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This is PM Agenda.Hello, welcome to the program. China has unveiled its new leadership team for the next decade. The son a commune niflt revolutionary Xi jing pin as expected has become the Communist Party's new general secretary, he will takeover as president early in the new year. What impact will the transition have? Should Australia and the rest of the international community expect any major shift in foreign or economic policy. We will explore all of that with my guest today on PM Agenda, the Foreign Minister, Senator Bob Carr, hue White Professor in strategic studies at the Australian National University, also the foreign editor of 'The Australian' news, Greg Sheridan. Share wus as we look at the transition in China and other matters on the international stage. Let's check the headlines with Suzanne Latimore in the Sky News centreAs Kieran mentioned China's once in a decade leadership trance digs has taken place in Beijing. Xi jing pin the son of a communist revolutionary has been appointed as China's next president and the Communist Party's general secretary. China's new leader addressed a gathering at the end of the week-long people's congress. Said the Chinese people have every reason to be proud, that he would address corruption within the party.In the new environment a party faces many severe challenges, there are pressing problems within the party that need to be resolved. The problems among our party members of corruption, taking bribes, being out of touch with the people, undue emphasise on bureaucratism must be addressed. The whole party must be vigilant against them. Israel has carried out more than 50 airstrikes on Gaza in its most intense attack against the territory in years. The offensive began with the killing of a Hamas military Chief, but the group's training bases and Rocket launch sites have also been targeted, Hamas says Israel has opened up the gates of hell and militants have fired more rockets across the border into southern Israel.Israel and Hamas are once again locked into the bloody see saw of war which rocked Gaza through the night and has provoked a furious reaction from Cairo. The moment the latest blood letting began is shown in this Israeli Air Force video of its killing of Ahmed Jaabari leader of Hamas's military wing. Start of a campaign to cripple Hamas on the Gaza Strip. Provoked by weeks of missile attacks from the Palestinian enclave. TRANSLATION: Today we send a clear message to Hamas and other terrorist organisations. If it becomes necessary we're prepared to expand the operation. Casualties poured into the Gaza Hospital at least 10 were killed including three chirp and 45 wounded. TRANSLATION: We are preparing ourselves for the worst from the Israeli side. Our medical teams are in a state of high emergency. It's not a question of if we are ready or not, the necessary thing is to stop the Israeli climbs against our Palestinian people. Israel civilians were ordered into shelters.Gaza's militants returned fire hitting Beersheba 25 miles away with rockets. The impact of the conflict has been felt further away. TRANSLATION: Regarding what is happening in Gaza and the Israeli offensive and airstrikes on the strip. Egypt strongly and clearly condemns what Israel is doing. From airstrikes and the killing of civilians to assassination s this is unacceptable, we deeply condemn it.The events in Gaza are now straining a peace that has held between Israel and Egypt for 33 years. Sam Kylie, Sky News, Jerusalem. Hilly Clinton has spent the third day of her trip down under meeting with SA and Federal Government representatives and talking all matters defence. As her trip comes toll an end the Secretary of State has taken the time to reaffirm America's commitment to Australia, saying our relationship is indispensable. Sky News National affairs reporter Celina Edmonds is following miss Clinton and filed this report. Only a short visit. Knoll one doubted the porps of US Secretary of State Hillary Clinton coming to tech Port in Osborne. This is a 300 million March a time defence facility at the Heart of the naval manufacturing. It was an opportunity to push father a slice of the action in contracting to the US Pacific fleet, currently voyage repairs are done out of Singapore and Japan, SA wants to see them done here. The building of of the ships also demonstrates the extremely close defence capability and technology relationship between the United States and Australia. US companies are heavily involved in the delivery of each contract. I welcome the opportunity to further engage with