PRIME MINISTER
CONFEDERATION OF ASIAN CHAMBERS OF COMMERCE AND INDUSTRYMELBOURNE,
12 NOVEMBER 19814
I VERY MUCH APPRECIATE THIS OPPORTUNITY TO MEET WITH YOU
TODAY, TO WELCOME OUR OVERSEAS VISITORS, AND TO ENDORSE
THE THEME OF YOUR CONFERENCE ASIAN PACIFIC
COOPERATION TOWARDS 2000.
WHEN ADDRESSING THE AUSTRALIAN-THAI CHAMBER OF COMMERCE
TWELVE MONTHS AGO, I INDICATED THAT THE AUSTRALIAN
GOVERNMENT'S REGIONAL COMMITMENT IS TO AN INVOLVED ROLE ONE:
THAT WOULD SEE AUSTRALIA BOTH CONTRIBUTING TO AND BENEFITING
FROM THE DYNAMISM OF THE REGIONAL SITUATION.
IT IS WIDELY ACKNOWLEDGED THAT THE CENTRE OF GRAVITY OF
GLOBAL ECONOMIC ACTIVITY IS SHIFTING TOWARDS THE PACIFIC
AND THAT THE WESTERNPACIFIC IS NOW THE WORLD'S MOST-DYNAMIC
AREA OF GROWTH, A QUARTER OF A CENTURY AGO THE SOUTHEAST AND
NORTHEAST ASIAN ECONOMIES ACCOUNTED FOR ONLY 8 PER CENT OF
WORLD ECONOMIC ACTIVITY ONLY ONE SIXTH OF WESTERN EUROPE
AND ONE EIGHTS OF NORTH AMERICA. ON PRESENT TRENDS, BY THE
TURN OF THE CENTURY THE'SOUTHEAST AND NORTHEAST ASIAN ECONOMIES
TOGETHER WILL BE LARGER THAN WESTERN EUROPE AND AS LARGE AS
NORTH AMERICA.
UNDERLYING THIS DYNAMISM IS THE HEIGHTENED INTERDEPENDENCE
OF THE COUNTRIES OF THE REGION. THIS IS NOWHERE MORE MANIFEST,
' THAN IN THE AREA OF TRADE. SOME 40 PER CENT OF THE WIESTERN
PACIFIC REGION'S TRADE IS INTRA-REGIONAL. THE INTRA-REGIONAL
COMPONENT GREW BY AROUND 24i PER CENT A YEAR BETWEEN 1971
AND 1981.
LET THERE BE NO MISTAKE. AUSTRALIA DOES NOT EXPECT TO
REAP THE BENEFITS OF THE REGION'S GROWTH SIMPLY THROUGH
THE GOOD FORTUNE OF BEING LOCATED WITHIN IT.
I BELIEVE WE MUST ALL WORK HARD AT SECURING THE ADVANTAGES
INHERENT IN OUR LOCATION, IN OUR HUMAN AND MATERIAL RESOURCE
BASE, AND IN THE FLEXIBILITY OF OUR ECONOMIC SYSTEMS.
IN SOME RESPECTS THE ODDS ARE STACKED AGAINST US.
THE TRAD . ING INTERESTS OF THE COUNTRIES OF OUR REGION HAVE BEEN
SEVERELY DISADVANTAGED BY THE DOMINANCE OF THE ESTABLISHED
INDUSTRIAL NATIONS IN THE INTERNATIONAL TRADING SYSTEM. THE
COUNTRIES OF THIS REGION HAVE BEEN DISADVANTAGED BY THE
NSPECIAL" TREATMENT OF TRADE IN AGRICULTURAL PROI) UCTS) WHICH
SEES THEM EXCLUDED FROM THE NORMAL INTERNATIONAL TRADING RULESj
BY BARRIERS AGAINST THE LABOUR-INTENSIVE EXPORTS OF THE NEWLY
INDUSTRIALISING COUNTRIES; AND BY TARIFF ESCALATION AGAINST
PROCESSED RAW MATERIALS.
