EMBARGOED AGAINST DELIVERY CHCKAGImSTDEIVR
PRIME MINISTER
SPEECH BY THE PRIME MIN( ISTER
TO THE PACIFIC BASIN ECONOMIC COUNCI. L 16 MARCH .1984
IGREATLY WELCOME THE OPPORTUNITY TO ADDRESS THIS
GATHERING THAT PBEC HAS BROUGHT TOGETHER JUST A MONTH
AFTER MY RETURN FROM NORTHEAST AND SOUTHEAST ASIA,
FROM AELL BEFORE THE TIME THE LABOR GOVERNMENT TOOK
OFFICE LAST MARCH, I HAVE STRESSED THE IMPORTANCE OF
OUR LOCAI0N~ IN THE WORLD'S MOST DYNAMIC REGION TO OUR
OWN LONG-TERM GROWTH PROSPECTS,
THE EFFECTIVE INTEGRATION OF AUSTRALIA'S ECONOMY INTO
THIS RAPIDLY EXPANDING REGION REQUIRES AN ACTIVE AUSTRALIAN
TRADE POLICY, AND POLICIES WHICH SUPPORT DYNAMI1C INDUSTRY
ADJUSTMENT AT HOME*
BUT ABOVE ALL ELSE, IT REQUIRES A PRIVATE SECTOR THAT IS
ALERT TO THE OPPORTUNITIES FOR TRADE AND INVESTMENT IN
OUR REGION, AND EFFECTIVE IN ITS RESPONSE,
FOR MANY YEARS THE PACIFIC BASIN ECONOMIC COUNCIL HAS BEEN
AHEAD OF THE AUSTRALIAN COMMUNITY AND AUSTRALIAN GOVERNMENTS
IN ITS AWARENESS OF ECONOMIC OPPORTUNITIES IN OUR REGION,
AND ITS WILLINGNESS TO MAKE GOOD USE OF THEM.
NOW, AS THE GOVERNMENT AND COMMUNITY MOVE QUICKLY TO
BUILD CLOSER RELATIONS BETWEEN AUSTRALIAIIAND THE COUNTRIES
OF OUR REGION, I AM CONFIDENT THAT AUSTRALIAN BUSINESS
WILL FIND -ITS.; EFFORTS EVEN MORE REWARDING THAN
BEFORE. ONE PARTICULARLY STRONG IMPRESSION OF MY RECENT VISIT
WAS THAT THE ECONOMIC DYNAMISM OF THE REGION OWES MUCH
TO REGIONAL COUNTRIESI READINESS TO ADAPT TO CHANGE,
JAPAN, OF COURSE, IS THE BEST KNOWN EXAMPLE, BUT THE
REPUBLIC OF KOREAo SINGAPORE AND MALAYSIA HAVE ALSO
MADE AND ARE CONTINUIN( TO MAKE MAJOR ADJUSTMENTS TO
I". NCREASE THEIR ECONOMIC EFFICIENCY.
A SECOND KEY IMPRESSION IS THE DEGREE TO WHICH THOSE
COUNTRIES HAVE DEVELOPED AN EXTERNAL ORIENTATION IN THEIR
ECONOMIC POLICIES. THERE IS NOT THE SLIGHTEST DOUBT THAT
BY BEING ALERT TO THE COMMERCIAL POSSIBILITIES OUTSIDE
THEIR BORDERS AND BY GIVING PARTICULAR ATTENTION TO THE
CONDITIONS OF INTERNATIONAL COMPETITIVENESS, THE COUNTRIES
OF THE REGION HAVE MANAGED TO MAINTAIN LEVELS OF GROWTH AND
INVESTMENT IN THEIR INDUSTRIES THAT WOULD OTHERWISE NOT HAVE
BEEN POSSIBLE.
I AM MORE THAN EVER CONVINCED THAT, HOWEVER MUCH WE MIGHT
BE LIVING IN AN AGE OF THE GLOBAL ECONOMY, WE SHOULD GIVE
MORE EMPHASIS TO TRADE WITH THE COUNTRIES OF OUR REGION.
THIS IS NOT TO SUGGEST THAT OUR TRADITIONAL MARKETS IN
EUROPE AND NORTH AMERICA ARE NO LONGER IMPORTANT;
INDEED, THESE MARKETS REMAIN OF CONSIDERABLE VALUE TO US,
THE REALITY, HOWEVER, IS THAT IN THE PAST TWO DECADES OUR
EUROPEAN MARKETS HAVE DECLINED SIGNIFICANTLY AND OUR
MAJOR TRADING PARTNER HAS BECOME JAPAN, THE ASEAN COUNTRIES
AND KOREA HAVE ALSO COME TO ASSUME VERY CONSIDERABLE
IMPORTANCE IN THE OVERALL PATTERN OF AUSTRALIA'S TRADING
INTERESTS. 4
IN RECENT YEARS OUR FASTEST GROWING TRADE HAS BEEN WITH THE
ASIAN REGION. THE OVERALL TREND IS TOWARDS SIGNIFICANTLY
CLOSER AUSTRALIAN INVOLVEMENT IN REGIONAL ECONOMIC ACTIVITY.
