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Resources and Foreign Policy - Australia's Options



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RTHON. B.M.SNEDDEN Q.C..M.P.

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74/185.

9.12.74

ADDRESS BY THE LEADER OF THE OPPOSITION, B.M.SNEDDEN,

TO THE COUNCIL ON FOREIGN RELATIONS, NEW YORK, 9 DECEMBER, . · · , · ; . ‘ Μ:·. ' · , . ' 19 74 ' : ; : .

Resources and Foreign Policy - Australia's ” Options ’ ' ' ' ·'"·,/ ■ "

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In this time of global uncertainty about the future of world resources, Australia's situation can! be described as one both of good fortune and heavy responsibility. Few nations have a better resources outlook than Australia. Consequently we are faced with an equal ,

degree Of responsibility in ensuring that other nations; can obtain reasonable Use of our resources, ' i

We u n d e r s t a n d and respect the reality of international!’ interdependence in a p e aceful and p r o g r e s s i v e world. D e v e l o p e d nations such as your own possess resources of a different character arid . ‘m i x . ! For ekample, the U n i t e d States is far .richer in the resources of technology, cap i t a l ’ and manag e m e n t w h i c h it c a n , e m p l o y to supplement • its own considerable natural resource s u p p l i e s . :

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Aust r a l i a ' s situation is quite different and therefore requires a different response: C o u n t r i e s should riot - and under' O u r alternative g overnment A u s t r a l i a will riot -: h i l o w the p o s s e s s i o n of natural resources and t h e ’Control Over :

their supply to u s e r nations to be Us e d to gain or to

ma i n t a i n improper influence in the affairs of thoSe toUntries. We consider the example of the recent oil embargo a s 'ΰ:ίί 1 ! dangerous and not in the world's interest or, in the longer t e r m , in the interests of resource e x p o i t e t S N ? i t d e m o n s t r ­ ated the growing i n t e r d ependence of nations iri d ramatic ,;

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Resources have become a vital factor of foreign policy facing nations with new responsibilities and obligations.

Resources policy is crucial to Australia's foreign policy options. For example, resources are the dominant factor in our relations with our largest trading partner, Japan and in our relations with E urope, the United States and China. The developing nations are heavily influenced by resources considerations,. . ... . „

•fFor generations, Australia has been a significant exporter of resources - traditionally f o o d - ■ -· -but increasingly in the post-war period of raw and semi-processed ores and metals.

Traditionally, Australia has participated in commodity agreements to rationalise production and marketing, e.g. sugar and w h e a t .

More recently, the impact of.the oil embargo has stimulated Australia's participation f'i;ri 'new resource arrangements, , concerning iron o r e , cop'^et1, /bauxite and other minerals and energy "resource's.';· ' ' ' . . .

That brings me t0: the second aspect of interdependence, which is the interdependence of external policies and internal matters such as the economy, monetary situation and develop­ mental policies. . . .

As for many ; other nations, Australia must consider with the utmost care; the external implications . of its resource policies; iti! the- ‘ final quarter of this .jcentury. . "At the, fore­ front/%fastPbe a. clear recognition of the. v uln e r ab i 1 i-t y e f .

the resOurce-poor arid the /prospect of conflict apd, instability flowing from- the’ compeiition' for resource s u p p lies.......

It may appqai ;tHat Mistraiia has.-q choice:. On the one; hand, greater' co -: Opl.O f at i ο ή and shared/prosperity; ’. . on the other,: hOardingV’preVsure and eventual dierupfion,. In reality, I believe the re:' is no real choice... The selfish alternative

could be maintained only in. the short, term and. only , at ultimate r i s k . ' ' . . . - ! . ’ ' " · .

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T h e w o r l d s r e s o u r c e s a re f o r m a n k i n d , n o t j ust f o r i n d i v i d u a l n a t i o n s . O f c o u r s e w e w i l l insist, o n a. fair, p r i c e f or o u r n a t u r a l r e s o u r c e s . E q u a l l y w e w i l l i n s i s t t h a t t e c h n o l o g y , c a p i t a l a n d the m a r k e t i n g a n d m a n a g e r i a l s k i l l s w h i c h are

t h e r e s o u r c e s o f the d e v e l o p e d c o u n t r i e s are a v a i l a b l e to us at a f a i r p r ic e.

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There are many other external implications: the new awareness of the food versus population conundrum; the urgent need for accelerated industrial growth, and the minerals and the energy that requires,.

