Embargoed until 7.00 p.m. Broadcast: 3HA 14 August 1977

3YB 18 Augi 7

F77/17 4

P R I M E  IVilMlSTER

FOR PRESS 14 AUGUST 1977

ELECTORATE TALK

Relations between Australia and our South East Asian and Pacific  neighbours are continuing to grow in "strength and quality. We  have common interests and common goals. In particular, we have  a common desire for economic and social stability and enduring

peace.

The real worth of this relationship - one that has developed  over the last three decades - was demonstrated in Kuala Lumpur  last week. The Heads of Government of Japan, New Zealand and  Australia met with the leaders of the five ASEAN nations - Malaysia,  Thailand, Indonesia, Singapore and the Philippines. It was an  occasion of international significance. It was the first ever  meeting of its kind. The historic meeting achieved much. Common  problems were reviewed in a spirit of goodwill and understanding.

Problems were not brushed out of sight, but discussed frankly. The whole tone of discussion was one of mutual concern and underÂ­ standing, and a desire to find reasonable solutions to problems  in a reasoned w ay. There was a sincere wish to work together

for the development of the region.

The meeting was particularly important for Australia. It provided  the right opportunity to demonstrate our condinuing commitment and  involvement in the affairs of this region. At the same time, it  gave ASEAN leaders a chance to hear at first hand Australia's  policies during our economic recovery.

Australia’s commitment to ASEAN itself and to individual ASEAN  countries has never been stronger. Our commitment is on-going  and a basic part of the Government's foreign policy.

I believe we made this commitment clear to the Heads of Government  of ASEAN, through a number of significant initiatives that will  bring short and long-term benefits to every country within ASEAN. I will briefly outline our key initiatives.

We decided to provide an additional $10 million to finance  development projects under the ASEAN-Australia Economic Co-operation  Programmes (the original pledge of $5 million has now been fully  committed).  We increased the level of aid to ASEAN member countries

by $90 million to $250 million.

/The

2

The Government shortly will discuss with each member country  details of the particular project they wish to develop. This  money will provide a great opportunity for economic and industrial  activity within each country. While the money itself is important

for each country, the way in which it is being made available is, I believe, just as important. The money is being made available  as a committed sum - which, of course, allows the countries to  undertake long-term planning. We have also decided to give more  of this grant aid in an untied form. This means that each country  will be able to make greater use of local materials and equipment.

It will certainly assist development of local industry.

ASEAN countries were, of course, keen to increase their share of  trade with u s .  We proposed that ASEAN conduct an annual trade  fair in Australia to assist in the promotion and marketing of their  goods and services. I explained that there were opportunities -  particularly in clothing and textiles - to capture a greater share  of our import market. As it stands now, ASEAN countries competing

against Korea, Taiwan, Hong Kong and China have only 10% of that  trade. In the three years up to and including 1975-76, ASEAN  countries had gained a total of $60.2 million of our import market  in clothing and textiles. This compares with a total figure of

$649 million for the other four countries. This trade fair would  help ASEAN compete with the other countries in the region for a  greater share of the market in these and other areas.

Australia also agreed to sponsor an ASEAN/Australia Investment  Seminar and to meet the cost of a joint ASEAN/Australia Research  Project.

One of the most significant initiatives to come from the meeting  was our proposal that a consultative mechanism should be set up  as an 'early warning' signal on trade and other problems. The  Foreign Minister, Mr. Peacock, and the Foreign Ministers from the

five ASEAN nations, will put up detailed proposals as to how this  consultation process will work in practice, at the earliest  opportunity. This initiative - which will provide substantial  opportunities for consultation both to Australia and to the five  ASEAN nations - was warmly accepted and welcomed by ASEAN leaders

and officials. The meeting with ASEAN leaders also cleared the  air in relation to Australian exports there. As a result of a  direct request from me, the Malaysian Trade Minister, in the  presence of the Malaysian Prime Minister, told me that special  discriminatory measures against Australia had been lifted. This  is good news for Australian exporters.

The discussions we held with other leaders and Japan in particular  on a number of important issues, will also lead to continuing and  mutually rewarding relationships between our countries. Much of  the discussion with Japan's Prime Minister concerned the questions

of beef. I made it clear that the present arrangements of negotiatÂ­ ing beef quotas every six months hindered the beef industry's  ability to operate properly as it is an industry which has to  plan on a long-term basis.

/I

3

/Â·'

i

ÃÂ¨Â·

I suggested that our officials should work together to devise  a system which would better serve the needs of stability. The  Japanese Prime Minister agreed, and we shall shortly be sending  a team of officials to Japan who will be arguing for stability  of access.

Overall, the historic eight-nation meeting has cemented the  common bonds that exist between us. It has paved the way for  a continued strengthening of our relationship on all levels, and  it has certainly provided a renewal of confidence in the ability  of the region to progress and develop.

* * * *

