SPFCI BY THE PRIME MINISTER, MR F. G, WHIHLAP, M. P.,
TO THE ITALIAN CU0rrBER OF COMMERCE -SYDNEY, MONDAY, 12 AUGUST 1974i
THERE ARE FEW COUNtRIES WITH WHIcH AUSTRALIA HAS
HAD LONGER CONTACT THAT IT HAS HAT) WITNi ITALY,, THIS CONTACT.
PROBABLY EXTENDS AS FAR BACK AS CAPTAIN CoOK1'' S VOYAGE To AUSTRALIA
IN 1770, AB3OARUJ THE " ENDEAVOUIR" WAS ANTONIO PONTO, THOUGHT TO
HAVE BEEN A. VENETIArNi THERE WAS AN ITALIAN NAMED TU70 IN THE
FIRST FLEET, THOUGH WE ARE NOT SURE IN WHAT CAPACITY HE CAME
To AuSTRALIAI DURaNG-THE NINETEENTH CENTURY ITALIAN MIGRANTS.
ARRIVFED IN AUSTRALIA IN SMALL BUT GROWING NUMBERS, PARTICULARLY
AFTER THE IMPE7US PRQVfDED BY THE GOLD DISCOVERIES OF THE
2850' S. INDEED THE GOLD RUSH C: AUSED THE INVOLVEMENT OF ONE
ITALIAN IN ONE OF THE MIOST CRUCIAL INCIDENTS IN AnsTRALIAN
HISTORY, RAFFAELLO CARBONI WAS ONE OF THE MINERS' LEADER~ S
AT THE EUREKA STOCKADE IN 185i-
THE ITALIAN MEN AND WOMEN HHO CAME To AUSTRALIA
CONTRIBUTED GREATLYi TO OUR WAY OF LIF'E. WE OWE MUCH 10 THE
ITA. LIAN CANEGROWERS IN NORTH OUENSLAND, TO THE ITALIAN GOLD)
MIlNERS IN WESTERN AUSTRALIA, THE ITALIAN TOBACCO GROWERS IN
SOUTH-WEST OESTERN AUSTRALIA AnD V/ ICTORIA AND THE FRUIT AND
\ E(; ETABLE GROWERS IN THE IRRIG3ATION AREAS OF THE MURRAY AND
PURRUMBIDGEE RIVERS OF NEW SOUTH WAI-ES AND VICTORIA.
2-
THE POST-WAR MIGRATION BOOM LED TO AN EVEN GREATER
INFLUX OF MIGRANTS FROM ITALY. THE ITALIAN COMMUNITY 13
NOW THE BIGGEST OF THE NONt-ENGLIqlH NATIONAL GROUPS IN AUSTRALIA.
FROM 1945 To DECEMBER 1973, 164,863 ITALIANS HAVE BECOME
AUSTRALIAN CITIZENS. THE 1971 CENSUS SHOWED THAT MORE THAN
289,000 AUSTRALIAN RESIDENTS WERE BORN IN ITALY AND IT IS
ESTIMATED THAT FROM 19' 46 TO 1972 MORE THAN 257, OOO of CHILDREN
BORN JN AUSTRALIA HAl) AT LEASI ONE PARENT WHO WAS BORN IN
o ITALY. THIS DRAMATIC INFUSION O'F ITALIANS HAS HAD A GREAT
IMPAC7 ONi AUF3TRALIAN SOCIETY. IT HAS SIGNIFICANTLY CHANGED
OUR WAY OF L114, ESPECIALLY IN OUR CITIES, SUCH PROJECTS AS
THE SNOWY MIOUNTAINS HYDRO-ELLCTR1C SCHEME WOULD NOT HAVE BEEN
rPosSIBI. IF WITHOUT ITALIAN RIGGERS AND ENGINEERS, INCLUDfNG
MIR JIM BA' 1UTTI. THE ITALIAN COMMUNITY HAS HAD A VERY REAL
INFLUENCE IN THE SMALL BUSINESS FIELD AS WELL AS [ N LARGER
ENTERPRISLS, SUCH As TRANSFIFHP CORPORATION, [ rHE BUSINES
CULTURAL AND SOCIAL ACTIVITIES OF THE ONE MILLION AUSTRALIANS
OF ITALIAN BIRTIH, EXTRACTION OR DESCENT HAVE MADE THE ITALIAN
COMMUNITY KA' OST SUCCESSEFULLY I NTECRATED. NATI ONAL GROUP, ON4LY
THE 13f-TIS-K ISLES HAVE MADE A LA4GER CONTRIBUTION ' 10 THE
AUSTRALIAN NATION ANll SOC)[ 1Y, WE HAVE RECU4TLY' RECOGNISEL)
THIS WITH THE APPOINTMENT OF DR-, EVASJO) COSTANZO TO THE-AUSTRALIA
COUNCIL AND MR CLAUDE ALCORSO TO THE UINVERSITIES COMMtISSION.