THE REGIONAL TRADE INITIATIVE I SUGGESTED IN BANGKOK
LAST NOVEMBER AIMED To REDRESS THIS SITUATION. IT SOUGHT
TO DO SO:
BY PRESENTING A FORUM FOR AN APPRECIATION OF THE
APPREHENSIONS AND ASPIRATIONS OF REGIONAL COUNTRIES
CONCERNING MULTILATERAL TRADE ISSUESi
BY EXPLORING WAYS OF TAKING FORWARD THE INTERESTS OF
COUNTRIES OF THE REGION'
-AND, TO THJS END, BY CONSIDERING THE SCOPE FOR
DEVELOPING MUTUALLY SUPPORTIVE POSITIONS.
THIS PROCESS OF CONSULTATION BEGAN WITH THE MEETING OF
SENIOR REGIONAL TRADE OFFICIALS AT DENPASAR EARLIER THIS YEAR.,
IT WAS CARRIED FORWARD, IN A VERY POSITIVE WAY, AT THE
SYDNEY MEETING OF SENIOR REGIONAL TRADE OFFICIALS
EARLIER. THIS MONTH.
THE EMPHASIS THROUGHOUT THIS EXERCISE HAS BEEN ON A
STEADY, MEASURED APPROACH TOWARDS INCREASED UNDERSTANDING OF
THE SHARED INTERESTS OF THE COUNTRIES OF THE REGION.
ALREADY THE BENEFITS OF THIS APPROACH HAVE BEEN APPARENT,
NOT ONLY THROUGH COUNTRIES OF THE REGION REGISTERING THEIR
VIEWS EARLIER THIS YEAR AT THE LONDON ECONOMIC SUMMIT, BUT
ALSO THROUGH THE SERIOUSNESS OF PURPOSE WITH WHICH THEY HAVE
RECENTLY BEEN EXAMINING THE IMPLICATIONS OF SUGGESTIONS
THAT THERE BE A NEW MULTILATERAL TRADE NEGOTIATIONS ROUND.
THE REALITY THAT WE ALL HAVE TO FACE IS THAT THE RECENT
' PROLIFERATION OF TRADE BARRIERS.-OF MANAGED TRADE, AND
OF BILATERAL ARRANGEMENTS IS FURTHER UNDERMINING THE
ALREADY ENFEEBLED MOST-FAVOURED NATION PRINCIPLEiHIS
IS THE PRINCIPLE ON WHICH MULTILATERAL COOPERATION
RESTS, AND ON WHICH SMALL AND MEDIUM-SIZED TRADING
NATIONS SUCH AS OUR OWN ARE SO DEPENDENTLATELY
ACCESS TO THE MARKETS OF EUROPE AND NORTH AMERICA
HAS BEEN RESTRICTED OR BECOME MORE UNCERTAIN ] IN A NUMBER
OF SECTORS OF VITAL IMPORTANCE TO COUNTRIES O1: OUR
REGION IN AGRICULTURE, TEXTILES, CLOTHING, STEEL,
MOTOR VEHICLES AND CONSUMER ELECTRONICS*
OUR EFFORTS WITHIN THE REGION MUST BE DIRECTED TOWARDS
ACTION IN THE INTERNATIONAL ARENA WHICH WOULD:.
ENCOURAGE THE PROCESS OF ROLLBACK OF PROTECTIONIST
MEASURESJ. CHECK THE GRPWTH OF DISCRIMINATORY TRADE PRACTICES)
REVITALISE THE GATT WORK PROGRAMME, PROGRESS IN
WHICH HAS BEEN EXTREMELY DISAPPOINTINGJ AND
PROMOTE GREATER ACCEPTANCE OF RATIONAL TRADE
POLICIES AS AN INTEGRAL PART OF SOUND DOMESTIC
ECONOM IC MANAGEMENT.
