VZCZCXRO1283
RR RUEHPT
DE RUEHBY #1054 3310634
ZNY CCCCC ZZH
R 270634Z NOV 09
FM AMEMBASSY CANBERRA
TO RUEHC/SECSTATE WASHDC 2363
INFO RUEHBJ/AMEMBASSY BEIJING 9653
RUEHJA/AMEMBASSY JAKARTA 5565
RUEHKL/AMEMBASSY KUALA LUMPUR 2643
RUEHBN/AMCONSUL MELBOURNE 6804
RUEHPT/AMCONSUL PERTH 5070
RUEHDN/AMCONSUL SYDNEY 5073
RHEHAAA/THE WHITE HOUSE WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC

C O N F I D E N T I A L CANBERRA 001054 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR EAP/ANP, EEB/OMA, NSC FOR JIM LOI 
 
E.O. 12958: DECL: 10/27/2019 
TAGS: EFIN ECON PREL AS
SUBJECT: AMBASSADOR BLEICH MEETS TREASURER SWAN 
 
Classified By: Political-Economic Counselor Edgard Kagan, Reasons 1.4 ( 
b)(d). 
 
¶1. (C) SUMMARY:  Treasurer Wayne Swan welcomed Ambassador 
Bleich during an introductory meeting on November 27 and 
expressed optimism about Australia's economic outlook.  Swan 
was pessimistic about the fate of the emissions bill 
being hotly debated in Parliament, as well as that of 
Opposition leader Turnbull.  He was appreciative of 
Treasury Secretary Geithner's frequent consultations with him 
on many issues, including G20.  Swan explained his 
approach to China, which he described as a "roller coaster" 
relationship, and his intention to engage regionally as 
much as with China.  End Summary. 
 
GFC and Close Coordination with U.S. 
------------------------------------ 
 
¶2. (SBU) Ambassador Bleich met Treasurer Wayne Swan during an 
introductory meeting on November 27.  Swan commented 
that Australia did better than he had expected in surviving 
the GFC.  He was appreciative of the degree of consultation 
and engagement shown by U.S. Treasury Secretary Geithner 
throughout the crisis and on issues like the G20, saying 
"I've talked with my fellow Finance Ministers more than 
members of my own Cabinet in the past six months."  He added 
that Geithner sounded more optimistic about the U.S. economy 
the last time they spoke a few weeks earlier. 
 
China and the Region 
-------------------- 
 
¶3. (C) Swan described the relationship with China as a 
"roller coaster."  He said there have been improvements 
since he opened an investment dialogue last year with China's 
National Development and Reform Commission, but 
that recurring sore points in the relationship require 
constant attention - such as the arrest of Rio Tinto 
executive Stern Hu and China's displeasure over Treasury's 
investment guidelines. 
 
¶4. (C) He explained that central to the guidelines is a 
determination to prevent any consumer from acquiring one of 
Australia's major resource companies and becoming a price 
setter.  Even so, Swan emphasized that out of 110 
applications by Chinese companies since he has been 
Treasurer, only 5 have been denied.  Furthermore, Swan 
recounted how G20 colleagues, who had previously "condemned" 
these guidelines, were now approaching him with 
interest to learn more about and possibly adopt them. 
 
¶5. (C) Saying that "Asia is not China," Swan explained that 
Australia is determined to engage with the region 
holistically, despite the public's "fascination with China." 
He said that APEC's recent gathering 
reinforced the importance of Asian countries other than China 
and he highlighted the great dynamism and potential for 
growth in countries like Indonesia and Malaysia. 
 
Emissions Vote in Jeopardy and Opposition in Disarray 
--------------------------------------------- -------- 
 
¶6. (C) Swan opined to the Ambassador that the long-debated 
Carbon Pollution Reduction Scheme (CPRS) would not pass, 
due to the chaotic infighting taking place within the 
Opposition.  Swan's Chief of Staff Chris Barrett told DCM 
Clune that it was still unclear whether the bill's failure 
would trigger a double dissolution election. 
 
¶7. (C) With regard to Opposition leader Turnbull, Swan said 
it "is almost inevitable now that we will see a new 
opposition leader."  He added that the Opposition's meltdown 
Qopposition leader."  He added that the Opposition's meltdown 
over CPRS was symptomatic of deeper issues and that 
Turnbull's problems went beyond climate change. 
 
BLEICH