CONFIDENTIAL
27
Australia's long-term political, military, economic or cultural interest to see Europe, including Britain, decline into a collection of impotent, if reasonably prosperous, countries exercising little or no influence in world affairs. The European Communities are determined to avoid this. They will develop and grow in coherence whether Britain joins them or not, but if Britain and the other applicants join them then Europe has a far greater chance of renewed vigour and of contributing beneficially to the world at large. Britain sees the European option not as a rejection of other ties and loyalties but as an opportunity for European countries to increase their capacity for doing more for old and new friends elsewhere.
Britain's continuing concern with Australia and Asia
This is not playing with words and the seriousness of the present British Government's intentions is shown by their wish to retain with you and other Commonwealth partners a presence East of Suez and in Malaysia. Britain has not turned her back on Australia in economic terms either. Since 1947 Britain has invested more than $A3,000 million in Australia, more than all other countries taken together. And even since certain restrictions were imposed on investment in 1966 private portfolio investment in Australia has remained at a very high level indeed. This is fact of great significance. It shows that British people have faith and interest in Australia's future. It shows too that Britain recognises the part Australia has to play in Asia. For this British investment is beginning to supply not only the Australian home market but also your Asian export market.
It is the mineral developments that are transforming Australia's balance of payments by providing new export earnings.
These developments are making you less dependent on the British market, but they are being financed to no small extent by British companies.
Changing trading patterns
What we must realise is that trading patterns have changed radically over the years. As an advertisement in The Economist on 22 August this year, issued by your Department of Trade and Industry, said:
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Today's average Australian doesn't hold a stockwhip or even a tennis racket. He's more likely to have a blueprint in his hand. Or a microscope. Or the controls of a 'dozer.”
The same advertisement pointed out that the volume of your factory production has doubled in 10 years and that you are exporting sophisticated manufactured goods to over 150 markets round the world. During the same 10 years the proportion of your exports going to Britain has fallen from 27 per cent to 13 per cent. Japan is your main export market, the United States your main supplier. Agriculture, which still provides the bulk of your exports to Britain, no longer dominates your economy, which with its vast mineral and industrial resources is in an enviably buoyant state.
Future collaboration between Australia and EEC
After only a brief time here I feel what so many British visitors have experienced in visiting Australia in recent years. I feel everywhere the exhilarating and justified sense of optimism about the future and prosperity of Australia. This is a country where tomorrow is always better than today.
CONFIDENTIAL