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    "ocrText": "Originally Processed With FOIA(s):\nFOIA Number:\nS; 2003-0345-F; 2004-2265-S\nS\nFOIA\nMARKER\nThis is not a textual record. This is used as an\nadministrative marker by the George Bush Presidential\nLibrary Staff.\nRecord Group/Collection:\nGeorge H.W. Bush Presidential Records\nCollection/Office of Origin:\nSpeechwriting, White House Office of\nSeries:\nSpeech File Backup Files\nSubseries:\nChron File, 1989-1993\nOA/ID Number:\n13788\nFolder ID Number:\n13788-017\nFolder Title:\nMelbourne Business Lunch 1/3/92 [OA 8332] [2]\nStack:\nRow:\nSection:\nShelf:\nPosition:\nG\n26\n22\n1\n6\nDEC 10 '91 11:55\nFROM USTR PUBLIC AFFAIRS\nPAGE. . 001\nASIA AND PACIFIC\nOFFICE OF THE UNITED STATES TRADE REPRESENTATIVE\nExecutive Office of the President\nWashington, D.C. 20506\nDate:\n12/10/91\nNo. Of Pages:\n12\n(Excluding cover page)\nTO: NAME:\nCo./AGENCY:\nPHONE #:\nFAX #:\nCarol Aarhus\nWhite House\nx7750\nX 6218\nFROM:\nSandra Kristoff, AUSTR\n(202) 395-3430\nNancy Adams, DAUSTR\n(202) 395-4755\nLaura Kneale Anderson, South Asia and Pacific\n(202) 395-6813\nPeter Collins, South East Asia and India\n(202) 395-6813\nTerence Mulligan,Special Assistant, Asia and Pacific\n(202) 395-6813\nTommie Johnson\n(202) 395-3430\nDiane Parker\n(202) 395-6813\nFAX#:\n(202) 395-3512\nCONTACT:\nIf There are any problems please call: (202) 395-3430, 4755, 6813\nSUBJECT:\ninfo on Australia\n/\nDEC 10 '91 11:55 FROM USTR PUBLIC AFFAIRS\nPAGE. 002\nAUSTRALIA\nECONOMIC BACKGROUND\nAlthough, in area, Australia is the size of the contiguous United\nStates, its markets and production capability are limited by a\nsmall domestic population of 17 million people. While\nAustralia's agricultural and minerals sectors are export-\noriented, its manufacturing and services sectors are focused on\nthe domestic market.\nBecause of its small domestic market, Australia has long\nprotected its manufacturing sector through tariffs and other\nmeasures. Since 1983, however, the Labor Government under Prime\nMinister Bob Hawke has adopted policies to foster greater\nopenness and competitiveness in the economy. These policies have\nresulted in the elimination of import quotas in all but three\nsectors (textiles, clothing and footwear) and reductions in\ndomestic subsidies and tariffs.\nThe Australian economy is currently in a recession. In the\nfiscal year ending in June 1991, real GDP declined by\n2.4 percent. Manufacturing output is stagnant, while\nunemployment has been rapidly increasing. In June 1991, the\nunemployment rate stood at 9.4 percent.\nCurrently, around 67 percent of Australia's exports are\nagricultural and mineral products. Because of the high\nvolatility of international commodity prices, Australia's terms\nof trade vary greatly. In the past two years, its terms of trade\nhave declined significantly as the weakening global economic\nsituation has resulted in marked declines in non-fuel prices.\nIn the fiscal year ending June 1991, Australia experienced a\nsmall global trade surplus of $2.0 billion. This represented a\nsignificant improvement over the 1989/90 fiscal year, when\nAustralia recorded a trade deficit of $2.5 billion.\nAustralia's total exports in the 1990/91 fiscal year were\n$40.3 billion, an increase of 8.3 percent over 1989/90. Japan is\nAustralia's leading export market, followed by the United States.\nAustralia's top four exports, in order of importance, are coal,\nwool, gold and wheat.\nAustralia's total imports in the 1990/91 fiscal year were\n$38.3 billion, a decline of 3.5 percent from 1989/90. The United\nStates, Japan and the EC each provide around 22 percent of\nAustralia's total imports. Australia's major imports are motor\nvehicles, data processing equipment, aircraft, petroleum products\nand capital equipment.\nDEC 10 '91 11:56\nFROM USTR PUBLIC AFFAIRS\nPAGE. 003\n- 2 -\nIn 1990 the U.S. trade surplus with Australia was $4.1 billion,\n$347 million lower than in 1989. U.S. exports to Australia were\n$8.5 billion in 1990, representing a 2.2 percent increase over\n1989. Australia was the United States' eleventh largest export\nmarket in 1990. U.S. imports from Australia totaled $4.4 billion\nin 1990, a 13.7 percent increase over 1989.\nMAJOR TRADE ISSUES\nBroadcasting restrictions\nTelevision programming: On January 1, 1990, the Australian\nBroadcasting Tribunal (ABT) implemented new standards for\nAustralian television programming which effectively establish\nlocal content requirements. These standards require that a\ncertain portion of total television programming between 6:00 a.m.\nand midnight be of Australian origin. The programming quota is\nset at 40 percent for 1991, and is scheduled to rise to\n50 percent by 1993. The U.S. film industry is concerned that its\nAustralian sales will be adversely affected when the programming\nquota reaches 50 percent.\nTelevision commercials: Under program standards that took effect\nin 1986, the ABT requires that all television advertisements have\na minimum of 80 percent Australian content. In addition, the ABT\nprohibits broadcasting of foreign-produced animated commercials.\nThe ABT's restrictions have had demonstrable commercial effects\non U.S. interests.\nThe ABT will revise these regulations effective January 1, 1992,\nto require that 80 percent of all commercials be of Australian\norigin. In other words, the new regulations will establish a\n20 percent quota for foreign-produced commercials. This quota\nwill also apply to foreign-produced animated commercials.\nAs a result of these restrictions, we placed Australia on the\nSpecial 301 priority watch list in April 1991. We are currently\npressing Australia to include commitments to liberalize these\nrestrictions in its services offer in the Uruguay Round.\nCopyright issues\nExclusive rental rights for sound recordings: The current\nAustralian copyright law fails to provide any rights to record\nproducers or composers to control the commercial rental of sound\nrecordings. In July 1990, the Australian record industry\nproposed that the law be amended to provide such a right. In\nJuly of this year, Australian Attorney-General Michael Duffy\nannounced that he was rejecting this proposal.\nDEC 10 191 11:57 FROM USTR PUBLIC AFFAIRS\nPAGE. 004\n- 3 -\nThe U.S. recording industry reports that video shops in Australia\nhave begun to expand their rental business to include compact\ndiscs, and that CD-only rental shops are also emerging. The\nindustry is concerned that the Attorney-General's announcement\nwill lead to a dramatic increase in the number of such rental\nshops, threatening $150-200 million in annual U.S. sales of sound\nrecordings in Australia. We are seeking a provision to protect\nrental rights in the Uruguay Round TRIPs negotiations.\nParallel imports: The Australian Parliament is considering a\nbill to amend Australia's Copyright Act to permit parallel\nimports of foreign books. The U.S. publishing industry is\nseeking an exemption from this bill for textbooks. Most U.S.\nbooks are distributed in Australia through British publishing\nhouses. College textbooks, on the other hand, are generally\nshipped directly from U.S. publishers in response to requests\nfrom instructors who have committed to use them in their courses.\nU.S. publishers are concerned that allowing parallel imports of\ntextbooks into Australia will open the market to low-quality\neditions of textbooks that they sell at concessionary prices to\ndeveloping countries. The industry estimates current U.S.\nexports of textbooks to Australia at around $20 million annually.\nProcurement\nAustralia is not a signatory to the Government Procurement Code.\nWe included Australia in our Title VII report to Congress last\nyear, citing Australian offset requirements on certain civilian\nprocurements in the form of local content or joint venture\ncommitments. Partially as a result of Australia's inclusion in\nthe Title VII report, Australia held consultations with us in the\nfall of 1990 as part of an information-gathering exercise on the\npossible benefits of Code membership.\nThis past spring, Australia took some steps to trim back offset\nrequirements at the federal level. Nevertheless, Australian\nofficials have indicated that they intend to postpone a decision\non whether to join the Code pending the outcome of the current\nCode negotiations, as they believe that membership in the current\nCode would offer few benefits to Australian firms.\nDEC 10 '91 11:57 FROM USTR PUBLIC AFFAIRS\nPAGE. 005\n- 4 -\nU.S. agricultural policies\nThe U.S. EEP program remains a politically contentious issue in\nAustralia. In an effort to defuse domestic tensions over EEP, an\nAustralian delegation met with a team from USDA in August in\norder to present Australia's perspective on the current world\nmarket situation for wheat and seek greater sensitivity to\nAustralia's trade interests. Australian officials have expressed\ninterest in holding followup talks in Canberra in early 1992.\nAustralian officials have been somewhat sensitive to our\narguments that the EC holds the primary responsibility for the\ncurrent agricultural subsidy war, and have made public statements\ncondemning EC export subsidies. In addition, an Australian\ndelegation met with EC agricultural officials early this fall to\nhighlight the effects on Australian exports of subsidized EC\nwheat sales. Nevertheless, the EEP program remains a volatile\npolitical issue in Australia.\nDEC 10 '91 11:58\nFROM USTR PUBLIC AFFAIRS\nPAGE 006\n1991 National Trade Estimate Report on\nFOREIGN TRADE\nBARRIERS\nOffice of the United States Trade Representative\nDEC 10 '91 11:58 FROM USTR PUBLIC AFFAIRS\nPAGE. 007\nAUSTRALIA\nIn 1990 the U.S. trade surplus with Australia was $4.1 billion, $347 million lower than in 1989.\nU.S. merchandise exports to Australia were $8.5 billion, rising $188 million or 2.2 percent\ncompared to 1989. Australia was the United States' 11th largest export market in 1990. U.S.\nimports from Australia totaled $4.4 billion in 1990 or 13.7 percent higher than in 1989.\nThe stock of U.S. foreign direct investment in Australia was $14.5 billion in 1989, $1.2 billion\nhigher than in 1988. U.S. direct investment in Australia is largely concentrated in petroleum\nand manufacturing industries, and in particular chemicals.\n1. IMPORT POLICIES\nTariffs\nOn a trade-weighted basis, Australian duties on manufactured goods average slightly less than 8\npercent. This is higher than the average tariff levels for other industrialized countries (e.g., less\nthan five percent for the United States and the European Community).\nAustralia's tariff profile is characterized by significant \"peaks\" protecting sensitive domestic\nindustries. In addition, only a relatively small percentage of Australia's tariff rates are\nGATT-bound-approximately 25 percent compared to 99 percent for the United States.\nProduct sectors of particular U.S. export interest which high tariff rates protect include: apparel\n(up to 55 percent), carpets and other textiles (up to 35 percent), torque wrenches (21 percent),\nvinyl-coated fiberglass (15 percent), aluminum screening (18 percent), and printed commercial\nmaterial including decals, telephone directories, calendars, and postcards (15 percent).\nOther products subject to higher tariffs are wood and upholstered furniture (24 percent),\nplywood (19 percent), paper products (5 to 10 percent), forged aluminum vehicle wheels (23\npercent), leather goods (15 percent), stencil marking ink (15 percent), pacemakers (15 percent),\naluminum mill products (up to 13 percent), wine (11 to 13 percent), almonds (10 percent), and\nchocolate (17 percent).\nAustralia uses tariff quotas to protect domestic textile, apparel, and footwear manufacturers.\nOn May 25, 1988 Australia announced a comprehensive program of economic reforms. The\nprogram includes reductions in assistance for agricultural and manufacturing industries. The\nchief changes are abolition of tariff quotas and accelerated tariff rate reductions. Undertaken\nunilaterally, these changes indicate:\nDEC 10 '91 11:59\nFROM USTR PUBLIC AFFAIRS\nPAGE 008\nAustralia\nTariffs greater than 15 percent on July 1, 1988 will be reduced in five stages to 15 percent by\nJuly 1, 1992; and\nTariffs greater than 10 percent, but at or below 15 percent, will be phased down to 10\npercent by July 1, 1992.\nTariff levels for automobiles, textiles, apparel, and footwear will remain above the 15 percent\ngeneral maximum tariff level. The tariff rate on automobiles, which is currently 37.5 percent,\nwill be reduced to 35 percent on January 1, 1992. The Australian government is currently\nreviewing assistance arrangements for automobiles after 1992. Similarly, tariffs on light\ncommercial and four-wheel drive vehicles were reduced from 35 percent and 25 percent\nrespectively to an 18 percent rate. They will be phased down to 15 percent by 1992.\nUnder the Manufacturers' Content Program for Automobiles, automobile manufacturers are\nassessed a 37.5 percent duty on imported components exceeding 15 percent of automobile\ncontent by value. Automobile exporters may, however, earn up to 15 percent local-content\ncredit, plus an additional five percent (valued at 50 cents on the dollar) for exports of\nautomobiles.\nTariff rates applying to the base quota for apparel and footwear are also being reduced. The\ntariffs on these products will be reduced five percentage points in cases where they were higher\nthan 35 percent on March 1, 1989.\nAustralia estimates these tariff reductions are equivalent to a 30 percent cut in average\nprotection levels for manufacturing industries.\nThese Australian measures will improve access for U.S. exports. Nevertheless, Australia's\naverage tariff level will remain above comparable levels for other industrialized countries and\ncontinue to be largely unbound. The average tariff level (including agriculture) is projected to\nfall to a trade weighted average of approximately 5.5 percent by 1992. However, high tariffs in\nsome product areas will continue to impede the export growth of some U.S.-made items.\nThe United States intends to pursue further reductions in tariff levels and a substantial increase\nin the number of tariff bindings within the context of the Uruguay Round negotiations on market\naccess.\nCustoms Valuation\nOn July 1, 1989 Australia amended its Customs and Excise Legislation Law (CELA). The\nUnited States believes that the CELA is inconsistent with the GATT Agreement on Customs\nValuation in its treatment of royalties and buying commissions. The treatment of royalties and\nbuying commissions under the CELA could lead to certain impermissible additions being made\nto the dutiable value of merchandise.\n12\nDEC 10 '91 11:59\nFROM USTR PUBLIC AFFAIRS\nPAGE 009\nAustralia\nThe CELA also amends the treatment of the dutiability of inland freight charges by increasing\nthe amount of inland freight charges that can be included in the dutiable value. While not\ninconsistent with the GATT Agreement on Customs Valuation, the amended Australian law\nmay impair or nullify tariff concessions on products that are exported on an ex-factory basis. In\naccordance with its offer to consider requests to review valuation arrangements that significantly\nraise protective levels, Australia agreed on October 11, 1989 to lower the duty on soda ash to\noffset the increase in the dutiable value.\nThe value of U.S. trade loss due to this practice is unknown.\n2. STANDARDS, TESTING, LABELING, AND CERTIFICATION\nA nonsignatory to the GATT Standards Code, Australia maintains restrictive standards\nrequirements and design rules for automobile parts, electronic equipment, medical equipment,\nand machinery parts and equipment. Imported products must also comply with individual state\npackaging regulations. Livestock imports, with the exception of horses, are limited under\nquarantine regulations to breeding animals and reproductive material. Restrictive plant health\nregulations prohibit or limit the entry of many fruits, including U.S. grapes, apples, pears,\ncherries, and avocados.\nThe United States will continue to encourage Australia to accede to the GATT Standards Code\nas an initial step toward alleviating these problems.\n3. GOVERNMENT PROCUREMENT\nAustralia has not signed the GATT Government Procurement Code. However, Australia is\nreviewing its position and has conducted international discussions on this issue. Australia held\nprocurement talks with the United States in October 1990.\nAustralia requires producers of equipment sold to Telecom Australia to meet local content,\nproduction, and export requirements under temporary industry development arrangements\n(IDA) and/or offset requirements. The IDA expires June 30, 1993.\nOffsets\nAustralia implemented an offsets policy which imposes a 30 percent offset requirement on the\ncumulated imported value of products for most government contracts awarded any one firm\nexceeding A$2.5 million in any one year, whenever the imported content of the purchased\nproducts exceeds 30 percent.\nThis policy has been devised to gain Australian access to export markets and encourage\ndevelopment of export-oriented, internationally competitive industries that provide technology\ntransfer, training, research and product development, and overseas marketing assistance.\nExceptions to this requirement are granted in return for a seven-year government-approved\n13\nDEC 10 '91 12:00\nFROM USTR PUBLIC AFFAIRS\nPAGE. 010\nAustralia\narrangement, in which the foreign exporter agrees to work with, or invest in, research and\ndevelopment or an export-oriented industry with an Australian firm.\nSectors affected by the offsets policy include defense equipment, civil information technology,\ncommunications, motor vehicles, heavy industrial equipment, medical and scientific equipment\nand, indirectly, pharmaceuticals. The offsets policy also applies to most statutory civil\nauthorities including Telecom Australia, Overseas Telecommunications Commission, Australian\nand Ansett airlines, Qantas, and Aussat. It is expected that privatization in the\ntelecommunications and aviation sectors will lead to changes in this policy for those sectors.\nState Preferences\nMost Australian states maintain 20 percent preferences for their procurements, which place\nforeign suppliers at a competitive disadvantage. Victoria abolished its preference margin on\nNovember 1, 1990.\nThe United States will seek liberalization of Australia's offset procurement policies within the\ncontext of Uruguay Round negotiations. As a step in this direction, the United States will\ncontinue to urge Australia to join and adhere to the GATT Government Procurement Code.\n4. EXPORT SUBSIDIES\nExport Incentives\nAustralia maintains several programs intended to enhance Australian exports. These include:\nExport Market Development Grants Scheme (EMDG): This program aims to encourage\nAustralian exporters to seek out and develop overseas markets for goods, services, industrial\nproperty rights, and technology substantially of Australian origin. Grants are available as\nreimbursements to Australian residents who have incurred eligible expenditures while\ndeveloping overseas markets for Australian products or services. Grants are determined on a\nmaximum basis of 50 percent of eligible expenditures exceeding A$15,000 up to a maximum\nreimbursement of A$250,000 in any one grant year. Claimants with export earnings exceeding\nA$25 million, or who have received eight previous grants, are not eligible. Grants received are\ntaxable as income.\nInternational Trade Enhancement Scheme (ITES): Support available under the ITES\nprogram is primarily directed toward the market establishment or sales expansion of specified\ngoods and services in specified markets. Under the scheme participants may receive financial\nsupport up to a total of A$750,000.\nSupport may be in the form of concessional loans or the direct provision of the Australian Trade\nCommission (AUSTRADE) services relating to product development, export management,\nestablishing an overseas market presence, market research, and other AUSTRADE-approved\n14\nDEC 10 '91 12:00 FROM USTR PUBLIC AFFAIRS\nPAGE. 011\nAustralia\nactivities. A total of A$55 million has been committed to this program, which has been\nextended until mid-1994.\nAustralia has signed the GATT Subsidies Code and joined with the United States in GATT\nnegotiations to limit export subsidy use.\n5. INVESTMENT BARRIERS\nLimits on Foreign Investment\nAll new foreign direct investments in the media, civil aviation, and urban real estate sectors are\nsubject to Foreign Investment Review Board (FIRB) approval. In other sectors, new foreign\ndirect investment worth more than A$10 million is also subject to FIRB review, but is generally\napproved automatically unless judged contrary to the national interest.\nLegislation passed in December 1990 reduced the aggregate foreign ownership that may be held\nin commercial radio and television stations from 49 percent to 20 percent in indirect interests.\nThe restriction on direct interests remains at 20 percent. The legislation also stipulates that no\nmore than 20 percent of the directors of a broadcasting licensee company may be foreign\nnationals. Direct and indirect ownership by individual foreign providers of broadcasting\nservices may not exceed 15 percent under the new law.\nIn September 1990 the Australian Parliament authorized the Australian government to partially\nprivatize its telecommunications and aviation sectors. Australian Satellite (Aussat), the\ngovernment-owned telecommunications interest, will be sold to a foreign competitor, which will\nbe allowed to compete with the government-owned Telecom/Overseas Telecommunications\nCommission in Australia's telecommunications sector. In the aviation sector, the sale of up to\n100 percent of Australian Airlines and 49 percent of Qantas will be permitted.\nIn the mining sector, foreign direct investment exceeding A$10 million must normally contain at\nleast 50 percent Australian equity. Exceptions can be made if Australian capital is not available.\nNew investment in uranium projects, whether by foreign or domestic interests, is prohibited.\nIn January 1988 new oil and gas development projects were exempted from the 50 percent\nequity and control guidelines. Projects worth more than $A10 million are now approved unless\njudged contrary to the national interest.