 Your Excellency Margaret Beasley, Governor of New South Wales, the Hon. Scott Morrison MP, Prime Minister of Australia, and the Hon. John Howard, former Prime Minister. Sir Frank Lowy, Chairman of the Lowy Institute and Board Members of the Institute. Ministers, MPs and Senators, Ambassadors and Consuls General, Corporate Members and Supporters, Distinguished Guests, Ladies and Gentlemen, good evening and welcome to the 2019 Lowy Lecture and Dinner. I'm Michael Fully Love, the Executive Director of the Institute. I acknowledge that we are gathered on the land of the Gadigal people of the Eora Nation and I pay my respects to all their elders. Well ladies and gentlemen, doesn't the Sydney Town Hall look magnificent tonight? Let me ask you, how good is the Lowy Lecture? The answer is very good. The Lowy Lecture is the most important event in the Institute's calendar and we are delighted you could all be with us tonight. Each year the Institute invites a prominent individual to reflect on Australia's place in the world and the world's influence on Australia. Past Lowy Lecturers have included German Chancellor Angela Merkel, Boris Johnson, now the Prime Minister of the United Kingdom, former CIA Director David Petraeus, Chairman of News Corp, Rupert Murdoch and two sitting Australian Prime Ministers, Malcolm Turnbull and John Howard who gave the inaugural Lowy Lecture in 2005. Tonight we are honoured that a third Australian Prime Minister will deliver the 2019 Lowy Lecture. Ladies and gentlemen, it's hard to keep up with everything that's happening in the world isn't it? In Washington we note that the odd connection between the Trump Administration and Australia continues. It started with that early phone call between President Trump and Prime Minister Turnbull which was described as hostile and charged and leaked to the Washington Post. And then Scott Morrison was in the White House when the Ukraine story broke which is leading to the current impeachment discussions. And now Australia is back on the front page of the New York Times because of a vast left-wing conspiracy supposedly orchestrated by that noted Australian Socialist Alexander Downer. In London Brexit is going swimmingly let's say. Here at the Institute we have been honoured to host Boris Johnson twice. In 2017 he gave an excellent Lowy Lecture from this podium and in 2013 he spoke to a smaller group when he was Lord Mayor. And for that event I did something I've never done for any other speaker. I actually went to Boris's hotel to pick him up and transport him to the Institute. Not because I was in awe of him but because I wasn't 100% convinced that he would make it there on his own. Of course when we got to the Institute he gave a typically brilliant speech and he had the audience in the palm of his hand. Meanwhile in Canada Prime Minister Justin Trudeau, once a darling of the media, is facing a series of scandals. In fact as someone remarked it's become so embarrassing that Canadians travelling overseas are starting to tell people they're American. Amidst all this chaos ladies and gentlemen the Institute has continued to focus on the big international questions. In 2003 our founder Sir Frank Lowy gave the Institute two missions to deepen the Australian foreign policy debate and to ensure that Australia's voice is heard abroad. We are proud of what the Institute has achieved over the past 16 years and this year has been exceptionally productive for us. We published influential research on subjects that matter to Australia including the Indonesian elections, women in Jihad and Russia's pivot to Asia. With Penguin Random House we published two outstanding new Lowy Institute papers. The first examines the Trump Administration's relationship with the West and the second looks at the backlash to China's President Xi Jinping. The world renowned Lowy Institute poll provided important insights into Australians views on issues such as climate change, foreign interference in our politics, trust in leaders and relations with our neighbours. The Institute's digital renaissance also continues. Last year I told you about the Lowy Institute Asia Power Index the most comprehensive effort ever undertaken to measure power in Asia. And since then we've taken the power index to four Asian capitals and to the World Economic Forum in Davos. In May we launched the second edition of the Asia Power Index at the Lee Kuan Yew School in Singapore. Only two weeks ago the Institute published the second edition of our Pacific aid map. This remarkable digital product provides unprecedented transparency in relation to aid flows in the Pacific. We have hosted Prime Ministers, Foreign Ministers and Scholars in Sydney, Melbourne and Canberra. And our experts have hit the road to participate in debates all over the world at the White House, the State Department and the Pentagon in Washington D.C. at the Council on Foreign Relations in New York on platforms in Beijing and London at IndoPaycom in Honolulu in front of sovereign wealth funds in the Gulf and at the Shangri-La Dialogue in Singapore. We've launched a new podcast called Rules-Based Audio and our wonderful online daily magazine The Interpreter continues to host the liveliest Australian debates about the world. And our work goes on. Next week we welcome the 2019 Rothschild Distinguished International Fellow the prominent American diplomat Ambassador Nick Burns and I'm pleased to announce tonight that next year's Rothschild Fellow will be Mervyn King, the former Governor of the Bank of England. And in a fortnight up the road at New South Wales Parliament House we will host our annual Lowy Institute media award dinner at which we recognise the best Australian media coverage of the world. This year's media lecture will be delivered by ABC Chair Ida Buttrose. Finally, ladies and gentlemen, in recent months the Institute has returned to our spiritual home at 31 Bly Street. And I would like to acknowledge the generosity of the Lowy family in completely renovating that magnificent sandstone building. This is an extraordinary gift to the Institute but also to Sydney and to Australia. If you haven't been to 31 Bly Street yet please come and pay us a visit. I'd also like to take this opportunity to thank our corporate and government members and supporters who are listed in the program for the invaluable support they provide to the Institute. And let me particularly thank the four sponsors of tonight's dinner Capital Group, Coca-Cola Amital, National Australia Bank and Centre Group. The Lowy lecture is a huge effort for us and we couldn't pull it off without the support of these outstanding companies. Finally, to all those who follow the work of the Institute thank you for reading, sharing and commenting on our research and