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Keynote Address by Mr. Tetsuro Yano,
Senior Vice-Minister for Foreign Affairs,
at the Australia-Japan Conference for a Creative Partnership

The Honourable Minister for Foreign Affairs, Mr Alexander Downer,
Chairman of Australia-Japan Foundation, Mr Jerry Ellis,
Chairman of ITOCHU Corporation, Mr Minoru Murofushi,
Ladies and Gentlemen,
   It is a great privilege for me to have this opportunity today to make a keynote address at this Australia-Japan Conference for a Creative Partnership on behalf of the Government of Japan.
  Before taking up the main theme of my address, I wish at first to touch upon the dreadful bombing that took place in Bali on October 12. This thoroughly despicable terrorist act killed and injured hundreds of people, including scores of Australian citizens and 15 Japanese nationals. I wish to offer my deepest condolences to the families of those who lost their lives in the attacks and our prayers for the recovery of those injured.
  In quick response to the bombings, Foreign Minister Downer, under Prime Minister Howard's leadership, immediately went to Bali and the site of the bombing to lead Australia's on-site response efforts. Maximally involved in these efforts, Mr. Downer also met with President Megawati in Jakarta and established a joint investigation and intelligence team with the Indonesian government.
  Since 9/11, Japan has also played an important role in the fight against these unforgivably contemptible terrorists acts. And in collaboration with the international community, Japan will continue to be fully and actively engaged in this fight. For this, the Government of Japan wants to take advantage of all opportunities to strengthen international efforts for fighting terrorism.

  Now I would like to turn to the main focus of my talk.
  As was reaffirmed at the Sydney Conference in April last year, the Australia-Japan relationship is one of the most successful bilateral relationships in the Asia-Pacific region. There are several reasons for this.
  First, both of our nations share the values of respect for democracy and human rights and faith in the market economy. This fact has served to create the foundation upon which our countries have built a solid partnership, in spite of the calamitous experience of the Second World War.
  Next, because of these common values, we share the same interests and concerns in East Asia. Both of our countries are aiming at ensuring peace and security in East Asia, with democracy and human rights fully realised and protected. Of further common benefit for both of our countries will then be the spread of open economic systems based on a market economy and, at the same time, the deepening of economic relations among the countries in the region.
  Moreover, when we look at the actual economic picture, it is clear our two countries have developed mutually complementary economic relations. For Japan, Australia is our largest supplier of important resources like iron ore, coal, and aluminium. And for Australia, Japan is Australia's biggest export market, including for agricultural products. This trade also forms a great part of the foundation of our mutual relations.
  In these ways, Australia and Japan have become natural partners, sharing common values and interests. From now, I would like to talk on consider the roles both of our countries play in the Asia-Pacific region, particularly in East Asia.

  Diversity-diversity in history, culture, ethnicity, and traditions-is a very important characteristic of the Asia-Pacific region. But although diversity is a vital factor for the growth of the Asia-Pacific region, it is also true that the region is currently facing serious issues in relation to this diversity.
  The Bali bombings made very evident that this region is still exposed to the threat of terrorism. Moreover, in many countries of the region, there are domestic forces in opposition to the governments of those countries, and there is the constant fear that such opposition groups will resort to extreme actions. And the development of nuclear weapons by North Korea is an extremely serious problem that affects the peace and security of Northeast Asia and, in turn, the entire international community.
  When we look at the economic situation, we can also see an extreme diversity, from the types of economic systems to actual economic trends. At present, several actions for deepening economic co-operation in the region are underway and gaining momentum. These actions should contribute to the harmonisation of the region's economic systems and the expansion of economic exchanges, but it can also be well imagined that the region's diversity may become an impediment to these efforts.
  The roots of this political and economic diversity lie in the region's cultural and social diversity. There should never be a lack of respect for this diversity as the affairs of the region are advanced. A dogmatic approach that ignores this diversity may stem from a momentary sense of rightness, but it will surely have an opposite and negative effect on this region.
  Reflecting this diversity is the fact that the Asia-Pacific region has not yet developed clear-cut frameworks as in Europe. Rather the region needs various multilateral frameworks like APEC, ASEM, ARF, and ASEAN+3 and, at the same time, a great many co-operative bilateral arrangements. The present reality is that each of these various frameworks and arrangements is in its own way opening up and developing beneficial avenues of development and growth.

  When he visited Australia in May of this year, Prime Minister Koizumi explained his proposal for the creation of a community in East Asia that "acts together and advances together," a community in which Australia and New Zealand should be core members.
  At the core of this proposal is the understanding that, in light of the diversity in the East Asia region, establishing new and rigid frameworks is not realistic at present. Rather than pursuing further conceptualisation of frameworks, we should adopt a more functional approach covering various political, security, economic, and social aspects, through which the countries in the region can co-operate together in concrete and practical ways. Then through the building up of this kind of co-operation, there will be a natural evolvement of a strong regional community.
  This kind of co-operation has already started. So next I would like to consider in what kinds of efforts and in what kinds of fields Japan and Australia have been involved.