THESE FACTS ARE NOW RECOGNISED BY MOST AUSTRALIANS.
PEOPLE IN BUSINESS SUCH AS YOURSELVES ALSO HAVE A KEEN
APPRECIATION OF THE OPPORTUNITIES THESE CHANGES HAVE
PRESF ', ED FOR AUSTRALIAN TRADE AND ECONOMIC INTERESTS.
To FULLY EXPLOIT SUCH OPPORTUNITIES. REQUIRES, HOWEVER,
THAT AUSTRALIANS GET MUCH CLOSER TO THE ASIAN SCENE.
THERE IS NO SUBSITUTE FOR ON-THE-GROUND EXPERIENCE, FOR
AUSTRALIANS CULTURALLY ATTUNED TO THE SENSITIVITIES OF THE
REGION, AND BEING EXPERT IN THEIR APPRECIATION OF WHERE
DEVELOPMENT TRENDS IN ASIA ARE HEADING.
EQUALLY AS IMPORTANT IS THE NEED FOR AUSTRALIANS TO CONSIDER
MORE CAREFULLY AND DELIBERATELY WHAT WE MUST DO AT HOME
TO ENSURE THAT WE ARE MORE COMPETITIVE AND PROPERLY
POSITIONED TO CAPITALISE ON WHAT IS HAPPENING AROUND US,
ESSENTIALLY THIS MEANS CONFRONTING DIRECTLY THE ISSUES
INVOLVED IN LONG-TERM STRUCTURAL CHANGE.
IN SUMMARY, WHAT IS NEEDED IS A MATCHING OF ASIAN
OPPORTUNITY WITH AUSTRALIAN CAPACITY.
FOR TOO LONG WE HAVE STAYED AT ARMS LENGTH FROM ASIA.
WE HAVE BEEN CONTENT TOO OFTEN TO MOUTH RECOGNITION
THAT OUR FUTURE LIES WITH ASIA WITHOUT ADDRESSING EITHER
THE IMPLICATIONS OF THAT RECOGNITION OR THE RESPONSIBILITIES
IT IMPOSES ON US. OUR APPROACH TO ASIA HAS BEEN TOO
COMPArMENTALISED.
DURING MY RECENT TRIP To ASIA I SOUGHT TO DRAW THESE
STRANDS TOGETHER* THE MAJOR THEME OF MY VISIT WAS
THAT THE FUTURE ECONOMIC DEVELOPMENT OF THIS COUNTRY
WILL INCREASINGLY BE BOUND UP WITH THE ASIA-PACIFIC
REGION. ON ONE SIDE THIS MEANT VIGOROUSLY ESTABLISHING
AUSTRALIA'S CLAIM TO A SIGNIFICANT SHARE OF ASIA'S
GROWING MARKETS. ON THE OTHER SIDE IT MEANT CONFRONTING
THE EXTENT TO WHICH AUSTRALIA WOULD, OVER THE LONGER TERM,
NEED TO BEGIN RESTRUCTURING ITS ECONOMY IF IT WERE
SUCCESSFULLY TO ENMESH ITSELF INTO THE DYNAMIC GROWTH
OF THE REGION$
AUSTRALIA S-IMPLY CANNOT ASSUME THAT IT CAN LAY CLAIM TO
THE BENEFITS OF GROWTH IN THE REGION UNLESS AT THE SAME
TIME IT IS PREPARED TO MAKE A POSITIVE CONTRIBUTION
TO THE REGION.
I MAKE NO APOLOGY FOR HAVING BEEN A VIGOROUS ADVOCATE
OF AUSTRALIA' S TRADING CLAIMS WITHIN THE REGION.
AUSTRALIA'S PRIMARY PRODUCT, RAW MATERIAL AND PROCESSED
PRODUCT EXPORTS TO JAPAN, KOREA, CHINA AND THE ASEAN
COUNTRIES ARE VITALLY IMPORTANT TO THE DEVELOPMENT NEEDS
OF ALL THOSE COUNTRIES AND ACCOUNT FOR A VERY LARGE
PROPORTION OF AUSTRALIA'S TOTAL EXPORT INCOME, THERE
IS THEREFORE A CLOSE INTERDEPENDENCE BETWEEN AUSTRALIAN
AND REGIONAL ECONOMIC INTERESTS1
DURING THE VISIT I MADE IT VERY CLEAR THAT, WHATEVER
EXTRANEOUS PRESSURES MIGHT BE AT WORK, AUSTRALIA SHOULD
MAINTAIN' ITS POSITION IN THE JAPANESE BEEF MARKET AND
BE GIVEN IMPROVED ACCESS To KOREAN MARKETS IN BEEF,
GRAIN AND PROCESSED FOOD, IN EACH OF JAPAN, KOREA,
CHINA AND MALAYSIA I ALSO PRESSED STRONGLY AUSTRALIA'S
CLAIMS TO A VERY SIGNIFICANT SHARE OF THOSE COUNTRIES'
IRON ORE AND COAL IMPORT REQUIREMENTS.
