JjAUST ALIA.
PRIME MINISTER Press Statement No. 528
1 July 1975
DR CAIRNS
Yesterday I was shown a letter in the following
terms:-" SECRET ( CREST) TREASURER Parliament House,
Canberra 2600.
March 7, 1975.
Alco International Pty. Ltd.,
6 Southam Court,
BULLEEN, Vic. 3105
Attention: Mr George Harris
Dear Sir,
The Australidi Wvghmoui i itk d ih v hq
available loan funds from overseas. In the event of
a successful negotiation which may be introduced or
arranged by you, and provided the interest rate for
a term loan does not exceed 8% per annum in total,
we would be prepared to pay a once only brokerage fee
of 2 deducted at the source to you and/ or your nominees.
We would need to be satisfied about the sources of the
funds and the size of the loan would have to be appropriate
to our needs.
Yours sincerely,
( Signed) J. F. CAIRNS SECRET"
On the face of it this letter is inconsistent with a
reply which Dr Cairns gave in the House of Representatives on
4 June 1975 ( Hansard, p. 3294):-
2
-2-
" OVERSEAS LOAN
Mr LYNCH I ask the Treasurer: Did he, in a
letter dated on or about 5 March, offer a commission
of 2 per cent on any loan money
arranged by the recipient of the letter or his
company? Dr J. F. CAIRNS The answer is no. At no
stage did I offer a commission of 2 or any
other amount or give any authority whatever
to any person to do anything other than make
inquiries. Mr Malcolm Fraser No brokerage fee?
Dr J. F. CAIRNS No brokerage fee. Would
O the honoirable member like to ask more questions?"
O I have asked Dr Cairns to give me a written
explanation of the discrepancy tomorrow.
I have also told Dr Cairns that Mr Phillip Cairns'
reported activities concerning housing projects in the
Melbourne metropolitan area would make it possible for him
to make a profit from his position on Dr Cairns' staff.
A: = tted in evidence to the Joint Parliamentary
Committee on e Pecuniary Interests of Members of the
Parliament, Z rezard it as improper for ministerial staff to
put thems.. es Dr allow themselves to be put, in such a
position. nave therefore asked Dr Cairns to give me a
written exl-a-=: ion of this matter also tomorrow.
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