PRIME MINISTER
CHECK AGAINST DELIVERY EMBARGOED UNTIL DELIVERY
SPEECH BY THE PRIME MINISTER
ASIAN STUDIES ASSOCIATION OF AUSTRALIA
CANBERRA -11 FEBRUARY 1988
I am pleased that your annual conference this year includes
the word Bicentennial in its title.
Because this conference has an important contribution to
make to the national celebrations and reappraisals which
the Bicentenary has sparked.
One of the more important lessons to be learned by all
Australians during this Bicentennial year is the lesson of
the benefits which flow from our cultural diversity.
That diversity is one of our greatest national endowments.
And the creation of a community in which all of us,
regardless of our ethnic origin, share a commitment to the
future of Australia, is one of our greatest national
achievements. It is a rare achievement among the nations of
the world and one which my Government is committed to
nurturing. The Bicentenary commemorates the European settlement of
Australia a settlement by people drawn initially from the
British Isles.
For most of the subsequent two hundred years, the influence
of Britain and Ireland on our national institutions, and our
national psyche, has been profound. It has been a bequest
of which we can be proud.
But it is important to recall, and not just at a gathering
of this nature, the non-European contacts with Australia,
which in some cases predate 1788 and which in many cases
have formed powerful, if minority, elements of the
Australian identity since then.
I'm referring to the links forged with Australia over the
years by Asian people:
the Eastern Indonesians who gathered trepang on our
north west shores for export to China; the thousands of
Chinese who joined the gold rush; the Japanese pearl
fishermen in Broome; and so on. 004372
It was not until relatively recently that the majority of
Australians came to appreciate the importance of their
geographical proximity to Asia.
Pearl Harbour and the fall of Singapore and the attacks on
Darwin and other Australian cities, forced on us
dramatically, the reality of our place in Asia.
Since 1942, we have seen the end of our reliance upon
Britain and a reorientation of our foreign policy and
defence concerns to the Asian-Pacific region.
We have witnessed the decline of European colonialism in our
region and we have supported the independence aspirations of
countries in our region. I might mention here the Chifley
Labor Government's support for the Indonesian independence
movement in 1945 and the Whitlam Government's grant of
independence to Papua New Guinea.
we have experienced the contraction of our British and
European markets, and the expansion of the Japanese, east
and south-east Asian markets.
We have overcome our prejudices and done away with the White
Australia policy, opening the way for the truly
multicultural society of today in which our dynamism and
cultural richness is owed in part to new arrivals from Asia.
Today we find ourselves in a region containing a great part
of the world's population; producing a great part of the
world's GNP; embracing a great number of the religious and
cultural traditions of the world; holding some of the
world's largest armies; encompassing some of the principal
exponents of free market capitalism and some of the
principal interpreters of Marxism-Leninism; and containing
some of the world's fastest-growing economies.
Economically, the region encompasses the dynamo of Japan,
the emerging power of the NICs, the newly industrialised
countries, and the enormous potential of China.
As I said last year in Singapore, when I had the honor of
delivering the Singapore Lecture the single most enduring
important event of our time is the emergence of China from
its period of isolation.
From Australia's point of view, the prospects are that
greater enmeshment of our respective economies through, for
example, joint ventures in mining and manufacturing projects
in China and in Australia, will offer both sides enormous
mutual benefit.
While there are still societies which have failed to take
advantage of the region's overall prosperity and whose
people still live in poverty and hunger, in the region as a*
whole trade and investment opportunities have abounded over
the last quarter century. 004373
The Western Pacific Asian economies share of world trade
rose from just over 14% in 1971 to almost 22% by 1986. This
year despite a slowing of average world economic growth to
an estimated regional growth has remained at an
average level of However China, Hong Kong, Singapore
and Taiwan did even better than that, achieving growth rates
of over 8% for the year.
It is no exaggeration to say that as we enter our third
century one of the most important and testing challenges
this country faces is the challenge of finding our true
place in Asia of recognising that our self-interest lies
in our becoming an integral part of our region, a full
participant in regional efforts towards peace and security,
and an economic partner co-ordinating our economic skills
and specialisations with those of Asia to the consequent
prosperity of all.
The assertion that Australia's future lies in Asia has
become a commonplace of Australian political and commercial
dialogue. But we are still learning to come to grips with the
practical implications the challenges and opportunities
of that assertion.
It is obvious that at times we have drawn the wrong
conclusions from the evidence of our geographical proximity
to Asia.
The tragedy of our Vietnam involvement demonstrated how
costly was the predisposition of the Australian Government
of the day to project onto the international screen the
narrow concerns of its domestic political prejudices.
But it is undeniable that there has been change gradual,
painstaking but real change which has brought the
Australian economy into closer alignment with that of our
Asian neighbours.
