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Australia will lobby regional leaders to form an Asian Union, to include the United States, China and India.
The Prime Minister this month proposed an Asia-Pacific community to develop habits of co-operation and to avoid "succumbing to the perception that future conflict within our region may somehow be inevitable".
Senator McCain's lead adviser on Asia, Mike Green, said that while the Republican nominee supports the concept, "it's a mistake to set up something like this and give a 'pass' on democracy".
"I don't think Kevin Rudd is afraid to articulate this part of the vision. It would be a mistake to try to be more Asian than the Asians and to embrace the values-neutral language the Chinese are comfortable with."
Mr Rudd did not mention the promotion of democracy or shared values in his speech proposing the community. It is a condition that nations such as China, Vietnam and Burma would be unlikely to accept.
The outgoing Bush Administration nevertheless has given Mr Rudd's proposal its initial approval.