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

2. Asia's Transformation: Australia's Dilemma

3. Asia’s share of us total trade deficit

4. Asia’s foreign exchange reserves

6. Foreign Direct Investment Flows

7. Economic Growth in China

8. 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)
United States
Germany
France
Japan
Korea
Australia
World

9. Direction of Australia’s Exports 2004

10. Australia’s Trade with East Asia

11. Australia’s Trade with US

12. Australia’s Trade with China 2005

13. World Military Expenditures 2005

14. World Military Expenditures 2005
Source: Center for Arms control & Non Proliferation

15. 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

16. 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

17. Japan’s Military Expenditure
In constant (2003) US $billion
SIPRI estimates

18. Japan’s Nuclear Capabilities

19. Japanese Separated Plutonium Stockpile 1994-2004 (kg)
Separated plutonium
held in Japan ,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, ,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

20. 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.

21. 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 . . .”

22. 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

23. 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

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