PRIME MINISTER
E 0 E -PROOF ONLY
TRANSCRIPT OF PRESS CONFERENCE AT JINLING HOTEL, NANJING
22 MAY 1986
PM: Well, ladies and gentlemen there are probably some other
matters that you wish to talk to me about but can we deal
With this area first. You will recall that when General-Secretary
Hu Yaobang was in Australia last year one of the areas of
co-operation which we agreed should be developed was in wool
and textiles and it is a matter of great pleasure and pride
to me that in the period since then already three joint venture
agreements in the area wool textiles have been signed. And
today we have seen the signing of an agreement in regard to
the wool handling store and I certainly want to thank David
Asimus ( International Wool Secretariat Australian Wool Corporation)
for the way in which as Chairman of the Australian Wool
Corporation they picked up and worked assiduously in this
area. I have with me also Vice Minister He who is the Vice
Minister on the Chinese side responsible in this area. So
I would like to hand over to David and Vice Minister to say
a few words about developments in this area and answer any
questions you may have and then once that is done, if there
are any other matters you would like to talk to me about well,
then I am available.
ASIMUS: Well, I think the main comment from our side is that
we are very pleased that this has come to fruition. China
this year is now the second biggest purchaser of Australian
wool something like 63 million kilograms which is about
$ 260m worth so far in this wool selling season. So you can
see the significance of the market here to us and the wool
store if you ' like is going to be used solely for Australian
wool and i t is designed to service the wool textile industry
in this province, improve the efficiency of storage handling
and distribution of wool and as part of that it will also
serve as a base if you like for technical seminars and fit
into the general pattern of co-operation we have had now for
many years with the Ministry of Textile Industry in the area
of raw wool processing and so on. And, of course, the other
aspect that the Corporation is involved with Ministry of Textile
Industry is through its position as a major shareholder in
the International Wool Secreta * riat where we provide a full
range of technical service of design, styling, fashion and
so on. And in addition one of the achievements we are quit e
pleased with and with the co-operation of Minister He we have
now launched the Wool Mark in China. We have switched on for
example, in Shanghai a fortnight ago,' a big neon Wool Mark
2
sign and we are looking forward to help from the Ministry
of Textile [ ndustry here to develop Wool Mark products for
the home consumer market in China as well as of course assisting
them with their exports. I should mention that the project
is jointly funded by the Wool Corporation and the Australian
Government through ADAB. It is store of, I think, 15,000 square
metres capable of holding 20,000 bales of normal density or
80,000 bales of high density dump wool. It will be the most
modern construction available in Australia. As you know the
Corporation is probably the biggest commercial warehouser
in the Southern Hemisphere not just Australia. So we have
some expertise in this area not only in the building and
construction but also in the operation of storage like this.
And it is in that technical area that we will be continuing
to give some assistance for some time after the store is built.
PM: Any questions you wish to address to Mr Asimus?
JOURNALIST: What is the total investment of the AWC in China
now? ASIMUS: Well, our ongoing expenditure both here and through
this the wool store will Cost WE. estimate about $ 2m, the Chinese
side of course are providing the site, filling and labour
and we are providing a prefabricated structure built in
Australia and to be brought here and also construction and
design. Our ongoing program both individually and through
IWS would be in excess of something like $ 2m a year I would
estimate. JOURNALIST: Is there scope for further such facilities in
China or this adequate to handle the current flow from Australia?
ASIMUS: We wouldn't be planning to do this again very quickly.
We would see now we would be looking to develop our relationship
with China, the Ministry for Textile Industry particularly
in the area of the development of the domestic market for
wool products. It is certainly I think an objective of the
Ministry and the Chinese Government to improve the quality
of products available to the coosumer:. We through IWS and
through the Corporation itself can certainly assist with that.
Obviously the Chinese side see an advantage in our co-operation
to the point of view of improving the quality and ability
of their textile exports to compete internationally. So if
you like there is a trade-off there between us. Our interest
and our understanding from the Ministry is that they have
undertaken that there will be an expanding. market for Australian
wool consumed domestically in China. And we of course help
any country that is producing wool products that is prepared
to let us work in their domestic market. And the Wool Mark
of course, we have got over 100 mills licenced here now in
China to use the Wool Mark, full quality control facilities,
ability to enter mills, inspect their products, test them
for quality and so on and the full range of services that
goes to a mill that is licenced. The same as we might be doing
in West Germany of Japan or anywhere else.
PM: Is ther-e anything else in this area? Any questions for
Mr Hu?
JOURNALIST: Mr Hawke, have you yet spoken with Mr Fraser
since he returned to Australia on the South African question
and will you be meeting with him when you return to Australia?
PM: I haven't spoken to him since he has returned and it
is quite likely I will talk with him on my return. I have
spoken once with him already in Australia earlier this year
and I spoke to him by phone in Washington. I think it is very
likely I would speak to him when I get back to Australia.
JOURNALIST: Do you believe we are now facing the likelihood
of a much more severe imposition of sanctions on a co-ordinated
basis against South Africa?
PM: Well. that has to be seen as a possibility Paul. As you
know I have asked for the preparation of a Cabinet submission
for early consideration upon my return and this will be one
of the matters that I will be directing my attention to as
soon as I get back to try and get as clear an appreciation
as I possibly can of how extensive the damage is that has
been done to the eminent persons group process by this devasta ting
action of the South African Government. I have no doubt that
there will be pressures for the sort of action that you are
talking about. But I want to find out particularly is what
the view of the members of the eminent persons group and the
views of the front line states. It may be and I say this obviously
subject to being informed directly, it may be that they still
see some hope in the process which it seemed to me had been
fairly well established by the work of the eminent persons
group. JOURNALIST: Mr Hawke, Australian rugby players may be going
to follow the Australian cricketers to South Africa. Do you
have any message for them?
