. PRESS OFFICE TRANSCRIPT 4L MAY 1979
PRIME MINISTER'S PRESS CONFERENCE: MANILA, PHILIPPINES
PRIME MINISTER
Ladies and gentlemen, this is the conclusion of what I believe
to be a very successful visit to the Philippines. A rapport
has been established between the President and myself, between
our two governments. Two agreements have been signed and that
was not expected. That was not planned when I was first
asked to come here, but the discussions and relationship
has developed to the extent that that has been possible.
We welcome therefore the signature of the double taxation
agreement, but in particular the ratification of the
trade agreement between the Philippines and Australia which
as you know had been negotiated sometime ago but not signed.
The fact that it now has, is a significant step in Philippines-
Australian relations. We've had wide-ranging discussions on
other matters, security matters, matters of international
affairs, and again, there is an identity of interest which
comes out of our common geography in this part of the world.
This morning I've also had very useful discussions with
Prime Minister Ohira, in particular in relation to the
forthcoming Tokyo Summit meeting. We were discussing the
sorts of matters which would be important to that meeting.
Publicly, I would like to say how much I appreciate the
President's hospitality and his Government's hospitality during
this week. I would be happy to try and answer whatever
questions you might have.
QUESTION Mr. Prime Minister, how do you react to the Singapore statement
( on air fares) at the general debate on UNCTAD?
PRIME MINISTER
There has been agreement in Kuala Lump ur, and you
will see from the communique that has been signed that the
Philippines and Australia are both welcoming that there
has been a negotiated compromise in relation to that, and
the words in the communique I think are warmly recognising the
fact that a compromise has been reached, as has to be so in
matters of this kind.
QUESTION Could you please give us some details on the uranium supply
arrangements... ( inaudible). / 2
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PRIME MINISTER
Yes. We have sigied the bilateral safeguards agreement
between the Philippines and Australia and that opens the way
for a supply agreement. Shortly, both countries ought to be
in a position to negotiate a supply agreement. We will be a
reliable supplier of uranium to the Philippines.
QUEST ION
. Volumes?
PRIME MINISTER
We haven't discussed volumes, but I have no. reason to doubt that
we could meet the Philippines requirements.
QUESTION Regarding the 1975 Trade Agreement signed with the Philippines
power, entered into with the Philippines, what is the ( inaudible)
now? Is there any possibility of getting it into operation?
Will it be operational soon? The 1975 Trade Agreement with the
Philippines? PRIME MINISTER
The Trade Agreement? It has now been ratified so it is now
operative. QUESTION It has already been ratified?
PRIME MINISTER
Yes. We did that this morning. This hadnot been planned before
I came here, but it was possible because of the progress made
at the talks between the President and myself;. There are
copies of the trade agreement available for those who would
like to see it.
QUESTION I am from Malaysia. Yesterday in your speech you made an
attack on protectionism. Could you please tell this press
conference what measures your country is taking to reduce the
level of protectionism in Australia. ( Inaudible)... . ASEAN
countries that... ( inaudible).
PRIME MINISTER
I think the best way of looking at this is to look at what
has happened to ASEAN's exports into Australia and indeed the
developing countries as a whole their exports to Australia.
Over the last many, many years our imports fromi developing
countries and from ASEAN have been growing at something over
percent a year. That is a very substantial rate of growth.
I concede that it started from a low base, but 30 percent,
built upon 30 percent year after year, adds up to a signficant
growth indeed. As a result of the Kuala Lumpur meeting between
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PRIME MINISTER ( continued)
ASEAN I-eads of Government and myself a couple of years ago,
we have established an ASEAN-Australia consultative committee. It's an
early warning device and that gives us permanent machinery
in which we will be enabled to discuss trade problems. Under
the trade treaty signed with the Philippines there will be
special consultative arrangements between the Philippines and
Australia in addition. Last year I opened at ASEAN-Australia
Trade Fair which flowed out of an initiative from the Kuala
Lumpur meeting. That Trade Fair was designed to bring
the products of ASEAN countries more to the notice of
Australian importers. I believe it was a highly successful
Trade Fair and it is something that, on the Australia side,
we are very happy to repeat. The first was held in Sydney.
