1.4 Interests in South Pacific, Africa and the Middle East

Objectives

Protect and advance Australia’s specific political, commercial, investment and strategic interests in the South Pacific, Africa and the Middle East, with a particular focus on economic opportunities;

provide policy advice to Ministers and the Government on matters affecting Australian interests in, and relations with, countries and organisations in the region;

promote links between Australia and the countries and organisations of the South Pacific, Africa and the Middle East (including the Gulf), so Australia continues to be seen as a reliable partner with shared interests;

contribute to peaceful political and economic development particularly in Papua New Guinea and the South Pacific, enhancing regional stability and Australia’s security;

encourage the peaceful settlement of disputes within and among countries in the South Pacific, Africa and the Middle East in ways which respect basic human rights and freedoms including the establishment of democracy in South Africa; and

contribute to an informed public debate in Australia of regional issues affecting Australia.

Description

This sub-program is administered by the South Pacific, Africa and Middle East Division, comprising three branches-New Zealand and Papua New Guinea Branch, South Pacific Branch, and the Middle East and Africa Branch. Twenty-nine overseas posts are located in the division’s areas of responsibility.

The South Pacific region is of fundamental foreign policy and security significance to Australia. As the most substantial country in the region, and the largest aid donor to the independent South Pacific states, Australia seeks to promote peace and stability in the region, as elsewhere, in pursuit of its strategic, commercial and political interests. It has a particular concern to assist sustainable and balanced development in Pacific island countries. Australia’s relationships with all countries in the region are conducted on the basis of cooperation, partnership and mutual respect.

Australia continued to provide generous and practical aid and defence assistance to the region, valued at $461m and $55m respectively in 1993-94 (including PNG), and provided strong support for and participation in a range of regional organisations including the South Pacific Forum Secretariat in Suva, the Forum Fisheries Agency in Honiara, the South Pacific Commission in Noumea and the South Pacific Regional Environment Programme in Apia. A network of 12 Australian missions in the region helped to protect and promote Australia’s interests and to maintain close contact and dialogue with regional countries and organisations.

The Department continued to give high priority to monitoring developments in the South Pacific and to reinforcing close and cooperative relations with South Pacific countries through high-level bilateral contacts. That priority was expressed by the appointment of Mr Gordon Bilney as Australia’s first Minister for Pacific Island Affairs, following the 1993 Federal election. That appointment has meant an even closer focus on our relationships in the South Pacific. Prime Minister Keating visited Nauru in August 1993, where he attended the South Pacific Forum. Mr Bilney visited Fiji, Kiribati, Nauru, New Caledonia, Papua New Guinea, Solomon Islands, Tonga, Vanuatu and Western Samoa, and also pursued South Pacific related matters in visits to France, UK, US, and Japan and at the Barbados Conference on the Sustainable Development of Small Island Developing States (GCSDSIDS).

In a major policy speech in June, Mr Bilney reaffirmed the principle of constructive commitment as the ongoing basis for Australia’s relations in the region. He also outlined the changed international circumstances and challenges now confronting the region, and the range of urgent social, economic and environmental issues which Pacific island countries needed to address in cooperation with regional partners including Australia.

Performance summary

Trade and economic issues were pursued in a wide range of activity at all levels in regions covered by this sub-program, with particular benefits to Australia’s live sheep and wheat trade to the Middle East;

The sub-program helped to facilitate significant South Pacific regional cooperation on maritime surveillance and fisheries management, and increased dialogue on regional environmental issues and sustainable development;

The sub-program had a major role in organising Australian participation in the international observer presence at the South African elections, and in swift moves to normalise relations and to develop trade, investment and institutional links with the new South African Government;

Contributed to the Middle East peace process, particularly through high-level visits and multilateral working groups;

Australia’s relationship with Nauru was restored through a compact of settlement, signed by the Prime Minister, Mr Keating, with the President of Nauru, Mr Dowiyogo; and

Resolution of the Bougainville conflict, including encouragement of PNG-Solomon Islands dialogue, was supported.

South Pacific

Regional trade relations

Australia’s trade relations with the independent and self-governing island countries of the South Pacific have the dual objective of increasing the level of Australian exports and of supporting economic and social development in those countries through industrial and export growth and diversification.

