TEL: 21. Jun. 93 18: 44 No. 025 P. 05/ 10
PRIME MINISTER
PI6M3 maiSTm'S PRESS COxER= C FOLLOWIG METIuG WTB
SIDOT IN YOumkG-SAmN, SUULA OTKL, S= UL, KOREA,
31/ 6/ 93
PI: Can I first say I am delighted to be making my first
visit to the Republic of Korea. Korea is a long
standinq friend and trading partner of Australia and
an increasingly influential player in regional
affairs. It is therefore valuable to have this
opportunity to zeet President Kim Young-Sam and to
talk with him about our bilateral relationship and
also the wider interests we share in the region.
Could I say that this morning I had an excellent
discussion with President Kim and we covered a lot
of ground and I was struck by the extent of our
agreement on all the issues we discussed. As a
career politician I took pleasure in congratulating
bin on being Korea's first civilian President in
more than thirty years. I also congratulated his on
the support he has received for his bold program of
economic and government reform.
He talked about Worth Korea, including the nuclear
program and he thanked me for Australia's strong
support on that issue, we talked in detail about the
Important relations each country has with the United
States, Japan and China. We agreed on the need to
maintain our close defence alliance with the United
States and to develop, in addition, security
dialogues with regional countries. We were in firm
agreement on APEC, on the need to carry forward its
trade liberalising agenda. We also agreed to hold,
as soon as possible, a meeting of APEC leaders. We
discussed our bilateral relationship between
Australia and Korea and agreed it was in sound
shape. We talked about the need to have our economic
relationship expand and diversify and to take
advantage of Australia's standard of skills in areas
like telecommunlcations, computer software and
environmental technology. We agreed to establish a
joint economic committee of senior officials which
will provide a more integrated apprQach to Our
widening relationship. overall( a'-;. jectie! n -n
I FL. 2
this visit re 3dtaol13ft a stronq worxina
relationship with Presidenr Aim and his Government;
to carry forvard our dialogue on APEC and other
regional iseues and overall to demonstrate
Australia's p-tential to have a wider economic
relationship vith lorea. I thInk we've made a good
start. And nov I as happy to take your questions.
J: Kr Prime Minister, could you tell us regarding the
regional security dialogue, could you expand on it?
Would It be an 3EC-3Le multilateral forum?
PH: go, no we see APEC as having a role in the econmic
dialogue as essentially an economic institution. lut
a wider regional security dialogue can occur outside
Of the formal treaty arrangements between the United
States and Korea, the United States and Japan and
the United states and Australia. That is, instead of
simply along those lines of treaties and formal
discussions we can also have discussions about
security issues within the region.
J: I have two questions. Number one, you were
mentioning about upgrading the current APEC
ministerial meeting to a Summit. How do you propose
to resolve the problem of representation by the socalled
" three Chinas' Chinese Taipei, Hong long
and Mainland? my second question is also on the
regional security dialoque. There are speculations
here that security dialogue will take place within
the existing frameworks of APEC and ASREXM' TANC.
How so you expect to develop those two frameworks
and do you see any competition between those two?
PM: I don't see APEC having a role in regional security
issues. It is one which has been currently built
around that is, any economic discussion
built around the post-ASAN Ministerial Council
Meeting. And that I think is working quite well and
providing a discussion beyond the formal treaty
discussiofs which most of us have been in. On A PEC
itself I think that one of the matters which I'll be
speaking to the Premier of China about will be the
prospect of China's representation at an APEC
leaders' meeting and its views in relation to the
other economies of Taiwan and Kong Kong. And I think
that maybe after that time we'd be able to have a
clearer idea of where China and the other economies
stand. Suffice to say I'd be very surprised it China
wouldn't see an invitation by President Clinton to
covens a leaders' meeting as an opportunity.