US officials on other commercial opportunities. These last three days have reinforced for me the indispense ability of the US-Australia partnership indispensable to our shared prosperity, yes, and to our shared security, sure. But also indispensable for our shared values. The Secretary of State toured the air warfare destroyer project. Three of the vessels built here. An opportunity for SA to show case the naval military manufacturing. This is the last official event on Hillary Clinton's visit to Australia. Celina Edmonds, Sky News, Adelaide. A NSW Coroner has been unable to shed any light on the disappearance of a toddler from her Sydney home seven years ago despite police suspicions her family is to blame. Cameron Price was in court for the findings. Ram El Danoiy disappeared in 2005, the only clues a flyscreen in her bedroom window and the 20 month old toddler's empty bed. The inquest into her disappearance her fame including her father was suspicion in their behaviour including a tapped phone conversation, a joke about the toddler's disappear Rance and reward money, the court was unable to link any family members to her disappearance or death. Outside court the family denied involvement. It was seven years exactly. We want to - we don't know what has happened to her. We are not involved anyone, me or me wife, we done nothing to Rama, we want to know what has happened to her. Whatever we accept the situation, whatever has happened...Submissions that Rama was kidnapped or killed by pedophiles living nearby inconclusive, not helped by an insufficient investigation by police, the Coroner making an open finding unable to determine if Rama is still alive or dead or just who was responsible for her disappearance. The case will now go back to the NSW homicide squad for further investigation. Cameron Price, Sky News, Sydney.Now, for more on the top story, the latest ire strikes in Gaza, I'm joined by Brendan Nicholson the defence writer for 'The Australian' newspaper. Brendon thanks for joining us. Why do you think Israel has launched this action at this time? Well, it's a combination of events that are very dangerous for Israel at the Heart of it is the tiny size of the country, and the increasing sophistication of some of the weapons that are being used. Over the last few years various militant groups in Gaza are creating their own rockets, basically backyard assemblies using fertiliser, explosives the sort of things you'd see in Afghanistan, these are things with limited range, done a limited amount of damage. They have still killed a significant amount of people. The problem for Israel now is the militant groups are finding themselves armed with increasingly so dated manufactured military rockets -- sophisticated manufactured military rockets, rockets manufactured in places like China and Russia and supplied by Iran and Syria to these groups. They have increasing range and they're placing great fear here is they'll start landing on a major city like Telaviv. Has the Arab Spring led to this kind of arming of the Palestinians. The Arab Spring has been greeted around the world to great hope and has led to great uncertainty for the Israelies around the borders. Israel had a peace treaty of monumental significance with the Egyptian government many years ago. That's led to significant cooperation between Israel and Egypt. That's gone away. The Israeli government officials basically say there is very limited contact now with the new Egyptian government which is under pressure from groups to its left, to harden its attitude against Israel. There's great uncertainty in Syria, and artillery rounds from the conflict in Syria have landed in the Golan heights area. Even Jordan which has been a long-time friend of Israel faces considerable uncertainty with no guarantees that the King and his government will survive in the long-term. That would increase uncertainty for Israel enormously, so Israel is determined to stop people firing missiles and rockets into its territory, but it's going to be an extremely difficult thing to do. They have sent a signal with the attacks yesterday and they indicated they will follow up. This is speculative but a major ground attack using troops moving up through Gaza. That could be a costly and difficult operation for the Israeli Defence Force. We will be watching closely, Brendan Nicholson reporting from Telaviv E hot in the northeast, mostly Sunny in the west. Coming up to 12 months past 4 o'clock, eastern daylight time. Back to Kieran Gilbert in Canberra. Suzanne, thanks, we will be joined after the break by the Foreign Minister, Bob Carr.

