you can watch the senate like when the gavel and at noon eastern. also later senators are expected to debate several other administration nominees including ben carson to be housing secretary. also rick perry for energy secretary. you can watch all that right here on c-span2. tomorrow president trump will be delivering his first address to a joint session of congress. during a call with reporters this morning he announced a proposed $84 billion increase in military spending and we suspect that will be one of the items he will be followed up on during his address tomorrow night which you can watch live on c-span begin at 9 p.m. eastern also online at c-span.org and you're the option of listening live on the free c-span radio app. up next, joe hockey just joint to united states, discusses america's place in the world throughout history and about u.s.-australia relations in light of the trump presidents, international trade policy and what america first means to the

rest of the world. this is hosted by the chicago council on global affairs. we will show as much of this as we can't until the senate gavels in at noon eastern. spin it is my pleasure to welcome ambassador joe hockey to chicago and to the chicago council on global affairs. in an effort to take in my other record-breaking heatwave that at the moment is occurring across east coast of australia, we've taken the opportunity to turn the temperature dippe down a lie bit for you in chicago. i believe it is about -3°c when i left this morning. not use as bad but hopefully you brought your trusty boots, perhaps your favorite beanie. otherwise you will enjoy your stay. i'm sure it's not lost anyone in this room that the united states and australia have long been very strong allies with shared values and interests. in fact we been intrinsically linked since the very beginning. as many historians have noted one of the consequences of america winning the war of

independence against the british was america refused to accept any more convicts. so the prisons in pennsylvania and elsewhere were cut off to the british fromaround 1783. so it's no surprise then that a few short years later in januars sailed around south fed into what is now sydney harbour and establish a british penal colony which then became the foundation for a new nation. so it's fair to say that america's fourth of july celebration and the australia day holiday have a lot more in common than just bitter and barbecues. the tides that by the two countries have endured into the modern arabic in fact since the early 1900s australia has not missed a war. australian troops have fought alongside the american military in every major war in which the u.s. has participated. in addition to the cooperation on security and defense, the economic relationship between the two countries is and remains

very robust. yet with the recent withdrawal of the united states from the transpacific partnership and with the fallout from a certain phone call between the leaders of the two countries nearly two weeks ago, there is some uncertainty about the future of american involvement in the asia-pacific region in which regard to australia generally. and perhaps not coincidentally, china's foreign minister mr. wang also visited australia about a week after that phone call. there his discussion on the growing relationship between the two countries. so where to from here? and emerging china stretching its influence into the south china sea and perhaps the, the united states with an administration, a new wood administration perhaps withdrawing into itself somewhat and away from certain world affairs. and what then for australia and its special relationship with the united states? with this backdrop we very much look forward to hearing ambassador hockey his perspective on these and other issues of the day. but before we begin i would like to further entities ambassador to you.

he has served as a strong ambassador to the united states since january 2016 and before that he was a member of your starting parliament for for more than 17 years. in 2013 he was appointed treasurer of the commonwealth of australia and served as chair of the g20 finance ministers and central bank governors in 2014. as part of this role he served as a regular delegate to the imf, the world bank and the asian development bank and various apec meetings. prior to his service in government, ambassador hockey worked as a banking finance lawyer for a major australian law firm. ladies and gentlemen, least join me in welcoming ambassador joe hockey. [applause] thank you very much, david, and to all of the chicago house on global affairs, thank you so much for involving me alone today to say a few words and

also to answer a few of your questions. the appearance here is, it is a great city and has a long-standing relationship with australia and australians. in fact, where ever i got just the last 2 24 hours i've been running into australians who you quite right, david, do not fill it with this type of weather but hopefully we can have a good influence. and we are having a good influence in tempering some of the extreme weather that chicago is little bit famous for. of course it was mark twain is it it's hopeless for the occasional visitor to try to keep up with chicago. and given that this is only the second time in 20 years i've been here, i feel very occasional. she outgrows the prophecies faster than he can make them. mark twain was of course quite impressive, describing the city that works, the city of big

