E&OE

27 August 2008

Joint media conference with Brazilian Minister for External Relations Mr Celso Amorim

STEPHEN SMITH: Firstly, thanks very much for turning up and I'm sorry we are bit late. We've just had a very productive conversation upstairs.

Can I firstly, on behalf of the Australian Government, formally welcome the External Affairs Minister for Brazil, Minister Amorim, to Australia?

And can I say, Minister, how pleased we are that this is the first visit by a Brazilian Minister since the election of the new Government and this is the second visit by a Brazilian Foreign Minister to Australia. The first one of course during your first term as Foreign Minister in the early to mid 1990s. So we welcome you here as the first Brazilian Minister to visit Australia in this Parliament and the term of this Government and we welcome the fact that you're the second Foreign Minister from Brazil to be here. You on two occasions.

In the course of Minister Amorim's visit he has, of course, had a meeting with Trade Minister Crean and Minister Crean and Minister Amorim released a statement about their discussions overnight.

Last night we had a dinner where we invited a range of Australians from academia, from business, and from science and technology to discuss with the Minister the growing links between Australia and Brazil.

I think it's true to say that the people-to-people business and investment, and science and technology exchanges have accelerated beyond the government-to-government contacts.

We now, for example, have about 12,000 Brazilian students in Australia. There's now significant science and technology cooperation, significant interest in both our great nations minerals and petroleum resources industry. Airlines from Australia, Qantas in particular, are putting on more flights to Latin America and this reflects a growing interest and a growing exchange between our two nations.

As a consequence, the Minister and I, and we have issued a communiqué which you will receive shortly, if you haven't already, have agreed that Australia and Brazil should take its bilateral relations to a new level.

We should have an Enhanced Partnership and to meet this Enhanced Partnership we have asked our officials to prepare a joint Plan of Action dealing with the range of interests and issues that we have, traversing the areas of interest of our relationship.

This Plan of Action will come to fruition in time for our Prime Minister and the Brazilian President to meet. They, of course, have already indicated an intention to visit our respective countries, the Prime Minister to visit Brazil and the President to visit Australia.

So very much at the heart of our very productive meeting this morning was to raise the bilateral relationship between Australia and Brazil to a new level and enhanced partnership.

We traversed this morning the array of bilateral regional and multilateral issues. Brazil and Australia are both very strong supporters of multilateralism such as the United Nations and the WTO. We spoke about reform of the Security Council. We also believe that it is important for us to be exploring options of working together closer regionally, through MERCOSUR-CER (the Australia-New Zealand Economic Relationship). So all of these points will become part of the plan of action that we effect.

Minister Amorim was very kind to invite both me and Simon Crean to visit Brazil. Simon and I have, of course, gratefully accepted and we will look at dates to effect that visit to Brazil.

One of the things that we did notice in passing, of course, is that Australians and Brazilians share a passion in what we would call soccer, what Brazil would call football. Brazil of course is hosting the 2014 World Cup and Australia has a bid to host the 2018 World Cup. So I have asked Minister Amorim to contemplate whether Brazil might be able to give us some assistance in that respect.

Those soccer aficionados amongst us might know that back in Brazil, Minister Amorim's team is Santos which of course Pele played for for a number of years. The only credentials I can claim is as the number one ticket-holder Perth Glory. But we also had a good conversation about soccer and other sporting and cultural interests that our two nations share.

So Minister we're very pleased to see you here. We've had a very productive meeting this morning, as we did last night and as you did with Minister Crean. I would be very pleased if you could make some opening remarks and then we will do our best to answer the questions from our journalists. Thank you, Minister.

CELSO AMORIM: Thank you, Minister. Of course, I am very glad to be here in Australia, the second time as Foreign Minister. I was here in precisely 14 years ago in my first term as Foreign Minister. So I am very happy to be here and to be the first Brazilian foreign minister to visit with the new government.

Of course, this takes place in the context of renewed contacts also of our leaders. They met - Prime Minister Rudd and President Lula met in the margins of the G8 and there are prospective visits that are being discussed and of course this gives an important frame for our own contacts today.

I will just mention - I mean, [indistinct] and with this personal aspect that I was also very proud to be member of the Canberra Commission on total elimination of nuclear weapons when I was no longer Foreign Minister so I actually - the invitation then by Gareth Evans was especially appreciated and I still think it's a landmark document if we want to deal with the important issue of nuclear non-proliferation and disarmament. So I am very much encouraged by the Government of Australia to push forward with this line.

