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PRIME MINISTER

TRANSCRIPT -  PRESS CONFERENCE -  SEOUL -  SHILLA HOTEL 7 FEBRUARY 1 9 8 *

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 V I S I T  TO YOUR COUNTRY.  I ' V E  HAD THE OPPORTUNITY OF HAVING VERY SERIOUS DISC USS IONS  WITH  PRESIDENT CHUN AND WITH YOUR PRIME M IN IS TER , DEPUTY PRIME MINISTER  AND FOREIGN M I N I S T E R , WITH OFFICIALS AND, OF COURSE, ALL OF MY  OFFICIALS HAVE HAD THE OPPORTUNITY ALSO OF PARTICIPATING IN

DIS CUSSIONS WITH YOUR COUNTERPARTS.

THE RANGE OF MATTERS THAT WE HAVE DISCUSSED ARE AS FOLLOWS:

FIRSTLY, THE REGIONAL SECURITY CONSIDERATIONS, MOST PARTICULARLY  RELATIONS BETWEEN YOUR COUNTRY AND THE DPRK , 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 I S  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

IMBALANCE AGAINST KOREA IN  THEIR TRADE RELATIONSHIP. WE BELIEVE  THAT CAN COME MOST PARTICULARLY BY KOREA SEEKING TO EXPAND ITS SHARE  OF THE EX IS TIN G IMPORT MARKET I N  AUSTRALIA. THE NUMBER OF CATEGORIES  WHERE WE HAVE VERY SUBSTANTIAL IN P U T S , THE SHARE OF KOREA I S  VERY  VERY LOW INDEED. 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 I N  THAT CONTEXT  PRESIDENT CHUN INDICATED SUPPORT OF KOREA FOR THE I N I T I A T I V E  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 I S  NOT AN EXHAUStlVE ACCOUNT OF ALL THE THINGS THAT WE

HAVE DEALT WITH I N  OUR DISCUSSIONS YESTERDAY, BUT THEY COVER SOME OF  THE IMPORTANT AREAS. AND NOW I ' D  LIKE TO TAKE SOME QUESTIONS  FROM YOU.

JOURNALIST: ( IN A U D IB L E )

P.M. : . . . W I L L  I  BE DICUSSING IN  PEKING THE QUESTIONS THAT WERE

RAISED HERE I N  RESPECT OF THE KOREAN SITUATION. I S  THAT THE  QUESTION. . . .  YES I  HAVE INDICATED THAT I  WOULD I N  DISCU SSIO N 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 TH IS COUNTRY. AS TO THE OTHER MATTERS THAT I ' L L  BE  DISCUSS ING I N  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 I S  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

IS S U E S , NOT THE LEAST IMPORTANT OF WHICH OF COURSE AS FAR AS  AUSTRALIA I S  CONCERNED I S  THE QUESTION OF IN DO -C HI NA.  WE WILL BE  TALKING ABOUT THE INTERNATIONAL ECONOMIC, POLITIC AL AND STRATEGIC

SITUATION -  AND THOSE ARE THE BROAD RANGE OF ISSUES ABOUT WHICH WE  WILL BE TALKING. AND I  BELIEVE THAT I N  THAT CONTEXT OBVIOUSLY I  *

WILL BE REFERRING TO THE MATTERS RAISED HERE WITH ME.

JOURNALIST: ABOUT YOUR DI SCU SSION WITH THE CHINESE LEADERSHIP ABOUT THE KOREAN SITUAT ION, 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 BRING TO BEAR I N  INTERNATIONAL COUNCILS.

BUT HAVING SAID THAT I  THINK IT I S  TRUE THAT OURS I S  A VOICE WHICH IS

LISTENED TO AND THEREFORE WE WILL BE SAYING I N  WHATEVER FORUM, WHETHER I T  BE I N  BILATERAL DI SCU SSIONS WITH IMPORTANT COUNTRIES  LIKE CHINA OR I N  INTERNATIONAL FORUMS, WE WILL BE MAKING I T  CLEAR  THAT THE REALITY WHICH MUST BE FACED BY THE DPRK I S  THAT THERE ARE  TWO GOVERNMENTS ON THE KOREAN PENINSULA AND THAT THE REPUBLIC OF  KOREA I S  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 I S  NOT REAL. THAT THERE MUST  BE FACE TO FACE D IS C U S S IO N S , DIRECT NEGOTIATIONS BETWEEN THE DPRK AND  THE ROK AND THAT THAT I S  THE ESSENTIAL INGREDIENT FOR ANY ULTIMATE  RESOLUTION OF THE CONFLICT ON THE PENINSULA. AND THAT ONCE THAT IS

UNDERSTOOD, THERE I S  ROOM FOR PERHAPS QUADRIPARTITE DISC USS IONS  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  I S  THE DIRECT FACE TO FACE NEGOTIATIONS

BETWEEN THE TWO REALITIES, AND THE TWO PRESENT REALITIES, ON THE  PENINSULA. NOW THAT I S  THE ESSENTIAL UNDERSTANDING, THE POSITION OF  MY GOVERNMENT. WE'LL PUT THAT, AS I  SAY, IN  WHATEVER BILATERAL  DIS CUSSIONS WE HAVE WITH RELEVANT COUNTRIES OR I N  ANY INTERNATIONAL

FORUM.