This is PM Agenda, thank you for being with us. China's new leadership team has formally been announced in Beijing, the new general secretary of the Communist Party of Australia is Xi Jinping. He will formally takeover as president in the new year. The new general secretary of Party has used his first public speech to point to areas where the Communist Party must improve. TRANSLATION: In the new environment our party faces many severe challenges and there are many pressing problems within the party that need to be resolved.The problem among our party members and partners of corruption, taking bribes, being out of touch with the people, undue emphasis on formalities and bureaucratism must be addressed with great efforts. The whole party must be vigilant against them.At home Australia's foreign policy has been the subject of criticism from former Prime Minister Paul Keating. He says we have been too much focused on the US vur rendered foreign policies objectives to the US at the pens of our Asian neighbours. We have been traded down in the big stroke business, seriously traded down in the big stroke business. States like Indonesia are dubious of us, because they do not see us making our way in the world, their world other than in a manner deaf rengs to other powers especially the United States. The discussion the comments by Paul Keating, the chiep that foreign, I spoke to the Foreign Minister Bob Carr from Sydney.Foreign Minister Bob Carr, thank you very much for your time. You say we're not a patsy to the United States on foreign policy, but on what major issue have we disagreed with the US on in recent years? We're out in front of the US when it came to arguing for an arms trade treaty, that is a treaty reining in the growth for Kolnashikovs. We were out in front of the US opening relationship with Myanmar and we had to do persuading to get them to join the east Asian submit. I'll be candid with you, it's hard to pick a disagreement with the Obama administration, from my side of politics it was easy to pick a disagreement with the Bush administration, ideas cooked up in tinct tanks in the neo conservative world in Washington, but the Obama administration is doing the sort of things by and large that we're happy with, like saying to China we want you part of the world community. We want China as a great economic power to be playing a positive role in the world. President Obama said something as well, that Mr Keating was critical of when he said that economic prosperity without democracy is another form of poverty. Did that not give the Chinese enough recognition nor what they have done on that area. Do you agree with Mr Keating on that front? To be fair to Paul he was saying those comments shouldn't have been made in the Australian parliament, shouldn't have been part of the president's speech to the Australian parliament. Back in 2011 the President came here, he choose to make comments critical of China in the Australian parliament during his official address. I'm not going to comment on that. That was before my return to politics. That was the point Paul Keating was making. I think Paul Keating, as a former Prime Minister is one of the country's wise men has an absolute entitlement to make the comments, his comments on this as on economic policy challenge Australians to think differently, but the point I'd underline is that the treaty relationship with America is damned important to a country with a small population and a vast continental pace in an uncertain region and an uncertain world. More over working with the Obama administration, Hillary Clinton Leon Panetta is easy and more comfortable in working with some previous US administrations for a Labor Government. I think for a coalition government as well. In that context did the Obama win recently make it easier for Australia with the pivot to Asia and so on with that continuity? Did the Obama second term does it make our foreign policy objectives easier say if the Republicans had one? The answer is yes, although I believe over time we would have got a new administration, a new president, a new Secretary of State, to focus on Southeast Asia, on Asia and on the Asia-Pacific in general. We would have got there, but the comfortable thing about the return of the Obama administration was that the team that made the decision to rebalance to Asia, the people, Hillary Clinton, preeminently who had been turning up at meetingsing of southeast Asian nations and in her case going to a ming of the Pacific island forerum in the cook islands are still in government. So there's an easy continuity there, although I'm confident that should - if govern Romney had been elected we would have soon got to that point. Paul Keating also wants Australia to be morpho cussed on Southeast Asia. He said we should be a member of the soern yags of southeast Asian nations, ASIAN, do you agree with with him, why aren't we a member of that? The day might come, we're proud, the 10 ASIAN nations are very proud of what they call ASIAN Ken tralt. You don't force your way into a community before trip -- Centrality. To be right before it's appropriate is to be wrong. The day could welcome. I suspect now is not the time. Again this is where Paul Keating is very very useful. He's challenging us to think about a different future, about different arrangements in the future. I wouldn't want Australia to put its hand up to seek membership of ASIAN at a point where the 10 ASIAN nations focused on ASIAN Centrality, the focus with Myanmar were not ready. The former Australian Prime Minister mentioned nearby that, that relationship is not as strong as it should be in his view. It's been dominated by transactional issues, the boats and the live cattle issue. What more can be done to boost bilateral relationw that nation on our doorstep? I'll give you a measure of how close the relationship between us and Indonesia is, since 2007 there has been a Ministerial visit either from here to Indonesia or from Indonesia to Australia on average every three weeks. So every three weeks we have an Indonesian Minister coming down here to talk to us or we're going up there to talk to them. Just tell me how the relationship could be closer than that? Last week, not only I