TEL: 28. Sep. 93 15: 57 No. 020 P. 01
I,,
l PRIME MINISTER
STATEMENT TO PARLIAMENT BY THE PRIME MINISTER,
THE HON P J KEATING, MP
VISIT TO THE UNITED STATES, THE UNITED KINGDOM, IRELAND,
FRANCE AND MONACO
Mr Speaker
I wish to inforn the House of the outcome of my visit to the United States, the United
Kingdom, Ircland, France and Monaco between 1I and 24 September.
During the visit, I dealt with a number of issues which will have a profound bearing on
Australia's trading interests and future prosperity. on our national identity, and on how
we and othcrs see our place in the world.
I
These are all big questions, and it is important that we get them right.
At a time of great fluidity in international affairs, we now face fundamental questions
about the structure of the world trading system.
The opportunity to secure a successful conclusion of the Uruguay Round is now close
at hand, but the outcome is far from assured.
The APEC forum, which Australia has done so much to bring forward, is now poised
to develop into a valuablc framework for promoting trade and investment in the Asia-
Pacific region.
The United States Congress will soon decide whether or not to approve the North
American Free Trade Agreement with far-reaching repercussions either way on the US
trade policy stance.
At this pivotal moment in the international trading environment, it is important that
Australians are fully aware of the impact that decisions about future trade stnicturs
will have on our interests.
Mr Speaker
At stake is nothing less than the future prosperity of our country.
28. Sep. 93 15: 57 No. 020 P. 02/ 1
2
At stake is our capacity to provide employment for the next generation of Australians.
More than ever before, Australia is on its own internationally, fending for itself in a
competitive and challenging international environment
But we are seen internationally as a modem soicty with many assets to help us make
our way successfully in the world.
Our recent achievements in fostering a tolerant and diverse multicultural society and in
executig a series of major reforms of the Australian economy highlight our capacity to
change, and to play an increasing role in regional and international affairs.
These subjects were the main thrust of my discussions in each of the capitals I visited.
Mr Spcakcr
I visited Washington at a time Australia's most pressing interests coincide with much
that is promincn on the American agenda.
The future of the Uruguay Round, the development of APEC and the creation of
NAFTA arc all matters to which President Clinton, his Administration and the
Congress are giving high priority.
It was a very useful time to be able to put Australia's view, and to represent our
interests on these issues.
Given the enormous stakes involved, it was important to be able to discuss with the US
Administration and Congress what sort of policy and institutional framework will best
maintain and strengthen the highly valuable economic Linkages which now operate
between East Asia, Oceania and North America.
So strong have thcse linkages between North America and the Western Pacific become
over the last decade that today there is a higher degree of trade integration among the
members of APEC than there is among the members of the European Community,
or among the three North American economies, or among the East Asian economies
considcmd separately.
And while the United States market remains vitally important for most East Asian
economics, I found a growing awareness in the Administration and in Congrpss that
East Asia has also become an increasingly important market for US exports.
Indeed, less than a decade ago more than one third of Western Paciric exports went to
the United States.
Today the proportion is leis than one quarter.
TEL
TEL 3
Over the same period the proportion of US exports which go to the Western Pacific
has risen to wcll over one quarter, on a par with those to the NAFTA partners and well
ahead of exports to the EC.
Since the mid eighties the trend rate of growth of US exports to the Westen Pacific
has beeti ec times the rate of growth of Western Pacific exports to thc United
States. This rapid trade growth in the region and the prosperity it produces would be gravely
threatened, in my view, if in coming decades North America and the Western Pacific
went separate ways in trade and strategic alignments.
I am glad to be able to report that the Clinton Administration is as convinced of the
importance of the East Asia region as we ourselves have become.
I had very productive discussions in Washington with President Clinton, with Secretary
of Stawe Christopher, Defense Secretary Aspin, US Trade Representative Kantor,
Treasury Secretary Bentsen, Director of Central Intelligence Woolsey and with senior
Congressional leaders including Senate Majority Leader Mitchell, Senate Minority
Leader Dole and House Speaker Foley.
My ineeting with President Clinton was exceptionally useful.
I was impressed by the vigour, imagination and resolve with which he is going about
the task of rebuilding American competitiveness and American society.
We affirmned in our meeting the continuing vitality and relevance of Australia's bilateral
relationship with the United States.
Despite the great changes in die world brought about by thc end of the Cold War,
fundamental Australian interests continue to be engaged in our relationship with the
United States in our defence alliance, in the mutually beneficial processes or policy
consultation we enjoy on a wide range of issues, and in our strong commercial ties.
Despitc our bilateral access problems, which I discussed with Ambassador Kantor and
congressional leaders, the US market remains Australia's second biggest.
