EMBARGOED UNTIL 9.00 P. M. CHECK AGAINST DELIVERY
SPEECH BY THE PRIME MINISTER, DINNER IN HONOUR OF
DR MAHATHIR, PRIMIE MINISTER OF, MALAYSIA
PARLIAMENT HOUSE CANBERRA 9 AUGUST 1984
Dr Mahathir, Dr Seri Hasmah, distinguished guests, ladies
and gentlemen.
It gives me very particular pleasure to welcome you all here
tonight. I recall1 with special feeling my own visit to Malaysia in
February this year. The warmth, hospitality and
understanding accorded me by you, Dr Mahathir, was of a kind
extended only as between friends. It said a great deal for
the friendship and respect which marks the relations between
our two countries arid guaranteed both the success of that
visit and a sound foundation for the continued development
of close ties between Australia anid Malaysia.
Your visit here, Prime Minister, now affords us the
opportunity to build on that base and to give shape to a
future in which we can, in a spirit of mutual co-operation,
secure the conditions necesspry for regional peace and
security. We can also, from that base, consolidate the already very
close links that exist between our two great countries.
Prime Minister,
It would be easy for me now to stress the closeness of our
historical links the ways in which both our countries have
successfully co-operated in the past. These links of course
exist and we value them. But at the same time as drawing
on the experience of the past, the principle concern for
both Australia and Malaysia should be with the present, and
the future.
Prime Minister,
My Government's starting point in its international
relations is that Australia is an integral part of the
Asia-Pacific region not only geographically but
economically and politically. My Government is intent on
coming to grips with the consequences of this reality.
We are moving systematically and deliberately to put into
place the type of policies necessary to secure an effective
and productive integration of Australian interests with
those of our regional neighbours.
It goes without saying that our Government will not be
deflected from this course by racist attitudes of the kind
recently expressed by a small and unrepresentative minority
in Australia.
Both Malaysia and Australia recognise the economic dynamism
of this region and the opportunities it presents. The
Japanese economy is undergoing continued industrial
transformation at the frontier of technology; an
increasingly outward looking China is achieving impressive
early success with its modernisation plans; and continued
growth at spectacular rates is being achieved in the
Republic of Korea and several of the ASEAN nations including
Malaysia. These developments have had a profound impact on trade and
economic relations between all countries of the region and
between the region and the world at large. The strong
growth consistently achieved by the countries of the region
has ensured the Asia-Pacific area a vital role in the
maintenance of global economic prosperity.
As you yourself, Prime Minister, recently observed, it is
for the countries of this region " to seek out new frontiers
and to promote sustained growth since the old
established industrial nations can no longer be relied upon
exclusively to provide the engine of growth in world trade".
In this regard it is disappointing that the two-way trade
between Australia and Malaysia has grown only slowly over
the last five years by comparison with the growth throughout
the 19701s. This is despite the fact that in the past three
years we have seen six Malaysian Trade Missions visit
Australia, two major trade displays, six technical and
marketing seminars, four investment missions to Australia,
and three visits to Malaysia by groups of senior Australian
businessmen. Australia will continue supporting such trade
promotion measures.
Prime Minister,
I am aware that Malaysia's trade imbalance with Australia
has been one of its largest bilateral deficits and that
Malaysia is anxious to redress the imbalance.
My own view is that if the multilateral trading system is
working effectively there will inevitably be some deficits
in some bilateral trading relationships. In itself, this
should not be regarded as a cause for particular concern.
There would, however, be valid grounds for concern when the
imbalance arises out of artificial restrictions on trade.
In the latter circumstances the objective should be the
removal, within a manageable time-frame, of such
restrictions. Prime Minister,
You would doubtless be encouraged that the 1983/ 84
provisional figures show a significant decrease in the trade
imbalance in 1983/ 84 a drop from $ 265.5 million in 1982/ 83
to only $ 212.1 million this year. While doubtless some
measure of imbalance is likely to persist, the steps we have
taken to redress the imbalance have had some effect.
These steps include the Australian system of tariff
preferences, the Australia/ Asean Trade and Investment
Promotion Program, the Early Warning System on Australia's
industries assistance process, and the gradual
liberalisation of access to Australia's textile, clothing,
footware and timber product markets. Australia, for its
part, will continue to refine and develop measures such as
these so as to ensure steady growth in the two-way trade
between our two countries.
Prime Minister,
Our countries have tremendous human and natural resources.
The challenge to both our countries is to capitalise on the
opportunities which our location and resource endowments
provide. The results are. likely to be most satisfying if the approach
adopted is one of co-operative endeavour between all
countries of the region.
In this regard the recent agreement by ASEAN and its five
regional dialogue partners, including Australia, to embark
on a new Pacific Economic Co-operative venture, initially
through the launching of a full-scale human resources
development program, must stand as a landmark decision. it
offers a basis on which vie can enhance present patterns of
co-operation and ensure the achievement of an ever-growing
number of circles of common endeavour.