\nUnder Australia's Foreign Takeovers Act, acquisition of 15 percent or more of an Australian\ncorporation requires FIRB approval. The FIRB reviews proposals to determine whether they\naccord with the national interest. However, in practice the government does not intervene if\ntotal business assets of the corporation involved are less than A$5 million.\nDEC 10 '91 12:01\nFROM USTR PUBLIC AFFAIRS\nPAGE 012\nAustralia\nLocal Content Requirements\nAustralia recently replaced its 85 percent local content requirement for passenger vehicles\nproduced in Australia with a protective tariff system and tariff reductions on inputs conditioned\non local content. However, Australia continues to maintain local content incentives for cigarette\nleaf produced in Australia. To qualify for a relatively low duty on imported tobacco, cigarette\nmanufacturers have agreed to use at least 57 percent domestic leaf. This local content\nrequirement is scheduled to be eliminated in 1995.\nThe United States will pursue liberalization of this requirement within the Uruguay Round\nnegotiations on market access and trade-related investment measures.\n6. SERVICES BARRIERS\nLocal Content Requirements for Broadcasting\nExcept for New Zealand productions, not more than 20 percent of an advertisement shown on\nAustralian television can be produced by non-Australians. Advertising shot entirely outside\nAustralia or New Zealand can be shown only if an Australian \"ghost crew\" is hired and kept,\nusually overseas, to meet Australian content requirements. Foreign-produced animated\nadvertising is totally banned.\nThe Australian Broadcasting Tribunal (ABT), the independent statutory authority which\ndetermines television standards, has recently proposed replacing these restrictions with a\nrequirement that 80 percent of all advertisements shown by each commercial television station\nbe of Australian origin.\nIn January 1990 a regulation was adopted which phases in local content in prime time television\nbroadcasting. By 1993, 50 percent of such broadcasts must be Australian as determined by a\ncomplicated point system which takes into account production control as well as program\ncontent.\nSegments of the U.S. industry claim the ABT's local content requirements cost U.S. advertising\nfirms an estimated $72 million a year based on 15 percent of the total market. The U.S. motion\npicture industry believes that the eventual 50 percent local content requirement for programming\nwill severely restrict their access to the Australian market.\nThe United States will pursue elimination of these restrictions in the Uruguay Round services\nnegotiations. We have also held several rounds of bilateral consultations with Australia on this\nissue.\nDEC 10 '91 12:02\nFROM USTR PUBLIC AFFAIRS\nPAGE. 013\nAustralia\n7. OTHER BARRIERS\nBounties\nBounties (production assistance) let domestic manufacturers maintain or increase their market\nshare through price discounting. The use of bounties limits foreign competition at competitive\nmarket prices.\nBounties are now in place on the following products (scheduled expiration dates are indicated in\nparentheses): metal working machine tools and robots (June 30, 1991); coated photographic\nfilm (December 31, 1992); bed sheeting (February 28, 1993); books (December 31, 1993);\nshipbuilding, printed fabrics and textile yarns (June 30, 1995); and computers (December 31,\n1995).\nBounty assistance increased from A$224 million in 1988-89 to A$291 million in 1989-90.\nDiscriminatory Sales Taxes\nA discriminatory sales tax protects Australia's fruit juice industry from import competition.\nNoncarbonated drinks containing less than 25 percent Australian fruit juice are subject to a 20\npercent sales tax. There is a 10 percent tax for such drinks with 25 percent or more local\ncontent. The discriminatory tax treatment of foreign and domestic juices is scheduled to expire\non July 1, 1991.\nU.S. industry claims Australia's discriminatory tax costs U.S. firms a significant amount of lost\nsales each year.\n17\nAustralia\nin brief\nThis is the 39th edition of Australia\nin Brief. It provides a comprehen-\nsive selection of facts and figures\non Australia in compact form. This\nbooklet has been prepared by\nOverseas Information Branch, De-\npartment of Foreign Affairs and\nTrade. The help received from\nAustralian Government depart-\nments, associated organisations\nand other authorities is gratefully\nacknowledged. Money values are\nin Australian currency. Weights\nand measures are metric. Unless\notherwise indicated, information\nis current to 31 January 1991.\nCover: A cattle muster on\nInnamincka Station, a beef\nraising property in South\nProduced by Overseas Information Branch,\nAustralia. Left: Australia's\nDepartment of Foreign Affairs and Trade,\nmulticultural heritage is\nEditor: Brian Cummins, Designer. Ron Butters.\nreflected in Australia Day\nPublished by the Australian Government\ncelebrations.\nPublishing Service, Canberra, 1991.\nAustralia gives more than $1000\nmillion in overseas aid annually.\n19\nCharter and the work of the UN's\nbroad range of its activities.\nspecialised agencies. It participates\nAustralia has developed strong\nactively in many UN activities and\nrelations with ASEAN an organi-\nInternational\nhas served on many of its bodies,\nsation that has made an important\nincluding the Security Council.\ncontribution to economic growth\nrelations\nIt has served for a number of\nand political stability in the Asia-\nterms on the Commission on Hu-\nPacific region. Australia has a\nman Rights and resumed mem-\nprogram of economic cooperation\nAustralia's international interests\nbership in 1991 for a further\nwith ASEAN through which it\ncan be divided into three broad\nthree-year period. It has provided\nsupports important regional\ngroups:\nmoney, personnel and equipment\nprojects. It also contributes sig-\ngeopolitical and strategic inter-\nfor major UN peacekeeping ac-\nnificantly toward easing the burden\nests in defence of Australian sover-\ntivities, contributes its assessed\nof Indo-Chinese refugees in mem-\neignty and political independence;\nshare of the costs of all UN opera-\nber countries.\neconomic cooperation and trade\ntions and makes additional contri-\nThe relationship with Indone-\nexpansion; and\nbutions. It is fully involved in UN\nsia, Australia's largest neighbour,\nactivities involved in being a good\nsocial development, narcotics,\nhas developed greater depth and\ninternational citizen.\ndisarmament, arms control and\nsubstance at both official and\nAustralia's diverse relation-\nouter space work. Australia accepts\ncommercial levels. Contacts have\nships with Britain, the United States\nthe jurisdiction of the International\nbeen enhanced through establish-\nand Western Europe, forged by\nCourt of Justice and is active in the\nment of the Australia-Indonesia\nhistory, remain important factors\ndevelopment of international law.\nInstitute in 1989 and by the signa-\nin Australian policy.\nAustralia has worked ener-\nture of the Timor Gap Treaty.\nRelations with China, Japan,\ngetically towards a global ban on\nAustralia has long involved it-\nmembers of the Association of\nchemical weapons and convened\nself in regional organisations such\nSouth-East Asian Nations,\nthe Government Industry Confer-\nas the UN Economic and Social\n(ASEAN), New Zealand, Papua\nence against Chemical Weapons,\nCommissions for Asia and the Pa-\nNew Guinea and other South Pa-\nattended by 66 countries, in Can-\ncific, the Colombo Plan and the\ncific States are of particular signifi-\nberra in September 1989.\nAsian Development Bank.\ncance to Australia. Similarly, in the\nIt has been a member of the\nJapan is Australia's largest\nIndian Ocean, Australia has im-\nOrganisation for Economic Coop-\ntrading partner and relations are\nportant political, strategic and eco-\neration and Development (OECD)\nbased on complementary interests\nnomic interests and observes and\nsince 1971.\nand shared perceptions of interna-\nconsiders carefully the issues of\nThe Commonwealth of Na-\ntional issues. Cultural, scientific,\nthe region.\ntions brings together about a\nsporting and other relations are\nAustralia has been a consistent\nquarter of the world's population\nfostered by both to improve mu-\nsupporter of the United Nations\nand Australia takes part in the\ntual understanding.\nMinisters and top level officials confer at\nthe Australia-Japan conference in Canberra.\n21\npreferential trade agreement in\nand Berlin. Central Europe remains\nfavour of South Pacific Forum\na key market for Australian exports.\nStates the South Pacific Regional\nThe value Australia places on\nTrade and Economic Cooperation\nits long-standing relations with the\nAgreement (SPARTECA).\nArab nations and Israel is high. It\nUnder the Australia New\nsupports the efforts of parties to\nZealand Closer Economic Relations\nthe Middle East dispute to find a\nTrade Agreement, trans-Tasman\njust, lasting and peaceful solution.\ntrade in goods and in most services\nAustralian trade with the region's\nbecame free on 1 July 1990.\ncountries is significant.\nThere has been a long, close\nAustralia maintains friendly\nrelationship with the United States.\nrelations with independent Afri-\nGovernment-to-government rela-\ncan States. It has formal relations\ntions are only part of an interaction\nwith South Africa but has been\nChina is a significant market\nAustralia has been at the fore-\nborn of common experiences, cul-\nprominent in opposing racist\nfor Australia and the relationship\nfront of international efforts to re-\nture and language. The ANZUS\napartheid policies and actively\nis underpinned by agreements and\nsolve the long-standing conflict in\nsecurity treaty and major tradeand\nencouraged the process of transi-\ninstitutional arrangements (cul-\nCambodia. Australia's proposal\ninvestment flows give particular\ntion to independence in Namibia.\nture, science and technology, agri-\nfor a comprehensive settlement\ndepth to the relationship.\nAustralian assistance to African\nculture, civil aviation, education,\nbased on an enhanced UN role has\nThe goodwill between Aus-\ncountries includes project support,\nand the Australia-China Council).\nbeen accepted in principle by all\ntralia and Canada allows coopera-\nfood aid and training. Australia\nA technical cooperation program,\nparties.\ntion on a range of objectives without\nalways has moved quickly and ef-\ndesigned to help China's develop-\nIn the Pacific region, Australia\naffecting individual national inter-\nfectively to bring relief aid to the\nment, includes activities in educa-\npromotes stability, welfare and\nests or commercial competition.\nvictims of disasters in Africa.\ntion, energy, forestry, health and\neconomic developmentthrough a\nRelations with individual\nAustralia has friendly and\nindustrial technology.\nrange of practical development\nWestern European countries are\nuseful relations with a number of\nAustralia's relationship with\nassistance programs.\nbased on shared cultural and his-\ncountries in Latin America and the\nthe Republic of Korea has devel-\nAustralia and Papua New\ntorical links and reinforced by the\nCaribbean, sharing many interests,\noped significantly in recent years.\nGuinea have a special and close\npresence in Australia of large\nparticularly in multilateral organi-\nKorea has emerged as a major\nrelationship. Since Papua New\nnumbers of former citizens of those\nsations.\neconomic power in its region and\nGuinea achieved independence in\ncountries and by significant eco-\nNuclear policies in Australia\nhas become one of Australia's most\n1975, the relationship has encom-\nnomic ties. The European Com-\nare based on strong support of the\nimportant trading partners.\npassed a broad range of govern-\nmunity (EC) is our biggest source\nNuclear Non-Proliferation Treaty.\nAustralia is building a broad\nment and non-government\nof both imports and investment.\nPolicy on the sale of its uranium\nrange of contacts with Vietnam, in\nactivities.\nAustralia has augmented its\nincludes a condition that it will not\nparticular trade and investment\nAustralia and New Zealand\nrepresentation in Central Europe\nbe used for military or explosive\nlinks.\nhave entered a non-reciprocal\nby opening new missions in Prague\npurposes and that buyers accept\nSoldiers rappelling down\n22\na cliff during training.\n23\ngineering and development of\nInternational Atomic Energy\nstrategic and international policy.\nAgency safeguards.\nAbout 60 per cent of the civilians\nAustralia participates in key in-\nwork directly for the ADF. This\nternational discussions on environ-\nmental issues and is in the forefront\nmeans that the Defence organisa-\nof nations implementing multilat-\nDefence\ntion is one of Australia's largest\neral environmental initiatives.\nemployers offering hundreds of\nThe Department of Foreign\ndifferent careers and many differ-\nThe Australian Defence Force\nAffairs and Trade conducts an\nent types of job training.\n(ADF). exists to implement Gov-\nThe Australian Defence Force\noverseas cultural exchange pro-\nernment defence policy.\nAcademy (ADFA) offers univer-\ngram in cooperation with the Aus-\nThe ADF comprises the Royal\ntralia Council and other cultural\nsity courses in disciplines such as\nAustralian Navy (RAN), the Army\nbodies. The Australia Abroad\nengineering and arts. Other\nand the Royal Australian Air force\nCouncil was established in 1990 to\nofficer training takes place at\n(RAAF). The ADF is commanded\ngive greater drive and direction to\nHMAS Creswell for Navy, the\nby the Chief of the Defence Force\nRoyal Military College of Aus-\nprojecting Australia overseas.\n(CDF) who is supported by a tri-\nAll of Australia's overseas aid\ntralia, Duntroon, for the Army\nservice headquarters in Canberra.\n(more than $1000 million a year in\nand RAAF College Point Cook\nCDF and the Secretary of the De-\nfor the Air Force.\nrecent years) is given in grant form.\npartment of Defence have joint re-\nThe aid program focuses on those\nExtensive technical and ap-\nsponsibility for administration of\nareas in which Australia has par-\nprenticeship training is also pro-\nthe Defence Force.\nvided. Defence offers 600 to 800\nticular expertise, including educa-\nThe ADF is a total force made\ntion, agriculture and infrastructure\nvocational traineeships in over 25\nup of almost 70000 permanent per-\ndevelopment.\nskill categories each year.\nsonnel and more than 28 000 re-\nAustralia contributes to the\nserve personnel. Of the permanent\nDefence self-reliance\neducation in Australia of about 18\npersonnel, about 46 per cent are in\nOur defence policy is based on self-\n000 students from developing\nthe Army, 22 per cent are in the\nreliance. This means that we give\ncountries, mostly at tertiary level.\nNavy and 32 per cent in the Air\npriority to the ability to defend\nThe Australian International De-\nForce. Females make up almost 11\nourselves independently with our\nvelopment Assistance Bureau\nper cent of the permanent force\nown resources, within the frame-\n(AIDAB) pays about $80 million a\nand almost 16 per cent of the re-\nwork of our alliance and regional\nyear to subsidise this program. A\nserve force. Service personnel are\nassociations.\nnew education policy based on\nsupported by some 25000 civilians\nThe strength of defence self-\nmerit and equity is providing more\nin the Department of Defence who\nreliance depends on making the\nopportunities for students from\nperform a range of tasks including\nmost of this nation's financial, in-\npoorer and isolated developing\npersonnel and financial adminis-\ndustrial, technological and human\ncountries.\ntration, equipment acquisition, en-\nresources.\n24\n25\nThe Australian Government's\npossesses a wide range of capabili-\nThis will mean more efficient\nThe RAAF's 20 P3C Orion air-\n1989-90 Budget allocated $8670\nties that are needed at each level of\noperations in northern and west-\ncraft and the Jindalee Over-the-\nmillion to defence, representing 9.5\ndefence in depth.\nern coastal waters and on exer-\nHorizon-Radar (OTHR) form the\nper cent of total Budget outlay and\nThe fleet currently includes:\ncises in South East Asia.\nbasis of a surveillance system which\n2.3 per cent of gross domestic\nthree guided-missile destroyers\nThe Army\nwill cover our vast northern ap-\nproduct.\n(DDGs), four guided-missile frig-\nates (FFGs) five destroyer escorts\nSufficient Black Hawk helicopters\nproaches. Jindalee, now being de-\nare being brought into service so\nveloped in Australia, can detect\nDefence strategy\n(DEs), six Oberon-class subma-\nThe development of the ADF to-\nrines, 15 Fremantle-class patrol\nthe Army will have the ability to\naircraft and ships at great distances,\ntransport a company group of 150\ngiving early warning of their ap-\nwards the next century in line with\nboats and more than 20 other ves-\nsels, including minehunters, takers,\ntroops over a radius of 160km in\nproach. The Orions can also detect,\ndefence self-reliance is based on\noceanographic craft, utility ships\none operation. The Army also is\nidentify and, if necessary, attack\nthe strategy of defence in depth\ngetting new equipment such as the\nsubmarines and surface ships, us-\nwhich can be thought of as having\nand tugs.\nAUSTEYR rifle, 105mm Hamel\ning torpedoes and Harpoon mis-\nthree layers.\nThe RAN is acquiring eight\nnew Australian-built ANZAC\nfield guns, bridging equipment and\nsiles. An Orion aircraft can remain\nThe first is intelligence and\ndisruptive-pattern camouflage\nflying for over 12 hours and sweep\nsurveillance so that we can moni-\nfrigates to replace the destroyer\nuniforms to allow for more effec-\nup to 647 000 square kilometres of\ntor our region closely and watch\nescorts. In addition, six new sub-\nocean.\nmarines, known as the Kockums\ntive operations. Other equipment\nthe ocean and airspace to our north,\nType 471, are being constructed\nused by the Army includes Leop-\nThe RAAF's F-111C and F/A-\nfor an enemy approach.\nin South Australia, to replace the\nard tanks and M113 armoured per-\n18 Hornet are both strike aircraft,\nThe second layer is strike and\nsonnel carriers.\nand the Hornets also form an in-\ninterdiction - the interception of\nOberon submarines from the mid\nReserve units recently have\nterceptor fighter force against en-\nhostile forces detected in our sea\n1990s. They will be the most ad-\nand air approaches.\nvanced conventional submarines\nbeen incorporated more effectively\nemy aircraft. Both can fire the\nin the world. Another two FFGs\ninto the Army, and they now have\nHarpoon anti-shipping missile.\nThe third is land and inshore\nnew roles in northern surveillance\nThe RAA Foperates the Boeing 707,\ndefence, which requires a flexible,\nare being built in Australia and\nand the protection of facilities in\nthe C130 Hercules and the Caribou\nhighly mobile army with air and\nwill come into service in the 1990s.\nemergencies.\nas transport aircraft.\nnaval support able to provide for\nOther new equipment being\nIt is planned to base some\nThe RAAF VIP transport fleet\nthe immediate protection of Aus-\nbuilt in Australia includes 16 new\nregular units permanently in the\nhas been re-equipped with Falcon\ntralian interests against enemy in-\nSeahawk multi-role helicopters\nnorth. The 2nd Cavalry Regiment\n900 aircraft. Four of the Boeing\ncursion in our vast northern areas.\nwhich will be able to operate with\nis scheduled to move to the North-\n707s are being modified so that\nThe success of defence self-re-\nthe FFGs and the ANZAC frigates.\nern Territory in 1992.\nthey can refuel aircraft in mid-air,\nliance depends on a high standard\nThe Fleet's main base is in\nwhich will extend greatly therange\nof human skills and the right mix of\nSydney, but the new base at\nRoyal Australian Air Force\nof aircraft such as the F/A-18.\ntechnology.\nHMAS Stirling near Perth will\nThe Royal Australian Air Force\nThe RAAF provides vital mo-\nallow the RAN to operate as a\n(RAAF) operates modern fighter,\nbility for the Army in land opera-\nRoyal Australian Navy\ntwo-ocean navy - in the Indian\nbomber, surveillance, support,\ntions. The Hercules is a versatile\nThe Royal Australian Navy (RAN)\nOcean as well as in the Pacific.\ntransport and trainer aircraft.\ntransport aircraft and can carry al-\nHousing construction is a key\nelement of economic activity.\n27\nstores and equip-\nActivity\non\noutback\nland-\nThe Australian economy recovered\nfly over 6000 km\nstrongly from the recession of the\nThe Caribou\nearly 1980s but the external deficit\nloads over shorter\nThe Economy\nincreased after the downturn in\nconduct paratroop\ninternational commodity prices in\nAustralia's economy has under-\nthe mid-1980s.\nperates from bases\ngone considerable diversification\nIn 1987-88 and 1988-89 there\ncapital cities and\nand expansion during the past 30\nwas a marked increase in Austral-\nbases being\nyears.\nia's terms of trade and private final\nhern\nAustralia.\nBefore World War II, Australia\ndemand rose strongly. Real GDP\ndepended largely on primary pro-\n(adjusted for terms of trade) rose\nindustry\nduction, but the demands of the\n6.2 per cent and 6.4 per cent re-\nheavily on Aus-\nwar and a strong post-war immi-\nspectively. This strong growth,\nnew\nequipment,\ngration program spurred industrial\nparticularly in business fixed in-\noverhaul and\nand economic growth.\nvestment, resulted in an increease\nturn, these activi-\nThe manufacturing sector grew\nin the current account deficit.\nthe\ndevelopment\nparticularly rapidly after the war.\nIn 1989-90, as a consequence of\nin Australian\nIn the past 20 years the main ex-\na tight policy stance by the Gov-\nnefits for exports.\npansion has been in the tertiary\nernment, the withdrawal of the\nnew\nequipment\nsector. During this time, consid-\nterms-of-trade stimulus and a\nthe new subma-\nerable investment has also taken\ndownturn in the construction sec-\nships, have lo-\nplace in export-oriented mining\ntor, growth in private final demand\nper cent or more.\nand energy projects.