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KIERAN GILBERT: Acting Foreign Minister and Minister for Trade, Simon Crean, thanks for your time this morning.

SIMON CREAN: Pleasure, Kieran.

KIERAN GILBERT: The Japanese have accused Julia Gillard of aggravating the controversy, the row over whaling in the Southern Ocean. Is this government in Tokyo proving to be more sensitive than its predecessor?

SIMON CREAN: [Laughs] I think they've both been sensitive. I don't think that's changed in terms of the change of government. And it's hardly surprising that given the robustness of the debates that we've had with Japan that this sort of reaction has occurred. The difference on this occasion is that it's been made public.

But we've been having these sorts of exchanges with the previous Japanese government, the current Japanese government at ministerial level over the last two years. That's not surprising at all. We hold different views in relation to whaling and we're seeking to resolve those views through a diplomatic outcome.

KIERAN GILBERT: So you're confirming that these reports in The Australian are correct then?

SIMON CREAN: No, I'm confirming - well, the report in The Australian I think makes one quote from an official, so clearly the reporter Peter Alford has had access to someone over there.

But no, my only point, Kieran, is that the report itself is hardly surprising because in all the exchanges we've had with our Japanese counterparts, the exchange has been robust.

KIERAN GILBERT: Will the sensitivities though that are evident and you say have been ongoing for some time, are they part of the framework, are they considered when you look at the prospect of legal action?

SIMON CREAN: I think the question of legal action is only a position that we have reserved for ourselves if the diplomatic outcome fails. But we are committed to trying to resolve this diplomatically, and we will persist with that.

But this is not just a bilateral exchange. It involves the International Whaling Commission and it involves other countries and we are going through that exercise. And as all these multilateral negotiations demonstrate, they do take time.

KIERAN GILBERT: But you know as the Minister for Trade it's one of the most important trading partners Australia's got. Are you worried about the impact, and is the Government cognisant of that when they look at the possibility of legal action, the impact on the trading relationship?

SIMON CREAN: No, I think that we're not worried about its impact on the economic relationship and I've made this point on previous occasions, as have our Japanese counterparts. They don't see the issues being related to each other.

We understand the importance of strengthening and diversifying the economic relationship, that's a separate agenda from the whaling issue. The agenda in terms of trade and diversification, we share common ground; there's still detail that has to be sorted out. That's always a sticking point, particularly when it comes to agriculture. But we have very different views in relation to whaling.

KIERAN GILBERT: Okay. Another important trading partner, China, and another diplomatic issue and problem on that front. The case of Stern Hu, the Rio Tinto executive who's been detained now for months. Apparently he's going to find out today whether he's going to face trial. There's nothing the Government, that you can do, is there, rather than sit back and hope that he'll finally get a day in court?

SIMON CREAN: Well, we haven't been sitting back, Kieran, and you know that from the previous interviews that we've done. We've been in active engagement and discussion with our Chinese counterparts ever since Mr Stern Hu was arrested. We've had regular con…

KIERAN GILBERT: He's still in detention, as you know and he hasn't faced court yet. So it's not working.

SIMON CREAN: No, he hasn't but that's the consequences of the arrest under the Chinese legal system. There is this provision for extensions. The first extension, or the extension that was sought by the Chinese authorities, expires today. That's why it's an important day. But we need to await the outcome.

Clearly, there can be a further extension but it also is the case that they can decide whether they're going to proceed or drop the charges.

Now, we wait for that system to determine what the next step is. We're not going to advance it by making public calls one way or the other. We certainly continue to make very strong representations privately for this case to be dealt with expeditiously, openly, and due process served.

KIERAN GILBERT: It's limited though, isn't it, as to what the Government can achieve through those processes?

SIMON CREAN: No, I think we have - it's not limited. But I think, you know, again we have to understand that when it comes to consular cases, be they in China or any other country in the world, people detained under the legal systems of other countries have to accept what those legal systems provide for.

We constantly urge people, whether they're travelling or doing business in other countries, to acquaint themselves with it and to not assume that that which would apply in Australia automatically applies in other countries.

We continue to urge other countries to progress these issues expeditiously, but we can't tell them to change their legal systems. We can urge expedition, we can urge transparency, access. All of those important points we continue to do that and we will do so.

KIERAN GILBERT: Simon Crean, just one before I let you go. The State of the States report by CommSec shows that New South Wales is worst of the states in terms of performance. It appears the stimulus has done nothing to improve the ranking of the biggest state.

SIMON CREAN: Well, I think anyone who thinks that the stimulus hasn't done anything in terms of the overall Australian economy is deluding themselves. The stimulus has been an important component, as have the structural reforms and the engagement with Asia that the previous Labor Government commenced over 20 years ago.

As for New South Wales, I see that they are saying that the assessment is out of date; that's for them to argue. But we do understand that there has been a softening in construction in New South Wales which clearly would have an impact on that economy.

KIERAN GILBERT: Simon Crean, Acting Foreign Minister and Minister for Trade, as always, appreciate your time on Sky News. Thank you.

SIMON CREAN: Thanks Kieran.

ENDS

Media inquiries

• Mr Crean’s Office: (02) 6277 7420
• Departmental Media Liason: (02) 6261 1555