-~ TRA1
PRIME MINISTER
FORX MEDIA MONDAY, JUNE 2 1980
ADDRESS AT THE AUSTRALIA-JAPAN SYMPOSIUM
I welcome the opportunity to join this symposium. Its very
convening is evidence of the importance of the relationship
between Australia and Japan.
I congratulate Nihon Keizai Shimbun and the Australian Financial
Review for their support. Both newspapers have made an important
and valuable contribution to the mutal understanding of Japan
and Australia and to the analysis of the direction that our
relationship has taken.
This sympos-ium is being held against a background of international
tension which is particularly manifest in Iran and A'%. ghanistan.
We need to discuss the Australia-Japan relationship against this
background and with the knowledge of major world events.
The current political situation in Iran poses the serious
danger of instability and national fragmentation. It constitutes
a threat, not only to the continued supply of Iranian oil,
but also to the availability of petroleum resources from
other Middle East countries.
The disturbing breakdown in relations between the new regime
in. Iran and the United States a breakdown which culminated
in the Iranian seizure of American hostages in Teheran on
November 7 has generated a new source of tension in an already
unstable and strategically vital region.
In the neighbouring Islamic country of Afghanistan, the brutal
and unprovoked Soviet invasion has brought about a new dimension
to East West relations. For the first time, Soviet main forces
are"' directly involved in military operations against a non-aligned,
third world country. Yet this is happening against the 1972
Soviet-American agree~ ment to declared principles, which emphasised
the need to avoid a breakdown in super power relations by one
power seeking unilateral advantage at the expense of the other.
These basic principles of relations between the U. S. A and U. S. S. R.
were grouped under the concept of detente a word which
specifically implied the lessening of international tensions.
The notion of detente incorporated principles which extended
beyond the avoidance of potential conflict to the belief that
idleological differences should not be an impediment to harmonious
relations. This hope, though still al~ ive in the West, has been
compromised by the behaviour of the Soviet Union. / 2
-2
Those who felt that detente meant the search for security from
nuclear war and the relaxation of political and military tension,
have been forced to recognise that those expectations have not
been matched by reality. In retrospect, it could be argued that
detente gave rise to expectations that were not fully justified.
As far back as September 1968, an authoritative article in
" Pravda" had made it clear that:
" The sovereignty of individual Socialist countries
must not run counter to the interests the world
revolutionary movement".
Subsequently, speaking on Moscow radio on November 12, 1968,
President Brezhnev outlined the extent to which the Soviet Union
would go to protect Socialism, when he said:
establishment and defence of the sovereignty
of states which have embarked along the road to building
Socialism is of particular significance for us Communists".
Here is explicit proof of the Soviet determination that once a
country adopts Socialism, it will be prevented by the Soviet Union
from ever throwing off its shackles. And none of these views have
been modified by detente.
President Brezhev himself has made it clear that detente:
. doesn't in the slightest abolish, nor can it
abolish or alter the laws of the class struggle".
These statements seek to justify the active and open pursuing
of Soviet international influence through destabilising activities
in Angola, Ethopia, Yemen and Vietnam. They seek to explain why
the use of 85,000 Russian soldiers in a brutal expression of the
sovereignty of Afghanistan is consistent with detente. They seek
to suggest why, under detente, the defence capability of the
Soviet Union has expanded so greatly. But these explanations
are poor solace to the over 3 million refugees created by
Soviet action since the detente accord.
Qui. te clearly, * the " Brezhev doctrine" is still the guiding
principle of Soviet foreign policy and its interpretation may
go beyond what is generally believed.
This geo-political position has created international anxiety
heightened by the economic dislocation which has resulted from
the uncertainty of oil supplies and the massive increase in the
price of oil. This disturbing accumulation of factors creates
a background in which the relationship between Australia and
Japan gains in significance. Central to this relationship in thle
decades ahead, willbe the energy question. We entered the
with many world economies dependent on imported oil. Recent events
have underlined, if emphasis were needed, the significant political
and economic dangers inherent in such dependence. For example,
Japan relies for almost all of her oil requirements on imports. About
come from the Middle East. As a result, restrfcted supply
or unreasonably high prices of oil, will lead to adjustment in
the Japanese economy. / 3
3-
As one of Japan's principal trading partners, particularly in
raw materials and energy resources, Australia hopes to contribute to
overcoming her energy problems. Nevertheless, for all countries,
there is a need to seek alternative energy sources and to improve
conservation. Japan has, in this process, the asset of being a modest per
capita consumer of energy. It also has a proven capacity for
industrial innovation which will facilitate the necessary
restructuring of its industries. Fortunately, the surge in
oil prices in 1979 has not been accompanied by severe shortages
of oil. In fact, developments in the past several months have
increased stocks of oil globally. This has meant some softening
in spot prices with the result that, during April, Japan was able
to make the difficult. decision to refuse Iranian oil at an
unacceptably high price..