\nslowed significantly. GDP growth\nhe Jindalee Over-\nAlthough reliance on rural\n(adjusted for the terms of trade)\nalso exploit\nproduction has diminished over\nslowed to 2.9 per cent with through-\ninventions of\nthe years, Australia is still an im-\nthe-year growth rates indicating a\nscientists.\nportant producer and exporter of\nmore significant slowdown. The\nfarm products. It leads the world\ncurrent account deficit, while\nin wool production and is a sig-\nhigher in 1989-90 as a whole, began\nnificant supplier of wheat, barley,\nto fall over the course of the year.\ncoal, iron ore and sugar.\nRural industries account for\nInflation\nabout four per cent of production,\nInflation rose sharply in the early\nmining contributes about seven per\n1970s and eased only gradually\ncent, manufacturing about 17 per\nover the next decade. It rose again\ncent and the tertiary sector the rest.\nin the mid-1980s to eight to nine\n28\n29\nper cent in the wake of the depre-\neconomy. Those sectors which\nthroughout most of the 1970s and\nIn the September quarter of\nciation of the Australian dollar as\nfaced the strongest demand in 1988-\nearly 1980s. The Accord thereby\n1990, average weekly earnings for\ncommodity prices fell. In 1989-90,\n89 - construction, manufacturing\ncontributed importantly to the very\nfulltime adult employees were $577\ninflation rose to 8 per cent in re-\nand wholesale and retail trade -\nstrong growth in employment and\n($477 for all employees).\nsponse to rising mortgage interest\nwere also the sectors where pres-\nthe recent surge in investment. The\nand consumer credit charges. This\nsures eased the most in 1989-90.\nshare of non-farm income ac-\nBalance of payments\ncompares with the 7.3 per cent in-\nThe unemployment rate fell to\ncounted for by profit is at histori-\nThe balance of payments tradition-\ncrease recorded in both 1987-88 and\n6.2 per cent in 1989-90 from 6.6 per\ncally high levels.\nally has comprised a current ac-\n1988-89. Inflation rates in 1989-90\ncent in 1988-89, although it rose\nWages policy increasingly has\ncount deficit largely financed by a\ntended to slow in line with the\nduring the course of the year.\ntaken on the role of a catalyst for\nnet inflow of private capital. This\nslowing economy.\nproductivity improvement and la-\nreflects Australia's position as a\nProfits and wages\nbour market reform: economy-\nnet capital importer drawing on\nThe Labour market\nOver the past seven years the Prices\nwide wage increases linked to\nforeign savings to allow faster de-\nThe labour market deteriorated in\nand Incomes Accord between the\ninflation have given way to wage\nvelopment of domestic resources.\n1982-83 but wage restraint contrib-\nGovernment and the Australian\ndetermination arrangements\nIn 1989-90, the current account\nuted to a sharp improvement in\nCouncil of Trade Unions (ACTU)\nwhich place greater emphasis on\ndeficit increased by $3.2 billion to\nemployment generation from 1983-\nhas played a crucial role in un-\nnegotiations at a more decentral-\n$21.2 billion, or from 5.3 per cent to\n84 to 1985-86. The strength of de-\nwinding the fundamental wages/\nised level.\n5.7 per cent of gross domestic\nmand also worked to maintain the\nprofits imbalances prevalent\nUnder the latest Accord agree-\nproduct. The merchandise trade\ngrowth in opportunitiesin 1987-\nment there were tax cuts and a $12\ndeficit fell from $3.9 billion in 1988-\n88 and 1988-89 and into 1989-90.\nRate of Inflation\na week wage increase (for all work-\n89 to $3.3 billion in 1989-90. The net\nIn 1989-90, employment\ners covered by awards) subject to\nservices deficit increased from $3.1\n1983-84\n6.9\ngrowth slowed marginally in re-\nunion commitments to continue the\nbillion in 1988-89 to $4.1 billion in\nsponse to a slowing economy, ris-\n84-85\n4.3\nrestructuring of awards on pay\n1989-90.\ning 3.8 per cent compared with 4.1\nand conditions of employment so\nper cent in 1988-89. During the\n85-86\n8.4\nthey meet the modern competitive\nFiscal policy\nyear, however, labour-market\nrequirements of industry. It will\nThe Federal Government an-\n86-87\n9.3\npressures eased substantially.\nplay a vital role in the development\nnounces its budget of revenue and\nEmployment growth eased from a\n87-88\n7.3\nof a more flexible and skilled\nexpenditure in August each year.\npeak of 4.9 per cent over the year to\nworkforce and more efficient forms\nThe Federal Budget covers the fi-\nthe September quarter 1989 to 2.5\n88-89\n7.3\nof work organisation. As well, there\nnancial year starting on the pre-\nper cent over the year to the June\n89-90\nis scope for additional increases\nceding 1 July and ending on the\n8.0\nquarter 1990.\nnegotiated at the enterprise level\nfollowing June 30. It must be passed\nConsistent with the sectoral\n0\n5\n10\n15%\nbased on achieved increases in\nby both Houses of Parliament. The\npattern of output, the easing in la-\nFigures for 1983-84, and 84-85 have\nproductivity. This will provide\nGovernment may also announce\nbour-market pressures during\nbeen adjusted to take into account the\nfurther impetus to improved flex-\nsome initial budgetary measures,\n1989-90 was not uniform across the\neffects of the introduction of Medicare\nibility and productivity.\npopularly known as a 'mini-\n30\n31\nBudget', just before the beginning\ncent of GDP, a fall of 6.5 percentage\nCapital gains tax\nmajority of industry sectors, pro-\nof the financial year.\npoints since 1983-84.\nAs part of the income tax system, a\nposals are approved readily unless\nThe six State and two Territo-\nAs a result of fiscal restraint,\ncapital gains tax is levied on the\njudged contrary to the national in-\nrial governments also present an-\nthe net public sector borrowing\nrealised gains made on assets pur-\nterest. The policy is administered\nnual budgets, usually soon after\nrequirements (including public\nchased on or after 20 September\nin a practical manner and is based\nthe Federal Budget has been an-\nenterprises and State and Local\n1985. An allowance is made for\non guidelines rather than inflex-\nnounced. The States receive\ngovernments) has fallen from a\ninflation before gains are taxed.\nible rules.\nslightly less than half their revenue\npeak of 7.1 per cent of GDP in 1983-\nIndividuals pay the tax at the rel-\nInvestment is restricted in civil\nfrom the Federal Government.\n84 to 0.1 per cent in 1989-90.\nevant personal rate and companies\naviation, the media, banking, min-\nTight fiscal policy has reduced\npay the tax at the company tax rate.\nerals (including uranium) and some\nthe Federal Budget deficit from a\nCompany taxation\ncategories of real estate. Specific\npeak of 4.1 per cent of GDP in 1983-\nCompanies, other than non-profit\nDouble taxation agreements\nAustralian equity guidelines (usu-\n84 to a surplus of 2.2 per cent of\ncompanies, are liable to pay tax if\nIn addition to unilateral relief from\nally 50:50) apply to new mineral\nGDP in 1989-90. The Budget for\nthe taxable income is $1 or more.\ndouble taxation provided by a\nprojects, excluding oil and gas.\n1990-91 provides for a fourth suc-\nThe rate of tax payable by compa-\nforeign tax credit system, Australia\nThese guidelines are flexible.\ncessive surplus.\nnies was reduced from 49 per cent\nhas in force comprehensive agree-\nAround 32 per cent of total\nto 39 per cent for 1988-89 and be-\nments for the avoidance of double\nBanking\noutlays is allocated to social secu-\nyond. An imputation system of\ntaxation with Britain, the United\nThe banking system comprises the\nrity, 10 per cent to defence and 6.5\ncompany taxation, introduced from\nStates, Canada, New Zealand,\nReserve Bank of Australia (the\nper cent for public interest debt.\n1 July 1987; has eliminated the\nSingapore, Japan, Germany, the\ncentral bank) and 32 commercial\nTransfers to State and Local gov-\nprevious double taxation of dis-\nNetherlands, France, Belgium, the\nbanking groups. The Australian\nernments account for about 29 per\ntributed income. Distributed in-\nPhilippines, Switzerland, Malay-\nfinancial environment underwent\ncent of Federal outlays, with about\ncome is effectively taxed only once\nsia, Sweden, Denmark, Norway,\nconsiderab change in the 1980s as\nhalf being for specific purposes and\nby crediting the company tax paid\nthe Republic of Korea, Ireland,\nthe Government deregulated fi-\nhalf for general purpose assistance.\non the underlying income against\nMalta, Italy, Finland, Austria,\nnancial markets. In December 1983,\nSince 1985, the Government\nthe income tax payable by domes-\nPapua New Guinea and Thailand\nthe exchange rate was floated and\nhas introduced a range of tax re-\ntic shareholders. Non-resident\nAgreements with China, Sri Lanka\nmost exchange controls abolished.\nforms resulting in a broadening of\nshareholders who receive franked\nand Fiji have been signed but have\nAlmost all borrowing, lending and\nthe tax base and a marked increase\ndividends (where company tax has\nnot yet entered into force.\ninterest controls on the banking\nin compliance, with a consequent\nbeen paid on the distributed in-\nsystem were removed. Having\nboost to revenue. The principal\ncome) are exempt from dividend\nForeign investment\nsought applications from both do-\nreason behind the significant im-\nwithholding tax. A rebate of tax is\nAustralia's foreign investment\nmestic and foreign interests to es-\nprovement in the financial posi-\ngenerally allowable for all divi-\npolicy is framed with a view to\ntablish new banks, banking licences\ntion of the Federal Government has\ndends paid between domestic\nencouraging foreign investment in\ntooperate in Australia were granted\nbeen continued reductions in out-\npublic companies and for franked\nAustralia and ensuring that such\nto 15 foreign banks, in some cases\nlays. In 1990-91, Federal spending\ndividends received by private do-\ninvestment is consistent with the\nin joint ventures with Australian\nis estimated to represent 23.5 per\nmestic companies.\nneeds of the community. In the\npartners.\n32\nCotton is an important\nexport commodity.\n33\nBanks from nine other coun-\nhad fallen by over 5 percentage\ntries now operate in Australia: the\npoints from their recent peaks,\nUnited States, Britain, New Zea-\nwhile prime rates had declined by\nland, France, China, Germany, Ja-\n4.5 points to around 16 per cent.\npan, Hong Kong, and Singapore.\nExchange rates\nMonetary policy\nAustralia moved to a floating ex-\nMonetary policy in Australia is\nchange rate system in December\nTrade\nimplemented by the Reserve Bank\n1983. Under this system, market\nforces determine the value of the\nAustralia is a middle-level trading\nof Australia. Although the Aus-\nnation, about 20th in the world in\ntralian Government has ultimate\nAustralian dollar at any given time.\nterms of the value of imports and\nresponsibility for monetary policy,\nthe central bank has an independ-\nStructural policy\nexports. These each comprise about\nent charter to implement those\nAustralia has made significant\n15 per cent of the national income.\npolicies that best contribute to price\nprogress in microeconomic reform,\nTraditionally, Australia has\nstability, the stability of Australia's\nprogressing on a broad front in-\nimported a wide range of goods\ncurrency, the maintenance of full\ncluding reform of financial markets,\nand services from a large number\nemployment and the economic\ntaxation, primary and manufac-\nof countries, and has financed these\nturing industry protection, avia-\nimports mainly through exports of\nprosperity and welfare of the\nAustralian people. Monetary\ntion, telecommunications and\nprimary commodities. Although\ngovernment business enterprises.\ntheir share in total export values is\npolicy is conducted on a day-to-\nday basis by the Reserve Bank\nThe reform has set out to achieve\ngradually declining, commodities\nhigher sustainable growth in living\nstill dominate the export base,\ndealing in Federal Government\nstandards through improved effi-\ncomprising about two-thirds of\nSecurities to influence conditions\nin short-term professional money\nciency and economic performance.\nexport revenues in 1990. Australia\nmarkets.\nThe Government has estab-\nis a key world supplier of many\nlished the Industry Commission as\nimportant commodities.\nFinancial conditions\nan independent advisory body to\nChief among these are coal,\nInterest rates have fallen substan-\nundertake inquiries in areas such\nwool, wheat, alumina, beef, iron\ntially over the last year, reversing\nas energy generation and distribu-\nore and sugar. During the 1980s\nmuch of the sharp tightening in\ntion, rail transport, the automotive,\nthere was some development of\nmonetary policy over 1988 and\ndairy and sugar industries, and\nnew export sectors in resource ar-\n1989. During 1990, monetary policy\nmining and minerals processing.\neas such as gold, aluminium, gas\nwas eased five times in response to\nand crude oil. There was signifi-\nfalling inflation and slowing eco-\ncant downstream processing in\nnomic conditions. As a result, at\nsome important export sectors.\nthe end of October 1990, cash rates\nAustralian greasy wool is increas-\ningly processed locally and ex-\nMining uranium by\n34\nthe open cut method at\n35\nthe Ranger mine.\nported as scoured wool and baux-\nmarket, receiving just over a quar-\nite shipments have been replaced\nter of total exports in the 1980s. The\nby exports of processed alumina\ndynamic Asian economies (Hong\nand aluminium.\nKong, Singapore, Taiwan and the\nIn the last five years, export\nRepublic of Korea) and the coun-\nvolumes have grown by over 30\ntries of ASEAN are Australia's\nResources\nper cent, dominated by 80 per cent\nfastest growing markets. The\ngrowth in elaborately transformed\nUnited States, New Zealand,\nand energy\nmanufactures (ETMs) and 50 per\nUnited Kingdom, China, Germany,\nAustralia has become one of the\ncent growth in services. Within\nItaly, France and Canada are also\nworld's major producers of min-\nETMs, the largest contributions to\nkey trading partners.\nerals and metals. It has major de-\ngrowth came from ADP equip-\nAustralia promotes and facili-\nposits of bauxite, black and brown\nment, transport equipment, in-\ntates trade through its multilateral,\ncoal, mineral sands, gold, lead, zinc,\ndustrial machinery, glass and clay\nregional, bilateral and domestic\niron, copper, nickel, manganese,\ngoods, professional and scientific\neconomic policies. It aims to con-\nuranium and diamonds.\nequipment, dyestuffs and phar-\ntribute to the strongest possible\nA major producer and exporter\nmaceuticals. Australia is develop-\nmultilateral outcomes through the\nof energy resources and one of only\ning a competitive edge in\nGATT. Australia has a particular\nfive net energy exporters in the\nhigh-technology engineering ex-\ninterest in freer and fairer agricul-\nOECD, Australia is the world's\nports such as scientific/medical\ntural trade; in this context, Aus-\nlargest exporter of coal and a major\nequipment, (including photo, op-\ntralia initiated the Cairns Group of\nexporter of uranium, and exports\ntical and timing equipment), tel-\nFair Trading Agricultural Export-\nsignificant quantities of light crude\necommunications and aerospace.\ners, comprising 14 countries of the\noil (although it imports heavy\nTourism dominates services\nAsia-Pacific region, Latin America\ncrude). It exports increasingly large\nexports and this sector is attracting\nand East Europe.\nquantities of liquefied natural gas.\nlarge amounts of foreign invest-\nMore recently, Australia initi-\nment. Australia is also looking to\nated the Asia Pacific Economic\nCrude oil and natural gas\ndiversify its services exports into\nCooperation (APEC) process, a\nSubstantial oil and gas discoveries\nareas such as education (training\nhigh-level consultative process de-\nhave been made in Australia in the\nand consultancy), health (medical\nsigned to identify and project more\nlast three decades. There is good\nservices) and information (devel-\neffectively the common interests of\npotential for more, as many sedi-\noping computer software).\nregional economies in an open\nmentary basins have been explored\nAustralia's trade with the\nmultilateral trading system and to\nonly lightly. Discoveries in recent\ncountries of the Asia-Pacific region\nfacilitate the economic dynamism\nyears in the Timor Sea and off\nhas expanded rapidly. Well over\nof the region through a practical\nWestern Australia underscore this\nhalf its exports are destined for\nprogram of economic cooperation\npotential and tests of new explora-\nAsia; Japan is its largest export\nat the sectoral level.\ntion concepts are encouraging.\nContinuous rod coiling of copper adds\n38\nvalue to the export of this mineral.\ntralia. More than half the country's\nbre optics. The industry has been\noutput of refined copper is ex-\ndeveloping projects for further\nported. Total annual copper pro-\nprocessing producing, for exam-\nduction is about 250 000 tonnes.\nple, titanium dioxide pigment,\nhigh-purity zirconia and rare\nNickel\nearths.\nAustralia ranks third in world mine\noutput of nickel, and exports nearly\nOther minerals\nallofit. In Western Australia, where\nThe manganese mine on Groote\neconomic resources of nickel sul-\nEylandt, in the Northern Territory,\nphide ore are large, the ore is\nis one of the world's largest mines\nprocessed to nickel matte and metal\nand Australia is one of only three\nfor export. Nickel laterite ore mined\nmajor world exporters of the min-\nin Queensland is processed into\neral. Ore and refined forms (ferro-\ndertakings and one of the world's\npropriate mix of energy supplies to\nalloys and electrolytic manganese\nlarger irrigation and power\nmeet its changing needs.\nnickel oxide but the reserves are\ndioxide) are also produced. Tin\nprojects. Thescheme, which diverts\nThe nation is committed to\nnearing exhaustion.\nore is another mineral produced,\nwater inland from coastal water-\ncontinued research into and devel-\nGold\nmost of it exported to Malaysia for\nsheds, has seven power stations, a\nopment of renewable energy, en-\nAustralia is the third largest pro-\nrefining.\npumping station, 16. large and\nergy conservation, efficient energy\nducer of gold in the Western world,\nAustralia is also the world's\nmany smaller dams, 145km of\nuse and alternative fuels. It main-\nwith production in 1989-90 reach-\nlargest producer by volume of\ntunnels and 80km of aqueducts,\ntains a major geological and geo-\ning a record 223 tonnes compared\ndiamonds and the world's leading\nand took 25 years to build. Its\nphysical research and investigation\nwith only 17 tonnes in 1980. Exports\nproducer of sapphires and opals.\ngenerating capacity is 3740 mega-\nprogram.\nin 1989-90 were valued at $2.9 bil-\nwatts.\nAustralia is an active member\nlion. The rapid growth of the\nElectricity\nof the International Energy Agency.\nEach state has its own pattern of\nEnergy policy\nAustralian gold industry in the\nDomestically, there is consid-\n1980s was based on an attractive\nelectric power development. Elec-\nEnergy policy in Australia is for-\nerable consultation on energy\ngold price and the development of\ntricity is generated mainly by\nmulated to be consistent with ma-\nmatters. The main advisory and\ninnovative exploration, production\nburning coal; natural gas and hy-\njor economic, industrial and social\nconsultative bodies are: Austral-\ndro-electric power are other\nobjectives and its key goals are:\nand management techniques.\nian Minerals and Energy Council,\nsources.\nsecurity of overall energy supplies;\nNational Energy Consultative\nMineral sands\ndevelopment of the energy\nCouncil, National Energy Research,\nAustralia is the leading producer\nHydro-electric energy accounts for\nexports sector; and\nDevelopment and Demonstration\nof rutile, zircon, monazite and al-\nabout a ninth of all electricity gen-\nefficiency in the domestic energy\nCouncil and the National Oil Sup-\nluvial ilmenite. All of these miner-\nerated in Australia. The Snowy\nsector.\nplies Advisory Committee.\nals have high-technology\nMountains hy droelectric schemei\nThe policy is intended to pro-\napplications in aerospace work,\nsouth-east Australia is one of the\nvide the right framework to ensure\nadvanced ceramics, lasers and fi-\ncountry's greatest engineering un-\nthat Australia has access to the ap-\nARAFURA SEA\nTIMOR SEA\nDARWIN\nNhulunbuy\n(Gove)\nWelps\n10am\n1130aml Noon\nGULF OF\nCARPENTARIA\nINDIAN OCEAN\nPort Hadlend\nDempler\nExmouth\nCemeryon\nGeraldton\nPERTH\nGREAT AUSTRALIAN BIGHT\narea\nBunbury\nsperance\nA\nLAI\nPort Lincoln\nSYDNEY\nlibany\nWollongong\nINDIAN OCEAN\nBERRA\nSOUTHERN OCEAN\nMount Gamble\nBega\nGeel\nSale\nTARMAN SEA\nBumle\nnport\nTASMA\nunceston\n2\nHOB\nFashion clothing for children\nhas been well accepted on\n43\nexport markets.\nmestic innovation has resulted in\nAerospace industry\noverseas licensing of many Aus-\nThere are about 80 companies in\ntralian-devised products and\nthe industry employing about 14\nprocesses.\n000 Industry association figures\nTertiary sector\nindicate significant growth in ac-\nThe tertiary or service sector is the\ntivity in the latter 1980s with turno-\nManufacturing\nlargest segment of the Australian\nver in 1988 of approximately $845\neconomy and it has been growing\nmillion. Of this, nearly $400 mil-\nindustry\nin importance relative to other\nlion represented export sales.\nmajor sectors in recent decades.\nIn little more than a generation\nThe major employer in the sector is\nChemicals and plastics\nAustralians have cast aside their\nretail and wholesale trade, followed\nThe Australian chemicals and\nformer image as a basically rural\nby community services, finance,\nplastics industries use local and\nsociety and embarked on an era of\nproperty and business services and\nimported materials to produce a\nrapid industrial development.\nthe construction industry. Em-\nwide range of intermediate and\nToday, Australia has a broad in-\nployment in the sector accounts for\nend products. These include pet-\ndustrial base using advanced tech-\nEUS!\nabout 78 per cent of total Austral-\nrochemicals, fertilisers, plastics,\nnology. Manufacturing ranges\nian employment, an increase from\npharmaceuticals, agricultural\nfrom fashion garments to food,\n64 per cent in the mid-1960s. The\nchemicals, paints, soaps and deter-\ncomplex electronics to household\nsector's share of the GDP is about\ngents.