NQ DATE
12 April 1973
ADDRESS BY SPECIAL MINISTER OF STATE
The attached is the text of an address by the
Special Minister of State, Senator Don Willesee, to ' he
0 29th Session of E. C. A. F. E. ( 12 Aoril 1973) which is
currently meeting in Tokyo.
Senator Willesee was elected one of six Vice
Chairmen of the meeting ( others were Indonesia, China,
Iran, Neral and the Philippines). Ambassador Tsuruoka of
Japan was elected Chairman.
I join in extending the Australian delegation's
warmest congratulations to you, Mr Chairman, and to our
Japanese hosts for the excellent arrangements for this
29th Session. Australia enjoys especially friendly relations
with your country which have an assured and firm foundation
in the interdependence of our economic relations. It is the
intention of Australia's new Government to work for still
better understanding between Australia and Japan and with all
countries in the ECAFE region.
Mr Chairman, the 29th Session of ECAFE holds promise
of marking the beginning of a new and more hopeful era in the
affairs of the ECAFE region. There are three major elements
in the present situation which call for special comment.
The first is the signing of the ceasefire agreements
in Viet-Nam and Laos. These agreements have been welcomed
throughout the world and particularly by the people of our
region. Although it would be unrealistic to overlook the
problems that are being encountered in carrying out the
various provisions of the agreements, it is our hope that
they will lead to the re-establishment on a firm basis of
conditions of peace in Viet-Nam and Laos. It is our hope
also that, despite the continuation and indeed the recent
intensificiation of fighting in Cambodia, a ceasefire may
soon be achieved in that country as well.
An end to hostilities throughout Indo-China would
improve the prospects of a successful assault on the major
obstacles and barriers to economic and social development / 2
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in a major area of South East Asia which forms such an important
part of the ECAFE region. We in Australia acknowledge that
there will be a great need for rehabilitation and reconstruction
in the post-war period in Indo-China and our Government intends
that Australia should assume a generous share of the reconstruction
effort. The first principle of any effective policy of
development assistance, whether multilateral or bilateral, is
that no programme can be effective unless it accords with the
expressed wishes of the receiving countries. It is perhaps too
early to attempt to identify the role which the United Nations
including ECAFE, may be called upon to play in the reconstruction
effort in Indo-China, but it is clear that the wishes of the
countries of Indo-China itself will determine the extent and
scope of such a role. If ECAFE is given a role in the work of
reconstruction, it will have Australia's full co-operation.
The task for all countries interested in contributing
to the reconstruction effort will be to find effective ways in
which to act. The winding down of the war may open up new
possibilities for the Mekong scheme and we shall be following
the possibilities with close attention through our association
with the work of the Mekong Committee. We would hope that,
under more peaceful conditions, the energies of the people of
Indo-China could be directed to the economic development of
their region Australia stands ready to participate with them
in this task through the Mekong and other schemes. Meanwhile 0 / 3
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I should like to record that the Australian Government is willing
to grant up to $ US500,000 for the second phase of the Nam Ngum
dam project. The Australian Government has established full diplomatic
relations with the Democratic Republic of Viet-Nam and we are
now in the process of setting up an Embassy in Hanoi. A
significant part of the work of this Embassy is likely to be
concerned with possible Australian aid activities. We look
forward to the time when the Government of the DRV will be able
to make its contribution to regional co-operation.
The second element to which I refer is that China has
now taken her place in the community of nations and a delegation
from the People's Republic is present at this Session of ECAFE
for the first time. The Australian delegation extends a warm
welcome to the delegation of China. Our Government moved to
recognise and exchange diplomatic missions with China as soon
as we came into office. We believe that the absence of contact
with China had led to a build-up of inflexible attitudes which
inhibited the scope for co-operation and progress in our regioh
The ~. ssumption of its rightful place in ECAFE by the largest
country in the region should help to accelerate the movement
towards better understanding among all regional countries and
to give greater authority to the deliberations of ECAFE. The
Australian delegation looks forward to fruitful and constructive
co-operation with the delegation of China. / 4
The third element concerns the administration of ' ECAFE
itself. This will be the last session at which U Nyun will be
present as Executive Secretary. I associate myself with the
leaders of other delegations who have paid tribute to his service
to the cause of advancing the economic and social wellbeing of
the Deople of this region for 14 years. He has been tenacious
in overcoming obstacles and in advancing the process of Asian
co-operation in the Asian way.
ECAFE has notched notable achievements during his oeriod
of office of which the creation of the Asian Development Bank
has possibly had the most impact. The Executive Secretary is
justified in taking -pride in his achievements, especially since
the last few years have been a difficult period for the region
and inevitably for ECAFE.
