TRANSCRIPT -PRIME MINISTER' S PRESS CONFERENCE AT STATE GUEST
HOUSE 9 FEBRUARY 1984
E AND 0 E PROOF ONLY
PJI.: WELL LADIES AND OENTLEMEN I'll VERY PLEASED TO0 BE ABLE TO
ANNOUNCE A SIGNIEFICANT DEVELOPMENT OUT OF OUR DISCUSSIONS T1HIS
MORNING WHICH HAS. VEIRY GREAT P': ITENTIAL FOR AUSTRALIA A* ND ALSO, I
BEL-IEVE, FOR CHINA. I PUT TO PREMIER ZHAO THE POLICIES OF OUR
GOVERNMENT IN THE ECONOMiC FIEL. D NOT ONLY IN : REGARD TO THE IM ' EDIATE
OBJECTIVES THAT WE' D HAD OF TURtliNG OUR !-. CONqOrY' AIRO. U. ND I-U1 OF ALSO
TRYING To ENSURE THAT THE ECONOMIC DEVEL;) Pf'! E. N1 OF AUSTRALIA COULD
BE RELATED AS EFFECTIVELY AS POSSIBLE To THE RTEGION OF WHICH WE
ARE PART SO TH -AT AS YOU'VE HEARD ME SAY BEFORE WE COULD œ ECoNiE
ENMESHED. ' 1N' . THF_ DEV ELOPmENT OF THE REGION 1N A WAY WHICH WOULD
ENABLE US ' T0 DERIVE BENEFIT FROM THE DYNAMISM' OF THI'. Z REGION AND IN
TURN MAKE A CONTRIBUTION TO IT.
IN THAT CONTEXT I PUT TO PREMIER ZHAO THAT WE, OF COURSE, WISHED TO
BECOME A STIGNIFICANT SUPPLiER OF RAW MATERIALS T'O CHINA'S
DEVELOPING IRON AND STEEL INDUSTRY IRON ORE AND ALSO COAL. 1 PUl
TO TH'E PREMIER THAT IN ADDITION TO BEING SUCH A SUPPLIER OF -RAW
MIATERIALS IT' HAD OCCURRED TO NE THAT WE OUJGHT TO EXAMINE THE
POSSIB~ ILITY OF AUSTRALIA. SUPPLY1NG RAW MATERIALS9 IF YOU LIKE..
AT A MORE DEVELOPED STAGE. THAT IS OF PIG IRON, SLABS AND BILLETS,
% OHCU DB THEN FINALLY PROCESSED INTO THE REOU1RED FINAL
PRODUCT IN CH4INA. I POINTED OUT TO PREMIER ZHAO THE MUTUAL ? ENE_: FI13
INVOLVED IN SUCH AN APPROACH. THE ADVANTAGES FOR AUSTRALIA ARE
OBVIOUS AND DON'T RE?; UIRE ANY ELABORATION Of-, M" PART TO YOU OF THE
VERY SIGNIFICANTf ENEF-1TS FOR AUSTRALIA: A SIGNIFICANT STAGE OF
MANUFACTURE. THE BENEFITS TO CHINA I POINTED OUT WERE THAT IT WOULD
NOT INVOLVE ANY INCREASE IN TOTAL IMPORTS ON THEIR PART, I N OTHER
WORDS THEY ' WOULD NEED rO IMPORT LESS ST~ E'_ WHICH THEY ARE CoN. 1, TElM'pLAT-.
ING HAVING TO. DO. BUT THE INCREASED IMPORT OF THE eBASIC PRO. DUCT
1ROM AUSTRALIA WOULD BE OFFSETr BY LESSER IPORTS OF STEEL ON TH4EIR
P: 1ART. SECONDLY, IT WOULD BE OF BENEFIT IN REDUCING TRANSPO', RT
BOTTLENECK S IN THIS COUNTRY LEAVING TrHE RA-W MATERIAL ARO) UN,. D FRt'N1
THE SOURCE OF THE RAW MATERIAL TO THE ENTERPRISES. THIRDLY, IN%
RESPECT OF TRANSPORT INTO CHINi'A iT WILL MORE EFFI ; IENT TO ? RN
IN THE PRODUCT IN THE FORM, THAT I MENTIONED BECAUSE IT WOULD B E
ABLE TO BE CARRIED IN SHIPS WHICH WOU,; LD BE ABLE TO-HAVE ACCE~ iS VERY
READITLY TO THEIR PLANT, 1S THA~ N THE LARGE BULK -CARRIE RS. AND FINALLY
: i N EC 0ON. MI C TE RMS 1' JL'( F RO) M CH; INA' S POINT O: VIEW THEY UL
GET MORE VALUE PER UNIT OF: INVESTNENT IN-THIS IWAY AND WOULD
:: NVOLVE SAVINGS IN FOPREIGN EXCHANGE.
