E&OE...............................................
Good afternoon ladies and gentlemen. This morning there was a meeting
of the National Security Committee of Cabinet to review the situation
in Indonesia, and also Australia's response to the further detonation
of nuclear devices by India. And in relation to India, a number of
decisions were taken which I will announce in a moment. But could
I first speak a little about what is occurring in Indonesia.
The stability and the prosperity of Indonesia and the welfare of the
Indonesian people is very important to Australia. We have longstanding
and very close links with that country. We are very concerned about
the welfare of the Indonesian people and the people-to-people links
between our two societies has been a very important and enduring part
of Australian foreign policy now for many decades.
We have contributed generously and appropriately to the IMF package.
Only recently the Foreign Minister announced a further $30 million
of aid to assist the poor of Indonesia and we remain directly concerned
in a very real way with the recovery of the Indonesian economy. The
disturbances which have occurred are deeply disturbing. We are, of
course, saddened by the loss of life. We offer our sympathy for those
relatives of the students who have died. We express the profound hope
that there will be no more violence and no more deaths and we ask
the Government of Indonesia to ensure that the security forces of
that country behave with appropriate restraint and responsibility
and to understand their broader responsibility to the Indonesian community
and to the future of that country.
I welcome the fact that the Defence Minister in Indonesia has announced
that there will be a full inquiry into the disturbances which have
already occurred. I have made it very plain in the public statements
that I have made - our desire that the situation be handled with a
maximum degree of care and restraint and those views, of course, have
been amplified by the Foreign Minister and by the Deputy Prime Minister.
The people of Indonesia are going through a very, very trying and
difficult time. The painful economic adjustment process, which of
necessity has to be undertaken if the Indonesian economy is to recover
in the eyes of the world, will be difficult. The Australian Government
played a very important and influential role in ensuring that the
impositions of the IMF on Indonesia were no greater than necessary
to bring about the economic recovery that is needed. And I am particularly
pleased, in the light of events which have unfortunately occurred,
that Australia was willing to play that role and was successful in
achieving a moderation and a more realistic approach by the International
Monetary Fund and an understanding of the particular problems. We
will, of course, continue to keep a very, very close watch, not only
through our very talented Ambassador in Jakarta, John McCarthy, but
also through numerous other sources of events as they unfold.
Indonesia is a very important friend, a very important neighbour,
our nearest neighbour. The future of that country strategically, politically
and on a people-to- people basis will always be a very integral part
of the conduct of Australia's foreign policy and the links between
our two countries will always be extremely important.
Can I now turn for a moment to the decision of the Indian Government
and the actions of the Indian Government to detonate further nuclear
devices. I want to echo the condemnation that's already been
expressed on behalf of the Government by the Foreign Minister. We
deplore and condemn absolutely what India has done. It is an irresponsible
genuflection to transient domestic political popularity. And what
the Indian Government has done is to play fast and loose with international
safety and security in the interests of a short-term domestic political
game. India's behaviour, of course, has gravely compromised her
previous claims to exercise the role of an international moral policeman.
And I want to say that we are very distressed. We are very concerned
at the implications of what India has done.
And can I also say, looking to the immediate future, that we ask that
the Government of Pakistan display the outmost restraint. We ask that
the Government of Pakistan not respond by tit-for-tat detonation of
nuclear devices. The Foreign Minister has already made representations
to the Pakistan High Commissioner to that effect and I will be communicating
to the Prime Minister of Pakistan today to the same effect. And the
Foreign Minister has also urged the Government of China to exercise
its influence on the Government of Pakistan to avoid a tit-for-tat
detonation of nuclear devices by that Government. The actions already
taken in response to this very negative anachronistic behaviour by
the Indian Government have included the recall of our High Commissioner
in New Delhi for consultations and I understand he will be arriving
in Australia tomorrow.