If it is desired to hold successful trade fairs in other major
cities of Australia well that will certainly have our
cooperation and our support. It is important that ASEAN
exporters get closely in touch with Australian importers because
in some things of course, there is competition between ASEAN
countries themselves, but there is also competition with
similar products from Taiwan, Hong Kong and Korea. Therefore
to the maxium extent that ASEAN can develop a close relationship
with Australian entrepreneurs and Australian importers, the
better then will ASEAN countries do in the Australian market.
But the real basis of it is of course is that ASEAN's exports
to Australia have been growing very rapidly and if you take
the sensitive items textiles, apparel and footwear if the
United States, Europe and Japan bought on a per capita basis
the same value of imports as we do in Australia, then the
ASEAN countries alone would be exporting an extra $ 1,000 million
worth of goods a year. I think the Australian record in these
matters is a good one.
QUESTION What is the extent of Australia's development aid in the
Philippines and other ASEAN countries, and what specific role
does Australia have in bringing about basic elements of
the Common Fund?
PRIME MINISTER
We play a signficant role in the Asian Development Bank. I
think the two largest single aid projects which we are
supporting are both in the Philippines and Australia aid is
spread through many countries of South East Asia but also
in the Pacific. We have a particular relationship with
Papua New Guinea and a very large part of Australia's aid
does go to Papua New Guinea because of the particular relationship
that we have with Papua New Guinea. I think you would understand
the reasons for that. I believe that Australia has played
a significant role in bringing about agreement in relation to
the Common Fund, because up to 18 or so months ago the " B Group"
countries had a rigid position Group 77 had a rigid position
the two sides weren't really meeting. Their ideas weren't
touching each other. We believe, from our own experience
as a commodity exporter that sensible devised commodity
arrangements can work, can be beneficial to producer countries
and also to consumer countries. Because the Australian economy 4
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PRIME MINISTER
at early times was very much dependent upon the fortunes of
two or three commodities what, meat in particular, and wooland
the prices of those commodities used to fluctuate
enormously, we can well understand the difficulties that
developing countries are placed in under present circumstances.
So we decided that we should no longer about 18 months
ago no longer stick rigidly with the " B Group" position.
We announced our own position, our forthright support for
the Fund and we started negotiations we started to try and
flexibility into the negotiations so that people would move
their positions. In the Commonwealth of Nations and in
regional forums, at a meeting last New Year in Jamaica,
we pressed very strongly for the acceptance of a Common Fund.
Now the Fund is a reality. I hope as many countries as possible
will support the second window operations but also, it is
not good enough as I indicated in a speech to UNCTAD to
rest upon the existence of a Common Fund. There must be full
participation of developed and developing countries, of the
producer countries and consumer countries with an interest in
the trade, in various commodity agreements. It was in that
context that I gently mentioned my disappointment with the
policies of Europe in being unwilling so far to enter the
International Sugar Agreement.
QUESTION
Yesterday at a press conference the French Minister for the
Economy, who is also the current President of the EEC Council
of Ministers, rejected the criticism you made of the EEC in
your speech to UNCTAD as entirely unjustified. He said further
that he felt you were biased and obsessive about the EEC
and suggested that you could have made some comments about
Japan's huge trade surplus and its, what he claimed, poor
performance in absorbing imports. I wonder if you feel
whether your comments about the EEC at the UNCTAD session,
your criticism, was ill-advised.
PRIME MINISTER
Not at all. I am fully responsible for what I say but it
was obviously said on advice. It was said advisedly. I think
that it ought to be understood that Japan has made a very
significant effort over recent times to reduce those trade
surpluses. I think that in the month of March, for example,
there might even have been a complete turn-around. That's
not necessarily a long-term trend, but it is bearing fruit
and Japan has been making very significant efforts to increase
its imports in a number of commodities, in a number of goods.
But I think really the thrust of what I was saying is
verified by some International MNonetary Fund direction of trade
figures they are not Australian figures, they are not
European figures, they are International Monetary Fund figureswhich
indicate that if you take out the OPEC countries,
because they are a special case and if you take out the
newly industrialised countries because they are also in a sense a
special case they are the countries that are doing better
and then you take the other Third World countries which are
the countries most in need of assistance, countries most in
PRIME MINISTER ( continued)
need of assistance, countries most in need of access to
markets, you will then find that Europe's imports from
these other Third World countries has fallen between 1971 and
1977 as a percentage of their total imports., fallen, as
a percentage of their total imports over that period. It
has fallen I haven't got the precise figures but it has
also fallen for the Lome countries over the same period.