shoulders as he called it, as something that is moving quickly, and it is. it's always been a city that has been focused on trade, commerce and innovation. the home of railway in america arguably the home of railway around the world. and with so many developments that change the course of history, including the first self-sustaining nuclear chain reaction which ushered in of course the atomic age, happened here in chicago. and, of course, being the home of route 66 was a place with the car radio was invented as well. in australia you can drive for a day or two and not see another car so your best friend tends to be the car radio. rated revenge of a series of winning baseball team, again, which is something that i discovered is near and dear to

the hearts of many, many americans. so today i'm talking about mateship and the people of illinois know only too well what important, how important it is to stand by each other during times when it's difficult, challenging. at the same time as you celebrate the friendship, the mateship as we call it during the good times. our relationship goes back a very long way. we are both immigrant nations. as david mentioned a little bit earlier, we were in one sense the beneficiaries of the american war of independence. because the brakes instead of coming here sending their downtrodden here, tend to send them to australia -- brits. even in those days with the oldest continuing culture in the history of humanity, the

aboriginal indigenous culture and australia, which had been a continuing custodian to the land and australia for 40,000 years. now quite shocked to have a boat full of comic shop from britain and set up a new call and test a newtown called city. i digress a bit and tell a little story. the french were quite keen to set up a call in as well. at that time the king of france was actually did the lighted with the opportunity to bid the brits to get to the far end of the earth and set up a coldly. so he sent a well-known naval commander to australia, and when he was leaving port in france in a race with arthur philip, he had to throw a stowaway off the ship twice. this stowaway was completely obsessed with australia, wanted to know more. love the concept of kangaroos.

part about kangaroos and koalas but he was deliberately tr trieo get on this boat to go and he said he can want to get i will have you flogged. through him off, and then, of course, he ran late and arrived just a few days late to set up the calling of city. he had a glass of sherry with governor arthur philip as the british and french did in those days when they were not at war with each other, quite obviously. and he said when his two ships were never seen again. never seen again. the young frenchman that he threw off the ship, try to be the stowaway was napoleon bonaparte. history would a change quite dramatically had he been on that ship of course. so we had a hand in history from that very moment. but it's the history that's been forged and shared pain that in many ways defines how loyal you are to each other. and really that's where we started, australia made a

massive commitment in what was known as the great war, world war i. it was on the other side of the world, and in america's population we had sacrificed the equivalent of about 3 million soldiers. for a country of just 5 million people at the time, we had massive casualties, particularly on the western front in france. the command before the british army directed and australian jewish general, john at the time peggy said you got to take this town off the germans. otherwise we will never going to crack the western front. and he said i haven't got enough soldiers. and so they said well, we're going to give it some of these new americans that have come over. they have just joined the war but their untrained vikki said let's do that. the australians and the americans started training together. they formed this bond, this affection for each other based on shared values.

and then general pershing, an american general, found out about a subsonic we are not fighting under for general spec we don't fight under australians or anyone else. the american soldier said hang on, we are not abandoning our buddies. they started to peel off the conference and put on australian uniforms. they said we are not walking away. pershing gave in, gave us three companies of american soldiers and added difference to the americans general monash delayed the attack until the fourth of july, 1918. he took the town in 93 minutes. using tactics that were the first of their kind, and it turns arguably the first world war. when america contributed, mobilized 4 million soldiers for that war, and it was a turning point, they did so on the back of an engagement with the rest of the world. woodrow wilson in a speech to the congress as president in

january of 1918 said, this is a 14 point plan upon which we will engage with the world, as america should. this is how we want to define the 20th century. the american century. there were key components in that 14 point plan that are as relevant today as they were back then. i mean, in particular, article iii, where he said the removal so far as possible of all economic barriers and establishment of an equality of trade conditions among all the nations consenting to peace. free trade, he said, good for america, good for the world. and the basis upon which america would engage with the world. he also went on to talk about freedom of navigation of the seas here and that's as relevant today, particularly in the south china sea, as it was back then. and it continues to be. and you know what, the united

states signed up for that platform. the people of the united states signed up to the platform. they said yes, we believe in enterprise, we believe in freedom, we believe in democracy, we believe in transparency. we believe in the empowerment of individuals. that they can take control of their own lies. and america has effectively forged out over the last 100 years a global empire that is for the first time did not rely on the invasion of other countries in order to win over the hearts and minds. the first empire in the history of humanity that hasn't had to go and conquer nations in order to spread their values. a unique position in history of humanity has been given to the united states because the united states embodies values. and what happened? people joined up. people wanted to join the great

