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FOR PRESS SAT. 9 OCTOBER 1.976
ADDRESS AT THE SPECIAL SESSION OF THE HOUSE OF THE
PEOPLE'S REPRESENTATIVES OF THE REPUBLIC OF INDONESIA
I am delighted to be here in Indonesia, at the invitation of
President Soeharto, during my first year of office as
Prime Minister of Australia.
I am grateful for the honour you have extended to me, and
through me to the Australian Government and peop. e, by your
invitation to address you th-is morning. I am especially
grateful as I believe that you have opened your present
sitting early to allow me to do so.
I am pleased to have the opportunity, : n addition to my
important discussions with the President and other
Government leaders, to meet with other representatives of the
Indonesian people.
Let me say to you at the outset that it is a fundamental
foreign policy objective of the Australian Government to
consolidate, to strengthen, and to develop further in the years
ahead, a close, cordial and cooperative relationship
between Australian and Indonesia. I personally place
the highest importance on a stable and soundly based friendship
bet:; een our two countries. Let me stress too that this
basic objective, has, I believe, the strong support of
the overwhelming majority of the Australian people.
As a nation of 130 million people, with a rich cultural background
and vast natural resources, strategically placed between
the Indian and the Pacific Oceans, Indonesia is an important
nation in global terms.
We are neighbours by virtue of geography. But the quality of
that relationship is the result of a commitment on both our
parts to foster that well-established and mature relationship
which has grown up a relationship which can contribute
much to a peaceful and stable South East Asian region.
Our two countries are very different in culture and history.
Australia is a relatively developed continent of European
origin and cultural traditions. Your country is a developing
island ch: ian with its own deeply rooted culture. These very
differences between oir two societies make possible rich and
mutually valuable relationships. / 2
Despite the obvious differences in our two countries
we have a number of interests in common. We both have
fundamental interests in maintaining the independence and
territorial integrity of our countries. We both seek to advance
the prosperity and further development of our countries
to encourage conditions in which our people can build
a decent life for themselves and their children.
Both Australia and Indonesia share an important interest in
stability in South East Asia. We both wish to keep great
power competition out of the region, or at least to ensure
that if there is competition it is limited to peaceful
competition. We both have an important interest in a world
economic environment which provides opportunities for
all nations to develop their trade and grow in prosperity.
A stable and prosperous Indonesia and a stable and prosperous
Australia can make a major contribution to the stability and
prosperity of the region as a whole.
The recorded history of our contacts goes back for a long time,
although it must be said that for large parts of this period,
we remained rather remote neighbours. Your early
seamen knew of Australia when it was still a mythical land to the
Europeans and the explorer Matthew Flinders exchanged friendly
greetings with a party of Makassar men voyaging in search of
trade in 1802.
The events of the Second World War served to bring home to
Australians the importance of Indonesia as our closest
neighbour. In July 1947 Australia de facto recognised
the Republican Government of Indonesia. The Australian
Foreign Minister at that time, Dr Evatt, worked to mobilise
international opinion on behalf of Indonesia. The
conditions were established for a transfer of sovereignty from the
Dutch to the Republic of Indonesia on 27 December 1949.
Australia recognised the new state on the same day.
In a message of congratulations the Australian Prime Minister,
Sir Robert Menzies, stated that as a new neighbour
Australia had a deep and constant interest in the well-being
and prosperity of Indonesia and looked forward to the most
intimate and friendly relations with the new state.
From these historical roots, Australians and Indonesians
have grown to know one another with tolerance and understanding.
Some 2,800 Indonesian students have studied in Australian
universities and colleges, with the help of Australian Government
scholarships provided under the Colombo Plan. During the
last ten years, a further 2,000 private students came to
Australia. They have learnt to know us well and we have learnt
about your country from them. I hope they have also
learnt to become good engineers, and teachers and doctors.
Almost 900, including private students, are with us at the
present time.
