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Department of Foreign Affairs - Report - Year - 1981


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The Parliament of the Commonwealth of Australia

DEPARTMENT OF FOREIGN AFFAIRS

Annual Report 1981

Presented by Command 20 M ay 1982

Ordered to be prin te d 27 M ay 1982

Parliamentary Paper No. 139/1982

M t

Department of Foreign Affairs Annual Report 1981

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Department of Foreign Affairs Annual Report 1981

AUSTRALIAN GOVERNMENT PUBLISHING SERVICE CANBERRA 1982

© Commonwealth of Australia 19§2

ISSN 0728-6473

Notes 1. All $ are $A, unless otherwise stated. 2. The Australian financial year is from 1 July to 30 June and is indicated thus: 1980-81.

Printed by C anberra P ublish in g a n d P rinting Co.

Department of Foreign Affairs Canberra

Minister, I submit the Annual Report of the Department of Foreign Affairs for the period 1 January to 31 December 1981. Following established practice an outline of Australia’s overseas aid program

is included in the Report. Further details are provided in the Australian De­ velopment Assistance Bureau’s Annual Review.

P b f· Η ^ —.—"

(P. G. F. Henderson) Secretary May 1982

The Honourable A. A. Street, M.P. Minister for Foreign Affairs Parliament House Canberra, A.C.T. 2600

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Contents

Introduction .................................................................................................... 1

International security .................................................................................... 8

East-West security issues ................................................................................ 8

Australia’s security involvements .................................................................... 11

Nuclear issues and arms control ................................................................ 13

Nuclear safeguards agreements ................................................................... 13

Nuclear policy developments in Australia ....................................................... 14

International consideration of peaceful nuclear issues ................................. 14

Nuclear issues in the Pacific ........................................................................... 15

Arms control and disarmament ....................................................................... 16

Economic developments .............................................................................. 18

International trade issues ................................................................................ 18

International monetary issues ......................................................................... 19

Energy ............................................................................................................. 20

Food supply .................................................................................................... 21

North-South issues ........................................................................................... 21

Organisation for Economic Co-operation and Development ......................... 23 Civil aviation .................................................................................................... 24

Antarctic Marine Living Resources ................................................................. 25

Pacific Community concept ............................................................................ 25

Multilateral co-operation .............................................................................. 26

Australia’s United Nations involvement .......................................................... 26

Peace-keeping ................................................................................................ 26

Human rights .................................................................................................. 27

United Nations Educational, Social and Cultural Organisation ...................... 28 United Nations Decade for Women ............................................................... 28

International Year of Disabled Persons ............................................................ 29

The Commonwealth ......................................................................................... 29

Refugees and immigration matters ............................................................. 31

Refugee issues ................................................................................................ 31

Refugee situations ........................................................................................... 33

Indo-China .................................................................................................... 33

Afghanistan .................................................................................................. 33

Africa ........................................................................................................... 33

Eastern Europe ............................................................................................ 34

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Immigration ....................................................................................................... 34

Asylum .............................................................................................................. 34

international legal affairs ............................................................................... 35

Law of the Sea Conference ............................................................................. 35

Maritime boundary issues ............................................................................... 35

Antarctica ......................................................................................................... 36

Legal issues in the United Nations .................................................................. 37

Treaty-making by Australia ............................................................................. 37

Australia’s overseas aid program 1981-82 ................................................. 38

Papua New Guinea .......................................................................................... 38

Bilateral program ............................................................................................. 39

Training ............................................................................................................ 40

Food security ................................................................................................... 41

Non-Governmental Organisations .................................................................... 42

Multilateral aid ................................................................................................. 43

Refugees and relief .......................................................................................... 43

Asia .................................................................................................................. 44

South East Asia ............................................................................................... 44

ASEAN .......................................................................................................... 44

Indonesia ....................................................................................................... 45

Malaysia ........................................................................................................ 45

Singapore ..................................................................................................... 46

Brunei ............................................................................................................ 46

Philippines ..................................................................................................... 46

Thailand ........................................................................................................ 47

Burma ............................................................................................................ 47

Indo-China ..................................................................................................... 47

North Asia ........................................................................................................ 48

Japan ............................................................................................................ 48

China ............................................................................................................ 49

The Koreas ................................................................................................... 50

South Asia ........................................................................................................ 51

India .............................................................................................................. 51

Pakistan ........................................................................................................ 51

Bangladesh ................................................................................................... 51

Sri Lanka ...................................................................................................... 52

Afghanistan .................................................................................................. 52

The Americas ................................................................................................. 53

United States .................................................................................................. 53

Canada ............................................................................................................ 55

Caribbean ........................................................................................................ 55

Central and South America ............................................................................. 56

Europe ............................................................................................................. 57

Western Europe ............................................................................................... 57

Eastern Europe ................................................................................................ 58

USSR ........................................................................................................... 58

Poland ................................................................................................·......... 59

Others ........................................................................................................... 59

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Middle East .................................................................................................... 60

The Arab-lsraeli conflict .................................................................................. 60

Egypt ............................................................................................................... 61

Israel ................................................................................................................. 61

Lebanon ........................................................................................................... 61

Iran and Iraq .................................................................................................... 62

The Gulf ........................................................................................................... 62

Relations with Australia ..................................................................................... 62

Africa ................................................................................................................ 63

Black Africa ....................................................................................................... 63

Southern Africa .................................................................................................. 64

South Pacific .................................................................................................. 66

Island states .................................................................................................... 66

New Zealand ..................................................................................................... 68

Information and cultural relations ............................................................... 69

Information activities ......................................................................................... 69

Cultural relations .............................................................................................. 69

Public affairs .................................................................................................... 71

Historical Section .............................................................................................. 72

Library .............................................................................................................. 72

Australians abroad ......................................................................................... 73

Consular issues ................................................................................................ 73

Passports ......................................................................................................... 74

Management ................................................................................................... 75

General developments ..................................................................................... 75

Staffing .............................................................................................................. 76

Conditions of service ........................................................................................ 76

Training ............................................................................................................ 76

Financial administration ................................................................................... 77

Audit ................................................................................................................ 77

Property ........................................................................................................... 77

Domestic ...................................................................................................... 77

Overseas ...................................................................................................... 78

Security ........................................................................................................... 78

Communications .............................................................................................. 78

Information and general systems ................................................................... 78

Ombudsman .................................................................................................... 79

Special appointments ..................................................................................... 79

Appendixes ................................................................................................... 30

1. Organisation chart at 31.12.81 80

2. Annual expenditure ................................................................................... 81

3. Staffing at 30.11.81 ................................................................................... 81

4. Australian missions overseas at 31.12.81 .................................................. 82

5. Diplomatic representation to Australia at 31.12.81 ................................... 82

6 Publications in 1981 ................................................................................... 84

7. Official development assistance ................ : ............................................. 85

8. Geographic distribution of Australian aid 1980-81 85

9. Acronyms ................................................................................................... 86

vi

Introduction

During 1981 there were a number of significant changes in the issues taking pre-eminence on the international agenda. For Australia, these developments led to some adjustments, not in the fundamental character and objectives of our foreign policy, but in the degree of attention accorded to various questions.

A major development at the outset of the year was the assumption of office by a new Administration in the United States ready to re-assess a range of previous policies; and with a more sharply defined attitude than did its pre­ decessor about United States interests and role in the world. The Reagan Ad­ ministration's perception and strong expression of a growing threat from Soviet military power and from expansionist and adventurist policies, and its concern to project United States interests more strongly in particular regional situations where there was an East-West dimension, had a world-wide impact. For the

Western-aligned group of states, there was the challenge presented by a vig­ orous re-assertion of United States leadership of the alliance and the proposed strengthening of American military power. For the Soviet Union, there was the prospect of a considerably more stringent framework within which East-West

relations would be handled, in particular the question of arms control negotia­ tions. For the world at large, but particularly for non-aligned and developing countries, there was the readiness of the Reagan Administration to promote strategic co-operation with and to sell arms to selected countries, a more criti­

cal approach to activity in the United Nations and other multilateral forums and a concern to promote a reassessment of United States involvement in inter­ national action on law ot the sea, the 'North-South’ debate between developed and developing countries, arms control and human rights matters. For Austra­ lia, the task has not only been to establish relations of warmth and confidence with the Reagan Administration, which was achieved at an early stage with vis­

its by the Prirrle Minister and Foreign Minister to Washington, but to examine closely and to respond as appropriate to the range of new policy approaches adopted and pursued by the United States internationally. A fundamental concern of Australian policy during the period under review was to further our interests in broad strategic issues and to carry out our re­

sponsibilities as a middle power to contribute to the maintenance of a global balance and to a fundamental unity of approach among Western-aligned states to matters arising in East-West relations. The sharpening of East-West tensions from the beginning of 1980 following the Soviet invasion of Afghanistan, com­

bined with the new policy approaches adopted by the Reagan Administration a year later, ensured that these issues remained at the forefront of our agenda.

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Our policy of maintaining sanctions against the USSR over its continued in­ volvement in Afghanistan demonstrated continued anxiety at the deterioration in the international situation and the need for appropriate counter-measures.

Careful monitoring by the Department of Foreign Affairs of the evolving situ­ ation in Poland during 1981 was a reflection not only of the Government's in­ tense interest in the far-reaching nature of the changes wrought in the political system of a Communist state, but also a concern to help mitigate the impact of the burgeoning economic crisis upon the well-being of the Polish people. It

represented a recognition of Poland's importance in strategic terms and the serious implications for East-West relations of intervention—particularly military intervention—by the Soviet Union. The visit by the Minister for Foreign Affairs, Mr Street, to Warsaw in late November 1981 was an expression of Australia’s wish to be as fully informed as possible about the Polish situation as a basis for consultations as necessary with our allies and for appropriate policy de­ cisions. This objective was achieved as a result of Mr Street’s conversations not only with his Polish counterpart, Mr Czyrek, but also with the three principal figures in the Polish political scene— Prime Minister Jaruzelski, the Catholic

Primate Archbishop Glemp, and the ‘Solidarity’ leader, Lech Walesa. Following the imposition of martial law in Poland on 13 December, the Govern­ ment moved promptly to support efforts for co-ordinated action among the Western-aligned states to condemn events in Poland, to signal to the Polish martial law authorities that normal government-to-government business was no longer possible and to make clear to the Soviet Union that its part in the Polish situation was unacceptable and warranted a firm response.

Throughout 1981, unabated confrontation and conflict in the Middle East led to a stronger international focus upon the problems of this region and its broader implications for global stability. The maintenance of a high level of tension in the Arab-lsraeli conflict, the assassination of President Sadat of Egypt, exacerbation of conflict and violence within Lebanon and Iran, the con­ tinuing war between Iran and Iraq, differences and strains among the Arab states and the opportunities presented for Soviet interference, along with the unsettling effect of the continuing conflict in Afghanistan, all combined to pro­ duce one of the most fragile of situations. Amid all this, continued progress in the execution of that part of the Camp David accords dealing with Israel’s evacuation of the Sinai peninsula and moves to establish the multinational force and observer (MFC) team to monitor the implementation of the evacua­ tion was remarkable. Australian concern about the overall situation in the Mid­ dle East and its implications for international security and support for practical measures along the long road to peace in the region encouraged the Govern­ ment to give favourable consideration to participation in the MFO. The readi­ ness of four Western European countries to join the United States and some others in providing military contributions to the MFO was a key condition to Australian participation. Although the main negotiations took place during

1981, final details were not settled until early in 1982. Along with attention to such new areas of policy interest as the Sinai MFO, the Department continued throughout 1981 to pay close attention to the con­ solidation and strengthening of our relations with both likeminded countries such as Canada, New Zealand, Japan and the nations of Western Europe, with which we share many similar objectives on a whole range of international is­ sues, and with our neighbours in the Asian-Pacific region in whose stability and

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The Secretary ot the Department ot Foreign Affairs, Mr P. G. F. Henderson, Australian

Information Service (AIS) photo.

economic progress we have a vital concern. The further development of these relationships—which represent a long-standing element in Australian foreign policy—involves changes of emphasis and varying levels of activity from year to year in response to new trends, but the essential thrust of policy remains consistent.

We have continued to devote considerable effort to our relations with the ASEAN countries (Indonesia, Malaysia, the Philippines, Singapore and Thai­ land). Annual consultations between Foreign Ministers are now an established pattern with our participation along with the United States, Japan, Western

Europe and several others in the annual expanded ASEAN Foreign Ministers meeting. Mr Street attended the 1981 meeting in Manila in June. The rapid ex­ pansion of trade, commerce and investment between Australia and the ASEAN countries has been accompanied by the need for regular technical discussions

and consultations on political aspects. The unresolved issue of Kampuchea continues to have a major influence upon South East Asian affairs. It is a question not just of regional concern but of wider international significance, involving as it does the interests of the

United States, the Soviet Union and China. Early in 1981, Australia moved to a policy position independent of the ASEAN countries, the United States and China, when it withdrew recognition of the Democratic Kampuchean regime (DK) while at the same time maintaining its stand against recognition of the Vietnamese and Soviet-backed Heng Samrin regime in Phnom Penh. The Gov­ ernment’s derecognition of the DK regime reflected strong public sentiment in Australia against the massive killings and violation of human rights carried out

by the Khmer Rouge following their victory in the civil war in 1975.

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While our formal position of Kampuchea differed from that of the ASEAN countries, we retained a broad identity of interest with them in working for a political solution in Kampuchea which would lead to the withdrawal of Viet­ namese forces. We co-operated closely with ASEAN at the International Con­ ference on Kampuchea in New York in July, which the Foreign Minister at­ tended, and in the UN General Assembly and more recently have viewed

sympathetically ASEAN’s efforts to encourage the formation of a coalition among the three anti-Vietnamese Khmer factions. Australia continued to pro­ vide large-scale humanitarian assistance to Indo-China, including the accept­ ance of refugees and the extension of food aid in Kampuchea.

The Government continued to attach importance to the development of close and co-operative relations with Indonesia. Notwithstanding continuing diffi­ culties over the representation of the Australian news media in Indonesia and slow movement in the program to re-unite East Timorese families, government- to-government relations have continued on a constructive basis. Our relations with Malaysia are of particular significance because of historical associations, the fact that Malaysia is ASEAN’s designated country of first contact for Austra­

lia and a burgeoning economic connection. We look forward to continued close links with Malaysia under its new Prime Minister, Datuk Seri Dr Mahathir Mohamad. North Asia continues to be an area of vital importance to us. It is of major strategic significance because the interests of four major powers—the United States, the Soviet Union, China and Japan—are engaged and because of the continuing division of the Korean peninsula. The Department of Foreign Affairs continued to monitor closely relations among the North Asian powers and their policy implications for Australia. With Japan, close contact between Ministers on political and economic issues was maintained, reflecting the common inter­ ests of Australia and Japan and the size of the economic relationship. There has also been encouraging progress in promoting contacts between the peoples of the two countries. In the case of China, we sought to consolidate political, commercial and cultural ties and to encourage the continuing process of China’s assumption of its role as a member of the international community.

South Asia remained a region of global strategic preoccupation. Australia shared general Western concern about the pressures upon Pakistan resulting from the conflict in Afghanistan and recognised its increased security re­ quirements. We also regretted the apparent increase in tension between India and Pakistan during the year; expressed our anxiety about the possible risk of nuclear proliferation in the sub-continent; and watched political and economic developments in Bangladesh with some concern'. In addition to our monitoring closely the overall political and strategic situation in the region, there has been sustained effort over the year to strengthen relations with individual South Asian states and to extend appropriate assistance.

Australia’s interests in the South Pacific continued to rest upon the strategic importance of the region to Australia and our responsibility as a developed na­ tion to assist the particular developmental requirements of the new island states with their mostly poor resources and limited populations. Political con­ tact was sustained through the South Pacific. Forum and the Commonwealth connection, as well as on a direct basis. The election of a socialist government in France during 1981 carried implications for French territories in the Pacific, which are the principal remaining European dependencies in the region. In

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New Caledonia, the French Government will be introducing economic and so­ cial reforms aimed at defusing tensions between the Melanesian and European populations, but there is as yet no commitment to political reforms as a precur­ sor to independence. It is the Australian hope that the mission to Paris from the

South Pacific Forum will lead to movement by France towards independence as a desirable objective for the French South Pacific territories.

The significance of events in southern Africa for stability in the African-lndian Ocean region led Australia to continue to take a close interest in develop­ ments. We maintained our contribution to international pressure against apar­ theid in South Africa which continues to be the major source of tension and

instability in the region. Our strong stand against sporting contacts with South Africa and in particular against the Springbok rugby tour of New Zealand was well received internationally. We followed closely diplomatic efforts by the United States, Canada and the major Western European powers to settle the

future of Namibia as an independent state; and provided practical assistance to the Zimbabwe Government.

Some Australian interests are best pursued solely or principally through mul­ tilateral bodies. Australia continued to play an active role in the activities of the United Nations, its specialised agencies and the Organisation for Economic Co-operation and Development (OECD). The range of issues treated in inter­

national forums extends from the purely political through arms control, human rights and decolonisation to international economic relations, development as­ sistance, the debate between developed and developing counries, peaceful uses of nuclear energy, law of the sea and on to matters of social and hu­ manitarian concern, such as refugees, disaster relief and protection of the en­ vironment. Australia’s involvement in international activity on all these questions

over the year took up a considerable part of the overall resources devoted to foreign policy concerns. During 1981, one of the most striking developments in the multilateral sphere

was the increased focus upon the international economic situation and in par­ ticular the intensification of efforts to move forward the ’North-South’ dialogue between the Western developed countries and the group of developing coun­ tries from Asia, Africa and Latin America, with the opening of ‘Global Negotia­

tions’. The North-South issue was a principal theme at three major summit meetings during 1981: the conference in Ottawa in July among the seven lead­ ing Western nations and Japan; the Commonwealth Heads of Government Meeting (CHOGM) in Melbourne in September-October; and the conference at Cancun, Mexico, in October bringing together the leaders of 21 developed and

developing countries. These meetings helped to establish an improved atmos­ phere for the subsequent consideration of the launching of Global Negotiations in the United Nations General Assembly during November and December. It is a matter for both regret and concern that, in particular, continuing areas of disagreement between the United States and developing countries have so far

prevented the achievement of an international consensus for the opening of Global Negotiations. The Australian Government made clear its conviction that progress towards resolving problems of reduced economic growth and tensions generated by vast disparities in national income, the terms of trade and aid, food security, the high cost of imported energy and so on was essential to an overall im­

provement in international relations and to the enhancement of political stabil­

5

ity. Concrete expression was given to this concern by a decision to increase the amount spent by Australia on official development assistance in the 1981­ 82 financial year by $100 million to $662 million. Emphasis was also laid on the implications of progress in the North-South debate for the mitigation of tensions in the East-West context. Australia accordingly took an active part in efforts to achieve the opening of Global Negotiations. Our hosting of the Commonwealth Heads of Government Meeting enabled us to direct efforts towards facilitating the subsequent key discussions at Cancun. In the UN General Assembly to­ wards the end of the year, we worked hard as a member of a small contact group to promote a consensus on the terms of a resolution which would set in train a new process of Global Negotiations. The Foreign Minister visited New York during November to emphasize our concern. Subsequently, when the As­ sembly adjourned without agreement on a resolution, our Permanent Represen­ tative in New York was accorded a leading role in sustaining consultations on the issue.

All this reflected the considerable international standing which Australia achieved during 1981 for its strong support for progress in the North-South dialogue. CHOGM represented a high point for these efforts, as well as en­ hancing Australia’s international reputation more generally. The Government

The Prime Minister, Mr Fraser (left) with the Zambian President, Dr Kenneth Kaunda, at Government House, Canberra during the CHOGM retreat. AIS photo.

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was very satisfied with the overall results of the Melbourne meeting which fulfil­ led many, if not all, expectations and which reaffirmed a significant role for the Commonwealth in world affairs. The Melbourne Declaration on relations be­

tween developed and developing countries was a major achievement and set the scene for agreement by the meeting on several practical studies to be conducted within the Commonwealth framework on obstacles to the economic growth of the developing countries and to progress in the North-South dialogue. A substantive contribution also was made to the development of consensus on some of the key issues of the day. The communique issued at the end of the meeting contained expressions of opinion by Heads of Govern­

ment on many subjects, including some of particular interest in Australia such as Afghanistan, Kampuchea and Poland. One cause for some regret was the absence of a consensus on an expression of interest by Pakistan in returning to membership of the Commonwealth. As host, the Government took soundings both before and during CHOGM on other members’ views about Pakistan's

possible re-admission and found general agreement to support this. Unanim­ ous endorsement was not, however, possible, although there is some encour­ agement from a decision by the Heads of Government to remain in touch on the issue.

Growing interdependence among states and the ever-increasing number and range of matters—both of a policy and technical nature—which are ad­ dressed in multilateral forums has meant that many issues which have not tra­ ditionally been taken up in international diplomacy or which previously have

been matters of purely domestic concern are now the subject of international discussion and inter-governmental regulation. Foreign Ministries, while sharing responsibility for the handling of many ‘new agenda’ issues with other arms of government, have been called upon to upgrade their capabilities to deal effec­ tively with, and to co-ordinate national action on, the vastly more complex scope of present-day inter-governmental relations. Matters in such varied areas

as civil aviation, immigration, refugees, humanitarian assistance, the environ­ ment, the regulation of nuclear trade, new legal regimes for the oceans, outer space, Antarctica and so on are now well entrenched on the diplomatic agenda, of major significance for Australia and accordingly of close concern to the Department of Foreign Affairs.

The Department also has had to cope with the heavy growth in Australians travelling overseas. This has meant a considerably increased workload both for Australian posts abroad providing consular services and for our passport issu­ ing offices in Australia. This year they assumed the added responsibilities of

giving effect to the Government’s decision to introduce formal travel documen­ tation for trans-Tasman travel. The expansion in overall Departmental activities over 1981 was ac­ complished notwithstanding the continued restraints on staffing numbers and

expenditures in accordance with the Government’s requirements. The Depart­ ment was required to exercise greater efficiency and economies in meeting its responsibilities for consolidating existing relationships with other countries, en­ tering upon new areas of activity, shouldering an increased load in the area of

multilateral diplomacy, sustaining an increased development assistance pro­ gram and servicing Australians travelling abroad.

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International security

East-West security issues

A high level of tension in the international security situation was sustained throughout 1981. Relations between East and West remained under strain be­ cause of the military involvement of the Soviet Union in Afghanistan and by the threat, then the occurrence, of Soviet interference in the process of internal

liberalisation in Poland. Western countries, including Australia, maintained sanctions of varying intensity against the Soviet Union. The new United States Administration made clear its determination to oppose unacceptable mani­ festations of Soviet policy wherever they might appear. In this context, it ex­ tended military assistance to the Government of El Salvador, under attack from

externally-supported left-wing guerillas, and sought the support of other Latin American governments. Efforts were also made by the United States to give renewed impetus to the NATO alliance, both in political and military terms, and to other alliance relationships; to forge a new strategic consensus in the Middle

East favourable to the West; and to draw attention to the challenges posed by Soviet military power to the sub-continent, Indo-China and the North Pacific area. It was the impact of Afghanistan, in particular, which reinforced feeling in the

United States that something had to be done to restore the country's strength as a world power and which contributed to Ronald Reagan's victory in the 1980 presidential election. The Administration quickly decided to increase both American nuclear and conventional forces in the face of a continuing military

build-up by the Soviet Union, to put aside the signed but unratified SALT II agreement placing restraints on the strategic (inter-continental) nuclear weapons systems of the United States and the USSR, to suspend other arms control negotiations, and to encourage its NATO allies and Japan to shoulder a greater share of the burden of Western defence.