And the United States is the largest source of foreign investment in Australia and the
most important destination for Australian investment abroad.
Mr Speakcr
My meeting with the President produced three important results.
First, we agreed to work closely together for a successful outcome of the informal
APEC leaders' mceting in Scatilc in November. T2EL8:. Sep. 93 15: 5? No. 020 P. 0
TEL: 28. Sep. 93 15: 5? No. 020 P. 04/ I
4
This historic meeting, involving leaders of the key Asia-Pacific economies the fastest
growing area of the world will help define an Asia-Pacific economic community and
give political authority and weight to APEC.
The President noted Australia's vital contribution to the development of APEC.
I was impressed by the President's commitment to the Asia-Pacific economic
community, and by the unanimity with which hehis Cabinet and the Congressional
leadership in both Houses and both parties expreised their conviction that the United
States should assign a higher priority to its trading relations with the Western Pacific.
Secondly, we agreed that it was very important to world growth and jobs to achieve a
successful and balanced outcome to the Uruguay Round by the 15 December deadline
for Congress's " fast track" approval, and that any move by the European Community
to re-open the Blair House accord on agriculture would seriously jeopardise the whole
Round. The United States has pressed hard in favour of freer trade during seven long years of
thc GATT negotiations.
It has been a policy stance of great value to Australia.
But I was convinccd by my discussions in Washington that 15 December is a real
deadline for Congress, and that, if we cannot achieve an acceptable package by then,
Congress as well as the Administration will turn their attention away from global
solutions to trade problems and towards more regional approaches.
Thirdly, the President and Ambassador Kantor recognised Australia's conccrn about
the damage that EEP subsidies cause our grain exports, and said they would make
every effort to minimise the effect on Australia's interests.
They noted the Administration's decision to stay out of the Indonesian market as a
bonafide of their sincerity in this regard.
They explained that the EEP was aimed at counteracting European subsidies, and that
the only fully effectivc way to reduce the impact on Australia's grain exports was to
conclude the Uruguay Round as soon as possible.
Mr Speaker
In New York, I addressed a meeting of the Asia Society and had a meeting with the
Secretary-Gencral of the United Nations, Mr Boutros Boutros-Ohali.
I told the Secretary-Gcneral that Australia welcomed the new possibilities for the work
of the United Nations which have arisen with thc disappearance of Cold War
constraints. I said that, as a foundation member of the United Nations, Australia is fully committed
to the ideals of the Charter and wants to see those ideals prosper.
TEL: 28. Sep. 93 15: 57 No. 020
I noted that Australia was committed to peacekeeping, with around 600 Australians
serving in Cambodia, Somalia and in other operations around the globe.
We were also a substantial financial contributor to the United Nations, paying in full
and on time.
I told the Secretary-General that Australia would-continue to contribute resources and
ideas to the Organisation.
T" Cheo ompoersat tricncge nfotr e Pxeaamcpe" le, eoxfa tmhiisn icnogn tpreibaucteikoene pisi nSge naantdo rc oEnvaflnicst's r edsoocluumtioenn, t which is
being launched in New York this week.
I also made it clcar to the Secretary-General, however, that the United Nations
Organisation itself had to make sure it was operating as efficiently and effectively as it
could especially in its administration and in its peacekeeping operations if it was to
maintain the international support needed to fulfil its great potential.
Mr Spcakc. r
My visit to the United Kingdom, the first by an Australian Prime Minister since 1987,
provided an opportunity to help reinforce and rshape this old and still very valuable
relationship. I had a long and productive meeting in London with Prime Minister Major.
World trade issues were again the main theme of my discussions.
I told Prime Minister Major how much Australia appreciatcd the very constructive and
positive role Britain has played within the EC, and more widely, in pushing the cause
of freer world markets and the multinational trading system.
We both underlined the importance of a successful and balanced outcome to the
Uruguay Round for jobs and growth.
We agreed that 15 December is a real deadline for the Round.
We also discussed the strong and growing economic ties betwecn Britain and
Australia. Britain is Australia's fourth largest trading partner, and our eighth largest export
market. It is the second largest source of foreign invcstment in Australia.
In turn, we arc the fourth largest foreign investor in the UK, ranking above Japan.
TEL: 28. Sep. 935 15: 57 NO. 020 P. 06;
6
Prime Minister Major and I agreed that there was much to build on and to develop in
this area.
We noted that an important Australia-UK trade and investment conference, to be held
in Melbourne in January next year, will help to maintain the impetus for growth in our
commercial relationship.
Mr Speaker
I also spoke to Prime Minister Major about Australia's constitutional arrangements.