This morning at the meeting of the National Security Committee, the
Government has decided to take a number of further steps to reinforce
the point that India's behaviour is unacceptable to the international
community and of necessity to Australia. The Government will suspend
defence contacts with India and that will mean that our defence attache
will be withdrawn from New Delhi. That ADF officers training in India
will be withdrawn from India and, likewise, Indian officers training
in Australia will be asked to leave. And all proposed defence related
visits and ship and aircraft visits will also be cancelled. We've
also decided to go a step further and to suspend all non-humanitarian
aid to India. Ministerial and senior official visits will be suspended
and Australia will take all appropriate opportunities and international
forums, including the United Nations and the Conference on Disarmament,
to register Australia's very strong opposition to what has occurred.
We are very, very deeply concerned about the possibility of a nuclear
arms race. Most of the world would have hoped and prayed and thought
that after the signing of the Comprehensive Test Ban Treaty that what
has happened on the Indian sub-continent in recent days, and what
may be in prospect further in future days, would not have been in
contemplation. But unfortunately that has not been the case, and I
do hope that the gathering international protest which transcends
the normal divides on other issues, that gathering international protests
will have some impact on both India and perhaps others who may be
contemplating similar behaviour. It is the most deeply disturbing
development in every sense of those words and I know that I speak
for all Australians -and I am sure that the views of the Opposition
would be very similar to the ones I am expressing - in condemning
unreservedly what has occurred and expressing the hope of the Australian
people, that no retaliatory action is taken by the Government of Pakistan.
JOURNALIST:
Is there a time scale on the sanctions on India?
PRIME MINISTER:
No, not at this stage, no.
JOURNALIST:
Have you decided against it yet, Prime Minister?
PRIME MINISTER:
I beg your pardon?
JOURNALIST:
Have you decided against sanctions yet?
PRIME MINISTER:
Well, the decision that we have taken at the moment we think is appropriate.
It is proportionate to the steps that were taken in relation to the
French nuclear tests. We must bear in mind in these things that our
argument is not with the people of India. Our argument is with the
government of India and we are also very conscious of the fact that
India is a nation that has a very large number of people who are living
in very difficult economic and social circumstances, and we must weigh
those factors up and we must take them into account but we believe
that our response is proportionate. They are the measures that we
believe appropriate at the moment. In these situations you don't
rule things out completely at this stage but I do make the point that
our argument is with the Government of India rather than with the
people of India.
JOURNALIST:
What is Australia's assessment now that the economic crisis of
Indonesia can or can't be resolved without political change and
how do you read the statement in the Jakarta Post this morning from
President Soeharto suggesting he may be ready to stand down?
PRIME MINISTER:
Well, the question of the future government of Indonesia and President
Soeharto's future is a matter for Indonesia. It's a matter
for the Indonesian people, for the processes in Indonesia and as you
will know, Geoffrey, I can't respond to that question without
suggesting that the situation is other than what I have just stated.
It is for the Indonesian people to decide who is the governing authority
in Indonesia. We believe that economic reform is necessary. We have
supported the measures. We have been a good and understanding friend
of the Indonesian people in ensuring a modification of the IMF's
original programme but we equally put the view very strongly that
economic change and economic reform is necessary. Now we leave it
to the Indonesian people and the processes of those forces in Indonesia
that have influence and have authority to decide the people who will
remain in charge of that country. It is not for us to give public
advice to the people of Indonesia about President Soeharto's
position.
JOURNALIST:
Are you seeking to speak to President Soeharto?
PRIME MINISTER:
The day to day communications are matters that one decides from time
to time. At the moment he is on an aircraft, I understand, travelling
back from Cairo. Now the question of whether I speak to him or whether
I write to him and who I speak to in Indonesia is a matter that you
decide from time to time. You don't announce in advance that
you are going to ring a foreign head of government.
JOURNALIST:
Is there a need to look at any further modifications to the reform
package in the light of what's happened.
PRIME MINISTER:
I think it would be unwise to over-react in relation to the reform
package. It was always going to be difficult and it was always going
to be necessary for those who perhaps don't have such a good
understanding of Indonesia in other parts of the world to understand
how difficult it was going to be. And we should have at this time,
and demonstrate at this time, a sympathy and an understanding for
the plight of the Indonesian people and the difficulty through which
Indonesians are now passing. I mean, our relationship is important
beyond the tenure in office of any particular individuals. It's
a people-to-people relationship which is very important to our future.