United States security concerns were particularly evident in Europe where the USSR had achieved a preponderance in theatre or intermediate range nu­ clear forces (INF), notably the SS20 missile. The United States adhered to the NATO ‘dual-track’ decision of 1979 which called for preparations for the de­ ployment of new American nuclear missiles in Europe by 1983 while seeking negotiations with the Soviet Union for restraints on INF in Europe. A number of Western European governments emphasised the importance they attached to arms control negotiations. Soviet propaganda attempted to exploit perceived differences between the United States and its European allies over the circum­

8

stances in which nuclear weapons might be used and to suggest that the NATO plan would increase the risk of a limited conflict which would make Europe a nuclear battleground without involving the superpowers’ strategic (inter-continental) systems. Soviet propaganda helped leave a mark on some elements of European opinion, but allied governments stuck to the ‘two-track’ decision. Eventually, the USSR dropped its pre-condition that NATO should cancel its decision to deploy new INF before negotiations could begin. When the United States Secretary of State, Mr Haig, and Soviet Foreign Minister, Mr

Gromyko, met for the first time in New York in September, they agreed on the beginning of negotiations on INF. These negotiations began in late November following a proposal by President Reagan on 18 November offering the USSR a 'zero option’ of no theatre nuclear weapons on either side of the European

divide. The imposition of martial law in Poland on 13 December with Soviet in­ volvement lent further uncertainty to East-West relations, but did not cause a suspension of the INF negotiations.

Australia kept in very close touch with the United States Administration and with other Western governments on the international strategic situation throughout the year. Day-to-day contacts were reinforced by overseas visits undertaken by the Prime Minister and the Foreign Minister. Strong support was

extended to the revitalised American leadership of the Western alliance and to Western unity and defence preparedness. The opening of negotiations on INF in Europe was welcomed as an important part of overall efforts to preserve in­ ternational stability and to reduce the threat of nuclear conflict. Australia ac­ knowledged the clear link established between NATO’s theatre and strategic systems and between the INF negotiations and resumed discussions in the

strategic arms limitation talks (SALT)—now renamed the strategic arms reduc­ tion talks (START)—which have been foreshadowed. In its concern with East-West relations, the United States has given con­ siderable attention to the Middle East throughout 1981. It sought to maintain momentum in the peace process emanating from the Camp David accords by pursuing the creation of the multinational peace-keeping force to monitor Israeli withdrawal from the Sinai. It pressed ahead with its plans for a Rapid Deploy­ ment Force in the Middle East and worked to increase its co-operation in the strategic sphere with Israel and with moderate Arab governments. It agreed to sell an air-borne warning and control system (AWACS) to Saudi Arabia. The general uncertainties besetting the region, however, cloud the prospects for containing Soviet inroads. One encouraging development during the year was the creation of a Council for Co-operation of the Arab States in the Gulf, which

has in part been offset by a mutual defence pact among Ethiopia, Libya and South Yemen—all aligned with the USSR.

North Asia is another vital region in East-West terms because the interests of four great powers—the United States, the Soviet Union, China and Japan—and the two sides of a divided Korea are engaged there. While the area has re­ mained relatively stable since the end of the Korean war nearly thirty years

ago, Soviet military capabilities in its eastern regions have now been substan­ tially upgraded. China’s strategic orientation has shifted fundamentally to in­ clude closer relations with the United States and Japan. China is slowly improv­ ing the quality of its armed forces and has a limited but significant nuclear de­

terrent capability. The United States is now prepared to consider arms sales to China. With Japan, the United States Administration considers an increase in

9

its defence capability as an important element in a regional response to the global problem of countering expanded Soviet influence. Inter alia, the United States has sought qualitative improvements in Japan’s defence equipment, an increased Japanese share in the cost of maintaining American forces in Japan and a Japanese role in maritime surveillance in the North Pacific. Japan, in re­ sponse, while indicating that it shares American concern about the Soviet threat to world peace, has made clear that there are political and financial constraints on Japan in increasing its defence role. Australia has recognised that these differences over defence co-operation are matters to be solved be­ tween the United States and Japan as partners in a bilateral treaty.

In South Asia the USSR has persisted with its attempts to impose a military solution on Afghanistan and its freedom fighters, thereby causing widespread death, destruction and dislocation and the flight of three million refugees to Pakistan and Iran. The pressures on Pakistan, both from the Soviet military presence in Afghanistan and from the refugees, have been particularly severe. Western countries have generally endorsed the United States decision to sup­ ply substantial military equipment to Pakistan to compensate for its more ex­ posed strategic situation. Difficulties were, however, renewed between India Pakistan and Australia and others regarded with apprehension the possibility of a competitive arms race and of nuclear proliferation in a volatile environment. In contacts with both countries, we expressed the need for reciprocal restraint and understanding. By year's end, there was evidence that the two countries were working to contain their differences. It was also encouraging to see the evolution of the South Asian Forum— bringing together India, Pakistan,

Bangladesh, Sri Lanka, Nepal, Bhutan and the Maldives—as a contribution to promoting practical co-operation in the region. On a less satisfactory note, ef­ forts within the United Nations to lay the groundwork for implementation of the declaration of the Indian Ocean as a zone of peace and for an international conference on the Indian Ocean were again unsuccessful because of wide­ spread disagreement and the difficult climate imposed by the Afghan situation.

Despite strong efforts by the ASEAN countries, the United States, China, Australia and others to work for a political settlement of the Kampuchean issue during 1981, there was no progress at year’s end. The USSR was able to strengthen its presence in Indo-China. The prospects of increased great power rivalry were evident with adverse implications for regional countries.

In other areas, there were strong reflections of East-West concerns. Events in El Salvador were regarded by the United States as having their source in the action of Soviet proxies; the Administration made clear that no option had been ruled out to deal with the situation which was further inflamed at year’s end.

In southern Africa, the absence of a negotiated settlement on independence for Namibia and the extension of the internal conflict into neighbouring Angola, with its Cuban military presence and German Democratic Republic advisers, exacerbated the widespread regional tensions created by South African apar­ theid policies and increased apprehensions among Western countries about the spread of communist influence. At the end of 1981, there were, however, some indications of progress in negotiations between the United States, along with the other members of the five-member Western ‘contact group’ on Namibia, and South Africa and the ’front-line' African states on the conditions for Namibian independence, which it was also hoped would lead to the re­ moval of the communist presence from Angola.

10

Australia’s security involvements

The essentiality of the ANZUS Treaty to Australia’s defence need not be re­ stated. But its importance extends beyond providing the ultimate guarantee of our security. The Treaty represents the formal basis on which Australia partici­ pates in the councils of the Western-aligned group of states on matters of

global strategic concern: it therefore opens the way both for Australian access to the views and attitudes of powers with similar objectives to our own and for us to put our own opinions and to participate in unified or co-ordinated action as appropriate.

The annual meetings of the ANZUS Council are only one occasion on which

Landing craft HMAS Betano unloading equipment during the ‘Kangaroo 81' exercise at Shoalwater Bay, Queensland. Department of Defence photo.

11

contacts at a senior level take place with the United States. The ANZUS Coun­ cil supplements other consultations at the Head of Government or Foreign Minister level throughout the year. In 1981, the Prime Minister visited the United States in July for talks with the President and his Administration. The Minister for Foreign Affairs had discussions with his American counterpart, Secretary of State Haig, on four occasions in addition to those at the ANZUS Council—in

March and July in Washington, in June in Manila and in September at the United Nations General Assembly in New York. Likewise, the ANZUS Council provides only one forum for consultations with New Zealand which also take place on a bilateral basis, through the South Pacific Forum and the Common­ wealth connection and by the participation of individual New Zealand Ministers

in joint meetings with their Australian (both Federal and State) counterparts. The 30th meeting of the ANZUS Council was held in Wellington on 22 and 23 June 1981. New Zealand was represented by the then Foreign Minister, Mr Talboys, and the Defence Minister, Mr Thompson; the United States by the Secretary of State, Mr Haig; and Australia by the Minister for Foreign Affairs, Mr Street. The Council reaffirmed its earlier assessment that the Soviet invasion of Afghanistan was a direct violation of the principles governing international re­ lations and was totally unacceptable to the international community. It called for the withdrawal of Soviet forces and for an early political settlement in Af­ ghanistan. The Council also noted the close consultation between ANZUS partners on defence policy initiatives to help meet the Soviet challenge and the strong need for safeguarding Western security interests in the Pacific and In­ dian Oceans. The United States noted the benefit to its own and allied interests of surveillance of the Indian Ocean by B-52 aircraft. Australia and New Zea­ land reaffirmed their commitments to improving their defence co-operation ac­ tivities in South-East Asia and the South West Pacific. The Council agreed to

hold its next meeting in Canberra in 1982. Following agreement in 1980 among members of the Five Power Defence Ar­ rangements (Malaysia, Singapore, United Kingdom, Australia and New Zea­ land) that there would be considerable value in the conduct of a greater range of multinational defence exercises under the Arrangements, four major exer­ cises were held during 1981. They were a land exercise at company level in Australia at Shoalwater Bay, a major maritime exercise in the South China Sea and two major air exercises under the auspices of the Integrated Air Defence System (IADS). Multinational exercises at a comparable level will continue in

1982. The RAAF retains two squadrons of Mirage aircraft and supporting units at Butterworth, Malaysia, under the Five Power Arrangements. The Australian Government’s present plans are to retain both Mirage squadrons at Butterworth until 1983, when one will be redeployed to Australia, and to consider around

1984 or 1985 the future of the remaining squadron. The deployment to But­ terworth of a small operating detachment of RAAF Orion P3 long-range maritime patrol aircraft was carried out in February 1981. The participation by Australian military personnel in the Multinational Force and Observers (MFO) to monitor the Israeli evacuation of the Sinai peninsula represents a new security commitment by Australia.

12

Nuclear issues and arms control

Australia continued to play an active and forthcoming role in the international consideration of arms control issues and the peaceful uses of nuclear energy during 1981. The acknowledgement internationally of the contribution which Australia is able to make as a potential exporter of low cost uranium for peace­ ful purposes solely related to the generation of energy again facilitated Austra­

lia’s contribution to these activities.

Nuclear issues

Nuclear safeguards agreements

The exercise by the Department of Foreign Affairs of its policy responsibilities in nuclear non-proliferation and safeguards matters contributed to important achievements in the further successful negotiation of nuclear safeguards agreements with other countries. The agreements incorporate the stringent safeguards conditions which are pre-conditional to Australia entering into ar­

rangements for nuclear co-operation and trade. These direct arrangements with other nations are rightly regarded as part of the wider effort to strengthen international controls over the utilisation of nuclear energy for peaceful pur­ poses, as contributing to prevention of the spread of nuclear weapons and nu­

clear explosive devices and as enhancing the regime established by the Nu­ clear Non-Proliferation Treaty (NPT). A busy schedule of negotiations on nuclear safeguards agreements pursuant to the Government’s safeguards policy was maintained throughout 1981. Agreements were signed with France, Canada, Sweden and the European Atomic Energy Community (EURATOM) (representing the 10 member-states of the European Communities) and brought to 16 the number of countries now

covered by our network of nuclear safeguards agreements. (Australia has pre­ viously concluded safeguards agreements with Finland, the Philippines, the Republic of Korea, United States and the United Kingdom.) The successful negotiation of these agreements demonstrated the broad measure of inter­

national acceptance accorded to Australia’s stringent nuclear safeguards pol­ icy. Negotiations and informal consultations on a nuclear safeguards agreement with Japan were held throughout 1981. Negotiations had entered their final

phase by the end of the year and were subsequently brought to a successful conclusion early in 1982. Under the terms of our nuclear safeguards policy,

13

H

deliveries of Australian uranium deriving from new (post-1972) contracts with Japan will not begin until the agreement has entered into force. In the first formal round of negotiations on a nuclear safeguards agreement with Switzerland, held in Canberra in December, agreement was reached ad referendum on a draft text. The conclusion of an agreement with Switzerland will complete the network of formal safeguards arrangements for Australian

uranium with all significant potential customer countries in Europe.

Nuclear policy developments in Australia

In addition to negotiations on nuclear safeguards agreements, the Department of Foreign Affairs carried out a range of functions which contribute to the de­ velopment and implementation of Australian policy governing the use of nu­ clear energy for peaceful purposes.

These Foreign Affairs responsibilities include the provision of advice, along with that from other departments and agencies concerned, on the development of policy governing nuclear co-operation with other countries. In 1981 the De­ partment continued to monitor the nuclear policies of other countries and to make assessments of possible proliferation risks. Moreover, its responsi­ bilities for foreign relations and treaties and for non-proliferation and nuclear safeguards led to its close involvement in the Government's review of the Atomic Energy Act and related matters. The Department also contributed further policy advice on the non-proliferation, safeguards and foreign relations issues raised by the current study being undertaken by the Uranium Enrich­ ment Group of Australia—a consortium of leading mining companies—of the feasibility of establishing a uranium enrichment industry in Australia. Another area of activity included the formulation of a policy position on the means by which the Government's non-proliferation policies might be applied in the regu­ lation of exports from Australia of items related to the development and use of nuclear energy and in the transfer overseas on a commercial basis of Austra­ lian technology and expertise.

International consideration of peaceful nuclear issues

International consideration of the range of issues raised by the development of nuclear energy for peaceful purposes was conducted in a number of forums, both regular and ad hoc, but most took place under the auspices of the Inter­ national Atomic Energy Agency (IAEA) in Vienna. The Department of Foreign Affairs is responsible for the co-ordination of Australia's policy towards and its role in the work of both the IAEA and the Nuclear Energy Agency (NEA) of the Organisation for Economic Co-operation and Development (OECD) in Paris.

Major activities of the IAEA in which Australia took part during 1981 included the further examination of possible international schemes for the storage of plutonium and for the management of spent fuel from nuclear plants. Following its establishment by the IAEA Board of Governors in June 1980, the Committee on Assurance of Supply commenced substantive consideration of ways and means by which supplies of nuclear material, equipment and technology and fuel cycle services might be assured to consumers on a more predictable and

long-term basis, in accordance with mutually acceptable considerations of non-proliferation applied and accepted by both producer and consumer coun­ tries. In broad terms, these various studies are aimed at developing practical

14

measures for international co-operation in the development of peaceful uses of nuclear energy in ways which would respect and strengthen non-proliferation arrangements. In its approach to all such activities the Government is guided by its concern that Australia should continue to be a constructive participant in

international nuclear commerce, but only on the basis of conditions which re­ spect its non-proliferation concerns and specifically the provisions of the nu­ clear safeguards policy announced by the Prime Minister on 24 May 1977. In a period when there was greater public scrutiny of the IAEA’s role in ad­

ministering international safeguards arrangements, the Government supported efforts to strengthen and enhance that role. Australia contributed, through a continuing program of practical assistance estimated at $541 000 over three years, to the improvement of the IAEA's technical capacity to meet new

safeguarding requirements. Australian support for the IAEA’s program of voluntary technical co-operation with developing member countries also was sustained throughout 1981. We discharged in full our assessed voluntary financial contribution to the Agency's

General Fund for Technical Assistance and in addition allocated US$114 000 for projects under the Agency’s special Asian Regional Co-operative Agree­ ment. Australia's practical support for nuclear technical assistance reflects a continuing recognition of the high priority which the Agency attaches to ac­

cess, particularly by developing countries, to the benefits of nuclear technol­ ogy for peaceful purposes.

Nuclear issues in the Pacific

During the year, Australia reiterated to the French Government its firm oppo­ sition to the continuation of nuclear testing by France at Mururoa Atoll in the South Pacific. The concerns of South Pacific countries about nuclear issues af-

Australia's Ambassador to the European Communities, Mr R. R. Fernandez, (right) with the Vice-President of the Commission of the European Communities and Commissioner for External Relations, Mr Wilhelm Haferkamp, at the signing on 21 September of the AustraliaiEURATOM nuclear safeguards agreement. Photo from the Commission of the European Communities.

15

1

fecting the region also were again reflected at the South Pacific Forum (SPF) in August. The SPF reaffirmed its strong opposition to the continued conduct of nuclear weapons testing by France in the South Pacific and to proposals for dumping and storage of nuclear waste and spent nuclear fuel in the Pacific. The Commonwealth Pleads of Government endorsed these concerns in the communique issued at the end of their meeting in Melbourne in October.

Arms control and disarmament

The Department of Foreign Affairs maintained its activities directed towards furthering the Government’s foreign policy and security objectives of realising the achievement internationally of balanced and verifiable agreements on arms control and disarmament. The Government reiterated its concern about the arms race in both the nuclear and conventional spheres and affirmed that Aus­ tralia’s security continued to rely in important respects upon the control of the

arms race, measures to prevent the proliferation of nuclear weapons and the development of specific arms control agreements. The Government’s approach to arms control and disarmament rests upon the firm belief that the develop­ ment of effective measures would contribute substantially to international stabil­

ity. Notwithstanding the firm commitment of Australia and others to such policies and considerable activity in the relevant international forums, 1981 saw little progress in arms control and disarmament negotiations. The principal reason for this situation was an increase in tensions internationally which affected mutual trust and confidence among states. A major factor contributing to the unfavourable climate for negotiations involving the superpowers was Soviet policies in regard to the development, production and deployment of new weapons systems and its continuing intervention in Afghanistan.

The generally unfavourable climate for disarmament was reflected in the work of the 40-nation Committee on Disarmament (CD) in Geneva, where there was a number of sharp exchanges between the USSR and the United States. Nonetheless, the Australian delegation to the Committee was able to take an active'part in the Committee’s consideration of its agenda items. In a statement issued to mark the tabling in Parliament on 29 October 1981 of the report of the Australian delegation to the Committee’s 1981 session, the Foreign Minister

reaffirmed the Australian Government’s commitment to the goal of disarmament and the negotiation of balanced and verifiable measures of arms control. The Minister noted that Australia was making energetic efforts in the CD to achieve progress in areas of high priority on the international disarmament agenda. These included action to prevent the spread of nuclear weapons, particularly through continued support for the Nuclear Non-Proliferation Treaty, the con­ clusion of a comprehensive nuclear test ban treaty (CTB) and the development of an international convention which would outlaw chemical weapons. The Aus­ tralian delegation assessed that the significant positive elements of the CD’s

1981 session were the extensive detailed work carried out towards the goal of a convention banning chemical weapons and the continuing valuable technical work on exchanges of seismic data, such as would be needed in support of arrangements to monitor compliance with a comprehensive nuclear test ban treaty. Unfortunately, the Committee was unable to make progress in the

negotiation of a test ban treaty itself, which is accepted in the first instance as

16

a matter for the nuclear weapon powers but in which the international com­ munity as a whole has an essential interest.

The inauspicious climate for arms control and disarmament also affected the work of the other major disarmament forum in which Australia took part in 1981, namely, the First Committee of the United Nations General Assembly. The General Assembly's 36th session in 1981 mainly reaffirmed previous dis­

armament resolutions and objectives. The growing impatience of non-aligned countries at the slow rate of progress in disarmament negotiations was evident in the First Committee and was reflected in an increased tendency for the adoption of resolutions by weight of numbers rather than by consensus—a

goal which Australia has always worked hard to promote on matters such as a test ban, nuclear non-proliferation and strategic arms control.

Australia maintained in 1981 its long-standing policy of taking a leading role in the General Assembly in the preparation of a resolution calling for the con­ clusion of a comprehensive nuclear test ban treaty. The draft resolution which Australia co-sponsored in 1981 was supported by nearly all delegations. The final vote on the resolution was 140 in favour, none against and five absten­ tions.

The General Assembly traditionally has adopted resolutions calling for the establishment of nuclear-weapon-free zones (in addition to that close to fruition in Latin America) in Africa, the Middle East and South Asia. Australia supports these resolutions where possible but in 1981 was again unable to vote in favour of the resolution concerning a nuclear-weapon-free zone in South Asia.

While we have supported the objective of a South Asia nuclear-weapon-free zone, we have always taken the stand that such zones must have the support of all regional powers concerned and cannot be imposed from outside. India continues to oppose the Pakistani proposal for a nuclear-weapon-free zone in

South Asia. In 1981 Australia and most Western countries were able to support a resolu­ tion sponsored by Pakistan dealing with assurances by nuclear-weapon states that they will not attack or threaten non-nuclear-weapon states. This subject

(negative security guarantees) is on the agenda of the Committee on Disar­ mament in Geneva. Australia again co-sponsored a Canadian resolution on the prohibition of the production of fissionable material for nuclear weapons pur­ poses, reflecting the significance attached to international agreement on such

a measure as a means of scaling down the arms race and consolidating the nuclear non-proliferation regime. Two new resolutions dealing with the preven­ tion of a possible arms race in outer space were approved and the issue re­ ferred to the Committee on Disarmament.

Australia also co-sponsored in the General Assembly a resolution extending the mandate of the impartial investigating team of medical and technical ex­ perts enquiring into reports of the use of chemical weapons in international conflicts. This initiative was launched in 1980 in the face of persistent reports that chemical weapons had been used in conflicts in Indo-China and Afghanis­

tan. In 1982 the major event on the arms control and disarmament calendar will be the second Special Session of the United Nations General Assembly on Disarmament (the first Special Session took place in 1978) to be held in New York in June and July. Australia is a member of the preparatory committee which has been preparing for the Special Session.

17

Economic developments

In a situation of slackening global economic growth and increased tensions generated by problems of trade access and continuing disparities in national incomes, the economic aspects of international relations assumed much greater significance in 1981. A resumption of the so-called ‘North-South’ dialogue between developed and developing countries was seen as a pre­ requisite not only for progress in international development efforts but for the enhancement of international security and stability. Differences among the Western developed countries on fiscal and monetary policies were accen­ tuated and the Soviet bloc saw increasing economic strains, particularly with the continuing deterioration in the Polish economy.

The year saw little easing in economic difficulties facing most developed and developing countries. After four years of growth at about 4 per cent per an­ num, real Gross National Product (GNP) in industrial countries in 1980 rose by only 1.25 per cent. It is estimated that the average rate of expansion for this group from 1980 to 1981 was of a similar order. The pattern of development, however, varied markedly among different countries. The primary preoccu­ pation of most developed countries was with the control of inflation by means of fiscal and monetary restraints and the stimulus of soundly-based growth. At the same time, there was increasing concern over the growth in unemploy­ ment, which in OECD countries reached an estimated total of 25 million out of work—a level unprecedented since the 1930s. The year also was marked by considerable instability in foreign exchange markets and by substantial rises in

interest rates, particularly in the United States, which further discouraged eco­ nomic activity and substantially increased the debt burdens of developing countries. The performance of developing countries also diverged widely. Some— notably the newly industrialised countries and the Organisation of Petroleum Exporting Countries (OPEC)—were able to maintain rates of growth well in ex­ cess of those of the developed countries. Many other developing countries, in

particular least-developed countries and those from the sub-Saharan area, faced critical economic problems and in some cases negative growth rates.

International trade issues International trade trends reflected the difficult economic conditions existing in most developed countries. One of the most disturbing developments was in­ creasing protectionist pressures, which reflected narrow and short-term na-18

tional interests and further threatened the maintenance of an open global trad­ ing and monetary system. The huge trade surpluses accumulated by Japan in its trade with the United States and the European Communities led to pressure upon Japan to limit its exports to those areas and helped stimulate a proposal for informal trade consultations among Japan, the United States, Canada and the European Communities. Efforts to resolve trade difficulties in key sectors

such as steel, automobiles and agriculture will be followed closely by countries like Australia whose own trading interests are substantially involved, as well as by the world community generally. Trade issues were again an important part of Australia’s relations with both

the advanced industrial countries and Third World countries and led to a number of official representations. The United States Farm Bill provisions, the extra-territorial application of United States anti-trust legislation and export subsidies were important issues in our relations with the United States. With Japan, market access for our beef, sugar and citrus fruit remained a problem. Our agricultural exports to the EC continued to be hindered by the Common Agricultural Policy and concern was registered appropriately. A case against the EC over its subsidised sugar exports was pursued in the General Agree­

ment on Tariffs and Trade (GATT) in conjunction with other sugar producing countries.

