Australia-Japan Conference for a Creative Partnership
Co-chairs' Statement
Tokyo, 7-8 November 2002

I. Background

1. The Australia-Japan relationship is one of the most successful bilateral relationships in the Asia-Pacific region. From the ashes of World War II, the two countries have built a strong partnership in the region on the basis of shared values and principles. In recent years, however, and at the direction of their Prime Ministers, both nations have embarked on a process to strengthen the relationship further to meet the challenges of the early 21st Century.
2. Consistent with this objective, the Australia - Japan Conference for the 21st Century was convened in April 2001 in Sydney. At this Conference, leaders from various sectors participated and conducted a series of active and fruitful discussions on the future bilateral partnership in areas such as the strategic and political relationship, trade and economic linkages, culture, social issues and science / technology. Those discussions led to the publication of the "Sydney Declaration for Australia - Japan Creative Partnership", in which recommendations were cited with regard to new co-operation initiatives and mutual understanding providing the basis for them.
3. Subsequently, a number of recommendations in the Sydney Declaration were introduced into the joint press statement, "Australia - Japan Creative Partnership", between the Prime Ministers of both countries on the occasion of Prime Minister Koizumi's visit to Australia in May 2002.
4. Following the press statement, the recommendations from the Sydney Declaration have become reality, for example, in the following way.

   (1) Strengthened Co-operation between the two governments

   The governments of both countries have stepped up consultations, in the political and security areas, to promote mutual understanding of each other's policies and to co-ordinate their actions on such issues as terrorism, PKO operations in East Timor, UN issues and trans-national issues.

   (2) 1.5 Security Dialogue ( 2-3 September, Canberra )

   Government officials and academic researchers held a joint dialogue to exchange views on regional security, counter-terrorism measures and individual issues of concern in the Asia-Pacific region.

   (3) Economic Consultations between the Governments ( 2-3 September, Tokyo )

   The Sydney Declaration called for a trade and investment facilitation agreement (TIFA), and this prompted the establishment of the high level economic consultations to explore all the options for deeper economic linkages between the two countries, as agreed by the Prime Ministers in May. The first round of director-level consultations, which is the first step in the process, was held in Tokyo at the beginning of September.

   (4) Social and Cultural Exchanges

   Both countries have continued to strengthen educational, cultural, social, science and technology relations. Initiatives included the inaugural Australia-Japan Higher Education Forum ( May 2002 ), the first Australia-Japan Biomedical symposium to be held in Australia in February 2003, substantive Australian participation in Japan's Nanotechnology Forum ( also in February 2003 ), the launch of Australia's "vision one million" strategy to increase tourism links and active cultural and people-to-people programs.
5. During his visit to Australia, Prime Minister Koizumi reiterated his vision for a regional community including Australia that "acts together and advances together", which he first proposed in his policy speech in Singapore in January. In order to formulate such a community, he emphasised a need to accumulate the experiences of functional co-operation, for example, the initiatives involving a wide range of regional countries in such areas as PKO operations in East Timor, trans-national issues like people smuggling and money laundering, and regional economic linkages.
6. Australia has given its support for Prime Minister Koizumi's vision, and much of the recent co-operative activities between the two nations have been consistent with its spirit. Australia has also promoted its own regional initiatives in a manner that complements Mr. Koizumi's objectives. Australia has played a major role in the peace keeping operations in East Timor, and strengthened their co-operation with Indonesia to the extent that the two countries jointly hosted high-level regional meetings on trans-national issues and that they concluded a memorandum of understanding on terrorism. Australia has signed a similar MOU with Malaysia and Thailand, and started negotiations with the Philippines to this end.
7. On the other hand, new international issues of significance have emerged after the Sydney Declaration. The following two aspects are of particular relevance.

   (1) Security Issues

   Since the terrorist attacks on 11 September 2001, there had been a growing recognition of a need for strengthened counter-terrorism measures, and that was felt even more strongly after the bombing attacks in Bali on 12 October. Ways and modalities of co-operation between Australia and Japan as well as in the region are being explored. Another striking development, which has particular relevance from a point of view of regional security, is the recent moves of the Democratic People's Republic of Korea.

   (2) Initiatives for Deeper Economic Linkages in East Asia

   Japan has conducted research and consultations towards the promotion of economic partnership with the ASEAN countries and Korea, while Australia has concluded FTA negotiations with Singapore and commenced negotiations with Thailand, and signed a closer economic partnership agreement between AFTA and CER. China has also proposed an FTA with ASEAN. As initiatives have been actively pursued for deeper economic linkages in the region, there is now a need for Australia and Japan to explore all the options for deeper economic linkage between themselves.