IN PUTTING AUSTRALIA'S CASE I PARTICULARLY EMPHASISED OUR
POSITION AS A HIGHLY COMPETITIVE, RELIABLE SUPPLIER OF
PRIMARY PRODUCTS AND RAW MATERIALS. IN DOING SO I WAS
ABLE TO POINT NOT ONLY TO THE EFFICIENCY OF AUSTRALIAN
PRODUCERS, bUT ALSO TO THE COMPARATIVE INDUSTRIAL PEACE
WHICH HAS PREVAILED IN AUSTRALIA SINCE THE AUSTRALIAN
LABOR GOVERNMENT'S ASSUMPTION OF OFFICE.
INDEED THE FACT THAT THE NUMBER OF INDUSTRIAL DISPUTES
IN THE TWELVE MONTHS TO: NOVEMBER 1933 WAS THE LOWEST IN
FIFTEEN YEARS WAS PARTICULARLY APPRECIATED BY LEADERS OF
OF INDUSTRY AND GOVERNMENT IN MANY OF THE COUNTRIES VISITED.
YESTERDAY, THE DECISIVE IM4PROVEMENT IN OUR INDUSTRIAL
RELATIONS PERFORMANCE WAS CONFIRMED, WITH THE RELEASE OF
DATA SHOWING THAT THE NUMBER OF JOBS LOST PER THOUSAND
WORKERS IN 1983 WAS OVER 40 PER CENT LOWER THAN IN 1982,
AND THE LOWEST IN SIXTEEN YEARS.
THE IMPORTANCE COUNTRIES SUCH AS JAPAN, KOREA, MALAYSIA
AND CHINA ATTACHED TO THIS ASPECT REINFORCES MY
VIEW THAT ADHERENCE TO THE PRICES AND INCOMES ACCORD
PLAYS AN IMPORTANT PART IN SECURING CONDITIONS CONDUCIVE
TO THE LONG-TERM QUALITY OF OUR ECONOMIC RELATIONSHIPS
WITH THE REGION. THIS IS QUITE APART FROM THE CENTRAL
ROLE IT HAS TO PLAY IN DOMESTIC ECONOMIC MANAGEMENT.
THE RESPONSES TO MY PRESENTATION OF AUSTRALIAN TRADING
INTERESTS WERE VERY ENCOURAGING. PERHAPS MOST IMPORTANT
WAS THE ASSURANCE OF PRIME MIN[ STER NAKASONE THAT JAPAN
WOULD NOT SOLVE ITS TRADING PROBLEMS WITH THIRD COUNTRIES
AT THE EXPENSE OF AUSTRALIA-JAPAN TRADE, THIS ASSURANCE
IS OF CRITICAL SIGNIFICANCE TO A NUMBER OF AUSTRALIAN
TRADING INTERESTS. IT STANDS AS A CLEAR ACKNOWLEDGEMENT
OF THE ENDURING QUALIT IES OF AUSTRALIA AS A RELIABLE AND
COMPETITIVE SUPPLIER AND OF THE DANGERS POSED TO ORDERLY
INTERNATIONAL TRADING ARRANGEMENTS BY ANY SURRENDER
TO BILATERIALISMI IT IS AN ASSURANCE TO WHICH
IATTACH PARTICULAR IMPORTANCE.
IWOULD EXPECT IT TO FIND A POSITIVE REFLECTION IN THE
APPROACH TAKEN BY BOTH AUSTRALIA AND JAPAN TO CURRENT
NEGOTIATIONS ON BEEF, COAL AND IRON ORE.
QUITE APART FROM THE OPPORTUNITY IT PRESENTED TO PURSUE
' MATTERS OF TRADITIONAL INTERESTj MY VISIT ALSO WAS AN
OCCASION TO WEIGH THE SIGNIFICANCE FOR AUSTRALfiAN TRADING
INTERESTS OF THE CHANGING STRUCTURES AND DEMANDS OF
THE REGIONAL ECONOMIES#
SOME VERY SIGNIFICANT ADJUSTMENTS ARE GOING TO HAVE TO
BE MADE By AUSTRALIAN PRODUCERS IF THE MOMENTUM OF EXISTING
TRADE RELATIONSHIPS IS TO BE MAINTAINED. IMPORTANTLY THE
STRUCTURE OF AUSTRALIA'S TRADE WITH COUNTRIES SUCH AS
JAPAN WILL HAVE TO BE BROADENED NEW MARKETS WILL
HAVE TO BE DEVELOPED WITH A MORE DIVERSIFIED, MORE
SPECIALISED PRODUCT MIX. WITH JAPAN THIS WILL MEAN
FOCUSSING PARTICULARLY ON THE OPPORTUNITIES ASSOCIATED WITH
HER IMPORT EXPANSION SCHEME; WITH CHINA IT WILL MEAN
CAREFUL EFFORT TO EXPAND TWO-WAY TRADE WITHIN THE ACTION
PLAN!' WITH KOREA AND THE ASEAN COUNTRIES IT WILL MEAN
CONTINUED, CLOSE, ON-THE-SPOT'MONITORING OF THE POSSIBILITIES
OPENING UP ON AN ALMOST DAILY BASIS@
MY VISITS To TOKYO AND OSAKA REINFORCED MY VIEW THAT JAPAN
WILL REMAIN A KEY COUNTRY IN AUSTRALIA ' S CALCULATIONS. IT
IS TRUE THAT THE GROWTH IN OUR EXPORTS OF MINERALS TO
JAPAN WILL NOT BE COMPARABLE TO THAT ACHIEVED IN EARLIER
YEARS, BUT THIS DOES NOT GAINSAY THE IMPORTANCE OF THE
JAPANESE MARKET IN ABSOLUTE TERMS; OUR TRADE WITH JAPAN
IS STILL EQUAL TO THAT OF OUR NEXT FIVE T. RAD. ING PARTNERS
COMBINED.
