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Melbourne Business Lunch 1/3/92 [OA 8332] [2]
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Melbourne Business Lunch 1/3/92 [OA 8332] [2]
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Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Speech Backup Chronological Files
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Originally Processed With FOIA(s):
FOIA Number:
S; 2003-0345-F; 2004-2265-S
S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Speechwriting, White House Office of
Series:
Speech File Backup Files
Subseries:
Chron File, 1989-1993
OA/ID Number:
13788
Folder ID Number:
13788-017
Folder Title:
Melbourne Business Lunch 1/3/92 [OA 8332] [2]
Stack:
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26
22
1
6
DEC 10 '91 11:55
FROM USTR PUBLIC AFFAIRS
PAGE. . 001
ASIA AND PACIFIC
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C. 20506
Date:
12/10/91
No. Of Pages:
12
(Excluding cover page)
TO: NAME:
Co./AGENCY:
PHONE #:
FAX #:
Carol Aarhus
White House
x7750
X 6218
FROM:
Sandra Kristoff, AUSTR
(202) 395-3430
Nancy Adams, DAUSTR
(202) 395-4755
Laura Kneale Anderson, South Asia and Pacific
(202) 395-6813
Peter Collins, South East Asia and India
(202) 395-6813
Terence Mulligan,Special Assistant, Asia and Pacific
(202) 395-6813
Tommie Johnson
(202) 395-3430
Diane Parker
(202) 395-6813
FAX#:
(202) 395-3512
CONTACT:
If There are any problems please call: (202) 395-3430, 4755, 6813
SUBJECT:
info on Australia
/
DEC 10 '91 11:55 FROM USTR PUBLIC AFFAIRS
PAGE. 002
AUSTRALIA
ECONOMIC BACKGROUND
Although, in area, Australia is the size of the contiguous United
States, its markets and production capability are limited by a
small domestic population of 17 million people. While
Australia's agricultural and minerals sectors are export-
oriented, its manufacturing and services sectors are focused on
the domestic market.
Because of its small domestic market, Australia has long
protected its manufacturing sector through tariffs and other
measures. Since 1983, however, the Labor Government under Prime
Minister Bob Hawke has adopted policies to foster greater
openness and competitiveness in the economy. These policies have
resulted in the elimination of import quotas in all but three
sectors (textiles, clothing and footwear) and reductions in
domestic subsidies and tariffs.
The Australian economy is currently in a recession. In the
fiscal year ending in June 1991, real GDP declined by
2.4 percent. Manufacturing output is stagnant, while
unemployment has been rapidly increasing. In June 1991, the
unemployment rate stood at 9.4 percent.
Currently, around 67 percent of Australia's exports are
agricultural and mineral products. Because of the high
volatility of international commodity prices, Australia's terms
of trade vary greatly. In the past two years, its terms of trade
have declined significantly as the weakening global economic
situation has resulted in marked declines in non-fuel prices.
In the fiscal year ending June 1991, Australia experienced a
small global trade surplus of $2.0 billion. This represented a
significant improvement over the 1989/90 fiscal year, when
Australia recorded a trade deficit of $2.5 billion.
Australia's total exports in the 1990/91 fiscal year were
$40.3 billion, an increase of 8.3 percent over 1989/90. Japan is
Australia's leading export market, followed by the United States.
Australia's top four exports, in order of importance, are coal,
wool, gold and wheat.
Australia's total imports in the 1990/91 fiscal year were
$38.3 billion, a decline of 3.5 percent from 1989/90. The United
States, Japan and the EC each provide around 22 percent of
Australia's total imports. Australia's major imports are motor
vehicles, data processing equipment, aircraft, petroleum products
and capital equipment.
DEC 10 '91 11:56
FROM USTR PUBLIC AFFAIRS
PAGE. 003
- 2 -
In 1990 the U.S. trade surplus with Australia was $4.1 billion,
$347 million lower than in 1989. U.S. exports to Australia were
$8.5 billion in 1990, representing a 2.2 percent increase over
1989. Australia was the United States' eleventh largest export
market in 1990. U.S. imports from Australia totaled $4.4 billion
in 1990, a 13.7 percent increase over 1989.
MAJOR TRADE ISSUES
Broadcasting restrictions
Television programming: On January 1, 1990, the Australian
Broadcasting Tribunal (ABT) implemented new standards for
Australian television programming which effectively establish
local content requirements. These standards require that a
certain portion of total television programming between 6:00 a.m.
and midnight be of Australian origin. The programming quota is
set at 40 percent for 1991, and is scheduled to rise to
50 percent by 1993. The U.S. film industry is concerned that its
Australian sales will be adversely affected when the programming
quota reaches 50 percent.
Television commercials: Under program standards that took effect
in 1986, the ABT requires that all television advertisements have
a minimum of 80 percent Australian content. In addition, the ABT
prohibits broadcasting of foreign-produced animated commercials.
The ABT's restrictions have had demonstrable commercial effects
on U.S. interests.
The ABT will revise these regulations effective January 1, 1992,
to require that 80 percent of all commercials be of Australian
origin. In other words, the new regulations will establish a
20 percent quota for foreign-produced commercials. This quota
will also apply to foreign-produced animated commercials.
As a result of these restrictions, we placed Australia on the
Special 301 priority watch list in April 1991. We are currently
pressing Australia to include commitments to liberalize these
restrictions in its services offer in the Uruguay Round.
Copyright issues
Exclusive rental rights for sound recordings: The current
Australian copyright law fails to provide any rights to record
producers or composers to control the commercial rental of sound
recordings. In July 1990, the Australian record industry
proposed that the law be amended to provide such a right. In
July of this year, Australian Attorney-General Michael Duffy
announced that he was rejecting this proposal.
DEC 10 191 11:57 FROM USTR PUBLIC AFFAIRS
PAGE. 004
- 3 -
The U.S. recording industry reports that video shops in Australia
have begun to expand their rental business to include compact
discs, and that CD-only rental shops are also emerging. The
industry is concerned that the Attorney-General's announcement
will lead to a dramatic increase in the number of such rental
shops, threatening $150-200 million in annual U.S. sales of sound
recordings in Australia. We are seeking a provision to protect
rental rights in the Uruguay Round TRIPs negotiations.
Parallel imports: The Australian Parliament is considering a
bill to amend Australia's Copyright Act to permit parallel
imports of foreign books. The U.S. publishing industry is
seeking an exemption from this bill for textbooks. Most U.S.
books are distributed in Australia through British publishing
houses. College textbooks, on the other hand, are generally
shipped directly from U.S. publishers in response to requests
from instructors who have committed to use them in their courses.
U.S. publishers are concerned that allowing parallel imports of
textbooks into Australia will open the market to low-quality
editions of textbooks that they sell at concessionary prices to
developing countries. The industry estimates current U.S.
exports of textbooks to Australia at around $20 million annually.
Procurement
Australia is not a signatory to the Government Procurement Code.
We included Australia in our Title VII report to Congress last
year, citing Australian offset requirements on certain civilian
procurements in the form of local content or joint venture
commitments. Partially as a result of Australia's inclusion in
the Title VII report, Australia held consultations with us in the
fall of 1990 as part of an information-gathering exercise on the
possible benefits of Code membership.
This past spring, Australia took some steps to trim back offset
requirements at the federal level. Nevertheless, Australian
officials have indicated that they intend to postpone a decision
on whether to join the Code pending the outcome of the current
Code negotiations, as they believe that membership in the current
Code would offer few benefits to Australian firms.
DEC 10 '91 11:57 FROM USTR PUBLIC AFFAIRS
PAGE. 005
- 4 -
U.S. agricultural policies
The U.S. EEP program remains a politically contentious issue in
Australia. In an effort to defuse domestic tensions over EEP, an
Australian delegation met with a team from USDA in August in
order to present Australia's perspective on the current world
market situation for wheat and seek greater sensitivity to
Australia's trade interests. Australian officials have expressed
interest in holding followup talks in Canberra in early 1992.
Australian officials have been somewhat sensitive to our
arguments that the EC holds the primary responsibility for the
current agricultural subsidy war, and have made public statements
condemning EC export subsidies. In addition, an Australian
delegation met with EC agricultural officials early this fall to
highlight the effects on Australian exports of subsidized EC
wheat sales. Nevertheless, the EEP program remains a volatile
political issue in Australia.
DEC 10 '91 11:58
FROM USTR PUBLIC AFFAIRS
PAGE 006
1991 National Trade Estimate Report on
FOREIGN TRADE
BARRIERS
Office of the United States Trade Representative
DEC 10 '91 11:58 FROM USTR PUBLIC AFFAIRS
PAGE. 007
AUSTRALIA
In 1990 the U.S. trade surplus with Australia was $4.1 billion, $347 million lower than in 1989.
U.S. merchandise exports to Australia were $8.5 billion, rising $188 million or 2.2 percent
compared to 1989. Australia was the United States' 11th largest export market in 1990. U.S.
imports from Australia totaled $4.4 billion in 1990 or 13.7 percent higher than in 1989.
The stock of U.S. foreign direct investment in Australia was $14.5 billion in 1989, $1.2 billion
higher than in 1988. U.S. direct investment in Australia is largely concentrated in petroleum
and manufacturing industries, and in particular chemicals.
1. IMPORT POLICIES
Tariffs
On a trade-weighted basis, Australian duties on manufactured goods average slightly less than 8
percent. This is higher than the average tariff levels for other industrialized countries (e.g., less
than five percent for the United States and the European Community).
Australia's tariff profile is characterized by significant "peaks" protecting sensitive domestic
industries. In addition, only a relatively small percentage of Australia's tariff rates are
GATT-bound-approximately 25 percent compared to 99 percent for the United States.
Product sectors of particular U.S. export interest which high tariff rates protect include: apparel
(up to 55 percent), carpets and other textiles (up to 35 percent), torque wrenches (21 percent),
vinyl-coated fiberglass (15 percent), aluminum screening (18 percent), and printed commercial
material including decals, telephone directories, calendars, and postcards (15 percent).
Other products subject to higher tariffs are wood and upholstered furniture (24 percent),
plywood (19 percent), paper products (5 to 10 percent), forged aluminum vehicle wheels (23
percent), leather goods (15 percent), stencil marking ink (15 percent), pacemakers (15 percent),
aluminum mill products (up to 13 percent), wine (11 to 13 percent), almonds (10 percent), and
chocolate (17 percent).
Australia uses tariff quotas to protect domestic textile, apparel, and footwear manufacturers.
On May 25, 1988 Australia announced a comprehensive program of economic reforms. The
program includes reductions in assistance for agricultural and manufacturing industries. The
chief changes are abolition of tariff quotas and accelerated tariff rate reductions. Undertaken
unilaterally, these changes indicate:
DEC 10 '91 11:59
FROM USTR PUBLIC AFFAIRS
PAGE 008
Australia
Tariffs greater than 15 percent on July 1, 1988 will be reduced in five stages to 15 percent by
July 1, 1992; and
Tariffs greater than 10 percent, but at or below 15 percent, will be phased down to 10
percent by July 1, 1992.
Tariff levels for automobiles, textiles, apparel, and footwear will remain above the 15 percent
general maximum tariff level. The tariff rate on automobiles, which is currently 37.5 percent,
will be reduced to 35 percent on January 1, 1992. The Australian government is currently
reviewing assistance arrangements for automobiles after 1992. Similarly, tariffs on light
commercial and four-wheel drive vehicles were reduced from 35 percent and 25 percent
respectively to an 18 percent rate. They will be phased down to 15 percent by 1992.
Under the Manufacturers' Content Program for Automobiles, automobile manufacturers are
assessed a 37.5 percent duty on imported components exceeding 15 percent of automobile
content by value. Automobile exporters may, however, earn up to 15 percent local-content
credit, plus an additional five percent (valued at 50 cents on the dollar) for exports of
automobiles.
Tariff rates applying to the base quota for apparel and footwear are also being reduced. The
tariffs on these products will be reduced five percentage points in cases where they were higher
than 35 percent on March 1, 1989.
Australia estimates these tariff reductions are equivalent to a 30 percent cut in average
protection levels for manufacturing industries.
These Australian measures will improve access for U.S. exports. Nevertheless, Australia's
average tariff level will remain above comparable levels for other industrialized countries and
continue to be largely unbound. The average tariff level (including agriculture) is projected to
fall to a trade weighted average of approximately 5.5 percent by 1992. However, high tariffs in
some product areas will continue to impede the export growth of some U.S.-made items.
The United States intends to pursue further reductions in tariff levels and a substantial increase
in the number of tariff bindings within the context of the Uruguay Round negotiations on market
access.
Customs Valuation
On July 1, 1989 Australia amended its Customs and Excise Legislation Law (CELA). The
United States believes that the CELA is inconsistent with the GATT Agreement on Customs
Valuation in its treatment of royalties and buying commissions. The treatment of royalties and
buying commissions under the CELA could lead to certain impermissible additions being made
to the dutiable value of merchandise.
12
DEC 10 '91 11:59
FROM USTR PUBLIC AFFAIRS
PAGE 009
Australia
The CELA also amends the treatment of the dutiability of inland freight charges by increasing
the amount of inland freight charges that can be included in the dutiable value. While not
inconsistent with the GATT Agreement on Customs Valuation, the amended Australian law
may impair or nullify tariff concessions on products that are exported on an ex-factory basis. In
accordance with its offer to consider requests to review valuation arrangements that significantly
raise protective levels, Australia agreed on October 11, 1989 to lower the duty on soda ash to
offset the increase in the dutiable value.
The value of U.S. trade loss due to this practice is unknown.
2. STANDARDS, TESTING, LABELING, AND CERTIFICATION
A nonsignatory to the GATT Standards Code, Australia maintains restrictive standards
requirements and design rules for automobile parts, electronic equipment, medical equipment,
and machinery parts and equipment. Imported products must also comply with individual state
packaging regulations. Livestock imports, with the exception of horses, are limited under
quarantine regulations to breeding animals and reproductive material. Restrictive plant health
regulations prohibit or limit the entry of many fruits, including U.S. grapes, apples, pears,
cherries, and avocados.
The United States will continue to encourage Australia to accede to the GATT Standards Code
as an initial step toward alleviating these problems.
3. GOVERNMENT PROCUREMENT
Australia has not signed the GATT Government Procurement Code. However, Australia is
reviewing its position and has conducted international discussions on this issue. Australia held
procurement talks with the United States in October 1990.
Australia requires producers of equipment sold to Telecom Australia to meet local content,
production, and export requirements under temporary industry development arrangements
(IDA) and/or offset requirements. The IDA expires June 30, 1993.
Offsets
Australia implemented an offsets policy which imposes a 30 percent offset requirement on the
cumulated imported value of products for most government contracts awarded any one firm
exceeding A$2.5 million in any one year, whenever the imported content of the purchased
products exceeds 30 percent.
This policy has been devised to gain Australian access to export markets and encourage
development of export-oriented, internationally competitive industries that provide technology
transfer, training, research and product development, and overseas marketing assistance.
Exceptions to this requirement are granted in return for a seven-year government-approved
13
DEC 10 '91 12:00
FROM USTR PUBLIC AFFAIRS
PAGE. 010
Australia
arrangement, in which the foreign exporter agrees to work with, or invest in, research and
development or an export-oriented industry with an Australian firm.
Sectors affected by the offsets policy include defense equipment, civil information technology,
communications, motor vehicles, heavy industrial equipment, medical and scientific equipment
and, indirectly, pharmaceuticals. The offsets policy also applies to most statutory civil
authorities including Telecom Australia, Overseas Telecommunications Commission, Australian
and Ansett airlines, Qantas, and Aussat. It is expected that privatization in the
telecommunications and aviation sectors will lead to changes in this policy for those sectors.
State Preferences
Most Australian states maintain 20 percent preferences for their procurements, which place
foreign suppliers at a competitive disadvantage. Victoria abolished its preference margin on
November 1, 1990.
The United States will seek liberalization of Australia's offset procurement policies within the
context of Uruguay Round negotiations. As a step in this direction, the United States will
continue to urge Australia to join and adhere to the GATT Government Procurement Code.
4. EXPORT SUBSIDIES
Export Incentives
Australia maintains several programs intended to enhance Australian exports. These include:
Export Market Development Grants Scheme (EMDG): This program aims to encourage
Australian exporters to seek out and develop overseas markets for goods, services, industrial
property rights, and technology substantially of Australian origin. Grants are available as
reimbursements to Australian residents who have incurred eligible expenditures while
developing overseas markets for Australian products or services. Grants are determined on a
maximum basis of 50 percent of eligible expenditures exceeding A$15,000 up to a maximum
reimbursement of A$250,000 in any one grant year. Claimants with export earnings exceeding
A$25 million, or who have received eight previous grants, are not eligible. Grants received are
taxable as income.
International Trade Enhancement Scheme (ITES): Support available under the ITES
program is primarily directed toward the market establishment or sales expansion of specified
goods and services in specified markets. Under the scheme participants may receive financial
support up to a total of A$750,000.
Support may be in the form of concessional loans or the direct provision of the Australian Trade
Commission (AUSTRADE) services relating to product development, export management,
establishing an overseas market presence, market research, and other AUSTRADE-approved
14
DEC 10 '91 12:00 FROM USTR PUBLIC AFFAIRS
PAGE. 011
Australia
activities. A total of A$55 million has been committed to this program, which has been
extended until mid-1994.
Australia has signed the GATT Subsidies Code and joined with the United States in GATT
negotiations to limit export subsidy use.
5. INVESTMENT BARRIERS
Limits on Foreign Investment
All new foreign direct investments in the media, civil aviation, and urban real estate sectors are
subject to Foreign Investment Review Board (FIRB) approval. In other sectors, new foreign
direct investment worth more than A$10 million is also subject to FIRB review, but is generally
approved automatically unless judged contrary to the national interest.
Legislation passed in December 1990 reduced the aggregate foreign ownership that may be held
in commercial radio and television stations from 49 percent to 20 percent in indirect interests.
The restriction on direct interests remains at 20 percent. The legislation also stipulates that no
more than 20 percent of the directors of a broadcasting licensee company may be foreign
nationals. Direct and indirect ownership by individual foreign providers of broadcasting
services may not exceed 15 percent under the new law.
In September 1990 the Australian Parliament authorized the Australian government to partially
privatize its telecommunications and aviation sectors. Australian Satellite (Aussat), the
government-owned telecommunications interest, will be sold to a foreign competitor, which will
be allowed to compete with the government-owned Telecom/Overseas Telecommunications
Commission in Australia's telecommunications sector. In the aviation sector, the sale of up to
100 percent of Australian Airlines and 49 percent of Qantas will be permitted.
In the mining sector, foreign direct investment exceeding A$10 million must normally contain at
least 50 percent Australian equity. Exceptions can be made if Australian capital is not available.
New investment in uranium projects, whether by foreign or domestic interests, is prohibited.
In January 1988 new oil and gas development projects were exempted from the 50 percent
equity and control guidelines. Projects worth more than $A10 million are now approved unless
judged contrary to the national interest.
Under Australia's Foreign Takeovers Act, acquisition of 15 percent or more of an Australian
corporation requires FIRB approval. The FIRB reviews proposals to determine whether they
accord with the national interest. However, in practice the government does not intervene if
total business assets of the corporation involved are less than A$5 million.
DEC 10 '91 12:01
FROM USTR PUBLIC AFFAIRS
PAGE 012
Australia
Local Content Requirements
Australia recently replaced its 85 percent local content requirement for passenger vehicles
produced in Australia with a protective tariff system and tariff reductions on inputs conditioned
on local content. However, Australia continues to maintain local content incentives for cigarette
leaf produced in Australia. To qualify for a relatively low duty on imported tobacco, cigarette
manufacturers have agreed to use at least 57 percent domestic leaf. This local content
requirement is scheduled to be eliminated in 1995.
