An enormous shift of global power in a post-Cold War world is epochal in that the players compete in economic contests rather than ideological ones. There is no doubt that there will be a major shift in the focus of world economic power towards the western rim of the pacific which will offer an enormous opportunity to Australia. Australia must adapt, innovate, and make use of opportunities within Asia. It should be recognised that it is in our interest to contribute to the economic development of the region through trade, aid and investment. In doing so, we will be promoting our own prosperity. In order to develop markets we will have no choice but to accommodate greater Asian access to our market and greater investment flows in both directions.

Australia has changed very significantly since the war - politically, socially, ethnically, culturally. We need to recognise that regional perceptions of Australia will be based in significant part on our record on aboriginal issues, migration and refugees as well as our attitudes to race. Australia needs to actively cultivate an awareness of an sensitivity to Asian realities. This awareness is required not only at official levels, but by all groups. An active two way flow of information will not guarantee freedom from misunderstanding (as per the Hanson comments) far less can we expect freedom from clashes between differing perceptions of the role of the media. What we can aim for - and should - is to avoid misunderstandings based on ignorance, bias or perceived views which have not kept pace with reality. Australia needs to make a sustained national effort to avoid such misunderstandings in the future. In all instances, a strong leadership role from Government is required.

It is difficult, perhaps dangerous, to make any generalisations about a region of such diversity. Yes Asia can be approached as a region but in doing so may obscure opportunities for pursing interests or addressing problems particular to individual countries. . Australia needs to strike the right balance between the imperatives of Asian relationships and the position and values cherished as a developed, aligned, non-Asian country. The Australian Government has firmly reaffirmed that the alliance with the United States is fundamental to national security and foreign and defence policies and that commitments and obligations remain valid and appropriate in today’s very different circumstances.. We are independent as well as being aligned and within the Asia Pacific region we must continue to develop sound relationships with regional countries.

In a very real sense the problems that Australia faces in relation to regional neighbours reflects her growing integration and increasingly important links with them. This doesn’t mean we should contemplate exclusive concentration on the Asia-pacific region. Asia cannot afford to become inward looking. Australia will need to remain independent and assertive when the need arises, while becoming accepted as a member of the region; to be active in support of our interests and values without appearing naive, insensitive or moralising; and to work for the economic benefit of the region, not least our own small bit of it.

The challenges that lie ahead for Australia are far from easy. But our national prosperity and standing depend on facing them squarely.