of the CER-AFTA linkage. The Government's approach to freer and more open trade and investment in the region through APEC, and globally through the WTO, reflects our conviction that liberalisation is vital for the region's - and Australia's - future. It will enable more efficient exploitation of comparative advantage in the region. It will improve resource allocation. And, most importantly, it will improve the quality of life for millions of citizens throughout the region. PART TWO: Enhancing Regional Security Beyond pursuing the tangible benefits of economic liberalisation the second key element of the Government's regional policy has been the steps it has taken to improve Australia's security and the strategic environment in which we pursue our interests. The post-Cold War era has brought challenges as well as opportunities. The regional security environment is now more fluid, complex and uncertain. A fundamental consideration for the Asia Pacific security outlook will be the evolution of relationships between the region's major powers - the United States, China, Japan, Russia and, in the longer term, India. The future shape of the Asia Pacific's security architecture is not yet settled, but it is possible to see a pattern emerging. While it might not often be said publicly by countries in the region, there is, I think, widespread support for continuing United States' strategic engagement in the Asia Pacific. The United States has a vital role in helping to stabilise regional security. Its presence strengthens regional countries' confidence in their security - in effect helping to