U.S., Australia to Discuss Supplies of Rare Earth Minerals, Clinton Says

By Nicole Gaouette
Nov 6, 2010
Source: Bloom Berg

Secretary of State Hillary Clinton said high-level talks between the U.S. and Australia will focus on China’s monopoly over minerals used in military systems and its claims to the South China Sea.

“We want to see China’s rise be successful, bring benefits to the Chinese people, but to take on greater responsibility and a rules-based approach to all of its neighbors,” Clinton said in an appearance with Australian Foreign Minister Kevin Rudd.

Clinton is in Australia to mark the 70th anniversary of formal diplomatic relations between the two nations. She and Rudd issued a statement affirming the alliance and its shared commitment to democracy, “an international, rules-based order,” and the strengthening of regional institutions.

“Our relationship continues to be a strategic anchor of security and prosperity in this region and beyond,” Clinton said as she began the two-day visit. “We have a very full agenda over the next two days.”

One topic on the agenda will be the need to develop alternate sources of rare earths after a slowing of exports from China raised questions about supplies of the minerals, she said.

Rare earth minerals, a group of 17 metals that includes neodymium, samarium and dysprosium, are used in military hardware such as missile guidance and radar systems. China now controls about 97 percent of the rare-earths supply.

Beijing reportedly cut exports of rare-earth minerals in October. Clinton said the prospect of a future slowdown “raised questions” in many nations about whether it is “wise to be dependent on a single source for elements that are critical to the most advanced civilian and military technology.”

Shipping Route

The U.S. and Australia will also discuss China’s claims to the South China Sea, a major shipping route. Those claims have strained relations between China and its Southeast Asian neighbors, which also claim parts of the maritime passageway.

Earlier today, Clinton and Rudd discussed food security, violence against women and their Monday meeting with the U.S. and Australian defense ministers. Those talks will focus on the war efforts in Afghanistan, cyber-security, counterterrorism and the peaceful uses of space, Clinton said.

Clinton will meet with Prime Minister Julia Gillard tomorrow to discuss nuclear nonproliferation, human rights, climate change, trade and educational exchanges. Clinton will also give a speech at the University of Melbourne about adapting the alliance to 21st century challenges.

Clinton is on a two-week tour of the Asia-Pacific to reaffirm U.S. engagement, bolster alliances and assert its leadership. The trip, Clinton’s sixth to the region since taking office, included stops in Vietnam, Malaysia, Cambodia, China, New Zealand and energy-rich Papua New Guinea.

Obstacles

The U.S. and Australia reaffirmed their “dedication” to strengthening groups such as the Association of Southeast Asian Nations and the East Asia Summit.

Progress on that front may be difficult, said Joshua Kurlantzick, a fellow for Southeast Asia at the Washington-based Council on Foreign Relations, a non-partisan policy group.

“The U.S. and to some extent many other outside countries get frustrated by the lack of architecture in Asia, and the slowness and often inability to do anything of ASEAN and the other regional organizations,” Kurlantzick said in an e-mail. “That’s just not their way. Ultimately the decisions will be made by countries in the region.”

Clinton said the U.S. and Australia will put special emphasis on development work. “Along with defense and diplomacy, development is the third pillar of America’s foreign policy,” Clinton said.

The countries’ statement included an announcement about Australia’s commitment to give $14.5 million to UN Women, a new United Nations institution, to support women’s empowerment and equality. The two nations’ development agencies will collaborate on efforts to reduce violence against women and poverty in general.

Rudd said 30 percent of women experience violence in their lifetime. “We’ve got a responsibility not just to observe this but to act upon it,” he said.

To contact the reporter on this story: Nicole Gaouette in Melbourne at ngaouette@bloomberg.net;

To contact the editor responsible for this story: Bill Austin in Tokyo at billaustin@bloomberg.net