PM Transcripts

Transcripts from the Prime Ministers of Australia

Hawke, Robert

Period of Service: 11/03/1983 - 20/12/1991
Release Date:
27/01/1984
Release Type:
Press Conference
Transcript ID:
6300
Document:
00006300.pdf 11 Page(s)
Released by:
  • Hawke, Robert James Lee
TANSCRIPT, PRESS CONFERENCE, 27 JANUARY 1984

E, AUSTlAI. IA
TRANSCRIPT PRESS CONFERENCE 27 JANUARY 1984
E 0 E PROOF ONLY
Well, ladies and gentlemen, I thought what would be most
useful is if I were to give an outline of the objectives and
themes of the visit that I'm about to undertake in general
terms and then some comments about the particular countries,
and then be open to any questions you'd like to ask.
Obviouslv one of the main purposes of the visit is to establish
a personal contact and exchange views with the regional
leaders that I've not previously met Mr Nakasone, the Prime
Minister of Japan; President of Chun, Republic of Korea,
Dr Mahathir in Malaysia, and also to build upon the relations
that I've already established with Premier Zhao of China
and Lee Kuan Yew of Singapore. In this way I want to give
further substance to the very high priority which the Covernment
attaches to its relations with the Asia Pacific region and to
look for ways in which we can strengthen the role of Australia
as an integral member of that region which is the most dynamic
and fastest growing economic region in the world. Within that
objective, and particularly we ould seek to promote the
potential role that we see Australia may have as an exporter
of advanced services to the region. We will be particularly
concerned with further exploring the possibilities of regional
consultation and co-operation in a new multi-lateral trade
negotiations round as I foreshadowed in my speech in Bangkok
on the 22nd of November and we'll be doing this with the
aim of attempting to promote more open international trading
systems. I'll certainly be wanting to familiarise myself
directly through these contacts with the political and
strategic equation in north east Asia where the vital interests
of four major powers, the United States, the Soviet Union,
China and Japan, are directly involved.. And it's quite
clear that the maintenance of stability in this region
is vital to Australia's interests.
I will be seeking also, as far as the ASEAN members are
concerned, to further strengthen the relations that we
have with ASEAN relations which clearly have already been
strengthened following the discussions that we've had
successfully with them in regard to the differences that
did arise on our non-sponsorship of the Kampuchean resolution.
And one matter of particular interest in Japan will be to
consider the relevance to our country of the industry policy
making practices in Japan which as you know are based firmly
upon the co-operation between government, business and the
trade unions. You will recall that over the years I have S. ./ 2

cont... . often referred to the relevance that I've seen
in the successfuil Japanese practices in that respect and I
will ta,,-e the opportunity of directly having discussions with
leaders in Japan as to the way in which those processes have
been and are operating.
Now if I may briefly refer to the individual countr es to
which I'll be going in the order in whitch I'll be visiting
them. We will be in Hong Kong briefly and clearly I would take
the opportunity there of reviewing the current state of
negotiations on the future of Hong Kong. Now while Australia
is clearly not directly involved in what happens there, we
nevertheless have a strong interest in the satisfactory outcome
of those negotiations as far as China and Britain and the
people of Hong Kong themselves are concerned.
In Japan we will be having talks which we regard as fundamentally
important. Japan is our mos: t important trading partner and
it's a country whose political role over time is coming to
reflect it's important global and economic position. I've
not yet had the opportunity of persona. contact with
Mr Nakasone and I'm looking forward to doing that and to
discussing with him and others important strategic developments
in north east and south east Asia, including Indo-China and
on the question of arms control and disarmament. And jery
importantly, as far as Japan is concerned, we'll be wanting
to discuss and acquaint ourselves as intimately as -we can with
the changes that are taking place in Japanese economic structure
in relation' to the chaniges that are taking place here because
those changes that are taking piace in Japan have a basic
significance for the economic and trading relationship between
our two countries. And a matter of particular importance
that we'll be directing our attention to, and seeking to engage
equally the Japanese in attaching importance to it, is that in
negotiations by Japan with third countries that the Japanese
wil. not succumb to pressure which will disregard the
legitimate interests of Australia as a reliable and relevant
supplier. For Korea, it will be recognised I think, that this is a
country whose increasing economic strength is important to us
and the security of which country is equally important in terms
of the strategic security of north east Asia. I will, of course,
be meeting President Chun who was tragically prevented, as a
result of the Rangoon atrocity, from coming to Australia in
October. And we will obviously be particularly interested
in discussing with President Chun the assessment that he
makes of the stability and security of the region following those
tragic events and the KAL airliner tragedy. Trade between
Australia and the Republic of Korea has reached a figure
of over $ 1 billion $ 1.1 billion in 1982/ 83 which made the
ROK our fifth largest customer. So we'll be obviously
exploring the prospects for further developments of economic
co-operation and trade between our countries. / 3