american dream. americans called it exceptionalism, but it was more than that. it was a promotion of a set of values that was easy to share. four corners of the earth, australia, the united kingdom, canada, of course, the anglosphere but more than that. countries all over the world walking away from communism,, walking away from socialism, walking away from totalitarianism, wanting to embrace the values that in part woodrow wilson said, was a basis upon which the united states would sacrifice its soldiers. to help deliver a better world. it's a powerful message. and what we did, we joined you. fro.from that day the fourth of july, 1918, until today we are the only country on earth that has fought side-by-side with the united states in every major

conflict. the only one. we don't do it because you are the big brother. we do it because we both have the same values, the freedom of enterprise, democracy, loyalty to family, support for liberty. it's based on values and shared values. and so the last few weeks has been talk about, well, there might've been some robust discussion between the president and the prime minister. that happens from time to time. mateship is about being honest with each other. we call it fitting in. where you fit in with each other. when you say what do you think? but you respect each other, and that is still the case. it was on that phone call. it is still the case today. whoever the united states elects, it is the prerogative of the american people.

and we will work with them and we will work constructively and honestly and loyally where the values continue to be shared. that's what you do. that's what you do. and we are ever mindful that there are 150,000 dead american soldiers buried in the sand between australia and japan. america is mindful of that. that's why america won't walk away from the asia-pacific region. or with those souls who fought and died for the values of that made america great. they are never leaving those shores. and that's what america will never lose and should never leave the asia-pacific region. but, of course, the dynamic shifts. america somehow is expected to solve every problem around the world. i get that the burden can sometimes be troubling to the

american people. when you lose your job in chicago or detroit, and jobs in depth going to china or laos, or to eastern europe, somehow if you are feeling as magnanimous as you might have towards international interest. i get that. australia has had that. even china has said that, by the way. china lost 19 million manufacturing jobs between 1995-2005. automation, robotics, companies moving their manufacturing to cheaper destinations with lower wages. it happens. it happens. the question is how do you lift the tide so that all boats rise? america has been good at that. australia has been very good at that. australia hasn't had a recession for 26 years. it's not an accident. it comes about because we had to

cope with the changes in the world. so one of the challenges that we both base is how we can continue to promote the values and importantly, defend the values that are so important to both of us. in a military sense, australia has military personnel currently stationed in 31 u.s. states. 31 u.s. states. not many people know that. australia has probably the deepest engagement with the intelligence community of any country in the world here in the united states. certainly on par with britain,, maybe even a little bit more. and, of course, until recently we have one of the largest military presences in iraq and syria. the europeans have contributed more troops, but until last year we had the second-highest number

of military personnel, undertaking kinetic activity, as they call it come in syria and iraq, making sure that we work together with the united states to defeat isil. and, of course, on the economic front we have had a free trade agreement with the united states since 2005. no one is talking about ripping it up here, because you have a two to one trade surplus with australia. so you are a significant beneficiary of the trade with australia. and we don't mind that, because some of the benefits are that you have the largest investment in australia of any country in the world. including, in particular, businesses like chevron and conoco phillips and others that are helping to export massive amount of resources out of our

country to the growing markets in asia by the end of this decade australia will be the biggest export of liquid gas in the world. we have the biggest reserves of gold and uranium in the world. we are the biggest export of iron ore in the world. we are the biggest exporter of gold in the world. and with the massive growth in asia, in particular with the middle class in asia that is going from 500 million people today, larger than all of north america, about the same size as europe, that middle class is going from $500 million today, 500 billion people today, the 3 billion in the middle class by 2030. less than 15 years. six times larger, and that's a massive opportunity to the manufacturers in the united states, the service provided in the united states, as it is for others in australia.

because resources, even though they are a big part of our economy, they are actually only about 9%, 9% of our economy. agriculture is about 3% of our economy, beef, wool, pork, wheat. wheat. so we are big services-based economy. 70% of our economy is services, education, tourism, health care, nursing and so on. and the united states is a pretty similar profile. so, therefore, the opportunity to tap into that middle class of asia is a great win for both of us, for all of us, and that's why we argued vigorously for the transpacific partnership. it's about american standards,, about australian standards being the benchmark for commerce and the fastest-growing region, not only in the world and history of humanity. the asia-pacific region.

