Australia and the United Kingdom: Natural Partners for the 21st Century
Address by The Hon. Alexander Downer, MP, Minister for Foreign Affairs, to the Australian Institute of International Affairs Conference, "Australia and Britain into the 21st Century: An Evolving Relationship Canberra 8 August 1997.
Introduction
It is a great pleasure to have the opportunity to speak at this conference. I congratulate the Australian Institute of International Affairs - and the conference sponsors - for organising such an impressive array of speakers.
There is no doubt that the relationship between Australia and Britain has a very special meaning for me. My father was the Australian High Commissioner to London for many years, and so I spent a good part of my formative years in London. More importantly, my wife is also British.
The majestic sight of ocean liners carrying thousands of British migrants to Australia - and the poignant crowds who massed dockside to greet or farewell them with straining hearts and handkerchiefs - are now a part of history. But the extensive family networks that took root and grew in their wake are stronger than ever. The United Kingdom is still one of Australia's major sources of immigration.
More than that, the values that bind Australia and Britain together in genuine friendship and deep mutual regard are the fundamental and enduring values of modern liberal democracy - a commitment to individual freedom, liberty and worth, a respect for those who hold different opinions, and an equally strong commitment to economic liberalism.
These liberal values and institutions have proven to be among the most humane and practical ever devised in the long and violent history of human civilisation. I am convinced that they will prove even more indispensable in the new millennium, not just for Australia and Britain but for all the emerging democracies of Europe and the Asia Pacific that are building free institutions and open economies.
But it is also fair to say that old stereotypes die hard whenever Australians and Britons think of each other's countries, particularly, of course, when the 'Battle for the Ashes' unleashes our most competitive instincts. It means that the modern and sophisticated nature of the Australia-UK partnership is not as well understood and appreciated as it should be.
That is why the NewIMAGES promotion is so important. It is all about the future, not the past. Through NewIMAGES, the Australian Government is working closely with the British Government and private companies in both countries to dispel some of these outdated stereotypes. I will speak more later about the significance of NewIMAGES and the modern Australia - UK partnership, but, first, I want to set the scene by outlining Australia's growing contribution to the Asia Pacific and our reinvigorated relations with Europe.
PART ONE: Australia's Growing Contribution to the Asia Pacific - Priority One
One of the old images of Australia is of a colonial outpost; a European country sitting uncomfortably on the other side of the world. The new reality, however, is a strong, confident country which sees as its highest foreign policy priority to contribute positively to the evolution of our region. The Asia Pacific is where our greatest economic opportunities lie. It is also where we must make the greatest efforts to ensure that any tensions which arise are resolved peacefully.
Australia is certainly fully enmeshed in the region' s economic transformation. Over half of Australia' s total foreign direct investment and three-quarters of our exports go to Asia Pacific markets. The Asia Pacific has, in fact, been Australia's major trading partner since the mid- 1960s. For Australian producers, and for producers in the United Kingdom and Europe, the opportunities presented by the region's sustained growth and its rapid increase in wealth are immense.
The sustaining force behind the region's dynamism has been economic liberalisation, and Australia has played an important part in helping to maintain the momentum of regional economic liberalisation.
In developing its approach to these challenges and opportunities in the Asia Pacific, the Government has given high priority to strengthening bilateral relationships with our friends and partners in the region. At the same time, we have focused APEC and the ASEAN Regional Forum - the key regional forums - on tangible results that deliver benefits to Australians such as a stronger regional commitment to economic liberalisation and more effective regional security. Our approach to a range of humanitarian regional issues is characterised by the same focus on practical results. The most recent highlights of our constructive contribution to the region include: a set of initiatives I announced in Kuala Lumpur last month which break new ground in Australia's bilateral relationship with Malaysia, including agreement to regular, formal political talks, to be held at the Ministerial level; a significant expansion in Australia' s network of regional security dialogues. These add a new layer to Australia's regional security structures by establishing security dialogues with four of our major regional partners; the Australia - Indonesia Development Area which was inaugurated earlier this year and which is the first such sub-regional agreement Indonesia has entered into with any country outside of ASEAN; agreement with China to a formal and regular bilateral human rights dialogue which will commence shortly; agreement earlier this year that the Australian and Japanese Prime Ministers will hold an annual summit on bilateral and regional issues; strong and practical support for a regional secretariat for national human rights commissions and a region-wide approach to demining.
