i 2/ p
AUS'Tl IA LLADDRESS
TO LUNCHEON GIVEN BY THE FIVE PRINCIPAL JAPANESE
ECONOMIC ORGANISATIONS, TOKYO, 1 FEBRUARY 1984
I AM DELIGHTED. TO 12E YOJR GUEST ON THIS, ' MY F. IRST VISIT
TO JAPAN AS AUS RALIA'S'PR! M-1M1INISTER,
MY* VISIT* COME* S AT A T I ME WHEN BOTH AUSTRALIA AND JAPAN
ARE LOOKING FORWARD TO ~ i RECONOMY. C TIMES THAN 11E HAVE
KNOWN IN TINE RECENT P AS-11
AUSTRALIA S ECONOMY* IS PERFORMING BETTER THAN OUR. MORE
OPTIMISTIC FOIRECASTERS THOUGHT POSSIBLE EVEN SIX MONTHS AGO.
SOME' RECENT STRAINS IN. AUSTRALIA' S TRADING RELATIONS WITH
JAPAN HAVE RESULT. ED FROM RECESSIOtil,* AND WILL BE EASED BY
THE RETURN TO ' BETTER ECONOMIC CONDITIONS,
A MORE OPTIMISTIC ECONOMlIC OUTLOOK ALSO PROVIDJES A B3ETTER
ENVIRONMENT FOR EACHOF US TO ADDRESS STRUCTURAL PROBLEMS'
THAT STAND IN THE WAY OF DEVELOPING A MObRE BROADLY-BASED
AND COMPLEMENTARY TRADING RELATIONSHIP,
BOTH AUSTRALIA AND JAPAN ALSO HAVE MUCH TO GAIN FROM
IMPROVEMENT IN THE ECONOMIC OUTLOOK OF NEIGHBOURING COUNTRIES
IN THE PACIFIC REGION, INCLUDING THE UNITED STATES, CANADA,
AND THE WESTERN PACIFIC DEVELOPING CCUNTRIESi SOME OF WHICH
I 14ILL BE VISITING OVER THE NEXT TWO WEEKS.
21
I BUT THE INTERNATIONAL RECOVERY IS NOT YE' WIDELY BASEOJ
AND THE WORLD ECONOMY IS STILL FACING SERIOUS DIFFICULTIES
-AND UNCERTAINTY.
TODAY, I WOULD LIKE TO ADDRESS THREE MAJOR ISSUES,
FIRST, THE ' PERFORMANCE OF THE AUSTRALIAN ECONOMY AND THE
AUSTRALIAN GOVERNMENT'S APPROACH TO USING THIS RECOVERY
AS A SPRINGBOARD FROM WHICH TO REACH FOR SUSTAINED
IMPROVEMENT IN OUR LONG-TERM GROWTH PERFORMANCE.
SECOND, SOME ISSUES IN AUSTRALIA S ECONOMIC RELATIONS
WITH JAPAN AT THIS TURNING POINT IN CUR ECONOMIC. FORTUNES.
THIRD, I WILL OFFER SOME VIEWS FROM AN AUSTRALIAN
PERSPECTIVE ON CONTEMPORARY PROBLEMS OF THE WIDER
INTERNATIONAL ECONOMY.
THE AUSTRALIAN RECOVERY
FROM LATE 1981 UNTIL THE JUNE QUARTER OF THIS YEAR
AUSTRALIA EXPERIENCED PARTICULARLY SHARP AND DEEP RECESSION,
THE RECESSION IN AUSTRALIA WAS ASSOCIATED WITH A
DISASTROUS DECLINE IN EMPLOYMENT AND RISE IN UNEMPLOYMENT.
DESPITE THE RECESSION, INFLATION WAS OVER 11 PER CENT IN
THE YEAR PRIOR TO MY GOVERNMENT TAKING OFFICE IN MARCH.
LAST YEAR TWICE THE RATE IN MOST MAJOR OECD COUNTRIES, i
3.
MY GOVERNMENT CAME TO OFFICE CHARCED WITH THE RESPONSIBILITY
S OF INCREASING EMPLOYMENT AND REDUCING INFLATION AT THE
-i SAME TIME.
