U/S BURNS' 12/5 MEETINGS WITH AUSTRALIAN DPM

C O N F I D E N T I A L CANBERRA 001745

SIPDIS


NOFORN
SIPDIS

E.O. 12958: DECL: 12/12/2017
TAGS: AS CH ID IN IR IZ JA MNUC PREL PTER
SUBJECT: U/S BURNS' 12/5 MEETINGS WITH AUSTRALIAN DPM
GILLARD, FM SMITH, AG MIN BURKE

Classified By: AMBASSADOR ROBERT MCCALLUM. REASON 1.4 (D)


1. (C/NF) Summary: During wide-ranging conversations
December 5 with newly appointed Australian Deputy Prime
Minister Julia Gillard, Foreign Minister Stephen Smith, and
Agriculture Minister Tony Burke, Under Secretary Nicholas
Burns emphasized the importance Washington placed on a
continued close relationship with Australia under the new PM
Rudd-led government. The U.S. had no better friend in the
world than Australia; it was normal for friends and allies to
have occasional policy differences. He stressed the need for
a third UN Security Council resolution to counteract Iran,s
continued efforts to enrich uranium and to develop ballistic
missile technology. He said that the U.S. respected the new
government's decision to withdraw its combat troops from
Iraq, but we would want Australia to stay involved to help
the Iraqi government. The new Defense Minister would need to
discuss the details of the troop issue with DoD. U/S Burns
noted that there are other roles the Australians could play
in that country, even while we agreed on the need to do more
in Afghanistan. He noted that there was much both can do
together in the future to address the climate change
challenge, despite differences in the two government's
approaches. He stressed that the India-U.S. Civil Nuclear
Agreement was very important to the U.S. and that we hoped
Australia would join in the consensus at the Nuclear
Suppliers Group (NSG) to allow India to purchase equipment
and fuel for its civilian nuclear reactors. On engaging
China, U/S Burns said that China had been very helpful in the
Six Party process, less helpful in cases such as Sudan and
Burma, mixed on Iran. On Burma, U/S Burns expressed
frustration with international efforts so far to force the
Burmese generals to begin a real dialogue with Aung San Suu
Kyi. He told Smith that the Secretary was looking forward to
coming to Australia for the annual AUSMIN talks in early 2008.


2. (C/NF) Summary continued: Gillard and Smith replied
that their government was resolved to maintain the Alliance
as a centerpiece of its foreign policy. Despite differences
in global climate change policies between the U.S. and the
new Australian government, they were optimistic that they
could cooperate in post-Kyoto efforts. On Iraq, Gillard
emphasized that Australia would leave a security element at
its embassy in Baghdad as well as a naval element in the
Persian Gulf and would be willing to provide aid and training
to build a civil society. Smith added that the Australian
withdrawal from Iraq should be done in a careful and
cooperative manner, to avoid any misperceptions. Gillard
noted that on the issue of Iran, Australia's ultimate
priority would be Israel's security. Smith reiterated his
Qpriority would be Israel's security. Smith reiterated his
government's refusal to sell uranium to India until it signs
the NPT but was noncommittal on whether the GOA would block
consensus in the NSG. Gillard said that PM Rudd wanted to
offer his perspective and help on dealing with China. Smith
expressed his eagerness to meet with the Secretary in
Washington in the near future. End summary.

MAINTAINING THE ALLIANCE


3. (C/NF) Under Secretary of State Nicholas Burns met
newly-appointed Deputy Prime Minister Julia Gillard, Foreign
Minister Stephen Smith, and Agriculture Minister Tony Burke
at breakfast on December 5. U/S Burns and FM Smith continued
the discussion afterwards at the Foreign Minister's office.
U/S Burns congratulated Gillard and Smith on their party,s
hard fought victory. He said that Washington looked forward
to continuing the close relationship with Australia. Gillard
responded that her government was firmly committed to the
Alliance. Smith added that the Australian public understood
that the United States "saved" the country in World War Two


and that the Alliance was integral to Australia's security.

IRAN


4. (C) U/S Burns detailed the latest developments on Iran,
including the recently-released unclassified NIE, which he
described as including some good news showing Iran had
stopped its nuclear weapons program in 2003 and that Iran was
thus susceptible to international pressure and sanctions.
That said, Iran continued to enrich uranium through its 3,000
centrifuges at Natanz and to develop ballistic missile
technology, demonstrating the need to increase pressure on
Iran through a third UN Security Council resolution. Gillard
emphasized that Australia was committed to the security of
Israel and opposed to any threat to it from a nuclear-armed
Iran. Smith agreed to the need for continued pressure from
the U.N. and other arenas on Iran to negotiate. He voiced
concern that China and Russia would cite the NIE as a reason
to back away from further sanctions.

IRAQ


5. (C/NF) Regarding Prime Minister Rudd's announcement that
he intended to withdraw Australia's 550 combat troops from
Iraq, U/S Burns said that the U.S. respected the decision,
was grateful for the Australian contribution, but stressed
that there were other roles the Australians could and should
play in Iraq. Australia's assistance in building a civil
society and continued training of the Iraqi military would be
greatly appreciated.


6. (C) Gillard replied that though Australia would withdraw
its battle group after one more rotation, the GOA would leave
a security element at its embassy in Baghdad as well as a
naval element in the Persian Gulf and would be willing to
provide aid and training to build a stronger government and
civil society in Iraq. Australia will continue to play a
role in non-combatant areas, Gillard said. Smith assured U/S
Burns that the withdrawal of Australian combat troops
from Iraq will be done in "a careful and cooperative"
process.

