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National Trade Data Bank
ITEM ID     : ST BNOTES AUSTRALI
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - AUSTRALIA

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1994
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | AUSTRALIA

BACKGROUND NOTES:  AUSTRALIA
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
US DEPARTMENT OF STATE

FEBRUARY 1994
Official Name:  Commonwealth of Australia


PROFILE

Geography
Area:  7.7 million sq. km. (3 million sq. mi.); about the size of the
continental United States.
Cities:  Capital--Canberra (pop. 310,000).  Other cities--Sydney (3.7
million), Melbourne (3.1 million), Brisbane (1.3 million), Perth (1.2
million).
Terrain:  Varied, but generally flat.
Climate:  Relatively dry; temperate in the south; tropical in the
north.

People
Nationality:  Noun and adjective--Australian(s).
Population (1993):  17.7 million.
Annual growth rate:  1.3%.
Ethnic groups:  European 94%, Asian 5%, Aboriginal 1%.
Religions:  Anglican 24%, Roman Catholic 26%.
Languages:  English.
Education:  Years compulsory--to age 15 in all states except
Tasmania, where it is 16.  Literacy--89%.
Health:  Infant mortality rate--9/1,000.  Life expectancy--men 74
yrs.; women 80.
Work force:  8.6 million.  Services--70%.  Mining, manufacturing, and
utilities--21%.  Agriculture--5%.  Public administration and
Defense--4%.

Government
Type:  Democratic, federal-state system with British monarch
sovereign.
Constitution:  July 9, 1900.
Independence (federation):  January 1, 1901.
Branches:  Executive--prime minister and cabinet responsible to
parliament.  Legislative--bicameral parliament (76-member Senate,
148-member House of Representatives).  Judicial--independent
judiciary.
Administrative subdivisions:  Six states and two territories.
Political parties:  Liberal, National, Australian Labor, Australian
Democrats.
Suffrage:  Compulsory at 18.
Flag:  On a blue field, Union Jack in the top left corner, a large white
star and five smaller white stars on the right half.

Economy
GDP (1993):  $270 billion.
Per capita income:  $10,300.
Natural resources: Bauxite, coal, iron ore, copper, tin, silver,
uranium, nickel, tungsten, mineral sands, lead, zinc, diamonds,
natural gas, oil.
Agriculture (4% of GDP):  Products--livestock, wheat, wool, sugar.
Arable land--9%.
Industry (27% of GDP):  Types--mining, manufacturing, and
transportation.
Trade:  Exports--$51 billion:  coal, wool, wheat, meat, iron ore and
concentrates, alumina, aluminum, petroleum products, gold.  Major
markets--Japan, U.S. ($3.3 billion in 1993), U.K., Korea, P.R.C., Hong
Kong, Taiwan, Germany.  Imports--$52 billion:  transportation
equipment, capital goods, industrial supplies, petroleum products.
Major suppliers--Japan, U.S. ($9 billion in 1993), Germany, U.K.,
Taiwan, New Zealand, Italy, Korea.
Official exchange rate:  The Australian dollar floats freely.  The rate
in January 1994 was US$.70=Australian $1.


PEOPLE
Australia's aboriginal inhabitants, a hunting-gathering people
generally referred to as Australoids, have lived on the island
continent for some 40,000 years.  Although their technical culture
remained static--depending on wood, bone, and stone tools and
weapons--their spiritual and social life was highly complex.  Most
spoke several languages, and confederacies sometimes linked widely
scattered tribal groups.

Aboriginal population density ranged from one person per square
mile along the coasts to one person per 35 square miles in the arid
interior.  They had no agriculture and nuclear families subsisted as
hunter-gatherers.

When Europeans arrived in the 18th century, the native population
may have numbered 300,000 in as many as 500 tribes.  The
aboriginal population currently numbers about  230,000,
representing about 1.4% of the population.  Since the end of World
War II, efforts have been made to be more responsive to aboriginal
rights and needs.  Today, tribal aboriginals lead a settled traditional
life in remote areas of northern, central, and western Australia.  In
the southern states, where interracial contacts are most extensive,
aborigines of mixed parentage are moving to the cities in increasing
numbers.

Immigration has been essential to Australia's development since the
beginning of European settlement in 1788.  For generations, most
settlers came from the British Isles, and the people of Australia are
still predominantly of British or Irish origin, with a culture and
outlook similar to those of Americans.

