PM Transcripts

Transcripts from the Prime Ministers of Australia

Hawke, Robert

Period of Service: 11/03/1983 - 20/12/1991
Release Date:
18/03/1983
Release Type:
Press Conference
Transcript ID:
6059
Document:
00006059.pdf 12 Page(s)
Released by:
  • Hawke, Robert James Lee
FOREIGN CORRESPONDENTS' PRESS CONFERENCE, FRIDAY 18 MARCH 1983

*~ PROOF ' CPY ONLY 0. E.
PRIME MIN11STER
TRANSCRIPT: FOREIGN CORRESPONDENTS' PRESS CONFERENCE
DATE: FRIDAY 18 MARCH 1983
GORDON DRAKE ( RADIO LONDON).
Is there any change of truth to the start of the Royal Tour in
viewi of the floods at Alice Springs?
PM. Not as I am informed.
GORDON DRAKE
Can I ask you another question about the Constitution?
There is a Constitutional Conference going on in Adelaide next
month as I understand it. I saw the reconstruction of the events
of 1975 last night on television I just felt what you feel on
how a Governor-General at the end of the day on that fail over,
should feel. What is your feeling about what can happen at the
end of the day? Do you feel there is going to be a Governor-
General in Canberra?
r) PM
At the end of the Adelaide Conference, of course.
GORDON DRAKE
At the end of the Parliament?
PM Yes, I made it quite clear in the campaign that the question of
a Republic which you seem in a rather, if I may sa~ y in a rather
circuitous way, trying to get to that question, the question of
a Republic, is something which I think is a longj way down the
path. I have made it clear that I think Australia will come to
that position, something to which they~ will come gradually, as
a result of discussions conducted within our country. I have
made it clear that I thought that if there were a 1epublic
tomorrow it wouldn' t do one thing to improve the condi tions of
people in this country who need help and that is what. I am
concerned about. 1 have a very acute sense of priorities in
these matters.

NEW ZEALAND PRESS ASSOCIATION
Last year with uhemplo yment rising was pressure mounting to
restrict the flow of New Zealanders coming to Australia, does
your government plan any extra cutbacks on New Zealanders?
PM The question of the relationship between our two
countries in terms of immigration is covered by the firm
agreements and nothing would be done precipitately by my
government to try and change that situation. I think that we
will be having discussions in a number of areas and the question
of the movement yf eo le between our countries would obviously
be 1s oedh ng-j ould want to discuss as much as we
would. MayJ~ ttdg IuR Nswer that as you know I spoke to
Mr Muldoon on Wednesday evening to convey to him the decision of
our Cabinet to endorse the CER agreement and I would believe
that at a reasonably early opportunity we would be having
discussions and I think this matter would be one of the items
that we would talk about, but there is nothing precipitate going
to be done in that area.
NEW ZEALAND PRESS
Is that something that you would like to see happen.
PM I regard our relations with New Zealand as so important that I
wouldn't want to be seeing something happen in any immediate
sense which could damage those relations. I repeat, it's one of
the issues that I think both sides would want to talk about.
Q: Your Government covers the United States bases in Australia and
indeed the ANZUS treaty.
PM
Well we made it quite clear that in respect of the bases that
they will stay*. There is some suggestion that we could be looking
at the stationing of some person or persons in the United States
to give more substance perhaps to the concept of full knowledge
and we will be discussing that matter with our United States friends.
In respect of the alliance I made quite clear during the campaign,
as does our party platform, that our alliance with the United States
is fundamental to our stance in the area of international relations
and the security and defence of this country. I also made it clear
as in fact spokespersons in this country and in the United States
going back to the time of the forging of ANZUS that circumstances
would change through time. Leading administration and defence
spokesmen in the United States have made it clear over the year-s
that it would make sense to look ait the alliance and the treaty
arrangements to make sure that dit. t terms were most appropriate to
the circumstances of the tim~ fld 0the foreseeable future. Our
friends, in the United States understand our position absolutely
and without equivocation and without any criticism on this point.