J'' M VERY PLEASED To SAY THAT P?. E" I1ER ZHA() HAS RESPONDED POSITIVELY
I O THAT PRO-. POSCAL ( AND ' WE HAVE A'GREE! D' TO__ E " Sfr ABLISH A iJINT 1
STUDY TO DEVELOP T iE PROP'MSAL. 1 PUT TO YOU THAT THIS ! S A DEVELOPrINT(
F VERY IMPORTANCE OF GREAT PO) TENTiAL. BE7NEFIT TO CUR
(: oUr! T'Y AN.) AS I SAY ALSO' TO CHINA. AND IT INVOLVES As I PUTYO
HIHNES E REIIERA ROC E,_ B SEEN NiE . LY iN TERiE O
ADDING TO TRADE BETWEEN OUR COUNTRIES LI~ ul ALSO VERY IMPO) RTANTLY
To BE SEEN AS AOE) i Tu THE COrIPLE! IEN1 AR11TY OF OUR ECONONIC
IDEVELOPMENT PROGRAMS.
THAT WAS A mAJUR DEVELOR! IENT TODAY. WE COVERED-ALSO A RANGE 0;:
CTHER MATTERS. AND PERHAPS I COULD SREYXLFSVGFU~ F GH
BJPOILOXDWE OPENED
BY CONTINUING: DISCUSSIONS IN THE INTERNATIONAL AREA. I REFERRED TO
THE FACT THAT BEFORE COMING HERE& AS WELL AS HAVING GONE TO KOREA$
A SUBJECT THAT WE COVERED YESTERDAYi I HAD ALSO BEEN TO HONG K ONG
AND JAPAN.
I. N RESPECT OF HUNG KONG I INDICATED THAT IT WAS. A CLEAR VIEW OF THE
AUSTRALIAN GOVERNMENT THAT THE NEGOTIATIEONS IN RESPECT OF HONG K( ONG
WERE PURELY A MATTER BETWEEN CHINA AND THE UNITED KINGDOM AND WE
BELIEVE THAT THERE WOULD BE A-SATISFACTORY OUTC: OME OF THOSE
DISCUSSIONS. THIS IS A VIEW THAT I PUT IN JONG KONGi AND THAT I'VyE
CONSISTENTLY HELD. AND I MUST SAY THAT THE EXPOSITION THAT WAS
GIVEN BY PREMIER ZHAO TOTALL\, v CONFIRMED THE ANAL. YSIS THAT I HAVE
MADE. I. REFERRED TO JAFAN HERE I SAID THAT JAPAN WAS AN IMPORrANT. TRADING
PARTNER OF AUSTRALIA. THAT IWELC(:? iED THE INCREASING WARMTH IN
RELATIONS. SETW EEWi C. INA AND JAPANi THAT THE THREE COUNTRIES SHARED
PERCEPTIONS IiN'REGARD TO THE SECURITY ISSUES OF WORTH EAST ASIA
AND " OTENTIAL 1HREATS. I REFERRED. TO WHAT I HAD TO SAY ABOUTr THE
JAPANESE DEFENCE POSITION AND TH-ERE WAS AN AGREEMENT BETWEEN
PREMIER ZHAO AND MYSELF ON THAT ISSUE. WE ALSO SPOKE THEN FINALLY
. IN RESPECT OF INTERNATIONAL MATTERS ABOUT 11400-CHINA AND
KANPUCHEA I HAVE SEEN THE TRANSCRIPT OF THE MEETING THAT YOU HAD
AS A RESULT OF OUR ARRANGEMENTS WITH PREMIER ZHAO. THAT STATEMENT
PUTS CLEARLY THE POSITION AND AS YOU WILL SEE THERE IS A VERY LARGE:
MEASURE OF AGREEMENT BETWEEN US ON THAT iSSUE.