JAPAN IS A LARGE, AFFLUENT AND ATTRACTIVE MARKET, AS YOU
WOULD ALL KNOW, HOWEVER, IT IS A SPECIALISED MARKET WITH
PROBLEMS OF PENETRATION QUITE DIFFERENT FROM THOSE IN OTHER
AUSTRALIAN OVERSEAS MARKETS,
RECOGNISING THIS FACT I WAS ABLE IN MY DISCUSSIONS IN JAPAN
TO ACHIEVE TWO SIGNIFICANT DEVELOPMENTS TO TAKE FULL
ADVANTAGE OF JAPAN'S IMPORT EXPANSION SCHEME, FIRST, THIS
YEAR WE WILL SEND A HIGH LEVEL TRADE MISSION TO JAPAN TO
EXAMINE NEW EXPORT OPPORTUNITIES, SECOND, THE JAPANESE
FOR THEIR PART HAVE ALSO AGREED TO SEND A MAJOR TRADE
MISSION TO AUSTRALIA TO HELP IDENTIFY WHICH AUSTRALIAN
PRODUCTS MIGHT BE OF PARTICULAR INTEREST TO JAPAN.
I SHOULD EXPECT ALL OF YOU
HERE TO RESPOND VERY POSITIVELY TO ANY SUCH DEMONSTRATION
OF JAPANESE INTEREST.
ANOTHER PARTICULARLY VALUABLE FEATURE OF MY VISIT TO JAPAN
WAS THE OPPORTUNITY IT PROVIDED TO CONSIDER CLOSELY JAPANESE
EXPERIENCE IN INDUSTRY RESTRUCTURING, JAPAN HAS EVOLVED
HABITS OF CONSULTATION AND DOMESTIC INTERACTION IN THE
FORMULATION AND IMPLEMENTATION OF POLICIES THAT HAVE
OBVIOUSLY BEEN AN IMPORTANT FACTOR IN HER COMPARATIVE
SUCCESS IN DEALING WITH TE PROBLEMS ASSOCIATED WITH
STRUCTURAL CHANGE,
I_
THE AUSTRALIAN ECONOMY, LIKE JAPAN, HAS UNDERGONE
CONSIDERABLE STRUCTURAL CHANGE, INCLUDING A HUGE
CONTRACTION OF MANUFACTURING EMPLOYMENT OVER THE PAST DECADE$
REGRETTABLY IN THE PAST CHANGE HAS OCCURRED WITHOUT
GOVERNMENTS BEING INVOLVED CONSTRUCTIVELY IN ITS
MANAGEMENTj OR THE COMMUNITY UNDERSTANDING THE PROCESSES
OF CHANGE. I HAVE SAID MANY TIMES AUSTRALIANS MUST COME
TO. TERMS WITH THE CONTINUING CHANGE IN OUR INDUSTRY
STRUCTURES. THE PARTICULAR CHALLENGE WE ALL FACE IS TO
MANAGE THE FUTURE RATHER THAN MERELY REACT WHEN IT IS UPON US,
IT IS WITH THIS IN MIND THAT THE GOVERNMENT IS NOW MOVING
TO DEVELOP ARRANGEMENTS FOR CONSULTATION, INFORMATION
SHARING, AND LONG-TERM PLANNING ON . THESE ISSUES,
THE GOVERNMENT INTENDS PROVIDING A FRAMEWORK DEFINING MORE
PRECISELY THE CONTEXT WITHIN WHICH INDUSTRIAL DgyLOPMENT
WILL OCCUR. MORE SPECIFICALLY, AND CONSISTENT WITH THE
NOW WIDELY ACCEPTED UNDERSTANDING THAT CHANGE MUST OCCUR
IF GROWTH IS TO ENSUE, WE AIM TO DEVELOP AND APPLY POLICY
IN A WAY WHICH FACILITATES CHANGE WHILE MINIMISING THE
HARDSHIP ASSOCIATED WITH SUCH CHANGE,
SENATOR BUTTON'S CO-ORDINATION OF THE WORK OF A RANGE OF
MINISTERS IN AREAS RELEVANT TO STRUCTURAL CHANGE IN THE
ECONOMY IS A REFLECTION OF THE DELIBERATENESS WITH WHICH THE
GOVERNMENT IS ADDRESSING THE POLICY ISSUES-INVOLVED.
