4 IL
FIJIEJIU-! ISTER' Q SII\ TEEEli
flo SQE ED MT IVES -9 JU LY 1975
( CHECKED AGAINST DAILY HANSARD)
THIS HOUSE HAS BEEN RECALLED SO THAT ONCE AND FOR ALL THE
PEOPLE OF AUSTRALIA MAY HEAR AND JUDGE ANY ALLEGATIONS OF
IMPROPRIETY, ILLEGALITY, . ALPRACTICE OR MALFEASANCE AGAINST
THE GOVERNMENT OR ANY MINISTER. IN ALL THE WELTER OF
INFORMATION AND MISINFORMATION OF THE PAST TWO WEEKS, IN ALL
THE ORGY OF TRIVIA DRUMMED UP AS INVESTIGATIVE REPORTING.-
ONE CLEAR FACT EMERGES: NO RESPONSIBLE PERSON HAS EXPRESSLY
OR DIRECTLY MADE ANY SPECIFIC CHARGE OF IMPROPRIETY, OF
ILLEGAL OR CORRUPT CONDUCT ON THE PART OF my GOVERNMENT,
MYSELF OR ANY INDIVIDUAL MINISTER. INNUENDO, INSINUATION,
-THE SNEER,. THE SMEAR, CERTAINLY THE LEADER OF THE OPPOSITION
MR MALCOLM FRASER AND HIS DEPUTY, WILLING TO WOUND YET
LAFRAID TO STRIKE, HAVE PROVED ADEPT AT IT; BUT NO SPECIFIC
CHARGES. IF SUCH CHARGES ARE TO BE MADE, THIS IS THE PLACE
TO MAKE THEM. Now. IS THE TIME TO MAKE THEM. Now IS THE.
TIME TO PUT UP OR SHUT UPS
2. THE PRIVILEGES OF THIS PARLIAMENT FULLY PROTECT
MEMBERS WHO BELIEVE THAT THEIR INFORMATION, EVEN PARTIAL
INFORMATION, EVEN SUSPECT INFORMATION, WOULD WARRANT MAKING
SPECIFIC CHARGES OF IMPROPRIETY AGAINST MINISTERS WHICH THE
LAWS OF DEFAMATION MIGHT RENDER DANGEROUS IF MADE OUTSIDE.
HERE, ALLEGATIONS CAN BE MADE, PERSONS CAN BE NAMED AND
DOCUMENTS CAN BE PRODUCED WITH IMPUNITY AND IMMUNITY. IT IS
29
NOT ONLY A PRIVILEGE WHICH PARLIAMENT BESTOWS BUT A
RESPONSIBILITY WHICH IT IMPOSES. THROUGH THIS PARLIAMENT,
MINISTERS ARE RESPONSIBLE TO THE PEOPLE, BUT AN EQUAL
RESPONSIBILITY RESTS WITH OPPOSITION MEMBERS, TO PRODUCE
THEIR INFORMATION, IF THEY HAVE ANY, TO FORMULATE THEIR
CHARGES, ! F THEY HAVE ANY. THIS IS THE PLACE TO MAKE THEM;
THIS THE PLACE WHERE THEY SHALL BE ANSWERED. THE
INQUISITION BY INNUENDO IS OVER. THIS IS THE TRIBUNAL IN
WHICH THE OPPOSITION AS MUCH AS THE GOVERNMENT, WILL BE
JUDGED -IN THE HIGHEST COURT, BY THE JURY OF THE PEOPLE.
WE ARE ALL ON TRIAL NOW.