THE REST OF THE TIME AFTER-WE DEALT WITH THOSE INTERNATIONAL
MATTERSs OF COURSEi WAS SPENT ON BILATERAL ISSUES. I SPOKEN OF THE:
MOST IMPORTANT DEVELOPiIENT IN THAT AREA. WE CONDUCTED THESE
DISCUSSIONS ON THE 3ASIS THAT THERE ALREADY EXISTS A VERY STRONG
RELATIONSHIP BETWEEN OUR TWO COUNTRIES. YOU WILL KNOW THAT I HAVE
SAID ON A NUMBER OF OCONiSIONS IN AUSTRALIA THAT THERE IS NOD RELATICIN-i
SHIP WHICH IS HORE IMPORTANT TO US THAN OUR RELA~ lONSHIP WITP CHINA.
IT IS STRONGLY BASED IN TRADE AND ECONOMIC TERNSi IN POLITICAL
TERMSi IN TERMS OF CULTURAL EXCHANGES, IN TERMS OF ASS16TANCE
PROVIDED IN TECHNICAL AREAS. IN REGARD TO AGRICULTUREi I CONPIRKED
WITH PREMIER Zs-AO TFHAT PRIMARY INDUSTRY MINISTER KERIN WILL VISIT
CHINA IN NAY AN'. D AT THAT TIME lT IS EXPECTED THAT WE WILL SIGN AN
AGRICULTURAL UMB. RELLA AGP. EE 1ENT BY WHICS~ I MEAN THAT ALREADY THERE
ARE A RANGE OF PROGRAMS BSTWEEN' US IN T: nE FIELD OF RESEARCH AND
BIOLOGY AND OTHER AGRIC'JLYURAL PROGRAMS BETWEEN US. AND IT IS AGREED
THAT IT 16 APPROPRIATE THAT THAT RANGE OF CO-OPERATlVE PROGRAnS
THAT DO EXIST SHOULD BE BROUGHT rOGEYHER NOW UNDER AN OVERALIL
UMBRELLA AGREEMENT WHICH WILL ALSO EMBERACE REFERENCE TO OUR INTENTIONix
TO * HAVE CLOSER RELATIONS WITH THE R~ ELEVANT AUTHORITIES IN CHINA
THROUGH OUR AUSTRALIAN AGRICULTURAL INTERNATIONAL RESEARCH COUNCIL.
WE CONFIRMED THE INTENTION TO ADD TO TKE ALREADY EXTENSIVE CULYURAL.
RELATIONS BETWEEN US-AND ALSO 1WTX FIELD OW SPORTiWO CO;. TAC-THERE
! S AN ARRANGEM1ENT = OR A REGUL AR AU97R; AL: A/ CHl: Th SOCCER CO" 9EZNT
IN THE FIELD OF SCIENCE AND T; E ;: NOLOGY H~ CIEEEMIE ! DCT
THEt--R GRAT[ ITUDE FO.' R T1HE C0--C'? ERAY1( uN THAT S A,_ REA; 1, Y 2BEEI\ ACHIEVE
Ai AGAIN >. iY 1 1W . ISTER FOC. R SJIENC AND. TECHNOLvGYi MR Wii-,-I
BELIEVE BE VISIT'iiNG CHiNA LATER T,-4IS YEr7A R AS I THIN,\ PR( SASLV WL L
BE OUR MI, 1NISTER FO() R E DU C ATIOC N, A XD OU R M1: NI ST ER FO0R A RTS AN
ENIV R ONM E NT JUST ' W; ATf THA RGA V1IITF ZWILL @ E IS NOT S1E; JEC
TO FINIAL ' DETERNINATICON. THF ONLY CERTAIN AS TO TliIIWIG IS THE
0N I' 11V E ei EN T 1, iOE L) M R fKE R.