ITALIANS ARE NOT SIMPLY CONCERNING THEMSELV'ES WITH MIGRANT
MATTERS, BUT 11ITH THE AFFAIRSId OF OUJR WHOLE SOCIETY.
-3
TRADE BETWqEEN ITALY ANDr AuS7RAIA HAS ADDED
SIGNIFICANTLY TO THE CONTAC7 BETWEEN THE TWO COUNTRIES,
ITALY WAS OUR NINTH LARGEST MARKET IN 1972/ 1973. AUSTRALIAN
EXPORTS TO ITALY AMOUNTED TO $ 133 MIlLLION ) N THAT YEAR,
THESE EXPORTS HAVE INCLUDED GREASY WOOL, SHEEP AND LAMB SKINS,
IRON OREo COAL AND PIG [ RON IN TURN AUSTRALIA HAS BENEFITTED
FROM THE IMPORT OF ITALIAN GOODS, PARTICULARLY MACHINERY,
IN THE AREA OF CONSUMER GOODs. AUSTRALIANS H4AVE BEEN ABLE
TO EXPERIEN4CL THE EXCELLENCE OF ITALIAN DESIGN, UNSURPASSED
THROUGHOUT THE WORLDI
THE AUSTRALIAN GOVERNMENT REMAINS OPTIMISTIC ABOUT
FUTURE TRADE PROSPECTS WITH ITrALY. IAM AWARE, OF COURSE9,
THAT IN MAY THE ITALIAN GOVERNMENT ANNOUNCED A NUMBER OF MEASURES
AIMED AT CORRECTING THE GROSS D[ SEQUIL13RlIUM 11N ' HE ITALIAN
0 ECONOMY. [ HESE MEASURES INCLUDED A PRIOR D) EPOSJTr SYSTEM FOR
IMPORTS WHICH BECAME OPERATIVE ON 7 MlAY AND PRIMARILY AFFECTED
PROCESSED OR MANUFACTURED ITEMS, FORTUNATELY FOR OUR TRADE,
M4ORE THAN TWO-THIRDS OF AUSTRALIAN EXPORTS TO ITALY ARE
EXEMPT FROM THE PRIO. R DEPOSIT SYSTEM, THIS APPLIES PARTICULARLY
TO COAL, RAW WOOL, METAL ORES AND PIG [ RON, AUSTRALIA HAS
MOVED TO ENSURE THAT THERE IS A CONTINUING AND HEALTHY TRADE
BETWEEN THE TWO COUNTRIES, Otq 3 MIAY THE M1INISTER FOR OVERSEAS
TRADE, DR CWkNS, ANNOUNCED THE FORMATION OF THE
ITALO-AuSTRALIAN ' fRADE AD~ viS. ORY COMMITTEE TO PROMOTE THE
DEVELOPMENTr OF COMMERCIAL RELATIONS BE'TWEEN AUSTRALIA AND ITALY,
lHE COMMITTEE WAS FORMED BY A GROUP OF ITALIAN AND AwmTALIAN
BUSINESSMEN ' TO PROMOTE CO-OPERATION AND STREAMLINE
BETWEEN THEC BIJSIIESS COMMUNITIES OF BOJH COUNTRIES, 1.