JOURNALIST:
Doesn't the use of live rounds against protesters in Indonesia
demand at the very least that Australia suspend military contact with
Indonesia?
PRIME MINISTER:
I think it is important, Paul, to look at the medium and longer term
character of the relationship. I think it is also important to not
pre-judge the result of the inquiry that is going to be conducted
in Indonesia. And it is very important in that context that an inquiry
has already been announced and I do urge that that be an open inquiry
with the highest level of probity and transparency so that the facts
of what occurred can be made known to the Indonesian people and to
the rest of the world. And we place a lot of store on that. But at
the present time, we remain a concerned friend of the Indonesian people
and a government and a nation that wants to help the people of that
country through a very very difficult time, respecting Indonesia's
sovereignty and respecting the right of those of influence and the
people of Indonesia to determine the government of Indonesia without
foreign interference.
JOURNALIST:
Do you have a view about the possible impact the situation in Indonesia
could have on our economy?
PRIME MINISTER:
Well, the relationship with Indonesia is more important from a social,
political, regional, and strategic point of view, than from an economic
point of view. I don't want to play down the importance of Indonesia
to Australia, but I am advised that as of this morning it involves
about 2.5% of Australia's total trade with the rest of the world.
Now, that's important, but the other links are even more important,
and you really have to look at the Australian economy as being a discreet
separate entity from the region. Our strengths are self-evident and
whilst they will be influenced by what occurs in the region, the extent
to which we have continued to power ahead and to grow very strongly
and to get our economic house in order, compared with some of the
difficulties other countries have had in the region is a demonstration
that we have stand-alone, discreet, independent, economic strengths
and virtues that are separate from what is happening in our part of
the region and I think that is something that should be well and truly
understood by those around the world who are assessing the Australian
economy.
JOURNALIST:
Prime Minister, given the situation in Indonesia has got a great deal
worse over the last two to three days, are you more concerned now
about the safety of Australian citizens in Indonesia?
PRIME MINISTER:
Well, as always happens in these situations there are proper plans
laid, precautions taken, information communicated. I understand that
there's going to be a re-issuing of the consular warning in relation
to Australians in Indonesia avoiding such things as university campuses.
That is a situation that the embassy is giving very constant and regular
attention to. I don't want to overstate it. I think it is very
important not to see, as tragic and distressing though they are, the
television images as representative of what is occurring in the whole
country, but we will obviously keep that situation under very close
review.
JOURNALIST:
Prime Minister, ACOSS and three of the major churches today in effect
sent a warning out to the Government about the shape of its tax reforms.
Have you heard that warning?
PRIME MINISTER:
Well, I haven't even seen it written, I haven't heard it,
but it will be a great tax package and it will be very fair to low
and middle income earners and I can guarantee to those concerned about
the less well-off in the Australian community that they are not going
to be hurt by this tax package. They in fact are going to be helped,
and it is very important that people wait until they see the package
before they start making declarations about its impact on particular
groups in the community.
I haven't spent something like 15 to 20 years of public life
campaigning and advocating fundamental reform of the Australian taxation
system to arrive at a position, where holding the authority and office
of Prime Minister, I squander the opportunity of achieving that reform
by delivering a package which is unfair to the battlers of Australia.
I understand the economic and political imperatives involved. We need
a new taxation system. I also understand the capacity of some to cynically
exploit the sensitivity people naturally have to change, and I can
assure people right across the spectrum that we will get the balances
in those considerations right. It will be a good package for the battlers.
It will be a package that can't be demonstrated on any measurable
criteria to be unfair to the underprivileged within our community.
I won't have a package that's unfair to the underprivileged,
and I think we'll get the balance right, and I ask those good
men and women who may have said what you tell me they said, to hold
their fire, to await the outcome of the package and I'm sure
they will be very very pleased with what we've produced.
Thank you very much.