Australia Japan
Partners in regional commerce and engagement
Australia–Japan Partners in regional commerce and engagement
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National Library of Australia Cataloguing-in-Publication entry
Author: Jim Gleeson Title: Australia–Japan: Partners in regional commerce and engagement ISBN: 978-1-921156-65-6 Notes: Includes index
Australia–Japan Partners in regional commerce and engagement
Jim Gleeson
ROLL OF HONOUR Major Sponsors BP Shell Footwork/Toll Lend Lease Mitsui BHP
Key Sponsors
Australia & New Zealand Banking Corp
Baker & McKenzie
National Australia Bank
JX Holdings
Meat & Livestock Australia
Woodside
Australia Japan Federation
Focus Publishing
North West Shelf
Mitsubishi Heavy Industries Sojitz Corporation West Australian Government
Supporting Sponsors
Allens Arthur Robinson
Clayton Utz
Deloitte
ADVISORY GROUP Ms Robyn Archer, AO, Creative Director,
Mr Paul Gallagher, Executive Director, AJBCC
Centenary of Canberra Mr Tim Lester, Partner, AAR Mr Daisaburo Akita, Chairman and Managing Director, Mitsui & Co., Australia
Mr Huw McKay, Senior International Economist, Westpac
Ms Melanie Brock, Regional Manager, MLA, Japan Mr John McBride, AO, Consultant Prof Jenny Corbett, Prof of Economics and Executive Director, Australia-Japan Research Centre, Crawford School of Economics and Government,
Mr Murray McLean, Former Australian Ambassador to Japan
ANU College of Asia & the Pacific Mr Philip Porter, Director, Philip Porter Consulting Prof Peter Drysdale, Professor of Economics and the Head of the East Asian Bureau of Economic Research and East Asia Forum-Crawford School
Mr Peter Yates, AM, Chairman of the Royal Institution of Australia and the Australian Science Media Centre
of Economics and Government Mr Craig Peacock, Commissioner, Mr Greg Earl, Asia-Pacific Editor, Australian Financial Review
Government of Western Australia, Tokyo
Table of contents
Advisory Group Roll of Honour
4 4
Part 3 Strong commercial partners
62
Showcase of key business sectors
Forewords
6
Craig Emerson, Australian Minister for Trade
Part 4 Partners in international engagement
94
Strategic partnerships
and Competitiveness Bruce Miller, Australian Ambassador to Japan
Introduction
8
Part 5 Culture and Lifestyle
124
Sir Rod Eddington, AO
Cultural ties in sport, food, design, tourism and arts
Part 1 Trusted Friends
Business Directory 10
148
Australia-Japan businesses
Australia-Japan relationship
Index Part 2 Australia–Japan Business
154
A—Z 32
Business collaboration in Asia
Acknowledgements
160
|5
forewords
Craig Emerson
Australian Minister for TRADE and Competitiveness It gives me great pleasure to introduce Australia-Japan: Partners in Regional Commerce and Engagement, which celebrates the 50th anniversary of the Australia-Japan Business Co-operation Committee and the Japan-Australia Business Co-operation Committee. Japan is Australia’s second-largest two-way trading partner, accounting for nearly 12 per cent of total trade. It is also Australia’s third-largest source of foreign investment, and has been instrumental in the development of many Australian industries. For Japan, Australia is a secure supplier of resources and food, and an important market for vehicle sales and inbound tourists. Australia is also home to more than 70,000 Japanese citizens. It is the third-largest group of Japanese people living outside Japan. The Hon Dr Craig Emerson, MP Australian Minister for Trade and Competitiveness
Australia’s economic partnership with Japan extends well beyond trade in goods and services. I am confident the relationship will continue to evolve as both countries reap the benefits of the monumental economic, strategic and social changes underway in the Asian region during the Asian Century. To examine how best to capitalise on this global shift in economic power, the Australian Government has commissioned a White Paper on Australia in the Asian Century. The project’s aim is to broaden and deepen Australia’s engagement with the fastest-growing region on earth. Japan is a big part of that story, so it follows that Australia’s relationship with Japan can only strengthen further. I am pleased to commend Australia-Japan: Partners in Regional Commerce and Engagement as a timely tribute to the many individuals and businesses whose efforts have helped our two countries to prosper mutually.
6 | Australia—Japan
Bruce Miller Australian Ambassador
The first shipments of coal and wool from Australia to Japan well over a century ago sowed the seeds of an economic relationship that has become one of the most successful in Australia’s history. Australia is now the largest single provider of primary energy to Japan as well as one of its major suppliers of food. At the same time, Japanese demand for Australia’s resources—and the accompanying investment—has contributed enormously to the development of some of our strongest industries. To take advantage of these complementarities, Australia and Japan are seeking to take their economic partnership to a new level by negotiating a Free Trade Agreement. But the relationship between Australia and Japan goes well beyond trade and investment. The growing closeness of our defence cooperation was evident following the Great East Japan Earthquake, when the Australian Defence Force helped Japan in its disaster response efforts. Australia and Japan are also cooperating to address a broad range of
Mr Bruce Miller Australian Ambassador to Japan
challenges in regional and global forums. These include efforts to reduce the threat of wars and natural disasters, enhance the management of the international economy, tackle the problem of climate change, and promote nuclear disarmament and non-proliferation. Ultimately, however, the strength of the relationship between Australia and Japan derives from the goodwill engendered by close people-to-people links. These are reflected in educational exchanges, tourism, business collaboration, grassroots organisations and a myriad of other connections developed over many years. It is my great pleasure to contribute to this important publication, which highlights the remarkable partnership between Australia and Japan.
FOREWORD | 7
Introduction
Sir Rod Eddington, AO B. Eng. (Hons) (UWA), M. Eng. Sci. (UWA), Hon. LLD (UWA), D. Phil. (Oxon)
The spectrum of bilateral people-to-people, educational, scientific, political, security relationships is as comprehensive as any that Australia enjoys with other nations. Indeed, it exceeds the level of contact enjoyed with most other nations. Sister-state, city and port agreements exceed 100 in number and thousands of Australian and Japanese regularly interact through the activities of the Australia-Japan ‘friendship’ societies that exist in both countries. There is great mutual respect and trust evident in our communities. We commend the foresight and the courage of the politicians and senior bureaucrats who aspired for this level of contact when they negotiated the Australia-Japan Agreement on Commerce of 1957 and the Basic Treaty on Friendship and Co-operation of 1976. Both were unique at the time for one Sir Rod Eddington, AO
or both of the parties. Much bilateral contact is underpinned by the positive experiences of students and young business people on exchange programs and the bilateral commerce. The latter has spanned 150 years. We are familiar with the statistics of the bilateral two-way trade and its above average annual growth over many decades and of Japan being the third-largest foreign direct investor in Australia. The ‘complementarity’ of the bilateral commerce has been remarked upon over the years, as have the benefits of the restructuring of our economy to make Australia a ‘competitive’, ‘safe’ and ‘secure’ supplier of agricultural commodities, energy and mineral resources. Over the 50 years since the establishment of the Australia Japan Business Co-operation Committee in August 1962 (and of its counterpart, the Japan Australia Business Co-operation Committee, in February 1963)
8 | Australia—Japan
both nations' economies have changed substantially. Today, Australia and Japan are two ‘services’-dominated, balanced and sophisticated economies. There is broad interaction between Australian and Japanese companies in third markets in Asia, including in Japan’s extensive supply chains and production networks. In recent years, fresh consideration has been given to the unrealised opportunities in bilateral commerce. When added to the reality of an Asia-led globalising of the world economy, new characteristics are being identified for bilateral commerce. First, whilst existing opportunities in energy, resources and agribusiness trrading are not exhausted, the majority of the fresh opportunities are in the ‘services’ and ‘knowledge’ sectors. Second, as an echo of the past, and due to present day sophistication in both economies, there are many new, world-class complementarities being recognised, for instance, in infrastructure, financial services, aged and health care, and real estate management. Third, the mutual respect and trust built up over the decades, combined with cultural awareness and many long-standing relationships-turned-friendships, underpin the bilateral willingness to explore new ventures and collaborations. Against a backdrop of demographic and structural shift, the developing economies of Asia have huge catalogues of ‘social’ and ‘economic’ infrastructure that require development, and a significant need to increase their institutions' ability to assist their people to realise their aspirations. The governments of Australia and Japan have a strong record for collaborating in Asia on humanitarian, disaster relief, anti-terrorism and security initiatives, and, via regional financial institutions, for building financial stability mechanisms and contributing to economic development. Therefore, in the ‘Asian century', it is expected that the existing commercial links will expand to facilitate new ways to undertake collaborative work in Australia, Japan and third countries. The 21st century will be characterised by Australia and Japan engaging with third-country governments and businesses in pursuit of new and exciting outcomes.
INTRODUCTION | 9
1 Trusted friends
Australia-Japan relationship
Trusted friendships
Words like partnership and affiliation understate the breadth or depth of Australia’s close ties with Japan. Since the signing of the Australia-Japan Commerce Agreement in 1957, the relationship has blossomed from a mutually profitable agreement between trading partners to a trusted friendship spanning security and strategic interests, economic objectives, research initiatives and close person-to-person connections. Australia’s friendship with Japan is the cornerstone of its engagement with its Asian neighbours. It is a comprehensive affiliation based on shared values, common interests and a like-minded approach to security challenges. Japan has been Australia’s closest and most consistent friend in Asia for many years. The relationship is central to Australia’s foreign policy objectives and trade priorities. As Japan and Australia have responded to the recent changes taking place in the world, they have grown closer than ever before. The two countries implemented strong economic stimulus packages that increased production and helped to mitigate the effects of the global economic downturn. Their friendship is stronger today than it has been in the past, and shows every sign of continuing to strengthen into the future.
Dignity and resilience
After being ravaged by the
The ability of the Japanese to transform their country following the devastation of World
unprecedented Allied bombing
War II into one of the world’s leading economic powerhouses with one of the world’s highest
campain that ended World War II,
living standards—a success story unprecedented in modern times—reflects the diligence and
Japan rebuilt itself, creating one of
resilience of the Japanese character. The curiosity and ingenuity of its 60 million-strong, highly
the world's leading economies.
12 | Australia—Japan
educated workforce have made Japan a leader of the industrial world. It has created many of the technologies that characterise the technological age in which we live. While Japanese people represent less than two per cent of the world’s population, they account for nearly 10 per cent of global GDP and five per cent of global trade. With a per capita GDP of around $US42,000, Japan will be the engine room of Asian economic development for many years into the future, particularly through its technological innovation and foreign Japan is one of the world's biggest buyers of Australian coal and gas. Australia is a rich market for Japanese manufactured products.
direct investment. Japan is the world’s largest creditor nation, with net foreign assets worth over five per cent of world GDP. Japan is Australia’s second-largest export market, accounting for about one-fifth of our global exports in goods and services. Business, tourism, education and sister-city ties have fostered strong interpersonal links.
Complementary business activities The large gains for both Australia and Japan from the friendship are partly attributable to the fact that their resources are mutually complementary. Japan values Australia as a dependable supplier of energy and strategic resources to fuel its industry, while Australia has a ready appetite for Japanese products. Australia remains Japan’s largest supplier of all forms of energy other than oil. For Japan, the attractiveness of Australia as a supplier of energy and raw materials lies in its proximity and inherent cost advantages, coupled with 14 | Australia—Japan
political stability and willingness to accept foreign investment. Today, Australia’s annual exports to Japan are valued at just over $A40 billion, consisting principally of coal, LNG, iron ore, natural gas, beef and dairy products, gold, woodchips, aluminium ingots, alumina, petroleum and petroleum products, and wool. During the same period, Japan exports around $A14 billion worth of products to Australia, principally automobiles and automotive parts, general machinery, electrical equipment, rubber products, chemicals, precision machinery, iron and steel products and textile products. As we embrace products like the Apple iPhone or iPod in preference to antecedents such as the Sony Walkman, we can easily forget that most of the components inside an iPhone are made in Japan. Products ranging from Korean consumer electronics to Chinese automobiles are made largely from Japanese components. As iconic Japanese brands in consumer products make way for other market entrants, we can be assured that Japanese manufacturing is as successful now as it ever has been, if rather less conspicuous. Despite attention being diverted to other emerging powers in the region, Japan remains an economic colossus, having a major impact on the global economy. Japan’s economic presence has made a major contribution to many economies around the world, including Australia. Two-way trade between Australia and Japan has tripled over the last 20 years, and the long-term trend remains positive. Japanese direct investment plays a key role in the development of many Australian export industries. Australia is one of the largest recipients of offshore investment by Japanese mutual funds. Similarly, Japan is one of the largest destinations for Australian investment abroad. Japanese investors have become established owners of iconic Australian brands of food and alcoholic beverages as Japanese companies have increased their local and international market shares and built supply chains back to Japan. Trusted friends | 15
Australian Minister for Foreign
As of the end of 2008, Japan’s direct investment in Australia was $A36 billion, 16 per cent
Affairs Stephen Smith (left),
more than the $A31 billion invested the previous year, making Japan one of Australia’s fastest
Japanese Minister for Foreign
growing sources of foreign direct investment. According to the Australian Bureau of Statistics,
Affairs Katsuya Okada and West
the value of direct and indirect Japanese investment in Australia is $A90 billion.
Australian Premier Colin Barnett at the War Memorial in Perth, Western
Joint opportunities in Asia
Australia's capital city. Okada's two-
Australia’s commercial interests with Japan now transcend direct trade with Japan itself
day visit to Australia was the first
and have become regional in nature. Companies from both countries operate and invest in
by an official of Japan's then-new
third-country supply and manufacturing networks. As Japanese business has extended its
government.
reach into Asia, Japan has become a conduit for Australian exports into a vastly extended marketplace. Japanese businesses have now created a base in Australia from which to export directly to Asia, with the value of exports to Asian markets (excluding Japan) estimated at $A6 billion. This figure is in addition to $A51 billion worth of Australian exports to Japan. Since the collapse of Japan’s bubble economy in 1990, major structural adjustments have been made, prompting the nation’s biggest corporations to rationalise production and seek less expensive manufacturing bases offshore. As a result, they have established a strong presence internationally, especially in Asia. As an example of this trend, Peter Drysdale from the Crawford School of Economics highlights the increase in the proportion of electronics products that Japanese corporations have manufactured offshore (which rose from 11.4 per cent in 1990 to 45.5 per cent in 2007). He says that the Japanese market is no longer confined to Japan itself. It is a huge international market created by the activities of Japanese business and investors, especially through Asian production networks. This expanding market is buoyed by support from the Japanese government and it has an expanding base in Australian manufacturing, agriculture and services.
16 | Australia—Japan
The major realignments taking place in the world are transforming Asia into the world’s centre of economic gravity. For the first time, Australians find themselves in the region that will become the centre of global affairs. Asia is home to the world’s two most populous countries, the world’s largest holders of foreign exchange reserves, two of the world’s top three economies and three of the world’s five largest militaries. The countries of South East Asia, despite the 1997 and 2008 financial crises, have continued to grow strongly. According to a recent study, Asia will account for around 45 per cent of global GDP by 2020, one-third of global trade and nearly one-quarter of global military spending. Much of the history of the 21st century will be written and shaped in our neighbourhood. Mirroring the remarkable development
Above: Emeritus Professor Peter Drysdale
of Australia and Japan’s bilateral trade is the evolution of our
(pictured)says the Japanese market has been
defence and security ties. The Australia-Japan Joint Foreign
spread worldwide by the activities of multinational
and Defence Ministerial Consultations, the so-called “2+2”
Japanese companies and investors.
meeting, is the only formal foreign and defence strategic
Top: Royal Australian Air Force Wing Commander
dialogue that Australia has in Asia. It is a product of the
Paul Carpenter receives a gift from a member
Japan-Australia Joint Declaration on Security Co-operation,
of the Japan Air Self-Defense Force. Following
which was the first such document that Japan signed with
World War II, Australia was the first country (other
any country other than the United States. Former prime
than the US) with which Japan made a joint
ministers John Howard and Junichiro Koizumi signed the
declaration on security co-operation.
Trusted friends | 17
Japanese-Australian relationships have developed well beyond banking and finance to include security, investments and a burgeoning number of personal exchanges.
18 | Australia—Japan
Australia-Japan Trade and Economic Framework in July
in bilateral trade and enabled Australia-Japan relations
2003, when John Howard visited Japan.
to develop into a multifaceted alliance spanning politics,
Under this framework, the two countries jointly researched the liberalisation of trade and investment, and at the Prime
security, investments and personal exchanges. From the treaty in 1957, through to joint efforts to
Ministers' meeting held in Tokyo in April 2005, the two
establish APEC in the 1980s under Bob Hawke’s leadership,
leaders agreed to investigate the potential advantages and
and to their security co-operation, the developments in
disadvantages of an FTA.
Australia’s friendship with Japan have paved the way for its
In a speech at the Australia-Japan conference dinner on 11 February 2010, Australian Defence Minister Stephen
engagement with the region. In 1974, Japan and Australia signed the Cultural
Smith identified five major areas of Australia-Japan co-
Agreement, and the two countries have conducted various
operation. Together, they are working through the G20 to
cultural exchange programs, involving academics, teachers,
revitalise the global economy, enhance the nations’ economic
students, researchers, artists and athletes as well as a variety
relationship through the conclusion of a comprehensive free
of exhibitions and performances, primarily through the
trade agreement, apply their growing defence partnership
Japan Foundation and the Australia-Japan Foundation.
to tackling problems in regional and international security,
In 1976, Australia and Japan signed the Basic Treaty of
advance nuclear non-proliferation and disarmament, and
Friendship and Co-operation, also known as the Nara Treaty.
increase bilateral collaboration in science, technology and
This alliance became the basis of the non-economic ties that
innovation to find ways to combat climate change.
bind Australia and Japan. It provided a framework under which many areas of co-operation could develop, including
Firmly established relationship
political and cultural links. It promoted a non-discriminatory
Following the termination of the Allied occupation of
approach to immigration and investment, and improved the
Japan, diplomatic relations between Australia and Japan
security of Japan’s supply of resources.
were re-established in 1952, with Haruhiko Nishi appointed
Just as the 1957 Agreement on Commerce enabled
as Japanese ambassador to Australia. On 6 July 1957, the
Australia’s and Japan’s trade relations to blossom, the 1976
signing of the Australia-Japan Agreement on Commerce
Treaty of Friendship and Co-operation set the stage for
set the stage for dramatic growth in trade and economic
rapid expansion in investment. The treaty offered a stable
integration between the two countries and became the
framework for the growth of both trade and investment and
basis of the strong bilateral partnership that allowed other
a much closer political relationship. A tangible outcome of
links to develop. The agreement was signed despite residual
the treaty was the Working Holiday Program, the first signed
tensions between the former World War II adversaries,
by either country, that allowed young people from Japan and
and it cemented Japan’s emerging position in Australia as
Australia to enjoy extended working holidays of up to one
an important export market and source of manufactured
year in each other’s country.
goods. Japan overtook the United Kingdom as Australia’s
The first Australia-Japan conference was held in Australia
largest export market in 1966, a status it held for more
in 2001. It was established to bring together leaders in
than 40 years. The agreement ushered in a 50-year expansion
their fields from both countries to discuss all aspects of Trusted friends | 19
the Australia-Japan relationship, including political and economic co-operation, education, science, the media, the arts and culture. Few people present at the 2001 conference would have predicted that Australia and Japan would now be negotiating a free trade agreement or holding annual joint meetings of Foreign Affairs and Defence ministers. On 16 July 2003, the Australian and Japanese prime ministers signed a trade and economic agreement, which committed the two countries to pursue closer economic The 2005 World Expo in Alchi, Japan,
ties. The agreement promotes liberalisation of trade and investment through co-operation
emphasised the many attractions of
in matters concerning customs and quarantine, and the mutual recognition of professional
the Australian way of life.
qualifications. Other areas that fall within the scope of the agreement are food, e-commerce and regulation of the securities industry. In 2007, Australia and Japan signed a joint declaration on security co-operation, which was the first issued by Japan with another country other than the United States.
Increasing knowledge, creating value Austrade officers based in Japan believe that most future growth and interaction between the Australian and Japanese economies will occur in those sectors that are most knowledgeintensive or add the most value, such as the life sciences, information technology, nanotechnology, aerospace and environmental technologies. Services account for 75 to 80 per cent of Australia and Japan's domestic economies. As Australia moved ahead of Japan to deregulate and reform its service sector, Australian service operators became comparatively more efficient. As a result, Australian service providers now are in a strong position to sell 20 | Australia—Japan
Sydney's central business district rises beside one of the greatest natural harbours – and most famous bridges – in the world.
their services to Japanese customers. Service sectors where
these sectors via joint ventures or acquisitions, providing
Australian companies appear to be more competitive include
considerable scope for it to partner with Australian firms
government services, professional services such as legal and
providing financial services, legal services and engineering.
accounting, medical and aged care services, real-estate and
On a visit to Japan in 2008, former prime minister Rudd
property services, vocational training, recreational, music and
identified financial services as the ‘fourth pillar’ of Australia’s
performing arts and hospitality services.
relationship with Japan, noting that it constituted only eight
Concerning Japan's long-term social, cultural and demographic trends, Austrade believes that Japanese consumers will spend more time on leisure and recreation.
per cent of two-way trade between the two countries and highlighting the potential for growth. Negotiations toward an Australia-Japan free trade
There are potential opportunities in recreational sports,
agreement include discussions on a pathway to enable
hobbies, pets, arts and entertainment, and in health and
professional and financial services companies to establish
lifestyle related areas such as aromatherapy and nutrition.
themselves in Japan.
Australia is an internationally competitive provider of
A 2009 OECD report identified Japan as the world’s
banking services, financial services and infrastructure
fifth-largest aid donor. When the value of loans is included,
services and has important regional advantages. Although
it is the second largest. Its total aid disbursements in 2007
the provision of Australian services in countries such as
reached $US7.7 billion, reflecting its deep interest in the
China, Singapore and Malaysia has been strong, the provision
economic and political security of Asia.
of these services in Asia as a whole has been limited, and there is considerable growth potential. The international competitiveness of Japanese service consultancies suffers from the closed nature of Japan’s domestic market and the predominance of English in these
Japan supports infrastructure development and the transfer of knowledge in the region through official development assistance (ODA) and supports private sector investment and trade through loans for large-scale projects. Japan is the second largest contributor to the United
areas. A recent Austrade report points out that, traditionally,
Nations. Over the past 50 years, Japan has helped to create a
Japan has preferred to expand its international activities in
better world, with a foreign policy agenda squarely aimed at Trusted friends | 21
promoting global peace and prosperity. It has been a clear voice on the world stage for the non-proliferation of nuclear weapons. It is a major provider of development assistance around the globe. These co-operative relationships are implemented through economic partnership arrangements and, more recently, through public-private partnerships (PPPs)—an area where Australia has considerable experience and expertise. The Sydney Harbour Tunnel was one such PPP collaboration between Australia and Japan, and there is considerable scope for Australian companies to engage in further collaborations of this type with Japanese entities. By co-ordinating its ODA with investment and trade, Japan has contributed significantly to South East Asia’s strong economic development—and Australia is poised to become an active participant. As Peter Drysdale of the Crawford School of Economics has observed, “Given the focus of Japan’s aid program on Asia, and Japan’s recognition of Australian experience in the Pacific as well as Asia, Australia’s share of these [development procurement] contracts and its participation in development studies consultancies could be significantly increased.” The Australian automotive sector is one of Australia's largest export industries.
Identifying then realising potential While the provision of Australian construction services in Japan and other parts of Asia is in its infancy, there are signs of growth and there is strong potential in this area. Several Australian companies have successfully bid for major construction projects across Asia. For example, Leighton Holdings
22 | Australia—Japan
has completed transport and other infrastructure projects in Asia, including
The value of Australian automotive
the very fast train project in Taiwan in 2007. John Holland has been making
exports to Japan exceeds that of
strong gains in infrastructure work in the oil and gas and resources sectors,
traditional commodities such as
and some architectural companies have worked on key urban construction
wheat, wool and beef.
projects in Indonesia and China. The Australian automotive sector is one of the country’s largest export industries, exceeding traditional commodities such as wheat, wool and beef, while automotive imports make Australia the world’s third-largest market for passenger cars manufactured in Japan. At the epicentre of this vibrant industry is Toyota Australia, the most successful of the three local car producers, and the largest exporter of passenger vehicles from Australia. On a visit to the Toyota head office in Nagoya in June 2008, former prime minister Kevin Rudd announced the provision of $A35 million from the new Green Car Innovation Fund as an incentive to assemble cars at Toyota’s Altona factory in Melbourne. The Victorian government matched the amount, and Toyota now builds 10,000 hybrid Camry vehicles per year at the plant. Indicative of the expanding collaboration in this sector, Toyota invested $A125 million in a new engine plant in Melbourne to build new petrol-powered Camrys. Exports of new vehicles now exceed 160,000 units, nearly half of domestic production. The industry is increasingly reliant on markets the Middle East, the United States and New Zealand, although there are opportunities for growth in emerging markets such as China, Russia and India. Following the financial support provided to Toyota’s subsidiaries in Thailand by the Trusted friends | 23
parent company and the Thai government in the wake of
Australia and Japan are negotiating a free trade agreement
the Asian financial crisis of 1997, imports to Australia from
(FTA) that would create significant economic benefits for
Toyota Thailand have become the fastest growing segment
both counttries. Negotiations have been underway since
of the Australian automotive industry. Peter Drysdale of the
2007 (as at February 2012, 14 rounds had been held). While
Crawford School of Economics believes that, as no reciprocal
agriculture is a sensitive area for Japan in the negotiations,
access rights have been granted for Australian automotive
an FTA could help strengthen food trade relations, helping
products entering Thailand, the Australian government’s
Japan to realise its food security objectives and providing
partnership with Toyota can be a means of providing a more
export opportunities for Australia.
balanced trade flow in this area. IBIS World forecasts exports from the Australian car
Surveys conducted by Austrade and JETRO emphasise the need for Australian companies establishing businesses
industry will expand by an average 4.8 per cent per annum
in Japan to ensure they have sufficient capital, resources and
over the next five years, reaching $A5.4 billion.
information, and they are fully prepared for the difficulties
In the area of agricultural food products, Japan is
generally encountered whilst developing new and unfamiliar
Australia’s largest export market, accounting for 20 per cent
markets. They need to overcome intangible barriers, such
of total exports, providing $A22 billion in export revenue. In
as a lack of knowledge of the local business environment,
2008, Japan imported 22 per cent of its wheat, 40 per cent of
and have adequate resources to sustain their presence in the
its sugar, 89 per cent of its beef and 37 per cent of its natural
market. Co-operation between governments and businesses
cheese from Australia.
of both countries can assist in smoothing the way to
Many Japanese food companies have created a supply
profitable trade.
chain to their local market. These include Kirin Australia’s barley malt production in Perth, Snow Brand’s dairy
Mutual interest and trust
processing facilities in Victoria, and Nippon Meat Packers’
According to a recent survey conducted by Japan’s Ministry
feedlots and processing facilities in Queensland and New
of Foreign Affairs, 70 per cent of Australians believe that
South Wales. Nippon Ham, Japan’s largest meat processor,
Australia and Japan should be closer in every respect, 70
has joint ventures in Australia and several other countries
per cent believe that Japan-Australia relations are good
which export processed meat products to Japan.
or excellent and 80 per cent believe that Australia should
Japanese companies play a major role in the Australian food
encourage more Japanese to come to Australia. The same pool
and beverage industry, and the products are sold mainly in
revealed that fewer than 10 per cent were aware that Japan is
Australia and Japan. There is considerable scope for Australian
one of Australia’s largest export markets.
beer, dairy products, animal feed, wine and other beverages to
A Lowy Institute survey published in 2007 found that
be distributed through Japanese subsidiaries in Asia.