I said publicly in London that it is not because our affections; for Britain are reduced or
the friendship between us frailer, or our respect and admiration for the institutions
Britain has bequeathed us in any way diminished, that Australia is considering the
option of becoming a republic.
And I also said that our friendship for Britain would be all the stronger for our
becoming a republic, as any friendship is stronger for being more mature.
Mr Major Prime Minister of a Conservative British Government and Mr Hurd, his
Foreign Secretary who was on a parallel visit to Australia, both made publicly and
privately clea that the matter or Australia's constitutional arrangements is one for the
Government, people and Parliament of Australia and the Queen of Australia.
They both assert, quite correctly, that the modern, mature relationship between Britain
and Australia will remain quite unaffected by our moves to become a republic.
Mr Speaker
I was rceived by Her Majesty the Queen at Balmoral Castle on 18 September.
In accordane with longstanding convention, the discussion between us must remain
confidential. But I am able to say I explained to Her Majesty that, notwithstanding thc detp respect
and warm affection felt towards her by the Australian people, there was a growing
feeling in Australia that constitutional changes should be made to allow the
appointment of an Australian Head of State.
I outlined to Her Majesty thc various steps that would be involved in such a process,
including the necd for a referendum to approve constitutional amendments.
I said thc Australian Governent's view was that, if approved by the Australian people
at a rererendum, it would be appropriate for Australia to become a republic by the
centenary of Federation in 2001.
I told H1cr Majcsty that. in such a situation, Australia would remain a member of the
Commonwealth of Nation and that the Australian people would warmly welcome
T2EL8: . Sep. 93 15: 57 No. 020 P. 07
7
visits to Australia by Her Majesty as Head of the Commonwealth and as the Queen of
the United Kingdom.
HeIr Majesty authorised mc to say that she would, of course, act on the advice or her
Australian Ministers, as she always has, and on any decision made by the Australian
people. Mr Speaker
The issues involved in the creation of a Federal Republic of Australia are complex.
They require thoughtful and informed debate.
But as a result of my discussions in Britain it is clear that, whatever the outcome of the
debate in Australia, whatever thc form of constitutional arrangements on which the
Australian people finally dccide, both Her Majesty and the British Govermecnt regard
these arrangentsL, properly. as entirely matters to be decided by the Ausirdlian
people themnselves.
And it is also clear that the results of any constitutional changes are not seen as a threat
and will not threaten the warmth of the relationship between Australia and Britain,
or the personal respect and affection in which Her Majesty is held.
It is my Government's firm intention, Mr Speaker, to ensure that, throughout the
period that Australians are debating new constitutional arrangements, our existing links
with the monarchy arc maintained and exercised with dignity and respect.
In that regard, I am pleased to announce that I discussed with Her Majesty an
invitation I have extended to the Prince of Wales to visit Australia early in 1994
following proposals by several State Governments.
The invitation has bccn accepted.
His Royal Highness will arrive in Sydney on 25 January, and visit in addition to New
South Wales, Tasmania, Western Australia and Queensland.
Mr Speaker
My visit to Ireland cnabled me to mark the very important contribution which Ireland
has made to the cultural, social and political development of this country.
The peopic-to-peopic links between us arc still strong and vigorous.
In Dublin I had the honour of addressing the D~ ail, and I had extensive discussions with
the Taoiseach, Mr Reynolds, and leaders of the othcr Irish political parties.
My discussions focused again on thc outcome for the Uruguay Round, on which
Ireland has been one of the European countries most resistant to change in the area of
agriculture. TEL
TL: 28. Sep. 93 115: 57 No. 020 P. 08/:
I put the view forcefully to Irish political leaders, and to business people at a dinner
hosted by the Irish-Australian Business Association, that Ireland, with its growing
industrial exports, will he best served by ensuring that we gct an acceptable outcome to
the Uruguay Round.
That in turn depended, I said, on the integrity of the Blair House accord on agricultur
being fully mlaintained.
I also made the point that, although our trade is growing, die warmth of people-topeoplc
relations between Australia and Ireland is not matched by our commercial links.
I said I hoped that companies in each country would incrwaingly use the oth cr as a
base to develop links into Asia and Europe respectively.
The warmth displayed by the Irish people towards me as head of the Government of
Australia was quite profound.
In all parts of the country I visited, there was a spontaneous expression of warm
welcome and good wishes towards Australia and the Australian people.
It is quite a phenomcnon that thc cultural and emotional links between Australia and
this small country in Europe exist as strongly as they do.
It Is something Australians should value and continue to nurture.