This decision represents a significant encouragement to the
efforts of other oil consuming countries to resist excessive
oil prices. Complementing this international example, has
been the decision by the Japanese government, and its Olympic
Federation, not to go to Moscow. This decision demonstrates,
in the most practical way, Japan's determination to contribute
towards efforts by independently minded countries to protest
against naked Soviet expansion. Indeed, there has been an
encouraging affinity of view between the Australian and
Japanese governments on the emerging international problems.
This does not meanthat Japan and Australia always have identical
views or interests. But there are several important political
and economic perceptions that we share. The first is that
we choose to be governed by democratic principles and maintain
similar institutions and laws to safeguard our political freedom
and reinforce social justice. The second is that, through the
natural complementarity of our two economies, we enjoy a high
degree of economic inter-dependence.
This inter-dependence continues to widen as new areas of trade
develop. The most recent, and perhaps the most challenging,
is Japan's growing need for alternative forms of energy, providing
as it does growing opportunity for Australia to utilise her
privileged energy position.
Third, through extensive bi-lateral aid programmes,
both Australia and Japan are closely committed to supporting
developing countries and their aspirations for self-reliance and
stability.
We are also major contributors to international financial
institutions upon which the countries of the third world rely for
development capital.
Fourth, because we are both countries of the Pacific, we have, a
mutual interest in the peace, prosperity, and well-being of all.
countries in the region. We share in the current economic growth
and enormous Potential of many of the nations of the Pacific.
And because of the importance of the integrity and strength of
the Association ' of the Soaith East Asian Nations, buth our countries
have developed patterns of consultation with ASEAN nations on a
wide range Of Political and economic matters. Australia and Japan
are fully developing their credentials as nations contributing
in a constructive way to the well-being of the Pacific.
4
Finally, we are each aligned to our most important mutual ally, the
United States of America, through security alliances,
through long standing historical ties, and through the active
and lively appreciation of common values.
All these links re-emphasise our mutually compatible
interests and common objectives in contributing to a stable
environment for economic growth within our region. And this
region already promises new opportunities for us in the 80' s.
Its economic potential is great, and its prospects for continuing
development are encouraging. The economies of East and South-East
Asia are amongst the most rapidly growing in the world, with
regional growth recently ranging from 7-12% per annum..
The continuing comparative strengthl of the Japanese economy,
as well as the industrial progress, achieved by the " newly
industrialising countries"; and to a lesser extent other
ASEAN members, based generally on export led strategies;
all these factors have contributed to spectacular growth and
trade expansion in the region.
This growth-will be the source in the future of new
opportunities for both our countries. I emphasise five points
which I believe are of particular importance to the future
development of the relationship between our two countries.
First, we confirm our readiness, within the capacity permitted
by our resources, to assist Japan and other countries to meet
their energy needs.
Second, we welcome investment by Japan in partnership with
Australian investors. In 1979, Japan was Australia's third largest
source of foreign investment, after Britain and the United States.
And recent major investments include the 50% shareholding of a
consortium of five Japanese aluminium users in the Comalco
aluminium smelter project in Gladstone; the 20% interest held by
M~ itsui in the $ 700 million Nebo coking/ steaming coal project;
the purchase of Chrysler Australia by Mitsubishi, representing
a significant . injection of capital and expertise into our
important mot-or-vehicle industry.
The Australian Government continues, within our foreign
investment guidel. ines, to welcome Japanese investment, whether
it be in the mineral area, the manufacturing industry, or in the
services sector.
Third, in the context of our overall economic relations, there is
a clear necessity to enter into long term commitments. This
reo~ uirement is borne out by the very high cost of resource projects
and infrastructure developments; by the risks associated with
continuing problems of international inflation and protectionism;
and by the high degree of complementarity between our two economies.
For example, the immense North West Shelf project presents
the particular problem of the need for expensive facilities
both in Australia and in Japan, which are only viable if long
term demand can be guaranteed. This project would never have
come to fruition without a long term commitment from our Japanese
customers. Fourth, we expect to see substantial expansion of raw material
Processing in Australia. This has long been our objective.
Energy costs and the availability of relatively low cost coal
for energy in Australia, make this objective more easily obtainable.
Aluminium smelting is a prime example of this process gaining
momentum; and the onset of increased oil prices makes the
prospect of processing raw materials in Australia even more
attractive. Rising oil coats have also added to the cost of
shipping which in turn has provided the necessary inducement
to process raw materials in Austra~ lia, leaving the less
weighty processed product to be shipped.
The fifth and newest area for co-operation is in energy research
and development. There is scope for further examination of
alternative uses for coal and gas; and the development of new
and renewable energy sources. Already, negotiations are under
way to establish a science and technology agreement between
Australia and Japan. This institutional base will re-inforce
efforts for the exchange of research and development.