Australians trusted Japan “to act responsibly in the world”
In supplying the Japanese domestic market with
more than any other country. The familiarity and trust that
agricultural food products, Japanese companies have the
Australians have for Japanese companies suggest there are
advantage of expertise in Japanese regulations concerning
opportunities for Australia and Japan to strengthen bilateral
additives and food labelling.
co-operation in trade and investment in the region.
24 | Australia—Japan
Toyota i-REAL personal mobility concept car: Japan is a world leader in the design and production of futuristic vehicles of all types.
Trusted friends | 25
A poll by the Japanese government broadcaster, NHK,
of September 2010, six states and 101 cities in Australia
in 2009 showed that, of Japan’s international partners,
had sister relationships with Japan. Most Japanese who
Australia is the only country in which Japanese trust and
come to Australia do so on short-term visits as tourists and
interest have been rising over the last decade.
businesspeople (Japan is Australia's third-largest source of
The diverse relationship between the Japanese and
tourists). In the 2009 calendar year, Japan was the source
Australian people includes co-operation between Australian
of approximately 355,000 visitors (Tourism Australia). In
and Japanese lifesavers on Japanese beaches, participation
2008, 212,000 Australians visited Japan (Japan National
by Australian artists in Japanese rural regeneration projects,
Tourist Organisation). As of the end of 2009, there were
125,000 Japanese visitors to the unique indigenous art
71,000 Japanese residents in Australia and just over 10,000
contained in the “Emily” exhibition of 2008, and the
Australian residents in Japan. During that year, 90,000
collaboration between Australian and Japanese musicians to
people travelled to Australia for educational purposes, 16,000
create a unique blend of jazz. Links created through tourism
of which studied full-time in Australia. These links were
have spawned a recent increase in the numbers of Australian
further enhanced by the Working Holiday program, which
visitors to Hokkaido and Nagano to enjoy the snow.
was initiated between Japan and Australia
Strong people-to-people links include students who spend time on homestay programs, learning the language and culture of the other country. Much of this activity has flourished because Japanese is
on 1 December 1980. In 2006, the Australia-Japan Year of Exchange commemorated the 30th anniversary of Basic Treaty of Friendship and Co-operation between Japan and Australia,
taught widely in Australian schools. It has long been one
and was marked by a variety of events to expand bilateral
of the most popular foreign languages studied in Australia,
ties. Today, people-to-people links are enhanced by
with over 360,000 students. In recognition of this fact, the
16 Australia-Japan and 46 Japan-Australia societies.
Australian government has committed $A62 million to
These add a grassroots dimension to the relationship,
the teaching of Asian languages in Australia. There are 658
which includes countless community relationships,
sister school relationships between Australia and Japan. As
university programs, school programs and exchanges.
26 | Australia—Japan
The Japanese business community in Australia, represented by the Australia-Japan Business Co-operation Committee (AJBCC) and its Japanese counterpart, the
private levels to jointly realise the very significant economic opportunities that exist for both countries in Asia. The Australia-Japan friendship is one of closeness and
Japan-Australia Business Co-operation Committee
vital importance. It has a strong record of achievement in
(JABCC), has held conferences in Australia and Japan
collaboration in a range of bilateral areas. More importantly,
annually since 1963. The last meeting ran over three
it is a relationship that is full of potential, through which
days in Kyoto in October 2011, and was attended by 235
Australia and Japan can co-operate to meet the challenges of
delegates representing business leaders, former diplomats
a rapidly changing world.
and others from Australia and Japan. Titles of participants’ presentations included “Strengthening the Japan-Australia relationship to balance the growth of China and India” and “Sustainable growth—the challenges for the Japanese and Australian economies”. The next conference, the commemorative 50th event, is to be held in Sydney in October 2012. Conferences such as these represent a remarkable diplomatic achievement and indicate the value that both sides place in the friendship. While the governments of Australia and Japan are supportive of such events, it is the broader business and private communities that have ensured their success. They add a vital dimension to our friendship with Japan. Australia and Japan can now employ the deep sense of familiarity and goodwill they have developed at public and Trusted friends | 27
Lend Lease Japan, Inc. Headquartered in Sydney, Lend Lease is one of the world's leading fully integrated property and infrastructure solutions providers, employing more than 17,000 people around the world. Our clients, partners and investors can choose to leverage our strengths and local expertise at any stage of the property and infrastructure spectrum—from development, investment management, project management and construction, to asset and property management —or partner with us right through the complete journey. With a strong focus on construction management, project management and building consultancy services, Lend Lease has been in Japan since 1988 and now has over 700 employees in 10 cities across the country. We have the capability to deliver the most complex of projects, from concept through to completion with a strong commitment to providing cost transparency to secure value for money, ensure health and safety and deliver a sustainable built environment. Whether it be a fit-out of an office space, a large-scale construction, new telecommunications infrastructure or sustainable building consultancy services, Lend Lease has been providing certainty of delivery second to none. Core skills in our Japan team are diverse, allowing us to undertake a wide range of projects in roles ranging from task-specific support to fully integrated project management. As an experienced builder, planner and manager, we tailor our services to the needs of each project, leveraging the capabilities and customs of the local market while drawing upon our worldwide experience to produce creative and economical ways to implement and manage building projects in Japan.
Restoration in the disaster area after the Great East Japan Earthquake
28 | Australia — Japan
Okinawa Institute of Science and Technology
Over the years, our approach has been refined specifically to respond to increasing demand
At Lend Lease, we are committed
in Japan for an independent “client advocate� who can provide professional construction
to working with communities,
planning and project management services on a pure consultancy basis.
clients and our colleagues in Japan
Lend Lease is absolutely committed to being a part of rejuvenating Japan, from
to create positive legacies, from
implementing the best globally available, sustainable building solutions right through to
funding a project right through
supporting our Japanese friends on the ground after the Tohoku natural disaster by repairing
to developing and constructing
parts of the telecommunications infrastructure.
state-of-the-art buildings and
In recent years, there has been a growing appetite for Japanese developers and investors
infrastructure.
to look for avenues for growth in international markets. We have significant relationships with our Japanese partners in Australia and, increasingly, in other parts of Asia which are prospering. We will continue to foster these relationships to meet the broad range of property related needs of our Japanese friends and partners. AUSTRALIA–JAPAN | 29
Australia and New Zealand Banking Group Limited
With a proud heritage spanning more than 175 years, ANZ is the leading Australian bank
ANZ capitalises on its global
in Asia. We are committed to delivering institutional, commercial, retail, wealth and private
scale and local expertise in the
banking solutions to more than six million customers across 32 markets worldwide.
Asia Pacific. In 2011, ANZ won
We opened our first representative office in Tokyo in 1969 and were awarded a banking
the award for the Best Foreign
licence in 1985. We were the first Australian bank to open a branch in Osaka in 1990 and
Exchange Bank in Japan for
a sub-branch in Nagoya in 2010.
Australian and New Zealand dollars
With 130 staff in Japan, we are the only Australian bank to offer a wide range of services to retail banking customers, corporate and institutional clients, and multinational corporate customers in Japan. In 2011, corporates and financial institutions voted ANZ the Best Foreign Exchange Bank in Japan for Australian and New Zealand dollars for the 19th consecutive year. “As the world’s third-largest economy with rapidly growing links to emerging Asia, Japan is crucial to ANZ’s super regional strategy. Our corporate and institutional customers in Japan are increasingly looking to emerging Asia to generate growth, and they are growing in the same region that ANZ is growing,” said Alex Thursby, ANZ CEO, Asia Pacific, Europe & America. ANZ remains one of a select group of banks globally that have a AA category credit rating and emerged from the global financial crisis with the same rating it had when it commenced.1 With an extensive network and in-depth insights, we aspire to be a bank where relationships and knowledge drive superior client performance. • Institutional banking products: project finance, ECA finance, corporate finance, trade and supply chain, payments and cash management, commodity, foreign exchange and interest rate hedging • Retail banking and wealth management products: a suite of wealth management products including deposits, dual currency investments, mutual funds and foreign exchange 1. Aa2 from Mood’s and AA- from Standard & Poor’s (as at December 2011)
30 | Australia — Japan
for the 19th consecutive year.
Western Australia and Japan Creating and connecting opportunities Japan has very important trade and investment ties with Western Australia. Japanese companies and investors played a pioneering role in the development of the modern Western Australian economy over the last 40 years, and that role continues to grow and deepen through Japanese participation in a number of recent major developments. Looking outward, as one of the world’s largest and most sophisticated consumer markets, Japan presents myriad opportunities for export-ready and focused Western Australian companies. Assisting with inbound investment The North Asia Agency of the Government of Western Australia, with offices in Tokyo and Kobe, plays a pivotal role in assisting Japanese companies interested in investing in Western Australia. Our Tokyo office has extensive ties with Japanese government departments, company headquarters and market movers in Tokyo. Now in its 31st year, our Kobe office co-ordinates our comprehensive sister-state relationship with Hyogo Prefecture, and provides a direct portal for doing business in the vibrant Kansai Region economy. Expanding Western Australian exports to Japan For Western Australian companies looking to expand their business in Japan, the North Asia Agency is able to assist with all facets of businessmatching and market entry. The expanding list of WA exports to Japan extends beyond the now traditional sectors of resources and produce, to include specialist and value-added products and services that may
View over the CBD of Perth and the pristine Swan River
have either general or niche market appeal in Japan. A wider list of potential exports to Japan includes: • Resources (all minerals and petroleum/LNG) • Renewable energy • Agricultural products, including food and wine • Education and training • ICT • Environmental technologies and products • Health and aged care • Tourism We strongly urge any Western Australian business interested in entering the Japanese market to contact us to discuss the opportunities available. AUSTRALIA–JAPAN | 31
2 Australia–Japan Business collaboration in Asia and around the world
AustraliaJapan business
Collaboration in Asia and around the World The similarities between a Nikon camera and a glass of Tooheys beer are not immediately obvious, yet Mitsubishi makes both products. In 1893, when Hisaya Iwasaki assumed the presidency of the Mitsubishi shipping firm founded by his father Yataro 23 years earlier, he diversified the company’s operations, creating, among other things, the Kirin Brewery. In 2009, Kirin bought a 100 per cent stake in Australia’s Lion Nathan, the maker of Tooheys, James Boag, Swan and Hahn beers, and merged it with National Foods to create Lion. Nikon belongs to an array of companies that make up Mitsubishi’s precision machinery division.
Cornerstones of bilateral trade Mitsubishi Holdings is one of a handful of vast Japanese trading companies whose interests encompass the globe and whose activities are intertwined with much of the world’s trade and commerce. Little is generally known about these entities, even in Japan. The way they operate, and why they operate in the manner they do, remains something of a mystery. Such companies’ business activities are difficult to define because they defy conventional
BHP Billiton has approved an iron ore export facility at Port Hedland's
categories. The models customarily used to define corporate structures and operations are
outer harbour that will produce
based on Western antecedents, leaving us poorly equipped to contemplate these amorphous
100 million metric tonnes a
entities. Their activities span commodity trading, wholesaling, banking, manufacturing and
year. Pre-commitment for the
mining, yet none of these categories encapsulate their operations.
construction of the facility is valued
It has been suggested that their closest Western counterpart was the Dutch East India Company. The objectives of the Japanese companies are equally elusive. While their 34 | Australia—Japan
at $A856.1 million. Source: The Australian
The combined cycle gas turbine at
operations are the cornerstones of some of the largest Australia-Japan trade
Aurora Energy's Tamar Valley Power
deals, a rapid return on investment seems a low priority. They are understated
Station was constructed by Japanese
in their character, but universally acknowledged as immensely powerful. They
multinational, Mitsubishi,
affect the lives of much of the world’s population. Some of the names are familiar, such as Mitsubishi and Sumitomo. But others, such as Sojitz, Itochu, Mitsui and Marubeni, have failed to lodge in our collective awareness. The trading companies were born from Japan’s need to develop and procure raw materials for its local industries. They pioneered most of Japan’s bilateral relations with its trading partners, including Australia, and, thanks to the sheer size of Japan’s economy, have come to account for a sizeable proportion of international trade. Japan has approximately 11,000 trading companies. Many are small, specialised operations performing routine import-export functions. Nineteen, however, are considered major trading houses. The Japan Foreign Trade Council monitors their activities. In the 1890s, Kanematsu (now Sojitz) was the first to initiate bilateral trade with Australia, drawn by the quality of Australian wool. Despite the abolition of the wool trading structures in 1991, wool remains a significant trade item for many of Japan’s trading companies. Mitsui and Mitsubishi were established in Australia by the 1940s, and became instrumental in Australia’s trade in minerals and ores following World War II. By the 1960s, all of Japan’s major trading companies had fully operational bases in Australia. The oil shocks of the 1970s elevated
36 | Australia—Japan
the strategic role of the trading companies in acquiring the raw materials for Japan’s primary energy. The need to alleviate the damaging effects of high energy prices on Japan’s economy ushered in an expanded role for the trading companies, and paved the way for the first largescale investments in Australia. The trading companies assembled the financial resources required to create joint ventures, engage in collaborative exploration and invest directly in new sources of raw materials for primary energy. This heightened level of activity took the trading companies beyond their traditional role in development and procurement for Japanese industry, and their sales and marketing roles for Japanese manufacturers in overseas markets. They became major players in global financial markets and, through their expertise in international industry, were relied on increasingly by Japanese businesses seeking non-competitive offshore manufacturing capacity. In the 1990s, the trading companies expanded into new business areas in Australia, such as wholesale and retail distribution. Based on their Australian business experience and their worldwide trade networks, the trading companies are expanding into trade and investment in third countries. They have created wholesale, retail and business services networks across the world to facilitate the flow of trade and investment. Today, Mitsubishi is Australia’s second-largest exporter, eclipsed only by Mitsui. Japan’s major trading companies oversee 60 per cent of Australia’s exports to Japan and 20 per cent of Australia’s imports from Japan. The role of trading companies as buyers of raw materials and intermediaries in wholesale trade has changed as many Japanese companies developed their own capacities to manage trade operations and overseas investment through their worldwide affiliates. In response, Japanese trading companies have restructured and diversified, becoming venture capital investors and partners in high technology industries. Business Collaboration | 37
In response to strong demand from buyers in Japan, BHP Billiton's mineral mining operations in Port Headland have grown significantly.
38 | Australia—Japan
Japan’s trading companies—history, capitalisation, activities and interests in Australia Itochu Australia Ltd
Metals and mineral resources: Through its subsidiary,
Itochu Australia’s parent company, Itochu Corporation,
Mitsui-Itochu Iron Pty Ltd, Itochu has been a partner with
was established in 1858 when the company’s founder,
BHP Billiton in the Mount Newman iron ore joint venture
Chubei Itoh, started trading in linen, prior to diversifying
in the Pilbara region of Western Australia since it was
into drapery, thread and yarn. In 1918 the company, then
formed in 1967.
trading as C Itoh & Co., listed on the stock exchange and
In 1987, Itochu Australia established Itochu Minerals &
opened a New York branch. Expansion followed, and the
Energy of Australia Pty Ltd, through which it partners with
company merged with other manufacturing and trading
BHP Billiton and Mitsui, amongst others, in a range of iron
companies, including Marubeni Co. Ltd, in a series of
ore mines.
restructures before separating in 1948 to become Itochu Corporation. Today Itochu Corporation is capitalised at over ¥200 billion, with nine Japanese and 117 overseas offices, and
Itochu is also a key player, together with BHP Billiton and Sojitz, in the Worsley Alumina Refinery, the largest and most cost-competitive alumina producer in the world, which operates at a capacity of 4.6 million tonnes per annum.
4300 employees. Its business activities include trade in textiles, machinery, energy, metals, minerals, chemicals,
Energy: Through its subsidiary, Itochu Minerals & Energy
forest products, general merchandise and food. It is also
of Australia Pty Ltd, Itochu is an active player in energy
engaged in information and communications technology,
exploration and production in Australia, including liquid
construction, realty, finance, insurance, logistics and
natural gas, uranium and dimethyl ether (DME).
business investment. Itochu Australia Ltd established its base in Sydney in
Infrastructure: Itochu’s technical expertise was
1957, and has offices in Melbourne, Brisbane and Perth.
instrumental in the Aquasure Consortium winning the bid to
The company’s operations encompass coal, metals and
construct the Victorian desalination plant.
mineral resources, alumina, energy, machinery, general
Itochu will contribute $A100 million as a major equity
merchandise, ceramics, chemicals, beef and dairy produce,
investor in the project. The plant will have a capacity of 150
and wool.
gigalitres per year and meet 30 per cent of Melbourne’s medium-term water requirements.
Coal: Through its subsidiary, Itochu Coal Resources
Itochu is currently evaluating other major infrastructure
Australia Pty Ltd, Itochu Australia has interests in nine coal
projects in the areas of desalination and treatment plants,
projects in Australia and Indonesia, including the Newlands,
railways, freeways and bridges.
Collinsville & Abbot Point Project in partnership with Xstrata Coal Queensland. Other interests are Sumisho Coal
General merchandise: Itochu Australia, together with its
Australia, the Oaky Creek Project, the Rolleston project,
joint venture partner, Nippon Paper Industries, is one of the
the Wandoan project and the Cumnock joint venture.
largest and longest established exporters of woodchips. Business Collaboration | 39
Open-cut mining: BHP Billiton's Mount Newman
In addition, in partnership with Oji Paper, Itochu harvests 24,000 hectares
iron ore joint venture in the Pilbara region of
of renewable eucalypt plantation.
Western Australia.
Ceramics: In June 1990, Itochu Ceratech Corporation (Japan) established
CI Ceramics Australia to sell a wide range of refractory products, such as magnesia, alumina and silica, for use in iron and steel, glass, cement and mineral processing. Beef, dairy, marine and other produce: Itochu was instrumental in
establishing a beef cattle feedlot in Condamine, Queensland, together with Teys Bros, the largest Australian-owned meat processor, and Prima Ham, one of Japan’s largest meat packers. Given the steadily increasing demand for the limited global supplies available, Itochu sees dairy products as a growth area. The company is involved in the export of a range of Australia’s dairy products. Through initiatives like the acquisition of 45 per cent of Burra Foods (Victoria) in 2009, Itochu is continuing to expand in this area. Australia is one of the world’s leading producers of premium-quality seafood, particularly lobsters, tiger prawns, and the southern blue fin tuna, and Itochu is closely involved in their export. Itochu has close relationships with the growers and accumulators of wheat, barley, rice, canola and other grains, and is engaged in their export. Wool: From 1966 to 2005, Itochu Australia was the single largest buyer of 40 | Australia—Japan
Australian wool. It remains closely involved in the Australian wool industry today, working closely with the Textile Material & Fabric division of Itochu Osaka.
Marubeni Marubeni and Itochu share a common ancestry, having their origins in a linen and drapery shop founded by Chubei Itoh in May 1858. In 1949, Marubeni formally became a separate entity, although the two companies have enjoyed a series of close corporate links through mergers and acquisitions over the past 150 years that continues to the present day. In 2001, for example, Marubeni and Itochu merged their steel products divisions to create MarubeniItochu Steel Inc. Today, Marubeni is capitalised at over ¥260 billion, and employs 4020 people in Japan and 1769 people overseas. It has nine offices in Japan, and 119 overseas offices across 69 countries. Marubeni is involved in the import and export of food materials, food products, textiles, materials, pulp and paper, chemicals, energy, metals, minerals and transportation machinery. It engages in offshore trading, and has interests in power projects and infrastructure, plants and industrial machinery, finance, logistics and information, and real estate development and construction. Marubeni Australia is based in Sydney, and has branches in Melbourne and Perth. Marubeni’s subsidiaries and affiliates in Australia are: • Rangers Valley Cattle Station Pty Ltd (subsidiary), Glen Innes, New South Wales Production of premium-quality grain-fed beef for export to Japan and other markets • Yokohama Tyre Australia Pty Ltd (affiliate), Sydney Sale and distribution of automotive tyres Business Collaboration | 41
• Southern Plantation Forest Pty Ltd (subsidiary), Melbourne Management of hardwood plantations • WA Plantation Resources Pty Ltd (affiliate), Bunbury, Western Australia Exports one million tonnes per annum of woodchips to Japan and manages sustainable blue gum plantations in the south west of Western Australia. • Marubeni Aluminium Australia Pty Ltd (subsidiary), Melbourne Investment in aluminium production facilities, including the Portland aluminium smelter, sale of aluminium ingots • Marubeni Coal Pty Ltd (subsidiary), Brisbane Investment in coalmines, including West Wallsend Colliery near Lake Macquarie, New South Wales, the Hail Creek Mine, near Mackay in Queensland’s Bowen Basin, and Westside Colliery, near Newcastle, New South Wales • Resource Pacific Holdings Pty Limited (subsidiary), Sydney Investment in coalmines, including the Ravensworth underground Sojitz Coal Mining Pty Ltd's Minerva coal
coalmine and the Newpac No. 1 colliery near the Hunter Valley in
mine in central Queensland produces
New South Wales.
2.8 million tonnes of premium thermal
• Marubeni Automotive Holding (Australia) Pty Ltd. (subsidiary), Sydney
coal per annum.
Investment and management of automotive group companies in Australia • Hitachi Construction Machinery (Australia) Pty Ltd (affiliate), Greystanes, New South Wales Distribution of Hitachi and John Deere construction forestry and mining equipment • Kubota Tractor Australia Pty Ltd (affiliate), Truganina, Victoria
42 | Australia—Japan
Wholesale importer of Kubota tractors, agricultural machinery, construction machinery, power equipment and spare parts
Sojitz'’s woodchip planation forests have been in operation in Victoria
• Smithfield Power Partnership (subsidiary), Smithfield, New South Wales
since the 1990s. These plantations
IPP in New South Wales, Australia
now cover 10,000 hectares.
• Energy Infrastructure Investments Pty Limited (affiliate), Sydney Operation of gas pipelines, power-generating facilities, gas processing plants and interconnectors
Sojitz Australia Ltd Sojitz can trace its history back to November 1892, with the establishment of the Japan Cotton Trading Co. Ltd, which, in 1949, listed on the Tokyo Stock Exchange and Osaka Securities Exchange as Nichimen Co. Ltd. Nissho Co. Ltd was established independently in 1928, and through a series of mergers and acquisitions became Nissho Iwai Corporation in 1968. In April 2003, Nissho Iwai and Nichimen merged to become Sojitz Corporation and listed on the Tokyo Stock Exchange and Osaka Securities Exchange. Sojitz Corporation is capitalised at ¥160 billion, and has seven domestic and 91 overseas offices. In addition, it has 139 Japanese and 361 overseas affiliates. In all, the company employs 18,000 people. Sojitz Australia Ltd is headquartered in Melbourne, and has branches in Perth and Sydney. The company manages its substantial interests in coal, alumina and rare earth metals through its Australian subsidiaries. Sojitz Coal Mining Pty Ltd, via its 96 per cent shareholding, manages and operates the Minerva coalmine, an open-cut mine approximately 45 kilometres south of Emerald in central Queensland’s Bowen Basin. The mine produces 2.8 million tonnes of premium thermal coal per annum with a 180-strong workforce. Business Collaboration | 43
Sojitz Coal Resources Pty Ltd is a joint venture partner in three projects and seven operating mines, including Jellinbah, Lake Vermont, Coppabella, Moorvale and Moolarben. It is also a shareholder in the 14 megatonne per annum PT Berau operation. Together, these operations provide Sojitz with 7.5 million tonnes of coal annually. Two of its subsidiaries, Japan Alumina Associates (Australia) Pty Ltd and Sojitz Resources (Australia) Pty Ltd, manage Sojitz’s investment in the Worsely Alumina Refinery in Western Australia. On 30 March 2011, Sojitz and Japan Oil, Gas and Metals National Corporation agreed to provide Lynas with $US250 million through loans and equity in exchange for an allocation of Lynas’ rare earth products totalling 8500 tonnes per annum for 10 years. The deal makes Sojitz Japan’s largest importer of rare earth metals.
Mitsubishi In 1870, two years after the Meiji Restoration, Yataro Iwasaki started a shipping firm with three dilapidated steamships. His brother, son and nephew expanded the business during their respective terms as president, and created the foundations of the Mitsubishi organisation. From shipping, the company expanded into shipbuilding and mining, and diversified into banking insurance and warehousing. Yataro's son, Hisaya, made private investments that are part of the Mitsubishi group today. He purchased the Kobe Paper Mill, which is now called Mitsubishi Paper Mills, and he backed the founding of Kirin Brewery. His cousin Toshiya founded Asahi Glass, Japan's first successful manufacturer of plate glass. The company was disbanded after World War II to become the Mitsubishi group of independent companies that exists today. The name Mitsubishi refers to the three diamonds in the company logo. It literally means three water chestnuts, and is derived from the Iwasaki family crest of a three-tiered water chestnut stylized into three diamond shapes. Mitsubishi Australia Ltd has offices in Melbourne, Sydney, Perth and Brisbane, and is engaged in a broad range of businesses through its trading activities and investments. The company’s business areas include energy, metals, machinery, chemicals, food, general merchandise, automotive tooling, equipment and materials, and business development. Metals: BHP Billiton Mitsubishi Alliance (BMA) (affiliate)
Operates as Australia's largest coal miner and exporter, and the world's largest supplier to the seaborne coking coal market. 44 | Australia—Japan
Sojitz Corporation's out-cut coal mine 45km south of Emerald City in Queensland. Sojittz's Australian operations provide the corporation with over seven million tonnes of coal per year.
Business Collaboration | 45
• Mitsubishi Development Pty Ltd (subsdiary) Acts as the holding company of Mitsubishi's mineral resources investments in Australia. Owns a number of export coalmines, including Blackwater,
At the end of World War II, however, the Allied powers ordered that Mitsui be dissolved, which resulted in over 200 new companies being established. One such company, Daiichi Bussan, imported a range of products to meet the demand
Clermont, Crinum, Goonyella, Gregory, Kenmare, Norwich
for clothing, food and housing. It quickly expanded its trade
Park, Peak Downs and Saraji.
to include timber, canned foodstuffs, marine produce, fats
• MC Iron & Steel Pty Ltd (subsidiary)
and oils, pharmaceuticals, glass and other products. During
Holds a 10 per cent interest in the HIsmelt Kwinana
the rapid economic growth of the late 1950s, Daiichi Bussan
Joint Venture project, a direct iron making process,
brought together the companies formerly affiliated with
in Western Australia.
Mitsui & Co and re-established the company.
• The Ryowa Development Group of Companies Manages Mitsubishi's equity interest in the Boyne Island
The new Mitsui embarked on a program to vertically integrate its activities, ranging from the procurement of raw
aluminium smelter and the Gladstone Power Station
materials to the production of finished articles. It developed
in Queensland.
new markets, expanded its financial capabilities and
Automotive: Hirotec Australia Pty Ltd (affiliate)
A joint venture company between Hirotec Corporation of
strengthened its anticipatory investment. During the 1960s, its activities ranged from copper mining
Japan and Mitsubishi Corporation. Acts as a tier-one supplier
in Australia to laying the groundwork for computerisation
to the automotive industry, specialising in the manufacture
in Japan. In the 1970s, it was a key partner in the Abu
of door, engine hood and deck lid assemblies.
Dhabi LNG project in the United Arab Emirates. The 1980s saw Mitsui expand its operations in the downstream areas
General Merchandise: Cape Flattery Silica Mines Pty
of fashion and food services. In other areas, the company
Ltd (affiliate) Mines and sells silica sand, the primary raw
fostered the creation of one of the world’s first laptop
material for glass products, to destinations such as Japan,
computers and co-founded Japan Communications Satellite
South Korea and Taiwan.
