Australian Defense Minister Stephen Smith said Monday Australia can manage both a critically important economic relationship with countries in Asia-Pacific, and growing military ties with the United States.

U.S. secretary of state Hillary Clinton and U.S. defense secretary Robert Gates are visiting Melbourne for the Australia- United State Ministerial (AUSMIN) consultations on Monday.

The talks will focus on the U.S. Force Posture Review, which will examine the U.S. military presence in the Asia-Pacific, and the war in Afghanistan, among other issues.

The posture review could see the United States to have greater use of Australian defense bases, and more joint exercises.

According to Smith, Australia could balance this alliance with the United States and its vital economic relationship with countries in Asia-Pacific, such as India and China.

"We do have productive and good relationships with India and with China, both those relationships are growing, and of course we do have an alliance with the United States," he told ABC TV on Monday.

Australian Greens senator Sarah Hanson-Young said Australia should examine how equal its relationship was with the United States, not only with military ties but also trade.

"There's nothing wrong with becoming closer as long as, as good friends, we treat each other equally and we get mutual benefit from that," she told Sky News on Monday.

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