OFFICIALS have welcomed further signs that Australia's sometimes rocky relationship with Malaysia is on the mend, with Malaysian Prime Minister Dr Mahathir Mohamad saying this week he saw no reason Australia could not become a member of his proposed East Asian Economic Caucus (EAEC).
Dr Mahathir, who has been trying to establish his EAEC proposal in the face of opposition from Australia and the United States, has previously staunchly maintained that Australia could not join.
But his latest comments, in an interview with The Australian, contain something of a mixed message.
Although he appears to offer a hand of friendship, Dr Mahathir makes it clear he does not believe Australia has yet earned a place in the Asian club.
This view is rejected by the Australian Government which believes its intensive diplomacy over the past few years - including its Cambodian and Asia Pacific Economic Co-operation (APEC) initiatives - have established its credentials.
One senior Australian official said yesterday that although the comments may be more symbolic than substantive, they did indicate Dr Mahathir 'recognises the bilateral relationship has moved to a new and better plain'.