  Here I would like to touch upon some examples of regional co-operation that is being promoted in various fields and the contributions both Australia and Japan are making in these efforts. The Honourable Foreign Minister Mr Downer has already talked about Australia's contributions and policies in this regard, and I would like to summarise and expand upon briefly Japan's own contributions.

  At the top of the agenda regarding political and security issues are countermeasures against terrorism. Both Australia and Japan have been earnestly dealing with such countermeasures, and our two countries have had high-level bilateral consultations regarding them. At the same time, we have been promoting co-operation with other Asian countries, and Japan has been providing technical and financial assistance to many countries, including Indonesia, in the area of capacity building against terrorism. Australia has also entered into memoranda of understanding regarding co-operation against terrorism with some countries in the region.
  In addition, our contributions to peacekeeping operations in East Timor are also important. Australia has dispatched the greatest number of troops of any country providing peacekeeping forces to East Timor, while Japan has dispatched 690 troops mainly as engineer unit. These personnel are working and co-operating on a daily basis with the Australian units.

  In February of this year, Australia co-hosted with Indonesia a regional ministerial conference on trafficking in persons, one of the serious transnational problems the region is facing. Then Senior Vice-Minister for Foreign Affairs Mr. Seiken Sugiura attended the conference as Japan's chief representative. Japan will co-operate with these efforts as a co-ordinating country for one of the focus areas.
  In addition to this issue, concern is growing over the connection between money laundering and the funding of terrorists, and I have heard that Australia is taking various initiatives together with Indonesia regarding these problems. Japan would also like to co-operate in this area.

  Within the ASEAN countries, efforts for establishing AFTA are moving forward, and toward the ASEAN countries themselves, there is a swelling wave of interest in creating networks of free trade agreements, as seen by the efforts of China and the United States to develop ones with ASEAN countries. Japan is also searching for new comprehensive economic partnership agreements with ASEAN countries, and Australia is moving forward with FTA negotiations with Thailand and Singapore.
  Australia has positively contributed to economic development in the region as a member of the Asia Development Bank since its establishment and as ADB's major shareholder in Asia. During the Asian financial and currency crisis, Australia was the only other country besides Japan to provide financial assistance to all three countries most harshly impacted, Thailand, Indonesia, and South Korea.

  Australia's positive and active involvement in these regional efforts has proven of great benefit for the prosperity and stability of the region. In the future, both Japan and Australia should continue to contribute positively to regional efforts of all kinds. For this, I would next like to speak about the fundamental aims and goals our countries should share in these efforts.

  First, it is essential that the region achieve peace and security while respecting the values of democracy, market economy, and human rights.
  Second, it is vital that all countries in the region unite and co-operate to suppress terrorist acts, which are among the greatest threats to the securing of peace and security. Moreover, the development and spread of weapons of mass destruction is also threats of a similar gravity, and efforts for arms reduction and non-proliferation to stop this menace are crucial.
  Third, we must strengthen economic co-operation in the region. Japan believes that the deepening of regional economic ties based on advanced rules and the maintaining of openness to countries outside the region will lead to the economic activation of the region and the complement of the WTO process.
  And finally, the promotion of joint regional initiatives with these goals as their targets is indispensable.
  I believe that both Japan and Australia agree on these basic goals I have outlined and, moreover, have both the capability and the will to contribute greatly to their realisation.

  Finally, I would to offer some proposals for specific co-operation between both our countries.
  
  First, we should prepare channels and means for ensuring close consultations, co-operation, and collaboration between our countries. Regarding political and security issues, exchanges of information, policy co-ordination, the promotion of joint initiatives, and so on in the various areas I mentioned previously, including terrorism countermeasures, are essential. On the economic front, we should search for high levels of economic partnership suitable for countries who share advanced economic systems. I believe such forms of collaboration could become a model for the region.
  Second, the sharing of information regarding the various regional initiatives both countries are participating in is important. Third, as a result of this sharing of information, we should add to the number of regional joint initiatives in which both of our countries will participate. For this and when adopting various initiatives for the East Asian region, I believe it would be very effective for us to proceed by providing support each other, based on preliminary consultations between both countries, in those areas where we can mutually complement each other. For example, Australia has signed memoranda of understanding regarding international terrorism with Malaysia, Indonesia, and Thailand, and is attempting to enter into such an agreement with the Philippines. Both Japan and Australia are already co-operating in this area by holding consultations on terrorism and exchanging information. I believe it would then be very possible for us to study and consider Japan-Australia co-operation for capacity building in Southeast Asian countries regarding anti-terrorism countermeasures.

  I have not been at my present post for a very long time. However, I can assure you that I am committed to working for the strengthening of Japan-Australia ties and the development of the Asia-Pacific region through the policies I have outlined today.
  Thank you for your attention.