International monetary issues The world-wide economic recession, and consequent decline in the price of many primary commodities and the associated downturn in international trade,

was especially detrimental to the economies of oil-importing developing coun­ tries which still faced the financing of very substantial balance of payment deficits. There was accordingly a considerable increase in the external indebt­ edness of the developing countries (estimated by projection at around US$524

billion at the end of 1981)*. The resulting debt service obligations severely lim­ ited the ability of most non-oil developing countries to pursue their economic development programs. Bankers have become more cautious about lending because of the deterioration in the external payments position and prospects of many countries, exacerbated in some instances by political uncertainties as well. It Is not surprising therefore that greater international attention was di­

rected, especially by developing countries, to making the international financial institutions, notably the International Monetary Fund (IMF) and the World Bank Group (International Bank for Reconstruction and Development—IBRD) more responsive to the needs of developing countries. The Department of Foreign Affairs accordingly had to give more attention to these bodies than hitherto.

During 1981 the IMF underwent several changes which further increased representation and availability of resources for developing countries. Saudi Arabia—now the Fund’s largest creditor—received a special increase in its quota The Fund began work on the eighth general review of quotas. Finally, towards the end of 1981, it agreed to make a loan of US$5.7 billion to India

over a three-year period, the largest balance of payments support ever pro­ vided to a single member.

* Source: OECD: External Debt of Developing Countries. October 1981.

19

6

Energy During 1981 the demand for oil throughout the world continued to fall as a re­ sult of depressed economic conditions, together with conservation and sub­ stitution measures introduced after the oil price rises of the last decade. Along with Saudi Arabia's maintenance of oil production above the level dictated by market conditions, the decline in oil demand led to a significant downward

pressure on prices and increased resistance by importers to the higher prices charged by some members of the Organisation of Petroleum Exporting Coun­ tries (OPEC). The easing of oil market conditions dampened some of the politi­ cal pressures associated with oil purchasing in 1979-80 (for example, linkage of oil sales with concessions in the trade, aid, investment or political spheres) and weakened the positions of those OPEC members who have long charged

higher prices. Continued political tension in the Middle East, however, pointed to the fragility of the oil market and the avoidance by oil-importing countries of complacency in their efforts to reduce dependence on imported oil through the development of alternative energy sources.

Saudi Arabia's crucial decision to limit the extent to which it absorbed reduc­ tions in the demand for oil through contraction in its own production levels en­ abled it to compel other OPEC members to agree to price re-unification and to a freeze on the price of OPEC marker crude for 1982. Saudi actions reflected differences within OPEC over political, economic and social goals. Saudi Arabia was concerned to prevent a too rapid switch to alternative energy sources, to provide a respite from oil price rises and to maintain Western, par­ ticularly United States, political and strategic issues and questions of secure energy supplies and economic stability.

Another example of politico-economic linkage was seen in the agreements reached during 1981 between Western European industrial and financial insti­ tutions and the Soviet authorities on the construction of a pipeline to carry Soviet gas to a number of Western European countries. Western European interest in procuring Soviet gas was aimed substantially at reducing depend­ ence on energy supplies from the Middle East. (In economic summit meetings and in the OECD’s International Energy Agency, Western governments had agreed on the importance of reducing oil imports, mostly from the Middle East.) The significance of the gas pipeline project in terms of East-West re­ lations led the United States Government to urge its Western allies to recon­ sider their commitment. United States concerns were heightened following the declaration of martial law in Poland in December.

The somewhat more optimistic outlook for oil supplies and a more realistic appreciation of the constraints to rSpid development of alternative sources led to more cautious assessments during 1981 of the rate at which it might be possible for countries to move towards a more balanced energy mix. Nonethe­ less interest in Australia's potential to become a major energy exporter—not only of coal, but also of uranium, liquified natural gas (LNG) and perhaps even­ tually synthetic fuels—remained high. Coal exports increased substantially. There was a marked growth of interest by foreign governments and industries in Australia as a source of supply and a recipient of investment in energy de­ velopment, thereby highlighting the significance of energy supplies for our fu­ ture overall relations with Japan, Western European and ASEAN countries.

Energy issues continued to attract the attention of several international organ­ isations during 1981, in particular because of the impact of oil prices on eco-20

nomic prospects of developing countries and because of more general con­ cern internationally over the availability of adequate energy supplies. The United Nations, the OECD/IEA, the summit meeting of the seven major Western developed countries and Japan in Ottawa, the Commonwealth Heads of Gov­

ernment Meeting in Melbourne, and the summit of 21 developed and develop­ ing countries at Cancun, Mexico, all looked at energy issues. The UN Confer­ ence on New and Renewable Sources of Energy, at Nairobi in August 1981, was the first attempt by the world community to address aspects of the energy

issue in a major international conference and focussed political attention on the potential role of such energy sources in the future supply situation. Regional bodies such as the Economic and Social Commission for Asia and the Pacific (ESCAP), the South Pacific Forum and ASEAN also placed greater emphasis on promoting measures to encourage regional responses to energy problems.

Food supply

The question of food supply also was prominent in international economic re­ lations during the period under review. Foodgrain production in 1980-81 was insufficient for world requirements and there was a heavy drawing from stocks and a substantial increase in trade in foodgrains, especially wheat. The major wheat importing countries—the Soviet Union, Eastern European countries,

Brazil and Spain—had particularly poor harvests. Third World countries’ pro­ duction was marginally higher, but there is concern that production will be in­ sufficient to meet requirements in 1981-82. Debate on the need to improve measures for world food security has inten­

sified, reflecting in particular the deep concern of Third World countries, The seventh Ministerial session of the World Food Council held in Novi Sad (Yugos­ lavia) in May and the 21st conference of the Food and Agriculture Organisation (FAO) in Rome in November both saw such concern expressed.

These meetings and others provided opportunities for Australia to maintain the high profile which it has taken on food and food security issues. Australia adheres to the five-point plan of action adopted by the FAO and its level of food aid in 1981-82 is expected to be about 445 000 tonnes. It continues to be

a major commercial supplier of foodgrains to countries such as Egypt and China. In addition, a considerable proportion of Australian development aid is directed towards assisting developing countries increase their food production. In 1981, Australia took a major initiative in deciding to establish the Australian Centre for International Agricultural Research.

North-South issues Relations between the Western developed countries and the developing coun­ tries of the Third World and the question of measures to mitigate the economic development problems of the latter—‘North-South’ issues—drew considerable

international attention during 1981 and was a principal subject for discussion at the three Heads of Government meetings. Australia, which attached great importance to progress in the discussion of North-South issues, took an active and forthcoming part in international activity

on this matter. North-South issues assumed an important place on the agenda of the Prime Minister’s discussions in the United States, Canada, Mexico,

21

United Kingdom and India and during two visits by the Foreign Minister to New York and one to Brussels for discussions with the European Commission. Aus­ tralia's commitment to advancing the North-South process arises from a number of considerations;

• our view that it is in the long-term politico-strategic and economic interests of developed countries collectively to work to strengthen the economies of developing countries and thereby to improve their capacity to participate fully in the open-market international trading system; • the necessity, as we see it, to assist countries of our region which are

mainly from the developing group; and • the humanitarian concerns which we share with others to alleviate the dis­ tress and poverty existing in many developing countries.

North-South questions were a major item on the agenda of the Ottawa sum­ mit among the leaders of the seven major Western industrialised countries and Japan in June and at the meeting of 41 Commonwealth Heads of Government and their delegates (CHOGM) hosted by Australia in Melbourne in September-October. CHOGM adopted the Melbourne Declaration which repre­ sented an important commitment by Commonwealth leaders to work to resolve problems of economic development faced by developing countries. The decla­ ration was given wide circulation, including at the United Nations. CHOGM also endorsed a comprehensive set of objectives for achievement by the inter­ national community of goals in food security, energy, trade and international financial and monetary affairs.

In mid-October, the Heads of Government of 21 countries, both developed and developing (Australia did not take part), met over two days at Cancun in Mexico specifically to discuss a resumption of the North-South dialogue. This meeting had its genesis in a report by the Independent Commission on Inter­ national Development issues which was headed by Mr Willy Brandt, the former Chancellor of the Federal Republic of Germany. It set the scene and helped facilitate subsequent discussions on North-South issues in the UN General As­ sembly. In particular, it helped narrow differences between the United States and developing countries and between the United States and its Western al­ lies.

A major proposal which was given support during these summits was that a round of Global Negotiations on international development issues should be held. The principal subjects to be addressed would be energy, trade, raw ma­ terials, development and monetary and financial affairs. This proposal originally

had been endorsed by the UN General Assembly at the end of 1979. Although lengthy negotiations took place in the United Nations throughout 1980, agree­ ment on an agenda and procedures for Global Negotiations had not been forthcoming. Discussions about an agreed basis for Global Negotiations re­ sumed at the 36th session of the General Assembly towards the end of 1981. Although progress was made, final agreement could not be reached and in­ formal consultations in New York resumed early in 1982. Australia has played a very active part in these consultations and is a member of a small contact group in which the information follow-up consultations on Global Negotiations are being conducted in New York.

In support of its objective to advance international consideration of North- South questions, Australia took several steps during the year. In October, it

22

signed and ratified the Common Fund Agreement—one of the first countries to do so—and confirmed a voluntary contribution to the Fund's Second Account of approximately $5.5 million. This action will, it is hoped, be an incentive to other countries to expedite the ratification process so that the Fund can begin

operations as soon as possible. The level of Australian aid for the 1981-82 financial year also was increased substantially. Our ratification in November of the constitution for the United Nations Industrial Development Organisation (UNIDO) helped to bring to 60 the number of countries which had accepted it

by the end of 1981. The agreement of 80 states is necessary for implemen­ tation so that UNIDO can become a specialised agency of the United Nations system with independent financial and administrative arrangements. Along with other nations of the 'North', Australia took a close interest in the

conference of developing countries which was held in Caracas in May to examine ways in which developing countries could co-operate in economic matters to their mutual benefit—so called 'South-South’ co-operation. Australia supports the principle of Economic Co-operation among Developing Countries

(ECDC) as a means of accelerating development, but would be concerned if the application of the principle through the United Nations Conference on Trade and Development (UNCTAD) and other bodies were pursued without re­

gard for the trading interests of other (developed) countries. In the same way, we would be concerned if there were a proliferation of exclusive meetings among developing countries and we have been diligent in exploring the scope for compromise to ensure there is no stand-off along North-South lines.

A United Nations Conference on Least Developed Countries (LLDCs) took place in Paris under UNCTAD auspices from 1 to 14 September. This meeting was the culmination of preparations over some years, including several ses­ sions of a preparatory commission and meetings between LLDCs and donor

countries. Australia participated in the preparatory meetings as well as the con­ ference itself and shared the general satisfaction at its successful outcome. The conference agreed on a ‘substantial new program of action’ which is to serve as a blueprint for the development of LLDCs during the 1980s. The pro­

gram deals with both international support for least developed countries and their own responsibilities in making economic progress.

Organisation for Economic Co-operation and Development

The Department of Foreign Affairs is responsible for the co-ordination of Austra­ lia's participation in the work of the Organisation for Economic Co-operation and Development (OECD) in Paris, which brings together the developed coun­ tries of North America, Western Europe, Japan and Australasia. The annual

OECD Ministerial Council meeting on 16 and 17 June was attended by the Foreign Minister and the Minister for National Development and Energy, Senator Garrick. The meeting concentrated on the economic prospects and policies of member countries, current trade problems, the energy situation, and

relations with developing countries. Ministers directed the Organisation to de­ velop a program of study on trade issues in the 1980s. In considering the en­ ergy situation, the Council received a report from Senator Carrick, who had the

day before chaired a meeting of the Governing Board of the International En­ ergy Agency (IEA). Another Ministerial visit to the OECD was that by the Minis­ ter for Science and Technology, Mr Thomson, who attended a meeting of

23

OECD headquarters, Paris. Photo by Leo Jouan, OECD Press Service.

OECD Science Ministers in March. The purpose of this was to review science and technology policies of member countries. The meeting recommended in­ tegration of these with other aspects of governmental activity, especially eco­

nomic and social policies. While public interest in Australia is directed to the OECD’s survey on national economic prospects, departments and other authorities continue to find the Organisation’s work relevant to governmental activities on a range of econom­ ic, social and technical issues. Australia maintains a Permanent Delegation to the OECD in Paris but our representation in numerous meetings of OECD specialist bodies often requires participation by experts from Australia and other Australian missions in Europe.

During 1981 the OECD conducted reviews of the Australian economy (to be published in 1982) and of the Australian development aid program. The Secretary-General, Mr van Lennep, and the retiring Chairman of the Develop­ ment Aid Committee, Mr Lewis, visited Australia.

Civil aviation Australia’s civil aviation links with overseas countries are now a significant as­ pect of its foreign relations and the Department of Foreign Affairs is closely in­ volved in the development of international civil aviation policy.

24

An important development during the first half of 1981 was the introduction of revised fare and capacity arrangements on the Kangaroo route to Europe. These changes have been welcomed by ASEAN countries and have helped remove an issue of contention in our relations with them. New civil aviation

links also were promoted in the Pacific during the year. It is hoped that these will make a contribution to the economic development of countries in this re­ gion.

Antarctic Marine Living Resources

In September Australia hosted, and the Department of Foreign Affairs provided the chairman for, an Antarctic Marine Living Resources (AMLR) preparatory meeting in Hobart. It was attended by delegations from 14 of the 15 govern­ ments which are signatories to the AMLR Convention, as well as by observers

representing the European Communities and several inter-governmental and in­ ternational organisations with substantial interests in the matter. The purpose of the meeting was to facilitate early establishment and oper­ ation of the Antarctic Marine Living Resources Commission (which is to have

its headquarters in Hobart), its scientific committee and secretariat in accord­ ance with the provisions of the AMLR Convention concluded at a diplomatic conference in Canberra in May 1980. Accordingly, the meeting dealt with legal, administrative, financial and institutional steps involved, on the basis of working

papers prepared by Australia. The work of the preparatory meeting will assist the first meeting of the AMLR Commission, scheduled for the first half of 1982 after the Convention comes into force, in taking final decisions associated with establishing the Commission in Hobart.

Pacific Community concept

The Department continued to take a close interest in activity in relation to exploring the concept of a Pacific Community which would promote economic consultation and co-operation among Pacific Basin countries. Following a non-governmental seminar on the concept held at the Australian National Uni­ versity (ANU) in Canberra in September 1980, the Department helped monitor the reaction of regional countries to the seminar’s conclusions and re­

commendations. The Australian Government supports continuing examination of the concept (at a non-governmental level) directed towards achieving a broad regional consensus. In April and May 1981 at the request of the Minister for Foreign Affairs, Sir John Crawford, who had chaired the ANU seminar, vis­

ited a number of regional countries to put this view.

25

Multilateral co-operation

Australia’s United Nations involvement Important political issues of concern to Australia debated in the United Nations during 1981 included those of Kampuchea, Afghanistan, the Middle East and southern Africa. The 36th session of the United Nations General Assembly also dealt with the usual range of international economic co-operation matters, arms control and disarmament, social and human rights, legal issues and budgetary questions.

The Foreign Minister addressed the General Assembly on 21 September. His statement reaffirmed in particular Australia's interest in opening global negotia­ tions on international economic issues between North and South. Australia continued to be an active participant in the functional and technical work of the United Nations throughout the year. It was re-elected for a further three-year term (1982-85) to the Commission on Narcotic Drugs. A judge of the Queensland Supreme Court, Sir Edward Williams, was elected to the Inter­ national Narcotics Control Board for a five-year term. Through membership of the Economic and Social Council and other United Nations and related bodies such as the Committee on Disarmament, the Scientific Committee on the Ef­ fects of Atomic Radiation, the Committee on International Trade Law and the Commmittee of the Whole (working on international economic issues), Australia was able to put forward its views in many relevant areas of international dis­ cussion. Australian concern with decolonisation questions was reflected in its continuing membership of the special Committee on Decolonisation (known as the Committee of 24) and the United Nations Council for Namibia. Our mem­

bership of these two bodies, along with the Commission on Human Rights, gives us a strong voice in consideration of colonial and racial issues and other matters affecting fundamental freedoms and basic rights.

Peace-keeping

Australia’s commitment to the Charter and the over-riding objective of the main­ tenance of international peace has been underlined by its continuing support for United Nations peace-keeping activities. We have provided support to United Nations forces in the Middle East, Cyprus, India and Pakistan. We have

indicated readiness to contribute to a force for Namibia if agreement on inde­ pendence for the territory from South African control is reached.

26

The Minister for Foreign Affairs, Mr Street (left, front, at table), with members of the Australian delegation attending the 36th session of the UN General Assembly, New York. UN photo by Saw Lwin.

Human rights

The 37th session of the United Nations Commission on Human Rights took place in Geneva in February-March 1981. It was a constructive session in which Australia vigorously pursued its interests in the Commission’s work. Use­ ful resolutions were adopted on such matters as Afghanistan, Kampuchea,

missing and disappeared persons, the philosophical issues surrounding ‘new’ rights (for example, the ’right to development’) and a range of particular coun­ try situations reported to the Commission through its formal communication procedures. Of greatest significance, the Commission, after 19 years' work,

completed a draft declaration of the elimination of religious intolerance, which was subsequently adopted by the General Assembly. The Commission con­ tinued to draft new international instruments on torture, the rights of the child and the rights of minorities.

The year saw a significant increase in international efforts to promote the rights of indigenous populations, including Australian Aborigines. The Govern­ ment gave support to the National Aboriginal Conference in its role as host to the third General Assembly of the World Council of Indigenous Peoples, which

met in Canberra in April-May 1981. Australia’s support for such action also was reflected in its work in the Commission on Human Rights and associated bodies. The Australian Government favours appropriate activity by the Common­

wealth of Nations to promote human rights. It was pleased that the Melbourne CHOGM agreed in principle to proceed with a proposal to establish a human rights unit in the Commonwealth Secretariat in London.

27

South Pacific participants during the conference of the World Council of Indigenous Peoples, held at the Australian National University, Canberra. AIS photo.

United Nations Educational, Social and Cultural Organisation

Australia hosted the fifth session of the World Heritage Committee of the United Nations Educational, Social and Cultural Organisation (UNESCO) in Sydney in October. The meeting, attended by 18 delegations, was opened by the Prime Minister and chaired by the former Australian Ambassador to UNESCO, Pro­ fessor R.O. Slatyer. Among 26 sites chosen by the Committee for inclusion on the World Heritage List (an inventory of natural and man-made places of out­ standing importance) were three Australian nominations: Kakadu National Park, the Great Barrier Reef and Willandra Lakes.

United Nations Decade for Women

During 1981 Australia continued to give strong support to implementation of constructive proposals contained in the world program of action for the second half of the United Nations Decade for Women. To this end, Australia was rep­ resented at the Seminar of Pacific Women, sponsored by the South Pacific Commission at Tahiti; and, following our initiative at the 1981 ESCAP regional meeting, the Director of the Office of Women’s Affairs began a six-month sec­ ondment to ESCAP as a special consultant to assist in establishing ESCAP’s

regional program for women. At the 36th session of the UN General Assembly Australia announced an increase in its contribution to the United Nations Volun­ tary Fund for Women from $50 000 in 1980-81 to $100 000 in 1981-82. The primary purpose of the fund is to support activities implementing the goals of the United Nations Decade for Women in developing countries.

28

International Year of Disabled Persons

The declaration of the International Year of Disabled Persons (IYDP) in 1981 proved to be a major event in Australia and contributed to international co­ operation and understanding. The Department of Foreign Affairs facilitated con­ tact between the Government and non-governmental organisations (NGOs) in Australia responsible for Australian activities in IYDP and with IYDP committees

and agencies in other countries. Close co-operation was maintained with the UN IYDP secretariat in Vienna, which co-ordinated international efforts for the year. Australia presented the secretariat with the award-winning Australian film ‘Stepping Out’ for use at international conferences and workshops during IYDP. Australia also disbursed or programmed over $1 million as part of its overseas

aid budget for 1980-81 and 1981-82, in support of projects to assist the hand­ icapped in developing countries.

The Commonwealth

The Commonwealth Heads of Government Meeting (CHOGM), held in Mel­ bourne from 30 September to 7 October, was the largest and most important meeting ever to take place in Australia. A great deal of effort was devoted to the arrangements and policy formulation for the meeting which involved signifi­

cant commitments from most parts of the Department of Foreign Affairs, as well as from other departments. Following the success of the 1979 CHOGM in Lusaka in helping to set the framework for the independence of Zimbabwe, there was a view in some quar­ ters that the Melbourne CHOGM might be somewhat anti-climactic. The Gov­

ernment, however, set as a major objective the achievement of an outcome from CHOGM which would give momentum to progress on North-South issues and provide a lead, and to facilitate the atmosphere at, the summit on North- South matters held at Cancun, Mexico, two weeks after CHOGM. This objective

was, in Australia’s view, realised. So, too, was the aim of broadening inter­ national appreciation of Australia. Another successful aspect of the outcome of the conference was a surprising unanimity of view among Commonwealth members about a number of international political questions. Potential divisions were avoided and the Commonwealth tradition of a non-confrontational ap­

proach was sustained. Much of the success of CHOGM was owed to careful and detailed prep­ arations. These included visits to all Commonwealth countries by personal emissaries of the Prime Minister several months before the meeting. The re­

ports of the emissaries assisted in the preparation of the agenda and other substantive and administrative matters. Forty-one delegations attended CHOGM; only Dominica among all Commonwealth countries was unable to

send a representative. Thirty delegations were represented by Presidents or Prime Ministers. The agenda was organised, as is customary, under three main headings:

• the world political scene (including global trends and prospects and de­ velopments in Asia and southern Africa); • the world economic situation (including an overview of the crisis and ap­ proaches to solutions); and • Commonwealth co-operation

29

The debates in executive session were thoughtful and of high quality. The atmosphere was friendly and restrained and many leaders commented on the important contribution to this made by the Prime Minister’s chairmanship, Mr Fraser was accompanied throughout most executive sessions by the Deputy Prime Minister, Mr Anthony, and the Foreign Minister, Mr Street.

There was unanimous agreement on the need for progress in the North- South dialogue, made clear in particular in the Melbourne Declaration which was issued at the weekend retreat in Canberra. The interdependence between North and South was highlighted, along with the importance of both national effort and external assistance in overcoming problems. Debate centred on four key areas where there is a pressing need for progress —food, energy, trade and commodities, and monetary and financial matters. Proposals were put for­ ward and agreement was reached on some practical measures. Expert study

groups on the impact of protection on developing country trade and on obsta­ cles and procedural impediments to the North-South negotiating process are to be conducted under Commonwealth auspices. Australia will provide nominees for both groups.

CHOGM gave particular attention to southern African issues, especially sporting contacts with South Africa and the future of Namibia. While there had been some apprehension before the meeting that the sporting contacts issue could be divisive, discussions in executive session turned out to be restrained. Good sense prevailed and a simple reaffirmtion of the Gleneagles ‘agreement’ on sporting contacts was made.