The Department conducted trade relations with the region through the South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA). SPARTECA enables duty-free unrestricted access to the Australian market for all products, except sugar, on a non-reciprocal basis. The Department also assisted trade development through the Trade and Investment Promotion Service and the Australia- funded South Pacific Trade Commission based in Sydney.

Regional trade issues were a major focus for the Department and Mr Bilney in the lead up to the 1994 South Pacific Forum. Priority was given to a review of SPARTECA’s trade promotion and export development objectives. The review provided an opportunity to sharpen the strategic focus of Australia’s aid-funded private sector development activities in the South Pacific and, consistent with the Brisbane Forum’s resources management theme, further scope to encourage and assist Forum island countries (FICs) to develop and adopt sustainable trade and investment policies, with private sector contributions particularly in mind.

New Zealand

Developments in 1993-94 confirmed the strength and significance of Australia’s relationship with New Zealand. The Minister for Foreign Affairs, Senator Evans, visited New Zealand in February 1994 for regular biannual consultations on regional and international issues. New Zealand’s membership of the United Nations Security Council provided a particular focus for the two governments’ cooperative efforts on a range of multilateral issues including the continuing difficulties in Bosnia-Herzegovina and Somalia, and the situation on the Korean peninsula. The two governments also consulted closely on arrangements for the 1995 Commonwealth Heads of Government Meeting (CHOGM) which New Zealand will host.

Senator Cook visited New Zealand as Minister for Trade in August 1993 to institute an annual Australia- New Zealand Trade Ministers’ meeting as agreed in the 1992 Review of the Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER). A significant outcome was a commitment by both Ministers to accord priority to the development of an Australia-New Zealand scheme for the mutual recognition of product standards and occupational qualifications. Annual senior officials’ talks, initiated following the 1992 review, which were held for the first time shortly after Senator Cook’s visit. These talks establish a mechanism for regular, coordinated advice to trade ministers on CER issues. New Zealand also participated in NTIOC ’93, reflecting the intensification of the trade relationship.

Senator McMullan’s first overseas visit following his appointment as Minister for Trade was made to New Zealand in February 1994, emphasising the importance the Government attached to cooperative action with New Zealand on GATT-Cairns Group issues and the APEC agenda. Both Governments also maintained close contact on the proposal for a link between CER and the proposed ASEAN Free Trade Area (AFTA).

Australia welcomed the decision announced by the United States in February 1994 to renew senior level dialogue with New Zealand on strategic, political and security matters, reaffirming that the differences between the United States and New Zealand over defence issues were for those countries to resolve. Australia accepted that it was appropriate for pre-existing restrictions, other than senior-level contacts, to continue to be applied to US-New Zealand relations in defence and security-related areas.

Negotiations on a new social security agreement between Australia and New Zealand were concluded in February 1994. This agreement meets Australia’s requirement for a more equitable sharing between the two countries of social security obligations for New Zealand citizens residing in Australia and Australian citizens residing in New Zealand. Also in February, negotiations commenced on updating the 1972 double taxation agreement between Australia and New Zealand.

Papua New Guinea

The close and productive relationship between the two governments was reflected during the year in two official prime ministerial visits to Australia, and numerous ministerial visits in both directions. High- level visits to Papua New Guinea included those of the Minister for Aboriginal and Torres Strait Island Affairs, Mr Tickner, and Queensland Premier, Mr Goss. Several Queensland Government ministers also visited. Senator Evans co-chaired the sixth annual Papua New Guinea-Australia Ministerial Forum in Mt Hagen, Papua New Guinea, in December 1993. The forum discussed economic policy developments in both countries, the development cooperation program, security cooperation, Bougainville, the Torres Strait and APEC, of which Papua New Guinea had recently become a member.

Officials’ consultations under the Papua New Guinea-Australia Trade and Commercial Relations Agreement (PATCRA) were held in Port Moresby in November 1993. The two governments agreed to intensify bilateral dialogue on trade and commercial issues by holding informal quarterly consultations in Port Moresby. The Department continued to consult closely, throughout the year, with the Australian private sector on trade and investment issues in relation to Papua New Guinea.

A memorandum of understanding signed in February 1994 aimed at promoting cooperation in relation to illegal movement across the Torres Strait by third country nationals. The fifth Torres Strait Joint Advisory Council (JAC) was held in Cairns in February 1994. The JAC was preceded by meetings of traditional inhabitants and the Australian and Papua New Guinea treaty liaison officers, based on Thursday Island and in Daru respectively. The JAC, which brings together senior officials from the national, state and provincial levels as well as traditional inhabitants from the region, addresses issues relating to the efficient operation of the Torres Strait Treaty. These include cooperation on environmental management, traditional movement, border surveillance and enforcement and fisheries management.