THE CHINESE PREM1IER ALSO EXPRESSED HIS GRA TITUDE TO THE EFcFICIENCY
WITH WHICH ' WEHAD ' i0VEC AF'E'-:-1S VlSi*' To US LAST APRIL TO
ESTABLISH THE CHINA. ACTION! r'LAN iN THE-. FIELD OF TRAD'S ArD OF THAT
OTH R ACTION PLAN. OUR DEPAR TMENT OF TRA-DE 1HAS PREPARED A VERY
EXTENSIVE ANALYSIS OF POSS1* 2LE AREAS OF EXPANSION WITHIN OUR TOTAL
IrIR,;: oRT PRoGRAM FOR CHINA. A VERY VERY EXTENS1IVE ANALYSIS HAS BEEN
SUBMI TTED TO THE CH: LNESE: AUTHOrRITIE-S A! WrHV NDCTDTHTOC
THEY HAVE AiNALYSED THAT M" ASS 0-7 ' MATE RI1AL AN HAVE: GONE TO0 PARTICULAR
AREAS OF 1NTEREST TO * fHEM, WE WILL THEN UNDERTAKE NORE DETAILED
MAR~ KET ANALYSIS FO! R THEM AND WI L E AN A S I SAY pp= EMI R ZA
HAS EXPRESSED HIS SATISFACTION iN REGARD TO) THAT.
GENERALLY, THAT', S' COVERED THE ISSUES THAT WE TfRA VEiRSED 1N MOKDRE THAN
THREE HOUR* DISCUESIO: JS* TOD'AY~. T WOULD SAY IN SU IiMARY OF THE NEARLY
SIX HOURS' DISCUSSIONS THAT WE'VE HAD OVER THEE TWO [ JAYS THAT THOSE:
DISCUSSIONS KAVE IN A VERY REAL SENSE CONFLRIIHD THE R~ ELATIONSHIP
E_: TWE2EN OUR TWO COUNT-iRIES THE STRENIGTH AND THE WARNTH OF THE
REL. ATIONSHIP AND IN TERMS OF PERSONAL VISI. TS WE HAVIE EXTENjDED: AN
' 10I1VITATION" TO SECRETARY-GENERAL HU HAOE. ANG AND HEHOPE THAT HE-141ILL
BaL ABLE TO V152: T TO AUSTRALIA LATER THIS YEAR.
I REPEAT THAT PARTICULARLY TODAY I THINK THAI POTENTIALLY FOR
AUSTRALIA THE JOINT STUDY THAT 11E WILL U! ND RTAR IN REETOTH
PROPOSAL F: OR THE EXPORT To CHINA OF PRIMARY PROCE: SSED PRODUCT IN
THE FORM OF PIG IRON\, SLABS AND BILLETS FOR THE CHINESE IRON AND
STE: EL IND USTRY IS A MATTER OF POTENTIALLY VERY GREAT ADVANTAGE
TO AUSTRALIA. AND INDEED TO C H INA.
J OU RNAL IST: MR HAWKE HAVE YOU ANY IDEA WHAT WI1LL BE THE SORT OF
QRUANTITIES -INVOLVED AND WHAT Do YOU SEE AS THE IMPLICATIONS FOR
THE' AUSTRALIAN STEEL INDUSTRY?
: WE CAN'T SPECIFY QUANTITY AT T HI S STrA GE. BUT CLEARLY ' W-H-N
YOU' RE TALKING ABOUT A NARKET OF THE SIZE OF CHINA AND A%
COUNTRY WHICH IS G-01NG5 TO HAVE EP. IU 31NSFOR STEEL IT ITS
DEVE= LOPME NT 0 ROG RAN WE C; TE NTI ALLY BE RY SUBS TANT I Al-C'AT! ES.