3. THERE IS A SPECIAL AND O VERRIDING REASON WHY THIS
PARLIAMENT IS THE PROPER PLACEI FOR IT IS UPON THE VERY
QUESTION OF PROPER PARLIAMENTARY CONDUCT THAT THE ONE
AUTHENTIC EVENT IN A WEEK OF SQUALID INTRIGUE TURNED NOT
THE. PSEUDO EVENTS OF THE MEDIA BUT THE ONE DEFINITE EVENTIP
TREMENDOUS IN THE LIFE OF A PARTY, OF A NATION, SUPREMELY
TRAGIC IN THE LIFE OF A MAN. ON 2 JULY, I ADVISED THE
GOVERNOR-GENERAL TO TERMINATE THE COMMISSION OF THE MINISTER
FOR THE ENVIRONMENT AND CONSERVATION. As DOCUMENTS WHICH I
MADE PUBLIC ON 2 JULY MAKE CLEAR, I TOOK THAT DECISION AND
WAS OBLIGED TO TAKE THAT DECISION ON TWO GROUNDS. THEY WERE
THE SOLE GROUNDS FOR THAT DECISION. FIRST, THERE WAS A
TOTAL DISCREPANCY BETWEEN A REPLY GIVEN ON LjJUNE AND A
LETTER WRITTEN ON 7 MARCH 1975, SECONDLY, REPORTED
33
ACTIVITIES BY A MINISTERIAL OFFICER, A GOVERNMENT EMPLOYEE,
WOULD MAKE IT POSSIBLE FOR HIM TO MAKE A PROFIT FROM HIS
POSITION ON HIS MINISTER'S STAFF. I RECEIVED NO
SATISFACTORY EXPLANATION FOR THESE ACTIVITIES$
4. THE EXPLANATIO1N I SOUGHT FROM THE MINISTER DID NOT
CONCERN THE PROPRIETY OR PRUDENCE CF ANY ACTIVITIES HE HAD
ENTERED INTO As TREASURER CONCERNING PETRODOLLAR LOAN
RAISINGS. EMPHASISE THIS TO DRAW THE CONTRAST BETWEEN MY
DECISION TO TRANSFER HIM FROM THE TREASURY To ENVIRONMENT ON
6 JUNE AND MY DECISION TO ADVISE THE GOVERNOR-GENERAL TO
TERMINATE HIS COMMISSION. THE FIRST DECISION SPRANG FROM MY
BELIEF IN THE UNWISDOM OF HIS ACTION.
IN THE CASE OF HIS DISMISSAL, THE ISSUE WAS VERY
PRECISE; THE STANDARDS WHICH THIS GOVERNMENT SETS AND UPON
WHICH IINSIST, WERE NOT UPHELD. THE PERSONAL INTEGRITY OF
MY COLLEAGUE WAS NOT AN ISSUE AND IS NOT IN DOUBT. THE
FAULT WAS GRIEVOUS, BUT IT LIES NOT IN HIS INTEGRITY OR
REPUTATION AS A MAN OF HONOUR, HE HAS RENDERED REM4ARKABLE
SERVICE TO HIS PARTY AND THE NATION. BUT THE LAPSE FROM THE
STANDARDS WHICH THIS PRIME MINISTER AT LEAST, AND THIS
GOVERNMENT AT LEAST, INSISTS UPON, LEFT ME WITH NO CHOICE.-
AND IN THIS LIES THE SUPREME IRONY OF THE PRESENT
OCCASION. THE DISMISSAL OF A DEPUTY PRIME MINISTER, FOR
WHATEVER REASON, CANNOT BUT BE DAMAGING TO ANY GOVERNMENT.-
THIS DISMISSAL OF A DEPUTY LEADER, FROM THE MINISTRY,
PARTICULARLY ONE HELD IN THE REGARD -AFFECTION -OF HIS
PARTY IN AND OUT OF PARLIAMENT AS IS THE HONOURABLE MIEMBER
FOR LALOR, IS A TRAGEDY FOR ALL THE PARTY, NOT LEAST ITS
LEADER. THE COURSE WAS TAKEN BECAUSE IT HAD TO BE TAKEN.-
BECAUSE OF STANDARDS, BECAUSE OF PARLIAMENTARY PROPRIETY.