As a result of discussions between Prime Ministers Keating and Wingti during the latter’s visit to Australia in February 1994, a delegation of five Australian parliamentarians, led by the Chairman of the Joint Parliamentary Committee on Foreign Affairs, Defence and Trade, Senator Loosley, visited Bougainville in April 1994. The broad purpose of the delegation’s visit was to make an assessment of the general situation on the island with particular reference to progress towards and prospects for a political solution, rehabilitation and reconstruction needs and the role Australia could play in meeting them, and the human rights situation. The delegation tabled its report in June 1994, and presented a copy to the PNG Government. The visit and the report demonstrated to the PNG Government the potential value of allowing access by independent observers to view the situation at first hand, and recommendations arising from the report encouraged the PNG Government to continue its efforts for a peaceful solution to the crisis. The visit followed a program of regular visits to Bougainville by Australian High Commission officers over the past 18 months, and complemented the Government’s efforts to promote reconstruction on Bougainville, for which $10 million has been allocated under the Australian development assistance program for 1994-95.

Fiji

Commercial and other ties between Australia and Fiji date back to the 19th century, but have been extended since Fiji’s independence in 1970. They are built on long-standing associations, geographical proximity and a range of shared interests. Australia’s relations with Fiji, including defence cooperation, were fully normalised following Prime Minister Keating’s meeting with Prime Minister Rabuka at the Honiara Forum in 1992. After Mr Rabuka’s solid win in the 1994 elections, the Fiji Government recommitted itself to a review of Fiji’s racially-biased 1990 constitution. The Australian Government has offered to provide legal and technical advice in support of this process. Trade with Fiji continued to grow, by 7% to a two-way total of $488 million in 1993-94, Australia remaining Fiji’s largest trading partner. Fiji was active in the Cairns Group of agricultural free traders and joined the GATT in November 1993. Prime Minister Rabuka (May 1994), and Filipe Bole, the former Deputy Prime Minister (October 1993), both visited Australia as guests of government.

French Polynesia

The post in Noumea embarked on an increased program of visits to French Polynesia with a view to expanding contacts and coverage of events and issues in the territory. This included a visit by an Austrade officer in April 1994 to assess the prospects for increasing Australian exports. The student program established last year began operation with the first group of carefully selected students commencing study in Australia in July 1993. A second group was selected in February-March of this year.

Republic of the Marshall Islands

The visit to Australia in December 1993 by the President of the Marshall Islands represented a high point in bilateral relations. President Kabua led a trade and investment mission that visited Sydney, Melbourne and Brisbane. A number of contacts were made and interesting investment projects identified. Australia also participated in February in the 50th anniversary commemoration of the liberation by the Allied forces of Kwajalein and Roi Namur.

Federated States of Micronesia

Australia maintained strong and friendly links with the FSM, particularly through development assistance under the Small Grants Scheme and training assistance. Australia has provided FSM with two patrol boats under the Pacific Patrol Boat Project, and assisted with maritime surveillance of the FSM’s large fisheries resources. Joint talks on the project were held in February 1994.

Nauru

The visit to Nauru by the Prime Minister, Mr Keating, in August 1993, the first by an Australian Prime Minister, signalled the beginning of a new era in bilateral relations. Since 1989, the relationship had been over-shadowed by Nauru’s action against Australia in the International Court of Justice (ICJ), in which Nauru sought compensation for damages allegedly suffered as a result of the mining of phosphate- bearing lands during the period when the island was administered by Australia, New Zealand and the United Kingdom. During the visit, Prime Minister Keating and President Dowiyogo signed a compact of settlement which brought an end to the action and restored a valued relationship. The compact of settlement included payments to assist with rehabilitation of mined land, an on-going program of development cooperation, and a joint declaration of principles guiding relations between the two countries. Australia and Nauru subsequently negotiated a rehabilitation and development cooperation agreement, signed by the Minister for Development Cooperation and Pacific Island Affairs, Gordon Bilney and Nauru’s President Dowiyogo in May 1994, under which Australia will fund $2.5 million in jointly agreed rehabilitation and development activities each year for the next 20 years.

