of information and assessments on economic and financial developments 
in the region, including through key regional and international institutions, 
and agreed to maintain this enhanced cooperation and dialogue. Both 
sides underlined the importance of promoting good governance and national 
institution-building in the Asia Pacific, including implementation of 
the program agreed by APEC Finance Ministers, and more broadly in APEC, 
through the development of projects aimed at enhancing economic governance 
in the region.

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9.Â Australia and the United States resolved to keep their markets open 
and called on other countries to do likewise. In this regard, both governments 
welcomed the reaffirmation by APEC leaders in November 1997 of their 
commitment to implement the Bogor Declaration for free trade and investment 
in the region by 2010/2020, and recognised the importance of the preparatory 
process for the next World Trade Organisation (WTO) round of multilateral 
trade negotiations. The two governments agreed on the imperative for 
APEC to conclude in November the Early Voluntary Sectoral Liberalisation 
initiative approved by APEC leaders in November 1997 and to press ahead 
with further improvements in Individual Action Plans.

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10.Â In a transition period marked by rapid change, effective and dynamic 
relationships between the major regional powers are a vital component 
of the region's strategic resilience. Australia expressed continued 
support for the U.S.-Japan alliance as a central, clement in the region's 
security architecture, and welcomed the recognition by the U.S. and 
Japanese governments of the importance in the region of their relationship. 
Australia and the United States welcomed the formation of a new administration 
in Japan and looked to the Government of Japan to take strong action 
to restore and strengthen the Japanese economy. Australia and the United 
States agreed continued implementation of policies to advance economic 
growth in Japan would have significant benefits, both economic and strategic, 
for the Asia Pacific region. The United States and Australia welcomed 
recent positive developments in relations between Japan and China, and 
between Japan and Russia, as important steps in fostering the Asia Pacific's 
growing sense of community and cooperative endeavour.

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11.Â Australia and the United States also acknowledged 
the profound importance of the U.S.-China relationship to regional security 
and prosperity. Australia welcomed the successful visit of President 
Clinton to China in June-July 1998, and congratulated th  e United States and China on recent progress made in their relationship. 
Both sides emphasised the essentiality of comprehensive and practical 
engagement with China, and of supporting China's development as a stable, 
open and prosperous power, and a, strong and constructive partner in 
the international community. Both governments agreed that a "one-China" 
policy best served the region's interest in stability and prosperity.

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12.Â Australia welcomed the continuing U.S. commitment to security and   
stability on the Korean peninsula, expressed through the maintenance 
of the important U.S.-Republic of Korea (ROK) security relationship, 
its active participation in the Four Party peace process, and   its leading role in the Korea Peninsula 
Energy Development Organisation (KEDO). The United States welcomed Australia's 
latest contribution to KEDO. Australia and the United States agreed 
KEDO has provided a critical vehicle to avoid nuclear proliferation 
in North Korea while promoting confidence building and constructive 
engagement between the Democratic People's Republic of Korea (DPRK) 
and the broader international community.

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13.Â Australia and the United States emphasised that the further development 
of regional multilateral security dialogue would help strengthen the 
existing web of mutually supportive regional relationships. The two 
sides stressed the importance of the ASEAN Regional Forum (ARF) in promoting 
and enhancing security dialogue in the Asia Pacific. Both sides expressed 
satisfaction with the ARF's development and emphasised their continued 
commitment to strengthening the ARF's work on confidence building measures 
and to the development of a preventive diplomacy role for the ARF.

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GLOBAL SECURITY AND POLITICAL COOPERATION

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14.Â Australia and the United States reaffirmed their strong conviction 
that the spread of weapons of mass destruction, and the delivery systems 
for such weapons, pose serious challenges for global and regional security. 
The two governments place enduring value on the effective implementation 
of non-proliferation and arms control regimes as the foundation of global 
and regional efforts to prevent the spread of weapons of mass destruction 
and to enable their eventual elimination. The United States and Australia 
stressed the crucial importance of the Treaty on the Non-Proliferation 
of Nuclear Weapons (NPT), the Comprehensive Nuclear Test Ban Treaty 
(CTBT), the Chemical Weapons Convention (CWC) and the Biological Weapons 
Convention (BWC) as pillars of the global non-proliferation and disarmament 
regime. The United States congratulated Australia for its ratification 
of the CTBT. Both sides expressed strong support for the prompt establishment 
of the CTBT's global verification regime and development of the Treaty's 
institutional structure in Vienna, and for the immediate commencement 
in the Conference on Disarmament of negotiations on a treaty to ban 
the production of fissile material for nuclear weapons or other nuclear 
explosive devices (FMCT). Both sides agreed that the FMCT and CTBT would 
provide important non-proliferation as well as disarmament benefits. 
Australia and the United States agreed on the urgency of the START II 
Treaty entering into force so that the major nuclear arsenal reductions 
provided for in that Treaty could be implemented, and so as to clear 
the way for the expeditious conclusion of a START III agreement between 
the United States and the Russian Federation.

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15.Â The United States expressed strong support for Australia's proposal 
to convene a high level meeting to highlight the political and security 
imperatives of concluding, as soon as possible, a draft protocol to 
strengthen compliance with the Biological Weapons Convention through 
the Ad Hoc Group negotiations. Both governments reaffirmed their shared 
commitments.

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