PM: Well, I have made it clear in the past what my view is
about this area. We will not be adopting the action of
dictatorial states by withdrawing passports. But I simply
would say in the most friendly and constructive way that I
possibly can to Australian rubgy union players that surely
they must understand with the increasing bloodshed that there
is in South Africa and the increasing worldwide condemnation
of the abhorrent apartheid regime that it is not becoming
for Australians to be associated in any way in giving aid
or comfort however direct or indirect. It is running counter
to the increasing welling up of world opinion.
JOURNALIST: Mr Hawke, you seem to be saying that the actt( 7Av
by South Africa may already have destroyed the work that theminent
persons group was hoping......
PM: What one must be certain of is that it has set it back
very considerably. I have tried to make it clear Butch, that
until one gets direct information from all sources and I would
think particularly until I have the opportunity of talking
with Mr Fraser that you can't make a final judqement. I express
I suppose the hope seeing that we were so much responsible
for the initiation of a process which has grown in strength
and attractiveness to a wide range of people that you don't
want to see it destroyed. But I can understand that it must
have been a devastating blow to many who had been prepared
to invest a lot of hope in it. I remind you that when the
initiative was first launched by us in the Bahamas at the
Commonwealth Heads of Government meeting that there was some
scepticism on the part of some of the front line states and
certainly some expressed on behalf of the ANC. But interestingly
as the process developed all the front line states and the
ANC expressed their preparedness to co-operate as they did
with the process. And it has become increasingly recognised
as the only process now in existence which was offering some
hope however slight you may judge it. There was a general
recognition that it was the only hope for a possible avenue
to dialogue and peaceful resolution. It will be a tragedy
if by the action of the Soiith African Government that hope
has been destroyed. Perhaps it hasn't been but I repeat I
can't from here be definite about that until I have the opportunity
of full discussion.
JOURNALIST: Mr Hawke, have you any plans to contact Mrs Thatcher
directly or the other leaders of the small group controlling
this eminent persons committee anid have you any comment on
the attitude Mrs Thatcher has expressed?
PM: My immediate plans will be to become, on my return, as
thoroughly imformed about the developments as I possibly can.
I will make up my mind in the light of that information as
to what is the appropriate course of action for us to take.
JOURNALIST: Mr Hawke, during your discussions with Hu Yaobang
last night was the South African question raised and if so
what was raised to the extent of a joint diplomatic initiative
on, South Africa?
PM: Well let me say this, I am genuinely not able to go to
the detail of the discussions that I had with General-Secretary
Hu Yaobang. I can say that at his request we are going to
have further discussions tonight after the banquet. I can't
go into details but I will say this no, the answer to your
specific question about South Africa.
JOURNALIST: Mr Hawke, in Canberra today Mr Willis apparently
said that regardless of the outcome of the June 5 meeting
the Government would have to review wages policy and Senator
Walsh has also said that all economic indicators point one
thing and that is there must be a cut in real wages. But how
to achieve it is the point of conjecture. Do you agree with
the statements by both those Ministers.
PM: There is certainly not a point of conjecture which I
am going to pursue here in Nanjing. I will certainly be having
discussions not only with these two Ministers but with all
my Cabinet colleagues upon these and associated matters when
I return.
JOURNALIST: I just want to ask you a question about China.
Pretty radical I know. Could you just give us your impression
please of this visit to China, not necessarily in a poltical
sense but what you have seen?
PM: Yes I will. These things firstly, I have been tremendously.
pleased for Australia that the leadership of the Chinese people
attaches such obvious importance to the relationship with
Australia. I think it is true to say that no other country
has been provided with the sort of access and opportunit.
that have been given to me as Prime Minister of Australia
on this trip and as I say on behalf of the people of Australia
I am very appreciative of that. I think it is enormously important
for Australia for the rest of this century and beyond that
we can have such an obviously cordial positive constructive
relationship with this large and growing country. Secondly,
I have had confirmed the conviction that I have expressed
as you know before coming here that what's happening in China
is in my judgemnent the single most important thing that is
happening in the world. There is a renewed commitment to the
processes of reform and of opening up to the rest of world.
A commitment which has obviously been strengthened by the
success of the Sixth Five Year Plan. Now the extension of
those principles into the urban economy raises enormous opportunities
for growth, to raise also enormous challenges. One of the
most attractive features I think of the Chinese leadership
is that while they have the sense of commitment and excitement
about the process of reform they are totally straight forward
in acknowledging the problems that they have confronted and
acknowledging the problems that they will face in the future.
I would say then from that that what has been particularly
gratifying as well on this visit is that I have had the opportunity
of going away from Beijing out to Sichuan and now here and
I have had the opportunity of seeing in action the principles
and the program which have been expounded to me by the leadership.
And you can see the total commitment of the leadership at
all levels in China and the people with whom they are associated
and I can't think of anything more exciting than to be in
a country of 1 billion people undergoing the most radical
transformation that you could possib-ly imagine. The great
flexibility which they are exhibiting in casting aside some
of the rigidities of the past, tapping the initiative of individuals
and groups, giving them a capacity for decision making that
they didn't have in the past to make their own decisions,
to make their own mistakes if you like. Now this is releasing
an enormous immeasurable reservoir of* talent., initiative and
entrepreneurialship. The exciting thing about that is that
no country is better placed in terms of the attitude of the
Chinese leadership to be associated with that exciting development
than Australia. I
ENDS