AT THE CENTRE OF MY GOVERNMENT'S APPROACH TO MEETING THIS
RESPONSIBILITY WAS OUR BELIEF THAT CLOSE CO-OPERATION WAS
REQUIRED AMONG ALL PARTS OF THE AUSTRALIAN COMMUNITY,
THIS BELIEF WAS REFLECTED FIRST IN AN ACCORD BETW1EEN MY
. PARTY,, THE AUSTRALIAN LABOR PARTY, AND THE AUSTRALIAN COUNCIL
OF TRADE UNIONS.
THIS PRICES AND INCOMES ACCORD INVOLVES:
A COMMITMENT FROM THE TRADE UNION MOVEMENT TO FIRM WAGE
RESTRAINT WITHIN THE CENTRALISED WAGE-SETTING FRAMEWORK
THAT IS DEEPLY ENTRENCHED IN AUSTRALIAN INDUSTRIAL LIFE
A COMMITMENT ' FROM THE LABOR GOVERNMENT TO IMPLEMENT ASERIES
OF ECONOMIC AND SOCIAL POLICIES, INCLUDING
IMPROVEMENT IN ACCESS TO MEDICAL AND SOME OTHER SERVICES
A COMMITMENT FROM THE GOVERNMENT TO CONSULT THE TRADE
UNION MOVEMENT ON MAJOR ECONOMIC POLICY MATTERS
AFFECTING ORGANIZED LABOUR,
AT THE HEART OF THE ACCORD IS THE SEARCH FOR COMMUNITY
CONSENSUS AND A MORE CO-OPERATIVE, LESS COMBATIVE MEANS OF
DETERMINING WAGE AND INCOME LEVELS.
14
THAT SEARCH'FOR CONSENSUS WAS TAKEN FURTHER WHEN MY
GOVERNMENT CONVENED A NATIONAL ECONOMIC SUMMIT CONFERENCE
WITIMN NTHOFTAK( ING OFFICE, IN APRIL LAST YEAR,,
PARTICIPANTS INCLUDED RRPRESENTATI\' ES OF 5MMAL,: STATt-AM) LOZAl-
GOVERNMENTS IN AUSTRALIA, ALL MEMB~ ERS OF THE EXECUTIVE OF
* THE AUSTRALIAN COUNCIL OF TRADE UNIONS AND
BUSINESS LEADERS.
THE SUMMIT CONFERENCE HAS LAID THE BASIS FOR ACHIEVING
* LONG-TERM CO-OPERATJON AMO,, 1NG THE VARIOUS GROUPS IN THE
AUSTRALIAN COMLMUNITYI
WE I N AUSTRALIA ARE WORKING TOWARD~ A CLIMATE OF NATIONAL
UNITY, NATIONAL RECONCILI. ATION, NATIONAL PURPOSE.
THE IMPORTANCE OF SEARCHING FOR CONSENSUS WOULD NOT* BE
LOST ON* THIS AUDIENCE. t
HERE IN JAPAN THERE IS A KEEN. APPRECIATrION OF THE
IMPORTANCE OF DRAWING IN ALL MEMBERS OF THE COMMUNITY, OF
ACHIEVING A COMMON PURPOSE, OF REACHING A CONSENSUS$
WE IN AUSTRALIA, WITHIN A VERY DIFFERENT CULTURAL AND
INSTITUTIONAL ENVIRONMENT, ARE NOW ENDEAVOURING TO ACHIEVE
SOMETHING OF THAT SAME APPROACH. I. o 5/ 1.
INDEED MY GOVERNMENT HfiS ElhJ3AR1ED ON-' A FUNDAMENTALLY
DIFFERENT STYLE OF NATIO. NAL EC. OiNOMIXC MANAGEMENTI
NEW STRUCTURES AND MECHANISMS OF ECONOf-4C DECISION-MAKING
HAVE BEEN PUT IN PLACED*
THEY. ARE NOT ON LY CONTRIB3UTING TO THE POLICXES NEEDED TO
DEAL I ITH CURRENT. C IRCUtSTANCE; S, BUT ARE Al.-SO FUNDAMENTALLY
CHANGING T HE MANNER IN WHICH AUSTRALXANS THINK ABlOUT
ECONOMIC ISSUES AND THE FUTUPRE D IR EC I ON OF THE AUSTRALIAN
ECONOMY.
