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PRIME MINISTER

TRANSCRIPT - PRESS CONFERENCE - SEOUL - SHILLA HOTEL 7 FEBRUARY 1984

FROM FILE 828/1/29

* FOR PRIME MINISTER'S PRESS OFFICE IN PARLIAMENT HOUSE

E AND 0 E PROOF ONLY

P.M.: LADIES AND GENTLEMEN I WOULD SAY AT THE OUTSET HOW MUCH I AND THE AUSTRALIAN PARTY HAVE ENJOYED OUR BRIEF VISIT TO YOUR COUNTRY. I'VE HAD THE OPPORTUNITY OF HAVING VERY SERIOUS DISCUSSIONS WITH

PRESIDENT CHUN AfJD WITH YOUR PRIME MINISTER. DEPUTY PRIME MINISTER  AND FOREIGN* MINISTER. WITH OFFICIALS AND. OF COURSE. ALL OF MY  OFFICIALS HAVE HAD THE OPPORTUNITY.  ALSO OF APRTICIPATING IN  DISCUSSIONS WITH YOUR COUNTERPARTS.

THE RANGE OF MATTERS THAT WE HAVE DICUSSED ARE AS FOLLOWS* FIRSTLY. THE REGIONAL SECURITY CONSIDERATIONS. MOST PARTICULARLY  RELATIONS BETWEEN YOUR COUNTRY AND THE DPRKÂ« AND BROADER REGIONAL .   SECURITY CONCERNS WE BOTH SHARE. SECONDLY. WE HAVE DISCUSSED  BILATERAL ECONOMIC RELATIONS BETWEEN OUR TWO COUNTRIES AND WE HAVE  AGREED THAT THERE IS ROOM-FOR AN EXPANSION. I BELIEVE A CONSIDERABLE  EXPANSION. OF TRADE BETWEEN OUR TWO COUNTRIES - AND WTHIN SUCH  EXPANSION THE OPPORTUNITY OF SOME REDRESS IN THE UNFAVOURABLE

IMABLANCE AGAINST KOREA IN THEIR TRADE RELATIONSHIP. WE BELIEVE  THAT CAN COME MOST PARTICLARLY BY KOREA SEEKING TO EXPAND ITS SHARE  OF THE EXISTING IMPORT MARKET IN AUSTRALIA. THE NUMBER OF CATEGORIES  WHERE WE HAVE VERY SUBSTANTIAL INPUTS. THE SHARE OF KOREA IS VERY ? VERY LOW INDEED1 . SO WE BELIEVE THAT TOGETHER WE CAN MOVE TO ASSIST  KOREA TO OBTAIN SOME EXPANSION IN THAT SHARE.

WE ALSO TALKED ABOUT THE DESIRE WE BOTH HAVE FOR A FREEING UP OF  INTERNATIONAL TRADE. THE SUPPORT THAT WE GIVE TO A CALL FOR A NEW  MULTILATERAL TRADE NEGOTIATION ROUND. AND IN THAT CONTEXT  PRESIDENT CHUN INDICATED SUPPORT OF KOREA FOR THE INITIATIVE THAT WE  HAVE TAKEN IN TRYING TO MOVE TOWARDS ARRANGING A MEETING OF THE

COUNTRIES IN THE REGION TO ATTEMPT TO SECURE AN AGENDA FOR SUCH A  NEW MTN ROUND WHICH TAKES ACCOUNT OF THE INTERESTS OF THE COUNTRIES  IN THE REGION.

NOW THAT IS NOT AN EXHAUSTIVE ACCOUNT OF ALL THE THINGS THAT WE  HAVE DEALT WITH IN OUR DISCUSSIONS YESTERDAY. BUT THEY COVER SOME OF  THE IMPORTANT AREAS. AND NOW I'D LIKE TO TAKE SOME QUESTIONS  FROM YOU.

