Australian Foreign Minister Alexander Downer yesterday played down concerns that a security agreement reached between Australia and Japan last month was meant to contain China.

"Our position is that we have a security declaration with Japan and that is not a security agreement that threatens other countries," Downer said at a news conference in Beijing, after talks with his Chinese counterpart Li Zhaoxing.

During the talks, "we did not have any discussion about the declaration between Japan and Australia," he added.

Chinese analysts have said Australia's claim that the agreement is not directed at China is not convincing.

"This pact is a step forward toward the emergence of a US-led NATO-like organization in Asia, which will clearly grow to be the biggest potential threat to China's regional security environment," said Hou Minyue, a professor of Australian Studies Centre at Shanghai-based East China Normal University.

FTA talks

Downer said that negotiations between China and Australia on a free trade agreement have made "steady progress".

He refused to disclose details of the latest round of the negotiations on the agreement, which concluded in Beijing on March 30, but said "we hope they would make even more substantial progress during the visit by President Hu Jintao to Australia in September this year".

Downer said Hu is expected to pay a state visit to Australia in September when he attends the APEC forum in Sydney.

He said Australia and China will also work together in the health and environment sectors.

In the next five years, Australia will provide $25 million to support China's policies for a better environment with an initial focus on water resource management and a further $25 million to support China's ongoing efforts to halt and reverse the spread of HIV/AIDS, Downer said.

Source: China Daily