Speech by the Prime Minister of Australia at the International
Press Centre in Brussels on 18 December 1974
I am conscious that my visit to Europe-the first
by an Australian Prime Minister for fifteen
years-coincides with a growing sense of crisis
in international economic affairs. Continuing
high rates of inflation, the threat of emergent
recessionary forces, severe balance of payments
problems for many countries, strains on international
monetary mechanisms and the accentuation
of the problems of the developing countries
constitute pressures of a magnitude and
diversity which the world has not faced since
the war. The European Community is the largest single
trading bloc in the world. The impact of these
developments on the relationships between the
Community and other countries and between
member nations within the Community is of
major significance to all the world's trading
countries. As the Head of Government of a trading
nation of growing significance, I believe
these events demonstrate with unmistakable
force the interdependence of the world's economies.
Such a comment may sound trite. There
are times, however, when restating the obvious
The Prime Minister speaks at the International Press Centre in Brussels.
force, some states-including some states in
Europe-have still to ratify the treaty or make
clear their renunciation of nuclear weapons
development. Australia and Belgium are comparatively small
powers. Remote as we are from each other in
terms of distance, we have a great deal in common.
We are affluent nations in a world of widespread
poverty. We are highly industrialised.
We are devoted to regional co-operation. Our
bilateral trade, though modest in scale, has
grown steadily and exhibits a remarkable balance.
Australia's exports to Belgium in
1973-74 were worth SA59 000000: Belgium's
exports to Australia were worth
$ A57 000000. Australia's ties with Europe
have been strengthened since World War II by a
vast immigration program. It is a reminder to us
that modern civilisation in Australia sprang from
the great tide of European colonisation in the
19th century-a process of colonisation in
which Belgium played her part.
To the north, east and west of Australia there
are many nations which were once parts of
European empires. These links with Europe
have left an enduring mark on the newer
nations of Africa, Asia and the Pacific. Australia,
like many other states in her region, has set her
own firm and independent course in world
affairs. In doing so we acknowledge our historic
and cultural debt to Europe and look to the
nations of Europe for support and collaboration
in overcoming the problems shared by all mankind.
I take heart from the great achievement in
international co-operation we have witnessed
in Europe itself-an achievement in which your
own country has played a lasting and a leading
role.
is required and I believe this is such a time. Each
nation has its definable economic interests, but
the circumstances we face today emphasise the
importance of international co-operation-in
the common good and in the enlightened selfinterest
of all the world's trading nations.
In my discussions with European leaders I shall
indicate-as I have already done with the Prime
Minister of Belgium and President of the Commission-
that:
1. Australia recognises its overriding interest
in the stability of the international economy
and is willing to play its role in restoring
stability and promoting development;
2. Australia has its own specific interests and
objectives in economic matters and intends
to pursue them with vigour and determination;
and
3. Australia recognises the imbalance of
world development and attaches great
importance to the problems of developing
countries.
The pursuit of our interest in the restoration of
economic stability must take account of the
actions of the OPEC countries. The problems of
the western world are those of adjustment to a
new international economy. We are seeing a
redistribution of the world's wealth towards
resource-owning countries. The days are past
when the market value of the world's limited
supply of non-renewable resources-for example,
uranium-could be primarily determined
by the cost of their extraction and transportation-
a view which I know is now held within
the Commission. It is pointless for me not to acknowledge
that our interests are those of a
resource-rich nation. Nevertheless, we trade in
many goods, and across the broad range of our
trade Australia's prosperity depends on the
orderly development of the world economy. The
immediate adjustment processes involved in
the present transition threaten to disrupt our
trade in all areas.
The most pressing and immediate problem we
share with the rest of the world concerns the
strains on the international monetary system
and particularly the problem of recycling
petrodollars. We recognise the urgency and the
seriousness of this sudden development.
Australia has only a limited capacity to contribute
to the solution of this problem, but we stand ready to co-operate to the fullest degree possible.
In my discussions with European leaders I
look forward to broadening my understanding
of their attitudes and intentions in this regard.
There are other areas in which Australia can
make a more significant contribution to international
stability. Since the events of the oil
crisis, all countries have become aware of their
need for secure supplies of essential raw
materials. Australia is richly endowed with
resources. We possess major reserves of coal,
iron ore, bauxite, mineral sands and uranium
and important reserves of lead, zinc, manganese,
nickel and copper. Australia has been and
will continue to be a secure and reliable supplier
of all these commodities. We play a significant
and indeed a growing role in the world trade in
minerals. We shall continue to do so. We have a
reputation for honouring our contracts and we
intend to maintain that reputation. We shall
further develop our mineral resources, including
our energy reserves. We shall be willing
sellers seeking willing buyers. Thus we have
agreed to joint discussions with the Commission
on their needs for uranium and on supplies of
natural and enriched uranium from Australia for
this purpose. Insofar as Australia can contribute
to the stability of world energy supplies, we
shall do so.
