the psyche of our officers in which many are beginning to wonder if this honorable work is even worth it anymore. you can see all of because of vision coalition dinner tonight on c-span at 8:00 p.m. eastern. announcer: watch c-span as president donald trump delivers his first the jazz a joint session of congress. president trump: this will be the busiest congress we have had in decades. announcer: live tuesday at 9:00 p.m. eastern on c-span and c-span.org. and listen live on the three c-span radio app. up next on c-span, australia's ambassador to the united states on relations between the two countries after a reportedly contentious phone call between president trump and the australian prime minister. from the chicago council on global affairs. this is one hour.

pleasure to welcome the ambassador to chicago and the chicago council on global affairs. ambassador, to take your mind have takent wave, we the opportunity to turn the temperature down in chicago. i hope you have noticed that. it was negative three degrees celsius when i left this morning. it is not usually this bet in chicago, but hopefully you brought a pair of boots so you can enjoy your stay. i'm sure it is not lost on anyone in this room that the united states will show you have been allies with shared values and interests. we have been intrinsically linked since the very beginning. one of the consequences of america winning the war of independence again -- against the british is that we refuse to accept any more conflicts.

they were cut off from the british. it is no surprise that if you short years later in january of 1788, the governor sailed around with the first fleet to what is now sydney harbour and established a british penal colony. it became the foundation for a new nation. it is fair to say that america's fourth of july celebration and the us trillion day holiday have a lot more in common than just beer and barbecues. the ties that bind the two countries have endured into the modern era. since the early 1900s, australia has not missed a war. foughtnly troops have alongside the american military in every major war in which the u.s. has his 80. in addition to their cooperation on security and defense, the economic relationship between the two countries remains very robust. withdrawalhe recent of the united states from the transpacific partnership, and the fallout from a certain phone

call between the leaders of the country's two weeks ago, there is uncertainty about the future of american involvement in the pacific region. china's foreign minister also is that australia a week after the phone call. various discussions around the growing relationships between the two countries. china, stretching its influence into the south china sea and beyond. the united states with an administration -- a new beenistration that have drawing into itself and away from world affairs. 's special relationship with the united states. with this backdrop, we look forward to hearing the ambassador's perspective on these and other issues of the day. before we begin, i would like to further introduce the ambassador to you. yesterday as australian ambassador to nines eight and january 2016. before that he was a member of

the australian parliament for more than 17 years. in 2013, he was appointed treasurer of the commonwealth of affiliate, and served as chair of the g 20 finance ministers and central bank owners in 2014. as part of this role, he was a regular delegate to the imf, the world bank, the asian development bank, and various meetings. prior to his service in government, ambassador worked as a finance lawyer. ladies and gentlemen, join me and -- in welcoming the ambassador. [applause] >> thank you very much. thank you to the chicago council on global affairs. thank you so much for inviting me. i will say a few words and also answer a few of your questions. is a greatnce here city.

standingd a large relationship with australia and australians. in fact, wherever i've gone in the past 24 hours i've been running into australians. you're quite right, they are not familiar with this type of weather. hopefully we can have a good influence and we are having a good influence on tapering the extreme weather that chicago is famous for. it was mark twain who said it is hopeless for the occasional visitor to try to keep up with chicago. the secondthis is time in 20 years that i have been here, i feel very occasional. propheciess his after that you can make them. mark twain was quite pressing describing the city of big shoulders as something that is moving quickly. it is. it has always been a city that

is focused on trade, commerce, and innovation. america,of railway in arguably the home of railway around the world. with so many developments that have changed the course of history, including the first self-sustaining nuclear chain reaction. that happened here in chicago. being the home of route 66, the place where the car radio was invented as well. thank god for those long trips. in australia you can drive for a day or two and not see another car. your best friend is a car radio. and you have a world series winning baseball team, again. something i discovered was near and dear to the hearts of many americans. they i'm talking about people of illinois how important

it is to stand by each other during times of adversity. when it is difficult, challenging, the same time you celebrate the friendship, the makeship during the good times. we are both immigrant nations. mentioned, we were the beneficiaries of the american war for independence. because the british, instead of sending their downtrodden here, they send it to australia. aboriginal indigenous culture in australia has been a custodians of the

land for 40,000 years. they were shocked to see a boat full of convicts from britain show up. french were keen to set up a colony as well. the king of france was convinced he wanted to get to the end of the earth and set up a colony. he sent out a well-known naval commander to australia. when he was leaving the 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. he wanted to know more. he loved the concept of kangaroos. he heard about kangaroos and quality. he was deliberately trying to get on this boat to go.

