66/ 106
PRIM MIINISTER'S VISIT TO U. S. AND U. K.
News Coi-ferencc given by the PrimoL . iister. r.
Harold Holt, at the ' aldorf-Astoria Hotel,
New York. July, 1966.
MR. HOLT2: Ladies and Gentlemen, I am not proposing to make any
special statements of policy. WVhen this gathering was mooted
and we were discussing the arrangements in Canberra it was
thought that it might provide a useful round-up opportunity,
particularly for our own Australian press and for any others
sufficiently interested to come alongi I an largely in your
hands and I think that would be the best way to go about our
business if I could turn it over to you for any queries you
might wish to put to me,
Following are the questions then put to the Prime
Minister and his replies:-
Q. vvhat likelihood is there of any immediate increase in
the number of A ustralian troops to Viet Nam?
MR. HOLT: The Australian situation is that Australia is
represented as you may know at a number of different points
in South East Asia. , ie are in Malaysia. , ie are in Ubon in
Thailand. / iea re in both West Malaysia and Borneo. At the time
when the task force component was worked out that fitted in with
the phasing which had been decided for the buildup of our own
regular forces. 4e need many of the regular arrmy people for use
in training the expansion of our military forces. So far as we
have decided the matter, that is the Australian contribution,
and there is no proposal before me that this should be increased.
Q. , ill Australians be released from Malaysia for service
in Viet Nam
MR. HOLT: Service in Malaysia and South Viet Nam is, of course,
rotational it's not just the one group of fellows they have
to be rotated after their tour of duty.
Q. Might some of those serving be transferred to Viet Nam?
MR. HOLT: You mean those in Australia?
Q. No, sir, those released from Malaysia might they
be transferred to Viet Nam?
MR. HOLT: 4e have yet to see how soon they can be released because
I do not regard the issue there as being settled sufficiently
for us to make any significant transfer of forces, but we are
going ahead with our normal movements there subject to further
discussions which might arise as the position clarifies, itself.
What is the Australian Government's attitude towards
the bombing of Hanoi and Haiphong?
MR. HOLT 77e mad~ e it quite clear-that V~ c &, ccopted the judZ ment
that this wis a military necessity I immediately spoke to that
effect in Wvashington and since then my colleagues in Canberra
have confirmed that view.
Q. Earlier today you appeared to critise the handling of
news of the w--ar in Viet Nam. WIould you amplify this please?
MR. HOLT: All Administrations get their share of criticism. No,
I was pointing to the unfortunate consequences I saw of inadequate
presentations. No one objects to criticism provided it is
balanced in the complete coverage of news presentation but is has
seemed to me that the emphasis in the daily reporting here is
understandably on the more dramatic, episodic events. There has
been very little presentation of the raore constructive side of
activities in South Viet Nam itself. From my own knowledge of
them and as I was informed while in South Viet Nam, all the
military forces there are including in their progranu--es civic
action, rural development and village policies. All these are
aimed at assisting the villagers. MLeore significant is the growth
of co-operation amrong the various countries of South East Asia
which have felt the cormaunist threat either, as in the case of
South Korea, in resisting actual aggression or, as in the Thailand
of today, responding to the or essaur's which might produce
infiltration or disturbance inside that country. W, e have been
strengthened and given time in which to build our economil. s,, and
build our defences as a result of the American participation in
South Viet Nam. This, I think, has been inadequately recognised
so far. 1V understand you have invited President Johnson to
visit Australia. Can you tell us his reply?
DIR. HOLT: I get the impression he would like to do this but he
has not been able to indicate anything specific to me. The
invitation is Open and he would be welcome at any time.
Q. Do you consider the bombing of installations in Hanoi
and Haiphong dangerous?