THERE IS ONE AREA OF POSSIBLE TRADE WHICH I KNOW
IS OF GREAT IMPORTANCE TO ITALY AN) ITALIANS, I REFER TO THE
SALE OF AUSTRALIAN URANIUM SUPPLIES, As MANY OF YOU WOULD
BE AWARE, THE ITALIAN GOVERNMENT INSTRUMENTALITY, ENTE
NAZIONALE IDROCARBURI ( ENI) BEGAN NEGOT] ATIONS IN APRIL 1973
WITH PEKO MINES AND ELCCTROLYTIC ZINC FOR AN INTEREST IN THE
DEVELOPMENT OF THE RANGER URANIUM DEPOSIT. ENI's AGREEMENT
WITH THE RANGER PARTNERS CONTEMPLATED A 10% INTEREST IN THE
0 PROPOSED VENTURE. CLEARLY SUCH AN INTEREST WOULD CREATE
DIFFICULTIES . N VIEN OF THE GOVERNMENTIS OBJECTIVE OF FULL
410 AUSTRALIAN OWNERSHIP IN URANIUM DEVELOPMENT PROJECTS, I
OUTLINED THE GOVERNMENT' S BROAD APPROACH TO THE SUBJECT WHEN
I SPOKE AT THE AUSTRALIA-JAPAN MIJNISTERIAL COMMITEE MEETING
IN TOKYO ON 29 OCTOBER LAST YEAR, I SAID THIS:
" THERE ARE CERTAIN ) NDUSTRIES WHERE WE REGARD
AUSTRALIAN OWNERSHIP AND CONTROL OF PARlICULAR IMPORTANCE,
THESE RELATE ESPECIALLY TO SOURCES OF ENERGY WHERE GROWING
WORLD SHOR7AGES AND OTHER FACTORS MAKE THIS ESSENTIAL, URANIUM
IS ONE OF THESE ENERGY SOURCES AND WE HAVE AN OBJECTIVE OF
FULL AUSTRALIAN OWNERSHIP IN DEVELOPMENT PROJECTS INVOLVING
URANIUM 1 1
." WE RECOGNISE, HOWEVER, THAT AUSTRALIA'S RESOURCES
OF CAPITAL AND TECHNOLOGY ARE RELATIVELY LIMITED, THAT THE SIZE
OF THE PROJECTS TO BE UNDERTAKEN IS OFTEN VERY GREAT AND THAT
WE SHALL NEED TO CALL UPON OVERSEAS EXPERTISE, TECHNOLOGY
AND CAPITAL TO CONTRIBUTE TO THE PROPER DEVELOPMENT OF THESE
VITAL ENERGY RESOURCES, [ THUS WHILE WE SEEK TO REQUIRE EQUITY
IN NEW PROJECTS INVOLVING THESE MINERALS TO BE IN
AUSTRALIAN HANDS WE DO LOOK FOR OVERSEAS PARTICI'ATION IN SOME
WAYS: THROUGH ACCESS TO TECHNOLOGY, LOANS AND ESPECIALLY
m y o lA. d i
I
THE AUSTRALIAN GOVERNMENT HAS NOTED THAT ENI HAS
STATED THAT, IN CARRYING OUT ITS STATUTORY FUNCTION TO PROCURE
ENERGY RESOURCES FOR ITALY, IT SEEKS TO OPERATE IN A MANNER
CONSISIENT WITH THE POLICIES OF HOST NATIONS, IN TURN tHE
AUSTRALIAN GOVERNMENT RECOGNISES THE IMPORTANCE OF URANIUM
S TO A COUN1RY LIKE ITALY WHICH HAS BEEN SO PROFOUNDLY AFFECTED
BY THE ENERGY CRISIS, WHILL WE MUST SAFEGUARD OUR NATIONAL
INTERESTS WE ACKNOWLEDGE THE HISTORY OF AUSTRALIIA AND ITALY AS
GOOD TRADING PARTINERS, IN KEEPING WITH THAT TRADITION, W/ E WILL
S. NSURE THAT ITALY WILL GET A PROPER PROPORTION OF ALL THE
URAdIUiM WE HAVE TO EXPORT.
