FOR PRESS: PM No. 86/ 1972
AUSTRALIAN INVESTMENT OVERSEAS
Statement by the Prime Minister, the Rt.
Hon. William lcMahon, CH, MP
The Prime Minister, Mr. McMahon, said today that the
Government is undertaking an extensive review of its policy on the
promotion of direct Australian investment in neighbouring countries.
Mr. McNallon said that during his recent visit to Malaysia,
Singapore and Indonesia, he had discussed with the Heads of States
of those countries ways of furthering cemmercial relations between
them and Australia. It was clear from these discussions that
these countries would like to receive more joint investments by
Australian firms. Mr. rYcMahon had assured those countries of his
own desire to see increased Australian investments in the region.
Mr. McMahon said that the Australian Government fully
recognised the mutual benefits accruing from direct Australian
investment in these countries. Such investments, involving the use
of Australian technical know-how and managerial skills, were an
important means by which Australia can contribute to the
development and growth of other countries, particularly those in its
neighbouring regions. Moreover, such investments were an important
way of promoting Australia's own commercial and other interests.
Mr. McMahon added that, under existing policy, exchange
control approval is readily given for direct investments overseas
which involve-a significant measure of Australian managerial
participation in the overseas enterprise and the export of
managerial and technical skills. Approval is also readily given for
all types of investment which promote Australian exports or protect
existing Australian investments abroad.
Against this background, Mr. McMahon had requested the
Deputy Prime Minister and Minister for Trade and Industry, Mr.
Anthony, and the Treasurer, Mr. Snedden to put in hand an
examination of possible measures which the Australian Government
might take to facilitate increased direct investment overseas by
Australian residents in neighbouring countries.
Mr. McMahon said that the examination would include the roles that
double-tax agreements and bilateral investment guarantee agreements
could play in facilitating worthwhile Australian investment overseas.
In conj unction with this examination, an official
Australian investment survey mission, comprising members of the
Export Development Council, representatives of Australian banks,
and senior officials of the Departments of Trade and Industry and
Treasury, will visit Malaysia, Singapore and Indonesia in the near
future. Mr. McMahon said that the main purpose of the Mission will
be to discuss with relevant investment authorities in Malaysia,
Singapore and Indonesia the possibility of greater direct investment
by Australians in local enterprises, particularly those in
preferred areas of activity. In addition, the Mission will
investigate the desirability of establishing Australian Business
Co-operation Committees with Malaysia and Singapore along the lines
of the recently-formed Australia/ Indonesia Business Co-operation
Committee. The establishment of such committees could assist in a
very practical way to promote better commercial relations within
the region. Mr. McMahon said that the Mission will report to the
Government on its return to Australia and will also conduct
seminars and arrange by other suitable means to inform senior
Australian businessmen of the investment opportunities available
in the countries visited.
CANBERRA, October, 1972.