TRANSCRIPT -PRIME MINISTER AT FRAGRANT HILLS HOTEL, PEKING
FEBRUARY 1Y84
E AND 0 E -PROOF ONLY
JOURNALIST: PRIME MINISTER THE STEEL PLAN YOU OUTLINED TO PREMIER
ZHAO. HOW REALISTIC IS IT? DO YOU BELIEVE IT CAN SUCCEED?
YES I BELIEVE IT CAN SUCCEED AND THE RA2IC REASON WHY I BEL-
IEVE IT CAN SUCCEED IS THAT THERE ARE MANIFEST ADVANTAGES FOR BOTH
CHINA AND OURSELVELS. IT HAS TO BE UN4DERSTOOD THAT IT'S NOT A TRADE
PLAN AS SUCH, ALTHOUGH IT OBVIOUSLY HAS GREAT ADVANTAGES FOR OUR TRA-
DE. BUT IT REPRESENTS MUCH MORE AN INTEGRATION OF OUR IRON AND STEEL
INDUSTRIES IN A WAY WHICH MAKES A GREAT DEAL OF SENSE FOR CHINA AND
OFFERS THE OPPORTUNITY FOR A VERZY CONSID) ERABLE EXPANSION OF OUR OWN
INDUSTRY. AND I CAN SAY THAT FOLLOWING OUR TALKS YESTERDAY WITH
PREMIER ZHAO AT THE FUNCTION AT THE EMBASSY LAST NIGHT TALKS WERE
HELD, DISCUSSIONS WERE HELD WITH
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COME TO AUSTRALIA AND TALK WITH OUR PEOPLE ZRE. AND I HAVE ALREADY
INITIATIED AT OUR END THE ARRANGEMEN4TS TO GET TOGETHER THE
APPROPRIATE GROUP AND I WILL, THIS EVENING, IN MY DISCUSSIONS AT OUR
RETURN BANQUET WITH PREMIER ZHAO BE INDICATItlG THE WAY IN WHICH WE'VE
MOVED AND EXPRESS THE HOPE TO HIM THAT RECIPROCALLY THEY WILL BE ABLE
TO MOVE AS QUICKLY, SO THAT THE ACTUAL JOINT PARTY CAN MEET TOGETHZR
IN rHE NEAR FUTURE.
JOURNALIST: WHAT SORT OF IMPACT DO YOU THINK THIS WILL HAVE ON THE
AUSTRALIAN STEEL INDUSTRYIN TERMS OF JOBS AND PRODUCTION?
WELL, I DON'T WANT TO PUT FIGURES ON IT AT THIS STAGE EXCEPT
TO SAY THIS THAT IF WE ONLY GOT A R~ ELATIV'ELY SMALL PROPORTION OF
THE GROWTH IN THE CHINESE INDUSTRY, TOWARDS THE END OF THIS CENTURY
IT COULD REPRESENT SOMETHING LIKE A DOUBLING OF OUR CAPACITY OF
INDUSTRY IN AUSTRALIA. AND I DON'T WANT TO OPEN UP UNDULY WIDE
EXPE: CTATIONS, BUT I DO MAKE THIS POINT THAT THE CONCEPT OBVIOUSLY IS
ECONOMICALLY ATTRACTIVE TO T( HE CHINESE AS WELL AS TO OURSELVES. AND
IT MUST BE SEEN AS CAPABLE OF SOME SORT OF EXTENSION TO OTHER
COUNTRIES IN OUR REGION. AND WE WILL BE LOOKING AT THAT AS WELL.
JOURNALIST: RELUCTANT TO MOVE INTO STEEL EXPORTS IN THE PAST.
HY DO YOU THINK IT MIGHT BE DIFFERENT THIS
TIME. AND SECONDLY,
WILL AUSTRALIA'S INDUSTRIAL RELATIONS BE A PROBLEM IN THIS SORT' OF
PLAN AND DID YOU DISCUSS THIS WITH THE PREMIER?
GOING TO IHE FIRST QUESTION IN THE PAST B( HP, AS YOU RIGHTLY
SAY, HAS BEEN SOMEWHAT LESS THAN IMAGINATIVE AND ADVENTURESOME IN
ITS PLANNING IN REGARD TO EXPORT MARKETS. BUT I THINK ONE MUST SAY
THIS THAT NOW THE ECONOMIC REALITIES OF THE WORLD SITUATION ARE
IMPOSING CERTAIN IMPERATIVES UPON THE PLANNING STRUCTURES AND INTENTIONS
OF COUNTRIES AROUND THE WORLD INCLUDING IN OUR REGION. AND
THAT MEANS THAT THERE IS ON THE PART OF THESE COUNTRIES IN OUR REGION
QUITE COMPELLING REASONS WHY. THEY SHOULD NOW BE PREPARED TO DISCUSS
WITH US PLANS ON A LONG TERM BASIS FOR THE SUPPLY RAW STEEL. WE ARE
NOT NOW IN THE PERIOD THAT PERHAPS CHARACTERISED THE 50' AND
AND THE EARLY ' 70' S WERE THERE WERE SORT OF UNLIMITED VISTAS OPEN
TO A NUMBER OF COUNTRIES IN WHICH THEY THOUGHT THEY COULD DO EVERYTHING
THEMSELVES. YOU REALISE THAT IN THE TOUGHER INTERHATIONAL
ENVIRONMENT NOW IT MAKES SENSE TO ALL COUNTRIES TO SEE HOW BY SOME
DEGREE OF INTEGRATION WITH OTHER COUNTRIES THEY CAN REDUCE THEIR OWN
INVESTMENT LEVELS AND DEMANDS AND SO THE OPPORTUNITIES FOR THOSE
REASONS ARE GREATER NOW. THE OTHER POINT I WOULD MAKE IS THAT IN THE
PAST YOU'VE HAD CONSERVATIVE GOVERNMENTS IN AUSTRALIA WHO HAVEN'T
BEEN COMMITTED TO THE CONCEPT OF AN INTEGRATED PLANNING APPROACH FOR
THE BENEFIT OF THE AUSTRALIAN ECONOMY AT THAT PRESENT TIME ANDI INTO
THE FUTURE. YOU PO NOW HAVE A GOVERNMENT WHICH IS CONCERNED IN CONSULTATION
WITH INDUSTRY TO PLAN AND THINK FOR THE FUTURE. SO I THINK
THCSE TWO FACTORS, THE EXOGENOUS REALITIES, IF YOU LIKE, OF THE INTER
-NATIONAL ECONOMIC SITUATION ON THE ONE HAND, AND SECONDLY, THE FACT
THAT YOU DO HAVE A GOVERNMENT COMMITTED TO PLANNING FOR THE FUTURE.
