IA U STR A L A~
FOR PRESS 23 APRIL 1978
ELECTORATE TALK
A new and significant stage has now been reached in the
development of the relationship between Australia and Japan
following our discussions in Tokyo this week.
Trade issues that involve only Australia and Japan issues
that are regularly discussed by Ministers and officials
were put aside. Instead, Prime Minister Fukuda and I turned
exclusively to the much broader problems of world trade and
the world economy.
Although these topics may seem remote and not of direct
concern to Australians, the fact is what happens to world
trade is of vital importance to our country because, like
Japan, we are most dependent for our continued prosperity
on the sustained growth of world trade.
It is in Australia's interest as a major trading nation that
world trade become freer and expand, because it will have a
direct effect on what we sell, what we produce, and what
we export. This in turn will have a direct impact on our
living standards, and will help create new jobs for Australians.
The aim of my discussions with Mr. Fukuda was to explore
informally our concern about the direction of international
trade and the world economy. I am now aware that there is a
significant degree of common accord between Australia and
Japan about the problems the world faces. There is also a
real understanding about the kind of solutions that we all
want. Our talks in Tokyo this week took place at a critical time.
Heads of Government throughout the world are holding a series
of important meetings throughout the first half of this year.
These will have a lasting influence on how the world faces up
to the difficulties confronting trade, and the question of
raising the living standards of the developing poorer countries.
There is an urgent need to find solutions to widen the basis
for an equitable expansion of world trade. It is also vital
that this is not confined to the major countries developing
countries must also be involved if the world is to
realistically expect success. / 2
Australia and Japan are great trading nations. Japan is the
third largest in the worl. d while our trade with one another
is the seventh largest. We therefore together have a major
contribution to the international discussions designed to make
sure that the right decisions are made at this critical time.
In the multilateral trade negotiations that have been taking place
between the major nations since 1973, discussions have centred
on industrial and manufactured goods.
Australia strongly believes that the scope of the MTN must be
widened. We believe agriculture must be included in the
negotiations if we are to achieve the objective so necessary
to regenerate world trade.
offers have been made by the major industrial nations for a
percent drop in tariffs in manufactured goods, starting
in 1980. This formula sound impressive, but what does it mean?
Average industrial tariffs are about 10 percent. As cuts will
be fazed in over eight years that is about half a percent
per year this is hardly a major catalyst to encourage
world trade. For these reasons Japan understands why we will
continue to press forcefully for agriculture. to be included in
the MTN discussions.
An associated and central problem to all these issues is the
relationship between the developed and developing countries, and
the desire of the developing countries for a secure and stable
income forthe commodities they produce. In Australia, we have
particular experience in testing the merit of stabilisation
schemes our wool marketing arrangements are a fine example
of how t'--he long term interest of both the consumer and producer
are protected.
On this question, an international proposal for a Common Fund to
finance a program of commodity price stabilisation has been
proposed, however progress has stalled on a number of issues,
including the question of direct contribution by governments.
We believe that governments should support such a Fund directly.
There is an obligation on governments for direct involvement
and concern. The Japanese Government appreciates Australia's
concern on this matter. Both countries have now agreed
that our senior officials will consult together to find ways of
bringing the various world views on this key question together.
During discussions with Mr. Fukuda and throughout extensive
discussions between officials we found a great measure of
agreerment on objectives and ideals to try and find solutions
to the world's trade and economic problems.
Japan greatly appreciated that we came not to haggle or barter
over products, but to discuss global economic concerns. Japan
welcomed this opportunity to canvass areas of co-operation in
looking to global solutions.
I believe our talks this week demonstrate our commitment
to continue to act as a responsible member of the international
community. Australia today has international obligations. These will be
met. It is no longer good enough for an Australian Government
to say that other nations are larger, more powerful and that these
questions are best left to them. We have a responsibility to
our own people to act in their interests in every way.
1978 could well be a watershed in events that will dictate the
world economic climate for the remainder of the century.
Australia, as a major trading power, has so much at stake.
We recognize the limits of our influence on world economic
affairs but it is our responsibility and obligation to act in
the interests of all Australians in international forums at
every possible opportunity. If we do not attempt to act with
our utmost vigour, history could well comdemn us.