THE QUESTION OF THE EXPLOITATION C) F URANIUM RAISES
71H1 BROADER ISSUE OF FOREIGN ' INVESTMENT IN A\ USTRALIA,
I KNOW THERE IS A CONTINUING INTEREST AMONG MANY HERE TODAY
IN THE POSSIBILITY' OF '. JOINT. VENTURES BETWEEN ITALIAN
ENTERPRISES Aim) AuSTRALIAN COMPANIES, IT IS THEREFORE
APPROPIATE TO OUTLJ1NE THE BROAD PRINCIPLES 012CH GUIDE OUR
ATTITUDE TO FOREIGN INVESTMENT, YOU WOULD ALL BE AWARE THAT
THE AUSTRALIAN GOVERNMENT NO LONGER HAS A WHOLLY UNCRITICAL
ATTITUIDC TO LNV'STMENT FROM OVERSEAS, WE HAVE ADOP-TED A MORE
SELECTIVEF APPROACH TO SUCH ) NVESTMENTrs, WE INTEND TO ENSURE
THAT FOREIGN CAPITAL INFLOWS ARF ASSOCIAIED WITH PRODUICTIVE
INVESTMENT WHICH ADDS TO / IU& TRALIAN HEAL RESOURCES ANT) BRINGS'
US BENEFIT.-THIS DOES NOT MEAN THAT WE HAVE NO WISH TO SEE
1* URTHE9YV RSEAS CAPITAL FLOW ) IqTO A\ USTRA. WIE THINK THAT
SUCH CAPITAL MU'. iT CONTINUE TO PLAY A SIGNIrICANT ROLE,
IN PARINERSHIP WITH hUSTRALIAN CAPITALI N OUR FUTURE ECONOMIC
GROWTH, FOREIGN INVES-TMENT, HOWEVER, MUST NOT CONFLICT WITH
OUR FIRM POLICY OF PROMOTING AUSTRALIAN CONTROL OF AU-S7RALIAN
RESOURNCES AND INDUJSTRIES, N WANT ' To ACHIE VE THE HIGHEST
POSS'IBLE LEV'EL or AUSTRALIAN OWNFRSHIP IN OUR RESOURCES ANT)
INDUSTRILS, BY' THIS WE MEAN WE WANT TO'ACHIEVEF THE HIGHEST
Au-STR ALIAN EQUITY i1HAT CAN-, B~ E ACHIEVED IN NEGOTIATIONS,
PROJFCTf BY PRO. JECT, THAT ARE. FAIR AND R: EASONABLE TO BOTH PARTIES
AND ARE WITHIN ' Il CAPACITY OF OUR OWN ISA\'( NG TO SUPPORI.
WtW-r.. ~ Ot hAA~ 17 46.4d
FOR TOO LONG AUS5ITALIA WAS SEDUCED BY THE QUICK DEAL
AND FAILED TO RESIST THE TEMPTATION FOR EASY PROFIT AT THE
EXPENSE OF OUR LONGER TERM NATIONAL INTERESTS. UNDER OUR
PREDECESSORS 68% OF OUR FNERGY RESOURCES FELL INTO THE HANDS OF
FOREIGN COMPANIES, THis SHOU[ LD NOT HAVE HAPPENED AND, SO F-AR
AS MY GOVERWILNT IS CONCERNED, WILL NOT HAPPEN AGAIN.
14E HAVE SOUGHT TO EXTEND AND STRENGTHEN OUR FOREIGN TAKEOV/ ERS
LEGISLA-TION, THE SENATE., HOWEVER, HASS ODSTRUCTED-1 MUCH OF OUR
I-NDEAVOUR IN THIS FIELD, NEVERTHELESS I ANNOUNCED IN M~ AY THAT
THE GOVERNMENT PROPOSED THREE BASIC EXTENSfONS TO THE FOREIGN
TAKEOVERS LEGISLA
THE MO-ST SERIOUS OMISSION ) N THE PRLSENT ACT' IS THAT
IT APPLIL-s ONLY * TO THE PURCHASE OF SHARES. IT DOES NOT PREVENT
AN OVERSEAS COMPANY BUYING ALL Or PART OF THE ASSETS OF AN
AUSTRA~ IAN COMPANY AS DISTINCT FROM THE SHAREHOLDINGS. THIS
IS A MAJOR LOOPHOLE. THE EFFECT OF BUYING SHARES OR BUYING