REGIONAL CO-OPERATION ALSO HAS ANOTHER, CLOSELY RELATED,
ASPECT THE FULL EXPLOITATION AND PROMOTION OF THE TRADE
AND COMMERCIAL OPPORTUNITIES PRESENTED WITHIN THE REGION
ITSELF.
THE AUSTRALIAN GOVERNMENT IS DETERMINED TO REVITALISE OUR
TRADE PERFORMANCE AND TO CONTINUE TO DIVERSIFY THE PRODUCT
COMPOSITION OF OUR EXPORTS.
WE HAVE DEVELOPED SPECIFIC COUNTRY ACTION PLANS AND HAVE
ALLOCATED CONSIDERABLE RESOURCES FOR THEIR IMPLEMENTATION.
THEY INVOLVE THE DEVELOPMENT OF MARKET ENTRY STRAGEGIES
FOR PIAJORITY PRODUCTS, TAKING ACCOUNT OF* INDIVIDUAL
CHARACTERISTICS OF TRADING PRACTICES OF THE TARGETTED
COUNTRY MARKETS.
THE JAPAN MARKET STRATEGY, FOR EXAMPLE, HAS INVOLVED THE
HIRING OF JAPANESE CONSULTANTS TO HELP IDENTIFY MARKET
OPPORTUNITIES. THIS WAS FOLLOWED BY A SEMINAR PROGRAMME
WITH SELECTED AUSTRALIAN COMPANIES IN WHICH THE RESULTS
OF THE RESEARCH WERE PRESENTED. APPROPRIATE MARKET
PENETRATION STRATEGIES FOR SPECIFIC FIRMS ARE NOW BEING
DEVELOPED.
THE GOVERNMENT HAS ALSO IMPLEMtNTED A CHINA ACTION PLAN.-A
STRATEGY BUILT AROUND EXPLICIT RECOGNITION OF THE
PHENOMENAL IMPORTANCE OF CHINA'S EMERGENCE FOR THE COUNTRIES
OF THIS REGION AND GEARED TO SECURING MAXIMUM AUSTRALIAN
INVOLVEMENT WITH THE OPPORTUNITIES PRESENTED BY SUCCESSFUL
DEVELOPMENT OF CHINA'S MODERNISATION PROGRAM.
CHINA'S MODERNISATI ON PROGRAM IS CHANGING THE FACE OF
CONTEMPORARY CHINA. THE CHANGES INVOLVED ARE FUNDAMENTAL
BOTH FOR CHINA ITSELF AND FOR ALL THOSE WHO DEAL WITH HER.
THE AUSTRALIAN GOVERNMENT VERY EARLY-ON RECOGNISED THE MOMENTOUS
SIGNIFICANCE OF THOSE CHANGES, WE MOVED QUICKLY TO
PARTICIPATE IN THE OPPORTUNITY THAT WOULD OPEN UP.
ALREADY THE BENEFITS OF THIS FORESIGHT ARE APPARENT.
ONE OF THE KEY ELEMENTS OF THE CHINA ACTION PLAN HAS BEEN TO
PROVIDE.. A GOVERNMENT ' UMBRELLA' TO SUPPORT, FACILITATE AND
ENHANCE BILATERAL TRADE AND INVESTMENT.
THE SUCCESS OF THE EXTENSIVE PERSONAL CONTACTS DEVELOPED
INSIDE CHINA UNDFR THE CHINA ACTION PLAN HAS BEEN
REFLECTED AT THE COMMERCIAL LEVELo WITH THE CONCLUSION OF
MANY SALES AND COMMERCIAL ARRANGEMENTS, AS WELL AS NUMEROUS
CONTINUING NEGOTIATIONS ACROSS A BROAD SPECTRUM OF
AUSTRALIAN INDUSTRY.