was present at the President Yodiono's meeting. Indonesia is the biggest recipient of Australian aid it is cooperating with us on counterterrorism. Indonesia is working with us on policing matters, including people smuggling. We are in the habit, this is all together a good thing of close consultation with our largest and most important neighbour. I for the life of me, I can't think of another lever to pull or button to press when it comes to our relationship with Indonesia. The biggest concentration of Australian diplomats is there in Jakarta. It's bigger than our diplomatic representation in Washington. There's a test for you, we have more diplomats in Jakarta than we have in Washington. No-one in the Gillard government needs to be told how important Indonesia is. We have been implementing policies that underline Indonesia's importance to us. Foreign Minister, there's a lot hamming on the inter-National stage. Let's stage subject and look at the new leadership unveiled in China. Xi Jinping he's a princeling son of a communist revolutionary his parents were purged in the Cultural Revolution, might a turn around, the new president or head of the Communist Party to become the new president. Would you anticipate any major shift in policy under the new leadership? I wouldn't think so, Kieran. I think continuity is likely to be marked here. There will be some time for the new leadership to take its roots. The leadership has to be a elected to its state offices by the National People's Congress next year then congratulations will be in order. I will think the basis of our relationship, the metrics of our relationship are sound, very good. China would not have a better supplier of the energy and the food resources it needs, the mineral resources it needs than Australia where the rule of law prevails, where contracts are honoured, and where they're able to negotiate an outcome in a market setting, without resource nationism rearing up and biting their hand. Australia is enormously reliable. There hasn't been a single Chinese investment rower than a mining investment proposed by the Rocket testing range that's been knocked back by Australia. We're very receptive to China's investment it's good for us, it brings capital into mining. We are well advised to do that. We would welcome it going up. The outgoing president, hue gin to you has warned its party and the state could be at risk if they don't deal with corruption appropriately. Are you confident the rhetoric is being matched by the actions in ChinaI read his speech, the rhetoric was strong on that unequivocal on that. He says that corruption is the threat to the position of the party, to the position to the state itself. This is very strong language. Issues of governance, anticorruption, building corruption resistance into the China's system is obviously a priority for the new leadership. We think that's good. We think it will offer a better atmosphere for Australian companies doing business with China, but it's in the interests of stability in China itself. What about further liberalising of its political system? We know there has been a fair bit of pressure on the leadership and according to many analysts that will only increase over coming years. We have seen that great opening of the economy. Do you think it's inevitable there will be a lal ralisation of the political system albeit not democracy as we know it some movement in that direction. Observers of the Communist Party points to more transparent competition for political officers under the architecture of the Communist Party. That means a public contest for support. It means different factions being recognised. That in itself is a big step for a traditional markist Lennonivity party. There are certainly Chinese who talk about matching the economic reforms that have taken place against Fung Xi ping in 1979 since the complete of the great southern tour in the early 90's, matching the economic reforms by political lab ralisation, all they they would use a different word. When the retiring premier, Jao Bao spoke about democracy in China, we can be certain beneath the surface is affirmative ideas on how the political system can be opened up so the next leadership transition in 10 years time is likely to be under different rules from what we witnessed at work this time around. One final issue, quite dramatic and involving, Ahmed Jaabari was killed by Israel. It's drawn a warning from Hamas that retaliation is imminent, that Israel has opened the gates of hell is how they described it. The IDF is warning of a possible ground invasion, things looking ominous once again. Kieran we can urge both sides to exercise restraint to remind all participants in the drama of the Middle East that peace for the people of the Middle East will only come when there is a negotiated two-state solution. That is a Palestinian state that captures the at spir rations of the Palestinian people to have a nation of their own recognised by the world celebrating the genius and the talent of the Palestinian people denied for so long at the same time security guarantees for Israel. The two-state solution, Palestinian state and the security state for Israel. The tragic incidents is a reminder of the two sides to commit to the outcome. It is the only resolution. On the UN, what can it do? The Security Council has been meeting on this issue? I would like to think the UN can move both sides to restraint. It's important that Rocket attacks on Israel cease, Israel being Israel will respond to Rocket attacks, no matter who makes them from Gaza territory. Those Rocket attacks will act as a terrible provocative agent that will bring a response, and Israel, as usual, needs to be reminded that its responses ought to be proportionate.but rather than attacks and responses, let's set that aside and have mutual restraint and have both sides commit. Palestinians and Israelies commit to resuming negotiations to get that two-state solution. Foreign Minister Bob Carr we have covered a lot of ground. I appreciate you traversing all those issues with us today. Thanks. Kieran, thauf. A bit later in the program Professor hue white will be my guest from the ANU and Greg Sheridan coming up from 'The Australian' newspaper.