We recently announced new developments in
our uranium policy. My Government has not
been prepared to approve further export contracts
because of the unsatisfactory nature of
the market which the Commission acknowledges.
In the meantime, however, in cooperation
with private interests, the Australian
Government intends to establish a uranium
milling plant which we expect will be producing
uranium oxide from 1978. By that time we
hope the market will be sufficiently mature for
the negotiation of new export contracts. We
shall ensure that our traditional trading partners
obtain an equitable share of the uranium we
have for export. This attitude has already been
explained to some of our partners, including
Japan, Italy and the Federal Republic of Germany.
And yesterday we discussed with the
Commission their needs for very substantial additional
supplies of uranium in the 1980' s,
none of which is covered by existing contracts.
The Commission supports, in principle, the
enrichment of part of their additional
requirement in Australia and we look forward to
early talks on this total picture for co-operation
to our mutual advantage. We also stand ready
to discuss in full detail the Commission's
requirements for additional supplies of coal
which could treble the tonnage now being shipped
to Europe from Australia.
Experience in recent years reinforces the Australian
advocacy of international commodity
agreements. We continue to believe that such
agreements are an essential mechanism for
achieving predictable prices and supplies to
purchasers and predictable markets to suppliers.
We continue to seek such commodity
agreements in areas of vital interest to us such
as wheat and sugar. The supplies of both these
commodities are now subject to severe cyclical
strains which we believe international agreements
can mitigate. In those areas where international
agreements do not prove feasible, we
shall seek to negotiate long-term agreements
for agricultural commodities which will guarantee
supplies at fair prices. In these ways
Australia seeks to contribute to the long-term
stability of international commodity markets.
Partly in the context of our support for international
commodity agreements, Australia has
taken an active part in the formation of agreements
on bauxite and tin. We recognise recent
fears about the formation of resourceproducing
cartels. We believe, however, that
such international commodity agreements can
contribute to orderly marketing arrangements
and can be designed to balance the interests of
producers and consumers. We have been
particularly concerned to ensure that this balance
is maintained.
In recent years Australia has adopted a more
open and outgoing approach to international
trade. There has been a natural and permanent
shift in Australia's position, flowing from the
rapid expansion of our mineral exports and our
growing self-sufficiency in certain commodities,
particularly oil. It is true that in recent
months we have had to take measures, in
response to domestic unemployment, which
may be construed as a contrary trend. Nevertheless,
the net effect of our currency appreciation
and tariff reductions has been significant.
By the standards of our history. Australia has
moved into a new era of freedom and openness
in international economic policies. The more I consider the problems of the international
economic order, the morelI am convinced
that a retreat into economic isolationism is
no answer for us or any other nation. The temptation
to adopt an inward-looking and excessively
protective economic stance must be
resisted. Attempts to restrict trade further would
be self-defeating. In the longer term it would
result in a much worse situation for us all. I reiterate
our support for the OECD trade pledge of
May this year. The current world situation
makes it all the more important to ensure that
the forthcoming multi -lateral trade negotiations
are successful and provide the conditions for a
further boost to world trade. The nations of the
world must not allow their immediate problems
to detract from these negotiations, which in
themselves would be an expression of confidence
in the world economy.
In recent years Australia has developed a new
spirit of self-confidence and self-reliance. In
many of its policy decisions my Government has
reflected this development and, I believe, has
helped to shape and guide it. Our sense of
national independence has sharpened and
matured. One of the reasons for this has been
the entry of Britain into the Common Market.
We continue to hope that British membership
will encourage the Community to adopt a more
outward-looking approach to the international
economic scene. In the context of Britain's endeavour
to renegotiate the terms of its membership
of the community, the last thing Australia
is seeking is a restoration of her old-style pref
erential relationship with Britain. In the discussions
with the British on the possibility of arranging
a long-term agreement on the supply
of sugar two months ago, we made it clear that
any such arrangement would need to be made
with the Community or at least have the Coinmunity'sendorsement.