11.
SIMILARLY EPAC'S CALL FOR THE FORMULATION OF AN ACTIVE
INDUSTRY DEVELOPMENT STRATEGY REFLECTS BROADER COMMUNITY
INTEREST IN ADDRESSING THESE MATTERS SYSTEMATICALLY,
EPAC HAS SAID THAT SUCH A STRATEGY SHOULD:
PROVIDE ENCOURAGEMENT AND OPPORTUNITIES TO PLAN
AND INVEST BY INDUSTRIES AND ENTERPRISES INVOLVED
IN EXPANSION OF COMPETITIVE PRODUCTION;
IMPROVE AND PROVIDE MORE EFFICIENTLY THE
INFRASTRUCTURE FOR INDUSTRY DEVELOPMENT;
GIVE INDUSTRY AND ITS WORKERS THE OPPORTUNITY
TO ADJUST TO CHANGE WITHIN STABLE PROGRAMS THAT
ARE KNOWN IN ADVANCE OF THEIR APPLICATION; AND
REDUCE ARTIFICIAL AND BUREAUCRATIC REGULATION THAT
ENCOURAGES NEITHER ECONOMIC EFFICIENCY NOR SOCIAL
EQUITY.
WITHIN A MONTH OF COMING TO OFFICE THE GOVERNMENT MOVED
DECISIVELY TO IMPLEMENT SUCH AN APPROACH IN THE STEEL
INDUSTRY, WITH THE WELL-KNOWN FAVOURABLE RESULTS FOR
SECURITY OF EMPLOYMENT AND INVESTMENT.
it
OBVIOUSLY IT IS STILL EARLY DAYS AND MUCH WORK REMAINS TO
BE DONE, THE CHANGES INVOLVED WILL ONLY BE GRADUALLY
IMPLEMENTED INDEED WHAT IS INVOLVED IS OF ITS NATURE
A LON 7-TERM EXERCISE. BUT THE VARIOUS ELEMENTS OF A POSITIVE
AND CONSTRUCTIVE POLICY APPROACH ARE NOW COMING INTO PLACE.
INDIVIDUAL FIRMS ' MUST IN THE END TAKE THE CRUCIAL DECISIONS
UPON WHICH AUp'RALIA'S COMPETITIVE EDGE WILL ULTIMATELY
HINGE, I i LOOK TO ALL OF YOU, AS LEADERS OF AUSTRALIA'S BUSINESS
AND INDUSTRY, TO RECOGNISE THE CHALLENGE AND TO RISE TO
THE OPPORTUNITIES IT PRESENTS,
MR CHAIRMAN,
IWILL NOW COMMENT BRIEFLY ON THE HIGHLIGHTS OF MY VISITS
TO OTHER COUNTRIES WITHIN THE REGION.
IN SOUTH KOREA THERE WAS PARTICULAR CONCERN ABOUT THE TRADE
IMBALANCE MORE THAN TWO TO ONE IN AUSTRALIA'S FAVOUR,
THERE WAS ALSO A NEED TO REASSURE KOREAN BUSINESS AND
GOVERNMENT LEADERS THAT THE NUMBER OF ANTI-DUMPING AND
DEVELOPING COUNTRY TARIFF PREFERENCE CASES BROUGHT FORWARD
By AUSTRALIAN INDUSTRY DID NOT REFLECT DISCRIMINATION
AGAINST KOREAN INTERESTS.
13,
I SUGGESTED THERE WAS A CERTAIN INEVITABILITY ABOUT THE
IMBALANCE IN THE BILATERAL TRADE, AS LONG AS AUSTRALIA
REMAINED A COMPETITIVE AND FUNDAMENTALLY RELIABLE SUPPLIER
OF THE RAW MATERIALS AND FOODSTUFFS THAT ARE ESSENTIAL TO
KOREA'S DEVELOPMENT NEEDS THE IMBALANCE WOULD BE LIKELY TO
PERSIST WHILE KOREA'S STAGE'OF DEVELOPMENT MADE SUCH
INTENSE DEMANDS ON THESE PRODUCTS.