I would say that Brazil and Australia, as was mentioned before, are countries that have many things in common. I mean we are among the five or six biggest countries in the world actually. Probably - certainly in territory the two biggest in the Southern Hemisphere.

We have a strong participation in the multilateral system but it is participation that is also based on a very strong regional integration and I think this fact that we have pivotal roles, so to say, in our respective regions is a further reason for us to enhance our relations and with this positive, very positive disposition which exists now, on both parts I think it is time that we should discuss what we decided to call an enhanced partnership.

Of course, it will be for our - for the Prime Minister and the President Lula to decide exactly how they want to proceed on that but we will have to work on these areas that were mentioned by my colleague.

I would like also to say that our relations are growing fast. They are much more modest than they should be in terms of trade but I am glad to see that investment is growing very much and it is on both sides. Until recently when we dealt with a developed country like Australia it would always be an investment of this development country in Brazil and now we are glad to see that it goes two ways. We have important investment now in Australia also in the area of mining, also in the area of meat packing.

So there is room for important and very concrete cooperation. But, of course, even if in a way governments were out-paced by business people and by people-to-people contact I think it is important to give a general direction without in any way interfering with the spontaneity but just to give it more impulse and that's what we decided to do.

I was glad also that we could discuss cooperation with our - our individual cooperation with other countries, most specially Timor-Leste which is of course of great interest to Brazil. You know one of the official languages in Timor-Leste is Portuguese. I myself have been twice in Timor-Leste in the space of six or seven months.

We appreciate very much the work being done by Australia in terms of law and order. Also with the support of the UN which of course is essential. But also the work that both our countries can do in terms of helping to build the state and government institutions in Timor-Leste.

So we discussed the possibilities of cooperation either bilaterally or trilaterally involving many things. I mean they are already mentioned but I would single out one that of course is of great interest for Brazil which is biofuels. I mean Brazil is the country that has had the most experience in the area of ethanol. Ninety per cent of our new cars are run both on gasoline and ethanol and we will be hosting an important conference in November on biofuels and of course we would be very glad to have Australian participation. We know already that we will have an important participation by Australia.

Well, I think this is basically what I would like to say. I wish to thank you once again for the excellent hospitality. The interesting discussions I had today and yesterday and of course the prospective meeting that I will have with the Prime Minister.

SMITH: Well, thank you very much, Minister.

We are happy to do our best to respond to your questions.

QUESTION: Mr Amorim, [indistinct] from Associated Press. With the US cotton subsidies what sort of punitive sanctions will Brazil be pursuing for that and can you quantify how much they will be worth?

AMORIM: Well, we are still in the process of making our precise calculations to ask the arbitration panel. We have already communicated officially to the WTO in order to have this arbitration panel convened. But the precise numbers I will leave to when it's there. But it's certainly very high because the harm that the subsidies caused is very big.

Of course, we were hoping that in the discussions in Geneva last July we would be able also to discuss cotton. Not so much because of Brazil because we in a way have already this case pending and we will be pursuing it. But of course cotton is very important for very small and poor African countries and it would be a pity if we don't use this occasion to eliminate or at least substantially reduce the subsidies which cause really a great damage for countries like Burkina Faso, Mali and so on.

QUESTION: It has been calculated $4 billion.

AMORIM: Well, you know there have been calculations that were initial proposals in this regard but we haven't put our formal proposal yet so I would wait. But it's something certainly in the area of billions. I don't know how many billions precisely.

SMITH: I might try and Chair this. Mr Kerin from The Financial Review.

QUESTION: Mr Amorim, if I can just ask you about the WTO round negotiations. Who do you hold responsible for the current failure to get anywhere and can you see a way forward?

AMORIM: Well, I don't think there is any use in going to any kind of blame game. There is certainly one positive thing that emerged from the Geneva talks is that we didn't engage, contrary to what happened in the past, in the blame game. I think it was a collective failure and of course maybe some might think that others were more inflexible but I think it was a collective failure.