\nappliances, base metals to preci-\n67 per cent.\nsion instruments, oil refining and\nElectrical and\nto plastics.\nSmall business\nelectronic industries\nAided by Australia's political\nA small business can generally be\nThe Australian electrical industry\nstability, rich natural resources,\ndefined as one which employs up\nmeets a substantial part of local\nsteady population growth and\nto 100 people in manufacturing in-\ndemand for domestic and indus-\nsubstantial capital investment from\ndustries and up to 20 people in\ntrial products. Australia produces\nwithin the country and overseas,\nnon-manufacturing industries.\na wide range of electrical goods,\nmanufacturing industry accounts\nThere are 600 000 small busi-\nincluding motors, transformers,\nfor 17 per cent of gross domestic\nness in Australia and an additional\ndomestic appliances, control gear\nproduct and more than 20 per cent\n150 000 in the farming sector. They\nand cables. The electronics indus-\nof exports. One-sixth of the coun-\naccount for 96 per cent of all firms,\ntry supplies much of the local\ntry's workers are employed in\nhalf of private sector employment\nmarket for telecommunications\nmanufacturing industry.\nand a third of all employment in\nequipment. Other products in-\nMany Australian companies\nAustralia. It is estimated 86 per\nclude advanced scientific and de-\nmanufacture overseas products\ncent of all manufacturing firms in\nfence electronics, small computers\nunder licence. A high level of do-\nAustralia are small businesses.\nand terminals and consumer au-\nHigh technology design PSZ valves are sought for\nhealth and oil industry applications around the world.\n45\nsisted through a bounty on ships\nrails, rods, wire, coated and\nbuilt in Australia and through im-\nuncoated steel sheets, and tinplate.\nport restrictions on second-hand\nBasic steel is produced at Port\nvessels.\nKembla and Newcastle in New\nProcessed food\nSouth Wales, and at Whyalla in\nSouth Australia. Raw steel output\nAustralia enjoys the climatic and\nin 1989-90 was 6.7 million tonnes.\ngeographic environment necessary\nfor the cultivation and processing\nPaper and pulp\nof virtually all types of food prod-\nProduction of paper and\nucts, and food processing is the\npaperboard including newsprint\nlargest single segment of manufac-\nwas about 1.87 million tonnes in\nturing industry in the country, em-\n1989-90. This represented about 70\nploying 176 364 people. Turnover\nper cent of apparent local con-\nin 1988-89 totalled $3 billion.\nsumption. Wood pulp production\ntotalled one million tonnes.\nMotor vehicles\nThe motor vehicle industry (in-\nAluminium\ndio equipment. Demand for\ncluding the component sector) oc-\nThe aluminium industry includes\nmanufacturing techniques and\ncupies an important place in\ntwo fully integrated (bauxite/\ncomputers, electronic components\nproject management skills. Most\nand consumer electronic equip-\nAustralian manufacturing indus-\nalumina/aluminium/ semi-\ncompanies in the industry can work\ntry and employs more than 65 000\nfabricating) groups, Comalco and\nment is mostly supplied by imports.\non a range of general engineering\npeople.\nAlcoa of Australia, while a third\nThe industry employs about 60000\nprojects. The industry employs\nIn 1989, 448 514 new cars and\nproducer, Alcan Australia, operates\nand is increasingly export oriented.\nabout 85 000 (eight per cent of total\nstation wagons were registered.\na smelter and semi-fabricating\nEngineering\nmanufacturing employment) and\nAnother 158 985 utilities, panel\nplants. A fourth producer, Tomago,\nhas an annual turnover of about\nA wide range of heavy plant - such\nvans, trucks and buses were also\na joint venture comprising Euro-\n$5500 million.\nas oil rigs, power stations and min-\nregistered during the year.\npean and Australian interests, is\ning equipment - is produced in\nShipbuilding\nconfined to aluminium smelting\nIron and steel\nAustralia. Lighter products include\nprincipally for export.\nSmall to medium-sized ships are\nmachine tools, industrial robots,\nAustralia's biggest company, The\nIn 1990, production of alu-\nconstructed in a number of Aus-\ndie castings, forgings and many\nBroken Hill Proprietary Company\nminium was 1.27 million tonnes.\ntralian shipyards, including small\nLimited (BHP), is the predominant\ntypes of measuring and recording\nExports in 1989 reached 935 000\ntrading vessels and specialised\nproducer of iron and steel products\ninstruments. Major engineering\ntonnes, more than 70 per cent of\nvessels such as tugs, dredges,\nin Australia. BHI's various divi-\nprojects in Australia in recent years\nproduction, and valued at about\nbarges, fishing vessels, passenger\nsions produce nearly the whole\nhave given local industry opportu-\n$2100 million.\nferries and oil rig service vessels.\nrange of steel products, including\nnities to develop new technology,\nThe shipbuilding industry is as-\nplate, billets, structural shapes,\nAustralia's fine wool is keenly\n47\nsought for high quality\nclothing and textiles.\nand live sheep $2869 million; wheat\nabout four per cent to gross domes-\n$2507 million; barley $344 million;\ntic product.\nrice $179 million; other grains and\nIn highly urbanised Australia,\noilseeds $320 million; sugar $1050\nthe relative importance of the agri-\nmillion; dairy products $692 mil-\ncultural sector has been declining\nlion; raw cotton $540 million; fruit\nbut agricultural industries remain\nPrimary industry\nand wine $299 million.\nlarge earners of foreign exchange\nThe gross value of rural pro-\nand account for about 30 per cent\nThe ravages of drought, bushfire\nduction in 1989-90 was $23 877\nof total export income.\nand flood have not prevented the\nmillion. Wool accounted for about\nworld's driest inhabited continent\n$6072 million; livestock slaughter-\nSheep and wool\nfrom becoming an important pro-\ning $5640; wheat $2838 million;\nAustralia is the world's largest\nducer and exporter of agricultural\nbarley $710 million; other grains\nproducer of the fine wools used in\nproducts.\nand oilseeds $961 million; milk\nclothing. The wool is produced by\nAlthough about a third of the\n$1787 million; fruit $1190 million;\nabout 76 000 woolgrowers owning\ncountry is unsuitable for any form\nvegetables $1223 million; cotton\nabout 175 million sheep grazing on\nof agricultural or pastoral use and\n$568 million.\nabout half the area of the continent.\nanother third supports only pas-\nAbout four-fifths of Austral-\ntoral activity, Australia leads the\nAgricultural output\nia's sheep are the merino breed,\nworld in wool production and is a\nThere are about 127 500 properties\nthe best fine wool sheep, and Aus-\nsignificant supplier of cereals, dairy\nin Australia which have an esti-\ntralian wool is distinguished by its\nproduce, meat, sugar and fruit.\nmated value of agricultural opera-\nconsistency of fibre. Ninety-seven\nTechnical innovation and re-\ntions of $20 000 or more. These\nper cent of Australian wool is ex-\nsearch, particularly in soil fertility,\ncover about 470 million hectares,\nported, mainly in the greasy form,\npasture production and crop yields,\nor 61 per cent of the total land area.\nthough up to 20 per cent of the total\nhave helped to cut farm costs and\nIn contrast with many other coun-\nis part-processed. Australia sup-\nopen up new land for cultivation.\ntries, about 90 per cent of all agri-\nplies about half of the wool used in\nAustralia has been able to carry\ncultural land is in its natural state\napparel, and around 30 per cent of\nout commercial farm production\nand is capable only of limited de-\nall greasy wool produced in the\nunder desert and semi-desert con-\nvelopment. This land is used\nworld. The main markets are Ja-\nditions and the techniques and\nmainly for light grazing by cattle or\npan, the Soviet Union, China and\nequipment developed are finding\nsheep. Agricultural production has\nthe EC.\nmarkets in countries with similar\nrisen substantially since the early\nclimates.\n1950s\nMeat\nThe total value of rural exports\nDespite a declining rural la-\nAustralia markets meat in more\nin 1989-90 was $15 144 million.\nbour force, rural output has in-\nthan 100 countries and supplies\nMajor rural exports included wool\ncreased by more than 150 per cent\nthe domestic market where the\nvalued at about $3706 million; meat\nsince 1950-51, and contributes\nconsumption of meat is the third\nPicking grapes that are destined to be\n48\nused in Australian vintage wines.\nhighest in the world at about 100\nPreliminary 1989-90 production is\nkg per person a year. The main\n14.1 million tonnes, and this is fore-\nmeats exported are beef and veal,\ncast to increase to 15 million tonnes\nmutton and lamb. Australia has\nin 1990-91. Wheat-growing is\nabout 24 million head of cattle.\nhighly mechanised and involves\nAustralia has developed strict\nmore than 40 000 farmers in a\nstandards of slaughtering,\nwheatbelt that stretches for 4000\nprocessing, cutting, packing and\nkm through five mainland states.\npresentation of meat.\nThe main markets are China, Egypt,\nFrom the early 1970s until 1984,\nJapan and Iran.\nAustralia was the world's major\nexporter of beef and veal. The EC\nCoarse grains\npassed Australia as the major ex-\nBarley, oats, sorghum, maize and\nporter in 1984. The US remains by\ntriticale are the main coarse grain\nfar Australia's largest customer,\ncrops. Small quantities of rye and\nfollowed by Japan. These two\nmillet are grown. In 1988-89,\nmarkets account for 81 per cent of\nbarley production was estimated\ntotal beef and veal exports. Aus-\nat 4.1 million tonnes; sorghum 0.9\ntralia also exports pigmeat and\nmillion tonnes; oats 1.6 million\npoultry.\ntonnes; maize 202 000 tonnes; and\nQueensland, and the remainder\nWine\ntriticale 163 000 tonnes.\nfrom New South Wales. In 1989-\nWines from Australia have con-\nDairying\nHigh quality products include\nRice\n90, exports of sugar were 2.9 mil-\ntinued to gain acceptance in other\nlion tonnes, the main markets being\ncountries despite very keen com-\nbutter, cheese, processed milk and\nProduction of rice for 1989-90 was\ncasein. Of the $692 million earned\nJapan, Canada, Republic of Korea,\npetition. Sweden is the largest ex-\nestimated at 894 000 tonnes.\nfrom dairy exports in 1989-90, $189\nMalaysia and China.\nport market for Australian wine,\nmillion was from cheese. The in-\nOilseeds\nfollowed by the United Kingdom,\nFruit\nNew Zealand, Japan and the US.\ndustry is located mainly in the\nOilseed production in 1989-90 was\nAustralia exports a variety of fruits,\nAbout 370 million litres of wine\nsouth-eastern region of the main-\nestimated at 773 000 tonnes.\nincluding apples, pears and citrus,\nland and in northern Tasmania,\nOilseeds grown in Australia in-\nwas produced in 1989-90 from a\nand canned, frozen and dried fruit.\nwhere rainfall is ample and fairly\nclude sunflower seed, soyabeans,\nvintage of 544 000 tonnes. The\nAustralia has about 23 million fruit\nState of South Australia produces\nreliable.\ncottonseed, linseed, rapeseed and\ntrees and about 58 000 ha of vine-\nsafflower seed.\nabout 50 per cent of Australia's\nWheat\nyards. In addition, about 123 000\ntotal wine production. Exports in\nSugar\nha of land is devoted to vegetables.\nImproved varieties and manage-\n1989-90 were estimated at 42 mil-\nThe total 1989-90 gross value of\nment techniques have increased\nNearly 95 per cent of Australia's\nlion litres, four times the level of\nyields per hectare. About 9 million\nproduction of almost 28 million\nproduction of fruit and vegetables\nthe mid-1980s.\nwas $2522 million.\nha were sown to wheat in 1989-90.\ntonnes of sugar cane comes from\nAustralia has a highly skilled\nand mobile workforce.\n51\nmembership of 3.4 million The\nnumber of areas, including em-\nAustralian Council of Trade Un-\nployment. It also seeks to elimi-\nions (ACTU) has an official affili-\nnate discrimination involving\nated membership of 160 unions\nsexual harassment.\nLabour\nrepresenting more than 2 750 000\nThe Racial Discrimination Act\nworkers.\n1975 prohibits discrimination in\nand industrial\nemployment on the grounds of\nLabour force\nrace, colour, descent or national or\nrelations\nFor the 12 months ended October\nethnic origin.\n1990, Australia's labour force aver-\nSouth Australia and New\nWorking conditions in Australia\naged 8.43 million or 63.7 per cent of\nSouth Wales have introduced leg-\nare regulated by legislation and by\nthe civilian population aged 15 or\nislation to prohibit discrimination\nindustrial awards. Awards are le-\nmore.\non the grounds of age.\ngal documents made by industrial\nIn October 1990, 6.18 million\ntribunals which set out details of\npeople (79 per cent of the employed\nWorking hours\npay and conditions of employment.\nlabour force) worked fulltime.\nThe standard working week in\nThey have the same role as a collec-\nManufacturing, wholesale and re-\nAustralia has been reduced pro-\ntive agreement in many other\ntail trade, construction and com-\ngressively to 38 hours in most in-\ncountries. Under the Constitution,\nmunity services accounted for 61\ndustries, worked usually from\nthe power of the Australian Par-\nper cent of all full-time workers.\nMonday to Friday. Employees in\nliament to regulate labour relations\nservice occupations are paid more\nis limited to the prevention and\nWages and conditions\n(' penalty rates') when they work at\nsettlement, by conciliation and ar-\nFederal and state industrial tribu-\nweekends.\nbitration, of industrial disputes\nnals set rates of pay and conditions\nextending beyond state limits. State\nof employment for 85 per cent of\nPaid leave\nparliaments can regulate indus-\nAustralian employees covered by\nLegislation or awards give four\ntrial relations within their States.\nawards, determinations or indus-\nweeks paid annual leave to almost\ntrial agreements. Most are mini-\nall employees. Many employees\nAssociations and unions\nmum rates and management and\nreceive an annual leave loading of\nThe conciliation and arbitration\nlabour may negotiate above-award\n17.5 per cent on their pay.\nsystem encourages unionism, op-\nrates. Over-award payments are\nerating on the premise that em-\nwidespread. Award rates are fixed\nLabour market\nployers and employees will be\nwithout regard to the sex of the\nFor the 12 months ended October\nrepresented before tribunals by\nemployee.\n1990, employment grew by 2.6 per\nregistered organisations. Fifty-four\nThe Sex Discrimination Act\ncent. In October 1990, the unem-\nper cent of employees belong to\n1984 seeks to eliminate discrimi-\nployment rate was 7.6 per cent in\nAustralia's 295 trade unions. At 30\nnation, on the grounds of sex,\nseasonally adjusted terms.\nJune 1990, unions had a financial\nmarital status or pregnancy, in a\nThe Science and Technology\n53\ncentre houses working displays\nillustrating scientific principles.\ncomputer hardware and software.\nsearch body. It plans and carries\nAs well as undertaking re-\nout a program of scientific research\nsearch within its own agencies-\nexcept in defence, nuclear energy\nnotably the Commonwealth\nand clinical medicine. It delivers a\nScientific and Industrial Research\nrange of scientific services to the\nOrganisation (CSIRO), the Aus-\nAustralian Government, industry\ntralian Nuclear Science and Tech-\nand the community. CSIRO's work\nScience\nnology Organisation (ANSTO), the\nis directed toward rural, manufac-\nAustralian Institute of Marine Sci-\nturing, communications and infor-\nand technology\nence and the Defence Science and\nmation industries; knowledge and\nTechnology Organisation-the\nmanagement of the natural envi-\nAustralian scientists and research-\nAustralian Government provides\nronment; minerals and energy in-\ners continue to make contributions\nfinancial support for research in\ndustries; and construction\nto the advancement of science and\ntertiary education institutions, re-\nindustries. CSIRO employs about\ntechnology. They have been re-\nsearch institutes and industry.\n7000 people in more than 100 labo-\nsponsible for many advances in\nratories and field stations.\nthe manufacturing, mining and\nNuclear science\nagricultural industries. Australia\nand technology\nSpace\nhas made significant contributions\nThe Australian Nuclear Science\nThe Australian Space Office (ASO),\nin medical science, particularly in\nand Technology Organisation was\nin the Department of Industry,\nimmunological and cancer re-\nestablished in April 1987 as the\nTechnology and Commerce, is the\nsearch. Australian medical scien-\nsuccessor to the Australian Atomic\nnational body responsible for space\ntists have found a cure for peptic\nEnergy Commission. ANSTO is\nindustry development and space\nulcers and are working on detect-\nthe major centre for research and\nscience.\ning molecules that reject trans-\ndevelopment in nuclear scienceand\nplants. Their success with in vitro\nAntarctic research\nrelated technologies in Australia.\ntechniques in countering human\nAustralia carries out specific sci-\nsterility has attracted international\nCommission for the Future\nentific research programs in the\ninterest.\nThe ustralian Government estab-\nAustralian Antarctic Territory.\nAustralia has been a pioneer in\nlished a Commission for the Future\nsolar energy research, and scientists\nin 1985 to study and promote the\nScience and technology\nalso are investigating other poten-\nsocial and economic effects of\nawareness\ntial energy sources, including wind\ntechnological change.\nThe Science and Technology\nand sea power. Australian ad-\nAwareness Program was estab-\nvances in technology include the\nCSIRO\nlished in May 1989 to raise\ndevelopment of an internationally\nThe Commonwealth Scientific and\nawareness of the economic and\naccepted aircraft landing system, a\nIndustrial Research Organisation\nsocial importance of science and\nheart pacemaker, a bionic ear' and\nis Australia's main scientific re-\ntechnology.\n54\nAustralian scientists have\ndeveloped photonics for high\n55\ntechnology communications.\nMeteorology\ntralian National Railways network.\nThe Bureau of Meteorology has an\nAs well, the Federal Government\nimportant role in the World Mete-\nmaintains an interest in all trans-\norological Organisation's world\nport matters and financially assists\nweather watch which has three\nmeteorological centres-in Mel-\nTransport and\nState railway and road construc-\ntion projects.\nbourne, Moscow and Washing-\ncommunications\nIt provides about $1.3 billion\nton-and regional centres\nannually to the States for the con-\nincluding one in Darwin.\nAustralia's vast distances and rela-\nstruction and maintenance of na-\nCooperation\ntively sparse inland population\ntional, arterial and local roads.\nhave always presented major chal-\nFormal bilateral agreements on\nlenges in the development of\nShipping\nscientific and technical cooperation\nefficien transport and communica-\nAustralia trades with about 200\nexist between Australia and the US\ntions systems.\ncountries and territories and annu-\n(1968), India, USSR (both 1975),\nThe most direct air route be-\nally exports almost 260 million\nFederal Republic of Germany\ntween Sydney on the east coast and\ntonnes of freight by sea. Imports\n(1976), China, Japan (both 1980)\nPerth on the west coast is 3200km,\nby sea total almost 24 million\nand Mexico (1981).\nand the most direct route between\ntonnes.\nAstronomy\nDarwin in the north and the most\nAustralia is served mainly by\nOne of the world's largest optical\nsouthern capital city, Hobart, is\nforeign-flag vessels in its overseas\neven further at 3700km. Added to\ntelescopes, the 3.9-metre Anglo-\ntrade. The Australian flag share of\nAustralian Telescope, is operated\nthis problem is the fact that more\ntonnage is about 4.2 per cent.\nat Siding Springs Mountain, New\nthan 60 per cent of the population\nThe Australian National Line\nlive in and around the six State\nSouth Wales, under an agreement\noperates a regular overseas ship-\nbetween the British and Australian\ncapitals.\nping service in five of Australia's\nGovernments. The Australia Tel-\nTransport\noverseas trade routes to Europe,\nescope, opened in 1988, consists of\nJapan-Korea, and South-East Asia\nAustralia's transport system in-\nand New Zealand.\na 64-metre-diameter steerable\ncludes nearly 840 000km of roads,\nparabolic reflector near Parkes,\n240 000km of unduplicated air\nPorts and harbours\nNSW, six steerable and moveable\nroutes and 40 000km of govern-\nAustralian ports are the responsi-\n22m antennas at Culgoora, NSW,\nment railways.\nbility of State government authori-\nand a steerable antenna at Siding\nThe State governments deal\nties and departments or private\nSprings. It is operated as a national\nmainly with roads, ports, intrastate\noperators. Australia has about 70\nfacility by CSIRO Division of\nshipping and railways. The Fed-\nports of commercial significance.\nRadiophysics.\neral Government deals with ship-\nThe main ports serve the State\nping and air transport between\ncapitals and industrial and mining\nStates and Territories and the Aus-\ncentres.\n56\n57\nRailways\nDuring this period there were\n8600 aircraft of all types and about\npostal articles each working day.\nAustralia's railways areowned and\nsubstantial increases in population\n47 000 pilots licensed to fly them.\nTelecom Australia employs\noperated mainly by government.\nand vehicle numbers so that the\nThirty-three international air-\nmore than 89 000 full-time staff. It\nNew South Wales, Victoria,\nreduction in road deaths was a sig-\nlines, including Qantas, operated\noperates 5156 telephone exchanges\nQueensland and Western Australia\nnificant achievement. Neverthe-\nregular services to Australia in 1989.\nserving seven million telephone\nhave their own railway systems.\nless, road crashes are still the largest\nScheduled domestic airlines\nservices with more than eight mil-\nThe metropolitan railways in\nsingle cause of death for Austral-\ncarry about 14 million passengers\nlion telephones.\nAdelaide are owned and operated\nians aged under 45 years.\na year. Regular airline services\nMore than 99 per cent of Aus-\nby the South Australian Govern-\nRoad Transport\nhave been operating since 1921\ntralia's telephones are connected\nment. The Federal Government\nwhen West Australian Airways\nto automatic exchanges.