New Caledonia

The visits to Australia of a high-level territorial delegation and a visit by a New Caledonian Territorial Assembly delegation, enhanced the bilateral relationship considerably. The continuing trend of closer bilateral ties also strengthened, particularly in the areas of trade, economic cooperation, educational links and cultural and sporting exchanges. Australia emphasised its strong support for the process of reconciliation and balanced development in New Caledonia under the Matignon Accords. It provided practical support through English and technical and vocational training.

Australia welcomed the commitment of the New Caledonian authorities to reduce further barriers to bilateral trade. New Caledonia is a market of considerable importance for Australian exporters. Australia also provided services to assist development of New Caledonia’s exports and encouraged its continued integration into the South Pacific region.

Kiribati

In April, Mr Bilney, visiting Kiribati, reconfirmed Australia’s commitment to Kiribati’s economic and infrastructure development. Australia provided Kiribati with a Pacific Patrol Boat and support facilities in January.

Solomon Islands

Relations with Solomon Islands improved considerably following the election of the Hilly Government in August 1993. A visit to Solomon Islands in September 1993 by the Minister for Development Cooperation and Pacific Island Affairs, Mr Bilney, and a visit to Australia by Prime Minister Hilly in March 1994 strengthened bilateral ties.

The cross-border effects of the Bougainville conflict caused tension on the Solomon Islands-Papua New Guinea (PNG) border during the period. The Hilly Government’s continuing dialogue with PNG on border management and the Bougainville issue has been welcome. Australia has conveyed to both PNG and Solomon Islands its support for progress on border negotiations.

Tonga

A visit to Tonga by an Australian parliamentary delegation in July 1993, followed by a reciprocal visit to Australia by a Tongan parliamentary delegation in December 1993, reinforced the long standing relationship between the two countries. Mr Bilney visited in April.

Vanuatu

A visit to Vanuatu in September 1993 for the Pacific Regional Ministerial Meeting on Population and Sustainable Development, provided Mr Bilney, with an opportunity to reinforce the importance of a close and cooperative relationship between Vanuatu and Australia. Earlier misunderstandings with the Carlot Korman Government have been put to rest. Australia continues to assist Vanuatu’s economic progress through human resource development and provision of national infrastructure.

Western Samoa

During his visit to Western Samoa in April, Mr Bilney reaffirmed Australia’s commitment to Western Samoa’s long-term economic development and agricultural reconstruction. Air services discussions held in Apia during May resulted in agreement to increase the number of passenger seats each way between Australia and Western Samoa.

Regional bodies

South Pacific Forum

The 24th South Pacific Forum, held in Nauru from 9-11 August, was attended by Prime Minister Keating and Mr Bilney. The 1993 Forum focused primarily on environment and development issues, and the Forum communiqué for the first time included a substantive reference to the relationship between population and sustainable development. There was also a strong reference to the need to ensure that the rate of timber harvesting in the region is sustainable in the long term.

The Forum expressed its strong support for the Global Conference for the Sustainable Development of Small Island Developing States to be held in Barbados in 1994, which reflected concerns about the particular difficulties facing Forum Island countries. The Forum reaffirmed that global warming and sea level rise were among the most serious threats to the Pacific region and the survival of some island states and reiterated its strong support for the Framework Convention on Climate Change.

The Forum agreed that it was appropriate to review Forum structures, procedures, institutional arrangements and linkages to other institutions and to that end it was decided to establish a ministerial- level working group. The working group comprised Australia, Fiji, Kiribati, PNG, and Western Samoa and was tasked to report to the 25th South Pacific Forum which is being hosted by Australia in Brisbane in August 1994.

The Fifth Post-Forum Dialogue was held in Nauru on 12-13 August. Mr Bilney participated in the Forum Panel (comprising representatives of the immediate past, present and next Forum chairmen) for Post-Forum Dialogue meetings with representatives of Canada, China, France, the EC, Japan, the UK and the USA. The 1993 dialogue meetings addressed broad agendas which focused on Forum outcomes and on dialogue partner policy towards, and programs in, the South Pacific.

The first meeting between Forum countries and Taiwan was held on 14 August. The Forum decided in 1992 that this meeting would be separate from the existing Post-Forum Dialogue and that the Forum countries participating would do so in their own right and would not represent the Forum as a whole. Consistent with its one-China policy, Australia did not participate in this meeting.