Indeed I understand that they share our view that at some
appropriate time i,. t uture it would mak11e sense for us to sit
down constructively and see, do the provisions of the treaty as
they stand serve our mutual interests as most effectively as they
can in current circumstances. As I have tried to make clear in
previous answers on this point, this is a characteristic which
will be evident in the approach of my government, not merely in
international relations but in respect of the way in which we
handle the Australia domestic economy. The silliest mistake
that any government can make here or elsewhere is to assume that
the formalised arrangements of the past are necessarily entirely
appropriate to the world of today-We've never lived in a time
of more dramatic change than we are involved in now and we have
shown in the areas of technology, the way we produce gjoods and
services that we have to be prepared to change. Now we have got
to have the same intelligent flexibility in all that we do in
domestic politics and external politics. Having said all that I
reiterate what I said at the beginning, our relationship with the
United States is foundational as far as my government is concerned.
CARL ROBINSON ( NEWSWEEK ? MACAZ INE)
The Labor Party and your governm-) ent are committed to resuming aid
to Vietnam. Do you foresee any problems in implementing this
policy as far as the United States and the ASEAN countries are
coh~ cerned.
PM
No. I have already had talks with one of the Ambassadors from the
ASEAN countries, the Indonesian Ambassador, and I have got the
clear impression from him and of course I am never going to breach
the confidentiality of discussions that I have with Ambassadors and
representatives of other countries but I think I can broadly say
that there is an understanding of our position and I would remind
you as you would know yourself from the reading of the reports in
the last two or three days that arrangements are in train for
discussions between the ASEAN countries and the Government of
Vietnam without the presence at those talks by the Heng-Sarnrin
Government of Kampuchea or the alternative if we can put it that
way which is being sponsored by the ASEAN countries. In other words
the point I am making is there looks as though thereare going to
be direct discussions , between ASEAN, and the Government of Vietnam.
Now I ani simply say i n: ith that development we do seem to see a
position where it may be possible to see the Australian Government
moving towards the sort of things you raised in your question
without there being any difficulties as far as the ASEAN countries
are concerned. I make the point that we will not be unilaterally
moving in that area without full discussions with the ASEAN countries
and similarly with our allies in the United States. So I conclude by
saying that I believe that if we move in that direction then it
will be on a basis whdre we have the understanding of the ASEAN
countries anc~ the United States. I make the concluding point,
which is probably not necessary but it ought to be on the record,
that we as a government see no merit for the ASEAN countries, for
Australia, or for the United Statesl, the situation where the only
relationship which the Government of Vietnam is likely to be
able to have is with the Soviet Union.
PETER O'LOGILEN ( ASSOCIATED PRESS)
The previous government had indicated that it would issue some
banking licences to foreign banks in the future. What's Your
government's position on the entry of foreign banks to Australia?