JOURNALIST: (INAUDIBLE)

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P.M.s ...WILL I BE DICUSSIN6 IN PEKING THE QUESTIONS THAT WERE  RAISED HERE IN RESPECT OF THE KOREAN SITUATION. IS THAT THE  QUESTION. ... YES I HAVE INDICATED THAT I WOULD IN DISCUSSION THAT I  WILL INEVITABLY BE HAVING WITH THE CHINESE LEADERSHIP ABOUT REGIONAL  AND GLOBAL SECURITY QUESTIONS, I WILL BE CONVEYING THE VIEW OF THE  LEADERSHIP OF." THIS COUNTRY. AS TO THE OTHER MATTERS THAT I'LL BE

DISCUSSING IN2  CHINA - CLEARLY, THERE'S A BROAD RANGE OF ISSUES  THERE. BECAUSE YOU MUST UNDERSTAND THAT AUSTRALIA HAS A VERY CLOSE  RELATIONSHIP WITH CHINA WHICH COMMENCED WITH THE ELECTION OF THE  PREVIOUS LABOR GOVERNMENT AT THE END OF 1972 - THE EARLY RECOGNITION

BY AUSTRALIA OF CHINA. AND THAT RELATIONSHIP WAS BUILT UPON BY THE  PREVIOUS CONSERVATIVE GOVERNMENT. SO IN THE COURSE OF THE LAST  DECADE A CLOSE RELATIONSHIP HAS BEEN DEVELOPED IN A RANGE OF AREAS  OF ECONOMIC AND CULTURAL AS WELL AS POLTICAL. SO ONE OF THE AREAS  THAT WE WILL BE TALKING ABOUT IS PRECISELY THOSE CLOSE BILATERAL

RELATIONS. HOW THEY'RE OPERATING AND WHAT OPPORTUNITIES THERE ARE  FOR EXPANDING THEM. WE WILL ALSO CLEARLY BE TALKING ABOUT REGIONAL  ISSUES. NOT THE LEAST IMPORTANT OF WHICH OF COURSE AS FAR AS J  AUSTRALIA IS CONCERNED IS THE QUESTION OF INDO-CHINA. WE WILL BE  TALKING ABOUT THE INTERNATIONAL ECONOMIC. POLITICAL AND STRATEGIC  SITUATION - AND THOSE ARE THE BROAD RANGE OF ISSUES ABOUT WHICH WE  WILL BE TALKING. AND I BELIEVE THAT IN THAT CONTEXT OBVIOUSLY I  WILL BE REFERRING .TO THE MATTERS RAISED HERE WITH ME.

JOURNALIST: ABOUT YOUR DISCUSSION1  WITH THE CHINESE LEADERSHIP ABOUT THE KOREAN SITUATION. WHAT ... TO RENOUNCE THE VIOLENCE AND  BEGIN FACE TO FACE TALKS WITH SOUTH KOREA?

P.M.: WELL. I DON'T WANT TO OVERESTIMATE THE POWER OF AUSTRALIA. FROM THE TIME WE CAME TO OFFICE WE HAVE BEEN AT PAINS TO EMPHASISE  THAT WE ARE A SMALL NATION WITH LARGE RESOURCES. BUT A SMALL NATION  OF FIFTEEN AND A HALF MILLION PEOPLE. WE DON'T WANT TO EXAGGERATE  THE INFLUENCE THAT WE BRlfoG TO BEAR IN INTERNATIONAL COUNCILS. BUT HAVING SAID THAT I THINK IT IS TRUE THAT OURS IS A VOICE WHICH IS  LISTENED TO AND THEREFORE WE WILL BE SAYING IN WHATEVER FORUM. WHETHER IT BE IN BILATERAL DISCUSSIONS WITH IMPORTANT COUNTRIES  LIKE CHINA OR IN INTERNATIONAL FORUMS. WE WILL BE MAKING IT CLEAR  THAT THE REALITYÂ· WHICH MUST BE FACED BY THE DPRK IS THAT THERE ARE  TWO GOVERNMENTS ON THE KOREAN PENINSULA AND THAT THE REPUBLIC OF  KOREA IS VERY MUCH A VIBRANT. VIABLE REALITY. IT MUST BE RECOGNISED  AND DEALT WITH. AND THAT THE PROPOSITION THAT HAS BEEN ADVANCED  BY THE DPRK FOR TRI-PARTITE TALKS IS NOT REAL. THAT THERE MUST  BE FACE TO FACE DISCUSSIONS. DIRECT NEGOTIATIONS BETWEEN THE DPRK AND  THE ROK AND THAT THAT IS THE ESSENTIAL INGREDIENT FOR ANY ULTIMATE

