Embargo: 7.00 p. m.
/ 7-
F ILE
FOR PRESS 26 NOVEMBER 1978
ELECTORATE TALK
It has been a long standing rule in our home that during
Christmas time the Fraser family stays together. That rule
has been rigorously applied by Tamie over the years.
Unfortunately, it has had to go by the board this year.
On Christmas Day I will be leaving for Jamaica for an important
international conference.
The Heads of Government from countries including Germany, Canada,
Venezuela, Nigeria and Norway will meet in Jamaica to talk over
world trade and commodity trade problems. As Prime Minister
I will represent Australia at that meeting.
A few days later I will be meeting with President Carter in
Washington to look at a wide range of world economic problems.
The meeting in Jamaica underscores the significance that developed
and developing countries place in particular on the stability
of international trade in comrhodities. Agricultural
and other commodities are of vital importance to almost every
developing country. For countries producing commodities, unstable
prices and markets have hit hard at their export earnings and
growth prospects. This has been disastrous for developing
countries. For purchasing countries, boom-then-bust commodity
markets have entailed sudden and often massive price swings.
This frequently sets off irreversible wage rises and sets in
train longer term inflationary pressures.
Clearly then, it is in the interests of both producers and
consumers that there be stable commodity trade. The Australian
Government believes strongly that a well-managed Common Fund can
help achieve this goal.
Australia, in fact, through representations in world forums over
the past 2 years, has led the way in attempting to bring about
agreement between developed and developing nations on the question
of a Common Fund.
Two senior Australian officials have recently completed talks
in the United States with the aim of further developing the
Common Fund concept. Currently, we are involved in negotiations
in Geneva on the many complex issues involved in the setting up
of such a fund. It is too early to now say whether agreement
on the fund will emerge. Australia would be most concerned at any
stalemate in the negotiations. / 2
Australia believes that agreements for individual commodities
with assistance from a Common Fund can introduce greater
stability into world trade and to the incomes of developing
countries We earnestly look for an early resolution to the
outsanding questions.
The broader question of the state of international trade also
remains of paramount concern for the Government. The continued
failure of the major trading blocs to deal with agricultural
protectionism and the yielding to pressures for increased
protectionism in other areas pose one of the most testing
challenges for world leaders.
This challenge is all the more pointed because it comes at a
time when the western world continues to battle with the twin
problems of high unemployment and high inflation.
The Multilateral Trade Negotiations have been in progress for
some years. If these discussions lead to new world trading
arrangements, they will certainly set the pattern for international
trade for decades ahead.
A number of countries are now working for a conclusion for some
time in December. The negotiations were originally due to
finish in July, they were thent scheduled to end next month.
A number of countries are now working to conclude the negotiations
then, but expect that the final result would still be subject
to ratification by the Europpan Council of Ministers and by the
United States Congress some time early in 1979. That objective
might still be on the hopeful side.
Australia is taking an active part in the negotiations.
Given our dependence on world trade, and the current international
trading environment, it is in Australia's interest that the
negotiations be successful. Yet, significant differences still
persist. We can only hope that, during the next few weeks,
the major trading blocs will demonstrate a real commitment
to achieving a fairer and more rational trading system. This will
require further concession to be made.
We are all watching their actions over the next few weeks,
trusting that the many assurances they have given will be
reflected in the final outcome of the negotiations.
Australia while recognising the limits of our influence on world
economic affairs will continue to press our case with vigour
and reason. As a Government, this is a responsibility we can
never neglect.