Since World War II, the population has more than doubled.  The
increase reflects, in part, an influx of newcomers through an
extensive, planned immigration program.  In the last 50 years, about
5 million immigrants have come to Australia; about 80% have
remained.  One of every five Australians is foreign-born.  Britain and
Ireland have been the largest sources of post-war immigrants,
followed by Italy, Greece, and Yugoslavia.  Immigration from the
Middle East, Asia, and Latin America has increased since the late
1960s.

In 1990, Australia accepted about 121,000 regular immigrants.  In
addition, during the last decade, about 20,000 New Zealanders have
settled in Australia each year.  Australia's refugee admissions of
about 10,000 per year are in addition to the normal immigration
program.  Forty percent of the refugees are from Indochina and make
up the largest single element in Australia's refugee program in
recent years.  Since 1975, the country has accepted more than
125,000 refugees from Vietnam, Laos, and Cambodia; it now has, on
a per capita basis, more Indochinese refugees as permanent
residents than any other country.

Although Australia has a population density of scarcely more than
two per square kilometer, it is one of the world's most urbanized
countries.  About 15% of the population live in rural areas.


HISTORY
Australia was uninhabited until about 40,000 years ago,  stone-
culture peoples arrived, perhaps by raft across the waters
separating the continent from the Indonesia archipelago.
Portuguese, Spanish, Dutch, and English explorers observed the
island before 1770, when Capt. James Cook explored the east coast
and claimed it for Great Britain (three American colonists were
crew members aboard Cook's ship, the Endeavor).  On January 26,
1788 (now celebrated as Australia Day), the First Fleet under
Captain Arthur Phillip landed at Sydney.  Formal establishment of
the Colony of New South Wales followed, on February 7.

Many of the first English settlers were convicts, condemned for
offenses that today often would be considered to be trivial.  The
mid-19th century saw the beginning of government policies to
emancipate convicts and accelerate immigration.

The discovery of gold in 1851 spurred population growth and trade
and generated unprecedented wealth.  The six colonies that now
constitute the states of the Australian Commonwealth were
established in the following order:  New South Wales, 1788;
Tasmania, 1825;  Western Australia, 1830; South Australia, 1836;
Victoria, 1851; and Queensland, 1859.

Discussions between Australian and British representatives led to
adoption by the British Government of an act to constitute the
Commonwealth of Australia in 1900.  The first federal parliament
was opened at Melbourne in May 1901 by the Duke of York (later King
George V).  In May 1927, the seat of government was transferred to
Canberra, a planned city designed by an American, Walter Burley
Griffin.  The first session of Parliament in that city was opened by
another Duke of York (King George VI).

Australia passed the Statute of Westminster Adoption Act in
October 1942, which officially established Australia's complete
autonomy in both internal and external affairs.  Its passage
formalized a situation that had existed for years.  The Australia Act
(1986) eliminated the last vestiges of British legal authority.


GOVERNMENT
The Commonwealth Government was created with a constitution
patterned partly on the U.S. Constitution.  The powers of the
Commonwealth are specifically defined in the constitution, and
residual powers remain with the states.

Queen Elizabeth II is the sovereign and since 1973 is officially
"Queen of Australia."  The Queen is represented throughout Australia
by a governor general and in each state by a governor.  The federal
parliament consists of a Senate and a House of Representatives.
Twelve senators from each state and two from each territory are
elected for 6-year terms, with half elected every three years.  The
148 seats of the House of Representatives are allocated among the
states and territories roughly in proportion to population.

In ordinary legislation, the two chambers have coordinate powers,
but all proposals for appropriating revenue or imposing taxes must
be introduced in the House of Representatives.  Under the prevailing
Westminster parliamentary system, the leader of the political party
or coalition of parties that wins a majority of the seats in the House
of Representatives is named prime minister.  The prime minister and
the cabinet wield actual power and are responsible to the
parliament, of which they must be elected members.  General
elections are held at least once every 3 years; the last general
election was in March 1993.  Each state is headed by a premier, who
is the leader of the majority party in the lower house of the state
legislature.

Australia also has two self-governing territories, the Australian
Capital Territory (where Canberra is located) and the Northern
Territory, with political systems similar to those of the states.  At
the apex of the court system is the High Court of Australia.  It has
general appellate jurisdiction over all other federal and state courts
and possesses the power of constitutional review.

Principal Government Officials
Governor General--William G. Hayden
Prime Minister--Paul J. Keating
Foreign Minister--Gareth Evans
Ambassador to the United States--Don Russell
Ambassador to the United Nations--Richard W. Butler

Australia maintains an embassy  in the United States at 1601
Massachusetts Avenue NW, Washington, DC 20036 (tel. 20-797-
3000), and consulates general in New York (212-245-4000), Atlanta
(404-880-1700), San Francisco (415-362-6160), Honolulu (808-
524-5050), Los Angeles (213-469-4300), and Houston (713-629-
9131).


