EMBARGO: 9.30 AM
FOR MEDIA SATURDAY, 28 NOVEMBER 1.981
ADDRESS TO ROTARY INTERNATIONAL
I. am very pleiased to join you this morning a this Pacific
Conference of Rotary : nternat: Lonal and I would like to weolcom~ e
to Australia -all the visitors, com,-ing from some 24 Pacific
nations, who are attending this Conference.
It is only a few weeks since this building was the scene of
the Common-wealth lieadS o-F Government Meeting, at which I
happened to b-e in the chair, and I must say, Mr Chairman,
that in makinc the jour-ney here this mornitng, I experienced
a considerable decroe of relaxation through knowiJng that the
respons iblizY, of chairino this meeting was going to rest on
your shoulcerrs rather th'-an mine. A number of the countries
represent. ed at ithi -m-eeting were a--lso particioants in the
recent CorTonwealth meeting, and I hope that your meeting will
be as productive in terms of its objectives as was that
earlier meetina.
The theme of your Conference, " The Ihiture of the Paci fic"
reminds me of thnat oft-re-Leated remrark that the Mditerranean
is the ocean of the, past, the Atla-ntic is the ocean of the
present, an--th-Pacific is the ocean of the future. It is
not so many yiears since the Pacific ocean seuneda barrier
between countries, but now the position is changing and as
Pierre Trucleau of Canada said recently, " with modern technotocjy,
communications and travel, we feel that th-is Pacific Ocean
joins us raz~ er tin separates us", and howrtoh to speak
of " the vital. sense of -, rowth-and dynamisii w-hich characterises
the countr-ies of the Pacific rim."
There is a large nu-mber of neow, and emerqing, states in the
Pacific hasi~ n, anC" d I belic!% V that with the outstand-ing; cr~ t
rates crcc~ O~:: contiesa ach icvincj -with. incaie-scJ
economic inedprdncand wi the cnincto~ sand
tech-nolocr-I ha\ ve ref:, rrc? to, we: c-an betl. forw,. ard to : losr~
relationships at i7-any . vcsbetweon Paci fic countries. In
term-, Of your ther'-a of the:-future of, Pacific, I like
to take-this orppor12.-ti Ifirst to cosie Australia,'; s trade
with the eeiOPin' cun,). Cs a sub."-ct which has spe cial .12
2
relevance to the South Pacific, then to discuss Australia's
very important trading partnership wtih Japan, and finally
to comment on independence and political stability, especially
in connection with the South Pacific.
Throughout 1981, Australia has taken every opportunity to
highlight the massive proportions of the problem of world
poverty, and to stress the need for a renewed will, especially
among the developed countries, to do something about it.
As Australia's Foreign Minister, Mr Tony Street, said this
week, Australia's close association with the attempts to get
progress on this front has been recognised by the invitation from
the President of the U. N. General Assembly for Australia to
join a contact group of 22 countries which is seeking agreement._
on the launching of global negotiations.
At the recent Commonwealth meeting also, the heads of government
agreed to make every effort to remove obstacles to an early
start to global negotiations. In addition, the Commonwealth
meeting called for a study of the negotiating process
itself, because it is important that nations should not become
locked into inflexible positions simply because of the way
negotiations are conducted.
As we come closer to the end of this year, I am very conscious
of Pierre Trudeau's comment that " history will judge the year
1981 as a watershed in North-South relations, as the time
when the countries of the world either moved foward... or
when they allowed a momentous opportunity to slip through
their fingers." And if current session of the U. N. General
Assembly can make a decisive contribution to getting global
negotiations started, that will be a significant achievement
in terms of the countries of the world " moving forward together
in a concerted attack on the economic disparities which
plague our global community".
In humanitarian tems, there is an irresistible case for
the most determined efforts to come to grips with the problems
of poverty. But enlightened self-interest also provides the
strongest incentive for co-operation between developed and
developing countries in pursuit of economic taike-off.
Australia is a trading nation, so we are acutely conscious that
the economic success of other countries, especially the
developing countries, is an important factor in our own continuing
prosperity. Growing markets in developing countries are vital
for employment and prosperity in developed countries. Some
of the west's entire trade is with developing countries
and the proportion is even higher in the case of the U. S.,
where the figure is 40% and in the'case of Japan where it is
Between 1973 and 1978, while exports from developed to
developing countries increased at an average annual rate of
over 25%, exports from developing to developed countries
increased only at around 10% per annum. / 3
3
There is an obvious message in this, for without economic growth
in the developing countries, the developed countries will not
be able to keep up their export growth rates. It needs
to be realised that the growth rates achieved over the last
decade by the so-called newly industrialising countries,
including South Korea, Taiwan, Hong Kong and Singapore,
have helped to limit the severity of the world recession,
and developed countries must reject any temptation to resort
to protectionist measures which deny developing countries
the fruits of their efforts and enterprise.