attending our events and for participating in the Australian debate on the world. Ladies and gentlemen, to introduce the 2019 Lowy lecturer I'd now like to invite our founder and chairman Sir Frank Lowy AC to the podium. In this hall and indeed in this country, Frank needs no introduction. He's the former chairman of Westfield and Centre Group, a past chairman of the Football Federation of Australia and a former Lowy lecturer himself. His most important qualification to me of course is that he is the founding chairman of the Lowy Institute. Everything we have achieved at Bly Street has flowed from Frank and the Lowy family. Ladies and gentlemen, Sir Frank Lowy. Good evening ladies and gentlemen. When we've decided to establish the Lowy Institute nearly 20 years ago we did this in order to bring Australia to the world and the world to Australia. And I'm proud to be a previous speaker making the Lowy lecture last year. I'm delighted that tonight Prime Minister Scott Morrison has agreed to deliver the Lowy lecture for 2019. Scott Morrison is the 30th Prime Minister of Australia. Previously he was Minister for Immigration and then the Treasurer. And of course in May he won the unwinnable election. Perhaps the re-election of the Morrison government signals the end to the revolving door in the lodge. Well I certainly hope so. Australia needs stability. As a country we need a good government and stable government. Australia needs to succeed and be stable. Last year I was honoured to give the 2018 Lowy lecture in this beautiful town hall. In my remarks I argued in favour of immigration, innovation and building infrastructure to make Australia successful and bold. I think you should move this up a bit. I didn't exactly say what was up there, that was the problem. I knew that from time to time. Now I look forward to listening to this year's Lowy lecture. Please join me in welcoming the Prime Minister Scott Morrison to the stage. Well thank you very much Sir Frank and everyone who is here this evening. I can assure you that I'm totally signed up to the Sir Frank Stability Club when it comes to the revolving door in the lodge. Can I begin though by acknowledging the Gadigal people? Can I acknowledge elders past and present and indeed emerging? Can I also take the opportunity to acknowledge any serving men and women in the Australian Defence Force that are here this evening as well as any veterans who are here tonight and simply say on behalf of a very grateful nation. Thank you for your service. Dear Excellency the Honourable Margaret Beasley, the Governor of New South Wales and Mr Wilson of course to our 25th Prime Minister the great John Howard. It's wonderful to have you here John. Sir Frank Lowy, Chairman of the Lowy Institute and Michael Fully Love the Executive Director. To colleagues in particular, Matisse Corman, the Leader of the Government and the Senate, the Minister of Finance who I note is the longest this week became the longest serving Finance Minister in the Commonwealth's history. Congratulations Matisse. He's a very modest fellow and he will pay me back for that. I have no doubt. To all of those who have gathered here this evening it is a great honour to be giving this lecture this evening which bears the name of a great Australian, Sir Frank Lowy. When we see and hear this name we're reminded of what is possible in Australia. Sir Frank you had nothing yet you built an Australian Empire that reached far beyond our shores. Above all your name and your life reminds us that our most valuable inheritance is always found within in our character and we should acknowledge on a night like this that your character owes so much to that of your own father who we discussed at our table tonight. A man who suffered to death at Birkenau because he would not be parted from his tullet, his presure and his teffelin, the leather boxes with verses from the Torah. What character? What faith? And because of that faith and that example his son has become a great blessing to our nation. While your childhood Sir Frank was darkened by the Holocaust your eyes have always remained defiantly bright with hope for the future. And in your speech here last year you said this, the list of our blessings is long and that you believe Australia has never been in a better position to influence international events and to benefit from them. I pay tribute to the great Sir Frank Lowy. Now as a politician my instincts and passions I've got to tell you are domestic in nature despite though what has been reported of my activity on planes over the last year. But I am not one who naturally seeks out summits and international platforms but as Prime Minister you must always be directed by the demands of the national interest as has been the case for Prime Minister's past so much of Australia's future right now is being shaped by events and relationships well beyond our borders. Australia cannot be indifferent as a bystander to these events that impact our livelihoods, our safety and our sovereignty. We must as we have done previously cultivate, marshal and bring our influence to bear to protect and promote Australia's national interests. So tonight I'd like to talk about the new and challenging world that Australia faces and how my government is responding to these challenges. We are living in a world in transition the former US Treasury Secretary Hank Paulson has described this as an unusually delicate moment in time. I think he's right. A new economic and political order is taking shape about us. We have entered a new area of strategic competition amongst very great powers and not a natural result I must say of the shifting power dynamics that we've been observing in our modern, more multi-polar world and the globalised economy. There is much inevitable about all of this. It's a time of technological disruption some of which is welcomed, some resented, some feared. A time when global supply chains have become more integrated to an unprecedented degree and more of our economies are dependent on each other through global trade than at any other time including the major powers economically of the United States, China, Japan and of Europe of course is a block. There is both the promise and the threat of automation and artificial intelligence. There are fears overstated at least in my opinion of technological bifurcation a sort of economic iron curtain apparently coming down. It's also an era of continuing security threats. These haven't gone away. Terrorism, extremist Islam, anti-Semitism, white supremacism and just generally evil on a local and global level which is never far away. An era where pragmatic international engagement based on the cooperation of sovereign nation-states is I believe being challenged by a new variant of globalism