With the growing awareness in Australia that our progress is
linked with the progress of our neighbours, the South East
Asian region has become a focus oF Australia's ' international
cultural interests. Of the 1.1 cultural agreements which 1
Australia has signed, four are with South East Asian
countries--Indonesia, Singapore, Malaysia and Thailand.
As you will know I have recently visited Japan and China.
These are two major powers to which Australia continues to
attach importance. During my visit to Japan I was seeking
ways to broaden further our relationship beyond our mutual
economic interests and to develop 4i deeper understanding
between Australia and Japan.
On my visit to China I was seeking to expand communication
and understanding between Australia and China after a
generation of lost contact and suspicion. I also wanted
to explore with Chinese leaders their attitude to South East
Asia because it is my belief that it is in everybody's
interests if China can be en,-couraged to widen its cooperation
and its relations with the Governments of South East Asia.
In our relations with Indonesia there has been no generation
of lost contact to bridge as there has been with China.
With Indonesia there has been no tendency-towards excessive
emphasis on our economic links.
Our objective in respect of Indones-ia is to cement the close
relationship and the understanding which already exists after
three decades of patient effort on both sides.
The understanding which we both seek: and the close
cooperative relationship of mutual confidence we both want,
will not just' develop because geographically we are neighbours.
We both need to work towards an irreversible relationship
of soundly-based mutual understanding and friendship.
The development of relationships and contacts in general in
the areas that I have mentioned has not been without
its problems. This was to be expected, given the differences
in our history and our social and cultural backgrounds.
But our shared interests and the will that exists in both
countries to overcome these problems hais enabled us to settle
issuesJ when they have arisen and to concentrate on
improving our understanding of each other.
So far as the Timor question is concerned, I do not wish
to retrace the history of that issue now. The Foreign Minister
has fully and clearly set out our viewpoint on a number of
occasions. All I need to-. say is * that w-. e recognise that it is
a complex question, greatly complicated by the rapid changes
in Portugal and the breakdown in that country's control and
administration of East Timor.
The important thing now is to look to the future, and to
alleviate, so far as possible, the human suffering w-. hich
CiAne with the fighting and associated disruption in the territory.
Auastralia has already indicated that it is prepared to help
with this humanitarian task. We have already made over
A$ 80,000 available through the Indonesian Red Cross and
a further A$ 2S0, OOO will be made available as required. 14
Another aspect of the human suffering caused by the conflict
has been the plight of refugees, Many came to australia, often
without their families. I am pleased that we have agreed
that officials of our two countries will be meeting to discuss
the question to see what should be done.
As I see it, my discussions with your President have provided
us both with the opportunity to air our views and explain our
policy positions openly and frankly. That we have been able
to do so in such a way is the real test of the muturity of
the relationship between Indonesia andiAustralia.
I am conFidetnt that future generations will benefit from the
steady development between our two countries of our enduring
relationships of mutual understanding, respect and friendship.
Australia aindIndonesia share certain vital foreign policy
objectives, especially the objective of a stable and secure
South East Asian region, increasing in prosperity, and the
objective of a widening network of contacts between our two
countries. We have learned that we should net take each other
for-granted.
I would like to see my visit in the context of our close and
cooperative relationship based on mutual respect and common
interest in regional stability and progress.
I have read President Soeharto's address to this body
on 17 August. In that address President Soeharto spoke
of the sacrifices and the triumph of independence and of the
enormous challenge of attaining the ideal of a just and
prosperous society, which by stages will provide progress
and a just and equitable well-being" to all. Ile also spoke
of this society as one in which all groups could work
together in harmony and with mutual respect, as part
of one great national family. Your President pointed
to the real achievements which have already been made
in rural development, in communications, in education,
in health, in family welfare. These achievements have
provided a solid base for future development.
I noted in your President's speech that Indonesia looks to
the generation of sufficient domestic resources to enable
a significant reduction in the role of foreign economic
assistance in the future.
