PRESS CONFERENCE GIVEN BY THE PRIME MINISTER
BEFORE LEAVING FOR OVERSEAS 27 OCTOBER 1971
CANBERRA, A. C. T.
Q. Now that* China's in the United Nations, Sir., how
does this affect our dialogue with Peking? Does it mean that
we'll have to move-quicker towards recognition of the Chinese
Government?
PM No, I don't think it does. I think it would create
a bad impression with the Chinese if it looked as though we
were over-anxious to respond. In any event, I think it's now
become common gossip that there have been discussions in Hong Kong
about the possibility of closer trade relations. I've said before
that we'll proceed cautiously, and trying to ensure that at each
step that each step taken is to the advantage of this country.
I'm sure it's better to handle this carefully, particularly as the
People's Republic are a very careful people, Ney take their time
over making decisions.
Q. Sir, how far off would you think recognition is, within
months, or years?
PM Nobody can make an appre-ciation, because the rapidity
-of. the movement will depend very largely on the actions of the
V Government of the People's Republic.
Q. You mentioned the talks in Hong Kong, Prime Minister,
can you tell us what the outcome of those talks was?
PM No. Because while it has been agreed that I can
go as far as I have gone this morning, we've been consistently warned
that the prudent course is to day as little as possible.
Q. Is there any possibility of a trade mission qoing-to
China this year?
PM I don't know. I.
. PM How long has this been going on Sir, weeks or months?
It depends what you mean. Talks have taken place
in several areas as well as Hong Kong.
Sir; has your Government decided in principle that
it wants to recognise China?
We've decided to commence a dialogue to improve the
relationships between the two countries, we have gone no further.
Will you pursue this on your visit overseas, for
example I expect the Chinese will be seated at the United Nations
by the time you get there. Willyou try....
That is doubtful, very doubtful.
I wondered if as you are in the United States....
No I would not, because my timetable is full. I want
to be back here for the last three weeks of the House, or for the
opening of the next three weeks Session, and this is a subject that
could not be raised. Will you come back ready to make a statement to the
House., Sir? On China?
On your mission generally.
Yes, of course I will. t
Sir, could you tell us your itinerary?
I understood that Reg MacDonald had given yo~ u a
document setting up an itinerary in some detail.
Reg MacDonald: RIegt ' sac ~ oianld : the boxes now Sir.
3.
On the economy 7
PM Now wait a minute, can I finish this one. Also
I've asked Mr. MacDonald to give you a list of the people who'll
be travelling with me. That will be available this morning, if
it's not in the boxes already It is in the boxes already,
and I will be drawing on the assistance of Dr. Coombs not in
matters that involve him in the arts and similar matters, but as
a kind of guiding philosopher, if there's any problems I feel
he can make a contribution about.
The international monetary crisis Sir?
PM That will be not I'm-not going to go to any
details about what I will ask him to do, but he'll be ready
to give advice if I want him to give it. over there, and with
me I'll have technical experts with me, who I think are as well
up in the problems of the international monetary problems as
I could want to get.
Q. Sir, why are you taking Dr. Coombs specifically
then. It seems very unusual.
PM Is it. I've just explained to you why I ' ye done
it and I go no further than that.
Q. Sir, who will you be seeing over there who's
connected with the Arts. We haven't seen your itinerary, who
will you be seeing who's connected with the Arts in America
and Britain.
PM Well I didn't-say with the arts necessarily, over
a wide range of subjects. I value his advice very much. I've
been able to use his advice to very good effect over the course
of the last few months, and I'll continue-to use it.
Is this going to be a permanent role for Dr. Coombs
sort of a roving adviser?
PM I will be using Dr. Coombs' advice in the future
to a considerable extent.
Q. Will he become Australia's Dr. Kissinger Sir?
PM I would use his advice to the maximum, 1 and I believe
I can use him in the interests of the Australian people.
0. Will he have a position within the Public Service,
or will it just be as an outside adviser?
PM He's already got a position with the various positions
with the Aborigines and the Arts. That will be supplemented
he will supplement those activities. Giving advice to me when I
think it is desirable.
Q. Prime Minister, it has been suggested that Sir John
McEwen might take on some sort of
PM I haven't heard it. I haven't heard it
Look what are we doing with this. I'm going away on a momentous
visit. Are we going to turn it into a somewhat frivolous exercise
or are we going to try and deal with things that are of great
importance to this country. Now I want to remind you that on the
last occasion that I had one, the then Chairman had to say to me
that we didn't conduct them in a way that really warranted repetitior
I please ask you if you want me to go on consistently giving them,
can we keep them to what is relevant and what's important.