A number of paragraphs in the communique, concerning, for example, Pol­ and, Afghanistan, Kampuchea, Law of the Sea and the South Pacific, were fully consistent with Australian views. Australia was particularly anxious that oppor­ tunities should be provided for the many Commonwealth countries from the South Pacific region to take an active part and to register their particular con­ cerns. Pleads of Government noted in their communique the Australian Gov­ ernment’s offer to fund appropriate facilities in New York to enable Pacific Is­ land states not represented there to maintain some representation at the United Nations. Discussion in executive session on Commonwealth co­ operation centred on the financial situation of the Commonwealth Fund for Technical Co-operation, although matters of human rights, communication and the media, student mobility within the Commonwealth and culture also were

raised. Regional functional co-operation was again a significant element in the Gov­ ernment’s support for Commonwealth programs. The Department of Foreign Af­ fairs has an overall co-ordinating role in respect of the working groups created

by the Commonwealth Heads of Government Regional Meetings (CHOGRM) in Sydney in 1978 and in New Delhi in 1980. Australia's activities within the indi­ vidual groups (on trade, industrial co-operation, energy, illicit drugs and ter­ rorism) are conducted by the Australian functional departments concerned.

The strengthened mandate for regional co-operation activities generally, which came out of the New Delhi meeting, was evident in 1981. The 1980-81 Australian aid budget made provision for support for Commonwealth regional co-operation programs. The Commonwealth Fund for Technical Co-operation (CFTC) also appointed to the working groups technical advisers whose func­ tions are to maintain liaison between the different groups convened by different countries.

30

Refugees and immigration

Refugee issues

Heavy refugee flows have become a long-term factor in international relations. The number of refugees and displaced persons in the world increased in 1981 to perhaps ten million. Indo-China, the Horn of Africa and South Asia were the regions most affected. Elsewhere, there were significant refugee movements in

central and southern Africa and in Eastern Europe, Latin America and the Mid­ dle East. Against this troubled international background, refugee issues have become an important consideration in Australian foreign policy and in our relations with

countries affected by refugee movements or otherwise closely concerned. Our good standing in the international community on this issue derives partly from the compassionate and energetic policies which we have adopted, which also have implications for our credentials on such broader questions as the North-

South dialogue and assistance to developing countries. Because of the dimensions of the global refugee problem, it is essential that the burden of providing assistance and relief be as widely as possible shared among the world community. Australia believes that refugee problems cannot

be solved by the few so-called ‘traditional countries of resettlement’—a point emphasised by the Australian delegation to the 32nd session of the Executive Committee of the United Nations High Commissioner for Refugees (UNHCR) program, held in Geneva from 12 to 21 October.

As one of the 40 members of the Executive Committee (EXCOM), Australia plays an active part in UNHCR and is now the fourth largest contributor to its budget. The 1981 session of EXCOM was introspective and concentrated on examining activities of the High Commissioner's Office rather than on substan­ tive policy issues. Australia, however, achieved a signal success in securing

unanimous endorsement of the concept of temporary refuge, namely to facili­ tate the temporary admission of refugees into the country of first arrival while a durable solution to their situation is sought. Such arrangements will contribute to a more equitable sharing of refugees burdens. In a similar context, a joint

meeting of the Development Assistance Committee (DAC) of the OECD, UNHCR and voluntary organisations took place in Paris in March to examine the impact of refugee problems on the development of recipient countries and the role of development assistance in contributing to a solution.

At the 36th (1981) session of the United Nations General Assembly, there was a strong consensus on refugee questions considered in the Third Commit-31

Major-General Paul Cullen (right) with Mr Pout Hartling, UN High Commissioner for Refugees, at the ceremony to award the 1981 Nansen Medal to Major-General Cullen. The Nansen Medal is named after a Norwegian explorer who became the first High Commissioner for Refugees in 1921. UNHCR photo by E. KnJsti.

tee and also on a resolution initiated by the Federal Republic of Germany, on measures to avert new flows of refugees. This latter resolution, co-sponsored by Australia, provided for the establishment of a 17-member group of govern­

mental experts to undertake a comprehensive review of the problems of heavy refugee movements. Australia has nominated an expert to serve in the review. The Commission on Human Rights also will be considering separately in early 1982 a report being prepared by Prince Sadruddin Aga Khan, a former United

Nations High Commissioner for Refugees, about mass exodus and human rights. The Department of Foreign Affairs took an active part in the discussion of refugee questions at the 24th International Conference of the Red Cross held in Manila in November. Australian non-governmental organisations (NGOs) continue to play an important part in mobilising Australian community support for aid for refugees. The Government provided substantial support through

NGOs for refugees from Africa, Afghanistan, Indo-China and Poland. In 1981, Major-General Paul Cullen, the President of AUSTCARE, was awarded the pre­ stigious Nansen Medal by UNHCR for his outstanding efforts on behalf of refu­ gees.

Applications made by people within Australia for refugee status are con­ sidered by the Determination of Refugee Status Committee (DORS). The De­ partment has been a member of DORS in providing advice on international political and legal matters.

32

Refugee situations Indo-China The movement of boat people from Vietnam continued throughout the year, with some 75 000 arrivals in countries of first refuge, about the same number

as in 1980. While the entry of Lao nationals into Thailand continued, the num­ bers requiring resettlement are falling. There is some potential for the success­ ful repatriation to Kampuchea of a significant number of Khmers, but little im­ mediate prospect of repatriation for Vietnamese. Resettlement by the inter­

national community of Indo-Chinese refugees has generally kept pace with arrivals. The humanitarian response to the Indo-Chinese refugee problem owes much to the compassion and generosity of the first refuge countries. As both a potential country of first refuge and a major resettlement desti­

nation, Australia has a strong interest in the Indo-Chinese refugee problem. Our commitment to resettle refugees landing in South-East Asian countries has been a most satisfactory aspect of our relations with ASEAN. During the year a number of countries, including Australia, expressed con­

cern that the growing number of people leaving Vietnam were doing so not from fear of persecution but from a desire to secure a better life, although it also was acknowledged that the distinction was sometimes difficult to draw. Some progress was made in Australia’s discussions with Vietnam on an

agreement to facilitate family reunion, but differences remain. The suffering of boat people at the hands of pirates in the Gulf of Thailand also caused grow­ ing concern during 1981. Australia has indicated to the Thai Government and the UNHCR that it will assist financially in efforts to reduce the incidence of pirate attacks.

Afghanistan The Soviet invasion of Afghanistan has caused the single largest movement of refugees in the world today. Some 2.5 million Afghans have sought refuge in Pakistan and a further half a million to one and a half million in Iran. The bur­

den on Pakistan has been enormous. Since 1980, Australia has donated around $14 million in either food aid or cash grants to the UNHCR and to the Government of Pakistan. Food aid amounting to $3.7 million will be provided to the Pakstani Government in 1981/82 in addition to that already committed

under UNHCR auspices. Australia supports the view of the UNHCR that volun­ tary repatriation to Afghanistan is the only possible long-term solution.

Africa Half the world’s refugees—some five million people—are in Africa. The most serious situation is in the Horn of Africa arising out of endemic regional and civil conflicts and a succession of droughts. Increasing instability is exacerbat­

ing refugee problems in southern Africa and more international attention will almost certainly have to be directed there. Australia has contributed for some years to Commonwealth programs to assist southern African refugees. It has been the practice of African countries to absorb and integrate refu­ gees without looking to other countries for resettlement. The burden of this can

be immense and early in 1981 African countries sought increased international assistance. As a result, an International Conference on Assistance to Refugees in Africa (ICARA) of 96 countries was held in Geneva on 9 and 10 April 1981 under the joint auspices of the United Nations Secretary-General, the Organis­

ation of African Unity (OAU) and the UNHCR. Some US$560 million was pledged, including $10 million from Australia.

33

Eastern Europe

During 1981, Poles came to form the bulk of Eastern European refugees. Aus­ tralia responded to the humanitarian considerations at stake and substantially increased its intake of Polish refugees, so that this resettlement program is now our second largest. The growing number of Eastern European refugees in Aus­ tralia also saw increasing difficulties with family reunion. Separated family members were caused considerable anguish by the practice of Eastern Euro­

pean governments of using passport administration as a means of restricting the movement of families of people who have remained ‘illegally’ abroad. Rep­ resentations to those governments, seeking appropriate liberalisation, were ac­ tively pursued by our overseas posts during the year.

Immigration

Immigration remains a significant part of Australia’s foreign relations, in the same way that trade, defence, cultural, scientific, economic and other links all have their foreign policy aspects. Immigration functions, however, because they affect personal livelihood and welfare, require the most sensitive handling at personal level and in official dealings with governments of migrant source countries. The overall success of Australian policies can be gauged by the re­ settlement in Australia since 1945 of some 3.5 million people from more than

100 countries. There is wide support internationally for Australia’s present immigration policies which do not discriminate on grounds of race, colour, nationality, des­ cent, national or ethnic origin, or sex. Because of the implications of immi­ gration decisions for our relations with other countries the Department con­ tinued to maintain close liaison with the Department of Immigration and Ethnic Affairs. A major concern has been to ensure that immigration policies take ac­ count of, and are consistent with, Australia’s international obligations, foreign

policy objectives and regional relationships and requirements. Advice on the international implications were offered on a wide range of immigration issues, such as overseas student policy, working holiday agreements, entry for medi­ cal treatment, revision of migration agreements, entry of Soviet nationals, social security questions involving other governments and liaison with foreign mis­ sions in Canberra over deportation cases. The Department of Foreign Affairs also participated in the review of the Numerical Migrant Assessment System, the development of the Migrant Selection System to be introduced in April 1982 and in the Ethnic Liaison Officer Scheme, aimed at ensuring that official administrative procedures are geared to meeting migrants’ needs. Similarly, the views and concerns of ethnic communities in Australia have foreign policy implications and are taken into close account in the Department’s work.

Immigration duties at approximately half of all Australian overseas posts are conducted by Foreign Affairs staff on behalf of the Department of Immigration and Ethnic Affairs.

Asylum

The Minister for Foreign Affairs is responsible for granting political and dip­ lomatic asylum. Although Australia recognises the concepts of political and diplomatic asylum, they are rarely, if ever, granted. None of the requests for political asylum during 1981 was granted. There were no requests for diploma­ tic asylum.

34

International legal affairs

Law of the Sea Conference

Australia participated in the tenth session of the third United Nations Confer­ ence on the Law of the Sea in New York in March and April and the resumed tenth session in Geneva in August. The function of the Conference is to review, and to confirm or modify, existing rules governing rights to resources of the

sea and seabed and the uses to which the sea can be put. Australia's objec­ tives at the Conference, which are co-ordinated by the Department of Foreign Affairs, have been described in previous reports. Many of these objectives have been met in the present Draft Convention which has been painstakingly

put together at Conference sessions over the past few years. The United States Administration of President Reagan announced just before the opening of the tenth session that it intended to conduct a review of Ameri­ can policies' on the Law of the Sea. This review had not been completed by the end of 1981, but some preliminary conclusions were reached early in 1982.

Progress towards the adoption of a Convention was accordingly disappointing in 1981, although there were some positive developments. The United States took opportunities that were offered to elaborate upon some of its concerns with the present Draft Convention which relate mainly to the proposed regime for the exploitation of mineral and other resources of the deep seabed beyond

national jurisdiction. A resolution was passed unanimously in September 1981 in the House of Representatives endorsing the view of successive Australian Governments that Australia's substantial interests in the Law of the Sea would best be protected

by the adoption of a comprehensive and widely-accepted Convention ‘which would lay down a balanced and equitable regime, both for the use of the seas by all people for all legitimate purposes and for the management and use of the resources of the sea and the seabed’. Australian authorities, along with those of most other countries, hope that outstanding issues can be resolved at

the eleventh session of the Conference in March and April 1982, so that the way is clear for adoption of a Convention and its possible opening for signa­ ture by the end of 1982.

Maritime boundary issues During 1981, the Department of Foreign Affairs continued to co-ordinate con­ sultations among Commonwealth departments and with.the Papua New Guinea

35

and Queensland authorities concerning the preparation of complementary legislation required for ratification and entry into force of the Torres Strait Trea­ ty. It is expected that ratification will take place in 1982. Agreement on the text of a Maritime Delimitation Agreement between Austra­

lia and France was reached and subsequently approved by both Governments in 1981. It establishes maritime boundaries between Australian territory in the Coral Sea and the South-West Pacific (including Norfolk and Lord Howe Is­ lands) and New Caledonia and its dependencies, and also between Heard and McDonald Islands (Australia) and the Kerguelen Islands (France) in the Southern Ocean.

Australian and Indonesian officials held a fourth round of discussions late in October on a comprehensive agreement on maritime delimitation for those areas not covered by the seabed agreements concluded between the two countries in 1971 and 1972. Subsequently, a memorandum of understanding was signed establishing a Provisional Fisheries Surveillance and Enforcement Arrangement to go into effect from 1 February 1982. The purpose of the Ar­

rangement is to minimise the risk of incidents occurring in areas of overlapping fisheries jurisdiction, pending agreement on a permanent fisheries boundary.

Antarctica In June and July 1981, Australia took part in the eleventh biennial Antarctic Treaty Consultative Meeting in Buenos Aires. The fourteen Consultative Parties are Argentina, Australia, Belgium, Britain, Chile, France, Japan, New Zealand, Norway, South Africa, the Soviet Union and the United States (which were the

original signatories of the 1959 Antarctic Treaty) along with Poland and the Federal Republic of Germany, which became Consultative Parties in 1977 and 1981 respectively. The Consultative Parties directed their attention in 1981 to the need for a regime to regulate exploration and exploitation of Antarctic min­ eral resources. A moratorium on all such activities had been in place since 1977, pending the negotiation of a regime, because all the Consultative Parties were conscious that the unique and fragile Antarctic environment had to be accorded special protection. Since the moratorium began, considerable re­ search has been undertaken on the environmental implications of any mineral activities in Antarctica. Discussions about minerals accordingly were prominent at the Buenos Aires meeting, which adopted a recommendation calling for the early negotiation of a minerals regime for Antarctica within the framework of the Antarctic Treaty. It is envisaged that such a regime would encompass a number of elements, including the maintenance of the Antarctic Treaty in its entirety, special protection of the unique Antarctic environment and its depen­ dent ecosystems, and accommodation of respective interests of those states , exercising sovereignty in Antarctica and those not doing so, along with the

more general interests of the international community as a whole in Antarctica. There will be a special consultative meeting on Antarctic minerals, in Wel­ lington in 1982. Because Australia exercises sovereignty in Antarctica, it will be seeking a role in an Antarctic minerals regime commensurate with its sovereign status. It will also be looking to maintain Antarctica as a region free from strategic or political confrontation and to provide proper environmental protec­ tion.

36

J

At the Australian Antarctic Division headquarters in Hobart, biologist Mr Dick Williams examines krill brought from Antarctica. Australia took part in a krill survey which was part of an international marine science expedition in the Antarctic region, involving nine countries. AIS photo.

Legal issues in the United Nations

The Sixth (legal) Committee of the United Nations General Assembly had a heavy agenda at the Assembly’s 36th session, taking up 16 items. In addition, the Plenary of the Assembly dealt with three important issues: enlargement of the International Law Commission (from 25 to 34 members), elections to the

Commission, and elections to five seats in the International Court of Justice. Australia was successul in having the General Assembly agree to establish a working group of the Sixth Committee at its next session in 1982 to consider an

Australian initiative, first broached in 1977, to review the multilateral treaty­ making process.

Treaty-making by Australia Twenty treaties between Australia and other countries entered into force for Australia during 1981. Another six were signed, but had not entered into force by the end of the year. Among those entering into force this year were the nu­

clear safeguards agreements with the United States, France, the European Atomic Energy Community (EURATOM), Sweden and Canada. Other subjects covered by treaties included taxation, civil aviation, economic, technical, cul­ tural and scientific co-operation, migratory birds and fisheries. The Agreement

on Migratory Birds with Japan, signed in 1974, was ratified by Australia. During 1981 seven multilateral treaties entered into force for Australia. Of these four entered into force as a result of treaty action taken during the year and three as a result of treaty action taken earlier. During the year, Australia took action towards adoption of ten other treaties which did not enter into force

during 1981, including the agreement establishing the Common Fund for Commodities and the Constitution of the United Nations Industrial Development Organisation. (Details of treaty action or agreements which became effective during the year are set out in Australian Treaty Series No 1 of 1981. Texts of treaties are

published in this series as they enter into force and are available from Austra­ lian Government Publishing Service bookshops.)

37

Australia’s overseas aid program 1981-82

Australia’s development assistance program, which is administered by the De­ velopment Assistance Bureau of the Department of Foreign Affairs, is directed towards promoting economic and social advancement of developing countries, particularly in Asia and the Pacific. It aims to meet the expressed needs of these countries affecting key activities in their economies, such as rural de­ velopment. All of Australia’s aid is given on grant terms and a significant pro­

portion is untied. About 80 countries receive assistance, but our efforts are aimed principally at assisting our nearest neighbours— Papua New Guinea (PNG), the small island states of the South Pacific and the five countries of the Association of South East Asian Nations (ASEAN)—Indonesia, Malaysia, Sing­ apore, the Philippines and Thailand.

In the financial year 1981-82, Australia expects to spend about $662 million on official development assistance. This figure represents an increase or more than $100 million on aid expenditure in 1980-81 and demonstrates continuing recognition of the role of aid in fostering better relations between developed and developing countries. Of this amount, $520 million (79 per cent) will be provided as bilateral aid, given directly to the governments of developing countries. The major elements of the bilateral program are budgetary support for PNG, project aid (equipment, goods and expertise), education of students and trainees, food aid and assistance through non-governmental organisations (NGOs). In addition, $142 million has been allocated to multilateral agencies, principally in the United Nations system. Support provided to these bodies has been increased by $41 million over 1980-81.

Papua New Guinea About half of Australia’s bilateral aid goes to Papua New Guinea because of the special historical and political relationship. In 1981-82 PNG will receive $254 million, most of which ($241 million) will be an untied grant for budgetary support. This amount is the first payment under a second five-year aid agree­ ment negotiated between the Australian and Papua New Guinea Governments in September 1980 to succeed the first five-year agreement which ended in

1980-81. The purpose of the long-term aid arrangement is to provide PNG with a workable and practicable framework in which to plan its development. In addition to budgetary support, Australia meets the cost of termination payments and retirement benefits due to former employees and provides train-38

Mr Jack Musi (left) of the Papua New Guinean Department of Transport and Civil Aviation, Rabaut, was a student under the Australia Papua New Guinea Education Training Scheme. He is shown working with Mr Allan Andrews of Hawker Siddeley Engineering in

Brisbane. AIS photo.

ing for Papua New Guinea citizens. From 1981-82 this training will be incorpo­ rated into the PNG-Australia Technical Co-operation Program. The program also encompasses a jointly funded technical assistance program to provide services and related equipment to augment PNG capabilities in technical areas.

Bilateral program Most of Australia's aid to developing countries other than PNG is for specified developmental activities which they have undertaken, ranging from large-scale

regional development programs to simple village facilities. At 1 July 1981, Aus­ tralia was involved in 323 projects in 35 countries, worth some $570 million. Generally, Australia meets the foreign exchange costs of a project, but it is

also increasingly paying some of the associated local costs. The South-East Asian region received the bulk of Australia’s bilateral project aid, amounting at present to about $308 million for 87 projects. Many of these involve infrastructure development work, agricultural improvements through crop and livestock research and practical extension work. In recent years Aus­ tralia increasingly has become involved in large-scale, integrated rural de­ velopment programs aimed at promoting the balanced growth of whole re­

gions, particularly in Indonesia, the Philippines and Thailand.

39

The basis of Australia's aid program in the member countries of ASEAN is an open-ended commitment of $250 million, first established in 1977 and periodi­ cally renewed. In addition, expenditure on research projects and other ac­ tivities under the ASEAN-Australia Economic Co-operation Program (AAECP) will be $7.5 million in 1981-82. The ASEAN countries have now reached a stage of development where they are looking to other forms of assistance to build upon their very substantial progress to date. One response by Australia has been the introduction of a scheme called the Development Import Finance Facility in order to reduce the cost to ASEAN governments of importing capital goods and services from Australia for developmental purposes by providing better terms than are available under existing concessional finance arrange­ ments.

South Pacific countries benefit under a three-year forward aid commitment of $120 million (over the period 1980-81 to 1982-83). Most of the expenditure in­ volved constitutes bilateral project aid for Fiji, Tonga, Western Samoa, Solomon Islands, Vanuatu, Kiribati, Tuvalu, Cook Islands and Niue. At 1 July 1981, Aus­ tralia was undertaking 120 projects worth $73 million. The large number of

projects reflects the small scale of island economies. They cover a wide range of activities, including assistance with transport, rural development, water and sewerage schemes, telecommunications and upgrading health facilities. To keep pace with the changing requirements of the South Pacific, new forms of aid recently have been introduced. One particular example, increasingly sig­ nificant during 1981-82, has been the funding of joint ventures. One million dol­ lars has been earmarked for grants for the purchase of equity by island states in joint ventures with Australian companies, which should generate income and employment.

South Asian countries receive significant project aid mainly to help rural de­ velopment. Australia’s total commitment on 1 July 1981 to 44 projects here was $75 million. An increase of six million to $16 million in assistance to African and Indian Ocean states in 1981-82 was provided. This region contains many of the poorest countries in the world, where very severe development problems are increasing. Apart from normal activities, the expanded program will include staffing assistance schemes, development import grants and assistance to re­ gional programs being developed in southern Africa and will be in addition to the commitment of $20 million to Zimbabwe (for expenditure by the end of

1984) which was announced in March 1981. In total some 27 projects worth $22 million were being carried out at the beginning of the 1981-82 financial year.

Training During 1981-82 Australia will sponsor study by about 3300 persons in Australia and Third World countries at a cost of $24 million. The training program assists countries in the Asian, Pacific, African and Indian Ocean regions develop the manpower skills required in their national development priorities. Recipient governments decide upon who should be nominated for scholarships and indi­ cate the field of study and the needed level of training. Within Australia the

40

training includes individual training awards for regular courses at Australian academic institutions and special group programs known as Australian De­ velopment Assistance Courses, some of which are run by the International Training Institute in Sydney. The subjects of study include agriculture, health,

engineering, education and management. There will be scope in the 1981-82 program for extensions to existing activities, including an increase in training provided within developing countries. It is also proposed to increase English language training and training of senior administrators. Funding for the Austra­ lian Universities International Development Program (formerly the Australian Asian Universities Co-operation Scheme) will take up about $2 million of train­

ing expenditure. The focus of this program is on agriculture, food production and population studies. Assistance is given to Asian universities in teaching, research and a variety of short courses. The program is expected to be ex­ tended soon to universities in the Pacific region.

Food security

Food aid has a major role in enhancing food security in low-income, food- deficit countries. As a major food exporter, Australia continues to make food aid available to relieve starvation and encourage agricultural development. A

total of $100 million is set aside for this purpose in 1981-82, with a food grain component of 445 000 tonnes. Australia is committed under the Food Aid Convention (FAC) to provide an annual minimum of 400 000 tonnes of foodgrain. Of this, 320 000 tonnes will be committed under bilateral aid as wheat, flour or rice, with 60 per cent going to

African countries and the balance to South and South-East Asian and Indian Ocean countries. Freight costs will be paid on grain going to disaster areas and where recipient countries have serious balance of payments problems. Some of the total quantity will be earmarked to meet the Government’s com­

mitment to provide $8 million worth of additional food aid for the pressing needs of African refugees. The remaining 80 000 tonnes will be channelled through the World Food Program (WFP) which uses food aid both for emergencies and to promote economic and social development. In addition, Australia’s contribution to the cash and commodities pledge to WFP for the

1981-82 biennium will be $12.5 million. In 1981-82 Australia will for the first time commit food grain and freight costs to the International Emergency Food Reserve (IEFR) over and above its minimum FAC commitment of 400 000 tonnes. The reserve is an international facility used to help overcome unexpected and sudden food shortages result­

ing from war, drought, floods and pests. A contribution of 45 000 tonnes to the IEFR is expected, which will be allocated in close consultation with the WFP. During 1981-82, food grain aid will be directed increasingly to assist in emergencies and in refugee situations and through multilateral channels such as WFP and the United Nations High Commissioner for Refugees, which are best able to ensure that it reaches needy people quickly.