THE GOVERNMENT'S MARKET STRATEGY FOR CHINA HAS RECEIVED
STRONG SUPPORT FROM THE AUSTRALIAN BUSINESS COMMUNITY.
A NEW DIMENSION IN OUR COMMERCIAL RELATIONS WITH CHINA
COMMENCED IN FEBRUARY LAST WHEN THE CHINESE PREMIER ZHAO
ZIYANG AND I AGREED DURING MY VISIT TO CHINA.-TO PROMOTE
' CO-OPERATION BETWEEN THE IRON AND STEEL INDUSTRIES OF
OUR TWO COUNTRIES. THAT AGREEMENT PROVIDED THE
SPRINGBOARD FOR A SPECTACULAR INCREASE IN THE LEVEL OF
ACTIVITY BETWEEN AUSTRALIAN COMPANIES AND CHINA ACTIVITY
WHICH HAS ALREADY TRANSLATED INTO SUBSTANTIAL TRADE.
SHIPMENTS UNDER CONTRACT FOR IRON ORE... MANGANESE, STEEL
PRODUCTS AND COAL TO CHINA THIS YEAR ARE EXPECTED TO TOTAL
$ 177 MILLION, AN INCREASE OF ALMOST 50% OVER 1983.
LOOKING AHEAD WE CAN EXPECT EVEN MORE SOLID RESULTrS.
HAMERSLEY IRON AND A CHINESE CORPORATION ARE CURRENTLY
CONDUCTIN*> A FEASIBILITY STUDY FOR A JOINT VENTURE INTO
A NEW IRON ORE MINE IN THE PILBARA. ALL THE INDICATIONS
ARE THAT THE MINE WILL PROCEED,
RE6ENTLY A VERY WIDE RANGE OF LARGE AND SMALL. OPPORTUNITIES
FOR MUTUALLY ADVANTAGEOUS TRADE AND INVESTMENT WERE IDENTIFIED
BY AN AUSTRALIAN TECHNICAL MISSION. SEVERAL OF THESE
OPPORTUNITIES ARE ALREADY THE SUBJECT OF COMMERCIAL NEGOTIATION.
LADIES AND GENTLEMEN,
IN AUSTRALIA'S CURRENT EXPORT DRIVE THERE IS ROOM [ FOR BOTH THE
CONTINUED PROMOTION OF EXPORTS OF THOSE PRODUCTS IIN WHICH
AUSTRALIA HAS A TRADITIONAL COMPARATIVE ADVANTAGE AND FOR
THE DEVELOPMENT OF NEW PRODUCTS.
LO12,84 uv: 23 4171471
IN4 A NUMBER OF ESTABLISHED AREAS OF AUSTRALIAN EXPORT
ACTIVITY THE GOVERNMENT HAS TAKEN FIRM ACTION TO DEFEND
AND PROMOTE AUSTRALIAN EXPORTERS' INTEREST-WE HAVE,
FOR EXAMPLE, UNDERTAKEN A SUSTAINED AND INTENSE LOBBYING
EFFORT TO SECURE INCREASED AND RELIABLE MARKETS FOR
AUSTRALIAN BEEF. WE HAVE HAD SOME SUCCESS,
IN OUR VITAL COAL TRADEj AND AGAIN FOLLOWING STRONG
AUSTRALIAN REPRESENTATIONS, THE JAPANESE GOVERNMENT HAS
UNDERTAKEN THAT JAPAN'S TRADE IN COAL WILL BE CONDUCTED
ON A STRICTLY COMMERCIAL BASIS. J'APAN HAS ALSO REAFFIRMED
EARLIER ASSURANCES THAT IT HAS NO INTENTION OF DEALING WITH
TRADE PROBLEMS WITH THE UNITED STATES IN THE CONTEXT OF
THE LARGE BILATERAL TRADE IMBALANCE BETWEEN THEM AT'THE
EXPENSE OF AUSTRALIA. To AUSTRALIAN EXPORTERS THESE
ASSURANCES ARE MOST IMPORTANT. ADHERENCE TO THE LETTER
AND SPIRIT OF THESE ASSURANCES WILL CONTRIBUTE SIGNIFICANTLY
TO THE FURTHER DEVELOPMENT OF CLOSE, HARMONIOUS RELATIONS
BETWEEN ' AUSTRALIA AND JAPAN. EQUALLY, FAILURE TO DO SO WOULD
SERIOUSLY JEOPARDISE CONFIDENCE IN THE RELATIONSHIP,
IN TWO OTHER AREAS t4HERE SERIOUS TRADING UNCERTAINTY HAS
ARISEN UNCERTAINTY WHICH FACES OTHER COUNTRIES OF THE:
REGION AS WELL TH+ E AUSTRALIAN GOVERNMENT HAS ALSO
REGISTERED STRONG CONCERNS:
Nov 12,64 09: 24 41714? i .1
8.
