CHECK AGAINST DELIVERY EMBARGOED UNTIL DELIVERY
SPEECH BY THE PRIME MINISTER*
SIGNING OF MT. CHANNAR JOINT VENTURE
PERTH 16 NOVEMBER 1987
State Councillor Gu
vice Minister Li
Ambassadors zhang and Garnaut
Premier Brian Burke
John Ralph, Chairman and Chief Executive, CRA Ltd
Ladies and Gentlemen
The Channar project which we are signing today is an
historically important milestone in the evolution of a
mutually beneficial, and friendly economic relationship
between China and Australia.
The project represents a significant new level of
integration of our iron and steel industries in recognition
of the great opportunities open to us to engage in trade in
those materials for our mutual benefit.
But more than that, this project is a tribute to the
willingness and the capacities of the enterprises of our two
countries to work together, despite differences in our legal
and economic structures and traditions.
Accordingly let me congratulate Hamersley Iron and the China
Metallurgical Import and Export Corporation for the
foresight, patience and hard work which has brought us to
this signing ceremony today.
The Mount Channar joint venture provides further and
compelling testimony to the great confidence , and
preparedness to seek long-term cooperation, wihich
characterise the relationship between Australia and China.
This joint venture is China's largest overseas investment;
it is the first overseas mining project in which China will
take a direct equity interest; and it represents a long term
commitment, spanning several years, to continued trade
between our two countries.
That confidence between our two nations has not of course
come about by accident. It has resulted from a conscious
decision on the part of our governments and our people to
enhance the ties between us because of the potentially great
benefits they present to both of our countries.
of particular relevance to the Channar project has been the
support given by both governments to the iron and steel
initiative which I proposed to Premier Zhao in
February 1984, and which we renewed last year.
Let me record my personal thanks to now General
Secretary Zhao for the invaluable interest and support which
he has shown in developing our bilateral relationship
generally but also, in particular, for his efforts in taking
forward the commitments which we have made in the iron and
steel initiative.
On the Australian side let me also acknowledge on behalf of
the Commonwealth the strong interest and support for this
project which has been provided by the Government of Western
Australia. Again on a personal note, let me say how pleased I am that
Ambassador Garnaut, whose commitment to the Australia/ China
relationship has been so important over nearly four years,
is here today.
I believe that Australia and China are on the verge of a new
era of cooperation.
We each stand on the edge of the fastest growing region in
the world and each of us can play a vital role in that
growth in the future.
Australia offers materials and expertise to assist China in
its impressive development and in its far-sighted efforts to
link its economy with this region and the world beyond.
This joint venture will provide a reliable supply of high
quality iron ore to China's burgeoning iron and steel
industry. For us in Australia it will provide a guaranteed export
market for an industry facing adverse world wide trading
conditions and it will materially assist Australia's balance
of payments through to the end of this century.
Expansion of trade between Australia and China has been so
rapid that over the last six years, China shif~ ed from
seventh place to fourth place as an Australian export
market. Over that period, the value of exports more than
trebled, growing at an annual rate of almost 20 per cent.
I wish the joint venture partners well as they bring this
exciting project to fruition.