threw the stowaway off. he arrived late, a few days after arthur philip. glasses ofa few alcohol, as the british and the french state in those days when they were not at war with each other. the commander said his two ships were never seen again. the young frenchman that he threw off his ship who tried to be the cello -- stowaway was napoleon bonaparte. history would have changed quite dramatically had he been on that ship. we had a hand in history from that very moment. it is the history that has been forged in shared pain. in many ways it defines fines how loyal you are to each other. really, that is where we start. 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.

, we hads population sacrificed the equivalent of 3 million soldiers. her country of just 5 million people at the time, we had massive casualties, particularly on the western front in france. the commander of the fourth british army directed on australian jewish general and told him to take a town offer the germans orals they cannot crack the rest in front. he said, i have not got enough soldiers. so, they said we will give you some of these new americans that have just joined the war, but they are untrained. he said, let's do that. yes ryan's and the american started training together. and formed this bond affection for each other based on shared values. general -- on american general found out and said we are not fighting under foreign generals. we are not fighting under

australians or anyone else. the american soldiers said, hang on, we are not abandoning our buddies. they took off their american uniforms and put on australian uniforms. they said, we are not walking away. so they gave the australian general three companies of american soldiers. the general delayed the attack until the fourth of july, 1918. 90 minutes town in using tactics that were the first of their kind. it turned the first world war, arguably. when america contributed and mobilized 4 million soldiers to 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 the 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. three,icular, article the removal so far as possible of all economic barriers and the establishment of an equality of trade conditions among all the nations consenting to peace. free trade, he said, good for america and good for the world. the basis upon which america would engage with the world. he also went on to talk about freedom of navigation in the seas. that is as relevant and that is as relevant today as it was back then. and it continues today. and you know what? the united states signed up for that platform. the people of united states signed up to that platform.

they said, 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 their own lives. and america has effectively forged out over the last 100 yearsa global empire that for the first time does not rely on the invasion of other countries over their win hearts and minds. the first empire in the history of humanity that has not had to go and conquer nations in order to spread their values. position in the history of humanity has been given to the united states because the united states embodies that. 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 the promotion of a set of values that was easy to share.

four corners of the earth, australia, the united kingdom, canada. part of thatey are anglosphere but it is 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 were the basis upon which the united states would sacrifice its soldiers. to help deliver a better world. it's a powerful message. what we did, we joined you. from that day, the 4th of july are thell today, we only country on earth that has witht side-by-side 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. of freedom, of enterprise, democracy. loyalty to family, support for liberty. it's based on values and shared values. and so, the last few weeks there has been talk about, well, there might have been some robust discussion between the president and a prime minister. that happens from time to time. being honest with each other. think,ou say, what do 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. we will work with him, and work constructively and honestly and loyally where the values continue to be shared.

that is what you do. that is what you do. and we are ever mindful that there are 150,000 dead american soldiers buried in the sands between australia and japan. america is mindful of that. that is why america won't walk away from the asia-pacific region. all of those souls who fought and died for the values that made america great, they're never leaving no shores. and that is why america will never leave and should never leave the asia-pacific region. but, of course, the dynamics shift. america somehow is expected to solve every problem around the world. he burden can sometimes be troubling for the american people. when you lose your job in chicago or detroit, and jobs end up going to china or laos or to

eastern europe. somehow you're not feeling as magnanimous as you might have towards international interests. i get that. australia has had that. even china has had that, by the way. china lost 19 million manufacturing jobs between 1995 and 2005. robotics, companies moving their manufacturing to cheaper destinations with low wages. it happens. it happens. the question is, how do you lift the tide so all boats rise? america has been good at that. australia has been very good at that. australia has not had a recession for 26 years. it is not an accident. it comes about because we had to cope with the changes in the world. one of the challenges that we both face is how we can continue