South Pacific Commission

Mr Bilney led Australia’s delegation to the 33rd South Pacific Conference held in Noumea from 25- 27 October. The 1993 conference was notable for confirmation that the South Pacific Commission’s financial situation had improved and that its budget deficit situation had been rectified. A review of SPC staff terms and conditions and classifications structure was also largely adopted. Progress was made in implementing management reforms, although this process still has some distance to run.

The United Kingdom foreshadowed its withdrawal from the SPC, which, subject to the agreement of the 1994 Conference, will occur at the end of 1995 on the basis that the UK pays only half its assessed core budget contribution for that year. The UK’s announcement was received with regret by Pacific island members and stimulated interest in the possibility of attracting new members, particularly Japan and Chile (the latter because of Easter Island). Concerns about existing funding shortfalls in the SPC’s work programs reinforced this interest, and the conference established a mechanism designed to permit the admission of new members by resolution at the 1994 conference. The loss of the UK’s core budget contribution will add significantly to the existing stresses on the SPC’s budget.

Forum Fisheries Agency and regional fisheries issues

The Forum Fisheries Agency (FFA) coordinates the management of the highly valuable fisheries resources of the South Pacific region. The regional tuna fishery was worth around US$1.4 billion in 1993, with Pacific island countries receiving about US$50 million in access fees. The FFA is currently focusing on maximising benefits to Pacific island countries from their fisheries resources through increased financial returns from foreign fishing vessels. This focus has been shared and actively promoted by Mr Bilney over the year, particularly through bilateral contact with other FFA members, including during personal visits by Mr Bilney to countries of the region. In particular Mr Bilney has promoted a cooperative regional approach to the negotiation of multilateral fisheries access arrangements with each of the major Asian fleets (Taiwan, Japan and the Republic of Korea) as a means of increasing financial benefits to the region.

Mr Bilney has also strongly supported the FFA’s ongoing efforts to reduce illegal foreign fishing in its members’ Exclusive Economic Zones (EEZs). Australia has had a major role in supporting the FFA in these efforts and the Department has been working, in cooperation with the Department of Defence, to further improve the effectiveness of Australia’s regional surveillance efforts. Australian regional fisheries surveillance involvement, through Defence’s Defence Cooperation Program, includes conducting fisheries surveillance flights in members’ EEZs, providing Pacific Patrol Boats to FFA members, and funding a satellite communications network enabling FFA members to rapidly exchange fisheries catch and surveillance data. Australia ratified the Niue Treaty on Cooperation in Fisheries Surveillance and Law Enforcement in the South Pacific Region on 3 September 1993. That treaty will facilitate more effective use of elements of the regional surveillance and enforcement program.

South Pacific Regional Environment Programme

The South Pacific region has a number of major environmental problems and a limited capacity, at a national level, to address them. The South Pacific Regional Environment Programme (SPREP), based in Apia, Western Samoa, therefore plays a major role in this regard. In addition, the region has a high level of interest in environmental problems and a growing will to take action to address these.

Australia has supported SPREP in its efforts to gain a higher profile and to increase its role as the focal point for environmental activity in the region. This has served our interest in the development of the South Pacific regional environmental infrastructure, and in there being a strong regional voice in international environment negotiations. The value of this was clearly demonstrated by the successful outcomes for the South Pacific from the Global Conference on the Sustainable Development of Small Island Developing States (GCSDSIDS) in Barbados in April 1994. This success reflects the effective regional preparations made by SPREP in the lead-up to that meeting. Increasingly this Department will be looking to SPREP to facilitate the coordination and implementation of the outcomes of the 1992 UNCED meeting and the 1994 meeting of GCSDSIDS.

Africa

The Department closely monitored developments in Africa, especially South Africa as that country moved towards democratic elections in April 1994 and the establishment in May of a non-racial Transitional Government of National Unity.

The Department was closely involved in the provision of Australian Government assistance to the transition to democracy in South Africa, a culmination of Australia’s longstanding commitment to the ending of apartheid. The Department played a major role in organising Australian participation in the international observer presence at the South African elections. Five Australians-Mr John Cain, Ms Janine Haines, Professor Duncan Chappell, Mr Philip Ruddock MP and Mr Brian Cox-participated in the 50-member Commonwealth Observer Group to the South African Elections (COGSA), and 35 Australians, mostly officers of the Australian Electoral Commission and the Department of Foreign Affairs and Trade, participated in the United Nations Observer Mission to South Africa (UNOMSA). Australia also provided technical expertise to the South African Independent Electoral Commission to assist with the running of the elections.