\nRoad transport carries some 75 per\nrailways are run by the Australian\nbegan operations over a 1923km\nThe Overseas Telecommuni-\ncent of Australia's domestic freight.\nNational Railways Commission\nroute linking Geraldton and Derby.\ncations Commission is responsible\nThe industry is highly competitive,\ntrading as Australian National.\nToday domestic airlines cover\nfor public telecommunications\ncomprising small and large opera-\nThree railway gauges are used\nabout 13 760 million passenger-\nservices between Australia and\ntors using diverse vehicle types\nin Australia: 1067mm, 1435mm and\nkilometres a year, linking the capi-\nother countries, its external terri-\nincluding road trains, freighters\n1600mm. Since December 1982,\ntal cities and other main centres of\ntories and ships at sea.\nand smaller vehicles. There is no\nthe mainland capital cities have\npopulation.\nThe commission has a staff of\neconomic regulation of the freight\nbeen connected by a standard-\nindustry although it is subject to\nCommunications\nnearly 2000. Telephone services,\nwhich are available to more than\ngauge (1435mm) line, except for\nsafety regulations administered by\nThe main communication systems\nAdelaide-Melbourne. Privately-\n230 overseas destinations, and telex\nState governments.\n-postal, telegraph and telephone-\nowned railways operate in each\nwere established and have since\nservices provide about 73 per cent\nEnergy in transport\nof revenue. International sub-\nState serving mining, agricultural\nbeen maintained in Australia by\nand industrial areas. The largest pri-\nTransport uses about 70 per cent of\nscriber dialling is available to more\ngovernments.\nthan 180 destinations.\nvate railway operations serve iron-\nfuel sold in Australia.\nSince July 1975, responsibility\nore mining in the north-west of\nSince 1979, incentives have\nfor post and telecommunications\nSatellite system\nWestern Australia. Queensland has\nbeen offered for the conversion of\nhas been vested in two statutory\nAUSSAT Proprietary Limited,\nan extensive tramway network to\nvehicles to liquefied petroleum gas\nauthorities - the Australian Postal\nowned by the Federal Government,\nserve mills in sugar-producing areas.\nand many government and pri-\nCorporation (Australia Post) and\nis the owner and operator of Aus-\nvate fleet vehicles have been con-\nthe Australian Telecommunica-\nRoad safety\ntralia's domestic satellite system.\nverted.\ntions Corporation (Telecom Aus-\nWearing seatbelts, anti-drink driv-\nAUSSAT provides high-quality\ning laws, improved vehicle safety\nAviation\ntralia). Australia Post operates\nradio and television services\nabout 4500 post offices and 6000\nand better roads all have consider-\nand telecommunications links\nIsolated communities and long\nvehicles. It serves about 5.7 million\nto all areas of mainland Australia\nably influenced road safety in Aus-\ndistances between cities have con-\nresidential and 560 000 business\nand associated islands and tel-\ntralia. In 1988, 2888 people were\ntributed to making Australia one\naddresses in Australia. It employs\necommunications links to New\nkilled in road crashes; some 24 per\nof the most air-minded countries\nnearly 35 000 people full-time\ncent fewer than in 1970.\nZealand.\nin the world. There are just over\nand handles about 14 million\nSocial security provides\n59\nallowances for families\nwith children.\nvere disability or retirement-or\nDisabled\nhas been temporarily interrupted,\nThose on pension because of dis-\nas in unemployment or sickness.\nability and those on temporary\nThese payments are subject to an\nsickness payment have access to\nincome and assets test. Certain\nrehabilitation and training to see if\nresidency requirements also have\nthey can return to work.\nSocial Security\nto be met. Pensioners and sickness\nAn allowance is payable to\nbeneficiaries may qualify for pen-\nparents or guardians of a child\nAustralia's involvement in social\nsioner concessions which entitle\nwhose physical, intellectual or\nsecurity began with the introduc-\nthem to a range of concessional\npsychiatric disability requires a\ntion of old-age and invalid pen-\npharmaceuticals and some\nhigh level of daily care and atten-\nsions in 1910. and maternity\noptometrical and health services.\ntion in the family home. A mobility\nallowances in 1912. Social security\nConcessions on government trans-\nallowance is paid to disabled peo-\npayments of this kind, then consid-\nport and telephone rental are also\nple who are employed or engaged\nered radical, gained for Australia\navailable to pensioners.\nin training and are unable to use\nits reputation as a pioneer in public\nFamilies\npublic transport because of their\nwelfare. The main components of\ntoday's social security programs\nPeople who have one or more\ndisabilities. A carer's pension is\nchildren under 16 may receive a\navailable to people providing long-\nare pensions for old people, the\nseverely disabled and sole parents;\nfamily allowance. People who have\nterm care at home to a severely\ncertain dependent students aged\ndisabled pensioner or beneficiary.\nbenefits for the unemployed who\nare seeking work and those tem-\n16 to 24 also may qualify for family\nporarily unable to work because of\nallowance. All family allowances\nill health; and allowances for\nare subject to an income test. Fam-\nfamilies with children. Estimated\nily allowance supplement (FAS)\nexpenditure on social security and\nprovidesa higher level of assistance\nwelfare programs for 1990-91 is\nto low-income working families\nnearly $7487 million. Charitable\nunder a more stringent income test\norganisations historically have\nwhich includes an assets test.\nsupplemented the public social\nHigher rates of FAS are available\nservices, often as innovators and\nfor older children. FAS payments\npioneers in new areas of welfare.\nalso may include an amount for\nrent assistance for families in the\nPensions, benefits\nprivate rental market. Both family\nThe Federal Government provides\nallowance and family allowance\ncash benefits to people whose\nsupplement normally are paid\nsource of income has either\nfortnightly to the mother or female\nceased-for example, through se-\nguardian.\nPre-school education is\nan integral part of the\n61\neducation system.\nPrimary and\ntem through the amalgamation of\nsecondary education\ninstitutions, leading to benefitssuch\nSchooling is scompulsory in Australia\nas a greater range of subjects,\nuntil the age of 15 or 16 (varies be-\ncourses and categories of award,\ntween states). Over 70 per cent of\nbetter credit transfer provisions and\nEducation\nchildren are educated in government\nimproved teaching and research\nfacilities/services.\nschools, where tuition at primary and\nUnder the federal system of gov-\nsecondary levels is free. The majority\nAustralian higher education is\nof Australian children (2 194 355 in\nprovided by 76 institutions. In 1990,\nernment in Australia, state, and\nthere were 299 511 full-time stu-\nterritory governments and non-\n1989) attend government schools. In\n1989, 27.6 per cent of students (837\ndents, 132 852 part-time students\ngovernment school authorities are\nand 52 712 external students. Aus-\nresponsible for providing educa-\n032) were enrolled at non-govern-\ntion services. The Federal Gov-\nment schools.\ntralian higher education institu-\nernment provides supplementary\nSecondary schooling begins in\ntions offer internationally regarded\nfunds in the form of general re-\nyear seven or year eight and con-\ndegrees and postgraduate awards.\ncurrent and capital grants.\ntinues to year 12. The most common\nColleges of technical and fur-\nThe Federal Government plays\ntype of secondary school is the co-\nther education provide training in\nmajor industrial skills as well as\na central role in facilitating coop-\neducational comprehensive or\neration of the national education\nmulti-purpose high school, offer-\ncertificates and diplomas based on\nsystem largely through the Aus-\ning a wide range of subjects and\nvocational training.\ntralian Education Council.\nactivities.\nStudent assistance\nSchools of the Air use two-way\nFunding\nIn 1990, the Government assisted\nradio to provide 'classroom' experi-\nabout 397 000 students at a cost of\nThe Government spent $6565.5\nence for children in the remote parts\nabout $993.7 million.\nmillion on education in 1989-90.\nof Australia even though they remain\nStudent assistance schemes\nEstimated expenditure for 1990-91\nphysically in their own homes.\nis $7486.6 million.\nprovide financial assistance to\nThe National Distance Educa-\nstudents who are financially dis-\nPre-school and child care\ntion Centre, established in June\nadvantaged (AUSTUDY), Abo-\n1989, is examining the application\nMost Australian children begin\nrigines and Torres Strait Islanders\nof technologies such as interactive\nschool before the compulsory\n(ABSTUDY), geographically iso-\nvideo, CD-ROM and CAL-CML,\nschool age and many attend pre-\nlated or disabled students (Assist-\nschool centres within the school\nto the development and delivery of\nance for Isolated Children) and\nexternal courses.\nsystem. Pre-school centres gener-\npostgraduate awards.\nally enrol four-year-old children\nTertiary education\nCurrent trends\nand provide sessions for two\nThere has been substantial restruc-\nUnder the National Asian Scholar-\ngroups of children each day.\nturing of the higher education sys-\nship Scheme, the Federal Govern-\n62\nImmunisation is a vital part\n63\nof child health care programs.\nment awards scholarships to\nAborigines\nteachers and research students to\nThe Federal Government made a\nstudy in Asian countries, is part of\nfive-year commitment to the Abo-\na strategy to help Australia be-\nriginal Employment Development\ncome Asia-literate.\nPolicy (AEDP) in 1987. The policy\nHealth\nTeacher education\naims to increase employment op-\nportunities for Aborigines and\nAustralia's public health services\nPre-school and primary teachers\nTorres Strait Islanders and assist\nare two-tiered: private medical\nusually complete a three or four\ntheir economic development\npractitioners provide primary care,\nyear diploma/degree course at a\nthrough to the year 2000.\nand a public (State-controlled) and\ntertiary institution. Secondary\nAt the end of 1989, all State and\nprivate hospital system provides\nschool teachers generally complete\nTerritory governments jointly\ncomprehensive services. A more\na degree at a university or college\nof advanced education before do-\nagreed toa national Aboriginal and\ndiversified program of care, with\nTorres Strait Islander Education\ncommunity health services - in-\ning a graduate diploma education\nPolicy (AEP). The Federal Govern-\ncluding health-centre and home\ncourse.\nment has committed $266 million\ncare services - is developing.\nto this initiative which aims to raise\nA universal health insurance\nInternational\nAboriginal participation and suc-\nscheme, Medicare, provides Aus-\nparticipation\ncess in education to the same level\ntralian residents with protection\nAwards and exchanges under the\nas the rest of the community.\nagainst hospital costs (excluding\nInternational Students sub-pro-\nprivate patients), medical and\ngram, provide opportunities for\nVocational training\noptometrical care. The scheme,\nstudents from overseas to study in\nFederal Government funding\nintroduced in February 1984, is\nAustralia and for Australians to\nmeasures are designed to encour-\npartly funded by a 1.25 per cent\nstudy overseas. Oversees students\nage a cooperative national effort\nlevy on taxable incomes, with low-\nare also able to study in Australia\nwith industry in the improvement\nincome cut-off points.\nby paying the full cost of their edu-\nof vocational education and train-\nUnder the scheme, there is no\ncation to the institution. The\ning arrangements. The National\ncharge for public hospital accom-\nnumber of students admitted un-\nTraining Board is responsible for\nmodation or treatment by hospital\nder the full fee program is not re-\nsetting national skill standards on\ndoctors. Private patients in public\nstricted by quotas. In 1990, there\nthe basis of proposals brought\nhospitals are charged for these\nwere 12'134 full fee paying over-\nforward by industry.\nservices.\nseas students enrolled in higher\nMedicare also provides re-\neducation institutions and a fur-\nfunds of at least 85 per cent of\nther 1015 enrolled in colleges of\ngovernment-approved fees\nTechnical and Further Education\ncharged by doctors and by optom-\n(TAFE).\netrists (except where the service is\nArtificial heart valves are tested in the laboratory.\n65\nmum outlay of $300 an individual\npopulation. Dental care for certain\nor family in a year.\ndisadvantaged people is provided\nMedicine\nby dental hospitals.\nIn 1990, Australia had about 38 000\nPublic health\ndoctors in active practice. About\nPublic health services are under-\n50 per cent work as general prac-\ntaken at Federal, State and Local\ntitioners (primary care), 30 per cent\ngovernment levels. Constitution-\nas specialists and 20 per cent are in\nally, State and Local governments\nsalaried employment.\nhave responsibility for providing\nTen Australian universities\npublic health services, but the Fed-\nhave medical schools which pro-\neral Government has become more\nvide five- or six-year undergradu-\ninvolved in developing and coor-\nate courses.\ndinating national policies, model\nHospitals\nNursing\nlegislation, guidelines and stand-\nprovided whilea person is a hospi-\nards.\ntal patient or at a day-hospital facil-\nIn 1990, Australia had 1072 hospi-\nAbout 190 000 professionally reg-\nThe Federal Government\nity, when Medicare benefit is a flat\ntals (excluding mental hospitals,\nistered nurses provide care in hos-\nprovides funding and professional\n75 per cent).\nnursing homes and Repatriation -\npitals, nursing homes, home-\nexpertise in family planning, health\nPrivate health insurance is\nveterans' - hospitals), of which 65\nnursing agencies, occupational\npromotion and illness prevention,\navailable for private patients in\nper cent were public hospitals.\nhealth nursing services, school\ndrug-abuse reduction, Aboriginal\nhospitals or for costs of a range of\nAustralia has an average five hos-\nhealth services and community\nhealth, women's health and disease\nancillary services, such as dental\nhealth activities.\npital beds a thousand population.\ncontrol - in particular, sexually\nservices or physiotherapy.\nAuthorisation to practise is\ntransmissible diseases including\nShort-stay visitors to Australia\nPharmaceuticals\ncontrolled by registration authori-\nAIDS.\nmust pay for all medical and hos-\nThrough the Pharmaceutical Ben-\nties in each State and Territory.\npital treatment. Private insurance\nefits Scheme, the Government sub-\nAbout 80 per cent of nurses work\nResearch\norganisations will cover them.\nsidises the cost of a comprehensive\nin hospitals or nursing homes.\nThe Federal Government supports\nAustralia has reciprocal medi-\nrange of drugs to ensure Austral-\nDentistry\nresearch by annual appropriation\ncal arrangements with New Zea-\nians have access to effective and\nto the Medical Research Endow-\nland, the United Kingdom, The\nnecessary prescribed medication.\nAustralia has about 5 700 dentists,\nment Fund.\nNetherlands, Italy, Malta and Swe-\nIn 1986, a program known as\nmostly in private practice. Five\nIn 1989-90, more than $80 mil-\nden. These enable short-term visi-\nAustralian universities have den-\nthe Safety Net was introduced to\nlion was allocated for grants to be\ntors to and from Australia to have\nprovide protection for families and\ntal schools providing a five-year\nawarded on National Health and\naccess to the host country's public\nthe chronically ill, by setting an\nundergraduate course.\nMedical Research Council advice.\nhealth system for immediately\nupper limit on expenditure for pre-\nFluoridation of water is widely\nIn addition, $2.6 million was\nnecessary medical and hospital\nscription drugs. On 1 January\nused to prevent dental decay and\nallocated for public health research,\ntreatment.\n1991, this limit was set to a maxi-\ncovers about 67 per cent of the\nadministered by the newly estab-\nThe detached house remains\n66\nthe most popular dwelling.\n67\nlished Public Health Research and\nServices for people\nDevelopment Committee.\nwith disabilities\nVocational and social rehabili-\nFlying doctor\ntation services are provided\nThe Royal Flying Doctor Service of\nthrough the Commonwealth Re-\nHousing\nAustralia provides medical care for\nhabilitation Services (CRS). More\nThe outstanding feature of hous-\npeople living in isolated regions.\nthan 90 rehabilitation units operate\ning in Australia is the high level of\nDoctors travel by aircraft from\naround Australia, many in country\nhome ownership. About 70 per\ncentral bases and keep in touch\nareas.\ncent of Australian householders\nwith their patients by radio.\nHearing services are provided\nown their own homes.\nServices for the aged\nthrough the National Acoustic\nThe most popular dwelling\nAustralia places a high priority on\nLaboratories (NAL). Specialist\nunit remains the detached brick\nprograms for elderly people.\nservices are provided by technical\nhouse with tiled roof, although\nThrough the Home and Com-\nexperts in NAL Hearing Centres\nthere has been a steady move to-\nmunity Care (HACC) program the\nthroughout Australia.\nwards higher-density housing, in-\nFederal Government funds a range\ncluding cluster-type developments\nChild Care\nsuch as townhouses, home units\nof home and community support\nThe Government helps families\nservices, such as home help, food\nand high-rise apartments. In 1989-\nwith dependent children, includ-\n90, 137-710 new residential build-\nservices, community respite care,\ning those with special needs, by\nand transport services, to help frail\ning units were begun (100690being\nproviding quality, affordable child\nhouses).\nolder people and younger people\ncare. The child care program is\nwith disabilities remain living in\nMost dwellings are bought\naimed at removal of barriers that\ntheir own homes. The Govern-\nwith money lent by private lending\nmight prevent women taking paid\nment also provides a Domiciliary\ninstitutions such as savings and\nemployment.\nNursing Care Benefit to people who\ntrading banks, permanent build-\nThis approach involves gov-\ncare for chronically ill relatives at\ning societies and finance compa-\nernment and private child-care\nnies. Savings banks account for\nhome.\nservices, employers and non-profit\nThe Residential Care program\naround 70 per cent of all housing\norganisations working together to\nloans.\nfunds a range of organisations\nincrease the supply of quality, af-\nwhich provide care in nursing\nfordable child care.\nFederal funding\nhomes and hostels. The program\nThe Federal Government gives\nprovides 100 nursing home and\nmoney to the State and Territory\nhostel places for ever 1000 persons\ngovernments to provide rental and\naged 70 years and over.\nhome ownership help for the\nEnvironmental laboratory\n68\nstaff test a watercourse in\n69\na mining area.\nneedy. While home purchase in\nconstruction was $16.2 billion in\nAustralia is predominantly fi-\n1989-90. Residential construction\nnanced by the private sector, more\naccounted for $19.7 billion. These\nhome loan innovations have been\nfigures are for private sector in-\ndeveloped by State and Territory\nvestment.\nhousing authorities which are as-\nThe construction industry em-\nEnvironment\nsisting an increasing number of\nployed about 575 000 people in\nlower-income first-home buyers\nAugust 1990. A similar number is\nAustralians are increasingly in-\ninto home ownership.\nemployed in supplying the indus-\nvolved in conservation and other\nThe most recent housing\ntry with materials, machinery and\nenvironmental issues. It is esti-\nagreement between the Federal\nprofessional services, with about\nmated that more than 500 000 peo-\nGovernment, States and Northern\n100 000 private-sector construc-\nple are members of conservation\nTerritory came into effect in 1989\ntion establishments operating in\ngroups in Australia. Since 1950,\nand provided for a base level of\nAustralia.\nthe number of conservation socie-\nfunding of $1028 million in each of\nConstruction activity is wide-\nties has increased from fewer than\nthe years 1989-90 to 1992-93, with\nspread geographically, but most\n50 to more than 800.\nany additional funds allocated each\nconcentrated in the capital cities.\nyear as part of the normal budget\nThe residential construction in-\nPolicy\nprocess. In 1989-90 and 1990-91,\ndustry uses the subcontract system\nAll spheres of government share\n$1053 million and $1035 million,\nand features a large number of in-\nresponsibility for the environment.\nrespectively, were actually made\ndependent operators. In contrast,\nThe Federal Government's role is\navailable.\nthe non-residential construction\nexercised mainly by the Depart-\nIn addition to general housing\nindustry is characterised by fewer,\nment of the Arts, Sport, the Envi-\nassistance, the agreement provides\nlarger firms.\nronment, Tourism and Territories\nfor specific help for Aboriginal and\nand by a number of statutory au-\npensioner housing, crisis accom-\nthorities including the Australian\nmodation, mortgage and rent as-\nHeritage Commission, the Aus-\nsistance and the local government\ntralian National Parks and Wild-\nand community housing program.\nlife Service and the Great Barrier\nReef Marine Park Authority. Two\nConstruction industry\nmajor government bodies have also\nMore than half (56.8 per cent) of the\nbeen established specifically to\neconomy's investment expendi-\ncollaborate on environmental mat-\nture, which underpins economic\nters. They are the Australian and\ngrowth, is on construction.\nNew Zealand Environment Coun-\nGross fixed capital expenditure\ncil and the Council of Nature Con-\n(current prices) on non-residential\nservation Ministers.