POLITICAL CONDITIONS
Three political parties dominate the center of the Australian
political spectrum:  the Liberal Party (LP), nominally representing
urban business-related groups; the National Party (NP), nominally
representing rural interests; and the Australian Labor Party (ALP),
nominally representing the trade unions and liberal groups.

All political groups are tied by tradition to turn-of-the-century
domestic welfare policies, which have kept Australia in the
forefront of societies offering extensive social welfare programs.
There is strong bipartisan sentiment on many international issues,
including Australia's commitment to its alliance with the United
States.

The ALP came to power in a sweeping victory in March 1983 behind
Bob Hawke, the former head of the Australian Council of Trade
Unions, who went on to become Prime Minister.  Under the leadership
of Paul Keating, the ALP was returned for a fifth consecutive
victory.

Although embracing some leftists, the ALP traditionally has been
moderately socialist in its policies and approaches to social issues.
The current ALP government, however, generally has pursued
market-oriented, competitive economic policies.

The ALP, as of 1993, holds 80 seats in the House of Representatives
against 49 for the Liberal Party, 16 for the National Party, and two
for independents.  In the Senate, the Australian Labor Party holds 30
of the 76 seats, the Liberal Party holds 30, and the National Party
holds 6.  The Australian Democrats--a small party originally linked
to the Liberal Party--has seven, and there is one independent.  Thus,
the ALP lacks a majority in the Senate.  This can be important
because budgetary legislation, while originating in the House, must
be approved by the Senate.  Repeated refusal by the Liberal/National
opposition in the Senate to approve the budget in 1975 led to
dissolution of the then-Labor government by the governor general.


ECONOMY
The Australian economy consists of export-oriented agricultural and
mining sectors coupled with a diverse manufacturing sector
dedicated to domestic requirements.  Balance of payments are
strongly affected by world prices of primary products:  In 1993, 62%
of all exports were primary agricultural or mineral products.
Australia is one of the world's leading producers and exporters of
minerals such as aluminum, alumina, bauxite, cobalt, copper,
industrial diamonds, gold, iron, lead, nickel, and silver.  In addition,
abundant supplies of coal, natural gas, liquid, petroleum gas, and
uranium make Australia a leading exporter of energy products.

Historically, the manufacturing sector has been protected from
foreign competition by trade barriers and subsidies, which have
discouraged industrial modernization and productivity as well as
exports.  This sector is diversified but has a small domestic market
and labor force and relatively high labor costs fostered by strong
unions.

Since 1984, the government has moved to reduce or eliminate tariffs
and sectoral assistance.  Under the government's tariff reduction
program, most tariffs will be reduced to 5% by 1996.  Corporate
taxes have been cut significantly.  Unions have agreed to gradual
reductions in real wages.  The financial sector was liberalized and
opened to international competition.  Exports of manufactured
products have increased, and the percentage of primary agricultural
or mineral exports has decreased by 5% since 1990.

Foreign investment has been vital in the development of Australian
ranching, transportation, and manufacturing.  The government
welcomes foreign investment, particularly if it is for export-
oriented industries and creates employment opportunities.  Some
restrictions on foreign ownership exist for the media, civil aviation,
mining, and certain kinds of real estate.  In 1992-93, cumulative U.S.
investment in Australia totaled more than $48 billion and accounted
for 21% of total foreign investment.

Australia is still recovering from a 1990-91 recession.  The real
gross domestic product grew by 2.5% in 1992, and business
investment is improving.  Inflation has been reduced from 8% to 3%.
However, unemployment remains at about 11%.

Over the long term, Australia's economic prospects generally are
bright.  The successful conclusion of the General Agreement on
Tariffs and Trade Uruguay Round of trade liberalization negotiations
should boost overall economic activity, exports, and employment.  In
addition, the integration of the Australian economy into the rapidly
growing Asia-Pacific region and the increasing emphasis on using
the Asia-Pacific Economic Cooperation (APEC) forum to advance
regional economic liberalization should boost future growth.


FOREIGN RELATIONS
Australia has been active in international affairs since World War II.
Its first major independent foreign policy action was to conclude an
agreement in 1944 with New Zealand dealing with the security,
welfare, and advancement of the people of the independent
territories of the Pacific (the ANZAC pact).