It was this spirit which motivated my proposal in Bangkok
last November that, in the light of suggestions of a new
multilateral trade round, the countries of the region should
identify interests they shared in such a round and consider
how most effectively they might secure attention to those
interests. The success of the subsequent Denpasar meeting
and of the consultations that have ensued has been most
encouraging. Indeed, the pattern of contact established on those trade
issues is something I believe we should be encouraging still
further, not simply on trade and economic matters, but
across the full range of areas in which the countries of
this region have shared interests.
A relatively simple but critically important element in this
involves the need to promote more extensive person-to-person
contacts between our two peoples -t both official and
non-official levels. A notably large number of Australian
sponsored visit programs already exist. I nevertheless
believe that a more flexible approach to the administration
of these Australian schemes might contribute to a more
productive pattern of contact between Australia and
countries of the region. With this aim in mind, a review of
Australia's present sponsored visit schemes is to be
undertaken. On some matters, there will, however, obviously be a need
for more concerted approaches. One such area of particular
importance to Australia's relations with Malaysia is that of
trade and economic policy. I believe the time has come when
we should formalise the many contacts we have on these
issues and have therefore suggested the establishment of an
Australia/ Malaysia Joint Trade Committee. Such a
development will be an important extension of the already
close relationship between our two countries. Your in principle suppo
Dr Mahathir, for this proposal has been greatly appreciated.
Contacts of this kind will, however, only be productive if
they take place within a framework of adequate policy
approaches at the national level.
For Australia this means pursuing internationally conditions
conducive to an open international trade environment. At
the domestic level, it means ensuring dedication of our
resources to those activities in which Australians are most
productive. The multilateral liberalisation of trade and the creation
domestically of conditions conducive to such a regime are
fundamental to the attainment and maintenance of both
national and international economic growth and prosperity.
L 0 : F V P
1( t. i p
Hence the emphasis we are now giving in Australia to the
need for a sound approach to the restructuring of
Australia's industrial base. We regard it as axiomatic that
if we are to raise Australian living standards, to provide
full employment for our people, and to enter into full and
effective partnership with the countries of the region, then
we must raise productivity and improve our international
competitiveness. This we are now seeking to do. Through a combination of
domestic economic policies which are restoring Australia to
a non-inflationary growth path, and, through carefully
co-ordinated sectoral restructuring initiatives of the kind
we have already undertaken in the motor vehicle and steel
industries, we are seeking to establish Australia as a
competitive, outward-looking and responsible participant in
the international economic scene.
The reforms we are undertaking in the Australian financial
system are an essential component of our policies for
improving our industrial structure and for promoting
long-term growth.
Together these measures reflect a keen appreciation of the
economic and trading realities of the contemporary world and
a determination to take full advantage of' Australia's
abilities and potential.
Prime Minister,
Following your Government's initiative, and at its specific.
request, I am pleased to tell you that, assuming all major
producers within the region are prepared to do likewise,
Australia is ready to make a cash contribution to the buffer
stock of the Sixth International Tin Agreement. This would
total 3.2 million English pounds, representing half of the
Australian contribution otherwise made in the form of tin
metal at the commencement of the Agreement.
I welcome the initiatives already taken by Malaysia in this
area and would hope that Malaysia, as the world's largest
tin producer, will continue to pursue efforts aimed at
securing the early restoration of stability and growth in
the industry.
Prime Minister,
Australia aims to be a contributor as well as beneficiary of
economic progress within our own region. This can only be
to the benefit of countries such as Malaysia which are so
particularly well placed to capitalise on the opportunities
being created. S1'~ . r
It will also see Australia bidding competitively for major
projects within the region. The recent acceptance by the
Malaysian Government of Leighton's bid for the Telok Intan
Hospital project was greatly appreciated here in Australia
and will I hope be but a forerunner of a new type of
involvement of Australian companies with the development of
the region.
This is not to gainsay the quality and continuing
significance for both our countries of well-established
patterns of co-operation.
Prime Minister,_
I know the importance you attach to the continued provision
of places at Australian education instituiions for Malaysian
students. I can assure you that Australia, to the extent it
is able, intends continuing to develop its role as a source
of educational services to the countries of the region.
This we see as a positive and firm foundation to good
relations and to our mutual understanding.
Prime Minister,
Defence co-operation has been another area of importance to
both our countries. My Government's continued commitment to
our Australian presence at Butterworth underlines the
importance we continue to attach to our shared defence
interests. Indeed the manner in which we were able early this year so
quickly and effectively to agree on a mutually acceptable
formula for the maintenance of the Australian presence at
Butterworth was suggestive of a new order of confidence
between Australia and Malaysia.
It is my sincerest hope, Prime Minister, that, following
your present visit, in the company of so many Ministers,
officials and senior businessmen, the grounds for that
enhanced confidence will be still further strengthened. The
people of both our countries, and of the wider Asia-Pacific
region, have a strong interest in this successful outcome.