Australia is providing non-grain foods valued at $4.1 million (including freight) for emergencies and hardship cases. Two million dollars has been set aside as well to assist the development of secure production, marketing and distribution facilities in some of our principal aid recipients.

41

A major initiative in food security in 1981-82 has been the establishment of the Australian Centre for International Agricultural Research. The Centre will contract research work to existing Australian institutions in agriculture and re­ lated disciplines in order to contribute to solving agricultural problems in de­ veloping countries. Research work will be carried out as appropriate in de­ veloping countries and will involve research and extension workers from these countries. An advisory council representative of Australian, developing country and international scientific interests is being established to set research priorities and review the progress of programs undertaken. A trust fund will be set up for the Centre to which the Australian Government has made an initial commitment of $25 million over four years.

Non-Governmental Organisations The Australian Government is extending over four million dollars this year to a number of Australian non-governmental organisations (NGOs) engaged in de­ velopment assistance activities. The principal avenue of Government-NGO

co-operation is a project subsidy scheme for small-scale community projects in developing countries (some $3.5 million in 1981-82). South Pacific projects and help for disabled persons are being emphasised this year. A further amount of $580 000 is provided for schemes involving Australian volunteers, including the long-running Australian Volunteers Abroad scheme and a new scheme—the Australian Executive Service Overseas Program man­ aged by the Confederation of Australian Industry—on a trial basis this year.

A number of international NGOs, such as the International Committee of the Red Cross, will be assisted in 1981-82 to a total of about one million dollars.

The Minister for Immigration and Ethnic Affairs, Mr Ian Macphee, visited the Panat Nikhom refugee processing and transit centre, Thailand, in June.

42

Multilateral aid

Australia contributes to a number of international organisations and financial institutions concerned with aid to developing countries. They include the World Bank Group, the Asian Development Bank (ADB), the United Nations De­ velopment Program (UNDP) and other United Nations agencies, including the

Economic and Social Commission for Asia and the Pacific (ESCAP), the Inter­ national Fund for Agricultural Development (IFAD), the Commonwealth Fund for Technical Co-operation (CFTC), the South Pacific Bureau for Economic Co­ operation (SPEC), the South Pacific Commission (SPC) and various inter­

national scientific, technological and research centres. Support for these organ­ isations allows Australia to participate in major development projects beyond the resources of most individual donor nations. Contributions in 1981-82 to international financial institutions are estimated at

$61 million. Included is $35.6 million for the International Development Associ­ ation (IDA), the soft-lending affiliate of the World Bank (International Bank for Reconstruction and Development (IBRD)), which assists the poorest countries. Other major contributions are $7.7 million to the Asian Development Fund (ADF), $6.5 million for the IBRD and $6.8 million to the International Finance Corporation (IFC).

Payments to the United Nations and regional and international agencies in 1981-82 are estimated at $81 million (including $24 million to the WFP). There is provision for significant increases in our pledges to the major United Nations developmental bodies, with five organisations receiving additional assistance of over $22 million—the UNDP, UN Children’s Fund (UNICEF), UNHCR, UN

Fund for Population Activities (UNFPA) and the UN Relief and Works Agency in the Near East and Palestine (UNRWA). With regard to Commonwealth-related programs, a $3.6 million contribution

to the Commonwealth Fund for Technical Co-operation (CFTC) is to meet prior­ ity technical assistance needs of developing Commonwealth countries. A total of over five million dollars is set aside for Commonwealth commitments. Over $8 million is to be given to regional organisations such as ESCAP,

SPEC and SPC. Support for other regional and international programs in the South Pacific will amount to $4.6 million in 1981-82, including a new program in geoscientific seabed research to be jointly undertaken with New Zealand and the United States.

In 1981-82, $4.7 million will be provided for international scientific, technolog­ ical and research programs, including support of a number of international agricultural research institutions within the Consultative Group on International Agricultural Research (CGIAR).

Refugees and relief Over the last year there was a substantial increase in the number of refugees throughout the world, with particular problems in East Africa, Indo-China and Afghanistan. Australia will continue to support international appeals and pro­ vide emergency aid, mainly as food. As a means of providing greater flexibility

in dealing with emergency refugee and relief situations, a separate amount of $7.5 million has been set aside within the 1981-82 budget, of which at least two million dollars will be used for African refugee relief.

43

Asia

South-East Asia

ASEAN

Australia's relations with the Association of South-East Asian Nations (ASEAN) and with its constituent states (Indonesia, Malaysia, the Philippines, Singapore and Thailand) remain a major foreign policy preoccupation. Australia and ASEAN countries have a common interest in the maintenance of regional politi­ cal and economic stability. Growing economic wealth and substantial de­ velopmental changes in ASEAN countries are increasingly significant for Aus­

tralia. Australia was the first country to establish—in 1974—a regular formal dialogue relationship with ASEAN and close contacts have been developed and maintained by Ministers and officials. As well there are now substantial business, technological, educational and other private contacts between ASEAN countries and Australia.

During the year, the Prime Minister held discussions with the Singapore Prime Minister, Mr Lee Kuan Yew, and the Malaysian Foreign Minister, Tan Sri Gazali Shafie, at the Commonwealth Heads of Government Meeting (CHOGM) in Melbourne in October. Earlier in the year, the Minister for Foreign Affairs vis­ ited Singapore and held discussions in Manila with his ASEAN counterparts after their annual meeting in June. Discussions covered, in particular, Austra­ lia's relations with ASEAN and the regional situation, including Indo-China. There were close and frequent consultations during the year by Ministers and officials about Australia’s and ASEAN’s common objective in securing a politi­ cal settlement in Kampuchea, including at the International Conference on Kampuchea at the United Nations in July. Indo-Chinese refugees were another subject of close common interest.

The sixth annual ASEAN-Australia Forum, comprising senior ASEAN and Australian officials, took place in Canberra in April. The Forum reviewed ASEAN-Australia relations and welcomed progress under the ASEAN-Australia Economic Co-operation Program (AAECP), to which Australia has committed $34.5 million for projects on trade and investment, food technology, education and population. Further areas for ASEAN-Australian co-operation were ex­ plored. The Forum welcomed a report from the ASEAN-Australia Consultative

Meeting (AACM), comprising the five ASEAN Heads of Mission in Canberra and senior Australian officials concerned with ASEAN, which dealt in part with the proposed establishment of an AACM special working group on energy co-operation to add to the working groups on trade and development co-44

J

operation. The continued strong growth in two-way trade during the year also was welcomed, although ASEAN had again expressed its concern to improve access for the products of its member states to the Australian market. It was agreed that Australia would organise a meeting in 1982 between ASEAN offi­ cials and representatives of the Australian private sector to look into investment

prospects for regional joint venture projects. Further encouragement was given to business co-operation through the first meeting in June in Manila of the ASEAN-Australia Business Council, which was established in 1980.

Indonesia

The Australian Government continued to attach significance to the further de­ velopment of a close and co-operative relationship with Indonesia. There were wide-ranging consultations and exchanges on issues of mutual and regional concern. Overall government-to-government relations were conducted on a

constructive basis, notwithstanding continuing strains over the Australian news media and the slow movement in the program to reunite East Timorese families. Both Governments recognise the importance of sound relations in the long-term.

Official visits of many kinds in both directions, exchanges of views on inter­ national issues of mutual interest, trade, investment, cultural exchanges and Australia’s development assistance and defence co-operation programs were the principal elements in the relationship. Senior Indonesian visitors to Australia

included Mr Soehoed, Minister for Mines and Energy, Dr S. Surjaningrat, Minis­ ter for Health, Dr J.B. Sumarlin, Minister of State for Administrative Reform. The Australian Ministers for National Development and Energy, Senator Garrick, and Housing and Construction, Mr McVeigh, visited Indonesia.

A fourth round of maritime delimitation talks between officials of both coun­ tries was held in October, resulting in an agreement on a provisional fisheries surveillance and enforcement arrangement.

The Australian Government maintained its close interest in relief and rehabili­ tation in East Timor. Australia has to date provided more than $5.5 million for humanitarian assistance programs in East Timor, the major part of which has gone to a program conducted jointly by the International Committee of the Red

Cross and the Indonesian Red Cross.

Malaysia

Australia has important and in many areas expanding links with Malaysia, par­ ticularly in trade and investment and through educational, technological and other contacts. Malaysia is ASEAN’s designated country of first contact for Australia and the established pattern of close consultations and wide-ranging

exchanges on matters of mutual and regional interest continued. Foreign Minis­ ter Tan Sri Ghazali Shafie, who led the Malaysian delegation to CHOGM, Tan Sri Ong Kee Hui, Minister for Science, Technology and Environment and Tan Suffian, Lord President of the Malaysian Federal Court, were among senior

Malaysian visitors to Australia. The Australian Ministers for Defence, Mr Killen, and Immigration and Ethnic Affairs, Mr Macphee, and the Chief Minister of the Northern Territory, Mr Everingham, visited Malaysia. A second round of senior

officials’ talks was held in Canberra in April.

45

Singapore

Australia’s relations with Singapore continued to reflect the underlying strength and diversity of political and personal links between the two countries and in trade and growing investment interest. Our relations with Singapore also re­ flected in part Singapore’s ever-increasing importance as a major world cross­

road and communications centre, as well as its important role in regional eco­ nomic development and in consideration of regional security matters.

The Minister for Foreign Affairs, Mr Street, held talks with the Philippines Foreign Minister, General Carlos P. Romulo, in Manila. Pictured, from left to right, Mr A. Ft. Parsons, Deputy Secretary, Department of Foreign Affairs/ Mr P. A. Woolcott, Australian Ambassador to the Philippines; Mr Street, General Romulo.

Brunei

An evolving pattern of routine visits and consultations between Australia and Brunei was consolidated during 1981 as Brunei moved towards full indepen­ dence planned for 1 January 1984. Several Brunei officials visited Australia at the invitiation of the Government in order to explore manpower training pros­ pects. The non-resident Australian Commissioner to Brunei and other Austra­ lian officials based in Kuala Lumpur made a series of visits to Brunei.

Philippines

Trade, development co-operation and migration continued to be important elements in Australia’s relations with the Philippines. Close consultations and exchanges on issues of mutual and regional concern were maintained, particu­ larly as the Philippines Foreign Minister, General Romulo, was Chairman of the ASEAN Standing Committee for the first part of the year. Senior Filipino visitors to Australia included the Minister for Public Works. The Australian Ministers for Foreign Affairs, Mr Street, and Health, Mr MacKellar, visited the Philippines.

46

Thailand Australia continued to take a sympathetic and constructive attitude to the prob­ lems for Thailand resulting from the continuing conflict in Kampuchea and the Indo-Chinese refugee situation. Close consultations and exchanges were main­

tained on these and other matters of mutual and regional interest. Trade, in­ vestment and development and defence co-operation continue to be important elements in our relations. Leading Thai visitors to Australia included His Royal Highness Crown Prince Vajiralongkorn, the Prime Minister, General Prem Tin-

sulanonda, and the Foreign Minister, ACM Siddhi Savetsila (twice). During the year the Ministers for Communications, Mr Sinclair, and Immigration and Ethnic Affairs, Mr Macphee, visited Thailand.

Burma Australia recognises Burma’s importance as a non-aligned and non-communist country in a region of strategic importance. We maintain an aid program in Burma which responds to Burmese emphasis on the rural sector. There were

no significant problems in the bilateral relationship. No Ministerial visits took place, but consultations and exchanges were maintained by senior officials. '

Indo-China The situation in Kampuchea was again the principal focus of Australia's atten­ tion in Indo-China in 1981. Attempts to secure a peaceful settlement in Kam­ puchea made no progress because of Vietnam's refusal to enter negotiations,

notwithstanding pressures resulting from the International Conference on Kam­ puchea in July and the increase at the 1981 UN General Assembly over 1980 in support of the resolution sponsored by the ASEAN countries and co­ sponsored by Australia containing proposals for a political settlement in Kam­ puchea (Resolution 36/5 of 21 October).

Australia's basic policy towards Kampuchea remained unchanged. We con­ tinued to seek a negotiated solution which would lead to the withdrawal of Vietnamese forces from Kampuchea and allow a genuine act of self­ determination by the Khmer people. On 14 February 1981 the Australian Gov­

ernment derecognised the Democratic Kampuchean regime led by Pol Rot be­ cause of public revulsion over the mass killings perpetrated by that regime. Australia now recognises no government in Kampuchea. Australia continued to give general support to the diplomatic strategy of ASEAN to secure a settle­

ment of the Kampuchean issue along lines acceptable to all the parties in­ volved. The Minister for Foreign Affairs led the Australian delegation to the In­ ternational Conference on Kampuchea held in New York in July. Australia followed closely negotiations between the three major anti-

Vietnamese Khmer factions over the possible formation of a coalition and made clear that it would welcome the emergence of a truly representative grouping of nationalist factions not dominated by Democratic Kampuchea. No coalition had. however, come into existence by the end of 1981 and the Australian Gov­

ernment maintained its opposition to the return of the Democratic Kampuchean regime to power in Phnom Penh. Australia contributed generously to the humanitarian relief appeal for Kam­ puchea, and by the end of 1981 had committed a total of $20.36 million.

Australia’s opposition to Vietnamese policies in Kampuchea continued to af­ fect adversely our relations with Vietnam. We maintained correct relations with the Vietnamese Government, however, and continued consultations with all in­ terested governments on the Kampuchean issue.

47

Our relations with Laos remained cordial. The development co-operation program, valued at approximately one million dollars annually, was well re­ ceived. Major projects in hand are a livestock development project and an irri­ gation project, both situated in the Vientiane region.

North Asia Japan

During 1981, increasing emphasis in Australia’s relations with Japan was given to consultations on a wide range of international and bilateral issues. The sixth meeting of the Australia-Japan Ministerial Committee (AJMC) held in Tokyo on 21 and 22 January 1981 enabled Ministers to review the whole range of the

relationship. In June, the Minister for Foreign Affairs met his Japanese counter­ part, Mr Sunao Sonoda, in Manila to discuss matters of mutual interest. The Japanese Minister for Science and Technology, Mr Ichiro Nakagawa, visited Australia in July. In August, Mr Masayuki Fujio, the Japanese Minister for

Labour, led a tripartite mission on industrial relations to Australia. The mission comprised representatives of government, business and labour and recipro­ cated the visit to Japan in 1978 of an equivalent Australian mission led by Mr Street in his former capacity as Minister for Industrial Relations. The year was also a busy one for Parliamentary exchanges. Two Australian Parliamentary de­ legations, led by Mr Murray Sainsbury and Senator D.J. Hamer respectively, visited Japan in February and July. Three delegations from the Japanese Diet visited Australia.

Japan retained its position as Australia’s major trading partner during 1981, taking some 27 per cent of total exports. The principal economic issues under discussion during the year related to access conditions for beef, sugar and cit­ rus fruit and the level of purchases under long-term contracts for certain min­ erals, including coal and iron ore. During the year, Japan came under con­ siderable pressure from the United States and the European Communities to implement economic measures designed to correct those countries’ unfavour­ able trade balances with Japan. Australian officials remained in close contact with developments in this respect.

Co-operation on a range of matters was expanded during the year. In April, an Agreement for the Protection of Migratory Birds and Birds in Danger of Ex­ tinction and their Environment, signed in 1974, was ratified by Australia. This agreement provides for co-operation between Japan and Australia to protect and preserve the habitats of some 66 species of birds that migrate between the two countries. Annual negotiations on Japanese tuna long-line fishing in the Australian Fishing Zone (AFZ) were concluded successfully in October. The in­ troduction from 1 December 1980 of a working holiday scheme for young

people of both countries made a valuable contribution to mutual understand­ ing. At the end of 1981 approximately 220 Australians and 884 Japanese had obtained working holiday visas. Sister city and State-Prefecture relationships flourished, with some 17 sister city and two State-Prefecture relationships es­ tablished and ten more under negotiation. New relationships in 1981 included those between Western Australia and Hyogo Prefecture, Sydney and Nagoya,

Newcastle and Ube, and Broome and Taiji (in Wakayama Prefecture). The formulation of Australian policy towards Japan was strengthened in 1981 by the activities of the Standing Committee on Japan (SCJ). The Committee is

48

chaired by the Secretary of the Department of Foreign Affairs and includes six other Heads of Australian Government Departments. The Consultative Commit­ tee on Relations with Japan (CCRJ), whose members include those same Per­ manent Heads together with businessmen, academics and representatives of

labour, also was active. Both committees are serviced by the Japan Secretariat and both met several times during 1981. The second and third series of Commonwealth-State meetings on Australia-Japan relations were held during the year. These meetings aim to assist co-ordination between Australian State Governments and the Commonwealth Government on Australia's activities in

respect of Japan and make an important contribution to overall relations.

China

During 1981 further substance was given to the Australian Government’s objec­ tive of developing relations with China in as wide a range of spheres as poss­ ible. The exchange of high-level visits and the conclusion of several new

agreements or arrangements contributed to this process. China was among the first countries visited by Mr Street following his ap­ pointment as Minister for Foreign Affairs. During his visit in January 1981, Mr Street initialled a cultural agreement which was subsequently signed during the visit to Australia of Huang Zhen, Minister for Cultural Relations with Foreign

Countries, in April. It provides for regular consultations to establish annual pro­ grams for two-way exchanges in culture and sport. Agreement with the Chinese on an exchange of defence attaches also was reached during Mr Street’s visit. The first defence attaches were expected to take up their pos­

itions in Peking and Canberra early in 1982. HMAS Swan visited Shanghai in September, the first visit by an Australian naval vessel to China since 1949.

A crew member from HMAS Swan is greeted by a Chinese sailor at Shanghai, China.

49

During his visit to China in June, the Minister for Primary Industry, Mr Nixon, signed a record of discussion which sets out an understanding on agricultural exchanges in areas in which both countries consider they can benefit from each other’s experience. An agreement covering a program of technical as­ sistance, to be managed by the Australian Development Assistance Bureau, was signed during the Minister for Health, Mr MacKellar’s, visit to China in Sep­ tember. The first projects to be undertaken under this agreement involve as­ sistance with English language training and afforestation. Visits of this kind play an important role in promoting mutual understanding. There were other useful exchanges in agriculture, science, health and education. In its second year of operation, the Australia-China Council successfully consolidated its role as a major advisory body for widening the sphere of co-operation and contacts with China. The Council actively supported a broad range of exchanges, projects and studies in science and technology, social sciences, arts, sport, media and language development.

Trade continues to be an important element in the relationship. During the visit to Australia of the Chinese Vice-Minister for Foreign Trade, Lin Xiwen, a protocol to the 1973 trade agreement was signed. The protocol is intended to facilitate development of economic co-operation between the two countries.

At the political level the range of our discussions and consultations has con­ tinued to expand. While Australia shares a common view with China on many international issues, where there have been differences these have been dis­ cussed frankly.

The Koreas Relations with the Republic of Korea (ROK) improved during 1981. The prob­ lems which had been posed by the human rights situation in the ROK during 1980 were mitigated as the ROK Government moved, through a series of am­

nesties, to free many dissidents and reduce the sentences of others. The ROK continues to be an important trading partner for Australia and there was a steady growth of two-way trade during 1981. There were a number of Ministerial-level visits in both directions. In March, the President of the Senate, Sir Condor Laucke, attended the inauguration of

President Chun Doo Hwan. In October the Deputy Prime Minister, Mr Anthony, visited the ROK for the annual Ministerial trade talks, and the Ministers for Health, Mr MacKellar, and Primary Industry, Mr Nixon, both visited the ROK for discussions with their counterparts. In December the Korean Minister for Health and Social Affairs, Mr Chun Myung-Kee, visited Australia.

While Australia still recognises the Democratic People's Republic of Korea (DPRK), it is concerned about the DPRK's continuing reluctance to adjust to the realities of the 1980s and about its failure to come to terms with the fact that the ROK exists as a strong and stable state in the southern half of the

Korean peninsula. During 1981 the Australian Government considered a re­ quest from the DPRK for the restoration of diplomatic relations which were in­ terrupted in 1975 when the DPRK withdrew its Embassy from Canberra and expelled the Australian mission from Pyongyang the following month. The Gov­ ernment decided that it would not accede to the DPRK’s request unless the DPRK was willing to deal with the ROK on an equal and sensible basis and to allow its friends to recognise the ROK. Central to this decision was a concern to promote the achievement of a more secure basis for peace in the Korean peninsula.

50

South Asia Australia’s relations with the South Asian region were more active in 1981. Our co-operation with regional countries on issues of mutual interest and high-level exchanges reflected the growing importance attached by the Government to

these relationships. The Minister for Immigration and Ethnic Affairs, Mr Mac- phee, visited Bangladesh, India and Sri Lanka as Australia's CHOGM emissary in June. The Commonwealth meeting in Melbourne, which was attended by the Prime Ministers of the three countries, also made a particular contribution to understanding at a high level. A meeting of Australia's heads of diplomatic

posts in India, Pakistan, Bangladesh, Sri Lanka, Burma and Iran, attended by senior officers of the Department of Foreign Affairs, was held in New Delhi in November to discuss recent developments in South Asia and their implications for Australian policy.

India Relations with India were strengthened by the Prime Minister's visit to New Delhi in August, his third in two years. An official visit was made by the Minister for National Development and Energy, Senator Garrick, while the Governor-

General. Sir Zelman Cowen, called on the Indian President in New Delhi during a private visit. Australia and India worked closely together on a number of global issues, including the North-South dialogue. Defence, scientific and cul­ tural exchanges took place, some under bilateral and some under Common­ wealth and other multilateral auspices, A modest but significant Australian aid

program was maintained as well as a regular intake of students under the Col­ ombo Plan. Sporting contacts and tourism increased the awareness of India in Australia. Two-way trade increased substantially—mostly in Australia’s favour—with the

sale of 750 000 tonnes of wheat. A senior trade mission from the private sector toured India in September. Civil aviation talks took place in August, resulting in an attractive new fare schedule.

Pakistan Australia’s consultations with Pakistan became closer as a consequence of the Soviet occupation of Afghanistan. We continued to support Pakistani efforts to secure the unconditional withdrawal of foreign forces from Afghanistan and

gave generously to the relief program for the two and a half million Afghan refugees now in Pakistan. The Australian Government indicated that it would welcome Pakistan’s return to the Commonwealth. While a consensus at the Melbourne CHOGM did not eventuate, the Prime Minister said that Heads of

Government would keep in touch on the Issue. Defence contacts were main­ tained with the visit of senior officers to Australia and the vists by Australian naval ships to Pakistan.

Bangladesh Australia was distressed over the assassination in May of President Zia of Bangladesh. In moving a motion of consolence in Parliament, the Prime Minis­ ter and others spoke highly of the late President. Bangladesh, as a member of

the least developed country (LLDC) group, remained one of the largest reci­ pients of Australian aid. Australia is a member of the World Bank Aid Bangladesh Consortium and our aid program includes project, food and com­ modity aid. .

