PRIME MINISTER: The strength of our Alliance is enduring. It’s been built on millions of relationships, of connections between Australians and Americans over so many years. 100 years of mateship – ever since the Battle of Hamel 99 years ago, in every major conflict Australians and Americans have fought side by side.

Last night of course, we were commemorating the Battle of the Coral Sea, that moment in 1942 where brave Australian and American sailors and aviators turned the tide for war in the Pacific and saved Australia, and saved the Pacific for freedom. That was the turning point, the “hinge of fate” as Churchill described it.

BRET BAIER: You’re very active with US forces, really all around the world.

PRIME MINISTER: Yep.

BRET BAIER: In fact, military ties are one of the closest, with any other ally, that we have. So when that phone call happened and the coverage of it happened, it took people by surprise. When you saw that and heard that, what was your reaction?

PRIME MINISTER: The call was courteous, it was frank and forthright as you would expect between very good friends. That’s how good friends should talk to each other, and the reporting was wildly exaggerated – as the President observed last night, and as he’s observed in the past. We are very close friends, Australians and Americans.

The President and I had our first meeting together in person, we have a lot of friends in common and we have similar backgrounds in business. We got on so well.

BRET BAIER: The genesis of that phone call and the coverage of it had to do with the deal you struck with the Obama administration. The Trump administration is holding up to that deal.

PRIME MINISTER: Yes, we thanked the President for his commitment to that.

BRET BAIER: They didn’t like it. Clearly.

PRIME MINISTER: Yes, clearly that’s right but we thanked them for their commitment to the arrangement we had with his predecessor.

BRET BAIER: Some of the President’s supporters look at your immigration policy and say: “That’s what we want. That’s what we’d love to have” Your immigration policy essentially says if someone comes in illegally, they have to leave?

PRIME MINISTER: We are a very, very multicultural society. We have achieved that with a remarkable degree of harmony. Now a foundation of that, is the public having absolute confidence that their government and their government alone, determines who comes to Australia, how long they stay, the terms and conditions on which they stay. That is our sovereign right and our sovereign responsibility. So we have a generous humanitarian program, but we say: “If you seek to come to Australia unlawfully, with a people smuggler, you will not succeed.” Full stop. That is absolutely, absolutely fundamental.

BRET BAIER: You sympathise with the President on this issue? I mean he’s kind of selling it that way, as you talk about it.

PRIME MINISTER: The proposition that the government elected by the people should decide who comes into a country and the terms on which they come, is fundamental. It’s a fundamental sovereign right of any nation.

BRET BAIER: Your region is obviously a focus for the US, with all that’s happened with North Korea. Do you get a sense that the diplomatic efforts, economic pressure, diplomatic pressure, is having an effect in countries in your region, when it comes to North Korea? Is it moving the needle, especially with China?

PRIME MINISTER:  Yes, I think it’s very clear that the North Korean regime’s reckless and dangerous provocation must stop. It is a real threat to peace and stability in the region and indeed in the world. The country with the greatest leverage on North Korea, by far, is China. The eyes of the world are on Beijing. Beijing has to bring that pressure to bear to stop this escalating threat to peace in the region.

And you have seen action on the part of China and you have seen the resentment, bitter resentment expressed by the North Korean government against China. I think that is actually a good sign, because it shows that China is bringing influence to bear on North Korea. ‘So far, so better’. There’s some progress being made but a lot of work needs to be done.

BRET BAIER: It has always been, that getting China to move has been tough for the US, on this particular issue. Is this different this time?

PRIME MINISTER: Well time will tell. I think it’s important to understand that North Korea is not a client state of China in the way say East Germany was of the Soviet Union. So the Chinese have found plenty of frustrations in dealing with North Korea over the years. They’ve endeavored to encourage Kim Jong Un’s father to follow the Chinese model of development. They didn’t have enough success there. They’ve had no success with the son.

Having said that, having said all of that, the reality is that the Chinese economic relationship is overwhelmingly the greatest with North Korea. It is, China has, the greatest leverage and therefore the greatest responsibility.

BRET BAIER: You have a unique relationship with China, obviously do a lot of trade with them. Is China a partner or an adversary? Or both?

PRIME MINISTER: (Laughs)

We have a very important economic relationship with China, but it’s a relationship that goes well beyond economics. It is built on thousands if not millions of people-to-people ties as well. Our largest, our most substantial economic relationship overall is with the United States. The United States is our ally. That alliance is the bedrock of our national security and it is vital, that alliance is vital for the security of Australia and the United States. So we have a good friend in Beijing and we have a strong, enduring ally in Washington.

BRET BAIER: Your perception of President Trump? Do you think that he values personal relationships more than other world leaders?                                                                                                                                                                             

PRIME MINISTER: Well I wouldn’t like to compare him with other world leaders, but I would say that clearly he values personal relationships. He is a very warm leader, a very warm person, with a very personal approach. That’s been his business style, it’s something I understand very well. But we both understand the importance of trust and the importance of that personal human connection that is critical to strong relationships.