Despite the protectionist cast of post-war policies in
Australia, there were enlightened and far sighted policies,
thanks in particular to Sir John Crawford, which ensured
that after the bitterness of war Australia could conduct
constructive relations with Japan based on trade. The
result was that when our traditional European markets closed
in the 1960s, Australia was able in their place to develop
the new and critically important export market of Japan.
I am proud that my Government has been able to continue and
dramatically expand that process of adjustment. We have
taken on, as the essential task of our period in government,
the long overdue process of economic reconstruction which
will allow Australians increasingly to take advantage of the
opportunities which our proximity to Asia provides.
Asia will continue to demand substantial supplies of our
primary commodities for decades to come. 004374
4.
But in addition, as the wealth of Asia increases and as the
exchange rate pressures of industrial success begin to force
the most rapidly growing exporters to restructure, Asia will
also increasingly demand processed raw materials,
manufactures and services.
Australia's economic reconstruction is designed to put us in
a good position to meet that demand just as in earlier
times we geared up to supply burgeoning demand for raw
materials. The changes which are occurring are far reaching.
At their heart is the massive improvement in our
international competitiveness brought about by the
depreciation of the Australian dollar coupled with
appropriate domestic policy adjustments.
That improvement is particularly marked compared with the
traditional manufacturing nations of Europe and the USA.
It is also especially marked in the case of Japan, against
which our real exchange rate has fallen by about 40 per
cent, bestowing a substantial lift in competitiveness.
However, it needs also to be appreciated that the
improvement is much less dramatic compared to many of the
other major exporters of Asia such as Korea, partly because
of the exchange rate management regimes which have been
adopted in those countries.
But even in these cases, the reality is that the longer some
of these countries continue to run large current account
surpluses, the more likely it is that their exchange rates
will remain under pressure to rise. This suggests that
Australia's emerging competitiveness window will not close
quickly so long as we control domestic costs.
And that is the second element of our reconstruction
strategy. This element is not just about wages though
wages moderation has recently been and will remain an
outstanding feature of the Australian economic scene.
It is also about continuity of supply, the winding back of
industrial disputes to what are historically low levels, and
a determined effort to lift productivity. Australian
workers and managements have shown a willingness to look
hard at past practices to ensure that today we take the
steps necessary to underwrite the steady improvement of our
living standards by competing in non-traditional export
markets. Indeed the growth in Australia's export awareness has also
been critical to Australia's economic reconstruction.
The high protective barriers erected around Australia in the
post war decades had dulled the senses of our manufacturers.
It encouraged domestically-oriented sales strategies and lax
attitudes to quality and innovation. 004375
But that is changing. Our economic policy has begun to
dismantle the artificial props of protection and regulation
which in the past have cosseted our industries. we have
begun to replace them with regimes which not only encourage
firms to compete but which provide a sufficiently flexible
economy to allow the ensuing structural transformations to
occur.
One of my most gratifying duties as Prime minister is to
visit many small and medium sized companies around
Australia. I find time and again that companies which previously had
never even considered exporting are now not only thinking
about it but positively seeking out market niches for
themselves and succeeding.
one particularly pleasing statistic is that exports of
Australian produced manufactures to Korea have grown by 154
per cent in the two years to 1986-87.
The latest estimates show that Research and Development
expenditure in 1986-87 was 65 per cent higher than two years
before, laying a solid basis for future growth and
innovation. In addition our services sector, especially our tourist
industry, is expanding rapidly.
Yet for all of our progress, Australia's task of economic
reconstruction is far from complete.
Accordingly, as we have made clear, we entered our third
term in office with a further agenda of reform in the
micro-economy: a program of change in specific industries
and institutions designed to complement and strengthen the
continuing program of macro-economic reform.
It is a substantial agenda one that my Government is
committed to implementing.
One of the most important elements of micro reform is in the
field of education. We seek a number of goals, most
significantly increased numbers of students completing
secondary school; an enlarged capacity of our universities
and other research institutions to focus their attention on
productive and relevant research; and better application of
our language skills to the task of improving our trading
position. But the reform of attitudes of those in business has still a
way to go.
Too many of our entrepreneurs are prone to identify first
the market opportunities available in the US and Europe and
to pay less attention than they might to those emerging in
the less familiar and, for many, untried markets of our
region. 004376
6.
The key to overcoming such deficiencies lies in knowledgeknowledge
of Asian business practices, knowledge of
political and legal systems, knowledge of emerging economic
conditions and knowledge of the key Asian languages.
Let me remind you that of Australia's ten largest export
markets last year, six were non-English speaking countries.