II. Conference Organisation

8. The Australia-Japan Conference for a Creative Partnership was held at Mita Kaigisho in Tokyo from 7 to 8 November 2002. On the basis of the background mentioned above, the objective of the Conference was to explore bilateral cooperation between Australia and Japan, including in the regional context. The discussions were on political and security issues, economic, and social and cultural issues. The conference contributed to the public awareness in both countries of the necessity and value of regional engagement by the two countries.
9. The Co-chairs of the meeting were Mr. Minoru Murofushi, Chairman of ITOCHU Corporation, and Mr. Jeremy Ellis, Chairman of Australia Japan Foundation. Other participants included eminent representatives of business, academia and government from both countries. The Minister for Foreign Affairs of Australia, Mr. Alexander Downer and the Senior Vice-Minister for Foreign Affairs of Japan, Mr. Tetsuro Yano gave keynote addresses at the opening session.
10. The plenary session discussed the impact of recent international developments on 'Expanding East Asian Community', the role of Australia and Japan in the region as partners, and the method and modality of formulating a community in the region.
11. Breakaway groups focussed on four crucial areas of the bilateral relationship. Group I dealt with political and security issues and discussed how Australia and Japan can cooperate in a new security environment, including initiatives to combat terrorism. Group II discussion focused on the prospect for economic linkages and financial co-operation in East Asia and on the initiatives for deeper economic linkage between Australia and Japan. Group III exchanged views on e-learning as a means of education and communication. Group IV debated the role of science and technology for the aging society.

III. Recommendations from the Conference

12. The Conference made a range of recommendations on how Australia and Japan could cooperate to strengthen the bilateral relationship and to make contributions in the regional context.
13. As a result of the discussions, there was a general consensus on the following points.

    (a) Cooperation and exchanges of views on a wide range of environment issues should be enhanced both in the public and private sectors.

    (b) There is now a clear need to take a cross-sectoral approach in analyzing the current situation in the region, because political, security, economic, social or cultural issues are more and more inter-linked under the current circumstances.

    (c) In order to promote Prime Minister Koizumi's vision for a regional community, it is required to create and implement various regional initiatives jointly promoted by both countries. In this context, further discussions on such initiatives should be conducted with participation from both government and private sectors.

    (d) In order to get more people involved in bilateral initiatives and exchanges, the possibility of declaring "Australia-Japan Exchange Year" at an appropriate timing should be explored.

14. The individual working groups had in-depth discussions on the issues assigned to them, and produced meaningful recommendations.
15. Working Group I (political and Security) agreed that Japan and Australia were moving beyond the simple recognition of shared interests to looking at ways in which our two countries could undertake practical co-operative measures to give effect to those shared political and security interests. The group agreed that this practical co-operation was all the more pressing in light of the current regional and international security environment, specifically in the aftermath of the terrorist attacks of 11 September and the Bali bombings. The group also agreed that this environment allowed for a wide range of possible bilateral co-operative activities.
16. In this context, the group I identified a number of priority areas in which Japan and Australia could develop their co-operation for the benefit of the bilateral relationship and the region more broadly. These areas were:

    1) Broad regional security issues, including:

    • evolving strategic relationships in the Asia-Pacific region, and
    • the enduring value and importance of Australia's and Japan's alliances with the United States.

    2) Transnational security threats, most particularly terrorism

    • noting the importance of closer bilateral co-operation, and
    • looking at what Japan and Australia could do to promote broader regional co-operation on transnational issues.

    3) Practical support measures for regional neighbours in transition,

    • particularly with respect to promoting regional stability and security, and
    • strengthening institutions and capacity-building.

    4) Enhanced defence co-operation, including in the area of peacekeeping

    • noting the progress already underway in this field, including the draft
    • "Action Plan" proposed during former Minister of State for Defence Nakatani's visit to Australia in August 2002.
17. The working group proposed the above suggestions for the consideration of both governments, with a view to undertaking further work at the direction of government on specific proposals to take forward cooperation - including through the convening of specialized 1.5 track dialogues. In this context, the working group welcomed the 1.5 track security dialogue held in Canberra on 2-3 September and called for the continuation of this process.
18. Working group II (economic) discussed regional and bilateral dimensions of the Australia-Japan economic relationship. Three recommendations came out of the discussion.

A. Promoting Bilateral Economic Integration

19. The working group strongly supported broad-based integration between our two economies which would boost economic growth in both countries.
    • It endorsed current official dialogue which is exploring options for deepening and extending the bilateral economic relationship. The working group supported an ambitious and balanced trade and economic agreement.
    • The working group emphasised the value of a new framework in delivering commercial benefits to both countries, for example through enhanced mutual recognition arrangements, strengthened regulatory linkages, and cooperative activities in new and emerging areas. It would also form a natural element in the economic integration process in the region. As developed economies, Australia and Japan can work together to develop models and benchmarks for region-wide cooperative measures. Such an arrangement would also reinforce both countries' support for a strong and effective multilateral trading system and be consistent with APEC goals and principles.
    • Governments should regularly engage with the private sector at all stages of this process including at implementation.