The United States will pursue liberalization of this requirement within the Uruguay Round
negotiations on market access and trade-related investment measures.
6. SERVICES BARRIERS
Local Content Requirements for Broadcasting
Except for New Zealand productions, not more than 20 percent of an advertisement shown on
Australian television can be produced by non-Australians. Advertising shot entirely outside
Australia or New Zealand can be shown only if an Australian "ghost crew" is hired and kept,
usually overseas, to meet Australian content requirements. Foreign-produced animated
advertising is totally banned.
The Australian Broadcasting Tribunal (ABT), the independent statutory authority which
determines television standards, has recently proposed replacing these restrictions with a
requirement that 80 percent of all advertisements shown by each commercial television station
be of Australian origin.
In January 1990 a regulation was adopted which phases in local content in prime time television
broadcasting. By 1993, 50 percent of such broadcasts must be Australian as determined by a
complicated point system which takes into account production control as well as program
content.
Segments of the U.S. industry claim the ABT's local content requirements cost U.S. advertising
firms an estimated $72 million a year based on 15 percent of the total market. The U.S. motion
picture industry believes that the eventual 50 percent local content requirement for programming
will severely restrict their access to the Australian market.
The United States will pursue elimination of these restrictions in the Uruguay Round services
negotiations. We have also held several rounds of bilateral consultations with Australia on this
issue.
DEC 10 '91 12:02
FROM USTR PUBLIC AFFAIRS
PAGE. 013
Australia
7. OTHER BARRIERS
Bounties
Bounties (production assistance) let domestic manufacturers maintain or increase their market
share through price discounting. The use of bounties limits foreign competition at competitive
market prices.
Bounties are now in place on the following products (scheduled expiration dates are indicated in
parentheses): metal working machine tools and robots (June 30, 1991); coated photographic
film (December 31, 1992); bed sheeting (February 28, 1993); books (December 31, 1993);
shipbuilding, printed fabrics and textile yarns (June 30, 1995); and computers (December 31,
1995).
Bounty assistance increased from A$224 million in 1988-89 to A$291 million in 1989-90.
Discriminatory Sales Taxes
A discriminatory sales tax protects Australia's fruit juice industry from import competition.
Noncarbonated drinks containing less than 25 percent Australian fruit juice are subject to a 20
percent sales tax. There is a 10 percent tax for such drinks with 25 percent or more local
content. The discriminatory tax treatment of foreign and domestic juices is scheduled to expire
on July 1, 1991.
U.S. industry claims Australia's discriminatory tax costs U.S. firms a significant amount of lost
sales each year.
17
Australia
in brief
This is the 39th edition of Australia
in Brief. It provides a comprehen-
sive selection of facts and figures
on Australia in compact form. This
booklet has been prepared by
Overseas Information Branch, De-
partment of Foreign Affairs and
Trade. The help received from
Australian Government depart-
ments, associated organisations
and other authorities is gratefully
acknowledged. Money values are
in Australian currency. Weights
and measures are metric. Unless
otherwise indicated, information
is current to 31 January 1991.
Cover: A cattle muster on
Innamincka Station, a beef
raising property in South
Produced by Overseas Information Branch,
Australia. Left: Australia's
Department of Foreign Affairs and Trade,
multicultural heritage is
Editor: Brian Cummins, Designer. Ron Butters.
reflected in Australia Day
Published by the Australian Government
celebrations.
Publishing Service, Canberra, 1991.
Australia gives more than $1000
million in overseas aid annually.
19
Charter and the work of the UN's
broad range of its activities.
specialised agencies. It participates
Australia has developed strong
actively in many UN activities and
relations with ASEAN an organi-
International
has served on many of its bodies,
sation that has made an important
including the Security Council.
contribution to economic growth
relations
It has served for a number of
and political stability in the Asia-
terms on the Commission on Hu-
Pacific region. Australia has a
man Rights and resumed mem-
program of economic cooperation
Australia's international interests
bership in 1991 for a further
with ASEAN through which it
can be divided into three broad
three-year period. It has provided
supports important regional
groups:
money, personnel and equipment
projects. It also contributes sig-
geopolitical and strategic inter-
for major UN peacekeeping ac-
nificantly toward easing the burden
ests in defence of Australian sover-
tivities, contributes its assessed
of Indo-Chinese refugees in mem-
eignty and political independence;
share of the costs of all UN opera-
ber countries.
economic cooperation and trade
tions and makes additional contri-
The relationship with Indone-
expansion; and
butions. It is fully involved in UN
sia, Australia's largest neighbour,
activities involved in being a good
social development, narcotics,
has developed greater depth and
international citizen.
disarmament, arms control and
substance at both official and
Australia's diverse relation-
outer space work. Australia accepts
commercial levels. Contacts have
ships with Britain, the United States
the jurisdiction of the International
been enhanced through establish-
and Western Europe, forged by
Court of Justice and is active in the
ment of the Australia-Indonesia
history, remain important factors
development of international law.
Institute in 1989 and by the signa-
in Australian policy.
Australia has worked ener-
ture of the Timor Gap Treaty.
Relations with China, Japan,
getically towards a global ban on
Australia has long involved it-
members of the Association of
chemical weapons and convened
self in regional organisations such
South-East Asian Nations,
the Government Industry Confer-
as the UN Economic and Social
(ASEAN), New Zealand, Papua
ence against Chemical Weapons,
Commissions for Asia and the Pa-
New Guinea and other South Pa-
attended by 66 countries, in Can-
cific, the Colombo Plan and the
cific States are of particular signifi-
berra in September 1989.
Asian Development Bank.
cance to Australia. Similarly, in the
It has been a member of the
Japan is Australia's largest
Indian Ocean, Australia has im-
Organisation for Economic Coop-
trading partner and relations are
portant political, strategic and eco-
eration and Development (OECD)
based on complementary interests
nomic interests and observes and
since 1971.
and shared perceptions of interna-
considers carefully the issues of
The Commonwealth of Na-
tional issues. Cultural, scientific,
the region.
tions brings together about a
sporting and other relations are
Australia has been a consistent
quarter of the world's population
fostered by both to improve mu-
supporter of the United Nations
and Australia takes part in the
tual understanding.
Ministers and top level officials confer at
the Australia-Japan conference in Canberra.
21
preferential trade agreement in
and Berlin. Central Europe remains
favour of South Pacific Forum
a key market for Australian exports.
States the South Pacific Regional
The value Australia places on
Trade and Economic Cooperation
its long-standing relations with the
Agreement (SPARTECA).
Arab nations and Israel is high. It
Under the Australia New
supports the efforts of parties to
Zealand Closer Economic Relations
the Middle East dispute to find a
Trade Agreement, trans-Tasman
just, lasting and peaceful solution.
trade in goods and in most services
Australian trade with the region's
became free on 1 July 1990.
countries is significant.
There has been a long, close
Australia maintains friendly
relationship with the United States.
relations with independent Afri-
Government-to-government rela-
can States. It has formal relations
tions are only part of an interaction
with South Africa but has been
China is a significant market
Australia has been at the fore-
born of common experiences, cul-
prominent in opposing racist
for Australia and the relationship
front of international efforts to re-
ture and language. The ANZUS
apartheid policies and actively
is underpinned by agreements and
solve the long-standing conflict in
security treaty and major tradeand
encouraged the process of transi-
institutional arrangements (cul-
Cambodia. Australia's proposal
investment flows give particular
tion to independence in Namibia.
ture, science and technology, agri-
for a comprehensive settlement
depth to the relationship.
Australian assistance to African
culture, civil aviation, education,
based on an enhanced UN role has
The goodwill between Aus-
countries includes project support,
and the Australia-China Council).
been accepted in principle by all
tralia and Canada allows coopera-
food aid and training. Australia
A technical cooperation program,
parties.
tion on a range of objectives without
always has moved quickly and ef-
designed to help China's develop-
In the Pacific region, Australia
affecting individual national inter-
fectively to bring relief aid to the
ment, includes activities in educa-
promotes stability, welfare and
ests or commercial competition.
victims of disasters in Africa.
tion, energy, forestry, health and
economic developmentthrough a
Relations with individual
Australia has friendly and
industrial technology.
range of practical development
Western European countries are
useful relations with a number of
Australia's relationship with
assistance programs.
based on shared cultural and his-
countries in Latin America and the
the Republic of Korea has devel-
Australia and Papua New
torical links and reinforced by the
Caribbean, sharing many interests,
oped significantly in recent years.
Guinea have a special and close
presence in Australia of large
particularly in multilateral organi-
Korea has emerged as a major
relationship. Since Papua New
numbers of former citizens of those
sations.
economic power in its region and
Guinea achieved independence in
countries and by significant eco-
Nuclear policies in Australia
has become one of Australia's most
1975, the relationship has encom-
nomic ties. The European Com-
are based on strong support of the
important trading partners.
passed a broad range of govern-
munity (EC) is our biggest source
Nuclear Non-Proliferation Treaty.
Australia is building a broad
ment and non-government
of both imports and investment.
Policy on the sale of its uranium
range of contacts with Vietnam, in
activities.
Australia has augmented its
includes a condition that it will not
particular trade and investment
Australia and New Zealand
representation in Central Europe
be used for military or explosive
links.
have entered a non-reciprocal
by opening new missions in Prague
purposes and that buyers accept
Soldiers rappelling down
22
a cliff during training.
23
gineering and development of
International Atomic Energy
strategic and international policy.
Agency safeguards.
About 60 per cent of the civilians
Australia participates in key in-
work directly for the ADF. This
ternational discussions on environ-
mental issues and is in the forefront
means that the Defence organisa-
of nations implementing multilat-
Defence
tion is one of Australia's largest
eral environmental initiatives.
employers offering hundreds of
The Department of Foreign
different careers and many differ-
The Australian Defence Force
Affairs and Trade conducts an
ent types of job training.
(ADF). exists to implement Gov-
The Australian Defence Force
overseas cultural exchange pro-
ernment defence policy.
Academy (ADFA) offers univer-
gram in cooperation with the Aus-
The ADF comprises the Royal
tralia Council and other cultural
sity courses in disciplines such as
Australian Navy (RAN), the Army
bodies. The Australia Abroad
engineering and arts. Other
and the Royal Australian Air force
Council was established in 1990 to
officer training takes place at
(RAAF). The ADF is commanded
give greater drive and direction to
HMAS Creswell for Navy, the
by the Chief of the Defence Force
Royal Military College of Aus-
projecting Australia overseas.
(CDF) who is supported by a tri-
All of Australia's overseas aid
tralia, Duntroon, for the Army
service headquarters in Canberra.
(more than $1000 million a year in
and RAAF College Point Cook
CDF and the Secretary of the De-
for the Air Force.
recent years) is given in grant form.
partment of Defence have joint re-
The aid program focuses on those
Extensive technical and ap-
sponsibility for administration of
areas in which Australia has par-
prenticeship training is also pro-
the Defence Force.
vided. Defence offers 600 to 800
ticular expertise, including educa-
The ADF is a total force made
tion, agriculture and infrastructure
vocational traineeships in over 25
up of almost 70000 permanent per-
development.
skill categories each year.
sonnel and more than 28 000 re-
Australia contributes to the
serve personnel. Of the permanent
Defence self-reliance
education in Australia of about 18
personnel, about 46 per cent are in
Our defence policy is based on self-
000 students from developing
the Army, 22 per cent are in the
reliance. This means that we give
countries, mostly at tertiary level.
Navy and 32 per cent in the Air
priority to the ability to defend
The Australian International De-
Force. Females make up almost 11
ourselves independently with our
velopment Assistance Bureau
per cent of the permanent force
own resources, within the frame-
(AIDAB) pays about $80 million a
and almost 16 per cent of the re-
work of our alliance and regional
year to subsidise this program. A
serve force. Service personnel are
associations.
new education policy based on
supported by some 25000 civilians
The strength of defence self-
merit and equity is providing more
in the Department of Defence who
reliance depends on making the
opportunities for students from
perform a range of tasks including
most of this nation's financial, in-
poorer and isolated developing
personnel and financial adminis-
dustrial, technological and human
countries.
tration, equipment acquisition, en-
resources.
24
25
The Australian Government's
possesses a wide range of capabili-
This will mean more efficient
The RAAF's 20 P3C Orion air-
1989-90 Budget allocated $8670
ties that are needed at each level of
operations in northern and west-
craft and the Jindalee Over-the-
million to defence, representing 9.5
defence in depth.
ern coastal waters and on exer-
Horizon-Radar (OTHR) form the
per cent of total Budget outlay and
The fleet currently includes:
cises in South East Asia.
basis of a surveillance system which
2.3 per cent of gross domestic
three guided-missile destroyers
The Army
will cover our vast northern ap-
product.
(DDGs), four guided-missile frig-
ates (FFGs) five destroyer escorts
Sufficient Black Hawk helicopters
proaches. Jindalee, now being de-
are being brought into service so
veloped in Australia, can detect
Defence strategy
(DEs), six Oberon-class subma-
The development of the ADF to-
rines, 15 Fremantle-class patrol
the Army will have the ability to
aircraft and ships at great distances,
transport a company group of 150
giving early warning of their ap-
wards the next century in line with
boats and more than 20 other ves-
sels, including minehunters, takers,
troops over a radius of 160km in
proach. The Orions can also detect,
defence self-reliance is based on
oceanographic craft, utility ships
one operation. The Army also is
identify and, if necessary, attack
the strategy of defence in depth
getting new equipment such as the
submarines and surface ships, us-
which can be thought of as having
and tugs.
AUSTEYR rifle, 105mm Hamel
ing torpedoes and Harpoon mis-
three layers.
The RAN is acquiring eight
new Australian-built ANZAC
field guns, bridging equipment and
siles. An Orion aircraft can remain
The first is intelligence and
disruptive-pattern camouflage
flying for over 12 hours and sweep
surveillance so that we can moni-
frigates to replace the destroyer
uniforms to allow for more effec-
up to 647 000 square kilometres of
tor our region closely and watch
escorts. In addition, six new sub-
ocean.
marines, known as the Kockums
tive operations. Other equipment
the ocean and airspace to our north,
Type 471, are being constructed
used by the Army includes Leop-
The RAAF's F-111C and F/A-
for an enemy approach.
in South Australia, to replace the
ard tanks and M113 armoured per-
18 Hornet are both strike aircraft,
The second layer is strike and
sonnel carriers.
and the Hornets also form an in-
interdiction - the interception of
Oberon submarines from the mid
Reserve units recently have
terceptor fighter force against en-
hostile forces detected in our sea
1990s. They will be the most ad-
and air approaches.
vanced conventional submarines
been incorporated more effectively
emy aircraft. Both can fire the
in the world. Another two FFGs
into the Army, and they now have
Harpoon anti-shipping missile.
The third is land and inshore
new roles in northern surveillance
The RAA Foperates the Boeing 707,
defence, which requires a flexible,
are being built in Australia and
and the protection of facilities in
the C130 Hercules and the Caribou
highly mobile army with air and
will come into service in the 1990s.
emergencies.
as transport aircraft.
naval support able to provide for
Other new equipment being
It is planned to base some
The RAAF VIP transport fleet
the immediate protection of Aus-
built in Australia includes 16 new
regular units permanently in the
has been re-equipped with Falcon
tralian interests against enemy in-
Seahawk multi-role helicopters
north. The 2nd Cavalry Regiment
900 aircraft. Four of the Boeing
cursion in our vast northern areas.
which will be able to operate with
is scheduled to move to the North-
707s are being modified so that
The success of defence self-re-
the FFGs and the ANZAC frigates.
ern Territory in 1992.
they can refuel aircraft in mid-air,
liance depends on a high standard
The Fleet's main base is in
which will extend greatly therange
of human skills and the right mix of
Sydney, but the new base at
Royal Australian Air Force
of aircraft such as the F/A-18.
technology.
HMAS Stirling near Perth will
The Royal Australian Air Force
The RAAF provides vital mo-
allow the RAN to operate as a
(RAAF) operates modern fighter,
bility for the Army in land opera-
Royal Australian Navy
two-ocean navy - in the Indian
bomber, surveillance, support,
tions. The Hercules is a versatile
The Royal Australian Navy (RAN)
Ocean as well as in the Pacific.
transport and trainer aircraft.
transport aircraft and can carry al-
Housing construction is a key
element of economic activity.
27
stores and equip-
Activity
on
outback
land-
The Australian economy recovered
fly over 6000 km
strongly from the recession of the
The Caribou
early 1980s but the external deficit
loads over shorter
The Economy
increased after the downturn in
conduct paratroop
international commodity prices in
Australia's economy has under-
the mid-1980s.
perates from bases
gone considerable diversification
In 1987-88 and 1988-89 there
capital cities and
and expansion during the past 30
was a marked increase in Austral-
bases being
years.
ia's terms of trade and private final
hern
Australia.
Before World War II, Australia
demand rose strongly. Real GDP
depended largely on primary pro-
(adjusted for terms of trade) rose
industry
duction, but the demands of the
6.2 per cent and 6.4 per cent re-
heavily on Aus-
war and a strong post-war immi-
spectively. This strong growth,
new
equipment,
gration program spurred industrial
particularly in business fixed in-
overhaul and
and economic growth.
vestment, resulted in an increease
turn, these activi-
The manufacturing sector grew
in the current account deficit.
the
development
particularly rapidly after the war.
In 1989-90, as a consequence of
in Australian
In the past 20 years the main ex-
a tight policy stance by the Gov-
nefits for exports.
pansion has been in the tertiary
ernment, the withdrawal of the
new
equipment
sector. During this time, consid-
terms-of-trade stimulus and a
the new subma-
erable investment has also taken
downturn in the construction sec-
ships, have lo-
place in export-oriented mining
tor, growth in private final demand
per cent or more.
and energy projects.
slowed significantly. GDP growth
he Jindalee Over-
Although reliance on rural
(adjusted for the terms of trade)
also exploit
production has diminished over
slowed to 2.9 per cent with through-
inventions of
the years, Australia is still an im-
the-year growth rates indicating a
scientists.
portant producer and exporter of
more significant slowdown. The
farm products. It leads the world
current account deficit, while
in wool production and is a sig-
higher in 1989-90 as a whole, began
nificant supplier of wheat, barley,
to fall over the course of the year.
coal, iron ore and sugar.
Rural industries account for
Inflation
about four per cent of production,
Inflation rose sharply in the early
mining contributes about seven per
1970s and eased only gradually
cent, manufacturing about 17 per
over the next decade. It rose again
cent and the tertiary sector the rest.
in the mid-1980s to eight to nine
28
29
per cent in the wake of the depre-
economy. Those sectors which
throughout most of the 1970s and
In the September quarter of
ciation of the Australian dollar as
faced the strongest demand in 1988-
early 1980s. The Accord thereby
1990, average weekly earnings for
commodity prices fell. In 1989-90,
89 - construction, manufacturing
contributed importantly to the very
fulltime adult employees were $577
inflation rose to 8 per cent in re-
and wholesale and retail trade -
strong growth in employment and
($477 for all employees).
sponse to rising mortgage interest
were also the sectors where pres-
the recent surge in investment. The
and consumer credit charges. This
sures eased the most in 1989-90.
share of non-farm income ac-
Balance of payments
compares with the 7.3 per cent in-
The unemployment rate fell to
counted for by profit is at histori-
The balance of payments tradition-
crease recorded in both 1987-88 and
6.2 per cent in 1989-90 from 6.6 per
cally high levels.
ally has comprised a current ac-
1988-89. Inflation rates in 1989-90
cent in 1988-89, although it rose
Wages policy increasingly has
count deficit largely financed by a
tended to slow in line with the
during the course of the year.
taken on the role of a catalyst for
net inflow of private capital. This
slowing economy.
productivity improvement and la-
reflects Australia's position as a
Profits and wages
bour market reform: economy-
net capital importer drawing on
The Labour market
Over the past seven years the Prices
wide wage increases linked to
foreign savings to allow faster de-
The labour market deteriorated in
and Incomes Accord between the
inflation have given way to wage
velopment of domestic resources.