to promote the values and importantly, defend the values that are so important about -- 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 intelligence community of any country in the world here in the united states. n,rtainly on a par with britai maybe even a little bit more. till recentlye, we had one of the largest military presences in iraq and syria. the europeans have contributed more troops but till last year we had the second-highest number of military personnel after taking kinetic activity, as they iraq,t, in syria and

making sure that we work together with united states to defeat isil. and, of course, on the economic front, we have had a gree trade agreement -- free trade agreement with united states since 2005. no one is talking about ripping it up here, because you have a 2:1 trade surplus with australia. you are significant beneficiary of the trade with australia. and we don't mind that because some of our benefits are that you ahve the largest -- have the largest investment of australia - in australia of any country in the world, including, in particular, businesses like chevron, and conical phillips co phillips-- cono and others that are hoping to export massive amounts of resources out of our country to the growing markets in asia. by the end of this decade, australia will be the biggest exporter of liquid gas in the world. we have the biggest reserves of

the world.ranium in we are the biggest exporter of iron or in the world. we of the biggest exporter of coal 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 the whole of same america, about the size as europe, that middle class is going for 500 million people today to 3 billion in the middle class by 2030. less than 15 years. six times larger. massive opportunity for the manufacturers in the united states, the service providers 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%. beef, woold, pork, wheat. so, we are a big services-based economy. our economy is services, education, tourism, nursing homes and so on, and united states is a pretty similar profile. so, therefore, the opportunity to tap into that middle class of age is a great win for all of us. and that is why we argued vigorously for the transpacific partnership. it is about american standards, about australian standards being the benchmark of commerce and the fastest-growing region, not only on the world, but in the 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, 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, nice houses. the consumer goods that have driven the american economy. they're desired by this massive growing middle class in asia that is 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 in integrity, of the entire asian region, asia needs you. that is a message that i am taking to washington. ere in chicago, a socialist - los angeles, des moines, iowa, wherever it might be, there's a partnership. partnership forged in blood

nearly 100 years ago. a partnership that will continue fairly to require both of us to make massive sacrifices. but a partnership that is necessary for the prosperity of the american people and the australian people as well. thanks very much. [applause] host: ambassador, thank you so much for your remarks. we 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 responded. ing.responsd ambassador hockey: i was not on it, so i cannot say. host: the prime ministers did

not brief you on it afterwards? ambassador hockey: it goes to an agreement made under a previous administration before the election. agreed united states had to accept some economic refugees from two islands to the north of that australia has had some responsibility for. and australia agree to accept some refugees under different circumstances from the united states and under the guidance of the united states. now, these things happen all the 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. and before the election. the president had agreed to respect that agreement, given

that we are close allies, and we agreed to honor the agreement. that is where it is it. host: what was the reason response in australia to the nature of that call? there wasted states, concern that it was seen as disrespectful towards the prime minister. ambassador hockey: well, you know, these conversations to happen between prime ministers and presidents. and i get that. i mean, i have been involved in, you know, honest and frank diplomatic discussions with people with my previous role as chair of the g-20. we had some pretty vigorous discussion. but you do that when you know that, you know, when you are speaking to your brother or your right? you have a vigorous discussion. and if people listen to that conversation, i think they might not get onto well. fleeting just a moment, a fleeting moment and a larger dialogue. and from our perspective in australia, look, it was a

reaction, but we are it -- at itns to emphasize that, and happened under president bush as well. and it happened at various points along the way. the american media is covered globally. and to a degree that is exceptional. the american presidential election got more coverage, media coverage in australia than industrial you election got coverage in australia -- then the australian election got coverage in australia. everybody has an opinion on president trump. good opiniona be a or might be a negative opinion as it is here in united states. what we and other countries have to do is remind people that the partnership with the united states is deeper than any single individual who ever that maybe. it is very important. an anti-bush or an anti-trump or an anti-obama mood in the