-IHAVE STRESSED WITH SECRETARY OF STATE SHULTZ THE
SERIOUS CONCERN WITH WHICH THE UNITED STATES
POSITION ON TRADE IN STEEL PRODUCTS IS VIEWED BY THE
AUSTRALIAN GOVERNMENT, WE HAVE UNDERLINED OUR
FUNDAMENTAL REQUIREMENT FOR SECURE AND PREDICTABLE ACCESS
TO THEIR MARKET, ON TERMS WHICH TAKE ACCOUNT OF OUR
REASONABLE MARKET ASPIRATIONS,
-THE STRONGEST REPRESENTATIONS HAVE ALSO BEEN MADE TO THE
COMMISSION OF THE EUROPEAN COMMUNITIES SEEKING A
RECONSIDERATION OF ITS PROPOSAL TO EXPORT A VAST AMOUNT OF
SURPLUS BUTTER AT A PRICE WHICH WOULD BREACH AND SERIOUSLY
THREATEN THE GATT INTERNATIONAL D) AIR'Y ARRANGEMENT. I BELIEVE
WE HAVE HAD SOME SUCCESS IN THESE REPRESENTATIONS. WE
ARE ENCOURAGED BY THE COMMUNITY'S RESPONSE IN THE LATEST
ROUND OF NEGOTIATIONS AND WOULD HOPE TO SEE CONCRETE PROGRESS
IN THE NEXT FEW DAYS.
WHILE THESE TRADE POLICY INITIATIVES ARE OF GREAT IMPORTANCE,
THERE IS NO MORk IMPORTANT CONTRIBUTION WHICH GOVERNMENT
CAN MAKE TO EXPORT PROMOTION THAN TO ESTABLISH AND MAINTAIN
A STABLE MACRO-ECONOMIC POLICY ENVIRONMENT. IT IS IN PRECISELY
SUCH AN ENVIRONMENT THAT SPECIFIC MEASURES OF SUPPORT,
SHOULD THEY BE CONSIDERED NECESSARY4 ARE MOST LIKELY TO
BE SUCCESSFUL.
My OWN GOVERNMENT HAS BEEN ABLE TO PROVIDE AUSTRALIAN
INDUSTRY WITH STABLE MACRO-ECONOMIC CONDITIONS AND WITH
': THREE FUNDAMETAL PRE-CONDITIONS FOR INCREASED
COMPETITIVENESS: LOWER REAL UNIT LABOUR COSTS; FALLING
INTEREST RATES; AND A REALISTIC EXCHANGE RATE.