PART TWO: Australia and Europe - A Reinvigorated Relationship
The Government will shortly be bringing forward a White Paper which will outline in detail how we see Australia's role in the region's future. But I can assure you that our European ties will continue to form an essential part of the Government' s broader foreign and trade policy strategy, including our Asia Pacific strategy.
Europe is a global pillar of stability and prosperity. Australia suffered directly this century when European conflicts became global conflicts. We therefore have a fundamental interest in Europe managing successfully the great challenge of developing political, economic and security institutions appropriate to the changed realities of the past decade.
While the Asia Pacific remains the Government' s top priority, we have always understood that diplomacy is not a zero sum game. We have recognised that Australia's relations with Europe - our complex and long-standing network of family, trade, investment, cultural, political and strategic links with Europe - are part of our credentials in the Asia Pacific. The two don't work against each other; they complement.
Australia' s unique economic and cultural profile makes us particularly attractive as a conduit for business between Europe and Asia. Australia has absorbed over two centuries of European experience and technology. Our educational institutions draw from and rival Europe's best. our economy has long been a major destination for European investment.
Many businesses have recently realised just what a great opportunity Australia represents as a staging post for conducting business in the region. Two hundred foreign companies have established regional headquarters or regional management operations in Australia over the last three years.
The EU is a key trade and investment partner for Australia. It is our second largest export market for goods and services and our most important source of foreign investment. The focus of our bilateral relationship has broadened considerably over the past few years, reflecting the progress with EU integration following implementation of the Single Market and the Maastricht Treaty.
We concluded an historic Joint Declaration on Relations with the EU in June this year that provides a very solid basis for taking the extensive Australia-EU partnership forward into the new millennium.
We are now dealing with the EU on a wide range of issues and working cooperatively in a range of new areas - such as environment protection, scientific and technical innovation, and education and training. One of the key areas for further cooperation highlighted in the Joint Declaration is that of employment creation where Australia and the EU have much to learn from each other's experience. The Australian Government has also had significant success in boosting bilateral relations with key member countries of the European Union.
Since coming to office last year, the Government has enhanced and expanded our bilateral relationships with partners and friends across Europe. Chancellor Kohl of Germany and a high level business delegation visited Australia in May, a visit which has greatly advanced Australia's economic and political relationship with Germany. We are expecting a visit by the Dutch Prime Minister - the first ever - later this year. We restored relations with France following the cessation of French Nuclear Testing and successfully encouraged their backing of the CTBT. Earlier this year the Italian Foreign Minister, Lamberto Dini, and I established the Australia - Italy Economic and Cultural Council and a high level Business Leaders' Forum to deepen our bilateral cooperation, and during my recent visit to Greece we announced that we would establish a Joint Business Council to expand our economic and business ties.
PART THREE: Australia and United Kingdom - A Modern and Dynamic Partnership
Finally, I want to return to where I began - the Australia-UK relationship - and give you Australia' s perspective on the future development of our close ties.
There is one notable parallel in our foreign policies. Both countries understand that closer involvement with our respective regions is a key priority. There is a certain symmetry between Australia's contribution to Asia and Britain's more focused involvement in the affairs of Europe. Importantly, however, that need not derogate from our broader global interests, nor does it diminish our bilateral relationship.
For without doubt, Australia' s relationship with the United Kingdom has a special range, quality and depth. It is a very important component of our broader relationship with Europe. It is based fundamentally not just on the abiding values I mentioned earlier but strong people-to-people links. Our people and our institutions have been enmeshed with each other for over 200 years in a way that few other countries could match.
It is important to remember that 1.4 million Australians have a parent born in the United Kingdom. The UK is our third largest source of tourists after Japan and New Zealand, and accounts for more than half of all the tourists who come here from Europe each year. Over 380,000 Britons visited Australia last year, an impressive increase of 12 percent on the 1995 figure. One in every thirty two Australians visits the UK each year.
These extensive links mean Australians and Britons know and understand each well, and this mutual understanding underpins every aspect of our more formal and official links.
Australia as a Gateway to the Asia Pacific
The fact that Australia and Britain are focusing their attention on greater engagement with their respective regions should not, in my view, diminish the importance or relevance of the Australia-Britain relationship. Our preoccupations closer to home don't drive us apart or somehow make us less relevant to each other. Rather, they enable both countries to focus on the increasing range of advantages each can offer the other.
