Thank you for the invitation to speak with you today. My comments focus on how New Zealand sees its place in the world, our foreign policy objectives, the key issues of concern in the international arena and how New Zealand’s defence policy fits in to our response to these.

Our Place in the World

New Zealand is a small country of around 4 million people.

We have no pretensions about our ability to impose our will on any other country nor do we pose a threat to any other country.

Our ability to influence rests solely on our ability to persuade and on winning respect for our position and role in international affairs.

We see ourselves as a sovereign county interdependent with others but voicing an independent viewpoint rather than simply being the echo of another nation’s position.

We place emphasis on multilateral institutions, including the UN and the WTO, to establish rules – based systems governing conduct between nations.

We are a liberal democracy, which follows and promotes commitment to democratic procedures, the rule of law and respect for human rights and human dignity.

We believe in being a good international citizen, and seek to demonstrate that through commitment to peace keeping, development assistance, disarmament and progress on international environment and social policies.

While peacekeeping is an important focus of our activities, with a presence in 13 countries, we believe in the need to sustain military forces as combat ready, and to commit those forces where there is no other alternative to ensuring peace and security, such as in the war against terrorism in Afghanistan.

We are a multi-cultural country, drawing our heritage from our indigenous people, the Maori, from Europe, from the Pacific and increasingly from Asia.

We no longer see ourselves as an outpost of Great Britain but rather a Pacific nation working closely with Australia and developing an increasingly important relationship with Asia. We work to retain our traditional links with Europe, North America and the Commonwealth and to build new links with regions such as Latin America.

As a nation which is genuinely multicultural, we have the potential to bridge gaps between the cultures of Europe, the Pacific and Asia.

Foreign Policy Objectives

New Zealand’s key objectives in foreign policy, as with other states, is to preserve its security and territorial integrity and to advance its interests and values as a nation.

We can best do this by promoting a stable, secure and prosperous world.

We aim in economic terms to promote sustainable world economic growth and free and fair trade. New Zealand opposes tariff and other barriers to trade and subsidization of production particularly of agricultural products by the developed world.

We aim to protect and promote the world environment, addressing concerns such as global warming pollution and unsustainable exploitation of resources such as fishing.

We aim in practical ways to advance human rights, good governance, democracy and the rule of law.

These are critical both to preserving peace and promoting development.

We are committed to disarmament, conflict prevention and the peaceful and just solution of international disputes.

Promoting elimination of weapons of mass destruction, especially nuclear, is essential to our future and the survival of the world. Our nuclear – free status is an important component of this.

We support peacekeeping and regional and international security measures, including the campaign against terrorism.

We provide support to developing countries, with an emphasis on eliminating poverty.

Key Issues of Concern in the International Arena

The fears which dominated New Zealand’s strategic thinking through the twentieth century are no longer relevant.

The fears about aggression from imperial and then communist Russia, from China and from imperial Japan have passed into history. So too has the era of the Cold War. Today we are hard pressed to identify any nation which poses a direct threat to our integrity.

Other concerns, however, have emerged to take their place.

International terrorism, post September 11, is prime amongst these.

September 11 was a watershed in demonstrating both the willingness and ability of an international terrorist group to engage in the mass murder of 3000 civilians to promote their cause.

It indicated that such groups have no bottom line to the action they are prepared to take, including, should they gain access to them, use of weapons of mass destruction.

New Zealand’s response has been to contribute special forces in Afghanistan to engage in the war against terrorism, as well as peacekeepers as part of the ISAF, and development assistance.

We have contributed through the sharing of intelligence. We have introduced legislation to crack down on terrorist organisations, and increased funding to border control. We also strongly believe that concerted and ongoing efforts are needed to address the causes of terrorism, including disparities between rich and poor nations and in particular the need to resolve conflict between Israel and Palestinians.

Conflict and instability in the Pacific has become an increased focal point for New Zealand engagement.

Population pressures, land disputes, ethnic tensions, failing economies, corruption and loss of good governance and the rule of law are common factors in growing instability in Melanesia.

The Solomon Islands, Papua New Guinea, Fiji and Vanuatu have all been affected by such instability.

