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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.