1982-83 but wage restraint contrib-
Government and the Australian
determination arrangements
In 1989-90, the current account
uted to a sharp improvement in
Council of Trade Unions (ACTU)
which place greater emphasis on
deficit increased by $3.2 billion to
employment generation from 1983-
has played a crucial role in un-
negotiations at a more decentral-
$21.2 billion, or from 5.3 per cent to
84 to 1985-86. The strength of de-
winding the fundamental wages/
ised level.
5.7 per cent of gross domestic
mand also worked to maintain the
profits imbalances prevalent
Under the latest Accord agree-
product. The merchandise trade
growth in opportunitiesin 1987-
ment there were tax cuts and a $12
deficit fell from $3.9 billion in 1988-
88 and 1988-89 and into 1989-90.
Rate of Inflation
a week wage increase (for all work-
89 to $3.3 billion in 1989-90. The net
In 1989-90, employment
ers covered by awards) subject to
services deficit increased from $3.1
1983-84
6.9
growth slowed marginally in re-
union commitments to continue the
billion in 1988-89 to $4.1 billion in
sponse to a slowing economy, ris-
84-85
4.3
restructuring of awards on pay
1989-90.
ing 3.8 per cent compared with 4.1
and conditions of employment so
per cent in 1988-89. During the
85-86
8.4
they meet the modern competitive
Fiscal policy
year, however, labour-market
requirements of industry. It will
The Federal Government an-
86-87
9.3
pressures eased substantially.
play a vital role in the development
nounces its budget of revenue and
Employment growth eased from a
87-88
7.3
of a more flexible and skilled
expenditure in August each year.
peak of 4.9 per cent over the year to
workforce and more efficient forms
The Federal Budget covers the fi-
the September quarter 1989 to 2.5
88-89
7.3
of work organisation. As well, there
nancial year starting on the pre-
per cent over the year to the June
89-90
is scope for additional increases
ceding 1 July and ending on the
8.0
quarter 1990.
negotiated at the enterprise level
following June 30. It must be passed
Consistent with the sectoral
0
5
10
15%
based on achieved increases in
by both Houses of Parliament. The
pattern of output, the easing in la-
Figures for 1983-84, and 84-85 have
productivity. This will provide
Government may also announce
bour-market pressures during
been adjusted to take into account the
further impetus to improved flex-
some initial budgetary measures,
1989-90 was not uniform across the
effects of the introduction of Medicare
ibility and productivity.
popularly known as a 'mini-
30
31
Budget', just before the beginning
cent of GDP, a fall of 6.5 percentage
Capital gains tax
majority of industry sectors, pro-
of the financial year.
points since 1983-84.
As part of the income tax system, a
posals are approved readily unless
The six State and two Territo-
As a result of fiscal restraint,
capital gains tax is levied on the
judged contrary to the national in-
rial governments also present an-
the net public sector borrowing
realised gains made on assets pur-
terest. The policy is administered
nual budgets, usually soon after
requirements (including public
chased on or after 20 September
in a practical manner and is based
the Federal Budget has been an-
enterprises and State and Local
1985. An allowance is made for
on guidelines rather than inflex-
nounced. The States receive
governments) has fallen from a
inflation before gains are taxed.
ible rules.
slightly less than half their revenue
peak of 7.1 per cent of GDP in 1983-
Individuals pay the tax at the rel-
Investment is restricted in civil
from the Federal Government.
84 to 0.1 per cent in 1989-90.
evant personal rate and companies
aviation, the media, banking, min-
Tight fiscal policy has reduced
pay the tax at the company tax rate.
erals (including uranium) and some
the Federal Budget deficit from a
Company taxation
categories of real estate. Specific
peak of 4.1 per cent of GDP in 1983-
Companies, other than non-profit
Double taxation agreements
Australian equity guidelines (usu-
84 to a surplus of 2.2 per cent of
companies, are liable to pay tax if
In addition to unilateral relief from
ally 50:50) apply to new mineral
GDP in 1989-90. The Budget for
the taxable income is $1 or more.
double taxation provided by a
projects, excluding oil and gas.
1990-91 provides for a fourth suc-
The rate of tax payable by compa-
foreign tax credit system, Australia
These guidelines are flexible.
cessive surplus.
nies was reduced from 49 per cent
has in force comprehensive agree-
Around 32 per cent of total
to 39 per cent for 1988-89 and be-
ments for the avoidance of double
Banking
outlays is allocated to social secu-
yond. An imputation system of
taxation with Britain, the United
The banking system comprises the
rity, 10 per cent to defence and 6.5
company taxation, introduced from
States, Canada, New Zealand,
Reserve Bank of Australia (the
per cent for public interest debt.
1 July 1987; has eliminated the
Singapore, Japan, Germany, the
central bank) and 32 commercial
Transfers to State and Local gov-
previous double taxation of dis-
Netherlands, France, Belgium, the
banking groups. The Australian
ernments account for about 29 per
tributed income. Distributed in-
Philippines, Switzerland, Malay-
financial environment underwent
cent of Federal outlays, with about
come is effectively taxed only once
sia, Sweden, Denmark, Norway,
considerab change in the 1980s as
half being for specific purposes and
by crediting the company tax paid
the Republic of Korea, Ireland,
the Government deregulated fi-
half for general purpose assistance.
on the underlying income against
Malta, Italy, Finland, Austria,
nancial markets. In December 1983,
Since 1985, the Government
the income tax payable by domes-
Papua New Guinea and Thailand
the exchange rate was floated and
has introduced a range of tax re-
tic shareholders. Non-resident
Agreements with China, Sri Lanka
most exchange controls abolished.
forms resulting in a broadening of
shareholders who receive franked
and Fiji have been signed but have
Almost all borrowing, lending and
the tax base and a marked increase
dividends (where company tax has
not yet entered into force.
interest controls on the banking
in compliance, with a consequent
been paid on the distributed in-
system were removed. Having
boost to revenue. The principal
come) are exempt from dividend
Foreign investment
sought applications from both do-
reason behind the significant im-
withholding tax. A rebate of tax is
Australia's foreign investment
mestic and foreign interests to es-
provement in the financial posi-
generally allowable for all divi-
policy is framed with a view to
tablish new banks, banking licences
tion of the Federal Government has
dends paid between domestic
encouraging foreign investment in
tooperate in Australia were granted
been continued reductions in out-
public companies and for franked
Australia and ensuring that such
to 15 foreign banks, in some cases
lays. In 1990-91, Federal spending
dividends received by private do-
investment is consistent with the
in joint ventures with Australian
is estimated to represent 23.5 per
mestic companies.
needs of the community. In the
partners.
32
Cotton is an important
export commodity.
33
Banks from nine other coun-
had fallen by over 5 percentage
tries now operate in Australia: the
points from their recent peaks,
United States, Britain, New Zea-
while prime rates had declined by
land, France, China, Germany, Ja-
4.5 points to around 16 per cent.
pan, Hong Kong, and Singapore.
Exchange rates
Monetary policy
Australia moved to a floating ex-
Monetary policy in Australia is
change rate system in December
Trade
implemented by the Reserve Bank
1983. Under this system, market
forces determine the value of the
Australia is a middle-level trading
of Australia. Although the Aus-
nation, about 20th in the world in
tralian Government has ultimate
Australian dollar at any given time.
terms of the value of imports and
responsibility for monetary policy,
the central bank has an independ-
Structural policy
exports. These each comprise about
ent charter to implement those
Australia has made significant
15 per cent of the national income.
policies that best contribute to price
progress in microeconomic reform,
Traditionally, Australia has
stability, the stability of Australia's
progressing on a broad front in-
imported a wide range of goods
currency, the maintenance of full
cluding reform of financial markets,
and services from a large number
employment and the economic
taxation, primary and manufac-
of countries, and has financed these
turing industry protection, avia-
imports mainly through exports of
prosperity and welfare of the
Australian people. Monetary
tion, telecommunications and
primary commodities. Although
government business enterprises.
their share in total export values is
policy is conducted on a day-to-
day basis by the Reserve Bank
The reform has set out to achieve
gradually declining, commodities
higher sustainable growth in living
still dominate the export base,
dealing in Federal Government
standards through improved effi-
comprising about two-thirds of
Securities to influence conditions
in short-term professional money
ciency and economic performance.
export revenues in 1990. Australia
markets.
The Government has estab-
is a key world supplier of many
lished the Industry Commission as
important commodities.
Financial conditions
an independent advisory body to
Chief among these are coal,
Interest rates have fallen substan-
undertake inquiries in areas such
wool, wheat, alumina, beef, iron
tially over the last year, reversing
as energy generation and distribu-
ore and sugar. During the 1980s
much of the sharp tightening in
tion, rail transport, the automotive,
there was some development of
monetary policy over 1988 and
dairy and sugar industries, and
new export sectors in resource ar-
1989. During 1990, monetary policy
mining and minerals processing.
eas such as gold, aluminium, gas
was eased five times in response to
and crude oil. There was signifi-
falling inflation and slowing eco-
cant downstream processing in
nomic conditions. As a result, at
some important export sectors.
the end of October 1990, cash rates
Australian greasy wool is increas-
ingly processed locally and ex-
Mining uranium by
34
the open cut method at
35
the Ranger mine.
ported as scoured wool and baux-
market, receiving just over a quar-
ite shipments have been replaced
ter of total exports in the 1980s. The
by exports of processed alumina
dynamic Asian economies (Hong
and aluminium.
Kong, Singapore, Taiwan and the
In the last five years, export
Republic of Korea) and the coun-
volumes have grown by over 30
tries of ASEAN are Australia's
Resources
per cent, dominated by 80 per cent
fastest growing markets. The
growth in elaborately transformed
United States, New Zealand,
and energy
manufactures (ETMs) and 50 per
United Kingdom, China, Germany,
Australia has become one of the
cent growth in services. Within
Italy, France and Canada are also
world's major producers of min-
ETMs, the largest contributions to
key trading partners.
erals and metals. It has major de-
growth came from ADP equip-
Australia promotes and facili-
posits of bauxite, black and brown
ment, transport equipment, in-
tates trade through its multilateral,
coal, mineral sands, gold, lead, zinc,
dustrial machinery, glass and clay
regional, bilateral and domestic
iron, copper, nickel, manganese,
goods, professional and scientific
economic policies. It aims to con-
uranium and diamonds.
equipment, dyestuffs and phar-
tribute to the strongest possible
A major producer and exporter
maceuticals. Australia is develop-
multilateral outcomes through the
of energy resources and one of only
ing a competitive edge in
GATT. Australia has a particular
five net energy exporters in the
high-technology engineering ex-
interest in freer and fairer agricul-
OECD, Australia is the world's
ports such as scientific/medical
tural trade; in this context, Aus-
largest exporter of coal and a major
equipment, (including photo, op-
tralia initiated the Cairns Group of
exporter of uranium, and exports
tical and timing equipment), tel-
Fair Trading Agricultural Export-
significant quantities of light crude
ecommunications and aerospace.
ers, comprising 14 countries of the
oil (although it imports heavy
Tourism dominates services
Asia-Pacific region, Latin America
crude). It exports increasingly large
exports and this sector is attracting
and East Europe.
quantities of liquefied natural gas.
large amounts of foreign invest-
More recently, Australia initi-
ment. Australia is also looking to
ated the Asia Pacific Economic
Crude oil and natural gas
diversify its services exports into
Cooperation (APEC) process, a
Substantial oil and gas discoveries
areas such as education (training
high-level consultative process de-
have been made in Australia in the
and consultancy), health (medical
signed to identify and project more
last three decades. There is good
services) and information (devel-
effectively the common interests of
potential for more, as many sedi-
oping computer software).
regional economies in an open
mentary basins have been explored
Australia's trade with the
multilateral trading system and to
only lightly. Discoveries in recent
countries of the Asia-Pacific region
facilitate the economic dynamism
years in the Timor Sea and off
has expanded rapidly. Well over
of the region through a practical
Western Australia underscore this
half its exports are destined for
program of economic cooperation
potential and tests of new explora-
Asia; Japan is its largest export
at the sectoral level.
tion concepts are encouraging.
Continuous rod coiling of copper adds
38
value to the export of this mineral.
tralia. More than half the country's
bre optics. The industry has been
output of refined copper is ex-
developing projects for further
ported. Total annual copper pro-
processing producing, for exam-
duction is about 250 000 tonnes.
ple, titanium dioxide pigment,
high-purity zirconia and rare
Nickel
earths.
Australia ranks third in world mine
output of nickel, and exports nearly
Other minerals
allofit. In Western Australia, where
The manganese mine on Groote
economic resources of nickel sul-
Eylandt, in the Northern Territory,
phide ore are large, the ore is
is one of the world's largest mines
processed to nickel matte and metal
and Australia is one of only three
for export. Nickel laterite ore mined
major world exporters of the min-
in Queensland is processed into
eral. Ore and refined forms (ferro-
dertakings and one of the world's
propriate mix of energy supplies to
alloys and electrolytic manganese
larger irrigation and power
meet its changing needs.
nickel oxide but the reserves are
dioxide) are also produced. Tin
projects. Thescheme, which diverts
The nation is committed to
nearing exhaustion.
ore is another mineral produced,
water inland from coastal water-
continued research into and devel-
Gold
most of it exported to Malaysia for
sheds, has seven power stations, a
opment of renewable energy, en-
Australia is the third largest pro-
refining.
pumping station, 16. large and
ergy conservation, efficient energy
ducer of gold in the Western world,
Australia is also the world's
many smaller dams, 145km of
use and alternative fuels. It main-
with production in 1989-90 reach-
largest producer by volume of
tunnels and 80km of aqueducts,
tains a major geological and geo-
ing a record 223 tonnes compared
diamonds and the world's leading
and took 25 years to build. Its
physical research and investigation
with only 17 tonnes in 1980. Exports
producer of sapphires and opals.
generating capacity is 3740 mega-
program.
in 1989-90 were valued at $2.9 bil-
watts.
Australia is an active member
lion. The rapid growth of the
Electricity
of the International Energy Agency.
Each state has its own pattern of
Energy policy
Australian gold industry in the
Domestically, there is consid-
1980s was based on an attractive
electric power development. Elec-
Energy policy in Australia is for-
erable consultation on energy
gold price and the development of
tricity is generated mainly by
mulated to be consistent with ma-
matters. The main advisory and
innovative exploration, production
burning coal; natural gas and hy-
jor economic, industrial and social
consultative bodies are: Austral-
dro-electric power are other
objectives and its key goals are:
and management techniques.
ian Minerals and Energy Council,
sources.
security of overall energy supplies;
National Energy Consultative
Mineral sands
development of the energy
Council, National Energy Research,
Australia is the leading producer
Hydro-electric energy accounts for
exports sector; and
Development and Demonstration
of rutile, zircon, monazite and al-
about a ninth of all electricity gen-
efficiency in the domestic energy
Council and the National Oil Sup-
luvial ilmenite. All of these miner-
erated in Australia. The Snowy
sector.
plies Advisory Committee.
als have high-technology
Mountains hy droelectric schemei
The policy is intended to pro-
applications in aerospace work,
south-east Australia is one of the
vide the right framework to ensure
advanced ceramics, lasers and fi-
country's greatest engineering un-
that Australia has access to the ap-
ARAFURA SEA
TIMOR SEA
DARWIN
Nhulunbuy
(Gove)
Welps
10am
1130aml Noon
GULF OF
CARPENTARIA
INDIAN OCEAN
Port Hadlend
Dempler
Exmouth
Cemeryon
Geraldton
PERTH
GREAT AUSTRALIAN BIGHT
area
Bunbury
sperance
A
LAI
Port Lincoln
SYDNEY
libany
Wollongong
INDIAN OCEAN
BERRA
SOUTHERN OCEAN
Mount Gamble
Bega
Geel
Sale
TARMAN SEA
Bumle
nport
TASMA
unceston
2
HOB
Fashion clothing for children
has been well accepted on
43
export markets.
mestic innovation has resulted in
Aerospace industry
overseas licensing of many Aus-
There are about 80 companies in
tralian-devised products and
the industry employing about 14
processes.
000 Industry association figures
Tertiary sector
indicate significant growth in ac-
The tertiary or service sector is the
tivity in the latter 1980s with turno-
Manufacturing
largest segment of the Australian
ver in 1988 of approximately $845
economy and it has been growing
million. Of this, nearly $400 mil-
industry
in importance relative to other
lion represented export sales.
major sectors in recent decades.
In little more than a generation
The major employer in the sector is
Chemicals and plastics
Australians have cast aside their
retail and wholesale trade, followed
The Australian chemicals and
former image as a basically rural
by community services, finance,
plastics industries use local and
society and embarked on an era of
property and business services and
imported materials to produce a
rapid industrial development.
the construction industry. Em-
wide range of intermediate and
Today, Australia has a broad in-
ployment in the sector accounts for
end products. These include pet-
dustrial base using advanced tech-
EUS!
about 78 per cent of total Austral-
rochemicals, fertilisers, plastics,
nology. Manufacturing ranges
ian employment, an increase from
pharmaceuticals, agricultural
from fashion garments to food,
64 per cent in the mid-1960s. The
chemicals, paints, soaps and deter-
complex electronics to household
sector's share of the GDP is about
gents.
appliances, base metals to preci-
67 per cent.
sion instruments, oil refining and
Electrical and
to plastics.
Small business
electronic industries
Aided by Australia's political
A small business can generally be
The Australian electrical industry
stability, rich natural resources,
defined as one which employs up
meets a substantial part of local
steady population growth and
to 100 people in manufacturing in-
demand for domestic and indus-
substantial capital investment from
dustries and up to 20 people in
trial products. Australia produces
within the country and overseas,
non-manufacturing industries.
a wide range of electrical goods,
manufacturing industry accounts
There are 600 000 small busi-
including motors, transformers,
for 17 per cent of gross domestic
ness in Australia and an additional
domestic appliances, control gear
product and more than 20 per cent
150 000 in the farming sector. They
and cables. The electronics indus-
of exports. One-sixth of the coun-
account for 96 per cent of all firms,
try supplies much of the local
try's workers are employed in
half of private sector employment
market for telecommunications
manufacturing industry.
and a third of all employment in
equipment. Other products in-
Many Australian companies
Australia. It is estimated 86 per
clude advanced scientific and de-
manufacture overseas products
cent of all manufacturing firms in
fence electronics, small computers
under licence. A high level of do-
Australia are small businesses.
and terminals and consumer au-
High technology design PSZ valves are sought for
health and oil industry applications around the world.
45
sisted through a bounty on ships
rails, rods, wire, coated and
built in Australia and through im-
uncoated steel sheets, and tinplate.
port restrictions on second-hand
Basic steel is produced at Port
vessels.
Kembla and Newcastle in New
Processed food
South Wales, and at Whyalla in
South Australia. Raw steel output
Australia enjoys the climatic and
in 1989-90 was 6.7 million tonnes.
geographic environment necessary
for the cultivation and processing
Paper and pulp
of virtually all types of food prod-
Production of paper and
ucts, and food processing is the
paperboard including newsprint
largest single segment of manufac-
was about 1.87 million tonnes in
turing industry in the country, em-
1989-90. This represented about 70
ploying 176 364 people. Turnover
per cent of apparent local con-
in 1988-89 totalled $3 billion.
sumption. Wood pulp production
totalled one million tonnes.
