DECISION NO. MINUTE

BRISBANE, /4/ I ~ / 19 //'

Department of Industry Development - -Shanghai Siste r State Relationship.

Jo Copies Received at 4 c,.'10 p.m. Copies Made CIRCULATION DETAILS

GOVERNOR Decision File 1 21 -

2 MR. AHERN 22 ' /Ul-J s~ ~1.1 , .... t rn )Y ( H 3 23 . MR. GUNN ~r3 --·-.;uni ,, VJ.IY V" 4 24 -• - ' MR. GIBBS ~ IL/I 11

5 MR. GLASSO ~ 25

6 MR. AUSTIN 26 . MR. LESTER 1 27 MR. TENN I 8 28

9 MR. HARPER 29

10 MR. MUNTZ 30

11 MR. MC KECHI IE 31 12 MR. KATTER 32

13 MR. NEAL 33

14 MR. CLAUSOr 34 - MR. BORBID< 15 E 35

16 MR. RAN DELI 36 17 MR. COOPER 37

18 MR. HARVEY 38

19 MR. LITTLE I ROUD 39 Master File 20 40 ''

} ' Copy No . '2: (j

C 0 N F I D E N T I A L

C A B I N E T M INUT ,::;

Brisbane, 19th September, 1988

Decision No. 55154

Su bmission No. 49719 TITLE : Department of Industry De velopme nt - Qu e ensland-Shanghai Sister State Relationship.

CABINET decided ~ -

That the contents of the Submission be note d.

<'> :;- 3 n :::>" ~ "' c: ..... CD ~ Q. f\) CIRCULATION: 's Department and copy to Premier and Treasu rer. GI Department of Industry Development and copy to Min i s t e r . (') ~ Treasury Department and copy to Minister. ~ () All other Ministers for p e rusal and return . :J 0 0- ~ G> () io ~ :l

t:::~Y::. Certified True Copy SECURITY CLASSIFICATION "C" - CONFIDENTIAL

Submission No.

Copy No.

DEPARTMENT OF INDUSTRY DEVELOPMENT

F 0 R C A B I N E T

QUEENSLAND-SHANGHAI SISTER STATE RELATIONSHIP

1. On 8 August 1988 the Economic Policy Committee issued a directive to proceed towards the establishment of a sister state relationship between Queensland and the Municipality of Shanghai in the People's Republic of China.

2. Pursuant to a request from the Queensland-China Trade Secretariat in the Department of Industry Develo pment, the Australian Consul-General in Shanghai has made high level n :;· approaches to the Shanghai Mayor's office to gauge the 3 n :::r receptivity to the Queensland approach. CD ..... c ..... 3 . Whilst the initial reaction appears to be generally CD favourable, there is considerable competition from Perth which has for some time been negotiating the establishment of a sister city relationship between Perth and Shanghai.

4 . The Western Australian Government fully supports Perth in its bid for such a relationship and now employs a powerful group of officials to press its claim. These officials include the former Australian Consul-General to Shanghai and the former head of the East Asia unit of the Commonwealth Department of Foreign Affairs and Trade.

5. Western appears to be intent o n expanding its already significant trading relationship with the Shanghai area. This is principally but not exclusively based upon the export of large quantities of iron ore to the giant Baoshan steelworks. Western Australia currently has a sister state agreement with the Province of Zhejiang which is contiguous with Shanghai. The authorities in Western Australia are thus in a strong position to argue that a Perth-Shanghai relationship would be backed by a strong commitment on the Australian side.

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6. A factor in Queensland's favour, however, is that the Chinese central government authorities have accorded Shanghai the status of a Province. We are thus in a position to argue that a relationship with Queensland as an Australian state is more appropriate that one with a city.

7. The Shanghai authorities appear to b e anxious not to offend either Australian party. However, they are more familiar with the Perth officials with whom t hey have had face to face negotiations.

8. There is thus a need for e arly action and the attached letter will be forwarded from the Premier to the Mayor of Shanghai proposing a sister state relationship.

9. Furthermore, an information package on Queensland and its economy has been forwarded to the Shanghai authorities through the good offices of the Consul General.

10. Submitted for the information of Cabinet.

M.J. Ahe rn

Premier 1 Treasurer & Minister for Industry, Small Business Minister for the Arts Communications and Technology

BRISBANE

1 5 September 1 988 PREMIER OF QUEENSLAND

Mr Zhu Rong Zhi Mayor of Shanghai Shanghai PEOPLE'S REPUBLIC OF CHINA

Your Excellency

As Premier of Queensland, Australia I am writing to propose the establishment of a special relationship between your Municipality and this State.

Queensland occupies the north eastern corner of Australia and has a population of 2.7 million people or 16.5 per cent of Australia's total. It has a highly developed economy and is Australia's leading State in terms of exports. Queensland is the only Australian State which does not have a sister relationship with a Chinese province.

In 1986 prior to becoming Premier of Queensland I visited Shanghai and was deeply impressed by its economic dynamism and by its commercial, industrial and cultural importance to your country. My Deputy Premier, Mr William Gunn, visited Shanghai in 1985 and was similarly impressed as were the numerous Queensland officials who have visited your Municipality in recent years.

Queensland's economy is particularly strong in the agricultural, agricultural processing, pastoral, mining, minerals processing and information sectors and has a vibrant manufacturing industry based on these strengths.

Further background information on Queensland has recently been forwarded to your off ice via the Australian Consulate General in Shanghai.

. . . 2 I -2- Given the attributes of your own Municipality and those of our State I see wide potential areas for economic co-operation. The proposed relationship, if established, could also be expanded to include exchanges in the educational, scientific, technological, cultural and medical fields. It would, I believe, be to the long-term benefit of the peoples of both our areas.

Senior officers are available to travel to Shanghai to establish in more detail the dimensions of the proposed relationship. I also extend an invitation to yourself or a group of your senior officials to visit Queensland and inspect our State at first hand.

It would be appreciated if you would consider my proposal and advise me of your initial reaction. Should you be in favour of moving toward the establishment of such a relationship I would envisage that an agreement would be negotiated and incorporated in a formal document which we would in due course jointly sign in Shanghai.

Yours sincerely

M.J. Ahern Premier of Queensland, Treasurer and Minister for The Arts