various parts of the country cannot turn into an anti- american view. no single person totally reflects the attitudes and the vision of the population. and that is what we are doing, and that is, our prime minister was not going to join the conga line of commentators in the international sphere, giving a view about the executive order. he didn't do that. he resisted that despite provocation in australia. and that is because we are not going to become commentators on american politics. you can switch on 35 channels in the united states and see commentary on american politics. we're going to - not going to add to it. host: you no doubt had conversations with members of the administration and members of congress after the phone call. what is your sense of the mood about the australian-u.s. relationship in washington? ambassador hockey: it is very strong. i mean, i was quite surprised to

receive probably 20 or 30 phone calls from varery senior senators.en and and we were not looking for that but it was spontaneous and genuine and heartfelt. hisexample, senator mccain, opening words to me, 500 australians died in vietnam. i said i knewnow, some of them. my own family was close to being one of them, a member of my own family. so, you know,, of course there is a history there. of thehe nature u.s.-australian alliance which you allude to in the remark surprise many of us about how close we are as a nation, you mentioned 31 states where a strong troops are stationed in the united states.

surprise members of congress sometimes when you talk with them? ambassador hockey: no. no, the members of congress have a very deep understanding, particularly the intelligence committees, the defense committees, and anyone who has served in the military in the united states tends to know the background, because, essentially, wherever the united states military personnel go is probably an aussie somewhere there. whether you like it or not. know, it is sort of, it is the basics. nuine goodwill. we run the stereotypes of, you know, crocodile dundee or hugh cakman or great norman or te blanchett. not that they are stereotypes, don't mget me wrong.

that is not going to change. host: how about the same question from the other side? in camera, how do you sense the mood about the nature of the relationship? what are people concerned about? what are they not concerned about? ambassador hockey: ok, my diplomatic buzzer is going off here. [clears throat] when america says america's first, as someone with 20 years of politics, i get that. i get the argument. but what the rest of the world's hearing is that they are coming second. and they're the losers and america is the winner. america is the biggest military power in the world, the biggest economy in the world. more pervasives and powerful than any other culture on the world, even

arguably the english culture. it is pretty remarkable. so, when you say, you know, america comes first, everyone else comes after that, i get that for domestic reasons. i get that where the autoworker eho lost his job and his hous may be in detroit, he wants to hear that. but, also, as long as you are mindful that a lot of american companies trade outside of the united states. they actually, you know, they part of the income that comes into united states could the reason why it is the richest nation on earth is because it exports so much, in culture and manufactured goods a range of other things. if people start overseas looking for alternatives to the united states, that'll have a horrible impact in the u.s. are the biggest player in town, you need to sort of recognize that you got to

leave something on the table for the other party. that's it. american exceptionalism is based on a certain amount of humility. humblericans a very people. they are modest people, humble people. i get that, too. so, but that is part of your exceptionalism. if you can be the biggest, the most powerful, the richest and be humble. ged, you know, i would urag that humility to continue to be a part of the dialogue. host: turning the conversation towards trade. you were quoted as saying as for the united states to withdraw be hugelyas "would damaging to united states reputation in asia." what did you mean by that when you said it? what are the ramifications for the united states, do you feel now that we -- that is the comment we made before the president with through. -- withdrew. ambassador hockey: it was a very

honest statement and i stand by it, because, what america has done --these are the benchmarks we want. we want to protect international -- intellectual property. we want to have a legal system that is fair and transparent. we want to have a dispute resolution process that is fair and reasonable and affordable. and openo have free trade where countries are not engaging in either overt or covert practices to increase the price of their goods or manipulate their currencies. when you play currencies. i'm with that. we signed up to it. the tpp actually helped in many of those areas. iit set a benchmark. you have a fast-growing developing economic region that has not got consistent benchmarks. so, the question is, who is going to set those benchmarks? the united states summit, we w -- the united states said, we w ill.

