EMBARGOED AGAINST DELIVERY
PARLIAMENTARY STATEMENT ON INDONESIAN AND PAPUA NEW GUINEA
VISIT, 7 MAY 1992
Mr Speaker,
I take this opportunity to provide the House with
information and observations arising from my visit to
Indonesia and PNG between 21 to 26 April.
I visited these two countries to emphasise the Government's
determination to make Australia's place in the region more
certain. Indonesia and PNG are close and important neighbours.
Both have rapidly growing economies and hold great promise
as destinations for Australian exports and investment. Both
are vital to our regional security.
To a very considerable extent it is on what we do now in
these and other countries of the region that the future of
Australia depends.
In going to Indonesia it was my intention to demonstrate to
the Indonesian Government and the Australian people that
Indonesia is in the first rank of our priorities. It is in
many ways the best test of our ability to do the things we
must do in the wider region.
Indonesia naturally commands our attention.
It is the fourth most populous country in the world. It is
a leading member of the Association of South-East Asian
Nations ( ASEAN) and a key player in regional affairs.
As our close northern neighbour, Indonesia has an important
bearing on our security environment.
More than is commonly appreciated in Australia, we have
benefited very directly from the achievements of President
Soeharto's New Order Government over the past 25 years.
Between 1966 and 1991, Indonesia's real GDP rose 450 per
cent. Over the last few years Indonesia's economic growth has
averaged around 7 per cent. It is expected to be around
or 6 per cent until the end of the decade.
Through a sound policy of encouraging foreign investment,
bureaucratic reform, financial deregulation, support for
manufacturing and lifting of trade barriers, Indonesia has
emerged as a dynamic and competitive economic force.
Political stability and economic advancement in Indonesia
have not only led to dramatic improvements in the standard
of living of the Indonesian people. They have also
contributed to stability and prosperity in the wider South-
East Asian region.
Australia gains from all this commercially.
In 1991, our two-way merchandise trade with Indonesia was
worth $ 2.4 billion. Exports to Indonesia were worth $ 1.4
billion making it our tenth largest overseas market.
But just as importantly, our national security benefits from
a benign environment in the region to our north where not so
many years ago there was great uncertainty and volatility.
Mr Speaker
In describing the stake Australia has involved in
cooperative relations with Indonesia, I readily acknowledge
that our relationship with that country has sometimes been
strained. Since 1975, East Timor has been a recurring and
sometimes divisive issue.
My firm conviction is that the only realistic way for us to
approach our relationship with Indonesia is to start from
the assumption that, as neighbours, each side wants to deal
with the other seriously and constructively.
We can build a worthwhile relationship if we work on the
firm ground of shared interests and develop institutional
links which consolidate our progress.
We must recognise continuing differences in our cultures and
outlooks without allowing ourselves to be obsessed by them.
Mr Speaker, this was the basic approach I followed in
Indonesia, both in discussions with President Soeharto and
his Ministers, and in public statements.
The centre-piece of my program in Jakarta was a very cordial
two-hour discussion with President Soeharto. He explained
at length the aspirations of the Indonesian people in regard
to their independence, their progress in nation-building,
and his own concern to nurture stable political
institutions. In turn, I described the Government's commitment to lead
Australia into whole-hearted engagement with Asia.
This led us to agree to look for ways to strengthen the
institutional framework of the bilateral relationship, to
reflect better its growing maturity and diversity, and to
guarantee its overall resilience in times of difficulty in
specific areas.
The President agreed to my proposal to establish a
Ministerial Forum which will meet at least once every two
years to review the bilateral relationship and set an agenda
for cooperation, especially in economic areas.
The Forum will be co-chaired by the two Foreign Ministers
and involve at least two economic Ministers from each side.
The President and I witnessed the signing of three bilateral
agreements which add further shape to the formal framework
of the relationship. They cover double taxation, fisheries
cooperation and extradition.
The Indonesian Government agreed to conclude further
bilateral agreements, covering investment protection and
promotion, copyright, the delimitation of outstanding
maritime boundaries, and mutual assistance on criminal
matters. My discussions with President Soeharto were complemented by
very useful separate-meetings with Foreign Minister Alatas,
six economic Ministers whom I met jointly and Defence
Minister Moerdani.
I was impressed by the calibre of the Ministers in the
Indonesian Cabinet, and by their confident determination to
continue the process of economic development and nationbuilding.
I made a point of thanking Foreign Minister Alatas for the
friendly and creative relations that he and Senator Evans
have cemented for our joint benefit.
With Defence Minister Moerdani, I repeated what I had said
to President Soeharto about Australia's satisfaction with
our bilateral defence relations with Indonesia, and our
interest in expanding contacts such as high-level
consultations, joint exercises, and training exchanges.
General Moerdani supported the current approach of
proceeding step by step and expressed confidence that our
defence relations would continue to grow.
During my visit I was also glad to have the opportunity to
lend the Government's support to the activities of
Australian business in Indonesia.