THOSE TWO FACTORS MAKE THE DIFFERENCE.
THE SECOND QUESTION THAT MR KELLY HAD ASKED AND THAT WAS IN REGARD TO
INDUSTRIAL RELATIONS YES, I SPECIFICALLY RAISED THIS QUESTION WITH
PREMIER ZHAO AND INDICATED THAT IF WE'RE GOING TO ENTER INTO THIS
IN7EGRATION OF OUR IRON AND STEEL ECONOMIES THEN WE WOULD UNDER
-STAND THE DESIRE ON THEIR PART TO HAVE A CONTINUITY OF SUPPLY. AND
I INDICATED TO HIM, INDEED I GAVE HIM THE UiNDERTAKING, THAT PART OF
OUR COMMITMENT IN THIS PROCESS WOULD BE THAT NOT AT THE END, AS SO
OFTEN HAPPENS IN THE PAST, WHERE YOU'VE ESTABLISHED AN ENTERPRISE
AND GET THINGS GOING AND THEN YOU START TO THINK ABOUT INDUSTRIAL
RELATIONS AT THE OUTSET WE WOULD BE TALKING WITH THE UNIONS SO THAT
IN THE ESTABLISHMENT OF THIS RELATIONSHIPMENT THERE WOULD BE
INDUSTRIAL RELATIONS CONTIRACTS ENTERED INTO WHICH WOULD HAVE GRIEVANCE
PROCEDURES SO THAT THERE WOULD BE A CAPACITY ON THE PART OF OUR
CUSTOMERS AND OUR PARTNERS IN SUICH AN INTEGRATED PROCESS OF KNOWING
THAT THEY WERE NOT GOING TO HAVE THEIR SUPPLIES INTERRUPTED AS A
RESULT OF AVOIDABLE INDUSTRIAL RELATIONS TROUBLES. SO THAT WOULD BE
DONE AT THE OUTSET WE WOULD NEGOTIATE WITH THE UNIONS TO GIVE
CONFIDENCE TO OUR PARTNERS.
JOURNALIST: ( INAUDIBLE)
THE TOTAL INDUSTRIAL RELATIONS CONTRACTS, IN WHICH WE INCLUDE
THE WAGES ELEMENT. BUT, OF COURSE, WE HAVE THAT PART OF THE INDUSTRIAL
RELATIONS SITUATION COVERED BY THE NATIONAL ACCORD AS IT IS NOW.
JOURNALIST: IS THIS JUST THE BEGINNING, PRIME MINISTER. CAN YOU
IDENTIFY ANY OTHER AREAS WHERE WE CAN
OBVIOUSLY IHE IRON AND STEEL INDUSTRY IS BASIC FOR TWO REASONS
IT IS BASIC TO ALL ECONOMIES. BUT SECONDLY IT'S VERY IMPORTANT FOR
US BECAUSE AUSTRALIA IS BLESSED WITH ' W! E CONJUNCTION OF UNLIMITED
IRON ORE SUPPLIES AND COKING COAL SUPPLI. ES OF TOP QUALITY. AND
THEREFORE IT MAKES SENSE TO START IN THIS AREA. AS I SAID TO YOJ
BEFORE THIS REPRESENTS A CONCEPT THAT I HAVE BEEN THINKIN~ G ABCUT
FOR A LONG TIME.' IT REPRESENTED A PART OF OUR THINKING AND ANALYSIS
IN THE CRAWFORD INQUIRY. AND WHILE THE IRON AND STEEL INDUSTRY LE1NDS
ITSELF MOST IMMEDIATELY AND FUNDAMENTALLY TO OUR THINKING OBVIOUSLY
WE WOULD WANT TO BE THINKING, AS I'VE SAID AS YOU KNOW FOR MONTHS AND
ON THIS TRIP, ABOUT HOW WE CAN ENMESH AND INTEGRATE OUR ECONOMY WITrH
THIS REGION. BECAUSE, I REPEAT, AS IT WOULD HAVE BECOME APPARENT TO
ALL OF YOU NOW I THINK(, OF JUST HOW DUNAIIIC AND RAPIDLY GROWING THIS
WHOLE REGION IS. AND IT'S MANIFESTLY FOR THE FUTURE BENEFIT OF
ALL AUSTRALIANS IF WE CAN INCREASE THIS DEGREE OF INTEGRATION.
WE'RE GOING TO HAVE A LOT ON OUR PLATE NOW IN GIVING EFFECT TO THE
AGREEMENT WITH THE CHIN4ESE TO STUD) Y THIS INTEGRATION IN THE IRON AND
STEEL INDUSTRY. AND I REPEAT I HAVE ALREADY INITIATED THE WORK ON
OUR SIDE AND I BELIEVE THAT THE CHINESE ARE READY TO MOVE JUST AS
QUICKLY AS WE ARE.