We appreciate your aim ultimately to support your development
from your own resources. Until you feel that that time has
arrived, Australia as a friend and neighbour is certainly
willing to support your efforts through continuing economic
assistance. Our assistance to Indonesia has a high priority in the
allocation of development assistance resources. You will know
that despite continuing pressures on Australia's financial
resources, we have been able to increase development assistance
to Indonesia over the three year period which commenced last June
to A$ 86 million. This is an increase of nearly 25 percent
on the A$ 69 million pledged for the three year period
which ended last June.
Wle appreciate Indonesia' s wish to invest in development
without placing too heavy a burden of debt on future
generations. For our part, Australian assistance to
Indonesia is all in grant form.
The transfer of capital, technology and expertise
between Australia and Indonesia occurs not only at the official
level, but is also promoted by private : investment.
The Indonesian Government has approved 46 Australian proposals
for joint ventures which togcther represent a joint commitment
of some A$ 156 million. I am happy to see that most of
these are working orn a joint venture basis in cooperation
with an Indonesian partner in sectors which are important
to Indonesia's economic development. In our owna development
we. have made it clear to investors in other countries that
joint ventures are particularly welcome.
Economic cooperation between our two countries has also
grown in the area of commodity trade. We are both major
exporters of commodities and this is-a subject on which
vie might usefully exchange views more fully in the future
than we have i-n the past. The Australian economy, like
Indonesia's relies to a large extent on the export of certain
raw materials and we have a common interest in stable world
markets and appropriate prices for these commodities.
Trade is increasing* between our two countries although
there are areas in which each side may need to exercise
measures of regulation to safeguard domestic interests and
employment. In the-field of communications, our
contacts will, I hope, continue to develop.
1 am pleased that our two airlines, Qantas and Garuda, have just
agreed to raise to six the number of flights each airline
operates each week between our two countries. A year ago,
there were only eight frequencies operated by Qantas and Garuda.
Now there are already twelve.
Another of our joint concerns is for the peace and security of
the South East Asian region of which we are both a part.
Defence cooperation with Indonesia has now a considerable
history and dates back for more than a decade. Our interests
have been to strengthen and broaden. ties between our two
countries and the programme of cooperation has progressively
developed s ince the first three year programme.
This programme was given a major impetus when I was Minister
for Defence in 1969. In that time,, the Australian Government
approved a range of detailed proposals to expand our defence
cooperation with Indonesia.
The new proposals included not only a wide variety of
training but also exchange visits of service officers,, staff
colleges anid naval vessels, and notably the Indonesian request
for assistance in the mapping of West Kalimantan the first
large project which Australia undertook in Indonesia, and
one which led to subsequent Mapping Project--covering
Sumatra and Irian Jaya. ./ 6
The previous Australian Government undertook to establish
a second three year programme. This is now being
undertaken by my Government with a budget of A$ 25 million.
The main th-rust of this new prograi-ine is to assist
Indonesia in i. ncreasing its mnaritiimie surveillance capability.
It is a programme which is in our continuing joint interests.
have said enough, I am sure, to leave you in no doubt
about the importance of the Australia/ Indonesia relationship,,
and the desire of my Government to expand and enhance ta
relationship. My Government bases its fundamental approach to relations
with Indonesia on the fact that it is essential for both
nations to maintain a close cooperative and solidly based
relationship with each other.
Indeed, the need to sustain and cultivate such a relationship
has become, after three decades, what might be described,
as a constant factor in our foreign policy. This need is
unlikely to diminish with the years, nor is it likely to
be denied by any political party in Australia. My Government
regards it as one of the most important and substantial strands
in the whole complex web of Australia's foreign relations.
Indoneszia has an important stra" Legic position between -the
Indian anc' the Pacific Oceans. The Malacca and the Sunda
Straits, are major international waterways.
These links between the Oceans are of great significance
to Indonesia, and the), are also of great significance to
many other countries. We believe it is important that
adequate passage rights should be guaranteed through these
waterways. The reassurances your Government has given us on this
point have made it possible for us to support the Indonesian
'? archipelagic concept" during the recent Law of the Sea Conference.