(now SKY Perfect JSAT), which launched Japan's first commercial communications satellite in 1989, creating a new
Food: Intermix Australia Pty Ltd (affiliate)
Manufactures a range of dry-mix finished ingredients as well
satellite communications market. From the 1990s to the present, Mitsui has continued to
as blends and pre-mix additives for end-use applications in
extend the vast reach of its sales networks and to expand
the beverage, dairy, bakery, confectionery, nutritional and
its already broad repertoire of business activities to include
snack food sectors of the food processing industry.
metals, infrastructure projects, machinery, chemicals, energy, food and retail, consumer-related business, IT,
Mitsui Mitsui & Co. Ltd was founded in 1878, shortly after Japan
finance and logistics. Today, Mitsui & Co. is capitalised at ¥340 billion and
opened its ports to foreign vessels, with the objective of
employs 40,000 people globally. It has 12 offices in Japan
exporting Japan’s surplus goods and importing goods to
and 142 overseas offices in 67 countries. Mitsui’s business
meet domestic demand. Through a carefully developed
activities take in iron and steel products, mineral and
distribution system, the company expanded its activities
metal resources, infrastructure projects, motor vehicles,
from exporting rice to the importation of spinning
marine and aerospace, chemicals, energy, foods and retail
machines and the sourcing of raw cotton from China, India
services, consumer services, information, electronics and
and the United States. After Word War I, the company
telecommunications, finance and logistics. In Australia,
diversified into the development of new products and the
Mitsui provides financing for a range of projects, and creates
cultivation of business plans to foster regional industries.
new trade flows through investment in new industries.
46 | Australia—Japan
Mitsubishi Australia Ltd Division
Activities
Energy
Develops oil and gas projects in Australia, New Zealand and Papua New Guinea.
Ferrous Raw materials
Trades in and mines products such as coking coal for steel mills, iron ore, nickel, chromium, molybdenum, manganese, ferrosilicon, coal for electricity generation and uranium.
Non-ferrous metals
Trades in non-ferrous metals such as bauxite, alumina, aluminium copper, lead, zinc, and precious metals.
Steel products
Supplies a wide range of steel mill products to Australian industry.
Automotive tooling, equipment & materials
Specific business areas include turnkey body shop assembly tooling projects, the supply of capital equipment and production tooling, such as stamping dies and injection moulding dies.
Machinery
Supplies and installs a wide range of machinery across many industries.
Commodity chemicals, functional and advanced chemicals
Supplies essential chemicals and chemical products, including chlor-alkali chemicals, raw materials for synthetic resins and fibres, chemical fertilisers, inorganic raw materials, plastics and electronics materials.
Food
Exports dairy products, fruit juice and frozen fish to primary export markets in Japan, South-East Asia, the European Union and the Middle East. Imports instant noodles and other products.
General Merchandise
Consists of four businesses – paper, housing and construction, lifestyle materiald and raw textiles.
Area
Affiliate/Subsidiary
Activities
Energy
Japan Australia LNG (MIMI) Pty Ltd (affiliate)
A joint venture with Mitsui & Co. Holds a one-sixth interest in the North West Shelf Project, Australia’s largest resource project.
Diamond Gas Resources (DGR) Pty Ltd (subsidiary)
Markets and sells the company’s allotment of condensate and crude from the North West Shelf Project.
Diamond Resources Australia (DRA) Pty Ltd (subsidiary)
Conducts oil and gas exploration.
BHP Billiton Mitsubishi Alliance (BMA) (affiliate)
Operates as Australia's largest coal miner and exporter, and the world's largest supplier to the seaborne coking coal market.
Mitsubishi Development Pty. Ltd. (subsdiary)
Acts as the holding company of Mitsubishi's mineral resources investments in Australia. Owns a number of export coalmines, including Blackwater, Clermont, Crinum, Goonyella, Gregory, Kenmare, Norwich Park, Peak Downs and Saraji.
MC Iron & Steel Pty. Ltd. (subsidiary)
Holds a 10 per cent interest in the HIsmelt Kwinana Joint Venture project, a direct iron making process, in Western Australia.
The Ryowa Development Group of Companies
Manage Mitsubishi's equity interest in the Boyne Island aluminium smelter and the Gladstone Power Station in Queensland.
Automotive
Hirotec Australia Pty. Ltd. (affiliate)
A joint venture company between Hirotec Corporation of Japan and Mitsubishi Corporation. Acts as a tier 1 supplier to the automotive Industry specialising in the manufacture of door, engine hood and deck lid assemblies.
General Merchandise
Cape Flattery Silica Mines Pty. Ltd. (affiliate)
Mines and sells silica sand, the primary raw material for glass products, to destinations such as Japan, South Korea and Taiwan.
Food
Intermix Australia Pty. Ltd. (affiliate)
Manufactures a range of dry-mix finished ingredients as well as blends and pre-mix additives for end-use applications in the beverage, dairy, bakery, confectionery, nutritional and snack food sectors of the food processing industry.
Metals
Business Collaboration | 47
Mitsui industrial salt mined in Australia for export to Japan.
Coal: Mitsui’s investment in Australian coal dates back to
Mitsui & Co., Ltd (Japan) participates in the North
the 1960s. Today, Mitsui has interests in eight Australian
West Shelf project through its 50 per cent share in Japan
mines (six in Queensland and two in New South Wales).
Australia LNG (MIMI) Pty Ltd. The North West Shelf
The company exports about 14 million tonnes
project is Australia’s largest resource project, exporting
of coking and steaming coal per year, made up of
about 12 million tonnes per annum of LNG to Japan,
approximately nine million tonnes from Queensland and
Korea and other Asian markets. MIMI has supplied gas
five million tonnes from NSW. Mitsui is Japan’s largest
to the Western Australian market since 1984 and LNG
importer of coal, and handles 15 per cent of Australia’s
to Japan since August 1989.
total coal exports.
In 1995, Mitsui established the Wandoo Petroleum joint venture to purchase a 40 per cent interest in the Wandoo
Chemicals: Mitsui’s Chemicals division handles products
crude oil field in northern Western Australia, which has
ranging from raw materials to finished products, including
produced up to 40,000 barrels of oil per day. Wandoo
organic chemicals, inorganic chemicals, plastics, fertilizers
Petroleum also has interests in the Cliff Head project in
and fine chemicals. Mitsui works with Australian mining
Western Australia and the Bass Gas project in Tasmania.
companies to produce mineral sands and industrial salts for export to Japan and many other countries in Asia.
Food: Mitsui handles large volumes of grains, such
as wheat, barley, rice, canola and various feed crops. Energy: Mitsui E & P Australia Pty Limited, based in
The company also has significant involvement in
Perth, is the regional headquarters of Mitsui’s oil and gas
meat, ethanol alcohol, malt for beer production, juice
exploration and production. The company’s production
concentrates and dairy products such as cheese, milk
of oil and gas has increased dramatically, from less than
powders and butter. Of these products, dairy products
two million barrels of oil equivalent per annum in 2003
and juice concentrates are experiencing particularly
to 18 million barrels in 2011. Mitsui has four producing
strong growth.
fields and three projects under development, as well as a
Mitsui is continually striving to expand its role in
further 20 exploration permits spanning Australia, New
the Australian food industry through new business
Zealand, PNG and East Timor.
development and investment.
48 | Australia—Japan
Business Collaboration | 49
The Mitsui wind farm in southeast Victoria incorporates 52 wind turbines, each capable of generating two megawatts of electricity.
Forestry and general merchandise: Mitsui Plantation
Metals: Mitsui has interests in a diverse range of mineral
Development (Australia) Pty Ltd, in partnership with MCA
resource development and refining projects with a focus on
Afforestation and Nippon Paper Industries, is engaged in
copper, zinc, nickel, aluminium and rare metals. It is currently
plantation developments in Western Australia, Victoria
broadening its investment strategy for nonferrous metals.
and South Australia. The operations provide raw material for paper production as a sustainable alternative to non-
Steel: Mitsui’s steel products are supplied by the world’s
plantation supplies.
leading manufacturers, and range from highly finished products through to commodity-type products. They include
Iron ore: Mitsui’s interest in Australian iron ore began in the
electrical steel, coated steel for automotive use, steel plate,
early 1960s when surveys revealed that Australia’s reserves
pipes, stainless steel and all other commodity products such
were far greater than previously supposed.
as cold-rolled and hot-rolled coils and shapes.
In 1970, Mitsui & Co., Ltd in Japan (80 per cent) and
Mitsui works with its customers to continually develop
Mitsui Australia (20 per cent) established a joint venture
new markets for steel products.
called Mitsui Iron Ore Development Pty Ltd to develop
Toyota Tsusho
the Robe River iron ore project in Western Australia in
Toyoda Kinyu Kaisha, the predecessor of Toyota Tsusho
partnership with Rio Tinto.
Corporation, was established in 1936 to provide consumer
The project has become the world’s most reliable and costeffective supplier of iron ore and is the world’s fourth-largest seaborne iron ore supplier. Mitsui Iron Ore Development anticipates increasing
finance for Toyota vehicles. During World War II, its activities expanded to include trade, and in the 1950s it opened its first overseas offices in Thailand and the United States to facilitate the first exports
demand for the commodity, principally in the
of Toyota vehicles. Toyota Tsusho (Australasia) Pty Ltd is
industrialising countries of Asia, and is conducting
a wholly owned subsidiary of Toyota Tsusho Corporation,
feasibility studies into additional mine sites in Australia
which was founded in 1971 as a trading and supply-chain
and elsewhere in the region.
specialist for the Toyota Group.
50 | Australia—Japan
Over the past four decades, the company has evolved
its Australian subsidiary, Toyota Tsusho Gas E&P Trefoil
from a trader in a restricted number of commodities and
Pty Ltd, acquired an 11.25 per cent equity interest in the
finished goods to a multi-business enterprise. It combines
BassGas Project in Bass Strait and a small interest in a
international trading with a wide range of domestically
nearby gas exploration permit.
targeted functions that includes supply-chain services,
The BassGas Project is operated by Origin Energy, and
intermediate goods processing and third-party logistics.
consists of an offshore production platform connected to
Internationally, the company trades in vehicles, parts and machinery, metals, industrial materials, chemicals, wheels
the Yolla gas field and an onshore processing plant. The gas exploration permit supplements a suite of
and accessories, textiles, life products and services, logistics
offshore and onshore permits in which Toyota Tsusho
and supply chain management.
has an interest, mainly in Western Australia, Victoria
Toyota Tsusho (Australasia) has three Australian offices
and Queensland.
(Melbourne, Sydney and Perth) and a representative office in
Sumitomo
Auckland. The parent company, Toyota Tsusho Corporation,
In the early 1600s, Masatomo Sumitomo opened a book
has 224 subsidiaries and other affiliates worldwide, employs
and medicine shop in Kyoto, where he formulated a set of
31,000 people and is capitalised at ¥65 billion.
business principles known as the Founder’s Precepts. At the
On 1 October 2010, Toyota Tsusho acquired all the issued shares in CalEnergy Gas (Australia) Ltd. The acquisition gave Toyota Tsusho a five per cent share of
same time, his brother-in-law pioneered copper smelting technology to extract silver from crude copper. Over the next 300 years, the family descendants expanded
the Otway Gas Project in Port Campbell, Victoria, together
the company’s copper mining interests and diversified into
with associated exploration permits and licences.
thread, textiles, sugar and medicines. The family’s Besshi
The takeover was part of Toyota Tsusho’s strategy of obtaining gas exploration and development rights to create a value chain to help meet Japan’s demand for liquefied natural gas. On 8 December 2011, Toyota Tsusho, through
Copper Mine opened in 1691 and operated for 283 years until 1964, serving as the basis of the Sumitomo business. The company entered related business fields, such as the machine and coal industries, electric cable manufacturing and Business Collaboration | 51
forestry. The finance business operating in Osaka developed
became eager to find alternative sources of these critical
into a banking business. The warehousing business, which
minerals. Lynas needed financial backing to construct its
was a part of this banking business, became independent,
advanced materials plant in Malaysia to separate and refine
and developed into a modern financial group focusing on
the rare earth products from its Mount Weld mine. Lynas and
mining, manufacturing and financing.
Sojitz agreed to work together, but cost of the expansion was
Today, Sumitomo has 24 offices in Japan and 114 overseas offices in 65 countries. Its affiliated companies in Japan and
even beyond the realm of Sojitz’ relatively deep pockets. Sojitz turned to the Japan Oil, Gas and Metals National
overseas bring the number close to 300. It is capitalised at
Corporation (JOGMEC) for assistance. JOGMEC is a
¥220 billion and employs 65,000 people
government-owned entity tasked with supporting the
On 1 December 2011, Sumitomo integrated its subsidiary,
offshore exploration and production of mineral resources.
Australian Bulk Alliance Pty Ltd, with its associate company,
According to a press release issued jointly by JOGMEC and
Emerald Group Australia Pty Ltd. The move came in response
Sojitz, JOGMEC reviewed the proposed collaboration and
to growing demand in Asia and the Middle East for grain,
concluded, “the transaction will contribute to diversifying
such as wheat, oilseeds and feed grain, due to increasing
the sources of supply and achieving stability and reliability in
population and changes in dietary habits. The integration
supply of the rare earth products to the Japanese markets”.
allows Sumitomo and Emerald to streamline their services
Suiting action to their words, JOGMEC invested a quarter
throughout the entire supply chain, from origination to
of a billion dollars in loans and equity to support the deal,
storage, logistics, port access, shipping and marketing to
provided from a supplementary budget earmarked for rare
overseas customers.
earth elements that had been approved by the Japanese
On 13 April 2010, Sumitomo announced the purchase of Viterra’s share of Australian Bulk Alliance. On 5 March 2010, Sumitomo acquired a 50 per cent stake
cabinet in October 2010. To finalise the deal, JOGMEC and Sojitz established the Dutch-domiciled Japan Australia Rare Earths Besloten
in Emerald Group Australia Pty Ltd. Emerald was established
Vennootschap to channel the funds to Lynas, and through
in 2004 and has grown rapidly following the deregulation of
this entity, JOGMEC and Sojitz concluded an allocation
the grain industry. The acquisition supplements Sumitomo’s
agreement with Lynas to receive 8500 tonnes of rare earth
investments in grain storage and export terminal operations
products per year for 10 years. Sojitz and Lynas entered into
in Australia since 2005.
a separate deal to give Sojitz sole distribution and sole agency rights for the products.
Facilitating investment in Australia’s resources
JOGMEC operates under the Agency for Natural Resources
After Sojitz signed its strategic alliance agreement in
and Energy, which is administered by the Ministry of
November 2010 with Australia’s Lynas as a prelude to
Economy, Trade and Industry (METI). The agency supervises
procuring a large proportion of the rare earth elements from
24 affiliated organisations, which take in the Japan Patent
the Mount Weld mine, the main obstacle standing in the way
Office, assorted think tanks and research bodies, such as the
of a major tie-up was financing. China, a key supplier of rare
Research Centre for Hydrogen Industrial Use and Storage,
earth elements, restricted its exports in 2010, and Japan
and organisations like JOGMEC that are actively involved in
52 | Australia—Japan
Mount Weld, located in Western Australia, contains the richest known deposit of rare earths in the world,
Business Collaboration | 53
procuring the natural resources to sustain Japanese industry. The Japan External Trade Organisation (JETRO) is one
Exploration Financing Agency of Japan that was founded in 1963 to improve the competitiveness of Japan’s metal mining
such organisation affiliated with the Agency for Natural
industry. Its latest balance sheet indicates assets totalling
Resources and Energy, and its functions most closely mirror
$US16 billion, of which $US1.25 billion is cash on hand.
those of Austrade. Yet many of the affiliated organisations
In addition to providing financial assistance for exploration
seem to share objectives and interests that resemble those of
and production, JOGMEC manages Japan’s stockpiles of oil,
the Sogo Shosha trading companies. And in the case of the
liquefied petroleum gas (LPG) and rare metals, and it actively
Lynas-Sojitz collaboration, they work alongside the trading
conducts overseas field surveys where current geological or
companies and become an integral part of the deal.
geophysical data is insufficient to evaluate the potential of
JOGMEC is a non-profit entity that provides assistance
private companies’ exploration activities.
in the form of grants and liability guarantees to private companies for surveys and exploratory work conducted with
Compellingly interdependent
a specific view to acquiring exploration and production rights.
Statistics concerning the world’s coal transactions paint a
Although government-owned, it operates as an independent
compelling picture of Australia and Japan’s interdependency
administrative institution. It submits to the Ministry of
in this area:
Economy, Trade and Industry a five-year, medium-term
• Japan is the world’s largest importer of coal, purchasing
management plan, and receives funding from the ministry on
roughly 20 per cent of the 900 million tonnes of coal
approval of the plan.
traded each year.
Any earnings that JOGMEC generates are accumulated as retained earnings and returned to the ministry at the end of the five-year period. JOGMEC grew out of the Japan Petroleum Development Corporation (JPDC), which was
• Australia produces 30 per cent of the world’s trade in coal. • Australia has 9.2 per cent of the world’s 826 billion tonnes of proven recoverable coal reserves. • Japan relies on Australia for 61 per cent of its coal
established to ensure a stable and inexpensive supply of oil for
requirements, buying 44 per cent of Australia’s total
Japan. In February 2004, it merged with the Metallic Minerals
coal exports.
54 | Australia—Japan
• Only 15 per cent of the world’s coal production is traded,
members of the Australian Coal Association in the area
with the other 85 per cent being consumed by the
of carbon capture and storage. JCOAL and the Japanese
countries that produce it, principally China, the United
government are active participants in the Canberra-based
States and India.
Global Carbon Capture and Storage Institute founded by the
Pivotal to this relationship are the Japan Coal Energy
Australian government in 2008.
Centre (JCOAL) and the New Energy and Industrial
The Callide Oxyfuel Project, an Australia-Japan
Technology Development Organisation (NEDO). Both
collaboration, applies oxyfuel combustion technologies
operations are stablemates to JOGMEC – incorporated
and carbon capture and storage to coal-fired thermal power
administrative organisations affiliated with the Agency for
stations. The project draws on the expertise of J-Power, IHI,
Natural Resources and Energy.
Mitsui and JCOAL from Japan, as well as the Queensland
Like JOGMEC, they are non-profit, government owned and government funded. Like many other such organisations affiliated with the Agency for Natural Resources and
government, the Australian federal government, CS Energy, Xstrata and others. There are several projects working on the production
Energy, they have played and continue to play an integral
of substitute natural gas from brown coal. Nippon Steel
part in the development of Australia’s resources sector.
Engineering is involved in integrated coal gasification in
Following a petition by the Japanese government and power
Victoria, and a feasibility study for a wider brown coal
companies in the early 1970s, Australia lifted its export
gasification project is underway between Australia and Japan.
control policy on natural resources in 1974. Coal exports to
The use of coal-fired thermal power is continuing to
Japan subsequently reached 30 million tonnes in 1980, and
increase in both advanced and developing countries in
increased fourfold to close to 120 million tonnes by 2010.
response to expanding global energy demands. However,
Today, Japanese and Australian co-operation is
due to growing environmental concerns over carbon dioxide
progressing in a vast array of projects alongside the direct
emissions, Japan and Australia are collaborating to achieve
mining and export of coal. For example, JCOAL spearheads
the long-term goal of a zero-emission coal-fired power station
a consortium of 19 Japanese companies working with
through the use of carbon capture and storage technologies. Business Collaboration | 55
Mount Tom Price iron ore mine: the current resources boom has made Western Australia the most affluent non-metropolitan region in the nation.
56 | Australia—Japan
In the short term, the two countries are working to improve
Joint projects under examination include the conversion
the emissions of existing coal-fired power stations, first,
of brown coal to liquid/gas fuel using partial hydro-pyrolysis
by replacing antiquated facilities, and second, by including
technology. The proposed test site is Nippon Steel’s Yawata
biomass in the fuel used to fire them.
Works in Melbourne
While Japan has the world’s most efficient and least
The assistance that Australian technology provides to
polluting coal-fired power stations, they continue to play an
Japanese coal mining operations around the world was
important role in Japan’s energy mix, accounting for 25 per
formalised on 3 June 1997, when CSIRO Deputy Chief
cent of energy requirements, behind LNG (26 per cent) and
Executive Dr Colin Adam signed a major mining research
nuclear power (30.6 per cent). Forecasts suggest an increase
agreement with the Coal Mining Research Centre of Japan
in coal-fired power as Japan loses its appetite for nuclear
(CMRCJ). Under the agreement, the CSIRO represents the
power in the wake of the Fukushima disaster.
Australian coal mining industry and co-ordinates research
JCOAL estimates that if China, the United States and India
funding from mining industry groups such as the Australian
upgraded their coal-fired power plants to a level comparable
Mining Industry Research Association (AMIRA), mining
to facilities in Japan, there would be an annual reduction in
companies and mines.
carbon dioxide emissions of 1.3 billion tonnes. The collaboration between Australia and Japan spans a range of activities, including: • R&D for controlling mine gas at the Dartbrook Coal Mine in the Hunter Valley (JCOAL and the CSIRO) • R&D into new exploration technology featuring the development of a neutron-gamma recording system at the Bowen Basin in Queensland and the Gunnedah Basin in New South Wales (involving JCOAL and the Queensland and New South Wales governments) • A collaborative study to evaluate the production and use of ultra clean coal (JCOAL and the CSIRO) • Research into waste coal gasification technology (JCOAL, IHI and the CSIRO) • The Enhanced Coal-Bed Methane Project, under the Asia-
The agreement follows a coalmine safety research agreement between CMRCJ signed four years earlier and renewed in 1996. These agreements were preludes to a series of collaborations, including: • The Aichi Coal R&D joint statement between JCOAL and the CSIRO (2005) • The Enhanced Aichi Coal R&D joint statement between JCOAL, the CSIRO and ACR (2006) • The Re-enhanced Aichi Coal R&D joint statement between JCOAL, the CSIRO, ACR and ACALET (2009) • A Memorandum of Understanding between ACA and JCOAL (2009) The collaborations between Japan and Australia are set to continue and expand into the future, with a particular focus
Pacific partnership on clean development and climate,
on clean energy. Australia has established the Japan office
aimed at maximising the recovery rates of carbon dioxide
of the Global Carbon Capture and Storage Institute, and will
and methane and verifying the reliability of carbon
continue to collaborate on infrastructure and other projects
dioxide storage (JOCAL, the CSIRO, the Australian federal
across the region based on the complementary strengths of
government and Australian and international industry)
two trusted friends. Business Collaboration | 57
Mitsui & Co. (Australia) Ltd. Mitsui & Co. (Australia) Ltd. is the wholly owned Australian subsidiary of Mitsui & Co. (of Japan), one of the world’s most diversified trading, investment and services enterprises. Over the past five decades Mitsui has steadily expanded and diversified its business in Australia. Today Mitsui’s business covers iron ore, coal, gas, oil, salt, woodchips, chemicals, steel products, power generation and food. In each of these businesses, Mitsui utilises one or more of its areas of expertise in investment, development, finance, marketing, procurement and logistics. Mineral resources and energy Mitsui is recognised as having played a pioneering role in Australia’s resource sector. Responding at the time to an acute need by Japanese industry to secure a stable, long term supply of coal, in 1963 Mitsui formed a joint venture with an international consortium to develop the Moura coal mine (present day Dawson mine) in Central Queensland’s Bowen Basin. Mitsui took an equity stake in the project and secured a contract to sell coal into the Japanese market. The joint venture project was the first of its kind by a Japanese company in Australia and would go on to serve as a template for other foreign investments that followed in Australia’s resources sector. Today, Mitsui’s affiliate company, Mitsui Coal Holdings, has interests in nine producing coal mines across Queensland and New South Wales, including a 49 per cent stake in the Dawson mine, operated by Anglo American, and a 20 per cent stake in the Kestral coal mine operated by Rio Tinto. In Western Australia, Mitsui affiliate company Mitsui Iron Ore Development has a 33 per cent stake in the Robe River joint venture operated by Rio Tinto. Mitsui also has a 7 per cent stake in three respective iron joint ventures with BHP Billiton, two of which are held by Mitsui Iron Ore Corporation, and the third by Mitsui Itochu Iron Ore Pty Ltd. In oil & gas, Mitsui & Co. affiliate, Mitsui Exploration & Petroleum Australia, has interest in four producing assets. This includes a 40 per cent stake in the Vincent and Enfield oil projects
A Mitsui forestry plantation in Western Australia’s Bunbury Region.
58 | Australia — Japan
off the coast of Western Australia, operated by Woodside Energy Limited. Mitsui & Co. is
Operations at Shark Bay Salt
also an investor in Western Australia’s North West Shelf LNG project, through a 50:50 joint
in Western Australia.
venture with Mitsubishi Corporation (Japan Australia LNG Pty Ltd), which holds a one-sixth stake in the project. Raw materials for growing Asia Mitsui anticipates that Asia’s growing economies will require an increasingly diverse range of raw materials in the coming years. In response to rising demand for salt for food and chemicals applications, Mitsui & Co. acquired 100 per cent of the Shark Bay Salt project in Western Australia in 2005, then acquired Onslow Salt in 2006. Similarly, in anticipation of growing demand for paper products in the Asia region, in recent years Mitsui has rapidly expanded its investment in forestry plantations and has acquired interest in two woodchip processing and export facilities in Victoria and Western Australia. Infrastructure Mitsui is an active player in Australia’s power sector. Mitsui & Co., through a joint venture with International Power, holds a 30 per cent stake in the Loy Yang B coal-fired power station in Victoria and a 21 per cent stake in the Kwinana gas-fired power station in Western Australia. Mitsui Australia is currently developing the Bald Hills Wind Farm, a 106MW facility located in South Gippsland Victoria, which is scheduled to commence operations in 2014. Imports and exports Mitsui Australia also trades in a variety of commodities to and from Australia. Mitsui’s major imports include steel products, chemical products and solar panels. Its major exports are food commodities such as grains, meat, juice concentrates and dairy products.
AUSTRALIA–JAPAN | 59
Mitsubishi Heavy Industries Ltd Mitsubishi Heavy Industries Ltd (MHI) manufactures a very broad range of products, including aerospace rockets, nuclear and thermal power plants, ships, industrial machines and air conditioners. To meet the global common challenge of maintaining “sustainable growth”, MHI identifies increasing opportunities to leverage its experience and knowledge to the development of the world’s infrastructure; the core support for society and industry MHI is an enterprise without parallel in the world, possessing cutting-edge solutions for achieving a low carbon society. MHI CO2 capture technology MHI is a world leading post-combustion CO2 capture (PCC) technology supplier. The KM-CDR ProcessTM, together with the proprietary KS-1TM solvent, enables clients to efficiently reduce their CO2 emissions. Worldwide, MHI currently has nine commercial PCC plants (max 450 ton/day) and one 500ton/day black coal-fired demonstration plant (the world’s largest) in operation. MHI is currently completing in a pre-feasibility study with partners LoyYang Power, TRUenergy, WorleyParsons and Mitsubishi Corporation to utilise MHI’s PCC technology for Victorian brown coal. Concentrated solar hot air turbine power generation system MHI is also developing the solar Brayton system driven by high-temperature air generated with solar energy. No water is required for power generation, which is very attractive for the Sun Belt area where water resource is quite limited. Working with an Australian national research institute, the Commonwealth Scientific and Industrial Research Organisation (CSIRO), MHI completed the 600kWth receiver pilot test successfully in 2011.
Pilot test at CSIRO. Solar Energy is concentrated to
The 2.5MW demonstration system is planed to commence its operation
the receiver by heliostat (lots of mirrors), where the air
in 2013 or 2014 and the 10MW system will be commercialised afterward.
inside the receiver is heated to very high temperature.
MHI Group companies in Australia Mitsubishi Heavy Industries Australia Pty Ltd (MHIAU), established in 1999, has been promoting business opportunities of MHI products to contribute to Australian society and industry. In 2009, MHIAU’s air conditioning and refrigeration division commenced operation under the name of Mitsubishi Heavy Industries Air-Conditioners Australia Pty. Ltd. (MHIAA). MHIAA has its head office in Sydney and its branch offices in Melbourne, Brisbane and Perth.
60 | Australia — Japan
North West Shelf Australia LNG North West Shelf Australia LNG markets liquefied natural gas (LNG) from Australia’s largest oil and gas resource development, the Woodside-operated North West Shelf Project. The $A27 billion North West Shelf Project facilities include offshore gas platforms and oil production facilities, as well as an onshore gas processing plant near the town of Karratha, in the spectacular Pilbara region of Western Australia. From this remote but resource-rich area of Western Australia, the North West Shelf Project produces more that 40 per cent of Australia’s oil and gas production and has the capacity to produce more than 16 million tonnes a year of LNG. In addition to LNG, the North West Shelf Project produces natural gas for domestic
The North West Shelf Project is
sale, liquid petroleum gas (LPG), condensate and crude oil.