Now if the borne convention was operating as one would
have hoped one would have expected that the imports of other
Third World countries, the ones most in need of
assistance, would have increased as a proportion of the
Community's total imports. But it hasn't. It has fallen.
That I think just reinforces the need for an examination of
these particular issues. I ought to say for the completeness
of the answer that partly as a result of measures that we
have taken Australia's imports from other Third World countries
as a percentage of our total imports, has in fact increased.
QUESTION
May we know the results of your talks with Prime Minister Ohira?
PRIME MINISTER
The discussions with Prime Minister Ohira were very fruitful
and useful and forthright. The discussions were held in particular
to discuss broad international matters and matters that will
be raised at the forthcoming Summit meeting. The Prime Minister
had put to us that he would appreciate Australia's views on the
kinds of matters that ought to be raised and dealt with by the
major countries when they meet in that Summit meeting.
We, on the broader issues, emphasised the need to maintain
the fight against inflation and emphasised the linkage that that
has with the trading opportunities for the Third World; the
linkage that it has with the North/ South relationship, because
inflation,, as I indicated at UNCTAD, drives countries toward
protectionism and diminishes the quantity and volume of trade
and diminishes the possibility of better access for developing
countries. In addition, we spoke of the need to, in the
post-MTN context, to keep up the pressure against renewed
and increased forms of proctionism. I emphasised the need
to give support to the positive adjustment policies supported
by the OECD. I think. somnetimes there might be some misunderstanding
of the nature of those policies, and that might come from
the name. But broadly, the positive adjustment policies supported
by the OECD, are exhorting__ the countri -es not to do certain
things, not to go into wage subsidies,-not to subsidise
inefficient industries, not to put up additional barriers to
trade, to let the adjustment process work without undue
government interference. I put the point of view that a
re-affirmation of support for those principles would be useful,.
especially if it was followed by positive action by the
countries that most vigorously do not support, in their
national policies,, have not supported the OECD view. I also
raised the question of selective safeguards and again pointed
to the dangers inherent in that. We discussed energy matters
and I expressed an understanding of the problems of energy
importing Countries, their need for security, their need for
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PRIME MINISTER ( continued)
stability in energy supplies and have of course committed
Australia, as has been consistent with our policy for a
number of years, to be a reliable and stable supplier of
energy sources. I pointed to our supplies of coal, future
supplies of uranium, and present and future natural gas
developments which could be very significant, for example,
in giving, providing, Japan and other countries with
reliable and steady sources of supply not of oil because
we don't have oil to export but other forms of energy which
would give a degree of independence from some OPEC policies.
QUEST ION
Yesterday in your speech you mentioned a review mechanism
with regards to protectionism. Could you give us some mnore information
aboutthis. Will it be a proposal ( inaudible). My other question
is you mentioned the important role of UNCTAD in the North/ South
Dialogue. Are you going to propose any high level commission
for strengthening the UNCTAD Secretariat, like some countries
would like to do and ( inaudible)...
PRIME MINISTER
I haven't got specific proposals to make about strengthening
the UNCTAD Secretariat but if proposals are made Australia would
certainly want to examine them in a constructive way, because
as I indicated UNCTAD is a very necessary forum. If it did..-not
exist there would have to be something like it to fill its
purpose. It would have to be devised forthwith and it
obviously needs to be able to undertake its task with reasonable
but adequate resources. I think in relation to protectionism,
I was principally saying that once the MTN is over it is not
good enough just to sit back and relax, because in the kind
of trading world that we are living in, the protectionist
pressures are always present I think in all countries and it
is going to be necessary for national governments to pursue
to the maximum extent they can open trading policies and to
maintain and to enhance the fight against, especially against,
non-tariff measures of protection which have proliferated over
the last ten years. I did not envisage any specific
machanism for doing that, there are already international forums
with a capacity for that but the national decisions of the
major countries at the Tokyo Summit can obviously of course have
a very real impact because from the very nature of the size of
their economies, what they do affects all of us.
