I always like to see what is going on in Australia.

ELEANOR HALL: The Foreign Minister Stephen Smith says Australia will keep a close eye on the $25 million it's pledged to the Afghan Government to help in disarming the Taliban.

Australia is one of the first nations to contribute to a new fund that was set up by 70 countries meeting in London overnight to discuss Afghanistan's future.

More than $150 million was pledged but Australia along with other nations has demanded oversight of the fund to ensure that it's not mismanaged.

Our Europe correspondent Emma Alberici spoke to Australia's Foreign Minister Stephen Smith after the meeting.

STEPHEN SMITH: I've indicated $50 million for the Afghan Reconstruction Fund, for the building of infrastructure and the like done through the World Bank; and $25 million for the new Peace and Reintegration Fund because there has to be in Afghanistan a political rapprochement, a political settlement and a reintegration into mainstream Afghan society of those people who are happy to eschew violence, lay down their arms and comply with the Afghan Constitution.

EMMA ALBERICI: What makes you think that the Taliban are willing to do that?

STEPHEN SMITH: Well we know from all our advice - and it's not just Australia it's the international community, the UN - that there are very many people in Afghanistan who run with or fight with the Taliban who are not ideologically committed. They're not on an international jihad. They're not part of global international terrorism. They just see no other way of life or role for themselves.

If they can be shown that there's a better future for them, their families and their country, employment opportunities, provision of services, and they're willing and happy to lay down their arms, comply with the Afghan Constitution, resolve any grievances through peaceful and democratic means then they can form part of mainstream Afghan society.

EMMA ALBERICI: Are you comfortable with paying people one day who yesterday were trying to kill Australian troops?

STEPHEN SMITH: It's not a matter of giving money to those people directly or changing the paymaster. When you try and end any conflict you can't end any conflict just by military solution alone. There always has to carry with it a civilian or a political rapprochement as well. And that's what needs to be effected here.

We want the Afghan Government and the Afghan nation and the Afghan people to take responsibility for security matters, to take responsibility for capacity building, to take responsibility for winning a nation and winning the peace.

That can't be done by use of military force alone. It has to be done in a way which also includes political rapprochement, political reconciliation and reintegration back into mainstream society of those people who currently do support the Taliban.

But there's a qualitative difference between a hardcore Al Qaeda associated terrorist and someone who sees no alternative road for themselves or route for themselves and their family because of current circumstances in Afghanistan.

EMMA ALBERICI: And how does Australia establish which one is which?

STEPHEN SMITH: Well it's not a matter of Australia establishing that. This is a project established by the Afghanistan Government.

We have said that we are prepared to make a contribution to it but we want to be involved in the governance arrangements. We want to be involved in oversight of the administration of the fund. And the same is true of the international community.

EMMA ALBERICI: Hamid Karzai wasn't able to run clean elections. Do you trust him with the administration of this money?

STEPHEN SMITH: Well I've made the point both before the Afghan election and after the Afghan election that whoever emerged from the Afghan election had to make substantial progress on governance, on corruption, anti-narcotics and the like.

We saw the commitment from President Karzai in his inauguration speech and we saw those commitments reaffirmed today by him and his ministers.

This is not a trust fund that will be administered personally by President Karzai. It'll, the details will be worked through by the Government of Afghan, by President Karzai and his Ministers and his Government; oversight and involvement from the United Nations officers, from the international community.

It's a quite simple, straightforward choice. You either have the view that the only solution in Afghanistan is a military one or it is use of military and combat forces to ensure peace and security but then resolve grievances through building a nation and a political rapprochement. And that's reflected by the decisions made by the conference today generally and in respect of the Peace and Reintegration Trust Fund.

ELEANOR HALL: That's the Foreign Minister Stephen Smith speaking in London to our Europe correspondent Emma Alberici.