FOR PRESS 655.
Extract from opening address to the annual
conference of the Australian Country Party June
23, at Wagga by the Rt. Hon. J. McEwen, Acting Prime
Minister, Minister for Trade and Industry, Leader of the
Australian Country Party
VIETNAM There 13 controversy as to whether Australian
troops should be in South Vietnam.
This is a free, independent country recognised
by the United Nations.
Australia had hoped that the United Nations
would be an organis'tion cxpable and willing to protect free
countries at least small free countries.
We will work towards the United Nations becoming
such an Authority, but at this stage we have to face the fact
that it has no such power or will at present.
Today the United Nations is unable, and many
of its member States unwilling, to protect South Vietnam from
falling victim to the Communists of North Vietnam and
Communist China. The United States is not engaged in South
Vietnam to protect American soil or American interests.
She is there to defend the freedom of a small
nation freedom from domina. tion by Communism.
For Australia, far more so than for the United
States, this is not just a conflict of ideologies.
Vietnam is the only fighting front in the
world today where the forces of freedom are actually fighting
the Communists. Every Australi. n must note that this, the only
fighting front, is dangerously close to our front door.
Some assert that this is a war wvich can't be won.
The argument goes that even if the United States
wants to persevere in this struggle, Australia should not
become militarily involved.
To me, this line of argument ignores the plain,
hard facts of our defence situation.
There are too many episodes of recent history,
to justify any confidence that any country with a small
population can safely work on the principle that if we mind
our own business, the rest of the world v; ill let us dwell in
peace. Incident after incident shows this to be
a completely unreal and dangerous approach to our defence
, nd security.
Nor can a country with our limited population
and present resources, geogro ica; lly situated as we are,
realisticilly think that vie can, by our own enceavours, take
care of all contingencies which might arise, invrlving our
security. In a1n age when v. a. ons and military equipment
require great resources, and higLhly-developed technology,
only the greatest of industrial powers, can alo 1e really
indeprenlent military powcre in their own right.
Unable to depend on the United Nations, what
is the courseof safety to us?
There is only one. The crea. tion and maintenance
of alliances wiith po erful and reliable friendos.
This must be the simile basis of our ap. roach
to defence. We have forimed alliances.
f course, v. with Britain, and New Zealand, with
whom we have a long and, proud history of standing together
in military affairs, for better or for worse.
And also w-ith t1e createst military and industrial
power there is the United States.
The United States, under ANZUS, is pledged to
defend us to safeguard our security.
But like any alliance, ours with the United
States must also be a two-ay alliance, for bettcr rr for worse.
You can't make alliances, you certainly can't
keep them, if you are going to take the view that:
" We want to be looked after in any event, but
wve'll pick aznd chloose when we'll support our
partner. Te won't esupport him unless we are
sure he's . ign to win.
This is the answer to those who say we should
not be in Vietnam because they think that in the circumstances
the United States can't win a clear-cu. t victory in that
troubled country. To merit thle NiJ re ty commitment of the
United States, vital to Australia not -uet for today or
tomorrow, but for years, pCerhapr generations in the future,
, ustralia must support our great and powverful ally in the task
she has assumed, of prcvcntinc further encroachment by the
ommunists in South :' ast Asia.
This is a stru-gle which could affect the
safety, even the survival, of our own country.
If Vietnam fall, . hat are the prospects for
peace, and for freedom, in Le in Thailand in alayysia?
What are the prospeats for utrl1ia 11 million
eople holding an i-mmense countr, with tremendous resources
nly now beginning to be e-ploitel,
A country in Australia's position cannot
afford the luxury of doing only uwhat is comfortable? doing
only that which does not involvo rieks.
Our conduct today must ansure we merit the
unhesitating support of our a. llies wen their support is
needed. Of course, we detest r: ar, but notso much as
we detest the thought of lms of our froedom to Communism.
Of course, we w: o ul---! ork with the British and
Americans to restore peace.
But I mean peace which preserves the freedom
of South Vietnam not a Deace which le-.~ s to Communist
victory by Treaty. As I said before, Vietnam is the only fighting
front in the world today " here the forces of freedom are
actually fighting the ComiLiunists.
Every Australian must note that this, the only
fighting front, is dangerously close to our front door.
Australia hel-ped the British, New, Zealanders
and . Malayans to stamp out the Communist terrorists in Malaya.
Today they are finished there.
We put them out by fighting them not by
signing a treaty with them.
Co .: mun-ism is here in Australia. I believe that
never before have Australians had such real ~ round to
recognise the da4nger to our freedom from Communisrm.
The Country Party w, as the first, and for a
time, the ONLY political Party in Australia declaring that
ommunism should be banned.