But what I see positive from the context that we have had, and mind you I think President Lula was probably the first leader to get in touch with other leaders in relation to the possibility of still giving a try. I'm, how should I say? I'm still hopeful that we can make an effort but it has to be very fast. You know, I think based on past experience, there are two possibilities. Either we do it now and when I say now it's really now, it's September and of course details can be worked out later. But the basic things in September, the [indistinct], as they call, or we will have to wait for a long time.

SMITH: Ross?

QUESTION: Mr Smith, a question for you. What feedback are you getting on the search for Nigel Brennan?

SMITH: Well, as I said yesterday, I am not proposing to add to those remarks. It is a very difficult situation. We are applying all of the resources that we can to endeavour to alleviate what's a terrible situation, both for Mr Brennan himself and for his family. We are rendering consular assistance to his family and we are exploring every option to seek the return of Mr Brennan. It is difficult, terrible and tragic circumstances and other than making in general terms the same remarks I made yesterday. I don't think it's helpful to go beyond that.

QUESTION: Mr Smith and Mr Amorim your response - I'm [indistinct] from The Australian newspaper, your responses to Russian recognition of South Ossetia and Abkhazia?

SMITH: Well, I'll happily take that one first. Can I say that I regret that very much. I don't think it's a helpful contribution. Australia respects the territorial integrity of Georgia and our ongoing position is that we believe that Russia should abide by the ceasefire arrangements effected through the European Union and President Sarkozy, and return its forces to the positions they occupied on 6 and 7 August.

The declaration overnight by Russian President Medvedev, I don't believe is a helpful contribution. Indeed some may regard that as provocative. I don't think it helps circumstances in Georgia and I don't think it helps relationships generally between Russia and the rest of the world.

These general points we've made to the Russian Government through our officials, both in Canberra and in Moscow, and yesterday and today I agreed that in the next couple of days I would meet with the Russian Ambassador to enable me to make these points to him personally in Canberra.

AMORIM: Well, I could just say that when the ceasefire was declared we supported the efforts of President Sarkozy, and we encouraged the two parties, I mean Georgia and Russia, for a dialogue on the basis of the United Nations principles and everyone knows which these principles are. Of course we are still analysing the full purport of this last development - latest development.

QUESTION: James Gribble from Reuters. Both Australia and Brazil are members of Nuclear Suppliers Group which is inconclusive last week with it speaking about the India-US agreement. Did you discuss that today and what is your view on whether or not that agreement should get the tick from the Nuclear Suppliers Group?

SMITH: It wasn't one of the matters that we discussed today. The Australian position remains as I've previously stated it, which is the Australian Government instructed our officials to go the NSG with a positive and constructive approach which we did.

The meeting of the NSG on Friday and Saturday of last week was effectively adjourned for a couple of weeks. A range of suggested amendments were made. Those amendments are currently being considered by both the United States and the Indian Governments and the NSG will reconvene in a week or so's time.

But Australia's approach is as it was for the meeting of the Board of Directors of the IAEA which is we take a positive and constructive approach, understanding as we do the non proliferation implications of the proposed arrangement and also understanding the deep strategic significance that both United States and India place on the arrangement. So our officials will return to the next meeting of the NSG when the responses of the United States and Indian governments to the suggested amendments were made will be indicated and considered.

Sorry, did you want to respond?

AMORIM: Well, by and large would say I agree with that approach and Brazil has supported the agreement in a meeting of the atomic agency in Vienna and we do support the accession of India - the participation of India in the NSG.

QUESTION: [Indistinct] from Channel Seven. I'm sorry I wasn't privy to your comments yesterday on the Nigel Brennan issue but can I ask what information do we know about who was responsible for the demands that are being made? Is there anything new come through?

SMITH: Well, as I said it's a difficult circumstance. We're providing all of the consular assistance we can to his family. We're also in conversations with other nation states and agencies, UN agencies, doing our best to render as much assistance as we to resolve a very difficult and dangerous situation and it's not helpful for me to go into any more detail than that.

There's one up the back.

QUESTION: Naomi Woodley. Mr Smith, I'm just seeking your response to Anwar Ibrahim's success in the by-election in Malaysia?

SMITH: Well, it's part of the Malaysian democratic process. We obviously support the democratic process in Malaysia. Mr Ibrahim of course is the subject of criminal charges and we simply expect that those criminal charges will be dealt with in an open and transparent way consistent with the rule of law and consistent with proper and fair judicial and legal processes.