Australia lifted Commonwealth trade and financial sanctions against South Africa in September 1993 in accordance with the timetable agreed at the Commonwealth Heads of Government Meeting (CHOGM) in Harare in 1992, and the remaining military sanctions in June 1994 following their termination by the UN Security Council. The Department undertook a major policy review of relations with South Africa directed at normalising relations and to develop trade, investment and institutional links across the board. The visit to South Africa in December 1993 of an inaugural trade and investment mission led by Special Trade Representative John Button was a successful first step towards identifying our commercial interests in South Africa.

Other significant developments in Africa included the holding of successful multi-party elections in Malawi in May and elections to a Constituent Assembly in Ethiopia in June. Australia provided observers to the Malawi elections under Commonwealth arrangements and technical assistance through the Australian Electoral Commission to Ethiopia for their elections. The Department continued to assess political developments in Somalia, in the context of Australian participation in the United Nations Operation in Somalia (UNOSOM), and developments in Mozambique, where Australia is contributing police and other assistance to the United Nations Operation in Mozambique (ONUMOZ). The Department also monitored the unsettled political situation in Nigeria.

Senator Evans paid official visits to Ethiopia, Eritrea and Kenya and also visited Somalia in January 1994. The visit to Eritrea was the first by an Australian Foreign Minister since Eritrea attained independence in 1993.

Australia’s trade and political relationship with Mauritius developed further through a trade mission in April 1994 under the sponsorship of the Chamber of Commerce and Industry of Western Australia. There were also academic and education-related exchanges between Western Australia and Mauritius in January and April 1994. The Attorney-General, Mr Michael Lavarch, attended the Commonwealth Law Ministers’ Meeting in Port Louis in November 1993 and had bilateral discussions with Prime Minister Sir Aneerood Jugnauth, and other Mauritian ministers.

Middle East

The dramatic developments in the Middle East peace process were followed closely by the Department. The Government warmly welcomed the signing by Israel and the Palestine Liberation Organisation (PLO) in September 1993 of the Declaration of Principles and the May 1994 agreement to implement Palestinian self-rule in Gaza and Jericho. Progress in the peace negotiations occurred despite continuing violence in the region. The Government expressed its deep concern at continuing Israeli military action in Lebanon, particularly the sustained artillery and aerial bombardments of July 1993 (‘Operation Accountability’), and deplored the Hebron massacre, and the Hamas car bombings in Israel.

Australia adjusted its policy towards the PLO upon the exchange of letters between Israel and the PLO on mutual recognition: Australia now recognises the PLO as the representative of the Palestinian people. The Government’s support for the Declaration of Principles was accompanied by a pledge of a $15 million package to support the Middle East peace process over three years. In response to PLO requests, the Government decided to make available more than $1 million from this package as a contribution to the PLO’s start-up costs, following the agreement between Israel and the PLO on self-rule in Gaza and Jericho.

The Department continued to manage Australia’s practical contribution to the peace process through participation in the multilateral working groups on arms control and regional security, and water resources. Australia sent a naval expert to a maritime confidence-building measures seminar in Antalya, Turkey, and also offered to contribute to the working group’s activities in the field of conflict prevention. In the water resources working group Australia undertook to host a seminar on rainfall enhancement, scheduled for early 1995.

Further complementing Australia’s support for peace and stability in the region, an Australian army officer, Major General David Ferguson, was appointed force commander of the Multinational Force and Observers Group in the Sinai (MFO).

Jordan’s Minister for Supply, Mr Radi Ibrahim, visited Australia as a guest of the West Australian and Federal Governments. Mr Ibrahim’s visit took place at a time of significantly expanding trade between Australia and Jordan. Australian exports increased by 23% from 1992-93 to 1993-94 to $48 million. Australian live sheep exports to Jordan continued to grow: Jordan is now the fifth largest destination for Australian live animal exports, with sheep exported during 1993-94 valued at $19.5 million. Australian rice and barley exports to Jordan also increased during the year.

