Rudd keen for Asia-Pacific alliance

Prime Minister Kevin Rudd has called on Asian and Pacific nations to form a regional alliance similar to the European Union.

Mr Rudd says a strong multilateral body is needed to help the region maintain security, foster trade and respond to natural disasters and terrorism.

He said Asia needs to react quickly to cope with changes brought about by rapid economic growth in the region.

"The European Union does not represent an identikit model of what we would seek to develop in the Asia-Pacific, but what we can learn from Europe is this - it is necessary to take the first step," he said.

But he concedes getting Asian nations together will be much tougher than the task faced by the architects of the European Union last century.

"Our special challenge is that we face a region with a greater diversity in political systems and economic structures, levels of development religious beliefs, languages and cultures than our counterparts in Europe," he said.

"But that should not stop us from thinking big."

The Government will appoint experienced diplomat Richard Woolcott as an envoy to discuss Mr Rudd's idea with other countries.

Mr Rudd says the institution should span the entire Asian-Pacific region including the United States, Japan, China, India and Indonesia.

"The danger in not acting is that we run the risk of succumbing to the perception that future conflict in our region may somehow be inevitable," he said.

Foreign Affairs Minister Stephen Smith says a new alliance will ensure countries like India are no longer neglected by Australia.

"I think there are a range of areas where frankly Australia's relationship with a number of countries or a range of areas has frankly been underdone," he said.

"I mentioned India earlier. I frankly think that Australia's been neglecting its relationship with India for about 30 years."

Opposition foreign affairs spokesman Andrew Robb says the Government is being presumptuous and its first job is to mend damaged ties with countries in the region.

"Once he's (Mr Rudd) demonstrated a capacity to build and maintain and grow strong bilateral relationships with all these countries, repair the damage he's already done with some of these countries, then we can start to have some credentials, look forward and maybe influence the broader architecture that shapes the region," he said.

Mr Rudd will use his visit to Japan and Indonesia next week to lobby Asian nations on the proposal.