PM We do not favour it at the present timne.
BORIS BEIISRING ( DEUTSCHE PRESSE AGENTUR)
Could you in general. outline how you envisage Australia's and your
own rolE in world politics?
PM These points are to be made at the outset. I have a clear
understanding of Australia's dimension in the international scene.
We are a small country in terms of population and we will be walking
a line, if you like, between the absurdity of trying to strut the
stage in stature which is not commensurate with the reality of our
size and importance and on the other hand the stupidity of isolationism
which ignores the fact that we are part of the global community.
Within that framework we obviously will be giving an emphasis, a
priority, to our relations with the area of which we are immediately a
part. We wj. ll be trying to strengthen our relations, our economic,
politicalan% ultural relations with the ASEAN countries. we will
certainly be paying particular attention to our relations with Japan
which is far and away our major trading partner and graduall~ y a
k67 country which is assuming more significance in the political, military
relationships with our part of the world. We will be giving more
attention to our relations with the Peoples Republic of China, and
in that respect I am very pleased that the Chinese Premier will be
visiting with us next month and we will be having detailed talks
with him here in Canberra. I have already pointed out the
foundational aspect of the relationship with the United States. Now
those are obviously the areas if you like of primary importance.
One area I have excluded. We obviously have a very real concern with
the whole area of the South Pacific and I will be ensuring that I
and my relevant Ministers develop the embryonic bases of consultation
and co-operation which already exist in the South Pacific Forum and
so on. I ought to of course, also acknowledge the particular relevance
to us of Papua New Guinea because Australia is absolutely unique in
the world in having contiguous to it what in the terms of the past
would be called an ex-colonial area. Now that poses for us
strategic economic, political and social responsibilities, that will
be an important part of our consideration of our international
relationships. I am very pleased to say that I have a close
personal relationship with Michael Somare who was in fact a witness
for me in the case which I conducted, the Local Government officers'
case, in New Guinea in 1966-67. No-w I have given the areas, the priority
and emphasis, thi's does not of course exclude our concern with
the rest of the world. IfI may refer to the Middle East. We as a
government will have a real concern and intention to play whatever
limited role we may be able to in moving towards a peaceful and
honourable resolution of an area of problems which has been tragic
for the people in the area itself and continuously an area of potential
disaster for the rest of the world. Of course we have our relations
with the Commonwealth and we will continue to play a meaningful role
in the affairs of the Commonwealth. We will be attending the
C. H. O. G. M. Conference in New Delhi in Nove7rrbcr of this year. our trading
relationships with Wqestern Europe have been an area of concern
particularly for our rural industries where we have residually
suffered from the implementation of their agricultural policies and
so we will resolutely be continuing discussions with the E. E. C.*
to try and ensure as far as we are able to that Australian interests
are not adversely affected.
In what is necessarily, and I don't apologise for it, a rallier lengthy
answer because you asked an omnibus question, in a sense that has

left out the eastern block countries. Let me make it clear in
respect of our relatiorns with that part of the world that as I said
during the campa ign, ours . will be an approa-ch which is at the same
time constructive and cuatious. 1 havc had enough personal dealings
with the Soviet Union to know that it would be unw., ise to think that
simply to approach the Soviet on the assumption that all is sweet.
reasonableness, is just not realistic. But at thiesame time I have
througjhout my public life and we will in this government, accept
and understand the reality of the position of the Soviet Union. I
don't embrace and never would, the philosophy which is enshrined within
that system but they are in place and the peace of the world, which
is a fundamental concern of my government, cannot be talked about
in any meaningful way in terms of not attempting to have sensible
and constructive relationships with that area. And on that basis we
will so attempt to conduct ourselvesr.. iw as i say I make no apology
for the length of this answer because if you are going to ask a
question like that I have got to try and address myself to every
part of the world.
Q. ( inaudible) What the attitude of the government is to Latin America. Is
your government likely to place more significance on Latin American
refugees-as did the previous Labor government?
PM Let me go to the general part of your question and then the specific.
In respect of our relations generally with Latin America, I would be
asking my Ministers to adopt an approach of trying to improve the
relations we have in that area. Quite clearly there are regimes in
that area, the nature of which we don't welcome. I put my answer
in terms of what I said at the beginning of the previous answer to
that longer question. I don't assume, nor will my government be
assuming, that it is our role or within our capacity to change the
characters of regimes, either in that part of the world or elsewhere.
Wle will try and conduct decent relationships with the governments
of that area because our concern is with the people of the countries
of Latin America. In respect of the latter specific part of your
question refugees I simply say that our immigration program will
have as a component part of it an acceptance of our obligation as
a country to accept refugees and the normal tests and criteria
applying in the area of immigration to refugees, that is that people
have legitimate status as refugees as internationally accepted,
will be applied..
FISHER ( AP DOW-JONES)
The 10% devaluation was blamed on capital output. Do you have
any plans to ( inaudible)
PM We've already done it. We've got back more than was lost, and
that's because the international as well as the domestic community
realised and accepted the correctness, firmness and the decisiveness
of our action and, as I anticipated, what has happened is that the
exchange under the mechanism which I kept in place, of the crawling
peg which always fascinates me as description of an economic
mechanism has operated to bring back devaluation to the order-of
about 71 which is what I anticipated would happen..
NIHlON KEIZAI SiIIMBUN ( MR MIKIO OSAWA)
Will your government make any different capproach to Japan, compared
with the former Fraser government. Japanese business and industry,
for example, some of them are very anxious about whether Your