7. YET THE GOVERNMENT AND PARTY WHICH HAS SET FOR
ITSELF THESE STANDARDS AND WHICH HAS SHOWN IN ACTION HOW
SWIFT, COMPLETE, CONDIGN IS THE PENALTY FOR ANY LAPSE FROM
THEM, IS AT THE SAME TIME BEING SMEARED FOR IMPROPER
CONDUCT. THE HOUSE CAN JUDGE THESE MATTERS FOR ITSELF.
ASK-LEAVE OF THE HOUSE TO PRESENT PAPERS RELATED TO OVERSEAS
LOAN NEGOTIATIONS WITH MR GEORGE HARRIS AND TO NOTE A MOTION
TO AUTHORIZE THE PUBLICATION OF THE PAPERS.
( WHEN LEAVE GRANTED)
8. PRESENT THE FOLLOWING PAPERS:.
LETTERS FROM THE PRIME MINISTER AND REPLIES TO HIM
AND A MEMORANDUM FROM THE SOLICITOR GENERAL COMMENTING ON
THOSE REPLIES'ARISING FROM THE LETTER TO MR HARRIS OF
MARCH AND THE 2 LETTERS TO HIM OF 15 APRIL AND CABLES AND
LETTERS ARISING FROM THE LETTER TO MR HARz& OF 7 MARCH I
MOVE:
A. THAT THIS HOUSE, IN ACCORDANCE WITH THE
PROVISIONS OF THE PARLIAMENTARY PAPERS ACT.
1908-J. 974, AUTIIOSISES THE PUBLICATION OF
PAPERS RELATING. TO OVERSEAS LOAN NEGOTIATIONS
PRESENTED TO THE HOUSE BY THE PRIME MINISTER
THIS DAY.
( WHEN LEAVE GRANTED, MOVE MOTION PROVIDED BY THE CLERK)
IASK LEAVE OF THE HOUSE TO HAVE INCORPORATED IN
HANSARD THE TEXTS OF THE PAPERS WHICH IHAVE JUST PRESENTED.
9. STATEMENTS MADE IN THIS HOUSE ARE CENTRAL TO ANY
EXAMINATION OF THE MATTER NOW BEFORE THE HOUSE -THE
OVERSEAS BORROWINGS SOUGHT BY THIS GOVERNMENT. THE BASIC
* FACTS HAVE BEEN STATED IN THIS PARLIAMENT IN ANSWERS TO
QUESTIONS, NONE OF THE SO-CALLED REVELATIONS, NONE OF THE
PHOTOSTATS, THE P URCHASED OR P URLOINED DOC UMENTS, NONE OF
TELEAKS FROM THE DISAFFECTED OR DISLOYAL, ALTER BASIC
FACTS WHICH HAVE BEEN WELL KNOWN FOR FIVE MONTHS.
UNTIL WE RECALLED THE PARLIAMENT FOR THIS MATTER,
MEMBERS-OF THE OPPOSITION RELIED ON THE PRESS TO CREATE AN
IMPRESSION OF NEW AND NEVER-ENDING REVELATIONS, WHEN THE
PARLIAMENT WAS SITTING THEY INITIATED NOTHING, ALTHOUGH THE
NATURE AND AMOUNT OF THE PROPOSED LOAN. HAD BEEN PUBLIC
6.
KNOWLEDGE FROM THE SECOND WEEK OF FEBRUARY, WHEN THE SESSION
BEGAN. ON NO OCCASION DID THE OPPOSITIO01 MOVE A SPECIFIC
MOTION DEALING WITH OVERSEAS LOAN BORROWINGS, NOT UNTIL. THE
LAST DAY OF SITTING DID IT MOVE FOR THE SUSPENSION OF
STANDING ORDERS.