I opened offices for AOTC in Jakarta, the West Australian
Government in Surabaya, and addressed an Indonesian and
Australian business audience organised by the East Java
Chamber of Commerce and Industry.
Mr Speaker
There has been some comment in the Australian media to the
effect that, in my discussions with the Indonesian
Government, I did not give sufficient weight to Australian
concerns about East Timor and human rights issues.
Let me repeat what I said about this publicly in Jakarta.
While recognising the importance of the media in both
countries, I believe it is not up to them but to the two
Governments to set the agenda for the bilateral
relationship. The Indonesian Government responded positively to our
putting first priority on the establishment of a basis for a
long-term cooperative relationship.
Having established a constructive basis for dialogue, I took
appropriate opportunities to raise with President Soeharto,
Foreign Minister Alatas, and Defence Minister Moerdani, our
concern about the killings in Dili last November and human
rights in East Timor.
I registered firmly our view that the unhappy situation in
East Timor detracts from Indonesia's otherwise impressive
achievements, and said it is likely to continue to attract
close public attention in Australia.
I repeated the Australian Government's view that the
Indonesian Government's response to the Dili killings had
been a credible one.
I underlined our continuing concern for the welfare of the
East Timor people and emphasised three points:
the need for a more benign, and therefore constructive,
approach by the armed forces.
the need for long-term reconciliation, taking account
of the economic aspirations of the people of East
Timor, and
our concern about using the criminal code to deal with
non-violent political protest.
I explained that our aim as concerned outsiders was not to
challenge Indonesian sovereignty over East Timor, but to
assist where we could in measures for the welfare of the
people, and to support a process of reconciliation between
them and the Indonesian authorities.
As a practical example of how Australia can help, a
memorandum was signed during my visit providing for an 11.5
million dollar aid project to improve water suppy and
sanitation in parts of East Timor.
Mr Speaker
In advance of my visit to Indonesia, I had written to
President Soeharto about the possibility of establishing a
process of periodic Asia-Pacific heads-of-government
meetings, preferably based on the APEC mechanism.
I was encouraged by President Soeharto's response. He
endorsed the proposal and underlined the need for proceeding
carefully, a view with which I entirely agree.
Since returning from Indonesia, I have received a letter
from President Bush welcoming the proposal for periodic APEC
heads-of-government meetings.
He encouraged Australia to promote the proposal in a way
that takes account of separate moves to develop the
institutionalisation of APEC.
The suggestion of periodic APEC heads-of-government meetings
is not an initiative being pursued against a specific
deadline. But it is intrinsically a worthwhile idea and is
now finding its way on to the regional agenda.
Mr Speaker
A recurring issue in Australia's relations with South-East
Asia is whether our free media is an obstacle in the path of
constructive relations.
In fact, this issue arose at the end of an address to a
large audience in Jakarta. I made a point of saying that I
believed the Australian media and a free press in general
need not be feared in Indonesia.
Indeed, rather than wish us to constrain our media from
disseminating what they might regard as unfairly critical
views, they should themselves take advantage of the
opportunity always available in our media to respond to the
criticism. Mr Speaker
it may be of particular interest to Members that the
heightened interest in Australian identity and nationhood
has struck a positive chord in Indonesia.
It is not really surprising that a country like Indonesia,
which had to fight so hard for its independence, should be
interested in the emergence here of a more clear-cut view of
Australian nationhood.
Let me emphasise that our purpose is not to ingratiate
ourselves with Indonesia or any other nation, as some
Members seem inclined to imply.
Australia's nationhood, its re-generated sense of identity
and purpose, will be determined by Australians, on
Australian terms and as suits us best as a people.
At the same time, there is no harm in observing that
indications of a less equivocal sense of Australian
nationhood actually help our foreign policy.
Mr Speaker
My visit to Indonesia achieved all its objectives.
It accelerated the building of a network of connections and
institutional links: diplomatic, cultural and, above all,
commercial links, which have given greater substance to the
bilateral relationship.
I amn satisfied I struck the right balance in underlining our
commitment to a positive relationship with Indonesia, while
firmly registering our views in areas of difference.
There is now a basis for the expansion of relations with our
largest close neighbour, a key country in a region vital to
our security and prosperity.
Mr Speaker
It was with great pleasure that I visited another close
neighbour and important partner in the region, Papua New
Guinea. That the visit was occasioned by the commemoration of the
heroism and sacrifice of Australian, Papuan, New Guinean and
Allied servicemen in the most crucial battles of our
history, made it a privilege.
It is a tragedy of our history that there are a great many
places in the world where Australians died in battle and lie
buried.
The stories of their gallantry are legion, and the monuments
and rituals we have constructed to their memory ensure that
we will not forget.
It is not surprising that the First World War which killed
60,000 young Australians, and the first great battle in
which Australians took part, Gallipoli, should have come to
dominate our national legend in this century.
Yet it is ironic that our knowledge and appreciation of the
battles which were truly in defence of this country and the
civilisation we had built here are less well known.