In the struggle for resources, developing countries*have most to lose. , · . . : ··..·â– 

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If m e a n i n g f u l p r o g r e s s is to b e r e c o r d e d , t h e n the -Wealthy n a t i o n s m u s t s u p p o r t m a j o r f o o d p r o d u c e r s , l i k e A u s t r a l i a , in p r o v i d i n g f o o d a s s i s t a n c e . It s h o u l d n o t . b e l e f t to the r e s p o n s i b i l i t y o f the f o o d p r o d u c e r s alo ne.

T he w o r l d f o o d c o n f e r e n c e w a s a s t a r t . We m u s t m o v e on

b e y o n d tha t to e n c o u r a g e t h e d e v e l o p i n g n a t i o n s t h r o u g h e x c h a n g e s of t e c h n o l o g y , e c o n o m i c d e v e l o p m e n t , the g r o w t h of e m p l o y m e n t o p p o r t u n i t i e s , c o - o p e r a t i v e r e s o u r c e s d i s t r i b u t i o n a n d p o p u l a t i o n p o l i c i e s .

;It is c l e a r t h a t the q u e s t i o n o f r e s o u r c e s p o l i c y n o w lies at t he h e a r t o f the w o r l d ' s p r e s e n t e c o n o m i c p r o b l e m s a n d t ha t r e s o u r c e s p o l i c y c a n n o t b e s e p a r a t e d f r o m a c o u n t r y ' s f o r e i g n p o l i c i e s . L e t m e t h e r e f o r e set o ut d i r e c t l y the w a y in w h i c h the L i b e r a l a n d C o u n t r y P a r t i e s in A u s t r a l i a

h a v e 'approached t hi s q u e s t i o n o f resources, in t he p a st, o u r p r e s e n t a t t i t u d e s to r e s o u r c e s p o l i c y , a n d the p o l i c i e s w e w i l l i m p l e m e n t w h e n w e a g a i n b e c o m e the G o v e r n m e n t o f A u s t r a l i a .

W h e n w e w e r e the G o v e r n m e n t o f . A u s t r a l i a , w e g a v e p r i o r i t y to the e n c o u r a g e m e n t o f a ’h i g h vr a t e o f d e v e l o p m e n t o f o u r r e s o u r c e - b a s e d i n d u s t r i e s . W e g a v e i n c e n t i v e s to e n c o u r a g e

e x p l o r a t i o n f or m i n e r a l a n d e n e r g y r e s o u r c e s ; w e a l l o w e d s u c c e s s f u l e x p l o r e r s to e x p l o i t a n d e x p o r t .their r e s o u r c e s ; w e e n c o u r a g e d the i m p o r t o f o v e r s e a s c a p i t a l a n d knowhow* to w o r k in p a r t n e r s h i p w i t h A u s t r a l i a n e n t e r p r i s e ; w e e n c o u r a g e d

t h r o u g h t a x a t i o n i n c e n t i v e s , s e l e c t i v e s u b s i d y a r r a n g e m e n t s a n d h o m e p r i c e s u p p o r t s c h e m e s a h i g h r a t e o f d e v e l o p m e n t in o u r r u r a l i n d u s t r i e s . In s h o r t , w e p r o v i d e d a f r a m e w o r k f or a m a s s i v e e f f o r t b y p r i v a t e e n t e r p r i s e to d i s c o v e r , d e v e l o p , a n d se ll A u s t r a l i a n r e s o u r c e s .

The r e s u l t s o f t h o s e e f f o r t s are n o w b e i n g r e f l e c t e d in A u s t r a l i a , t h r o u g h t he i m p a c t o n o ur b a l a n c e o f p a y m e n t s , a n d a br o a d , t h r o u g h t h e i n c r e a s e in supplies* o f m a n y r e s o u r c e s to w h i c h A u s t r a l i a h a s .b e e n a b l e to c o n t r i b u t e . A u s t r a l i a h o w h a s e c o n o m i c p r o b l e m s , b u t t h o s e p r o b l e m s w o u l d h a v e b e e n i m m e a s u r a b l y w o r s e if it h a d n o t b e e n for

t ha t r e s o u r c e d e v e l o p m e n t .