In fact, it is in the interests of all that further progress
be made in reducing the trade barriers which already exist,
which currently have the greatest impact on the exports of
the developing countries. The recent Tokyo round of
multilateral trade negotiations offered smaller than average
benefits to the industrial exports of developing countries,
and these negotiations made even less progress on non-tariff
barriers and agricultural protection.
The impact of agricultural protectionism on the developing
countries is dramatically illustrated by a joint UNCTAD/ FAO
study in 1972 which estimates that agricultural trade barriers
were costing the developing countries something like $ 34 billion
per year in 1981 values. Even the partial removal of agricultural
protection in industrial countries which has been estimated
to be three times as high as protection on industrial products,
would be a major benefit to the developing countries.
In the context of Australia's progress towards lower protecticn,
I would refer to our new seven-year program in the key area
of textiles, clothing and footwear, which will reduce assistance
over time, which will further increase access to the Australian
market, and which also includes a preference scheme for
developing countries.
I would also refer to the New South Pacific Regional Trade
and Economic Co-operation Agreement under which Australia will
provide preferential non-reciprocal duty free access for the
major export products of South Pacific Forum island states.
Access to the Australian market, particularly-" for the products;
of developing countries, is already relatively high and it is
growing. Between 1972/ 73 and 1979/ 80, while total Australian
imports increased at an average annual rate of just over 21%,
imports from developing countreis increased at a rate of
almost 30%, and from ASEAN countries at about 38%. Two ASEAN
trade fairs have been held to pro. mote ASEAN products in
Australia, and Australia is proposing a third trade fair for
1983.
While access to the markets of developed countries is vital
to developing countries, effective aid is also indispensable
to developing in a number of situtations, and I am very pleased
that Australia's Bu'gt allocation for official development / 4
4
assistance has increased this year by almost 20% to more than
$ 600 million. Our food aid program. has been substantially
expanded and we have established a research centre to mobilise
Australian expertise to address agricultural problems in
developing countries.
We are contributing to the development of new and renewable
sources of energy in developing countries, we have pledged
million to the second account of the common fund to
assist the development, marketing and production of
commodities. And we have committed $ 7.5 million to the
ASEAN-Australia economic co-operation program for 1981/ 82 to
assist in the development of industrial projects.
Within the South Pacific, Australia is increasing regional
co-operation through assisting with sea transport, seabed
research and education and our allocaidons for bilateral
project aid to South Pacific countries have increased from
$ 11 million in 1976/ 77 to $ 43 million this year. Australia's
recognition of the economic and trading problems of the
island states is shared by other Commonwealth nations,
and it was agreed at the Melbourne meeting that measures to
assist the island states to develop resources with their
exclusive economic zones are vital.
In the lives of these island states, the convention on the law
of the sea assumes a dimension which many developed states
cannot easily comprehend, and is a matter of satisfaction for
Australia that after close involvement in seven years of
negotiations, finalisation of this convention is now expected
in 1982. That will be a desirable result, and it creates
the potential for significant economic advancement in many
Pacific countries.
In the wider context,. the proble. ms of world poverty and
development are not ones which can be solved next week or
next year or even in the next decade. But as I have said
on many occasions, unless something is done about building
up the economies and the trade of developing countries, our
children will curse us for our selfishness and our
shortsicjhte'dnss. Let me add that in any consideration of
trade between nations there are a number of age-old lessons
which must never be overlooked, especially at -times when
trading circumstances become difficult.
I would hope that a number of old lessons have been
re-learned following the early 1970s, when the damage caused
by certain stop-start trading policies tended to strike at
the. very heart of stable trade relationships.
It is true that trade between nations can seldom be wholly
predictable, but reliability, especially at the policy level
and a willingness to establish genuinely two-way trading
. relationships, are vital if the best use if to be made of the
productive capacities of nations and of people. I would add that
while stability and reliability are important in all trading
relationships, they are particularly important for developing
economies. I have been speaking of the problems faced by developing countries
and without question, these problems are massive and daunting.
But we also need a sense of perspective, because the economic
success which a number of countries have achieved in recent years
shows that progress can be made and the vision of success should
be kept in mind when people grapple with issues of economic
development.