I NEVERTHELESS STRONGLY URGED KOREA ACTIVELY TO EXPLORE,
IN CO-OPERATION WITH THE AUSTRALIAN DEPARTMENT OF TRADE,
OPPORTUNITIES IN THE AUSTRALIAN MARKET, AT THE SAME TIME
I REITERATED AUSTRALIA'S KEEN INTEREST BOTH IN SECURING
ACCESS TO KOREAN MARKETS CURRENTLY DENIED US AND IN
INCREASING OUR EXISTING MARKET SHARE IN ITEMS PRESENTLY
TRADED. KOREA HAS THE POTENTIAL TO ASSUME A MORE PROMINENT PLACE
IN AUSTRALIA'S ECONOMIC PERSPECTIVES. WE SHOULD ALL WORK TO
UTILISE FULLY THIS POTENTIAL$ IT IS PERHAPS SALUTARY, HOWEVER,
TO REMIND OURSELVES OCCASIONALLY THAT JUSTAS WE LOOK TO
KOREA FOR COMMERCIAL OPPORTUNITIES, SO WILL THE KOREANS
BE LOOKING TO USA
14.
MLONG DISCUSSIONS WITH PREMIER ZHAO IN CANBERRA LAST
YEAR AND IN BEIJING LAST MONTH HAVE CONVINCED ME THAT CHINA
HAS ENTERED AN IRREVERSIBLE PROCESS OF STRONG ECONOMIC
GROWTH PREMISED ON RAPIDLY EXPANDING TRADE, INVESTMENT
AND TECHNOLOGICAL TIES WITH THE REST OF THE WORLD,
THIS HAS IMMENSE IMPLICATIONS FOR AUSTRALIA AND, INDEEDj
FOR OUR REGION, AND FOR THE WORLD.
A PARTICULAR HIGHLIGHT OF MY VISIT TO CHINA WAS THE
AGREEMENT BETWEEN PREMIER ZHAO AND MYSELF TO ESTABLISH
A JOINT STUDY GROUP TO EXPLORE THE SCOPE FOR INTEGRATION
OF AUSTRALIA'S AND CHINA'S IRON AND STEEL INDUSTRIES.
THE PROJECT HAS FROM THE OUTSET COVERED THE BROAD AREA
OF OPPORTUNITIES FOR TRADE AND INVESTMENT BETWEEN THE IRON
AND STEEL INDUSTIRES OF AUSTRALIA AND CHINA, INCLUDING
EXPORTS OF IRON ORE TO CHINAj CHINESE INVESTMENT IN
AUSTRALIAN IRON MININGj AUSTRALIAN EXPORTS OF PROCESSED
IRON AND SEMI-PROCESSED STEEL TO CHINA; AUSTRALIAN
INVESTMENT IN CHINESE STEEL MAKING; AND THE SUPPLY
OF IRON AND STEEL-MAKING TECHNOLOGY FROM AUSTRALIA TO CHINA.
THE CHINA-AUSTRALiA IRON AND STEEL INITIATIVE IS AN EXAMPLE
OF A sf-c.' ECT THAT REQUIRES PARTICIPATION OF ALL INTERESTED,
PARTIES IN THE COMMUNITY TO ENSURE ITS SUCCESS. IT CANNOT
BE ACHIEVED BY COMPANIES WORKING ALONE BUT MUST BE
THROUGH A JOINT EFFORT REQUIRING PARTICIPATION FROM
FEDERAL AND STATE GOVERNMENTS, BUSINESS AND UNIONS$
150
THE ESSENTIAL ROLE THAT THE TWO NATIONAL GOVERNMENTS HAVE
TO PLAY IS TO PROMOTE CONFIDENCE IN THE SECURITY OF THE
RELATIONSHIP AND TO DEVELOP POLICIES WHICH ALLOW EACH
OTHERS IINDUSTRIES TO DEVELOP IN COMPLEMENTARY WAYS
TO THE MUTUAL BENEFIT OF THE TWO COUNTRIES.
IT FALLS TO THE FEDERAL GOVERNMENT TO CO-ORDINATE THE
EFFORTS OF AUSTRALIAN PARTICIPANTS. TO THIS END WE HAVE
ESTABLISHED A CORE CONSULTATIVE COMMITTEE IN WHICH ALL
PARTIES ARE REPRESENTED@
WHILE IN CHINA I SPENT A GOOD DEAL OF TIME DISCUSSING THE
IMPLEMENTATION OF THE ' CHINA ACTION PLAN" A PLAN DEVELOPED
BY THE t! iaNISTER FOR TRADE, MR BOWEN, TO EXPAND TWO-WAY
TRADE BETWEEN AUSTRALIA AND CHINA, THE CHINESE GOVERNMENT
WAS PARTICULARLY APPRECIATIVE OF THIS INITIATIVE.
I AM CONFIDENT WE CAN COUNT ON CHINESE ASSISTANCE AND
INVOLVEMENT AS IMPLEMENTATION OF THE PLAN PROCEEDS.