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Australia's traditional role has; been as an exporter o f rural resources. In addition to, leading the world in wool:- ,: production, we are a significant.supplier of cereals.^ dairy produce, meat, fruit and sugar. Many, of these commodities will be in short supply in the coming years no matter what

measures can be implemented to curb world population growth. : Developing countries in particular are already facing severe food shortages. Countries such as Australia must maximise the capacity of their rural industries to

produce and export those products which will be most in need·, and to make contributions ' not. o n l y ' through trade but by direct aid. Restrictions on the international marketing of rural and pastoral coiiimodities constrains development in

the producing country and.thereby contributes to continuing world shortage. . ' . . . - . ·

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A u s t r a l i a is n o w s e l f - s u f f i c i e n t ,in most, m i n e r a l s a n d a m a j o r e x p o r t e r ; In the past' d e c a d b pur.;.ex-mine v a l u e o f p r o d u c t i o n h a s r i s e n f o u r - f o l d an d o u r m i n e r a l e x p o r t s n o w t o t a l m o r e t h a n a q u a r t e r o f all o u r e x po r ts . ,. We a r e m a j o r p r o d u c e r s

a n d e x p o r t e r s o f i r o n o r e , c o a l , ba.ux.ite a n d a l u m i n a , lead, zi nc, n i c k e l , a n d m i n e r a l sands. . ' ■/ ■ ' · · ’

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In addition,'we 'aiso have very substantial energy, reserves, particularly of Uranium and natural, gas; and we are 70 per cent-aelf-sufficieht in oil. " .. ; . . . · · . ■ ■ > . . ■ ■ ■ ■ · ■

. , · . · · ' :■ ■ - _ - i ; ■ " · ' This* brings me to some basic points to be made. . . · , : · .

First and foremost is that t h e .poafition Parties.which form • the joint Opposition ’ih? ;Austraiia 7. the Liberal Party. and the Country Party - ’a r e 'totally committed,to a high rate of economic growth, to the development of our resources and,

where we have a surplus, to the ‘export of our resources. To

develop ·those resources ive recognise that Australia will , continue to need overseas capital and technologicaliknowhow. This means we will need North American capital, a n d , technology. In Government; we;'will implement an overseas, investment policy which recognises these needs. It will also recognise the quite proper desire e f the Australian people to. maintain

control over the Use: ofr their resources.. I will return to that subject later. We believe private investment, initiative and enterprise must he the basis ifor; this..· development1 . Private enterprise, however, must have confidence based/Oh Confidence, about.· the requirements i · ' · . · Governments will impose' on if / , It . must be given clear : guidelines that It can r e l y :o n 'tO:make long-term investment decisions. - : ' ;, . . . ' . · . ' . . · .

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Exploration activity in Australia has fallen alarmingly in the last two y e a r s . . . . . . . . .

For example , unless there are substant i a 1. ady anc pme n f s in conversion' technology pr a^fapid;^ii.crease'.ih our vs ;. r ,: exploration program; Austrhlraj’ a; domestic oil resolirpes will be: serioiisily depleted by the . mid-1980 's.. This, will have three effects. ’ Firstly, Australians will. haye. to;

import their fuel which would significantly add to price and cost pressures in the Australian econpmy. That,... ; : v would force on us the adjustments which many other., ,, economies - both developed and developing - are finding

so difficult at present. Secondly, there could b e ; significant difficulties fot Australia's balance of, payments;; Thirdly, Australia would.become yet another Consuming'countfy adding to World demand. . This is,.of . course, in the future and forecasts have to be tempered by the possibility of changes in Consumption patterns and technology which may be triggered by · the'. change in the ■ · price of oil relative rto Other : energy sdiirces . But , .

there can be hoi doubt that if Australiatfails to step up its oil explofatiO'ri pfpgram now we. will, be taking an. endfmous risk and face a potentially high c ost. ... j;

We in the Liberal and Country Parties in Australia r i - . ; believe that there are a number of basic principle,4,jwhich must be observed before5 confidence, can be r e s t o r e d , to . · , , Australia's major resoufCe industries.

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First·,'hwe believe; that, private investment, initiative , i.; a n d : enterprise ate the1 Cornerstones'.of mineral . · explbrat ion and deveiopmerit. . Investors mus^t be e n titled to obtain ! i a: reasonable profit, f r o m the risks, · ■ : and effort undertaken.; ' A u s t r a l i a has a . mixed,,e c o n o m y , ...

but the drive'for our growth and devel o p m e n t has come from the private sector. . . . . ··â– â– â– .