government would take various strict policies especially in resource
development and export. Hay I ask your view of that?
P1M
Well, the foundational elemoent to the answer to that auestion is that
which I have already given and that is that Japan is our major
trading partner, both in terms of the proportion of our exp orts
w-, hich it takes and in terms of the source of imports. Figures being
relatively I think about 28 and 20%. Now that means that we have
to give a special attention to the relationship with Japan and
therefore the change of government will not mean any difference in
terms of the importance that we attach to the relationship. I think
I may say two or three things however which will characterise my
government as in some measure different from the approach of the
previous government. We will be prepared as a government to give all
assistance that we can to our exporters of our major elements of
export which are clearly in the iron and coal area, to try and ensure
that we get the best possible deal. I say with great respect arid
admiration for the Japanese Government that they have always regarded
as important for government to be involved in the way in which your
Cg economy develops. You may have noticed that during the campaign
I often called upon the example of Japan to indicate the way in
which governments do have a responsibility to try and ensure optimnal
economic and social development. In Japan your government has
involved itself with Industry and the Trade Unions and with academics
in trying to work out what is the best way of using the limited
material resources and the vast potential you have in terms of your
capacity of your labour force, and that has paid off. It has been a
remarkable economic performance in the whole of the post-war period.
Now it is not surprising, given that philosophy, that the government
has applied it in terms of the way in which it conducts trading
relationships. You don't leave your trading relations simply to the
unco-ordinated activities of your enterprises in Japan, and you're
very sinsible not to success you have achieved. I think we wi] ll
be somewhat more assiduous than the previous government in performing
in to Japan. We will also be trying to make Japanese importers
and your government understand it is always sensible in trade
negotiations to have a longer view. At the moment we are in a
depressed local economic context and there will be, i imagine, some
temptation on the part of Japanese importers to seek to take as
much advantage as they can in negotiations in the circumstances.
our government will be gently suggesting it is wise to have a
longer term view in these matters but we will be moving into a
period of economic upturn and that it will be in all our interests
that we have these long term receptions. May I go to one specific
matter which our government would be different from the previous
one, in the way it would be very much to the advantage of Japan, and
that is that while as I said publicly speeches I think representatives
of your country have overstated for trading purposes their percepftions
of industrial relations problems in the country, and that's a fair
enough bargain I guess. Nevertheless there has been a reality of
problems anid difficulties in trade between our two countries
resulting from industrial disputation on the waterfront and in the
maritime industry. Now I just say two things about that. Firstly
that it is certain that as a result of the constructive co-operative
approach which our government is adopting and which is already.
receiving the co--operation of the people's community and trade unions
that there will be a better industrial relations environment in
this country in general and that will be to our mutual benefit.
Most specifically I will be looking, and asking my Ministers to
look at the question of whether in ' the area of the maritimc industry
we may not be able to get a better system of industrial relations