If states fail in the region, this impacts directly on the well-being of the people of those states and indirectly on the region. The vacuum of authority which results encourages transnational crime including the smuggling of weapons, people and drugs.

New Zealand has been heavily involved in the region as part of the Peace Monitoring Group in Bougainville, the International Peace Monitoring Team in the Solomons, peace-keeping in East Timor, and engagement with Fiji after the coup through the Pacific Forum and the Commonwealth.

Potential regional conflicts in Asia pose risks that would impact both regionally and internationally.

The Korean peninsula remains a possible flashpoint, though diminished by engagement between the two Kims.

Cross-straits tensions remain between Taiwan and China and could erupt if Taiwan takes further steps towards declaring its independence from China.

The ongoing tension between India and Pakistan over Kashmir and terrorism, combined with the possession by each country of nuclear weapons, makes South Asia one of the most dangerous regions in the world.

New Zealand participates in bilateral and multilateral efforts to reduce the risk of these tensions erupting into open conflict.

We hope that organisations such as the Asean Regional Forum can contribute to confidence building and preventive measures so that disputes can be resolved peacefully.

The threat posed by weapons of mass destruction continues to be a focal point of New Zealand concern.

The end of the Cold War has in part diminished this threat and we welcome the decision by Russia and the United States to reduce nuclear weapons held by them from around 8000 to under 2000.

However the proliferation of countries with access to such weapons and the growing danger of weapons – nuclear, chemical or biological – falling into the hands of terrorists groups means that there is no scope for complacency.

New Zealand works with other countries such as Sweden, Ireland, Egypt, Brazil, Mexico and South Africa in the New Agenda grouping to promote further progress in multi-lateral disarmament.

Defence Policy

New Zealand’s defence policies work in tandem with our foreign policy objectives.

Our defence objectives are:

ØTo defend New Zealand and to protect our people, land, territorial waters, Exclusive Economic zone, natural resources and critical infrastructure

ØTo meet our alliance commitments to Australia by maintaining a close defence partnership in pursuit of common maintenance of security in the South Pacific, and to provide assistance to our Pacific neighbours

ØTo play an appropriate role in the maintenance of security in the Asia-Pacific region including meeting our obligations as a member of the Five Power Defence Agreement

ØTo contribute to global security and peacekeeping through participation in the full range of UN and other multilateral peace support and humanitarian relief operations.

The common elements between foreign and defence policy are clear: the protection of New Zealand, the maintenance of bilateral and regional relationships, a commitment to multilateralism . and the promotion of world peace and development with a particular focus on our own region.

It is necessary to have a credible defence capability to underpin an effective foreign policy,

New Zealand released a Government Defence Statement in May 2001.

This statement set out a reconfigured New Zealand Defence Force designed to be sustainable and affordable over the long term.

It established a Joint Force Operational Headquarters. It announced plans for a modernised army with expenditure priorities on acquisition of new armoured vehicles, tactical communications and light operational vehicles.

It set out proposals for a practical navy fleet, including a new multi-role vessel and patrol vessels.

It established priorities for a refocused and updated airforce.

This involved plans for retaining the Orion surveillance fleet, the upgrading or replacement of the C – 130 fleet and the Iroquois helicopter fleet, the replacement of the B 727 transport planes and the disbanding of the air combat force.

The statement committed government to modest increases in the net operating funding for defence and total capital investment of more than two billion dollars over the next 10 years.

Like most areas of government expenditure, wish lists exceed projected revenue, and prioritisation is essential.

In line with the 1999 Defence Beyond 2000 Select Committee Report, New Zealand opted to narrow the spread of its defence activities and to focus on doing excellently what it regarded as its priority operations.

In conclusion, I have outlined today how New Zealand sees its place in the world, our key objectives in foreign policy and our major issues of concern internationally and touched on how a defence policy relates to these issues. In the time available, it is of necessity a broad-brush description.

There is however time for questions and I would be happy to try to address any of these areas in greater detail.

I wish you an enjoyable and fruitful stay in New Zealand and a safe return to Australia on Saturday.