Q. Can I bring up an important matter Sir. Our correspond
ent in Washington reports today that President Nixon will ask you to
send Australian military advisers to Cambodia to train the Cambodian
Army. He also says that the Americans have secretly sounded out
the Australian Government on this matter. Could you tell me.
PM To the best of my knowledge there has been nIo secret
sounding out of the Australian Government, and I believe I would
have known as soon as anyone. Secondly, I have not heard any
suggestion that we would be asked to make a contribution of a trainin
TEAM or instructors to Cambodia. It is hypothetical, and I can't,
give answers to hypothetical questions. l
Q. Mr. McMahon you've described your visit your
coming visit as a momentous visit. Could you outline to us the
principle things you hope to achieve'while you're overseas?
PM I've said in the first conference that I've had
here, that I would not be trying to forecast what is likely to
happen. In the first place, we haven't got a precise agenda for
the meetings. But what I did say at the last meeting that the
press have been pretty close in its speculation about the kind
of event that had occurred and would establish the foundations
on which discussions could take place. Both in Washington, and
in London. I'll go no further than that.
0. Mr. McMahon, do you expect that by the time you get
back, Cabinet will be able to make a firm decision on the parity
question. The Australian dollar?
PM I don't know. Nobody could tell you.
0. It's a possibility though?
PM It's a possibility. Angthing's a possibility. But
I think you know as well as anyone that the critically important
factor is for the major countries the dominant countries in the
international monetary markets at the moment particularly the
Japan, the Germans. It is critically important that they
come to some arrangement as to parities which are likely to stand
ov~ r a considerable period. Until these parities are established
it is difficult if not impracticable for any other country to
try and establish a rate which can be continued over a long period.
0. Can we give any consideration to. a temporary
arrangement between the yen and the Australian dollar pendin g the
long term solution?
PM No, I stand by what I said in the House. ' There'll
be no alternation to the policy decision the policy decisions
TO DEAL WITH THIS interim phase -not change whatsoever.
Q. Are you likely to go to Japan to discuss this?
PM No, I will not have time to. I'll just have
time to go to the United States, the United Kingdom and then
come straight home.
Q. You'd agree that the parity question apropos the
yen and the Australian dollar, is probably more important than
sterling and the Australian dollar. What would be your principal
mission in the UK. then Sir?
PM First of all, I've already answered the question,
I don't think the critical one, or the only one is the change
in parities between the yen and the Australian dollar. I donot
think that it is practicable to have a solution between two countries.
There has to be a general rearrangement of parities and that is k
what the Group of Ten and the I. M. F. are trying to achieve. But
not necessarily fixed parities there can be a greater tolerance
than previously.
Q. Will you have time to Go to Brussells Sir.
PM None at all.
Q. Prime Minister, you describe your trip as momentous
Why do you use that word, why do you think it's momentous.
PM Because it's momentous in a sense that these are
momentous occasions. There have been big changes in the United
Nations, there's been the initiation of visits by the President
to the People's Republic. He will also pay a visit to Moscow.
He will be making another announcement on policy relating to further
withdrawals of Amercian troops from South Vietnam. The British are
re ady to enter into the European Community. If these are not
momentous occasions, then other people have got differences of
opinion from mine. What I will be doing is being in Washington
and in London at a time when so many decisions are being made
about the future course of events in the areas I've mentioned.
Sir, you announced a couple of economic measures
yesterday, can you foresee other measures being announced while
you are away?
PM I won't go any further than that, but I would like
to emphasise this. That fundamentally the Australian economy
is strong. We've said it before, and it can bear repeating. That
what was said yesterday was dealing with marginal problems, but
directly oriented towards showing that we would take action in
these areas where we thought it was desirable but above all, to
establish the degree of confidence which is so essential in order
to achieve the purposes set by the Budget. -Confidence is the most
important element we need in the community today.
Q. Could Cabinet take any decisions if it felt it was
necessary on the economy?
PM of course it could. But I think they would also
consult me before they took them. But when a Prime Minister is
out of the country the Government of the country remains with the
Cabinet.
Q. There were some new building figures released
yesterday, Prime Minister. Were these brought to your attention,
they did appear to be quite disturbing in that they've got a very
high rate of non-residential building for the second month in
a row.