QUESTION: Do you think he should be sworn into Parliament as soon as possible [indistinct]?

SMITH: Well, that's a matter for the Malaysian parliamentary processes. We welcome the fact that Malaysia goes through parliamentary and democratic procedures. We also welcome the fact and expect that any Malaysian, whether it's Mr Ibrahim or anyone else who is the subject of criminal charges, gets a trial which is fair and open and transparent and consistent with Malaysia's rule of law.

Brendan?

QUESTION: Brendan Nicholson of The Age. At what stage is your consideration at on reversing possibly the ban - the Howard Government's ban - on aid money being used for abortions?

SMITH: Well, it's a matter that I and the Government have under consideration. I've received the report from the Caucus subcommittee which was examining the matter. I'm still engaged in consultation processes with other interested parties and the matter remains under review by the Government.

There's one up the back.

QUESTION: Jonathan Pearlman from The Sydney Morning Herald. Just following up your comments on Russia, have you or the Government been in contact with any other foreign government about the position [indistinct] Russia?

SMITH: Well, other than it being part of the general conversation that Minister Amorim and I had this morning when we went through the array of international issues, it's not something that I have raised with any of my Foreign Ministerial colleagues. But the view of the Australian Government is well known and that's been indicated to, not just the Government of Russia, but to other Governments through our officials both here and in posts overseas.

As I said earlier, in terms of the declaration overnight by Russian President Medvedev, we don't support or agree with the Russian declaration. We respect the territorial sovereignty of Georgia. We don't think this is a helpful contribution to events, either in Georgia or more generally. Indeed some might see it as being a provocative act and these points, as I've indicated, I propose to make to the Russian Ambassador in the next 24 hours.

QUESTION: Will that meeting take place at parliament?

SMITH: It will take place within the next 24 hours, today or tomorrow at a time of mutual convenience, at a location of mutual convenience. In the normal of course of events that would be at Parliament House. But I've indicated to the Russian Ambassador I'm happy to meet with him. These issues will obviously be raised and the views that I've expressed previously, both privately and publicly, I'll make to him.

QUESTION: Does this constitute a protest?

SMITH: No, no it's just the meeting between me and the Russian Ambassador was at his request so I'm happy to have it and the views that I've indicated previously, both publicly an privately, I'll repeat to him. But it's a meeting which is one of mutual request and it will be done in a way that's mutually convenient.

There's one up the back again, sorry.

QUESTION: Could I ask both of you your views of the latest developments in the Zimbabwe Parliament and also Robert Mugabe's address to Parliament?

SMITH: Well, I saw the reports of Mr Mugabe's address to the Parliament. I think this is frankly an open challenge to him. Mr Mugabe has no democratic or Parliamentary legitimacy. And I frankly think that Mr Mugabe might take the hint. The best thing Mr Mugabe could do, would be to walk out of the Parliament and walk off the stage.

We believe that Mr Mugabe has no democratic or Parliamentary legitimacy. He, as you know from the composition of the Zimbabwean Parliament and the election of the new Zimbabwe Speaker, was trounced in the first Parliamentary elections and that was despite his best efforts to rort the count and his best efforts to intimidate, harass and oppress the people of Zimbabwe. He should take the hint and walk off the stage.

AMORIM: Well we, of course - Brazil was just as an aside, I should say we have a strong African policy. We have embassies in more than 30 countries in Africa, including in Zimbabwe itself. In situations like that, especially in a moment in which most African countries and specially the countries in the sub-region are democratic countries, or becoming more and more so, we tend to rely a lot on what the leaders in the region can obtain. In that respect of course we supported the efforts by the South African President in particular and actually I must say was rather encouraged by the idea of power sharing that was discussed.

As you might know, Brazil had observers in the first round of the Presidential and Legislative election. We didn't stay until the second round of course because the Opposition candidate had to give up because of the circumstances that are well known. But we still hope that within an African context you can come to a conclusion that will of course respect the will of the people, is democratic and still ensures transition to a system or to a situation that is set in which the people who voted for Mr Tsvangirai also will have their voice heard.

SMITH: Okay, everyone happy? Well, Minister, thank you.

AMORIM: Thank you very much.

SMITH: Thank you very much. Ladies and gentleman, thank you.

[Ends]

Media Inquiries: Foreign Minister's office (02) 6277 7500