We have successfully
adjusted the pattern of our trade to take account
of British membership. The progress which
Australia had made in recent years in diversifying
its export markets, and the generally strong
demand in most world commodity markets over
the past two years, have considerably reduced
the immediate impact on Australia of the Community's
enlargement.
Our ability to overcome these transitional problems
has reinforced our self -confidence. We are
not concerned to turn back the clock. We regard
any renegotiation of Britain's membership as a
matter for Britain and her European partners.
We will, however, continue to press our own
interests as effectively as we can. We will seek
amendments to those areas of Community policy,
including parts of the common agricultural
policy, which adversely affect Australia. We will
not be appealing to British sentiment but to the
interests of Britain and all her partners in the
Community. I am well aware that in political terms consumers
are not as well organised as producers.
Nevertheless, I would have thought that at a
time of high inflation European countries would
see advantages in seeking cheaper food.
Australia has a particularly efficient farming
community, and I stress the advantages to
Europe of allowing greater access to agricultural
imports. In multi-lateral trade negotiations
Australia will press her objective of reasonable
access to world markets for agricultural products
from countries like Australia. In determining
the concessions we will offer in these negotiations,
we will have one basic considerationthe
willingness of others to negotiate on primary
products. We were disappointed that the outcome
of the Kennedy Round was a concentration
on tariff reductions in the industrial sector.
It is our earnest hope that on this occasion
concessions on agriculture will move in parallel
with those in other areas.
This question cannot be separated from the
wish of European countries to obtain secure
supplies of materials, particularly energy
resources. I take one example of immediate and
pressing concern to Australia, the ban currently
imposed by the Community on imports of beef.
Australia, over some years, has made significant
investments specifically for the supply
of beef to Europe and Japan. Our confidence in
the security of future investments must be
affected by the abrupt manner in which Europe
and Japan have sought to shift the burden of
excessive beef supplies primarily to exporting
nations such as Australia. Are we now expected
to engage in further massive investment in coal,
for example, when our legitimate interests can
be treated with such disdain in other areas? We
are proceeding with our attempts to avoid
further market disruption in beef. We have
proposed that a consultative group be established
within GATT for this purpose and I am hopeful that the Community will lend its support
to this suggestion.
Another area in which there is heightened Australian
awareness of our national interest concerns
the role of overseas capital in our economy.
The extent of European investment in
Australia bears witness to the scope of fruitful
co-operation in this area. We believe that overseas
capital must continue to play a significant
role, in partnership with Australian capital, in
promoting our future economic growth. We
have, however, adopted a more selective approach
than hitherto towards such investment.
We have a firm policy objective of promoting
Australian ownership of our resources and
industries. When my Government took office
68 per cent of our energy resources were controlled
overseas. We could not allow such a
trend to continue. Our new investment policy.
while firm on this point, is being applied in a
pragmatic fashion with each case being considered
on its merits.
I referred at the outset to the problems of
developing countries. These nations have
suffered considerable deterioration in their
terms of trade during recent years. Their already
severe difficulties have become more acute.
Many of the matters on which I have already
touched are relevant in this context. The comments
I have made on Australia's development
of its mineral resources are in accord with the
interests of many developing nations. Many of
our partners in the International Bauxite Association
and those proposing the Association of
Iron Ore Exporting Nations are developing
countries. Australia's desire to broaden the
world's access -to agricultural markets and
stabilise those markets is of great importance to
developing nations. The multi-lateral trade
negotiations must make a special effort to accommodate
their needs.
Australia has a special interest and a special responsibility
in promoting the development of
countries in the Asian and Pacific region. We
welcome the steps which the European community
is taking to promote trade and aid with
our neighbours. In particular, I think of the contribution
made through the United Nations
Emergency Fund to those countries hardest hit
by the energy crisis, the declaration of intent for
Commonwealth Asian countries, the com-
munity's efforts to foster ties with ASEAN, as
well as the possible extension of your Association
arrangements to include, among others,
certain of our neighbours in the South Pacific.
I am glad that periodic consultations, either at
ministerial or senior official level, will be taking
place between Australia and the European
Commission. It is my firm hope that my present
visit to Europe, the consultations which will be
held with the Commission in future the specific
discussions of uranium and coal supplies and
the contacts we shall have with individual
member states of the community will enable
Australia to develop a firm, many-sided and cooperative
relationship with the new Europe.
We regard European economic and political
integration as one of the great historical forward
movements of this century. We see a strong
European Community as an essential pillar of
world-wide economic stability. In this context I
give an assurance that Australia will play its full
and proper role in the resolution of the world's
economic difficulties.