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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 not copyrighted, the material may be reproduced without consent; citation of the publication as the source is appreciated. Permission to reproduce any copyrighted material (including photos and graphics) must be obtained from the original source. For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.