It is a pleasure to be here in Bangkok to participate in the 33rd ASEAN Post Ministerial Conference. It is an annual event that I very much look forward to.

Australia has long believed that its future is tied up with Asia and we have Committed ourselves to a long-term, mutually beneficial relationship with the region. The past three years have been a testing time for East Asia. It is gratifying for us all that, despite the depths of the economic downturn, the region has proven remarkably resourceful and that recovery, in various stages and with varying strengths, is now under way. In fact, the rebound over the past 18 months has exceeded most expectations.

A word of caution, however, is appropriate. It may be that the removal of key pre-crisis vulnerabilities like overvalued pegged exchange rates, low foreign reserves and excessive short-term debt, has reduced the the risk of a similar acute crisis in the future. But, further structural rerform - particularly financial and corporate resructuring - is needed to achieve sustainable, regional recovery. We must also remain alert to the effect of external developments like a possible slow down of the US economy that may place a limit on future growth in our region by reducing demand for our exports. This initial driver of recovery - net exports - continues to perform strongly, but stronger import growth is reducing trade surpluses in many East Asian economies.

The global economy, the region and Australia all stand to benefit from post-crisis regional reform. Further reform and restructuring in areas ruch as the financial sectors, corporate governance and debt restructuring will have long-term benefits, making these economies more efficient and competitive, and less susceptible to external shocks.

As I have already outlined, an abiding component of Australia foreign policy is the high priority that we accord to engagement with Asia, and over the last three years, Australia has demonstrated its commitment as a reliable and constructive partner willing to make a substantial and practical contribution to assist the region's integration efforts and to aid economic recovery and longer term prosperity. This commitment will continue and I am pleased to announce Australia's intention to implement a HIV/AIDS initialive involving funding of $A 200 million to be implemented over 6 years. Australia is also pleased to announce a new phase of our development cooperation with ASEAN, to be know as the ASEAN-Australia Development Cooperation Program (AADCP). The program will have a strong economic and trade focus, and will amount to $A 45 million in funding. I will be saying more on these two initiatives in the "10+1" forum.

Another example of Australia's commitment to the region is through the implementation of a $A 5 million project to combat illegal trafficking in women, and children.

Australia's commitment to the region also extends to the broader level of regional cooperation, where APEC has demonstrated its continuing vitality and relevance. The successful Ministers Resp onsible for Trade Meeting hosted recently in Darwin, by my colleague Mr. Vaile, has given significant impetus to the international trade liberalisation agenda. The Ministers' Statement called for an early launch of a new WTO round, and agreed on some concrete steps to build momentum for such a Round. They agreed to an APEC-wide moratorium on customs duties on electronic transmissions. They also agreed to develop a strategic plan to build capacity to implement WTO agreements. Ministers also welcomed the commencement in Geneva of negotiations on agriculture and services and importantly called for preparatory work on industrial tariffs and other related areas to begin in the WTO as part of the preparation for the new round.

Australia is pleased to be working with ASEAN colleagues on the AFTA/CER FTA proposal, and we encourage ASEAN Governments to consider the proposal positively. The results of recent economic modeling show that such an agreement would bring positive benefits to all members. It would increase the size and profile of our regional market, making us all more competitive in the global market and more attractive to foreign direct investment.