-A CLIMATE~ OF COINFI DfaCE HAS BEEN ESTABLISHEDO
SINCE THE NATIONAL ECONOMIC* SUMMIT CONFEREN7JCE, WE HAVE
* DEVELOPED THE PRACTICE OF CONSULTAT. ION ON ECONOMIC AND SOCIAL
POLICY THROUGH A NEW ECONOMIC PLANNING ADVISORY COUNCIL
* AND THROUGH A-1WIDE . RANGE OF CLOSE BUT LESS FORMAL PROCESSESI
WHILE WE CANNOT EXPECT COMPLETE AGREEM4ENT ON ECONOMIC
POLICY IN A DEMOCRACY, THERE IS WIDE AND STRONG SUPPORT
FOR THE MAIN ELEMENTS. OF OUR ECONOMIC POLICY$
WE HAVE PURSUED FIRM BUT NOT TIGHT MONETARY POLICIES,
DESIGNED TO ALLOW STRONG GROWTH, BUT NOT TO FUEL INFLATION.
THERE HAS BEEN ALMOST UNIVERSAL ACCEPTANCE BY AUSTRALIAN
TRADE UNIONS OF THE WAGE RESTRAINT REQUIRED BY THE PRICES
AND INCOMES ACCORD. Ie 1 6
WITHIN THE ACCOR' 1,, tNOST AUSTRALI/ N' VORlK'ERS RECEIVf'ED A
WAGE INCREASE or-4,3 PSR. CENT IN 193), INCREASES IN 19304
ARE-NOT LIKELY TO B~ E SIGNIFICANTLY Gr,, EA'TERc
THESE* INCREASES ARE VERY SMALL COM1PARED WITH AUSTRALIAN
EXPERIENCE IN THE YEARS PRECEDING HlY GOVERNIMENT S TAKING
IN PREPARING OUR FIRST BUDGI: ET,. WE JUDGED IT APPROPPIATE
TO PURSUE EXPANSIONARY FISCAL FOLICIE$;. THE COMMONWEALTH
' GOVERNMENT. S FISCAL DEFICiT IN TH62 CURRENT FINANCIAL YEAR
* WI 111 E AROUND FOUR AND A HALF PER CENT O f GROSS DOMESTIC
PRODUCTO
OUR POLICIES HAVE-POSITIONED AUSTRALIA WELL TO T A E
ADVANTrAGE OF THE STIMULUS PROVIDED BY THE ENDING OF A
DEBILITATING DROUGHT AND THE BEGINNINGS OF INTERNATIONAL
THE ECONOMIC DECLINE ENDED SHARPLY, AND TURNED INTO STRONG
RECOVERY IN THE SEPTEMBER QUARTER LAST YEAR.
REAL GROWTH IN THAT QUARTER WAS OVER 4 PER CENT, HALF COMING
FROM THE FARM AND HALF FROM THE NON-FARM SECTOR.
A WIDE RANGE OF INDICATORS POINT TO THE CONTINUATION OF
STRONG GROWTH SINCE THEN. 9 97/
WE ARE GRATIFIED ' fHA ' rMI LOY1IL~ NT HAS RESPOND) ED OUICK( LY
TO THE REN2WAI. Or-GROV17h. b WITHf~ JOBS . EXPAND: ING BY TW-, O AND
-NA F'HPRE CEATPBRTIL siUMMIT AND THE END OF
LAST YEAR. SEASONALLY ADJJUSTED UiNEMPLOYMENT FELL FROM
13PER CENT lylAlP RIL TO 9,2 PER CFNT AT. THE END OF THE YEAR0
WE HAVE ALSO MADE SOME PR~ OGRESS IN. BRING1ING DO0WN INF~ LATION
FROM 11-PER CENT IN 1912 70 8.6 PER CENT IN 19830
WE LOOK FORWARD TO GROWTH IN TOTAL GROSS DOM1ESTIC PRODUCT
OF AROUND. 8 PER CENT AND IN NONFflPOUCOFAON 6
* PER CENT THROUGH~ THE CUrcrihENT FXNANCIAL YEAR48 AND THE
* CONTINUATION OF STRONG GlI3WTH IN J11-L85. 11E ARF, ALSO
CONFIDENT THAT THE I N F LPkTN RATE W ILL AGA IN FALL,
THE MOST IMPORTANT IMMEDIATE TASK IS FOR THE GOVERNMENT
TO BROADEN THE RECOVERY INTO AREAS THAT REMAIN WEAK
INCLUDING PRIVATE INVESTMENT.# AND TO SUSTAIN THE RECOVERY
INTO THE FUTURE.