AND IF I MAY HAVE ONE SLIGHT DEPARTUREFRO11 WHAT IS ESSENTIALLY
WAKING UP
A NON PARTISAN SPEECH, I WANT TO SAY THIS, THAT/ THIS MONDAY
MORNING AND READING THE PRESS I WAS VERY PLEASED TO SEE
IN THIS MORNING'S EDITION OF THE AUSTRALIAN FINANCIAL REVIEW
THE HEADING OF HAWKE'S BRAND OF LABOR"
THE ENDORSEMENT OF OUR POLICIES BY THE PRESIDENT OF THE BUSINESS
COUNCIL OF AUSTRALIA, MR ROBERT WHITE, AND HIS EXPRESSION OF
HOPE THAT THIS GOVERNMENT WOULD DELIVER MORE OF THE SAME
IN ITS SECOND TERM OF OFFICE. I DON'T WANT TO READ IN DETAIL
FROM THAT RINGING ENDORSEMENT OF THESE POLICIES, I SIMPLY WANT
TO SAY THIS, THAT IN THE POLICY SPEECH THAT WILL BE DELIVERED
TOMMORROW IN SYDNEY, I CAN ASSURE THE AUSTRALIAN BUSINESS
COMMUNITY, THAT THEY WILL BE GETTING MORE OF THE SAME, THERE WILL
NOT BE ANY RASH!'\ HANDING OUT OF A WHOLE RANGE OF PROMISES. SHE:
WILL BE AN ADEERENCE TO STEADY AS YOU GO WHICH HAS ACHIEVED
THE RAPID GROWTH IN OUR AUSTRALIAN ECONOMY.
FOR ITS PART, INDUSTRY MUST STRIVE TO CAPTURE THE
OPPORTUNITIES OF GLOBAL MARKETS AND RESIST THE
TEMPTATION TO SHIELD BEHIND THE PROTECTIVE BARRIERS OF A
SMALL DOMESTIC MARKET-IT WILL HAVE TO iiELY ON ITS
COMPETITIVE STRENGTH AND PRODUCTIVE CAPABILITIES-
THIS HAS BEEN THE UNDERLYING RATIONALE THAT HAS GUIDED
INDUSTRY POLICY IN AUSTRALIA UNDER THE LABOR 6OVERNMENT.
FOR EXAMPLE, WITH OUR MOTOR VEHICLE AND STEEL PLANS,
INDUSTRIES HAVE BEEN GIVEN A PERIOD OF TIME TO MOVE
TOWARDS' A MORE RATIONAL, COMPETITIVE STRUCTUJRE, BETTER
ABLE TO OFFER LONG TERM JOB SECURITY FOR EMPLOYEES AND
TO CONTRIBUTE TOWARDS AUSTRALIA' S ECONOMIC DEVELOPMENTON
TOP OF THIS, HOWEVER, IT NEEDS TO BE FULLY RECOGNISED
THAT IT IS ONLY IF AUSTRALIAN INDUSTRY IS ABLE FULLY
TO CAPTURE THE BENEFITS OF INTERNATIONAL TRADE THAT
AUSTRALIA WILL BE ABLE TO SUSTAIN SATISFACTORY GROWTH
IN OUTPUT, INCOMES AND EMPLOYMENT, THERE ARE OF COURSE MANY
IN THIS AUDIENCE WHO COME FROM COUNTRIES THAT HAVE BEEN
SINGULARLY SUCCESSFUL IN APPLYING THIS LESSON.
THE CRITICAL LINKAGES BETWEEN TRADE POLICY AND GROWTH,
TOGETHER WITH THE STEADY EROSION OF MULTILATERAL
DISCIPLINES IN INTERNATIONAL TRADE LEAD TO AN IMPORTANT
CONCLUSION. TRADE LIBERALISATION POLICIES SHOULD NOW
BE SE N AS MUCH IN THE CONTEXT OF THE EFFECTIVE OPERATION
OF THE DOMESTIC ECONOMY AS IN THE MORE TRADITIONAL CONTEXT
OF THE EXCHANGE OF " CONCESSIONS" BETWEEN TRADING PARTNERS
IN AN INTERNATIONAL NEGOTIATING FRAMEWORK.
