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　　“There are no sectors [in the cooperative program between Australia and China] that we are dissatisfied with, but we could do more.”--Alan Thomas
　　Since China signed a framework agreement to import uranium from Australia, cooperation between the two countries in the nuclear sector has been heating up. Recently, Beijing Review reporter Ni Yanshuo spoke with Australian Ambassador to China Alan Thomas on how China can cooperate with the country with the world’s largest uranium reserves.
　　Beijing Review: Mr. Ambassador, what do you think of the current development of Sino-Australian relations?
　　Alan Thomas: I think it is a very strong and successful relationship. It has experienced a big transformation in the past decades.
　　The trade relationship is very important, but the relationship between our two countries goes well beyond a successful trade relationship. We have had a broadening of people-to-people links with exchanges in education, science and so on.
　　If you look at the number of high-level exchange visits in both directions, you will find the strength of our relationship. China’s top three leaders, President Hu Jintao, NPC [National People’s Congress] Chairman Wu Bangguo and Premier Wen Jiabao, have all been to Australia in the last three years. Our Prime Minister, Mr. [John] Howard, has come to China twice and he will be visiting China again probably in June this year.
　　What sectors in our cooperative program are not satisfying and need strengthening?
　　There are no sectors that we are dissatisfied with, but we could do more. We would like to see more activity between Australia and China in the services sector, for example. We would like to see more Australian law firms, banks and insurance companies operating in China. We also would like to see more research links in the education area. We have 66,000 Chinese students studying in Australia at the moment. That’s very good. But we would like to see more cooperation at the level of university researchers and scientific researchers. So, we would like to see more cooperation there.
　　On most big political strategic issues, I think China and Australia share a lot of similar views. We do have some differences occasionally. Our relationship is a very open one, and is based on common sense and mutual respect and understanding. I think, because of that, our leaders are ready to talk to each other in a frank way. That is very healthy for our relationship overall.
　　How do you regard nuclear cooperation between our two countries?
　　I think the prospects in this regard are very bright. Australia has the largest reserve of uranium in the world, accounting for 40 percent. But we have only sold uranium to countries that have signed the Nuclear Non-Proliferation Treaty (NPT) and that have also signed a bilateral nuclear safeguard agreement with us. China is, of course, a member of the NPT and as you know, during Premier Wen’s visit to Australia in April, China signed a bilateral nuclear safeguards agreement with Australia. So, all the necessary framework and legal framework are now in place to enable Australia to export uranium to China. It’s now up to the companies of our two countries themselves, Chinese buyers and Australian companies get together to do some commercial negotiations to sign specific contracts. But the [Australian] Government is optimistic that sales will take place.
　　I think there have been some preliminary discussions between some of the Australian suppliers and Chinese buyers. These are, of course, purely commercial negotiations and the government itself does not want to be involved in the negotiation. Our job is to set the legal and treaty framework for the negotiations to take place.
　　I think the quantity of uranium exports to China in the future will be quite large. Based on China’s plan for its nuclear power industry, China will build maybe 20 to 30 more nuclear power stations. The demand for uranium is very great. We would expect a quite large-scale contract between Australia and China.
　　What is your opinion of the prospects for establishing a free trade area between China and Australia?
　　We are very keen to conclude a free trade agreement (FTA) with China. Our trading relationship is already very successful. Last year, for example, the two-way trade volume between China and Australia reached $30 billion. This figure has been increasing at 20 percent a year in the past five years. So, even without an FTA, I think our trade is growing very well.
　　But we, and the Chinese Government, believe we can put our friendly relationship onto a more ambitious level by concluding a free trade agreement.
　　When Premier Wen visited Australia in April, he came up with a four-point plan to speed up the negotiations for achieving the FTA. In particular, he said that we should try to achieve breakthroughs in those areas of particular significance to both sides in the next one to two years.
　　But, it is not easy and will be a very difficult negotiation. Both sides are aware that agriculture, services, trade and investment are three areas that will be particularly sensitive and difficult for both sides. But, for us, it is very important that the trade agreement should be a fully comprehensive agreement and it should deal with trade across all sectors in our economies. So, our negotiations will continue until we get a satisfactory result. We have had five rounds of negotiations so far.