and they help to get everyone signed up and said, we will set these benchmarks and we will start to remove trade barriers. why do you want to impose tariffs? tariffs are taxes on your own people. you want to reduce taxes, right? you want to reduce tariffs. the second thing is, about 20 years ago, an order to make an advanced manufactured good, you would have componentry for maybe four or five different countries. the raw materials, something would be made, a semi conductor in one country, robotics and together.hat all come about five different countries would form part of that. manufactured good. today, about 20 countries. so, if every country starts imposing taxes, the end good is going to end up twice, three times more costly. which takes it out of the accessible range for a lot of people. faster we canhe

remove trade barriers, the faster we can get rid of taxes and terrace, the better. now, some countries are not complying. and do not comply. you have got to bring them along. you have to bring them along. and the tpp did that, and it was based on american values, american experience that the region embraced. now, what america says, we do not even stand by those values, someone is going to fill the vacuum. host: who do you think that is likely to be? ambassador hockey: yeah. well, we will wait and see. host: do you still see the united states as a leader in free trade? and you do think -- you mentioned the australian-u.s. free trade agreement has not come into the firing line, but do people back at home worry about that is the next week of the moment? -- tweet of the moment?

ambassador hockey: well, america has a 2-1 trade surplus against australia. and we're comfortable with that because there are other benefits out of that, partly because, as i mentioned, componentry. boeing planes, boeing headquarters in chicago, key components are made in austro did in fact, i think boeing's second-biggest offshore workforce is in australia helping to make component parts of the passenger jets. part of the flipside is we're t he second-biggest producer of the joint strike fighter. host: apparently it is very expensive. ambassador hockey: and we are cheering on the president reducing the cost. but we're there, you know? we are a massive buyer of catholic equivalent - of

caterpillar equipment. our mining industry has been using caterpillar trucks it cuts both ways. i do not think you can unscramble the egg here. but, certainly, you can poison it. host: following the united states withdraw from tpp, what is the future in your view for that agreement? ambassador hockey: well, we are certainly proceeding after discussions with the other countries to have a 12 minus tpp, go ahead without the united states. and we encourage others to join. and, you know, there are a number of countries that could join that haven't. obviously, china hasn't joined. it might choose to join. china has, obviously put more effort into their relationship at,particularly has looked you know, promoting a regional

comprehensive economic partnership, which is essentially an asian free trade agreement for asian countries, just asian countries. we want the tpp to continue to proceed, and other countries that have not joined, that are strategically very important for all of us, like south korea and indonesia, who were thinking about joining the tpp may still join the tpp. we will wait and see. host: in a letter last year you wrote to the obama administration when the topic of a potential renegotiation of the tpp was coming up, you said in "e letter, i'm quoting, renegotiation via agreement in any form or in other forms is not an option and would jeopardize approval by other tpp countries." given the president's withdrawal, do you think it precludes u.s. for dissertation during this administration and potentially future, all future

administrations, given that mrs. clinton decided she was against the tpp and it needed for the renegotiation? ambassador hockey: there are two ways you can go. you can either try to negotiate or you can actually have a domestic compensation package or domestic adjustments that help to ease what you might think are some of the pressure points. associated with the agreement. if you renegotiated the tpp, the clear message to every other country is, you've got to give us more. that is pretty hard to sell in australia or japan or malaysia that actually you are giving united states more at your expense. all of a sudden your people are going to say, actually, no, we are not going to do that. i mean, we ask we have, it is a free tradelling agreement in australia believe or not, every other country has the challenges. it is not unique to the united states. there are people who are anti-free-trade. or opposed to the tpp in all the

tpp nations. and we have to address those domestic politics just as you do. but when you sit down and youriate a deal, i think own people would assume you have got the best deal. and if you do not think you have the best deal, in your country they take the view it is not the best deal, renegotiating with one or two countries is sometimes possible. renegotiating with 11 other countries when there is someone else that might want to play in this ballpark, it is just unlikely. highly unlikely. the: how have you, given fact that domestic opposition potentially in australia for free trade, but seemingly the government and governments of both parties to overcome that, how do those people in the united states who believe in free trade to find the merits to the populace who may not be seeing it? ambassador hockey: well, at the

end of the day, it means cheaper imports, cheaper components. but most significantly, the united states exports go into the fastest growing region in the world without a ball and chain around there leg. the ball and chain is unfair taxes on those export. it means you will have better intellectualr your property p currently, for example, vietnam has no resurgence on the intellectual property of pharmaceuticals. america dominates the world pharmaceutical market. it is the innovator, it is the promoter. and frankly, when you got a fast-growing economy like vietnam, you want to have protections. and that was what the tpp was delivering. to american pharmaceutical companies, for example. other, dispute resolution.

