INTRODUCTION

1. The Australian Minister for Foreign Affairs, Alexander Downer, and
the Minister for Defence, Peter Reith, the United States Secretary of State,
Colin Powell, and Secretary of Defense, Donald Rumsfeld, met in Canberra on
30 July 2001 to advance further the Australia-United States alliance relationship,
and to discuss regional and global issues.

FIFTIETH ANNIVERSARY OF THE ANZUS TREATY

2. Australia and the United States warmly welcomed the fiftieth anniversary
of the signing of the ANZUS Treaty. They agreed that the Treaty had
made a highly significant and historic contribution to the fabric of peace
in the Asia-Pacific region. The Treaty had provided a fundamental framework
for the development of a remarkably close and productive relationship at all
levels between the two countries and peoples, reflecting deeply shared values
and interests.

3. Australia and the United States underlined the enduring relevance
and vitality of the alliance as the cornerstone for the full range of cooperative
activities undertaken by Australia and the United States in the Asia-Pacific
region and beyond. Both governments agreed that the shared values and
interests embodied in the ANZUS Treaty and the 1996 Sydney Statement should
continue to underpin the Australia-United States partnership.

REGIONAL CHALLENGES AND OPPORTUNITIES

4. Australia welcomed the strong emphasis placed by the United States
on the contribution of bilateral alliance relationships to the maintenance
of regional security and stability. The United States congratulated
Australia on the quality and range of its extensive engagement in the Asia
Pacific. The two governments agreed that stable relationships among
the major powers of the region, the spread of political and economic freedom,
and the growth of democratic institutions, remained fundamental to advancing
their national interests and values in the Asia Pacific.

5. Australia and the United States underscored the importance of Indonesia
to the stability, security and prosperity of South East Asia, and reaffirmed
their commitment to work with Indonesia for productive, mutually beneficial
relationships. Australia and the United States reaffirmed their support
for Indonesia's territorial integrity and for a peaceful solution to regional
grievances, including the current special autonomy negotiations for Aceh and
Irian Jaya. The two governments expressed their common resolve to continue
to help Indonesia overcome its economic difficulties, including through assistance
to strengthen governance and enhance social welfare.

6. Australia and the United States emphasised the importance of continued
international support and assistance, including through the United Nations,
to ensure a successful transition in East Timor. The two governments
reaffirmed their strong commitment to sustain close Australia-United States
cooperation in East Timor, particularly through the post-independence phase.

7. Australia congratulated the United States and Japan on the fiftieth
anniversary of the United States-Japan security alliance, and welcomed the
30 June 2001 Joint Statement by President Bush and Prime Minister Koizumi
as a further strengthening of the vitally important U.S.-Japan partnership.
Both governments welcomed the Japanese Government's recently announced plan
for economic, fiscal and structural reform, and agreed that continued implementation
of policies to advance economic growth in Japan would have significant benefits,
both economic and strategic, for the Asia Pacific.

8. Australia and the United States emphasised the importance of encouraging
China's constructive role as a full member of the international community,
and welcomed the prospect of China's early accession to the World Trade Organisation
(WTO) under appropriate terms. Australia and the United States agreed
to encourage both China and Taiwan to resolve their differences through a
resumption of peaceful dialogue, and stated their firm belief that disputes
should be settled without resort to any military force.

9. Australia and the United States underlined the importance of continuing
international efforts to bring lasting peace and security to the Korean peninsula.
The United States welcomed the restoration of diplomatic relations between
Australia and the DPRK, and Australia welcomed the decision of the United
States to re-commence dialogue with the DPRK, as important steps in encouraging
greater DPRK engagement with the international community. Both governments
called on the DPRK to continue high-level engagement with the Republic of
Korea, and to take further steps to allay security concerns on the peninsula
and in the region, particularly in regard to weapons of mass destruction and
their means of delivery. Australia and the United States underscored
the importance of full and timely implementation of the U.S.-DPRK Agreed Framework.

10. The two sides agreed on the importance of the ASEAN Regional Forum
(ARF) in promoting and enhancing security dialogue in the Asia Pacific.
Both governments welcomed the consolidation of the ARF's confidence-building
work and expressed the hope that the Forum would continue to develop a preventive
diplomacy capability.

11. The two governments affirmed their strong support for the commitment
to democracy and good governance made by countries of the Pacific Islands
Forum in October 2000 in the Biketawa Declaration. The United States
welcomed Australia's efforts in promoting peace and disarmament in Bougainville
and the Solomon Islands. Both governments expressed hope that the Fijian
elections in August would lead to the restoration of constitutional democracy.

DEFENCE RELATIONS

12. The United States welcomed the re-commitment to a robust strategic
and defence posture and the funding commitment to the capabilities outlined
in Australia's Defence White Paper. Australia welcomed the progress
report by Secretary Rumsfeld on the United States' strategic and military
reviews. Both sides noted that the changing strategic environment and
the ongoing transformation of military technologies have implications for
the alliance partnership, and reaffirmed the role of the alliance in this
environment.

13. The two governments agreed that the enduring value of the defence
relationship is based on a solid foundation of practical cooperation, and
noted the coalition peace operation in East Timor as an example of where this
cooperation continues to be particularly useful. Both sides noted the
key role of U.S. regional engagement in maintaining security and stability
in the Asia Pacific, and the contribution of the alliance to regional security.

14. Australia and the United States acknowledged the ongoing importance
of intelligence cooperation and its contribution to the national interests
of both countries. The two sides also agreed that interoperability remained
a high priority, particularly in coalition peace and security operations.
To this end, the principals commissioned a top-down review of interoperability,
to be presented to the 2002 AUSMIN meeting.