YYO U SA Y WH A T DO ES I T N EA N F R T AA US T. RAL AN I ROIN A ND STE
INDUSTRY IT It1EAX. S POTENTIALLY A VERY GREAT ANfD I WO) ULD
POINT OUT THAT IT IS WHILE OF I. MPO-RTANCE TO IJ RON
INDUST RY IN AUSTRALI A GEErR A'-LY OF I~ R TA NC EIWOL AL-SO' I
WOULD 1USAG INE POTENTIALLY VE GREAT* S IGN I FICAN'CE Fr-IESTER
AUSTRALIA IN THAT YO-. U W I LL AP PREC I-TE THAT T ERE iS IN
EXISTENCE AT KWI,\ NANA A COMPLEX WHIC H PROIlDUCED ' fHE-: IT E MS TO( W HI H5 I
HAV AANEDE REW HH lS CA PA-' LE OF-_-EINEG U. LI Z NTO0 PR ccIJT t11)
AGAIN WITH REL. ATIVE EA S~~ W R X LTE) Y BU I
ID1USTRY AND I ' WOULD SUGET O . CUR ECOrNO;, AS A W " oL E ECj SE
IT IS A VERY CLEA R E XAPIPLE I NLDSAY Or-STRH IN T. NH AT 1 H; AVE
BEEN TRYING TO E: XPOUND FOR SCO: 1E TIE IN AUTI I AN-ON THSTR
T HAT VE H AVE TO( 1 -BE TI! A CT\, A TiVS IZ TALK'ImG AB! OU( T 11: 1W TNDU'STr1, E S
AND THE D: E: VELOP1E NT OFEXIST! INQG LNL'UE. R1E& L. i AAT W HE N YU T ALK_
ASOUT RESTRUCTURING IT TS ANNES TO: ABOUT ? i ESY U C IUR31G
TERNS OF SIMPL,, Y AS PEOIPLE HAVE TlN: DEKi TO_ OF REST 3U C T UJP IGF
A' LOSS OF JCE'S. N E H AS TO) EPE V ER Y P O'S iTIV E A SCU' IH. S AND T H S 1S
A STRIKING lLLUST ATIOt,, OF THE CONCEPT 1 HAT I HAVE BEEN TRYIN( 3 REALLY
FOR MANY YEARS TO TALK AGOUTt THE SORT O TH1NIG ' fHAT WE ALLUDEDTO
IN THE CRAWFORD REPO) RT. A ND NOW,.-I T' S A MA mfEP 0OF V E RY CONES IDE RABLE
GRATI! F-l CAT IO. N To ME AS P RI r. Z I NIS T ER THA T A S A RES' OLTF
T HE SE DI1S C U SSIONS tE C AN\ S EE PO() SSIB. 5L Y I N C0N C R ETlE t R11s-N oW A
RE f7L EC TION T H ) S E SO) R T OF: P T SIN A STRALIA IT IS A Et-Y
SPECIFIC ILLUSTRATION OF T-: E SORT OF THIN VY 1 ' E T1AEL K7Kl A:. urT
THE ENMESHING OF A'US TIRA L IAiN E C O M I C DEVELOPf'ENTl INTO THE-:
DEVELOPM" 1ENT OF T HIS REGIN
j'OURNALITST: MiR HAW'r* E DID YOU TALK TO ANY AUSTRALIAN' COMli'PA! N Y
AB~ OUT TH.: S BEFORE YOU LE,: T AND IF 14-. ICH ONE?
NO I DIDN' T TALK TO0 A N, Y AUSTRALIAN COMPANIES 2Eri~ c-zEFT
BUT SINCE WE HAVE L EFT AU SO L E 0 F OFF _ 7C HAVEl IN F ACT
BEEN ENGAGED IN SUCH DISCUSElTONS. AD I CAN ASSURE YOUJ THA-(-T TH 1=-Y
WE LCOME VERq Y ST~ THE CoINCEP r THAT I HAVE: NOW TAA EN TO TH c
ST A GE WlT H TH E HI ' EE SE
JOURNALIST:'*-CN A U -ILE)
P. M. WELL THERE' LL BE A SZEOETBRIEF.-ING AND DR C-ARNVAUT MAY SE
AEILE TO Go INTO MORE DETAILS WITH YOU ON THAT.
OURNALIST: WILL THIS BE ! N ADDITION TO0 P'ROPCISALS FOR CHINA TrO Buy-
MIORE IRON ORE..