U Nyun will be succeeded as Executive Secretary by
Ambasspdor Maramis of Indonesia. Ambassador Maramis has had
a long experience in the Government and foreign service of his
country and he already has a strong background of work and
achievement in the economic field. We are confident that, under
his leadership, the Secretariat of ECAFE will meet the new
challenges of a more hopeful era. The new Executive Secretary
will have Australia's full support and co-operation.
Mr C'iairman, Papua New Guinea is represented at this,
as nt previous recent ECAFF sessions in its own right, on this
occasion by the Minister for Finance, Mr Julius Chan, who will
explain the policies of his Government. All that I want to say,
as Australia's representative at the session, is that our
Government's policy is to move with all due speed towards the
creation of an independent, united Papua New Guinea. We propose
to reach this objective in the closest consultation with the
Government and the House of Assembly of Papua New Guinea within
the lifetime of the present Australian parliament. It is our
intention to introduce legislation providing that Papua New
Guinea should be self-governing by 1 December of this year or as
soon as practicable thereafter. Australia is deeply committed
to continue a substantial programme of economic aid to an
independent Papua New Guinea.
The peace and prosperity of the ECAFE region is a major
commitment of the Australian Government. We see our participation
in this Economic Commission as affording opportunities by which
we will be able, as a significant economic power in the region,
to identify and adopt constructive policies aimed at honouring
this commitment. We shall be looking to the discussions within
ECAFE for guidance and stimulation.
The Secretariat is to be commended for its systematic
presentation of social and economic performance in the region
for the First Biennial Review of the second United Nations
Development Decade in conjunction with the Economic survey for
1972. The Survey shows, however, that the performance of
individual developing countries are continuing to fall short of / 6
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desirable levels of achievement. The average weighted annual
growth rate for all ECAFE developing countries reached almost
7% by 1969, but had fallen back to 5.6% in 1971 and the survey
states that it may have been below this level in 1972.
The rapid and sustained reduction in mass poverty,
which is recognised as a special priority goal for the ECAFE
region, is not being achieved at current rates of growth in
production, while population continues to increase at high
levels in some cases up to 3.5% per annum. The table on
page 34 of the English language text shows that in 1971, GNP
per person grew at substantial rates of over 7% in only two
of the nine countries listed Iran and the Republic of Korea.
Indonesia achieved an encouraging 3.8% per capita but the per
capita rates for the other countries were all below and in some
countries will below 3%.
The survey explains the slower growth rates in terms
of two major short-term factors: the slowing down in the
economies of Japan, Western Europe and North America and the
droughts and other adverse conditions which afflicted agriculture
and crops in most ECAFE countries in 1971 and 72.
The first of these factors points up the need to
solve the problems of basic economic stability and growth in the
advanced economies so as to provide the essential conditions
for stable trade and payments. The survey rightly draws
attention to the benefits for the developing countries from
steady growth and high levels of employment in advanced ./ 7
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economies accompanied by a rational solution to the current
international monetary problems.
7CAFE will not be able to do its best work until these
problems are being successfully tackled. Individual developing
countries will be able to plan effectively for their development
and for the welfare of their people only in circumstances which
offer reasonable predictability of income prospects and trade
returns. These are the preconditions for making more resources
available for human welfare.
The restoration of order in the international monetary
system will require concerted efforts by individual countries to
achieve equilibrium in their own balance of payments. Australia
is working actively within the Committee of Twenty to further the
possibility of reforming the international monetary system and
it is reassuring that the developing countries of our region are
represented in the Committee by India and Indonesia.
In the latter part of the year, a further round of
trade and tariff negotiations within the GATT should commence
and we will be working for meaningful results which recognise
the particular interests of the developing countries as well
as countries like Australia which are major exporters of primary
products. We hope that developing countries, particularly the
countries of this region, will avail themselves of the opportunities
available under Australia's scheme of tariff preferences for / 8
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developing countries which has now been in operation for seven
years. Our Minister for Overseas Trade recently announced a
further extension of the scheme and we have been active in bringing
concessions under the scheme to the attention of regional countries.
I would like to stress that our representatives are always
available for consultation on ways of taking advsntage of the
scheme. Against the background of uncertainties surrounding the
future of international tri'de and payments, it is not surprising,
though disappointing, that the total flow of resources from the
adva~ nced economies to developing countries in the region has
continued to decline. In 1971, the developed countries as a
whole contributed only .35% of their GNP to the developing
countries in the form of official aid compared with .53% at the
beginning of the 19601s. Australia has maintained its good aid
Derformance of the recent Dast and the annual flow of official
development assistance from Australia remains at over of
GNP. Meanwhile we have continued to surpass the 1% Target for
the'transfer of all resources, official and private, for each
of the last three years and this situation seems likely to
persist at least for the next year or so. The total value of
Australiats official aid for the current financial year is likely
to be $ A220 million or $ US308 million and has been increasing at
around 11% per annum. As delegations are aware, nearly all of
this assistance goes to the countries of this region.