Australia's largest oil and gas
International demand for cleaner sources of reliable energy is growing. Over the past
resource development. Liquefied
22 years, the North West Shelf Project has enjoyed a long and mutually beneficial business
natural gas from the project is
relationship and firm friendship with its LNG customers in Japan and has helped to establish
an important source of power for
Australia’s reputation as a major LNG exporter and trade partner.
Japan's major industrial regions.
Since the first shipments of LNG were made to Japan in 1989, the North West Shelf Project has delivered more than 3200 LNG cargoes to customers in the Asia Pacific. End customers include some 90 million Japanese people, in addition to millions of consumers in other countries in Asia. LNG is an important source of power for Japan’s major industrial regions. The North West Shelf Project participant companies include BHP Billiton (North West Shelf) Pty Ltd, BP Developments Australia Pty Ltd, CNOOC NWS Private Limited, Chevron Australia Pty Ltd, Japan Australia LNG (MIMI) Pty Ltd, Shell Development (Australia) Pty Ltd and Woodside Energy Ltd (Operator).
AUSTRALIA–JAPAN | 61
3 Strong commercial partners
Strong commercial partners
In the 21st century, Japanese and Australian business leaders continue to build upon the vision their predecessors showed by signing the 1957 Commerce Agreement—a document that transformed the economic destinies of Japan and Australia. Since Japan became a major investor in Australia in the 1970s, trade and investment have brought jobs and prosperity to many Australians. Today, Australia’s exports to Japan deliver the equivalent of $A5000 worth of benefits to every Australian household. That figure would be higher if we include Japan’s investment in Australia. Our trade with Japan has produced our largest bilateral trade surplus—$A25 billion in 2010. This figure does not include goods produced by Japan externally using global supply chains that include Australian manufacturers. Australia’s relationship with Japan covers a wide range of areas. Some key aspects of the nations’ close affiliation are explored below.
Lynas: Meeting 30 per cent of Japan’s rare earth requirements In March 2011, Australia’s Lynas Corporation entered into agreements with Sojitz Corporation, Japan’s leading trader in rare earth elements, and Japan Oil, Gas and Metals National Corporation (JOGMEC), to supply 8500 tonnes of rare earth elements per annum for 10 years. Rare earth elements, which comprise the Lanthanide group of elements in the periodic
Tokyo's Roppongi Hills shopping
table, were first mined in India and Brazil prior to the 1950s. Since that time, the elements
centre comprises more than 200
have found an increasing range of scientific, medical and industrial applications, from oil
shops, restaurants and cafes.
refining to laptop hard drives, headphones, hybrid engines, catalytic converters, X-ray units,
©Yasufumi Nishi/©JNTO
64 | Australia—Japan
Queensland desert region: thanks
lasers, wind turbines, and television and computer screens. While rare earth elements are
to discoveries in remote locations
not as rare as previously thought—some are more abundant than copper and lead—they are
like this, Australia has become
found in small, widely dispersed concentrations and are difficult to exploit. World demand
one world's leading miners and
for rare earth elements in 2010 was estimated at 136,000 tonnes, with global production at
suppliers of rare earth elements.
around 133,6000 tonnes. The shortage is covered by reprocessing previously mined, aboveground stocks. With demand expected to increase to 185,000 tonnes per annum by 2015, and with new mines taking five to 10 years to reach full production, vigorous efforts are underway to find new sources of the metals. Concerns over rare earth elements have intensified over the recent actions of China, which controls about 60 per cent of world supply, either through production or stockpiles. The ready availability of rare earth elements from China has traditionally kept prices low, causing many rare-earth mines elsewhere to become unprofitable. In September 2010, however, China imposed export restrictions in rare earths and suspended all export of the minerals to Japan. From 2007 to 2010, China’s exports of rare earth elements halved, and world prices for the metals doubled. Today, rare earth mines that were previously unviable are being brought back online, although full production is still several years away. To reduce its reliance on the supply of these critical minerals from China – an outcome that remains far from certain, despite some relaxation in their trade—Sojitz, a major Japanese trading company, has held negotiations with Australia’s leading rare earths mining company, Lynas Corporation Ltd. Lynas has two key operations: a mining and concentration plant at Mt Weld in Western Australia; and a refining facility under construction in Kuantan, Malaysia. The Mt Weld facility produces light, rare earth elements that are sold directly to other countries for further
66 | Australia—Japan
refining. Some of the mine’s production will become feed stock for its facility in Malaysia. On 30 March 2100, Sojitz, entered into definitive agreements with Lynas to provide $US250 million through loans and equity that will enable Lynas to complete construction of its mining plant in Malaysia. Lynas has agreed to provide Sojitz with 8500 tonnes of rare earth products per annum for 10 years, a volume that represents 30 per cent of Japanese demand for the minerals. As part of the deal, Sojitz becomes sole distributor of the products and Lynas’ sole agent in Japan, enabling Sojitz to provide its clients with a reliable supply of high-quality rare earth products. Following the signing of a strategic alliance between Sojitz and Lynas in November 2010, the two companies have explored opportunities for trade in the metals, including joint marketing to identify customers in Japan and the financing for phase two of Lynas’ operations. In response to a request for financial assistance from Sojitz, JOGMEC, a semi-government agency tasked with securing reliable supplies of natural resources for Japanese industry, agreed that the deal with Lynas would help Japan to diversify its sources of rare earth elements and achieve a more stable and reliable supply. JOGMEC released the supplementary budget in the Rare Earth Package for fiscal 2010, which the Japanese cabinet approved in October 2010, enabling the deal to proceed.
Japan’s mythical giraffe, Kirin, and Australia’s Lion: One of the world’s largest food and beverage alliances Lion can trace its origins back to 1795, when James Squire, convicted highway robber, one-time policeman and legendary publican, produced Australia’s first commercial ale at the Malt Shovel Brewery in Sydney’s Camperdown. STRONG COMMERCIAL PARTNERS | 67
Tokyo skyscrapers are yet to upstage Mt. Fuji, Japan's tallest mountain, which is 3776 metres high. Photo: © Shimizu, JNTO
From these beginnings, Lion has become a leading food
leader. Kirin's overseas brewery operations, achieved through
and beverage company with a portfolio that includes many
strategic alliances, subsidiaries and affiliates, extend to China,
household brands of beer, spirits, wine, milk, fresh dairy
Taiwan, the Philippines, Europe, New Zealand and the United
foods, juice, cheese and soy beverages. Lion was formed in
States. The company also handles the domestic distribution
October 2009 when Kirin Holdings of Japan purchased Lion
of several foreign brands, including Budweiser and Heineken.
Nathan and merged the business with National Foods, which Kirin acquired in 2007. In 2011, the company became known
The company is capitalised at over ¥100 billion and employs nearly 32,000 people worldwide.
as Lion. Today, Lion employs nearly 8000 people in Australia agricultural goods. It has become an integral component of
Mercian and Lion: Blending Australian wine to suit Japanese tastes
the retail, hospitality and tourism industries. The company has
In March 2011, Mercian Corporation, the Japanese winery
operations in every Australian state, as well as New Zealand,
and wine importer, launched in Japan eight wines from the
Singapore, Malaysia, Indonesia and the United States.
St Hallett winery in South Australia.
and New Zealand and is the region’s largest purchasers of
The genesis of Kirin dates back to establishment of the
Six of the wines are imported into Japan directly from
Japan Brewery Co. Ltd. in 1885. Three years later, the
the Barossa Valley, including St Hallett Gamekeepers Shiraz
company introduced German-style beer under the Kirin
Grenache, St Hallett Eden Valley Riesling, and St Hallett Faith
name, and in 1907 the company became known as Kirin
Shiraz. Two wines, St Hallett Tatiara in cabernet-shiraz and
Brewery Co. Ltd. The name comes from the Chinese Qilin,
chardonnay varieties, are blended in Australia and bottled
a mythical hoofed chimerical creature whose spontaneous
at Mercia’s Fujisawa plant to reflect the characteristics of
appearance is said to herald the imminent birth of a great sage
Australian wine, while ensuring optimum appeal for the
or ruler, and whose stylised depiction adorns the Kirin logo.
discerning Japanese consumer.
Today, Kirin sells two of the most popular beers in Japan:
The initiative is the result of the synergies emerging within
Kirin Lager, the country's oldest beer brand, and Ichiban
the Kirin Group following its acquisition of Mercian in 2007
Shibori. In the low-malt category, Kirin Tanrei is the market
and Lion in 2009, and reflects a high level of co-operation
68 | Australia—Japan
Japan's Kurushima-kaikyo-ohashi Bridge spans more than four kilometres. Photo: © JNTO
between Australian and Japanese winemakers. The St Hallett
capacity of 27,000 tonnes and supplied barley and pilsener
winery is one of seven owned by Lion, and its products have
malts to breweries in Australia, South Asia and other
recently joined the ranks of leading Australian wines, such as
international markets. In 1982, Kirin acquired full ownership
Taylors and Jacobs Creek, in earning a strong position in the
of the plant and increased annual production to 42,000
Japanese market.
tonnes. In 1984, the KBB Malting Company was renamed
Following the success of the St Hallett Tatiara varieties,
Kirin Australia Pty Ltd and today the plant produces 46,000
Mercian expanded the range in February 2012 to include
tonnes of malt per annum. The success of Kirin beer on
rosé, and released the popular cabernet-shiraz and
the international stage has established Australian malt’s
chardonnay varieties in smaller 180 millilitre bottles for more
worldwide reputation for being of premium quality and
casual enjoyment. The rosé is a dry, lively wine that goes well
available for export in dependable quantities to anywhere in
with light dishes featuring spring greens and vegetables.
the world.
Bottling the wine in Japan ensures consistent quality, and makes it possible to use lightweight bottles to reduce the environmental impact. The wine is transported in specially designed, low oxygen-permeability bags.
Transfield and Kumagai Gumi: Easing Sydney’s congestion with Japanese tunnelling expertise Sydney’s town planners have long observed that the city’s
Kirin Australia: Australia’s premium malt on the world stage In the early 1970s, the Barret Burston Malting Co. Ltd,
crown jewel, its harbour, is something of an obstruction to the free flow of traffic. When the first proposal for a tunnel crossing emerged in
which established Australia’s malting industry in the 1860s,
1885, Sydney’s roads were choked with wagons, drays, horse-
approached Japan’s Kirin Brewery Co. Ltd with a view to
drawn carriages and hansom cabs. The harbour’s ferries were
setting up a joint-venture malting plant. The result was
found to be a relaxing but inefficient means of conveying
the formation of the K.B.B. Malting Company Pty Ltd at
large numbers of commuters to the city centre. Over the next
Welshpool, Perth, in June 1976. The plant had an annual
100 years, no fewer than 12 proposals for a harbour tunnel STRONG COMMERCIAL PARTNERS | 69
Sydney's Cross City Tunnel was built as a private investment by Transfield in partnership with Kumagai Gumi.
70 | Australia—Japan
were submitted and rejected, with the number abating only
twin 900-metre land tunnels on the northern approach,
slightly after the opening of the Sydney Harbour Bridge
twin 400-metre land tunnels on the southern approach and
in 1932. By the mid-1980s, research indicated that, as 46
a 960-metre immersed tube structure. The tunnel falls 55
per cent of commuters on Sydney’s north shore use public
metres from the northern entrance and 35 metres from the
transport, improving public transport would have limited
southern entrance to its deepest point, 25 metres below sea
benefit in easing congestion on the Harbour Bridge. Instead,
level. The immersed portion of the tunnel was constructed
the preferred option was a harbour tunnel that would enable
from eight precast concrete units, fabricated in a casting
some lanes on the Harbour Bridge to be dedicated to buses,
basin at Port Kembla, 100 kilometres to the south. A trench
thereby improving travel times.
was dredged for the concrete units and they were lowered
In 1986, the New South Wales government accepted a proposal by Transfield and Kumagai Gumi to build a harbour tunnel as a private investment. In partnership, these two entities had already notched
into place using a system of pontoons and control towers. The units were then backfilled with protective rock. The completed tunnel is able to withstand earthquakes and marine hazards, such as anchors and sinking ships. The total
up some successes in the Perisher snowfields in southern
cost of the tunnel was $A553.8 million, which was largely
New South Wales. Perisher is Australia’s largest ski resort
funded by 30-year inflation-index bonds underwritten by
with 47 ski lifts and a capacity to lift 51,000 skiers per
the Australian banking megalith, Westpac. The joint-venture
hour. Together, Transfield and Kumagai were responsible
partners provided a loan of $A40 million, and the New South
for the development and construction of the Blue Cow Ski
Wales government provided an interest-free loan of $A223
Resort, the Station Resort at Jindabyne and the Skitube
million. Ownership of the tunnel transfers to the New South
Rack Railway—an underground train with three station
Wales government in 2022, at which time the value of the
terminals, delivering skiers from Thredbo Valley directly to
tunnel as an infrastructure asset is expected to be some $2
the snowfields.
billion in today’s terms.
Kumagai Gumi, based in Shinjuku, Tokyo, employs 2300
After building the Sydney Harbour Tunnel, Kumugai Gumi
people worldwide. It is one of Japan’s oldest and most
completed the Eastern Harbour Crossing in Hong Kong in
respected civil engineering firms, starting operations on
1989, employing the cut-and-cover method similar to that
1 January 1900. It has offices in Hong Kong, Vietnam,
used in Sydney.
Sri Lanka and Taiwan, and has completed many major constructions throughout South-East Asia. Its constructions include roads, bridges, subway tunnels, hydroelectric power stations, hotels, hospitals, schools and
In 1997 it completed Hong Kong’s Western Harbour Crossing. In 2007, Kumagai Gumi constructed the 2.2-kilometre New MetroRail City Project for the Public Transport Authority of Western Australia.
factories. Its office towers include the 500-metre, 101-storey Taipei 101 financial centre in Taiwan. The New South Wales government enshrined the proposed
Diagnostics: Australia at the international forefront
construction in the Harbour Tunnel Act, 1987. The tunnel,
Several years ago, a bullet train travelling at 270 kilometres
2.26 kilometres in length, was constructed in three sections:
per hour with 800 people on board travelled 36 kilometres STRONG COMMERCIAL PARTNERS | 71
Professor Graeme Clark (right), surgeon and inventor of the Cochlear ear implant, with the first recepiant of his device, Mr Rod Saunders, on the 30th anniversary of the procedure. AAP Image/Julian Smith.
Cross City Tunnel administration building, Sydney. Photo: AAP Image/Peter Ryan.
with the driver asleep. Automatic backup systems stopped the train without incident, and it was revealed that the driver suffered from sleep apnea. Australia is a world leader in sleep diagnostic equipment, with companies like ResMed, based in Bella Vista, Sydney, and Compumedics, based in Abbotsford, Melbourne, having an established presence in the Japanese market. The incident sparked heightened interest in Australia’s sleep diagnostic equipment, and Compumedics reported a twofold increase in sales in Japan in the subsequent six months. ResMed is another outstanding achiever in this field, and has grown from a modest operation in Sydney’s North Ryde in 1989 to become a global leader with offices in Japan and 30 other countries. These devices belong to an array of Australian medical products that have found strong demand in the Japanese marketplace. With only 60 per cent of Japan’s $A37 billion medical devices market being met by local companies, Australia’s long-established expertise in this area is finding a natural home, to the benefit of both countries. Some of the devices are 72 | Australia—Japan
well known, such as Cochlear’s implantable hearing devices, which have experienced strong
Australian internatinional singing star
growth international growth, particularly in Japan, over the last 15 years. Others are less
Kylie Minogue visiting nine-year-old
well known, but no less remarkable. Adelaide-based RianCorp has pioneered medical laser
Natasha at the Royal Children's
products for photochemical applications, and is the only company in the world to have
Hospital in Melbourne. Minogue's
conducted randomised double-blind clinical trials on the effects of low-level laser therapy on
visit to the hospital was her first
lymphoedema. The company has three Japanese distributors for its products.
public appearance after undergoing
CryoLogic in Melbourne manufactures a range of cryopreservation systems, temperature
surgery for breast cancer.
control products and cell fusion/activation systems for use in the medical, veterinary and biological sciences. Japan is one of CryoLogic’s 35 export destinations. Vision Biosystems, also based in Melbourne, manufactures automated tissue processors, automated immunohistochemistry systems, and a range of optical electron microscopy products, and has achieved considerable success in the Japanese market. OptiScan is a global leader in the development and application of microscopic imaging technologies for medical markets, and is known for its patented miniaturised confocal microscopes. In 2002, the company began collaboration with Pentax in Tokyo to develop the world’s first flexible endomicroscope. The alliance bore fruit in 2006, with the Pentax ISC 1000 being given regulatory approval in Europe and the United States, and finding ready acceptance worldwide. In 2008, Hoya Corporation joined the collaboration after acquiring Pentax, and Hoya continues to market endomicroscope in Japan under the Pentax brand. In the rapidly advancing field of proteomics, which is the study of proteins expressed by a genome, cell, tissue or organism, Australia and Japan have collaborated to pioneer a range of diagnostic products and drug treatments. Proteome Systems, a Sydney-based medical research company with facilities in Boston and Osaka, specialises in respiratory disease, STRONG COMMERCIAL PARTNERS | 73
neurodegenerative disease and aging. The company works with the High Q foundation to identify the biomarkers for Huntington’s disease, the Institute for the Biotechnology of Infectious Diseases at the University of Technology, Sydney, in the area of antimicrobial drug discovery, Westmead Hospital and Westmead Children’s Hospital in Sydney in research into ovarian cancer, and the Royal Children’s Hospital in Brisbane under its cystic fibrosis program. Technologically, the company has a strong partnership with Shimadzu Biotech, a subsidiary of the 135-year-old, Kyoto-based medical instruments specialist Shimadzu Corporation. Together, the companies developed the Xcise robotic gel cutter, lauded by the Harvard School of Public Health as “a powerful technology platform that automates gel processing for high throughput proteome analysis”, and the innovative Chemical InkJet Printer (ChIP), which delivers picolitre volumes of reagent to a target surface. Following the success of these products, the US arm of Proteome tightened its collaboration with Shimadzu Scientific in the US to promote the products throughout America. Prime Minister Gillard inspects solar panels at the CSIRO Energy Centre. © Julia Gillard
Another leading collaboration in the field of biotechnology is Stem Cell Sciences, devoted to embryonic stem cell research, with research centres in Scotland and Japan. Each centre is affiliated with stem cell centres of excellence, including the Australian Stem Cell Centre and Melbourne’s Monash University, and the RIKEN Centre for Developmental Biology in Kobe. Despite the strong competition from Japanese pharmaceutical companies for a share of the country’s $A75 billion medications market, Adelaide’s Mayne Pharma has achieved considerable success with its innovative
74 | Australia—Japan
Cleantaste acetaminophen and ambroxol, which allow a polymer coating
Above: The head of a silkmoth, including
to be applied to small particles up to 150 microns in diameter. The
brain and antennae, sits mounted on a
technology can be used to improve taste or to achieve sustained-release
wheeled machine. Japanese scientists found
characteristics in medications.
that motor commands sent to the vehicle in response to odour stimuli could be translated
Itochu and the CSIRO: One of a growing number of biotechnology alliances
into signals to steer the machine. AFP PHOTO/Yoshikazu TSUNO
Early biotechnologies, such as fermentation, enzyme production and fermented foods, have played a critical role in Japan’s culture and industry for
Above left: The CSIRO's 64-metre Australia
over a thousand years.
Telescope National Facility in Parkes, central-
Representative of Japan’s eagerness to embrace the benefits of new
western New South Wales.
forms of biotechnology, such as those of the pharmaceutical industry, is the Biotechnology Strategy Council, a high-level government organisation whose members include the Prime Minister and the ministers of five key portfolios. This initiative, coupled with tax breaks to support research and development and government support for the establishment of clinical trials for medical products, has provided fertile ground with affiliations between Japanese trading companies and Australian research institutes. The affiliation between the CSIRO and the Japanese trading giant Itochu dates back to February 1996 when the two entities signed an agreement in Tokyo designed to facilitate Australia’s access to Asian food markets. The agreement provided for a CSIRO representative to work at Itochu’s research division to study how Japanese companies conduct their operations and to find market opportunities for Australian companies. The initiative was part STRONG COMMERCIAL PARTNERS | 75
of the Food into Asia program, conducted by CSIRO and the Department of Industry Science and Technology (now the Department of Industry, Innovation, Science, Research and Tertiary Education). Under the agreement, Itochu helped to commercialise CSIRO technologies in Japan and other Asian countries, with Itochu and CSIRO sharing the financial rewards of the venture. This affiliation paved the way for further alliances with Itochu, and in 2001 the company joined forces with three Australian research institutes, including the CSIRO, to market their biotechnology products. The other two entities were the Australian Institute of Marine Science (AIMS) and Queensland University’s Institute for Molecular Bioscience (IMB). Initially, Itochu marketed biotech software developed by CSIRO and IMB for genetic diagnosis and protein analysis, as well as cosmetics developed by AIMS using a chemical His Royal Highness Prince William of Wales, KG,
compound derived from coral. Itochu also introduced
prepares to board research vessel Southern
the institutes’ biotechnology products to Japanese
Surveyor to view robotic marine instruments that
pharmaceuticals companies and other Asian companies.
have revolutionised ocean observations and climate science. © Commonwealth of Australia
The latest success in this affiliation is CSIRO’s new soybean variety, the Bunya, which is proving to be the ideal ingredient for many traditional Japanese dishes. CSIRO bred the
76 | Australia—Japan
Japan's SPring-8, the world's largest and most powerful synchrotron facility. The construction of a synchrotron in Australia will complement this facility and mark the start of a new era in Japanese-Australian scientific partnerships.
soybean from an old Japanese variety, with some American
this purpose. Where an individual Bunya crop fails to meet
and Australian ancestry, aiming to increase yields and
the quality required for human consumption, there is a ready
improve culinary quality.
market for the crop as stockfeed.
The result is a new soybean that is twice the size of
Bunya is particularly liked by the Japanese because its
conventional varieties, with improved yields for growers
superior quality makes it suitable for edamane, a preparation
and processors. The Bunya produces a range of proteins that
of baby soybeans in the pod, as well as miso, the traditional
quickly form a stiff gel, making it the perfect base for many
Japanese seasoning, and tofu.
soy-based foods, such as tofu and custard. First released in
While Itochu has cultivated a long-standing affiliation with
2006, the Bunya now accounts for 20 per cent of Australia’s
CSIRO and other institutes, another Japanese trading giant,
100,000-tonne annual soybean production. It gives better
Sojitz, has been working with Neurosciences Victoria as an
yields and, as the beans are of better quality, it attracts
exclusive agent to promote neuroscience research projects in
a premium price of $50 to $100 per tonne above other
the Japanese market. Neuroscience Victoria provides access
soybean varieties.
to a range of core scientific capabilities via a network of
The steady growth of genetically modified crops, including soybeans, has created a market niche for non-GM soybean for human consumption. The Japanese market is particularly
neuroscience platforms operated by members of the worldclass Melbourne Neuroscience Cluster. The disease specialisations represented by the neuroscience
sensitive to genetically modified crops, and there is high
cluster include multiple sclerosis, schizophrenia, dementia,
demand for crops such as the Bunya that have been bred
epilepsy, depression, Huntington's disease, neurotrauma,
using non-GM techniques.
Parkinson's disease and stroke.
The Bunya targets the high-value, human-consumption
Neuroscience Victoria was established by experts from
market, where soybeans are used to make tofu is of the
the University of Melbourne, the Howard Florey Institute
highest value, followed by that for soymilk and soy flour.
of Experimental Physiology and Medicine, Monash
Stockfeed products occupy the lower end of the market, and
University, and the National Stroke Research Institute. Other
Australia imports 400,000 to 600,000 tonnes annually for
participants include Sydney University, the Brain Research STRONG COMMERCIAL PARTNERS | 77
Institute, John Curtin School of Medicine and the Mental
in research and development has been steadily growing, and
Health Research Institute. Given the aging of society in the
is currently equal to 10 per cent of revenue. During its 20
industrialised world, there is compelling medical demand for
years of operation, CISRA has filed more than 1300 patent
neuroscience research. The world market for neuroscience-
applications on behalf of Canon, and has generated exports
related medicine was estimated to be worth $US130 billion
valued at $A50 million.
in 2010. The Japanese government has placed particular
Established in 1990, CISRA plays a key role in Canon’s
emphasis on diseases such as Alzheimer’s, which may benefit
future direction, together with other research centres the
from neuroscientific research.
company has established in the United States, France, India
The agreement signed with Sojitz (formerly Nissho
and Beijing. Although the costs of operating an R&D centre
Iwai) allows Neuroscience Victoria to seek partnership
in Australia are higher than in other countries in the region,
opportunities with Japanese pharmaceutical companies to
the superior talent of Australian researchers more than
commercialise its projects, while Sojitz provides functions
compensates for any additional outlay.
ranging from business development, arranging contracts, marketing, trading and distribution to financing.
The federal government’s tax incentives play an important role in supporting Australian research and innovation, and the National Broadband Network (NBN), which will create new
Canon R&D: the Asia-Pacific’s hub of technical expertise
opportunities and support research initiatives, demonstrates the government’s commitment to this vital area.
Canon Australia is a leading provider of advanced, simple-to-
At the ceremony in June 2010 to commemorate 20 years
use imaging solutions for businesses and consumers. Canon’s
of achievement at the facility, managing director Mr Hayao
Australian R&D company, Canon Information Systems
Ozu observed that the future of CISRA lies with closer
Research Australia (CISRA), develops customised solutions
collaboration with Australian universities and government
for local customers and exports digital imaging technologies
research organisations. He said that a critical challenge was
for use in Canon products worldwide.
to create a global software development system that can be
Canon’s extensive line-up of digital products, which encompasses copiers, printers, scanners, image filing systems, cameras and lenses, camcorders, broadcast equipment and optical equipment, enables business users and consumers to capture, store and distribute information. CISRA employs people with a wide range of expertise,
more cheaply implemented. Since its establishment, CISRA has had a number of technological accomplishments. In 2003, CISRA released its ZoomBrowser EX software application designed for the rapidly expanding digital camera market. The software facilitates downloading and
including research engineers, software engineers, hardware
managing images, and features a user interface that zooms
engineers, usability experts, user interface designers,
to provide quick and easy image browsing and a novel way to
verification and validation engineers and technical writers.
organise and annotate photo collections. ZoomBrowser EX is
With a workforce numbering close to 300, CISRA is one
distributed with cameras in Canon’s digital still range. Around
of Australia’s leading private sector research employers,
the same time, PhotoRecord made its debut, which enabled
ranking alongside Google and Cochlear. Canon’s investment
home users to easily create high-quality photo albums.
78 | Australia—Japan
The Australian government has committed $A62.4 million over four years to National Asian Language and Studies in Schools programs in Australian universities.
STRONG COMMERCIAL PARTNERS | 79
Japan's Minister for Foreign Affairs, Katsuya Okada, speaking with students during a visit to the Japan Club of Sydney.