AFGHANISTAN


7. (C/NF) U/S Burns said that Afghanistan remained
worrying, given the increase in the volume of Taliban
attacks, the role of narco-trade in the country's economy,
the need to rebuild civil society, with better coordination
of international civilian efforts through appointment of a
senior envoy. U/S Burns added that the U.S. was pushing
President Musharraf to do more on the border with
Afghanistan, from where Taliban and Al Qaeda mount attacks on
U.S., Australian and other nations' troops in Afghanistan.


8. (C) Gillard replied that Australia was "resolved" to
continue its mission in Afghanistan. She noted that
Australia faced some "bad luck" recently, with three soldiers
dying in combat over recent weeks. PM Rudd understood the
very complex nature of the situation there, including the
serious lack of government structure. FM Smith shared the
Qserious lack of government structure. FM Smith shared the
concern over Pakistan's inability to control the tribal areas
adjoining its borders with Afghanistan, agreed the military
effort would be long-term, and also said that the
international counter-narcotics effort in Afghanistan to date
was "not enough."

CLIMATE CHANGE


9. (C/NF) U/S Burns noted differences in the two
government's approaches to addressing climate change. There
was growing environmental awareness among the American
public, as well as significant public and private investment
into new energy technologies such as hydrogen generation and
clean burning coal. The President hosted a meeting of the
major economies last September. Both this and the next
administration would focus on post-Kyoto frameworks; the U.S.
delegation would engage the Australians at the December Bali
meetings and looked forward to ensuring countries such as
China and India were included in the post-Kyoto framework.


10. (C) Gillard acknowledged "obvious differences" in the two
countries' approaches to climate change but added that she
had been encouraged by the spirit of innovation to address
this issue she observed in a recent visit to the United
States. The two countries should engage and cooperate in
finding solutions on climate change.

ENGAGING CHINA


11. (CN/F) U/S Burns said the U.S. sought to engage China
as a responsible stakeholder but noted the results varied to
date. China had been very helpful in dealing with North
Korea in the Six Party process, was not doing all it could on
Sudan or Burma, and had a mixed record on Iran. U/S Burns
said China had taken a mercantilistic rather than strategic
approach to Iran prior to adopting a more helpful position
December 1, when MFA Political Director He Yafei had been
much more forthcoming in discussions on possible elements of
a new sanctions resolution. DPM Gillard noted that PM Rudd,
who had served as a diplomat in China and was a fluent
Mandarin speaker, wanted to offer his advice and perspectives
to the U.S. in its relationship with China.


12. (C) U/S Burns noted that the U.S. was not overly
enthusiastic about the quadrilateral talks pushed by former
Japanese Prime Minister Abe. FM Smith agreed, noting that
the U.S., Japan and Australia must be careful not to make
China feel isolated, even as China's inexorable rise had made
Japan nervous. Smith suggested instead that there would be
merit in a forum with five nations, including China along
with India, Japan, Australia, and the U.S. Australia enjoyed
very good relations with all these countries. The U.S is
Australia's most important ally. Besides the burgeoning
economic relationship, China held a special regard for
Australia and the Labor government since former PM Gough
Whitlam recognized the PRC in the 1970s. Japan was a very
important trading partner and investor. Indian trade and
relations were expanding rapidly.


INDIA AND NUCLEAR ISSUES


13. (C/NF) U/S Burns described the fast developing
relationship between India and the United States. While the
U.S. considered the Rudd government's policy not to sell
uranium to India as Australia's sovereign decision, not an
issue for the U.S., he stressed that the India-U.S. Civil
Qissue for the U.S., he stressed that the India-U.S. Civil
Nuclear Agreement, in contrast was very important. The U.S.
hoped Australia would join in the consensus at the Nuclear
Suppliers Group (NSG) early in 2008 to allow India to
purchase equipment and fuel for its civilian nuclear
reactors. This was a high U.S. priority.


14. (C/NF) FM Smith reiterated that Australia would not
consider selling uranium to India unless it signed the NPT -
something India has been unwilling to do. On the NSG
question, he acknowledged the importance the U.S. placed on
the agreement. Smith did not provide a direct answer, as the
new government would need to review the matter. He promised
to keep in close and frequent touch, commenting that the NSG
question could "potentially be more contentious than the Iraq
issue."

BURMA


15. (C) U/S Burns expressed frustration with international
efforts so far to force the Burmese generals to begin a real
dialogue with Aung San Suu Kyi. ASEAN was divided and
passive. China needed to do more; so far it had not done
enough to use its influence with the regime. U.N. Special
Envoy Gambari was not engaging in the country enough but
traveled around the region talking to other governments.
Gillard and Smith both acknowledged that Burma presented a
frustrating challenge, stressing that the Australian
government and the Australian people were appalled by the
ongoing human rights abuses going on in Burma.

PACIFIC ISLANDS, INDONESIA, AUSMIN


16. (C/NF) In response to U/S Burns praise for Australia's
leading role in the region, Gillard told him that promoting
peace and good governance in the Pacific islands nations was
a high priority in her government's foreign policy. She
noted that the Rudd government has created the post of
Parliamentary Secretary for the Pacific Islands to deal
specifically with the island states issues. Gillard observed
that Australia's economic aid to the island stations had not,
in many cases, accomplished its intent. She said that
another priority in the region would be to support
Indonesia's efforts to deal with Islamic radicalism, a
significant concern for her government.


17. (C/NF) U/S Burns told FM Smith that the Secretary is
looking forward to coming to Australia for the annual AUSMIN
talks. Smith said that he looked forward to his trip to the
U.S early in 2008 and to his discussions
with the Secretary.


18. (U) Under Secretary Burns has cleared this cable.