This is PM Agenda, thank you very much for being with us today. Coming up Greg Sheridan from 'The Australian' newspaper and Professor Hugh White from the ANU first the news headlines from Suzanne in the Sky News centre. China's ruling Communist Party has appointed Xi Jinping as general secretary to succeed shu jing tau. He was appointed to over see the military at a chore graphed ceremony at the congress in Beijing. The new leader is the son of a party elder and served has Vice-president for the last five years. He will lead the newest military power amid increasingly vocal calls for reform. The US Secretary of State Hillary Clinton has met with Jay Weatherill and Penny Wong in Adelaide. They toured the city's 300 million tech Port marine defence hub the site of much of the work on Australia's new air warfare destroyers and the next fleet of navy submarines. As well as lauding the strengths of the Australian US appliance, Mrs Clinton said she welcomed close ties with Australia and Asia. Miss Clinton will remain in Adelaide before flying to Singapore tomorrow. Israel has carried out more than 50 airstrikes on Gaza in the most intense attack against the territory in years. The offensive began with the killing of Hamas military Chief Ahmed Jaabari. Ambassador Jew san rise defended the response to Hamas shelling at the Security Council meeting. Hamas has responded by firing more rockets. A Sydney Coroner has handed down an open finding into the disappearance of the 20 month old toddler Rama El Danoiy. She went missing seven years ago. The evidence does not absolve her family and has referred the case back to the NSW homicide squad. Ante Australia territory protests and strikes ever sweeping Europe. In Portugal a protest outside parliament ended violently as police charged at demonstrating hurling stones and molatov cocktails. Protests were staged in more than 100 towns and cities. Tear gas was used to quell the crowds. Local media says several officers were injured. Adelaide Crows CEO Steven Trigg has refused to resign in the leadup to Monday's hearing before the AFL commission. There are claims the club secretly diverted payments to star player Kurt Tippett. The weather, showers and storms in the southeast, Sunny in the westSuzanne, thanks for that. Let's go to Greg Sheridan from 'The Australian' newspaper. The foreign editor at the Australian Greg Sheridan. Lots to talk about today on the international stage. First the transition in China. Our Foreign Minister Bob Carr not expecting much change in foreign policy, economic policy, pundits expecting the same. What's your sense? Well, I think China has been character rised by great policy continuity and reliability in recent years. The new standing political of the Politburo has an economics bias which is good news and generally a pro economic reform bias. Two caveats I suppose to that one, I wouldn't see them interested in political reform, economic reform won't abaccompanied by economic reform. I don't see them being less assertive under the leadership Xi Jinping to it those who know him as a more assertive person than had you jing tau. That could help, because the military hasn't been entirely under the control of the government. I think in broad terms we can expect continuity and a focus on trying to get China's economy refed up again. Interested to talk to you on the point of the political liberalisation, sag that Mr Xi did say in the opening speech, reflected a bit of the rhetoric from had you jing tau, that is referring to some of the problems the Communist Party has to face on corruption and being in touch with the people was the sort of language he used. Do you not expect any sort of move towards liberalising, even intraparty operations? No, I'm pretty cynical about that rhetoric. The China run, a very sophisticated system, quite consultative, very attractive to the Singapore model of old, you understand what the people are thinking, you try to meet their grievances so long as they're not political. But the denouncing corruption and so on I think is main lip window dressing. The China's people are very unhappy about corruption, they see the red prince INGs getting rich, Jao Bao as a political reformer his family collected revenue of 2 billion not bad on a government officials salary. You need to denounce corruption so you convince the masses you're doing something about it. When they try someone for corruption like Bo Xi Li like in the old days they tried them for idealisation. They will find it hard to reform corruption. There will be some pressure on them bubbling up from beneath to do that. It's the issue that upsets the average China's more than any other. Let's move on. I want to get your thoughts on AUSMIN, the Secretary of State Hillary Clinton and Secretary of Defense Leon Panetta here this week. Leon pan net that was diplomatic, you're adamant in your writing today that that is not the case behind the scenes at the US are very angry