I was delighted to hear Robin Cook's comments when he said yesterday, "Australia is a much more valuable partner to Britain in the modern world than at any time in those past two centuries. The growing importance of Asia and of the countries around the Pacific mean that Australia is much stronger for Britain as a bridge into an area of the world of growing importance."
This increased regional focus of both countries is forming a new basis for taking the relationship forward into the 21st century. Australia and Britain do have global interests, and these interests ensure that we will maintain and improve ties with each other and other parts of the world.
Of course, the United Kingdom does not have to find its links to the Asia Pacific through Australia. Nor does the Asia Pacific have to find its links with the UK and the rest of Europe through Australia. But Australia's relations with the Asia Pacific are unique in the way we straddle two worlds. We can often repackage what Europe has developed in ways that are more interesting or relevant to an Asia Pacific audience or market. Australia can be a regional gateway economically, and a valuable interlocutor strategically, for our European partners. 5
The trade and investment partnership between Australia and the United Kingdom is an excellent example of how our two countries are drawing on the relative strengths we have in our respective regions. As Tim Fischer said in his speech yesterday, bilateral trade and investment ties are very healthy. The United Kingdom is Australia's third-largest overall trading partner in merchandise and services trade. Two-way investment is vitally important to both countries.
British investment in Australia is substantial - the United Kingdom remains the largest investor in Australia' s manufacturing industry. Some analysts even suggest that the United Kingdom might soon overtake the US as the largest direct foreign investor in Australia.
The extent of Australian direct investment in the United Kingdom surprises many people unfamiliar with facts. Australia is in the top five foreign direct investors in the UK, behind the US and Japan, and running neck-and-neck with France and Germany
I spoke a few minutes ago about the advantages that Australia offers European enterprises that are increasingly looking to the Asia Pacific region. Partnerships such as those between Qantas and British Airways, and between CRA and RTZ, come immediately to mind.
I am pleased to say that British companies have been leading the way in this trend of utilising Australia as a base for Asia Pacific operations. These companies have recognised Australia' s attractions as a location for export operations, joint ventures and regional research and development activities. British companies make up over sixty percent of the EU companies that have established regional headquarters operations in Australia.
Of course, Australia and Britain have a great deal more to offer one another than more extensive commercial ties. The potential for partnerships in business, science, the arts, sports and academe is immense. Media, academic and wider educational ties between our two countries are widespread. The United Kingdom is second only to the United States as a partner country for Australian international science and technology collaboration.
One particularly prominent and current example of our wider links concerns preparations for the Sydney Olympics in 2000. British companies are already involved in building some of the infrastructure and providing expertise for the Sydney 2000 Olympics. Australian companies will be looking to offer their services and expertise to the City of Manchester when it stages the Commonwealth Games in 2002.
Australia and Britain not only have substantial investments in each other's economic prosperity but we also share an intimate security partnership. This partnership is based on joint training and exercises, equipment procurement, intelligence sharing and a high level of personnel exchange. The Five Power Defence Arrangement - which brings together Australia and the United Kingdom with New Zealand, Malaysia, Singapore - is a clear demonstration of Britain's commitment to the security of the region and one which not only Australia, but all regional participants welcome wholeheartedly.
The Importance of the NewIMAGES Promotion
Beyond these extensive economic and security links, helping each country see the other in dynamic new ways will be essential in ensuring that our strong relationship reaches its full potential into the 21st century.
Australia is very pleased with the importance the British Government has attached to the relationship through its impressive commitment to the newIMAGES promotion. The promotion is the largest ever mounted by the British Government overseas.
This year-long program of activities associated with New Images is updating some of the old, lingering stereotypes we have of each other, and highlighting the many strands of our modern and diverse partnership.
From Australia' s point of view, we want to ensure that the modern of image of Australia in the UK and elsewhere is not just of a country packed to the brim with sporting enthusiasts but one with very sophisticated technology, and a source of high-tech and medium-tech exports.
The fact that Australia is the country which has the second highest personal computer usage in the world is an illustration of just how well acquainted we are with the cutting edge of globalisation. In overall terms, Australia is ranked 8th in the world as a network society 'plugged in' to the high-tech world, and the UK's overall ranking is 14th. Australia's ranking is based on our use of phone lines ( 12th in world), mobile phones (5th - highest ranking outside the Nordic states), internet hosts (6th) and computer usage per capita. That puts Australia ahead of both Germany (13th overall) and Japan (16th overall). of the 17 Asia Pacific economies, only the US and Canada have a higher overall rating than Australia.