BRET BAIER: When he invited the leader of the Philippines to the White House, Duterte, what was your take?

PRIME MINISTER: Well the Philippines is a vitally important country, nation in our region, the Asia Pacific. We have strong ties with the Philippines on so many levels. Naturally the United States will be reaching out to and dealing with and connecting with all of the nations in the region. So of course.

BRET BAIER: The criticism was that it wasn’t projecting, standing up for Western values in the region.

PRIME MINISTER: That is a matter for the President to raise with his counterpart at the appropriate time, but the fact remains that it is in the national interest of my country, Australia, and indeed in the national interest of the United Sates to have strong engagement with all of the nations in the Asia Pacific. That includes of course, the Philippines.

BRET BAIER: What keeps you up at night?

PRIME MINISTER: Well there’s plenty to worry about.

(Laughter)

I can tell you, it’s very important to give this advice to everybody, very important if you’ve got big decisions to make, to make sure you get your sleep. But no, in terms of the national security issues, the two that are most pressing at the moment are in my mind, the North Korean situation – which we’ve spoken about – and also the continued battle to destroy the terrorists in the Middle East and indeed, around the world. This struggle against terrorism, against this violent extremism, manifested not exclusively but substantially by ISIL or Daesh, the destruction of ISIL in the field is of vital importance for our safety at home in Australia, and here in the United States and right around the world.

BRET BAIER: Mr Prime Minister, thanks for the time.

PRIME MINISTER: Thank you. 

PRIME MINISTER: Well thank you all very much for being here for this breakfast. We’ve got such a lot to discuss. I’m delighted that there’s so many great Australians, captains of industry, here in New York. I’m looking at two great exports in front of me, Robert Thomson and James Gorman alone. And of course Greg Norman, who was getting a lot of sympathy last night with the crutches.

GREG NORMAN: I still couldn’t get a handicap.

(Laughter)

PRIME MINISTER: Well the President figured that he might be competitive as long as you’re stuck with the crutches. But anyway, still, we’ve got our Budget next week. As you know, we have had a long 26-year run of uninterrupted economic growth in Australia. We’ve gone through a remarkable transition from an unprecedented, once-in-a-generation, perhaps almost once-in-a-century, mining boom. Because of the diversified nature of our economy we did not have the hard landing that many economists predicted. I’m sure none from Morgan Stanley, James.

(Laughter)

They would’ve nailed it every time, I’m sure. But anyway, the key thing for us is to maintain that strong economic growth. We see that as being founded on that combination of open markets, strong infrastructure investment, strong incentives for private investment. As you know, we’re watching with great interest the President’s agenda to cut business taxes here in the United States. Of course that’s part of a global trend. We’ve already succeeded in cutting company tax for companies with turnover of $50 million or less. We have the rest of our business Enterprise Tax Plan reform agenda underway.

So, a lot to do, a big Budget next week. We are absolutely committed to maintaining that strong economic growth, a diversified economy, open markets, the trade with our region which has done so much, because of its diversification, to give us that continued growth despite the downturn, inevitable, in the mining investment boom. So, a lot to discuss and thank you very much again James for hosting us here for this breakfast.New Your

PRIME MINISTER: Well, we’ve had a very good meeting here this morning, here at Morgan Stanley, which it’s head of course, James Gorman, is an Australian. We’ve had a good discussion with a number of business leaders about investment in Australia, about the state of the global economy, prospects for growth both here and in our region. A very constructive discussion.

I have to say that the contribution Australians make to business and enterprise in the United States is very, very strong.

Of course we saw that last night too at that wonderful, warm evening, where we acknowledged and thanked those great veterans of the Battle of the Coral Sea, that battle where Australian and American sailors and aviators turned the tide of war.

To see those men of the Royal Australian Navy, the United States Navy, standing there, so proud, receiving the thanks of everybody in that room and all Australians and Americans, for what they did when they were just teenagers – 17, 18 years of age. Those guys turned the tide, saved Australia, turned the tide of war and began the return of the United States and her allies, Australia and others, to recapture the territories taken so dramatically by the Japanese in the first part of the war.

So it was a wonderful, warm evening, for the thanks and recognition of those veterans. Of course it was great for Lucy and I to meet with the President and Mrs Trump. Again, that was more family than formal. It was a very, very warm encounter and a great evening.

JOURNALIST: Could you please just flesh out what you spoke about with the President? The main topics and what you discussed?

PRIME MINISTER: We discussed a whole range of issues. Of course, the big national security issues – North Korea, the Middle East in particular. We talked about the relationship, the alliance, we talked about its history and its strength, its enduring strength. We talked about the economy. We talked about trade and investment. We talked about tax. So it was a good, broad discussion. We talked about immigration, as the President acknowledged. So it was a good, broad discussion.