51

Sri Lanka

Australian ties with Sri Lanka have been closer since the Jayewardene Gov­ ernment shifted to a pro-Western political course and introduced economic policies more akin to the growth-oriented countries of South-East and North

Asia. With the introduction of a free trade zone and relaxed criteria for foreign investment, there has been greater potential for Australian commercial interest and trade generally. In 1981 the Sri Lankan Government conducted a series of investment seminars throughout Australia. Senior Sri Lankan visitors included the Ministers for Plantations, Public Administration and Land and for the

Mahaweii (Sri Lanka's major hydro-irrigation scheme). Australia has been ex­ amining a downstream area of the Mahaweii as an aid project. Sri Lanka also welcomed visits by Australian naval vessels to its ports.

Two Soviet anti-aircraft guns, with their attendant radar vehicle, dug in at the base of foothills outside Kabul, Afghanistan. The gun to the left Is a 57 mm S-60 anti-aircraft, while the gun to the right is a KS-19 100 mm weapon. AP Wire photo.

Afghanistan

Australia does not recognise the Babrak Karmal regime in Afghanistan, which is supported by Soviet forces, and has had no official dealings with that coun­ try. We have maintained our opposition to the presence of Soviet forces in Af­ ghanistan, including through continued sanctions on the USSR. We consider that the Afghan people should be allowed to decide their own future without outside interference in accordance with a UN General Assembly resolution, which was supported by 116 countries, including Australia.

52

The Americas

United States

In January 1981 the Republican Administration in the United States under Pres­ ident Ronald Reagan was inaugurated. The Republicans also became the majority party in the Senate and made significant gains in the House of Rep­

resentatives where the Democrats, however, still retained the majority. During the first year of the Reagan Administration, Australia’s relations with the United States were sustained on the long-standing basis of close co­ operation across a broad range of strategic, political and economic interests.

1981 marked the 30th anniversary of the coming into force of the ANZUS Tre­ aty, the formal security arrangement which is a central element of the re­ lationship.

The main preoccupation of the Reagan Administration throughout much of 1981 was the implementation of its domestic economic program. At the same time, the general framework of a revised foreign policy was also laid down, with emphasis given to the global strategic relationship with the Soviet Union

and the impact of East-West developments upon a range of issues and situ­ ations in international affairs. The high priority given to strengthening the United States conventional and nuclear capacity to counter the Soviet Union's military build-up saw implementation of the Administration’s five-year plan for in­ creased defence expenditure and the announcement by the President in Oc­ tober of a new strategic nuclear weapons program; but was tempered by the

proposal put forward in November for an agreement with the USSR for the re­ moval of intermediate-range nuclear forces from Europe. The Administration also made clear its intention to work for closer consultation and co-ordination with traditional allies and friends, including those in East Asia and the Pacific.

Australia quickly developed high-level contacts with the new Administration. These were followed by visits to Washington by the Foreign Minister in March and by the Prime Minister in July, which enabled personal relations to be es­ tablished with President Reagan, the Secretary of State, Mr Haig, and other

senior members of the Administration and which provided the opportunity for the exchange of views on a broad range of international and bilateral issues. The Prime Minister’s discussions with the President on North-South issues were significant in facilitating movement during the year towards re-opening the

North-South dialogue. These visits and other political and official consultations ensured mutual awareness of United States and Australian policies and co­ ordination of those policies as appropriate.

53

Pictured during the ANZUS Council meeting in Wellington in June, from left to right, the New Zealand Minister of Defence, Mr Thomson; New Zealand Acting Prime Minister, Mr McIntyre; the Australian Minister for Foreign Affairs, Mr Street; the U S. Secretary of State, Mr Haig; the then New Zealand Minister of Foreign Affairs, Mr Talboys; and the Assistant Secretary for East Asian and Pacific Affairs, U.S. State Department, Mr Holdndge.

Australia shared the Reagan Administration's general concern with the state of the international situation and supported the broad thrust of its foreign and defence policies, including the perception of the threat posed by Soviet ex­ pansionism and the need for the maintenance of a military balance of power between the West and the Soviet Union. These common interests were given concrete effect by the agreement concluded in March to permit United States

B-52 aircraft on surveillance and training flights into the Indian Ocean to stage through the RAAF base in Darwin. The Prime Minister lent weight to the Re­ agan Administration’s concern over external support for the guerillas in El Sal­ vador, the decision to go ahead with production of the neutron weapon, the new strategic nuclear program announced by the President in October and his far-reaching proposals in November on nuclear arms limitation in Europe.

There have been certain differences of perspective in some other areas be­ tween Australia and the United States. Such differences are to be expected, given Australia's position as a middle-power, its location in the South-East Asia-Pacific region and its outlook as a member of the Commonwealth, in comparison with the American role of global superpower. As the Foreign Minis­ ter noted in an address in April, Australia’s broad agreement with the direction of much of President Reagan’s foreign policy ‘ . . . does not imply automatic agreement with everything the United States does. Our support rests upon a judgement in each case about where Australia’s fundamental interests lie . . .’.

One key international issue on which the Australian and United States ap­ proaches differed during 1981 was on negotiations on a Law of the Sea Con­ vention following the American decision to review its part in the negotiations. In September the Australian Parliament adopted a bipartisan resolution calling on the United States Administration to join in the negotiations with a view to the successful conclusion of an international Convention.

Australia’s economic relations with the United States continued to be of major importance and it remained our second largest trading partner. There

54

were several commercial issues over the year which gave rise to difficulties. These included the imposition of a countervailing duty on American imports of Australian lamb and the discovery of the substitution of kangaroo meat for ex­ port beef. Consultations on these problems were, as usual, frank and directed towards achieving mutually satisfactory resolutions.

Notwithstanding the settlement early in the year of the long-standing Westinghouse case, in which four Australian uranium exporting companies had been sued in an American court, the extraterritorial application of United States domestic laws, particularly anti-trust laws, continued to be a matter of concern

in our relations. Australian objections to extraterritorial application, which are shared by a number of other countries, were acknowledged by the President during his meeting with the Prime Minister and were subsequently discussed between the Australian and United States Attorneys-General.

1981 saw the visit of three senior United States Congressional delegations, including one led by the Speaker of the House of Representatives, the Honor­ able T.P. O'Neill. These visits showed an increased awareness of and interest in Australia and its region among United States legislators and helped ensure that Australian attitudes and views were given appropriate currency in Con­ gressional circles. Other distinguished visitors from the United States included former President Gerald Ford and former Secretary of State, Dr Henry Kis­ singer

Canada The long-standing pattern of close consultations and co-operation between Australia and Canada on a wide range of international issues continued

throughout 1981. Direct relations also were further strengthened during the year. As part of a North American visit, the Minister for Foreign Affairs held talks with the Canadian Secretary of State for External Affairs, Dr MacGuigan, during March. The Prime Minister, Mr Fraser, visited Ottawa in June for talks with Mr Trudeau. A nuclear co-operation agreement, replacing an earlier

agreement on co-operation in the peaceful uses of nuclear energy, was signed in March and a revised double taxation agreement entered into force the fol­ lowing month. Officials met in Ottawa in November for exploratory discussions regarding the future of Canada-Australia trade and economic relations.

Canadian official visitors to Australia included the Minister of State for Mines, the Hon Judy Erola, the Premier of Ontario, Mr William Davis and Senator Sid­ ney Buckwold, who, representing the Minister of State for Trade, Mr Lumley, announced Canada’s intention to open a Consulate and Trade Office in Perth.

Prime Minister Trudeau led the Canadian delegation to the Commonwealth Heads of Government Meeting in Melbourne.

Caribbean Consultations during the preparations for CHOGM, including visits by Members of Parliament as emissaries of the Prime Minister, helped to strengthen Austra­ lia's links with the Commonwealth Caribbean countries. Australia was repre­

sented at the independence ceremonies in Belize (21 September) and Antigua (1 November) and arrangements are now under way for the accreditation on a non-resident basis of the Australian High Commissioner in Jamaica to the two countries.

55

An element in Australia’s relations with both Jamaica and Guyana is our membership of the International Bauxite Association (IBA), in which Australia continued to play an active role in 1981, In November Canberra was host to the eighth meeting of the Council of Ministers of the I BA—the first such meet­

ing held in Australia—during which an Australian was appointed as the next Secretary-General of the Association.

The Prime Minister, Mr Fraser (right) being greeted by Mexican President Lopez Portillo during Mr Fraser's visit to Mexico in June.

Central and South America Australia's relations with Latin America became more diverse during the year. Relations with Mexico were consolidated by the Prime Minister's visit in June for talks with President Lopez Portillo on a range of international issues, includ­

ing, in particular, increased international concern to see the North-South dialogue resumed. During the visit, an agreement on co-operation in science and technology was concluded—our first formal agreement with Mexico. As the first formal exchange under that agreement, a delegation of Australian sci­ entists and technologists, led by the then Secretary of the Department of Sci­ ence and Technology, Dr John Farrands, visited Mexico in September. The mission sought to identify, from the wide range of options, areas particularly suited to future exchanges, including agriculture, forestry, fisheries, industrial technology, energy research, nutrition and health.

The Governor-General, Sir Zelman Cowen, made a private visit to Brazil and Peru in June. The Deputy Prime Minister, Mr Anthony, visited Brazil and Argen­ tina in June for discussions on trade relations and developments in inter­ national commodity trade, in particular on agricultural and mineral products and common interests in overcoming obstacles to that trade. The Leader of the Opposition, Mr Hayden, visited Argentina, Brazil and Peru during the year.

Australia continued to demonstrate its interest in developments in inter- American affairs by having an observer attend the eleventh session of the Or­ ganisation of American States held in St Lucia in December.

56

Europe

Western Europe

Australia’s close and long-standing relations with Western Europe continued to develop satisfactorily during 1981, although, as in previous years, our mutual interests and dealings on a wide range of international and bilateral matters contrasted with difficulties with the European Communities over trade issues.

During 1981 Western concern over Soviet involvement in Afghanistan was further heightened by developments in Poland which threatened to bring Soviet intervention. Australia monitored closely Western European responses to the Polish situation and further strengthened contacts with many Western European

Governments on this and other important security questions. The tendency of EC member states increasingly to co-ordinate their foreign policy positions was particularly evident. The general trend in international relations in 1981 under­ lined the desirability of closer liaison among members of the Western alliance.

Visits to Western Europe by a number of Australian Ministers served to con­ solidate our links with a number of countries. The Prime Minister's visit to Brit­ ain for the wedding of the Prince of Wales permitted discussions not only with the British Prime Minister, Mrs Thatcher, but also with other world leaders, in­ cluding Presidents Mitterrand of France and Sadat of Egypt and a number of

Commonwealth Heads of Government. The Foreign Minister visited Britain and France in June and Belgium and the Federal Republic of Germany in Decem­ ber. The Minister for Industry and Commerce, Sir Phillip Lynch, visited Britain and Malta, and, as in previous years, attended the European Management

Forum in Switzerland. The Attorney-General, Senator Durack, visited Britain and France. The Minister for Immigration and Ethnic Affairs, Mr Macphee, visited Britain and the Federal Republic of Germany, both of which have been impor­ tant sources of immigration to Australia. The Defence Minister, Mr Killen, paid an official visit to Greece to attend ceremonies to mark the 40th anniversary of the Battle of Crete. Following the Australia-EC Ministerial consultations in Brus­

sels in December, attended by the Minister for Trade and Resources and the Foreign Minister, Mr Anthony paid a successful visit to Spain.

Western European visitors to Australia included Mrs Thatcher, President Kyp- rianou of Cyprus and the Maltese Minister for Justice, Lands, Housing and Par­ liamentary Affairs, Dr Brincat, all of whom attended CHOGM. Other visitors were the Finnish Education Minister, Mr Stenbaeck, the Austrian Interior Minis­ ter, Mr Lane, the Social Affairs Minister of the Netherlands, Prof. Alberda, the

57

The Governing Mayor of West Berlin, Dr Richard von Weizsacker, and the Minister for Foreign Affairs, Mr Street (left) looking into East Berlin.

FRG Deputy Foreign Minister, Dr Flamm-Brucher, and the Under Secretary of the Italian Foreign Ministry, Mr Belluscio. A meeting between the Foreign Minister and the Heads of Australian mis­ sions in London, Paris, Bonn, Brussels and the OECD took place in June dur­ ing Mr Street’s attendance at the OECD Ministerial Council meeting in Paris.

Eastern Europe

USSR

Australia’s relations with the USSR remained at a low level as a result of the Soviet invasion and occupation of Afghanistan. The Australian Government considers that its dealings with the Soviet Union cannot be divorced from the latter’s international behaviour and that the USSR should not be allowed to pursue a policy of military adventurism without incurring penalties in its inter­ national relations. Accordingly, in conjunction with our Western allies, the Gov­ ernment had imposed a number of restrictions on Australia’s relations with the Soviet Union early in 1980 in response to the invasion of Afghanistan. These measures included the imposition of a partial grains embargo, suspension of

58

cultural, scientific, academic, trade union and sporting exchanges, a ban on the use of Australian ports by Soviet cruise vessels, cessation of co-operation in fisheries and civil aviation matters, cancellation of scheduled official talks, and suspension of official visits. In April 1981, when the United States lifted its

partial grains embargo on the Soviet Union, Australia followed suit on the grounds that the only basis on which an embargo could be maintained was that it be effective. The Government's decision to lift its partial embargo and later to relax restrictions on contacts with the USSR for some commercial pur­

poses in no way represented a lessening of Australian opposition to unaccept­ able Soviet policies. Other measures affecting the relationship with Moscow remain in place reflecting the Government's view, as clearly expressed in the United Nations and directly to the Soviet authorities, that the Soviet Union has

not given any cause for the discontinuance of strong condemnation of events in Afghanistan. The evolving situation in Poland and Soviet pressure upon that country which contributed to the declaration of martial law on 13 December has given Australia added reason for caution in its dealings with the Soviet

Union, although normal diplomatic contact has continued. The impact of Soviet policies was the principal subject of discussion at a meeting between the Foreign Minister and the Heads of Australian diplomatic posts in Bonn, Moscow, Warsaw, Berlin, Belgrade and Vienna which took place during Mr Street’s visit to the Federal Republic of Germany in December.

Poland

Australia monitored developments in Poland closely throughout the year. The visit to Poland in November by the Minister for Foreign Affairs gave concrete expression to the Government’s and public’s interest and anxiety at the de­ veloping situation in Poland and enabled the Minister to talk to the principal figures involved— Prime Minister Jaruzelski, Archbishop Glemp and ‘Solidarity’

leader Walesa. The imposition of martial law in Poland on 13 December was a great setback to hopes that the Polish people would be able to fulfil their own aspirations for genuine national reconciliation and reform. The Australian Government con­

demned the imposition of martial law both in public statements and in repre­ sentations to Polish officials and called for an early return to full civil and trade union liberties. It was particularly disturbing that strong Soviet pressure upon Poland and interference in its affairs was a factor in the imposition of martial

law.

Others

Relations with other governments in Eastern Europe continued to be conducted on a normal basis. The situation regarding human rights in Eastern Europe continues to attract interest in the Australian community, along with that of fam­

ily reunion cases. A Hungarian parliamentary delegation visited Australia for discussions with their Australian counterparts during the year. The Premier of Serbia paid a visit in March at the invitation of the State Governments of New South Wales, Vic­ toria and South Australia. The visit was a manifestation of the good relations

which have developed between Australia and Yugoslavia.

59

Middle East

The Arab-lsraeli conflict

There were few positive developments during the year in the continuing search for a comprehensive and lasting peace to the Arab-lsraeli dispute. Israel’s bombing of a nuclear installation in Iraq in June, the extension of Israeli law and jurisdiction to the occupied Golan Heights in December and continuing di­ visions among the Arab nations were among the factors adversely affecting

prospects for progress towards a settlement. Negotiations over autonomy for the Israeli-occupied West Bank of the Jordan and the Gaza Strip, arising out of the Camp David agreements between Egypt and Israel, were resumed but had made little progress by the end of the year. Egypt and Israel continued to hold very different interpretations of the meaning of ’autonomy’.

Other efforts to achieve resolution of the issue of displaced Palestinian people included the eight guidelines for a Middle East peace laid down by Crown Prince Fahd of Saudi Arabia on 7 August. Particular attention was given to the seventh guideline, which would guarantee the right of all countries in the

Middle East to live in peace. Saudi spokesmen indicated that, under the guidelines, recognition of the state of Israel by Arab countries as part of an overall settlement would be acknowledged. Although the summit of the Arab League in Fez, Morocco, in late November did not endorse the Fahd peace

proposals, Saudi Arabia remains committed to them and it is expected that further efforts will be made to develop the initiative during the coming year. Israel, however, unequivocally has rejected the Saudi plan.

Another more positive development during the year was the signature on 3 August by the Governments of Egypt and Israel, with the United States as wit­ ness, of a protocol to establish a Sinai Multinational Force and Observers to monitor the withdrawal of Israel from the Sinai Peninsula in accordance with the Camp David accords. A number of countries, including Fiji, Colombia and Uruguay, agreed to join the United States in making up the peace-keeping force. On 22 October the Australian Prime Minister stated in Parliament that, subject to certain conditions including significant European participation, Aus­ tralia also would participate in the Force. (Early in 1982, following the accept­ ance of participation in the force by Britain, France, Italy and the Netherlands, Australia’s decision in principle to take part was confirmed.)

60

The late President Anwar Sadat of Egypt. Photo from Egyptian State Information Service.

Egypt President Sadat, whose courage and determination led to the signing of the Camp David agreements and the Egypt-lsraeli peace treaty, was assassinated in Cairo on 6 October. In a tribute the next day, the Australian Prime Minister said there could be no finer memorial to the late President than the establish­

ment of a comprehensive peace in the Middle East. In Egypt the transition of power to President Mubarak took place smoothly. He committed his Government to national unity and to improving the country's economic performance. For the Egyptian Government the return of the final third of the Sinai remains a major national objective. President Mubarak has

reassured Israel of Egypt’s continuing commitment to the peace agreement. At the same time, he has carefully sought to avoid placing any obstacles in the way of improvement in relations between Egypt and other Arab countries.

Israel

The elections held in Israel on 30 June returned the Begin Government to power. On 4 August, the Likud reached agreement on a coalition with three other parties—Agudat Israel, the National Religious Party and Tami. The guidelines issued by the new Government for the future of the Occupied Ter­

ritories —which reiterated Israel’s claim to sovereignty over the West Bank and Gaza as an ‘integral part of Israel’s security—reflected the strongly nationalis­ tic and religious character of the new Government. On 30 November the United States signed an agreement on strategic co­

operation with Israel. It suspended the agreement in December as a sign of its disapproval over Israel’s application of jurisdiction to the Golan Heights. The Israeli Government then stated that the agreement had been cancelled.

Lebanon In Lebanon the most intense fighting since 1978 occurred in April in Beirut and

61

Zahle. Mediation efforts by the Arab Follow-up Committee and United States Presidential envoy, Mr Philip Habib, succeeded in ending the fighting, but the basic problems of restoring a viable state in Lebanon remain unsolved. The Australian Foreign Minister told the then UN Secretary-General, Mr Waldheim, on 10 July that Australia would support efforts within the Security Council to

reach a peaceful solution. Australia contributed $50 000 to an International Committee of the Red Cross appeal for funds to expand its operations in Lebanon.

Iran and Iraq The war between Iran and Iraq continued throughout the year. Iran regained territory on the southern and central fronts in the last quarter. International

mediation efforts by the Organisation of the Islamic Conference, the Non- Aligned Movement and the Special Representative of the UN Secretary- General met with little or no success. Three Iraqi air attacks on Kuwait demon­ strated the risk of the spread of the war to neighbouring countries. Both Iran and Iraq were suffering increasing economic damage from the war by the end of 1981.

Within Iran, the revolutionary clergy, led by the Islamic Republican Party, es­ tablished firm control over the institutions of government, but provoked violent opposition from the socialist leaning Mujahideen-e-Khalq. A National Resist­ ance Council estalished in Paris by the Mujahideen-e-Khalq leader, Rajavi, and by former President Bani Sadr were reported to be attracting support, but the clergy, despite assassinations of several leaders, remained firmly in control. The Australian Government and Parliament made known their deep concern about the persecution of Baha’is and other religious minorities in Iran, but Ira­ nian authorities continued to deny any religious discrimination.

The Gulf A Council for Co-operation of the Arab States in the Persian (Arabian) Gulf was established at a meeting of the Heads of State of Bahrain, Kuwait, Oman, Qatar, the United Arab Emirates and Saudi Arabia on 25 and 26 May. The

Council is intended to promote regional co-operation in response to strategic pressures without, as the Saudi Foreign Minister put it, forming ’a bloc against anyone’. The Australian Government has welcomed the formation of the Coun­ cil which will assist the stability of a region of major strategic concern to Aus­ tralia and could provide an avenue for economic and social development.

Relations with Australia Diplomatic relations were established with North Yemen, Oman and Qatar dur­ ing 1981, with the Australian Ambassador in Jeddah being accredited on a

non-resident basis. Australia’s economic links with the Middle East grew during the year, al­ though by the end of 1981 future prospects as a result of Iran’s foreign ex­ change problems were causing concern. Exports were worth about $1500 mil­ lion and imports, principally oil, about $1850 million. The Deputy Prime Minister and Minister for Trade and Resources, Mr Anthony, visited Bahrain, Egypt and Saudi Arabia in March. The Omani Minister of Commerce and Industry, Sheik Mohammed Zubair, signed an agreement on trade, economic and technical co-operation in Canberra on 20 October.

62

Africa

Black Africa

1981 saw considerable activity in Australia's relations with the independent states of Africa. The Commonwealth Heads of Government Meeting in Mel­ bourne in September-October provided a focus for this activity and repre­ sented something of a benchmark in Australia’s relations with black Africa. The

prominence of African issues on the agenda was evidence of the increasing assertiveness and influence of African countries in world affairs. The presence in Australia of the leaders of 15 Commonwealth African countries provided the opportunity for close consultation at senior political level and for African lead­ ers to gain an increased understanding of Australia. President Kaunda of

Zambia made a state visit immediately prior to CHOGM and post-CHOGM tours were arranged for a number of African delegations. Australia sought during 1981 both to consolidate its ties with those African countries with which it has already enjoyed friendly relations and to give

greater substance to relations with other countries and with the more important regional and pan-African organisations. These efforts were welcomed in Africa where increasing interest was shown in Australia as a source of support, both political and economic.

African perceptions of Australia as a country that has much to offer them were reflected in the number of visitors to Australia during the year and in the wide range of areas in which we can offer expertise. Attention was given to Australian technology and its applicability to African conditions (dry land farm­

ing, water conservation techniques, transport and communications were sub­ jects of interest), administration and management of the public sector, oper­ ation of a federal system of government, Australian legal and parliamentary practice and the achievements of Australian academic institutes. A number of

countries investigated the growth of commercial exchanges with Australia. Zimbabwe and Nigeria continued to recruit Australian teachers, with the result that there are now over 100 teaching in Zimbabwe and a smaller number in Nigeria.

Two prominent visitors representing African organisations were the Deputy Director-General of the Organisation of African Unity (OAU), Mr Ono, and Chairman of the Supreme Council for Sport in Africa, Mr Ordia. A number of Australian Ministers, senior Parliamentarians and officials visited Africa during the year. Visits to all Commonwealth countries by Prime Ministerial emissaries

not only assisted preparations for the Commonwealth Heads of Government

63

A Zimbabwean trade mission visited Australian capital cities in May to identify opportunities in the Australian market for Zimbabwe's exports. Talks took place between (from left to right) Mr Ft. J. Sampson, President of the Confederation of Zimbabwe Industries; Mr C. Murapa, Under Secretary, Export Promotion, Zimbabwe Ministry of Trade and Commerce; Mr J. D. Anthony, Australia's Deputy Prime Minister and Minister for Trade and Pesources; and Mr D. C. Palmer, representative of the Associated Chambers of Commerce of Zimbabwe. AIS photo.

