In their first meeting last week, Prime Minister Yasuo Fukuda and Australian Prime Minister Kevin Rudd sidestepped a sensitive issue that could harm bilateral relations. Instead, in their joint statement, they confirmed the two countries' "commitment to strengthening further the comprehensive strategic, security and economic partnership."

Japan and Australia have good economic ties through trade in energy and mineral resources and industrial and agricultural products. But Japan's scientific research whaling activities face strong opposition from Australia. Mr. Fukuda and Mr. Rudd agreed that "you can have disagreements between friends." Mr. Rudd said the two countries "will be working in the period ahead diplomatically in search of a solution on this question."

The two leaders stressed the importance of continuing regional discussions on the future of the Asia-Pacific region to tackle common challenges there.