South East Asia, because of proximity and historical associations
has long been an area of close Australian concern and
involvement. Because of this strategic significance, it is
of great concern to many nations. It is in both our
interests that South East Asia should not become in the future
an area of great power rivalry, that relations between states
should be peaceful and cooperative, and that political changre
in South East Asia should not provide occasions for the-assertion
of a dominant role in South East Asia by any country.
The ASEAN proposals for a zone of peace, freedom and neutrality
were born out of a desire to avert the possibility that
South East Asia might become an area of great power rivalry.
The proposals aimed to create conditions in which the countries
of the region can achieve peaceful development, regional harmony an
stability. We strongly support the basic objective of the region to
prevent its domination by any major power.
Australia's policy in the South East Asian region will be
guided by ro.; ponsible and1 respon1sive approach to the region.
By responsible I mean the Australian Government will take
account of the interests of the countries of South East Asia 7
in formulating policics which might affect its ncightbours.
By responsive I mean that we shall be sensitive
to the developmental and other needs of the countries of
ASEAN in their effo-rts to consolidate regional stability.
From Australia's perspective, the creation of ASEAN
an orgnisation which has grown out of the South East Asian
region itself, in response to its own needs and experiencehas
been one of the most important developmenls in South East
Asia to occur in the last decade.
In a relatively short time, ASEAN has shown its vitality.
ASEAN has demonstrated the political will to forge further economic,
social and cultural links among-its m'embers, and at this
year' s Bali conference, the framework was established
which will give firm support to ASEAN's aspirations.
ASEAN undoubtedly has a capacity to develop and make its own
contribution to the stability of the South East Asian region
as a whole.
The changes that have taken place in South East Asia have
inevitably brought a period of uncertainty and anxiety.
Australia would hope that the emergence of new tensions
and division in South East Asia can be avoided. For this
reason,. we welcomed the constructive and forthcoming way
in which the members of ASEAN showed their readiness to
establish friendly -relations with -the new Governments of
Vietnam, Laos, and Cambodia last year. We, for our part,
have contributed aid to recovery in this area. We have
however been disappointed at the lack of understanding certain
Indo-China states have of ASEAN's basic objectives.
We would like to see the three countries o: E Indo-China drawn
into a peaceful and cooperative role in our part of the world.
Australia will seek to play a constructive role in the
reduction of tensions and the resolution of disputes
should they occur.
The South Pacific region, which borders on South East Asia,
is also of major importance to Australia. Wle are glad to see
that the process of decolonisation in much of -the area is now
well advanced. We hope that this process will continue and be
accompanied by moves towards closer cooperation between
the peoples who inhabit the region. In order to play our part
in assisting the countries and territories of the South Pacific
progress in their economic development, my Government has
increased its aid to them.
The new nation of Papua New Guinea occupies an extensive
place in our relations with this part of the world and in
Papua New Guinea, Indonesia and Australia have a mutual neighbour. / 8
My own Government attaches great importance to assisting
PalpuLa New Guinea in the process of nation building.
Indonesia's strong support for P'apua New Guinea's
independence and national unity closely accords with our
own attitude. We welcome too the cooperation which has
developed between You Mid your common neighbour, both before
and especially since Papau New Guinea attained its independence.
The future peaceful development and security of our region will
inevitably be affected by the state of global relations
between the superpowers. It is important that there should be a
relaxation of tensions among the great powers. Unfortunately
great power rivalry is still an element in world politics,
and any shift in the global balance could have far reaching
implications.
There has been a widespread concern, expressed by a number
of countries including the U. S. and all other NATO Powers
that iTI. recent years some nations have built up their
military capabilities beyond uses justified for defensive
purposes. It is clear that some of the military activities
in the Indian Ocean are part of this emerging pattern.
As a result, and while the proposal for a neutral zone in
the Indian Ocean is a noble ideal,, the reality is that it
has little chance of success when viewed against the shift in the
strategic balance in the North West sector of the Ocean.
