Australian DFAT Minister For Trade Press Release

MT100

12 July 1995

NORMALISATION OF US - VIETNAM RELATIONS

The Acting Minister for Foreign Affairs and Minister for Trade, Senator Bob McMullan, said today that Australia warmly welcomed President Clinton's announcement that the United States has normalised diplomatic relations with Vietnam.

"Australia has long been of the view that their relationship should be normalised, and has taken every opportunity to encourage both the United States and Vietnam to take the necessary steps," Senator McMullan said.

"We believe that President Clinton's decision marks the beginning of a new phase in US relations with Vietnam and with the region.

"Together with Vietnam's imminent accession to the ASEAN later this month, the re-establishment of full diplomatic ties between the United States and Vietnam should enable each country to pursue more comprehensive engagement in the region's affairs."

Following the end of the Vietnam war, the United States imposed a trade embargo against Vietnam. This embargo was lifted in February 1994 and the two countries established liaison offices in each other's capital in February 1995.

Senator McMullan said normalisation of diplomatic relations offers the best way to achieve the fullest possible accounting of US servicemen still listed as missing in action, and will ultimately be the best way for both countries to put this tragic period of history behind them.

"Australia's view has consistently been that this would be beneficial not only to the United States and Vietnam, but also contribute to the peace, prosperity and stability of the region as a whole. The enhanced opportunities for regional cooperation across political, economic and security areas will serve Australia's interests well.

"Normalisation of diplomatic relations will make it easier for US business to operate in Vietnam and for US and multilateral development assistance to take place, helping accelerate economic and social development in Vietnam.

"Australian business is already very well-established in Vietnam and need not fear any increased competition that might result. Indeed, Australian business stands to benefit from the additional opportunities of a larger and more secure market which will flow from United States investment in Vietnam," Senator McMullan said.

Further information: John Flannery, (06) 277 7420, 018 482 887