JOURNALIST: MR PRIME MI N IS T ER , YOU ARE TALKING ABOU THE FUTURE OF ECONOMIC RELATIONS OF KOREA AND AUSTRALIA. WHAT POINT DO YOU THINK  WE CAN PIC K UP ON. WE HAVE A DISFAVOUR I N  KOREA'S SIDE OF 2 TO 1

AND WHAT ARE THE SPECIFIC POLICIES OF AUSTRALIA ON T H IS  POINT. AND THERE ARE A LOT OF IMPORT RESTRICTIONS ON KOREAN MANUFACTURED  GOODS, WHAT I S  THE AUSTRALIAN GOVERNMENT'S POSITION ON T H IS ?

P.M. : LET ME CLARIFY ONE MISTAKE IN YOUR QUESTION F I R S T ,  THEN I ' L L ANSWER THE OTHER PART OF I T .  THERE ARE NO RESTRICTIONS ON KOREAN  GOODS. WE DON'T DISCRIMINATE AGAINST KOREA. TO THE EXTENT THAT  MOST OTHER COUNTRIES I N  THE WORLD HAVE SOME ELEMENTS OF PROTECTION  FOR PARTS OF OUR DOMESTIC I D U S T R IE S , 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 I N  REMEDYING THIS  IMBALANCE WHICH I S  OF THE ORDER OF 3 TO 1 AGAINST KOREA, I ' D  MAKE  THESE OBSERVATIONS. F I R S T ,  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 IN D U S T R IE S , PARTICULARLY I N  IRON ORE  AND COAL FOR YOUR INNOVATED IRON AND STEEL COMPLEX.

THE FACT THAT YOU HAVE REQUIRED LARGE QUAANTITIES OF THOSE RAW  MATERIALS, WHICH HAVE ENABLED YOU TO DEVELOP YOU IRON AND STEEL  INDUSTRY AND EXPORT AS A RESULT OF THAT, THEY'RE NOT OF ITSELF A BAD  THING I N  THE I N I T I A L  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 I S  GOING TO ENABLE YOU TO HAVE  SUBSTANTIAL EXPORTS 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. I N  OVERALL TERMS TH IS I S  VERY MUCH TO THE ADVANTAGE  OF KOREA EVEN THOUGH I N  THE I N I T I A L  PROCESS IT INVOLVES A  SIG NIFICANT IMBALANCE BETWEEN AUSTRALIA AND KOREA. I N  OTHER WORDS  THE POINT THAT I ' M  MAKING I S  THAT ANY COUNTRY MAKING A JUDGMENT  ABOUT IT S TRADING P O S IT IO N , I T ' S  TOTAL EXTERNAL RELATIONSHIPS -  YOU  SHOULD NOT SIMPLY LOOK AT ONE COUNTRY AND SAY, WELL THERE I S  AN  IMBALANCE, IF IN  THE PROCESS OF ACQUIRING THAT IMBALANCE, IF YOU  L I K E ,  YOU ARE FACILITATING AN OVERALL ACHIEVEMENT I N  YOUR EXTERNAL

RELATIONSHIPS. TH AT 'S  THE FIRST POINT.

THE SECOND, WHICH FLOWS TO SOME EXTENT FOR I T ,  I S  THIS.

THAT I ' V E  REMINDED OF MINISTERS AND OFFICIALS WITH WHOM I ' V E  SPOKEN  HERE THAT IF  YOU LOOK AT THE PARTS OF TRADE RELATIONSHIPS BETWEEN  AUSTRALIA AND JAPAN YOU WILL SEE THAT I N  THE EARLY STAGES WHERE JAPAN  WAS BUI LDI NG  UP I T ' S  BASIC INDUSTRIES AND WE WERE SUPPLYING RAW

MATERIALS, THERE WAS THE SAME SORT OF VERY SIGN IFICA NT  IMBALANCE. NOW AS THROUGH TIME THE STRUCTURES OF ECONOMIES CHANGED THAT GROSS  IMBALANCE I N  THE JAPAN/AUSTRALIAN TRADE RELATIONSHIP WAS D IM IN IS H ED .