Let us again lead the fight against this
pernicious menace,
7, V A year ago Australia held reserves in foreign
exchange of œ 854 million next week at the end of this
Einancial year our reserves jwill have fillen to œ 680 million.
Having re~.: rd to all of the factors which
nfluence Australia's balance of payments, it would not be
n unreasonabl-guesstiimate that in a year's time our
eserves may have fallen by as much ag. in.
' Phis estimate pays some regoard, but not an
unduly pessimistic regard, to the U. S. A. U. K. policies of
minimising capital outflow.
So one of Australia's greatest needs xIill
ontinue to be, to increase export earnings to pay for the
mports of capital equipment : and raw mnterials, which provides
he , iuscles and sinews for the industry 3so essential for our
rowth.
-4
This year Australia will buy no less than œ 1,400
illion worth of imports, œ 500 million more than 5 years ago
hen imports were controlled at somewhere about œ 900 million a
ear. There is nothing wrong with dipping into reserves
to pay for these imports. That is what reserves are for.
But neither a business nor a country can go on
iving on its savings.
If Australia is to maintain continuously a high
evel of imports, then more anid more foreign exchange, must
e earned by our exports, by exporting more, by exporting
ifferent products, by getting better prices for our exports.
If prices had remained at the levels of 1963-64 on
hese 3 commodities alone, Australia would have earned an
additional œ 135 million export income in the financial year
nor closing. If prices of ALL export commodities had returned
to the more reasonable levels of 1952-53, Australia's export
i come would have been œ 300 million higher this financial
y ar. There must be fought a constant battle to improve
A stralia's earnings from exports. More in quantity! better
p ices. Australia has now entered a new phase of export
o gigantic quantities of crude minerals iron ore, coal, and
b uxit e. It is a. matter of great interest that, to date,
t ese sales and prospects of sale are almost in their entirety
td Japan. The historic Australia-Japan Trade Treaty of 1957
h -4s transformed the trading relationship between Australia and
J pan and, perhaps more important, transformed relationships
b tween the governments and the people of our two countries
alel counts this is good beyond c ofculation.
However, I have said on earlier occasions that
A1 stralia is not to be exploited only as a quarry. It is time
nn for us to see a growing development of the sale of these
ra materials after somie processing.
WAH A T Australia knows that historically wheat has been
pr duced in surplus to the co. mnercial market.
In recent years most of this surplus has been taken
of the commercial market and disposed of on concessional
te ms to the needy countries.
Part of the Australian proposal now is to deal with
wh at, surplus to commercial demand.
We concede that the country which produces wheat
su'plus to its commercial opportunities ought to be prepared
to sell some of that wheat at less than the commercial price
to the needy ought not to be the responsibility only of those
couhtries which produce wheat in export quantities.
That, in short, all the more affluent countries
whether wheat exporters or wheat importers should make a
money contribution to a fund which would be used to buy surplus
wheat at less than the going commercial price, and provide it
on concessional -terms to the needy.
That, in broad terms, is the Australijn approach.
DROUGHT It is proper that governments should concern
themselves with the problems of drought. The industries
affected by drought are essential to the national well-being,
and much that could be done to alleviate the consequences of
drought can be done only by governments.
In the livestock industries, drought is primarily
i problem of feed and water, but in practical terms transport
acilities and transport costs become a major part of the
roblem. I am hopeful that the present drought may bring all
Australian Governments collectively to face the fact that
irought is a recurring phenomenon of the Australian environment.
Not only does great personal hardship occur with tremendous
uffering to livestock, but the whole economy of a country sunh
as Australia is set back when a major drought occurs.
Clearly there is opportunity for more water
conservation by governments and, in very many cases, need for
more water conservation by the landowner.
It is quite practicable to-day to hold reserve
tocks of grain for feed without the risks that applied in
arlier times, of destruction by pests.
I believe there should be special consideration of
redit policies to enable farmers to hlve better reserves of
ater and of fodder.
In drought transport needs to be adequate and
inexpensive. It is not easy to mitigate the consequences of
drought for the grain grower, but the certainty that he will
have recurring experiences of loss of production through
drought and indeed, recurring experiences of failure to be
able to plant his crop in many districts through excess rain
must be sufficiently taken into account in assessing his costs
for the purpose of stabilisation schemes.
Over the whole field of drought consideration, the
assistance of the scientist and the extension worker must be
fally invoked. Most important work in relation to the drought
f eding of sheep has been done, but I very much doubt whether
tae result of this work has penetrated all sheepowners'
uaderstanding. In a comprehensively organised approach to mitigation
oC drought consequences, I believe the Commonwealth Government
w uld co-operate with State Governments.
This whole subject of drought is one on which the
c) untry voice must be heard. 4 5/ 6