Australia again hosted Egyptian trade displays in Sydney and Melbourne. The displays led to significant contracts for a number of Egyptian exhibitors. Egypt remained an important buyer of Australian wheat, despite inroads into the Egyptian market by subsidised wheat from the United States, but Australia’s exports to Egypt grew by only 2.5% to $386 million in 1993-94. Recognising Egypt’s important role as a voice for moderation in the Middle East, Australia continued informal diplomatic exchanges with Egypt on issues of mutual interest, including regional developments and disarmament and arms control issues.

Australia continued to urge the dismantling of the Arab economic boycott of Israel, both in bilateral representations throughout the region, and also at the United Nations General Assembly.

The Australian Government Office in Beirut continued to provide visa and consular services to Lebanese and Australian clients. Personnel resources in the office were expanded to meet the increased demand for services.

The Department worked to ensure that Australia gave full effect to its obligations in relation to new sanctions against Libya introduced under Security Council Resolution 883 which came into force on 1 December 1993. Resolution 883 imposes a freeze on Libyan funds and financial resources; an embargo on the supply to Libya of certain key oil industry-related equipment; a tightening of existing sanctions on Libyan aviation; and a reaffirmation of existing diplomatic sanctions against Libya. The tougher sanctions regime was imposed against Libya after its failure to comply with earlier resolutions calling for Libyan cooperation with investigations into the bombing of Pan Am flight 103 and UTA flight 772.

Australia’s contribution to MINURSO (the United Nations Mission for the Referendum in Western Sahara) ended in May 1994 with the withdrawal of the Australian signals contingent upon completion of its tour of duty.

The Department assisted with the visit by a parliamentary delegation to Syria, Lebanon, Tunisia and Morocco. The delegation, led by Mr Bob Brown MP, discussed bilateral political and trade relations and regional issues, including the Middle East peace process, with regional leaders, parliamentarians and officials. In Tunis the delegation also met the Chairman of the PLO, Mr Yasser Arafat.

Arabian Peninsula, Iran and Iraq

The promotion of Australia’s trade and commercial ties with the countries of the region continued to be a high priority for the Department. Senator McMullan led a business delegation to Saudi Arabia and the United Arab Emirates (UAE) in one of his first overseas trip as Minister for Trade. The visit succeeded in advancing the claims of several Australian companies bidding for contracts in Saudi Arabia and the UAE. During the visit, Senator McMullan took the opportunity to issue invitations to prominent Saudi and UAE business people to visit Australia to attend the National Trade and Investment Outlook Conference to be held in Melbourne in December 1994. The Department and relevant posts also provided assistance and briefing to Victorian and West Australian Ministers who made visits to the region.

The Department was actively involved in policy deliberations on Australia’s continued involvement in the Multinational Interception Force (MIF). HMAS Sydney remained in the Gulf of Aqaba until November 1993, when it was announced that Australia would extend the gap between MIF deployments to at least nine months. At the United Nations, the Department remained active in supporting the maintenance of sanctions imposed on Iraq after its invasion of Kuwait in 1990. At the same time the Department assisted the Australian business community to export to Iraq items not covered by sanctions. Notably the Department was able to facilitate the export to Iraq of 210 000 tonnes of wheat by the Australian Wheat Board.

The Department was heavily involved in the preparations for the sixth Joint Ministerial Commission (JMC) meeting with Iran scheduled to take place in Canberra on 29 and 30 August 1994. The meeting had originally been scheduled for March 1994 but was postponed due to unavoidable ministerial commitments at the time. The sixth meeting of the JMC will provide an excellent opportunity to expose the Iranians to a wide range of investment and trade opportunities in Australia. It will also enhance Australia’s reputation as a reliable supplier of high quality, competitively priced goods and services.

The Department monitored closely developments in the civil war in Yemen, including the evacuation from Yemen of Australian citizens and their dependents. The Australian Government strongly supported the adoption by the United Nations Security Council of Resolution 924 which called for a halt to fighting and a resumption of peaceful negotiation between the two sides.

The Australian Embassy in Riyadh and the Department continued in association with the Department of Primary Industry and Energy and the live sheep industry to explore opportunities for the resumption of the trade in live sheep with Saudi Arabia. Notwithstanding the problems associated with the live sheep trade with Saudi Arabia, Australian exports to the countries of the Gulf Cooperation Council grew by approximately $100 million from 1992 to 1993.