PM IWe've already emphasised that in the HOuse. We knew
of the trend that is occurring., But there is also outside informatioi
which seems to indicate, however reliable it might be, and I make
no judgment about how reliable it is, that the phase might be
starting to slow down. I see no evidence of: c* it yet.
Q. I see. Because last February I think, one of the things
that the Government intended to do was to dampen down this office
building by attempting to get overseas investors to consult with
Treasury.... nothing was done about this because it seemed to be
dying out.
PM Are you sure that not~ hing was done?
0. I thought you said in the House...
PM No I didnt say that nothing was done, I said. that...
when you say that nothing was done, it depends what you mean
Q. The Government took no action.
qM That's right it took no action, because it found that
it was not ynt due in any substantial extent to overseas investment
It's purely a domestic matter.* And I dont know of any easy means
that you can take in order to see that in these commercial and
industrial buildings that you can slow down construction too
quickly. In the public area of course, as you know we severely
restricted the rate of growth of the action by the States, and
we have substantially restrained Commonwealth expenditure too.
Q. You're not taking any direct action therefore, as you
say it's difficult to suggest one. I was just wondering if there was
anything you were contemplating.
SM Well isn't it a little bit peculiar that we've heard
some people say recently that there is no inflation, and here are
you in one area now urging that separate action should be tdken. NO
at the moment it's not a matter that I can discuss in any great
detailL. If you want to get a more full answer on this, you should
ask thie Treasurer.
Q. Sir, in Washington, will you be looking at the
effectiveness of the wage and price freeze that President Nixon's
imposed?
PM I've been... Qf course we'vye given a lot of consideration
to them. But I'd be fairly certain, other than unless it happened
to rise casually, but I wouldn't be discussing these matters with
President.
Q. But you are meeting Mr. Connally though aren't you
PM I have doubts about meeting Connally, but I will be
meeting other people from the Treasury, I understand Mr. Con~ lly
will probably/ 86er seas.
Q. You're likely to discuss the effect of the
surcharge on imports the effect on Australia?
PM I've said a few moments ago I'm not prepared to
forecast what I might be discussing with President Nixon. I thinkit
would be bad politics, I think it would be bad tactics to
start....
Inaudible
PM I wouldn't be prepared if I do something there,
I will certainly let those members of the press who are present
with me, know to the maximum I can what has taken place.
Q. In Westminster Sir, will you raise the question
of the E. E. C. transition-&-period effecting Australia?
PM I have no doubt at all that that will be one
of the subjects raised.
Q. Any new proposals to put to the British Government?
PM I've said three or four minutes ago, that I will
not under any circumstance try and forecast what proposals I'd
be likely to put, or for that matter what the what was likely
to be said to me. I'd rather keep those until I know what the
results of the discussions are, and what kind of result is likely
to emerge from them.
0. Sir, on the wage and price freeze just to clarify
it. I think you said you'd considered what had been done ine the
States. Does that mean that you've looked at the possibility
of doing it here? Has it gone that far?
PM NO.
Q. Does the idea appeal to you?
PM We have a totally different system to them. As I've
tried to say that ~ If you look at the Australian position, basically
our problem at the moment resides first of all around what we
call wage/ cost inflation. We have an Arbitration Court they have
haven't got one. And we have a constitutional restriction on our
power that they haven't got. The difference between the two
economies are substantial. In the Budget we took action to try
and prevent I've gone through this story before, but to prevent
9 demand inflation superimposing itself on cost inflation. I can't
go any further than that at the moment. But the Treasurer's
remaining here, if you want-to get any further action on the
economy, and details of it, ask him. And here, if I can, I'd
make one point. I am a great believer in a Cabinet System of
government ministerial responsibility. I want as afar as I can
ensur& it, that questions of details of this kind should be directed.
to the Treasurer. He's well capable of being able to understand
them. not only understand them, but answer them.
Q. Mr. McMahon could you give us any back ground on
W why it's taken the Attorney-General's Department almost two months
to decide on the legality of the Tariff Board using outside
consultants? And could you tell us further if they decide that it
0 is illegal, would the Government be prepared to legislate to make
PM it legal?
PM First, I can't tell you why the Law Department has
taken so long, other than/ tlI have been considering it for some
time. It's apparently a difficult legal problem, and you'd
have to ask the lawyers why. The Attorney would give you the
answer I'm sure. Secondly, to the second part of your question
I gave the answer in the House the other day.