STATEMENT BY THE PRIME MINISTER r-CST-AS3EA* 1 T'ALl" S 17 AUCUST 19177
rnr Speaker, in 1967 Indonesia, Malaysia, othe Philippines, Singapore
and Thailand met and established the association of South East Asian
nations. The principal aims of the association, set forth in the
ASEAN Declaration signed in Bangkok on 8t(-h August, 1967, are to
accelerate the region's economic growth, social progress and cultural
development, and to promote regional peace and stability.
The leaders of the five ASEAN nations undertook to promote active
collaboration and mutual assistance in matters of common interest
in economic, social, cultural, technical and administrative fields.
This undertaking was reaffirmed in the Declaration of ASEAN concord
issued at the end of the first ASEAN Summit Conference held in Bali
last year.
ASEAN leaders recognise that only through interdependence and self--
reliance will they secure peace and stability in the region.
And they have concerted their einLergies to establish the region as
a force for stability and concord.
The five countries have made a significant effort to develop friendly
relations with their neighbours as well as to accommodate the changirng
pattern of involvement of the major powers in South East Asia.
The ASEAN countries have firmly held that ASEAN is not, and should not
be, a security organisation or military pact. Increasingly their
concern has been with the problems of economic development.
This reflects their clear recognition of the very close connection
between economic development and social and political stability.
Coinciding with ASEAN's tenth anniversary, Australia together with
New Zealand and japan received an invitation to meet with the Heads
of Government of ASEAN in Kuala Lumpur on August 6 and 7.
The occasion was of significance: it was only the second time in
which the five leaders had met together and the first at which any
leader of another country had been invited to meet with the five
ASEAN Heads of Government as a group.
The meetings with the ASEAN Heads of Government were of the greatest
value in furthering the strong and friendly ties that have linked
Australia with these five countries for more than three decades.
The meeting demonstrated, at the highest level, our mutual desire
to enhance Australian/ ASEAN co-operation.
Mr. Speaker, Australia strongly supports ASEAN's objective of preventing
domination of the region by any major power and we have a significant
interest in helping to ensure that ASEAN succeeds in its efforts to
generate the economic grow-th and political stability for which it
is striving.
Our relationship with ASEAN is one which will require continuing and.
special attention.
The opportunities which the Kuala Lumoir meeting provided to
discuss policies in an open and direct manner have made many of our
policies better understood, particularly those relating to our
economic and trading positions. 0
The opening meeting between the leaders of the five ASEAN countries,
Japan, New Zealand and myself afforded a useful opportunity for us
to make contact as a group and to exchange views on matters of
common regional concern.
At Australia's suggestion, world economic trends and their implications
for the region were discussed. Matters which were raised included our
common problems of inflation, economic recovery and international
trade.
The good will between the eight countries was most evident. This
good will has the most important long-term implications for the
development of a framework of co-operative, imaginative
and mutually beneficial relations between the countries of ASEAN and
their neighbours.
The meeting the following day between myself and the five ASEAN
Heads of Government was particularly successful and significant.
It established strong foundations for the further development of
relations between Australia and ASEAN.
The ASEAN Heads cf Government raised the question of our trade and
they expressed the strong wish ho'increase their share of trade with
Australia. I emphasised that the balance of trade with ASEAN countries
has moved relatively in ASEAN's'favour since 1970/ 71 from a ratio
of 3.4 1 to 2: 1. The growth rate of imports to Australia
from ASEAN over the last five years has averaged 30 per year and
because of import competition and changing demand patterns, employment
in the Australian T-extiles, Clothing and Footwear industries has
declined from about 160,000 in 1971, to less than 120,000 today.
Given the short term economic difficulties Australia has experienced
over the past few years, there is little prospect of imports
from ASEAN continuing to grow at the rapid rate of the last five
years at the further expense of Australian industry. There will be further
pportanities for ASEAN ' s exports to Australia to increase . wen the eccnomic and
enplovment situation in Australia improves. I believe the ASEAN countries understand
this. And there are opportunities for ASEAN's exports to Australia
to expand by competing with other countries that export to Australia.