As far as China is concerned you will apprecia-. e that I had
the opportunity very early in the ]. ife of our Government
of welcoming Premier Zhao here in Canberra. And 1 can say
that I found him one of the outstanding world leaders that
Ive met ' in my period in office and VIll be looking forward
to having discussions with him about a number of matters,
not necessarily in this order of importance. But the
sorts of things that we'll be concerned about will be to have
the benefit of insight from him flowing from the recent
international discussions they've been having in Japan and
in the United States and to get their assessment of
developments in Sino-Soviet relations and, of course, in
South East Asia in general and Indo-China in particular
and on the question of international disarmament. I will
be wanting to take further with Premier Zhao the extraordinarly
interesting discussions that I had with him about the
fundamental changes that are taking place in China in their
economic philosophy and practices -changes which I think, still,
the rest of the world haven't fully appreciated as to the
si,,>-ificance that they hold for the rest of the world. And
I will be very interested to see how in that period, now of
almost twelve months since he outlined to me those fundamental
changes which had begun in the agricultural sector and which
they were in the process of transferring into the area of
secondary industry, just how those changes have developed.
Within that overall framework. we will be exploring 1-he
possibility of further trade and economic relationships
between our two countries and moost particularly we will be
exploring the prospects for even closer agricultural co-operation
between China and Australia.
As for Singapore, and there of course I will be renewing
the close relations I forged with Prime Minister Lee Kuari Yew.
at CHOGM, we'll be discussing international security and
economic matters with the Prime MiniSter. And we'll, of course,
particularly with him be discussing the concept that we are
seeking to develop of regional co-operation in an approach
to new MTN ground which we would seek to bring to fruition.
Particularly also I would be irnterested in talking with
the Prime Minister of Singapore about their experience as
an international financial centre because you will appreciate
that we are looking at the possibilities in that respect
for this country.
Finally I refer to Malaysia, an important country, it's a key
member of ASEAN, of the group of 77 of the non-aligned movement
and of the Islamic group of countries. So in those respects
it has an importance for us. I'll be exchanging views with
Dr Mahathir who I've not previously miet about the samne sorts
of issues that I'll be talking about in Singapore and I would
expect him, as probably also in Singapore, I would expect him
to raise the question of our forces in Butterworth.
Ladies and gentlemen, those are the general objectives and
aims that I have on this visit on behalf of this country and
particularly some of the matters that I'll be seeking to
raise and discuss in the particular countries that I'll be
visiting. / 4

JOURNALIST: Prime Minister, it's obviously a very wide-ranging
trip, but if you could put one themc, to us, what would that
be? The theme would be that Australia's destiny is inevitably
and irrevocably with the Asian and Pacific region and the
quality and standard of life of Australians in our time and
their children is going to be significantly determined by
the quality and the substance of the relationships with
this area. And the visit is directed towards doing all that
we can to ensure that this relationship with the countries
of the region is based upon a mutl-ual recognition of our
inter-locked interests and to establish those attitudes
and policies in relationships in a way which are most likely
to maximise Australia's chance of a constructive involvement
with those countries, which as I've said, have been for some
time and look like being well into the future the most dynamic
and fastest growing economic region in ithe world.
JOURNALIST: What sort of f'oedback have we had over the last
couple of months, since your 13angkok speech in particular,
following the visit of the officials to the region about the
possibility or regional co-operation on the trade ground.
You would appreciate that I can't. go into the details
at this stage of the responses because I want to pick those
up in the countries. But I can say the primary reactions
foliowing the visit earlier this month of Dr Garnaut, my
personal adviser, and a representative from the Departmcnt of
Trade have been very positive. There is a recognition of two
things if I can put it this way that the previous MTN
negotiations have not been satisfactory from the point of
view of the co-mmodit-' es of greatest concern to ourselves
and to the other countries in this region. Secondly, that
we as much as any area of the world have a vested interest
in the opening up of a freer international trading system.
And thirdly that if that is to be done through the medium
of a MTN round that it can only be useful if there is an
advance on what happened before when our interests as far
Australia is concerned agricultural products and processed
mineral products and many of the sorts of products of Importance.
to the countries in this region didn't get dealt. with. So
they see merit in the concept of a new round and of a regional
approach in that. Now I don't want to overstae*. it t-here is
the interest, there is we believe the sense of a regional interest
and I would hope that out of the discussions that we have we
will be able to adopt practical steps then to give effect
to what seems to be out of these intitial discussions, the
recognition of common interest.
JOURNALIST: Mr Hawke, Prime ministers for some years have
been saying in Australia that it's important to develop
our relationships with Asia because that's where our future
lies. Do you see this trip as taking our relations with
South East Asia and Asia as a whole into a new direction or
are you merely shoring up the relationshijps that are already
there?