PhotoRecord provides automatic album layout through an
Education: Promoting people-to-people links
intuitive, innovative and highly interactive user interface. The
To increase the opportunities for Australian school students
software is bundled with Canon digital cameras, photo-grade
to become familiar with the languages and cultures of our
bubble jet printers and high-end scanners. Over 100 million
key regional neighbours, particularly Japan, the Australian
copies have been distributed worldwide to date.
government has committed $A62.4 million in funding over
CISRA’s unique ultra fast rendering (UFR) technology allows low-cost, high-performance, high-resolution colour and monochrome page processing in a wide variety of printer
four years for the National Asian Language and Studies in Schools Programs (NALSSP). The program provides funding in four key areas: state
products. This unique process is employed across Canon’s
and territory government and non-government educational
entire print product range, from inexpensive consumer
authorities; organisations, including universities, providers
models that use computer drivers, through to networked
of higher education, businesses and Asian communities
office multifunction imageRUNNERs, and professional
(the Strategic Collaboration and Partnership Fund); schools
imagePRESS models.
operated by the Asia Education Foundation (Becoming Asia
CISRA’s PosterArtist software enables the user to create professional-quality large-format posters through its intuitive but powerful interface and its library of ready-to-use poster
Literate); and Australian government national projects. The first round of funding generated strong demand, with 117 organisations applying to receive funding.
templates. PosterArtist is ideal for small business and inhouse print shops and is available internationally bundled
Language translation/instruction: A major player in
with Canon's large-format printers.
the area of translation and language instruction is Benesse
In 2003, CISRA’s CANVAS (video monitoring security application) was publicly demonstrated for the first time at the ASIS International exhibition (one of the world’s
Holdings Inc., based in Okayama, Japan, which has 33 subsidiaries throughout Asia and the United States. Member companies include Berlitz and Simul
largest security exhibitions) and has since become a strong
International. Its local arm, Benesse Global Career Acadmey
source of revenue for the company.
Pty Ltd in Crows Nest, Sydney, partners with the Northern
80 | Australia—Japan
Productictive relationship are constantly developing between Australian and Japanese students at Australian universities.
Sydney Institute of TAFE NSW to support Japanese high-
differences in lifestyle, education systems and culture.
school students wishing to come to Australia to embark on an
The comprehensive system of individualised worksheets
international career.
allows students to work at their own pace and experience the
The academy provides a 10-month TELC language course
fulfilment of solving problems on their own.
to allow the students to attain English proficiency and adapt to Australian styles of instruction. While studying at TAFE, the students are mentored by a Japanese staff member and provided with comprehensive support in career counselling and their student life. Students who have undertaken part of their tertiary
Recruiting staff: Established in 1991, Staff Solutions
Australia Pty Ltd offers assistance to Japanese expatriates in recruiting, visa consultation and education consulting. It has approximately 12,000 multilingual staff in placements nationwide, and its clients include many of
education in Japan can choose from the wide range of courses
Japan's largest and most prestigious corporations, as well
that TAFE offers, and gain credit for the subjects they have
as many multinational conglomerates.
already completed back home.
The company operates as a consultant to international students wishing to study at Australian universities, TAFE
Self-paced learning: Based on the self-paced teaching
or other colleges, or language schools. Its visa consulting
principles of high school mathematics teacher, Toru Kumon,
division assists in a range of visa applications, and its
in Osaka in 1954, the Kumon Method of Learning has
interpreter and translation division dispatches NAATI-
spread to 46 countries and has 4.3 million enrolments
accredited professionals.
worldwide. In Australia, Kumon has hundreds of learning centres
With its head office in Sydney, it has branches in Cairns, Brisbane, the Gold Coast, Melbourne, Adelaide and Perth.
in the capital cities and scores more spread throughout
The company targets people emerging from the Japanese
regional areas.
education system who have broad-based skills and who
The Kumon Method has remained consistent for over 50 years and is readily accepted in many countries, despite
are looking to further their careers abroad in a more specialised area. STRONG COMMERCIAL PARTNERS | 81
prepare a statue for airfreighting
Shipping and Logistics: No job too big for Nippon Express
to the University of Pennsylvania
The curators at the Musée du Louvre might think carefully before entrusting the Venus de
Museum of Archaeology and
Milo or the Mona Lisa to a freight company for dispatch to an international exhibition.
Anthropology.
On both occasions this circumstance has arisen, once in 1964 and again in 1974, the curators
Above: Nippon Express staff
chose Nippon Express, known in Japan as Nihon Tsu-un, or simply Nittsu. Above right: ANA (All Nippon
During its 140-year history, the company has transported some of the world’s most
Airways) pilots training to fly the
delicate and priceless treasures, and, in the process, established a reputation for care and
new Boeing 787 Dreamliner.
attention to detail. The Japanese government became involved with Nippon Express in 1937. This led to the addition a number of small-scale transport entities and six rival companies. The result was a central transport company, partially funded by the government, which serviced all of the nation’s major cities. Nippon Express was relaunched as a private concern in 1950, and it subsequently opened overseas offices, first in New York (1958) then in Taipei and Sydney in 1967. Today, Nippon Express operates in 382 locations in 37 countries around the world, and employs over 15,000 people. Fine art transport is one of three specialty services provided by Nippon Express. The company also provides a comprehensive international relocation service that includes inspection and estimation, packing, customs clearance, shipping, insurance, storage, delivery and reassembly/set-up. In addition, the company specialises in the transport of heavy construction machinery, and is able to organise the dispatch of modules weighing up to 3000 tonnes by sea. The company offers international multi-modal transport under the Arrow International
82 | Australia—Japan
brand, making optimum use of the network linking its domestic branch offices, overseas
The first Boeing 787 Dreamliner
subsidiaries and affiliated agencies. Another logistics operation that continues to expand its
aircraft delivered to ANA (All Nippon
operations each year is Mitsui OSK Lines.
Airways).
Founded in 1878 to transport coal from Kuchinotsu in Japan to Shanghai, the company changed its name to Osaka Shosen Kaisha (OSK Lines) in 1884. In 1942, the large Japanese trading company, Mitsui & Co., spun off its shipping division to create Mitsui Steamship Co. Ltd In 1964, Mitsui OSK Lines was born through the merger of the two companies. Today, the company has 38 offices in around the world, including one in Sydney and one in Perth. In 1930, the company launched the high-speed cargo ship, the Kinai Maru, which reduced the travel time on the Yokohama-New York route by 25 per cent, from 35 days to less than 26 days. Since then, the company has continued to set the benchmark for international shipping. Today, the company operates the world’s largest fleet of bulk carriers, one of which, the Brasil Maru, specialises in iron ore. Each vessel in the fleet is designed and constructed to meet the unique characteristics of each cargo, and tailored to the needs of specific ports. Its fleet of oil tankers ranges from very large crude carriers (VLCCs) of more than 200,000 deadweight tonnes, to mid-size and small tankers, known as Suezmaz and Aframax tankers. In 1993, the company negotiated the contract for the Qatar Project, the world’s largest LNG transport contract, on behalf of a Japanese consortium, and transports six million tonnes of LNG per annum from the Middle East to Japan. The company is now involved in about 25 per cent of the world’s LNG transport. To meet the burgeoning export needs of Japanese car manufacturers, Mitsui OSK Lines launched the world’s first purpose-built car carrier in 1965. These vessels now form an important part of the world’s shipping operations. Their capacity has increased from STRONG COMMERCIAL PARTNERS | 83
Australian solar energy company Dyesol is drawing on experience gained at solar statons like this one in Spain to help meet increasing Japanese demand for solar power.
84 | Australia—Japan
1200 cars in 1965 to 6400 cars today. Mitsui OSK Lines
take advantage of the expanding opportunities offered by
operates one of the world’s most extensive networks of
the Japanese renewable energy market. Following Tokyo’s
container routes, serviced by a fleet of over 100 container
introduction of an emissions trading scheme in April 2010,
ships ranging in size from 700 to 8000 TEUs (20-foot
and as Japan prepares to launch its national scheme in
equivalent units). One TEU is the volume of one standard
2013, companies engaged in renewable energy are finding
20-foot shipping container, or 38.5 cubic metres.
investment decisions are much more favourable than before.
Each year, 1.5 million people relax aboard the company’s
Dyesol is a pioneer of dye solar cell (DSC) technology,
ferries and coastal liners as they travel around Japan’s
a third-generation solar technology that, when integrated
sprawling archipelago.
with building materials, has the potential to turn normal
The company launched Japan’s first cruise ships, the Fuji
structures into inexpensive power generators. With the
Maru (23,235 gross tons) and the Nippon Maru (21,903
recent completion of several pilot programs in Wales and
gross tons). Today, leisure cruises are an area of strong
America, Dyesol and its joint venture partners are on track
growth for the company.
to offer DSC as a large-scale commercial product within the next few years. Dye solar cell technology is based on the
Dyesol: Capitalising on Japan’s rekindled love of solar power
natural process of photosynthesis, and captures energy in
In his last act before stepping down as prime minister in
just as in photosynthesis, at the interface between the light-
August 2011, Naoto Kan signed into law legislation that will
absorbing dye and the semiconductor nanoparticles. The use
compel Japan’s utilities to purchase mandated amounts of
of nanoparticulate titanium dioxide as the semiconductor
renewable energy. The move marks a major shift away from
eliminates the need to use high-purity artificial
the New Energy Strategy prepared by Japan’s Ministry of
semiconductors or rare materials in the manufacturing
Economy, Trade and Industry (METI) in May 2006 that
process, thereby avoiding high materials costs and potential
calls for, amongst other things, the construction of nine
supply shortages.
new nuclear power plants by 2020. Japan’s demand for solar
much the same way as a leaf. The separation of charge occurs
The main feature of Dyesol’s technology is that it
energy is augmented by the premium prices paid by Japanese
generates electricity consistently. The cell voltage is
electric power companies for surplus solar energy Japanese
determined by the conduction band of titanium oxide,
households sell back to the grid.
and remains consistent in a wide range of light conditions.
As Japanese households make the transition to solar
This feature makes it ideal for use in shaded urban
power, foreign companies are entering the market at an
environments—and when used in buildings, it can generate
increasing pace. In an industry traditionally dominated by
power from both the external and internal light. An added
Kyocera and Sharp, the new market entrants are experiencing
feature is that it is substantially cheaper to manufacture
considerable growth and are starting to erode the market
due to the low-temperature processes involved and the
share of the Japanese players. Dyesol, based in Queanbeyan,
absence of high-vacuum technology needed for conventional
New South Wales, has had a presence in the Japanese
solar devices. Dyesol partners with leading international
market since it established a subsidiary in Tokyo in 2007 to
manufacturers of building materials in Europe, England and STRONG COMMERCIAL PARTNERS | 85
In partnership with Tata Steel, Dyesol has produced the world’s largest dye-sensitised photovoltaic module for micro energy generation.
America to integrate its technology, creating dye sensitised
the door to an array of collaborations with major Japanese
photovoltaic modules in glass or steel. In June 2011, the
corporations in the field, especially in consumer electronics.
Japanese Ministry of Economy, Trade and Industry selected
other leading renewables companies share in the ¥2.5 billion
Toyota Technical Centre: Cornerstone of the largest automotive company in Australia
($A31 million) subsidy and will work with leading Japanese
Toyota Technical Centre Australia is perhaps the most
researchers to develop advanced versions of the dye solar cell
advanced purpose-built autom otive design facility in
materials and devices. The main objective of the collaborative
Australia, and is staffed by engineers with the experience and
research is to increase the efficiency of the DSC technology.
technical expertise required to design a range of models for
Dyesol to receive a prestigious research grant to establish a regional research laboratory in Japan. Dyesol and four
Beyond the substantial financial injection, the grant delivers Dyesol many benefits. The new Japan R&D centre
the international market. The centre’s rapidly expanding payroll of 160 staff is
will give Dyesol an unprecedented ability to create intellectual
engaged in a range of local, regional and global projects that
property and facilitate strong working relationships with
encompass all stages of the vehicle design process. It is one of
centres of research in Japan.
Toyota’s five technical centres around the world.
Enhancements to its existing intellectual property for the
Since its establishment in 2003, the company’s primary
next-generation technology will enable Dyesol to achieve
focus has been on product development for Australia and
greater industrial efficiency.
Asia, notably body design, chassis design, evaluation and the
The facilities will be a substantial expansion of Dyesol’s R&D activities in Japan and will allow it to expand its ability
development of specifications. More recently, the centre’s engineers have beem taking
to service the Asian marketplace with the best quality and
on greater responsibility for the development and design of
performance in DSC materials and devices. Most importantly,
Japanese, European and American models. The centre has
the project provides Dyesol with the government imprimatur
six departments: body engineering, chassis engineering,
highly coveted by foreign companies because it can open
customer quality engineering, electronics engineering, vehicle
86 | Australia—Japan
Toyota's revolutionary hydrogen fuel-cell/electric car with a pre-collision safety system designed to protect and assist the driver.
evaluation, and support. The Body Engineering Department
with the Technical Centre in Japan to develop software for
has four teams, three of which consist of specialists highly
global vehicle projects, such as the electric motor control
skilled in the design and development of specific parts
system for hybrid vehicles. The Wire Harness Group is
that are common to different vehicles. The teams engage
responsible for the complete design and development of
in the design of the body shell and functional parts, such
wire harnesses for local and global vehicles. The Electronics
as glass and the fuel system, the exterior design, such as
Engineering and Evaluation Group designs and develops
the bumpers and grilles, and the interior design, which
body electronics, which control the clock, remote keyless
includes the leather and fabrics, the instrument panel, the
entry and the navigation and multimedia systems.
trim and airbags. The fourth team is a cross-functional unit
The Vehicle Evaluation Department is involved in the
responsible for vehicle body systems and components from
evaluation of locally made and imported Toyotas. The group's
concept to production, typically for a single model.
activities include dynamic testing, competitor benchmarking,
The Chassis Engineering Department is responsible for systems relating to running, stopping and turning. The team
overall vehicle evaluation and environmental studies. The support team comprises members from human
is also involved in the development of chassis components,
resources, IT, accounting, finance, and engineering
including pipes within the hydraulic brake system, as well
administration, and assists with the control and management
as the braking systems, the suspension, and the tyres and
of engineers’ design drawings.
wheels. The Customer Quality Engineering Department participates in after-sale quality review and improvement, and operates on the principle that early detection equals early resolution. The Electronics Engineering Department comprises three groups responsible for the development and inclusion of cutting-edge technologies that increase vehicles’ safety and functionality. The Software Development Group works closely STRONG COMMERCIAL PARTNERS | 87
SOJITZ CORPORATION New way, New value Sojitz Corporation is a general trading company created through the merger of Nichimen Corporation and Nissho Iwai Corporation, which were established more than 100 years ago. As a company that creates new businesses and new value, Sojitz is involved in a broad range of operations worldwide, including automobiles, plants, energy mineral resources, chemicals and food resources. In Australia, Sojitz develops new businesses and conducts trading through its wholly owned subsidiary, Sojitz Australia, with its head office in Sydney and branches in Melbourne,
The Minerva coal mine, located
Perth, Brisbane and Papua New Guinea. Leveraging the comprehensive strengths of the
approximately 45km south of
Sojitz Group, we handle a wide spectrum of industries and products originating in Australia,
Emerald City in Queensland.
from natural resources to chemicals and consumer products. We export approximately 7 million metric tons of coal to Japan and China annually from our own mining interests in the Minerva Coal Joint Venture, Moolarben Coal Mine and other sources as well as from independent suppliers in Queensland and New South Wales. We have raised our stake in the Minerva Coal Joint Venture to 96 per cent and assumed control of operations with the intention of further expanding the scope of this business. In rare earths, we collaborated with the government of Japan to invest in and provide loans to Lynas Corporation Limited for the expansion of a mine in Western Australia. We will serve as sole distributor and agent in Japan, supplying approximately 8,500 tons annually of rare earths produced by Lynas, which is equivalent to approximately 30 per cent of Japan’s current demand. In 2007, we acquired a 30 per cent interest in the Southdown Magnetite Project. Iron ore concentrate produced by this joint venture is expected to total 7 million metric tons per annum for more than 30 years from 2013. We also have a 10 per cent stake in Dampier Salt Limited, which produces about 10 million metric tons of industrial salt per annum. In the woodchip business, we have been involved in the operation of tree plantations in Victoria since the 1990s. These plantations now cover a total of 10,000 hectares. Wheat and beef are two other major exports from Australia. Every year, we export more than 1 million metric tons of wheat from Western Australia and Victoria to Indonesia, Japan and other Asian countries, as well as frozen beef and live cattle. Abundant yields, political stability and proximity to Asian countries make Australia one of the Sojitz Group’s most competitive sources of energy, mineral, food, forest and other natural resources. We aim to expand earnings by accurately meeting strong demand in China and other Asian countries in addition to supplying Japan’s needs. With our sights set on sustained growth, we will continue to emphasize acquisition of prime natural resource assets and improvement of efficiency through optimal asset reallocation. 88 | Australia — Japan
JX Holdings JX Holdings, Inc., is an integrated energy, resources, and materials business group founded in April 2010 through the integration of Nippon Oil Corporation and Nippon Mining Holdings. The group is centred on three core operating companies: JX Nippon Oil & Energy Corporation, JX Nippon Oil & Gas Exploration Corporation and JX Nippon Mining & Metals Corporation, all market leaders in their respective fields in Japan and active overseas, including in Australia. JX Nippon Oil & Energy conducts refining and marketing of petroleum and petrochemical products, and boasts the No. 1 share in the fuel sales market, the largest number of service stations (ENEOS brand) and the biggest paraxylene supply capacity in Asia. In its operations in Australia, the company collaborates closely with Xstrata, an
JX group operates Japan’s biggest petroleum refining and marketing
international resource giant, in maintaining the stable supply of coal from the Bulga coal
business, an oil and natural
mine in New South Wales, which has become one of the bestselling brands of Australian
gas exploration and production
thermal coal in Japan.
business, and a metals business
JX Nippon Oil & Gas Exploration conducts an oil and natural gas exploration and
(picture: Bulga coal mine).
production business, and is a leading company in Japan in terms of production of natural gas and crude oil. Its overseas operations comprise such fields as crude oil, LNG and oil sands. The company is involved in crude oil production and exploration in Australia, where the Mutineer-Exeter oil fields of the north-west produce low-sulfur, high-quality crude oil. JX Nippon Mining & Metals conducts a metals business, and is one of the global leading producers of electrolytic copper and electronic materials. In Australia, the company is engaged in the exploration of metal resources and the development of a hydro-metallurgic method called the Nikko chloride process, which enables the effective recovery of nonferrous metals such as copper and gold from low-grade copper concentrates. An Australian company, Newcrest Mining Limited, is assisting JX Nippon Mining & Metals with demonstration tests for this technology at a pilot plant.
AUSTRALIA–JAPAN | 89
Woodside Woodside is the biggest operator of oil and gas production in Australia. We are Australia’s largest independent dedicated oil and gas company. Throughout Woodside’s 57-year history we have strived for excellence in our safety and environment performance and we aim to ensure that wherever we operate, the community benefits from our presence. Woodside produces around 700,000 barrels of oil equivalent each day from an extensive portfolio of facilities which we operate on behalf of some of the world’s major oil
Woodside is Australia's largest oil
and gas companies. Our operated facilities include six liquefied natural gas trains (five in
and gas producer. The natural gas
operation, one in commissioning phase), four offshore platforms (three in operation, one in
we produce and market helps meet
commissioning phase) and four oil floating production storage and off-loading (FPSO) vessels.
the demand for cleaner energy
We are the most active exploration company in the deepwater provinces of Australia, having participated in around 40 per cent of Australia’s deepwater exploration wells. We have been operating our landmark Australian project, the North West Shelf, for more than 25 years and it remains one of the world’s premier LNG facilities. The natural gas we produce and market helps meet the demand for cleaner energy from customer countries, including Japan, China, Korea, Australia and other Asia Pacific nations. Our international assets include deepwater production facilities in the USA's Gulf of Mexico plus exploration acreage in the USA, Brazil, Peru and South Korea. In 2012 Woodside will begin production from the Pluto LNG Project. At full capacity it will add more than 100,000 barrels of oil equivalent a day to our operated production. We are seeking to expand the Pluto facilities and build new standalone projects including our Browse and Sunrise LNG developments. Through the depth of our experience, the capability of our people, and our strong relationships with customers, co-venturers, governments and communities, we seek to be the partner of choice.
90 | Australia — Japan
from customer countries, including Japan, China, Korea, Australia and other Asia Pacific nations.
Baker & McKenzie Baker & McKenzie combines an uncompromising commitment to excellence with fluency in the way we think, work and behave—an instinctively global perspective, commercially pragmatic advice, a genuinely multi-cultural approach and a passion for collaborative relationships. Our 170 lawyer team in Tokyo includes over 10 Australian lawyers and several Japanese lawyers with experience in Australia. Our Sydney and Melbourne offices have over 290 lawyers, a number of whom have worked in Japan and are fluent in Japanese. We have operated for over 40 years in each country and have a significant track record of transactions between the two countries. We have an ongoing exchange of staff between our offices and, as with all Baker & McKenzie’s global offices, our offices in Tokyo, Sydney, and Melbourne are seamlessly linked, providing fluent legal services to clients looking to expand their businesses in Japan and Australia. We frequently advise Australian companies with their
Top left to right: Anne Hung (Tokyo) and Paul Davis (Tokyo).
business in Japan and have been at the forefront in assisting
Bottom left to right: Richard Lustig (Melbourne) and Ben
Japanese companies investing in Australia.
McLaughlin (Sydney).
Recent recognition of our expertise can be seen with the following awards: “Legal Advisor of the Year” Financial Times-mergermarket Asia Pacific M&A Awards 2010 and 2011 “International Law Firm of the Year” 2011 Macquarie Bank ALB Australasian Law Awards “The ALB 50—Asia’s Largest Law Firms” published by Asian Legal Business has recognised our firm as the largest international firm in Japan for three consecutive years outnumbering the second largest firm by more than 40 lawyers.
AUSTRALIA–JAPAN | 91
Allens Arthur Robinson Allens Arthur Robinson (Allens) is a leading international law firm with over 1,500 personnel in 14 cities in Australia, South East Asia and China (and most recently Mongolia). With more than 180 years of commercial practice experience, Allens has a distinguished reputation, having acted for many years as principal lawyers to many of the leading corporations and financial institutions from around the world. Allens has a long association with Japan and major Japanese corporations with significant dealings in Australia and the Asia Pacific region. Allens is able to provide unparalleled support to its Japanese clients through the Co-operative Alliance it
Tim Lester (left) is co-head of the firm’s corporate finance practice in Perth
enjoys with Nagashima Ohno & Tsunematsu, one of
and Head of the Allens’ Japan Practice. Michael Rose (right) is the Chief
Japan’s premier law firms.
Executive Partner of international law firm, Allens Arthur Robinson.
The value that Allens provides to our Japanese and international clients is enhanced and strengthened by the teams we have across our offices that offer a detailed knowledge of the legal systems and business practices of Japan, Australia and the key countries across the region.
FOCUS PUBLISHING If you don’t tell your story, who will? Focus has a 22-year record in creating high-quality corporate and industry books. Focus Publishing provides a turnkey service tailored specifically to the requirements of each project, from concept development, interviewing and writing through to editing, design, production, print management and distribution. Our service includes: Planning · Content development · Sponsorship · Design and artwork · Project management · Print management · Distribution and marketing · Digital and Web design. Every industry has a unique story and different corporate communication needs. Focus creates unique, relevant and targeted industry annuals and special event books. 92 | Australia — Japan
Clayton Utz "As a top tier Australian law firm, with market-leading expertise and experience, we are dedicated to bridging the gap between the Japanese and Australian legal systems, cultures and languages to ensure our clients' businesses grow and succeed." Clayton Utz's long-standing and successful relationship with various types of Japanese corporations and government entities, coupled with the excellent relationship we have with the major Japanese law firms, ensures our reputation for being a leading firm with the expertise and experience to assist our Japanese clients. Our highly dedicated team of Japanese qualified bengoshi and Australian lawyers with Japanese legal, language and cultural knowledge provides a
At Clayton Utz, we are dedicated to bridging the gap between the Japanese and Australian legal systems.
wealth of experience in this area. We have acted for Japanese clients across a wide range of industry sectors on transactions relating to securities, mergers and acquisitions, exploration, mining and mine development, corporate, taxation, licensing, distribution and supply, competition, employment, insolvency, litigation and dispute resolution.
Deloitte Our Commitment Deloitte Touche Tohmatsu’s Japanese Services Group (JSG) focuses on meeting the needs of Japanese companies worldwide through more than 500 Japanese bilingual professionals, including more than 20 in Australia’s major cities. The JSG’s multidisciplinary services include internal audit, risk management, mergers and acquisitions, international tax, transfer pricing, international assignment and corporate restructuring, as well as human resources, strategy and organisational consulting. The Australian JSG is committed to providing quality services to Japanese corporations operating throughout Australia. Recent Awards: Kennedy names Deloitte a global leader and fastest-growing
Providing quality services to Japanese corporations operating throughout Australia.
in Information Management and Analytics 2010 – 2013; BRW Client Choice Awards 2011 for Best Accountancy Firm (revenue over $500 million); Deloitte Australia was named the Australian Tax Disputes Firm of the Year for 2011 at the International Tax Review, Asia Tax Awards; 2011 Australian Business Award for Product Innovation for our unique smartphone platform, Bamboo®. AUSTRALIA–JAPAN | 93
4 Partners in international engagement
Partners in international engagement
Asia is home to the world’s two most populous nations, the country with the largest Muslim population (Indonesia), the world’s second and third biggest economies, and the largest democracy in the word. By 2020, Asia will account for around 45 per cent of global GDP and one-third of global trade. It will be home to 56 per cent of the world’s eight billion people. These rapid changes are indicative of the world’s changing strategic balance, transcending mere economic and demographic changes. This is the Asia-Pacific century. However, the stability of our region is subject to a range of risk factors: climate change, financial crises, weapons proliferation, transnational crime, environmental degradation, energy security, health pandemics, poverty and inequality. In each of these domains, Japan is a key strategic, security and economic partner. The list of areas in which Australia and Japan co-operate—both within the region and globally—is extensive. In 2008, Australia and Japan agreed to a joint statement on comprehensive strategic, security and economic partnership. In the same year, the nations signed a joint statement on nuclear non-proliferation and disarmament and worked together to establish the International Commission on Nuclear Non-Proliferation and Disarmament. In 2009, the nations expanded their joint declaration on security co-operation. In 2010, they signed the Australia-Japan Acquisition and Cross-Servicing Agreement—the only such
Osaka Business Park's attractions
agreement that Japan has with any country other than the United States.
include its high-rise convention
Australia participates in a trilateral strategic dialogue with Japan and the United States.
centre and its river water bus.
Australia and Japan hold regular joint meetings of foreign and defence ministers, the so-called
© Osaka Convention & Tourism
“2+2” meetings. The level of co-operation in security and strategic affairs is continuing to rise.
Bureau/©JNTO
96 | Australia—Japan
Mutual support and respect Japan is Australia’s most important security partner in Asia. Many in Japan regard Australia as Japan’s second most important partner after the United States. Australia’s co-operation with Japan in the Asia-Pacific region is strengthened by the fact that both countries are allies of the United States. The two countries work together on the ground as well. They support each other in times of trouble: Australia’s assistance in March 2011 after the Tohoku earthquake and tsunami was second only to that of the United States, with a 76-person search and rescue team and defence operation-response officers providing much-needed support in the devastated region. Australia sent all of its operational RAAF C-17A heavy-lift aircraft, delivering more than 400 tonnes of supplies and equipment to some of the most severely affected areas. It also sent two of the C17 aircraft to a US base Following the 2011 Tohoku earthquake, Australia used all its operational RAAF C-17A heavylift aircraft to ship equipment and supplies to affected areas in Japan.
in Japan to move essential fire-fighting equipment to Fukushima. Japan and Australia have worked together in third countries like Iraq, where members of their armed forces provided security for Japanese engineers. In the Pakistan floods, the ADF provided airlift capacity for Japanese medical teams. At a more local level, people stepped in to assist those in need after the destructive Tohoku earthquake and tsunami. In August 2011, Meat & Livestock Australia delivered hay to Tohoku farmers for their cattle in Soma, in the Fukushima prefecture. Earlier, on 14 May, Meat & Livestock Australia launched its Together with Japan program to help the Japanese beef industry rebuild after the earthquake.