THIS WILL REQUIRE CONTINUED INCOMES RESTRAINT WITHIN THE
FRAMEWORK OF THE PRICES AND INCOMES ACCORD.
IT WILL ALSO REQUIRE US TO AVOID EXCESSIVE PRESSURE IN
FINANCIAL MARKETS, BY ENSURING THAT THE SETTING OF NEXT
YEAR IS BUDGET DEFICIT TAKES FULL ACCOUNT OF TH E TNCREASED
PRIVATE SECTOR BORROW4ING REQUIREMENTS TO FINANCE HIGHER
LEVELS OF PRIVATE INVESTMENT.
WE ARE CONFIDE'NT THAT TH: SE. TrO NIECUIREMENTS CAN BE NiET,
MY GOVERNMENT BELXEVES THAT 7Tl; NEW\ APPROACH-1S TO MACROECONOM1
1C MANAGEMiENT THAT IE ' HAVE I MPLEMENTED SINCE TAKING
OFFICE ARE NECESSARY NOT ONLY FOR RECOVERY FROM RECESSION,
BUT ALSO FOR LONG-TERM GRO1WTHO
BUT SUSTAINING STRONG GROi, lTHl OVER LONG PERIODS WILL
REQUIRE NEW ATTITUDES AND POLICIES IN OTHER AREAS AS WELLo
IT WILL REQUIRE HIGH' LEVELS OF INVESTMENT FROM hME AND ABROADD
AUSTRALIA'S HIGH RATE OF SAVINGS OUT OF INCOMES, WHILE NOT
AS HIGH AS JAPAN ' S PROVIIDES A GOOD BASIS FOR HIGH LEVELS OF
DOMESTIC INVESTMENT.
DOMESTIC SAVINGS WILL NEED TO BE COMPLEMENTED BY INVESTMENT'
FROM ABROAD, MY GOVERNMENT HAS RECENTLY CONFIRMED THE.
MAIN ELEMENTS OF THE POLICIES ON FOREIGN INVESTMENT WHICH
HAVE HAD BIPARTISAN SUPPORT SINCE THEY WERE INTRODUCED
IN THE LAST YEAR OF THE WHITLAM LABOR GOVERNMENT IN 1975.
UNDER THESE POLICIES WE HAVE WELCOMED SUBSTANTIAL AMOUNTS
OF JAPANESE INVESTMENT IN JOINT VENTURES. 9/,
MOS't' IMPORTANT OF ALL Xq OVIiN ENVITMENT XI~ HUMAN SKILLS,,
MY COVERNMENT 13 COMMITT! LD 70 R~ AISIN~ G THE PROPORTION OF OUR
YOUNG PEOPLE tl;-1o EXPEr [ iCE1ii'IGH tLEVELS Or-FORM~ AL CDUCATION,
TO ENSURING THAT11 THE CO" l! TFI! T OF THAT EDUCATION IS APPROPfl. IATE
TO THE COMPLEX fM ODERN V1' ORLD, AND TO IMPROVING SUPPORT FOR A
WIDE RANGE OF TRAINING A10) RETRlAIN'IN\ G ON THE JOB.
HIGH LEVELS OF ECONOMIC GRONTH WILL REQUIRE MORE CO-OPERAT, rv-
LESS COMBATIVE P/. TtERNS OF INDUSTRIAL RELATIONS THAN
AUSTRALIA'EXPERIENCED IN THE* YEARS PRECEDING MY GOVERNMENT s
TAKING OFFICE&
YeHILE THE RECESSIO-N HAS f.!, 03 PLAYED A PART IN RE UCiNG
INDUSTRIAL DISPUTA TION, . WE PElJEVr; THAT OUR N EW' CON S 1 ITA TIV/ E
PROCEDURES AND THE PRICES AND I NCOMES ACCORD HAVE MADESUBSTANTIAL
CONTRIBUTIONS TO IMPROV'ED INDUSTRIAL RELATIONS
OVER THE PAST TEN MONTHS.
