CHECK AGAINST DELIVERY EMBARGOED UNTIL DELIVERY
SPEECH BY THE PRIME MINISTER
FOR PRIME MINISTER LEE KUAN YEW
PARLIAMENTARY LUNCH 15 APRIL 1986
PRIME MINISTER LEE
I AM DELIGHTED TO HAVE YOU WITH US IN AUSTRALIA AGAIN. OVER
THE YEARS YOU HAVE BEEN A FREQUENT VISITOR HERE AND, WHILE I
HOPE THAT YOU HAVE ALWAYS FELT VERY WELCOME, I THINK THAT
YOU WILL HAVE NOTED IN YOUR CONTACTS WITH AUSTRALIANS A
STEADILY INCREASING WARMTH AND INTEREST TOWARDS SINGAPORE
AND TOWARDS EAST AND SOUTH EAST ASIA GENERALLY.
WHEN I REFLECT UPON AUSTRALIAN PERCEPTIONS OF ASIA TODAY I
SEE VAST AND WELCOME DIFFERENCES COMPARED WITH 20 YEARS AGO.
AT THAT TIME MANY AUSTRALIANS VIEWED OUR REGION AS TROUBLED,
EVEN THREATENING. THE INTRINSIC CAPABILITIES OF THE PEOPLES
OF ASIA FOR ENTERPRISE, SOUND ADMINISTRATION, ADAPTATION AND
CO-OPERATION WERE UNDERRATED. BUT THAT IS TRUE NO MORE
BECAUSE AUSTRALIANS HAVE WITNESSED THE FLOURISHING OF ALL
THESE THINGS OVER THE PAST TWO DECADES.
WHEN AUSTRALIANS THINK OF ASIA NOW THEY DO NOT THINK OF A
REGION ENTIRELY PROBLEM FREE NO REGION AND NO NATION,
AUSTRALIA INCLUDED, IS THAT. BUT WE THINK OF ADMIRABLE AND
IN SOME CASES TRULY REMARKABLE ECONOMIC GROWTH PERFORMANCES,
THE EFFECTIVE COMBINING OF TECHNOLOGICAL MODERNISATION WITH
EXISTING CULTURAL TRADITIONS, EXAMPLES OF MAJOR POLICY
TRANSFORMATIONS, AS IN CHINA, AND GREAT ACHIEVEMENTS IN
BUILDING INSTITUTIONS FOR REGIONAL CO-OPERATION, NOTABLY
ASEAN. PRIME MINISTER, YOU HAVE BEEN ONE OF THE FOREMOST LEADERS IN
THIS PROCESS OF FUNDAMENTAL AND BENEFICIAL CHANGE WHICH WE
HAVE WATCHED UNFOLD IN ASIA. YOU HAVE PRESIDED OVER TWO
DECADES OF STRONG ECONOMIC GROWTH. TAKING AS A STARTING
POINT SINGAPORE'S CENTRAL ROLE AS AN ENTREPOT AND A
TRANSPORT AND COMMUNICATIONS HUB IT HAS BECOME AN ECONOMIC
METROPOLIS FOR ALL OF SOUTH EAST ASIA.
THIS PERFORMANCE BY YOUR COUNTRY HAS BEEN PART OF THE WIDER
PHENOMENON OF THE SURGE AHEAD OF THE SO CALLED NEWLY
INDUSTRIALISED COUNTRIES. THIS, IN COMBINATION WITH THE
EARLIER ASCENDANCY OF JAPAN TO THE STATUS OF A MAJOR GLOBAL
AND REGIONAL ECONOMIC FORCE, HAS MADE THE PACIFIC RIM THE
AREA OF GREATEST ECONOMIC DYNAMISM IN THE WORLD IN RECENT
TIMES. THROUGH THE SAME PERIOD AS THESE CHANGES WERE OCCURRING IN
ASIA, AUSTRALIANS WERE STEADILY COMING TO TERMS WITH A NEW
AND DIFFERENT WORLD, A WORLD IN WHICH OUR INTERESTS BECAME
CLOSELY INTERWOVEN WITH THE COUNTRIES OF OUR REGION.
THE SIGNIFICANCE TO AUSTRALIA OF ASIA AND THE PACIFIC HAD
ALREADY BECOME APPARENT IN STRATEGIC AND SECURITY TERMS
BEFORE IT WAS APPARENT IN ECONOMIC TERMS. THE DRAMATIC
ECONOMIC CHANGE FOR US CAME WITH THE IMPACT ON OUR TRADE
PATTERNS OF TWO DEVELOPMENTS. THE FIRST WAS THE RAPID
ECONOMIC DEVELOPMENT OF JAPAN. THE SECOND WAS THE ENTRY OF
BRITAIN INTO THE EUROPEAN COMMUNITY, A GROUPING WHOSE
POLICIES HAVE SUBSEQUENTLY HAD SIGNIFICANT IMPACT ON
TRADITIONAL AUSTRALIAN EXPORTS.