Motor vehicles
The motor vehicle industry (in-
Aluminium
dio equipment. Demand for
cluding the component sector) oc-
The aluminium industry includes
manufacturing techniques and
cupies an important place in
two fully integrated (bauxite/
computers, electronic components
project management skills. Most
and consumer electronic equip-
Australian manufacturing indus-
alumina/aluminium/ semi-
companies in the industry can work
try and employs more than 65 000
fabricating) groups, Comalco and
ment is mostly supplied by imports.
on a range of general engineering
people.
Alcoa of Australia, while a third
The industry employs about 60000
projects. The industry employs
In 1989, 448 514 new cars and
producer, Alcan Australia, operates
and is increasingly export oriented.
about 85 000 (eight per cent of total
station wagons were registered.
a smelter and semi-fabricating
Engineering
manufacturing employment) and
Another 158 985 utilities, panel
plants. A fourth producer, Tomago,
has an annual turnover of about
A wide range of heavy plant - such
vans, trucks and buses were also
a joint venture comprising Euro-
$5500 million.
as oil rigs, power stations and min-
registered during the year.
pean and Australian interests, is
ing equipment - is produced in
Shipbuilding
confined to aluminium smelting
Iron and steel
Australia. Lighter products include
principally for export.
Small to medium-sized ships are
machine tools, industrial robots,
Australia's biggest company, The
In 1990, production of alu-
constructed in a number of Aus-
die castings, forgings and many
Broken Hill Proprietary Company
minium was 1.27 million tonnes.
tralian shipyards, including small
Limited (BHP), is the predominant
types of measuring and recording
Exports in 1989 reached 935 000
trading vessels and specialised
producer of iron and steel products
instruments. Major engineering
tonnes, more than 70 per cent of
vessels such as tugs, dredges,
in Australia. BHI's various divi-
projects in Australia in recent years
production, and valued at about
barges, fishing vessels, passenger
sions produce nearly the whole
have given local industry opportu-
$2100 million.
ferries and oil rig service vessels.
range of steel products, including
nities to develop new technology,
The shipbuilding industry is as-
plate, billets, structural shapes,
Australia's fine wool is keenly
47
sought for high quality
clothing and textiles.
and live sheep $2869 million; wheat
about four per cent to gross domes-
$2507 million; barley $344 million;
tic product.
rice $179 million; other grains and
In highly urbanised Australia,
oilseeds $320 million; sugar $1050
the relative importance of the agri-
million; dairy products $692 mil-
cultural sector has been declining
lion; raw cotton $540 million; fruit
but agricultural industries remain
Primary industry
and wine $299 million.
large earners of foreign exchange
The gross value of rural pro-
and account for about 30 per cent
The ravages of drought, bushfire
duction in 1989-90 was $23 877
of total export income.
and flood have not prevented the
million. Wool accounted for about
world's driest inhabited continent
$6072 million; livestock slaughter-
Sheep and wool
from becoming an important pro-
ing $5640; wheat $2838 million;
Australia is the world's largest
ducer and exporter of agricultural
barley $710 million; other grains
producer of the fine wools used in
products.
and oilseeds $961 million; milk
clothing. The wool is produced by
Although about a third of the
$1787 million; fruit $1190 million;
about 76 000 woolgrowers owning
country is unsuitable for any form
vegetables $1223 million; cotton
about 175 million sheep grazing on
of agricultural or pastoral use and
$568 million.
about half the area of the continent.
another third supports only pas-
About four-fifths of Austral-
toral activity, Australia leads the
Agricultural output
ia's sheep are the merino breed,
world in wool production and is a
There are about 127 500 properties
the best fine wool sheep, and Aus-
significant supplier of cereals, dairy
in Australia which have an esti-
tralian wool is distinguished by its
produce, meat, sugar and fruit.
mated value of agricultural opera-
consistency of fibre. Ninety-seven
Technical innovation and re-
tions of $20 000 or more. These
per cent of Australian wool is ex-
search, particularly in soil fertility,
cover about 470 million hectares,
ported, mainly in the greasy form,
pasture production and crop yields,
or 61 per cent of the total land area.
though up to 20 per cent of the total
have helped to cut farm costs and
In contrast with many other coun-
is part-processed. Australia sup-
open up new land for cultivation.
tries, about 90 per cent of all agri-
plies about half of the wool used in
Australia has been able to carry
cultural land is in its natural state
apparel, and around 30 per cent of
out commercial farm production
and is capable only of limited de-
all greasy wool produced in the
under desert and semi-desert con-
velopment. This land is used
world. The main markets are Ja-
ditions and the techniques and
mainly for light grazing by cattle or
pan, the Soviet Union, China and
equipment developed are finding
sheep. Agricultural production has
the EC.
markets in countries with similar
risen substantially since the early
climates.
1950s
Meat
The total value of rural exports
Despite a declining rural la-
Australia markets meat in more
in 1989-90 was $15 144 million.
bour force, rural output has in-
than 100 countries and supplies
Major rural exports included wool
creased by more than 150 per cent
the domestic market where the
valued at about $3706 million; meat
since 1950-51, and contributes
consumption of meat is the third
Picking grapes that are destined to be
48
used in Australian vintage wines.
highest in the world at about 100
Preliminary 1989-90 production is
kg per person a year. The main
14.1 million tonnes, and this is fore-
meats exported are beef and veal,
cast to increase to 15 million tonnes
mutton and lamb. Australia has
in 1990-91. Wheat-growing is
about 24 million head of cattle.
highly mechanised and involves
Australia has developed strict
more than 40 000 farmers in a
standards of slaughtering,
wheatbelt that stretches for 4000
processing, cutting, packing and
km through five mainland states.
presentation of meat.
The main markets are China, Egypt,
From the early 1970s until 1984,
Japan and Iran.
Australia was the world's major
exporter of beef and veal. The EC
Coarse grains
passed Australia as the major ex-
Barley, oats, sorghum, maize and
porter in 1984. The US remains by
triticale are the main coarse grain
far Australia's largest customer,
crops. Small quantities of rye and
followed by Japan. These two
millet are grown. In 1988-89,
markets account for 81 per cent of
barley production was estimated
total beef and veal exports. Aus-
at 4.1 million tonnes; sorghum 0.9
tralia also exports pigmeat and
million tonnes; oats 1.6 million
poultry.
tonnes; maize 202 000 tonnes; and
Queensland, and the remainder
Wine
triticale 163 000 tonnes.
from New South Wales. In 1989-
Wines from Australia have con-
Dairying
High quality products include
Rice
90, exports of sugar were 2.9 mil-
tinued to gain acceptance in other
lion tonnes, the main markets being
countries despite very keen com-
butter, cheese, processed milk and
Production of rice for 1989-90 was
casein. Of the $692 million earned
Japan, Canada, Republic of Korea,
petition. Sweden is the largest ex-
estimated at 894 000 tonnes.
from dairy exports in 1989-90, $189
Malaysia and China.
port market for Australian wine,
million was from cheese. The in-
Oilseeds
followed by the United Kingdom,
Fruit
New Zealand, Japan and the US.
dustry is located mainly in the
Oilseed production in 1989-90 was
Australia exports a variety of fruits,
About 370 million litres of wine
south-eastern region of the main-
estimated at 773 000 tonnes.
including apples, pears and citrus,
land and in northern Tasmania,
Oilseeds grown in Australia in-
was produced in 1989-90 from a
and canned, frozen and dried fruit.
where rainfall is ample and fairly
clude sunflower seed, soyabeans,
vintage of 544 000 tonnes. The
Australia has about 23 million fruit
State of South Australia produces
reliable.
cottonseed, linseed, rapeseed and
trees and about 58 000 ha of vine-
safflower seed.
about 50 per cent of Australia's
Wheat
yards. In addition, about 123 000
total wine production. Exports in
Sugar
ha of land is devoted to vegetables.
Improved varieties and manage-
1989-90 were estimated at 42 mil-
The total 1989-90 gross value of
ment techniques have increased
Nearly 95 per cent of Australia's
lion litres, four times the level of
yields per hectare. About 9 million
production of almost 28 million
production of fruit and vegetables
the mid-1980s.
was $2522 million.
ha were sown to wheat in 1989-90.
tonnes of sugar cane comes from
Australia has a highly skilled
and mobile workforce.
51
membership of 3.4 million The
number of areas, including em-
Australian Council of Trade Un-
ployment. It also seeks to elimi-
ions (ACTU) has an official affili-
nate discrimination involving
ated membership of 160 unions
sexual harassment.
Labour
representing more than 2 750 000
The Racial Discrimination Act
workers.
1975 prohibits discrimination in
and industrial
employment on the grounds of
Labour force
race, colour, descent or national or
relations
For the 12 months ended October
ethnic origin.
1990, Australia's labour force aver-
South Australia and New
Working conditions in Australia
aged 8.43 million or 63.7 per cent of
South Wales have introduced leg-
are regulated by legislation and by
the civilian population aged 15 or
islation to prohibit discrimination
industrial awards. Awards are le-
more.
on the grounds of age.
gal documents made by industrial
In October 1990, 6.18 million
tribunals which set out details of
people (79 per cent of the employed
Working hours
pay and conditions of employment.
labour force) worked fulltime.
The standard working week in
They have the same role as a collec-
Manufacturing, wholesale and re-
Australia has been reduced pro-
tive agreement in many other
tail trade, construction and com-
gressively to 38 hours in most in-
countries. Under the Constitution,
munity services accounted for 61
dustries, worked usually from
the power of the Australian Par-
per cent of all full-time workers.
Monday to Friday. Employees in
liament to regulate labour relations
service occupations are paid more
is limited to the prevention and
Wages and conditions
(' penalty rates') when they work at
settlement, by conciliation and ar-
Federal and state industrial tribu-
weekends.
bitration, of industrial disputes
nals set rates of pay and conditions
extending beyond state limits. State
of employment for 85 per cent of
Paid leave
parliaments can regulate indus-
Australian employees covered by
Legislation or awards give four
trial relations within their States.
awards, determinations or indus-
weeks paid annual leave to almost
trial agreements. Most are mini-
all employees. Many employees
Associations and unions
mum rates and management and
receive an annual leave loading of
The conciliation and arbitration
labour may negotiate above-award
17.5 per cent on their pay.
system encourages unionism, op-
rates. Over-award payments are
erating on the premise that em-
widespread. Award rates are fixed
Labour market
ployers and employees will be
without regard to the sex of the
For the 12 months ended October
represented before tribunals by
employee.
1990, employment grew by 2.6 per
registered organisations. Fifty-four
The Sex Discrimination Act
cent. In October 1990, the unem-
per cent of employees belong to
1984 seeks to eliminate discrimi-
ployment rate was 7.6 per cent in
Australia's 295 trade unions. At 30
nation, on the grounds of sex,
seasonally adjusted terms.
June 1990, unions had a financial
marital status or pregnancy, in a
The Science and Technology
53
centre houses working displays
illustrating scientific principles.
computer hardware and software.
search body. It plans and carries
As well as undertaking re-
out a program of scientific research
search within its own agencies-
except in defence, nuclear energy
notably the Commonwealth
and clinical medicine. It delivers a
Scientific and Industrial Research
range of scientific services to the
Organisation (CSIRO), the Aus-
Australian Government, industry
tralian Nuclear Science and Tech-
and the community. CSIRO's work
Science
nology Organisation (ANSTO), the
is directed toward rural, manufac-
Australian Institute of Marine Sci-
turing, communications and infor-
and technology
ence and the Defence Science and
mation industries; knowledge and
Technology Organisation-the
management of the natural envi-
Australian scientists and research-
Australian Government provides
ronment; minerals and energy in-
ers continue to make contributions
financial support for research in
dustries; and construction
to the advancement of science and
tertiary education institutions, re-
industries. CSIRO employs about
technology. They have been re-
search institutes and industry.
7000 people in more than 100 labo-
sponsible for many advances in
ratories and field stations.
the manufacturing, mining and
Nuclear science
agricultural industries. Australia
and technology
Space
has made significant contributions
The Australian Nuclear Science
The Australian Space Office (ASO),
in medical science, particularly in
and Technology Organisation was
in the Department of Industry,
immunological and cancer re-
established in April 1987 as the
Technology and Commerce, is the
search. Australian medical scien-
successor to the Australian Atomic
national body responsible for space
tists have found a cure for peptic
Energy Commission. ANSTO is
industry development and space
ulcers and are working on detect-
the major centre for research and
science.
ing molecules that reject trans-
development in nuclear scienceand
plants. Their success with in vitro
Antarctic research
related technologies in Australia.
techniques in countering human
Australia carries out specific sci-
sterility has attracted international
Commission for the Future
entific research programs in the
interest.
The ustralian Government estab-
Australian Antarctic Territory.
Australia has been a pioneer in
lished a Commission for the Future
solar energy research, and scientists
in 1985 to study and promote the
Science and technology
also are investigating other poten-
social and economic effects of
awareness
tial energy sources, including wind
technological change.
The Science and Technology
and sea power. Australian ad-
Awareness Program was estab-
vances in technology include the
CSIRO
lished in May 1989 to raise
development of an internationally
The Commonwealth Scientific and
awareness of the economic and
accepted aircraft landing system, a
Industrial Research Organisation
social importance of science and
heart pacemaker, a bionic ear' and
is Australia's main scientific re-
technology.
54
Australian scientists have
developed photonics for high
55
technology communications.
Meteorology
tralian National Railways network.
The Bureau of Meteorology has an
As well, the Federal Government
important role in the World Mete-
maintains an interest in all trans-
orological Organisation's world
port matters and financially assists
weather watch which has three
meteorological centres-in Mel-
Transport and
State railway and road construc-
tion projects.
bourne, Moscow and Washing-
communications
It provides about $1.3 billion
ton-and regional centres
annually to the States for the con-
including one in Darwin.
Australia's vast distances and rela-
struction and maintenance of na-
Cooperation
tively sparse inland population
tional, arterial and local roads.
have always presented major chal-
Formal bilateral agreements on
lenges in the development of
Shipping
scientific and technical cooperation
efficien transport and communica-
Australia trades with about 200
exist between Australia and the US
tions systems.
countries and territories and annu-
(1968), India, USSR (both 1975),
The most direct air route be-
ally exports almost 260 million
Federal Republic of Germany
tween Sydney on the east coast and
tonnes of freight by sea. Imports
(1976), China, Japan (both 1980)
Perth on the west coast is 3200km,
by sea total almost 24 million
and Mexico (1981).
and the most direct route between
tonnes.
Astronomy
Darwin in the north and the most
Australia is served mainly by
One of the world's largest optical
southern capital city, Hobart, is
foreign-flag vessels in its overseas
even further at 3700km. Added to
telescopes, the 3.9-metre Anglo-
trade. The Australian flag share of
Australian Telescope, is operated
this problem is the fact that more
tonnage is about 4.2 per cent.
at Siding Springs Mountain, New
than 60 per cent of the population
The Australian National Line
live in and around the six State
South Wales, under an agreement
operates a regular overseas ship-
between the British and Australian
capitals.
ping service in five of Australia's
Governments. The Australia Tel-
Transport
overseas trade routes to Europe,
escope, opened in 1988, consists of
Japan-Korea, and South-East Asia
Australia's transport system in-
and New Zealand.
a 64-metre-diameter steerable
cludes nearly 840 000km of roads,
parabolic reflector near Parkes,
240 000km of unduplicated air
Ports and harbours
NSW, six steerable and moveable
routes and 40 000km of govern-
Australian ports are the responsi-
22m antennas at Culgoora, NSW,
ment railways.
bility of State government authori-
and a steerable antenna at Siding
The State governments deal
ties and departments or private
Springs. It is operated as a national
mainly with roads, ports, intrastate
operators. Australia has about 70
facility by CSIRO Division of
shipping and railways. The Fed-
ports of commercial significance.
Radiophysics.
eral Government deals with ship-
The main ports serve the State
ping and air transport between
capitals and industrial and mining
States and Territories and the Aus-
centres.
56
57
Railways
During this period there were
8600 aircraft of all types and about
postal articles each working day.
Australia's railways areowned and
substantial increases in population
47 000 pilots licensed to fly them.
Telecom Australia employs
operated mainly by government.
and vehicle numbers so that the
Thirty-three international air-
more than 89 000 full-time staff. It
New South Wales, Victoria,
reduction in road deaths was a sig-
lines, including Qantas, operated
operates 5156 telephone exchanges
Queensland and Western Australia
nificant achievement. Neverthe-
regular services to Australia in 1989.
serving seven million telephone
have their own railway systems.
less, road crashes are still the largest
Scheduled domestic airlines
services with more than eight mil-
The metropolitan railways in
single cause of death for Austral-
carry about 14 million passengers
lion telephones.
Adelaide are owned and operated
ians aged under 45 years.
a year. Regular airline services
More than 99 per cent of Aus-
by the South Australian Govern-
Road Transport
have been operating since 1921
tralia's telephones are connected
ment. The Federal Government
when West Australian Airways
to automatic exchanges.
Road transport carries some 75 per
railways are run by the Australian
began operations over a 1923km
The Overseas Telecommuni-
cent of Australia's domestic freight.
National Railways Commission
route linking Geraldton and Derby.
cations Commission is responsible
The industry is highly competitive,
trading as Australian National.
Today domestic airlines cover
for public telecommunications
comprising small and large opera-
Three railway gauges are used
about 13 760 million passenger-
services between Australia and
tors using diverse vehicle types
in Australia: 1067mm, 1435mm and
kilometres a year, linking the capi-
other countries, its external terri-
including road trains, freighters
1600mm. Since December 1982,
tal cities and other main centres of
tories and ships at sea.
and smaller vehicles. There is no
the mainland capital cities have
population.
The commission has a staff of
economic regulation of the freight
been connected by a standard-
industry although it is subject to
Communications
nearly 2000. Telephone services,
which are available to more than
gauge (1435mm) line, except for
safety regulations administered by
The main communication systems
Adelaide-Melbourne. Privately-
230 overseas destinations, and telex
State governments.
-postal, telegraph and telephone-
owned railways operate in each
were established and have since
services provide about 73 per cent
Energy in transport
of revenue. International sub-
State serving mining, agricultural
been maintained in Australia by
and industrial areas. The largest pri-
Transport uses about 70 per cent of
scriber dialling is available to more
governments.
than 180 destinations.
vate railway operations serve iron-
fuel sold in Australia.
Since July 1975, responsibility
ore mining in the north-west of
Since 1979, incentives have
for post and telecommunications
Satellite system
Western Australia. Queensland has
been offered for the conversion of
has been vested in two statutory
AUSSAT Proprietary Limited,
an extensive tramway network to
vehicles to liquefied petroleum gas
authorities - the Australian Postal
owned by the Federal Government,
serve mills in sugar-producing areas.
and many government and pri-
Corporation (Australia Post) and
is the owner and operator of Aus-
vate fleet vehicles have been con-
the Australian Telecommunica-
Road safety
tralia's domestic satellite system.
verted.
tions Corporation (Telecom Aus-
Wearing seatbelts, anti-drink driv-
AUSSAT provides high-quality
ing laws, improved vehicle safety
Aviation
tralia). Australia Post operates
radio and television services
about 4500 post offices and 6000
and better roads all have consider-
and telecommunications links
Isolated communities and long
vehicles. It serves about 5.7 million
to all areas of mainland Australia
ably influenced road safety in Aus-
distances between cities have con-
residential and 560 000 business
and associated islands and tel-
tralia. In 1988, 2888 people were
tributed to making Australia one
addresses in Australia. It employs
ecommunications links to New
killed in road crashes; some 24 per
of the most air-minded countries
nearly 35 000 people full-time
cent fewer than in 1970.