\n70\n71\nConservation\nAmendments to the legislation\nFauna protection\nin accordance with the London\nA number of national programs\npassed in June 1987 allow the min-\nister to direct the preparation of a\nPrimary responsibility for native\nDumping Convention, and the ex-\nhave been established to provide\nfauna in Australia rests with the\nport and import of hazardous\nfor the protection and conserva-\nPublic Environment Report (PER)\non environmentally sensitive pro-\nstate and territory governments.\nwastes. With State authorities, it\ntion of Australia's environment.\nThe Federal Government is re-\ndevelops national guidelines for\nIssues addressed in these programs\nposals which might not warrant\nsponsible for native fauna in fed-\npermitted levels of air pollutants.\nhave included rainforest conserva-\nthe preparation of an EIS. PERs are\neral territories, for control of\ntion, arresting and reversing tree\nalso made available for public re-\ndecline, soil conservation, land-\nview and public comment is taken\ninternational import and export,\nOzone protection\nand for international treaties and\nThe Ozone Protection Act imple-\ninto account before decisions are\ncare incentives generally and\nconventions pertaining to nature\nments the provisions of the Mon-\nmade.\nbiodiversity. Two of these pro-\nconservation.\ntreal Protocol on Ozone and sets in\ngrams, focusing on nature conser-\nplace additional bans on products\nvation outside reserves are \"Save\nParks and wildlife\nBiological resources\nwhich use ozone depleting sub-\ntheBush\" and \"Endangered Species\".\nThe first laws to protect scenic ar-\nThe Bureau of Flora and Fauna is\nstances.\neas in Australia were passed in the\ncoordinating the Australian Bio-\nThere is a national strategy to\nEnvironment\nState of Tasmania in 1863.\nlogical Resources Study, collecting,\nphase out ozone depleting sub-\nThe Environment Protection (Im-\nIn 1879, the Royal National\nidentifying and recording Aus-\nstances as rapidly as practicable.\npact of Proposals) Act 1974 pro-\nPark of 7284ha was established\ntralia's animals and plants.\nWaste minimisation\nvides for environmental factors to\nsouth of Sydney, capital of New\nbe taken into account in the Federal\nSouth Wales. This was Australia's\nNational Estate\nThe Federal Government is devel-\nGovernment's decision making.\nfirst national park, and the world's\nThe Australian Heritage Commis-\noping a National Waste Minimisa-\nThe Act applies to proposed gov-\nsecond.\nsion compiles a Register of the\ntion and Recycling Strategy. It will\nernment decisions or actions which\nIn 1988, about 40.8 million\nNational Estate.\nencompass all wastes and all serv-\nmay have a significant effect on the\nhectares, or 5.3 per cent of Austral-\nUnder the National Estate\nices/activities which produce\nenvironment.\nia's total land area, was reserved\nGrants program, more than $50\nwaste and provide a structure for\nWhere a proposal raises issues\nfor national parks and other types\nmillion in Federal Government\nindustry, community and govern-\nof particular environmental con-\nof conservation reserves. A further\ngrants has been paid since 1973 for\nment cooperation in promoting\ncern, the Minister for the Arts, Sport,\n38.4 million hectares has been pro-\nmore than 3700 projects to state\nwaste minimisation and recycling.\nthe Environment, Tourism and\nclaimed as marine reserves repre-\nand territory governments.\nThe strategy will be one of the key\nTerritories can direct that an envi-\nsenting less than 1 per cent of\nroles of the recently announced\nPollution\nronmental impact statement (EIS)\nAustralia's total marine area. Aus-\nEnvironment Protection Agency.\nbe prepared. Impact statements\ntralia now has more than 2700 ar-\nState governments are primarily\nfor public review, and any public\neas set aside for nature conservation\nresponsible for pollution control.\nThe Federal Government has na-\ncomments ,must be taken into ac-\nor similar areas. They range in size\ntional and international responsi-\ncount before the statement is final-\nfrom small parks of less than one\nbilities.\nised and the proposals considered\nhectare to Kakadu National Park at\nThe Federal Government\nby the Government.\nnearly 22 000 km².\nregulates dumping of wastes at sea\nREMARKS OF GEORGE BUSH\nVICE PRESIDENT OF THE UNITED STATES OF AMERICA\nBEFORE THE\nNATIONAL PRESS CLUB\nCANBERRA, AUSTRALIA\nTHURSDAY, APRIL 29, 1982\nI'M DELIGHTED TO BE HERE WITH YOU TODAY. THIS IS THE FIRST TIME\nIN MONTHS THAT THE AUDIENCE HAS OUTNUMBERED MY SECRET SERVICE\nDETAIL.\nI WANT YOU TO KNOW THAT I'M ALWAYS DAUNTED AT GOING BEFORE PRESS\nCLUBS. THIS ISN'T A REFLECTION OF MY FEELING ABOUT THE PRESS-IT'S\nJUST A POLITICIAN'S NATURAL INSTINCT ABOUT STANDING IN FRONT OF so\nMANY OF YOU AT ONE TIME. I WAS TOLD BEFORE I CAME HERE THAT THE\nPAUSE\nAUSTRALIAN PRESS EATS PUBLIC FIGURES FOR BREAKFAST. YOU CERTAINLY\nTOLD FRANK SINATRA WHO WAS BOSS A FEW YEARS AGO. DANSE WELL, I HOPE\nI'LL AT LEAST PROVIDE YOU WITH A GOOD LUNCH.\nI'VE COME TO AUSTRALIA, AS YOU KNOW, IN THE INTERESTS OF GOOD NEWS,\nNOT BAD. IN JAPAN I SPOKE BEFORE THE FOREIGN CORRESPONDENT'S CLUB.\nI SAID THERE THAT I'D COME TO CONSULT WITH THE JAPANESE ON MATTERS\nOF TRADE AND DEFENSE--NOT TO DICTATE TO THEM. I SAID THAT WE NEEDED\nTO WORK TOGETHER TO WORK OUT AGREEMENTS, THAT THE ATMOSPHERE HAD IMPROVED,\nBUT THAT ABOVE ALL WE SHOULDN'T LET SUCH MATTERS CLOUD THE ESSENTIAL\nAND OVER-RIDING ISSUE OF JAPANESE-U.S. FRIENDSHIP. so DURING THE\nQ AND A THAT FOLLOWED A FELLOW STOOD UP AND SAID, WELL, THIS BEATS\nALL. A WHILE AGO MITTERAND CAME ALL THE WAY HERE TO SAY THERE IS\nHARMONY BETWEEN FRANCE AND JAPAN. AND NOW YOU'VE COME ALL THE WAY\nHERE JUST TO TELL US THERE IS HARMONY BETWEEN THE UNITED STATES AND\nJAPAN,\n-2-\nI TOLD HIM THAT WASN'T EXACTLY THE CASE, OR WHAT I'D SAID, THOUGH\nI DID SYMPATHIZE WITH HIM. I KNOW LACK OF HARMONY MAKES BETTER\nCOPY THAN HARMONY. BUT ALAS, I'M AFRAID I STAND BEFORE YOU FULL\nOF HARMONIOUS THOUGHTS, AND A FEW OTHER POINTS THAT NEED BRINGING\nUP BECAUSE THEY MATTER, AND BECAUSE THEY'RE IMPORTANT.\nI'VE BEEN TELLING AUDIENCES IN THE COUNTRIES I'VE BEEN VISITING\nTHAT THE UNITED STATES HAS NO DESIRE TO DOMINATE THIS OR ANY OTHER\nPART OF THE WORLD; BUT THAT IT WANTS TO CONTINUE BEING A GOOD\nPARTNER IN THE FREE WORLD; THAT IT WANTS TO KEEP THE LINES OF\nCOMMUNICATION WIDE OPEN THAT ITS DAYS OF LECTURING ITS FRIENDS\nAND APOLOGIZING TO ITS ENEMIES ARE OVER; THAT IT WANTS TO BE A\nGOOD FRIEND.\nAUSTRALIA IS ONE OF OUR BEST FRIENDS. WHEN PRIME MINISTER FRASER\nVISITED WASHINGTON LAST YEAR, PRESIDENT REAGAN SAID AT THE TIME\nTHAT, \"AUSTRALIA IS A FRIEND FOR THE LONG PULL, WHERE PEOPLE SEE\nTHINGS BASICALLY AS WE DO, BUT WHO WILL ALWAYS HAVE THE COURAGE\n/ AND THE FRIENDSHIP TO TELL US WHEN THEY THINK WE'RE WRONG.\"\nTHE PRESIDENT QUOTED ROBERT LOUIS STEVENSON'S LINE, \"THE BEST\nTHAT WE HAVE IN OUR TRAVELS IS AN HONEST FRIEND--THEY KEEP US\nWORTHY OF OURSELVES.\" ON THIS TRIP I'VE COME TO VISIT WITH\nHONEST FRIENDS.\nI'VE BEEN CELEBRATING\n-3-\nI'VE BEEN CELEBRATING A FEW ANNIVERSARIES ALONG THE WAY--QUITE\nA FEW, IN FACT: THE 30TH ANNIVERSARY OF THE SAN FRANCISCO TREATY\nIN JAPAN;' 100 YEARS OF DIPLOMATIC RELATIONS IN KOREA. HERE I'LL\nBE MARKING TWO EVENTS IN AUSTRALIAN-U.S. RELATIONS: THE 30TH\nANNIVERSARY OF ANZUS, AND THE 40TH ANNIVERSARY OF THE BATTLE OF\nTHE CORAL SEA.\nWE'VE FOUGHT WARS TOGETHER AND TOGETHER KEPT THE PEACE. THAT MAKES\nFOR TIES THAT BIND.\nTHE ANCIENT CHINESE HAD A CURSE: \"MAY YOU LIVE IN INTERESTING\nTIMES.\" WE'VE LIVED THROUGH SOME INTERESTING TIMES TOGETHER. MANY\nOF THOSE WHO FOUGHT IN THE BATTLE OF THE CORAL SEA DIED, AND MANY\nOF THOSE WHOM IT SAVED HAVE SINCE GONE.\nTHE ANZUS TREATY WAS CRAFTED BY STATESMEN SINCE DEPARTED, FOR A\nWORLD THAT HAS ALTERED ALMOST COMPLETELY. IT'S NOT JUST SHARED\nMEMORIES AND SIGNED PAPERS THAT HAVE KEPT US ALLIES.\nTHERE IS WHAT SIR NICHOLAS PARKINSON, MY GOOD FRIEND AND YOUR FORMER\nAMBASSADOR TO THE UNITED STATES HAS CALLED A \"NATURAL ALLIANCE\"\nBETWEEN OUR TWO COUNTRIES:\nA NATURAL ALLIANCE THAT EMERGES\nFROM THE MANY STRANDS, HISTORICAL AND CURRENT, TYING THE TWO PEOPLE.\nIT IS THIS, RATHER THAN THE FORMAL EXPRESSION OF THE SECURITY RELATION-\nSHIP EMBODIED IN THE ANZUS TREATY, WHICH IS THE LIVING CORE OR THE\nALLIANCE, AND WE WOULD DO WELL TO REMEMBER THIS AND FOSTER IT WHERE\nWE CAN.\"\nTHIS NATURAL ALLIANCE\n-4-\nTHIS NATURAL ALLIANCE OF OURS HAS PULLED US THROUGH, AND WILL\nCONTINUE TO PULL US THROUGH, THE CHALLENGES OF THE POST-MODERN WORLD.\nTHE SOVIET UNION'S APPETITE FOR THE FREEDOM OF OTHERS IS AS\nRABELAISIAN AS EVER. SOVIET TROOPS ARE WAGING THE THIRD YEAR OF\nA BRUTAL WAR AGAINST THE AFGHAN PEOPLE--KILLING INNOCENT MEN, WOMEN\nAND CHILDREN WITH CHEMICALS OUTLAWED BY ALL DECENT SOCIETIES, LECH\nWALESA LINGERS UNDER HOUSE ARREST. THE SOVIETS HAVE ALL SORTS OF\nJUSTIFICATIONS FOR THESE OUTRAGES. THEY ARE OBVIOUSLY WARY OF\nEASTERN\nTHEIR NEIGHBORS IN EUROPE, ON THE OTHER HAND, IT DOESN'T MUCH\nSURPRISE ME. THEY SEEM TO BE THE ONLY COUNTRY IN THE WORLD\nSURROUNDED BY HOSTILE COMMUNIST POWERS.\nTHEIR FOREIGN ADVENTURES HAVE NOT, OF COURSE, HAD ANY EFFECT ON\nTHEIR RHETORICAL OUTPUT, WHICH IS AS DISINGENUOUS AS EVER. SOVIET\nLEADERS HAVE MADE SPEECHES ABOUT THEIR DESIRE FOR A FREEZE ON\nNUCLEAR WEAPONRY, DESPITE THE FACT THAT SS-20's HAVE SPROUTED LIKE\nFIELDS OF ASPARAGUS, I MIGHT ADD THAT'S ABOUT THE ONLY SOVIET\nHARVEST THAT HASN'T FALLEN SHORT OF QUOTA. IT OCCURS TO ME THAT\nEITHER COLLECTIVE SOVIET FARMING ISN'T WORKING, OR THE SOVIET UNION\nHAS GOT SOME KIND OF CHRONIC WEATHER PROBLEM,\nBUT I HAVEN'T COME\nI\nwas in\ntalkederation\n100k Dd- how world has together\nBUT I HAVEN'T COME HERE TO DISCUSS SOVIET METEOROLOGY, OR AGRONOMY,\nOR OTHER DREARY SUBJECTS, I'VE COME TO EMPHASIZE THAT WE'VE STOOD\nUP AGAINST THEIR RECKLESS INTERNATIONAL BEHAVIOR TOGETHER. WE\nSTAND TOGETHER ON AFGHANISTAN, ON POLAND. WE'RE WORKING FOR PEACE\nTOGETHER IN THE MIDDLE EAST THROUGH THE SINAI MULTINATIONAL FORCE\nAND OBSERVERS. ISRAEL'S HISTORICAL WITHDRAWAL FROM THE SINAI WAS\nCOMPLETED ONLY LAST WEEK. THE PEACE PROCESS HAS GONE FORWARD,\nCAUSE FOR CELEBRATION IN A WORLD IN WHICH TOO FEW PROCESSES ARE\nPEACEFUL,\nI THINK IT IS IMPORTANT TO NOTE THAT THE UNITED STATES--INDEED ALL\nTHE FREE NATIONS OF THE PACIFIC DEEPLY APPRECIATE THE INCREASED\nDEFENSE OUTLAYS AND CAPABILITIES OF AUSTRALIA. THIS SACRIFICE IS\nA TRIBUTE TO THIS GOVERNMENT AND THE PEOPLE. IT IS A SACRIFICE ON\nBEHALF OF PEACE.\nLET ME TAKE A FEW MOMENTS TO PUT IN PERSPECTIVE ANOTHER PROCESS FOR\nPEACE: PRESIDENT REAGAN'S INITIATIVES ON BEHALF OF NUCLEAR ARMS\nREDUCTION, THE ISSUE HAS BEEN CLOUDED A BIT, TO SAY THE LEAST. NO\nONE IS MORE INTERESTED IN A REAL AND VERIFIABLE REDUCTION IN THE\nWORLD'S STOCKPILE OF NUCLEAR WEAPONS THAN PRESIDENT REAGAN. HE'S\nMADE A NUMBER OF OVERTURES TO THE SOVIETS, PROBABLY THE MOST\nSIGNIFICANT OF WHICH WAS HIS ZERO-OPTION PROPOSAL OF LAST NOVEMBER.\nIT WAS IN THAT PROPOSAL THAT HE ANNOUNCED HIS PLAN FOR THE DRAMATIC\nREDUCTION OF INTERMEDIATE RANGE SYSTEMS IN EUROPE. INTERMEDIATE\nNUCLEAR FORCES TALKS\n-6-\nNUCLEAR FORCES TALKS ARE ALREADY UNDER WAY. HE'S MADE IT CLEAR,\nBY HIS ACTIONS, NOT JUST BY WORDS, THAT HE'S WILLING TO EXPLORE ALL\nAVENUES TOWARD ARMS REDUCTION. IF HE CAN SUCCEED IN CONVINCING THE\nSOVIET UNION TO CHECK ITS RELENTLESS QUEST FOR NUCLEAR SUPERIORITY,\nIT WILL BE QUITE AN ACCOMPLISHMENT. IT'S NOT AN EASY JOB,\nTHE BEST WAY, MEANWHILE, TO BRING THE SOVIETS TO THE NEGOTIATING\nTABLE--PERHAPS THE ONLY WAY--IS TO REMAIN STRONG, AND TO MAINTAIN\nA CREDIBLE DETERRENT. AN ADVERSARY IS MUCH MORE LIKELY TO NEGOTIATE\nIF IT IS TO HIS ADVANTAGE TO NEGOTIATE. WE STAND A MUCH BETTER\nCHANCE OF GETTING THE SOVIETS TO AGREE TO SOME REAL AND VERIFIABLE\nREDUCTIONS IF THEY UNDERSTAND WE'RE DETERMINED TO MAINTAIN A STRONG\nDETERRENT. PRESIDENT REAGAN IS COMMITTED TO RESTORING STRENGTH.\nWHERE THERE IS STRENGTH, OR BALANCE, THERE IS SAFETY, BUT UNFOR-\nTUNATELY THAT STRENGTH, AND BALANCE. ARE BEING ERODED BY THE SOVIET'S\nMASSIVE BUILD-UP,\nDURING THE 1970'S\nChin\n-7-\nfrom SP\nDURING THE 1970's, THE UNITED STATES GREATLY REDUCED THE NUMBER\nOF ITS NUCLEAR WEAPONS IN WESTERN EUROPE. IN FACT, THE TOTAL U.S.\nNUCLEAR STOCKPILE IS AT ITS LOWEST LEVEL IN 20 YEARS. BUT THE\nSOVIETS ARE NOT ALTOGETHER UNSKILLED IN THE ART OF PROPAGANDA, AND\nTHEY GO ON TRYING TO CONVINCE THE WORLD THAT THE UNITED STATES, AND\nNOT THE SOVIET UNION, IS THE REAL SOURCE OF THE NUCLEAR MADNESS.\nTHEIR PROTESTATIONS IN THIS REGARD REMIND ME OF SOMETHING ONCE SAID\nBY THE MARQUIS DE CUSTINE, THE 19TH-CENTURY FRENCH NOBLEMAN WHO\nSTUDIED RUSSIA AS DE TOCQUEVILLE STUDIED AMERICA, \"WE MUST NEVER\nBLAME THE RUSSIANS FOR BEING WHAT THEY ARE,\" HE WROTE, \"ONLY FOR\nPRETENDING TO BE WHAT WE ARE.\"\nTHE UNITED STATES, AS I MENTIONED NEAR THE BEGINNING, HAS NO DESIRE\nS\nTO DOMINATE AFFAIRS IN THE SOUTH PACIFIC OR ELSEWHERE, WE ARE A\ninjo3=3e\nPACIFIC POWER AND WE'LL REMAIN A PACIFIC POWER. BUT OUR GREATEST\nSTRENGTH LIES NOT IN AIRCRAFT CARRIERS AND SUBMARINES, BUT IN OUR\nFRIENDSHIPS, ENDURING FRIENDSHIPS WITH COUNTRIES SUCH AS AUSTRALIA.\nWE'LL CONTINUE TO LOOK TOWARD AUSTRALIA FOR COUNSEL AND COMPANIONSHIP,\nP\nAS WE HAVE IN THE PAST, IF THAT DOESN'T MAKE FOR BANNER HEADLINES,\nIT'S STILL A BIG STORY. AND A GOOD ONE,\n######\nJune 27 / Administration of George Bush, 1989\nRemarks at the Welcoming Ceremony\nMr. Prime Minister, we have much to dis-\npeace and sec\nfor Prime Minister Robert Hawke of\ncuss at an important moment in history.\nnomic progre\nAustralia\nEvents in China call for close consultation\ntection of the\nJune 27, 1989\namong the free nations. And the United\nYou have\nStates and Australia have a longstanding\nPresident, you\nThe President. Prime Minister and Mrs.\ntradition of such consultation on important\nership. Your\nHawke, Barbara and I are very pleased to\nissues. And I am interested in hearing your\nWest relation\nwelcome you as old friends to the United\nassessments of recent world events.\native and bok\nStates and to the White House. We had the\nThere are many pressing international\nconventional\nopportunity to enjoy Australia's renowned\nissues. And, Mr. Prime Minister, your lead-\nand other arn\nhospitality in 1982 during Australian-Ameri-\nership in organizing global efforts to cope\nreducing nuc\ncan Friendship Week. And so, Barbara and\nwith the threat of chemical weapons is one\nimportantly\nI are just delighted to try to return that\nposition that is greatly admired by Ameri-\nweapons, you\nmarvelous hospitality.\ncans. The United States supports Australia's\ncan count C(\nAnd there's another reason why it is so\nefforts, and you may be assured of our com-\nAustralia.\nfitting for Australia's Prime Minister to be\nmitment to the early achievement of an ef-\nIn this new\namong the first official guests. Our nations\nfectively verifiable treaty banning these\nstancy, the (\nshare a similar heritage: a pioneer heritage\nweapons.\nalliance betw\nin the taming of two vast continents, a her-\nAnd so, today we shall discuss world\nStates will rei\nitage of democratic ideas, and a heritage of\ncommon sacrifice in war and common ef-\nevents, arms control, trade, Pacific regional\nnational inter\nforts in peace. And in our last visit, Barbara\ncooperation, economic cooperation, other\nit has a wid\nsubjects.\nsignificance.\nand I joined your countrymen in the com-\nBut, Mr. Prime Minister and Mrs.\nZealand, Uni\nmemoration of one of the most costly bat-\nHawke-Bob and Hazel, if you will-you\njoint Australi\ntles of the Second World War-the Battle of\nthe Coral Sea-a poignant reminder of how\nhave a busy schedule in your very brief\nties in Austr:\nmuch Americans and Australians have sacri-\ntime with us. But we hope to make your\nmaintaining\nficed four times in this century in the de-\nvisit to Washington as pleasant and as mem-\nthe effective\norable as ours was to your great country.\nmament agr\nfense of freedom.\nSo, this is not just an alliance between\nWelcome to Washington, sir.\nour coopera\nThe Prime Minister. Mr. President, Bar-\nhighest level\ntwo great powers. It is an intimate partner-\nship between two peoples. And your visit\nbara, it's an immense pleasure for me, in\nand more F\nthese 3 days in Washington, to renew our\ntime since A)\nreaffirms the vigor of this partnership, the\nenduring strength of our alliance.\nlong friendship. And it is a special pleasure\nBut, Mr. P\nThe giant strides that we've made recent-\nand privilege to join with you as the elected\nalliance goes\nance. It en\nly toward many of our common goals—\nChief of the greatest democracy in reaffirm-\nlinks and br\nmajor progress in arms reductions; major\ning the deep, abiding friendship of our two\ntural associal\nprogress in resolving conflicts in Afghani-\ncountries. In you, Mr. President, the West-\non the firm\nstan, Angola, and Cambodia-all were made\nern World has an experienced and forward-\ncommitment\npossible by the resolve of the West. Our\nlooking leader. And in you, Australia has a\ncountries prize peace, but recognize that\nvalued and longstanding friend.\nual liberty W\nMr. Presic\npeace comes only through Western strength\nToday, as you've said, Mr. President, I\nand vigilance. And we must maintain our\nthe depth ar\nlook forward with you to continuing the\nalliances and stand by our friends if we are\nexchange of views on all the issues affecting\nship that th\nexist betwee\nto fulfill the promise of a new era of less-\nour countries in the spirit of friendship and\nened tension and confrontation. And that is\nhonestly as,\nof frankness which has always characterized\nwhy the United States is so grateful for Aus-\nour association and which befits the rela-\nmatters, par\ntralian leadership in our common defense.\npolicy. I am\ntionship and, if I may say, the partnership\nwill be able\nAmerica also admires Australia's bold\nbetween Australia and the United States. As\nleadership in foreign policy, both close to\nnot entirely\nyou say, Mr. President, we are meeting at a\nhome and far from your shores. From the\nforward to e\ntime of historic and far-reaching change\nSouth Pacific to Africa, Australia is a force\noperating in\nacross the world. There now exists unparal-\nfor economic growth and a beacon of de-\nmultilateral\nleled new opportunities, challenges, and,\nmocracy. And we value your contribution,\nmay I say, responsibilities for leadership and\nsome progre\nyour good judgment, and your advice.\nwant: an int\npositive achievement on crucial issues of\non free and\n992\nAdministration of George Bush, 1989 / June 27\nave much to dis-\nnent in history.\npeace and security, East-West relations, eco-\nI know that we both understand that\nnomic progress, world trade, and the pro-\nmoving in the opposite direction toward a\nose consultation\ntection of the world environment.\nworld of separate and competing trade\nAnd the United\nYou have already demonstrated, Mr.\nblocs would be economically disastrous and\na longstanding\nPresident, your determination to give lead-\nquite possibly strategically destabilizing.\non on important\nership. Your constructive approach to East-\nThat is one of the reasons, I might add, why\nin hearing your\nWest relations is demonstrated by your cre-\nearlier this year I suggested the develop-\nevents.\native and bold proposal for the reduction of\nment of closer regional economic coopera-\ng international\nconventional weapons in Europe. In this\ntion in the Asia-Pacific region. Implementa-\nister, your lead-\nand other arms controls endeavors aimed at\ntion of my proposal could, I believe, im-\nefforts to cope\nreducing nuclear armaments, and as you\nprove significantly the chances for success\nweapons is one\nimportantly emphasize, banning chemical\nin the Uruguay round, as well as acting for\nhired by Ameri-\nweapons, you know, Mr. President, that you\na catalyst for further growth in our dynamic\nports Australia's\ncan count consistently on the support of\nregion. I'm very keen, Mr. President, to ex-\nired of our com-\nAustralia.\nchange views with you on this proposal.\nement of an ef-\nIn this new and challenging era, the con-\nAnd may I say, Mr. President, that I indeed\nbanning these\nstancy, the depth, and the vitality of the\nwelcome Secretary [of State] Baker's sup-\nalliance between Australia and the United\nport last night for a new mechanism for\ndiscuss world\nStates will remain crucially important to the\nmultilateral cooperation among the nations\nPacific regional\nnational interests of both our countries. But\nof the regions as an idea whose time has\nperation, other\nit has a wider regional and indeed global\ncome. I am delighted that the United States\nsignificance. Under ANZUS [Australia, New\nsupports my call for a ministerial meeting\nster and Mrs.\nZealand, United States security treaty], the\nthis year as a first step if, as I hope and\nyou will-you\njoint Australia-United States defense facili-\nexpect, there is consensus in the region.\nyour very brief\nties in Australia are significant elements in\nMr. President, I make this final point.\nto make your\nmaintaining the peace and in supporting\nint and as mem-\nthe effectiveness of arms control and disar-\nThe American presence has been a prime\nfactor in creating and in maintaining the\ngreat country.\nmament agreements. Over recent years,\nour cooperation and consultations at the\nconditions for stability and prosperity in the\nPresident, Bar-\nhighest levels have been stronger, broader,\nAsia-Pacific region. America's continuing in-\nsure for me, in\nand more productive than at any other\nvolvement in our region remains a key to\ntime since ANZUS was formed.\nits future progress. As you say, Mr. Presi-\n1, to renew our\nBut, Mr. President, as we both agree, our\ndent, we have before us an imposing dialog\nspecial pleasure\nu as the elected\nalliance goes far beyond our defense alli-\nthat we have to deal with.\nacy in reaffirm-\nance. It encompasses dynamic economic\nWhat gives this visit and our discussions\niship of our two\nlinks and broad and deep human and cul-\ntheir real substance, however, and what will\ntural associations. But above all, it is based\nmake them so mutually beneficial is the\ndent, the West-\non the firmest of foundations: our shared\nsense of common purpose that we bring to\nd and forward-\nAustralia has a\ncommitment to democracy and to individ-\nthese matters based on our common nation-\n.id.