that seeks to elevate global institutions above the authority of nation-states to direct their national policies. A polarization within and between our societies an area in which elite opinion and attitudes have become disconnected, unmoored from the mainstream of their societies and a sense of resentment and disappointment emerging which we can see in the polities particularly of western democracies. An era of insiders and outsiders threatening social cohesion provoking discontent and distrust. Now whether directly or indirectly these changes impact Australians' lives. It's not theory, it's real. Our jobs, what we earn, our living standards and the essential services we rely on that all depend on a strong budget and a strong economy. On our environment, our oceans, our coasts, our grazing and pasture lands currently so devastated by drought. Our water resources, our soils all depending on upon our practical conservation. On our safety, that depends on our national security afforded by our alliances, our defences, our diplomatic and intelligence capabilities, our adherence to the rule of law and most importantly our ability to enforce that law. G'day to Mick Fuller who's here tonight New South Wales Police Commissioner, good shy man. On our freedom, that depends on our dedication to national sovereignty. The resilience of our institutions and our protection from foreign interference. It's quite a list. But you know dealing with uncertainty is not new. You think it was the way you read about it. This is not the first time our children have grown up in a time of global tension and disruption. This is a context and perspective I fear is too often missing in our contemporary discussion of global issues and threats. My generation grew up under the threat of nuclear Armageddon hoping as Sting put it that the Russians loved their children too. My parents' generation grew up during the greatest global conflict in world history including the Holocaust. The invasion of what was then Australian soil in New Guinea, the bombing of Darwin and Japanese sub in Sydney Harbour sinking ferries. My grandparents grew up during the war to end all wars where every neighbourhood knew the costs as 60,000 Australians were killed in action and missing out of a population of not even 5 million at the time and who then went on to endure the Great Depression before backing up to fight to defend our freedom most particularly in my grandfather's case in the Middle East and the Pacific. Now those generations recognised these as existential challenges of their time and they were but they responded with a practical resilience an optimism, a resolve rather than the anxiety inducing moral panic and a sense of crisis that we sometimes frankly see too often in some circles today. At every stage we should have confidence because we have played in Australia our part as a force for good and we have prevailed in partnership with those who shared our outlook and our values. The key to our progress was individual like-minded sovereign nations acting together with enlightened self-interest the Marshall Plan the rebuilding of Japan the Colombo Plan a cooperative and respectful internationalism on occasion these efforts were forged through international institutions established to serve the states that form them on other occasions the work was done by looser coalitions of partners but in all cases it was the principled action of nation states most often led by the United States binding together the liberal democracies of the western world and in all cases these actions were underpinned by the common values that anchor these societies as I recently reminded the United Nations General Assembly these shared values filled the vacuum to win the great peace to provide the stability to achieve the prosperity and extend the liberty essential for this human spirit to thrive now we can never be complacent or take comfort though that the achievements that have been won are permanent they require eternal vigilance as we're reminded every time we walk into an RSL to preserve this legacy in the face of the uncertainties of our modern world we must simply first approach the future with the same optimism, confidence and resolve of previous generations and through our commitment to the values and beliefs that have always guided our way now the approach my government is taking is based on this firstly know who we are and know what we stand for and allow this to drive and guide our constructive engagement in and the expectations of our international cooperation including those global institutions and ensure that our national interests remain always paramount secondly to build a strong open economy here at home connected to global prosperity enabling our capacity to protect and pursue our national interests thirdly know where we live and work to promote stability, prosperity, engagement in our own region, the Indo-Pacific by championing the common interest of sovereignty and independence as the natural antidote to any possible threat of regional hedging and finally maintain our unique relationships with both the United States our most important ally and China our comprehensive strategic partner and keep them in good order by rejecting the binary narrative of their strategic competition and instead valuing and nurturing the un-conflicted benefit that can arise from our close association with both we don't have to choose knowing who we are and what we stand for is as true today as it ever was and we will continue to bring clear objectives and enduring values to our international engagement freedom of thought, expression, spirit, faith our humanity, inalienable human rights freedom of exchange, free and open markets free flow of capital and ideas freedom from oppression, coercion freedom of choice we don't talk about these things enough probably with our kids you know and they are under threat not just from the direct challenge of competing world views that are profit around the place but frankly the complacency of western liberal democratic societies who've forgotten too often that they owe their liberty and prosperity to these values Australia does and must always seek to have a responsible and participative international agency in addressing global issues based on these values but it has to be a positive and practical globalism our interests are not served by isolationism and protectionism but it also does not serve our national interests when international institutions demand conformity rather than independent cooperation on global issues the world works best we believe, I believe when the character and distinctiveness of independent nations is preserved with a framework of mutual respect and this importantly includes respecting the electoral mandates of their