Meeting but gave added substance to Australia’s relations with these coun­ tries. Australian diplomatic representatives followed closely all major meetings of the OAU and also attended meetings of the Southern African Co-ordination Development Conference. Australia has been an active supporter of this re­ gional organisation since its establishment last year and has offered assistance in a number of areas, including transport. The growth of Australian relations with black Africa also was reflected in an increase in diplomatic representation. Non-resident Australian accreditation was extended to Sierra Leone, the Gam­ bia and Mozambique. Uganda opened a resident mission in Australia and Aus­ tralia agreed to requests from Mali, Somalia and Senegal to establish non­

resident accreditation to Australia. Because of staffing and resource con­ straints, Australia was obliged to decline requests from a number of African governments to upgrade or establish representation in their countries. The Government continued to monitor closely developments in East Africa and in the Horn of Africa, including the conflict in Ethiopia. Early in the year the Government decided to increase its assistance to alleviate African refugee problems, which are particularly pronounced in the Horn area, with a pledge of $10 million. A close watch also was maintained on developments in the Indian Ocean, as an area of direct political and strategic significance for Australia. Concern was expressed over an attempted coup d'etat in the Seychelles. Kenya and Seychelles welcomed the increase in Australian naval visits.

Southern Africa The Australian Government continued to follow closely efforts to bring Namibia to independence from South African control. It welcomed efforts by the five- member Western contact group (US, UK, France, ERG and Canada) to break the impasse reached in negotiations with South Africa and the ‘front-line states' to achieve a peaceful settlement in Namibia. It viewed with concern the escala-64

tion of conflict in Namibia and its extension by South Africa into Angola. The Government was concerned not only at the possible consequences for re­ gional stability in southern Africa, but also about the wider international impli­ cations in the East-West context of an extension of the conflict. Australian rep­

resentatives made clear on several occasions that Australia supported the United Nations plan for the peaceful achievement of independence in Namibia, condemned South African incursions into Angola as a violation of the sovereign territory of another state, and urged the South African Government not to per­

sist in its campaign of military activity in Namibia and against the states border­ ing South Africa. The Government maintained its role in the United Nations Council for Namibia and its commitment to provide a military engineering con­ tingent and support staff for a United Nations Transition Assistance Group

(UNTAG) for Namibia if this were sought by all parties to the negotiations. Elsewhere in southern Africa, the Government continued to give special at­ tention to strengthening its relations with Zimbabwe and looked for practical ways of supporting that country’s development efforts during its critical first

years of independence. In March, the Minister for Science and Technology, Mr Thomson, represented Australia at a major conference of aid donors organised by the Zimbabwe Government. His announcement that Australia would double its assistance to Zimbabwe from ten to twenty million dollars for the period up

to the end of 1984 was warmly received.

Australia’s relations with South Africa continued to be strained because of the latter’s failure to make any moves to dismantle the policy of apartheid and the unresolved Namibian situation. The Government noted statements by South African spokesmen that some of the more objectionable elements of apartheid would be removed, but continued to look for clear evidence of South African

intent to alter the fundamental legislative framework of apartheid. Difficulties with South Africa were exacerbated by the controversial Springbok rugby tour of New Zealand, which directed attention to Australia’s policy of eschewing

contact with official South African sporting teams. The tour carried serious im­ plications for both the Melbourne CHOGM and for the 1982 Commonwealth Games and Australia was disappointed that it went ahead despite significant international opposition. Our decision to deny transit facilities to the Springbok team was welcomed in Africa and elsewhere. The Government, in strict adher­ ence to the terms of the Gleneagles agreement among Commonwealth coun­ tries, has refused to allow teams or individuals claiming to represent South Af­

rica to participate in sporting competitions in Australia. Australia’s firm opposition to apartheid was reflected in other ways. In Sep­ tember, we made a major demarche to South Africa, in consultation with West­ ern European countries, over the re-settlement of squatters in Capetown, ban­

ning orders and death sentences, detentions of trade unionists and the incur­ sion into Angola. The demarche was rejected. Consistent with our opposition to the creation of ‘homelands’ for South Africa’s black peoples, we did not recog­ nise South Africa's declaration of the independence of Ciskei in December.

Moreover, the Government advised Qantas that it was opposed to the resump­ tion of a Qantas service to South Africa. The strength of Australian opposition to apartheid was also reflected in voting on apartheid resolutions in the UN General Assembly and in Australian attendance in an observer capacity at an

international conference on sanctions against South Africa, held under United Nations auspices, in Paris in May.

65

South Pacific

Island States

Australian interests in the Pacific have taken on new directions over the last decade, with the attainment of independence or autonomy by some dozen former South Pacific territories. The strategic concern for Australia is paramount, particularly in the Melanesian islands to the north and east of Aus­ tralia (Papua New Guinea, Solomon Islands, Vanuatu, New Caledonia and Fiji) with which we also have long historical associations. Australia, the leading de­ veloped and industrialised nation in the region, also has a major responsibility to assist where requested the economic and social development of newly- independent island states which in many cases have small populations and very limited resources.

These unique developmental problems mean that Australian co-operation and assistance, whether in trade, aid or any other sphere, must be sufficiently flexible and innovative to cope with the challenges. The result has been evolu­ tion of a special relationship not shared by countries outside the South Pacific

in their relations with Australia. Accordingly, special aid programs have been developed to provide direct budgetary support for national development banks. Similarly, the South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA), which permits non-reciprocal duty free access to Australian (and New Zealand) markets for most exports from the island states, was implemented in January 1981 and is unique among Australia’s inter­ national trade agreements. Flexibility also has been practised in civil aviation matters, so that one of Australia’s domestic carriers, Ansett, now has a direct interest in Vanuatu’s international airline and is negotiating with other South Pacific states. In finance, a number of the island countries have been granted the right to hold foreign exchange reserves in Australia beyond normal restric­ tions. More, however, needs to be done and the possibility of further conces­ sional arrangements to meet the needs of our South Pacific neighbourhood are under consideration.

Australia continued to participate on a basis of equality with its Pacific island neighbours in regional organisations. The Deputy Prime Minister, Mr Anthony, led the Australian delegation to the 12th South Pacific Forum in Vila which was also attended by the Foreign Minister. At the Forum, Australia joined with other member states in unanimous condemnation of proposals for nuclear waste disposal in the Pacific Ocean, calling, in particular, on Japan and the United

66

On 8 July, Vanuatu was admitted to the United Nations as its 155th member, Vanuatu's Prime Minister, Mr Walter Lim, pictured during the Commonwealth Heads of

Government Meeting in Melbourne in September-October. AIS photo.

States to dispose of such waste within their own territories; and of continued nuclear weapons testing by France at Mururoa Atoll in French Polynesia. Aus­ tralia also supported a Forum resolution on self-determination for the remaining non-independent regional territories, in particular the French possessions of

New Caledonia and Polynesia and supported the despatch of a Forum mission to Paris (now scheduled for early 1982) to discuss the matter with the Mitter­ rand Administration. The Government closely followed events in New Caledonia where there were increased tensions following the assassination of a leading figure in the independence movement in September. In Parliament on 19

August, the Foreign Minister stated that Australia’s preference was for early in­ dependence for New Caledonia. The 21st South Pacific Conference was held in Vila in October, Australia’s delegation being led by the Minister for Administrative Services, Mr Newman.

In response to requests from island countries, Australia announced its agree­ ment to assist the status of women in the region, including a grant for a women’s centre to be established at the headquarters of the South Pacific Commission (SPC) in Noumea. Australia hosted the ninth regional Transport

Minister’s meeting (incorporating the regional shipping council and the regional civil aviation council) in Cairns in July 1981. Special financial assistance was provided, including a loan of $3 million from Nauru, to the ailing regional government-owned shipping company, the Pacific Forum Line. The activities of the Forum Fisheries Agency and the SPC skipjack tuna survey and assessment

program continued to be supported by Australia, which granted an additional $150 000 to assist an expanded tuna and billfish research program. Australia joined New Zealand and the United States in offering, through ESCAP, a pro­ gram for off-shore mineral prospecting in the region, which is scheduled to

being in the first quarter of 1982. The Soviet Union had offered a similar project, which was rejected by the island states, but Soviet interest in pressing oceanographic research in the region continues. Australia continued to work for close relations with individual island states.

Our long-standing relations with Papua New Guinea and Fiji continued on a strong base. Australian diplomatic representation in the region was extended with the opening of a mission at Tarawa in the newly independent state of Kiribati. This brings to nine the number of Australian posts in the region.

The Prime Minister of Papua New Guinea, Sir Julius Chan, at CHOGM in Melbourne. AIS

photo.

A meeting between the Foreign Minister and the Heads of Australian mis­ sions in Papua New Guinea, Fiji, Solomon Islands, Vanuatu, Tonga, Western Samoa, Nauru, New Caledonia and New Zealand was held in Vila following the South Pacific Forum in August.

New Zealand There were some short-term difficulties apparent in Australia’s traditionally close relations with New Zealand during the year. The Springbok rugby tour of New Zealand was one source of these. The Minister for Foreign Affairs several times expressed the Australian Government’s support for the New Zealand Government’s opposition to the tour, but Australian hopes that the New Zea­ land Rugby Football Union Council would call off the tour were not fulfilled. Australia remains concerned about the possible consequences which the tour will have for the success of the Brisbane Commonwealth Games later in 1982.

The traditional right of New Zealand citizens to unrestricted entry to Australia was preserved when, in July 1981, the requirement that all people arriving in Australia must carry a valid passport took effect. New Zealand remains the only country whose citizens do not require a visa to enter Australia.

The Foreign Minister visited Wellington in June to take part in the meeting of the ANZUS Council, hosted by New Zealand in 1981, and to hold talks with New Zealand’s Foreign Minister, Mr Talboys, and the Acting Prime Minister, Mr MacIntyre. The New Zealand Prime Minister, Mr Muldoon, attended CHOGM in

Melbourne. Discussions between Ministers and officials on the possible form of a closer economic relationship between Australia and New Zealand continued throughout the year. Although restricted by the level of funds, the Australia New Zealand Foundation continued its efforts to foster closer links between Australia and New Zealand.

68

Information and cultural relations

Information activities

The Department of Foreign Affairs co-ordinates the formulation and implemen­ tation of Australia's information program and chairs the Inter-departmental Committee on Information Policy. It also responds to a wide range of enquiries and requests for information from individuals and organisations both within Australia and overseas.

In accordance with the recommendations of this Committee, regional infor­ mation and cultural relations conferences were held during 1981 in Buenos Aires, San Francisco and Tokyo for Australian missions in the Americas, the Caribbean and North Asia respectively as part of a rolling program of review­

ing information and cultural activities in each region at least once every five years. The conferences were attended by representatives from all Australian diplomatic and consular posts in the regions and from the Australian Infor­

mation Service, Australia Council and other bodies such as the ABC, Australian Film Commission, Australian Tourist Commission, Qantas and the Departments of Immigration and Ethnic Affairs and Trade and Resources. The conclusions and recommendations of the meetings were brought to Ministerial attention.

Cultural relations The Department’s overseas cultural relations program is aimed at assisting the achievement of the Government’s overall foreign policy objectives and its em­

phasis reflects foreign policy priorities. It seeks to strengthen links between Australians and the people of other countries, to encourage understanding of each other’s cultures and ways of life, and to promote awareness of the range and standard of Australia's cultural activity and of the diversity of Australian

society. Australia has 16 cultural agreements, of which the two most recent, those with China and Greece, came into effect in 1981. Cultural agreements oblige the signatories to encourage co-operation in cultural exchange and

facilitate such co-operation. At the same time, our overseas cultural relations program is conducted on a world-wide basis and takes in many countries with which we have no formal cultural agreements. The cultural relations program includes overseas tours by Australian perform­

ing groups and exhibitions, film events, sports coaching assistance, visit schemes (which enable selected overseas visitors to become better ac-69

A

The winner of a calligraphy competition conducted by Radio Australia, Miss Masako Takizawa, gave a demonstration of her work to the then Acting Controller of Radio Australia, Mr Geoffrey Ward, during Miss Takizawa's first prize holiday trip to Australia in June. AIS photo.

quainted with various aspects of Australian life) and the presentation of lib­ raries of Australian books to selected institutions overseas. Financial assistance to Radio Australia’s English language teaching broadcasts, student and teacher exchange, literary activities and the promotion of Australian studies at foreign universities through the endowment of chairs or assistance to courses and seminars, also are included in the cultural relations program.

_ ··--».

70

In 1981, cultural activities included tours of European countries by an exhibi­ tion of the art of the Aboriginal people of the Oenpelli area and an Australian ceramics exhibition, film events in the United States, Canada and Eastern Europe, a visit by the Sydney Dance Company and a group of Aboriginal ar­ tists, dancers and musicians to the United States, sports coaching assistance to Asian and South Pacific countries, a tour of ASEAN countries by the Early

Music D u o , assistance with the establishment of an Australian literature course at the University of Indonesia and with Australian literature seminars held in Europe, and visits to Australia by artists and crafts people from Asian coun­ tries.

To complement the activities of Australian missions abroad, a number of prominent political and community leaders, media representatives, Parliamen­ tary delegations and government officials were assisted to visit Australia during the year. Support was maintained for organisations set up to foster informal re­

lations with other countries, notably the Australia-China Council and the Australia-Japan Foundation.

Public affairs

The staff of the Public Affairs Branch of the Department, which handles re­ lations with the media, the Parliament and some contacts with the public, was cut during the year following a decision of the Review of Commonwealth Func­ tions that the public relations activities of the Branch should be reduced. Not­ withstanding its reduced resources, the Branch endeavoured to maintain a

satisfactory level of service to media and public enquiries. There was strong interest by the news media in foreign policy issues during the year and. the Public Affairs Branch maintained close contact with its rep­ resentatives. Officers of the Branch continued to provide journalists and editors with information and background on developments overseas and the Govern­

ment’s foreign policies The practice of arranging special background briefings for the media by experts on matters of particular interest also was maintained. Assistance was given wherever possible to sections of the Australian media

covering events overseas and, in particular, assistance to Australian television teams gathering material overseas was increased. All these activities reflected the continuing priority accorded by the Department to encouraging public awareness and understanding of foreign relations issues. Assisting the media

with information about the Commonwealth Heads of Government Meeting, both in the period leading up to and during the meeting, was a major responsibility in 1981. '

The Parliamentary Liaison Sub-Section of the Branch is responsible for the provision of information on foreign relations issues to Parliamentary committees and to individual Members and Senators. Information and briefings were pro­ vided in response to requests by the Senate Standing Committee and Joint

Parliamentary Committee on Foreign Affairs and Defence as well as backbench committees. The Department and overseas missions assisted a number of Parliamentary

delegations and individual Members of Parliament travelling abroad. The visits included fact-finding missions to China, Japan, India and Pakistan. During the year, the Parliamentary Liaison Officer accompanied Parliamentary delegations to Inter-Parliamentary Union meetings in Manila and Havana.

The Department sought to provide upon request speakers on foreign policy

71

topics at gatherings around Australia. Where possible, an officer was made available, either from Canberra or from the State offices of the Department, Un­ fortunately, financial restrictions during the year obliged the Department to de­ cline some invitations to provide speakers, both in State capitals and country towns.

The Department continued to publish the weekly bulletin, Backgrounder' This has two objectives: to supplement media coverage by disseminating full texts of policy statements and important communiques and to provide back­ ground to assist readers to make their own appraisals of international trends and their relevance to Australia. Backgrounder' is sent to Members of Parlia­ ment, the media, business and academic leaders and interested members of the public.

A list of publications produced in 1981 is at Appendix 6.

Historical Section

The principal function of the Department's Historical Section is the production of volumes in the series Documents on Australian Foreign Policy. This work in­ volves extensive research on the older records of relevant Departments and the collation and editing of volumes for publication by the Australian Govern­ ment Publishing Service. During 1981, the manuscript of Volume V, covering the period between July 1941 and June 1942, was completed and delivered for publication. By the end of the year work was well advanced on Volume VI, which covers the period from July 1942 to December 1943. In February 1981. the Foreign Minister officially launched a companion volume to the main docu­ ments series, entitled My Dear P.M., which contained the letters written by R.G. (later Lord) Casey, to S.M. (later Lord) Bruce between 1924 and 1929 when Bruce was Prime Minister and Casey was Australian Liaison Officer in London.

The Historical Section's other activities include answering a wide range of enquiries about the history of Australian foreign policy, together with liaison with other departments and the Australian Archives to ensure that the Depart­ ment’s older records are made available to the public under the terms of the present 30-year archival rule. During 1981, particular attention was given to planning implementation of the Archives and Freedom of Information Bills, which when proclaimed will have a substantial impact on the Department's

record management policies.

Library

Increased use was made in 1981 by library staff of bibliographic data-bases both through the Australian information network AUSINET and the overseas networks DIALOG and ORBIT. The Departmental Library also has contracted with a Melbourne company to supply computer-produced catalogues of the

holdings of Australian books in the reference libraries of Australian missions overseas. These will enable greater control of these valuable resources while making the collections more accessible to interested people. The Department's collection of United Nations publications and the docu­ ments of other intergovernmental organisations continued to grow and has been used increasingly as an important reference source by the Australian academic and governmental communities.

72

Australians abroad

Overseas travel by Australian citizens set a record in 1981. It is estimated that over one million "Australians left the country with the intention of remaining overseas for periods of less than twelve months. About 187 000 new passports were issued in Australia, an increase of 13 per cent over 1980. As the Depart­

ment of Foreign Affairs is responsible both for providing consular services to Australians abroad and for issuing Australian passports, it was closely affected by the increase in travel and by the changing characteristics of the Australian traveller.

Consular issues

Problems connected with age, illness, immaturity, lack of experience, lack of funds and crime placed increased demands on the Department’s consular staff, both overseas and in Australia. The combination of cheap fares, the

changing age groups travelling and the growing attraction for more out of the way destinations offering greater novelty than more traditional tours to Britain and Europe also have widened the Department's consular workload. During the year consular staff dealt with cases involving the deaths of 243

Australians overseas and the arrest of 199 Australians under the laws of other countries. A number of the deaths, and most of the arrests, arose from the use of or dealings in drugs, which now constitute a major problem for Australia’s consular service. Many Australians already have received sentences (which

are usually harsh by Australian standards) in foreign countries, and others were still on trial at the end of 1981. The Department continues to make every endeavour to warn Australian citi­

zens of the dangers of becoming involved with drugs overseas and of the fact that any visitor to a foreign country is subject to the laws of and penalties pre­ scribed in that country. Notwithstanding that in many countries the laws and penalties relating to drug offences are severe, unless it can be shown that a

foreign country is denying an Australian the justice which it would provide to its own citizens, the Australian Government has no standing to intervene. Accord­ ingly, it has been unable to accede to requests for intervention on behalf of Australian citizens who have received sentences in other countries. Neverthe­

less, the Department continued to bear in mind the possibility of negotiating prisoner exchange agreements with other countries which would benefit Aus­ tralian prisoners abroad. Australian missions and posts provided a wide variety of welfare and protec-

73

The Australian Customs drug detector dog unit during a drug search. AIS photo.

tion services overseas, as well as carrying out statutory functions and notarial acts. Many of the requirements for welfare assistance and protection arose from illness, or from the loss, theft or destruction of travel documents and money. Insufficient insurance—or lack of insurance—aggravated these prob­ lems and the Department continued to urge travellers to take out insurance appropriate to the area to which they are travelling. Many people are unaware of the very high cost of medical treatment overseas, the problems caused in

insurance claims by pre-existing health conditions and the sometimes serious financial penalties when illness or other causes prevent travellers keeping to schedules which may be a condition of cheap fares. The majority of recommendations made by the 1980 Joint Management Re­ view of Consular Services were implemented during 1981. Staffing constraints, however, prevented the Department from making significant progress towards the negotiation of agreements with other countries aimed at resolving problems

relating to dual nationality and property compensation.

Passports As part of the process of continuing to protect and improve the integrity of the Australian passport, the Department introduced a specially designed secur­ ity film for lamination over the photograph and signature of the bearer to passports issued from 1 January 1981. The transparent retro-reflective film is designed to reduce significantly the possibility of forgery and to increase the chances of detection of unauthorised alterations or substitutions.

Following recommendations by the Australian Royal Commission of Inquiry into Drugs on the tightening of identification procedures for passport issue, lim­ ited identification checks of passport applicants and of persons certifying the identify of applicants were introduced in Passport Offices throughout Australia in the latter months of 1981. These checks will be expanded as staff become available. Further measures to tighten passport issue and control procedures are under consideration and are to be progressively introduced during 1982.

The Government’s decision that all people, including Australian citizens, en­ tering Australia from 1 July 1981 are required to be in possession of a passport resulted in a substantial increase in applications for passports from Australians living in New Zealand and Australians intending to visit New Zea­

land. The strains imposed on Passport Offices in Australia were partly miti­ gated by the provision of additional staff. Australian posts in Auckland and Wellington also faced extremely heavy workloads over passport issues.

74

Management

General developments

One of the major management preoccupations for the Department during 1981 was the activity associated with decisions arising from the Review of Com­ monwealth Functions (RCF). A number of these decisions, announced by the Prime Minister in April, have had a significant impact on areas of the Depart­

ment’s operations, namely:

• A reduction in the activities and number of staff in the Public Affairs Branch;

• Abolition of the office of the Adviser on Science, Technology and the En­ vironment, with major functions transferred to the Department of Science and Technology;

• A review of the advisory bodies on Australia-Japan relations, with con­ sequent limited staff reductions;

• Reductions in functions and staffing at posts in London and Washington. The communications facilities located in London and Washington, which have both a local and regional role, have been examined through the RCF and are still under examination. Difficulties have been experienced with

reduced staffing levels for communications and technical support; • A review of the size of the central office of the Australian Development As­ sistance Bureau in order to achieve staff reductions through maximum

possible integration with the Department. The Department is concerned that new arrangements be effective, particularly given ADAB’s physical separation from the main part of the Department. The Bureau is to be re­ tained as a separate entity; and • A review with the Public Service Board and the Department of Education,

of the Australian Development Assistance Bureau's regional offices. This review is nearing completion.

With regard to the more general service-wide RCF decisions, the Depart­ ment's staff ceiling was cut by two per cent. This across-the-board reduction, together with other specific RCF cuts, meant a net reduction in the Depart­ ment’s staff ceiling from 4460 to 4127 over 1980.

Notwithstanding staff and financial constraints, the Department responded to a number of new initiatives by the Government during 1981, including opening new posts in Tarawa (Kiribati) and Bali (Indonesia). A Torres Strait Treaty

75

Liaison Office on Thursday Island also was opened. To help secure the neces­ sary resources to open these new posts, Ministers agreed to close the Consulate-General in Lae in Papua New Guinea. Savings here were offset against the costs of the new post openings.

There was a three per cent reduction in real terms in the level of funding available to meet the Department's operating expenses. This reduction has af­ fected particularly the overseas service, caused an increase in short-teim travel, led to curtailment of certain functions and has heightened management accountability.

Longer-term management problems facing the Department during the 1980s have been under study. In consultation with regulatory authorities, work in this area is expected to increase. The Department also has set in process detailed arrangements and training activities necessary to put into effect the Govern­ ment's Freedom of Information legislation which is expected to become law during 1982.

Staffing During 1981 the Department completed a comprehensive review of its staffing policies and implemented some major changes. The recruitment and promo­ tion system has been placed on the same basis as other departments of the Australian Public Service. The Department will maintain an annual intake of

Foreign Affairs trainees at Assistant Research Officer (graduate) level, while providing more opportunities for non-Departmental officers of the Public Ser­ vice to make a career in the Australian Foreign Service.

