Compromise in East China Sea a test of leadership

Despite the constitutional restrictions and a declining defence budget, Japanhas still managed to develop a significant military capability and it would be a mistake to assume that Japan does not have the capacity to respond to a military challenge.

On a previous visit to Beijing I was warned by a Chinese official that once a nation places a foot on what he termed “the ladder of escalation” it is often impossible to climb back down, which can lead to conflict.

This could equally be applied to the Senkaku/Diaoyu islands dispute and nations around the world are urging both sides to avoid putting a foot on that “ladder of escalation”.

While the economic fallout between the world’s second and third largest economies would be reason enough to prevent a conflict, the politics of this issue are highly volatile.

With new political leaders in both Japan and China the rising nationalist sentiment in both countries will make it increasingly difficult to find a compromise, but that will be the ultimate test of their leadership.

During my discussions with officials in both countries I noted that both referred to the potential role of United States in ensuring that there not be an escalation of the dispute.

Ultimately a peaceful compromise must be seen as being the interests of the Japanese and Chinese people, and not a sign of weakness.

Australia must continue to urge two of our important trading partners and friends to find that compromise, as the alternative would represent a serious threat to the peace and stability of our region.