PRIME MINISTER
TRANSCRIPT OF THE PRIE MINISTER, TIRE HON P. J KEATING MP,
AND BRITISH PRIME MINISTER, THRE HON JOHN* MAJOR, DOORSTOP,
LE MERIDLEN HOTEL, LIIMASSOL, THURSDAY, 21 OCTOBER 1993
E& OE PROOF COPY
JM: The Prime Minister and I have had the opportunity of discussion upstairs. We
have been able to range over a whole serie; of international matters, but
predominantly we have concentrated our time on the agenda here at this Heads
of Government meeting. I was delighted with what the Prime Minister had to
say at the opening ceremony about the necessity for an agreement on the
Uruguay round. I took the opportunity this allernoon of re-emphasising that
message. What is very striking about the disi.-ussions we have got here, we
have one third of the nations of the world present at this conference
representing one quarter of the worlds population and a very powerful feeling
from countries all around the world that it is vitally important we can reach an
agreement to the Uruguay round this year. Wc have a further discussion on it
tomorrow and I rather expect that feeling will ) e taken a good deal further. I
won't elaborate on other issues for the moment. I will invite the Prime Minister
to say a word or two and then we'll take questicons for a few moments.
PJK. I can only add to what the Prime inister has said, that I myself was struck by
the genuine concern by those represented about the GATT and the Uruguay
round, the very strong expressions of opinion that came this morning in the first
half dozen speeches the speeches in respome to the welcome of President
Clerides and then in more formal session this . afternoon again, the theme was
repeated. So, there is I think, a very clear und-erstanding that there has been a
very large transfer of wealth from the developing countries to the developed
world via the terms of trade through low ; ommodity prices and that an
outcome in the Uruguay round has to be an outcome to serve everybody, not
just the developed countries in things such as intellectual property rights and
services, but also to give the third world, the developing world, a chance to
improve their incomes and get access to bigger markets. So, it is very much a
live issue here I am pleased to say.
J: Gentlemen, how much more can you achieve fr om GATT with just a strongly
worded statement out of the Commonwealth, have you Mr Keating suggested
that the Prime Minister could push France harder through the EC?
PJK: I complemented the Prime Minster on the positions that he has taken
consistently on the GATT now for some years and again more recently in his
urging's which he has made with member state., of the European Community.
We can't ask any more than that those of us of the Cairns group, but there is n
doubt that the December 15 deadline is not going to be extended by the
American Congress; this is a real deadline and I think that there has to be
pressure brought upon France in particular, probably including by the industrial
members of the French economy as well as though, more generally the world
community.
3M: If I can add something to that. It is a fairly clear choice by the end of this year
either we have an agreement on the Uruguay round and a substantial increase
in the volume of world trade that will help ev.-ry developed and developing
country around the world, or we have no agreement and a very real danger of
protection, retaliation, collapse in the levels of world trade and a rapid growth
of unemployment. I do not think that is putting the situation too starkly it is
as clear cut as that. Faced with that, I think t1~ ere is no doubt that everyone
must make concessions whatever their domestic. difficulties with the intention
of reaching an agreement.
J: Prime Minister, Mr Keating, did Dr Mahathir's re: marks on GATT reassure you
for the possibility of doing a deal with him on the APEC issue?
P3K: I do not think the two are related. The point is that there is an expansion
occurring world wide. The American economy is picking up, early next year
we expect the Japanese economy to start to groxA again, more solidly and this is
the right time in a low inflationary cycle, in a clear upturn after the problems of
the late 1980s and early 1990s that we have a chance to really improve the
velocity of trade without, as the Prime Minister Eays, seeing countries fall back
into trading blocks or trade tactics which would be pointless with a good
outcome of the GAIT.
J: Mr Major, do you agree with Mr Keating that mcere pressure should be put on
France?
JM: I think more pressure should be put on everyone who hasn't yet found
themselves in a position to agree to a conclusion 10 the Uruguay round. France
is often mentioned France is not the only impediment to be overcome, there
are other ones as well. I think it is necessary for every nation to look at what
needs to be done and judge what the impact woud be if we were unsuccessful.
I think right the way across Europe that is well understood.
J: Prime Minister, that common ground amongst everybody who is here, what
can you achieve beyond simply restating it? What will you do to push the
process forward?
JM: We have a lengthy discussion on that tomorrow. I think those are matters for
discussion tomorrow.
J: Mr Keating, what is your prediction now for the outcome of that round, are
you hopeflul of success?
PJK: I am still hopeful of success. It has had seven y(; ars in the making, there are so
many obvious benefits for so many countries in the round and I think that on
balance, even those who have expressed difficultes will, on balance, be winners
from it and can't believe that in the end they will see it fai as a consequence of
intransigence on one point or another.
J: Mr Keating, apart from GATT did you discuss the prospects of Australia
becoming a republic?
PJK: No, no, no the Prime Minister and I had a chat about that in London, I think
you might remember and we didn't discuss it tday. This is an issue in our
constitutional life which will take some time 1o be resolved, but like most
national debates of substance they take time.
J: Did you talk about the future of the Commonwealth?
JM: I think when many people look at the Commonwealth, they think it is just
bound together loosely with intangible ties. I think that understates what the
Commonwealth does and understates it quite dramatically. Many of the
principles that we agreed at Harare two years ago are now being put into
practice. A number of Commonwealth countrieE that weren't democracies two
years ago are now democracies. The level of trade in the Commonwealth is a
very dramatic instance of the close relationship that exists between countries
often on different parts of the globe. I think those people who stand back and
say well, the Commonwealth may have been of !; ome use years ago, but it is a
little out of date now, I believe they are absolutely and totally wrong and I
think this conference will prove it.
J: Mr Keating, would you see a republican Australia stay a part of the
Commonwealth?
PJK: Entirely and definitely because I think that as the Prime Minister has said,
intangible though some of these links may be, it is the intangible quality, the
common ground, the common history, in many respects, of course, the
common language and the success the Commonwealth has had in such weighty
matters as South Africa in just recent times. I think it is very difficult to get a
grouping of nations states together today for w. iat ever reason. But to have
one with a history like this representing such a large part of the worlds
population and production is a unique opporturtity to, I think, not only raise
matters of international significance, but actually ; eek to remedy some of them.
JM: Thanks very much indeed.
ends