AU -L7 t
FOR PRESS 31 DECEMBER 1978
NEW YEAR'S MESSAGE
On Christmas Day I left Australia to discuss world trade and
economic issues with the leaders of a diverse group of prominent
developed and developing nations from North America, South America,
Europe, Africa and the Caribbean.
The meeting was convened by the Prime Minister of Jamaica,
Mr Michael Manley, a leading figure in the Commonwealth and
of the developing nations.
It was also attended by Chancellor Schmidt of the Federal Republic
of Germany; President Obansanjo of Nigeria, Africa's largest
nation; Pierre Trudeau, Prime M4inister of Canada; President Peres
of Venezuela; and Prime Minister Nordli of Norway, a country at
the forefront of Official Development Assistance for the
developing world.
The leaders of this diverse, yet broadly representative group
of nations met because of the need to depart from the rigid
structure so common now in international discussion. We wanted
to discuss openly and plainly the international economic problems
of our time how to achieve a greater rate of progress for the
developing countries, how to tackle the issue of market growth,
how to ensure greater access to markets and how to stabilize
international commodity trade upon which most of the developing
world depend for thelir livelihood and well-being.
These areas concern Australia. While we are a relatively
advanced industrial nation we have much interest in common
with the developing world.
We are a member of a developing region. We share with many
developing nations the fact that we are a significant exporter
of commodities.
All of us are significantly affected by the level and grow,% th of
world trade.
The Jamaica meeting might well have been the first at which
leaders of representative developed and developing nations informally
addressed themselves to world economic problems. / 2
Significantly, they first and foremost jointly recognized in
the clearest possible terms that inflation was the common
enemy and that even greater efforts needed to be made to
overcome its corrosive effects.
All our experiences bore out the fact that inflation undermined
investment and consumer confidence and directly increased
unemployment.
We were particularly concerned that inflation reduces the growth
of domestic markets and hinders expansion of world trade.
Further, it generates domestic pressures for increased protection,
further reducing trade and access to markets. Inflation limits
expansion of world trade which is so sorely needed if world
economic recovery is to be assured and poverty throughout the
world is to be reduced.
Discussions at Jamaica clearly brought out the interdependence
between the economic health of the advanced industrial nations
and the opportunities for increased growth in the developing
world. All the leaders at Jamaica agreed that if greater progress is
to be made in improving access to markets, if we are to generate
new market growth and if we are to raise the standard of living
throughout the world we must vigorously combat inflation, both
nationally and internationally.
We also examined at length the methods by which further progress
could be made in the establishment of a Common Fund designed
to stabilize prices in commodities, and the prospects for a
successful and balanced outcome to the MTN.
Further, we gave attention to improving international financial
institutions, particularly those designed to assist developing
nations in protecting their balance of payments situations from
significant falls in commodity prices.
This was not a negotiating conference. We met to discuss matters
informally. Consequently, there was no commitment to rigid
pre-conceived positions.
There was an exploration and exchange of ideas and an increase
of understanding between the diverse countries represented at
the conference.
Even though some highly sensitive issues were raised they were
always discussed openly and with tolerance.
All the government leaders felt the meeting was highly successful
and that it would be beneficial for other groups of developed
and developing nations to meet in a similar way to exchange views
and to achieve a better understanding of problems. / 3
2
3
Negotiations on a Common Fund will be resumed at a United Nations
conference in March 1979, and I am confident that the Jamaica
meeting will enable all of us to contribute better to a
successful resolution of outstanding Common Fund issues.
The Jamaica meeting was an encouraging note on which to end 1978.
It demonstrated political leaders' tolerance, understanding and
willingness to go beyond politics and promote interest common
to all mankind.
I am certain that all Australians will join me in hoping that
this approach will be carried in to the new year.
Some people believe that knocking is part of the Australian
tradition. Today, we are faced with national and international issues which
are of 3reat moral and priactical significance. If we set
aside politics and work together we can advance our nation's
welfare and c-etribute greatly to the resolution of international
issues of fundamental importance. 000---