WHATEVER STEPS WE TAKE TO REACTIVATE THE PROCESS OF
MULTILATERAL CO-OPERATION AND CLEARLY THI. S WILL BE OF
THE UTMOST IMPORTANCE WE SHOULD NOT LOSE SIGHT OF OUR
OWN ENLIGHTENED SELF-INTEREST IN PURSUING RATIONAL TRADE
POLICIES AS AN INTEGRAL PART OF SOUND DOMESTIC ECONOMIC
MANAGEMENT.
i-I a
AN IMPORTANT COMPLEMENT TO RATEONAL TRADE APPROACHES
WILL BE A DOMESTIC FINANCIAL STRUCTURE WHICH* ALSO
ENCOURAGES ADAPTATION AND FLEX'IBILITY.
IN A REGIONAL CONTEXT, TRADE AND FINANCE ARE TWO CENTRAL
ELEMENTS AND MUTUALLY SUPPORTIVE STRANDS OF ECONOMIC
INTERDEPENDENCETHE AUSTRALIAN LABOR GOVERNMENT t -INITIATIVES TO PROMOTE
MANAGED CHANGE IN KEY SEGMENTS OF THE ECONOMY HAVE A
PARTICULAR FOCUS IN OUR APPROACH TO THE DEREGULATION OF
FINANCIAL MARKETS*
AN EFFICIENT FINANCIAL SECTOR WILL DIRECT RESOURCES AT
LEAST COST TO TH. E MOST PRODUCTIVE AREAS OF THE ECONOMY
AND THUS ASSIST IN RAISING WEALTH, LIVING STANDARDS AND
AGGREGATE DEMAND*
THE DECISION TO FLOAT THE AUSTRALIAN DOLLAR AND REMOVE
MOST EXCHANGE CONTROLS IN DECEMBER 1983 MEANS THAT
MARKET FORCES NOW DETERMINE OUR EXC HANGE RATE WITH ALL
CURRENCIES-STEPS HAVE ALSO BEEN TAKEN TO INCREASE THE
NUMBER OF AUTHORISED DEALERS IN FOREIGN. EXCHANGE AND TO
DEEPEN THE OFFICIAL FORWARD MARKET-FrHE EFFECT OF THESE
MEASURES TAKEN TOGETHER IS THAT TRADE AND FINANCE FLOWS
ARE NO LONGER SUBJECT TO THE DISTORTIONS WHICH MIGHT BE
INTRODUCED BY AN ATTEMPT OF THE AUTHORITIES TO DETERMINE
THIS MOST CRITICAL SET OF PRICES BY FIAT-
12
IN ADDITION, THE TREASURER HAS INVITED APPLICATIONS FROM
BOTH DOMESTIC AND FOREIGN INTERESTS WISHING TO OPERATE
rBANKS IN AUSTRALIA-THIS WILL ENCOURGE THE DEVELOPMENT
OF A MORE INNOVATIVE, EFFICIENT AND COMPETITIVE
FINANCIAL SECTORIT
WAS PRECEDED BY THE LIFTING OF A NUMBER OF
RESTRICTIONS WHICH ARTIFICIALLY HAMPERED-THE ABILITY OF
BANKS TO COMPETE IN THE DOMESTIC-FINANCIAL MARKET.
FOREIGN PARTICIPATION WILL ASSIST IN MA. RSHALLING THE
VERY LARGE AMOUNTS OF CAPITAL AND EXPERTISE NEEDED FOR
THE SPEEDY ESTABLISHMENT OF STRONG AND INNOVATIVE NEW
BANKSOF COURSE AUSTRALIANS HAVE A LEGITIMATE DESIRE TO ATTAIN
THE MAXIMUM AUSTRALIAN EQUITY PARTICIPATION CONSISTENT
WITH THfE NEED TO ENSURE EFFECTIVE COMPETITION-THIS IS A
CENTRAL ASPECT OF OUR APPROACH-BUT WE At-SO RECOGNISE
* THAT AUSTRALIA HAS NOT THE RESOURCES TO GO1 IT ALONEBALANCED
JUDGEMENTS WILL BE NEEDED IN4 THIS RESPECT.