\nual liberty within the rule of law.\nal and international interests and on our\n(r. President, I\nMr. President, it is precisely because of\ncommon commitment to peace and to free-\nthe depth and the maturity of our relation-\ndom.\ncontinuing the\nissues affecting\nship that the differences of views that do\nMr. President-George-I thank you\nexist between us can be faced openly and\nagain for the warmth of your welcome not\nfriendship and\nS characterized\nhonestly as, for example, on some trade\nmerely today but since I have arrived. May\nmatters, particularly aspects of agricultural\nI say, not just the warmth-[aughter]-\nbefits the rela-\npolicy. I am quite confident that today we\nwe're used to that. And I know you have\nhe partnership\nwill be able to focus on ways to minimize, if\nenormous power, perhaps more than any in\nnited States. As\nnot entirely resolve, such differences. I look\nthe world, but I know there are limits to\ne meeting at a\nforward to exploring with you means of co-\nyour power. [Laughter] That warmth is a\naching change\noperating in the current Uruguay round of\ncoincidence, but, George, there is no coinci-\nexists unparal-\nmultilateral trade negotiations to achieve\ndence about the personal warmth that you\nhallenges, and,\nleadership and\nsome progress toward the goal that we both\nhave extended-that you and Barbara have\nucial issues of\nwant: an international trading system based\nextended to Hazel and myself. For that, I\non free and fair competition.\nthank you. And I conclude, George, by\n993\nJune 27 / Administration of George Bush, 1989\nsaying this: You have visited Australia, as\nbreak the shackles of totalitarian rule and\ntralia has risen i\nyou say, as Vice President; and I look for-\nbreathe in the life-giving air of liberty.\nof England to 1\nward to welcoming you to our country as\nExperience has shown us that success can\nnation, in culture\nPresident of the United States and as a true\nexact a heavy price. We must never forget\nhas taken note:\nfriend of Australia.\nthat this experiment in self-government\nIn classic fil\ncontinues to thrive because our Nation is\n\"Breaker Moran\nNote: The President spoke at 10:10 a.m. at\nblessed with an abundance of brave men\nPatrick White's\nthe South Portico of the White House, where\nand women who proudly serve in its Armed\nare moving exa\nPrime Minister Hawke was accorded a\nForces. These individuals stand guard on\nemerging as this\nformal welcome with full military honors.\nthe ramparts of liberty so that all Americans\nture. Australia h\nFollowing the ceremony, the President and\ncan say with pride and confidence, \"I'm\ncontribution to\nthe Prime Minister met in the Oval Office.\nfree.\"\ncouragement a\nTo every American citizen, here and\nAustralia is the S\nabroad, Happy Fourth of July! God bless\nlamp of liberty\nyou and God bless America!\nthe East.\nAnd so, Bob,\nMessage on the Observance of\nGeorge Bush\nto acknowledge\nIndependence Day\nsonal leadership\nJune 27, 1989\nwith ideas to I\npartners of the\nGrowing up in Connecticut-\"the Consti-\nbeen a champi\nToasts at the State Dinner for Prime\ntution State\"-the Fourth of July represent-\nnation's magnif\nMinister Robert Hawke of Australia\ned the best of holidays. It held the promise\ning is a fitting\nof parades, picnics, and fireworks. More im-\nJune 27, 1989\nprinciples. Lit\nAmericans, inc\nportant, however, it introduced a small boy\nThe President. Mr. Prime Minister and\nto the promise of America.\nCongress, joine\nMrs. Hawke-Bob and Hazel to us, to all of\nthat building\nEverywhere I turned, I would see the\nred, white, and blue of our flag. As I grew\nyou-we are just delighted to have this op-\narchitecture in\nolder, I realized that the flag has reminded\nportunity to welcome you back to Washing-\nship. It's a kir\nton, sir. I would once more reminisce about\nthan heritage,\ngenerations of Americans how fortunate we\nthe fondness with which I remember our\nare to live in a free and democratic Repub-\nguage. It is\nvisit to Australia a few years ago, and then,\nbrotherhood of\nlic. It is a banner respected around the\nof course, your own previous visits to Wash-\nRecent ever\nworld. The Fourth of July is a day to pause\nington, DC, as Prime Minister. And now we\nshow that it is\nand thank God that men such as Thomas\nhave been delighted with your gracious\nwhat he wants\nJefferson and Ben Franklin had the\ncompany during this all-too-brief stay.\nwhat he belie\nstrength, courage, and insight to forge a\nAnd lest you wonder about the Prime\nvoice in the g\nnation predicated upon the noble ideal,\nMinister's travel plans, it is my understand-\neconomic free\n\"that all Men are created equal, that they\ning that he and Hazel go right to the air-\ndom, indeed,\nare endowed by their Creator with certain\nport, climb onto an airplane, and will be\ndepend one o\nunalienable Rights.\nseen smiling and greeting the Chancellor of\nis very timely\nToday, as we celebrate the 213th birth-\nthe Federal Republic of Germany about 1\nmean consult\nday of our Nation's founding, let us recall\np.m. Federal Republic of Germany time. So,\ntion-and onc\nthe words spoken by President George\nwe will be brief, and-[laughter]. But I\nour U.S.-Austr\nWashington during his first Inaugural Ad-\nthink the friendship that we feel towards\nThe United\ndress on April 30, 1789: \"The preservation\nour distinguished visitor is but a reflection\nto support th\nof the sacred fire of liberty, and the destiny\nof a deeper closeness.\nand, yes, hur\nof the republican model of government, are\nWilbur Garrett, the editor of the National\ncommitment\njustly considered as deeply, perhaps as final-\nGeographic, wrote that, \"Both America and\nand allies in\nly staked, on the experiment entrusted to\nAustralia exert an enduring fascination on\nstrong and a\nthe hands of the American people.\"\neach other, like brothers growing up in dif-\nstand with us\nAfter 213 years, Americans can say that\nferent parts of the world.\" Well, we've\nfree flow of\nthe experiment is a resounding success. The\nborne great sacrifiees as brothers in war,\nideals of free\nFourth of July is a time to rejoice in this\nand now we share-great responsibilities as\nSo, ladies a\nsuccess, which has inspired all who seek to\nbrothers in peace. And in this century, Aus-\nAustralia is\n994\nAdministration of George Bush, 1989 / June 27\nlitarian rule and\ntralia has risen in stature from a dominion\nvery close ally of the United States of Amer-\nof liberty.\nof England to become a nation, a great\nica. This visit, in my view, sir, has been an\nthat success can\nnation, in culture and in the arts. The world\noutstanding success. We are delighted that\nust never forget\nhas taken note: Australia, the rising star.\nyou have been with us, you and Hazel.\nself-government\nIn classic films like \"Gallipoli\" and\nAnd now I would like to offer a toast to\nour Nation is\n\"Breaker Morant\" and so many others—\nHer Majesty, Queen Elizabeth, Queen of\nof brave men\nPatrick White's Nobel Prize for literature-\nAustralia.\nve in its Armed\nare moving examples of why Australia is\nThe Prime Minister. Mr. President-\nstand guard on\nemerging as this leading light in world cul-\nGeorge and Barbara-and friends, I think\nit all Americans\nture. Australia has an even more profound\nthe people of this country probably imagine\nonfidence, \"I'm\ncontribution to make to the world: the en-\nthat they have a fair idea of the capabilities\ncouragement and spread of democracy.\nof their new President, as well they should.\nzen, here and\nAustralia is the shining light in the Pacific, a\nHe has been in the public eye for a very\nJuly! God bless\nlamp of liberty for the oppressed peoples of\nthe East.\nmany, many years. I may say that Barbara\nAnd so, Bob, let me just take a moment\nhas given me a few insights into some as-\nGeorge Bush\nto acknowledge your own outstanding per-\npects of his character that are probably-\nsonal leadership in the region. You've led\n[laughter]-not so well known; but I want\nwith ideas to better organize the trading\nto assure you, my friends, that I've come to\npartners of the Pacific Basin, and you've\nlearn, just in the last 3 days, that he has a\nbeen a champion of freedom's cause. Your\ncapacity for shrewdness which is almost\nfor Prime\nnation's magnificent new Parliament build-\nlimitless.\nAustralia\ning is a fitting monument to democratic\nIt occurred on the golf course. [Laughter]\nprinciples. Little wonder that so many\nWe were lined up there-the President, the\nAmericans, including Members of our own\nPrime Minister, [Secretary of State] Jim\nMinister and\nCongress, joined you for the inauguration of\nBaker, and [House minority leader] Bob\nto us, to all of\nthat building and even contributed to its\nMichel. And I know that my friend, Jim\nhave this op-\narchitecture in a reaffirmation of our kin-\nBaker, will take no offense; and I, with my\nck to Washing-\nship. It's a kinship that is more profound\nwell-known modesty, take no offense in ac-\neminisce about\nthan heritage, deeper than a shared lan-\nknowledging that of the three of us, apart\nremember our\nguage. It is the universal kinship, the\nfrom the President, there was not a doubt\nago, and then,\nbrotherhood of democracy.\nthat Michel is the best player. [Laughter]\nvisits to Wash-\nRecent events in the Asia-Pacific region\nSo, with an innocence which was all bely-\nAnd now we\nshow that it is not enough to let a man buy\ning, the President of the United States said,\nyour gracious\nwhat he wants. He must be allowed to say\n\"We will now work out who plays one with\nief stay.\nwhat he believes. He must be allowed a\nthe other.\" So, I thought that there would\nut the Prime\nvoice in the governing of the society. And\nbe a fairly reasonable process that would be\n(V understand-\neconomic freedom alone and political free-\nfollowed. It was very exotic, I can assure\nht to the air-\ndom, indeed, go hand in hand. They\nand will be\nyou. He gets his ball, and he takes a ball\ndepend one on the other. And therefore, it\nChancellor of\nfrom each of us. He puts his on the ground,\nis very timely for us to meet, consult-and I\nnany about 1\nmean consult in the real spirit of consulta-\nand he said, \"Now, here they go.\" He said,\n\"The ball nearest mine will be my partner.'\nany time. So,\ntion-and once again affirm the solidarity of\nghter]. But I\nAnd there was no doubt which ball was\nour U.S.-Australian alliance.\nfeel towards\nThe United States is fully engaged in Asia\nnearest his; it was Michel's, of course.\nt a reflection\nto support the forces of peace, democracy\n[Laughter] It was never going to be any\nand, yes, human rights. And our abiding\nother way-a very, very shrewd operator.\nthe National\ncommitment to Australia and our friends\n[Laughter]\nAmerica and\nand allies in the region is going to remain\nNow, we have shrewdness in sport, too, in\nascination on\nstrong and abiding. And I know that you\nour country. George, I might say, I've had\nng up in dif-\nstand with us, sir, not just in favor of the\nthe opportunity of sitting next to-here to\nWell, we've\nfree flow of goods but one of ideas and\nSarah, who shares my passion for racing.\nhers in war,\nideals of freedom.\nAnd I can tell you a brief, true story about\nonsibilities as\nSo, ladies and gentlemen, let me say that\nhorse racing in Australia, which will give an\nentury, Aus-\nAustralia is a strong fellow democracy, a\nindication that there is certain shrewdness\n995\nJune 27 / Administration of George Bush, 1989\nin sport in our country. It's a true story, I\nboldness in testing new frontiers of experi-\nalliance. May\nAmbassador-el\ncan assure you.\nence I have also increasingly come to\nIt was a country race meeting out in the\nadmire.\ngotten to know\nbush in Australia, and this event was a\nBetty-I than\nIt is the case, George, that you and I,\nthree-horse race-literally a three-horse\nchoosing them\nthrough the responsibilities of leadership in\nrace. This punter went up to the bookmak-\ncountry. We\nour nations, have the experience now of\ner and said, \"I'll have $5,000 on Blue Vein.\"\nthem, and I\nliving at a point in history which I would\nAnd the bookmaker took his $5,000 with a\nSembler as an\nsuggest by almost any definition is at one\nhuge grin and shoved it into his bookmak-\nthat you attach\nand the same time the most exciting and\ner's bag and said, \"Thank you very much.\nOur friendsh\nchallenging of any time in this 20th centu-\nThat's my horse.\" To which the punter re-\nour two coun\nry, certainly the most challenging and\nplied, \"It's going to be a bloody slow race,\nvanced in pea\npromising, in a sense, than at any time in\nisn't it? I own the other two.\" [Laughter]\ndations. It invc\nthe nuclear age.\nWell, my friend, George, coming to more\nthat the peop\nWe are entitled-the rest of us in the\nserious matters, you and I and our two\nUnited States a\ncountries are not in a slow race. We're cer-\nworld-to say of the leadership of the\nprosperity and\ntainly not in a race in which we're not\nUnited States in recent times that, by the\ntantly even th\ntrying. It's an increasingly fast race. It's an\ndischarge of your responsibilities, by the\nof our relation\nincreasingly serious race. It's a race which\npreparedness, as I say, to exercise boldness\nthat we shall d\nrequires all of our commitments and our\nin testing new frontiers, that you have\nsee that those\ncourage and devotion and best efforts.\ngiven us cause for a greater degree of opti-\ntured and W\nGeorge, you and I are both politicians.\nmism about the possibility of living in a\nstrength, our\nWe've had a long experience in politics. It\nworld in peace than at any other time in\nfuture shall be\nwould be honest enough to say that there\nthe nuclear age.\ncreasingly, as a\nare times when you have to talk about per-\nWhen I was here 12 months ago, in\nenjoyed by m\nsons, even perhaps sometimes when you\nspeaking to a Joint Session of the Congress,\nglobe. That is\nhave to talk about nations. And where there\nI referred to that thesis which had been\nour great opp\nis no substance in the relationship with the\ngaining some currency: that this was a\nlenge.\nperson or the nation with which you're talk-\nnation in some sort of relative decline. I\nAnd may I S\ning, as politicians you have to delve fairly\nsaid then that was a thesis that I dispute, a\nan immeasural\ndeeply into the wells of rhetoric and plati-\nconcept that I reject, because all the evi-\nopportunity at\ntudes to do justice to the situation.\ndence of recent times, in my analysis, points\ning with you\nBut we're fortunately in the situation\nin the other direction. It is not merely a\ncountries so fir\nwhere we have to do nothing of that kind.\nquestion of the continuation of your great\nLadies and g\nBetween our nations, there is an enormous,\neconomic might but on all the evidence of\ntoast to the Pr\nimmeasurable substance. It's a substance, a\nleadership that has been the courage of the\nand to the abi\nrelationship, which has been formed on the\nprevious administration of which you were\nship of the Unit\nbattlefields. On four occasions in this centu-\nsuch a leading part, and which you now, as\nry, our soldiers have fought next to one\nPresident, have taken to new frontiers.\nNote: The Pres\nanother; they have died next to one another\nIt is that courage, that leadership, that\nthe State Dinin\nin defense of the fundamental beliefs that\nboldness which, with a certain responsive-\nIn his remarks,\nwe share. And in the times of peace, our\nness from the leadership in the Soviet\nto Sarah Faris\nnations also have been as one in pursuing\nUnion, has offered to mankind, to this gen-\nBush family.\nnot only for the people of their own nations\neration and to our children and to theirs, a\nbut for others the achievement of those\ngreater hope for peace than at any other\nideals of freedom and liberty.\ntime in this nuclear age, which so frequent-\nAs for us as individuals, George, we have\nly-almost consistently-has been fraught\nhad the pleasure of not merely knowing\nwith the ultimate danger of obliteration.\nContinuation\none another but of being friends for the\nAssistant Secr\nAnd it takes courage, it takes strength, it\ngreater part of this decade, certainly a\ntakes leadership, it takes boldness to have\nJune 28, 1989\nfriendship which I cherish. And may I say\ndone those things. And, George, I want to\nto you, my friends, that in getting to know\nThe Preside\nsay to you that my country looks with enor-\nGeorge Bush I've got to know a man-whose\nDavid S.C. Chu\nmous appreciation to what this country has\nintegrity I admire, whose courage in de-\ndone and what you now as President are\nAssistant Secre\nfending lasting truths I admire, and whose\ndoing. We thank you for the strength of our\nAnalysis and Ev\n996\nAdministration of George Bush, 1989 / June 28\nontiers of experi-\nalliance. May I say in the presence of the\nDr. Chu has served as the Assistant Secre-\nsingly come to\nAmbassador-elect, who I have just recently\ntary of Defense (Program Analysis and Eval-\ngotten to know-Mel Sembler and his wife,\nuation) since July 1988. Prior to this Dr.\nBetty-I thank you for your decision in\nthat you and I,\nChu was the Director of Program Analysis\nchoosing them as your representative in our\nand Evaluation in the Office of the Secre-\nof leadership in\ncountry. We look forward to welcoming\ntary of Defense, 1981-1988. Dr. Chu also\nerience now of\nthem, and I take your selection of Mel\nserved as assistant director for the national\nwhich I would\nSembler as an indication of the importance\nsecurity and international affairs division in\ninition is at one\nthat you attach to our relationship.\nthe Congressional Budget Office, 1978-\nost exciting and\nOur friendship, as I say, the friendship of\n1981; as associate head of the economics\nthis 20th centu-\nour two countries, forged in war and ad-\ndepartment at the Rand Corp., 1975-1978;\nchallenging and\nvanced in peace, rests on unshakable foun-\nand as a senior economist at the Rand\n1 at any time in\ndations. It involves a commitment to ensure\nCorp., 1970-1978.\nthat the peoples of our own nations, the\nDr. Chu graduated from Yale University\nst of us in the\nUnited States and Australia, shall advance in\n(B.A., 1964; M.A., 1965; M. Phil., 1967;\nadership of the\nprosperity and in security. But more impor-\nPh.D., 1972). He served in the U.S. Army\nnes that, by the\ntantly even than that, I think the strength\nfrom 1968 to 1970. Dr. Chu was born in\nsibilities, by the\nof our relationship is in our commitment\nNew York City on May 28, 1944. He cur-\nxercise boldness\nthat we shall do everything in our power to\nrently resides in Washington, DC.\nthat you have\nsee that those freedoms that we have nur-\nr degree of opti-\ntured and which have given us our\nof living in a\nstrength, our pleasure, our hope for the\ny other time in\nfuture shall be freedoms and rights that in-\ncreasingly, as a result of our efforts, shall be\nNomination of Alfred C. Sikes To Be a\nmonths ago, in\nenjoyed by men and women around the\nMember of the Federal\nof the Congress,\nglobe. That is our great responsibility, it's\nCommunications Commission, and\nwhich had been\nour great opportunity, and our great chal-\nDesignation as Chairman\nhat this was a\nlenge.\nJune 28, 1989\nlative decline. I\nAnd may I say, George, for me, that it is\nthat I dispute, a\nan immeasurable pleasure that I have this\nThe President today announced his inten-\nuse all the evi-\nopportunity at this stage of history of shar-\ntion to nominate Alfred C. Sikes to be a\ny analysis, points\ning with you the leadership of two great\nmember of the Federal Communications\nis not merely a\ncountries so firmly united.\nCommission for a term of 5 years from July\nn of your great\nLadies and gentlemen, may I offer you a\n1, 1988. He would succeed Mary Ann Wey-\nthe evidence of\ntoast to the President of the United States\nforth Dawson. Upon confirmation by the\ncourage of the\nand to the abiding friendship and partner-\nSenate he will be designated Chairman.\nwhich you were\nship of the United States and Australia.\nSince 1986 Mr. Sikes has served as Assist-\nich you now, as\nant Secretary of Commerce and Adminis-\nV frontiers.\nNote: The President spoke at 9:25 p.m. in\ntrator of the National Telecommunications\nleadership, that\nthe State Dining Room at the White House.\nand Information Administration in Washing-\ntain responsive-\nIn his remarks, the Prime Minister referred\nton, DC. Prior to this he was president of\nin the Soviet\nto Sarah Farish, an acquaintance of the\nSikes and Associates, Inc., a broadcast man-\nind, to this gen-\nBush family.\nagement and media consulting company,\nand to theirs, a\n1978-1986. From 1977 to 1978, he served\nn at any other\nas an officer in a number of companies that\nich so frequent-\nowned and operated radio stations in Texas,\nbeen fraught\nLouisiana, and New Mexico. He was direc-\nContinuation of David S.C. Chu as an\nobliteration.\ntor of the Missouri Department of Con-\nAssistant Secretary of Defense\nkes strength, it\nsumer Affairs, Regulation, and Licensing,\noldness to have\nJune 28, 1989\n1974-1976; director of the Missouri Depart-\norge, I want to\nment of Community Affairs, 1973-1974; di-\nooks with enor-\nThe President today announced that\nrector of the Missouri transition govern-\nDavid S.C. Chu will continue to serve as an\nhis country has\nment for Governor-elect Bond, 1972-1973;\nPresident are\nAssistant Secretary of Defense (Program\nand campaign manager for Christopher\nAnalysis and Evaluation).\nstrength of our\nBond for Governor, 1972. He also served as\n997\nTHEMES FOR ASIA TRIP\nOverall\n--\nAmerica is an Asia-Pacific partner for the long haul\n(America will not retreat into isolationism/protectionism)\n-- Economically\n-- Politically\n-- Security\n--\nAs outlined in the President's Asia Society speech, there\nare six keys to America's long-term vision for the Asia\nPacific. The trip will highlight each of these:\nI.