constituencies we should avoid any reflex towards a negative globalism that coercively seeks to impose a mandate from an often ill-defined, borderless global community and worse still an unaccountable internationalist bureaucracy globalism in a positive light facilitates, it aligns, it engages rather than directs and forces and centralises as such an approach can only corrode I think support for genuine and sustained joint international action of which we want to be a part you know only a national government especially one accountable through the ballot box the rule of law can define its national interests we can never answer to a higher authority than the people of Australia and under my Prime Minister, Australia's international engagement will be squarely driven by Australia's national interests as it has in the past to paraphrase John Howard the Prime Minister who is here with us this evening as Australians, we will decide our interests and the circumstances in which we seek to pursue them this is a great philosophy of the party which I lead and it's important in our international outlook this will not only include our international efforts to support global peace and stability and promote open markets based on fair and transparent rules but also other global standards that underpin commerce investment and exchange when it comes to setting global standards we've not been as involved as we could be we cannot afford to leave it to others to set the standards that will shape our global economy pursued through these institutions so I'm determined Australia will play a more active role in standard setting and I've tasked the Department of Foreign Affairs and Trade as well as our incoming Ambassador of the United Nations with a task with DFAT undertaking a comprehensive audit of global institutions and rulemaking processes where we have the greatest stuck and to get us involved and I want to send a message here tonight that I'll be looking to those in this room and other places to tap on your expertise Australian expertise to assist us in our efforts now ladies and gentlemen the foundation for robust, incredible Australian engagement abroad is of course dependent on a strong economy at home without one you can't protect the living standards of our people without one a strong economy you can't keep our people safe protect and preserve our environment guarantee the essential services of Australian reliance and you can't invest in national defence and global order that's why bringing the budget back into balance and keeping it there is so important a strong budget is a cornerstone of Australian sovereignty in an uncertain world we intend to maintain it we are one of only 10 nations with a triple A credit rating from all key rating agencies at the same time we are pursuing the most ambitious trade strategy in Australia's history 1 in 5 Australian jobs is now dependent on trade that's why I get on planes we have concluded or a negotiating trade deals with 17 out of our top 20 trading partners we are working towards an agreement with the European Union and we stand ready to swiftly secure a trade agreement with the United Kingdom as soon as they are in a position to do so in post-Bredgate the UK I believe will become an important partner and global voice in our shared advocacy for rules based trading systems and the benefits of open and fair trade in the last six years we have secured duty free or preferential access for our exporters to an extra 1.7 billion consumers 70% of Australia's two way trade is now covered by our trade agreements up from just 26% when we were first elected in 2013 today's trade data confirmed once again it's the longest consecutive run in monthly trade balances in 45 years and for the first time since 1975 our current account is actually in surplus we're working to revitalise and modernise the global trading system to ensure it matches the speed of change in e-commerce and embraces opportunities of the digital economy at home we were lowering taxes removing the burden of over regulation embarking on an overdue structural reform of our vocational training sector an important reform to ensure we are meeting the dynamic skill needs of our growing economy and we're building the transport energy and water infrastructure our economy needs to grow transport infrastructure alone over 100 billion with almost 10 billion this year this is all part of the comprehensive national economic plan we're implementing to keep our economy strong now thirdly ladies and gentlemen of course our approach to the world is shaped by where we live we are an Indo-Pacific nation we are playing our part to build a secure prosperous and inclusive Indo-Pacific of independent sovereign and resilient states we have started with our Pacific stepper Australia's national security and that of our Pacific family our Vavali, our Fauna are intertwined this is a practical partnership supporting economic stability and prosperity and strengthening resilience and security our relationships with other nations in our region are flourishing we have just concluded a landmark partnership agreement with Indonesia and the implementing legislation will be in parliament when we return and I look forward to attending the inauguration of the re-elected President Wadodo later this month in August we further strengthened our relationship with Vietnam a nation of real consequence in our region last year we elevated our relationship with Vietnam to a strategic partnership and that reflects our shared strategic interests and determination to expand our cooperation even further ASEAN is at the core of our conception of the Indo-Pacific next month we, our Asian partners and other nations in the region hope to conclude the regional comprehensive economic partnership which will embrace 16 economies with a combined population of 3.5 billion people and a combined GDP of 25.7 billion dollars US the special importance of this agreement is that it will draw India more substantially into the Indo-Pacific economic community India is a great success story of our region a land of durable institutions and shared values with Australia it makes them a natural partner for Australia so I have been very honoured to accept the invitation of my friend Prime Minister Modi to visit India in January including to deliver the inaugural address at the Rossina dialogue this visit will be accompanied by a business delegation that I have invited Ashok Jaipur who is here with us tonight who has chair of the Australia India Council Board to lead that delegation this will bring government and business together to pursue our India economic strategy that has captured the intention of our Indian partners and we must now realise it my visit will be another step in the top tier of