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S e c o n d , the r i g h t of t h e m i n e r a l d i s c o v e r e r to d e v e l o p a d e p o s i t m u s t b e a c k n o w l e d g e d a n d r e s p e c t e d . T h e manner, in • w h i c h hie d e v e l o p s h i s d e p o s i t a n d the .community i n t e r e s t s he m u s t o b s e r v e are matters, for, r u l e s a n d n e go t i a t i o n .

N o b o d y c a n be e x p e c t e d to. invest, l a r g e s u m s o f r i s k c a p i t a l in e x p l o r a t i o n u n l e s s h e .is a s s u r e d o f .a d e q u a t e r e t u r n for h i s i n v e s t m e n t . : . ... . ...

T h i r d , G o v e r n m e n t s m u s t h o n o u r a g r e e m e n t s which, a r e e n t e r e d i nt o w i t h t h e p r i v a t e sec tor . .

. . . ■ ■ . . . · . ■■ : · : · . i ! " : ■ ' - ■ · ' .

Fourth, there must be recognition that thf State Governments are the owners of most of the minerals ip.'Australia and .no matter what agreements may be made or..rules.jiaidr;dqwn by the Federal G o v e r n m e n t ," these cannot be carried out..without the

co-operation and willing participation of t h e ;State - . •Governments. In this respect, the position of ownership of the seabed and continental shelf around the Australian coastline must' be "resolved as quickly.as possible. ·;

Uncertainty about'ithis matter is causing some of. the uncertainty and doxlbt Which is holding up vitally needed oil exploration. ·1 ‘ ; ‘ '

Fifth, overseas investment must be welcomed and encouraged as Australian Capital· is clearly inadequate for the: : finding and development of our mineral wealth.-,

In the past there is no doubt that the over.seas capital, which has supplemented" our own savings has contributed , materially to our growth. Without it, we could not have afforded oUf large Immigration program, we. would have been

denied access to heir technology and much of our mineral and energy resource's would still be undeveloped or undiscovered. ; ί · : " . / · : ‘ · .= ' " · * · > ' ' ' ’ . .

It has been e s t i m a t e d that to m a i n t a i n A u s t r a l i a ' s growth rate at the levels of the past decade or so will require

capital formation of between $US100 and $US200 b i l l i o n or m o r e . There is no doubt that our own domestic c apacity is

not ad e q u a t e to generate the capital n e e d e d if A u s t ralia is to achieve a high growth r a t e , even wi t h an improvement in ou r dom e s t i c capital m a r k e t .

In s h o r t , it is clear that we will continue to n e e d overseas investment to realise our full development potential. The Liberal and C o u n t r y Parties do recognise that there are costs

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o f o v e r s e a s i n v e s t m e n t a n d t hat A u st r ali an s· m u s t . h a v e u l t i m a t e c o n t r o l o v e r t h e i r o w n r e s o u r c e s . In, ,

G o v e r n m e n t we· w o u l d l a y d o w n f i r m g u i d e l i n e s t o V ; s u p e r v i s e t he c o n d u c t o f o v e r s e a s c o m p a n i e s t o e n s u r e t h a t ! t h e i r o p e r a t i o n s are porisisterit w i t h the n a t i o n a l i n t e r e s t : - T h e r e w i l l be m a n d a t o r y r e q u i r e m e n t s for the m a i n t e n a n c e o f A u s t r a l i a n o w n e r s h i p in c e r t a i n . , :

areas: o f the e c o n o m y , s u c h as b r o a d c a s t i n g , b a n k i n g ,. .; or r e s o u r c e s w h i c h h a v e s t r a t e g i c s i g n i f i c a n c e t o . . . :

A u s t r a l i a . T h e s e g u i d e l i n e s w i l l be blear. . . .

I n v e s t o r s w i l l be a b l e to i n v e s t k n o w i n g w h a t the r u l e s are.

W e d r a w a distinjfct d i f f e r e n c e b e t w e e n i n v e s t m e n t a i m i n g at o w n e r s h i p f r o i irivestment a i m i n g a t : c o n t r o l . .