ASEAN enjoys only a small share of Australia's imports of textiles
apparel and footwear under 10% of the value of such imports from
Korea, China, Hong Kong and Taiwan combined, and clearly there is
room for improvement in this share.
In discussing the desirability of increasing ASEAN's share of the
Australian import market, it was agreed that an annual ASEAN trade
fair sponsored by Australia and ASEAN, be held in one or other of the State
capitals. The first of these fairs will be held in 1978.
I also emphasised that ASEAN trade opportunities in the Australian
market were heavily dependent on Australia's access to other markets
particularly the E. E. C. for Australia's agricultural products.
Australia's experience -in endeavouring to obtain access to European
markets has. been far from satisfactGory. Many of our agricultural
products have been utterly exc: luded from the E. E. C. by hugh iniport
levies. In 1960, our exports to members of the E. E. C. accounted for
per cent of our totalJ exo~ orts. Now tha: t proportion has been
reduced to 14.8 to a signi~ icant extent because of the rez-trictive
policies of the E. E. C. To make matters worse, artifically stimulated
domestic surpluses in the E. E. C. are being exported subjectL-to
subsidies which frequently change and are often quite exorbitant
disrupting our other traditional markets around the world.
A rcx; ent example is the E. E. C. si-b-sidy or " restitution" on malt.
As from November, the subsidy will increase by more than 30%. And
this arbitrary rise could have very damaging effects on the Australian
malt industry.
The ASEAN members and Australia noted their common interests as
commodity producers.
We expressed our joint concern at the decline in recent years of
the terms of trade against commodity producers and the difficulties
sharp fluctuations in commodity prices have caused producers.
The role Australia has played in commodity agreements for stabilising
world trade was raised and we expressed our support for the concept
of a common fund for commodity trade.
The ASEAN leaders also welcomed the initiative Australia had taken
at the June Commonwealth Heads of Government Meeting in establishing
a Commonwealth task force to consider the part a common fund would
play in commodity price stabilisation.
The ASEAN leaders expressed the hope that the adoption of complementary
trade policies would benefit both ASEAN and Australia. In this
respect they indicated their desire to increase their own
imports from Australia.
There has been some speculation in the press about discriminatory
measures against Australian imports continuing to be applied. I
was assured by the Malaysian Trade Minister, in the presence of the
Malaysian Prime Minister, that discriminatory impediments in the way
of the development of that trade had been removed. The Government
attaches considerable importance to that assurance.
In order that we might discuss mutual trade problems before they
become difficult or acute, I suggested that ASEAN and Australia should
establish better arrangements for consultation on trade matters.
The precise form such consultative machinery might take is still
to be determined. We want arrangements which will be responsive
and can be activated quickly by either side. Our objective is to
have a forum for discussion and identification of problems in all
aspects of trade between us. It was agreed that our foreign ministers
should make appropriate proposals to our respective governments
at the earliest opportunity so that the proposed new arrangements can
be established.
In looking at ways in which we could promote closer economic
cooperation, we agreed on the need to establish a sound basis of
knowledge from which a long term economic relationship between ASEAN
and Australia would be developed.
4-.
To that end we proposed and will finance a joint ASEAN/ Australia
research project, its success will require a major mutual effort0
It is envisaged that it will -take the form of an independent research
team in each of our six countries worki ng together and assembling
cooperatively the basic material, ideas and proposals for greater
cooperationa. It will not be expected to bring quick results. But it will give us
a reliable foundation on which to build a long term economic relationship
Another matter which was raised was the basis upon which Australian
import quotas are issued. A rev7' iew Of the principles involved has now been
undertakzen and details will be announced shortly.
At the post ASEAN talks Australia also announced a significant
expansion in the size of Australia's aid programme to ASEAN countries,
and several measures aimed at improving its quality. These proposals
are indicative of our positive interest in the economic development
of the region.