No I a: n not concerned with in any way reflecting
upon what's happened in the past. I think rather I would
say that it has been useful over the past decade that there
has been in broad terms a bi-partisan recognition of the
realities of our inevitable relationships with the region.
What we're trying to do is to translate what has been a
broad recognition into practical steps to give effect to
that recognition. I refer to the initiatives that we are
taking now in regard to the MTN. We have perceived, and
as I answered in response to Paul Kelly's question, we are
getting a response in the same direction from the countries
of the area that we have the same interests in opening up
and freeing the international trading system, that we have
a lot of mutual interests in the new directions that such
a round should take. So I give that as an example of the
practical way in which we are now saying, well look, we are
part of the region. Don't let's just talk about it and say
we are part of the region. Let's identify the ways in which
we can through a mutuality of interests act to the benefit
of the region as a whole. And that is obviously in the
immediate sense perhaps the most important initiative we are
taking. But I make the second, and for these purposes the
final point, that from the beginning of our time in Government
we've tried to look at all the aspects of our relations with
the countries of the region whether they be political or
trading or broadly economic in a way where we just don't
make a decision in one area, political, economic or trading
alone. But we have tried to integrate the approaches that
we take so that all that we do will collectively strengthen
the understanding of the courtries of the region that we, in
Australia, do regard ourselves as a member of the region.
So I -think that's how I would distinguish our Government from
the past. Not that we have a sudden, new, blinding understanding
of what, after all, is a pretty obvious fact, I think, that
the future of Australia is bound up with the area, but rather
we are moving in specific ways to give concrete practical
effect to that reality.
JOURNALIST: Prime Minister, you said at the outset that
you'd like to see Australia exporting advanced services
to the region and I ask this question in the context of
projections done by Chase Econoretric the other day which
was reported in the paper saying that unless Australia changes
it's ways, by the end of the decade we are going to have the
lowest productivity of any country in the region and third
highest inflation. In that regard what do you think you can
benefit, or do you believe that's correct, and secondly
do you believe you're gaining benefit by changing Australia's
direction. / 6

Well, I think if you were to project into the future
let's say ' he next decade the comparative rates of economic
growth of Australia and the countries to which you refer, the
sorts of conclusions that are listed would be likely to follow.
What can we do about that? We can't, nor of course do we want
to, on the contrary, reduce the rates of growth of the countries
of those regions because an expanding, prosperous region if
sensibly handled by us in our relations with the region is
a plus for Australia it can be a plus for Australia. What
we are aiming to do is to reduce the discrepancy between the
rates of growth by increasing our own rate of growth. And I
know that we've only been in office for just under a year and
it may adjudged too early by some to draw conclusions as to our
success. But nevertheless it is the fact that in terms of
the growth of non-farm product there is a very dramatic
turnaround taking place in this countryoAnd we, while recognising
some of the particular factors involved in that, are nevertheless
seeking to adopt a range of economic policies which will increase
the rate of growth and the trend rate of growth in AustraliD.
So that will effect the final line of the judgements that Chase
has made. Now coming particularly to the question of the sorts
of advanced services that we may be able to contemplate exporting.
Without being exhaustive the sorts of things that do occur to us,
and that we will be discussing, are the financial services, educationia
services, agricultural services I believe that we have a vast
accumulated experience in that area which already there is evidence
that it is welcomed in some of these countries. And one of the
particular matters that we'll be discussing in China will be how
we'll be able to develop that further. So those are examples
of the sorts of things that I believe we can contemplate exporting
in greater quantity and concept to the countries of the region.
JOURNALIST: So you're. not worried by the projection?
Well I think any government here of Australia ought to be
worried that there would be a relative falling away by what's
happening in the countries of the region. It ought to be seen,
however, as not a threat which is what I'm trying to say, but a
spur, if you like, a reason for being very astringent as
Australians in examining the way we do things. If I could
divert just briefly you will recall, I know you're all assiduous
readers of all my speeches but one of the themes that I have
been trying to put to Australia over many years is that we have
been a lucky country in the post-war period, that it all in
a sense fell into our lap. We weren't hurt by the war, the
war in many ways was the best stimulus that occurred to Australia
in terms of the reviewing its capacities to do things. At the end
of the war a non-devastated Australia was able to supply it's rural
products to the rest of the world. It gave us enormous income, it