Australia's partnerships last week we took another step when foreign ministers of the Quad countries the United States, Australia, India and Japan met in New York together this was the first time the Quad has met at a foreign minister level our government has worked patiently to restore trust and confidence following the Rudd government's decision to disconnect from the Quad now I am pleased we have been able to restore this important forum for Australia and the region the key forum for exchanging views on challenges facing the region including taking forward practical cooperation on maritime, terrorism and cyber issues it also complements the role of ASEAN and ASEAN-led architecture in the region and this has been achieved with Australia's steadfast friendship and support from Japan which is broader and deeper than ever Japan is our special strategic partner our second largest trading partner and ally of the United States Prime Minister Abe is not only a great friend of Australia but also one of the region's elder and most eminent statesmen and that's why I'm also pleased to accept Prime Minister Abe's invitation to meet with him in early next year in Tokyo and I also intend to put more effort into our relationship with the Republic of Korea building on our significant trade energy and infrastructure ties which we have again met recently with President Moon and we have agreed that our relationship has significant further potential including in hydrogen, critical minerals and security and of course we would simply add that in the Indo-Pacific it would be even far stronger if we're able to support Japan and Korea overcoming their current tensions Ladies and gentlemen I can report from my most recent visit to the US that the state of our relationship with our biggest and most significant ally is strong our alliance with the United States is our past it's our present and it is our future it is the bedrock of Australia's security and it's one that we contribute to as we undertake the greatest peacetime recapitalisation of our defence force ever depending on defence to 2% of our GDP we carry our own weight in this relationship and that is respected in the United States at the highest level deep US engagement in the Indo-Pacific is essential for maintaining stability and prosperity for Australia but even during an era of great power competition Australia does not have to choose as I said earlier between the United States and China China is our comprehensive strategic partner the strategic importance of our relationship is obvious and clear China is a global power making significant investments and military capability as a result of its extraordinary economic success it is the major buyer of our resources globally it has a profound effect on the regional balance of power it's now the world's second largest economy accounting for 16% of world GDP in 2018 the world's largest goods exporter since 2009 and the world's largest trading nation since 2013 it's the world's largest manufacturer it's the world's largest banking sector it's the world's second largest stock market and the world's third largest bond market not bad for a developing country and the world's largest holder of foreign reserves we have benefited massively from economic rise in China that's why we celebrate it China has benefited from Australia's reliable supply of high quality energy resources, agricultural goods and increasingly services it's a two way street we both benefit it's why we've got a comprehensive strategic partnership China has in many ways changed the world in my lifetime so we would expect the terms of its engagement with the world to change also it's a natural consequence that's why when we look at negotiating rules the future of the global economy for example we would expect China's obligation simply to reflect its greater power states it's a compliment it's not a criticism and that is what I mean when describing China as a newly developed economy the rules and institutions that support global cooperation must reflect the modern world it can't be set and forget we're in very patient and in conclusion let me simply say that we will continue to stand up for Australia we will continue to defend Australia's reputation at home and overseas we will defend our interests we will defend the jobs of Australians, their living standards the environment they live in the cohesive and tolerant society that we celebrate the most successful immigration nation and multicultural society our kids opportunities for the future we will strive to protect what I call the promise of Australia to every Australian a promise that was made to a young Frank Lowey to enable him to become everything that he could be that promise is now being kept to millions more Australians who have come to this wonderful country to make a contribution and not take one to protect our laws our unique lifestyle and freedoms and make Australia stronger and who along with all Australians continue to make our nation the envy of the world so to conclude how good is Australia Sir Frank and may it ever be so thank you for your attention thank you well thank you Prime Minister for delivering a very substantive lecture one that will be read closely and in foreign capitals in coming weeks this is I think the fifth time you've spoken to the institute you spoke to us twice as shadow immigration minister as immigration minister as treasurer and now as Prime Minister it's quite an upward trajectory I think the timing this time has been particularly clever on our part and let me go to the United States if I can you're just back from a success we're going to do this on the phone it's not too soon some congressman think it is too soon but PM you're back from a successful US visit you had the first state dinner with the president since Mr Howard and George W. Bush you're one of very few democratic leaders who has struck up a really warm relationship with the president what's your secret? know who you are, know what you're about and take everybody you know at their word I mean you don't know not naive about these things but people are people it doesn't matter whether they're presidents or kings or queens or whatever role they happen to be in these engagements I said this recently when we had all of our heads of mission in Canberra and I reminded them that while it's terribly fascinating right the luminous cables dissecting the great strategic shifts of our time their fundamental job was there in the people business and their job is to connect with other people in the governments they're trying to connect with in the countries where they're serving us and my job's not much different to that we get tremendous support from the institutions and I know there are many of our senior leaders in our