QUESTION Did Mr. Ohira raise with you Australia's ( inaudible) on
commodity exports and ( inaudible) possible changes to Australia's
( inaudible) guidelines... ( inaudible).
PRIME MINISTER
In relation to foreign investment we wanted to make sure that
there would be opportunities for Japan and I said that the
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PRIME MINISTER ( continued)
policy is designed to encourage overseas investment, but
traditionally most overseas investment has come from
Britain or from the United States more recently from a
number of other countries including Japan and we welcome
the increasing interest from coun1tries such as Japan in
broadening the base of overseas investment in Australia.
But I also pointed out that if some countries started
earlier and nothing can alter that situation, they are
already there, but that we would welcome Japanese involvement,
especially in partnership with Australian concerns in
resource exploration and development. That's a matter that
can be taken up by officials and on a commercial
basis. On the question of exports, it was put to me that Australia
should not introduce measures that would be designed to
inhibit the export of coal or of minerals, and I indicated
that on the contrary our policies were designed to encourage
and enhance the export of raw materials from Australia, but
that from time to time there had been some particular
marketing problems. But our approach had not been to meet
those problems when they did exist by restrictions on exports
but by sensible negotiation on a commercial basis. Quite
plainly, the thrust of our policies is to encourage
exports at the best price available on a commercial basis.
QUESTION
You said that ( inaudible)... attempting the development of
energy capability of the Philippines Government and you said
that you would be a reliable and ( inaudible). Could you tell
us, do you extend the same capacity to other ASEAN countries.
Would you ( inaudible).., bilateral agreement between you,
( inaudible) and other ASEAN countries?
PRIME. MINISTER
Our general export policies are ones which apply to all
countries. We do, obviously, seek a particularly close
relationship with ASEAN countries and we welcome in particular
the individual trade treaty which has now been ratified between
the Philippines and Australia. But our committment to be a
reliable supplier of energy is one it's not just a bilateral
policy it's a general policy. Now, I need to make one
qualification in relation to that. Where trade in uranium is
involved, our policy does require a bilateral safeguards
treaty between Australia and the country concerned. Such a
treaty has been signed with the Philippines and if other
countries wish to buy Australian uranium, it would be necessary
to negotiate that bilateral safeguards treaty. But you would
understand the reasons for that; it is as a backup to the
international safeguards to prevent proliferation and it is
of vast importance to all of us that trade in uranium as a
supply of energy for peaceful purposes, must be conducted in
a way that is not only safe but which demonstrates to other
countries not party to the actual sale that the trade is being
conducted in a safe way that supports the general world
non-proliferation objective. Our policies arc general ones and
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PRIME MINISTER ( continued)
and we will be pursuing them in those ways. To say that
the policies are general is not in any sense to limit the
importance or reduce the importance of a bilateral trade
treaty on which we do place a great deal of importance
with the Philippines, other trade treaties with many other
countries, and they commit the governments and entrepenuers
in both countries to do what they can to advance mutual
trade between countries. I think that is a very desirable
objective and again, one of the reasons I am particularly
glad that the treaty negotiated with the Philippines a long while
ago has now been ratified. I think it clearly is a mark of
a new phase, a new stage, in the development of Philippine
Australian relations. I think that is as a result of
policies that we have been applying over recent times--policies
which have resulted, as I indicated, in substantial increases
in exports from ASEAN countries the Philippine figure is
better than the average, it is over 45 percent a year increase
in exports from the Philippines to Australia.-As a result
of those policies, we've advanced our relationship to the
stage where that treaty can be ratified with great
confidence for the future.
QUESTION The joint communique mentioned that the two leaders noted
the ( inaudible) between the U. S. and China ( inaudible)
Since Taiwan is one of the major trading partner of Australia...
do you have any ( inaudible).
PRIME MINISTER
That is a matter that is under actual examination at the
moment. We do need to indicate also that the previous
Australian government normalised its relationship with
Peking in a somewhat different way from the United States, so
therefore that establishes a different set of circumstances.
There is trade between Taiwan and Australia. Those'arrangements
can be are under a degree of examination because our
objective is to enhance and encourage trade between Australia
and all countries. 000---