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The Howard Coalition government that took office in March 1996 faced two acute challenges to Australia's long-standing policy of regional engagement: the Asian financial crisis and the humanitarian disaster in East Timor. These events forced a re-evaluation of Australia's regional ties. In particular, Canberra's leadership of the INTERFET intervention in East Timor provoked unease in South-East Asia regarding Australia's ultimate loyalties and intentions, while raising questions domestically about the future configuration and character of the nation's military forces. At the same time, the country confronted ever more exacting demands as global regimes sought to regulate environmental standards, human rights and economic policies. The National Interest in a Global Era: Australia in World Affairs 1996-2000 charts the struggles of policy-makers and the public to come to terms with these challenges. It provides comprehensive accounts of Australia's defence policy, its policies on the environment and human rights, its place in the world economy and its vital bilateral relationships.