121. HOLT: I do not look on it as seriously as you seem to imply
because I think it is a natural consequence if you are involved
in operations of w . ar. Of all installations I would have thought
them one of the most obvious targets if you were to inhibit the
activities of your enemy. This plan of action was very carefully
thought out and very carefully rehearsed in order to cause the
, minimum damage to the civilian community. The consideration
which the United States has shown in these military operations
goes beyond anything we knew in the second world war where titare
were programmes of mass bombing of civilian communitics designed
either to discourage cr destroy substantial elements of the
civilian population. I think your own government has conducted
itself with restraint, having regard to the ext~ nt of its
involvement in the issue there.
Q. It is re orted that 112 Qonservatives in the British
Parliament have signed a motion officially deploring Prime
Minister Wilson's criticism of the Hanoi-Haiphong bombing
calling it anl abandonment oi the U. S. and I quLote here
11detriental to the safety of American, Australian and New
Zealand troops." Do you wish to comment?
MR. HOLT: No, I do not. I am looking forward to my talks with the
Prime Minister. I am quite certain that that is the most
satisfactory way of getting a clear indication of his own views.
He has his probler,. s and 1 sh ). ll be interested to hear from hin
what he can tell me about the British position.
Q. There are reports that I believe have been published in
Australia that Australian ground troops are going to be sent to
Thailand. Can you tell us anything of this?
MR. HOLT: I am not able to comiment on~ th-is. There are always in
existence military plans directed at contingencies and I am not
iire'n. red to coiment on 9ny ivirticular situatition. Tf we were to
make a statemenLt on a matter of that sort it would be as a
consequence of a Cabinet discussion and I am not here at this
time to make policy statements for the government.
Q. Are you going to discuss with Prime Minister vIilson the
question of sending British troops to Viet Nam?
MR. HOLT: I am not going to speculate on the area of discussion
with Mr. Vdlson. I oto not think he would appreciate it and I
would not appreciate it if somebody did that to me.
Q. Not long ago the press here was subject to a different
criticism of the Viet Nam coverage ' by the National Students
Association. It sent three of its members to Viet Nam on a three
weeks inspection trip. 14hen they returned they were concerned
about the social and other effects of the American presence there.
12. HOL: Well the first thing that struck me when I went to South
Viet Nam was how different the spectacle and the atmosphere VW: rX from
w., hat I would have believed to be the case from the day-to-day
reporting of the episodes. For example in Saigon itself
a city of ,, ore than 2 million people the citizens go about
their occasions seemingly unperturbed or undisturbed by the fact
that this is a theatre close to military operations and subject
itself to some terrorist incidents. Quite obviousli you could
not have something on the scale of American participation with
a country of Viet Nam's limited size without there being some
impact on cornmunity life. J.. ith an army force of this kind you
get pressures on the price level and goods tend to becomescarce
in some directions. There are frictions that build up
between some members of the local community and those of the
military force even if it is only the friction of the fellow who
does not like to see his girl with a GI when he thinks she
should be with him. had a very welcalie presence of Americans
in Australia during the years of the second world war but it
created a few social problems. Thuse things are inevitable but
I did not myself find any atmosphere of resentment to this
although there are political difficulties which have been well
advertised.
The experience I had was one of appreciation for the American
presence. Although political difficulties existed I did not
encounter any atmosphere of anybody wanting to support the
communists. They were agreed that the commnists had to be
resisted and the major part the Arfericans were playing in
producing this result was welcomed.
Q. You have referred to the inadequate presentation by
the American press of the Viet Nam war news.. uould you say the
same criticism applied to the Australian press?
lir. HOLT: It was not a gsreral refcrence I said that in soLie
directions i found this to be the case. I am not a newspaper
man and I never have been, but I have had enough to do with
them over 30 years of public life to have a fair idea of what
they regard as good copy and what they do not. As I said a
little earlier in the day at lunch good news tends to be no news
in the eyes of people who want to present the news in a way
attractive to the readership. But that should not stand in the
way of thoughtful, intelligent -Members of the comnunity setting
about gettin. g the complete picture. Now I think the Europeans
have not caught on to what is emerging in Asia. I think one of
the great exciting stories of history is what is going to happen
there over the next 30 to 40 years and the basis of friendsnip
which is emerging among the countries which have felt themselves
threatened by conmunist expansion. This is leading to cooperative
efforts, to econolaic arrangements, which, taken
together, are likely to have soae stimulating effect throughout
Asia as a whole. That is why I put the point a little earlier
today that thoughtful and intelligent Chinese seeing these things
happen have got to make up their minds whether they modify their
policy so as to be part of this process of economic growth or
whether they are going to remain isolated from it and indeed even
regard it as hostile, . e may be not far from some critical
judgment from that quarter. They must be thinking hard about it.