Mr Speaker
On my way fromn Ireland to Monaco for thc Sydney Olympic bid, I stopped for several
hours in France and visited Villers-Bretonineux, thc. site of the memorial to the 46,000
Australians 18,000 without a known grave who died on the We-stern Front during
the First World War.
Like all who have visited the military graveyards of France, I was reminded of the.
courage and devotion of those young Australians who fought and died in that terrible
war and the huge loss this nation suffcred on the French battlefields.
I was also reminded that the tragedy of which they were victims arose, in large part,
from the selfish and narrow nationalism which has so often scarred this century.
We havc the opportunity, as the century ends. to do things hctter, to create broader,
more inclusive economic structures which will generate new growth and new jobs
around the globe by mnaximising trading opportunities for all countries.
If the international community rails in its efforts to resolve the Uruguay Round by mid-
December, there are other options5 available but, as all those I spoke to on my visit
agrecdi, they are not such good options.
Mr Speaker TEL
T: 23. Sep. 93 15: 57 N0.020
9
The International Olympic Committee's decision to awar the Olympic Games for the
year 2000 to Sydncy was a wonderful outcome for this country.
The Olympics are bound to be a marvellous moment in the life of the city and the
nation: a celebration of international youth and sport in a young country with
extraordinary sporting traditions.
All of Australia's attractions will be on show to billions of people around the world as
we approach the centenary of the Commonwealth's creation.
The Olympics can also be a defining moment in our history in the one hundredth year
of our nationhood, a brilliant opportunity to celebrate our achievements and define our
place in the region and the world.
Thc Olympics will generate economic growth and jobs well beyond Sydney itself.
The IOC's decision was a trbute to all those who worked so hard to put together an
outstanding bid.
My wife and T werc delighted to participatc: in the bid's presentation to thc IOC, and
were & ratified that the Government was able to indicate its material support for the bid.
It is a tribute to the breadth of support for the Games among the Australian community
demonstrated so memorably by the tens of thousands of people who showed their
enthusiasm in Sydney on Friday morning.
In a wider sense, Mr Speaker, the IOC's decision is also a tribute to the society we
have created here its social equity, cultural diversity, tolerance and its sophistication
and efficiency.
Sydney's approach was set iiprt. from others by its technical excellence and by its
commitment to the athletes themselves and to the ideals of the Olympic movement.
All the people involved in the bid deserve the warmest congratulations and thanks of
this House.
More than that, Mr Speaker, they deserve the continuing support of all Australians
government, business and the community in the seven ycars of hard work that still lie
ahead of us.
I can say on behalf of the Commonwealth Government that they will have Lhat support.
Mr Speaker
I began by saying that my visit to the United States and Europe took place at a time or
great consequence for the world economy a Lime when new% p atterns are being
ceated, and when great decisions are beig formed.
TEL
TEL: 28. Sep. 93 15: 57 No. 0210
Within the next twelve weeks alone we will have the first meeting of the leaders of the
Asia-Pacific economy community, we shall enjoy success or suffer failure in the
Uruguay Round, and we will have, by the year's end, a surer sense of whether recovery
can take hold in Europe anid Japan, and strengthen in the United States.
It is a decisive time in world economic affairs, Mr Speaker. and it comes as Australia is
achiev'ing greater international recognition.
Sydney's Olympic win reflects this most draatically, but it is also reflected in Mr
Clinton's generous praise of Australia's role in forging APEC, and in the respect
accorded to Australia's views in the Uruguay Round as the leader of thc Cairns Group
of fair agriculture traders.
Mr Speaker
There is a responsibility on all of us to recognse that we are in a bigger game a game
with bigger prizes but with new and tougher rules.
T1he world is offering us great opportunities, but to takc advantage of them we must
continue to be flexible and competitive at home.
We must continue to seek national cohesion and strength.
We cannot seiz the opportunities thc world offers us if we cannot agree on the
fundamental instrument of national economic policy, the Budget.
We cann~ ot sciiz those opportunities if we cannot reach a satisfactory and enduring
agreement on the implementation of the High Court's decision to recognise a form of
Aborigial title.
We cannot seize those opportunities if our workplace relations are not free to evolve
towards outcomes based on bargaining.
To selLe those opportunities we need to renew our commitment to change, and our
commitment to the reforms necessary to meet the imperatives of the ncw global order.
It will help us in this regard if wc recognise the success of the changes we have already
made how well we are doing in the world; how much more competitive wc have
made ourselves; how much the chances which now present themselvcs are only
chances becausc of the changes we have made; how we have made them while also
making Austrdlia a tolerant, sophisticated and progressive society with few cquals in
the world and how much better wc can make it if we put aside sectional interest and
parochialism and work together as a nation.
CANBERRA 28 September 1993