fast-growing, dynamic, wealthy, and they the people of the asia-pacific region, they want what you and we have, what we have. they want better quality health care. they want better quality education. they want clean air. they want clean food. they want to travel, explore the world. they want nice cars. they want nice houses. the consumer goods of that attribute the american economy, they are desired by this massive growing middle class in asia that is going to strip going to drive the global economy over the next 100 years. that's why you cannot abandon asia. and for the stability of the region, for the benchmarks and integrity of the entire asian region, asia needs you. so that's the message that i'm taking to washington, here in chicago, los angeles, des

moines, iowa, wherever it might be. there's a partnership, partnership forged in blood, nearly 100 years ago ago. a partnership that will continue, sadly, to require both of us to make massive sacrifices, that a partnership that is necessary for the prosperity of the american people and the australian people as well. thanks very much. [applause] >> anambassador, thank you so mh for your remarks. we will want to get right into it, the phone call. can you elaborate on the nature of the phone call, what was said? i think people here would love to know more as well as how your government is responding. >> well, i wasn't on it so i can't say. [laughter] speak i'm willing to be a

diplomat. >> that's good. doing well. prime minister brief you on "after words"? >> look, it goes to an agreement made on the previous administration before the election and the united states agreed to accept some economic refugees from two are listed north of australia that australia has had some responsibility for. and australia agreed to accept some refugees under different circumstances from the united states, and of the guidance of the united states. these things happen all the time. time. i understand the president was elected. we understand he was elected on the basis of a certain policy. we respect that, but there was an agreement between two nations. nations. and before the election.

the president agreed to respect that agreement, particularly given that we are close allies and we agreed to one of the agreements and that's where it's at. >> what was the response and australia to the nature of that call? in the united states certainly there was concern that it was seen as disrespectful towards the prime minister. >> well, you know, these conversations to happen between prime ministers and presidents, and i get that. i mean, i've been involved in honest and frank diplomatic discussions with people with my previous role as chair of the g20. some pretty vigorous discussions. but you do that when you know that, you know, when you are speaking to your brother or your sister. you have a vigorous discussion, and if people just listened to the conversation i think you might not get onto well.

but it's just a fleeting moment, a fleeting moment in the larger dialogue. and from our perspective and australia, look, there was a reaction, but we are, it pains to emphasize, that, and it happened under resident bush as well and it's happened various points along the way. the american media is covered globally, and to a degree that is exceptional. i mean, the american presidential election got more coverage, media coverage and australia and the australian election got coverage in australia, so figured that. everyone has an opinion on president trump, and it might be a good opinion, it might be a negative opinion. as it is here in the united states. what we have to do and other countries have to do is remind people that the partnership with the united states is deeper than any single individual, whoever that may be.

it is very important that an anti-bush or an anti-trump or an anti-obama mood in various parts of the countries cannot turn into an anti-american view. no single person totally reflects the attitudes and the vision of the population, and that's what we are doing and that's, you know, our primaries wasn't going to join the cal coo light of commentators and international sphere giving a view about the executive order. he didn't do that. he resisted it despite provocation and australia and that's because we are not going to become commentators on american politics. you can switch on 35 channels in the united states nc, turn on american politics. we are not going to add to it spinning you noted had a number of conversations with members of the administration as well as members of congress after the phone call.

what do you sense is known about the australian u.s. relationship in washington? >> it's very strong. i mean, i was quite surprised to receive about probably 20 or 30 phone calls from various testing very senior congressmen and senators, and we weren't looking for that pick up a spontaneous and genuine and heartfelt. for example, senator mccain, his opening words to me, 500 australians died in vietnam. and, you know, i said yeah, i knew of some of them. and certainly my family was close to being one of them. a member of my own family. you know, of course there is a history there. >> the nature of the u.s. australian alliance which you alluded to in your remarks i think surprised many efforts us in the room about how close we

are as a nation you mentioned 31 states were australian troops are stationed here in the united states, does that surprise members of congress sometimes when you talk with him? >> no. no, the members of congress had a very deep understanding, particularly the intelligence committees, the defense committees, and the one who has served in the in the united states tends to know the background. because essentially wherever the united states military personnel go, there's probably a aussie somewhere there, whether you like it or not. and you know, it's sort of, it's the basics. so no. and look, there's genuine goodwill. we, we run the stereotypes of crocodile dundee or hugh jackman or greg norman or cate blanche