After the war, Australia played a role in the Far Eastern Commission
in Japan and supported Indonesian independence during that country's
revolt against the Dutch (1945-49).  Australia was one of the
founders of the South Pacific Commission (1947), and in 1950, it
proposed the Colombo Plan to assist developing countries in Asia.  In
addition to contributing to UN forces in Korea (it was the first
country after the United States to announce it would do so),
Australia sent troops to assist in putting down the communist
revolt in Malaya in 1948-60 and later to combat the Indonesian-
supported invasion of Sarawak in 1963-65.  Australia also sent
troops to assist South Vietnamese and U.S. forces in Vietnam and
joined coalition forces in the Persian Gulf war in 1991.

Australia has been active in the Australia-New Zealand-U.K.
agreement and the Five-Power Defense Arrangement, successive
arrangements with Britain and New Zealand to ensure the security of
Singapore and Malaysia.

One of the drafters of the UN Charter, Australia has given firm
support to the United Nations and its specialized agencies.  It was a
member of the Security Council in 1986-87, a member of the
Economic and Social Council for 1986-89, and currently is a member
of the UN Human Rights Commission.

Australia takes a prominent part in many other UN activities,
including peacekeeping, disarmament negotiations, and narcotics
control.  Australia also is active in meetings of the Commonwealth
Regional Heads of Government and the South Pacific Forum and has
been a leader in the Cairns Group (countries pressing for agricultural
trade reform in the Uruguay Round of GATT and in the APEC
grouping).

Australia has devoted particular attention to relations between
developed and developing nations, with emphasis on the countries of
the Association of Southeast Asian Nations--Indonesia, Singapore,
Malaysia, Thailand, the Philippines, and Brunei--and the island
states of the South Pacific.

Australia has a large bilateral aid program (about $1.3 billion for
1991-92, mostly as grants) under which some 80 countries receive
assistance.  Papua New Guinea, a former Australian trust territory,
is the largest recipient of Australian assistance.


ANZUS AND DEFENSE
The Australia, New Zealand, United States (ANZUS) security treaty
was concluded at San Francisco in September 1951, and entered into
force in April 1952.  The treaty bound the signatories to recognize
that an armed attack in the Pacific area on any of them would
endanger the peace and safety of the others.  It committed them to
consult in the event of a threat and, in the event of an attack, to
meet the common danger in accordance with their respective
constitutional processes.  The three nations also pledged to maintain
and develop individual and collective capabilities to resist attack.

In 1985, the nature of the ANZUS alliance changed after the
Government of New Zealand refused access to its ports by nuclear-
weapons-capable and nuclear-powered ships of the U.S. Navy.  The
United States suspended defense obligations to New Zealand, and
annual bilateral meetings between the U.S. Secretary of State and
the Australian Foreign Minister replaced annual meetings of the
ANZUS Council of Foreign Ministers.  The first bilateral meeting was
held in Canberra in 1985.  At the second, in San Francisco in 1986,
the United States and Australia announced that the United States
was suspending its treaty security obligations to New Zealand
pending the restoration of port access.  Subsequent bilateral
ministerial meetings have alternated between Australia and the
United States.

The U.S.-Australia alliance under the ANZUS treaty remains in full
force.  Defense ministers of one or both nations often have joined
the annual ministerial meetings, which are supplemented by
consultations between the U.S. Pacific Commander and the
Australian Chief of Defense Force.  There also are regular civilian
and military consultations between the two governments at lower
levels.

Unlike NATO, ANZUS has no integrated defense structure or dedicated
forces.  However, in fulfillment of ANZUS obligations, Australia and
the United States conduct a variety of joint activities.  These
include military exercises ranging from naval and landing exercises
at the task-group level to battalion-level special forces training,
assigning officers to each other's armed services, and standardizing,
where possible, equipment and operational doctrine.

The two countries also operate several joint defense facilities in
Australia. The active duty Australian Defense Force numbers about
66,000.  Personnel strength is 31,000 in the army, 15,000 in the
navy, and 22,000 in the air force.  Another 13,000 are involved in
support, development, and command activities.  The Royal Australian
Navy's frontline fleet has three guided-missile destroyers, six
guided-missile frigates, three destroyer escorts, and five Oberon-
class submarines.  The F/A-18 fighter, built in Australia under
license from the manufacturer, is the principal combat aircraft of
the Royal Australian Air Force.


U.S.-AUSTRALIAN RELATIONS
The World War II experience, similarities in culture and historical
background, and shared democratic values have made U.S. relations
with Australia exceptionally close.  Ties linking the two nations
cover the entire spectrum of international relations, from
commercial and cultural contacts to political and defense
cooperation.

Traditional friendship is reinforced by the wide range of common
interests and similar views on most major international questions.
For example, both countries called for the Soviet Union to withdraw
its troops from Afghanistan; both sent military forces to the
Persian Gulf in support of UN Security Council resolutions
responding to Iraq's occupation of Kuwait; and both attach high
priority to controlling and eventually eliminating chemical weapons.