AUSTRALIA'S RECENT INDUSTRIAL RELATIONS RECORD IS INDEED'
QUITE REMARKABLE. IN THE TWELVE MONTHS TO OCTOBER LAST
YEAR -THE LATEST PERIOD FOR WHICH DATA ARE AVAILABLE -THE
NUMBER OF WORKING DAYS LOST THROUGH INDUSTRIAL DISPUTES
WAS THE LOWEST FOR FIFTEEN YEARS, AND LESS THAN HALF OF THAT'
FOR THE YEAR ENDED OCTOBER 1982. 114 THE MINING AND MARITIME
INDUSTRIES, WHICH ARE OF SPECIAL INTEREST TO JAPANj THE
IMPROVEMENTS HAVE BlEEN EVEN GREATER, WORKING DAYS LOST IN
THE MINING INDUSTRY IN THE YEAR ENDED OCTOBER 1983 DROPPED
BY 64 PER CENT FROM THE LEVEL IN THE PRECEDING YEAR, l
lot
IN THE MARITIME IN' 1STRY, THE NJtKI-BR OF DAYS LOST IN THE
YEAR TO OCI'OBER 1933 DROPPriD BY 5/ Z FROM THAT IN4 THE~
PRECEDING YEAR,
VIE ARE NWORKING ON IIANY FRONTS TO IMP! ROVE INDUSTRIAL RELATIONS
STILL FURTHE~ R, IN A SPEECH TO THE ANNUAL JOINT MEETING
OF THE AUSTRALIA-JAPAN AND'JAPAN' iSTRALIA BUS. INESS
CO-OPERATION COMMITTEES IN MELBOURNE ON 26 OCTOBER LAST YEAR,
I MENTIONED THE GOVERNMENT S CONCERN AT THE LONG-STANDING~
PROBLEMS OF INDUSTRIAL RELA0IONS IN THE PILBARA REGION IN
WESTERN AUSTRALIA, THE JAPANESE STEEL YNDUSTR3Y DRAWS
A VERY LARGE PART OF. ITS IRON Oma REOUIREMENTS FROM THAT A R EJA
I SAID VHEN THAT THE ESTAflLI $ 1MENT OF AN IRON ORE INDUSTRY
CONSULTATIVE COUNCIL INVOLVING STATE AND FEDERAL GOVERNMENTSP
UNIONS AND EM4PLOYERS WOULD MAKE A SIGNIFICANT CONTRIBUTION
TC IMPROVED INDUSTRIAL RELATIONS IN THE PILBARA.
SINCE THEN.. THERE HAVE BEEN EXTENSIVE DISCUSSIONS INVOLVING
ALL RELEVANT UNIONSi COMPANIES AND THE TWO LEVELS OF
GOVERNMENT IN WHICH ALL PARTIES HAVE GIVEN-THEIR SUPPORT
FOR THE ESTABLISHMENTr OF SUCH A CONSULTATIVE COUNCIL. IT
IS EXPECTED FORMALLY TO BE CONSTITUTED IN MARCH THIS YEAR,-
AFTER WHICH IT WILL ASSESS. THE MOST EFFECTIVE MEANS OF
REGULATING INDUSTRIAL RELATIONS IN THE REGION.
TO SUSTAIN STRONG GROWTH, AUSTRALIA AS A SOCIETY AND ECONOMY
WILL, UNDER THE LABOR GOVERNMENT, BE MORF CAREFUL THAN IN
THE PAST TO ALLOCATE RESOURCES TO THEIR MOST FRODUCTIVE USES.
W~ F ATTACN EQUAL 1I, 1PORTANCE 1* O EK-F! CIEP-! CY IN RESOURCE
ALLOCATION IN THE-rU1BLIC AN)) rRIV\ ATE SECTORSo
WE KNOW THAT TH" Fr'F-ARE MANY FEATURES OF THE REGULAT* ORY
EVI RO0N M E'T IN AUSCTRALIA lUKIC1. INHIBIT GROlfi'H WITHOUT GOOD
REASON IN TRMS~ Oil SOCIAL A'lD OTHER GOALS, * AS IHAVE HAD
OCCASION TO SAY DEFORE, MlY GOVWRNM* ENT DOES NOT 13ELIEVE
IN REGULATION FOR THE SAK( E OF Rl. GULATXONO
tLF HAVE BEGUN THE PROCESS OF REFORM OF THE FINANCIAL SYSTEMa
WITH THE REMOVAL OF A V4IDE RANGE OF EXCHANGE CONTROLS AT
THE TIME OF THE FLOAT" ING OF T[ 1: 7_ AUSTPALI/ AN DOLLAR LAST
AT THE BEGINNING Ojr-THIS YEAR., WE REPLACED QUOTAS ON STEE-' L
IMPORTS BY BOUNTIES ON CERTAIN TY/ PES OF STEEL PRODUCTION.