in that area so that trade between our country and other countries
doesn't suffer the degree of disruption as the past resultingj from
that would.
Q: ( inaudible)
PM Yes, there will be a greater degree of consistency between what we
say and do on the world stage and what we in fact do internally.
I don' t think in the past it has been remarkably edifying for
Australia to be seen as the spokesman for lowering of protective
barriers around the world and then not acting in precisel. y that way
when we get back to the nuts and bolts here. There will be a
consistency between what we say and what we do. In respect of the
position in this country, my government really if you like, takes
the view of the Crawford Committee of Inquiry, which is rnot
altogether surprising seeing as I was a member of that Committee of
Inquiry. Now it was a very lengthy inquiry into voluminous reports
but if I can reduce the essence of the Crawford Report down in these
terms it was along these lines: We concluded that through time the
( 6 welfare of this country and the criterion of our relations with
other countries were at one in requiring a gradual reduction in the
levels of protection. Secondly we said that it was politically and
economically unreal to talk about moving towards that goal in periods
when your human and material resources were significantly underemployed
and in which there was no clear indication that further
resources released by lowering protection would simply be added to
the economic scrap heap of current recess situation. Therefore what
we said was that you couldn't in general terms sensibly move towards
lowering protection levels until you had succeeded in reducing levels
of unemployment and getting the economy moving upwards. Now that was
Crawford, i~ f you like, and that is essentially the position of my
government and indeed, in the current circumstances of very high and
unacceptable levels of unemployment, we would not be moving to
further reduce levels of protection but we would have the commitment
to getting our economy moving to reducing the levels of employment
because that is intrinsically what's necessary and it also is what
is required to create the environment within which the desirable
goal of moving towards reduced protection can be achieved.
Given that answer, why then did you agree to sign the CER agreement
which lowers protection?
PM
As there is a special relationship between New Zealand and Australia
and because the processes involved in that were precisely the sorts
of processes which we had talked about in Crawford, and far from it
being inconsistent with the Crawford approach, it was totally
consistent with it, because what we said in Crawford was that if you
are going to have changes then they should come as a result of full
co-operation and consultation with those who may be effected. Now in
the Closer Economic Relations negotiations with Australian industry,
the Australian trade union movement was involved. The ACTU accepted
the heads of agreement. They have been involved in the discussions
and it wa~ s because the conceptual approach of Crawford was reflected
in what had happened there that my government had no difficulty, and
saw virtue at our first Cabinet meeting this week in endorsing the
agreement without change.

8.
Prime minister, will there be a peace treaty with the Aborigines
and what are your views on suggestions that there should be an
Aboriginal sort of state v; ithin Australia?
PM In regard to the latter part of your question, I personall. y reject
the concept of an Aboriginal state and I don't believe that the
Aboriginal people round Australia want that or regjard it as in any
way feasible. I have a total commitment personally, and so does
my government, to acting responsibly and consultatively in a way
which is going to improve the condition, the quality of life of
our Aboriginal people. It still remains, in my judgment a
disgrace to our nation that as we come towards the end of the
twentieth century, our Aboriginal people are still living in
conditions in so many areas which neither do nustice to them, nor
enable us, I believe, to hold our heads up with price while those
conditions exist. The Australian people were asked in the 1960' s
in a referendum to say whether the Australian Parliament, the
Australian Government, should have responsibility in regard to the
Aboriginal people. By an overwhelming majority they answered in
the affirmative. I think it unfortunate that not all States have
responded to, nor have there been sufficient pressures from this
last government in this area. My government will first follow the
processes of constructive consultation with the State governments
to try and ensure that basic standards are reached in this area.
I made it clear during the campaign, and I make it clear now, that
I hope that those processes will produce positive results. If they
do not the powers of the Australian people deliberately go to the
Australian government will be invoked to ensure that the intention
of the Australian people in this regard is achieved.
Q: ( inaudible)
PM I say in regard to the peace treaty that that is somothing I will
be asking Mr Holding, the Minister, to look at and discuss. I have
an open mind about it, it seems to me that it may be one of the
implements if you like of reaching decent decisions in respect
( 9 of the Aboriginal people. I am one who tends to believe that in
these areas not just when you are talking about the aboriginal people
but when you are talking about the conditions of people generally,
that more important than words are actions. But I say that if
nevertheless there is a feeling that the concept of the treaty is
something which will provide a framework for more constructive action
then it is something that should be looked at. But as I said before
I am more interested in action than words.
Could you give us your views on what Australia's relations with
South Africa will be? Whether you support totally the previous
government's position, particularly the decision not to issue visas
to cricketers if they desire?
PM
Well. I really do wish you would get your time perspectives bett * er
in place when you're talking about what has happened in the past.
There is an assumption in your question that Australia's position
in regard to South Africa arose out of the decisions of the Fraser
government. ( inaudible commnent fromn questioner.) Well, there is a