Let me turn to the second topic I said I would like to discuss
this morning Australia's trading relationship with Japan.
Japan has been Australia's major trading partner since 1971, and
I am confident the partnership is one whi-ch both countries will
continue to value and respect. While Japan is Australia's largest
export market, Australia is certainly one of Japan's fastest
growing export markets. Japan has better access to Australia's
markets than to those of any other industrialised nation and
Australia also welcomes the growth in new Japanese investment,
which has more than trebled, to nearly $ 700 million, in the
three years to 1980/ 81. Japan is Australia's most important
market for exports of minerals and primary products such as coal,
iron ore, wool, sugar, and dairy products, and is a major market
for our wheat and meat.
While Australia ranks fourth among Japan's trading partners Japan
relies on Australia as a major supplier of many commodities, and
the Australian . share of certain key Japanese raw material imports
is very high. For example, in 1981., Australia has been providing
of Japan's imports of coal, and 10% of its iron ore.
Despite the difference in the size of our twoeconomies, our
trade relationship is one of mutual dependence and I believe it is
greatly strengthened as a result of the acceptance by both
countries of the trading principle which I have already referred
to that a satisfactory trading partnership depends on certainty
and stability of trade in both directions. The complementary
nature of our economies and our gcog.: acphical closeness have been
important factors in sustaining a healthy growth in trade at a
time when difficult economic coneditions have limited growth in
other areas of the world. It will be important in the years ihead
to ensure that through close consultation and co-operation we
understand each other's requirements fully. Only in this way
can we maaitain stability and trust in our trading relati. onship,
and take full advantage of the opportunities that make our region
one of the -bright spots on a relatively gloomy world conomic scene-
/ 6
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The third topic I wanted to comment on this morning, because
the theme of your conference really does give me a great deal
of leeway, is the wider issue of stability especially in
connection with the South Pacific region. It is remarkable to
realise that it is less than 20 years since everySouth Pacific
state was subject to some form of colonial administration, and it is
a matter for great satisfaction that the political life of the
independent states of the South Pacific since independence has
been one of political stability. But not all Pacific islands
are yet self-governing, and the principles of self-determination
and independence for all Pacific island countries principles
which certainly enjoy Australian support still need to be advanced.
Australia well understands the aspirations of colonial peoples
to be free and self-governing and the delegation from the
South Pacific soon to visit France for discussions on this subject
has the full support of the Australian Government.
The new French Government has shown signs of taking a fresh
approach on the question of decolonisation and I hope that the
delegation's visit will result in movement towards independence
for French territories in the region.
In addition to these considerations, the strategic importance
of the South Pacific has been amply demonstrated in earlier
times and Australia has a direct and immediate interest in
continued stability throughout the decolonisation period and
beyond it.
We in Australia are well aware of the responsibilities which fall
upon us in relation to the South Pacific region, and we are
continuing to take initiatives, as we have done in past years,
to discharge those responsibilities. The regional organisations
which have been established in the South Pacific, especially the
South Pacific For-um, have been particularly successful bodies,
and they will continue to play a significant role.
The regional meetings of the Commonwealth Heads of Government.,
which Australia was instrumental in establishing, also provide
a valuable forum for many South Pacific countries. More recently,,
at the Melbourne meeting of the Commonwealth Heads of Government,
Australia offered to fund appropriate facilities in New York to
en1ble Pacific island states not presently represented at the
Unit: d Nations to maintain representation. All of this should help
to bring about a greater understanding of South Pacific concerns
and issues in the international context, " and also to encourage
the participation by South Pacific countries in discussions of
wider international issues.
Thi.: leads me to a consideration of a rather different kind, for in
talking about the issues of development, trade and stabil. ity, I
have concentrated on Governmental approaches to issues of
inteirnational concern. But Governments do not have a monopoly
on these concerns and there are, at least in the free world,
noI -Governmental bodies which have demonstrated a capacity to make
sigcnificant contributions to certain international issues. / 7
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I have no doubt that the voluntary work of individual, people
in Rotary and other service blubs contributes in A real and
important way to international. understLanding and stLability.
I believe that organisations such as Rotary, which have an
international outlook and traditions ofl service have an important
-role to play in the overall pattern of -international discuss--lon.
I hope that this conference will have made its own contribution
just as I hopa that all the visitors will have had a happy
and rewarding stay in Australia.
I think you for inviting me-here this morning and wish YOU Well
in the remainder of your conference. 000---