French nuclear test tensions threatened Olympic Dam expansion plans, declassified Cabinet documents reveal

CABINET papers released by the National Archives from 1994 and 1995 provide new insight into what happened behind the scenes during the Keating Government.

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IT WAS a government destined to be swept from power at the 1996 election. Prime Minister Paul Keating was focused on the Working Nation program to kickstart the economy and negotiating a defence treaty with Indonesia. Other issues — including public outrage over French nuclear testing in the South Pacific — became thorns in the Government’s side.

THE FRENCH NUCLEAR TESTING

KANGAROO meat and other exports to Europe could be jeopardised if Australia took a hard line against French nuclear testing in the South Pacific, the Keating cabinet feared in 1995.

A ban on uranium exports to France could also have put at risk a potential $1 billion expansion of South Australia’s Olympic Dam.

The resumption of underground nuclear testing in French Polynesia sparked boycotts of French businesses in Australia and plunged the Labor government into a diplomatic and political crisis.

Mr Keating recalled Australia’s Ambassador from Paris and suspended some defence co-operation with France, including ship visits and training arrangements.

In a May cabinet submission ahead of the nuclear tests, Foreign Affairs Minister Gareth Evans and Pacific Island Affairs Minister Gordon Bilney warned that Australia’s interests could be damaged if the Government overreacted.

French nuclear testing at Moruroa in the Pacific in 1995. Picture: Greenpeace

“Australia’s response should also be shaped so as to limit French retaliation in those sectors of the relationship we wish to see preserved,’’ the submission said.

“Three specific areas of current Au1stralian interest could be targeted by the French: Australia’s Security Council bid, market access for special Australian products such as kangaroo meat, and Australia’s candidature for the position of Secretary-General of the (South Pacific Commission).’’

There were widespread calls for Australia to suspend uranium exports to France but this would have led to the Government having to pay compensation to mining companies with existing contracts.

Australia had already imposed a ban on new uranium export contracts with French companies until France agreed to a comprehensive nuclear test ban treaty.

Despite this, the cabinet submission noted that Western Mining Corporations was considering whether to spend $1 billion on expanding operations at Olympic Dam and could potentially look to France for new sales.

HMAS Collins arriving in Fremantle Harbour in November 1997. Picture: Supplied

SUBMARINES

THERE has been a dramatic turnaround in the Australia-France relationship since the mid 1990s, with French company Naval Group in 2016 winning the contract to design and help build Australia’s next generation of navy submarines.

Australia’s Collins Class submarines were still being built in Adelaide in 1995, with HMAS Collins undertaking sea trials. Cabinet was briefed on a propulsion system failure, which caused the Collins to crash into the ship HMAS Protector. The Government decided against taking up the option of ordering an additional two Collins Class submarines.

MULTI-FUNCTION POLIS

A PLAN to boost federal funding for Adelaide’s Doomed Multifunction Polis project by $30 million was scuttled amid opposition within cabinet.

The dream of the hi-tech city built in collaboration with Japan and connected to the “super information highway “ (now known as the internet) was evaporating quickly in 1994.

While admitting progress on the joint Australia-Japan project at Gillman had been “disappointing”, Small Business Minister and South Australian Senator Chris Schacht argued that it could be turned into a success and sought a $30 million funding contribution.

But the powerful Treasury and Finance departments wanted the Federal Government to pull out of the MFP.

SA Premier John Bannon keeps his finger crossed while inspecting the proposed Multi-Function Polis site at Gillman in 1990. Picture: File

A Cabinet submission from Senator Schacht said problems with the project had included attracting investment to Adelaide.

“The location of MFP in Adelaide has made it more difficult to attract private sector participation than originally envisaged,’’ he said.

“While Adelaide is suitable for the urban development side of the project, business development is likely always to be weaker than on the east coast.’’

Cabinet agreed to provide $8 million over two years only.

When the funding was announced in the May budget, Premier Dean Brown noted that more money would have been offered if the Commonwealth were serious about the MFP.

BEAZLEY’S VIEW

FORMER Labor leader Kim Beazley says Australians could turn their backs on democracy if governments are unable to work effectively and deliver major policy reforms, such as those which occurred under the Hawke and Keating administrations.

Mr Beazley, who served as Mr Keating’s deputy prime minister, spoke at a briefing on the 1994 and 1995 cabinet papers.

He said it should still be possible for governments to deliver big reform agendas.

“If you don’t think that it is possible to do that now, you concede democratic government. Quite frankly, if democracies cannot handle the requirements that are there for effective governance, then people will choose a different type of government.’’

Mr Beazley said Mr Hawke was possibly Australia’s greatest peacetime prime minister and revealed that Mr Keating had told him in 1995 that he expected to lose the 1996 election.

He criticised former Labor prime minister Kevin Rudd for acting like a state premier by being too focused on the 24-hour news cycle.