It would certainly not be in Australia's interests to see
an uncontrolled build-up of naval forces in this region,
and, what we advocate is a policy of balance and restraint
the achievement of a balance at the lowest practical force
levels. It is in this context that my Government has supported the
expansion by the United States of Diego Garcia as a naval facility.
In this way, we would hope to contribute to restoring the balance
in the Indian Ocean.
There are many complex economic problems that face today our
countries domestically and internationally. Amongst these
problems the major one is inflation.
I know that Indonesia has in the past had' to grapple with
inflation on a great scale. Although the policies followed by
your Government under President SoehaIrto's leadership have
reduced your rate of inflation dramatically, I am aware that
the difficulty is not yet fully overcome. In Australia we
have been suffering from the same problem.
The eradication of inflation is one of the most urgent, if
not the most urgent, tasks ofE my own Government.
Internationally and domestically, inflation has had the samie
effects. As business confidence and conditions deteriorated
world trade declined and the economic recession slowly worsened. / 19
The effects have been bad enough in Australia but in certain
respects they were more keenly felt in the more vulnerablc
economies of the developing world.
The fail of commodity trade and prices of commodities reacted
upon exporters of commodities in developing countries
as well as those in developed countries such as Australia.
Investment projects in all countries were held back or
deferred because of the decline in business conditions
and in confidence for the future.
The extent to which our concerns are shared in this field
are reflected in our common membership of certain international
organisations. We are both members of organisations such
as the International Bauxite Association the
Inter-nationIal Tin Council and the Association of
Copper Producing Countries
Australia has long supported the idea of commodity
agreements which could contribute to greater stability -in
international commodity trade. Wle recognise the need for
improvement in the conditions of world commodity trade, and
have been disappointed with past efforts of the international
community in this direction.
Today, there is a call for a changed international economic
system. We believe that there has not been sufficient analysis
of the effects that some contemplated changE! s to the system
might have. The re is a need to understand that the system is
one thing, national policies another. We might find, on
closer analysis, that the problem really lies with national
policies rather than the system. If so, our conclusion must be
that it is policies which require to be charged, not the
international economic system itself.
The kind of analysis I am talking about is of enormous
importance because we must avoid the danger of raising hopes
and expectations which cannot be fulfil1l. ed, If people
believe that all problems can be solved by a simple change to
the system, the failure of such an approach may lead to frustration
and disillusion.
We believe that the essential elements of the present economic
system continue to, hold the greatest hope for economic progress.
The Australian Government supports changes in economic
policies affecting the international. economic system, which are
both practical and viable, which serve the interdependent
interests of both the developed, and the developing, nations.
In our view, fundamental change of the sys; tem inoiy not always
produce the desired results. The problems faced by the contemporary
international economic system, are not basically caused by the
system itself, but by some of the policies nations pursue
within the system. it is these policies which should be changred,
not the system itself. It seems to us that the first
and foremost economic tLask is to s-cLure a return. to stale
growth in real world output and employment.
In this way, developing countries will directly benefit
from the upturn in world economic activity both as a
result of an increase in trade and economic activity
as well as in the improved ability of the
developed countries to provide development assistance.
We hope to see a cooperative approach to efforts to
improve the international economic situation and to fulfil
the aspirations of the developing countries. Your Government
and mine are both pledged to participate fully in the
international negotiations and discussions to this end.
In conclusion, I would like to express my appreciation for
-your invitation to me to address the House of People's
Representatives today. I have greatly appreciated the
generosity of the hospitality we have received, and for the
opportunity to establish on this visit, a warm personal
relationship with your President.
President Soeharto and I have covered a very broad range
of subjects in our discussion. Our talks have been valuable
and very successful. They have affirmed once again, the
strength of the friendship and understanding which exists
between Australia and Indonesia.
I look forward to being able to repay President Soeharto's
hospitality in Australia, and continuing the relationship
which has been established. I believe it will contribute
to the lasting friendship Australia has with your country.
Thank you for your courtesy today.
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