THIS OCCURRED WIITHIN THE FRAMEWORK OF A STEEL INDUSRY PLAN
INCORPORATING STRONG UNION AND B~ USINESS COMMITMENTS TO
PRODUCTIVITY GROWTH1 AND HAS STRENGTHENED THIS INDUSTRY
WHILE KEEPING IT MORE OPEN TO INTERNATIONAL. MARKET DISCIPLINES.
MORE GENERALLY, OUR INDUSTRY POLICIES ARE BEING DESIGNED
TO PROMOTE THE EXPANSION OF OUR MOST PRODUCTIVE INDUSTRIES,.
AND STRONG GROWTH IN PRODUCTIVITY IN ALL OUR INDUSTRIES.
WE ARE VERY MUCH AWARE THAT THE EFFECTIVENESS WITH WHICH
WE USE NEW TECHNOLOGIES, BOTH IN NEW AND OLD INDUSTRIES,
WILL DETERMINE THE EFFICIENCY OF AUSTRALIAN INDUSTRY, ITS
COMPETITIVE PERFOR." ANCE AND ITS CAPACITY. TO GROW.
WE AR AWR. T0 THA STRONG GROIVTH INi AUSTRALIA ILL
REUIRE US TO A4hTAIN'CLOSE LIPKS llilH TIHE ITERNATXONAL
TRADING SYSTEM., AND TO AK) APT 0OU" PAiThLRNS OF PRODUryIoN
TO CNANGFS 1IN THE~ INTE'i , AlINAL UCONOMiY, WE ARii CONCERNED
TO ENSURE CONSIS{ tiLVICV BTWllZEN OUR DOM~ ESTIC AND INThLrNATIONAL
ECONOM1IC POLICIESO
THE UTILI. SATION OF NEWi TECIINIOLOG~ IES AS WiELL AS NEW
INTERNATIONAL TRADING OPPORTUNITIES WILL REOUIRE MAN') G Pl. 01u
IN OUR SOCIETY TO ACCEPT PA~ STER RATES OF CH-, AN4GC THAN THIEY
HAVE IN THE RECENT PAST: STRUCTURAL CKANGE XN THE EfCOfr* wj
CHANGES IN TECf'NOLOGYj CHfSNGr; S IN TH2E LOCATION AND CONT~ lW. f
OF UIORK0
AND IN A. VIGOROUS DEMOCRACY LIKE AUSTRALIA,, THESE C EAN GU S
A R POSSIBLE ONLY IF TFILRE IS BRO'AD CONSENSUS ABOUT THE
DESIRABILITY OF CHANGE,
THIS BlROAD CONSENSUS CAN BE ACHIEVED ONLY IN THE CONTEXTOF
POLICIES DESIGNED TO AC'_ HIEVE AN EQUITABLE DISTRIBUTION
OF THE BENEFITS OF GROWTH#
AND IT CAN BE ACHIEVED ONLY IF THERE IS CLOSE CONSULTATION
AT ALL LEVELS IN OUR SOCIETY ABOUT THE EFFECTS OF CHANGES
THE AUSTRALIAN GOVERNMENT SEES THE BUILDING AND NURTURING
OF THIS BROAD CONSENSUS AS ITS MOST FUNDAMENTAL CONTRIBUTION
TO IMPROVING AUSTRALIA'S LONG-TERM ECONOMIC PERFORMANCE. 13/,
.4 ~~ Jbz&~ 2A~ FCC) rI
0
I. THE NiC~ E$ S~ ON FV~ O1 Vi DUL~. JTJ../~ 1O2S~.
" 9TH AUS"* RALIA AND) JAPAN A[ RR
NOW RECO'EIRING ASPLACED A NU'MBER OF STRAINS ON' OUR CLOSE:
AND ' 11i10ORTANT ~ oO~ WLTON'
BUT SUCH IS THE CLOEES O'r UNDE-iSTANDING BLUILT UP OVER
THE PAST THREE DECADES, TH. AT NONE OF THESE STRAINS HAS
TIIREATENED THE COUALITY OF 7HE OVER~ ALL RELATIONSHIP I,: TqEEN
OUR COUNTRIESI
IN OCTOIBER LAST YLAR. I N'F FE r EI) TO0 THE DISAPPOINiiMENT