cont... assist-ed us to have the framework within which
we could set up new manufactuing industries. Then when the
rest of the world was falling back into place and the demands
for our products had fallen away from the great peaks of that
immediate post-war period, then we had our first mineral boom
and that lifted us again. And so in different ways from the
war and post-war period it all was pretty easy for us. But
it's become apparent from, I would say the last decade, I mean
I: d guess it would have to be about -although the signs were
there before that but it became most dramatically apparent
I suppose from about 1973 that the world was a very different
place in that we coaldn't any longer rely on the ' lucky country'
syndrome. That if we were going to be able to at least maintain
the steadily growing standards of living that we had enjoyed
in that post war period, then we wsre going to have to act
to do it. It wasn't going to happen. We weren't going to
be the residual beneficiaries of what was happening elsewhere.
And we certainly won't be just the residual beneficiaries of
the growth of this region. We're going to have to act to enmesh
ourselves in that growth pattern and that is going to .: equire
changes in the way we do things in Australia. It's going to
require changed attitudes by governments, by business and by
the trade unions and that is in part of what we're about on this
trip that we're going to visit these countries, understand more
clearly by being there and talking with their leadership about
precisely what is happening, what are the specific changes in
economic direction, how it is that they are getting these rates
of growth and what does that mean for us. Now to give an example
to relate it to the general exposition I just gave we benefitted
in Australia in the late 50' s and 60' s from the nature of the
expansion of the Japanese economy in steel and in automobiles;
Obviously that created a demand for our iron ore and our coal and
we did benefit. But now the changing structure of the Japanese
economy is going to mean that the sorts of projections that were
made for our raw materials there need to be revised. We will still
have significant absolute exports but the rates of growth that
were projected before need to be changed. The Japanese are changing
their emphasis and directions in their economy. So what we've got
to try and do is to see in relation to those changes how can we mesh
in, what are the sorts of changed structure of exports that we can.
contemplate to get the benefit of the new directions of economic
growth there as with Korea. If you're going to get the benefit
in Australia of these changed directions in the momentum of growth
in those countries it follows by definition that you've got to
have changes in your country. You can't just say well if they
are changing direction we just keep churning out increasing
projections of iron ore and coal, if that's not what they need.
So it's imperative that we in Australia start to understand the
changes that we've got to make if we're going to get the benefit
of their changed patterns of growth.
JOURNALIST: since Australia is coming out of the recession
what sort of message will you have for leaders ( tape break)
protection policy?
I will reiterate what I've said in a number of speeches
in Australia over recent months and that is that while we were
coming out of the recession it would have been inappropriate to
talk about changes in the industry structure. But that as we now
/ A