Zealand.
in the world. There are just over
and handles about 14 million
Social security provides
59
allowances for families
with children.
vere disability or retirement-or
Disabled
has been temporarily interrupted,
Those on pension because of dis-
as in unemployment or sickness.
ability and those on temporary
These payments are subject to an
sickness payment have access to
income and assets test. Certain
rehabilitation and training to see if
residency requirements also have
they can return to work.
Social Security
to be met. Pensioners and sickness
An allowance is payable to
beneficiaries may qualify for pen-
parents or guardians of a child
Australia's involvement in social
sioner concessions which entitle
whose physical, intellectual or
security began with the introduc-
them to a range of concessional
psychiatric disability requires a
tion of old-age and invalid pen-
pharmaceuticals and some
high level of daily care and atten-
sions in 1910. and maternity
optometrical and health services.
tion in the family home. A mobility
allowances in 1912. Social security
Concessions on government trans-
allowance is paid to disabled peo-
payments of this kind, then consid-
port and telephone rental are also
ple who are employed or engaged
ered radical, gained for Australia
available to pensioners.
in training and are unable to use
its reputation as a pioneer in public
Families
public transport because of their
welfare. The main components of
today's social security programs
People who have one or more
disabilities. A carer's pension is
children under 16 may receive a
available to people providing long-
are pensions for old people, the
severely disabled and sole parents;
family allowance. People who have
term care at home to a severely
certain dependent students aged
disabled pensioner or beneficiary.
benefits for the unemployed who
are seeking work and those tem-
16 to 24 also may qualify for family
porarily unable to work because of
allowance. All family allowances
ill health; and allowances for
are subject to an income test. Fam-
families with children. Estimated
ily allowance supplement (FAS)
expenditure on social security and
providesa higher level of assistance
welfare programs for 1990-91 is
to low-income working families
nearly $7487 million. Charitable
under a more stringent income test
organisations historically have
which includes an assets test.
supplemented the public social
Higher rates of FAS are available
services, often as innovators and
for older children. FAS payments
pioneers in new areas of welfare.
also may include an amount for
rent assistance for families in the
Pensions, benefits
private rental market. Both family
The Federal Government provides
allowance and family allowance
cash benefits to people whose
supplement normally are paid
source of income has either
fortnightly to the mother or female
ceased-for example, through se-
guardian.
Pre-school education is
an integral part of the
61
education system.
Primary and
tem through the amalgamation of
secondary education
institutions, leading to benefitssuch
Schooling is scompulsory in Australia
as a greater range of subjects,
until the age of 15 or 16 (varies be-
courses and categories of award,
tween states). Over 70 per cent of
better credit transfer provisions and
Education
children are educated in government
improved teaching and research
facilities/services.
schools, where tuition at primary and
Under the federal system of gov-
secondary levels is free. The majority
Australian higher education is
of Australian children (2 194 355 in
provided by 76 institutions. In 1990,
ernment in Australia, state, and
there were 299 511 full-time stu-
territory governments and non-
1989) attend government schools. In
1989, 27.6 per cent of students (837
dents, 132 852 part-time students
government school authorities are
and 52 712 external students. Aus-
responsible for providing educa-
032) were enrolled at non-govern-
tion services. The Federal Gov-
ment schools.
tralian higher education institu-
ernment provides supplementary
Secondary schooling begins in
tions offer internationally regarded
funds in the form of general re-
year seven or year eight and con-
degrees and postgraduate awards.
current and capital grants.
tinues to year 12. The most common
Colleges of technical and fur-
The Federal Government plays
type of secondary school is the co-
ther education provide training in
major industrial skills as well as
a central role in facilitating coop-
educational comprehensive or
eration of the national education
multi-purpose high school, offer-
certificates and diplomas based on
system largely through the Aus-
ing a wide range of subjects and
vocational training.
tralian Education Council.
activities.
Student assistance
Schools of the Air use two-way
Funding
In 1990, the Government assisted
radio to provide 'classroom' experi-
about 397 000 students at a cost of
The Government spent $6565.5
ence for children in the remote parts
about $993.7 million.
million on education in 1989-90.
of Australia even though they remain
Student assistance schemes
Estimated expenditure for 1990-91
physically in their own homes.
is $7486.6 million.
provide financial assistance to
The National Distance Educa-
students who are financially dis-
Pre-school and child care
tion Centre, established in June
advantaged (AUSTUDY), Abo-
1989, is examining the application
Most Australian children begin
rigines and Torres Strait Islanders
of technologies such as interactive
school before the compulsory
(ABSTUDY), geographically iso-
video, CD-ROM and CAL-CML,
school age and many attend pre-
lated or disabled students (Assist-
school centres within the school
to the development and delivery of
ance for Isolated Children) and
external courses.
system. Pre-school centres gener-
postgraduate awards.
ally enrol four-year-old children
Tertiary education
Current trends
and provide sessions for two
There has been substantial restruc-
Under the National Asian Scholar-
groups of children each day.
turing of the higher education sys-
ship Scheme, the Federal Govern-
62
Immunisation is a vital part
63
of child health care programs.
ment awards scholarships to
Aborigines
teachers and research students to
The Federal Government made a
study in Asian countries, is part of
five-year commitment to the Abo-
a strategy to help Australia be-
riginal Employment Development
come Asia-literate.
Policy (AEDP) in 1987. The policy
Health
Teacher education
aims to increase employment op-
portunities for Aborigines and
Australia's public health services
Pre-school and primary teachers
Torres Strait Islanders and assist
are two-tiered: private medical
usually complete a three or four
their economic development
practitioners provide primary care,
year diploma/degree course at a
through to the year 2000.
and a public (State-controlled) and
tertiary institution. Secondary
At the end of 1989, all State and
private hospital system provides
school teachers generally complete
Territory governments jointly
comprehensive services. A more
a degree at a university or college
of advanced education before do-
agreed toa national Aboriginal and
diversified program of care, with
Torres Strait Islander Education
community health services - in-
ing a graduate diploma education
Policy (AEP). The Federal Govern-
cluding health-centre and home
course.
ment has committed $266 million
care services - is developing.
to this initiative which aims to raise
A universal health insurance
International
Aboriginal participation and suc-
scheme, Medicare, provides Aus-
participation
cess in education to the same level
tralian residents with protection
Awards and exchanges under the
as the rest of the community.
against hospital costs (excluding
International Students sub-pro-
private patients), medical and
gram, provide opportunities for
Vocational training
optometrical care. The scheme,
students from overseas to study in
Federal Government funding
introduced in February 1984, is
Australia and for Australians to
measures are designed to encour-
partly funded by a 1.25 per cent
study overseas. Oversees students
age a cooperative national effort
levy on taxable incomes, with low-
are also able to study in Australia
with industry in the improvement
income cut-off points.
by paying the full cost of their edu-
of vocational education and train-
Under the scheme, there is no
cation to the institution. The
ing arrangements. The National
charge for public hospital accom-
number of students admitted un-
Training Board is responsible for
modation or treatment by hospital
der the full fee program is not re-
setting national skill standards on
doctors. Private patients in public
stricted by quotas. In 1990, there
the basis of proposals brought
hospitals are charged for these
were 12'134 full fee paying over-
forward by industry.
services.
seas students enrolled in higher
Medicare also provides re-
education institutions and a fur-
funds of at least 85 per cent of
ther 1015 enrolled in colleges of
government-approved fees
Technical and Further Education
charged by doctors and by optom-
(TAFE).
etrists (except where the service is
Artificial heart valves are tested in the laboratory.
65
mum outlay of $300 an individual
population. Dental care for certain
or family in a year.
disadvantaged people is provided
Medicine
by dental hospitals.
In 1990, Australia had about 38 000
Public health
doctors in active practice. About
Public health services are under-
50 per cent work as general prac-
taken at Federal, State and Local
titioners (primary care), 30 per cent
government levels. Constitution-
as specialists and 20 per cent are in
ally, State and Local governments
salaried employment.
have responsibility for providing
Ten Australian universities
public health services, but the Fed-
have medical schools which pro-
eral Government has become more
vide five- or six-year undergradu-
involved in developing and coor-
ate courses.
dinating national policies, model
Hospitals
Nursing
legislation, guidelines and stand-
provided whilea person is a hospi-
ards.
tal patient or at a day-hospital facil-
In 1990, Australia had 1072 hospi-
About 190 000 professionally reg-
The Federal Government
ity, when Medicare benefit is a flat
tals (excluding mental hospitals,
istered nurses provide care in hos-
provides funding and professional
75 per cent).
nursing homes and Repatriation -
pitals, nursing homes, home-
expertise in family planning, health
Private health insurance is
veterans' - hospitals), of which 65
nursing agencies, occupational
promotion and illness prevention,
available for private patients in
per cent were public hospitals.
health nursing services, school
drug-abuse reduction, Aboriginal
hospitals or for costs of a range of
Australia has an average five hos-
health services and community
health, women's health and disease
ancillary services, such as dental
health activities.
pital beds a thousand population.
control - in particular, sexually
services or physiotherapy.
Authorisation to practise is
transmissible diseases including
Short-stay visitors to Australia
Pharmaceuticals
controlled by registration authori-
AIDS.
must pay for all medical and hos-
Through the Pharmaceutical Ben-
ties in each State and Territory.
pital treatment. Private insurance
efits Scheme, the Government sub-
About 80 per cent of nurses work
Research
organisations will cover them.
sidises the cost of a comprehensive
in hospitals or nursing homes.
The Federal Government supports
Australia has reciprocal medi-
range of drugs to ensure Austral-
Dentistry
research by annual appropriation
cal arrangements with New Zea-
ians have access to effective and
to the Medical Research Endow-
land, the United Kingdom, The
necessary prescribed medication.
Australia has about 5 700 dentists,
ment Fund.
Netherlands, Italy, Malta and Swe-
In 1986, a program known as
mostly in private practice. Five
In 1989-90, more than $80 mil-
den. These enable short-term visi-
Australian universities have den-
the Safety Net was introduced to
lion was allocated for grants to be
tors to and from Australia to have
provide protection for families and
tal schools providing a five-year
awarded on National Health and
access to the host country's public
the chronically ill, by setting an
undergraduate course.
Medical Research Council advice.
health system for immediately
upper limit on expenditure for pre-
Fluoridation of water is widely
In addition, $2.6 million was
necessary medical and hospital
scription drugs. On 1 January
used to prevent dental decay and
allocated for public health research,
treatment.
1991, this limit was set to a maxi-
covers about 67 per cent of the
administered by the newly estab-
The detached house remains
66
the most popular dwelling.
67
lished Public Health Research and
Services for people
Development Committee.
with disabilities
Vocational and social rehabili-
Flying doctor
tation services are provided
The Royal Flying Doctor Service of
through the Commonwealth Re-
Housing
Australia provides medical care for
habilitation Services (CRS). More
The outstanding feature of hous-
people living in isolated regions.
than 90 rehabilitation units operate
ing in Australia is the high level of
Doctors travel by aircraft from
around Australia, many in country
home ownership. About 70 per
central bases and keep in touch
areas.
cent of Australian householders
with their patients by radio.
Hearing services are provided
own their own homes.
Services for the aged
through the National Acoustic
The most popular dwelling
Australia places a high priority on
Laboratories (NAL). Specialist
unit remains the detached brick
programs for elderly people.
services are provided by technical
house with tiled roof, although
Through the Home and Com-
experts in NAL Hearing Centres
there has been a steady move to-
munity Care (HACC) program the
throughout Australia.
wards higher-density housing, in-
Federal Government funds a range
cluding cluster-type developments
Child Care
such as townhouses, home units
of home and community support
The Government helps families
services, such as home help, food
and high-rise apartments. In 1989-
with dependent children, includ-
90, 137-710 new residential build-
services, community respite care,
ing those with special needs, by
and transport services, to help frail
ing units were begun (100690being
providing quality, affordable child
houses).
older people and younger people
care. The child care program is
with disabilities remain living in
Most dwellings are bought
aimed at removal of barriers that
their own homes. The Govern-
with money lent by private lending
might prevent women taking paid
ment also provides a Domiciliary
institutions such as savings and
employment.
Nursing Care Benefit to people who
trading banks, permanent build-
This approach involves gov-
care for chronically ill relatives at
ing societies and finance compa-
ernment and private child-care
nies. Savings banks account for
home.
services, employers and non-profit
The Residential Care program
around 70 per cent of all housing
organisations working together to
loans.
funds a range of organisations
increase the supply of quality, af-
which provide care in nursing
fordable child care.
Federal funding
homes and hostels. The program
The Federal Government gives
provides 100 nursing home and
money to the State and Territory
hostel places for ever 1000 persons
governments to provide rental and
aged 70 years and over.
home ownership help for the
Environmental laboratory
68
staff test a watercourse in
69
a mining area.
needy. While home purchase in
construction was $16.2 billion in
Australia is predominantly fi-
1989-90. Residential construction
nanced by the private sector, more
accounted for $19.7 billion. These
home loan innovations have been
figures are for private sector in-
developed by State and Territory
vestment.
housing authorities which are as-
The construction industry em-
Environment
sisting an increasing number of
ployed about 575 000 people in
lower-income first-home buyers
August 1990. A similar number is
Australians are increasingly in-
into home ownership.
employed in supplying the indus-
volved in conservation and other
The most recent housing
try with materials, machinery and
environmental issues. It is esti-
agreement between the Federal
professional services, with about
mated that more than 500 000 peo-
Government, States and Northern
100 000 private-sector construc-
ple are members of conservation
Territory came into effect in 1989
tion establishments operating in
groups in Australia. Since 1950,
and provided for a base level of
Australia.
the number of conservation socie-
funding of $1028 million in each of
Construction activity is wide-
ties has increased from fewer than
the years 1989-90 to 1992-93, with
spread geographically, but most
50 to more than 800.
any additional funds allocated each
concentrated in the capital cities.
year as part of the normal budget
The residential construction in-
Policy
process. In 1989-90 and 1990-91,
dustry uses the subcontract system
All spheres of government share
$1053 million and $1035 million,
and features a large number of in-
responsibility for the environment.
respectively, were actually made
dependent operators. In contrast,
The Federal Government's role is
available.
the non-residential construction
exercised mainly by the Depart-
In addition to general housing
industry is characterised by fewer,
ment of the Arts, Sport, the Envi-
assistance, the agreement provides
larger firms.
ronment, Tourism and Territories
for specific help for Aboriginal and
and by a number of statutory au-
pensioner housing, crisis accom-
thorities including the Australian
modation, mortgage and rent as-
Heritage Commission, the Aus-
sistance and the local government
tralian National Parks and Wild-
and community housing program.
life Service and the Great Barrier
Reef Marine Park Authority. Two
Construction industry
major government bodies have also
More than half (56.8 per cent) of the
been established specifically to
economy's investment expendi-
collaborate on environmental mat-
ture, which underpins economic
ters. They are the Australian and
growth, is on construction.
New Zealand Environment Coun-
Gross fixed capital expenditure
cil and the Council of Nature Con-
(current prices) on non-residential
servation Ministers.
70
71
Conservation
Amendments to the legislation
Fauna protection
in accordance with the London
A number of national programs
passed in June 1987 allow the min-
ister to direct the preparation of a
Primary responsibility for native
Dumping Convention, and the ex-
have been established to provide
fauna in Australia rests with the
port and import of hazardous
for the protection and conserva-
Public Environment Report (PER)
on environmentally sensitive pro-
state and territory governments.
wastes. With State authorities, it
tion of Australia's environment.
The Federal Government is re-
develops national guidelines for
Issues addressed in these programs
posals which might not warrant
sponsible for native fauna in fed-
permitted levels of air pollutants.
have included rainforest conserva-
the preparation of an EIS. PERs are
eral territories, for control of
tion, arresting and reversing tree
also made available for public re-
decline, soil conservation, land-
view and public comment is taken
international import and export,
Ozone protection
and for international treaties and
The Ozone Protection Act imple-
into account before decisions are
care incentives generally and
conventions pertaining to nature
ments the provisions of the Mon-
made.
biodiversity. Two of these pro-
conservation.
treal Protocol on Ozone and sets in
grams, focusing on nature conser-
place additional bans on products
vation outside reserves are "Save
Parks and wildlife
Biological resources
which use ozone depleting sub-
theBush" and "Endangered Species".
The first laws to protect scenic ar-
The Bureau of Flora and Fauna is
stances.
eas in Australia were passed in the
coordinating the Australian Bio-
There is a national strategy to
Environment
State of Tasmania in 1863.
logical Resources Study, collecting,
phase out ozone depleting sub-
The Environment Protection (Im-
In 1879, the Royal National
identifying and recording Aus-
stances as rapidly as practicable.
pact of Proposals) Act 1974 pro-
Park of 7284ha was established
tralia's animals and plants.
Waste minimisation
vides for environmental factors to
south of Sydney, capital of New
be taken into account in the Federal
South Wales. This was Australia's
National Estate
The Federal Government is devel-
Government's decision making.
first national park, and the world's
The Australian Heritage Commis-
oping a National Waste Minimisa-
The Act applies to proposed gov-
second.
sion compiles a Register of the
tion and Recycling Strategy. It will
ernment decisions or actions which
In 1988, about 40.8 million
National Estate.
encompass all wastes and all serv-
may have a significant effect on the
hectares, or 5.3 per cent of Austral-
Under the National Estate
ices/activities which produce
environment.
ia's total land area, was reserved
Grants program, more than $50
waste and provide a structure for
Where a proposal raises issues
for national parks and other types
million in Federal Government
industry, community and govern-
of particular environmental con-
of conservation reserves. A further
grants has been paid since 1973 for
ment cooperation in promoting
cern, the Minister for the Arts, Sport,
38.4 million hectares has been pro-
more than 3700 projects to state
waste minimisation and recycling.
the Environment, Tourism and
claimed as marine reserves repre-
and territory governments.
The strategy will be one of the key
Territories can direct that an envi-
senting less than 1 per cent of
roles of the recently announced
Pollution
ronmental impact statement (EIS)
Australia's total marine area. Aus-
Environment Protection Agency.
be prepared. Impact statements
tralia now has more than 2700 ar-
State governments are primarily
for public review, and any public
eas set aside for nature conservation
responsible for pollution control.
The Federal Government has na-
comments ,must be taken into ac-
or similar areas. They range in size
tional and international responsi-
count before the statement is final-
from small parks of less than one
bilities.
ised and the proposals considered
hectare to Kakadu National Park at
The Federal Government
by the Government.
nearly 22 000 km².
regulates dumping of wastes at sea
REMARKS OF GEORGE BUSH
VICE PRESIDENT OF THE UNITED STATES OF AMERICA
BEFORE THE
NATIONAL PRESS CLUB
CANBERRA, AUSTRALIA
THURSDAY, APRIL 29, 1982
I'M DELIGHTED TO BE HERE WITH YOU TODAY. THIS IS THE FIRST TIME
IN MONTHS THAT THE AUDIENCE HAS OUTNUMBERED MY SECRET SERVICE
DETAIL.
I WANT YOU TO KNOW THAT I'M ALWAYS DAUNTED AT GOING BEFORE PRESS
CLUBS. THIS ISN'T A REFLECTION OF MY FEELING ABOUT THE PRESS-IT'S
JUST A POLITICIAN'S NATURAL INSTINCT ABOUT STANDING IN FRONT OF so
MANY OF YOU AT ONE TIME. I WAS TOLD BEFORE I CAME HERE THAT THE
PAUSE
AUSTRALIAN PRESS EATS PUBLIC FIGURES FOR BREAKFAST. YOU CERTAINLY
TOLD FRANK SINATRA WHO WAS BOSS A FEW YEARS AGO. DANSE WELL, I HOPE
I'LL AT LEAST PROVIDE YOU WITH A GOOD LUNCH.