J: Prime Minister you talked in your speech today about
asking America to convene a meeting. Are you putting
pressure on then to convene the meeting and when do
you think it might be? I
X1. jUFl. V-. 40044q 1U. U I. V0/ 1U
TEL: 21. Jun. 93' 18: 44 No. 025 P. 07/ 10
3
PIE: No, I think that were APEC countries to be
represented on a leaders basis it would give it more
political authority and therefore the horsepower it
meds to do things. But aqain, that's not A matter
-of urgency from our point of view. I think it ought
to happen but it's not a matter of urgency. Ad
therefore while there has been some interest on the
United states in coneidering holding such a seeting
Svhether it is this year or next year or the year
after I think is Immaterial to the holding of
It. So, ye're not putting any pressure on the United
States to hold a meeting. Ta is a view coming from
within the adinistration about the usefulness of
AP
J: Australia enjoys more than two billion dollars trade
surplus with Korea, but actually Australia levies
more than thirty percent on imported Korean
textiles, fabrics and cars. Korea only levies at ton
percent of custom tariff and so that means
( inaudible).. another barrier for that. And also
Australia is one of the major countries to
( inaudible)... for the anti-dumping to the Korean
oommodities. So what do you think about that, and
the second thines is there is a little
disappointment from the Korean side because this
time there are no ministers or high ranking
officials from the trade side it seess like
Australia is not putting their efforts to
diminishing trade surpluses with Korea.
P: I think there a just a couple of points to make
about that. The first is that Korea has a, largely,
balance of trade with the United States but ye have
a large imbalance of trade with the United States.
Our current account deficit is of the order of about
sixteen billion and we have a trade deficit with the
United States of the order of about seven billion.
So, what may be your trade surplus, from time to
time, with the nited Statesis our trade deficit.
And I think seeing that in the broad picture is the
vay to see it. Secondly, and I think the reason why
we say have a surplus with Korea at the moment
and I emphasize at the moment is that your
economy has been growing quite strongly and
therefore you have been requiring raw materials
etcetera from Australia. We. on the other hand, have
been growing over the last couple of years quite
slowly. And therefore the demand for Korean exports
has been slower and therefore, in a sort of
temporary way, that trade gap has opened. As we
speed up I think you'll see a more even and more
natural balance in the trade.
PH: On the other questions of access, Australia will
have a general manufacturing tariff of 5 per cent by
1997 and 15 per cent for motor cars. No quotas.
Complete transparency, no quota..', a provides " th.
TEL: 4
opportunity for any country that's competitive and
that includes Korea to seek to sell its products
within Australia. So, we are preaching the lowering
of trade barriers and we are doing what we preach.
Finally, anti-dumping measures affect about i per
cent only of Korean exports to Australia. I think
it'es just a handful of cases. fe don't use antidumping
measures as a protective device. And the
other thing is, I think, Korea Is currently
exaaining the adoption of Australian. anti-dumping
techniques and policies for its own economy. So,
that tends to suggest to me that the Government of
Korea understands this point vell if others don't.
J: Inaudible.
PH: In answer to the last part of the question, that Is
the first I've heard of that notion and certainly
that is the notion that one should have a caravan of
business people with one to denote one's seriousness
about issues. This is not the view of the
Government of Korea, I am sure. The President
didn't raise the question of anti-dumping today. He
alluded to the trade surplus but in the context of
Australia supplying Korea's inputs for its worldwide
trade and therefore, its trade balances with other
countries to whom it supplies goods offsets the
imbalance Australia enjoys with Korea for its raw
materials. I think the President also understood my
point, that is that with tariffs coming down to very
low levels by the late 1990s, a total absence of
quotas and total transparency in protection that
there are opportunities to grow and we can see that
in the very rapid 20 per cent growth of exports in
the last year. Exports from Korea to Australia.
So, I think the Government of Korea sees this in a
proper economic and trading context.
J: Priame Niister, have you perceived yet any Korean
interest in our land debate on Aboriginal land title
and if there is any interest or knowledge what's
been the reaction to some of the more vigorous
opposition to the land title movement?
P1: No, there was no reference to it whatsoever.
J: Could you explain what are the priorities for the
Joint Economic Committee? Can you also comment on
why it was established as a ministerial group as is
the case I think, with our two other major trading
partners, Japan and the United States, given the
rapid growth Korea has as our major trading partner?
PM: Well I think as In many things one is better to feel
one's way before one dashes to a ministerial group
and much can be gained, I think, by a bette.
understanding of the two econoit.* ou; tIh. e two;.