9
tendency if you look at you] r question, to come to that conclusion.
Now of course the realities are that it was the Whitlam Labor
Government between 1972-75 who reshaped Australia's attitude towards
South Africa. Now I can say with great authority that that is the
case because in my capacity as President of the ACTU before the
Whitlam Labor Government came to power I pleaded with the previous
government, McMahon Government, to adopt sensible attitudes in regard
to visits of sporting teams from South Africa. They refused to do so
and we were told that this was ridiculous and that you had to allow
completely open doors in this matter. I was reviled for the lead
which I took in this matter by the previous conservative government.
Of course we were right and the position that I espoused then on
behalf of the total Labor Movement when they were in opposition
came to be the conventional wisdom from the conservatives after
1975, so I go to that point so that the whole time scale in
perspective can be put right. When my government acts now in
respect of South Africa it will not be simply continuing what
Mr Fraser did, we will be picking up what Labor did as far as it
could in industrial opposition in pre-1972 and what we did in
government during 1972-75. And therefore against that background I
applaud the fact that Mr Fraser did come to realise that we were
right and continued our policies, and we will essentially be
continuing what we started and what he embraced. And we will be
doing that as far as Australia is concerned and in the international
forums of the world we will be co-operating with all decent-minded
governments and doing what we can do co-operatively with other
nations to see that the obscenity of apartheid is brought as quickly
and as peaceably to an end as is possible.
PHIL BRADSHAW ( REUTER)
There is a report in the Sydney Morning Herald suggesting you might
be embarrassed by the ALP stance on East Timor. Is that the case?
SPM It may as well be understood now that I will not be commenting in
any detail upon discussions that I have with the representatives of
other countries, discussions which as far as I am concerned are
conducted in confidence, and I will not be going to those details.
But let me say this in broad terms because I talked about this
\ Q issue during the campaign, that I believe that Australia has got to
have constructive and friendly relations with its immediate neighbours.
It is just out of the question that Australia can move into a
position of not having good relations with a country on its immediate
doorstep, a country of vast population, economically significant,
strategically significant. And what we will be doing will be moving
to try and place our relations with Indonesia on such a friendly
and constructive basis. I have made it clear that the events of the
past cannot be obliterated. It's an exercise in futility to say
that an incoming government can command the Australian people to
forget what's happened. You can't do that. What we have got to try
and do is to recognise what has happened and in our negotiations with
Indonesia try and move to a position where we can have relations
which they will respect, and that we will respect, and I simply
want to say that without going into any further detail at this stage,
Bill Hayden and I, I believe, are at one in the views that I have
expressed. We will be undertaking measures to try and bring about
the sort of relationship in the context of our remembrance of the
past that I have talked about. I hope that in the relatively near
future in those terms Mr Hayden will be able to visit Indonesia
and I would also hope that I would be able to do the same thing some
time later this year. I have also, I may say, extended an
invitation to President Suharto to visit this country.

L
Q:
Following the Russian invasion of Afghanistan your predecessor took
quite a hard line out front of everyone else, sort of line on that
issue which included banning visits by Russian cruise ships and
cancelling visas and so on. Do you plan to move away from that
policy and allow in normal cultural exchange groups and so on?
PM For an allegedly strong and determined and inflexible Prime Minister
in government there was an almost incalculable flexibility, in fact,
in what they did, in lack of consistency in what they did. While
they banned athletes they didn't in fact ban their own wool and wool
products from going. But I don't want to create any more problems
for Mr Fraser than he has at the moment. I am the soul of charity
in these matters, but your question demands that I just referred to
the maleability that they had in these matters and indeed there has
since that time been some relaxation in regard to the visits of
Soviet scientists and so on. No, our position will be clear and it
will not be hypocritical. We will be speciferous in our condemnation
of the Soviet invasion of Afghanistan. It cannot be justified on
grounds of strategic considerations, morality, economics or any
other ground. It was an invasion of the sovereign territory of
another country, which is totally unacceptable. In respect of our
relations with the Soviet Union on that matter, my government will
make it quite clear to the Soviet Union what we think of their
intervention and our belief that they should withdraw. We will not
use it for confected political purposes, as did the previous
government, and we will not put ourselves into the hypocritical
position as I say, of baring athletes, some scientists, some
cultural relationships that trade away as busily as you can. Trade
will go on but so will other relations. We will convey our disturbanc
at what has happened in what are sensibl. e diplomatic terms and not
expost ourselves as the previous government inevitably did to the
charges of blatant hypocrisy.
Q: You made it clear earlier that becoming a Republic was not a
priority of the government.
PM Yes. Q: Could you foresee a referendum being introduced on the issue in
this term of Parliament?
PM Certainly not.
Q: Are you cautious about the future Japanese ( inaudible)?
PM I wrote about the question of the likelihood of Japan increasing
its military role several years ago. I thought it was inevitable
as a result of three factors. the attitude of European nations
that Japan has had a relevantly free ride economica. lly because of
the small amount of its resources which it devotes to its defence;
the same attitude in the United States; and what I perceive
would be some growing pressures within Japan for moves in this area
as the economies of other countries developed and put more pressures