Five are in Asia: Japan, China, South Korea,. Hong Kong and
Taiwan. Moreover, our ten fastest growing major markets
over the last four years have all been non-English speaking
countries. Threeof them are in Asia: China, Hong Kong and
India.
Maintaining and improving-our language skills would
undoubtedly improve the ability of our businesses to compete
in these markets as well as foster a more enlightened
understanding of the societies with which we trade.
Indeed, it is recognition of the importance of languages and
cultural understanding in developing our export and
hospitality industries that has led the Government to
emphasis the economic significance of our multicultural
policies.
Australia's communications with non-English speaking nations
should be more often a dialogue of equals. It is not in our
best interests to rely so heavily on our partners' English
speaking abilities or the capacity of someone to provide
an interpreter.
My Government is already addressing the issue of expanding
Australia's linguistic capacities.
Nearly two years ago, while I was making an official visit
to Japan, the Australian Government announced its decision
to establish an Asian Studies Council.
This Council was given the mission of strengthening Asian
studies at every level of the Australian education system
and helping Australian industry become better integrated
with economic developments in the region.
Last March, I announced the Government's endorsement of a
National Policy on Languages. We have allocated full year
funding of $ 28 million for 1988-89 to begin implementing
this policy.
The Asian Studies Council will be funded to undertake
surveys on curriculum needs and teacher supply in schools,
and to research demand for Asian related skills in industry.
An inquiry into the teaching of Asian languages and Asian
studies in higher education is also to be undertaken.
The information gathered will be used in the development of
a national secondary schools curriculum for Asian languages
and Asian studies together with appropriate teaching
materials. 004377
7.
More recently the Council, under the able chairmanship of DrI
Stephen Fitzgerald, has produced a report on a national
strategy for the study of Asia in Australia.
I am not in a position to comment in detail on how the
Government will respond to the report since it has not yet
been formally received by the Government and has not
received any Cabinet consideration.
But I believe some comments to this audience would be
appropriate. The Asian Studies Council has found that scarcely any
Australian in a position of leadership in business,
government, education or the media has a command of an Asian
language.
The Council adds that of all students presenting for
Matriculation, only two per cent take an Asian language, and
a significant number of these are native speakers.
we are deluding ourselves if we think that state of affairs
will allow us to compete to our full potential in Asian
markets, or to negotiate successfully with Asian partners,
or to extend hospitality sufficiently to Asian tourists, or
to break down permanently the cultural barriers with our
Asian neighbours.
The report sets out a general objective of making the
Australian population ' Asia-literate' by the year 2000. It
seeks widespread command of Asian languages in the
Australian community and a more integrated and thorough
study of Asia in our schools and tertiary institutions. It
advocates a more ' Asia literate' conduct of Australian
business, government and cultural relations with Asia.
These are ambitious goals. But I believe they are worth
working for. Achieving them will require extensive business
involvement as well as a commitment by government. At base,
they require a change in attitude by the Australian people
themselves. There are, I am happy to say, signs that business is
beginning to face this challenge. A survey of key decision
makers taken last year showed that overwhelmingly Australian
employers want to see a much stronger emphasis on Asian
languages, a greater emphasis on the study of Asia, at both
school and tertiary levels, and programs on Asia given a
much higher priority in tertiary courses in business
studies, economics and management, in engineering, science
and the technologies, and courses leading to employment in
the tourist industry.
some major employers have already recognised the importance
of skills and are beginning to adjust recruitment and
training practices Qantas, for example, is taking a
leading role with its International Communications Skills
Improvement Program. 004378
For its part, the Government has taken the initiative by
putting in train the implementation of the National Policy
on Languages.
The Asian Studies Council, in conjunction with the Office of
Multicultural Affairs and the National Accreditation
Authority for Translators and Interpreters, is also
contributing to this process by co-sponsoring a conference
later this year on " Languages for a Competitive Australia".
The term ' Asian' is in itself a shorthand term used for
convenience. The reality of the term covers a myriad of
cultures and languages: they defy instant comprehension let
alone mastery. We are talking about long-term planning not
short-term interim measures. Even so, this government has
provided the greatest stim~ ulus to the teaching of ' Asian'
language, ever undertaken in Australia.
Ladies and gentlemen,
Let me close by stressing the role which you must play in
improving our nation's capacity to understand Asia and to
compete successfully with it.
Most of you are Asia experts. Many of you have spent a
lifetime studying Asia. Some of you stand at the pinnacle
of your profession in the breadth of your knowledge and
scale of your mastery of Asian issues.
If we as Australians are to bring Asia more fully into our
intellectual universe, we rely on you to help us and to
share your expertise, to the maximum extent possible, with
us. That way we will find ourselves not only meeting the
economic challenges we face in Asia but also coming to a
deeper understanding of our neighbours and ultimately, I
believe, of ourselves. 004379