cont...
have the growing confidence of growth we will be engaging in
discussions with industry, and always when I talk about industry
I include the trade unions wor];. ers are a part of industry after
all. And we will be increasing the range and depth of our
discussions with industry along the lines that I have been putting
in my exposition here. You can't if you're going to do the job
for Australia it has to be done just talk words and recognise
what's happening there and not make the reciprocal changes that
are necessary here and I will be indicating to the leaders of these
countries that we as a government will be working with industry
in Australia to gradually make the sorts of adjustments that
are necessary for our benefit and for theirs.
JOURNALIST: Prime Minister, may I ask a question about your
trip and also a domestic one.
Well could we just get the trip out of the way first?
JOURNALIST: I wanted to ask you something about Queencland
and Medicare are you putting that on the basis that that's a
sort of foreign relationship
JOURNALIST: Have the Singapore and Malaysian Governments
strongly put to you that they want a RAAF fighter squadron
maintained at Butterworth as part of the integrated air defence
of the region and how does this fit in with the wish of the
Defence Department and the RAAF to have all the five F18 Hornet
squadrons stationed back in Australia.
There has been a clear indication to the Government by
the soui. ces that you mention of a desire for a retention of a
signicant presence at Butterworth and that's understandable.
You're also right in saying that there's a view within Defence
here that in particalarlyin the light of the acquisition of our
new front line aircraft a more efficient way of developing our
capacities to use those aircraft to their full potential would
involve their location in Australia. Now clearly we have two
criteria therefore which have to be taken into account in the
decisions that we make in this regard. We had attached, and will
continue to attach very considerable importance to our defence
relationships with the countries of the region. I will be
going to these countries, and particularly you're talking
about Malaysia and Singapore in your question, to have them
tell me directly what their assessment is of the role that
we have played up until this point and what in their assessment
of the future strategic situation in the area they see as being
involved in a continued form of presence. We have made no decision
here and deliberately the Cabinet has declined to make a decision
because they want me to have the opportunity of having those
discussions. After I've had them we will make a decision here
which I am hopeful will be able to meet the two criteria. It
may require some different form of presence there but it is
important that we take both considerations into acccount. That is
the ideal position, if you like, of our defence force people here
as to what they say would be the ideal way of using our relatively
limited facilities and, on the other hand, the very real need
that we ought to take into account as seen by Malaysia and
Singapore of some presence there. I think the two things can
be made compatible. / 9

JOURNALIST: Prime Minister, is rotation one of the options
you are looking for?
It is one of the options, yes.
JOURNALIST: are you going to support in Tokyo to establish
a Pacific Economic Community
No I would not be proposing the P. C. C. concept. That as
you know is something that has been advanced in various quarters
and I would simply record most particularly the suggestion
as emanated from the Republic of Korea, the concept has emanated
from there. No, we take the view that from the assessments we
have made it would not be right to say that the countries of
the region feel that at least at this stage that sort of concept
is appropriate. It implies a range of formal mechanisms and
relationships which the countries of the region are not desirous
of at this stage. But rather it makes sense to us to take things
a step at a time and we believe that the sort of step that we
had '-lked about of identifying mutual and mutually reinforcing
interests between the countries of the region, how to use those
within the global multilateral trading context, to see that our
interests are advanced. We have, as you will have seen from
the speech I made on 22 November in Bangkok what might be called
a fall-back position that if our support for a new MTN round
which was first talked about at the ministerial meeting of GATT
ministers in November of ' 82 and has been reinforced subsequently
by Prime Minister Nakasone and U. S. Special Trade representative
Brock, if those moves don't come to fruition well we have a sort
of fall-back position then of saying, well let's then as countries
of the region examine the possibility within the region but still
consistent with our multi-lateral obligations to see if there
are ways in which we can expand trade within the region. That's
very much a second best. So the concept of a PCC at this stage
is not consistent with that process of realistic gradualism as
I would describe our approach.
JOURNALIST: You said that you would urge the countries you are
visiting to resist pressure from third countries to take more of
their exports which might damage Australian interests. Which
countries did you have most in mind.
Well quite clearly an area of concern is the negotiations
between Japan and the United States. And I'm not being exhaustive
about it one area is the negotiations with regard to beef.
There are two strands of concern if you like in this area.
There is the direct trading negotiations Japan and the
United States at the moment. But. there is this enormous deficit
of $ 20 billion odd relationship between the United States and
Japan. Now obvious. y in negotiations between those two countries
there's going to be an effort to start to make inroads into that
enormous trade deficit by increasing the exports from the United
States to Japan, say in beef. Now that's beautiful if you're
sitting in the United States. But it's not too good if you
look at it from the point of view of Australia which has built
up over the years a reputation properly as a reliable supplier
of quality products. So I give you that as an example. Now that's
one strand. Now the other strand, of course, is that one of the