upon some of the developed Japanese industries. And that a
combination of these three factors, and I wrote this in 1979, was
likely to produce a situation where there was a gradual increase
in the proportion of the resources of your country which were
devoted to military purposes. I wrote that not in terms of enormous
apprehension but it just seemed to me that it was appropriate that
Australia and countries of this area should bear in mind that on
any rational analysis of events that that was likely to happen.
Certainly what I wrote in 1979 has proved to be accurate. Now I
don't have a feeling that we will have to suddenly get terribly
apprehensive but it seems to me sensible that there should be an
understanding of the move that has taken place and the fact that
it is possible for reasons that I have referred to that it will
increase somewhat. What becomes important then is that Australia
in its discussions with Japan and the United States and other
countries in this region have that element taken into account in
the discussions which we have and the conclusions to which we come,
and certainly that in our discussions with the Japanese Government
we should seek from them complete frankness as to what their
intentions are in this area. I don't think it is necessary to say
more than that. In respect of the second part of the question, the
visits of American ships, nuclear-powered ships and so on, Japan
will handle that in its way, we will handle it in ours, and we will
handle it in a way which won't endanger our relationship with the
United States.
P: I am told you don't think very much of Mrs Thatcher's Economic
Policies, but aren't you in some sort of sense in an economic
situation with a spending deficit you inherited? Now how are you
going to make the economy move?
PM I made it quite clear that while in a campaign I would make
observations about what you may be pleased to call Thatcherism or
Reagonomics or whatever you like, once I had been elected Prime
Minister of this country I take it as quite improper for me to make
comments about the internal affairs of those countries, unless of
course you are in a position of fundamental principle as we are in
regard to apartheid in South Africa. And I am not as Prime Minister
of this country going to intrude my observations in regard to what
is being done or not done either in the United Kingdom or the
United States or. anywhere else. The problems that I have inherited
are the problems of Fraserism not of Thatcherism, and I will deal
with them accordingly.
Q: ( inaudible)
PM
That is for others to determine.
Q: ( Japan)
Are you going to Japan on your way back from the United States?
PM
No I am not. There is no plan to do that. But as I say I am
hoping that Mr Na. sone will visit Australia. I have indeed issued
an invitation to him and as I understand it, in addition to what I
would hope would be his normal desires to visit Australia, he has
vested interests of having a daughter living in Melbourne. So I
hope that a combination of these factors will bring him here.

12.
Your attitudes towards American invesLrient-in this country. Are
you planning on further controls, or to remove control?
PM
No. Our position, Peter, as you know, is that we believe that
Australia needs foreign investment. I've made it quite clear, the
Party makes that quite clear. We will. attempt to ensure that such
investment meets the guidelines that there be a majority of Australian
equity and control. I will be going to the United States, I think,
in June. The details have to be finalised but I have made it clear
before that that is likely to happen, and when I am there I will be
having discuszsions not only with the administration but with
business leaders, and I have total confidence that they will not
only understand but will welcome the clarity of the position of our
government. I think that they will see that as our economy is going
to get moving there is a place for foreign investment, but investment
which, will be, as I repeat,. in circumstances where the control of
our economic destiny is overwhelmingly going to be in the hands of
Australians. But we welcome the assistance in getting this country
going. It will be available from a number of countries including
the United States.
I 1 1.

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