Abbott and Obama sign agreement on US forces in Australia

(Transcript from SBS World News Radio)

The Prime Minister's first meeting with the US President featured talks on security, with a focus on the Asia-Pacific.

President Obama says he values Australia's assessment of potential flashpoints in the region.

And the two leaders have signed a legal agreement covering the US Marines in Darwin - and paving the way for more US forces in Australia.

SBS Chief Political Correspondent Karen Middleton reports.

(Click on the audio tab above to hear the full report)

It was the political equivalent of a first date.

Hosting Prime Minister Tony Abbott, United States President Barack Obama spoke more of the nation than the man.

"There are a handful of countries in the world that we always know we can count on, not just because they share our values, but we know we can count on them because they've got real capacity. Australia is one of those countries. We share foundational values about liberal democracies and human rights, and a world view that's governed by international law and norms. And Aussies know how to fight, and I like having them in a foxhole if we're in trouble. So I can't think of a better partner."

Tony Abbott replied in kind.

"I want to assure the President that Australia will be an utterly dependable ally of the United States. The United States has had to bear many burdens, many burdens. The United States has paid a very high price to secure freedom and prosperity for many countries, not just itself. And the United States should never have to do all that work on its own."

The two leaders have signed a legal agreement covering US Marines in Darwin - with possible future expansion involving Australian Navy and Air Force bases.

Mr Obama thanked Mr Abbott for increasing defence spending to share the security load.

"We don't have a better friend in the world, as well as the Asia Pacific region, than Australia. They are a treaty ally. We cooperate on a whole range of issues. Historically, there hasn't been a fight that the United States was in that Australia wasn't standing shoulder to shoulder with us."

Australia was controversially dubbed America's "deputy sheriff" in the past.

Privately, the Americans say Australia is the best "watcher" of South-East Asia.

Tony Abbott doesn't disagree.

"I think we have a tendency as Australians to underestimate what we can do. I think we have a tendency to downplay our own significance. Now I don't want to pretend that we're more significant than we are. Nevertheless we are a pretty substantial country."

Mr Obama was likely less grateful for Tony Abbott's past descriptions of him - too left-leaning and lacking charisma and substance.

But Mr Abbott was apologetic.

"This was a good meeting as I think it was always going to be a good meeting. 6.33 Sure I was guilty of a bit of loose commentary a couple of years ago. I shouldn't have. 40 And I don't intend to do it again"

Their hour of Oval Office talks was their third encounter, the first as leaders.

Mr Abbott did bring gifts - including something for the Hawaiian surf -- a custom-made easy-riding longboard, complete with presidential seal.

"Which I hope might henceforth be dubbed Surfboard One and hope might be seen off Waikiki Beach in the not too distant future. 01 He was saying notwithstanding his time in Hawaii, he'd never really mastered the art of board riding but he was looking forward to it."

One American official joked the president was 'more a short-board' guy.

By White House standards, this was a no-frills visit.

But Tony Abbott has got what he really needs - time with the man who'll be in the Oval Office for the rest of his first term.

He'll visit Australia in November for the G-20 summit in Brisbane.

Climate change will be discussed - billed as 'energy efficiency'.

The President's spokesman, Jay Carney, put his case on the issue.

"They talked about the importance of confronting climate change. President Obama emphasised the need for ambitious domestic climate policies as the basis of a strong international response. The United States will continue to work with Australia to advance climate change and energy efficiency solutions."

They still disagree on how to cut carbon emissions.

Unlike Tony Abbott, Barack Obama favours carbon trading.

Instead, the Australian PM has talked up his fuel excise rise - as an environmental measure.