THE TTALK QUOTES


On Global Trade & Investment
Published Three Times a Week (with occasional bonus quotes) by
The Global Business Dialogue, Inc.
Washington, DC  20006
No.43 of 2020
FRIDAY, JUNE 12, 2020

Click HERE for yesterday’s quote from Ngozi Okonjo-Iweala, Nigeria’s candidate for the position of WTO Director-General. 
AGRUABLY A BAD TRADE

"You can't mortgage the strategic security of 25 million — and in the future more Australians — just to make a quick buck for a local political problem you have at the time … .”

Neil James
March 11, 2019 (Publication date)
CONTEXT
Darwin, Australia, population 148,564, is the capital of the Northern Territory, the home of Charles Darwin University, and, as the name suggests, the home of the Port of Darwin on the Timor Sea. In 2015, the government of the Northern Territory leased the port to a Chinese company, the Shandong Landbridge Group, for the princely sum of $506 million. (We assume that sum is in Australian dollars, so about $346 million U.S.) The lease was for 99 years with 96 years yet to run.

As today’s featured quote suggests there are a number of people who think the lease was a grave mistake and many who would like to see the deal reversed. One of those, obviously, is Neil James . Mr. James is the Executive Director of the Australian Defence Association. Another is the chairman of Parliament’s Joint Committee on Intelligence and Security, Andrew Hastie .

COMMENT
It seems unlikely to us that there will be any change in the status of the lease in the near term. That said, we expect the lease of the Port of Darwin will remain a high-profile bone of contention for the foreseeable future. Alas, it is both a symbolic and a tangible expression of the U.S.-China tensions that touch almost every corner of the globe.  But that statement needs two qualifiers (at least). The first is our strong view that Australia would find itself in a vigorous debate over its relationship with China even if the United States were not part of the picture.

The second qualifier is that the reference to Australia and U.S.-China tensions isn’t based just on conjecture and the difficulties that have arisen in Australia’s trade with China in a range of products from coal, to beef, to barley. No the Chinese have framed the issue more starkly. This passage from a recent article in Advance Australia makes the point: 

Journalist Miranda Devine writes that it was just last September that CCP official Professor Wang Yiwei was sent to Australia to give us a blunt message: “If there is a war between the United States and China you are the frontier, you are the first to be sacrificed”.

To return to less incendiary but still controversial issues, there is the whole question of Australia’s relationship to China’s Belt and Road Initiative. Our understanding is that Australia as a country has not signed on. The state of Victoria, however, has and that is another bubbling issue. (More on that in some later entry.) From our distant vantage point, it is not clear whether Adam Giles, the chief minister of the Northern Territory in 2015, thought of the lease of the Port of Darwin as a piece of the great Belt and Road puzzle.  Ye Cheng , however, the owner of the Landbridge Group, did see it in those terms. In 2015, he told Xinhua:

Landbridge has a port in Rizhao [eastern China] and now we have a port in Darwin.  This is our involvement in One Belt, One Road.

***

When we started browsing the web for articles on Darwin, New Territory, earlier today, one of the first we came across included a picture of a handsome young U.S. Marine, having his nose swabbed by fully gowned nurse. He and his unit had just arrived in Darwin for an annual exercise they conduct there with Australian forces, but first they have to undergo COVID-19 testing and 14 days of quarantine.  

No doubt the Chinese interest in the Port of Darwin was and is wholly commercial. Still, this annual U.S.-Australian military exercise probably did not escape their notice. 

SOURCES AND LINKS
The Darwin Lease: How and Why takes you to the in-depth story on this issue that the Australian Broadcasting Company published in May 2019. This was the source of today’s featured quote from Neil James.  

Landbridge and the PLA is a link to a story published by The Australian in November 2015 which highlights connections between the Chinese company that has leased the Port of Darwin, Shandong Landbridge Group, and embodiments of Chinese state power, namely, the Chinese Communist Party and the People’s Liberation Army.  

Australian Defence Association is a link to the website of this organization, which describes itself as a think tank devoted to security and defense issues. 

Another View takes you to a report on the Darwin lease from the Financial Review. This article includes the above quote from Ye Cheng. 

A Yearly Event takes to you an Australian Broadcasting Company (ABC) story on the arrival of a contingent of U.S. Marines in Darwin earlier this month. 

In the Event of War is a link to the Advance Australia article mentioned above with the quote from Professor Wang Yiwei. 

TO GET THE TTALK QUOTES IN YOUR INBOX
Or Other GBD Notices, click below.