14,
TELEGRAMM-ADRESSE: AUSTRALISCHE BOTSCHAFT
AUSTEMBA BGOL. iZ
TELEX NR. 885468 5300 BONN-BAD GODESBERG
K6LNER STRASSE 107
Unser Zoichen ADDRESS BY THE PRIME MINISTER AT CHANCELLOR SCHMIDT'S DINNER,
BONN -20 JUNE 1977
It is a great pleasure to visit the Federal Republic of
Germany and have the opportunity to discuss with you matters
of concern to both our nations.
The relationship between our countries is a strong and
substantial one. We share a commitment to democratic values
and institutions. We have economic and strategic interests
in common, and similar approaches to the major problems
of the day.
We should encourage and sustain the growth in. our relationship
and I am delighted that there has been a striking increase
in contacts between our countries ministers and senior officials
in recent years.
Chancellor, the Federal Republic is one of the world's
great economies, and we have watched with great admiration
your government's conduct of economic policy and we
congratulate you on the results. Years before others yju
learnt from experience the central importance of stable money
in the operation and growth of free enterprise economies.
My government's economic policies are also based on a
recognition of this central fact. Since coming to office
nineteen months ago, we have pegged back sharply the growth
cf our budgetary expenditures; made large cuts in personal
and company taxes; reduced sharply the level of our budget
deficit; brought the growth of the money supply under firm
control; taken steps to restore the health of our balance
cf payments; and acted to contain excessive wage increases.
Australia made progress with these policies in 1976.
Growth was resumed after two years of recession; inflation
was about ten percent compared with sixteen percent in 1975;
there was much less industrial unrest; corporate profits
increased by 30 percent; and business investment began to recover.
./ 2
Towards the end of 1976 once having brought all the instruments.
of policy to bear on the fight against inflation we devalued
and at the same time altered the settings on the other
instruments of economic policy so as to maintain our basic
policy objectives.
We are carrying these policies further in 1977 and the rate
of inflation has continued to moderate ( 2.3 percent in March
quarter), while business profits and confidence have renamned
strong. Of course, the economic problems inherited from an earlier
period can not be repaired in a few months. But although
there is no lack of voices urging both the Federal Republic
And Australia to depart from present policies, I hope you
will maintain your economic policies as we propose to
maintain ours. We shall maintain them not merely because reducing
inflation-is a basic objective in its own right, but also
because we accept the funda ' mental premise of the OECD
medium-term strategy, tiat without further* rgrs towards
eradication of inflation the sustained growth needed to provide
eiployment opportunities for all those who want to work will
not materialise. i
Our policies have produced a growing confidence in the
Australian economy and are promoting renewed interests in
large scale investment projects. This year investment projects
of about three billion Australian dollars are scheduled to begin,
and other projects involving even great er amounts are well
advanced.
Overseas management and technology must play an important
part in these projects and large quantities of overseas.
capital will be required. Our policy on overseas ownership
and capital inflow takes full account of these needs, and
our export policy with all our mineral products whether
the * v be energy resources or otherwise is to act as a reliable,
responsible and reasonable supplier.
Chancellor, one of themany minerals with which Australia is
richly endowed is uranium. We hold about twenty percent of
the western world's low cost uncommited reserves with good
prospects of finding more. Uranium development and export
involve nat'ional and international considerations which other
commodities do not involve. Accordingly, before making
decisions on uranium we have awaited the findings of.-the special
uranium envitonment inquiry. The second and final report
of that inquiry has just been published. Final decisions
on it will be made soon after my return to Australia, and a
group of officials is now discussing with potential customers
the details of our safeguards policy.
I have spoken at some length about economic issues because I
believe that the task of defeating the twin evils of inflation
and unemployment is one of the major challenges to the democracies.
But this is not the only challenge another major challenge
to the democracies is that of recognising their interdependence
and'that this interdependence is a broadly based one embracing
a wide variety of strategic and economic matter.
We need to be aware of the impact of our decisions not only
on our own country but on others.
If we do not do this, if for instance, we take action
designed exclusively to gain some short term economic gain
the consequences may, in the long term produce restlts
diametrically opposite to our interests.
I believe all democracies are becoming aware that their national
security and prosperity cannot be safeguarded in one region
alone, but must be looked at on a global basis. We need to
foster this awareness and avoid a narrow regionalism which
certainly -does not advance and may harm the common interest.
While Australia's immediate security interests lie especially
in Asia and the Pacific and yours lie in Europe, these
regions and concerns are linked. What happens
in the Pacific and Asia affects the Federal Republic of Germany.
What happens in Europe in Berlin affects us.
And we all have a major interest in the outcome of the
north/ south dialogue. For if the problems of the third world
are not resolved, the consequences will affect the world far
into the future.
Australians recoqnise the vital role Europe has to play in
ensuring the world's security and prosperity, and the
great the indispensable contribution the Federal Republic
has to make to achieving these goals.
Chancellor, I see this visit, as I am sure you do, as an
opportunity to consolidate our relationship a relationship
which is logical and well-based, in that it is founded
on common interest, shared values, and mutual respect.
Chancellor, I would like to propose a toast to the President
and people of the Federal Republic of Germany.
000ooo000