11. FOR FOUR MONTHS, THEY TOOK NO OPPORTUNITY TO RAISE
THE MATTER ON THE ADJOlURNMENT OR BY WAY OF AN URGENCY
MOTION*.* IT REFUSED MY REPEATED I NVITATIONS TO PLACE
QUESTIONS ON NOTICE. IT RELIED UPON NEWSPAPERS TO CREATE AN
ATMOSPHERE, AND YET AT THE END OF IT ALL, THE RESEARCH TEAM
OF JOURNALISTS OF THE MELBOURNE AGE, THE PAPER WHICH HAD
BEEN MOST ACTIVE IN THE MATTER, HAD TO CONCEDE THE BASIC
FACT REMAINED AS I STATED IT IN THE PARLIAMENT. IN
YESTERDAY's AGE MR PETER COLE-ADAMS WROTE FROM LONDON:
AS FAR AS WE KNOW AUSTRALI A HAS NOT IN FACT
LOST ANY MONEY AS A RESULT OF THE AFFAIR.."
ICOULD HAVE SAVED THE AGE 8,000 POUNDS STERLING BECAUSE ON
26 MAY I TOLD THE LEADER OF THE OPPOSIT ION:
" THERE HAS BEEN A VERY GREAT DEAL OF SPECULATION
ABOUT THIS. LET ME NAIL IT IMMEDIATELY. NOT A
CENT HAS BEEN PAID TO THE GENTLEMAN, NOT A CENT
HAS TO BE PAID TO THE GENTLEMAN. NOT A CENT WILL
BE PAID TO THE GENTLEMAN."
7.
THE AGE WILL NOT QUERY THEM IT WILL JUST CONDEMN, BEHIND
THAT FACT LIE ALL THE OTHER BASIC FACTS WHICH THERE HAS
NEVER BEEN THE SLIGHTEST ATTEMPT To CONCEAL. THEY ARE
THESE: SINCE 1~ 4 DECEMBER 1974 THE MINISTER FOR MINERALS AND
ENERGY MR CONNOR HAD EXECUTIVE COUNCIL AUTHORITY TO BORROW
UP TO $ US10,00 MILLION AND TO DETERMINE ON BEHALF OF THE
AUSTRALIAN GOVERNMENT THE TERMS AND CONDITIONS OF THE
BORROWING. THE MINISTER WAS ALSO AUTHORISED TO SIGN AND
DELIVER PROMISSORY NOTES FOR THE PURPOSES OF THE BORROW] NGI
OR TO AUTHORISE ANY OTHER PERSON IN WRITING TO SIGN AND
* DELIVER THE PROMISSORY NOTES. THAT AUTHORITY WAS REVOKED ON
7 JANUARY 1975 SINCE IT HAD NOT BEEN USED AND IT CINFLICTED
WITH A DEUTSCHMARK LOAN THEN PENDING# ON 28 JANUARY 1975
THE EXECUTIVE COUNCIL AUTHORISED THE MINISTER TO RAISE A
LOAN NOT EXCEEDING $ US2, OOO MILLION. THE AUTHORITY WAS
REVOKED ON 20 MAY 1975 SINCE NEGOTIATIONS WERE IN TRAIN FOR
A BORROWING OF $ US100 MILLION THROUGH MORGAN STANLEY CO,
INCORPORATED OF NEW YORK. EXECUTIVE COUNCIL AUTHORITIES ARE
-USUALLY SOUGHT ONLY WHEN A LOAN MATTER APPROACHES FINALITY.
THIS DOES NOT MEAN THAT NEGOTIATIONS OR DISCUSSIONS ABOUT
POSSIBIL ITIES ARE PRECLUDED WITHOUT EXECUTIVE COUNCIL
AUTHORITY. 12. THE PURPOSE OF THE BORROWINGS, AS SET OUT IN THE
EXPLANATORY MEMORANDA FOR THE EXECUTIVE COUNCIL, WAS TO MEET
THE NEEDS OF THE AUSTRALIAN GOVERNMENT FOR ' SUBSTANTIAL SUMS
OF NONEQUITY CAPITAL FROM ABROAD FOR TEMPORARY PURPOSES,
8.