\nPROGRESSIVE TRADE LIBERALIZATION\n--\nAggressively pursue Uruguay Round Settlement (if still\npending) (Japan, Korea, Australia)\n--\nPromote APEC (All countries)\n--\nPush access for American products and services (Japan,\nKorea)\n-- Encourage American investment in the region (Singapore,\nJapan, Korea)\nII. SECURITY COOPERATION\n--\nMaintain pressure on DPRK nuclear program. Stress need for\nunited action against DPRK nuclear program (all countries;\nencourage Singapore to get ASEAN action during upcoming\nASEAN Summit)\n--\nU.S. will restructure, but remain engaged\n-- Continued air and naval presence at current levels in\nJapan for the foreseeable future\n-- Korea presence dependent on progress for lasting peace\non the peninsula; however, envision long-term air\npresence for regional deterrence into the future\n--\nSingapore agreement as model for access arrangements of\nthe future in other parts of the region\nIII. A SHARED COMMITMENT TO DEMOCRACY AND HUMAN RIGHTS\n-- Continue pressure on ROK (last visit by Pres. Bush made a\ndifference)\n--\nLay out position on Vietnam (Singapore)\n-- Highlight China if necessary\n2\nIV EDUCATIONAL AND SCIENTIFIC INNOVATION\n--\nShow link between domestic agenda and foreign policy\n--\nHighlight S&T progress (all countries)\n--\nExamine educational differences that we can learn from\n(Japan, Korea)\nV\nRESPECT FOR THE ENVIRONMENT\n--\nNote progress made and areas for improvement (Japan, Korea)\n--\nAnnounce SE Asia initiative (if ready)\nVI\nAPPRECIATION OF DISTINCT CULTURAL HERITAGES\n--\nAnnounce various cultural exchange initiatives (all\ncountries)\n1.2. 11. 91 06:57 PM\nPO1\nU.S. Department of State\nEAP\nFAX\nDate: 12/11/91\nTO: Carol Aarhus- WH Speech Staff\nFAX Phone Number: 456-6218\nAddressee's Phone: 456-7750\nFROM: EAP/ANZ - Tom Roburson\nFAX Phone Number: 202-647-7350; 647-4402\nSender's Phone: 202-647-9690\nNUMBER of PAGES INCLUDING COVER SHEET\n8\nRemarks: Card- Here are the papers we dis aussed.\nThese will he semi-public meetings (with pool media coveraged PO\nthe themes are important. Hope they are helpful.\nTan\nUNCLASSIFIED ONLY\nA\n12. 11. 91\n06:57 PM\nP 0 2\nUNCLASSIFIED\nMEETING WITH U.S. BUSINESS EXECUTIVES IN MELBOURNE\nSCENESETTER\nPURPOSE\nYour January 3 meeting with selected U.S. business excutives in\nMelbourne is an opportunity to stress the following themes:\nther ment\nYou strongly support U.S. international business\ninterests, and appreciate the contribution to the\nU.S. economy.\n-- U.S. policies help the U.S. in international trade,\nand thus benefit the U.S. economy.\n-\nThe close bilateral trade and investment relationship\nbenefits both Australia and the U.S.\nSETTING\nThe trade and investment relationship between the U.S. and\nAustralia is extensive, with more than $14 billion in U.S.\ndirect investment in Australia and $8 billion in U.S. exports\nlast year. The bilateral trade balance is two to one in our\nfavor. Many major U.S. firms operate in Australia, employing\nthousands of workers and generating billions of dollars in\noutput and exports. These firms also benefit the U.S. by using\nU.S.-sourced parts, equipment and technology, using Australia\nas an export base for the region, and repatriating profits to\nthe U.S.\nPool media coverage of this event is anticipated, offering you\na chance to tell not only the business participants, but a\nlarger audience about how the Administration's domestic and\ninternational economic policies are aimed at strengthening U.S.\ncompetitiveness, exports, and employment.\nThe participants will be approximately 40 senior executives of\nU.S. firms in Australia (U.S. and Australian nationals). They\nmay express concern about the negative impact the EEP on the\nAustralian economy. The meeting will take place in the World\nCongress Center in Melbourne, the site of your later luncheon\nspeech on braoder regional themes to a much larger and broader\naudience.\nUNCLASSIFIED\n12. 11. 91 06:57 PM\nP03\nUNCLASSIFIED\nPOINTS TO BE MADE AT MEETING WITH BUSINESS EXECUTIVES\n--\nI'm glad to have a few minutes to meet with you today. As\nyou know, before entering politics I was active in\nbusiness.\no\nFrom that experience I learned that America is first\namongst economic powers, and will remain first only\nas long as we stay engaged in world markets.\no\nYou all help us do that.\n--\nWe in Washington, both in Congress and the Executive\nBranch, need to be aware of how our actions affect U.S.\nbusiness interests in the increasingly competitive global\nmarket place.\nAmerican investment in marketing and production here makes\nan important contribution to both the Australian and U.S.\neconomies.\no\nThese business relationships are a key factor in the\nstrong partnership between the U.S. and Australia.\no\nYour efforts are also important to both our economies\nin terms of growth, exports, and employment.\n--\nI am pleased particularly to see representatives of many\nof our leading-edge high tech firms here today.\nD\nYou are contributing to competitiveness in both the\nU.S. and Australia.\n--\nMy administration is committed to maintaining a strong,\ndynamic, competitive American economy.\n--\nIn the last three years we have taken a number of\nimportant initiatives in the U.S.:\no\nAt the Charlottesville Summit state governors and I\nfocussed attention on the need for excellence in\neducation, since an educated workforce is the key to\na productive society.\nUNCLASSIFIED\n12. 11. 91 06:57 PM\nP04\nUNCLASSFIED\n- 2 -\no\nWe have harnessed the Energy Department's famous\nresearch and engineering laboratories to advance\ntechnological education where it begins, in the\nnation's primary and secondary classrooms.\no\nThe Council on Competitiveness led by Vice President\nQuayle has actively reduced unneccessary regulation\nand developed policies to improve U.S.\ncompetitiveness at home and abroad.\no\nOther initiatives - investment and R&D tax credits\nfor business? (WH to insert domestic business\ninitiatives.)\n--\nEqually important as these specific initiatives, we have\nsought to establish an overall economic climate conducive\nto economic success\no\nInflation, the enemy of export competitiveness, has\nbeen kept firmly under control and is less than 3 %\nthis year, down from 6 % in 1990.\no\nOur trade and current account deficits, long problem\nareas, are moving strongly in the right direction.\n0\nWe have sought to reduce the capital gains tax in\norder to encourage savings and investment, and I will\nbring this proposal to Congress again this year\no\nWe have pressed doggedly ahead in the Uruguay Round\nto open world markets for American goods, services,\nand investment, to better protect U.S. patents,\ntrademarks, and copyrights, and to establish a fairer\nsystem of world agricultural trade, especially the\nelimination of export subsidies.\nWe in government serve best when we focus on creating a\nsound economic environment with clear rules fairly\nenforced.\no\nYou in the business community have the challenge to\ndevelop and deploy technology, manage an educated\nworkforce, and produce and sell quality products at\ncompetitive prices.\n--\nWe have a few minutes available, and I would welcome\ntaking your questions, or hearing your views on how my\nadministration can help your firms meet these challenges.\nUNCLASSIFIED\n12. 11.91 06:57 PM\nP05\nDrafted: EAP/ANZ:Embassy Canberra/TRobinson\n12/9/91 SEANZ 1870 x79690\nCleared:\nEAP:LDAnderson\nEAF/FO: JBecker, Acting\nEAP/FO:RMoore, Acting\nEAP/ANZ: SStanfield\nP:MMcMillion\nE:SAlexander\nC:RWilson\nT:RSherman\nEB:PBlakeburn/SWickman\nD:JWarlick\nUSTR:LAnderson\nUSDOC: SAltfeld\nTREA:SRzemien\n12. 11. 91\n06:57 PM\nPO6\nUNCLASSIFIED\nINAUGURATION OF\nTHE AUSTRALIAN CENTRE FOR AMERICAN STUDIES\nSCENESETTER\nPURPOSE\nThe purpose of this reception at the Ambassador's\nresidence is to inaugurate the Australian Centre for\nAmerican Studies (ACAS), honor its corporate and academic\nbackers, and to signal U.S. support for its aims. You may\nalso use this opportunity to acknowledge and support an\neducation initiative to study expanding educational\ninterchange between our two countries should Prime\nMinister Hawke propose it to you (and should you agree to\nit) before this meeting.\nSETTING\nThe ACAS is a new national institution located on the\ncampus of the University of Sydney. The University of\nSydney has provided initial funding and office space for\nthe Centre. Funding has also been provided by the private\nsector; companies include Caltex, Rockwell and others with\nties to both countries. In connection with the\ninauguration of the Centre by you, the United States\nInformation Agency is contributing US $50,000 to support\nthe Centre's programs.\nIn 1988, Prime Minister Hawke similarly helped to launch\nthe Center for Australian Studies at the University of\nTexas at Austin. The Australian Government contributed A$\n50,000 to toward the Texas Center's establishment. The\nestablishment of the Australian Center completes a\n\"sister\" center arrangement.\nThe Centre will encourage joint research projects and will\nsponsor seminars, possibly including workshops for\nteachers of American stu;dies in Australian high schools.\nMost funding will come from the corporate sector.\nUNCLASSIFIED\n12.\n11.\n91\n08:57\nPM\nP07\nUNCLASSIFIED\nPOINTS TO BE MADE AT MEETING WITH ACADEMICS\n(DEDICATION OF AUSTRALIAN CENTER FOR AMERICAN STUDIES)\n-- Thank you for joining me in launching the Australian Centre\nfor American Studies.\nOur two nations share much in common - culturally,\nhistorically, even linguistically. But differences do\nexist, and we can and should do more to foster greater\nunderstanding.\no\nThere is much that we can learn from the other: in\neducation, the sciences, trade and economics. Study and\nexchange in these areas will not only benefit our two\nnations, but enrich the lives of those involved.\n-- Mutual understanding is not only enriching, but also is a\nvital prerequisite to peace and prosperity.\nThe Fulbright Program has brought about the exchange of\ntens of thousands of Australians and Americans. Among\nthe many distinguished alumni of that program are my host\nin Sydney yesterday, Nick Greiner, and U.S. Ambassador\nTom Pickering, who received his Master's Degree from\nMelbourne University.\no\nThe benefits of educational interchange come in many\nways. The late Gordon Samstag, an American artist who\ntaught at the South Australia School of Fine Arts,\nendowed that school a scholarship fund of six million\ndollars to support Australian students' study abroad.\n-- Earlier today Prime Minister Hawke spoke to me about his\ndesire to expand educational exchange between our two\ncountries. I support this initiative and look forward to\ngetting the recommendations of the panel of U.S. and\nAustralian educators and officials who will be reporting to\nus on how to proceed.\n-- In 1988, Prime Minister Hawke helped to launch the Center for\nAustralian Studies at the University of Texas at Austin,\ncontributing 50,000 Australian dollars to the Center. Today\nI am pleased to announce that the United States Information\nAgency is similarly contributing 50,000 U.S. dollars to the\nAustralian Centre for American Studies.\n:\nI hope this center will lead to an expansion of American\nstudies in Australia.\n- The challenge the future holds is for us to find new ways to\nincrease mutual understanding. I am confident that the\nAustralian Centre for American Studies will open many new\nways.\n12. 11. 91 06:57 PM\nP08\nDrafted: EAP/ANZ : Embassy Canberra/BWoo\n12/9/91 SEEAPGEN 6876 ext. 7-7828\nClearances: EAP LDAnderson\nEAP/FO:JBecker, Acting\nEAP/ANZ : SStanfield\nUSIA:RLaing\nD:JWarlick\nP:MMcMillion\nE:SAlexander\nMidiculans\n(Library)\n3\nAusEmb\n797-3000\nniversity Ignorantia?\nBoynton\nChristopherSweeney (will call Mon.)\nSmith/Aarhus\nDraft One\nDecember 16, 1991r\nA:MELBLNCH\nPRESIDENTIAL REMARKS: BUSINESS LUNCHEON\nMELBOURNE, AUSTRALIA\nFRIDAY, JANUARY 3, 1991\n[Acknowledgements] Thank you for that introduction, and for\nthe honor of addressing this luncheon. // Your National Anthem\nspeaks of a land \"abound[ing] in Nature's gifts, of beauty rich\nand rare. \" // Barbara and I feel richer for the rare privilege\nof being with you today. //\nTen years ago this May, I visited Australia to mark the\nthirtieth anniversary of the ANZUS Treaty. / Last June, my\nfriend, Prime Minister Hawke, made his fifth visit to Washington, his\nwhere we met in the Oval Office. // What he said then I repeat\nhe said thison Her campaig\ntoday: \"What we want is not going to fall into our lap. The\nobligation is to work together to get it. \" //\nI am here to talk of that work -- and how, together,\nAustralia and America can build a better world. / We will build\nit through fidelity to freedom, and private enterprise. / We\nwill build it through trade that is both free and fair. / Our\nfriendship is based on common language, heritage, and origins.\nWe must use it to promote prosperity at home and democracy\nabroad. //\nYesterday, I was reminded of this alliance in a vivid,\nmoving way. I visited the Australian War Memorial, and saw the\ngraves of heroes who gave their lives so that mankind might be\n2\nfree. // We have stood side-by-side in World War I -- where,\nincredibly, more Australians died than Americans -- and in World\nWar II, Korea, Viet Nam, and of course, the Gulf. // We have\nsacrificed in war to achieve a better peace. Working together --\nfighting together -- for a world where the force of law outlasts\nthe use of force. //\nWe term this the New World Order -- a world of peace,\nopportunity, and human dignity. It is as inevitable -- though\nnot as imminent -- as tomorrow. // It is a vision Australia is\nhelping shape. You have encouraged a larger role for the United\nNations -- and I salute you. / You helped shape the framework\nfor the Cambodia peace settlement agreed to by warring factions -\n- and I assure you: Here, too, we will work together. America\nwill not abandon the search for stability in this region. //\nMore than 150 years ago, President Andrew Jackson appointed\nJ.H. Williams as the first American counsel in Australia. /\nArriving from Boston, Williams was greeted by an editorial: \"We\nregard his arrival,\" read the Australian paper, \"as a pledge of\nincreasing intimacy between the two countries, from which mutual\nadvantages may be expected to flow. \" //\nOne year ago, in the Persian Gulf conflict, the world saw\nwhat those \"advantages\" meant. You were quick to condemn the\nIraqi invasion / to endorse economic sanctions / and to send\nships to engage in the multi-national coalition. / I want to\nthank you for sending your medical teams and special divers, as\nwell -- and for providing humanitarian relief, such as medical\n3\npersonnel and water purification equipment and services, to Kurds\nand Iraqis fleeing Saddam's oppression. //\nLast year, Australia stood fast so that liberty could stand\ntall -- yet such insight is hardly new. // For years, you sought\nto focus world attention on what today are world concerns. For\ninstance, in 1984 the \"Australia Group\" was created -- and its\ntwenty-two nations now are dedicated to preventing the use and\nspread of chemical and biological weapons. // To global\nproblems, you believe in multilateral solutions. You know that\nthe Old Isolationism is really the Old Ignorance. //\nThere are those who predict that recent events in Europe and\nAsia will create a more isolationist America. They could not be\nmore wrong. // We've been down that road before -- and, believe\nme, it's a dead-end street. America once tried to isolate itself\npolitically, and ended up fighting two world wars. We tried it\neconomically -- and the result was a world depression. //\nWe are all children of the same humane and loving God. We\nare all also members of the same world community. // So we\nintend to intend to strengthen our already steadfast commitment\nto Asia and the Pacific region. // We want to expand democracy,\nfree expression, freedom of worship, and, yes, free markets. //\nWorking together, we can increase the two-way trade between this\nregion and US which already totals over $300 billion. //\nYou know, someone mentioned to me that the flag of Australia\nis the only one to fly over a whole continent. // You're like\nthat other Nation, my native Texas. / You do things big. // So\n4\nit is with trade. / We must reject the protectionism which\nshrinks markets and throws people out of work. We need\ncooperation, not confrontation, to increase trade and open\nmarkets -- securing the prosperity which stems from jobs. //\nIn the United States, nearly half of our GNP growth between\nUSTR\nIn 1990\n1985 and 1990 flowed from exports. Two years ago, our\nWalters\nmerchandise exports to Australia were $8.5 billion -- up $188\nIn 1990,\nmore\nthan\nmillion from 1989\nOverall, the United States exported nearly\n$520\n$700 billion of merchandise and services\nsupporting, directly\nand indirectly, a record 7.2 million jobs. //\nI salute Prime Minister Hawke for policies to foster greater\nopenness and competitiveness in the economy. They have created\nin the elimination of most import quotas, and reductions in\ndomestic subsidies and tariffs. // I also applaud how you have\nhelped strengthen the international economic system --- spurring a\nregional effort to promote freer trade by eliminating trade\nbarriers and establishing common . //\nThe Australian poet, Adam Lindsey Gordon, wrote, \"Question\nnot, but live and labour till yon goal be won.\" The Prime\nMinister labored to create the Asia-Pacific Economic Cooperation\n(APEC), a key economic forum. Since APEC's first ministerial\nmeeting in Canberra 2 years ago, it has mobilized all fifteen\nparticipants to push for substantive progress in the GATT Uruguay\nRound. / APEC has also explored ways countries in this region\ncan cooperate to achieve sustainable growth, increase employment,\nand preserve the environment. APEC's goal is also ours: To\n5\npromote economic cooperation among Pacific Rim market economies,\nincluding the United States. //\nIt is true America and Australia generally agree on goals.\nIt is also true that sometimes we differ on means. // One\ndifference is use use of the Export Enhancement Program (EEP) to\ncounter the agricultural subsidies of the European Community. I\nLet me be clear: I oppose such subsidies. They burden the\ntaxpayer. They reduce the benefits of free trade. They make\nindustry less competitive. //\nIn an effort to defuse tensions over EEP, an Australian\ndelegation recently met with a team from our Department of\nAgriculture. We heard your perspective on the current world\nmarket situation, and your plea for sensitivity to Australian\ntrade. / Australian officials have expressed interest in\nholding follow-up talks early in this new year. I hope that the\nlong-term gain for Americans and Australians from a successful\nUruguay Round will outweigh the short-term pain. //\nI have agreed to greater bilateral dialogue on this and\nother economic issues. We must, and will, seek understanding in\nthe future -- just as we have in the past. // We can be proud of\nworking together over the last five decades. Yet a record is not\nsomething to stand upon. A record is something to build upon. //\nWe must expand our bilateral relationship in ways which will\nbenefit mankind from to New Hampshire. // We all share the\nsame environment. So last April, we agreed to pursue energy\npolicies which will increase exports while preserving our natural\n6\nresources. // We know -- as Disraeli said -- that \"our children\nare the trustees of our posterity.\" So yesterday we launched the\nAustralian Center for American Studies. This new national center\nwill expand bilateral links by developing programs of practical\nvalue to business, education, and the universities. / We hope\nthis new center will be a forum where interdisciplinary study and\ncontemporary debate will cause future generations to say of\nAmerica and Australia, in the words of the great Protestant hymn:\n\"Bless be the ties that bind.\" //\nThese ties are economic, military, social, cultural. They\nrest on shared values -- love of family, faith in God, pride in\ncountry, love of the unknown. // The first pictures of Neil\nArmstrong's adventure on the moon were beamed from Australia's\nradio telescope at Parkes to a waiting world. Later, in return,\nApollo XV was named \"Endeavor\" after Captain Hook ship -- in\nthe hope of many future endeavors between our two Nations.\nThis new year, let's look forward to our next century\ntogether. It is indeed our \"obligation\" to expand the bonds of\nfriendship for ourselves, and our children. Let's help them meet\nthe challenges of their time, as we have in ours: Building the\npeace / creating jobs / increasing the benefit of God's bounty\nfor all. Thank you very much, and may God bless Australia and\nthe United States of America.\n# # #\nthe rev w who Sue in\nStates.\nLet me assure you that we\ntoo, are committed to remaining\nengaged throughout the world. There are those who predict that\nrecent events in Europe and Asia will lead to a more isolationist\nAmerica. This could not be farther from the truth. America\ntried to isolate itself politically from the world in the past,\nand ended up fighting two bloody world wars. We also tried\neconomic isolation that only helped to set off a devastating\nworld depression.\nWe plan to strengthen our already steadfast commitment to\nAsia and the Pacific region in the decades ahead. For one\nreason, this area has become our largest and fastest-growing\ntrade partner. Two-way trade between the region and the US now\namounts to more than $300 billion.\nCooperation and dialogue on economic issues can only benefit\nour respective economies. We must continue this openness in our\nrelationship, and work for greater collaboration in our trade\nrelations, particularly as we both continue to face economic\ndifficulties on the domestic front.\nThe American economy and American jobs increasingly depend\non free trade and open markets. In the United States, nearly\nhalf of our GNP growth between 1985 and 1990 was attributable to\nIn1990\nexports. Last year, our merchandise exports to Australia were\nDto\n$8.5 billion, increasing $188 million from 1989.\nIn 1991\nthe\n1990\nUnited States exported nearly $700 billion of merchandise and\nfigure\nservices. A record 7.2 million jobs were supported directly and\nindirectly by U.S. merchandise exports alone in 1990."
}