And above all, both our governments are conscious that
economic co-operation will only be beneficial in an economic
environment characterised by consistent and stable policies;
particularly policies directed to the containment of inflation;
the encouragement of investment; and the ! 3ecuring~ of increased
employnment opportunities.
Beyond all this, one of the central commitments of both our
countries in the ' 80s must be to ensure that the -expanding
importance of the Australia-Japan relationship enjoys the full support
of Australian and Japanese people. The Australian Government
is fully committed to recent initiatives designed to give the
people-to-people relationship the strength and understanding
that exists at a government-to-government level.
That is why we have welcomed the interim agreement for
the reduction of air fares, and have encouraged the progress
towards an agreement for the exchange of young people on working
holidavs. These initiatives complement others which are already
w~ ell established.
In '-particular, the wide range of activities sponsored by the
Australia Japan Foundation, and the research work done under
the auspices of the Australia Japan and West--ern Pacific
Economi1c Relations research project, have all contributed
sign Lficantly in recent times to the strong ties which
have de. veloped between our two countries.
These are reinforced by the institutional machinery which provides
for a wide range of minist.-rial and official consultations.
We regret that, as aresult of impending elections in Japan,
it will not be possible to hold the next Australia-Japan Ministerial
Committee Meeting in Tokyo on the 9th and 10th of June. / G.
-6
However, when the opportunity arises, these talks will go ahead.
They are becoming an integral part of our continuing and
established working relationship in the political as wellas the
economic area.
Looking beyond our relationship, over the past year or so we
have witnessed a growing momentum of interest in the prospects
for enhanced co-operation around the Pacific region. This has
been most recently stimulatedby the enthusiasm expressed by
Mr Ohira for the concept of a Pacific community. The notion
of a Pacific grouping to promote greater co-operation has been
advanced in one form or another by academics and businessmen
for the last decade and a half.
What is new, however, is the increasing focus which governments
of the region have been giving to the area. This interest is
not based on thegeographic neatness of such an arrangement.
For if it were, an arrangement of this kind surely would have come
to being long before now. In fact, the disparate nature of
Pacific countries has hitherto inhibited European-type moves.
towards closer co-operation.
Butnew elements have lent impetus to calls for a Pacific community.
While resource endowment and economic development amongst these
countries are not evenly shared, the Pacific region has experienced
remarkable and sustained economic growth.
It contains five of the world's major food exporters, and
substantial percentages of the world market economies' total
production of a number of key commodities. Regional growth
has been paralleled by increasing economic inter-dependence.
Transportation and communication links have improved substantially.
And regional states have extended national sovereignty over
marine resources of the Pacific Ocean through the declaration
of the 200 mile fisheries and economic zones.
These developments are fast breaking down the barriers of the
past, increasing the areas of; common interest and making the
need for enhanced co-operation more compelling. No one Y. et has
a clear idea of what form such co-operation may take whether
we should seek new arrangements or build upon existing mechanisms.-
An exploratory process is just beginning. The various ideas being
floated need to be carefully examined and tested. The differing
interests and concerns of the countries of the region need to be
fully taken into account. Early last month, I attended a
gathering of businessmen from around the Pacific held in Sydneythe
annual meeting of the Pacif ic Basin Economic Council which
made an important contribution to the consideration of regional
co-operation.
In September, a major non-governmental regional seminar,
which I announced during Mr Ohira's visit earlier this year,
will be held at the Australian National University in Canberra,
to focus directly on the Pacific community concept. It is clear that,
giv,. nthe complexities involved, the development of the concept
is likely to occur gradually rather than overnight.
The fact is, however, that -the future of the countries of the Pacific
inevitably involves increased contact and it is desirable to take
a positive and intelligent approach to that. / 17
7
Our ambition must be to fully reap the benefit of the enormous
opportunities which the Pacific area is opening up, and thereby,
to contribute to greater peace, prosperity and harmony throughout the
region. There is no doubt that these goals will be advanced through
a forum such as this. Thatis 7hy I congratulate the organisers
of this seminar for the important contribution it will make to
a better understanding and awareness of the growing links and
friendship between our two countries.
I am confident also thatyour findings will be of real value and
significance, not only to the future development of our
relationship, but also to the Pacific region as a whole.
We must never take for granted the need at all levels to be
well informed about what each of us is doing. Forums such as this
provide a profitable opportunity for Australians to develop more
fully an understanding of the concerns and interests of our
Japanese and regional partners.
Again, I express my warm appreciation to the managements
of both newspapers for their continued and substantial reporting
on the broad range of issues in the Australia-Japan relationship.
May all who are participating in this symposium enjoy success
from your deliberations. ~ CI