THE FIRST OF THESE CHANGES LED TO JAPAN BECOMING AUSTRALIA'S
MAJOR TRADING PARTNER AND THE SECOND TO THE DISINTEGRATION
OF OUR PREDOMINANTLY AGRICULTURAL EXPORTS TO EUROPE AND,
MORE RECENTLY, TO COMPETITION IN THIRD MARKETS FROM HEAVILY
SUBSIDISED AGRICULTURAL PRODUCTS. THE MAJOR RE-ORIENTATION
IN OUR TRADE PATTERNS, TOGETHER WITH THE SHIFT TO THE
PACIFIC BASIN AS THE MAJOR CENTRE OF TRADE AND ECONOMIC
GROWTH, HAS CHANGED THE FUNDAMENTALS OF AUSTRALIA'S
INTERNATIONAL RELATIONSHIPS.
HOWEVER IT IS NOT ENOUGH SIMPLY TO RECOGNISE THAT THE
INEVITABLE REALITY OF OUR GEOGRAPHY, AND AUTONOMOUS ECONOMIC
FORCES IN THE OUTSIDE WORLD, HAVE WORKED TOGETHER TO MAKE IT
NECESSARY FOR AUSTRALIA TO FOCUS ON ASIA AND THE PACIFIC IN
THE CLOSING DECADES OF THIS CENTURY. THAT CONJURES UP TOO
PASSIVE AND DETERMINISTIC A PICTURE. I WANT TO SAY INSTEAD
THAT WE WILL BE AN ENTHUSIASTIC PLAYER IN THE ECONOMICS OF
THE REGION, EMBRACING THE OPPORTUNITIES WHICH OUR
ADVANTAGEOUS GEOGRAPHICAL POSITION OPENS UP, AND RELISHING
THE PROSPECT OF CLOSER INVOLVEMENT WITH PACIFIC RIM ECONOMIC
GROWTH. TO ACCOMPLISH THIS IS PARTLY A MATTER OF OUR ADOPTING
APPROPRIATE POLICIES IN AUSTRALIA ITSELF. MY GOVERNMENT IS
PLACING CONSIDERABLE EMPHASIS ON THE DEVELOPMENT OF A MORE
DYNAMIC AND INTERNATIONALLY COMPETITIVE INDUSTRIAL BASE.
THIS IS REFLECTED IN OUR APPROACH TO INDUSTRY RESTRUCTURING
AND THE MOVEMENT TO LOWER LEVELS OF PROTECTION. THE
AUSTRALIAN STEEL AND CAR INDUSTRY PLANS, AND THE EXTENSIVE
MOVES MADE TO LOWER INDUSTRIAL PROTECTION TO MINIMUM LEVELS
ON COMPUTERS AND OTHER HIGH TECHNOLOGY ITEMS ITEMS OF KEEN
EXPORT INTEREST TO COUNTRIES SUCH AS SINGAPORE HAVE
TOGETHER SECURED A QUALITATIVE CHANGE IN AUSTRALIA'S IMPORT
REGIME. THESE POLICIES WILL CONTRIBUTE TO OUR ABILITY TO
INCREASE OUR TRADE WITHIN THE REGION AS BOTH AN EFFECIENT
AND COMPETITIVE SUPPLIER OF AUSTRALIAN PRODUCTS AND AS A
MARKET FOR GOODS FROM OUR NEIGHBOURS.
WHILE AUSTRALIA AND SINGAPORE WILL BOTH BENEFIT UNILATERALLY
FROM THE DEVELOPMENT OF OUR REGION WE SHOULD ALSO BE ALIVE
TO OPPORTUNITIES WHERE THE BUSINESS INTERESTS OF BOTH OUR
COUNTRIES COULD GAIN FROM WORKING TOGETHER TO SECURE JOINT
VENTURE PROJECTS OR INCREASED MARKET OPPORTUNITIES. OUR
RESPECTIVE INTEREST IN THE POSSIBILITIES ASSOCIATED WITH A
NEW, DYNAMIC CHINA SEEMS PARTICULARLY SUGGESTIVE OF SUCH
CO-OPERATIVE APPROACHES.
TO NOTE THE VITALITY OF PACIFIC RIM ECONOMIES IS NOT TO DENY
OR IGNORE CURRENT PROBLEMS AND THE NEW CHALLENGES THEY POSE.
THE INTERNATIONAL ECONOMIC ENVIRONMENT IN WHICH THE REGION
MUST OPERATE IS NOT AN EASY ONE. POOR COMMODITY PRICES, FOR
EXAMPLE, ARE TAKING A TOLL ON SOME OF THE MAJOR ASIAN
ECONOMIES AS THEY ARE ON AUSTRALIA. I AM AWARE, PRIME
MINISTER, THAT SINGAPORE'S VIRTUALLY UNSURPASSED RUN OF
ECONOMIC GROWTH HAS SLOWED. YOUR GOVERNMENT HAS EMBARKED
UPON A SUBSTANTIAL RE-EVALUATION OF ITS ECONOMIC POLICIES
WITH A VIEW TO RESTRUCTURING AND RE-ESTABLISHING THE
CONDITIONS FOR GROWTH. SINGAPORE IS NOT ALONE IN FACING
THAT KIND OF PROBLEM BUT YOU ARE DOING IT WITH
CHARACTERISTIC DETERMINATION AND PURPOSEFULNESS.
