PRESS OFFICE TRANSCRIPT Embargo 6pm. EST1
Interview with Richard Thwaite, Tokyo ABC
21 April 1978
QUESTION: Mr Fraser, what do you hope will be Japan's response
to the propositions you are putting to them?
PRIME MINISTER: I don't think I'm looking for a response in
terms of having hard, practical and firm results coming out
of these discussions. They are against the background of
the broad international situation, ' and also having in mind
very much the major international trade discussions taking
place this year that are involving the developed world and
developing countries, and against our view that there needs
to be success at these talks. We run the risk otherwise of
ending up the year with developed countries fighting amongst
themselves for a greater share of existing markets, a good
deal of disillusion between the developing and developed
countries. The great problem that we all face is how to
expand market opportunities in trade without unleasing renewed.
inflationary pressures. The purpose is to explore every
possible avenue of achieving that.
QUESTION: Are you making specific suggestions yourself on
how that can be done?
PRIME MINISTER: I'm certainly making suggestions about the
trade negotiations taking place, and I think one of the most
important things is to make sure that agriculture remains a
constructive part of those discussions. When these discussions
have taken place in the past, it has generally ended up by the
major industrial nations deciding " agriculture is too hard, so
we' 11 just make some arrangements, some adjustments, which
will help trade in manufactures." If that happens this time
it's not really going to do anything to promote an expansion
of world trade. You've only got to take account of the fact
that with agriculture and commodities excluded, you've got
to exclude the internal EEC trade, because that's not affected
by these matters. The proposals on industrial goods affect
less than 20% of world trade, and then the proposals themselves
are very modest, and they'd end up by being about a half percent
tariff reduction a year over 8 years starting from 1980.
Now I don't believe anyone can really think that that of itself
is going to do much to expand markets and hence to expand
world trade.
QUESTION: The Japanese themselves are very sensitive on the
question of agricultural trade. Have you had any-response
from them at all specifically on agriculture?
PRIME MINISTER: Well we haven't been talking about bilateral
issues. I have a very strong view that Japan believes that
agriculture must be part of the total negotiations', just as
industrial goods should be. But I think in the past the main
stumbling block for that has been European policies.
QUESTION: What kind of market expansion are you really looking for?
/ 2
2.
PRIME MINISTER: Well you're looking for the circumstance in
which markets can expand so that there is work for our
factories, for our mines, for the products of our farms,
and unless that happens there is going to be continuing
high unemployment in many many countries. We're not looking
at this just from the national Australian point of view,
although obviously if you get an expansion of market
opportunities Australia will benefit, all countries will
benefit. And if you don't get that you are left with the
position in which we're arguing about the cut up of existing
markets and that can advantage one country for a time over
another, but it's not going to solve the economic problems
that we all face at the moment.