some countries you would not want to try and defend your intellectual property or defend a contract in their local courts. so this lotto -- set up where all disputes could be resolved in a free and fair courts, that is a good thing, particularly for the united states, which is a big innovator and certainly has a number of companies at the cutting edge of manufacturing and development. so, there are many protections they're paired australia, a straw you has free-trade japan,nts with korea, and china. and frankly, the united states, for example in beef, were going to go into china and compete directly with us. and we would have lost out of that. and now that you have knocked back to tpp our beef farmers are cheering, right, except they know that at the end of the day, the less, the fewer trade

barriers, the >> test -- less it is beef, the better for everyone. then you compete on quality and that is what we want to do. australia has not had a recession for 26 years. theest continuous period years, longest continuous time of growth in history. accident.an we had to fight for survival. tariffs fixed currency, , centralized wage fixing, and governments on both sides of politics recognized that was not sustainable and have removed the barriers, making australians more prosperous with one of the highest household incomes in the world.

it is not an accident. complacency is a big enemy. are a few people who argue against the complacency. they think that this is the norm. if you do not benchmark against the best in the world, you will fall behind. the united states has always seen itself as having a capacity to be the benchmark. it still can be, but it has to be prepared to lead. >> we are opening up to audience questions. , given that the united states and australia are shared defenders of the values that you articulated, what do you see as the biggest threat in the region?

>> i see this thread around the world. being out of politics has given me a moment of clarity to think about these things. the, you see anti-establishment mood around the world. horrendousin terrorist movements in countries where there are not free voting. other places, you see it in countries with autocrats. places, brexit. asple feel this enfranchised individuals. government and business have centralized power and

decision-making. london,go, los angeles, companies have taken the decision-making out of individual countries and states and centralized it. , social happened is media comes along and it is a loudspeaker for individuals and they say, i deserve a say. sometimes they say it in on edifying ways. consumer goods have empowered individuals and consumers have empowered individuals. media, social media, has empowered individuals. havenment and big as mrs. centralized power and

disenfranchised individuals, peoples why you see wanting more power. localizeo decision-making and power in the hands of communities and individuals, which is a big step in politics, giving up power to hand it off to individuals and communities. to do this on a daily basis is a big step. >> thank you very much. we would like to go to the audience. we are on a live stream. so, let's start right over here. >> thank you very much for your comments. can you hear me? given your background in world finance, which is exceptional, given the disruption that you talked about, brexit, the eu

crisis,the greek debt the trends towards conservatism, the insane saturday night live thing in washington 24 hours a day, what do you see as the future of global finance? you have been in the global bank and the imf. comer.a bank was a big where do you see world finance? the investment bank was established by china and the united states and japan have not joined. 30 or 40 countries have. regionia is in the asian and there is a shortfall in

infrastructure funding in the next 10 years. we want to be part of this. we are next quarter of coal, energy. if we can build a railway line to market, fantastic. if we can build a pipeline that goes through the middle of india and gives energy to hundreds of , fantastic.people in china, we have seen the greatest of eva she and of poverty over the last 30 years. more than 300 million people and we,e out of poverty as humanitarians, should be celebrating this. , there are businesses being set up and they mrs..vanced as

they are not restaurants are coffee shops. not that they are not, don't get me wrong, but they are now empowered, as is india. they skipped an entire generation on communication. they have gone straight to mobile and they are now going to cashless society. there is a great movement and it will continue. the challenge in the world economy is that governments only have so many levers. you have regulation. one letter. you have taxation. you have government spending. you have monetary policy set by the central bank. you can i keep regulating.