They can be briefly summarised. Australia will contribute an
additional $ 10 million to the ASEAN/ Australia economic cooperative
programme. We have increased our forward commitment for total
bilateral aid to the five ASEAN countries by $ 90 million to $ 250
million. In order to improve the quality of our aid we will untie
it further to allow increased procurcment cf materials and equipment
from within the ASEAN region. We wili also fund some local
costs and enter into co-financing arrangements with international
organisations, where this is considered appropriate by the recipient
country.
The ASEAN leaders sought Australian assistance in developing five
industrial projects which ASEAN is promoting, and the Australian
Government confirmed that it would contribute to those projects
within our available resources and capacities as the projects become
more clearly defined. It is envisaged that our assistance will
take the form of feasibility studies, technical training, design
and construction work, and possibly assistance in the development
of infrastructure. Discussions at official level will be held about
the five industrial projects when appropriate.
The ASEAN leaders were also interested in our policy on Australian
investment overseas. I indicated that the Australian Government
welcomed investment overseas where this contributed to the economic
and social development of the countries concerned, but at the present time we
would have difficulties with investment which involved little more than
the transfer of operations to other countries with a consequent
loss of jobs in Australia. Because of our willingness to encourage
Australian investment in the ASEAN countries, an ASEAN suggestion
that we sponsor an ASEAN/ Australia investment seminar was accepted.
It is envisaged that this will be a major seminar based on the
experience of one which was held most successfully earlier this
year between the European community and ASEAN.
Whilst in Kuala Lumpur I also had the opportunity of having
particularly useful talks with the Prime Minister of Japan,
Mr. Fukuda. A number of matters of significance in our bilateral
relationship were discussed, including the importance Australia
attaches to stability in trade.
Australia seeks predictable and growing access to the Japanese
market for agricultural products on a stable basis. As to Australian
beef exports to Japan, I pointed out to the Japanese Prime MLinister
that the present arrangement of negotiating beef quotas every six
months was disruptive to the beef industry's ability to operate
effectively. It should be possible to devise a system which
both affoids reasonable prc~ tection to the Japanese beef industry
and gives more predictable and stable access to the Japanese market.
Mr. Fukuda agreed that our officials should work together closely
to devise a system which would better serve the needs of stability.
our officials are expected to meet shortly in Japan to consider
various alternatives including, for exairple, a fixed base quota
together with a growth factor related, say, to beef consumption in
Japan.
The current state of negotiations on the long term sugar contract
was also raised. I stressed that the security of long term
contracts as bankable documents should not be compromised in any
way. The Government's strong support for the generality of the
case put by CSR to the Japanese refineries and the Government's
belief that CSR had made concessions enough was also emphasised.
Any concessions made up to 1980 ( when the contract expires) would
need to be compensated for by some arrangement after 1980 covering
both price and tonnage. It is the strong desire of the Australian
Government and, Mr. Fukuda indicated, of the Japanese Government
also, that the commercial parties resume meaningful negotiations
and arrive at a prompt and mutually beneficial solution. It is
in the interests of all concerned that the negotiations be brought
to resolution as quickly as possible.
During the three days of discussions, the Philippines and Japan
both raised the subject of uranium with me. Both stressed the
importance of nuclear power to meet their future energy needs and
expressed the hope that Australia would be a future supplier of
uranium to them. They were informed that the Government's decision
on this issue would be taken shortly and that their representations
would be taken into account in reaching that decision.
The ASEAN leaders warmly welcomed the initiatives Australia had
taken and all our discussions were both constructive and helpful.
The ASEAN leaders are playing a positive and progressive role in
the development of our region.
I am confident that as part of this process ASEAN will strengthen
and extend its relations with Australia and other countries.
Australia is concerned to promote the totality of its relationship
With ASEAN. The measures agreed at Kuala Lumpur will add
significantly to this.
Mr. Speaker, I request leave to table the joint statement issued
at the end of my meeting with the ASEAN leaders.
o000oo--