I'VE COME TO AUSTRALIA, AS YOU KNOW, IN THE INTERESTS OF GOOD NEWS,
NOT BAD. IN JAPAN I SPOKE BEFORE THE FOREIGN CORRESPONDENT'S CLUB.
I SAID THERE THAT I'D COME TO CONSULT WITH THE JAPANESE ON MATTERS
OF TRADE AND DEFENSE--NOT TO DICTATE TO THEM. I SAID THAT WE NEEDED
TO WORK TOGETHER TO WORK OUT AGREEMENTS, THAT THE ATMOSPHERE HAD IMPROVED,
BUT THAT ABOVE ALL WE SHOULDN'T LET SUCH MATTERS CLOUD THE ESSENTIAL
AND OVER-RIDING ISSUE OF JAPANESE-U.S. FRIENDSHIP. so DURING THE
Q AND A THAT FOLLOWED A FELLOW STOOD UP AND SAID, WELL, THIS BEATS
ALL. A WHILE AGO MITTERAND CAME ALL THE WAY HERE TO SAY THERE IS
HARMONY BETWEEN FRANCE AND JAPAN. AND NOW YOU'VE COME ALL THE WAY
HERE JUST TO TELL US THERE IS HARMONY BETWEEN THE UNITED STATES AND
JAPAN,
-2-
I TOLD HIM THAT WASN'T EXACTLY THE CASE, OR WHAT I'D SAID, THOUGH
I DID SYMPATHIZE WITH HIM. I KNOW LACK OF HARMONY MAKES BETTER
COPY THAN HARMONY. BUT ALAS, I'M AFRAID I STAND BEFORE YOU FULL
OF HARMONIOUS THOUGHTS, AND A FEW OTHER POINTS THAT NEED BRINGING
UP BECAUSE THEY MATTER, AND BECAUSE THEY'RE IMPORTANT.
I'VE BEEN TELLING AUDIENCES IN THE COUNTRIES I'VE BEEN VISITING
THAT THE UNITED STATES HAS NO DESIRE TO DOMINATE THIS OR ANY OTHER
PART OF THE WORLD; BUT THAT IT WANTS TO CONTINUE BEING A GOOD
PARTNER IN THE FREE WORLD; THAT IT WANTS TO KEEP THE LINES OF
COMMUNICATION WIDE OPEN THAT ITS DAYS OF LECTURING ITS FRIENDS
AND APOLOGIZING TO ITS ENEMIES ARE OVER; THAT IT WANTS TO BE A
GOOD FRIEND.
AUSTRALIA IS ONE OF OUR BEST FRIENDS. WHEN PRIME MINISTER FRASER
VISITED WASHINGTON LAST YEAR, PRESIDENT REAGAN SAID AT THE TIME
THAT, "AUSTRALIA IS A FRIEND FOR THE LONG PULL, WHERE PEOPLE SEE
THINGS BASICALLY AS WE DO, BUT WHO WILL ALWAYS HAVE THE COURAGE
/ AND THE FRIENDSHIP TO TELL US WHEN THEY THINK WE'RE WRONG."
THE PRESIDENT QUOTED ROBERT LOUIS STEVENSON'S LINE, "THE BEST
THAT WE HAVE IN OUR TRAVELS IS AN HONEST FRIEND--THEY KEEP US
WORTHY OF OURSELVES." ON THIS TRIP I'VE COME TO VISIT WITH
HONEST FRIENDS.
I'VE BEEN CELEBRATING
-3-
I'VE BEEN CELEBRATING A FEW ANNIVERSARIES ALONG THE WAY--QUITE
A FEW, IN FACT: THE 30TH ANNIVERSARY OF THE SAN FRANCISCO TREATY
IN JAPAN;' 100 YEARS OF DIPLOMATIC RELATIONS IN KOREA. HERE I'LL
BE MARKING TWO EVENTS IN AUSTRALIAN-U.S. RELATIONS: THE 30TH
ANNIVERSARY OF ANZUS, AND THE 40TH ANNIVERSARY OF THE BATTLE OF
THE CORAL SEA.
WE'VE FOUGHT WARS TOGETHER AND TOGETHER KEPT THE PEACE. THAT MAKES
FOR TIES THAT BIND.
THE ANCIENT CHINESE HAD A CURSE: "MAY YOU LIVE IN INTERESTING
TIMES." WE'VE LIVED THROUGH SOME INTERESTING TIMES TOGETHER. MANY
OF THOSE WHO FOUGHT IN THE BATTLE OF THE CORAL SEA DIED, AND MANY
OF THOSE WHOM IT SAVED HAVE SINCE GONE.
THE ANZUS TREATY WAS CRAFTED BY STATESMEN SINCE DEPARTED, FOR A
WORLD THAT HAS ALTERED ALMOST COMPLETELY. IT'S NOT JUST SHARED
MEMORIES AND SIGNED PAPERS THAT HAVE KEPT US ALLIES.
THERE IS WHAT SIR NICHOLAS PARKINSON, MY GOOD FRIEND AND YOUR FORMER
AMBASSADOR TO THE UNITED STATES HAS CALLED A "NATURAL ALLIANCE"
BETWEEN OUR TWO COUNTRIES:
A NATURAL ALLIANCE THAT EMERGES
FROM THE MANY STRANDS, HISTORICAL AND CURRENT, TYING THE TWO PEOPLE.
IT IS THIS, RATHER THAN THE FORMAL EXPRESSION OF THE SECURITY RELATION-
SHIP EMBODIED IN THE ANZUS TREATY, WHICH IS THE LIVING CORE OR THE
ALLIANCE, AND WE WOULD DO WELL TO REMEMBER THIS AND FOSTER IT WHERE
WE CAN."
THIS NATURAL ALLIANCE
-4-
THIS NATURAL ALLIANCE OF OURS HAS PULLED US THROUGH, AND WILL
CONTINUE TO PULL US THROUGH, THE CHALLENGES OF THE POST-MODERN WORLD.
THE SOVIET UNION'S APPETITE FOR THE FREEDOM OF OTHERS IS AS
RABELAISIAN AS EVER. SOVIET TROOPS ARE WAGING THE THIRD YEAR OF
A BRUTAL WAR AGAINST THE AFGHAN PEOPLE--KILLING INNOCENT MEN, WOMEN
AND CHILDREN WITH CHEMICALS OUTLAWED BY ALL DECENT SOCIETIES, LECH
WALESA LINGERS UNDER HOUSE ARREST. THE SOVIETS HAVE ALL SORTS OF
JUSTIFICATIONS FOR THESE OUTRAGES. THEY ARE OBVIOUSLY WARY OF
EASTERN
THEIR NEIGHBORS IN EUROPE, ON THE OTHER HAND, IT DOESN'T MUCH
SURPRISE ME. THEY SEEM TO BE THE ONLY COUNTRY IN THE WORLD
SURROUNDED BY HOSTILE COMMUNIST POWERS.
THEIR FOREIGN ADVENTURES HAVE NOT, OF COURSE, HAD ANY EFFECT ON
THEIR RHETORICAL OUTPUT, WHICH IS AS DISINGENUOUS AS EVER. SOVIET
LEADERS HAVE MADE SPEECHES ABOUT THEIR DESIRE FOR A FREEZE ON
NUCLEAR WEAPONRY, DESPITE THE FACT THAT SS-20's HAVE SPROUTED LIKE
FIELDS OF ASPARAGUS, I MIGHT ADD THAT'S ABOUT THE ONLY SOVIET
HARVEST THAT HASN'T FALLEN SHORT OF QUOTA. IT OCCURS TO ME THAT
EITHER COLLECTIVE SOVIET FARMING ISN'T WORKING, OR THE SOVIET UNION
HAS GOT SOME KIND OF CHRONIC WEATHER PROBLEM,
BUT I HAVEN'T COME
I
was in
talkederation
100k Dd- how world has together
BUT I HAVEN'T COME HERE TO DISCUSS SOVIET METEOROLOGY, OR AGRONOMY,
OR OTHER DREARY SUBJECTS, I'VE COME TO EMPHASIZE THAT WE'VE STOOD
UP AGAINST THEIR RECKLESS INTERNATIONAL BEHAVIOR TOGETHER. WE
STAND TOGETHER ON AFGHANISTAN, ON POLAND. WE'RE WORKING FOR PEACE
TOGETHER IN THE MIDDLE EAST THROUGH THE SINAI MULTINATIONAL FORCE
AND OBSERVERS. ISRAEL'S HISTORICAL WITHDRAWAL FROM THE SINAI WAS
COMPLETED ONLY LAST WEEK. THE PEACE PROCESS HAS GONE FORWARD,
CAUSE FOR CELEBRATION IN A WORLD IN WHICH TOO FEW PROCESSES ARE
PEACEFUL,
I THINK IT IS IMPORTANT TO NOTE THAT THE UNITED STATES--INDEED ALL
THE FREE NATIONS OF THE PACIFIC DEEPLY APPRECIATE THE INCREASED
DEFENSE OUTLAYS AND CAPABILITIES OF AUSTRALIA. THIS SACRIFICE IS
A TRIBUTE TO THIS GOVERNMENT AND THE PEOPLE. IT IS A SACRIFICE ON
BEHALF OF PEACE.
LET ME TAKE A FEW MOMENTS TO PUT IN PERSPECTIVE ANOTHER PROCESS FOR
PEACE: PRESIDENT REAGAN'S INITIATIVES ON BEHALF OF NUCLEAR ARMS
REDUCTION, THE ISSUE HAS BEEN CLOUDED A BIT, TO SAY THE LEAST. NO
ONE IS MORE INTERESTED IN A REAL AND VERIFIABLE REDUCTION IN THE
WORLD'S STOCKPILE OF NUCLEAR WEAPONS THAN PRESIDENT REAGAN. HE'S
MADE A NUMBER OF OVERTURES TO THE SOVIETS, PROBABLY THE MOST
SIGNIFICANT OF WHICH WAS HIS ZERO-OPTION PROPOSAL OF LAST NOVEMBER.
IT WAS IN THAT PROPOSAL THAT HE ANNOUNCED HIS PLAN FOR THE DRAMATIC
REDUCTION OF INTERMEDIATE RANGE SYSTEMS IN EUROPE. INTERMEDIATE
NUCLEAR FORCES TALKS
-6-
NUCLEAR FORCES TALKS ARE ALREADY UNDER WAY. HE'S MADE IT CLEAR,
BY HIS ACTIONS, NOT JUST BY WORDS, THAT HE'S WILLING TO EXPLORE ALL
AVENUES TOWARD ARMS REDUCTION. IF HE CAN SUCCEED IN CONVINCING THE
SOVIET UNION TO CHECK ITS RELENTLESS QUEST FOR NUCLEAR SUPERIORITY,
IT WILL BE QUITE AN ACCOMPLISHMENT. IT'S NOT AN EASY JOB,
THE BEST WAY, MEANWHILE, TO BRING THE SOVIETS TO THE NEGOTIATING
TABLE--PERHAPS THE ONLY WAY--IS TO REMAIN STRONG, AND TO MAINTAIN
A CREDIBLE DETERRENT. AN ADVERSARY IS MUCH MORE LIKELY TO NEGOTIATE
IF IT IS TO HIS ADVANTAGE TO NEGOTIATE. WE STAND A MUCH BETTER
CHANCE OF GETTING THE SOVIETS TO AGREE TO SOME REAL AND VERIFIABLE
REDUCTIONS IF THEY UNDERSTAND WE'RE DETERMINED TO MAINTAIN A STRONG
DETERRENT. PRESIDENT REAGAN IS COMMITTED TO RESTORING STRENGTH.
WHERE THERE IS STRENGTH, OR BALANCE, THERE IS SAFETY, BUT UNFOR-
TUNATELY THAT STRENGTH, AND BALANCE. ARE BEING ERODED BY THE SOVIET'S
MASSIVE BUILD-UP,
DURING THE 1970'S
Chin
-7-
from SP
DURING THE 1970's, THE UNITED STATES GREATLY REDUCED THE NUMBER
OF ITS NUCLEAR WEAPONS IN WESTERN EUROPE. IN FACT, THE TOTAL U.S.
NUCLEAR STOCKPILE IS AT ITS LOWEST LEVEL IN 20 YEARS. BUT THE
SOVIETS ARE NOT ALTOGETHER UNSKILLED IN THE ART OF PROPAGANDA, AND
THEY GO ON TRYING TO CONVINCE THE WORLD THAT THE UNITED STATES, AND
NOT THE SOVIET UNION, IS THE REAL SOURCE OF THE NUCLEAR MADNESS.
THEIR PROTESTATIONS IN THIS REGARD REMIND ME OF SOMETHING ONCE SAID
BY THE MARQUIS DE CUSTINE, THE 19TH-CENTURY FRENCH NOBLEMAN WHO
STUDIED RUSSIA AS DE TOCQUEVILLE STUDIED AMERICA, "WE MUST NEVER
BLAME THE RUSSIANS FOR BEING WHAT THEY ARE," HE WROTE, "ONLY FOR
PRETENDING TO BE WHAT WE ARE."
THE UNITED STATES, AS I MENTIONED NEAR THE BEGINNING, HAS NO DESIRE
S
TO DOMINATE AFFAIRS IN THE SOUTH PACIFIC OR ELSEWHERE, WE ARE A
injo3=3e
PACIFIC POWER AND WE'LL REMAIN A PACIFIC POWER. BUT OUR GREATEST
STRENGTH LIES NOT IN AIRCRAFT CARRIERS AND SUBMARINES, BUT IN OUR
FRIENDSHIPS, ENDURING FRIENDSHIPS WITH COUNTRIES SUCH AS AUSTRALIA.
WE'LL CONTINUE TO LOOK TOWARD AUSTRALIA FOR COUNSEL AND COMPANIONSHIP,
P
AS WE HAVE IN THE PAST, IF THAT DOESN'T MAKE FOR BANNER HEADLINES,
IT'S STILL A BIG STORY. AND A GOOD ONE,
######
June 27 / Administration of George Bush, 1989
Remarks at the Welcoming Ceremony
Mr. Prime Minister, we have much to dis-
peace and sec
for Prime Minister Robert Hawke of
cuss at an important moment in history.
nomic progre
Australia
Events in China call for close consultation
tection of the
June 27, 1989
among the free nations. And the United
You have
States and Australia have a longstanding
President, you
The President. Prime Minister and Mrs.
tradition of such consultation on important
ership. Your
Hawke, Barbara and I are very pleased to
issues. And I am interested in hearing your
West relation
welcome you as old friends to the United
assessments of recent world events.
ative and bok
States and to the White House. We had the
There are many pressing international
conventional
opportunity to enjoy Australia's renowned
issues. And, Mr. Prime Minister, your lead-
and other arn
hospitality in 1982 during Australian-Ameri-
ership in organizing global efforts to cope
reducing nuc
can Friendship Week. And so, Barbara and
with the threat of chemical weapons is one
importantly
I are just delighted to try to return that
position that is greatly admired by Ameri-
weapons, you
marvelous hospitality.
cans. The United States supports Australia's
can count C(
And there's another reason why it is so
efforts, and you may be assured of our com-
Australia.
fitting for Australia's Prime Minister to be
mitment to the early achievement of an ef-
In this new
among the first official guests. Our nations
fectively verifiable treaty banning these
stancy, the (
share a similar heritage: a pioneer heritage
weapons.
alliance betw
in the taming of two vast continents, a her-
And so, today we shall discuss world
States will rei
itage of democratic ideas, and a heritage of
common sacrifice in war and common ef-
events, arms control, trade, Pacific regional
national inter
forts in peace. And in our last visit, Barbara
cooperation, economic cooperation, other
it has a wid
subjects.
significance.
and I joined your countrymen in the com-
But, Mr. Prime Minister and Mrs.
Zealand, Uni
memoration of one of the most costly bat-
Hawke-Bob and Hazel, if you will-you
joint Australi
tles of the Second World War-the Battle of
the Coral Sea-a poignant reminder of how
have a busy schedule in your very brief
ties in Austr:
much Americans and Australians have sacri-
time with us. But we hope to make your
maintaining
ficed four times in this century in the de-
visit to Washington as pleasant and as mem-
the effective
orable as ours was to your great country.
mament agr
fense of freedom.
So, this is not just an alliance between
Welcome to Washington, sir.
our coopera
The Prime Minister. Mr. President, Bar-
highest level
two great powers. It is an intimate partner-
ship between two peoples. And your visit
bara, it's an immense pleasure for me, in
and more F
these 3 days in Washington, to renew our
time since A)
reaffirms the vigor of this partnership, the
enduring strength of our alliance.
long friendship. And it is a special pleasure
But, Mr. P
The giant strides that we've made recent-
and privilege to join with you as the elected
alliance goes
ance. It en
ly toward many of our common goals—
Chief of the greatest democracy in reaffirm-
links and br
major progress in arms reductions; major
ing the deep, abiding friendship of our two
tural associal
progress in resolving conflicts in Afghani-
countries. In you, Mr. President, the West-
on the firm
stan, Angola, and Cambodia-all were made
ern World has an experienced and forward-
commitment
possible by the resolve of the West. Our
looking leader. And in you, Australia has a
countries prize peace, but recognize that
valued and longstanding friend.
ual liberty W
Mr. Presic
peace comes only through Western strength
Today, as you've said, Mr. President, I
and vigilance. And we must maintain our
the depth ar
look forward with you to continuing the
alliances and stand by our friends if we are
exchange of views on all the issues affecting
ship that th
exist betwee
to fulfill the promise of a new era of less-
our countries in the spirit of friendship and
ened tension and confrontation. And that is
honestly as,
of frankness which has always characterized
why the United States is so grateful for Aus-
our association and which befits the rela-
matters, par
tralian leadership in our common defense.
policy. I am
tionship and, if I may say, the partnership
will be able
America also admires Australia's bold
between Australia and the United States. As
leadership in foreign policy, both close to
not entirely
you say, Mr. President, we are meeting at a
home and far from your shores. From the
forward to e
time of historic and far-reaching change
South Pacific to Africa, Australia is a force
operating in
across the world. There now exists unparal-
for economic growth and a beacon of de-
multilateral
leled new opportunities, challenges, and,
mocracy. And we value your contribution,
may I say, responsibilities for leadership and
some progre
your good judgment, and your advice.
want: an int
positive achievement on crucial issues of
on free and
992
Administration of George Bush, 1989 / June 27
ave much to dis-
nent in history.
peace and security, East-West relations, eco-
I know that we both understand that
nomic progress, world trade, and the pro-
moving in the opposite direction toward a
ose consultation
tection of the world environment.
world of separate and competing trade
And the United
You have already demonstrated, Mr.
blocs would be economically disastrous and
a longstanding
President, your determination to give lead-
quite possibly strategically destabilizing.
on on important
ership. Your constructive approach to East-
That is one of the reasons, I might add, why
in hearing your
West relations is demonstrated by your cre-
earlier this year I suggested the develop-
events.
ative and bold proposal for the reduction of
ment of closer regional economic coopera-
g international
conventional weapons in Europe. In this
tion in the Asia-Pacific region. Implementa-
ister, your lead-
and other arms controls endeavors aimed at
tion of my proposal could, I believe, im-
efforts to cope
reducing nuclear armaments, and as you
prove significantly the chances for success
weapons is one
importantly emphasize, banning chemical
in the Uruguay round, as well as acting for
hired by Ameri-
weapons, you know, Mr. President, that you
a catalyst for further growth in our dynamic
ports Australia's
can count consistently on the support of
region. I'm very keen, Mr. President, to ex-
ired of our com-
Australia.
change views with you on this proposal.
ement of an ef-
In this new and challenging era, the con-
And may I say, Mr. President, that I indeed
banning these
stancy, the depth, and the vitality of the
welcome Secretary [of State] Baker's sup-
alliance between Australia and the United
port last night for a new mechanism for
discuss world
States will remain crucially important to the
multilateral cooperation among the nations
Pacific regional
national interests of both our countries. But
of the regions as an idea whose time has
peration, other
it has a wider regional and indeed global
come. I am delighted that the United States
significance. Under ANZUS [Australia, New
supports my call for a ministerial meeting
ster and Mrs.