　　We have not set a specific timetable for the negotiation. For us, it is more important to achieve a high-quality agreement rather than simply achieving a quick agreement. We do not mind its taking a few more years. We will be patient for a high-quality agreement. Australia negotiated a free trade agreement with the United States, Singapore, Thailand and New Zealand. In all those negotiations, we avoided setting a specific time frame for the agreement and negotiations. We simply continued until both sides felt that we had a deal and could sign the agreement.
　　The first strategic dialogue among Australia, the United States and Japan was held in March. How do you regard U.S. policy toward the Asia-Pacific region and will this influence Sino-Australian cooperation?
　　The talks did take place, but certainly didn’t just focus on China. They are broad strategic talks, which covered a large agenda of regional security issues and some global issues. As I would have expected, with China becoming a major world power, China was mentioned in various stage of discussions. But China is not the basis of those talks. It was simply one of the many subjects we discussed.
　　In terms of the U.S. role, Australia is an ally of the United States. We believe the U.S. presence in the Asia-Pacific is a very important contributor to stability in the region and has been so especially after the defeat of Japan at the end of World War II.
　　At the same time, we recognize that China is a major rising power. So, for us, it is very important for China and the United States to have a positive relationship as the two key strategic players at the moment. And I think the record of the half decade also shows that Australia is very close to the United States in many ways. But we are also close to China. We have different political systems, but it does not stop us from engaging on a wide range of quite sensitive issues with China. For example, we cooperate very closely on the North Korean nuclear issue. We have talked with the Chinese Government quite a lot about the problems of the nuclear crisis on the Korean Peninsula, as well as to the Americans. The three of us and other countries involved in the discussion of this issue have talked in a very frank and constructive way. I think there is enough space in this region for both the United States and China to play constructive roles. From Australia’s point of view, we welcome the active involvement of both countries.
　　Australia is not a member of the six-party talks on the North Korean nuclear issue, but Australia has a diplomatic relationship with North Korea. I am, in fact, accredited from here as ambassador to North Korea. That is my other job. I have visited North Korea on a number of occasions. Australian Foreign Minister Mr. [Alexander] Downer has also paid two visits to Pyongyang, in 2000 and 2004. Australia tries to play a constructive role in urging North Korea to come to the negotiating table and talk to the Americans and other key players involved in this issue. We have a diplomatic relationship with Pyongyang, but we have made it very clear to Pyongyang that our relationship cannot develop further unless it addresses the nuclear issue, which has caused so much concern in this region and beyond, and we will continue to deliver this message to them.
　　North Korea also has an embassy in Canberra. So, we are one of the small number of Western countries that have a diplomatic relationship with North Korea and we believe that is a useful channel of communication.
　　How do you regard the role of the East Asian Summit in the Asia-Pacific region?
　　We regard it as an important new regional body, primarily because it is a new opportunity for leaders in this region to meet at the head-of-government level. There are not many opportunities for governments in the Asia-Pacific to get together. It has had one meeting so far, and we’ve all yet to see what sort of agenda will be developed for the regional summit. Australia was pleased to be involved in the first meeting and we look forward to playing an active role in the future development of that institution.
　　I just want to add that for us, the preeminent regional organization is APEC [Asia-Pacific Economic Cooperation] forum. We believe this summit is one level below APEC in importance in terms of involving regional leaders. APEC has a more comprehensive agenda, dealing with economic, trade liberalization and security issues. Australia will continue to give its first priority to APEC.
　　But this summit [the East Asian Summit] is an important additional institution, which we support.
　　What is Australia’s position on the situation in Iran?
　　Australia is very concerned about the possibility that Iran might develop nuclear weapons. Most of the international community has made its views very clear. We also had a series of discussions with the Chinese Government on this matter. The European troika [Britain, Germany and France] has been involved in various initiatives to try to break the impasse on this issue. The UN Security Council, too, looks likely to get more involved in the future. Australia would support these initiatives. We hope that Iran can agree to reach a satisfactory solution acceptable to the rest of the international community.
　　

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