RESOLUTION OF THE CONFLICT ON THE PENINSULA. AND THAT ONCE THAT IS  UNDERSTOOD. THERE IS ROOM FOR PERHAPS QUADRIPARTITE DISCUSSIONS OR  EVEN AS HAS BEEN SUGGESTED. A LARGER FORUM. TO WHICH COULD BE  ADDED JAPAN AND THE SOVIET UNION. BUT WHATEVER THAT LARGER FRAMEWORK  THE ESSENTIAL PART OF IT IS THE DIRECT FACE TO FACE NEGOTIATIONS  BETWEEN THE TWO REALITIES, AND THE TWO PRESENT REALITIES, ON THE

PENINSULA. NOW THAT IS THE ESSENTIAL UNDERSTANDING, THE POSITION OF  MY GOVERNMENT. WE'LL PUT THAT, AS I SAY, IN WHATEVER BILATERAL  DISCUSSIONS WE HAVE WITH RELEVANT COUNTRIES OR IN ANY INTERNATIONAL

FORUM.

JOURNALIST: MR PRIME MINISTER, YOU ARE TALKING ABOU THE FUTURE OF ECONOMIC RELATIONS OF KOREA AND AUSTRALIA. WHAT POINT DO YOU THINK  WE CAN PICK UP ON. WE HAVE A DISFAVOUR IN KOREA'S SIDE OF 2 TO 1  AND WHAT ARE THE SPECIFIC POLICIES OF AUSTRALIA ON THIS POINT. AND THERE ARE A LOT OF IMPORT RESTRICTIONS ON KOREAN MANUFACTURED  GOODS, WHAT IS THE AUSTRALIAN GOVERNMENT'S POSITION ON THIS?

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P.M.s LET ME CLARIFY ONE MISTAKE IN YOUR QUESTION FIRST. THEN I'LL  ANSWER THE OTHER PART OF IT. THERE ARE NO RESTRICTIONS ON KOREAN  GOODS. WE DON'T DISCRIMINATE AGAINST KOREA. TO THE EXTENT THAT  MOST OTHER COUNTRIES IN THE WORLD HAVE SOME ELEMENTS OF PROTECTION  FOR PARTS OF OUR DOMESTIC IDUSTRIES. THEY ARE NON-DISCRIMINATORY  AGAINST COUNTRIES. SO DON'T LET THERE BE ANY SUGGESTION THAT WE

DISCRIMINATE AGAINST KOREA BECAUSE WE DON'T.

AS TO THE QUESTION OF HOW WE MAY BE ABLE TO ASSIST IN REMEDYING THIS  IMBALANCE WHICH IS OF THE ORDER OF 3 TO 1 AGAINST KOREA. I'D MAKE  THESE OBSERVATIONS. FIRST, YOU MUST UNDERSTAND THAT TO SOME EXTENT  THAT IMBALANCE REFLECTS THE DIFFERING STRUCTURES AND DIFFERENT" MEANS OF OUR ECONOMIES. WE HAVE BECOME A MAJOR SUPPLIER OF RAW  MATERIALS FOR YOUR DEVELOPING INDUSTRIES, PARTICULARLY IN IRON ORE  AND COAL FOR YOUR INNOVATED IRON AND STEEL COMPLEX.

THE FACT THAT YOU HAVE REQUIRED LARGE QUAANTITIES OF THOSE RAW " Ã¢ÂÂ  MATERIALS, WHICH HAVE ENABLE# YOU TO DEVELOP YOU IRON AND STEEL  INDUSTRY AND EXPORT AS A RESULT OF THAT, THEY'RE NOT OF ITSELF A BAD  THING IN THE INITIAL IMBALANCE THAT EXISTS BETWEEN US. JUST LET ME

PUT IT TO YOU THIS WAY - IF YOU WANT TO BUILD UP, AS YOU HAVE, AN  IRON AND STEEL COMPLEX WHICH IS GOING TO ENABLE YOU TO HAVE  SUBSTANTIAL.BXPORTS TO OTHER COUNTRIES AND AUSTRALIA HAVING ITS OWN  IRON AND STEEL INDUSTRY, THE FACT THAT WE FACILITATE THAT EXPANSION

