Transcript - E&OE
17 July 2009
Interview by Jon Faine, ABC Radio
Subjects: Mr Stern Hu; Australia-China trade.
JON FAINE: Simon Crean, good morning.
SIMON CREAN: Good morning, Jon.
JON FAINE: Were you taken seriously in China when you talked about Stern Hu to Chinese authorities?
SIMON CREAN: I was.
JON FAINE: What's the proof of that?
SIMON CREAN: We've got the message through - and we will continue to pursue it, and most recently, the Foreign Minister did it in Egypt yesterday with Chinese authorities - that we take very seriously the detention of Stern Hu.
It is a consular matter. We have had consular access. We continue to pursue that. No charges have yet been laid, but we have called consistently for greater transparency and greater openness in what it is that is alleged. It's very difficult to deal with the speculation, let alone the circumstances in which Mr Hu is detained.
JON FAINE: Your protestations though are dismissed as just noise by an official representative of the Foreign Ministry. So what impact do you think you're really having?
SIMON CREAN: I don't - they won't dismiss it as just noise. I've seen that...
JON FAINE: Well, they have.
SIMON CREAN: I've seen that report today. The Beijing authorities have to take this seriously. This is an Australian national doing business and if they don't take the concerns of Australian nationals seriously, what sort of a signal does that send to the rest of the world who undertakes business with them? And this is the very point that the US has made overnight.
Again, we will continue to pursue this matter as vigorously as we can, knowing that there is a different legal system in China. But that will not deter us from vigorously pursuing the interests of an Australian citizen, wherever they are.
JON FAINE: You're seeking further trade deals with China. The Chinese undoubtedly will say if you keep annoying us over this one, you can forget any new deals on, for instance, car components which you're pushing hard. So how much - how far will you push it?
SIMON CREAN: We'll continue to push just as strongly as we have to. And they...
JON FAINE: Even if it costs us business?
SIMON CREAN: ...And they haven't said that. It is interesting that the response that came out from the Ministry of Commerce the other day, specifically in the context of this case, said they didn't believe this would impact on our economic interests or in the progression of the Free Trade Agreement.
JON FAINE: Well, they would say that, wouldn't they, Minister?
SIMON CREAN: Jon, which one are you going to believe? The sternness of their statement today that you've just reported to me, or the one they made the other day?
Now, all I'm saying to you is we have to pursue vigorously both aspects: the one that I've just referred to and our economic interests - because our economic interests are tied to China's.
And the other story that's on the front page of the paper today is the continuing strong growth in China. There were many that doubted that they would be able to retain the eight - or achieve the eight per cent growth; they have.
I've been there now for my sixth visit in 15 months; I've seen this massive development. There are huge opportunities for Australia. I've recently returned with Senator Kim Carr, the Minister for Industry and Innovation. There is clearly opportunity for us in the car industry. We have a world-leading car industry; we are skilled; we are adept; but we haven't got the size of market here.
China hasn't got the same level of skills as Australia has; it recognises that; wants to partner with us; and has got the largest market in the world.
JON FAINE: Do we want...
SIMON CREAN: And that's a huge opportunity for Australia.
JON FAINE: Simon Crean, do we want to be so intertwined with a country that treats our protestations so lightly, so slightly, and treats our concerns with contempt?
SIMON CREAN: Jon, we are so intertwined. China will this year probably be our largest trading partner. Our two economies are so interlinked and we are so dependant upon each other. What we have to do is to have confidence in that relationship and know that we can at the same time pursue vigorously the interests of Australian citizens caught up over there and undertake the development, the further development of our economic interests.
I've got no doubt we can manage both, but as the Prime Minister has said, the key concern for us is the safety and wellbeing of Mr Hu Stern.
JON FAINE: How corrupt is business in China?
SIMON CREAN: Well, that's a 'how corrupt is it in Australia', Jon. How corrupt is it in the US? I think that we've seen all sorts of signs of the so-called corruption, but I do not see any point in speculating on the circumstances of this case until we have the facts. And from the beginning, I've consistently called for those facts.
I went over there on a mission for trade. I didn't have to actively pursue the Stern Hu case, but I did, because I think it demonstrates from Australia's perspective the fact that not only do we take it seriously, but we can manage both within our relationship.
I initiated the approach to the Chinese to make the representation...
JON FAINE: But you only spoke to a minor state official, rather than anyone from either Beijing...
SIMON CREAN: I was...
JON FAINE: ... or the central authority or the security organisations...
SIMON CREAN: First of all, I was never going to Beijing on this trip. He was detained in Shanghai and the person I spoke to was third in charge of government, third in charge - forget the newspaper reports because I know how the news just likes to always take the worst possible dimension of these things. Number one and two were not in town, but number one and two I had met just six weeks previously.
Now, I don't think the Australian Government has any difficulty getting access to and talking to authorities on these sensitive issues. And we will continue to do so. But the fact remains that we will also pursue our economic interests because it is in Australia's interests to do so.
JON FAINE: And finally, Simon Crean, Barnaby Joyce, the Leader of the Nationals in the Senate told us earlier in the week that we need to be wary of Chinese investment in Australia, if in fact, China is so determined to pursue only its own interests rather than taking other people's concerns into account as they're showing here. And if they have such disregard for Australian concerns we have to be wary of them investing in particular in Australian infrastructure.
SIMON CREAN: Jon...
JON FAINE: Do you agree?
SIMON CREAN: I remember people making those same statements, wariness, about Japanese investment 30, 40 years ago. Australia's economic future has been and will be dependent on attracting foreign investment. We welcome foreign investment where it is expanding our productive capacity. It's in China's interests to invest in the expansion of Australia's productive capacity, particularly its resources, because there is a global shortage of them.
JON FAINE: Right.
SIMON CREAN: They're complaining about the high prices of iron ore. There's only one way - two ways to deal with that in terms of the market: one, demand drops off because of a global recession; or two, you increase the supply.
Now, China has withstood the global recession, because it's put significant investment into infrastructure; that increases their demand for iron ore. The smart thing for them to do is to continue to develop and invest and expand in increasing the supply of iron ore from Australia, of which we have much.
Now, if investment is going to help us do it, that's the perspective that Australia has to sensibly take; be confidant about our economic future and the opportunities that China presents...
JON FAINE: Yep.
SIMON CREAN: ...not fearful or xenophobic, as some others in our community would assert.
JON FAINE: Thank you for your comments this morning; I'm grateful to you. I look forward to opportunities further down the track.
SIMON CREAN: Okay.
JON FAINE: Thank you. Simon Crean, Australia's Trade Minister in the Rudd Federal Government.
[ENDS]
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