The region has 48 independent countries and several major extra-regional stakeholders -- China, France, Japan, Russia, the European Union and the United States.

Of all the countries Australia has the largest maritime jurisdiction yet it has no holistic Indian Ocean policy.

Of particular importance, but also neglect, has been Australia's relationship with Indonesia, the Australian Strategic Policy Institute said in its strategy report "Our Western Front: Australia and the Indian Ocean." That relationship is vital to help both countries combat the growing problem of illegal migration and people smuggling that has strained bilateral relations.

The 88-page document warned of the emerging "maritime great game" between India and China within the Indian Ocean as China spreads it naval might. Each country fears being contained by the other. In China's case because India is supported by Japan and the United States.

Australia is in danger of being squeezed out strategically in the area as India promotes itself as the dominant power of the region.

The authors of the ASPI report, Sam Bateman and Anthony Bergin, said Australia's military should establish a naval operating base in the northwest of the country because of the growing importance and value of infrastructure developments in that area.

They also suggested that "more regular air and surface patrols should be undertaken around the Cocos Islands. The Western Australian state government might consider creating a portfolio for Indian Ocean region affairs."

As soon as possible the Australian government should set up an Indian Ocean conference, similar to the International Forum on the Indian Ocean Region meeting nearly 15 years ago in Perth.

"This would be an important building block for Australian initiatives and for actions by the region as a whole," the report said.

The meeting should include stakeholders as well as the region's countries. It should also invite private non-government organizations and academic participation and natural resources sector firms "because of the size of energy and mining developments in the region, the private sector has an important contribution to make."

Importantly, the conference shouldn't be limited to traditional military and national security issues.

"However in the longer-term, and if current strategic trends continue, the region may have to consider a forum where these issues, including confidence-building measures and preventive diplomacy, might be addressed," the report said.

The agenda for a new meeting should cover energy issues, ocean and fisheries management, natural hazard mitigation and marine scientific research.

The last Perth Conference, the International Forum on the Indian Ocean Region, was in June 1995. Before that conference the Australian Minister for Foreign Affairs Gareth Evans set out Australia's desire for more regional cooperation. At a speech to the International Center in New Delhi in May 1995 he said that all countries, not just Australia, were to blame for not promoting cooperation.

"Part of this comparative neglect of the concept of Indian Ocean regional policy and regional institution-building, on our part, no less than on that of others, is the fact that the region is so diffuse," he said.

"It contains sovereign states ranging in size from India with over 900 million people, to Seychelles with less than 80,000 people. Economies range in size from over $250 billion for our two countries, to less than $400 million for the Maldives and Comoros."

Evans said he hoped that the following month's Perth meeting would act as a stimulus to develop more dialogue, scheduled meetings and eventual bilateral and regional agreements.

But one of the major related outcomes of the forum was the foundation of a new regional tourism body, the Indian Ocean Tourism Organization.

Australia has been a member of the Indian Ocean Rim-Association for Regional Cooperation. The 18 member states focus on free-trade issues and investment channels to expand intra-region trade.

The ASPI is an independent, non-partisan policy institute set up 10 years ago by the government to advise on defense and strategic policy choices. The federal government provides the majority of its funding but income is earned also from projects such as commissioned research and speaking fees at international public events.

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