98 | Australia—Japan
The event centred on a celebrity BBQ, which raised more than $A250,000 in assistance. The Japan Centre, School of Culture, History and Language, College of Asia and the Pacific, ANU, in conjunction with the ANU Japan Club and the ANU Kabuki Club, held a second-hand book sale as a fundraising activity for those affected by the disaster. On 24 June 2011, the Isabella a cappella choir group from Australia’s Southern Cross University Choir performed for the residents of Futaba, Fukushima, at an evacuation centre in Saitama Prefecture. On 24 June 2011, the staff of the Tokyo Embassy played a goodwill 20/20 cricket match and helped raise an estimated ¥700,000 for the victims of devastation in Akishima City, in Tokyo’s west. More information on the initiatives of Australians in helping those affected by the devastation is available from the website http://australiahelps.gov.au/japan/
Above top: Prime paddocks in Boorowa, New South Wales. Photo: Holly Bradford. Above: Inquisitive Australian lambs
Operation Pacific Assist In March 2011, the Australian Defence Force (ADF) launched Operation Pacific Assist to help in disaster relief following the Tohoku earthquake and tsunami. An integral part of the operation was the C-17A Globemaster III, a large Royal Australian Air Force aircraft used to airlift personnel and cargo. The C-17As are used to support Australian and Coalition forces in the Middle East, and have proven themselves equally suited to regional disaster relief operations. Australia and America were the only two countries that provided military airlift assistance within Japan. Trusted friends | 99
Supplies being unloaded in Japan following delivery from an RAAF base in Australia. Photo: LACW Jessica Smith Š Commonwealth of Australia
100 | Australia—Japan
Operation Pacific Assist was the ADF component of a
world (OECD, 2009), and the second largest in terms of
joint effort between the ADF and Emergency Management
total disbursements, including the value of loans. Japan’s
Australia (EMA), whose mission was to provide an
total aid disbursements in 2007 amounted to $US7.7 billion.
emergency services task force to help the victims of the
Asia is consistently designated as a priority region for
disaster. The task force brought together the New South
Japanese development assistance.
Wales police, fire and ambulance services, Australian Capital
Japan supports infrastructure and human resource
Territory fire fighters and search and rescue dog handlers
development in the Australia-Japan region through official
from Queensland. The ADF provided a strategic airlift for
development assistance (ODA), and facilitates private sector
the task force to Yokota Airbase, Japan, arriving in the early
investment and trade through large-scale project lending.
hours of Monday 14 March, three days after the disaster.
More recently, these economic co-operation relationships
The C-17A remained in Japan for two weeks and undertook
began being institutionalised as economic partnership
23 sorties, conducting intra-country airlifts of vital stores and
arrangements, and many take the form of public-private
equipment assisting in the humanitarian effort, including
partnerships (PPPs).
food and bottled water. During its deployment, the C-17A
Peter Drysdale, of the Crawford School of Economics
and its crew moved more than 450 tonnes of cargo, including
and Government, observes that Australian business is
41 vehicles and 135 passengers.
very experienced in these arrangements and that there is
Two additional C-17As undertook a mission from Australia
considerable opportunity for Australian consultant groups to
to Japan carrying a remotely operated water cannon system
participate in Japanese development projects, such as India’s
to assist with containment operations at the Fukushima
Delhi-Mumbai Industrial Corridor.
nuclear power plant.
Drysdale says, ”Given the focus of Japan’s aid program on
The C-17A aircrew, normally stationed with the No. 36
Asia, and Japan’s recognition of Australian experience in the
Squadron in Queensland, performed well in negotiating the
Pacific as well as Asia, Australia’s share of these contracts and
unfamiliar, icy conditions in northern Japan, and limited
its participation in development studies consultancies could
infrastructure and services, such as air traffic control.
be significantly increased.” The conventional interpretation of Article 9 of Japan’s
Promoting stability
pacifist constitution imposes severe restrictions on the
Elsewhere in the region Japan and Australia work together
overseas deployment of its Self-Defence Forces and their
to promote stability and economic development in countries
capacity to co-operate with other military forces beyond the
in the Pacific. Japan makes a strong contribution to the
scope of UN-mandated operations. This restriction frequently
development of these island states, both as a significant aid
results in requests from the Japanese government for the
donor and as a regional partner with Australia in support
Australian Defence Force to supplement the humanitarian
of good governance. Japan and Australia work in unison
work of the Self-Defence Forces by providing protection or
to promote the nation building and development efforts
logistical support.
of countries such as the Solomon Islands and East Timor. In absolute terms, Japan is the fifth-largest aid donor in the
For example, when Japan sent a contingent of soldiers to al-Muthanna in southern Iraq in 2003 to engage in a series Trusted friends | 101
An F/A-18 Hornet providing security for Japanese soldiers sent to Iraq in 2003 to help reduce the threat Iraq posed to the Middle East. Photo: Ronnie Bell, RAAF.
of humanitarian and reconstruction projects, the Australian
he has since observed, the Japanese saw Australia as a truly
Defence Force was called upon to provide the security.
valued security partner.
Australian forces first deployed to Iraq in 2003 as part of
In 2006, Alexander Downer commented, “Both Australia
the international coalition efforts to reduce Iraq’s potential
and Japan have sophisticated defence forces. I think they can
threat to the region. The role developed into Operation
play an effective role in the region, and co-operation might be
Catalyst to create a secure and stable environment in Iraq
in relief or emergencies.” He predicted—accurately—that the
and to assist national recovery programs. A naval frigate and
two forces would become more familiar in working together
naval training team, RAAF C130 transport and P3 Orion
through joint exercises and training. He was keen for the
surveillance aircraft, defence civilian advisors from the Iraqi
two forces to build upon their humanitarian co-operation in
Ministry of Defence, and the security detachment (SECDET)
Aceh and earlier peacekeeping roles in East Timor. On the
provided protection. More than 20,000 Australian Defence
question of joint exercises in Australia, he was keen to avoid
Force personnel served in Iraq as part of Operation Catalyst
the aggressive military training the ADF undertook with the
between 2003 and 2009.
US military. The experience at al-Muthanna was the impetus
The historic deployment of the Self-Defence Forces was a success—there were no Japanese fatalities.
for Alexander Downer to work towards the 2007 strategic alliance with Japan. Australia’s military spending totals $US20 billion, the
Pivotal Iraqi commitment
world’s thirteenth-largest in absolute terms, accounting for
Australia’s former foreign minister Alexander Downer
1.5 per cent of the world’s military spending. At $US51.4
argues that the significance of Australia’s commitment in
billion, Japan’s military budget is the world’s sixth largest,
al-Muthanna should not be underestimated. He says that
accounting for 3.3 per cent of the world’s military spending.
the nation was asked to provide security and would not have
As a percentage of GDP, Australia’s military spending, at 1.9
made the commitment if not for its close relationship with
per cent, is about double that of Japan (1.0 per cent).
Japan. Downer believed that the Iraqi commitment was pivotal in strengthening bilateral relations. From that point, 102 | Australia—Japan
For many years, there have been moves to revise Japan’s constitution to enable the Self-Defence Forces to be
Prime Minister Julia Gillard talking to Australian Defence Force personnel at Tarin Kot, a multinational base in Afghanistan.
recognised as a regular military. With a view to achieving this
involvement in Cambodia—accompanied by lengthy and
objective, former prime minister Shinzo Abe, for example,
widespread debate amongst Japan’s constitutional lawyers,
upgraded the status of the Defence Agency to that of a fully-
analysts and members of the public.
fledged department with its own minister in cabinet. But
In March 1992, the United Nations Transitional Authority
these efforts have generally had a muted overall effect. While
was established under the 1991 Paris Agreement to supervise
there is some ambiguity about the details of implementing
a ceasefire and general election in Cambodia. Australian
the pacifist provisions (for instance, the constitution allows
diplomacy from 1989 to 1991 assisted the successful
the manufacture of computer components, but would
conclusion of the agreements.
prohibit their subsequent use in a missile guidance system), the spirit of Japan’s pacifist constitution has proven resilient.
The Australian Defence Force contingent consisted of 502 personnel, comprising the 488-member Force Communications Unit and 14 staff members working at
Joint battle against tsunami
the transitional authority’s various 60 locations throughout
Another sphere of co-operation between Australia and
Cambodia, alongside members of Japan’s Self-Defence Forces.
Japan that established a precedent for closer ties was the
Today, Japan remains Cambodia’s top donor country,
2004 Indian Ocean tsunami. In the wake of the disaster,
having provided $US1.2 billion in official development
Australia and Japan joined forces with India and the United
assistance (ODA) since 1992. Much of this money has gone
States to form a core group of donor states to conduct
to education and landmine eradication.
rescue operations, co-ordinate aid efforts and streamline the
Co-operation between the Australia and Japan was evident
provision of immediate assistance. These efforts paved the
again in 1999, when, in response to a request from the
way for further systematic co-ordination in subsequent years.
United Nations, Japan dispatched civilian police officers to
After World War II, Japan was reluctant to assume
the UN mission in East Timor (UNAMET). The mission was
direct involvement in regional security affairs. However,
established on 11 June 1999, in accordance with Security
1992 saw an historic shift away from this position, with
Council Resolution 1246, comprising political, electoral,
Japan deploying troops in support of the United Nations’
civilian police, military liaison, information, administrative/ Trusted friends | 103
Above: HMAS Warramunga returning to Australia
financial and human rights components. After the Japanese officers
after completing exercises off Hawaii with the Japan
underwent training in Darwin, they travelled to Dili to support local police.
Maritime Self-Defence Force destroyer, JS Akebono.
The deployment was part of Japan’s commitment to establishing peace in East Timor, and came in addition to the dispatch of political affairs officers, a
Above centre: Prime Minister Gillard discussing
$US10.11 million contribution to the UN Trust Fund, and assistance in kind
Australia’s contribution to Afghanistan with its president,
of 2000 items of electrical equipment.
Hamid Karzai, at the Presidential Palace in Kabul. All rights reserved by Julia Gillard.
In response to the unprecedented floods that ravaged Pakistan in 2010, affecting 20 million people, Japan sent emergency supplies from its regional warehouse in Singapore, and followed it up with further supplies of tents and water purifiers as the catastrophe became increasingly protracted. Japan also dispatched an emergency medical team, as well as a task force comprising six helicopters and 200 staff members to assist in the relief effort. Supporting Japan in relief efforts was the ADF, who provided two RAAF C-17A Globemaster bulk airlift aircraft from the Amberley base west of Brisbane. Using the C-17As, the ADF also delivered $US1 million worth of emergency relief, including tents, tarpaulins, plastic sheeting, generators, water purification equipment and water containers to help more than 10,000 affected families.
Post World Trade Centre 2001 Following the attacks on the World Trade Centre in 2001, Japan and Australia have worked together as part of the United States multinational force against the Taliban in Afghanistan to improve security in the region. Immediately after the attacks, Japan deployed its Maritime Self-Defence 104 | Australia—Japan
Force vessels in the Indian Ocean under its Anti-Terrorism Special Measures Law to refuel naval ships, while its Air Self-Defence Force airlifted supplies in support of the manoeuvres. In January 2002, after the fall of the Taliban, Japan held the International Conference on Reconstruction Assistance to Afghanistan. The conference authorised the provision of $US1.2 billion in official development assistance (ODA) to Afghanistan as well as the support of the Maritime Self-Defence Force in the Maritime Interdiction Operation to prevent the flow of terrorists and arms in the Indian Ocean. As part of its contribution to Afghanistan’s
Above: HMAS Tarakan beaching at Lautaim, East Timor,
reconstruction, Australia dispatched 1550 personnel under Operation Slipper
to collect Pacific Partnership 2010 personnel who had
as part of a peace-enforcement exercise and has maintained a continuous
been conducting medical, dental and veterinary clinincs
maritime presence in the form of the ANZAC class frigate, HMAS Parramatta.
in the region. Photo: © Royal Australian Navy
In addition, the ADF launched Operation Palate II as its contribution to the United Nations Assistance Mission to Afghanistan (UNAMA). UNAMA
Top right: Australian Army Captain Sarah Vesey talks
is a political mission established in March 2002 under UN Security Council
to Afghan children at the women’s hospital in Tarin Kot,
Resolution 1401 to promote reconciliation and rapprochement, and manage
Afghanistan. Photo: © Aust Defence Force
humanitarian relief, recovery, and reconstruction in Afghanistan Australia’s military contribution to Afghanistan is part of the government’s comprehensive approach to supporting global security and Australian national security by countering terrorism and supporting efforts to prevent Afghanistan from being used as a safe-haven and training ground for terrorism. In a further strengthening of the military allegiance between Australia and Japan, Japan’s former foreign minister, Seiji Maehara, on 4 March 2011, Trusted friends | 105
Prime Minister Gillard meeting with the Emperor of
issued a formal apology to Australian prisoners of war for their suffering at
Japan at the Imperial Palace, Japan.
the hands of the Japanese military in World War II. He also announced that
All rights reserved by Julia Gillard.
Japan would return to Australia the historical records of the former POWs that Japan has held since the War. Japan originally offered the war records to Australia in 1953, but Australia chose not to take up the offer at the time, believing that they did not contain any new information.
Key bilateral agreements and joint programs On 16 June 1976, Australia’s former prime minister, Malcolm Fraser, and Japanese prime minister of the time, Takeo Miki, signed an agreement that, in scope and purpose, went far beyond anything that either side had ever signed. It was the Basic Treaty of Friendship and Co-operation between Australia and Japan. It came into force on 21 August 1977. Built on the foundation of strong and expanding trade ties, the treaty drew together all the threads of the longstanding relationship with a focus on the two countries’ common and complementary areas. It stands as a multifaceted relationship between countries with different political and cultural heritages. The treaty arose out of a desire to broaden Australia-Japan relations beyond their natural economic partnership. Negotiations on a treaty to extend and strengthen the relationship began with the advent of the Whitlam government in 1973. Over the next three years, Australian and Japanese officials worked closely to draw up an equitable and mutually advantageous agreement that broadened and enhanced ties in political, economic, trade, commercial, social, cultural and other fields. 106 | Australia—Japan
The treaty was prepared in the face of great political change in the Asia-
Prime Minister Gillard inspecting tsunami damage
Pacific region, underscored by an acceptance on the part of Australia and
in Minami Sanrriku, Japan. All rights reserved by
Japan of the need to strengthen their natural partnership by diversifying
Julia Gillard,
beyond the trade and economic policies that had been operating so well. It underpinned the success and importance of the 2006 Australia–Japan Year of Exchange, initiated by then prime ministers Howard and Koizumi in 2003 to mark the 30th anniversary of the signing of the Basic Treaty. In recognition of the importance of the Australia-Japan relationship (one of the most successful bilateral relationships in the Asia-Pacific region), the prime ministers of both nations embarked on a process to strengthen the relationship further to meet the challenges of the 21st century. In line with this objective, Sydney hosted the Australia-Japan Conference for the 21st Century in April 2001, inviting leaders from various sectors. The attendees engaged in a series of productive discussions on the future bilateral partnership in such areas as the strategic and political relationship, trade and economic linkages, culture and social issues and science/technology. The fruits of the discussions were the publication of the Sydney Declaration for Australia-Japan Creative Partnership, which gave recommendations concerning new initiatives for co-operation. In May 2002, former prime minister John Howard and his visiting Japanese counterpart Junichiro Koizumi agreed on specific co-operation in a wide range of areas. One outcome of the partnership has been the Australia-Japan Joint Statement on Co-operation to Combat International Terrorism, delivered by John Howard during his visit to Japan in July 2003. Trusted friends | 107
Earlier, when then prime minister Hashimoto visited Australia in April 1997, the two countries agreed to hold a prime ministers' meeting every year so that active bilateral talks could be held at a number of levels. The first Australia-Japan Conference was held in Sydney on 29–30 April 1997. The most recent event was held in Brisbane on 4 November 2011. In March 2006, Japan, the United States and Australia inaugurated a three-way security dialogue of foreign ministers, known as the Australia-Japan-United States Trilateral Strategic Dialogue. The initiative was announced in 2005 as a means of funnelling Australia and Japan’s Top left: Australian Minister for Defence, Stephen Smith.
expanding roles as independent regional and international
Above: Able Seaman Aviation Technician Aircraft, Vanessa Roedel,
security players into a more cohesive mechanism. This
takes a break from helicopter maintenance on the flight deck of HMAS
mechanism has enabled Australia and Japan to co-ordinate
Warramunga. © Australian Defence Force
their dialogue and policy planning with their American ally. The dialogue, which some commentators have referred to as “an axis of democracy”, is believed to have caused some consternation in China, although Australia and Japan have downplayed China’s concerns, referring to the talks as strictly ministerial-level meetings. The purpose of the dialogue is to be a catalyst for extending the traditional bilateral security arrangements to include more co-operative multilateral security diplomacy, and to build on
108 | Australia—Japan
successful instances of non-traditional security politics, such as peacekeeping and disaster
Above centre: Australian Wing
relief, to co-ordinate future responses to natural disasters and other non-military threats.
Group Captain Geoff Harland (centre) answering questions from
Joint Declaration on Security Co-operation
local and Japanese media during
In March 2007, Japan’s then minister for foreign affairs Taro Aso and former Australian
an Australian/Japanese/US defence
prime minister John Howard signed the historic Joint Declaration on Security Co-operation,
exercise in Guam.
the first such accord between Japan and any country other than the United States. The declaration provides a framework for the two countries to work together on common
Above left: Members of Australia's
global and regional security challenges. As Japan remains Australia's most important
No.2 Airfield Defence Squadron
export market, the declaration places it next to the United States as one of Australia's most
protect a C-130J Hercules aircraft
important security partners.
during training in north Queensland,
The declaration is based on a common recognition by Australia and Japan that international terrorism cannot be fought solely with military means. Both countries realise that they need to
Australia. Photos by David Gibbs Š Commonwealth of Australia
collectively pursue a more broad-based strategy that addresses security as well as governance, economic development and reconciliation. Against this backdrop, the declaration provides for wide-ranging security provisions relating to border security, the fight against transnational crime (including trafficking in illegal narcotics and precursors), people smuggling and trafficking, counterfeiting currency and arms smuggling, and counter-terrorism activities. The activities also include peacekeeping operations and activities to prevent the proliferation of weapons of mass destruction and their means of delivery. The two parties will exchange strategic assessments and related information and participate in maritime and aviation security. Humanitarian relief operations, including disaster relief, also fall under the agreement, as does contingency planning, including Trusted friends | 109
planning for pandemics. Japan’s prime minister at the
The 2007 Security Declaration marks a broader phase in
time, Shinzo Abe, told a joint press conference after the
the Australia-Japan relationship and comes after 50 years
signing, “Prime Minister Howard and I agreed that the joint
of highly profitable trade ties. The declaration created a
declaration offers a framework for concretely stepping up
much closer relationship in defence, and formalised the
security ties between our two countries.” Australia’s John
increasing number of co-operative initiatives in which the
Howard stated prior to the signing, “Australia has no better
two countries were engaged.
friend or more reliable partner within the Asia-Pacific region than Japan. We are great Pacific democracies.” The declaration commits both sides to a range of
Nuclear non-proliferation and disarmament In 2008, Japan and Australia established the International
undertakings, namely, intelligence sharing, joint defence
Commission on Nuclear Non-Proliferation and Disarmament.
force exercises, law enforcement, anti-terrorism measures,
The commission was co-chaired by Yoriko Kawaguchi,
disaster relief, foreign and defence ministerial dialogue, and
a former environment minister and foreign minister, and
support for Japan’s permanent membership of the United
Gareth Evans, a former foreign minister, both of whom
Nations Security Council. The foreign and defence ministerial
brought extensive experience to the commission. It held its
dialogue has been formalised as the joint meetings of
first meeting in Sydney in October 2008 and received strong
Australia’s and Japan’s foreign and defence ministers, the
international support. The objective of the commission is
so-called “2+2” meetings which strengthen the trilateral
to reinvigorate global efforts to prevent the proliferation of
relationship with America. The declaration paved the way
nuclear weapons and to seek a recommitment to the ultimate
for further joint military interaction between Japanese and
goal of a nuclear weapon-free world.
Australian forces similar to that undertaken in Iraq and in
The report prepared by the commission was submitted
Sumatra, Indonesia, after the 2004 Indian Ocean tsunami.
to then prime ministers Yukio Hatoyama and Kevin Rudd
Commenced during the 1980s under the Hawke government,
in December 2009 in the presence of the commission’s co-
it provided for Australia’s greater enmeshment with Asia by
chairs, Gareth Evans and Yoriko Kawaguchi.
cultivating relationships with the major players in the region and multinational organisations such as ASEAN and APEC. The declaration also enabled Japan to adopt a new
Australia and Japan believe that the elimination of nuclear threats is a matter of necessity. The world’s 23,000 nuclear weapons—many still deployed on high alert—can destroy life
assertiveness in its international relations, breaking away
on earth many times over. That the horror of Hiroshima and
from years of Yoshida-style foreign policy doctrines, where
Nagasaki has not been repeated owes more to luck than to
its diplomatic activities were so often conducted in response
good policy management.
to foreign pressure. Despite the signing of the declaration, the United States
Despite the new leadership in the United States and Russia, the policy challenges are immense. It is necessary
will continue to be the principal source of both Japan’s and
to persuade every state with nuclear weapons to give them
Australia’s military security. Japan hosts 40,000 US troops at
up, and it is necessary to ensure that every state without
various bases throughout the country and Australia is home
nuclear weapons does not want them or is not able to
to vital US intelligence facilities at Pine Gap and elsewhere.
acquire them. And it is necessary to ensure that the peaceful
110 | Australia—Japan
The Hiroshima Peace Memorial Park honours all those killed by the atomic bombing of the city on 6 August 1945. Š JNTO
Trusted friends | 111
World leaders enjoying a fireworks
uses of nuclear energy are free of security risk. This report, submitted to former prime
display at the Sydney Opera House
ministers Yukio Hatoyama and Kevin Rudd, was the work of an independent commission
during an APEC conference.
of global experts sponsored by Australia and Japan. Its purpose was to guide global
Photo by Corporal Chris Moore
policymakers through the maze toward non-proliferation and disarmament. It maps both
© Australian Defence Force
the opportunities and obstacles, and fashions the recommendations into a clear set of short-, medium- and long-term agenda activities. On 20 May 2010, Australia’s then defence minister, John Faulkner, visiting Japan for security talks, signed the Australia-Japan Acquisition and Cross-Servicing Agreement (ACSA) with his Japanese counterpart, Toshimi Kitazawa. The accord facilitates the reciprocal provision of supplies and services between the SelfDefence Forces of Japan and the Australian Defence Force. It is Japan's second cross-service agreement, following a similar arrangement with the United States signed in 2004. Australia’s former foreign minister, Stephen Smith, said the signing of the agreement marked a new beginning for the Australia-Japan security relationship. He said it would usher in “a new phase of more frequent, practical and ambitious bilateral security co-operation between Australia and Japan". He said the agreement meant that Australia and Japan could provide better disaster assistance, for example, through Australian C-17A aircraft providing airlift support to transport Japanese personnel to disaster zones. He was optimistic that the accord would provide new opportunities to support efforts in international peacekeeping operations. Reflecting the substantial strengthening of bilateral defence and security ties between Australia and Japan, Stephen Smith and John Faulkner visited Japan in May 2010 for the third “2+2” joint meetings of foreign and defence ministers. The consultations are one of three such conferences Australia has worldwide. The others are with the United States and
112 | Australia—Japan
the United Kingdom. Japan’s former minister for foreign affairs, Katsuya Okada, and former minister for defence, Toshimi Kitazawa, represented the Japanese side in the meetings. The occasion was marked by the signing of an agreement concerning the reciprocal provision of supplies and services between the Japan Self-Defence Forces and the Australian Defence Force. Stephen Smith believes that Australia and Japan’s comprehensive economic, security and strategic partnership—built on common goals and values—represents an important contribution to peace, security and stability in the Asia-Pacific region. Meetings such as this are a good opportunity for Australia’s Foreign Minister to meet with other Japanese ministers to discuss international, regional and bilateral developments. On this occasion, Stephen smith discussed the bilateral Free Trade Agreement, APEC, the WTO and the G20. John Faulkner also met with Toshimi Kitazawa to discuss progress in bilateral defence engagements, covering areas such as logistics co-operation, exercises and training, peacekeeping and disaster relief responses. Australia and Japan share a multilateral approach to diplomacy that is aimed at enhancing stability in the Asia-Pacific region. Both countries contribute actively and constructively to regional bodies, such as APEC, the ASEAN Regional Forum and the East Asia Summit.
Regional economic reform APEC, established over 20 years ago through the active engagement of Australian and Japanese diplomacy, is a clear example of how Australia and Japan work together to establish a regional architecture that is essential for peace and prosperity. APEC has evolved into a powerful and influential economic forum, representing countries that, combined, account for over half of the world’s gross domestic product. Former Australian Trusted friends | 113
The Japanese Imperial Palace (centre) in Central Tokyo. © Y.Shimizu/© JNTO
114 | Australia—Japan
prime minister Bob Hawke first floated the idea of APEC
implement the Japan-Australia Joint Declaration
during a speech in Seoul in January 1989. Later that
on Security Co-operation and the Enhancement of
year, representatives from 12 Asia-Pacific nations met in
Co-operation on Climate Change and Energy Security.
Canberra to establish APEC. The founding members were Australia, Brunei Darussalam, Canada, Indonesia, Japan,
ASEAN Regional Forum
Korea, Malaysia, New Zealand, the Philippines, Singapore,
Founded in 1994, the ASEAN Regional Forum (ARF)
Thailand and the United States.
has become a key forum for security dialogue in Asia. It
China, Hong Kong and Chinese Taipei joined in 1991.
complements a range of bilateral alliances and dialogues
Mexico and Papua New Guinea followed in 1993, with Chile
in the Asia-Pacific region and provides a setting in which
joining in 1994. In 1998, Peru, Russia and Vietnam joined,
members can discuss current regional security issues
taking the membership to 21.
and develop co-operative measures to enhance peace and
Between 1989 and 1992, APEC met as an informal, seniorofficial and ministerial-level conference. In 1993, former
security in the region. The forum comprises 27 countries—the 10 ASEAN
United States president Bill Clinton called the first annual
member states (Brunei, Burma, Cambodia, Indonesia, Laos,
APEC Economic Leaders' Meeting.
Malaysia, Philippines, Singapore, Thailand and Vietnam) the
Membership of APEC has always been restricted. However,
10 ASEAN dialogue partners (Australia, Canada, China, the
it has been increased at various times in APEC’s history. Since
EU, India, Japan, New Zealand, South Korea, Russia and the
the most recent intake, 12 countries have indicated their
United States), one ASEAN observer (PNG), North Korea,
desire to participate, including India, Mongolia, Pakistan,
Mongolia, Pakistan, East Timor, Bangladesh and Sri Lanka.
Laos, Bangladesh, Costa Rica, Colombia, Panama, Ecuador
The ARF is driven by consensus and avoids institutionalism
and Guam. India, while it does not border the Pacific, was
as far as possible. In its first 17 years, ARF focused on
invited to attend the 2011 APEC meeting as an observer.
confidence-building measures, and it has made good progress
As the leading Asia-Pacific economic forum, APEC’s
toward building a sense of strategic community. Efforts
objective is to support sustainable economic growth and
to develop tools for preventive diplomacy and conflict
prosperity in the Asia-Pacific region. It says its mission is
management are underway.
“to build a dynamic and harmonious Asia-Pacific community
The ARF Ministerial Meeting of July 2009 endorsed a
by championing free and open trade and investment,
vision statement to provide a roadmap for the ARF up to
promoting and accelerating regional economic integration,
2020. The ARF subsequently adopted the Hanoi Plan of
encouraging economic and technical co-operation, enhancing
Action to implement the vision statement.
human security, and facilitating a favourable and sustainable business environment. Our initiatives turn policy goals into
East Asia Summit
concrete results and agreements into tangible benefits.”