OF AUSTRALIAN EXPECTAT IONS ADC~ rf ~ t LEVEL-S OF jAPAW'SF
PURCHIASES OF tN~-'' AL CO l,'' DI7' YES FizOM AUSTRALIA,
I MADE IT CLEAR THIEN THAT US UNDERSTOOD THE STRUCTURAL
CHANGES IN THE JAPANESE ECONOMY WHICH WERE CAUSING DOIVINWARD
REASSESSMENT OF4. MPORT D-2, AND FOR MINERAL RAW4 MATERIALS$
WE UNDERSTAND ALSO THAT THE RECESSION HAS EXACERBATED
THE EFFECTS OF THESE STRUCTURAL CHANGES FORTUNATEL. Y AN
INFLUENCE THAT WILL RECEDE THROUGH THIS YEAR,
WE ACCEPTED THAT CHANGING ECONOMIC CIRCUMSTANCES LIMITED
THE SIZE OF THE JAPANESE MARKET. OUR CONCERN WAS, AND IS,
ONLY TO ENSURE THAT AUSTRALIA BE GIVEN FAIR ACCESS TO THE
JAPANESE MARKET,
AUSTRALIA DOES NOT ASK FOR SPECIAL FAVOURS IN THE INTERNATION'AL
MARKET PLACE, 14/
1 15/ 1
BlJT 11~ E ASI" JAPA~ tN TO RECOGNT1.">: THE KMYXz'CUMR AND. UNDURINC
ADVANTAoGE" s OF 1 ZAD-IN3 W~ AUSTfl/. LIA0
VIE EXPECT JAPAN\ '' URES. IST P~ S SF ROMl THIRD COUNITRI1LS
TO GAIN IN'C. fRAlFP AC'L: S ' O J. APANESE M~ ARKETS AT AUSTRALIAS
EXPENSE, O NOW; 11. i1 A GROUNS.
FURTHIERMOfREj AS A COUNTRY t'! ICH PAS BEEN A MAJOR AND
RESLIABLE SOURCE OF RAW IIATFR ALS OVERPrNY YEARlS, WEi HAVE
ALEGITIMATE EXPECTATION 71HAT OUR MIARKET SHARE WILL NOT DE
REDUCED IN TrHE NAME 0O,-DIVERS FICATICIN AT A Tl-IME t1HEN SO P. ANY
AUSTRALIAN M NESO ThVELOPED rOAD TI-H'-JAPANJESE iARPTo A RI
OPERPA'nNIG BE1LOW CAPACYY
I SAID IN OCTOBER THAT SOME OF THE PROBLEMS CAU SED 8 Y
THE DISAPPOINTMENT OF EXPr~ CTATIONS ABOUT THE GROWTH IN
JAPANESE IMPORT DEMAND WOULD eE REDUCE2D IF WE CONSUJLTED
MORE CL OSELY ON TRENDS lN EACH OT H ER S ECONOMY# I SEE
THIS AS ONE OF Tl: E MOST IMPORTANT OBJECTIVES OF MY PRESENT"
VISITS1 I SHOULD ADD THAT WE RECOGNISE THAT STRUCTURAL CHANGE IN
THE JAPANESE ECONOMY OPENS UP NEW OPPORTUNITIES AT THE SA14E
TIME AS IT LIMITS OLD ONES, AUSTRALIA IS POTEN'TIALLY A
COMPETITIVE SUPPLIER OF A RANGE OF ADVANCED SERVICES AND
SPECIALISED MANUFACTURES. WE AIRE CURRENTLY EXPENDING
CONSIDERABLE EFFORT IN SECURING THIS POTENTIAL$
AUSTflA'A ANi?-SHillAA N A LOCATIOIN IN T-' v,' FSTHRN
PACIFX t, THE~ tTS AWC GO IN THE 1WO0RLD ECUO0mlYC
WE SEEI OUR~ L0Cl^ YXUN IN THiS nFiGON AS AN IMPO[ RTANT AXD
KI OUR ElfOR1' TS O RAISE OUR LONG-TEflM GRlOWh I~ ROR MA~
THE COIT I NUED DYNWAYI131 OF OUR R[ EGXON DEPEN) IS HEAVILY Oil
THLE MAINTENANCE OF AN OPLEN[, INTERNATWKNAL TRADING SYSTEIM.