Q. Are the restrictions on the outfow of capital
( inaudible)
T. M. HOLT: Jeli, fortunately up till now-the volxe of capital
inflow has been well sustained. On the last figures I saw it
looked as though the fiscal year just concluded would have
embraced a record capital inflow to the country. At the time
I brought in the budget last year as Treasurer we thought there
could be a decline as much as dollars Australian 200 million in
our reserves and some commentators were putting the figure at
dollars Australian 400 million and higher in the end result
we got to about a break-even point. The latest figures might
even show us to be up a little on the year. I think the
figures I saw were for June 6 or 8 but they are the latest
igures I have as of now. It was directly a product of an
improved export return despite a drought affected year and the
strength of capital inflow. I said earlier today that in V.
experience if the bait is sufficiently attractive ( I won't
say the fish coue to the bait, but) investuent capital comes
to the attraction. I would confidentlY expect this capital
inflow to be sustained becaLse wc are finding a growing interest.
As I. mentioned earlier today, even sa-c of your own people are
wanting to coae and settle with us.
Undoubtedly the interest arising out of some of these major
projects is capturing the imagination of people who have
inherited an American pioneer tradition.
Q. ( Inaudible) About European aid for South-East Asia.
MR. HOLT: I do not think that Western Europe generally is giving
the assistance it should. There are some 324 countries that
was the last count I had, giving material aid of one kind or
another to South Vietnam. Some, of course, are providing
military aid, but it is broadly true to say that I think the
major effort has been left to the United States of America and
if the United States of America were not doing the job, I do not
think Western Europe could afford to neglect it. In other
words, if we were using the blunt language to which Australians
are sometimes alleged to be given it could be said that
Western Europe is in effect " coasting" on the United States of
America in South-East Asia.
Q. Coasting?
MR. HOLT: Coasting, yes. A sort of word that comes from Wild
Colonial Boy.
~~~ wthin Britain is going to reduce its forces East of Suez
witinthe next few years what plans are you making to fill
this gap?
MR. HOLT: I think Mr. Wilson made his Government's position clear
on that. The forces were built up to meet the confrontation
situation in Malaysia. In Mr. Healey's defence paper and in
subsequent statem. ents the British Government has made it clear
that there would be some reduction of forces once the
confrontation issue was disposed of. I am not stating these
matters in any way that has not already been indicated by a
spokesman for the United Kingdom Government.
Q. ( Inaudible) About United Kingdom cotribution in
South-East Asia.
MR. HOLT: The United Kingdom, as is well known to the United
States, has played a large part in maintaining stability in
South-East Asia. Great Britain had substantial forces thereeven
at the pre-confrontation level they were substantial.
It maintains the Naval Base in Singapore and it has
permanent establishments at Butterworth and elsewhere. it
has Naval Units, Air Force Units and so on. The British
decision was to expand, I thint it was ZS2m. a year in that
area, or that formed part of its planning. I think that
figure is right, but I am drawing on my own recollection..
I think this was after all what part of the argument was about
in the recent dcebate in the Labor Party rooms.
Q. Also inaudible on United Kingdom aid.
MR. HOLT: Well, Britain is quite obviously making a substantial
contribution not only in military sense but in international
aid in various forms. There is a United Kingdom contribution,
for example, to the Asian Development Bank.
I think... of-cottries of Western Europe I an not going to
specify them-that were given the substanital American
assistance that enabled them to get back on their feet
economically after the second world war, and which I believe are
not now carrying their share of the tremendous tasks ahead in
helping to solve the problems facing what amounts to one half
of the human race at the present time... and which will grow into
a bigger proportion in the years ahead.