ON YOUR PART WHICH GIVES YOU THE OPPORTUNITY TO HAVE  SUBSTANTIAL EXPORTS TO OTHER COUNTRIES BUT NOT OF THAT PRODUCT TO  AUSTRALIA. IN OVERALL TERMS THIS IS VERY MUCH TO THE ADVANTAGE  OF KOREA EVEN THOUGH IN THE INITIAL PROCESS IT INVOLVES A  SIGNIFICANT IMABLANCE BETWEEN AUSTRALIA AND KOREA. IN OTHER WORDS  THE POINT THAT I'M MAKING IS THAT ANY COUNTRY MAKING A JUDGMENT  ABOUT ITS TRADING POSITION, IT'S TOTAL EXTERNAL RELATIONSHIPS - YOU

SHOULD NOT SIMPLY LOOK AJ ONE COUNTRY AND SAY, WELL THERE IS AN  IMBALANCE, IF IN THE PROCESS OF ACQUIRING THAT IMBALANCE, IF YOU  LIKE, YOU ARE FACILITATING AN OVERALL ACHIEVEMENT IN YOUR EXTERNAL  RELATIONSHIPS. THAT'S THE FIRST POINT.

THE SECOND, WHICH FLOWS TO SOME EXTENT FOR IT, IS THIS. THAT I'VE REMfNDfcD OF -MINISTERS AND OFFICIALS WITH WHOM I'VE SPOKEN  HERE THAT IF YOU LOOK AT THE PARTS OF TRADE RELATIONSHIPS BETWEEN f  AUSTRALIA AND JAPAN YOU WILL SEE THAT IN THE EARLY STAGES WHERE JAPAN  WAS BUILDING UP IT'S BASIC INDUSTRIES AND WE WERE SUPPLYING RAW  MATERIALS, THERE WAS THE SAME SORT OF VERY SIGNIFICANT IMBALANCE. NOW.AS THROUGH TIME THE STRUCTURES OF ECONOMIES CHANGED THAT GROSS

IMBALANCE IN THE JAPAN/AUSTRALIAN TRADE RELATIONSHIP WAS DIMINISHED.

THE THIRD POINT I MAKE IS COMING TO WHAT ARE THE IMMEDIATE SORTS OF  THINGS THAT WE CAN DO. WE HAVE SAID TO THE GOVERNMENT HERE, TO  OFFICIALS, THAT IF YOU LOOK AT AUSTRALIA'S IMPORT PATTERN THERE ARE  VERY MANY CATEGORIES THERE WHERE WE IMPORT HUNDREDS OF MILLIONS  OF DOLLARS WORTH OF GOODS FROM A RANGE OF OVERSEAS COUNTRIES WHERE  KOREA HAS AN INFINITESSIMALY SMALL SECTION. FOR EXAMPLE, IN REGARD

TO CATEGORIES OF WOVEN FABRICS WHEREOUR IMPORT RATE... JUST OVER  $100 MILLION. IN SOME OF THOSE CATEGORIES KOREA HAS A SHARE OF LESS.  THAN 0.57., LESS THAN HALF OF ONE PERCENT. WHAT WE'VE SAID TO THE  GOVERNMENT AND YOUR OFFICIALS IS THAT WE WILL TOGETHER, OR OFFICIALS  AND YOUR, SIT DOWN AND DISCUSS HOW WE CAN HELP KOREAN ENTREPRENEURS  BECOME MORE AGGRESSIVE IN THE AUSTRALIAN MARKET TO INCREASE TH1R

SHARE. SO WE STAND READY TO DO WHAT WE CAN TO ASSIST IN THOSE AREAS  WHERE THERE IS REALLY SIGNIFICANT ROOM FOR AN INCREASE IN KOREAN  EXPORT.

