J,,! AUSTA8
PRIME MINISTER aN I0? A
FOR MEDIA SUNDAY 11\~
ELECTORATE TALK
For the past week Australia has been host to Mr. Li. Xiannian,
Vice-Premier of China.
He leaves tomorrow for New Zealand.
Against the recent background of worrying international developments
in Afghanistan, Iran and Indo-China, it was heartening to receive
Mr. Li and to review with satisfaction the progress of Australia's
relations with China.
In the 1960s China was in the turmoil of its Cultural Revolution.
Mr. Li was amongst those of China's leaders who were criticised
and who suffered during that Cultural Revolution.
Now, he is number three in a government which wants to put the
Cultural Revolution behind it.
Today China is a great and proud nation. She is committed to a
program of reconstruction and modernisation.
China is drawing on Japan, the United States, Western Europe and
Australia f or trade, technology, investment and other economic
co-operation.
In our discussions, Mr. Li conveyed to me China's desire to
co-operate with us and with our major allies not only in these
areas but also on the major international political problems.
I welcomed this.
China considers that the threat to global stability is Soviet
policies and expansionist activities.
The Soviet Union has been resisted in North Asia and in Western
Europe and thus has brought pressure to bear southward in Afghanistan.
Mr. Li and I agreed that, together with the Western powers and
Japan, we should: work to prevent any further advance by the Soviet
Union; continue to press for Soviet withdrawal from Afghanistan;
and continue to press for a Vietnamese withdrawal from Kampuchea.
A decade ago Australia's relations with China did not go beyond
some trading links.
Today, our developing relationship with China is rapidly moving
us towards a relationship similar to that which we have established
with Japan.
China is our fifth largest market and we are China's fourth
largest source of imports-
We have established an important economic interdependence.
While Mr. Li was in Canbexrra we were also able to announce a
further sale of sugar to China 150,000 tonnes for delivery
between May and September this year.
This is the largest ever block sale of Australian sugar to China
and will take our sugar deliveries there this year to a record
figure in excess of 280,0100 tonnes.
Our main export, however, to China remains wheat.
Now, we are selling increasing quantities of iron ore.
We are the sole supplier of iron ore for a new major steel plant
at Baoshan outside Shanghai.,
per cent of the producrt of the Baoshan plant is for China,
per cent for Japan.
In this and other ways our relations. witEh China and Japan will
become increasingly linked.
China and Australia also have common interests in our approach
to the world.-
Many Australians have visited China.
I am sure they would share my belief that, in spite of the cultural
differences, a great breadth of friendship and understanding is
being achieved.
During the visit a science and technology agreement was signed.
Mr. Li also proposed that we negotiate a cultural agreement.
I welcome that proposal aind -hope that an agreement will be signed
soon.
We have welcomed other Chinese leaders to Australia in the past
but Mr. Li is the most senior to come here.
Our discussions reflected the new pragmatism in China and the
degree of confii. dence with which China's new policies are being
pursued. I believe China will continue on this course, to the benefit of
the Chinese people.
China thus remains a priority in our foreign relations, and my
discussions with Mr. Li in the past week have provided a basis
for continued consolidation and growth in that relationship.
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