P. M1.: YESi IT'S A TWO-PRONGED APPROACH. TO AUSTRALIAN ASSOCIA-fTIO'N
WITH THE DEVELOPMENT OF THE CHINESE IRON AND STEEL TUSTRY ANE
INDEED IN THE DICUSSIONS THIS rORNING PREMIER ZRAO INDICATED T; HAT
THEY WOULD WELCOME THE POSSIBILITY OF AUSTRALIAN T\ IVEFTMENT '-ERE IN
CHINA IN THEIR IRON AND STEEL TNDUSTRY. SO) WE REALLV ARELOIN
AT A COMPLEX, IF YOU LIKE7 OF AtU STRALIAN! RLLA* TIO> S3I Ps WITrH THEF
DEVELOPMENT OF. THE CHINESE IRO N AND STEEL_ iNDIJSTQV L ET;-MI. E MH AS I S
THAT WHAT HAS zS'EFEN AG; R'_ ED TO IS A JOINT h1, m GiROUP STUDY C TH!-
ISSUE AND THIERE WILL BE A CONS IDERAi2LE AHOUNT O.' F 7A-; TOO
BE DON! E. THE PO I iT I ' M tAI NG I S THAT ON TS-FACE-T. HERE IS VERY
CONSIDERABLE ADVAtN. TAGE FORl) BOTH AUSETRAI HN 4NN AICT
CONCEPT TH-ROUGH TO FRUITIOr'i.
J JURNAL15IT S TT RE A : LLY A GREE", l EN7T INFP R IN CI PLE OF DfO N Ul1 AND
THE STUDY OR IS IT1'
M O TIKTH ' CURATcE WAY TO PUT IT HIS AS I :, UT 17-
I RAISED THE COINCEPT ' W-ITH PPl'IER ZHAO AN-) PU~ T'E REAS0O"! S WH'-Y
T i POIN1 qT C) F VIEW OF: AUSTRALItA' AN-D F~ THE POIN~ T OF k) TN
CHINA THAF 1 7 R'EPRES=-NTS A PROPOSAL OF Z R ST-Z,' 1T I AT ' UTAL
NT A G AN BE NEFiT1. R~ IE ZHAOf AG REHJ O) RECEITVING! THF RO 1: A
'( H-AT HE COULD SEE AT THE PRO) POSAL SUC! AA> -UEAAA: V', N! DAES
CCA: U SE L4' E SAW I T A5 -JR H W H IMEMCA. T L Y TO VV 7 C
SETTING Ui? 0 F A JOCI 1T1 S GRtOU. 1ON THE RPS' . ADOOUv
iS TH-* AT BECAUS7 i T M AIN1FE= Ec. IY DOE L! AVE A ' ATAGS I0T
AUSTAL _ 7A ANK D CHI NA T AT HAVE REASON TO P~' SI 7,
-OU T
t; CO0ME SS-U CH A S TUD1) Y.
jOURNALISTD ( INAUDIBLE)
THKE A NS WE R S~ E1 N EiE7 R CA N0R 1-DFE -S: RET I v! F-0S E
TIMlE LltiuiT. I SIMPL' 7 SAY THISs 0JH4 ARE READY TC K.' Y.
CHINA IS RICHT1 TriE ', Il[! L" TOF ITS DE~ ~~ TPRC'G7* A: FO ITS I SC j-
A! ND STEELr riEVELOF~ N SO H& C HT EAETH1~ RC Ifr) iL !
LOOc\** NG AT A. LcN\ G PERIOD OF Tit 7. I S TI' NOR71AY JUD'G.--cNt-
THESE TH TN aS HOWEVER TO NiAME SURE TH-AT YIOUF1O ALL THE : dORK TH A' S
NECESSARY. AND 1 HAVE A j 7i TLNG FRO:'! THE Vz * FY PoSITIVEl= DCS; IONS
THAT WE HAD ON THI! S . LSSUE7 TH-AT TH'-E CHINESE 1.4( ULD SHJAR: E THAT V! E
T11HAT IS, THEY tv'OULD WANT START t. OR09K ON THE STUDY GROUP T! LTH
\ JE-AR FUTURE AND THAT THEY W'. OULD APPLY TO IT THE SAIME-: IMPORTANCE, AN':;
PRIORITY AS WE Di,.