Malaysia, Australia fail to bridge key differences

Malaysia, Australia fail to bridge key differences

Agence France-Presse
Canberra

Australian and Malaysian leaders failed to resolve long-standing
differences over how to tackle terrorism in Southeast Asia at a
meeting in Canberra on Thursday, at which Malaysia also refused
to back Australia's push for inclusion in a new regional
grouping.

In the first Australian visit by a Malaysian leader in 21
years, Abdullah Ahmad Badawi and Prime Minister John Howard
announced plans to negotiate a free trade agreement but refused
to concede ground on key differences regarding Canberra's role in
the region.

Both leaders played down tensions over Malaysia's objection to
Australian participation in the inaugural East Asia summit,
Canberra's refusal to sign the Association of Southeast Asian
Nations' (ASEAN) Treaty of Amity and Cooperation and Howard's
threat of unilateral action against militant bases in the region.

"Like all countries that take their relationship seriously,
there will over time be differences and there will in the future
be differences," Howard told reporters at a joint press
conference with Abdullah.

Howard cut the press conference short after persistent
questioning on thorny bilateral issues, in stark contrast with
Indonesian President Susilo Bambang Yudhoyono's visit earlier
this week, when both leaders appeared at ease and said relations
had entered a new era.

Unlike Susilo, Abdullah refused to back Australia's push to
attend the East Asia forum, saying negotiations were ongoing.

"We haven't had a summit yet, we haven't finished discussions
at a foreign minister level, there are many issues that need to
be discussed," he said when asked whether he wanted Australia to
attend.

Abdullah's deputy, Najib Razak, said last month Australia
should be excluded from the summit, which will be held in Kuala
Lumpar in December and Australian officials have identified
Malaysia and China as the main opponents to Canberra's
participation.

Australia and Malaysia have a long history of tense relations,
particularly under Abdullah's predecessor Mahathir Mohamad, who
labeled former prime minister Paul Keating a "bully" and was in
turn called "recalcitrant" by the then Australian leader.

The relationship has improved since Abdullah took power in
2003 but the Malaysian leader still felt compelled to criticize
Australia's foreign policy as too U.S.-focussed ahead of his
visit and question Howard's threat to take unilateral action
against extremists' bases in the region.

Abdullah reacted coolly when asked if Malaysia would be
willing to host Australia's proposed "flying squads" of counter-
terrorist forces.

"We can certainly take care of what happens within Malaysia,"
he said. "If it is necessary that we seek help and assistance
from other countries then we would do so."

Pressed on the issue of Australia making pre-emptive strikes
in the region, Abdullah replied: "Some issues concerning which we
will have a different opinion.

"But that doesn't matter really, what is important is that we
look at the bigger picture."

For his part, Howard reiterated his refusal to sign the Treaty
of Amity and Cooperation, under which the 10 ASEAN nations,
China, Russia, Japan and India have agreed not to use military
aggression against one another.

"Given that it was delivered to the region by a mindset that
we've really all moved on from, I didn't think it was appropriate
that Australia should sign it," he said.

Trade Minister Mark Vaile said two-way trade with Malaysia
reached almost A$10 billion dollars (US$7.65 billion) in 2004 and
a trade agreement could boost the Australian economy by $1.9
billion a year.

Australia already has free trade agreements with Thailand,
Singapore, the United States and New Zealand.