Howard seeks defence commitment from NZ

SYDNEY - Australian Prime Minister John Howard has told Helen Clark that New Zealand needs to make the "strongest possible" defence commitment to the Anzac alliance.

New Zealand was a sovereign nation making its own decisions and Australia accepted that.

"For a whole host of reasons we would like the strongest possible defence commitment and provision from New Zealand," he said.

"Like any other country, New Zealand recognises that there are strategic and operational consequences attached to any particular decision."

Mr Howard was speaking to reporters after his talks with the New Zealand Prime Minister in Sydney.

On New Zealand's contribution to paying part of Australia's welfare bill, he said there was no need to find difficulties that did not exist.

A reporter asked him if Australia was looking at limiting New Zealand migration across the Tasman, which has been increasing steadily during the 1990s to reach 35,000 last year.

Mr Howard said Australia wanted to continue to have an "open, welcoming association with our friends in New Zealand."

"Obviously every country has a right to look to the net economic and other outcomes. New Zealand has views on that. Australia has views on that. Let's not get excited and create a difficulty that does not exist."

He said his talks with Helen Clark had been very direct and constructive and covered most areas of the bilateral relationship.

On defence, he said it was no secret that New Zealand and Australia had difference perspectives, with Australia placing a high priority on its association with the United States.

"That's a matter of open record and understanding," he said. "That does not prevent the two countries working together very closely, and we did in East Timor."

Helen Clark's 24-hour trip to Sydney, her first to Australia as Prime Minister, was preceded by attacks from Australian defence analyst Professor Paul Dibb and the Australian newspaper on New Zealand defence policy.

Helen Clark, speaking at her joint press conference with Mr Howard, repeated the New Zealand stance, that it wanted to continue its ongoing and close defence relationship with Australia.

"Nothing has changed about that, whatever the semantic arguments through the media are."

Her comment was in reference to her statement that Australia and New Zealand were not a "single strategic entity," a phrase used in 1998 during talks between the Defence Minister in the Shipley Government, Max Bradford, and the Australian Government.

This week, the Australian took Helen Clark's statement as signifying a fundamental shift in New Zealand defence policy.

Meanwhile, both Mr Howard and Helen Clark ruled out monetary union between Australia and New Zealand.

Mr Howard said it had not been on the agenda in his discussions with previous New Zealand Prime Ministers Jim Bolger and Jenny Shipley. "It did not occur in the leadup to this discussion," he said. "I don't think it's going to occur to me tomorrow or next year."

Mr Howard and Helen Clark agreed on the terms of reference for a full review of social security arrangements between the two countries.

New Zealand has agreed to give Australia $A125 million ($156 million) this present financial year and $A135 million next year for the cost of providing social security to New Zealanders in Australia. The interim arrangement will continue until a new social security agreement is in place.

- NZPA