A u s t ra li an ' c o n t r o l c an be a c h i e v e d arid is r e a s o n a b l e iri a s h o r t e r time t h a n is m a j o r i t y o w n e r s h i p . A s a b a s i s .

for f u t u r e a c h i e v e m e n t o f b o t h , o u r p r e f e r e n c e is for j o i n t v e n t u r e a r r a n g e m e n t s w i t h A u s t r a l i a n e q u i t y i p a r t i c i p a t i o n on a c o n s o l i d a t e d bas is. O u r p o l i c i e s w i l l be a i m e d at e n c o u r a g i n g A u s t r a l i a n p a r t n e r s h i p ; ..

i n v o l v e m e n t t h r o u g h A u s t r a l i a n - o w n e d c o m p a n i e s or., . .·;. a l t e r n a t i v e l y , t h r o u g h the corisol.idatioh o f A u s t r a l i a n e q u i t y i n t e r e s t s in n e w l y f l o a t e d ..compariies w h i c h c a n , , b e the p a r t n e r of the m a j o r o v e r s e a :s i n v e s t o r . .· .. ,

Sixt h, e x p o r t of m i n e r a l s m u s t be, A l l o w e d in r e a s o n a b l e q u a n t i t i e s a n d at f a i r p r i c e s , p i o v i d i n g .that . . .

A u s t r a l i a ' s f u t u r e n e e d s a re a d e q u a t e l y protected.. The e s t a b l i s h m e n t o f i n t e r n a t i o n a l r e s o u r c e s c a r t e l s to f o r m . m o n o p o l y s i t u a t i o n s a re n o t in t he i n t e r e s t s o f e i t h e r · , t he w o r l d ' s e c o n o m i c d e v e l o p m e n t n o r iri the i n t e r e s t s o f

stable, i n t e r n a t i o n a l r e l a t i o n s . E x p o r t i n g c o u n t r i e s h a v e a r i gh t to e x p e c t fai r m a r k e t p r i c e s for. t h e i r resources;. T he c r e a t i o n of M o n o p o l y s i t u a t i o n s to p u s h p r i c e s to a r t i f i c i a l l y h i g h l e v e l s t h r e a t e n s i n t e r n a t i o n a l e c o n o m i c p r o g r e s s . ' ' . . . . .

S e v e n t h , w e b e l i e v e t h a t m i n i n g c o m p a n i e s t o d a y u n d e r s t a n d the n e e d arid are q u i t e p r e p a r e d to a c c o m m o d a t e c o m m u n i t y . r e q u i r e m e n t s suc h as p r o t e c t i o n o f the e n v i r o n m e n t , .the p r e s e r v a t i o n of p a r k s a n d r e s e r v e s , t h e r i g h t s a n d .

n e e d s o f A b o r i g i n e s , l o c a l e q u i t y p a r t i c i p a t i o n , etc.., ,, p r o v i d i n g t h e s e r u l e s a rq c l e a r l y s p e l t o ut in a d va nc e, .; a n d n ot c h a n g e d a f t e r t h e y h a v e c o m m e n c e d d e v e l o p m e n t . M ;

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T h e s e , basically, are our attitudes to the development of our resources industries. We see Australia as having a growing role in the supply of food, mineral and energy

resources. We believe that we will continue, however, to be a net importer to human,and capital resources.on terms which Australian boy.ernments. must spell out clearly and with certainty. Wq· look. tp a co-operative use of resources between individual countries, You look to us as a potential

supplier of many'raw materials. We look to the United States as a,supplier of .capital, as I have stated, and as a supplier.of technology. Australia, has much to gain .;|J from co-operation with the United States., for example in solar energy technology, in nuclear technology and from- . the massive research program you have embarked o n ,i n .coal

conversion research. ' . , j . . ; ■ ' ■ . . · - . ·

The resource question at present is of crucial importance to both international relations generally ..and , to world ; i economic conditions. In.respect of the former.the main; impact , is on the M iddle. East situation, and I say . no more

about that today other than to reiterate my .Party's ..:. support for United Nations Resolution 2.42 as the has.fs ; for a negotiated and peaceful settlement of the Middle East conflict. . . . . . . . . . , ■ ; ·

It is the recent significant .rises in world oil prices: .and their impact on the world economic situation to which I direct the remainder, of my remarks. I will of course be ­ having intensive consultations on this, subject later this: week when I meet Secretary of the Treasury, Simon, and

officials o £ th^e ilnte.rnational Monetary Fund in Washington. I haive already noted with interest the statement made by Secretary Simop last month (to. the National: Foreign Trade Convention in, New York) that,: "The price .of oil itself, not its financial repercussions, is the. real source, of .

trouble in ‘ the world economy". . . ... : .