T E~ FrOTVAR LU'iAL lNr'U; Rf~ ATh: ONAL Y'?/ DING SYSTEM HAS Yj
W~ KNDCONS XDr-' 2' A, 8L-v BY THE '-POLll-riATX0N OF RETRC IONS,
ON TRADE DURING THE RE1CESS~ ION,
JAPAN 1HAS BEEN HUJRT PARTICULARLY BJY NONJ-TAPlr-F BARRIERS
ON A RANGE OF MANUFACTUW" D GOODlS. OUR DEVELOPING COUNTRY
NEIGHBOURS IN THE WESTERN PACIF~ IC HAVIE BEEN : pM AGED BY HEAVY
RESTRICTIONS ON-' ADE IN LABOUR-INTENSIVE MANUFACTURES AtfD'
AGRICULTURAL PRODUCTS, AUSTRALIA AND NEW ZEALAND HAVE BEEN
HURT BADLY BY THE SUBSIDISAT! ON OF AGRICULTURAL PRODUCTION
* IN EUROPE, JAPAN AND SOME DE~ VELOPING % COUNTRIES, AND
AUSTRALIA'S MARKETS FOR SOME MINERALS AND FOODSTUFFS HAVE
BEEN THREATENED BY INCREASIN'G PRESSURES FOR SPECIAL
BILATERAL TRADING ARRANGEMENTS.
AGAINST THIS BACKGROUND OF DETERIORATION IN THE INTERNATIONAL
TRADING SYSTEM, AUSTRALIA STRON4GLY WELCOMES PRIME MINISTER
NAKASONE IS CALL LAST YEAR FOR A NEW ROUND OF MULTILATERAL
TRADE NEGOTIATIONS. WE WOULD SEE THIS AS AN IMPORTANT
CONTE YUTX ON TO 0 THE U'ORL1 ECOlOfV/ Y
BUT h, 3ELIEVE THAT 11" A i11: NUiND IS TO FRVE ITS PrjllVlocl
IN DEFENDING JND " TENDYN! G TI-LG OPEN, IN fr1, RflAYIONAL NG
SYS~~ i' T MUldST A'RES$ CTI" FLY A jiMBER OF AR. E0S THAT
THE PAST HAVE B3EU PUT ASIDE AS [ FCXcF-IONS YO IHIE GENERAL
TRADING RULES, IT MUST Ar,, DrUSS VFECTlVELY SUBSIDIES AND
NON-TARIF FARRIRS TO TRADE, IT NtUST. ADDRESS EFFETIVEL0Y
COMMODITIES THAT HAVE BE i* PUT ASID-IN THE rAST AS DENG
Too ngmcUT, INCLUDING AGRIlCULTURA. PRODUCTS, AND
LA_, OJVR-' INTNSxvE NANUFATU0D G0O S FROM Dl.} VfiiLOr'ING COUNTRIF:" S
THIS WILL NOT DF EASYd
BUT TOLERATING COiTINUED STAGNATION IN WORLD TRADE WILL BE
MUCH H. ARDER.
OUR TWO COUNTRIES SHARE A STRRONG INTENNE S T IN THE RF-FTA BLISFIMENT
OF TRADE EXPANSION AND ECONOMIC GROWTH THROUGHOUT THE WORLD,
AND IN THE MAINTENANCE OF STRONG TRADE AND GENERAL
ECONOMIC EXPANSION THROUGHOUT OUR REGION.
AT THIS TURNING POINT IN OUR ECONOMIC FORTUNES, WE ARE
WELL PLACED TO WORK TOGETHER TO THIS IMPORTANT END.