US ambassador to Australia Arthur B. Culvahouse has hopes for national interest in China trade deal

Incoming US ambassador Arthur B. Culvahouse says he hopes the White House considers Australia when nutting out trade deal with China.

Incoming United States Ambassador to Australia, Arthur B. Culvahouse. Picture: Gary Ramage

US ambassador to Australia ­Arthur B. Culvahouse says he has his “fingers crossed” that the White House considers the interests of its allies when finalising a trade deal with China amid concerns local exporters could suffer.

But on his first day in a role that had been left vacant since 2016, he took a hard line with China, accusing it of “payday-loan diplomacy” in the South Pacific­.

Mr Culvahouse, who was unable­ to say whether US President Donald Trump would this year make his first visit to Aus­tralia, presented his credentials to Governor-General Peter Cosgrove yesterday. He was then driven back to the US embassy in the Governor-General’s 1970 Rolls-Royce Phantom VI, saying that “riding in Her Majesty’s Rolls-Royce was quite something for a farm boy from Tennessee”.

US Trade Representative Rob­ert­ Lighthizer said on Tuesday that he hoped the US and China were in the “final weeks” of negotiations that could result in a Chinese commitment to make large purchases of American commod­ities. Analysts say such commitments could lead to a smaller market for Australian products.

Mr Culvahouse said Australian officials were being updated on the progress of the talks. “I believe that we are consulting with our allies and they are getting real-time readouts of those negotiations,” he said. “I know your government officials and embassy officials are in close contact with the Secretary of Commerce, Wilbur Ross, and Bob Lightizer.

“I believe and I am hopeful that the concerns and the interests of the Australians are being taken into consideration. But ultima­tely it’s a presidential decis­ion and a decision by my people in Washington, so let’s keep our fingers­ crossed.”

Amid a flurry of visits by US ­officials to the Pacific islands, Mr Culvahouse said America was “stepping up’’ its presence there and hit out at China over loans Beijing’s banks had given to the ­island nations.

“If the money looks attractive and easy upfront, (well) you better read the fine print,” he said.

“I think we already have done a good job, the Australians and the United States and others, in educating targets of that activity.”

He was also asked whether Mr Trump would venture to Australia this year, perhaps after his visit to Osaka for the G20.

“The President has a busy schedule,’’ he said. “I was talking to the White House before I left. That is still an option that’s being considered. I do expect a number of very senior administration officials … to visit Australia this year.”

He said he had been rushed to Canberra before the caretaker ­period ahead of the federal elect­ion, which had cut short his time at “ambassador school”. It showed when he mentioned Canberra’s “Lake Burley Campbell”.