public service here tonight for the great job they do but it is about making those connections and being as upfront as you can be not giving people surprises and listening carefully and how do you find President Trump as an interlocutor what's he like to negotiate with what's he like to talk to? he's pretty straight up I mean Frank and I were chatting before when I first met Frank I was in the property industry so I suppose that gave me a good insight and people I find can often be quite transparent and you know the job's made a lot easier because you know it was personally very kind for Jenny and I and I thought Jenny did an amazing job to have that person invitation to go and share that evening but you know it wasn't about us it wasn't about him and Melania did an amazing job the attention to detail that she put into that night expressed a lot about the respect they had but it was about the respect for Australia and I'm sure John felt the same way when he was at a similar occasion many years ago the respect between Australia and the United States is deep it's forged in the most extreme of circumstances investors in New York on the Friday some of the biggest investors in Australia their constant message was Australia we trust you it's stable it's safe we share values it's predictable we are the safe port in the storm and in a global economy that looks like the one we're currently in I'm happy we're us this week we learned that the president called you about the president's role in the 2016 election and potentially the Mueller investigation and you said yesterday that of course we said we'd grant the request and you'd do that to an ally that makes sense but can I ask you isn't it inconceivable the idea that someone like Mr Downer a former conservative foreign minister would be in cahoots with the deep state in various allied countries to intervene in the US election isn't it a ridiculous proposition well in your introduction Alexander's always been a big lefty as we know him and Nick mention big lefties the woke pair I think I think not but putting that to one side look the fundamentals of this are pretty straightforward it wouldn't matter which president or which attorney general for an Australian prime minister conducting an official investigation into whatever matter it would be extraordinary of any prime minister in those circumstances to deny what was a very straightforward request and frankly one that had already been communicated by our ambassador that we were happy to cooperate with because A, we're not a party to the investigation B, we're not the subject of the investigation and C, we haven't got any issues so if this assists that issue to come to some sort of close which is a matter for US domestic politics we'll fine our simple granting of a very reasonable request to our most deeply entrusted and respected ally is I think a fairly unremarkable of it let me ask you about China if I can China is now a huge media story in Australia every day there are front page stories about China whether it's Hong Kong or Xinjiang or political donations or cyber hacks or foreign investment or the detention of Australian citizens or the trade war it's just relentless so can I ask you how does a democracy like Australia how do we manage a relationship with a nation like China that is so different from us that is run by a Leninist political party in our national interest full stop that's how you do it and you need to know what they are and how they're impacted I think one of the ways we are I contend successfully managing this relationship is just being incredibly consistent we know where our lines are we know where our benefits are we know where they're shared we know where we disagree we are careful in the way we engage in what we say and what we do we don't concede we don't step back and you know in any relationship stability is incredibly important we're not a variable in this relationship and we're not a variable because our government has a very clear understanding of what our national interest is and who we are and what we hope to achieve and the stability we seek to foster in the region stable region everybody wins I don't think a prime minister has been to China since what about 2016 it's been a while I was last there as treasurer in 2017 do you hope you'll be going to Beijing soon? well I'd be happy to go but you know I'm not waiting by the phone and nor should Australia be if they would like to invite us to come to China we'd be happy to go and I'm pleased by you know in the last month we've had two meetings between our foreign ministers our trade ministers have been me I spoke to the ambassador just the other day so I think we should be careful about over interpreting some of those events and you know we'll continue to engage in the way we have and we're happy to go if that doesn't transpire then it's not troubling me you mentioned in your speech that China had changed the world in many ways in your lifetime and we saw that even in the last week we saw these two incredible demonstrations of Chinese power you saw the ICBMs rolling through Tiananmen Square and you saw Hong Kong demonstrations being put down by authorities I mean when you look at that aren't there worrying overtones from those two Chinese power? Well they're not hard to miss and you need to be very wide eyed in understanding all the points that you've just made and particularly the situation in Hong Kong has been troubling for some time and that's why we have been counselling a restraint broadly very broadly you could say that has occurred but not always and we would hope that constraint and restraint I should say restraint would prevail but the fact that China has become such a strong economic and military power I'm constantly surprised at the surprise about this I mean what was the point everybody said we should and this happened a generation ago and more let's engage with China let's bring them into the global community in the Exile what did we think we were doing that for them to stay exactly where they were that their economic development would not lead to some of these other things and change the bow balance in our region I mean whoever wrote that paper that said it wasn't going to end up like that I hope it's not still working for the Australian Government they didn't work for the Lowe Institute I mean this is what I find surprising this is the inevitable result of the path that we deliberately got on and so I think it's important in responding to it is not to get too emotional or outraged that this has occurred but simply to practically understand it as a natural consequence of where the world and the global economy has got to see when you look at it like that and go well okay so the trade rules have to be adjusted to