" i
21. Jn. 9318: 4 No. 25 P08/ 0
TEL: 21. Jn. 9318: 44 No. 0625 P. 09/ 10
bureaucracies each having a better knowledge of the
@ thor country and the issues in trade and
Ivestment. That will be the primary focUs of this
buresacratic ~ ruin Tat in to understand the
issues in tra r* n" nveetmekat and to understand
then in sucb a way as to be able to ef feet changqes
between the two countriles which enlhanlce our trade
and investment opportuftities. We think there is a
great complementary quality In these two economies
and even though we have a substantial trade between
us It has been to date largely centred around raw
materials and we need to diversity that Into
manufactures and services from bot directions so,
this would be the purpose of the group. Thatos not
to say there will stil1 lof course be meetings of
Foreign Ministers and Trade Ministers periodically,
and Industry Ministers an was the case with Minister
LOO's visit here recently.
Prime Minister, what sort of ass5esmet did you get
froom President Kim about the North Korean decision
to back away from the earlier decision to quit the
NPT!. Did you get a sense that it's a permanent
decision or that North Koreans might revisit back
and acre broadly, whtat sort of assessment did you
get on the state of tension?
H: Well, I think the President made clear to me that he
was pleased by the halt to the withdrawal by worth
Korea frou tihe Nuclear non-Proliferation Treaty and
International Atomic Energy Agency processes and
inspections. So far as it gooe, the halt is at
least a step in the right direction thouqh it
doesn'lt resolve the question of international.
inspections, credible International inspections of
North lorea's facilities. I made clear to the
President that Australia does support credible
international inspections of North Korea's
facilltips and of course, we both agreed the
Peninsula would be better without the further
development of nuclear programs leading to weapons
and the influence this may have in deutabilislng or
upsetting at least the region in torus of strateg ic
concerns. So I thInk the President was happy Vith
Australi; FS view which we had put not ju~ st privately
but in international for& which We bad put publicly:
On the second part of the question about tensions on
the Peninsula, a very large part of North Korea's
GRP is spent on defence. From memory upwards' Of
per cent from an econoImy Which in somewhat
debilitated, this ts a very large expenditure and a
shift of resources# an unwarranted shift of
resources this Obviously makes for tension not just
in the Peninsula but in the area because we're led
to believe that China does not support the
development of a nuclear WeaPOO-8 , Agram by-North.
Korea either. But again, IWtjb n(* ~ p~ a~
TEL 6
the Governmen~ ft in Korea, the Goverl3Oft Of 1orea has
lwivihe tis ansoflnow for Many years and t
tink waths tsanSn that context a debate
oant~ ilbd to at least no vithdrawal from th04 e
aslin resumption of discussionsU about the LIport
ofa North Korean Naclear Program-
3: I know there are a lot of Koran compatriots in
Australia. Do you hove any policy in the future to
accept more Korean Lumigrants and if you have any
such policyo plea" s let us know.
PI: Well, Australia has the highest per capita
immigration~ policy in the western world. We take
sore people per head of populationl if you take a
five year average at any time than any comparable
Country. Australia has a non-dism intr
Limiration program, that is non-discriminatory as
to race or religion. There is a perception in the
Korean consciousness through your education system a
knowledg 0Of hustralia's migration program in the
past whch discriminated In favour of furopeans.
This has long since p66sed twenty years ago and that
io why now we have got a very multicultural
Population with almost half the intake each year now
coming from Asia. SO this is a substantial change
on twenty year. ago and that is why nov there is a
very substantial Korean population in Australia, a
very large Vietnamese comunity, a very large
Chinese community, a substantial Japanese coiMunity
along with communities froz the Middle East, Western
ftropeo etc.
J: PriNe Minister, from your discussionstdy i Q
got any Indication at how Korea perceive todyde q
prospect ' Of Australia becoming a republic an4
whether that would have any spin-of fs in terms of
Our acceptance In the region or our trading
relationships?
PIw Woo there was no expressed reference to Australia
becoming a republic. itiki onre uha
Korea they expect a natink to manis ownh atny
and T think that point ie trosably beont destny
for then. Pobbybeodcosn
Thank you one and all.
Ends