CONSIDERABLE AUSTRALIAN GOVERNMENT RESOURCES ARE ALSO
BEING COMMITTED TO ITS SUCCESS. IT IS A PLAN WHICH, WITH
THE FULL SUPPORT AND INVOLVEMENT OF THE AUSTRALIAN BUSINESS
COMMUNITY, HOLDS THE PROSPECT OF QUITE RADICALLY TRANSFORMING
THE OUTLOOK FOR THE AUSTRALIA/ CHINA TRADE,
16,
WITH SINGAPORE AND tIALAYSIA, POLITICAL RELATIONS ARE CLOSER
AND MORE CONSTRUCTIVE THAN EVER BEFORE, THUS CORRESPONDINGLY'
INCREASING OUR PROSPECTS FOR EXPANDING ECONOMIC RELATIONSHIPS,
IWOULD ENCOURAGE YOU TO LOOK FOR WAYS TO BUILD ACTIVELY
UPON THE SUBSTANTIAL LINKS THAT ALREADY EXIST$ AN DOING
SO IMAGINATIVE APPROACHES AGAIN WILL BE NEEDED APPROACHES
CAREFULLY GEARED TO THE DYNAMISM AND RAPIDLY CHANGING
CHARACTER OF THOSE COUNTRIES TO OUR NEAR NORTH.
MR CHAIRMAN,
THE CONTINUED DYNAMISM OF OUR REGION, AND INDEED-THE
POSITIVE DEVELOPMENT OF THE WORLD ECONOMY, DEPENDS HEAVILY
ON, THE MAINTENANCE OF AN OPEN INTERNATIONAL TRADING SYSTEMS
RECENT YEARS, COINCIDING WITH THE DOWNTURN IN WORLD TRADE,
HAVE SEEN A PROLIFERATION OF BOTH TARIFF AND NON-TARIFF
BARRIERS TO TRADE AND THESE BARRIERS PERSIST,. DESPITE
A GROWING RECOGNITION OF THE-DANGERS THEY POSE TO ORDERLY
INTERNATIONAL TRADING ARRANGEMENTS.
170
AGAINST THIS BACKGROUND I PROPOSED IN BANGKOK LAST
NOVEMBER THAT COUNTRIES OF THE REGION, IN A MANNER
CONSISTENT WITH THEIR SHARED INTERESTS AND CAPACITIES,
SHOULD SEEK TO DEVELOP A CONCERTED APPROACH TO A NEW
ROUND 5LOBAL TRADE NEGOTIATIONS SHOULD SUCH A
ROUND MATERIALISE, AS SEEMS LIKELY.
DURING MY VISIT To ASIA LAST MONTH, I OBTAINED THE FIRM
IMPRESSION THAT THERE IS A SHARED IMPATIENCE AND
FRUSTRATION WITH THE LACK OF PROGRESS ON MAJOR MULTILATERAL
TRADING ISSUES AND WITH THE INABILITY OF COUNTRIES OF THE
REGION TO SECURE SERIOUS ATTENTION TO THEIR PARTICULAR
INTERESTS IN PREVIOUS MULTILATERAL ROUNDS.
THE WARM REACTION OF COUNTRIES TO MY PROPOSAL INDICATED
THAT IT HAS STRUCK A RESPONSIVE CHORD WITH THE COUNTRIES
OF THE REGION. ALL THE REGIONAL COUNTRIES WE HAVE APPROACHED,
INCLUDING ALL OF THE ASEAN COUNTRIES, HAVE AGREED TO PARTIPATE
IN A SENIOR OFFICIALS'I MEETING TO BE CONVENED BY EARLY MAY
IN AN ASEAN COUNTRY, TO HELP IDENTIFY REGIONAL INTERESTS
IN A NEW ROUND. THE MEETING WILL ALSO CONSIDER HOW BEST
TO FOCUS ATTENTION ON THOSE INTERESTS IN SUCH A ROUND.
18.
THE RAPID AND DYNAMIC ECONOMIC DEVELOPMENT SO APPARENT
THROUGHOUT THE REGION AND THE QUITE FUNDAMENTAL
STRUCTURAL CHANGES WHICH ARE TAKING PLACE WITHIN THE
COUNTRIES OF THE REGION WILL MAKE THE TASK OF DEVELOPING
A CONCERTED APPROACH ON TRADE ISSUES A COMPLEX ONE, GIVEN
THE COMPLEXITIES OF THE TASK AND THE GREAT DIVERSITY OF
HISTORICAL BACKGROUNDS AND ECONOMIC INTERESTS WITHIN THE
REGION, IT IS IMPORTANT THAT EACH STEP WE TAKE EITHER
COLLECTIVELY OR INDIVIDUALLY TO ENHANCE REGIONAL CO-OPERATION
BE . MADE AT A MODEST AND MEASURED PACE. ONI.'( IN
THIS WAY CAN WE HOPE TO ENSURE THAT THE GAINS ARE BOTH
SUSTAINABLE AND DURABLE WITHOUT LOSING SIGHT OF THE RICH
REWAPI?" SUCCESS WILL BRING FOR THE REGION AS A WHOLE AND
AUSTRALIA IN PARTICULAR.
THE SAME MEASURED APPROACH TO CHANGE SHOULD ALSO BE REFLECTED
IN OTHER INITIATIVES FOR GREATER ECONOMIC CO-OPERATION IN
THE ASIA/ PACIFIC REGION.