respect that and the balance and cooperation of nations that sit within the Pacific well that will change a bit but if you look at this as some great ideological struggle between two world views well that can take you to a very dangerous end and I don't subscribe to that analysis I don't think it's in Australia's interest finally let me bring you closer to home let me ask you about the Pacific it's been quite unusual actually for a Prime Minister in making the Pacific your signature foreign policy sort of region early on I think for example today you announced you'd be going back to Fiji next week which I think is a third or fourth time in a year that an Australian PM has stopped in Fiji why do you feel so strongly about the Pacific well there are many reasons and personally I have a deep connection with the Pacific and so from I was a very young boy but that's really not the point the point is that our Pacific family and their success their independence, their sovereignty their resilience is important to Australia because it creates a stable arc around our our domain the Pacific is not our domain, it's their domain but our domain, our waters, our territories and this is the same reason why I think one of Australia's greatest achievements was the Ramsey initiative which the former Prime Minister Howard should be absolutely proud of and you know that when I was in the Solomons recently and I was standing at the parade ground of the Royal Constabulary this is a Royal Constabulary that Australians trained, built and at the very moment when their nation was facing its greatest test since the the events that led to Ramsey an election held an uprising and a revolt that sought to overturn an elected government the one thing standing between democracy and stability prevailing in the Solomon Islands and those rioting on the streets was the Royal Constabulary that was trained by Australians and they stood up, they're national heroes and they should be very proud and everyone who served whether in a police uniform a de-fat uniform a military uniform, whatever they did they should feel very proud of that precise moment because history often comes down to those moments and that was 16 years in the making an arc of stability of resilience of independence, of sovereignty in the Pacific is very important to Australia what happens many, many years ago when the Pacific falls and when the Pacific is the target of aggressors it's very important that we maintain those bonds and the stronger they are the better Australia is and the greater our national interests are served the underlying part to it though frankly is we are family that relationship goes beyond I think any other it is a deep family relationship and that's how also it's seen families also argue and there was a lot of noise there were a few family arguments at the Pacific Islands Forum in Tuvalu and criticism of Australia is there any sense that our climate policies are a drag on our influence in the Pacific one of the things I was pleased about at the Pacific Islands Forum was it was a long night but it also gave me the opportunity with all the other leaders to take through what we'd actually been doing which they were not aware of and the Prime Minister Samoa in particular said could you actually put that down on one sheet of paper for me I've never heard that before they have responded to many things that they understood to have been what Australia's position was and actions was but was surprised to learn of the detailed information I was able to provide to them but that said I understand the deep passion and feelings that they have on that particular issue and that's why I was at pains to stress to them how seriously we take it and what we do whether that will ever completely satisfy some I think is an open question but is it impacting I think fundamentally the nature of the deep relationship we have as a family no I don't I think Frank and I have an excellent relationship he wasn't terribly happy with me that morning he was texting me from the plane the second he got off back and served her quite friendly that's the nature there's give and take there's respect I respect the fact that he feels as strongly as he does I'm certainly not offended by it because I know he's speaking it to me from a deep place of conviction and how can I do anything other than respect him for that you've travelled quite a lot as Prime Minister you've visited a lot of countries what has been the most memorable moment on the international stage that you've had as PM would there be one moment that sticks out and it happened in Australia standing in the silence beside the Prime Minister of Japan Shinzo Abe as we later reefed in Darwin it was intergenerational it was beyond current events it was a moment of it's a very emotional thing it was a moment of generational healing an act of grace from a great leader for which I will be forever grateful to him for well thank you PM thank you for taking our questions thank you for showing for telling us a little bit about what it's like to be the Prime Minister I want to wish you luck on behalf of everyone here as you represent our country I will come back in a little while to introduce Penny Wensley to move a formal vote of thanks but before I do so can I please ask you to join me in thanking the PM for giving such an important speech and for taking my questions thank you ladies and gentlemen to move the formal vote of thanks to the Prime Minister I'm pleased to call upon one of the Lowy Institute's the Honourable Penny Wensley AC Penny had a long and distinguished career in the Diplomatic Service serving as Australia's Consul General in Hong Kong Ambassador to the United Nations Ambassador to France and High Commissioner to India she also served as Governor of Queensland from 2018 to 2014 ladies and gentlemen please welcome Penny Wensley Your Excellency the Honourable Margaret Beasley Ambassador of New South Wales Prime Minister Your Excellencies members of the Diplomatic and Consular Corps distinguished guests ladies and gentlemen it's my privilege as a member of the Board of the Lowy Institute to propose the formal vote of thanks this evening to the Prime Minister for delivering the Lowy Lecture for 2019 and for sharing with us aspects of your views Prime Minister and those of the Government you lead on the management of Australia's international relations and on the conduct of foreign and trade policy it's an additional privilege and a personal pleasure to be able to propose this vote of thanks in the presence of the founder of the Lowy Institute Chairman Sir Frank Lowy and of former Prime Minister John Howard whose memorable landmark address in 2005 on Australia in the World launched this annual lecture series at that time John Howard