ASSETS IS THE SAME. THE SECOND DEFICIENCY IN THE LEGISLATION
IS THAT. iT DOES NOT INCLUDE COMPULSORY NOTIFICATION REQUIREMENTS
FOR FOREIGN COMPANIES PROPOSING TO MAKE SUCH A TAKEOVER OF
ASSETS, WE WILL INCLUDE SUCH PROV'ISIONS, WF PROPOSE A THIRD
AMENDMENT. THE LEGISLATION DOES NOT EXTEND TO COMPANIES ALREADY
UN4DER FOREIGN CONTROL BUT IN % H) Cfl THERE IS A SIGN[ FICANT
11INOR IVl-AUISTRAIJAN I NTIRLsT. ' tHCPRE HAVE BEEiN A WUmBrER OF
OCCASIONS WHEN THE AuSTRALIAN EQUITY IN A VENTURE HAS BEEN
DIMINISHED BY A $ I( ARE ISGUE OR A SHARE SWAP, WE PROPOSE THAT,
ON CERTAIN C'. RiTF~ I\' A, ANY ATTIMI'T TO DIMINISH A SIGNIFICANT
(\ umTALI/' N N1TEREsTr. EVEN ) F IT IS A NON-CONTROLLING INTERESTi
SHOULD EE MADE EXAMINABLE IN ACCORDANCE WITH THE PROCEDURES
DJEVELOPED DY THE FOREiGNq TAKEOVERS COMMITTEE,
CONTROL OF FOREIGN TAK( EOVERS IS ONE ASPECT OF POLICY
DESIGNED TO MAXIMISE AUSTRALIAN OWNFROHIP AND CONTROL, [ HE
GOVERNMENT IN ) TS ADMINISTRATIVE ARRANGEMENTS HAS ESTABL3SHED
. A BROADER SYSTEM OF SURVEJLLIANCE OF FOREIGN INVESTMENT PROPOSAL
NOT INVOLVING DIRECT ACQUISITION OF AIS" TRALIAN BUSIrNESSES,
IANNOUNCED IN MY POLICY SPEECH THAT WE WOULD rORMALISE THESE
ARRANGEMENTS. WE WOULD CSTABL3SH A BROAD gCNEENiNG PROCFSS
WH) CH WOULD COVER BOTH THE FOREIGN TAK~ EOVERS PROCEDURES, AS
* AMENDED, AND NEW DIRECT FOREIGN ) NVESTMENT ANY NEW FOREIGN
COMPANY PROPOSING TO SET UP iN AUS~ iTRALIA FOR THE FIRST TIMEP
OR ANY FOREIGN COMPANY PROPOSING TO EXTEND ITS INVESTMENT INTO
SNEW AREASt WOULD BE REQUIRED TO APPLY To THE TREASURY AND
THE DE'TA1LS OF THE PROPOSFD INVESTMENT WOULD BE REVIEWED,
THE ISCREENING PROCES( SW WILL-ENSURE THAT ANY PROPOSED
[: ORE IGN INVESTMENT WHICH ) S ALLOWED CONFORM$ WITH. AUSTRALIA'S
NATIONAL INTEREST, THE MATTERS WHICH WILL RECEIVE PARTICULAR
AT'IENTiON ARE EXPORT FRANCII{. SE"' l RESEARCH AND DEVELOPMENT
EXPEND17TURE, LICCENSING OF TECHNOLOGY, PURCHM4,' NG POLICIES AND
TAX AVOIDANCE, OVER A PERIOD OF TIME GUIDELINES IN THESE AREAS
W1ILL BECOME MORE DEF1I4ITE AS OUR FXPERIENCE GROWS, FORLIGN
COMPANIES ALREADY OPLH\ A'rmNG iN AUSjTRALIA WILL BE EXPECTE-D TO
CONFORM WITH THESE GUIDELINES PROGRESSIVELY8 IN THIS WAY WE W! L'
EN4SURE THAT THE FOREIGN ) NVESTMENT THAT HAS ALREADY IBEE14
ALLOWED WILL CONFORM TO THE AuST-RALIAN NATIONAL INTEREST AS
WELL AS ANY NEW FOREIGN INVESTMENT THAT IS ALLOWED,
IN KEEPING W1111 THE INTENTIONS I STATED IN flAYJ
THE GOV'ERNMENT IN JUNE ESTABLISHED A NEW 114TERDEPARIMENTAL R.'