indeed about this, feel we're riding on their coattails? Yes, no doubt about that. Senior American officials, senior serving American officials have said to me they're appalled at the Australian defence cuts. The Pacific commander has said so on the record, senior members of the National security establishment have said so on the record. Not so many months ago Robert Gates denounced Europeans for cutting the defence budgets and most of those Europeans have defence budgets large area than ours. What has happened, I think the Americans don't expect the Gillard government to last that long, the Gillard government is saying to the Americans this spending cut is a one-year aberration, they will restore spending in future. Of course they still appreciate things the Gillard are doing, keeping the troop presence in Afghanistan. It is a major major deception of the Australian people to pretend that our going to the lowest share of GNP on defence since 1938 is not of major concern to our ally. The defence Minister does point out, Greg Sheridan the US are also undertaking massive cuts over the next decade. What do you say to that argument? The US hasn't got much grounds to criticise us given their own cuts? Kieran, a lot of what the defence Minister says is off in fairyland, that's the silliest argument you could ever mount in a million years, the U sngsz defence budget is 700 bill, our defence budget is 20 billion. Does Stephen Smith really regard that as a proportionate effort? The US is 15 times as big as that if they had a Defence budget like ours this would be 300 billion, the 700 bill on on defence they spent money in the department of energy on nuclear weapons, the efforts they make securely our security all around the world is not remotely comparable to us. We would never a big defence spender, we have fallen way below the critical minimum now, and one reason nothing happened at this AUSMIN, this was a remarkable AUSMIN, because nothing happened. We are now rotating 250 marines through northern Australia, one reason nothing happened is because since Rudd left the Government the impetus on this enhanced defence cooperation has declined in the Gillard government. It has the jitters about China. It is not taking defence seriously any way. This was a stalled and calmed AUSMIN, the Americans were too polite to call us out publicly on it. Greg Sheridan, a minute left, I want to get your thoughts on Paul Keating's criticism, Australia has been acquiesce sent to the U sngsz in terms of expense to the Asian neighbours in terms of foreign policy? I was a great admirer of Paul Keating's foreign policy as Prime Minister. I half agree with him. We haven't been acquiesce sent with the US, when ever we want to disagree with them we have done so. He does have a point we lack serious engagement with Southeast Asia beyond Indonesia. That is not because of our commitment to the Americans. Fewer Australian student learn Indonesian now than did under the white Australia policy. That's nothing to do with our commitment to the Americans. Our failure to engage across Southeast Asia is all our own fault. You can't blame the Americans for that. Greg Sheridan from 'The Australian' I appreciate your insights and thoughts, thanks for that. Thanks Kieran. A quick break and when I return Hugh White from the Australian National University. Stay with us.

P This is PM Agenda. Now for more on Paul Keating's criticisms of Australia's foreign policy and on China's leadership transition, I spoke to Hugh White Professor in strategic studies at the Australian National University. Hugh White, thanks for your time. Paul Keating says Australia's independence on foreign policy has weakened, that we have surrendered our objectives with the US at the expense of relations with our Asian neighbours. Do you agree with that? A lot of justice in the criticisms. Australia is facing immense changes in the strategic situation, it requires us to rethink some of the fundamentals of our foreign policy. We have been eager, content to go along with the way the United States is approaching, particularly the key issue of the rise of China, and haven't thought hard enough about what kind of role we want America to play in Asia, what kind of role for America would best suit our interests, what we can do to encourage the United States in that direction, very big Australian interests are at stake. This is a failure not to focus on it harder than we have. Professor white on the Alliance, isn't it true the world view of the Rudd/Gillard government isn't that difference from the Obama administration, you would expect a fair degree of policy alignment as well? When you look at Australia's perspective on the role in Asia, we want the United States to be engaged and the United States wants to stay engaged. From Australia's point of view we need the US to say engaged in a way that doesn't engender rivalry with China.

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