Defence tensions simmer

By FRAN O'SULLIVAN and RUTH BERRY


Australian Foreign Minister Alexander Downer yesterday described transtasman relations as "very strong" - but tensions over defence were not far from the surface.

Mr Downer met Foreign Affairs Minister Phil Goff in Marlborough over the weekend for their six-monthly catch-up.

The pair discussed Australian negotiations over a free trade deal with the United States, the establishment of a transtasman leadership forum and regional and international security and stability issues.

Mr Downer described the talks as "very successful" and praised New Zealand's work in the Solomons and its defence contributions in Afghanistan and Iraq.

He said there had been little talk between the pair about the US "Star Wars" missile defence programme, which Australia signed up to last week. New Zealand is opposed to it - another strategic defence issue on which there are fundamental differences.

While the subject may have been a no-go zone for the meeting, both ministers asserted their own differing views to reporters afterwards.

Mr Goff said: "Making the world safe from nuclear weaponry is best achieved by eliminating nuclear weaponry, not by devising new technological means to intercept it."

Mr Downer went further, appearing to suggest New Zealand's position could put its own troops at risk.

"I would imagine if a nuclear missile were fired at a New Zealand ship in an environment of conflict then I imagine it would make good sense for that ship to use an anti-missile system and shoot down that missile rather than the crew all die," he said.

"I think I'd be in favour of the New Zealand ship having that option."

Mr Downer said the Australians would meet the Americans for final talks over the free trade deal next month and he was "cautiously optimistic" a final agreement would be reached.

Australia was not lobbying for a similar deal for New Zealand, but did "put in a good word", he said.

The other major issue for the ministers was the launch of an Australian New Zealand leadership forum.

The first forum - which will bring together 60 opinion formers from the two nations - will be held in Auckland next May.



Businessman Kerry McDonald, a longtime CEO for Comalco New Zealand who now chairs Bank of New Zealand, will lead the New Zealand side. Qantas chairwoman Margaret Jackson will head the Australian side.

The forum will cover issues ranging from economic linkages to Australasia's position in the region.

While the forum will inevitably result in moves to strengthen the ties formed under the closer economic relationship, political union has been ruled out.

Mr Downer said political union had been "passed now".

"I don't think in the end New Zealanders want anything but to maintain their own separate independent identity," he said.

"The danger is taking each other too much for granted."

The most significant perspective is a broader commitment from Australia to ensure both countries pursue a common interest.

A key ambition for both countries is to cement a free trade agreement with the rapidly growing Southeast Asian (Asean) bloc of nations. Attempts to forge an AFTA-CER deal have so far foundered. But the two ministers see scope for Australia and New Zealand to "present themselves as one voice" in this relationship.

Mr McDonald said last night that the two nations had strong business and cultural ties. But he pointed to recent difficulties at political level - predominantly around defence.

Ensuring greater commonality of purpose would be a challenge.

In February, themes for the first forum would be isolated.

Topics suggested so far include common currency and taxation.

Getting a free trade deal with the United States is another matter.

Although talks between Australia and the US on their bilateral deal have been delayed until next month, Mr Downer remained confident: "If Australia's negotiations turn out successfully, then that probably augurs well for New Zealand."

Two views

* "Making the world safe from nuclear weaponry is best achieved by eliminating nuclear weaponry." - NZ Foreign Minister Phil Goff

* "If a nuclear missile were fired at a New Zealand ship ... I imagine it would make good sense for that ship to use an anti-missile system and shoot down that missile." - Australian Foreign Minister Alexander Downer