Asia’s Transformation: 2007 Lecture Series Professor Joseph A. Camilleri  Asia’s Transformation: Australia’s Dilemma

Asia's Transformation: Australia's Dilemma

Asia’s share of us total trade deficit

Asia’s foreign exchange reserves

Foreign Direct Investment Flows

Economic Growth in China

2000 2010 United States 8.21 10.82 Germany 3.43 3.77 France 3.17 6.05 China’s share in the imports of selected countries (% of total imports) 2000 2010 United States 8.21 10.82 Germany 3.43 3.77 France 3.17 6.05 Japan 14.51 23.54 Korea 7.58 9.43 Australia 7.76 11.56 World 4.17 5.67

Direction of Australia’s Exports 2004

Australia’s Trade with East Asia

Australia’s Trade with US 1999 2000 2001 2002 2003 2004

Australia’s Trade with China 2005

World Military Expenditures 2005

World Military Expenditures 2005 Source: Center for Arms control & Non Proliferation http://www.armscontrolcenter.org/archives/002279.php

World Military Expenditures 2006 Selected Countries Military Budget ($Billions) World Ranking United States* 644 1 China (2006 Expenditures)* 122 2 Russia (2005 Expenditures) 59.1 3 United Kingdom  55.1 4 France  45.3 5 Japan* 41.1 6 Germany  35.7 7 Saudi Arabia (2005 Budget)  25.4 8 South Korea  23.7 9 India  22.3 10 Sources: International Institute for Strategic Studies, U.S. Department of Defense

Japan under Koizumi Launched first spy satellites  capacity for surveillance over DPRK Joined Proliferation Security Initiative Imposed unilateral economic sanctions on DPRK Passed special law after 9/11 authorising Maritime SDF to assist US to deploy in Indian Ocean – providing rear support for US war in Afghanistan Deployed about 600 SDF troops in Iraq Joined US anti-missile defence program, pointing to China threat Released 10-year defence program (December 2004), openly labeling China as a potential threat Joined US in declaring that Taiwan was a “common security issue”  relevant to the US-Japan military alliance Announced (Feb 2005) that Japanese Coast Guard would officially take responsibility for the disputed Senkaku Islands Strongly opposed EU plans (with US) to resume arms sales to China

Japan’s Military Expenditure In constant (2003) US $billion 1988 1990 1995 2000 2005 35.4 37.7 40.5 41.8 42.1 SIPRI estimates

Japan’s Nuclear Capabilities

Japanese Separated Plutonium Stockpile 1994-2004 (kg) 1994 1998 2002 2003 2004 Separated plutonium held in Japan 4,965 5,405 5,475 5,710 Total fissile plutonium 3,844 3,899 4,045 held overseas 8,720 24,398 33,251 35,168 37,400 Total fissile plutonium 22,554 23,838 25,285 Total separated plutonium 13,072 29,363 38,656 40,643 43,110 Total fissile plutonium held in Japan & overseas 26,398 27,737 29,325 Rokkasho Reprocessing Plant = fully operational in November 2007 Planned reprocessing capacity = 800 tons of spent fuel per year  around 8 tons of plutonium per year. Source: CNIC

Article 9 of the Japanese Constitution Article 9 of the Japanese Constitution came into effect on 3 May 1947 Aspiring sincerely to an international peace based on justice and order, the Japanese people forever renounce war as a sovereign right of the nation and the threat or use of force as means of settling international disputes. In order to accomplish the aim of the preceding paragraph, land, sea, and air forces, as well as other war potential, will never be maintained. The right of belligerency of the state will not be recognized.

Australia - Japan Joint Declaration on Security Cooperation (13 March 2007) “Affirming the common strategic interests and security benefits embodied in their respective alliance relationships with the United States, and committing to strengthening trilateral cooperation, including through practical collaboration among the foreign affairs, defence and other related agencies of all three countries, as well as through the Trilateral Strategic Dialogue and recognising that strengthened bilateral cooperation will be conducive to the enhancement of trilateral cooperation . . .”

Australia - Japan Joint Declaration on Security Cooperation (13 March 2007) Areas of Cooperation: law enforcement on combating transnational crime, border security counter-terrorism disarmament and counter-proliferation of weapons of mass destruction and their means of delivery peace operations exchange of strategic assessments and related information; maritime and aviation security humanitarian relief operations, including disaster relief contingency planning, including for pandemics

Australia - Japan Joint Declaration on Security Cooperation (13 March 2007) In particular, strengthen practical cooperation between their respective defence forces and other security related agencies, including through: exchange of personnel joint exercises and training to further increase effectiveness of cooperation, including in the area of humanitarian relief operations  coordinated activities including those in the areas of law enforcement, peace operations, and regional capacity building

Asia’s Transformation: 2007 Lecture Series Professor Joseph A. Camilleri   Asia’s Transformation: Australia’s Dilemma