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I SIMPLY MAKE THE POINT FINALLY THAT THE ROOM FOR IMPROVEMENT IS NOT  ALL ONE WYA. WE BELIEVE THAT IN THE AREA OF RAW MATERIALS IN  ECONOMIC TERMS WE ARE A COMPETITIVE AND RELIABLE SUPPLIER AND WE  BELIEVE THAT IN POLITICAL TERMS THERE IS NO MORE STABLE A SUPPLIER

IN THE WORLD AND A MORE STABLE POLITICAL COMMUNITY THAN AUSTRALIA. AND WE BELIEVE THAT THERE IS ROOM FOR AN INCREASE IN THE IMPORT  OF OUR IRON ORE AND COAL INTO THIS COUNTRY. AND WE WOULD ALSO  SAY IN RESPECT OF WHEAT THAT THERE IS ROOM FOR AUSTRALIA TO HAVE  A SHARE OF YOUR WHEAT IMPORTS.

SO BOTH AGREE TO SEE WHAT WE CAN DO TO IMPROVE EACH OTHER'S ACCESS  TO THE MARKETS.

JOURNALIST: IT IS REPORTED THAT YOU CALLED FOR A REGIONAL COÂ­ OPERATION AMONG THE PACIFIC BASIN COUNTRIES DURING YOUR VISIT  T.O BANGKOK LAST NOVEMBER. WILL YOU PLEASE SAY OF THE CONCRETE

CONTENTS OF YOUR IDEAS OF THE SO-CALLED REGIONAL CO-OPERATION.

P.M.: AT THAT STAGE WHAT I WAS TALKING ABOUT WAS THAT 1  TO WHICH I ~ REFERRED IN MY OPENING REMARKS, AND THAT IS THAT THERE HAD BEEN IN  THE LAST TWELVE MONTHS CALLSÂ» '  MOST PARTICULARLY BY PRIME MINISTER  NAKASONE AND BY US SPECIAL TRADE REPRESENTATIVE BROCK FOR A NEW MTN  ROUND REFERENCE TO WHICH WAS FIRST MADE AT THE GATT MINISTERIAL  MEETING IN NOVEMBER OF 1982. .

WE WANT TO GIVE SUPPORT TO THAT CALL FOR A NEW MTN ROUND. BUT WHAT  I WAS SAYING IN BANGKOK IN THAT SPEECH ON 22 NOVEMBER WAS THAT IF YOU  LOOKED AT THE PREVIOUS MTN ROUNDS THE INTERESTS OF MANY OF THE  COUNTRIES IN OUR REGION HAD BEEN EXCLUDEDÃÂ¹  PARTICULARLY IF YOU  LOOK AT AUSTRALIA'S CONCERNS - A6RCIULTURAL PRODUCTSi PROCESSED  MINERAL PRODUCTS-HAD BEEN EXCLUDED. WE WERE SAYING THERE AND MY  OFFICIALS HAVE BEEN DEVELOPING THIS TRAVELLING ROUND THE COUNTRIES  OF THE REGION BEFORE MY VISIT, THAT IT MAKES SENSE FOR THE COUNTRIES  OF THIS REGION TO MEET TOGETHER AS SOON AS WE CAN TO IDENTIFY A  SORT OF AGENDA. ITEMS OF THE AGENDA OF SUCH AN MTN ROUND. WHICH WE  WOULD WANT TO HAVE ON IF THAT NEW MTN ROUND WAS GOING TO BE  MEANINGFUL. THERE'S NO POINT IN MOST OF THE COUNTRIES IN THIS REGION

IN HAVING MERELY A REPEAT OF WHAT HAPPENED BEFORE WHERE YOU HAVE A  LIMITED AGENDA DEALING ONLY WITH THOSE ITEMS WHICH CONCERN MAJOR  TRADING GROUPS" OF COUN4RIES. SO WHILE WE IN AUSTRALIA SAY. WELL . WE CAN IDENTIFY SAY PARTICULARLY AGRICULTURAL PRODUCTS, PROCESSED ’   MINERAL PRODUCTS AS MATTERS OF CONERN TO US WHICH WE KNOW WOULD BE  OF CONERN TO SOME OF THE COUNTRIES OF THE REGION - WE THINK THAT THE  COUNTRIES SHOULD GET TOGETHER SO THAT TOGETHER WE CAN SAY WELL  THESE ARE THE MATTERS THAT WE WANT TO DISCUSS. THAT WAS IN THE  BANGKOK SPEECH, THE SORT OF CO-OPERATION ABOUT WHICH I WAS IMMEDIÂ­ ATELY SPEAKING. LET ME MAKE THIS POINT THAT THAT WASN'T BEING  PUT BY AUSTRALIA AT THAT TIME AS EXHAUSTING THE AVENUES OF MORE-  REGIONAL CO-OPERATION. WE HAVE IN FACT TAKEN PART IN THE DISCUSSIONS  WHICH HAVE BEEN GOING ON OVER SOME RECENT YEARS IN WHICH WERE