sooner or later, you run out of cash. you cannot keep taxing. you cannot tax your way to prosperity. you just take money out of the market. is the centrals banks loosen the policy and a flood of money goes into the economy and it else up. it has created asset inflation. it makes it harder and harder to buy things, particularly if you do not own anything. , even though interest rates are low. they will have to go back up. the bankers will not listen. as government runs out of money, too many governments have been saying there is a popular movement and we need to regulate more and that becomes a constraint. that interest rates will have to go up around the world. it is not sustainable to have so much free cash out there

provided by banks. assett this level of inflation and the rich get richer and the poor get poorer. it will have to be managed carefully. governments run out of money and my terry policy. i cannot tax and they cannot regulate. so, what would i be doing? i would be looking for how to improved the speed and the dynamics of the economy, investing in infrastructure, better quality infrastructure to deliver cheaper outcomes in your daily life and business. and, also, government has to get smaller and it has to be less constraining on individuals. people who are calling for bigger government, what are you thinking?

empowersovernment individuals. government does not create wealth. -- individualste create wealth. government does not create jobs. enterprise creates jobs. >> thank you. we will have someone from the aaib. keep an eye out for that. >> oh. >> you are welcome to join. >> i was the first signature on it. >> thank you for your remarks. given the president's move to look at nafta, withdraw from tpp , do you think that the australian in united states bilateral trade agreement would

be an approach to renegotiate that and what would be the australian governments the new? ew?government's vi lookerybody is entitled to at an agreement and say, "can we make that better? " i get that. we all get that. it is not as simple as just calling up a colleague and saying, can we add a few little things to every business that engages in commerce. this is a very complicated relationship and, what happens businesses build in to the risk-return model the rules of

the game. threeou change the rules quarters of the way through, you go out to tom brady and you say you have to throw the ball backwards, you cannot do it. game over. so, when you change the rules of trade or taxation, unless you're making it easier, changing the rules has a cost. withis town, of all towns, bossesat trading focusing on hedging risk, there is certain risk you cannot hedge in the risk you cannot hedge is political and regulatory. you start building it into the price of everything. you just build it in.

in a country where there is a civil war brewing, it could cost you $12. innovators andat they are working in the basement and they're costing you $100,000 in a countryloy where there is a civil war or a , "we need toll say get you out of there. people react to fear, adversity, and they do it dramatically. you have to be very considerate trade. you engage in the i think the president is in that space. i think the president understands that. it has only been three weeks. give him a go, you know?

>> next question. the value in global affairs is based on the support of trade and defense, but what else eship?ts this mat there has to be other things that connect the country. >> it is every single area of engagement. medical research. we have medical researchers working in boston at key institutions. -- a children's neurosurgeon. he was the head of neurosurgery and he operated on a friend of mine.

at the medical level, it is very deep. pharmaceutical companies, a range of different businesses. are plentyn, there of students here at the university of chicago and there are thousands of australian indents studying here and australia. a vast number, even on capitol hill. there are a number of interns here every year and congressmen and women come up to me and say, "thank you." we have producers and directors have business we entrepreneurs, from rupert murdoch to the head of dow chemical.

we have the executive that morgan stanley. you know, every area. there is a cross-engagement. one of the things that has that there were one million american soldiers based what was notnd reported at the time was that they had brawls between the australian and american men, inause the american men were better uniforms, better paid, and chasing the australian women. australian women moved to the united states. angry oneittle somebody says, my mother was us trillion, because they came home with american soldiers. it is still happening today.

it is fantastic. different with two here in washington. thank you. [applause] , the political action conference, kicks off tomorrow. on c-span2, it starts with kellyanne conway. later in the day, more speeches on c-span with betsy devos, reinceprevious --

priebus and steve bannon. c-span as donald trump delivers his address to a joint session of congress. >> this is going to be the busiest congress we have had in decades. >> live on c-span. c-span radio app. announced the discovery of seven earthlike planets orbiting a star. they made the announcement at nasa headquarters and took questions from reporters. >> good afternoon. i am felicia from the office of communications and we are live from nasa headquarters. we have some