Conditions of service A joint review team established by the Public Service Board and assisted by the Department is undertaking a comprehensive examination of the system of overseas allowances and related matters. The Department hopes that a new system will be developed in order to make the calculation of overseas allow­ ances more comprehensible to recipients, more responsive to changing cir­ cumstances and more relevant to today's needs. The team is expected to make its report to the Policy Committee on Conditions of Service, chaired by a Commissioner of the Public Service Board, in 1982.

The lack of adequate medical facilities at many overseas posts continued to be a matter of concern to the Department. The question of establishing a Foreign Service Medical Unit within the Department is under close considera­ tion by the Public Service Board, the Department of Health and this Depart­ ment. Proposals have been drawn up by Foreign Affairs for the provision of some medical officers or nursing positions overseas.

Training In 1981 the Department conducted 36 courses attended by 539 officers of this and other Departments. An officer was seconded from the Public Service Board to conduct a review of the Department's training activities and im­ plementation of his recommendations is proceeding. The Department spent $235 000 on full-time and part-time language training.

76

Other initiatives in personnel development and training in 1981 included holding a staff development exercise at the Australian High Commission in Port Moresby, production of two audio-visual slide programs and development of an information seminar on the Freedom of Information legislation.

Financial administration

Departmental expenditure from the Consolidated Revenue Fund amounted to $659 968 000 in the 1980-81 financial year, an increase of 6.61 per cent over that of the previous year. Of this, $517 642 000 was for the overseas aid pro­

gram (see Appendix 2). The increase represents a reduction in real terms. A continuing trend in this direction, even though offset to an extent by the in­ creasing efficiency of the Department’s overall operations, must result in the growing inability of the Department to maintain past standards of service. De­

partmental revenue increased by more than one million dollars to $18 751 500. The Department participated with the Public Service Board and the Depart­ ments of Finance, Trade and Resources and Defence in a joint management review of overseas accounting arrangements. The major recommendations contained in the subsequent report have been endorsed by the Government and implementation of the proposed changes has begun. Full implementation

by late 1982 will result in one simplified overseas accounting system which will improve the Department's operational efficiency.

Audit

In October 1980, the Department's Internal Audit Section was re-organised with an increase in establishment from 16 to 20 positions. In 1981 30 overseas mis­ sions were reviewed. The Department’s audit program has been extended to include computer auditing and systems-based audits generally.

Property

Domestic

Plans to consolidate the Department's separate operations in the States were advanced during 1981. The Melbourne office, hitherto spread over three lo­ cations, was consolidated at the Commonwealth Centre. In Adelaide negotia­

tions are underway to have Foreign Affairs and ADAB co-located. In Sydney, it has been possible to accommodate the lodgement and processing sections of the Passport Office in the Commonwealth Centre, but total consolidation of the Department’s operations in Sydney is not immediately in prospect.

In Canberra, Derwent House is being refurbished with a view to co-locating all the separated segments of the Australian Development Assistance Bureau pending eventual co-location with the remainder of the Department. The eight- year program of refurbishment of the Administrative Building is proceeding with

stage one renovations covering essential services in the building.

77

It

Overseas

In co-operation with the Overseas Operations Branch of the Department of Administrative Services, negotiations took place in Riyadh (Saudi Arabia) and in Peking for the acquisition of land to permit construction of chanceries and necessary residential accommodation in each city. Consultants have been en­ gaged for the design of accommodation required.

During the year the Overseas Property Committee chaired by the Depart­ ment of Administrative Services met on a number of occasions and accorded priority in the 1982/83 financial year to the construction and/or acquisition of residential accommodation at posts where lease arrangements are either un­ available, unnecessary or uneconomic.

Security The maintenance of security for the protection of Australian representatives, information and property overseas has continued to be a growing problem for the Department in most countries. The wounding of the First Secretary in Cairo,

Mr John Woods, during the assassination of Egyptian President Sadat in Octo­ ber was a reminder of the risks to which staff are now exposed. The Department has endeavoured to devote greater resources to protection of staff and property overseas and the Government has increased the level of funding. In the 1981/82 financial year, some two million dollars is being spent on improving physical security at Australian missions and residences overseas. Other measures have included the provision of protected vehicles for use in certain posts and the acquisition of additional security equipment.

Communications The Department’s computerised communications network handled an increase in operational traffic of 12 per cent during 1981 without any increase in staff. The operational system in Canberra was improved by the addition of an IBM 3800 laser printing system for printing cables for distribution. As a result, the time for processing messages through the centre to user Departments has

been substantially reduced and the security of information improved. Mainten­ ance of the computerised communications system, initially performed under contract, is now undertaken by the Department's own technical staff. This changeover has been made possible by an extensive staff training program.

A major review of the Department’s international telecommunications facilities has begun with a view to overcoming some of the limitations inherent in the present network by making maximum use of technological developments. Both new technology communications equipment and operational innovations will be investigated, including the use of diplomatic radio which will be the subject of intensive examination in the coming year.

Information and general systems The year saw substantial progress in the Department’s word processing capac­ ity. Two centres, each of five work stations, were commissioned in August. Word processing facilities are expected to be upgraded in 1982-83.

78

Two word processing centres were commissioned in August Pictured with the Secretary of the Department of Foreign Affairs, Mr P. G. F.

Henderson, are (from left to right) Mrs Margaret Highmore, Ms Christine Brown and Mrs Mary Ghirardello.

Ombudsman The Ombudsman continued to deal with a number of grievances brought to his attention by Departmental officers. Nearly all were of an administrative nature and due to misunderstanding, oversight or a breakdown in communications

and were resolved satisfactorily through internal channels.

Special appointments Towards the end of 1981, Professor 0. Harries, a Principal Adviser to the Prime Minister, relinquished his position, in which he had divided his time between this Department and the Department of the Prime Minister and Cabinet, to be­

come Australian Ambassador to UNESCO in Paris. It was announced in November that Dr Coral Bell, a Senior Research Fellow in the Department of International Relations of the Research School of Pacific Studies at the Australian National University, would take up a position as Academic-in-Residence for 1982. Dr Bell is a specialist in international relations whose research has concentrated on the theory of crises and crisis-

management, along with the foreign policies of the United States and Britain.

79

w

Appendix 1—Organisation chart of the Department of Foreign Affairs at 31 December 1981

A ustra lia n D e velop m e nt Assistance Bureau

Regional O ffices “

DEPARTMENT OF FOREIGN AFFAIRS

SECRETARY -L e ga l Adviser— Assistant Legal Adviser

Policy Development _

Non-Govt. Organisations I nternational O rganisations -

Financial In s titu tio n s -

Manpower & Services

S ta tistics-

Strategic Planning U n it-

I ndonesia/ASEAN/ Malaysia “

PNG/S.E. A s ia -

South Asia /Africa/M iddle East South Pacific-

Program Planning & Development “

Food Aid U n it-

A ge n ts, C o n su lta n ts and E x p e rts -

Appraisals & Evaluation _

_ D eve lo p m en t__ Training

·,— , Policy

[— Development— — & Co-ordination i D

| E

Policy, Training

| p

— O rganisations— & Liaison & Organisations T

I Y

! s

I E

!_c

— ! R

E

Services ] A — I R

! Y

! A

Ι-S o u th East Asia-, Programs

I Pacific, Asia,__

_ I A f r ic a Programs Bilateral

Programs

Program

& Review

! D

Protocol -

Historical Research--C h ie f of P rotocol--E d ito r o f H isto rica l- Documents

Training I Foreign Service__

Personnel & Organisation D evelopm ent__I Adviser

S taffing,

Technical

Engineering & D evelopment —

Diplomatic S ecurity — C om m unications/Registry —

.Technical™ Services

L an gu a ge Training and Heads of Mission I___Personnel____ y — I Personnel Policy -

Property & Offices Services

Overseas & General A ccounting

Personnel S ervices —

A d m in is tra tiv e _ Services

Information & General Systems

Organisation & Resources Planning —

Audit

ADP

Post Liaison & Review —

__ Planning &_ Review

anage -& F o re ig n - Service

t

Europe, —Americas— & New Zealand _ A m e rica s & __

New Zealand

" United States of America

- New Zealand

_ Canada/Caribbean/Latin America

.South East A s ia - & South Pacific

-P u b lic Affairs-

Pa

South Pacific

- C

News & Media & Pari. Liaison

B ackg ro un d er

Papua | Papua New Guinea

— New G u in e a s — _ ....

Dor'iriz' I— South Pacific

-South East Asia —

South Pacific

Philippines/Thailand/Burm a

— Indonesia

ASEAN

__Malaysia/Singapore

Economic Policy-

Energy

_ Economic Organisations

Economic Policy Pool

' I Energy

L O.E.C.D./E.C.

-c UN Economic Agencies Maritime Resources

_ N o rth & South.

I------- N

South West Asia Indo-China

Japan China/Korea

ONA/Cabinet Liaison Policy Co-ordination & Secretariat

International . Organisations,_ Africa & Middle East

" Central & Southern Africa . Middle East & North Africa

_ In te rn a tio n a l Organisations

ilicy &

~ UN Social & Technical

- UN Political . Commonwealth & Multilateral Organisatic

Defence ·&---------

I Disarmament I

in — 1 -------- Nuclear--------1 - N u c le a r- Safeguards Nuclear Pool

Consular, — Information— & Cultural

Plans & Policy

Defence Projects

— Programming

Liaison

Cultural Exchanges — Academic Exchanges/SOVF

— _Information & Publications

__Library

- Passports | Consular, Policy, Procedures & Training

Refugees Immigratio

- Consular Operations

-L e ga l & Treaties ts

and Asylum

State Offices General Legal & - j Treaties —

j Immigration Refugees & Asylum

General Legal Treaties

" - C UN Legal

D e cem ber 1981

80

Appendix 2—Annual expenditure

Function 1979-80

$000 1980-81 1981-82

Estimated

Salaries and payments in the nature of salaries .. . 17 273 19 292 22 126

Administrative expenses ................................... 1 1 364 13 572 15 402

Other services ............. 2 003 3 366 3 470

International organisations ...................... 21 172 22 631 24 523

Capital works' ....... — 1 110 391

Sub total 51 812 59 971 65 912

Australia-Japan Foundation Salaries and payments in the nature of salaries . . . 188 240 271

Administrative expenses ........................................ 82 91 94

Other services 535 1 000 1 000

Sub total 805 1 331 1 365

Overseas Service Salaries and payments in the nature of salaries . . 46 293 52 320 56 241

Administrative expenses ........................................ 16 753 20 449 21 806

Capital works .......................................................... 290 — -

Sub total 63 336 72 769 78 047

Australian Development Assistance Bureau Salaries and payments in the nature of salaries . . . 7 329 8 526 9 153

Administrative expenses ........................................ 1 145 1 367 1 391

Foreign aid .............................................................. 486 818 507 749 592 589

Sub total 495 292 517 642 603 133

Australian Secret Intelligence Service .................... 7 800 8 255 9 558

TOTAL 619 045 659 968 758 015

' Capital works expenditure in 1980-81 principally was for work performed in Australia

Appendix 3— Staffing at 30 November 1981

Executive Council Appoint­ ments

Foreign Affairs Officers

Consular & Admin. Staff

Keyboard &

Technical

Australian Develop­ ment Assistance

Bureau

Locally Engaged Staff Total

Australia _ 208 686 261 429 1584

Overseas 71 189 218 278 29 2063 2848

TOTAL 71 397 904 539 458 2063 4432

Appendix 4— Diplomatic representation to Australia at 31 December 1981

Resident Argentina German Democratic Malaysia Sweden

Austria Republic Malta Switzerland

Bangladesh Ghana Mauritius Thailand

Belgium Greece Mexico Turkey

Brazil Holy See The Netherlands Union of Soviet

Britain Hungary New Zealand Socialist

Burma India Nigeria Republics

Canada Indonesia Norway United States of

Chile Iran Pakistan America

China Iraq Papua New Guinea Uganda

Cyprus Ireland Peru Uruguay

Denmark Israel Philippines Venezuela

Egpyt Italy Poland Vietnam

Fiji Japan Portugal Yugoslavia

Finland Jordan Romania

France Kiribati Singapore

Federal Republic Korea, Republic of South Africa

of Germany Laos Spain

Lebanon Sri Lanka

Libya

Non-resident Country Resident in

Bolivia Kuala Lumpur

Bulgaria Jakarta

Czechoslovakia Jakarta

Guatemala Tokyo

Kuwait Tokyo

Mongolia Tokyo

Nepal Tokyo

Solomon Islands Honiara

Appendix 5—Australia’s overseas missions at 31 December 1981 Resident

Missions are located in capital cities and also in other cities mentioned. The list includes posts staffed solely by the Departments of Trade and Resources (11) and Immigration and Ethnic Affairs (4).

Algeria Argentina Austria Bahrain

Bangladesh Belgium Brazil (Rio de Janeiro) Britain (Edinburgh, Manchester) Burma Canada (Toronto, Vancouver) Chile China Cyprus

Denmark Egypt Fiji France

Malaysia Malta Mexico Nauru The Netherlands

New Caledonia New Zealand (Auckland) Nigeria

Pakistan Papua New Guinea Peru Philippines Poland Portugal Saudi Arabia (Jeddah only) Singapore Solomon Islands

82

German Democratic Republic South Africa (Capetown, Federal Republic of Germany Johannesburg) (Cologne, West Berlin) Spain

Ghana Sri Lanka

Greece Sweden

Holy See Switzerland (Geneva)

Hong Kong Syria

India (Bombay) Tanzania

Indonesia (Bali) Thailand

Iran Tonga

Iraq Turkey

Ireland United Arab Emirates

Israel Union of Soviet Socialist Republics

Italy (Milan, Messina) United States of America (Chicago

Jamaica Honolulu, Los Angeles

Japan (Osaka) San Francisco)

Jordan Vanuatu

Kenya Venezuela

Kiribati Vietnam

Korea, Republic of Western Samoa

Kuwait Yugoslavia

Laos Zambia

Lebanon Zimbabwe

Non-resident

Country Resident In Country Resident In

Bahamas Kingston Malagasy Republic Dar es Salaam

Barbados Kingston Maldives Colombo

Bolivia Santiago Mauritius (b) Dar es Salaam

Botswana Salisbury Mongolia Moscow

Brunei Kuala Lumpur Morocco Paris

Bulgaria Belgrade Nepal New Delhi

Colombia Caracas Norway (a) Stockholm

Costa Rica Mexico City Panama Mexico City

Czechoslovakia Warsaw Paraguay Buenos Aires

Dominica Kingston Qatar Jeddah

Ecuador Caracas Romania Belgrade

Ethiopia Nairobi St Lucia Kingston

Finland (a) Stockholm Senegal Accra

Gabon Lagos Seychelles Nairobi

Grenada Kingston Sudan Cairo

Guatemala Mexico City Swaziland Pretoria

Guyana Kingston Trinidad & Tobago Kingston

Hungary Vienna Tunisia Algiers

Ivory Coast Accra Tuvalu Suva

Lesotho Pretoria Uganda Nairobi

Luxembourg Brussels Uruguay Buenos Aires

Yemen A.R. Jeddah

(a) A resident Australian Government Information Office. (b) A resident Australian Trade Correspondent

Organisations

O rg a n is a tio n R e sid e n t in

European Communities (EC) Brussels

Organisation for Economic Co-operation and Development (OECD) Paris United Nations (UN) New York, Geneva

UN Educational, Social and Cultural Organisation (UNESCO) Paris UN Industrial Development Organisation (UNIDO) Vienna

International Atomic Energy Agency (IAEA) Vienna

83

Appendix 6— Publications in 1981

' Annual Report 1980.

' My dear P.M. Letters from Lord Casey to Lord Bruce 1924-1929

' Australian Foreign Affairs Record Monthly journal of international issues.

Backgrounder. Weekly.

' Diplomatic List. List of diplomatic missions and officers accredited to Australia.

' Consular and Trade Representatives List. List of consular and trade representatives accredited to Australia.

' Australian Treaty Series. Texts of treaties to which Australia became a party.

' Select Documents on International Affairs No. 28. Texts of international treaties and conventions in the preparation of which Australia participated but to which Australia did not become a party in 1980.

Outline. Series providing general information on various countries.

' Report of the Australian Delegation to the 35th (1980) UN General Assembly.

' Report of the Australian Delegation to the Resumed Ninth Session of the Third UN Conference on the Law of the Sea

Report of the Australian Delegation to the Third (1981) Session of the Committee on Disarma­ ment.

Report of the Australian Delegation to the 37th Session of the UN Commission on Human Rights.

Hints for Australian Travellers. Booklet issued with Australian passports to advise travellers on consular assistance, voting rights, dual nationality, penalties for drug offences in overseas coun­ tries and other matters useful for people going overseas.

' English for You. Two instructional booklets on the English language for use in Indonesia in con­ junction with the Radio Australia language program.

Overseas Visitors List.

' 1980 Annual Report (Australia-Chma Council).

Australia-China Council Newsletters

Aid publications

• Development Co-operation (Annual Review).

‘ Australian Development Co-operation : Bilateral Program.

" /Australia's Overseas Development Assistance Program 1981-82 (Budget Paper No. 8).

" Development Co-operation . Key Statements.

' Development Co-operation : Australian Memorandum to the Development Assistance Committee.

Occasional Papers on Development Assistance.

Statistical Summary: Australian Official Development Assistance to Developing Countries 1980­ 81.

Information releases: A series of leaflets on individual aspects of aid.

' Also available from Australian Government Publishing Service bookshops.

84

Appendix 7—Official development assistance

$000

1980-81 1981-82 Actual Estimated

Papua New Guinea ............................................................................. . . . . 245 113 253 555

Other bilateral assistance .................................................................... . ... 212 249 266 754

Multilateral assistance ......................................................................... . ... 100 744 142 009

TOTAL 558 106 662 318

Bilateral Aid to PNG ............................................................................................ . . . . 245 113 253 555

Bilateral aid (Other than PNG) Bilateral projects, technical assistance and disaster relief ........... . . . . 116 373 145 470

Education and training .................................................................... . . . . 16 259 20 884

Association of South East Asian Nations—Australia Economic Co-operation Program ................................................ . . . . 5 861 7 500

Food aid and food security ............................................................. . . 64 119 78 295

Development Import Finance Facility .............................................. . . . . — 2 000

Assistance to non-government organisations ................................. . . . . 2 956 5 240

Expenditure by other government departments and instrumentalities ........................................................................... . . . . 6 681 7 365

TOTAL 457 362 520 309

Multilateral International financial institutions ......................................................... . . . . 47 519 61 010

UN, regional and other international agencies 53 225 80 999

TOTAL 100 744 142 009

* These figures are represented in accordance with international aid reporting requirements.

Appendix 8—Geographic distribution of Australian aid in 1980-81 (a)

$VOO $'000

ASIA South-East Asia Indonesia 39 837

Kampuchea (b) 5 100

Laos 795

Malaysia 7 567

Philippines 11 479

Singapore 1 311

Thailand 7 805

Vietnam 15

Unallocated South­ East Asia 1 283

SOUTH ASIA Afghanistan 16

Bangladesh 24 504

Bhutan 292

Burma 9 845

India 3 102

Maldives 675

Nepal 1 505

Pakistan 7 470

Sri Lanka 5 127

OTHER ASIA China, People’s Republic of 291

Hong Kong 49

Korea, Republic of 191

Unallocated Asia 5 126

OCEANIA Cook Islands 217

Fiji 9 657

Kiribati 2 482

Niue 243

Papua New Guinea 245 113

Pacific Is. (US)(c) 27

Solomon Islands 5 530

Tonga 4 591

Tuvalu 644

Vanuatu 3 547

Western Samoa 2 816

Unallocated Oceania 3 995

AFRICA Algeria 105

8 5

k

Botswana 78 MIDDLE EAST

Djibouti 15 Jordan 384

Egypt 6 120 Lebanon 251

Ethiopia 3 845 Syria 10

The Gambia 21

Ghana 518 EUROPE

Kenya 5 465 Cyprus 21

Lesotho 110 Malta 287

Malawi 27

Mauritius 2 173 AMERICAS

Nigeria 244 Barbados 20

Seychelles 636 Guyana 18

Sierra Leone 20 Jamaica 126

Somalia 1 638 Peru 22

Sudan 4 601 Unallocated America 259

Swaziland 64

Tanzania 6 792

Uganda 2 944

Zambia 1 082

Zimbabwe 4 063

Unallocated Africa 1 172

(a) Countries which received assistance amounting to less than $10 000 have not (b) Includes humanitarian relief for Kampucheans in refugee camps in Thailand been listed.

(c) Trust Territory of the Pacific Islands: Caroline Islands, Marshall Islands and Mariana Islands (except Guam)

Appendix 9—Acronyms AACM AAECP ADAB ADB ADF AFZ AJMC AMLR ANZUS ASEAN AWACS CCRJ CD CFTC CGIAR CHOGM CHOGRM CTB DAC DORS DPRK EC ECDC EEC ESCAP EURATOM

ASEAN—Australia Consultative Meeting ASEAN-Australia Economic Co-operation Program Australian Development Assistance Bureau Asian Development Bank Asian Development Fund Australian Fishing Zone Australia-Japan Ministerial Committee Antarctic Marine Living Resources Australia New Zealand United States (Treaty) Association of South-East Asian Nations Air-borne Warning and Control System

Consultative Committee on Relations with Japan Committee on Disarmament Commonwealth Fund for Technical Co-operation

Consultative Group on International Agricultural Research Commonwealth Heads of Government Meeting Commonwealth Heads of Government Regional Meeting Comprehensive (Nuclear) Test Ban Development Assistance Committee Determination of Refugee Status (Committee) Democratic People's Republic of Korea European Communities Economic Co-operation among Developing Countries European Economic Community Economic and Social Commission for Asia and the Pacific European Atomic Energy Community

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FAC FAO GATT GDP GNP

IADS IAEA I BA IBRD

IDA IEA IEFR IFAD IFC IMF INF

IYDP LLDCs MFO

NATO NEA NGOs NPT OAU

OECD OPEC PNG ROK

SALT SCJ SPARTECA

SPC SPEC SPF START

UN UNCTAD UNDP UNESCO UNFPA UNGA UNHCR

UNICEF UNIDO UNRWA

UNTAG WFP

Food Aid Convention Food and Agriculture Organisation General Agreement on Tariffs and Trade Gross Domestic Product

Gross National Product Integrated Air Defence System International Atomic Energy Agency International Bauxite Association International Bank for Reconstruction and Development (World Bank) International Development Association

International Energy Agency International Emergency Food Reserve International Fund for Agricultural Development International Finance Corporation International Monetary Fund Intermediate Range Nuclear Forces

International Year of Disabled Persons Least Developed Countries Multinational Force and Observers North Atlantic Treaty Organisation Nuclear Energy Agency (of the OECD) Non Governmental Organisations (Nuclear) Non-Proliferation Treaty Organisation of African Unity Organisation for Economic Co-operation and Development Organisation of Petroleum Exporting Countries

Papua New Guinea Republic of Korea Strategic Arms Limitation Talks Standing Committee on Japan South Pacific Regional Trade and Economic Co-operation

Agreement South Pacific Commission South Pacific Bureau for Economic Co-operation South Pacific Forum

Strategic Arms Reduction Talks (formerly SALT) United Nations United Nations Conference on Trade and Development United Nations Development Program United Nations Educational, Social and Cultural Organisation

United Nations Fund for Population Activities United Nations General Assembly United Nations High Commissioner for Refugees

United Nations Children's Fund United Nations Industrial Development Organisation United Nations Relief and Works Agency in the Near East and Palestine United Nations Transition Assistance Group World Food Program