But you would be wrong if you thought that Australia' s tradition of innovation is only a recent phenomena. It was Australia in 1898 that invented the world' s first teleprinter for recording messages onto tape. Sixty years later, it was an Australian scientist who invented the "Black Box" flight recorder which now is an essential part of all commercial aircraft. Australians have always embraced the best that the world has to offer and made it their own.
Australia also needs to project to the region and the wider world its cultural diversity and achievements as a modern, constitutional democracy. People from 130 different countries have migrated to Australia and helped create what I believe is a very exciting and harmonious society. Australia's remarkable strides this century are often underestimated: our achievements are the envy of many other countries where constitutional democracy has wilted as quickly as it has flowered. We should not forget that Australia pioneered advances in women' s franchise, individual freedom, the accountability of governments and the rule of law.
I am convinced that the newIMAGES promotion presages a new era in our partnership. The promotion has a strong emphasis on young people who will be tomorrow's decision-makers and leaders. To maintain the momentum that newIMAGES is generating, our two Governments are already working on a Joint Action Plan which will provide the basis for taking the relationship to its full potential in the future.
Cultural Ties: A Continuous Cross-Fertilisation of Ideas and Perspectives
One of the most rewarding aspects of the relationship that newIMAGES is highlighting Is the deepening cultural ties which mutually enrich every level of British and Australian life.
There has been a continuous cross-fertilisation of ideas and perspectives between our two societies which means that we are inextricably linked together. This two-way flow of creativity and cultural innovation is so extensive that we sometimes forget how central it is to the way we see ourselves and the world. It means that our societies and markets are extremely receptive to the insights and wisdom each can offer the other.
As an English-speaking country, and a country which has grown up with British heritage, Australia owes much to what British critic F.R. Leavis once called the "magnificent and matchless" heritage of British literature: from Shakespeare, Alexander Pope and Christopher Marlowe through - in more recent times - to Kingsley Amis and A.S. Byatt.
In turn, many Australian expatriates, writers and artists have made their memorable mark in Britain - Germaine Greer, David Malouf, Morris West, Tim Winton, Thomas Kenneally, Peter Carey and Les Murray, to name only a few. The schedules of the opera houses of Britain, as of Europe, are rarely without a talented Australian voice or conductor.
In recent years, Australian feature films such as 'Shine' and 'Priscilla' have stormed the British film-going public - just as British films such as 'Trainspotting' and 'Secrets and Lies' have attracted appreciative audiences in Australia. Many Australian TV series continue to draw a huge and devoted following in the UK.
Underlying this rich pattern of exchanges is the mutual development of two societies which are open to new ideas and respectful of differences of culture.
Of course, no matter how close the ties, there will always be differences between us - but the fact that we can be so frank with each other - over issues such as pensions and climate change, for example - and remain the best of friends is testament to the strength and durability of the relationship.
Conclusion
These qualities of decency, neighbourliness and tolerance that can be found in Australian and British society have equipped both our nations with a remarkable capacity to deal successfully with new challenges in our respective regions, and globally.
I want to conclude my remarks today with the words of Sir Robert Menzies on the bilateral relationship. In his autobiography, Menzies stressed the need to ensure that elements in the relationship which were once taken for granted be identified and actively promoted.
He wrote - "I remind my fellow-countrymen that more good things in life are lost by indifference than ever were lost by active hostility."
I can say without hesitation that the Australian Government will never be indifferent to the health and well-being of the bilateral relationship with Britain, or take it for granted.
The history and culture that we share - the extraordinary heritage of values I spoke of at the beginning of my remarks - have provided the foundation for a modern partnership which is hard-edged and practical.
By updating our images of each other, by adjusting our view of where each of us sits in a changing world, Australia and Britain have an opportunity to build on an old but extremely rich and solid partnership. In grasping this opportunity, our two countries will be able jointly to prosper and draw even more from our close and abiding relations. The newImages programme, I believe, is the first step in this direction.
Once again, I congratulate the Conference organisers for putting together this successful event, and I hope it will encourage more Australians and Britons to reflect on just how special our bilateral relationship is, and how we should re-double our efforts to make it flourish even more in the 21st Century.