Zealand, United States security treaty], the
this year as a first step if, as I hope and
you will-you
joint Australia-United States defense facili-
expect, there is consensus in the region.
your very brief
ties in Australia are significant elements in
Mr. President, I make this final point.
to make your
maintaining the peace and in supporting
int and as mem-
the effectiveness of arms control and disar-
The American presence has been a prime
factor in creating and in maintaining the
great country.
mament agreements. Over recent years,
our cooperation and consultations at the
conditions for stability and prosperity in the
President, Bar-
highest levels have been stronger, broader,
Asia-Pacific region. America's continuing in-
sure for me, in
and more productive than at any other
volvement in our region remains a key to
time since ANZUS was formed.
its future progress. As you say, Mr. Presi-
1, to renew our
But, Mr. President, as we both agree, our
dent, we have before us an imposing dialog
special pleasure
u as the elected
alliance goes far beyond our defense alli-
that we have to deal with.
acy in reaffirm-
ance. It encompasses dynamic economic
What gives this visit and our discussions
iship of our two
links and broad and deep human and cul-
their real substance, however, and what will
tural associations. But above all, it is based
make them so mutually beneficial is the
dent, the West-
on the firmest of foundations: our shared
sense of common purpose that we bring to
d and forward-
Australia has a
commitment to democracy and to individ-
these matters based on our common nation-
.id.
ual liberty within the rule of law.
al and international interests and on our
(r. President, I
Mr. President, it is precisely because of
common commitment to peace and to free-
the depth and the maturity of our relation-
dom.
continuing the
issues affecting
ship that the differences of views that do
Mr. President-George-I thank you
exist between us can be faced openly and
again for the warmth of your welcome not
friendship and
S characterized
honestly as, for example, on some trade
merely today but since I have arrived. May
matters, particularly aspects of agricultural
I say, not just the warmth-[aughter]-
befits the rela-
policy. I am quite confident that today we
we're used to that. And I know you have
he partnership
will be able to focus on ways to minimize, if
enormous power, perhaps more than any in
nited States. As
not entirely resolve, such differences. I look
the world, but I know there are limits to
e meeting at a
forward to exploring with you means of co-
your power. [Laughter] That warmth is a
aching change
operating in the current Uruguay round of
coincidence, but, George, there is no coinci-
exists unparal-
multilateral trade negotiations to achieve
dence about the personal warmth that you
hallenges, and,
leadership and
some progress toward the goal that we both
have extended-that you and Barbara have
ucial issues of
want: an international trading system based
extended to Hazel and myself. For that, I
on free and fair competition.
thank you. And I conclude, George, by
993
June 27 / Administration of George Bush, 1989
saying this: You have visited Australia, as
break the shackles of totalitarian rule and
tralia has risen i
you say, as Vice President; and I look for-
breathe in the life-giving air of liberty.
of England to 1
ward to welcoming you to our country as
Experience has shown us that success can
nation, in culture
President of the United States and as a true
exact a heavy price. We must never forget
has taken note:
friend of Australia.
that this experiment in self-government
In classic fil
continues to thrive because our Nation is
"Breaker Moran
Note: The President spoke at 10:10 a.m. at
blessed with an abundance of brave men
Patrick White's
the South Portico of the White House, where
and women who proudly serve in its Armed
are moving exa
Prime Minister Hawke was accorded a
Forces. These individuals stand guard on
emerging as this
formal welcome with full military honors.
the ramparts of liberty so that all Americans
ture. Australia h
Following the ceremony, the President and
can say with pride and confidence, "I'm
contribution to
the Prime Minister met in the Oval Office.
free."
couragement a
To every American citizen, here and
Australia is the S
abroad, Happy Fourth of July! God bless
lamp of liberty
you and God bless America!
the East.
And so, Bob,
Message on the Observance of
George Bush
to acknowledge
Independence Day
sonal leadership
June 27, 1989
with ideas to I
partners of the
Growing up in Connecticut-"the Consti-
been a champi
Toasts at the State Dinner for Prime
tution State"-the Fourth of July represent-
nation's magnif
Minister Robert Hawke of Australia
ed the best of holidays. It held the promise
ing is a fitting
of parades, picnics, and fireworks. More im-
June 27, 1989
principles. Lit
Americans, inc
portant, however, it introduced a small boy
The President. Mr. Prime Minister and
to the promise of America.
Congress, joine
Mrs. Hawke-Bob and Hazel to us, to all of
that building
Everywhere I turned, I would see the
red, white, and blue of our flag. As I grew
you-we are just delighted to have this op-
architecture in
older, I realized that the flag has reminded
portunity to welcome you back to Washing-
ship. It's a kir
ton, sir. I would once more reminisce about
than heritage,
generations of Americans how fortunate we
the fondness with which I remember our
are to live in a free and democratic Repub-
guage. It is
visit to Australia a few years ago, and then,
brotherhood of
lic. It is a banner respected around the
of course, your own previous visits to Wash-
Recent ever
world. The Fourth of July is a day to pause
ington, DC, as Prime Minister. And now we
show that it is
and thank God that men such as Thomas
have been delighted with your gracious
what he wants
Jefferson and Ben Franklin had the
company during this all-too-brief stay.
what he belie
strength, courage, and insight to forge a
And lest you wonder about the Prime
voice in the g
nation predicated upon the noble ideal,
Minister's travel plans, it is my understand-
economic free
"that all Men are created equal, that they
ing that he and Hazel go right to the air-
dom, indeed,
are endowed by their Creator with certain
port, climb onto an airplane, and will be
depend one o
unalienable Rights.
seen smiling and greeting the Chancellor of
is very timely
Today, as we celebrate the 213th birth-
the Federal Republic of Germany about 1
mean consult
day of our Nation's founding, let us recall
p.m. Federal Republic of Germany time. So,
tion-and onc
the words spoken by President George
we will be brief, and-[laughter]. But I
our U.S.-Austr
Washington during his first Inaugural Ad-
think the friendship that we feel towards
The United
dress on April 30, 1789: "The preservation
our distinguished visitor is but a reflection
to support th
of the sacred fire of liberty, and the destiny
of a deeper closeness.
and, yes, hur
of the republican model of government, are
Wilbur Garrett, the editor of the National
commitment
justly considered as deeply, perhaps as final-
Geographic, wrote that, "Both America and
and allies in
ly staked, on the experiment entrusted to
Australia exert an enduring fascination on
strong and a
the hands of the American people."
each other, like brothers growing up in dif-
stand with us
After 213 years, Americans can say that
ferent parts of the world." Well, we've
free flow of
the experiment is a resounding success. The
borne great sacrifiees as brothers in war,
ideals of free
Fourth of July is a time to rejoice in this
and now we share-great responsibilities as
So, ladies a
success, which has inspired all who seek to
brothers in peace. And in this century, Aus-
Australia is
994
Administration of George Bush, 1989 / June 27
litarian rule and
tralia has risen in stature from a dominion
very close ally of the United States of Amer-
of liberty.
of England to become a nation, a great
ica. This visit, in my view, sir, has been an
that success can
nation, in culture and in the arts. The world
outstanding success. We are delighted that
ust never forget
has taken note: Australia, the rising star.
you have been with us, you and Hazel.
self-government
In classic films like "Gallipoli" and
And now I would like to offer a toast to
our Nation is
"Breaker Morant" and so many others—
Her Majesty, Queen Elizabeth, Queen of
of brave men
Patrick White's Nobel Prize for literature-
Australia.
ve in its Armed
are moving examples of why Australia is
The Prime Minister. Mr. President-
stand guard on
emerging as this leading light in world cul-
George and Barbara-and friends, I think
it all Americans
ture. Australia has an even more profound
the people of this country probably imagine
onfidence, "I'm
contribution to make to the world: the en-
that they have a fair idea of the capabilities
couragement and spread of democracy.
of their new President, as well they should.
zen, here and
Australia is the shining light in the Pacific, a
He has been in the public eye for a very
July! God bless
lamp of liberty for the oppressed peoples of
the East.
many, many years. I may say that Barbara
And so, Bob, let me just take a moment
has given me a few insights into some as-
George Bush
to acknowledge your own outstanding per-
pects of his character that are probably-
sonal leadership in the region. You've led
[laughter]-not so well known; but I want
with ideas to better organize the trading
to assure you, my friends, that I've come to
partners of the Pacific Basin, and you've
learn, just in the last 3 days, that he has a
been a champion of freedom's cause. Your
capacity for shrewdness which is almost
for Prime
nation's magnificent new Parliament build-
limitless.
Australia
ing is a fitting monument to democratic
It occurred on the golf course. [Laughter]
principles. Little wonder that so many
We were lined up there-the President, the
Americans, including Members of our own
Prime Minister, [Secretary of State] Jim
Minister and
Congress, joined you for the inauguration of
Baker, and [House minority leader] Bob
to us, to all of
that building and even contributed to its
Michel. And I know that my friend, Jim
have this op-
architecture in a reaffirmation of our kin-
Baker, will take no offense; and I, with my
ck to Washing-
ship. It's a kinship that is more profound
well-known modesty, take no offense in ac-
eminisce about
than heritage, deeper than a shared lan-
knowledging that of the three of us, apart
remember our
guage. It is the universal kinship, the
from the President, there was not a doubt
ago, and then,
brotherhood of democracy.
that Michel is the best player. [Laughter]
visits to Wash-
Recent events in the Asia-Pacific region
So, with an innocence which was all bely-
And now we
show that it is not enough to let a man buy
ing, the President of the United States said,
your gracious
what he wants. He must be allowed to say
"We will now work out who plays one with
ief stay.
what he believes. He must be allowed a
the other." So, I thought that there would
ut the Prime
voice in the governing of the society. And
be a fairly reasonable process that would be
(V understand-
economic freedom alone and political free-
followed. It was very exotic, I can assure
ht to the air-
dom, indeed, go hand in hand. They
and will be
you. He gets his ball, and he takes a ball
depend one on the other. And therefore, it
Chancellor of
from each of us. He puts his on the ground,
is very timely for us to meet, consult-and I
nany about 1
mean consult in the real spirit of consulta-
and he said, "Now, here they go." He said,
"The ball nearest mine will be my partner.'
any time. So,
tion-and once again affirm the solidarity of
ghter]. But I
And there was no doubt which ball was
our U.S.-Australian alliance.
feel towards
The United States is fully engaged in Asia
nearest his; it was Michel's, of course.
t a reflection
to support the forces of peace, democracy
[Laughter] It was never going to be any
and, yes, human rights. And our abiding
other way-a very, very shrewd operator.
the National
commitment to Australia and our friends
[Laughter]
America and
and allies in the region is going to remain
Now, we have shrewdness in sport, too, in
ascination on
strong and abiding. And I know that you
our country. George, I might say, I've had
ng up in dif-
stand with us, sir, not just in favor of the
the opportunity of sitting next to-here to
Well, we've
free flow of goods but one of ideas and
Sarah, who shares my passion for racing.
hers in war,
ideals of freedom.
And I can tell you a brief, true story about
onsibilities as
So, ladies and gentlemen, let me say that
horse racing in Australia, which will give an
entury, Aus-
Australia is a strong fellow democracy, a
indication that there is certain shrewdness
995
June 27 / Administration of George Bush, 1989
in sport in our country. It's a true story, I
boldness in testing new frontiers of experi-
alliance. May
Ambassador-el
can assure you.
ence I have also increasingly come to
It was a country race meeting out in the
admire.
gotten to know
bush in Australia, and this event was a
Betty-I than
It is the case, George, that you and I,
three-horse race-literally a three-horse
choosing them
through the responsibilities of leadership in
race. This punter went up to the bookmak-
country. We
our nations, have the experience now of
er and said, "I'll have $5,000 on Blue Vein."
them, and I
living at a point in history which I would
And the bookmaker took his $5,000 with a
Sembler as an
suggest by almost any definition is at one
huge grin and shoved it into his bookmak-
that you attach
and the same time the most exciting and
er's bag and said, "Thank you very much.
Our friendsh
challenging of any time in this 20th centu-
That's my horse." To which the punter re-
our two coun
ry, certainly the most challenging and
plied, "It's going to be a bloody slow race,
vanced in pea
promising, in a sense, than at any time in
isn't it? I own the other two." [Laughter]
dations. It invc
the nuclear age.
Well, my friend, George, coming to more
that the peop
We are entitled-the rest of us in the
serious matters, you and I and our two
United States a
countries are not in a slow race. We're cer-
world-to say of the leadership of the
prosperity and
tainly not in a race in which we're not
United States in recent times that, by the
tantly even th
trying. It's an increasingly fast race. It's an
discharge of your responsibilities, by the
of our relation
increasingly serious race. It's a race which
preparedness, as I say, to exercise boldness
that we shall d
requires all of our commitments and our
in testing new frontiers, that you have
see that those
courage and devotion and best efforts.
given us cause for a greater degree of opti-
tured and W
George, you and I are both politicians.
mism about the possibility of living in a
strength, our
We've had a long experience in politics. It
world in peace than at any other time in
future shall be
would be honest enough to say that there
the nuclear age.
creasingly, as a
are times when you have to talk about per-
When I was here 12 months ago, in
enjoyed by m
sons, even perhaps sometimes when you
speaking to a Joint Session of the Congress,
globe. That is
have to talk about nations. And where there
I referred to that thesis which had been
our great opp
is no substance in the relationship with the
gaining some currency: that this was a
lenge.
person or the nation with which you're talk-
nation in some sort of relative decline. I
And may I S
ing, as politicians you have to delve fairly
said then that was a thesis that I dispute, a
an immeasural
deeply into the wells of rhetoric and plati-
concept that I reject, because all the evi-
opportunity at
tudes to do justice to the situation.
dence of recent times, in my analysis, points
ing with you
But we're fortunately in the situation
in the other direction. It is not merely a
countries so fir
where we have to do nothing of that kind.
question of the continuation of your great
Ladies and g
Between our nations, there is an enormous,
economic might but on all the evidence of
toast to the Pr
immeasurable substance. It's a substance, a
leadership that has been the courage of the
and to the abi
relationship, which has been formed on the
previous administration of which you were
ship of the Unit
battlefields. On four occasions in this centu-
such a leading part, and which you now, as
ry, our soldiers have fought next to one
President, have taken to new frontiers.
Note: The Pres
another; they have died next to one another
It is that courage, that leadership, that
the State Dinin
in defense of the fundamental beliefs that
boldness which, with a certain responsive-
In his remarks,
we share. And in the times of peace, our
ness from the leadership in the Soviet
to Sarah Faris
nations also have been as one in pursuing
Union, has offered to mankind, to this gen-
Bush family.
not only for the people of their own nations
eration and to our children and to theirs, a
but for others the achievement of those
greater hope for peace than at any other
ideals of freedom and liberty.
time in this nuclear age, which so frequent-
As for us as individuals, George, we have
ly-almost consistently-has been fraught
had the pleasure of not merely knowing
with the ultimate danger of obliteration.
Continuation
one another but of being friends for the
Assistant Secr
And it takes courage, it takes strength, it
greater part of this decade, certainly a
takes leadership, it takes boldness to have
June 28, 1989
friendship which I cherish. And may I say
done those things. And, George, I want to
to you, my friends, that in getting to know
The Preside
say to you that my country looks with enor-
George Bush I've got to know a man-whose
David S.C. Chu
mous appreciation to what this country has
integrity I admire, whose courage in de-
done and what you now as President are
Assistant Secre
fending lasting truths I admire, and whose
doing. We thank you for the strength of our
Analysis and Ev
996
Administration of George Bush, 1989 / June 28
ontiers of experi-
alliance. May I say in the presence of the
Dr. Chu has served as the Assistant Secre-
singly come to
Ambassador-elect, who I have just recently
tary of Defense (Program Analysis and Eval-
gotten to know-Mel Sembler and his wife,
uation) since July 1988. Prior to this Dr.
Betty-I thank you for your decision in
that you and I,
Chu was the Director of Program Analysis
choosing them as your representative in our
and Evaluation in the Office of the Secre-
of leadership in
country. We look forward to welcoming
tary of Defense, 1981-1988. Dr. Chu also
erience now of
them, and I take your selection of Mel
served as assistant director for the national
which I would
Sembler as an indication of the importance
security and international affairs division in
inition is at one
that you attach to our relationship.
the Congressional Budget Office, 1978-
ost exciting and
Our friendship, as I say, the friendship of
1981; as associate head of the economics
this 20th centu-
our two countries, forged in war and ad-
department at the Rand Corp., 1975-1978;
challenging and
vanced in peace, rests on unshakable foun-
and as a senior economist at the Rand
1 at any time in
dations. It involves a commitment to ensure
Corp., 1970-1978.
that the peoples of our own nations, the
Dr. Chu graduated from Yale University
st of us in the
United States and Australia, shall advance in
(B.A., 1964; M.A., 1965; M. Phil., 1967;
adership of the
prosperity and in security. But more impor-
Ph.D., 1972). He served in the U.S. Army
nes that, by the
tantly even than that, I think the strength
from 1968 to 1970. Dr. Chu was born in
sibilities, by the
of our relationship is in our commitment
New York City on May 28, 1944. He cur-
xercise boldness
that we shall do everything in our power to
rently resides in Washington, DC.
that you have
see that those freedoms that we have nur-
r degree of opti-
tured and which have given us our
of living in a
strength, our pleasure, our hope for the
y other time in
future shall be freedoms and rights that in-
creasingly, as a result of our efforts, shall be
Nomination of Alfred C. Sikes To Be a
months ago, in
enjoyed by men and women around the
Member of the Federal
of the Congress,
globe. That is our great responsibility, it's
Communications Commission, and
which had been
our great opportunity, and our great chal-
Designation as Chairman
hat this was a
lenge.
June 28, 1989
lative decline. I
And may I say, George, for me, that it is
that I dispute, a
an immeasurable pleasure that I have this
The President today announced his inten-
use all the evi-
opportunity at this stage of history of shar-
tion to nominate Alfred C. Sikes to be a
y analysis, points
ing with you the leadership of two great
member of the Federal Communications
is not merely a
countries so firmly united.
Commission for a term of 5 years from July
n of your great
Ladies and gentlemen, may I offer you a
1, 1988. He would succeed Mary Ann Wey-
the evidence of
toast to the President of the United States
forth Dawson. Upon confirmation by the
courage of the
and to the abiding friendship and partner-
Senate he will be designated Chairman.
which you were
ship of the United States and Australia.
Since 1986 Mr. Sikes has served as Assist-
ich you now, as
ant Secretary of Commerce and Adminis-
V frontiers.