B. Partners to Promote Stability in East Asia

20. Australia and Japan are well placed to work together to promote economic and financial stability in East Asia.
    • The time has come to think about new regional mechanisms to promote stability. With our partners in the rest of the region, Australia and Japan should work towards the establishment of a mechanism, such as an Asian Monetary Fund, to enhance policy dialogue, surveillance, and financial cooperation to prevent and resolve financial crises in the region.
    • There is also substantial scope for Australia and Japan to cooperate in upgrading and harmonising standards and practices in regional financial markets.

C. Expanding Commercial Opportunities

21. Australia and Japan are dynamic economies and exciting commercial opportunities have emerged.
    • These include sectors like biotechnology, nanotechnology, information and communications technology, manufacturing, and education, health and other services. Many of these firms are small or medium sized, so we recommend that existing business bodies and financial and business intermediaries (including venture capitalists) revisit how they reach out to and support these firms, including in R&D and commercialisation. Governments should provide practical support to such SMEs. Participants thought that the services sector would become increasingly important in bilateral and regional commerce. Australia has particular expertise in providing training and education.
    • Changes are being discussed in Japan to promote business investment in agriculture and there are new opportunities for Japanese investment in food production in Australia. Informal dialogue, bringing farmers, business, academics and officials together in their private capacities, may be a useful way to discuss these issues.
22. Working Group III (e-learning as a means of education and exchange) shared information on experiences with the development and delivery of educational content using multimedia broadcasting and on-line technologies in schools, higher education and for lifelong learning. The growing collaboration and exchange of educational materials between institutions both nationally and internationally was noted.
23. The working group discussed e-learning in the context of the increased internationalisation of education, improved quality of learning, increased pressures on the cost of higher education and the increasing need for flexible course delivery to meet changing learner profiles. A range of positive benefits from e-learning were identified. Participants recognised the importance of face-to-face and in-country experience and saw e-learning as a means of adding value to this.
24. Delegates discussed an increasing demand for online course-content and noted the scope for increased access to education made possible by online delivery. This included the potential for Australia and Japan to work more closely to contribute to the educational needs of each other and of developing nations in the Asia-Pacific region. The importance of providing ongoing professional development opportunities to enable teachers to develop and make best use of online course content was noted.
25. Suggested areas for future bilateral cooperation recommended by the working group were:
    1. Undertake a joint review by 2004 of existing e-learning language programs in both Japanese and English with a particular emphasis on aural skills and with a view to building on the most effective approaches and models for on-line and combined delivery. For example, by addressing the need for an e-learning product that supports the new aural English language skills being emphasised in Japanese schools.
    2. Jointly investigate and identify initiatives by the end of 2004 that contribute to enhanced educational opportunities in developing nations in the Asia-Pacific region that would draw on the cooperative strengths of Japan and Australia and build shared understanding of common concerns (eg the environment and health).
    3. Recognise the importance of increased awareness of cultures between our two countries by collaborating to develop e-learning opportunities that are internationalised in content and form. Examples of this might include developing content that includes the use of case studies from each others' countries and participation in online activities by synchronous and asynchronous means.
    4. Identify e-learning opportunities by the end of 2003 where collaboration will lead to more effective outcomes than would occur were we to work separately, with particular focus on the actions noted above.
26. Working Group IV (science and technology for the ageing) discussed the common issues facing both countries in relation to population ageing, particularly the need to improve the quality of life for older people through the use of innovative technologies. People in Australia and Japan enjoy the longest and healthiest life expectancies in the world. The challenge for the 21st Century is to make these added years of life in old age as healthy and productive as possible. Issues concerning extended working life, continuing participation in society, and the provision of health and social care, were identified as priorities.
27. The group canvassed a range of options for joint cooperation which require a multi-disciplinary approach and the support and facilitation of both Governments. Technology advancements, particularly in e-health, tele-medicine, electronic patient records, and assistive technology in independent living, were some of the areas discussed. The Group recommended the establishment of an Australia-Japan Panel on Ageing to explore the opportunities for joint research and development on ageing issues, in particular on ways to promote healthy ageing.
28. The working group made the following recommendations:
    1. We recommend the establishment of a multi-disciplinary Australia-Japan Panel on Ageing to explore opportunities for bilateral links for research and development on ageing issues in our two societies. We also suggest that population ageing be included as a cross-cutting topic in the next meeting of the Australia-Japan Joint Committee on Science and Technology.
    2. People in Japan and Australia enjoy the longest and the healthiest life expectancy in the world. We recommend that both governments strengthen bilateral exchanges and research activities to explore options to maintain and promote healthy and productive ageing in our two societies.
    3. We further recommend that the proposed panel explore bilateral initiatives for developing and evaluating assistive technologies, service delivery models, life-long learning programs and e-health for the aged.