FOR MEDIA 16 APRIL 1985
PRESS COMMUNIQUE ON ECONOMIC COOPERATION BETWEEN CHINA AND
AUSTRALIA
His Excellency Mr Hu Yaobang, General Secretary of the
Chinese Communist Party and the Honourable R. J. L. Hawke,
Prime Minister of Australia held extensive discussions in
Canberra on 16 April 185-n-the-cntook. for economic
cooperation between the t~ o countries.
The Australian Prime minister said that it was an underlying
goal of Australian economic policy to establish a more
outward-looking industrial structure, to foster industries
which are able to respond flexibly to changing market
conditions and to take full advantage of international
market opportunities.
This hid been underpinned by the creation of a stable macroeconomic
environment directed at the promotion of strong
growth, moderate inflation and good industrial relations.
Mr Hawke emphasised the need for Australia to Increase its
economic links with the region and the major opportuni ties
for doing so with China. The Australian Government wished
to assure China that Australia will continue to be a
reliable and competitive supplier of mineral. and
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technology necessary for China's development.
General Secretary Hu said that it was important to have a
long term point of view and to plan for friendship and
cooperation for at least a generation. He pointed out that
the Chinese Government is carrying out economic reforms for
the purpose of ensuring sustained economic growth and the
continuous improvement of the livelihood of the Chinese
people. China had adopted an ' open door' policy to
strengthen cooperation in economic and other fields with
other countries. The friendship between China and Australia
and the absence of fundamental conflicts of Interest between
the two countries provided . a-C rm-foundation--. f-or-eeo-nmic
cooperation.
General Secretary Hu noted that under China's 7th five year
plan ( 1986-1990) China,-wanted to step up the modernisation
of its Industries and the whole Chinese economy and improve
efficiency. Prime Minister Hawke said that Australia stands
ready to provide the quality raw materials and robust
technology which would be required for China to achieve the
objectives of the plan.
General Secretary Hu outlined ti i substantial achievements
in the agricultural sector In China In recent years and
China's objectives of improving life In rural areas and
developing animal husbandry. He welcomed Prime Minister 77
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H-awke's assurance that Australia wished to contribute to
China's development in these areas.
General Secretary Hu said that China was making great
efforts to overcome the obstacle to development in
transport, energy and raw materials. He welcomed Australian
investment in China. Prime Minister Hawke indicated that
Australia would be wil-ling-tc cooperate in all these fields.
The General Secretary and the Prime Minister discussed the
efforts being made to develop cooperation between Australia
and particular Chinese Provinces, and agreed on the
Importance of such--cooperat-ion.
They also agreed that with the expansion and broadening of
cooperation they would be continuing to seek opportunities
for the two countries to participate in each other's growth.
The General Secretary mentioned the question of the trade
imbalance between China and Australia and expressed the hope'.
that the two sides would make efforts to facilitate an
increase of Chinese exports to Australia so as to narrow the
gap. Prime Minister Hawke indicated Australia was
making efforts under the China Action Plan to facilitate thework
of China's corporations in exporting to Australia. Thetwo
sides agreed that they would continue to explore the
possibility of Australian companies purchasing Chinese oil.
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He also welcomed the contribution to future balance in the
economic relationship of an increased flow of Australian
investment in China, in addition to Chinese investment in
Au st r alia.
Mr Hawke noted that Australia's process of modernisation and
structural change will offer expanding market opportunities
in which China will be well placed to share. The
modernisation of Australian industry over the year and
decades ahead would provide increasing opportunities for
exports of the light industrial products which are a major
focus of Chinese industrial modernisation.
The General Secretary an) 9 the Prime Minister agreed that
while the businesS-enterprises in the two countries must
establish arrangements on an objective and mutually
profitable basis the two Governments could assist in
providing a framework of information and confidence within
which that cooperation could continue. This applied in a
number of particular ways, as follows
The work of the Joint Study Group on Iron and Steel
established in February 1984 would continue with a view
to . urther cooperation in trade, investment in both
countries, and technology sales and cooperation.
The Joint Working Group on-Coal Cooperation established
in October 1984 would similarly continue its work.
A new Joint . Study would be undertaken in relation to
all stages of the wool industry.
Following the visit to Australia by Chinese Delegates
dealing with non-ferrous metals and railways,
Australian delegations would visit China to review with
Chinese authorities the possibility of further
cooperation in these areas.
Australia would send a high level delegation to China
to discuss the oppo. rtunities-. for-. vrlope-ration in the
development and plannipg of China's transport Industry.
Cooperation In agricultural development of China would
continue and be extended.
In the area of iron and steel cooperation, it was noted that
under the auspices of the Joint Study Group much progress
had been made. The two sides agreed that the prospects were
very good, and agreed to encourage enterprises of the two
countries to reach mutually profitable commercial
arrange. nents as soon as possible, in accordance with the
principles accepted by both sides and in particular to
cooperate on Channar and KwInana and other projects.
Cooperation in the iron and steel Industry could be In the
form of joint ventures or long term trade contracts. Upon
the satisfactory conclusion of current negotiations, the
Joint Study Group would turn its attention to the
development of a framework of principle within which
Australian and Chinese enterprises would be encouraged
further to extend cooperation, including through largerscale
investment in steel making in China utilising
internationally competitive raw and semi-processed materials
from Australia.
The General Secretary and the Prime Minister noted that the
two Governments are to review future priorities for the
program under the. Agre emt-.-n-Xechnaical-Cooper-ation in
Development. The General Secretary and the Prime minister confirmed the
common wish expressed by Prime Minister Hawke and Premier
Zhao Ziyang during Prime Minister Hawke's visit to China in
February 1984 that Australia/ China economic cooperation
should be a model for cooperation between countries at
different levels of development and with different social
systems. -9.
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