Note: The President spoke at 9:25 p.m. in
trator of the National Telecommunications
leadership, that
the State Dining Room at the White House.
and Information Administration in Washing-
tain responsive-
In his remarks, the Prime Minister referred
ton, DC. Prior to this he was president of
in the Soviet
to Sarah Farish, an acquaintance of the
Sikes and Associates, Inc., a broadcast man-
ind, to this gen-
Bush family.
agement and media consulting company,
and to theirs, a
1978-1986. From 1977 to 1978, he served
n at any other
as an officer in a number of companies that
ich so frequent-
owned and operated radio stations in Texas,
been fraught
Louisiana, and New Mexico. He was direc-
Continuation of David S.C. Chu as an
obliteration.
tor of the Missouri Department of Con-
Assistant Secretary of Defense
kes strength, it
sumer Affairs, Regulation, and Licensing,
oldness to have
June 28, 1989
1974-1976; director of the Missouri Depart-
orge, I want to
ment of Community Affairs, 1973-1974; di-
ooks with enor-
The President today announced that
rector of the Missouri transition govern-
David S.C. Chu will continue to serve as an
his country has
ment for Governor-elect Bond, 1972-1973;
President are
Assistant Secretary of Defense (Program
and campaign manager for Christopher
Analysis and Evaluation).
strength of our
Bond for Governor, 1972. He also served as
997
THEMES FOR ASIA TRIP
Overall
--
America is an Asia-Pacific partner for the long haul
(America will not retreat into isolationism/protectionism)
-- Economically
-- Politically
-- Security
--
As outlined in the President's Asia Society speech, there
are six keys to America's long-term vision for the Asia
Pacific. The trip will highlight each of these:
I.
PROGRESSIVE TRADE LIBERALIZATION
--
Aggressively pursue Uruguay Round Settlement (if still
pending) (Japan, Korea, Australia)
--
Promote APEC (All countries)
--
Push access for American products and services (Japan,
Korea)
-- Encourage American investment in the region (Singapore,
Japan, Korea)
II. SECURITY COOPERATION
--
Maintain pressure on DPRK nuclear program. Stress need for
united action against DPRK nuclear program (all countries;
encourage Singapore to get ASEAN action during upcoming
ASEAN Summit)
--
U.S. will restructure, but remain engaged
-- Continued air and naval presence at current levels in
Japan for the foreseeable future
-- Korea presence dependent on progress for lasting peace
on the peninsula; however, envision long-term air
presence for regional deterrence into the future
--
Singapore agreement as model for access arrangements of
the future in other parts of the region
III. A SHARED COMMITMENT TO DEMOCRACY AND HUMAN RIGHTS
-- Continue pressure on ROK (last visit by Pres. Bush made a
difference)
--
Lay out position on Vietnam (Singapore)
-- Highlight China if necessary
2
IV EDUCATIONAL AND SCIENTIFIC INNOVATION
--
Show link between domestic agenda and foreign policy
--
Highlight S&T progress (all countries)
--
Examine educational differences that we can learn from
(Japan, Korea)
V
RESPECT FOR THE ENVIRONMENT
--
Note progress made and areas for improvement (Japan, Korea)
--
Announce SE Asia initiative (if ready)
VI
APPRECIATION OF DISTINCT CULTURAL HERITAGES
--
Announce various cultural exchange initiatives (all
countries)
1.2. 11. 91 06:57 PM
PO1
U.S. Department of State
EAP
FAX
Date: 12/11/91
TO: Carol Aarhus- WH Speech Staff
FAX Phone Number: 456-6218
Addressee's Phone: 456-7750
FROM: EAP/ANZ - Tom Roburson
FAX Phone Number: 202-647-7350; 647-4402
Sender's Phone: 202-647-9690
NUMBER of PAGES INCLUDING COVER SHEET
8
Remarks: Card- Here are the papers we dis aussed.
These will he semi-public meetings (with pool media coveraged PO
the themes are important. Hope they are helpful.
Tan
UNCLASSIFIED ONLY
A
12. 11. 91
06:57 PM
P 0 2
UNCLASSIFIED
MEETING WITH U.S. BUSINESS EXECUTIVES IN MELBOURNE
SCENESETTER
PURPOSE
Your January 3 meeting with selected U.S. business excutives in
Melbourne is an opportunity to stress the following themes:
ther ment
You strongly support U.S. international business
interests, and appreciate the contribution to the
U.S. economy.
-- U.S. policies help the U.S. in international trade,
and thus benefit the U.S. economy.
-
The close bilateral trade and investment relationship
benefits both Australia and the U.S.
SETTING
The trade and investment relationship between the U.S. and
Australia is extensive, with more than $14 billion in U.S.
direct investment in Australia and $8 billion in U.S. exports
last year. The bilateral trade balance is two to one in our
favor. Many major U.S. firms operate in Australia, employing
thousands of workers and generating billions of dollars in
output and exports. These firms also benefit the U.S. by using
U.S.-sourced parts, equipment and technology, using Australia
as an export base for the region, and repatriating profits to
the U.S.
Pool media coverage of this event is anticipated, offering you
a chance to tell not only the business participants, but a
larger audience about how the Administration's domestic and
international economic policies are aimed at strengthening U.S.
competitiveness, exports, and employment.
The participants will be approximately 40 senior executives of
U.S. firms in Australia (U.S. and Australian nationals). They
may express concern about the negative impact the EEP on the
Australian economy. The meeting will take place in the World
Congress Center in Melbourne, the site of your later luncheon
speech on braoder regional themes to a much larger and broader
audience.
UNCLASSIFIED
12. 11. 91 06:57 PM
P03
UNCLASSIFIED
POINTS TO BE MADE AT MEETING WITH BUSINESS EXECUTIVES
--
I'm glad to have a few minutes to meet with you today. As
you know, before entering politics I was active in
business.
o
From that experience I learned that America is first
amongst economic powers, and will remain first only
as long as we stay engaged in world markets.
o
You all help us do that.
--
We in Washington, both in Congress and the Executive
Branch, need to be aware of how our actions affect U.S.
business interests in the increasingly competitive global
market place.
American investment in marketing and production here makes
an important contribution to both the Australian and U.S.
economies.
o
These business relationships are a key factor in the
strong partnership between the U.S. and Australia.
o
Your efforts are also important to both our economies
in terms of growth, exports, and employment.
--
I am pleased particularly to see representatives of many
of our leading-edge high tech firms here today.
D
You are contributing to competitiveness in both the
U.S. and Australia.
--
My administration is committed to maintaining a strong,
dynamic, competitive American economy.
--
In the last three years we have taken a number of
important initiatives in the U.S.:
o
At the Charlottesville Summit state governors and I
focussed attention on the need for excellence in
education, since an educated workforce is the key to
a productive society.
UNCLASSIFIED
12. 11. 91 06:57 PM
P04
UNCLASSFIED
- 2 -
o
We have harnessed the Energy Department's famous
research and engineering laboratories to advance
technological education where it begins, in the
nation's primary and secondary classrooms.
o
The Council on Competitiveness led by Vice President
Quayle has actively reduced unneccessary regulation
and developed policies to improve U.S.
competitiveness at home and abroad.
o
Other initiatives - investment and R&D tax credits
for business? (WH to insert domestic business
initiatives.)
--
Equally important as these specific initiatives, we have
sought to establish an overall economic climate conducive
to economic success
o
Inflation, the enemy of export competitiveness, has
been kept firmly under control and is less than 3 %
this year, down from 6 % in 1990.
o
Our trade and current account deficits, long problem
areas, are moving strongly in the right direction.
0
We have sought to reduce the capital gains tax in
order to encourage savings and investment, and I will
bring this proposal to Congress again this year
o
We have pressed doggedly ahead in the Uruguay Round
to open world markets for American goods, services,
and investment, to better protect U.S. patents,
trademarks, and copyrights, and to establish a fairer
system of world agricultural trade, especially the
elimination of export subsidies.
We in government serve best when we focus on creating a
sound economic environment with clear rules fairly
enforced.
o
You in the business community have the challenge to
develop and deploy technology, manage an educated
workforce, and produce and sell quality products at
competitive prices.
--
We have a few minutes available, and I would welcome
taking your questions, or hearing your views on how my
administration can help your firms meet these challenges.
UNCLASSIFIED
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12. 11. 91
06:57 PM
PO6
UNCLASSIFIED
INAUGURATION OF
THE AUSTRALIAN CENTRE FOR AMERICAN STUDIES
SCENESETTER
PURPOSE
The purpose of this reception at the Ambassador's
residence is to inaugurate the Australian Centre for
American Studies (ACAS), honor its corporate and academic
backers, and to signal U.S. support for its aims. You may
also use this opportunity to acknowledge and support an
education initiative to study expanding educational
interchange between our two countries should Prime
Minister Hawke propose it to you (and should you agree to
it) before this meeting.
SETTING
The ACAS is a new national institution located on the
campus of the University of Sydney. The University of
Sydney has provided initial funding and office space for
the Centre. Funding has also been provided by the private
sector; companies include Caltex, Rockwell and others with
ties to both countries. In connection with the
inauguration of the Centre by you, the United States
Information Agency is contributing US $50,000 to support
the Centre's programs.
In 1988, Prime Minister Hawke similarly helped to launch
the Center for Australian Studies at the University of
Texas at Austin. The Australian Government contributed A$
50,000 to toward the Texas Center's establishment. The
establishment of the Australian Center completes a
"sister" center arrangement.
The Centre will encourage joint research projects and will
sponsor seminars, possibly including workshops for
teachers of American stu;dies in Australian high schools.
Most funding will come from the corporate sector.
UNCLASSIFIED
12.
11.
91
08:57
PM
P07
UNCLASSIFIED
POINTS TO BE MADE AT MEETING WITH ACADEMICS
(DEDICATION OF AUSTRALIAN CENTER FOR AMERICAN STUDIES)
-- Thank you for joining me in launching the Australian Centre
for American Studies.
Our two nations share much in common - culturally,
historically, even linguistically. But differences do
exist, and we can and should do more to foster greater
understanding.
o
There is much that we can learn from the other: in
education, the sciences, trade and economics. Study and
exchange in these areas will not only benefit our two
nations, but enrich the lives of those involved.
-- Mutual understanding is not only enriching, but also is a
vital prerequisite to peace and prosperity.
The Fulbright Program has brought about the exchange of
tens of thousands of Australians and Americans. Among
the many distinguished alumni of that program are my host
in Sydney yesterday, Nick Greiner, and U.S. Ambassador
Tom Pickering, who received his Master's Degree from
Melbourne University.
o
The benefits of educational interchange come in many
ways. The late Gordon Samstag, an American artist who
taught at the South Australia School of Fine Arts,
endowed that school a scholarship fund of six million
dollars to support Australian students' study abroad.
-- Earlier today Prime Minister Hawke spoke to me about his
desire to expand educational exchange between our two
countries. I support this initiative and look forward to
getting the recommendations of the panel of U.S. and
Australian educators and officials who will be reporting to
us on how to proceed.
-- In 1988, Prime Minister Hawke helped to launch the Center for
Australian Studies at the University of Texas at Austin,
contributing 50,000 Australian dollars to the Center. Today
I am pleased to announce that the United States Information
Agency is similarly contributing 50,000 U.S. dollars to the
Australian Centre for American Studies.
:
I hope this center will lead to an expansion of American
studies in Australia.
- The challenge the future holds is for us to find new ways to
increase mutual understanding. I am confident that the
Australian Centre for American Studies will open many new
ways.
12. 11. 91 06:57 PM
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December 16, 1991r
A:MELBLNCH
PRESIDENTIAL REMARKS: BUSINESS LUNCHEON
MELBOURNE, AUSTRALIA
FRIDAY, JANUARY 3, 1991
[Acknowledgements] Thank you for that introduction, and for
the honor of addressing this luncheon. // Your National Anthem
speaks of a land "abound[ing] in Nature's gifts, of beauty rich
and rare. " // Barbara and I feel richer for the rare privilege
of being with you today. //
Ten years ago this May, I visited Australia to mark the
thirtieth anniversary of the ANZUS Treaty. / Last June, my
friend, Prime Minister Hawke, made his fifth visit to Washington, his
where we met in the Oval Office. // What he said then I repeat
he said thison Her campaig
today: "What we want is not going to fall into our lap. The
obligation is to work together to get it. " //
I am here to talk of that work -- and how, together,
Australia and America can build a better world. / We will build
it through fidelity to freedom, and private enterprise. / We
will build it through trade that is both free and fair. / Our
friendship is based on common language, heritage, and origins.
We must use it to promote prosperity at home and democracy
abroad. //
Yesterday, I was reminded of this alliance in a vivid,
moving way. I visited the Australian War Memorial, and saw the
graves of heroes who gave their lives so that mankind might be
2
free. // We have stood side-by-side in World War I -- where,
incredibly, more Australians died than Americans -- and in World
War II, Korea, Viet Nam, and of course, the Gulf. // We have
sacrificed in war to achieve a better peace. Working together --
fighting together -- for a world where the force of law outlasts
the use of force. //
We term this the New World Order -- a world of peace,
opportunity, and human dignity. It is as inevitable -- though
not as imminent -- as tomorrow. // It is a vision Australia is
helping shape. You have encouraged a larger role for the United
Nations -- and I salute you. / You helped shape the framework
for the Cambodia peace settlement agreed to by warring factions -
- and I assure you: Here, too, we will work together. America
will not abandon the search for stability in this region. //
More than 150 years ago, President Andrew Jackson appointed
J.H. Williams as the first American counsel in Australia. /
Arriving from Boston, Williams was greeted by an editorial: "We
regard his arrival," read the Australian paper, "as a pledge of
increasing intimacy between the two countries, from which mutual
advantages may be expected to flow. " //
One year ago, in the Persian Gulf conflict, the world saw
what those "advantages" meant. You were quick to condemn the
Iraqi invasion / to endorse economic sanctions / and to send
ships to engage in the multi-national coalition. / I want to
thank you for sending your medical teams and special divers, as
well -- and for providing humanitarian relief, such as medical
3
personnel and water purification equipment and services, to Kurds
and Iraqis fleeing Saddam's oppression. //
Last year, Australia stood fast so that liberty could stand
tall -- yet such insight is hardly new. // For years, you sought
to focus world attention on what today are world concerns. For
instance, in 1984 the "Australia Group" was created -- and its
twenty-two nations now are dedicated to preventing the use and
spread of chemical and biological weapons. // To global
problems, you believe in multilateral solutions. You know that
the Old Isolationism is really the Old Ignorance. //
There are those who predict that recent events in Europe and
Asia will create a more isolationist America. They could not be
more wrong. // We've been down that road before -- and, believe
me, it's a dead-end street. America once tried to isolate itself
politically, and ended up fighting two world wars. We tried it
economically -- and the result was a world depression. //
We are all children of the same humane and loving God. We
are all also members of the same world community. // So we
intend to intend to strengthen our already steadfast commitment
to Asia and the Pacific region. // We want to expand democracy,
free expression, freedom of worship, and, yes, free markets. //
Working together, we can increase the two-way trade between this
region and US which already totals over $300 billion. //
You know, someone mentioned to me that the flag of Australia
is the only one to fly over a whole continent. // You're like
that other Nation, my native Texas. / You do things big. // So
4
it is with trade. / We must reject the protectionism which
shrinks markets and throws people out of work. We need
cooperation, not confrontation, to increase trade and open
markets -- securing the prosperity which stems from jobs. //
In the United States, nearly half of our GNP growth between
USTR
In 1990
1985 and 1990 flowed from exports. Two years ago, our
Walters
merchandise exports to Australia were $8.5 billion -- up $188
In 1990,
more
than
million from 1989
Overall, the United States exported nearly
$520
$700 billion of merchandise and services
supporting, directly
and indirectly, a record 7.2 million jobs. //
I salute Prime Minister Hawke for policies to foster greater
openness and competitiveness in the economy. They have created
in the elimination of most import quotas, and reductions in
domestic subsidies and tariffs. // I also applaud how you have
helped strengthen the international economic system --- spurring a
regional effort to promote freer trade by eliminating trade
barriers and establishing common . //
The Australian poet, Adam Lindsey Gordon, wrote, "Question
not, but live and labour till yon goal be won." The Prime
Minister labored to create the Asia-Pacific Economic Cooperation
(APEC), a key economic forum. Since APEC's first ministerial
meeting in Canberra 2 years ago, it has mobilized all fifteen
participants to push for substantive progress in the GATT Uruguay
Round. / APEC has also explored ways countries in this region
can cooperate to achieve sustainable growth, increase employment,
and preserve the environment. APEC's goal is also ours: To
5
promote economic cooperation among Pacific Rim market economies,
including the United States. //
It is true America and Australia generally agree on goals.
It is also true that sometimes we differ on means. // One
difference is use use of the Export Enhancement Program (EEP) to
counter the agricultural subsidies of the European Community. I
Let me be clear: I oppose such subsidies. They burden the
taxpayer. They reduce the benefits of free trade. They make
industry less competitive. //
In an effort to defuse tensions over EEP, an Australian
delegation recently met with a team from our Department of
Agriculture. We heard your perspective on the current world
market situation, and your plea for sensitivity to Australian
trade. / Australian officials have expressed interest in
holding follow-up talks early in this new year. I hope that the
long-term gain for Americans and Australians from a successful
Uruguay Round will outweigh the short-term pain. //
I have agreed to greater bilateral dialogue on this and
other economic issues. We must, and will, seek understanding in
the future -- just as we have in the past. // We can be proud of
working together over the last five decades. Yet a record is not
something to stand upon. A record is something to build upon. //
We must expand our bilateral relationship in ways which will
benefit mankind from to New Hampshire. // We all share the
same environment. So last April, we agreed to pursue energy
policies which will increase exports while preserving our natural
6
resources. // We know -- as Disraeli said -- that "our children
are the trustees of our posterity." So yesterday we launched the
Australian Center for American Studies. This new national center
will expand bilateral links by developing programs of practical
value to business, education, and the universities. / We hope
this new center will be a forum where interdisciplinary study and
contemporary debate will cause future generations to say of
America and Australia, in the words of the great Protestant hymn:
"Bless be the ties that bind." //
These ties are economic, military, social, cultural. They
rest on shared values -- love of family, faith in God, pride in
country, love of the unknown. // The first pictures of Neil
Armstrong's adventure on the moon were beamed from Australia's
radio telescope at Parkes to a waiting world. Later, in return,
Apollo XV was named "Endeavor" after Captain Hook ship -- in
the hope of many future endeavors between our two Nations.
This new year, let's look forward to our next century
together. It is indeed our "obligation" to expand the bonds of
friendship for ourselves, and our children. Let's help them meet
the challenges of their time, as we have in ours: Building the
peace / creating jobs / increasing the benefit of God's bounty
for all. Thank you very much, and may God bless Australia and
the United States of America.
# # #
the rev w who Sue in
States.
Let me assure you that we
too, are committed to remaining
engaged throughout the world. There are those who predict that
recent events in Europe and Asia will lead to a more isolationist
America. This could not be farther from the truth. America
tried to isolate itself politically from the world in the past,
and ended up fighting two bloody world wars. We also tried
economic isolation that only helped to set off a devastating
world depression.
We plan to strengthen our already steadfast commitment to
Asia and the Pacific region in the decades ahead. For one
reason, this area has become our largest and fastest-growing
trade partner. Two-way trade between the region and the US now
amounts to more than $300 billion.
Cooperation and dialogue on economic issues can only benefit
our respective economies. We must continue this openness in our
relationship, and work for greater collaboration in our trade
relations, particularly as we both continue to face economic
difficulties on the domestic front.
The American economy and American jobs increasingly depend
on free trade and open markets. In the United States, nearly
half of our GNP growth between 1985 and 1990 was attributable to
In1990
exports. Last year, our merchandise exports to Australia were
Dto
$8.5 billion, increasing $188 million from 1989.
In 1991
the
1990
United States exported nearly $700 billion of merchandise and
figure
services. A record 7.2 million jobs were supported directly and
indirectly by U.S. merchandise exports alone in 1990.