had been Prime Minister for nine years on considerable experience on the international stage and of dealing with regional and global challenges to shape his thinking and produce the thoughts and the vision that he laid out to that first Lowy Lecture audience in your own case Prime Minister just 13 months leading the Government not yet five months before the federal election and with big domestic preoccupations and challenges to address and you've already reminded us that that's the core focus for you including the floods and the fires and droughts that have been ravaging so many parts of Australia I actually thought when we discussed on the board whether we could extend an invitation we thought that you might say well no I'm pretty busy and this one can wait I also thought maybe your advisers might say to you well maybe next year but the thing is you didn't say that you took it on and you have delivered handsomely for us this evening presenting a clear strong message about the way in which you and your Government intend to pursue the conduct of Australia's international relations there's been enormous interest and commentary on your most recent overseas travel and just as much about one place that you haven't yet visited but even though you said you really don't relish this aspect you explained to us why you get on planes I actually think it's a pretty impressive record of stepping up to do things on the international stage that you have given us in the 13 months since you became head of our Government in the not yet 5 months since the federal election there have been a few references as we've been going through this evening in your own lecture in the Q&A with Michael but I think it's very important for commentators who are really absorbed about international relations to step back from the focus that they give in surges and in patches on some of the things that you're doing and have a look at how much territory literally and figuratively that you have covered in stepping up to deal with these international issues and challenges since August 2018 by my count 18 international visits to 16 countries 5 summits and you said you don't seek out the summits but they want to hear from you and you were there ASEAN, APEC, G20 twice, G7 5 visits to Asia including very deliberately and symbolically as your first overseas visitors Prime Minister to our nearest neighbour Indonesia and we've heard tonight that you're going back again shortly 6 visits to the Pacific again sending some very strong signals about the importance of the Pacific 1 flying visit to the Middle East to Iraq to Europe and 1 most recently to the UN and in every location Prime Minister you've added a little more definition to the picture and a much clearer sense of the ideas guiding your approach I always find it very instructive to go back and read the maiden speeches of our parliamentarians and tonight listening to you talking about a strong Australia and Australia being a strong nation was very, very reminiscent of your maiden speech delivered on Valentine's Day 2008 when you said I want to share the values and the vision I intend to bring to the House my vision for Australia is for a nation that is strong prosperous and generous strong in our values and our freedoms strong in our family and community life strong in our sense of nationhood there was a consistency in that message tonight that I think will bring to many people you gave us some nuances there are some things that are going to be poured over by the commentators I think there will be particular interest for example in your talking about negative globalism I think there will be particular interest in your expression of determination that Australia will play a more active role in international standard setting and there were a number of other things and I'll leave that to all of you to go back re-read the lecture and identify for yourself where those nuances are but above all what I liked was the strength of the message this was a message about stability pragmatism an assertion and a defence of national interests an overwhelming message about practical partnerships and our approach to the world being shaped by where we live there was another thing that you said Prime Minister in your original maiden speech in the parliament you said I like my history in high definition wide screen full vibrant colour well we certainly got some high definition tonight and I think that screen and our perception is the way in which you intend to pursue the defence and the promotion of Australia's national interests on the world stage and in our region is very, very clear high definition wide screen with just a touch of colour particularly in your Q&A with Michael at the end Prime Minister my sense is that you are the only one in the least from what you said about your visit to the US we couldn't match tonight the 19 gun salute the massed military bands or the singing sergeants that faded you at the White House but we have produced tonight in this historic setting of the Sydney Town Hall an absolute keenly interested to hear what you had to say keenly interested to know how you intend to prosecute the defence and the promotion of Australia's interests in the future you delivered a strong message tonight you maintained a strong tradition of this lowly lecture for that we are most grateful ladies and gentlemen please join me in expressing warm appreciation to the Prime Minister for his presentation of the lowly lecture for 2019 Thank you Penny you captured it very well high definition, wide screen they like their wide screens in the Shire let me add my thanks to the PM, to Penny's thanks thank you Prime Minister for doing us the compliment of giving us a really substantial lecture but also of agreeing to do the Q&A and showing us a little bit of the human emotion with that anecdote about the meeting with Shinzo Abe in Darwin the PM said to me afterwards that he prefers Q&As to lectures they're more fun so quick as a flash I asked him to come back and do an in conversation at the institute so in a year or two we'll see if we can get him back to do that ladies and gentlemen I want to take the opportunity before I finish to thank outstanding colleagues at the Lowy Institute the planning for an event like this takes months and I'm proud that we have pulled off such an exceptional undertaking so soon after moving back into 31 Bly Street everyone at the institute has contributed to tonight's success but in particular let me thank Sarah, Andrea, Jen, Ali, Sophia, Erin, Alastair Lara, Lydia Tara and Steven for putting on such an elegant evening I'm really grateful finally ladies and gentlemen thank you all for joining us tonight we look forward to seeing you at 31 Bly Street soon have a good evening thank you