Speech by the Attorney-General on behalf of the Minister for Foreign
Affairs
at the launch of the Documents in Australian Foreign Policy publication
Canberra, 17 October 2002
Australia and Recognition of the People's Republic of China: 1949-1972
Excellencies, distinguished guests, ladies and gentlemen.
Today — as we approach the 30th Anniversary in December
of the establishment of diplomatic relations between Australia and
the People's Republic of China — it gives me great pleasure to commemorate
the event by launching Australia and Recognition of the People's
Republic of China, 1949–1972.
This volume is part of the prestigious series, Documents on Australian
Foreign Policy, produced by my Department.
The series symbolises my commitment, and that of the Secretary of
my Department, Dr Ashton Calvert, to the democratic practice of placing
previously classified material on the public record; in this way,
Australians can make up their own minds as to the nature of Australian
foreign policy.
Material in this volume begins in late 1949.
As I mention in the foreword, this was a time of great tension in
international relations.
The Cold War between the United States, the Soviet Union, and their
respective supporters, was reaching new levels of intensity.
In China, Communist forces under Mao Zedong had defeated the Nationalist
armies of Chiang Kai-shek, and, in October 1949, Mao proclaimed the
establishment of the People's Republic of China.
It was in this environment that Australia was faced with the question
of whether to recognise a new communist state that had arisen in the
region.
Australia and China did not establish diplomatic relations, and the
relationship changed little for 15 years―although bilateral
trade burgeoned from the late 1950's.
As such, the practical dimensions of the relationship served as a
reminder of the mutual interests that existed and could be further
nurtured by a closer formal relationship.
Some of the elements that had ossified the official relationship
began to change in the late 1960s and early 1970s.
In the United States, President Nixon, who was elected in 1968, started
to talk of ‘normalisation', and his administration made a series of
gestures to China.
China, for its part, was increasingly willing to reciprocate.
There was also a broader international movement pushing for greater
involvement by China in world affairs—including a place for the People's
Republic in the United Nations.
Australia's attempts to adapt to these changes make up the bulk of
the documentary material in the volume.
It makes for fascinating reading.
For instance, in 1971, the Australian Government sought to establish
a dialogue with China for the purpose of normalising the bilateral
relationship.
The volume also documents Australia's reaction to the visits in 1971
to China by US National Security Council adviser, Henry Kissinger,
and, in February 1972, by Nixon himself.
In publishing such hitherto classified material, my Department's
study has broken new ground—not only in an Australian context, but
also in a wider sphere; for instance, the equivalent American government
publication is not due out for some time.
Mutual recognition and the establishment of diplomatic relations
between Australia and China―and Australia's de-recognition of
Chiang Kai Shek's Republic of China―occurred in December 1972
after E.G. Whitlam's election as Prime Minister.
The volume shows that after the decision was taken to proceed with
recognition, negotiations and formalities were completed within a
matter of days.
Since the signing of a joint communiqué on 22 December 1972, Australia–China
relations have continued to grow.
To be sure, the volume serves to highlight just how much the bilateral
relationship has changed in the last 50 years.
I want to highlight some of the areas in which the relationship has
developed since recognition.
First, politically: in 1973, Gough Whitlam was the first Australian
Prime Minister to visit China.
In the three decades since that visit, the political association
between Australia and China has matured to become multifarious and
robust.
The central principles underpinning the current relationship represent
the distillation of 30 years of interaction between the two countries.
These central principles were outlined by Prime Minister John Howard
in 1999, during President Jiang Zemin's visit to Australia―the
first such visit by a Chinese Head of State.
These principles are: first, mutual respect; second, a frank recognition
of the differences between us; and third, a strong resolve to build
on the interests we share.
These principles were endorsed by Mr Li Peng, Chairman of China's
National People's Congress, during his recent visit to Australia.
Both our Governments recognise that the only practical way to deal
with the obvious differences between the two countries ― in
culture, in history, in our political traditions, and on some strategic
(geopolitical, security) issues―is to acknowledge them frankly
and see what can be done to overcome them.
A second area in which the bilateral relationship has metamorphasised
is in commerce.
In part, at least, this has been because of the emergence of China
as a truly global economic player, since the reform process began
over 20 years ago.
Indeed, China's entry to the World Trade Organisation, and the rights
and obligation conferred upon it by WTO membership, are a new threshold
in China's re-emergence on the world stage.
In 1972, the value of our two-way trade was A$113 million, and in
1973 a Trade Agreement was signed, granting mutual ‘most favoured
nation' status.
By 2001-02, two-way trade had reached A$19 billion.
Over the last ten years, two-way trade has been rising at an average
annual rate of 13 per cent.
China is currently our 3rd largest trading partner and 4th largest
export market.
Investment between the two countries is also constantly growing.
As at June 2001, Australian figures show Australia had invested $1.888
billion in China, while total Chinese investment in Australia was
$3.4 billion.
The recent successful bid by the Australian-led consortium to supply
LNG to China is extraordinarily significant – and a prime example
of the extent to which our commercial ties have developed to encompass
long-term partnerships.
Tomorrow the Prime Minister will preside over a signing ceremony
for the deal here at Parliament House.
The North West Shelf venture will supply between $700 million and
$1 billion of LNG to Gouangdong province for power generation, every
year, for twenty five years.
The project will lead to significant infrastructure development on
the Burrup peninsula, and employment for thousands of Australians,
not to mention large royalties to the Australian tax system.
Most significantly, the deal represents an enormous step in developing
a long term energy partnership between Australia, as a stable and
reliable supplier of energy, and China as a large and growing consumer.
It is, in trade and economic terms, strategically important because
it has big implications for energy security in East Asia, and because
it represents a further step in the integration of regional economies
– helping to underpin regional stability and prosperity, and therefore
also the prosperity of Australia and China.
A third area of change is in education: in 1972, there were no Chinese
students in Australia; it was not until 1975 that the first Chinese
students arrived, and then only five of them.
Now, China is the biggest source of foreign students in Australia:
over 25,000 Chinese are studying in Australia.
And it is a two-way flow: China is second only to the US in the number
of exchange agreements signed with Australian universities.
We have over 350 co-operative agreements between Australian and Chinese
tertiary institutions.
Tourism is another facet of the relationship where there has been
substantial development.
The two governments have negotiated an agreement granting Australia
Approved Destination Status―together with New Zealand, Australia
was the first Western country to negotiate such an agreement.
As a result, the number of Chinese visiting Australia rose to over
120,000 annually in 2001-02.
We expect that by 2010 more tourists will come to Australia from
China than from any other country.
Concurrently, the number of Australian tourists visiting China also
reached over 120,000 in the 2001/02 financial year; before 1972 it
is estimated less than 1000 Australians in total had visited China.
Finally, I wish to point to institutional and people-to-people links.
Following the establishment of diplomatic relations, an increasing
number of Chinese leaders came to Australia.
The institutional underpinning of the relationship was enhanced by
the foundation of the Australia China Council in 1978.
Since 1979 all Australian states have established twinning arrangements
with various municipal and provincial governments in China―a
total of 32 provinces and cities have established sister relationships.
In 1949, Australia and China stood divided by suspicions and objectives
defined by the Cold War.
Today, we stand together in celebration of 30 years of diplomatic
relations.
As a token of this event, and as perspective on the past and future,
I commend to you the new volume, Australia and Recognition of the
People's Republic of China, 1949–1972, and I am delighted to declare
it launched.
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