Q. Are there any avenues for peace in Vietnam which to your
way of thinking have not yet ' been explored?
TMR. HOLT: First of all I believe that the United States Governmient
has pursued every avenue that has come to its thinking. There
have been attem~ pts by a variety of people in a variety of ways and
none of them have so far produced even the slightest encouragement
that a negotiation is likely to occur. As Minister for Labour,
I had many years negotiating with commiunist-led unions and I
have watched since the time of the Berlin Airlift and before, the
way in which co,-imaunists conduct themselves. You sometimes find,
you know, that even when you are in what seems to be a complete
impasse that when they colae to their decision that it is time to
do something about it without regard to logic or to consistency
or what has been said previously, you can get a sudden and quite
dr'amatic switch in the position which had been formerly taken up.
If the communists come to the conclusion that they are backing a
loser by pursuing their present lines of policy thnen I do not
think they wo. lid be too much troubled by whCet had been said
previously in changing their policy.
Q. Are you optimistic for the iimediate future?
1, R. HOLT: I ama always optimistic No, I am not expressing any
early optimism about this. I say it is unpredictable really
but on the way that trends are developing I would say it was
becoming increasingly costly to the future of the corimunist
world to persist with the belligerent and non-co-operative
attitude, that ' Sall. I say that measuring the pluses and
minuses, I think there is an accumulating evidence that the
debits are outweighing whatever credits they feel that they might
be gaining from it. I mean the situation in Africa, the
situation in Asia, the spectacle of the free world going more rapidly
ahead with economic development all these, I think, are factors
which mst be making the cormmunist leadership think hard about
where they are going.
Q. I would like to get back to press coverage... you left
the impression that outside of the European press that there is
no intelligent, thoughtful reporting. Is that what your
impression is?
' MR. HOLT: Not from the press generally. I thought in " ashington
we had a good coverage from the press aidd the points I was
trying to make about the significant developments in South East
Asia were well taken up there. V'le had, I thought, a reasonable
press coverage in San rancisco but it has not been so easy to
get that story across in New York. As I mentioned earlier
today I have seen several stories in which space has been given
to the banner holders without mauch space being given to those
who are trying to point up the encouraging or positive
developments in South East Asia.
1AR. EGGLETON: Mr. Rayment would you like to put your question
again please. I do not think the Prime Minister quite got
the point you were trying to bring out about the coverage
of the news in Viet Nam.
MR. RAYMENT: ( New York Times) Did I take it that you said you
regarded the European press as having a sounder itpproach to
the Viet Nan war coverage?
MR. HOLT: Oh, No, No, I'm not putting that, I think probably
there is less space given in the European press to what I
call the positive and constructive aspects of what is
happening, not only in Viet Nam one of my criticisms is
that too much concentration is being given to what's
happening in Viet Nam to the exclusion or comparative
exclusion of these quite significant developments. What
happened the other da~ y in Seoul was a very significant
development with nine countries getting together there from
around the area running from South Korea, Taiwan, the
Philippines, Thailand and Australia, New Zealand, Japan,
Malaysia this is all sufficiently novel, I think, to be
newsworthy. The Asian Development Bank itself this is a
product of Asian initiative, not the United States, and the
bulk of the capital is being subscribed from within Asia.
The Japanese providing or undertaking to provide a hundhed
million dollars or credits for South Korea is a significant
development. If these things could be interpreted as being
products whether intentionally or otherwise of United States
help in strengthening South East Asia, then the public,
I think, would begin to realise that out of the complex,
difficult, costly and rather confusing business going on in
South Viet Nam there are dividends accruing in other
directions. If you were not in South Viet Nan we would not
be able to go ahead the way that we are. I feel it should
bring encouragement to the people of this country to know that
they are not just spending their money and the cost of lives
fruitlessly. These things are producing a strengthening of
the wtoLe Asian position. I thinI4 they will have some
considerable impact on the way the world moves ahead.