15. Australia and the United States noted the ongoing importance of
materiel cooperation, not only to interoperability, but also to capability
development, technology transfer and through-life support of defence capabilities.
Australia acknowledged the criticality of access to U.S. technology.
The United States noted Australia's initiatives to incorporate a whole-of-life'
approach to capability development. Both countries undertook to examine
how materiel cooperation could be developed further.

16. The continuing development of cooperative arrangements to enhance
the submarine capability of both countries, including the development of the
Collins Class submarines, was welcomed by the two governments. The progress
of a Navy-to-Navy Statement of Principles in matters relating to submarines,
to be formalised next month, was noted and endorsed.

17. Australia and the United States reaffirmed the value of the AUSMIN
Defence Acquisition Committee (ADAC) as the senior bilateral forum for cooperation
on activities related to the acquisition, logistics and follow-on support
of defence equipment. An initiative agreed at the 1999 ADAC meeting
was completed today when Australia passed the Note in Reply' to the United
States to finalise the Exchange of Notes on the ten-year extension of the
Australia-United States Cooperative Defence Logistics Support Agreement.

18. In the spirit of further enhancing defence cooperation, both sides
emphasised their respective commitments to a binding bilateral export control
agreement that would furnish Australia withan exemption from most U.S. munitions
licensing requirements of the International Traffic in Arms Regulations.

THE NEW GLOBAL SECURITY ENVIRONMENT

19. Australia and the United States expressed shared concern about
the threat to global strategic stability posed by the proliferation of ballistic
missiles and weapons of mass destruction and the need to deter these threats
with a strategy that encompasses both offensive and defensive systems, continued
nuclear arms reductions, and strengthened WMD and missile proliferation controls
and counter-proliferation measures. They reaffirmed their commitment
to cooperate closely in international missile non-proliferation efforts.
Australia expressed its understanding of U.S. interest in developing missile
defence and Australia and the United States agreed on the importance of continued
and close U.S. consultations with allies and other interested parties, particularly
Russia and China, as its plans developed. The United States expressed,
and Australia welcomed, its intention to reach an understanding with Russia
on a broader strategic framework, including moving beyond the Anti-Ballistic
Missile Treaty, and wider cooperation between Russia and the United States
to address problems of proliferation and to enhance strategic stability.

20. Australia and the United States agreed that the Nuclear Non-Proliferation
Treaty (NPT) continues to deliver significant security benefits to all nations.
Both governments reaffirmed their determination to contribute to the implementation
of the conclusions of the 2000 NPT Review Conference.

21. Australia reaffirmed its view that early entry into force of the
Comprehensive Nuclear-Test-Ban Treaty (CTBT) would strengthen the global nuclear
non-proliferation regime. Australia also welcomed the second CTBT Article
XIV Conference to be held in New York in September to facilitate early entry
into force of the Treaty. The United States advised Australia that it
would maintain its moratorium on nuclear testing. Australia called on
states that have not done so to sign the CTBT, and on signatories to ratify
the Treaty promptly. The United States and Australia called on all states
to refrain from conducting nuclear explosive tests. The United States
and Australia agreed that, so long as the CTBT has not entered into force,
existing moratoriums on nuclear testing should be maintained.

22. The two governments expressed disappointment that the continuing
deadlock in the Conference on Disarmament (CD) is preventing a start on negotiation
of a Fissile Material Cut-off Treaty (FMCT) to end the production of fissile
material for nuclear weapons. They urged all CD members to start FMCT
negotiations without further delay.

23. Australia and the United States welcomed efforts to strengthen
the effectiveness and improve the efficiency of International Atomic Energy
Agency (IAEA) safeguards and urged states yet to conclude an IAEA Additional
Protocol to do so as quickly as possible.

24. Both governments underlined the threat to global security posed
by the development and spread of biological and chemical weapons. While
noting their differences concerning the negotiations for a protocol to strengthen
the Biological Weapons Convention (BWC), both sides reiterated their commitment
to the BWC and undertook to explore all effective options for preventing the
proliferation of these heinous weapons. In reviewing progress in the
field of chemical disarmament,the two governments expressed concern over the
impact of problems within the Organisation for the Prohibition of Chemical
Weapons (OPCW) on its capacity to undertake its core non-proliferation activities.
They agreed to continue to work together closely to improve the efficiency
and effectiveness of the OPCW.

25. Australia and the United States welcomed the Indian and Pakistani
moratoriums on further nuclear testing, and encouraged India and Pakistan
to take steps to become part of the international nuclear non-proliferation
regime.

TRADE

26. Australia and the United States underlined the positive contribution
that open trade and investment make to employment and growth in the global
economy. They called for the launch of a new round of multilateral trade
negotiations and agreed to continue to cooperate closely toward this end at
the WTO Ministerial Conference in Doha, Qatar, in November 2001. The
two sides agreed on the utility of settling bilateral differences in accordance
with WTO rules.

27. Both governments welcomed the impetus provided by the recent APEC
Trade Ministers meeting for the launch of a new WTO round in 2001. Both
sides reaffirmed their desire to ensure that the Shanghai Leaders meeting
developed a comprehensive and vigorous forward agenda for APEC.

28. Australia and the United States,as already open and dynamic economies,
reaffirmed their commitment to expanding their economicrelationship, including
by reducing and eliminating barriers to trade, and to working closely together
to address bilateral trade issues. They discussed Australia's proposal
for a bilateral free trade agreement. They agreed to work together closely
to explore avenues to advance their common free trade goals.

CONCLUSION

29. Both sides affirmed the enduring value of the annual Australia-United
States Ministerial Consultations as the peak consultative body of the alliance
partners. Australia accepted the U.S. offer to host the next round in
the United States in 2002.

AUSMIN Index