It is my earnest hope that the fiftieth anniversary
commemoration of the terrible, yet ultimately triumphant,
battles of the Kokoda Track, Milne Bay and other places in
Papua New Guinea will re-awaken our regard for them, and in
time fix them at the centre of our tradition.
It is certainly to be hoped that the story of the campaign
in Papua New Guinea, and the-story of the Battle for
Australia in 1942, will become known to all Australians.
Mr Speaker
It was one of my great privileges to pay, on behalf of
Australia, due homage to the Papuan and New Guinean war
carriers whose assistance to our troops was arguably the
greatest humane gesture in our history.
Arising from my discussions with Prime Minister Namaliu and
my visit to Kokoda, I was happy to announce various steps
the Australian Government will take to show our appreciation
of past sacrifices for Australia and Papua New Guinea.
I offered Australian assistance to establish in the Waigani
district of Port Moresby a memorial to commemorate the deeds
of the PNG war carriers.
As I said in the House last week, I warmly welcome Prime
Minister Namaliu's announcement that the KokodaTrail and
Kokoda village will be declared a nationalf heritage area to
preserve their historical significance.
While in Papua New Guinea, I announced that the Australian
Government would be happy to help establish rest facilities
for people walking along the Kokoda Trail, improve local
welfare facilities at Kokoda, and improve the local war
museum. The cooperation between Australians and Papua New Guineans
in defence of their countries left a profound friendship as
its legacy.
That it endures was plain in the reception we received
everywhere we went, and in discussions with the Prime
Minister, Mr Namaliu and other officials.
Papua New Guinea's democracy remains vigorous.
Through a difficult period of structural adjustment, the
economy has become more competitive and resilient.
Notwithstanding the effects of the Bougainville problem and
falls in commodity prices, in 1991 real GDP grew by 9 per
cent.
Driven by developments in the mining sector, that growth
rate presages a resources boom which, if it is managed
judiciously, promises to lay a sound basis for the country's
economic future.
PNG has also become more outward looking.
Like Australia, it is working to make the most of the
opportunities generated by growth in the Asia-Pacific
region. Without abandoning its ties with the South Pacific, it has
developed new links with ASEAN.
It has consolidated a close relationship with our mutual
neighbour, Indonesia.
Australia's economic relationship with PNG continues to
expand. Two-way trade last year reached a record 1.7 billion
dollars, an increase of 48 per cent over the previous year.
Opportunities for our exports should rise as demand is
generated by the anticipated resources boom.
The principal problem for PNG remains the one which its
Prime Minister defined so precisely without security,
economic development cannot proceed, and without
development, security cannot be guaranteed.
Mr Speaker, during my visit I reaffirmed Australia's
commitment to security and defence cooperation with Papua
New Guinea, as set out in the Agreed Statement on Security
Cooperation of September 1991.
But more work needs to be done to ensure that this
cooperation is fully effective. In particular, I stressed
the need for Papua New Guinea to develop its own integrated
and comprehensive plan of action on security force reform
and resource allocation.
During my talks in Port Moresby I stressed the need for a
peaceful solution, through dialogue and reconciliation, to
the continuing problems of Bougainville.
I made it clear that Australia was willing to help with the
reconstruction that will be needed on Bougainville.
At the same time I stressed the need for the PNG government
to keep up regular supplies of humanitarian goods and
channels of communication with Bougainvilleans, and,
equally, our desire to facilitate such aid.
we can be confident, I believe, that the people of Papua New
Guinea have the will and the capacity to meet the challenges
which face them.
Australia stands ready to give what help it can on the path
to greater stability and prosperity.
As partners in a changing world, a self-reliant PNG, and
thus a PNG better placed to realise its aspirations and
potential, will be in both our interests.
Mr Speaker, the world is undergoing profound changes and
nowhere is this more the case than in our own neighbourhood.
During the past decade the economies of North-East and
South-East Asia have been expanding at approximately twice
the world average.
They will continue to grow.
Through our strategic location and expanding links with the
region, Australia stands to benefit greatly.
It will not happen without an effort. It will require
imagination, initiative and persistence. It will require
belief in ourselves.
It will require these things from governments, Federal and
State. It will require them from business.
It will require them, I believe, at a truly national level.
By this, I mean that to seize the opportunities and assure
our long-term security, without prejudice to our
predominantly British and European origins and our
continuing affections for those places, we must determine as
a people to think of Australia as a place whose history is
its own, whose traditions and values are its own, whose
future is most definitely its own.
In going to Indonesia and Papua New Guinea I sought to
strengthen our regional linkages, to open dialogues, and to
help to lay the foundations for relationships which will
enable us to contribute to and share in the fruits of
regional growth.
I sought to demonstrate the importance Australia attaches to
its growing integration with the Asia-Pacific region, and
the importance we attach and must attach to increasing
the breadth and depth of our understanding of those
countries. Mr Speaker
I do not think we should be surprised if we find that in
coming to know our neighbours as never before, we come to
know ourselves as never before.