THE THIRD POINT I  MAKE I S  COMING TO WHAT ARE THE IMMEDIATE SORTS OF  THINGS THAT WE CAN DO. WE HAVE SAID TO THE GOVERNMENT HERE, TO  OF F IC IA LS , 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 IN FIN ITE SSI M ALY  SMALL SECTION. FOR EXAMPLE, IN  REGARD  TO CATEGORIES OF WOVEN FABRICS WHEREOUR IMPORT RATE... JUST OVER

$1 0 0  MILLION. IN  SOME OF THOSE CATEGORIES KOREA HAS A SHARE OF LESS  THAN 0 . 5 % ,  LESS THAN HALF OF ONE PERCENT. WHAT WE'VE SAID TO THE  GOVERNMENT AND YOUR OFFICIALS I S  THAT WE WILL TOGETHER, OUR OFFICIALS  AND YOURS, SIT DOWN AND DISCUSS HOW WE CAN HELP KOREAN ENTREPRENEURS

BECOME MORE AGGRESSIVE I N  THE AUSTRALIAN MARKET TO INCREASE THEIR  SHARE. SO WE STAND READY TO DO WHAT WE CAN TO ASSIST IN  THOSE AREAS  WHERE THERE I S  REALLY SI GN IFI CAN T ROOM FOR AN INCREASE IN  KOREAN  EXPORT.

I SIMPLY MAKE THE POINT FINALLY THAT THE ROOM FOR IMPROVEMENT I S  NOT  ALL ONE WAY. 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 I S  NO MORE STABLE A SUPPLIER

IN  THE WORLD AND A MORE STABLE POLITICAL COMMUNITY THAN AUSTRALIA. AND WE BELIEVE THAT THERE I S  ROOM FOR AN INCREASE IN  THE IMPORT  OF OUR IRON ORE AND COAL INTO TH IS COUNTRY. AND WE WOULD ALSO  SAY IN  RESPECT OF WHEAT THAT THERE I S  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 I S  REPORTED THAT YOU CALLED FOR A REGIONAL COÂ­ OPERATION AMONG THE PACIFIC BASIN COUNTRIES DURING YOUR V I S I T   TO 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 TO WHICH I REFERRED I N  MY OPENING REMARKS, AND THAT I S  THAT THERE HAD BEEN IN  THE LAST TWELVE MONTHS CALLS, 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 M INIST ERIA L  MEETING I N  NOVEMBER OF 1 9 8 2 .

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 I N  OUR REGION HAD BEEN EXCLUDED, PARTICULARLY I F  YOU  LOOK AT AUS TRALIA'S CONCERNS -  AGRCIULTURAL PRODUCTS, PROCESSED  MINERAL PRODUCTS-HAD BEEN EXCLUDED. WE WERE SAYING THERE AND MY  OFFICIALS HAVE BEEN DEVELOPING T H IS  TRAVELLING ROUND THE COUNTRIES  OF THE REGION BEFORE MY V I S I T ,  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 I N  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 COUNTRIES. 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 I N  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 I N  WHICH WERE  REFLECTED I N  THE BALI MEETING. WE HAD AUSTRALIAN REPRESENTATIVES  THERE WHO REPORTED BACK TO ME. YOU KNOW THAT THAT PECC CONCEPT  WHICH WE'VE BEEN INVOLVED I N  WILL BE REFLECTED NEXT YEAR IN  SEOUL

IN  APRIL OF 1 9 8 5 .  AS A GOVERNMENT WE WILL BE CO-OPERATING WITH OUR  PEOPLE HEADED BY SIR JOHN CRAWFORD I N  AUSTRALIA, WE'LL BE INVOLVED  IN THOSE D IS C U S S IO N S , WE'LL BE REPRESENTED HERE I N  1 9 8 5  AS WE WILL  AT THE TPRC MEETINGS HERE, I  T H I N K ,  I N  APRIL OF THIS YEAR. SO THERE

ARE OTHER SORTS OF DI SCU SSIONS WHICH ARE GOING ON ABOUT OTHER  P O S S I B I L I T I E S  FOR REGIONAL CO-OPERATION. WE ARE ASSOCIATED WITH  THOSE D IS C U S S IO N S , BUT LET ME MAKE IT CLEAR THAT ANY CONCEPT OF  A REGIONAL ORGANISATION IN  AN IMMEDIATE AND FORMALISED SENSE WE  THINK I S  NOT YET APPROPRIATE ALTHOUGH WE ARE HAPPILY TAKING PLACE

IN THE ACTUAL DISCUSSIONS WHICH ARE GOING ALONG IN  A GRADUAL SENSE.  AND I  REPEAT I N  BANGKOK I N  NOVEMBER AND WHAT I ' V E  BEEN TALKING ABOUT  NOW I S  DIRECTLY RELATED TO A PROPOSED MTN ROUND.

5 .

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 CONTRACT.URAL 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  EXPORTS OF AUSTRALIAN URANIUM TO ANY COUNTRY . . .  EXCEPT UNDER THE

MOST 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,SAFE-  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 WILL TAKE THOSE INTO ACCOUNT. SO I  REPEAT THAT WE HAVE CONTRACTURAL ARRANGEMENTS WITH KOREA AND THEY  HAVE BEEN ADHERED BUT UNDER THE STRICTEST SAFEGUARD REGIME OF ANY  SUPPLYING COUNTRY IN  THE WORLD.

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