REFLECTED IN THE BALI MEETING. WE HAD AUSTRALIAN REPRESENTATIVES  THERE WHO REPORTED BACK TO ME. YOU KNOW THAT THAT PECC CONCEPT  WHICH WE'VE BEEN INVOLVED IN WILL BE REFLECTED NEXT YEAR IN SEOUL  IN APRIL OF 1785. AS A GOVERNMENT WE WILL BE CO-OPERATING WITH .OUR

PEOPLE HEADED BY SIR JOHN CRAWFORD IN AUSTRALIA, WE'LL BE INVOLVED  IN THOSE DISCUSSIONS, WE'LL BE REPRESENTED HERE IN 1985 AS WE WILL  AT THE TPRC MEETINGS HERE, I THINK, IN APRIL OF THIS YEAR. SO THERE  ARE OTHER SORTS OF DISCUSSIONS WHICH ARE GOING ON ABOUT OTHER

POSSIBILITIES FOR REGIONAL CO-OPERATION. WE ARE ASSOCIATED WITH  THOSE DISCUSSIONS, BUT LET ME MAKE IT CLEAR THAT ANYÂ·CONCEPT OF  A REGIONAL ORGANISATION IN AN IMMEDIATE AND FORMALISED SENSE WE  THINK IS NOT YET APPROPRIATE ALTHOUGH WE ARE HAPPILY TAKING PLACE  IN THE ACTUAL DISCUSSIONS WHICH ARE GOING ALONG IN A GRADUAL SENSE.  AND I REPEAT IN BANGKOK IN NOVEMBER AND WHAT I'VE BEEN TALKING ABOUT  NOW IS DIRECTLY RELATED TO A PROPOSED MTN ROUND.

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JOURNALIST: WILL AUSTRALIA BE EXPORTING URANIUM TO SOUTH KOREA AND IF SO, IS AUSTRALIA SATISFIED WITH THERE WILL BE PROPER SAFEGUARDS.

P.M.: THERE ARE CONTRACTURAL ARRANGEMENTS BETWEEN AUSTRALIA AND ; KOREA AND THE; POLICY OF THE PREVIOUS GOVERNMENT WHICH HAS BEEN ! STRINGENTLY FOLLOWED BY MY GOVERNMENT.. BUT THERE WILL BE NO j EXPORTS OF AUSTRALIAN URANIUM TO ANY COUNTRY ... EXCEPT UNDER THE I   MbST STRINGENT SAFEGUARDS. AND IT IS ACKNOWLEDGED BY THE

INTERNATIONAL ATOMIC ENERGY AGENCY THAT AUSTRALIA HAS THE MOST  STRINGENT SAFEGUARDS AND WE CURRENTLY AS A GOVERNMENT APPOINTED AN  ENQUIRY, THE SLATCHER ENQUIRY, WHICH IS EXAMINING AUSTRALIA'S

PLACE IN THE NUCLEAR CYCLE AND TO SEE WHETHER THERE ARE ANY  ADDITIONAL PROVISIONS THAT NEED TO BE INCORPORATED INTO OUR SAFEÂ­ GUARDS PROGRAM. IF PROFESSOR SLATCHER SO INDICATES IN THE REPORT  WHICH I EXPECT TO RECEIVE IN MAY OF THIS YEAR AT THE LATEST, THEN OF COURSE THE GOVERNMENT., jWILL TAKE THOSE INTO ACCOUNT. SO I  REPEAT THAT WE HAVE CONTRACYURAL ARRANGEMENTS WITH .KOREA AND THEY  HAVE BEEN ADHERED BUT UNDER THE STRICTEST SAFEGUARD REGIME OF ANY  SUPPLYING COUNTRY IN THE WORLD. ÃÂ '.*!Â·'