Nevertheless, as. the Japanese Government has. pointed out in its recent White Paper on International Trade,:, the impact of the oil crisis has varied significantly.according to country, depending oh such factors as each country's . dependency on petroleum for energy, dependency on oil

imports and. on OPEC in particular, r and whether· their : industrial structure is of the oil consuming, type. The White Paper^goes on to note that the.oil price: rise has . accelerated' the existing inflationary:, trend - in .many·.-··.;* :

developed countries. It concludes, however, t h a t : , ; . "By countjry, 'the, effect is strongest oh, Japan .whereas it is relatively, weak on thq United States and the. Federal Republic Of Germany." ' " ' ' '

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In both these countries inflation is relatively low . complied to many, other OECD countries and compared to Austrail%i,: Germany's inflation .fai'O oVer .the past year was 6.9 pir cent and appears to be1 'decelerating. Your

own inflation rate in the 12> months to. August was 11 per cent, although I am aware of estimates that it is expected to fall markedly next year.;v;< . · , . ■ ■ . .

The White Paper could well have, gone on to. say that the effect in Australia, . $s well,has been relatively weak. As a result of the exploration:effort in the p a s t , Australia at present is 70 per,cent sufficient in O i l . In terms of

petroleum fuel for motor vehicles, we are virtually self­ sufficient , and the. fact is that, as a result of an .

ag: reemen1 t between the then Australian Government and, the oil producers in 1970, there has been no rise in.Australian domestic crude oil prices since that d a t e . . . . .

Australia has undergone; a, marked, deterioration in··.. economic conditions in the last year or m o r e . The acceleration in . ou,r^inflation. rate compared to our long term average has been greater than any other OECD country except Greece. We now: have inflation at around 20 per cent, which is three : times greater, than in Germany;· and almost t w i c e :the U.S. inflation r a t e . Unemployment in Australia is double our. long; term average,. . :

There is no evidence of a. direct link between these - conditions And;the. oil price rises. Neither is t h e r e .any strong evidencer pf an indirect link, between the world · s problems of inflation and stagnation and Australia's own probiem?.. ;So, far., thepe. has. been no .serious., downturn· in our

exports generally, although there has been;a marked effect through export markets on beef and w o o l . There is .

therefore no evidence that; world conditions,.,have contributed to our current;problems of rising1unemployment and negative growth. There is little, evidence, that imported.; · influences h a v e .contributed .significantly;to the acceleration of inflation in Australia.. ,There has been a net deficit on our balance of payments over the last two years and

import prices have not significantly contributed to price rises.

Having said that, it would be a mistake to discount the possibility that a general world downturn in the coming months could not affect economic activity in Australia. World currency markets and the flow of funds internationally

are in a potentially volatile state. For that reason the Liberal and Country Parties in Australia have accepted as policy that Australia should have a flexible exchange rate and move toward the establishment of its own foreign exchange m a r k e t .

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Australia must closely watch economic trends in this country, and also in. Japan and the E.E.C. count-rites.·: Japan and some E.E.C.; countries-·are highly vulnerable to the oil crisis, and. Australia is vitally concerned

at the way in which the situation develops in these areas: as our major: sources of trade. :

World monetary reform and the. -trade situation g enter ally are also of vital importance to us. Australia's economic health, depends on expanding world trade. We live in an interdependent: world in: .which short-sighted policies which unduly limit the; international flow of commodities : and capital would be a set-back to us all. We believe,

therefore,, that Australia should continue to play-its role in seeking, improvements in the: functioning of the world·, economy through its. involvement in such areas as ; the General Agreement on Tariffs and Trade, ■ ■·· ,

international commodity agreements, and through multi­ lateral institutions such as the International Monetary Fund xvhi.ch I will, be visiting this week. : ■ . '.·:

I began today with the theme that· questions of resources . · ; and economics could n o .longer be; separated from questions of : fpreign p olicy and:, foreign relations. Diplomacy. will always, be . needed to . prevent, situations of conflict which

arise .in., the short-termw But there is a need also for · our foreign policy to be more far-sighted. ' We need to look ahead and examine potential causes of international tension w h e t h e r .they might occur in 2 years or 2 decades.; That requires that W e : also be far-sighted in developing our

r e s o u r c e s t r a d e r . aid i and population policies. . ; : ■ ■ ■ · ' ■.''·· · ' ■ ' : · ■ . ■ ' ’ ■ ' ■ ■ '

Australia, under a Liberal Country Party Government will contribute fully to that objective.: We have present - - economic difficulties it is t r u e . It is equally true that rih the future they:will be seen as a temporary aberration.

No country of the world .has a better combination of natural resources and the qualities needed Of people to exploit them. : I have immense;confidence in Australia's future under a free enterprise governmerit. : - '

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