OTHER GUIDING CONSIDERATIONS WILL INCLUDE AUSTRALIA'S
COMMERCIAL AND ECONOMIC RELATIONSHIPS WITH OTHER
COUNTRIES, THE GEOGRAPHICAL SPREAD OF THE APPLICANTS'
OPERATIONS AND THE NATURE Or THOSE OPERATIONS. ACCOUNT
WILL ALSO BE TAKEN OF CONDITIONS WHICH ARE ATTACHED. To
THE OPERATIONS OF AUSTRALIAN BANKS IN THOSE OTHER
COUNTRIES-
OF COURSE WE RECOGNISE THAT OUR POLICIELS TO ENHANCE THE
. COMPETITIVENESS OF BANKS ARE L'IKELY SIGNIFICANTLY
To INCREASE THE COMPETITIVE PRESSURES FACING MERCHANT
BANKSKATIONALISATION OF THE OWNERSHIP STRUCTURE OF MERCHANT
BANKS A STRUCTURE WHICH WAS THE PRODUCT OF A*
REGULATORY ERA WHICH IS NOW PASSiNG OBVIOUSLY-WOULD
STRENGTHEN THE INDUSTRY AND FACILITATE ITS ADAPTATION TO
CHANGEACCORDINGLY THE GOVERNMENT HAS SET ASIDE FOREIGN
INVESTMENT POLICY FOR THE MERCHANT BANKING SECTOR FOR A
PERIOD'OF TWELVE MONTHSFOREIGN
INVESTMENT POLICY IS ALSO BEING REVIEWED IN
RESPECi-OF THE STOCKBaROKINGa INDUSTRYAGAIN
THE INTENTION IS TO ENSURE ADEQUATE CAPACITY TO
COMPETE EFFECTIVELY IN A DEREGULATED FINANCIAL
ENVIRHONMENTTHESE PARTICULAR EXAMPLES OF FOREIGN INVESTMENT POLICY
ARE INDICATIVE OF OUR APPROACH TO FOREIGN INVESTMENT
MORE GENERALLY-
THAT APPROACH SEEKS TO STRIKE A BALANCE BETWEEN, ON THE
ONE HAND, REAPING ACKNOWLEDGED ECONOMIC 13ENEFITS TO
AUSTRALIA OF FOREIGN INVESTMENT WHILE, ON THE OTHER,
MEETING THE LEGITIMATE EXPECTATION OF THE AUSTRALIAN
COMMUNITY THAT THE EXTENT OF FOREIGN OWNERiSHIP AND
CONTROL SHOULD BE KEPT WITHIN ACCEPTABLE BIOUNDSALL
OF THESE MEASURES TO IMPROVE THE COMP ETITIVENESS OF
THE FINANCIAL SECTOR ARE, LIKE THE TRADE POLICIES I
REFERRED TO EARLIER, BORNE OUT OF ENLIGHTENED SELFINTERESTTHEY
WILL ALSO HELP TO PROMOTE THE EFFICIENT FINANCING
OF AUSTRALIA'S TRADE WITH OUR REGIONAL PARTNERS AND, BY
CONTRIBUTING To AUSTRALIA'IS LONG RUN GROWTH
POTENTIAL, HELP TO STRENGTHEN AUSTRALIA'S CONTRIBUTION TO
THE GROWTH OF THE REGIONTHIS
IS THE ULTIMATE GOAL THAT ALL OF US SPHARE.
BELIEVE AJSTRALIA IS NOW BETTER PLACED THAN IT HAS EVER
BEEN TO ENGAGE PRODUCTIVELY IN THE REGION IS GROWTH
EXPERIENCE-THIS CAN~ ONLY BE TO TH4E ADVANTrAGE OF 13OTH
AUSTRALIA AND THE COUNTRIES OF THE REGION-
4* 000*