COMMITTEE TO EXAMINE AND PROVIDE ADVICE ON FOREI%'' N INVESTMENT
PROPOSAL& WHICH COME UNDER NCOTICE THROUGH THE EXCHANGE
CONTROL MiECHANISK AND DO NOT INVOLVE THE TAKEOVERS OF AUS TRALI
B U SINIs s cs THE NEW COMM1TL PARALLLLS AND COMPLEMENTS THE
EXISING COMMITTEE ON ' FORE'IGN TAKEOVERS, IT HAS ALSO BEEN
ASKED TO BRING FORWARDl, FOR-THE GOVERNMENT'tS COINSED ñ RATIONt
DJETAILED) PROPOSALS FOR THE SCREEN4ING OF FOREIGN INVESTMENT
ACTIVI1TIES WH) CH DO NOT INVOLVE EXCHANGE CONTA10L APPROVALSFOR
EXAMPLE, INVESTMENT PROP05ALS WH) CH'HOUl. I) BE FINANCED
BY FORLIGN INTERE. STS FROM FUNDS AVAILABLE TO THEM FROM
AUSTRALIAN SOURCES.
THE GOVERNMENT IS NOT LOOKENG AT FOREIGN INVESTMENT
IN A PURELY NFGATI\' E WAY; IT IS NOT SIMPLY IMPOSING RESTRICTIO
As 1 SAID IN A SPEECH IN PERTH ( IN THE SECOND OF MAY: " THE
0QUESTION IS NOT VIHFTHER'VE PERMIT OVERSEAS CAPITAL TO DO LESS4
THE QUESTION IS WHETHER VIE CAN ENSURE THAT AUSTRALIAN DOES
MORE" IT IS WITH llitS IN MIND T14AT WE HAVE SOUGHT TO EXTEND
7H[ ACTIVITIES OF. THE AUSTRAI1AN ltqDUSTRY DEV'ELOPMENT CORPORATI
IT is FOR THIS REASON T14AT WE HAVE PERSEVFRED WITH ESTABLISHIN
TrHE PETROLEUM ANT) MINERALS AUTHORITfY. IT IS THROUGH THESE
AGINC[ US THAT WE CAN MOBILISE AUSTRAlIA ' S HUMAN AND CAPITAL
RESOURCES TO ENABLE US TO DEVELOP OUR OWN RESOURCES AND
I NDUSTRiLS. SUCH GREAT ITALIAN FlNTERPRISES A\ S ENT& AND THE
IS11TUTO PER LA RhCOISTRUZJ) NE INDUSTRIALE ( I1U) HAVE INDICATELD
HOW CORPORATIONS CAN PLAY A VITAL ROLE IN MODERATE SIZED COUNTT~
WITH LIMITED RESOURCE CAPITAL,
V u
HAVING OUTLINED OUR INTENTIONS IN THIS FIELD,
IREPEAT THAT THE GOVERNMENT 5THll. SEES A PLACE FOR FOREIG6N
INVESTMENT IN AUSTRA~ I-A, WE ARE APPt-YING OUR POLIC'Y IN A
PRAGMATIC WAY AND WE ARE EXAMINIIJING ALL CASES ON THEIR
INDIVIDUAL MLR1TS. WE AIM TO MAKE OUR JUDGEMENTS ' FAKING INTO
ACCOUNT THE FULL CIRCUMSTANCES OF EACH NEW PROJFCT, INCLUDfNG
SUCH FACTORS AS THE SIZE AND LOCATION OF THE PROPOSED PROJECT,
' fH1 USE MADE OF ADVANCED TECHNOLOGY, MARKETING ARR~ ANGEMENTS,
ENVIRONMENTAL ASPECTS, LABOUR RELATIONS AND) ABORIGINAL INTERESTS
THIS W1LL NOT DENY PRODUCTIVE INVESTMENT, IN PARTNERSHIP WITH
(\ U& iTRALIANi CAPITAL, WHICIH1 ADDS TO OUR REAL RESOUR~ CES,
[ IHERE IS THEREFORE EVERY 0, P PORTUN ITY FOR FRUITFUL
ITALIAN 11NVESTMENT 1N AUSTRALIA. WHILE RECOGNISIN4G OUR NEED
TO PROTECT OUR NATIONAL INTCRESTSI ITALIAN ) NVESTORS CAN
BENEFIT FROM AUSTRALIA'S RESOURCES AND INDUSTRIAL OPPORTUNI. T! ES,
A\ USTRALIA IN TURN CAN BENEFIT FROI-ITALIAN TECHNOLOGY AND
CAP I AL.