Basic Treaty of Friendship and Cooperation

The Basic Treaty of Friendship and Cooperation (nicknamed the NARA Treaty) was a treaty signed between Australia and Japan that established a broad framework of principles to guide and enhance future bilateral relations in the political, economic, cultural and other fields. The treaty is historically significant because it is the first comprehensive treaty of its kind for both countries alike, containing both symbolic and practical provisions which acknowledged indispensable economic ties. The treaty was signed on 16 June 1976 by Prime Minister Malcolm Fraser and Prime Minister Takeo Miki, and entered into force 21 August 1977.

For Japan, the treaty was an essential step for their modern economic development as an emerging power amongst established industrial nations. On the Australian side, the vision was to refashion a politically ambivalent relationship and promote the natural commercial partnership between the countries.

Both sides started from vastly different premises on the nature of the treaty to be negotiated. While Japan insisted on an encompassing Friendship, Commerce and Navigation (FCN) type treaty, Australia preferred bilateral agreements on very specific matters of mutual interest. The primary area of contention during treaty negotiations lay in the retrospective and prospective interpretations of the Most Favoured Nation (MFN) clause that was resolved by formulating a new approach to phrasing. The prolonged period of negotiations constituted an intensive learning process for both sides to resolve a unique set of problems that ultimately produced an equitable and mutually advantageous agreement.