BUT CLEARLY NO AMOUNT OF SOMETIMES PAINFUL BUT ESSENTIAL
ADJUSTMENT IN THE DOMESTIC ECONOMIC POLICIES OF SINGAPORE,
AUSTRALIA OR ANY. OTHER COUNTRY WILL BE EFFECTIVE IF IT IS
STYMIED BY TRENDS IN THE INTERNATIONAL TRADING ENVIRONMENT
WHICH ARE HOSTILE TO GROWTH. AUSTRALIA AND SINGAPORE SHARE
A COMMON CONCERN ABOUT DEVELOPMENTS WE HAVE OBSERVED IN THE
INTERNATIONAL TRADING SYSTEM OVER RECENT TIMES. TRENDS
TOWARDS PROTECTIONISM AND BILATERALISM ULTIMATELY ARE TO THE
DETRIMENT OF ALL TRADING NATIONS.
DURING MY FORTHCOMING VISIT TO THE UNITED STATES AND EUROPE
I WILL SEEK TO IMPRESS AUSTRALIA'S CONCERNS WITH
PROTECTIONIST TRENDS AND TO HIGHLIGHT THE EXTREME IMPORTANCE
TO ALL COUNTRIES OF ENSURING THE COMMENCEMENT OF AN
EFFECTIVE AND BALANCED ROUND OF MULITLATERAL TRADE
NEGOTIATIONS. AUSTRALIA ATTACHES PARTICULAR IMPORTANCE TO THE ISSUE OF
SUBSIDIES ON AGRICULTURAL EXPORTS. AUSTRALIA'S INTERESTS IN
THE NEW ROUND NEVERTHELESS EXTEND BEYOND THE AGRICULTURAL
QUESTIONS. WE ALSO CONSIDER IT ESSENTIAL THAT PROGRESS BE
MADE ON OTHER MATTERS OF MUTUAL INTEREST TO SINGAPORE AND
AUSTRALIA. THESE INCLUDE VOLUNTARY RESTRAINT ARRANGEMENTS,
LICENSING ARRANGEMENTS, PRODUCT STANDARDS AND TRADE IN
SERVICES. I AM VERY PLEASED WITH THE RESPONSE OF COUNTRIES IN THE
REGION TO MY PROPOSAL THAT WE JOINTLY EXPLORE THE SCOPE FOR
CO-OPERATION IN ORDER TO MAXIMISE OUR REGION'S INFLUENCE ON
THE NEW ROUND OF MULTILATERAL TRADE NEGOTIATIONS. IN
PARTICULAR I WISH TO RECORD MY APPRECIATION OF THE STRONG
SUPPORT THAT SINGAPORE HAS PROVIDED TO THIS PROCESS.
VALUABLE PROGRESS HAS BEEN MADE IN IDENTIFYING AND
DEVELOPING SHARED PERCEPTIONS IN THE PREPARATION FOR THE NEW
MTN ROUND.
I 1 4.
MR PRIME MINISTER
OVER THE YEARS THE RELATIONSHIP BETWEEN AUSTRALIA AND
SINGAPORE HAS DEVELOPED GREAT SUBSTANCE AND DEPTH. NOT JUST
THE STRENGTH BUT THE WARMTH OF THE AUSTRALIA-SINGAPORE
RELATIONSHIP IS REFLECTED IN THE EASE WITH WHICH WE ARE ABLE
TO MOVE IN ONE ANOTHER'S COUNTRIES, THE MANNER IN WHICH-WE
ARE ABLE TO COMMUNICATE, THE WAY IN WHICH WE CAN FEEL AT
HOME WITH ONE ANOTHER AND OUR ABILITY TO SPEAK FRANKLY BUT
WITH FRIENDSHIP AND UNDERSTANDING NOT ONLY WHEN OUR
PERCEPTIONS CONVERGE BUT WHEN THEY SOMETIMES DIVERGE.
PRIME MINISTER, I AM SURE THAT YOU AND MRS LEE HAVE FELT
THIS WARMTH DURING YOUR CURRENT VISIT TO AUSTRALIA, AS YOU
HAVE ON PREVIOUS OCCASIONS AND I KNOW THAT YOU WILL CONTINUE
TO FEEL IT AS YOU TRAVEL AROUND OUR COUNTRY. YOU ARE MOST
WELCOME HERE AMONG US AND I WISH YOU A MOST PRODUCTIVE AND
ENJOYABLE STAY.