blanchett, or so on. not they are stereotypes. that's part of our mutual indebtedness. it's not going to change. >> how about the same question from the other side? how do you sense the mood about the nature of the relationship what are people concerned about? what are they not concerned about? >> okay, my diplomatic buzz is going off year. i've got to be -- [laughter] look, when america says america first, there's someone with nearly 20 years in politics i get that. i get that. what the rest of the world history is that they come in second. they are the losers and america is the winner. america is the biggest military power in the world, the biggest economy in the world.

it's called as more pervasive and powerful than any other culture in the world. even arguably the english culture. it's pretty remarkable. so when you say, you know, america comes first, everyone else comes after that, i get that for the domestic reasons. i get that where the autoworker who lost his job and his housemate in detroit gets, you know, he wants to hear that. also be mindful a lot of american companies trade outside of the united states. they actually, you know, they sell goods, love the income that comes into the united states, the reason why it is the richest nation on earth is because it exports so much in culture and manufactured goods, in products and a range of other things. if people start overseas looking for alternatives to the united states, that will have a horrible impact here in the u.s.

so when you're the biggest player in town, you need to fully recognize that your schedule a something on the table for the other party. you know, that's it, american exceptionalism is based on a certain amount of humility. americans are very humble people. they are modest people, humble people. and i get that, too. but that is part of your exceptionalism, that you can be the biggest, the most powerful, the richest, and the humble. you know, i would urge that humility to be a continuing part of the dialogue. >> change in the conversation a bit towards trade which are referenced. you were quoted as saying that for the united states to withdraw from tpp was quote, would be hugely damaging to the united states reputation in asia. what did you mean by that when you set it? what are the ramifications for the united states do you feel

now that we, that comment was made before the president withdrew and now that it is happen. >> it was a very honest statement and i stand by it. because what america i has dones i said, look, these are the benchmarks we want. we want intellectual property we want to have a legal system as a fair and transparent. we want to have a dispute resolution process that is fair and reasonable and affordable. we want to have free and open trade work countries are not engaging in either overt or covert practices to increase the price of the goods are many late their currencies. manipulate their currencies. i'm with that. we signed up to it. the tpp actually helped in many of those areas. it sent a benchmark and the other as going developing economic region that hasn't got consistent benchmarks. so the question is who is going

to set those benchmarks? united states said we will, we will take a leadership role. and they help to get everyone signed up, and said yet, we're going to set these benchmarks and start to remove trade barriers. why'd you want to impose tariffs? tariffs and taxes on your own people. you want to reduce taxes, right? you want to reduce tariffs. and the second thing is, about 20 years ago in order to make an advanced manufacturing good, you would have componentry for maybe four or five different countries. the raw materials, something will be made, a semiconductor in one country, some robotics in another country, they all come together. about five different countries would form part of that and manufactured good. today, it's about 20 countries. so if every country starts imposing taxes, and into good will up twice, three times more

costly which takes it out of the accessible range for a lot of people. so, frankly, the faster we can move trade barriers, the faster we can get rid of taxes and tariffs, the better. now, some countries are not complying and don't comply. you've got to bring them along. you got to bring them along. and the tpp did that. and it was based on american values, american experience that the region embraced. now with america says we don't even stand by those values, someone is going to fill the vacuum. >> who do you think that is likely to be? [laughter] >> well, we will wait and see. >> do you still see the united states as the leader in free-trade? do you think potentially, you mentioned the australia u.s. free-trade agreement hasn't come

into the firing line, but do people back at home worry about kind of that's the next tweet of the moment? >> well, america has a two to one trade surplus against australia, and we are comfortable with that because there are other benefits out of that. as i mentioned componentry, boeing planes, boeing headquarters here in chicago, boeing planes, key components made in australia. in fact i think boeings second-biggest partial workforce is australia hoping to make component parts of some of the passenger just that and, of course, part of the flipside is for example, where the second biggest purchase the joint strike fighter. >> we will leave it here as houston is about to gavel and for the first time since the