The East Asia Summit (EAS) is a regional leaders' forum
During the APEC Leaders' Meeting in September 2007,
for strategic dialogue and co-operation on key challenges
the Japan-Australia Prime Ministers' Meeting was held,
facing the East Asian region. The EAS is a significant regional
and the two prime ministers agreed to an action plan to
grouping with an important role in advancing closer regional Trusted friends | 115
Above: Sightseeing at Royal Botanic Gardens in
integration and co-operation at a time of particular dynamism in East Asia.
Sydney. Photo by James Pipino © Destination NSW
Australia and Japan participated as founding members in the inaugural EAS held in Kuala Lumpur on 14 December 2005.
Above right: Sydney Harbour, Sydney Harbour Bridge
The EAS comprises the 10 ASEAN countries (Brunei, Cambodia,
and the Sydney central business district. Photo by
Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand,
Andrew Gregory © Destination NSW
Vietnam), Australia, China, India, Japan, New Zealand, the Republic of Korea, the United States and Russia. The 18 EAS member countries together represent 55 per cent of the world's population, 55 per cent of global GDP, and receive more than 74 per cent of Australia's total exports. The centrepiece of the EAS year is an annual leaders' summit, usually held together with the annual ASEAN summit. At the sixth EAS, held in Bali in November 2011, Australia’s Prime Minister announced a number of new initiatives to contribute to regional development and integration. These include $A24 million to combat infectious diseases, $A1 million to support a disaster co-ordination secretariat in the ASEAN Humanitarian Assistance Centre in Jakarta, $A8 million for the World Food Program to improve emergency preparedness in the region, and the hosting of two seminars exploring how East Asian cities can become more sustainable and adapt to climate change. Australia provided essential support for Japan’s successful bid for a non-permanent seat on the United Nations Security Council in 2009, and will continue to support a permanent seat for Japan on the reformed Security Council. Australia is seeking election to the Security Council as a non-permanent member for the 2013–2014 term, and looks forward to Japan’s support for its efforts.
116 | Australia—Japan
At the fifth Australia-Japan Conference in Tokyo, 19 November 2008, the participants agreed that climate change presents real and significant global challenges that require a co-ordinated global response, and that Australia and Japan should work closely and actively together to help shape that response. It was noted that decisions by both governments on emissions reduction will present both opportunities and challenges, and will lead to structural reform in both economies. The attendees agreed on the vital role that new technology must play in responses to climate change and urged both governments to collaborate intensively on efforts to find technological solutions to alleviate the problems it presents. The attendees welcomed Australia’s carbon capture and storage (CCS) initiative and Japan’s proposed sectoral approach as important elements of the global policy response. It was also agreed at the conference that Australia and Japan should continue to build capacity in developing countries to tackle climate change and alleviate its impact, including technological transfer and support. Australia and Japan are natural partners, globally and in the Asia-Pacific
Australian Minister for Trade, Dr Craig Emerson (right), meets Japan’s Minister for Economy, Trade and
region. In a challenging world, both Australia and Japan have strong
Industry, Mr Akihiro Ohata, at the 22nd APEC Ministerial
interests in sustaining an open, prosperous and secure global and
Meeting in Yokohama, Japan.
regional environment.
Trusted friends | 117
BP BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. We are committed to making a real difference in providing the energy the world needs today, and in the changing world of tomorrow. We have major interests in the Japanese and Australian markets. BP divides its activities into an upstream (comprising exploration, development and production divisions), a downstream (comprising the refining and marketing of fuels and lubricants), and an alternative energy business. BP operates across six continents, and its products and services are available in more than 80 countries, providing the energy that a growing population needs to generate progress and prosperity. Our recent projection of energy trends, BP Energy Outlook 2030, indicates in its ‘base case’ that primary energy use could grow by nearly 40 per cent over the next 20 years, with more than 90 per cent of demand growth coming from emerging economies. Whatever precise trajectory demand takes, all forms of energy will be required to meet rising demand, with fossil fuels remaining an essential part of the energy mix for decades. In the upstream energy business, our strategy is to grow long-term value by continuing to build a portfolio of enduring positions in the world’s key hydrocarbon basins, focused on deepwater, gas and giant fields. We explore for oil and gas with the aim of commercially developing and producing it. We also manage crude oil and natural gas pipelines as well as being major participants in liquefied natural gas (LNG) plants in Trinidad and Tobago, Indonesia and Australia – all of which supply LNG to Japan. For the downstream energy business, our strategic focus is on holding a portfolio of quality, integrated, efficient positions and accessing available market growth in emerging markets. We refine crude oil into usable products, including high quality gasoline and diesel as well as some of the chemicals used in everyday items. And in alternative energy, our focus is on low-carbon businesses and future growth options that we believe have the potential to be a material source of low-carbon energy and are aligned with BP’s core capabilities, such as biofuels for example. The North West Shelf Venture's onshore gas plant in Karratha manufactures LNG which is exported to Japan.
118 | Australia — Japan
BP in Australia
BP has been supplying Japan with
In Australia, BP’s upstream businesses include the North West Shelf Venture, which has been
LNG for more than two decades via
supplying liquefied natural gas (LNG) to Japan for more than 20 years. We are developing
LNG tankers.
other gas projects off the coast of Western Australia in the Browse Basin and in the Greater Gorgon area. And we have recently commenced exploration for oil and gas in the Great Australian Bight, off the continent’s southern coastline. BP also operates a downstream business, including refineries in Western Australia and Queensland, as well as a network of terminals and service stations which provide a secure supply of quality fuels to Australian motorists and businesses. BP in Japan BP Japan KK has worked in Japan for almost half a century. BP has been involved in about half of the LNG projects supplying Japan, the world's largest market. In addition to LNG sales, our work here involves selling automotive and industrial lubricants, as well as oil products such as marine fuel and bulk chemicals. BP and Castrol lubricants have an excellent reputation and a strong position in the Japanese market. BP Facts and figures (source www.bp.com) Number of employees
79,700 (at 31 Dec 2010)
Proved reserves
18,071 million barrels of oil equivalent
Retail sites
22,100
Upstream
Active in 29 countries
Refineries (wholly or partly owned)
16
Refining throughput
2426 thousand barrels per day (year 2010)
AUSTRALIA–JAPAN | 119
About BHP Billiton BHP Billiton is a leading global resources company. We create long-term shareholder value through the discovery, acquisition, development and marketing of natural resources. We are among the world’s top producers of major commodities, including aluminium, energy coal, metallurgical coal, copper, manganese, iron ore, uranium, nickel, silver and titanium minerals, and have substantial interests in oil and gas. Our strategy is clear and remains unchanged since 2001. We focus on large, long-life, low-cost, expandable, upstream assets, diversified by commodity, geography and market. Our disciplined approach to capital deployment has enabled BHP Billiton to invest in the expansion of high-quality assets and further diversify our portfolio. We are committed to the highest level of governance and strive to foster a culture that values and rewards exemplary ethical standards, personal and corporate integrity and respect for others. The Board governs the Group in a manner consistent with our long stated business strategy and commitment to a transparent and high-quality governance system. Paramount to the way we operate is growing our business safely, in an environmentally sound manner, and in a way that demonstrates our unqualified commitment to working with integrity. We believe we can be a business that does not suffer serious injuries, illnesses and fatalities. The only way to achieve a steep reduction in injuries and eliminate fatalities is through strong, accountable leadership that will focus on identifying hazards, implementing appropriate controls and the ongoing measurement of control effectiveness. Our operations are diversified by commodity and geography, which means we are part of many local communities. We take the responsibility of managing our environmental and community impact very seriously. Across our business, our goal is to minimise negative social impacts while maximising the opportunities and benefits that the company’s presence brings to each community in which we operate. Our community investment is driven by our desire to ensure we make a positive contribution and improve the quality of life of the people in these communities.
120 | Australia — Japan
BHP Billiton facility at Port Headland and shipments of Iron Ore to Port Hedland, 426 kilometres by rail.
Mount Whaleback mine is the largest open cut iron ore mine in the world, with a pit length of 5.5 kilometres.
We continue to invest in the future and have a deep inventory of growth options. Our operations and investments are designed to ensure that we remain stable in the long term and responsive to market volatility in the short term. Our global operations comprise around 100,000 employees and contractors working in more than 100 locations in over 25 countries. Our people strategy is founded on attracting, developing and retaining talented employees from around the world. We require our leaders to visibly hold themselves and others accountable for living up our company values, as outlined in Our Charter. We have an unwavering belief that by working in a way that is consistent with Our Charter, we will continue to build on our success both today and into the future. BHP Billiton Limited has a primary listing on the Australian Securities Exchange and BHP Billiton Plc has a premium listing on the London Stock Exchange, with a secondary listing on the Johannesburg Stock Exchange. In addition, BHP Billiton has two American Depositary Receipt listings on the New York Stock Exchange. BHP Billiton’s global headquarters are located in Melbourne, Australia. AUSTRALIA–JAPAN | 121
Toll “To be the most successful provider of ‘integrated logistics solutions’ to the Asian region providing customers with global reach.” Toll Express Japan. Toll was founded in 1888 by Albert Toll in Newcastle NSW, hauling coal with horse and cart. It became part of the Peko Wallsend Group in the 1960s, when it transported goods associated with diversified mining and manufacturing activities. In 1986 Toll was sold to a management buyout team led by former Managing Director Paul Little and Toll's first Chairman Peter Rowsthorn, and in 1993 Toll listed on the ASX. Since listing on the ASX, Toll has progressively built and grown its unique logistics model in response to increasing customer demand for a complete end-to-end logistics solution, incorporating the critical components of operational expertise, scale, diversity of services and technology solutions. Today, Toll is one of the 30 top companies listed on ASX, Australia’s largest provider of integrated logistics services, operating in 55 countries, 1,200+ business sites, with 45,000+ employees globally. Back in July 2006, Toll completed acquisition of Sembcorp Logistics Ltd in Singapore, which owned 35% shares of Footwork Express Co., Ltd. in Japan. In October 2009, Toll completed 100% acquisition of Footwork Express Co., Ltd., one of the ten largest road transportation companies in Japan, providing B to B road transportation services, 3PL and warehouse services. As a member of Toll, this Japanese entity has been renamed to Toll Express Japan Co., Ltd. on 30 March, 2012.
Toll is Australia's largest supplier of integrated logistics services. We operate around the world via 1,200 business sites and employ 45,000 people globally.
122 | Australia — Japan
Current Representative Director and CEO Neil Pollington of Toll Express Japan mentioned,
Through Toll Express Japan
“Toll’s massive global experience in providing integrated logistics solutions and operational
Co., Ltd., we provide high quality
expertise enables us to provide a high quality domestic as well as international logistics
services to the market via more
service for businesses in Japan related to a wide range of industries, including; agriculture
than 120 local operation sites.
and fishery, food, chemicals, medical products and pharmaceutical, construction, raw materials and manufactured goods, wholesale and retail, transportation, communication, financial and insurance.” Toll Express Japan has the capability to provide high quality domestic LTL/FTL road express services, 3PL services, SCM consulting services, warehouse services, domestic air and rail forwarding services, custom clearance services, international air express and international air/ocean freight forwarding services. Our services are supported by over 120 local operational sites and Toll’s global network. Toll’s core values encompass: – Brand – People – Safety – Relationships – Innovation – Choice – Integration – Infrastructure – Environment – Community These values help us form a mutually beneficial business partnership with our customers.
AUSTRALIA–JAPAN | 123
5 Culture and Lifestyle
Culture and Lifestyle
When Japan opened its doors to the West after the Meiji Restoration in 1868, Japanese people embraced many Western ideas, including new image-creation techniques such as photography. Older Japanese art forms, in particular ukiyo-e woodblock prints, fell out of fashion, and these traditional images of the “floating world” or “the world of fleeting pleasures” made their way into the West as mere wrapping paper for inexpensive imported products.
Woodblock wonder Europeans, meanwhile, were impressed by the beauty of these images, which became a major source of inspiration for Impressionist, Cubist, and Post-Impressionist artists, including Vincent van Gogh, James Abbott McNeill Whistler, Claude Monet, Edgar Degas, Mary Cassatt and Henri de Toulouse-Lautrec. Today in Japan, there are many books devoted exclusively to this topic, juxtaposing the work of Western painters and the examples of the ukiyo-e from which they are said to have drawn their inspiration. The ukiyo-e prints also influenced early Modernist poetry, strongly affecting the imagery and aesthetic sentiments of Imagist poets such as Ezra Pound, Richard Aldington and Amy Lowell. These woodblock prints trace their origins to the distinctively Japanese artistic sensibility that first emerged in 794 AD, when the Heike Clan achieved political supremacy and ushered in 400 years of peace and tranquillity. This period, known as the Heian Era, saw a marked decline in Chinese influence. The Heian courtiers encouraged sophistication and sensitivity in all things, particularly
The Bicycle Museum Center was opened in 1992 in Sakai, where
with regard to the visual and literary arts. This period of cultural concentration gave rise to
40 per cent of the bicycles in Japan
a characteristically Japanese painting style, the yamato-e, which was used to depict natural
are produced. ©JNTO
126 | Australia—Japan
Trusted friends | 127
Above: Darling Harbour, Sydney, a popular tourist
scenes or illustrate Japanese literature. As a mark of refinement, female
attraction and a venue for celebrations of all sorts.
members of the nobility of this time wrote cursive script with a brush,
Photo: Hamilton Lund, Destination NSW
abbreviating the Chinese characters to create the Hiragana syllabary that forms part of Japan’s writing system today.
Above centre: Brian Eno's artwork projected onto
This period saw the cultivation of waka poetry and other distinctive
the Opera House for the Vivid Sydney Festival 2009.
literary forms, such as the narrative tales (monogatari) and diaries (nikki). In
Photo: Hailton Lund, Destination NSW
architecture, too, Heian achievements have endured: the Heians built Kyoto as the Imperial capital. Despite these achievements, the ukiyo-e prints stand out as the one art form that has significantly influenced Western practitioners. A form of theatre that originated in Kyoto and that has enjoyed success outside Japan is kabuki, which features dialogue about the afterlife and themes from classical Japanese legend, lively music and stunning costumes. In 1976, the Australian National University founded Za Kabuki, which has become the longest running kabuki troupe outside Japan. Directed by Mr Shun Ikeda of the ANU Japan Centre, with a cast and crew consisting mainly of ANU Japanese students, the troupe performs traditional Kabuki plays almost entirely in classical Japanese, with some English translation and adlibs inserted to assist the mainly English-speaking audiences.
Vibrant nightlife Late night pedestrians in any Australian capital city, taking in the flea markets or 24-hour cafÊs and restaurants, or dropping in on one of an array of late-night Asian dessert houses or 24-hour karaoke bars, are getting a taste 128 | Australia—Japan
of the vibrant nightlife that is a feature of many of Japan’s cities and towns. Australia, renowned for early-morning jogs along the beach or though the park followed by breakfast at the neighbourhood café, has been steadily adopting the nocturnal habits of its Asian neighbours. The number of late-night establishments in Australian cities and towns is continuing to proliferate. The influences of Hironobu Sakaguchi’s Final Fantasy, a science-fantasy role-playing video game created 25 years ago, which has expanded to include motion pictures, anime, print media and other merchandise, has become evident in the gelled, spiky hairstyles of many Australian young men. Trendsetters on Australian city streets can be seen with shoulder bags bearing the telltale ‘L’ emblem from Tsugumi Oba’s and Takeshi Obata’s darkly intriguing manga, Death Note. Many young women are adopting the fashion modes of the heroines of popular manga, sporting floral knee-high socks, flared miniskirts and heels with contrived bouffant and collectable models.
Musical influences Japan is increasingly subject to Australian influences, as the spread of our ‘organic’ back-
Hironobu Sakaguchi, creator of the
to-basics music on Japanese music labels attests. Twenty-seven-year-old acoustic/folk/
popular role-playing video game,
rockabilly artist from Melbourne, Justin Carter, who recently appeared at the Okinawa
“Final Fantasy”, one of the lead
MUSIX festival with a follow-up three sell-out concerts in Tokyo, is just one of Australia’s
characters of which is Lightning
talented musicians finding ready acceptance in Japan.
(pictured above).
Trusted friends | 129
The Australian band, John Butler Trio, played to sell-out audiences during a recent series of concerts in Japan.
130 | Australia—Japan
Since forming in 2006, Sydney blues/rock trio, Chase the
at the renowned Summersonic music festival, where they
Sun, have amassed widespread critical acclaim for their soul-
appeared alongside artists such as Gwen Stefani, Bloc Party
tinged song writing, blues sensibilities and powerhouse live
and Black Eyed Peas. During the visit, they signed a record
performances known for their early ZZ Top and Stevie Ray
deal to release a Japanese version of their debut 2006 album,
Vaughan influences. The band took out top honours at the
Stand Up. The outfit has garnered a strong reputation in
Australian Blues Awards in both 2008 and 2011, debuted on
Japan for its critically acclaimed live shows, and it performs
the US Billboard Charts at No. 13 and released two albums in
regularly at the Green Room festival in Yokohama.
Japan through P-Vine Records. The lead track from the album
In 2008, Ohad Rein, better known by his stage name,
You Gotta Go received saturation airplay in the month of
Old Man River, became the most frequently played foreign
its release, which led to the album being signed to Japanese
artist on Japanese radio. The single “La” (from his debut
label, P-Vine Imports.
album, Good Morning) topped both the Japanese local and
The record company also released the group’s follow-up
international charts, and achieved considerable commercial
album, Rednecks & Gentlemen, in December 2009 to critical
success in Europe. After following up his success with many
acclaim.
visits to and concerts in Japan, Ohad has developed many
Also represented in Japan by P-Vine Imports is the veteran
strong personal relationships there. He was immensely
eclectic roots and jam band, the John Butler Trio. With every
shocked at the March 2011 earthquake and tsunami, and he
album since 2004 debuting at No. 1 on the Australian album
set about making 1000 paper cranes and delivering them to
charts, it was the song “Better Than”, from the 2007 album
the affected regions.
Grand National, which launched the band’s international career. The group toured Japan in 2008 on the strength of the
Food and beverages
album, with live television broadcasts, and the band returned
With Japanese demand for saké having reached something of
in 2011 to play sell-out concerts at the Club Quattro in
a plateau in recent times, brewers of the traditional Japanese
Nagoya and other venues in Tokyo.
spirit have started to look further afield for potential markets.
Jeff Lang, singer, songwriter and slide guitarist, who is
Fortunately for them, the rapidly spreading popularity of
known to shun set playlists during his performances and
Japanese cuisine, particularly in Australia, America and
allow the unique energy of each night to shape his songs,
South-East Asia, look like providing guaranteed exponential
released Engines Moan in 2009 to widespread acclaim. The
growth in demand for the time-honoured beverage.
album, a Japan-only live CD of a Melbourne show, featuring
The Japan Saké Brewers Association reports that annual
Grant Cummerford on bass and Danny McKenna on drums,
sales of saké in Japan were a lacklustre 664,000 kilolitres in
established the artist in Japan as an icon of Australia’s back-
2003, some way off the peak sales reached in the 1970s of
to-basics blues movement. In 2012, Jeff is building on his
around 1.5 million kilolitres. This trend has been mirrored in
success in Japan with appearances at the TakuTaku in Kyoto,
the level of annual individual consumption, which fell from
the Tokuzo in Nagoya and UNIT in Tokyo.
11.5 litres to 6.4 litres during the same period.
The eight-piece, Melbourne-based urban roots band, Blue King Brown, returned to Japan in 2009 to perform
In contrast, exports have been on the rise, spearheaded by insatiable demand in Korea, Hong Kong, China, East Asia, Trusted friends | 131
A woman drinking saké through the stem of a Lotus leaf at a temple in Uji city in Kyoto prefecture. AFP PHOTO / JIJI PRESS
A saké winery in Amanohashidate. ©Kyoto Prefecture/JNTO
North America and Australia. Exports to Australia have notched up double-digit growth since 2005. The figures reflect the steady annual increase in per capita alcohol consumption in Australia since 2006.
Secrets of saké In one highly successful initiative to promote the liquor, Tetsuya Wakuda, owner and chef of the world-famous Tetsuya’s restaurant in Sydney, collaborated with the Consulate-General of Japan in July 2009 to host a reception called An Evening with Saké Samurai. The event was held at the official residence of the Consul General of Japan in Sydney, with executives from eight saké breweries—members of the Japan Saké Brewers Association Junior Council—in attendance. Guests and journalists were served choice saké from these breweries as an accompaniment to the delectable Japanese cuisine created by Tetsuya Wakuda. Saké featured prominently at the inaugural Japanese food booth at Fine Food Australia, Australia’s largest foodservice exhibition, in September 2009. Hosted by the Japan External 132 | Australia—Japan
Trade Organisation (JETRO) and sponsored by a consortium of local Japanese companies,
Above right: Having tasted
the event showcased a wide array of Japanese food products. Organisers reported that the
Japanese saké for the first time,
booth was frequently filled to capacity. Some visitors were heard to say that they had never
most Australians say they are more
previously had the opportunity to enjoy saké, but having tried it, they would be sure to have it
than happy to try it again.
again. Others remarked how delicious and pleasant on the palate it was.
Photo: © JNTO
The steady growth of this traditional Japanese liquor in Australia may be attributed to the fact that it is a superior quality product with intrinsic health and beauty benefits.
Above left: Saké spirits are stirred
It contains anti-aging agents and is widely believed to enhance the radiance of the skin
in 120-year-old vats at the Mori Izo
and reduce cholesterol. There is considerable scope at the luxury end of the market to
distillery outside Kagoshima.
develop the product.
Photo: ©Kagoshima Prefectural
The complexity and flavour profile of saké enhances the flavour of food by cleansing the
Tourist Federation/©JNTO
palate and sensitising the taste. Saké is the perfect accompaniment for seafood, fried or barbecued food and spicy fusion cuisine. Sake’s properties as a moisturiser make it an active ingredient in massage lotions for athletes and in cosmetics. Sun Masamune, Australia's first and only saké brewery, makes the highly popular Go-Shu Australian saké . This pure and healthy rice wine respects the traditions of the finest saké, and is made from the superior Australian medium-grain Japonica rice from Murrumbidgee and Murray River Basins. Visitors to the purpose-built facility, located in the Blue Mountains foothills in the western part of Sydney, can experience saké -making first-hand and learn about its long history, culture and tradition. All Go-Shu sakés display the mark of highquality saké—a mellow blend of the five basic flavours—sweetness, sourness, pungency, bitterness and astringency. Saké is brewed like beer, but it is served like a fine wine. It is frequently used for cooking and is a key ingredient in many Japanese recipes. Saké can be enjoyed warm or chilled, although many modern high-grade sakés are usually slightly chilled. Trusted friends | 133
Wagyu goes worldwide Another traditional Japanese product that has mirrored the steady increase in popularity of saké is Wagyu beef. Since 2001, Wagyu (literally, Japanese cow) has rapidly gained widespread acceptance around the world, and particularly in Australia. In that time, it has played an important role in increasing the overall meat quality of the Australian beef herd. In response to the growing sophistication of today’s consumers, quality assurance and the branding of beef products has become paramount. The infusion of Wagyu into the commercial beef herds has significantly increased meat quality by increasing the marbling, by producing finer meat texture and by reducing subcutaneous fat. These three attributes are an important part of the beef grading process of Meat Standards Australia (MSA). As part of the grading process, meat is labelled with a guaranteed grade and optimum cooking method, satisfying the most discerning consumer. Wagyu is used by many Australian restaurants and hotels in signature dishes. Two examples are Sushi Choo and Sushi-e, two Japanese restaurants that belong to Merivale’s clutch of fine restaurants in Sydney’s CBD. Chef Nobuyuki Ura of Sushi E says that his 500-day grain-fed Wagyu, served with a white miso and sesame sauce, grated radish, chives and sautéed enoki Natural partners like saké and Wagyu beef are
mushrooms, is always a hit with diners looking for a unique Japanese flavour.
increasingly popular Australia wide.
Similarly, Sushi Choo reports that one of their favourite dishes is the Wagyu Beef Carpaccio with Yuzu pepper dressing. One of the many events held around Australia to raise money for the victims of Tohoku earthquake and tsunami was an auction dinner held in
134 | Australia—Japan
April 2011, attended by the head chefs of 13 of Sydney’s finest Japanese
Australian-born Shaun Presland has earned accolades
restaurants. Co-ordinated by Haru Inuaki of the French-Japanese bistro,
to rival those of even the most accomplished of
Blancharu, in Sydney’s Elizabeth Bay, the event showcased the skills of chefs
Japanese chef.
from such well-known Japanese eateries as Qaqu, Rengaya, Kyushu and Yoshii. Guests enjoyed a seven-course meal with saké before bidding for the items for sale. The food, wine and saké served at the event were donated, as were the items auctioned, and the staff donated their time. The event raised $A45,000, which was donated to Red Cross Australia as part of the Japan and Pacific Disaster Appeal.
A taste of rivalry In the domain of Japanese cuisine, a field not surprisingly dominated by chefs from Japan, Australian-born Shaun Presland has earned accolades to rival even the most accomplished Japanese-born chef. After starting his training in a ryokan in the mountains of central Japan and mastering the craft of preparing the local cuisine, Shaun returned to Australia and established Sushi-e and several other restaurants for the Merivale group. During this time, he was spotted by the celebrated chef, Nobu, and asked to set up a restaurant in the Bahamas. After completing this commission, the 37-year-old star of Masterchef returned to Australia and began discussions with restaurateur John Szangolies on the concept of establishing a contemporary Japanese restaurant with a focus on shared dining and creating premium-quality dishes from sustainable produce. The result was the Saké Restaurant & Bar, staffed by Shaun’s handpicked Trusted friends | 135
The Bento box, a traditional Japanese midday meal that includes rice,
Artwork on display in Hyde Park in Sydney's central business district.
sushi and vegetables.
Photo: City of Sydney.
team of committed cooks dedicated to creating a great
guest programs at Holland America. “The culinary arts centre
environment in which to savour his new and exquisite
offers experiences that guests can take home and share with
taste tonalities, complemented by an impressive selection
their friends and family, from learning regional recipes to
of unique saké and shochu. The restaurants have won the
party planning and more.” Shaun will conduct two 45-minute
highly coveted Sydney Morning Herald Good Food Guide
cooking demonstrations and one 90-minute cooking class on
Chef’s Hat each year since opening, and visitors now
board MS Volendam’s 14-day New Zealand Discovery voyage,
come from around the world to experience the ultimate in
sharing his extensive knowledge of traditional Japanese
Japanese dining at his establishments on Eagle Street in
techniques with his fellow seafarers.