Our Prime Minister has indicated publicly that Australia's
intention is to have a substantially increased foreign aid 0 1/ 9
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programme and we are currently working to improve still further
the quality of the programme.
We expect these efforts to result in a closer alignment
of our programmes with the policy measures which are emphasized
in the survey. In collaboration with recipient countries we will, for
example, be looking intensively into the nossibilities of giving
greater emphasis to sovial fields and to the effects of our
programmes on income distribution and employment uroblems.
We will also be looking into the possibilities of
increasing the number of our projects in rural areas so as to
bring benefits more directly to the people of developing
countries. Mr Chairman, there are many practical problems in
achieving effective regional co-operation in an area as vast
as the ECAFE region and the Australian delegation is concerned
that the approach of ECAFE to questions of regional co-operation
should be constructive and pragmatic. Accordingly, it would
seem desirable to outline, in broad terms, some thoughts on
ways in which ECAFE might strive to develop more effective
techniques for tackling some of the practical problems of
regional co-operation.
In recent years there have been criticisms that the
sheer size and scone of the Commission's activities, although
well intentioned, have imposed a heavy administrative burden
on the Commission and on Governments. For understandable
reasons, ECAFE has given much of its attention to approaching
problems on a region-wide basis. A number of the Commission's
projects have been of considerable value to the region, but
other proposals have not been launched because of the difficulties
of Dutting them into practice.
Sub-regional approaches have been adopted but usually
in regard to a limited range of topics of interest to a small
number of countries. Some examples are seen in the work of the
TyTIihoon Control Cor. mittee, the Mekong Co-ordination Committee,
the Committee for Off-shore Oil Prospecting and the Asian Commodity
Communities. These activities have generally been of considerable
value to member countries and we feel that the Commission might
be encouraged to apply more of its resources to ways and means of
developing sub-regional approaches to problems. One technique
might be to select groups of member countries with common
problems, and to deal with tlhem through task forces cutting
across individual disciplines and sectors where necessary.
We are not, of course, suggesting that tI-e Commission
abandon regional projects of proven value and indeed we encourage
all measures of regional co-operation which are feasible and
practical. We feel however that a greater degree of emphasis
on the sub-regional approach could lead to a more positive
identification of solutions for pnarticular problems and could
facilitate tI-e mounting of projects which have clearly
identifiable and attainable aims. Regional developing countries
have themselves been showing the way.
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Mr Chairman, there are two broad areas which are
currently the subject of intense discussion internationally and
within countries: these concern the environment and population.
There have been profound chianges in the attitudes of governments
in our region to these two matters in the recent past. Australia's
attitude to both questions is positive and our government looks
forward -to effective co-operation with Asian ana Pacific countries
in these two areas.
We understand and sympathise with member countries in
their efforts to arrive at an appreciation of where the emphasis
should be placed as between the objectives of economic and social
development on the one hand and the maintenance of a sound
environment on the other. We consider that the most fruitful
approach is to regard the objective of maintaining a sound
environment as complementary to, rather th-an in conflict with,
the objectives of economic and social development. The problems
are com~ lex, however, and ECAFE should be able to assist
Governments to formulate realistic policies for environmental
protection as they pursue their developmental goals.
ECAFE will have a sound basis for its work in the
relevant proposals of the Stockholm conference which have been
adopted by the General Assembly. Australia has already shown
its support for international co-operation on environmental
matters by pledging a contribution of $ US2.5 million to the
U. N. fund. ./ 12
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There is widespread acknowledgement by regional
governments that the adoption of effective measures to limit
rates of population growth is an important factor in the
achievement of improved living standards.
The Australian delegation welcomes the work of the
R. CAFT7 Secretariat in the population field. The contribution of
the Secretariat was a major factor in the success of the Second
Asian Population Conference held in Tokyo last November.
Australia is now contributing funancially to the major
international population funds and we expect that in future we
will he able to assist ECAFE countries on a more vigorous basis
in this im-oortant area. The contribution of the ECAFE region to
the World Population Conference in 1974 will he a particularly
significant one. We shall be aiming to ensure that Autai'
position at the Conference is closely aligned with that of
our friends in this region.
Mr Chairman, the Australian Goverhment intends that
Australia should. have warm, friendly and co-operative relations
with all countries in the region. Our attitude on United Nations
matters is in close alignment with those of our friends in this
region. This anplies here in ECAFE, as well as in the other
organs of the United Nations, including the Security Council.
The Australian Government will work strenuously for the
improvement of co-operation in the region and intends to give its
full backing to the valuable contribution of ECAFE to the tasks
of economic and social progress in this the most populous part
of the world.