As YOU WOULD BE VERY MUCH AWARE, THERE HAS, FOR A CONSIDERABLE
TIME NOW, BEEN ENTHUSIASM AMONG SOME OF THE BUSINESS PEOPLE
AND ACADEMICS IN THE REGION FOR THE ESTABLISHMENT OF WHAT
IS LOOSELY TERMED A " PACIFIC COMMUNITY". PBEC HAS BEEN
CLOSELY INVOLVED WITH THE EXPLORATION OF THIS CONCEPT OVER
ANUML:: r OF YEARSI
196
YOUR WORK, ON REGIONAL MINERALS AND ENERGY MATTERS FOR
LAST YEAR'Is PBEC CONFERENCE IN SANTIAGO HAS BEEN OF
CONSIDERABLE INTEREST, AS HAS YOUR WORK ON A SUGGESTED
CHARTER OF INVESTMENT# PBEC IS ALSO THE CHANNEL THROUGH
WHICH BUSINESS HAS PARTICIPATED IN THE SERIES OF PACIFIC
ECONOMIC CO-OPERATION CONFERENCES, THE MOST RECENT OF
WHICH WAS HELD LAST YEAR IN BALI$
THE GOVERNMENT IS CURRENTLY CONSIDERING A PROPOSAL FROM
SIR JOHN CRAWFORD, WHICH INCORPORATES THE VIEWS OF
JOHN CLARKSON AND OTHER PBEC MEMBERS, FOR THE ESTABLISHMENT
OF AN AUSTRALIAN PACIFIC CO-OPERATION COMMITTEE, THE
COMMITTEE WOULD ADVISE THE AUSTRALIAN GOVERNMENT ON MATTERS
AFFECTING AUSTRALIA' 0 S ECONOMIC CO-OPERATION WITH HER
NEIGHBOURS-IN ASIA AND THE PACIFIC AND BE RESPONSIBLE
FOR AUSTRALIAN PARTICIPATION IN PACIFIC CO-OPERATION
CONFER ENCE ACTIVITIES, THE COMMITTEE WOULD BE REPRESENTATIVE
OF THE MAIN SECTORS OF THE AUSTRALIAN COMMUNITY-AND INCLUDE
PEOPLE FROM THE BUSINESS COMMUNITY, THE UNION MOVEMENT,
ACADEMIC RESEARCH INSTITUTIONS, THE PUBLIC SERVICE AND
SUCH OTHER PERSONS AS WE WOULD APPOINT,
YOU ARE ALL AWARE OF THE SENSITIVITIES ATTACHING TO
. THE CONCEPT OF A " PACIFIC COMMUNITY'. AT THIS STAGE
SOME COUNTRIES WITHIN THE REGION, THE ASEAN STATES
PARTICULARLY, ARE WARY OF DEVELOPING THE FORMAL MECHANISMS
AND RELATIONSHIPS THAT SOME DISCUSSIONS OF THE CONCEPT HAVE
IMPLIED#
MOWN VIEW IS THAT " REALISTIC GRADUALISM" IS WHAT IS
NEEDED AT THIS STAGE WITH FUNCTIONAL CO-OPERATION BEING
EXPANDED CAREFULLY, ONE STEP AT A TIME. THE APPROACH
SIR JOHN CRAWFORD AND JOHN CLARKSON HAVE IN MIND) IS
CONSISTENT WITH THISI
NOTHING WILL BE GAINED FROM TRYING TO IMPOSE PATTERNS OF
CO-OPERATION. BUT, FOR AUSTRALIA, IT IS MOST IMPORTANT
THAT WE CONTINUE TO ACTIVELY EXPLORE ALL AVAILABLE AVENUES
FOR REGIONAL CO-OPERATION. AUSTRALIA NEEDS TO COME TO
TERMS WITH AND BE PART OF THE POSSIBILITIES AND CHALLENGES
OFFERED BY THE FASTEST-GROWING ECONOMIC REGION IN THE
WORLD@ FOR AUSTRALIA SUCH CO-OPERATION IS A NATURAL REFLECTION
OF THE INTERESTS AND CONCERNS WE SHARE WITH THE REGION.,
THE MORE WE CAN ADOPT ACTIVITIES WHICH ARE SHARM ON A
MUTUALLY REWARDING BASIS THROUGH TRADE, THROUGH JOINT
VENTURES, THROUGH CROSS INVESTMENT, THROUGH PEOPLE TO
PEOPLE EXCHANGES, AND THROUGH OTHER SHARED ENDEAVOURSTHE
MORE EVERYONE IN THIS REGION WILL STAND TO GAIN. THROUGH
ORGANISATIONS SUCH AS THIS,. BRINGING TOGETHER AS IT DOES
BUSINESS FROM THE COUNTRIES OF THE PACIFIC BASIN, THE HABIT
OF CO-OPERATION WITHIN THE REGION WILL GROW-