Brisbane and The Rocks in Sydney. Augmenting Shaun’s impressive record of culinary
Bento versus lunchbox
achievement is an invitation to work aboard the prestigious
The work of Ms Tomomi Maruo in Tokyo highlights a sharp
MS Volendam, Holland America Line’s 240-metre ocean liner,
difference in Australian and Japanese attitudes to the school
when it sets sail for the South Pacific in early 2012. Holland
lunchbox. Unlike in Australia, where schoolchildren can look
America plans to present the world’s most celebrated chefs in
forward to some simple sandwiches in plastic wrap and some
its culinary arts centres on all 15 of the line’s vessels. On each
fruit, the Japanese bento or lunchbox has long been a work of
voyage, guests will have the opportunity to attend culinary
considerable devotion. Ms Maruo has taken this art form to
demonstrations and participate in cooking classes with either
new heights, with a range of creations fashioned from boiled
guest chefs or Holland America’s specialist on-board chefs.
rice, nori (thin sheets of edible seaweed) and other simple
The culinary arts centres are spacious demonstration
ingredients. She holds classes for parents eager to expand
kitchens that feature large video screens to display overhead
their repertoire of lunchbox culinary excellence.
close-up shots of food preparation techniques. “We know that Australians love their chefs and high-quality food, so we’re
Anime and Magna
very proud to add Shaun to our mix of talent,” says Richard
It’s rare for a loanword to enter one language then re-enter its
D Meadows, executive vice president of marketing, sales and
original language in its altered state. For example, “dubbing”
136 | Australia—Japan
Snorkeling in the Royal National Park, just south of Sydney. Photo by James Pipino © Destination NSW
used to mean editing or modifying a soundtrack by adding
become a global sub-cultural phenomenon, and originated
another sound input, usually in a studio. The term “da-bi-n-
in Tokyo’s Akihabara district, otherwise known to many
gu” entered Japanese to mean simply copying a soundtrack
veteran expats as Tokyo’s retail centre for discount electrical
between audio devices, and the term has acquired the same
appliances. Akihabara affords the Otaku unrivalled
meaning in English.
opportunities to surround themselves with memorabilia and
Similarly, the term “anime”, derived from the first three
other merchandise of their chosen interest, many of whom
Japanese characters of the loanword “a-ni-me-e-shyo-n” has
are obsessive consumers of science fiction, manga, video
returned to English to represent a particular style of Japanese
games and anime.
animated cartoon. Today’s characteristic anime style emanates from the work
Evidence of this global trend is SMASH!, an acronym for the Sydney Manga and Anime Show, an annual convention
of Osamu Tezuka in the 1960s that became popular through
specifically targeting the countless fans of Japanese pop
series such as Tetsuwan Atomu (literally, “Iron-Arm Atom”,
culture in Sydney that brings together artists, directors,
known is Australia as Astro Boy) and Janguru Taitei (“The
musicians and enthusiasts. The event grew from the germs
Jungle Emperor”, or Kimba the White Lion).
of an idea of Katie Huang and Paul Aeria, to present the
Manga (meaning “whimsical sketches”) have a longer
material with a strong focus on the art. Other members
history in Japanese culture, dating back to the 19th century.
quickly joined Katie and Paul, and together they formed the
They became popular in the post-war years following
incorporated non-profit organisation SMASH Inc. to expand
America’s occupation, and today represent an industry in
the event into a large-scale anime and manga convention. The
Japan worth over ¥400 billion ($A5 billion).
first event was held at the Roundhouse at the University of
Both anime and manga attract large numbers of devoted
New South Wales in 2007, attracting 1435 aficionados. The
enthusiasts in Australia and other Western countries, some
event is now held at the Sydney Convention Centre over two
of whom border on the eccentric, and the phenomenon
days, and draws up to 6000 enthusiasts.
itself has spawned its own term—Otaku culture—meaning the culture of “fanatics” or “geeks”. The Otaku culture has
Highlights include the spectacular array of Cosplay (costume play) creations, the Maid Café, the numerous stores Trusted friends | 137
that sell a vast array of anime merchandise, such as figurines,
and illustrator who was born in Hong Kong, but migrated to
coloured contact lenses, plastic guns, cat ears, key chains
Australia with her family in 1986 when she was six years old.
and badges, as well as manga, anime DVDs and video games.
Queenie Chan scored a publishing coup in 2004, when
Attendees can make their own anime-themed music video,
she was contracted by the American-based manga publisher
compete in a Street Fighter gaming competition or just line
Tokyopop to produce a three-volume manga series set in
up for a turn at karaoke.
Australia, titled The Dreaming. Queenie’s story not only
Revered luminaries of Otaku culture who have appeared
illustrates the increasingly globalised nature of comics
at the convention include Shinichi Watanabe, director of the
publishing, but embodies the societal shifts that Australia
Excel Saga series, who gave a master class on anime, Kenji Ito,
has undergone in the last 20 years, as its growing exposure to
composer, who gave a presentation, and games whiz Hiroki
different Asian cultures brought about a reassessment of its
Kikuta, who offered insights into various game strategies and
place in the Asia-Pacific region.
tactics. The convention also gives exclusive screenings of selected anime. The president of SMASH!, Thomas Munro, says, ''When
Queenie’s first submission to TokyoPop was an actionadventure tale, Chinese Ghost Story. After this story and several others were rejected, her editor suggested a horror
people think of cartoons, they tend to think of simplistic
story, such as a haunted school story. The suggestion led to
children's things. But the Japanese tend to make use of
her ground breaking, three-part manga series, The Dreaming.
horror themes or romance themes—things you could
The highly charged supernatural atmosphere of The
probably do in live action - but it's a much richer experience
Dreaming is well suited to the frenetic visual style of manga
when they animate it.'' Fans also like to dress up as their
and evokes Joan Lindsay’s classic 1967 novel, Picnic at
favourite manga characters, but Munro says SMASH! fans
Hanging Rock.
are a bit more ''hardcore''. ''They tend to have to make the costumes themselves rather than buy them,'' he says. Kevin Patrick, a freelance writer and former magazine editor/publisher, based in Melbourne, and creator of the Comics Downunder blog, observes that the cultural traffic
Kevin Patrick notes that, as an ostensibly Australian story, produced by a Hong Kong-born, Chinese-Australian, and published by an American company, The Dreaming raises the contentious issue of what constitutes ‘authentic’ manga. He says that, for Queenie, however, the conscious decision
with anime and magna has been running both ways between
to create manga stories removed from their ‘traditional’
Australia and Japan in recent years. As more and more comic
Japanese settings was an easy one to make.
creators beyond Japan are exposed to manga and anime,
Queenie says: “I feel that you should always write and
they have adapted Japanese comics’ storytelling traditions
draw about what you know and are familiar with. I don’t
for their own purposes, crafting tales that reflect their own
understand the need to do manga stories set in Japan, as
culture and experience. Such works are often labelled OEL
there are tonnes of Japanese manga artists, living in Japan,
(original English-language) manga to differentiate them from
who are doing the same thing. I think that non-Japanese
Japanese manga.
manga creators trying to be Japanese won’t sell as well
Patrick says nowhere is this trend more evident in Australia than in the work of Queenie Chan, a Sydney-based writer 138 | Australia—Japan
as the real thing.” The Dreaming Volume 3 (ISBN 978-159816-384-1) was published by Tokyo Pop on 11 December
Japanese fictional character Queenie Chan reflects the increasingly international nature of publishing: Japanese origin; American publisher; Australian setting.
Trusted friends | 139
2007. Tokyo Pop titles are distributed in Australia and New
Hokkaido that is popular amongst Australian skiers, Quentin
Zealand by Funtastic Publishing.
believes it will be some time before the Australian presence
For the full interview with Queenie Chan and other
dominates in Hakuba. He says that Hakuba is a more
insights into anime, please visit Kevin Patrick’s blog,
international resort. Already many Europeans and North
http://comicsdownunder.blogspot.com.
Americans are starting to visit and, together with visitors from Singapore, Hong Kong and China, the Australian
Tourism The Hakuba valley, located deep in the Japanese Alps in
influence is less prevalent.” Quentin Nolan’s success in Hakuba follows the inroads
Nagano Prefecture, incorporates 10 ski resorts, more than
Australian enterprises have made into Japan’s ski fields.
200 runs and 139 lifts. The area has towering peaks that
The Australian Alpine Club’s Niseko resort high in Hokkaido’s
receive 11 metres of snow each year. The local village is lined
snowfields gives guests access to 57 ski runs, 38 ski lifts
with ski and snowboard shops, a combination of traditional
and over 47 kilometres of carefully maintained slopes.
and western restaurants and aprés ski entertainment. The
The longest run is 5.6 kilometres and the terrain offers first-
area is the heart and soul of snow sports in Japan and was
timer slopes, half-pipes, quarter-pipes, tabletops, mogul fields
host to many events during the 1998 Winter Olympics,
and tree runs.
including downhill skiing, ski jumping and the super G. One highly successful tour company based in the Hakuba
The facility is operated as a membership-only ski lodge and is located near Hokkaido’s highest mountain, the majestic
Valley is Liquid Snow Tours, owned and operated by Quentin
Mount Yōtei. Because of its northern location, Niseko is
Nolan, a former retail-marketing executive.
fed by frequent weather fronts from Siberia. The resort is
Quentin’s initiative started with tours to the New South
internationally renowned for its consistently good falls of
Wales and Victorian ski resorts. He recalls, “Our first season
light powder snow and its long ski season, which runs from
was quite successful and I saw an opportunity to run a group
late November until early May. While the snow may not be
trip to Japan. We took a group to Hakuba in 2006, and a
as dry as other areas in Hokkaidō, the volume is high, with
year later I took 15 groups. Then we bought our ski lodge,
the average snow depth in March reaching 351 centimetres.
the Lab Hakuba. “I have a passion for snowboarding, and
In 2007, Niseko was listed as the world's second snowiest
saw an opportunity to travel and meet interesting people,
resort with an annual average snowfall of 15.11 metres, and,
and the potential to earn a great income.” It was the short
in March 2008, was voted the world’s sixth-best ski resort.
stint working in the travel industry organising group ski trips for a Sydney-based wholesaler that gave Quentin a
Rugby
healthy taste for setting up his own business. “That job gave
With the aim of cultivating rugby union in Japan and
me the opportunity to learn about the industry and spot
allowing the national team, the Cherry Blossoms, to become
a gap in the market before jumping right in,” he adds.
more competitive, the Japanese Rugby Football Union
“Now we are expanding into more resorts on [Japan’s main
(JRFU) established the Top League in 2003, a professional
island of] Honshu.”
Super 14-style competition, initially comprising 12 teams.
Unlike the Niseko resort on Japan’s northern island of 140 | Australia—Japan
The Top League, which was expanded to 14 teams in 2006,
Hakuba valley, deep in the Japanese Alps in Nagano Prefecture, incorporates 10 ski resorts, more than 200 runs and 139 lifts.
runs from September to February. The 2008–2009 series
adviser to South Africa when the Springboks won the
attracted around 400,000 spectators to the 13 rounds
2007 World Cup in France. His contract with Suntory
and finals.
was due to run until 2014.
Japanese rugby has triggered considerable interest in
In the 2010–2011 season, Suntory finished runners up
Australia since the Kubota Spears signed former Wallabies
in the Top League and won separate national championships
lock Hugh McMeniman, and since the popular Craig Wing
under Eddie’s stewardship, and eight straight wins have
defected to Mark Gerrard’s second division club, NTT
recently put them in a strong position for the 2011–2012
Communications.
season.
In addition to the Top League, or first division, there is the
At the press conference held in Tokyo to announce his
second division called the Top Challenge Series, which also
appointment, Eddie, who guided the Wallabies to the 2003
includes some well known Australians and New Zealanders,
World Cup final, said his target was to make the Japanese
such as Stephen Larkham for Ricoh, Sam Harris for Honda,
side one of the world’s top 10. “We need to develop the style
Nathan Grey, Tim Atkinson and Tom McVerry for Kyuden,
of play that suits Japanese players, that allows us to beat
and Caleb Ralph for Sanix. Jone Tawake and Troy Flavell also
countries like Scotland and Wales. We’ll quickly identify 30
feature in the second division for the Secom Rugguts and
or 40 players that we are going to take to the next World Cup,
Mitsubishi Dynaboars respectively.
and get them to understand the Japanese way of rugby. It’s
On 26 December 2012, former Wallabies coach Eddie Jones was appointed the head coach of Japan’s national
going to be a very exciting four years.’’ Japan’s best world ranking was 12th in mid-2010, and
rugby team, replacing All Blacks legend John Kirwan. Jones
the team currently ranks 15th under its outgoing coach, All
takes up his new position in April 2012 and the appointment
Blacks star John Kirwan. Eddie emerged as John Kirwan’s
is for four years. He has been managing Japan’s Top League
likely successor after Japan returned home from the 2011
side, Suntory Sungoliath, since 2009 and was technical
Rugby World Cup in New Zealand without a win. Trusted friends | 141
Japan's Daisuke Ohata scores a
Jones started his professional coaching career in Japan in 1996 with Tokai University,
try against the Arabian Gulf team
before coaching Japan to an Asian Championship and then signing a three-year contract
in the 2007 Rugby World Cup in
with Suntory.
Tokyo. AP Photo/Itsuo Inouye
After three months at Suntory, he was offered the coaching job at the Brumbies, prompting Suntory to agree to release him from his contract. Subsequently, after two years at English club Saracens, Suntory wasn’t going very well, and the team managers travelled to London to persuade him to return. Eddie started at Suntory full-time 13 years after his first stint with the team, which became Japan’s champion within one year. Eddie says that Rugby Union is just shy of being a top 10 sport in Japan. "Rugby Union has fallen in popularity, but, with the Rugby World Cup in Japan in 2019, there is optimism that it can become a top 10 sport.” Another star of Japanese Rugby Union is former Wallabies and Brumbies captain George Gregan, who currently plays for Suntory. George played with the ACT Brumbies from the inception of the Super Rugby competition in 1996 through to 2007. He believes that with players from Australia and other Southern Hemisphere countries heading to Europe to further their careers, more players should head to Japan. He says, "It’s a great experience being in Europe because they have longer seasons, but Japanese Rugby is improving. Japan is easy for some people to adapt to, while some find it hard. Some players embrace and love it and then there are others who struggle with it. But they really take care of you in Japan. "Rugby in Japan has improved over the last few years. I saw it evolving whilst I was there. There are a lot more players heading that way, especially international players." After the Rugby World Cup, many Australian and New Zealand players are expected to head for Japan. All Black Mils Muliaina, Springboks Danie Roussow and Fourie Du Preez, and former Australian player George Smith are just a few.
142 | Australia—Japan
Junior Rugby
Some of Australia's most
It isn’t only at Test Match level that rugby has provided a bridge between the two nations
successful ambassadors to Japan
In September 2011 the Lindfield Junior Rugby Club, from Sydney’s northern suburbs,
have been the members of touring
sent a representative team of 11- and 12-year-old boys to play a series of games in the
junior rugby union teams. Eleven-
south of Japan. It was part of a long-standing exchange with Lindfield’s sister club, the
year-old James Davis (centre) and
Kawanishi Rugby School, based near Osaka, and took the young Aussie rugby hopefuls to
Junior Rugby team mates making
Kyoto, Hiroshima and Matsuyama, in addition to Osaka.
their first trip to Japan.
Kawanishi sends a team to Australia every second year, where they are billeted with Lindfield families, providing continuing ties and fostering some long-lasting friendships. One of the 2011 tourists, 11-year-old James Davis, was making his first trip to Japan and learnt a great deal. “I just loved staying with our host family, who were so friendly, and trying to speak some of the language, and travelling on the bullet trains, and living the way the Japanese lived. I want to go work there when I am older—or maybe I can play professional rugby there.” If James succeeds in moving to Japan to play professional rugby, he will join former George Gregan, Ben Darwin, Mark Gerrard, Stephan Larkham and many other former Wallabies who have played for local teams.
Trusted friends | 143
Shell Shell is a global, integrated energy company with operations in more than 90 countries and territories. Our businesses include oil and gas exploration and production, refineries and chemical plants, processing and marketing of liquefied natural gas (LNG) and gas-to-liquid (GTL) products, marketing and shipping of oil products and chemicals, and renewable energy sources, such as biofuels. Shell in Australia Shell has been operating in Australia since 1901, with our business divided into "upstream" and "downstream" activities. The downstream business, headquartered in Melbourne, manufactures petroleum products, supplying 25 per cent of Australia's petroleum requirements. The upstream business, headquartered in Perth, finds, develops and supplies LNG, condensates and liquefied petroleum gas (LPG) to overseas markets and natural gas to domestic customers in WA. LNG is a particular focus for Shell in Australia, contributing to our position amongst international oil companies as the world’s largest producer of LNG. Currently, as well as being a 24 per cent shareholder of Woodside and a 50 per cent owner of the Arrow Energy coal seam gas business in Queensland, Shell’s upstream interests in Australia include a one-sixth share in the North West Shelf LNG Joint Venture, a 25 per cent share in the Gorgon Joint Venture and a 6 per cent interest in the Wheatstone Project. Shell also holds interests in a number of other discovered gas resources, such as the Browse joint venture and Sunrise joint venture, whose development plans are yet to be sanctioned. Shell also operates the Prelude Floating LNG (FLNG) development based on discovery of the Prelude and Concerto gas fields off the northwest coast of Australia in 2007. Shell announced in May 2011 that it would develop these fields using the world’s first FLNG facility. This groundbreaking technology, which has been developed by Shell, will process the gas at the site of the gas field, reducing the cost and environmental footprint of development.
Shell will develop the recently discovered Prelude and Concerto gas fields off Australia’s northwest coast using the world’s first floating liquefied natural gas facility.
144 | Australia — Japan
With its non-operated and operated activities in Australia’s LNG industry, Australia is key
To help meet its global LNG
to Shell’s LNG growth aspirations globally. Shell is looking at some $30 billion of investment
production ambitions, Shell
in Australia over the next five years, making Shell one of Australia’s largest investors.
expects to invest $30 billion in LNG production in Australia
Shell in Japan
over the next five years.
Shell companies have been active for over a hundred years in the energy business in Japan, supporting its development and growth through the supply of oil products, petrochemicals and gas. Japan is the world's largest single market for LNG. LNG projects with Shell involvement, including Australia's North West Shelf LNG joint venture, provide over 40 per cent of the LNG imported into Japan. Japan is thus a key market for Shell, a market that has been built on the basis of strong and enduring relationships with Japanese electric power generating companies and gas utilities. As a consequence of the March 2011 earthquake and tsunami, natural gas is expected to have an even more prominent role in the energy mix of Japan going forward. Shell will continue to support the energy needs of Japan by developing new and diverse supply sources, and through groundbreaking innovations such as Shell's recent Prelude FLNG Project in Western Australia, making gas even more available to LNG customers.
AUSTRALIA–JAPAN | 145
NAB National Australia Bank Limited Established in 1858, The National Australia Bank Group is a financial services organisation with over 12 million customers and 50,000 people, operating more than 1,750 branches and service centres globally. It is one of Australia’s largest banks, and its major financial services franchises in Australia are complemented by businesses in New Zealand, Asia, the United Kingdom and the United States. The bank’s Asian operations comprise three lines of business—Wholesale Banking, Business and Institutional Banking, and Personal Banking—represented by over 400 people across offices in Hong Kong, Singapore, Japan, China, India and Indonesia. NAB has been operating in Japan since 1969, and currently has over 50 staff dedicated to servicing local and international clients from its Tokyo and Osaka offices. In Asia, NAB supports its clients through the provision of banking services arising from the flows of business, trade, investment and people between Australia/New Zealand and Asia. By leveraging its industry specialisation across the resources, energy & utilities and food & agricultural sectors, NAB’s Business and Institutional Banking team in Japan and across the region deliver a range of corporate finance solutions including corporate debt, loan syndications, project and export finance, trade finance, foreign exchange, and debt capital markets services. Through its expertise in the AUD and NZD currency markets, NAB also provides its personal clients with a range of deposit products, including foreign currency and structured term deposits, as well as offering finance for both local and overseas property acquisition. In the broader Asia region NAB continues to build its network and presence with the recent opening of new branches in Shanghai and Mumbai, as well as a representative office in Jakarta, Indonesia. TOP: National Australia Bank Tokyo Branch reception. BOTTOM: Muromachi Higashi Mitsui Building, home to National Australia Bank’s Tokyo Branch office.
146 | Australia — Japan
MLA Meat & Livestock Australia (MLA) is a red meat industry organisation that is funded by Australian cattle, sheep and goat producers. MLA’s head office is based in Sydney, with overseas offices including Tokyo. MLA is responsible for the implementation of marketing programs to promote nutritious, safe, and consistent quality of Australian red meat produced in the clean and green environment. MLA also undertakes research and development programs, working in partnership with the industry partners and Australian government to achieve a sustainable red meat and livestock industry in Australia. The Australian beef industry exports over two thirds of its annual production, and of our export markets, Japan has been the largest since the mid-1990s. Worth over $1.8 billion (CY2010), the Australian beef industry places a high priority and respect on the trade relationship with Japan. In Japan, Aussie Beef has become an iconic brand, with close to 100 per cent of Japanese consumers aware of the Aussie Beef logo. Australia has been supplying beef to Japan since the 1950s, and has become the premier supplier of imported beef into Japan. Now, Australia supplies approximately 41 per cent of beef consumed in Japan (2010), and is recognised as being
Three farmers from tsunami-affected Tohoku visit
a safe, nutritious and good value source of beef in Japan.
Australia. Left to right: Hiroshi Sano, Mutsuko Ozawa
The Australian beef industry hopes to continue to expand the close
and Shin Yamada.
relationship, working with the Japanese beef industry and customers on recovering beef consumption in Japan. An FTA with Japan would greatly strengthen this important trade relationship. In 2011, after the devastating tsunami and nuclear accident in Tohoku, MLA launched the ‘Together with Japan’ initiative to show our support of Japanese beef producers in Tohoku. Through this program, we have created scholarships for Japanese agricultural high school students to travel to Australia, provided support to producers in the form of hay deliveries to tsunami/nuclear affected areas and conducted many BBQs in evacuation centres in the aftermath of the tsunami.
AUSTRALIA–JAPAN | 147
6 Business Directory Australia-Japan business
PARTNER COMPANIES
Allens Arthur Robinson Level 28, Deutsche Bank Place, 126 Phillip Street (Corner of Hunter & Phillip Streets), Sydney, NSW 2000, Australia Tel: +61 2 9230 4000 Fax: +61 2 9230 5333 Email: japanservices@aar.com.au www.aar.com.au
Australia and New Zealand Banking Group Limited 833 Collins Street, Docklands, Victoria 3008, Australia Tel: +61 3 9683 9999 For online enquiries visit: www.anz.com/common/forms/Online-Enquiry www.anz.com
Baker & McKenzie Level 27 AMP Centre 50 Bridge Street, Sydney, NSW 2000
Level 19, 181 William Street, Melbourne, VIC 3000
Tel Sydney: +61 2 9225 0200
Tel Melbourne: +61 3 9617 4200
Fax Sydney: +61 2 9225 1595
Fax Melbourne: +61 3 9614 2103
Email Sydney: ben.mclaughlin@bakermckenzie.com Email Melbourne: richard.lustig@bakermckenzie.com www.bakermckenzie.com
Baker & McKenzie The Prudential Tower, 10th Floor, 2-13-10 Nagatacho, Chiyoda-ku, Tokyo 100-0014, Japan Tel: +81 3 5157 2700 Fax: +81 3 5157 2900 Email: anne.hung@bakermckenzie.com Email: paul.davis@bakermckenzie.com www.bakermckenzie.com
PARTNER COMPANIES | 149
PARTNER COMPANIES
BHP Billiton Limited 180 Lonsdale Street, Melbourne, Victoria 3000, Australia Tel +61 1300 55 47 57 Fax +61 3 9609 3015 www.bhpbilliton.com
BP BP Developments Australia Pty Ltd Level 8, QV1 Building, 250 St Georges Terrace, Perth, Western Australia 6000 Tel +61 8 9420 1801 Fax +61 8 9420 1818 www.bp.com.au
Clayton Utz Brisbane: Level 28, Riparian Plaza, 71 Eagle Street, Brisbane, QLD 4000, Australia Sydney: Level 15, 1 Bligh Street, Sydney, NSW 2000, Australia Tel: Brisbane +61 7 3292 7000
Tel: Sydney +61 2 9353 5992
Fax: Brisbane +61 7 3221 9669
Fax: Sydney +61 2 8220 6700
Emails: ahay@claytonutz.com
hkano@claytonutz.com
www.claytonutz.com
Deloitte Japan: MS Shibaura Building 4-13-23, Shibaura, Minato-ku, Tokyo, 108-8530, Japan Australia: Level, 9 Grosvenor Place, 225 George Street, Sydney, NSW 2000, Australia Tel Japan: +81 3 3457 7321
Tel Australia: +61 2 9322 7000
Fax Japan: +81 3 3457 7426
Fax Australia: +61 2 9322 7001
www.deloitte.com/japan
www.deloitte.com.au
150 | AUSTRALIA—JAPAN
JX Holdings, Inc. 6-3 Otemachi 2-chome, Chiyoda-ku, Tokyo, Japan Tel: +81 3 6275 5002 Fax: +81 3 3276 1248 Email: jxhdinformation@hd.jx-group.co.jp www.hd.jx-group.co.jp/english/
Lend Lease 3F Akasaka Enokizaka Mori Building, 1-7-1 Akasaka, Minato-ku, Tokyo 107-0052, Japan Tel: +81 3 6866 5600 Fax: +81 3 6866 5607 Email: bd.japan@lendlease.com www. lendlease.com
Mitsubishi Heavy Industries, Ltd. Japan: 16–5, Konan 2-chome, Minato-ku, Tokyo 108-8215 Australia: Level 6, 160 Queen Street, Melbourne, Victoria 3000 Tel Japan: + 81 3 6716 3111
Tel Australia: +61 3 9670 9799
Fax Japan: +81 3 6716 5800
Fax Australia: +61 3 9670 4197
www.mhi.co.jp/en/
Mitsui Australia: Level 46, Gateway Building, 1 Macquarie Place Sydney, NSW 2000 Japan: 2–1 Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-0004 Tel Australia: +61 2 9256 9500
Tel Japan: +81 3 3285 1111
Fax Australia: +61 2 9251 1788
Fax Japan: +81 3 3285-9819
www.mitsui.com/au
www.mitsui.com/jp
PARTNER COMPANIES | 151
PARTNER COMPANIES
MLA Meat & Livestock Australia 12th Floor World Trade Centre Building 2-4-1 Hamamatsucho Minato-ku Tokyo Japan 105-6112 Tel: +81 3 3435 6300 Fax: +81-3-3438-1677 Email: mbrock@mla.com.au www.aussiebeef.jp
NAB National Australia Bank Limited 800 Bourke Street, Docklands, VIC 3008, Australia Tel: +61 3 8641 9083 www.nabgroup.com
North West Shelf Australia LNG Australia: Level 16, Alluvion, 58 Mounts Bay Road, Perth, WA 6000, Australia Tel: +61 8 9213 4670 Fax: +61 8 9213 4671 www.nwsalng.com
Shell Upstream Australia 2 Victoria Avenue, Perth, WA 6000, Australia Tel: +61 8 9338 6000 Fax: +61 8 9338 6691 www.shell.com.au
152 | AUSTRALIA—JAPAN
Sojitz Corporation 1–20, Akasaka 6-chome, Minato-ku, Tokyo 107-8655, Japan Tel: +81-3-5520-5000 Fax: +81-3-5520-2390 Email: http://www.sojitz.com/en/contact/index.html www.sojitz.com/en
Toll Street Addressing, Suburb, Country Australia: Level 7, 380 St Kilda Road, Melbourne, VIC 3004, Australia Japan: Level 5, NF Esaka Building 1-13-41, Esaka-cho, Suita-city, Osaka 564-0063, Japan Tel: Aust. +61 3 9694 2888 | Japan +81 6 6380 3021 Fax: Aust. +61 3 9694 2880 | Japan +81 6 6380 3071 Aust: www.toll.com.au | Japan: www.tollexpressjapan.com
Western Australia Government— North Asia Agency 13F Fukoku Seimei Building, 2-2-2 Uchisaiwaicho, Chiyoda-ku, Tokyo 100-0011, Japan Tel: +813 5157 8281 Fax: +813 5157 8286 Email: wa.tokyo@wajapan.net www.wajapan.net
Woodside Woodside Plaza, 240 St Georges Terrace, Perth, WA 6000, Australia Tel: +61 8 9348 4000 Fax: +61 8 9214 2777 Email: companyinfo@woodside.com.au www.woodside.com.au
PARTNER COMPANIES | 153
154 | Australia—Japan
7 INDEX A–Z ACKNOWLEDGEMENTS
| 155
INDEX
A Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias
156 | AUSTRALIA—JAPAN
eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis
B Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis
Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis
C Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio
quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis
D Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae
volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio
E Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus.
Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio
F Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i INDEX | 157
INDEX
A
A
A
Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis
Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis
Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis
158 | AUSTRALIA—JAPAN
A
A
A
Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis
Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis
Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis Aupta nones quis quasper ferias maio quos nonsed molest, senistr umquae volest quam ut accae volenitat i Asanda exceperit faccusam liquae di omnit Aabore porrum ex es qui berfero quias eriae derat. . Aue voluptio. Sinietus entotatet unt que nonseque nus, unt eni dem aut essus. Aam aturit, conecatent mod quatata vel isi ommolor erorio de eumenecatem nonse repudae perum vollatatecto ommodis
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