The Australian Government and the opposition share the view that
Australia's security depends on firm ties with the United States, and
the ANZUS treaty enjoys broad bipartisan support.

Frictions sometimes arise in trade relations, however.  In recent
years, the Australians have protested what they consider U.S.
protectionist barriers against their exports of wool, meat, dairy
products, lead, zinc, and uranium.  At various times, Australia has
expressed concern about the spillover effect on world trade of U.S.
inflation, government deficits, and agricultural policies.

Multilaterally, Australia and the United States work together very
closely in the General Agreement on Tariffs and Trade for the
elimination of subsidies and import barriers in world agricultural
markets.  In addition, both are active members of the Asia-Pacific
Economic Cooperation group.

A number of U.S. institutions conduct scientific activities in
Australia because of its geographical position, large land mass,
advanced technology, and, above all, the ready cooperation of its
government and scientists.  The U.S. and Australia are now
negotiating a new science and technology agreement to replace one
dating back to 1968.  Under a separate agreement concluded in the
same year, and since renewed, the U.S. National Aeronautics and
Space Administration maintains in Australia its largest and most
important program outside the United States, including a number of
tracking facilities vital to the US space program.

Principal U.S. Embassy Officials
Ambassador--Edward J. Perkins
Deputy Chief of Mission--Marilyn A. Meyers
Economic Counselor--Stuart Allan
Political Counselor--Mort Dworken
Administrative Counselor--George E. Knight
Public Affairs Officer--Guy W. Farmer
Defense and Air Attache and Representative of the U.S. Pacific
Commander--Col. Max Marosko, USAF
Agricultural Counselor--James Truran
NASA Representative--Ted Ankrum
Senior Commercial Officer--Michael Hand (resident in Sydney)

The U.S. embassy in Australia is located at Moonah Place,
Yarralumla, Canberra, Australian Capital Territory 2600 (tel. 6-270-
5000).  Consulates general are in Sydney (2-373-9200), Melbourne
(3-526-5900), and Perth (9-231-9400).  There is a consulate in
Brisbane (7-839-8955).


Further Information

Available from the Superintendent of Documents, U.S. Government
Printing Office, Washington, DC 20402:
American University:  Area Handbook for Australia.  1974.

For information on foreign economic trends, commercial
development, production, trade regulations, and tariff rates, contact
the International Trade Administration, U.S. Department of
Commerce, Washington, DC 20230.
This information also is available from any Commerce Department
district office.


Travel Notes
Climate and clothing:  Most of southern Australia has warm summers
and mild winters (seasons are the reverse of those in the Northern
Hemisphere).  Lightweight clothing can be worn year-round except in
the more temperate regions during winter; warmer clothes and an
overcoat are then required.

Customs: In general, when visitors arrive in Australia they must
present a visitor's visa (usually valid for multiple entries within 5
years of issue or until passport expires) and a return or onward
passage ticket.  Stays of 6 months per entry may be permitted.
Immunizations are not usually required for travelers when arriving
directly from the United States, New Zealand, or Europe.  Health
requirements change; before departure, check with an airline ticket
office, the Australian Embassy in Washington, DC, or the nearest
Australian consulate general. No restrictions are placed on bringing
U.S. dollars into or out of Australia; however, no more than 5,000
Australian dollars in Australian currency notes may be taken out.
Letters of credit, travelers checks, and U.S. currency are freely
negotiable.  A tourist's personal property generally is exempt from
customs duty.  Pets are allowed entry only after long periods of
quarantine outside Australia, if at all.

Health: Australia has no unusual health problems or serious endemic
diseases, and no special health precautions are necessary for
tourists.  Hospitals are modern.

Telecommunications:  Reliable international telephone, telegraph,
telex, and postal services are available.

Time zones:  Australia has three time zones.  When the U.S. east
coast is on daylight saving time, the Australian east coast is 14
hours ahead, i.e., 6 p.m. eastern daylight time is 8 a.m. the next day
on the Australian east coast.  When the U.S. resumes standard time,
the difference generally becomes 16 hours.


Published by the U.S. Department of State -- Bureau of Public
Affairs, Office of Public Communication -- Washington, DC, 20520.
February 1994 -- Managing Editor:  Peter A. Knecht

Department of State Publication 8149 -- Background Notes Series
Contents of this publication are not copyrighted unless indicated.  If
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For sale by the Superintendent of Documents, U.S. Government
Printing Office, Washington, DC 20402.