But above all, it was an opportunity for us to get to know each other face-to-face. We have backgrounds that are similar in many respects, businessmen that found our way into politics. We’ve also got a lot of friends in common too. So it was very, very warm – as I said – more family than formal.

JOURNALIST: On immigration, did he ask your advice on how Australia has managed to stop the boats? And on Islamic State, did you discuss the timeline to defeat the terrorists in the Middle East?

PRIME MINISTER: Well can I just say on migration, Australia’s policies are well understood. Of course, we talk about our immigration policies which are built on a foundation of saying that it is the sovereign right of the Australian Government – elected by the Australian people – to decide who comes to Australia and how long they stay and the terms and conditions on which they stay. So that is our sovereign right.

We are the most successful multicultural society in the world. That is my claim as Australia’s Prime Minister. The foundation of that is a migration system in which the Australian people have confidence that their Government is completely in control of. That is what we’ve established and that is what we maintain and that is what’s understood by others.

But we don’t ever presume to advise or counsel other countries on how they should manage their affairs. That is a matter for them. But the principles of our immigration policies and our border policies are very, very well understood.

JOURNALIST: The President has some interest in adopting some similar policies?

PRIME MINISTER: Well again, I’m not going to buy into American domestic policy. But our policies, our approaches are very well understood and have been successful.

JOURNALIST: What was the message from CEOs here to you Mr Prime Minister, about Mr Trump’s economic agenda?

PRIME MINISTER: The move to reduce business taxes is really welcomed. This is an absolute, proven recipe for stronger economic growth. You know, this is why of course in Australia we have an Enterprise Tax Plan where we are reducing company tax progressively from where it is or has been, from 30 per cent down to 25 per cent. As you know, we’ve secured passage through the Senate of legislation to reduce tax down to 25 per cent over time for companies with turnovers of $50 million a year or less. Collectively, that includes firms, businesses, that employ around half the Australian workforce, the private sector workforce. So that’s a substantial reform. We’ve got further to go.

Now, why do we seek to reduce company tax? Why does the Trump administration seek to reduce company tax? It’s pretty simple. If you increase the return on investment, you get more investment. If you get more investment, you get more employment.

That is why, right around the world, business taxes have been reduced. You’ve seen what’s happened in the UK, it’s heading down to 18 per cent. You’ve seen what’s happening with candidate Macron in the French presidential elections, promising to reduce company tax even further than is already underway in France. Around the world, it’s a global trend to reduce business taxes in order to promote more investment and hence more employment.

JOURNALIST: Prime Minister, you’re heading back for the Budget, and on just a domestic matter, reports in the weekend papers that you’re going to put a ban on television gambling advertising up until 8:30 at night and five minutes before and after the start of play. Is that true and do you expect a big blowback from the sporting codes and the TV networks?

PRIME MINISTER: Well, parents around Australia will be delighted when they know that during football matches, cricket matches and live sporting events before 8:30, there will be no more gambling ads. You know, there are no gambling ads allowed before 8:30 generally, but there’s been an exception for a long time, of live sporting events.

Now what has been, what is being announced, is an agreement to ban gambling ads prior to 8:30 during live sporting events other than racing. This will be welcomed by Australian parents right around the country.

JOURNALIST: Did the President discuss with you increasing Australia’s military commitment in the Middle East as we really try to obliterate Islamic State?

PRIME MINISTER: We didn’t discuss any changes to our respective commitments, or at least to Australia’s commitment in the Middle East. As you know, we have a very intense engagement with the United States on these matters. We have the third-largest foreign commitment to the battle against ISIL in the Middle East. Our forces are working together and integrated intimately, as I saw when I visited our forces in Iraq and Afghanistan just in the lead-up to Anzac Day. I thanked them for their services and I met US commanders there. The cooperation, collaboration, could not be closer.

JOURNALIST: Prime Minister, can you give us an indication of the differences between a meeting with President Obama and a President Turnbull (sic)?

PRIME MINISTER: Well the two Presidents are obviously very different men. But I have been delighted and honoured to meet with each of them. The relationship between Australia and the United States, the alliance, is so strong, so enduring. It’s built on millions of people-to-people ties. It is family and in many respects of course, it is a family matter.

It is built on almost a century of shared service and sacrifice. You know from the mud of the Battle of Hamel in 1918, when American forces were led into battle by the great Australian General John Monash, to victory again, another battle that started to turn the tide of war. From then through to the waters of the Coral Sea to the sands of the Middle East today, Australians and Americans stand shoulder-to-shoulder, in freedom’s cause, today as their parents and grandparents did before them. As we always will.

Because we are two nations united by a commitment to shared values; freedom, democracy, the rule of law. Values we cherish so much, that we will always be prepared to fight for them. Thank you very much.