P. M. cont... great problems in the global international
relationship is the enormous increase in indebtedness of
many countries of the third world. And there will be some
attempts to redirect some trading patterns in an attempt to meet
or to increase the capacities of these countries to meet the
commitments they have under that huge and growing indebtedness.
Now that is a legitimate concern But we as Australians
have to be concerned that that is not conducted in a way which
unreasonably disrupts established trading patterns between
Australia and Japan. Now those are the sorts of things I
have in mind.
JOURNALIST: You could forecast that perhaps if we'd extend
the credit, such as which the Americans do to ensure
our market. Don't let's be hypothetical about it. We've had, going
beyond the countries of the region that I'm visiting now, in
respect of our wheat sales we've had to meet the new approaches
of the United States for instance in trading with Egypt and
Irai-because unless we're prepared to go some way down the
paths that they've established we are not going to get sales.
It goes back to the sort of issues that I've talked about
before we've had three bites of the cherry if you like
or the three whacks behind the ear as far as developments
in Europe are concerned. We lost our t: aditional markets there,
then we were hurt again when under the impact of the CAP policy
there they built up these enormous surplusses and were dumping
them on our markets. And then the third whack behind the ear
was when the United States was responding to those developments
and we've had to try and meet that. And so you can see why
we attach such importance to try. ng to get a new MTN round.
We've got a vested interest inside the countries of the region
to which I'm going to try and ensure that we get a more freed-up
international trading system than the one with which we're faced
at the moment.
JOURNALIST: In October last year at the Australia/ Japan
Economic Committee in Melbourne you gave a very critical speech
import of coal and iron ore and you hoped to existing
contracts. Will you speak to Mr Nakasone about this?
Well referring back to the speech that I gave in
Melbourne. I wouldn't say it was extremely critical. I would
prefer to describe it as a typically frank and direct speech.
But I make this point that it wasn't a negative speech, it wasn't
one in which I was just saying look this is a terrible thing
that's happening. It was put as you recall, if you read the
speech in the context of a recognition on my part and the part
of the Government of the basic changes that are taking place in
the Japanese economy and that it would be the height of unrealism
on our part to expect that we could in the next few years have
levels of exports which were related to a pattern of economic
development and expansion which was not happening. But I was
trying to make the point that in difficult times within Australia,
particularly in respect of our rural products we had remained tctall\
reliable suppliers and that I was trying to convey to our friends
in Japan at government and business levels that we attached great
importance to remaining reliable suppliers. And I have also said

11.
P. M. cont not only in that speech, but elsewhere, that I think
there's been a tendency -Lo exaggorate some of the difficulties
that have arisen as a result of industrial action in this country.
What I was therefore trying to say in that speech, and what I'll
be saying to Prime Minister Nakasone is please operate on the basis,
and we expect you to operate on the basis, that our record show-. s
that we are fundamentally reliable suppliers, that we've made
the decisions structurally and in other ways within Australia to
maintain the reputation of being reliable suppliers. We deserve
recognition and credit for that fact. Now, on that basis let us
together try and understand what the new directions of economic
development are going to be and what sort of arrangements mutually
we ought to be able to make and fix and adhere to, so that in the
years ahead both for Japan and Australia for our mutual benefit
we will be able to go ahead together Now that's was if you like
the structure of the speech, the intent of the speech. It was
not negatively looking-at the past. I thought I had to refer -to
certain features. Butirmuch :.. ore it was a speech about the
future. JOURNALIST: Mr Prime Minister, you talk a lot about your
attitudes towards Asia, to the Indian Ocean and Africa. What
about your attiLtudes towards Europe?
1 would put it in these ways. Europe obviously carries
a diminished economic significance for us in trading teirms.
It's fallen away as a trading partner. I don't say that
critically. I mean the world is a changing and developing
place and we would seek to increase within the economic
realities of' tod2ay and tomorro-we would seek to increase
as far as we could, trade with them. We have no inhibitions
against Europe. There are no animus on our part. But we've
got to recognise the realities of the world in which we live.
But if there are opportunities to increase trade, for instance
our exports of coal, I just use that as an example, we're
working on that to see if we can. We would wish to increase
trade. Now trade is only one part of the complex of relationships.
Politically we recognise the enormous importance of the
developments that are taking place in Europe in their relations
with the eastern bloc.. We are urging our allies, the United
States, to engage in constructive negotiations with the
Soviet Union and we trust that the Soviet Union will respond
so that the current impasse that exists there hopefully can
be resolved. We understand the apprehensions of Europe and
the nations of western Europe in those regards. We will do
what we can in our small way to try and get the negotiation
processes going again. We have a European tradition and
background and while, as I say, into the future more arid more
we are going to be part of in our economic trading terms in
region of Asia and the Pacific, that doesn't mean that we cut off
the past. That the sensible thing for the Government to do is
recognise that tradition and to recognise the changing economic
realities of the world and to do what we can to yet the best
for one another out of those. We shouldn't, either Europe or
Australia, we sh-ouldn't think that Australia's development in this
region means that we turn our back completely on Europe. We can't
do that, we don't want to do that.

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