AMONGST OTHER THINGS TO DEAL WITH EXIGENCIES ARISING OUT OF
THE CURRENT WORLD SITUATION AND THE INTERNATIONAL ENERGY
CRISIS, TO STRENGTHEN AUSTRALIA'S EXTERNAL FINANCIAL
POSITION, TO PROVIDE IMMEDIATE PROTECTION FOR AUSTRALIA' S
SUPPLIES OF MINERALS AND ENERGY AND TO DEAL WITH CURRENT
AND IMMEDIATELY FORESEEABLE UNEMPLOYMENT IN AUSTRALIA'
THE AUSTRALIAN GOVERNMENT INTENDED TO CARRY OUT THESE
PURPOSES BY SPENDING THE BORROWED MONEYS ON DEVELOPMENT OF
THE NATION IS EN ERGY RESOURCES. AT MY PRESS CONFERENCE
ON 10 JUNE 1975 1 SAID THAT HENCEFORTH NO PERSON WILL HAVE
ANY AUTHORITY TO DO ANYTHING IN RELATION TO BORROWINGS
BY THE AUSTRALIAN GOVERNMENT, UNLESS IT IS DONE WITH THE
TREASURER'IS AUTHORITY.
13, THESE ARE THE BASIC FACTS. THE-FUNDAMENTAL FACTS
OF THE AUTHORISATION4S TO THE MINISTER; FIRST TO RAISE UP TO
0 US4" AMI# LLIoONo 0AN0D THEN-TO . RA. ISE NO T MORE THAN $ US2; 000
MILLION, WERE CONFIRMED BY THE MINISTER FOR MINERALS AND
0ENERGY IN PARLIAMENT ON 23 APRIL IN RESPONSE TO A QUESTION
FROM THE DEPUTY LEADER O F THE OPPOS. ITI~ ON',* M'R LYNCH',' FROM. THE
VERY OUTSET, AS EARLY AS 13 FEBRUARY -IN THIS HOUSE, ON
THIS MATTER -IFREELY ACKNOWLEDGED THAT OPEN GOVERNMENT DID
NOT AND SHOULD NOT APPLY TO TWO FINANCIAL MATTERS -OVERSEAS
BORROWINGS AND THE VALUE OF THE CURRENCY. THE REAL
FINANCIAL UNORTHODOXY, THE REAL BREACH OF CONVENTION, LIES
WITH THOSE WHO WOULD ASSERT THAT A RESPONSIBLE GOVERNMENT
SHOULD NOT STR IVE TO PRESERVE CONFIDENTIALITY IN LOAN
NEGOTIATIONS,
9.
14L. WHAT WERE THEf-AL" INTERNATIONAL CIRCUMSTANCES THE
AUSTRALIAN GOVERNMENT HAD TO CONFRONT? IN 1973 AND 1974
ERUPTIONS OF UNPRECEDENTED MAGNITUDE SHOOK THE FINANCIAL
WORLD. BALANCE OF PAYMENTS SURPLUSES FROM THE SALE OF OIL
BEGAN TO ACCUMULATE IN ENORMOUS QUANTITIES IN THE
ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WORLD,
PRINCIPALLY IN THE MIDDLE EAST. SURPLUSES AMOUNTING TO NO
C) LESS THAN $ US55 BILLION TO $ US6O BILLION ARE BELIEVED TO
HAVE ACCUMULATED IN THIS WAY IN 1974 ALONE. THIS HUGE SHIFT
IN THE LOCATION OF CAPITAL GREATLY ALTERED THE SITUATION OF
THE FINANCIAL INSTITUTIONS OF NEW YORK AND LONDON WHICH HAD
TRADITIONALLY DOMINATED THE INTERNATIONAL FINANCIAL WORLD.
THIS IS NOT TO SAY, OF COURSE, THAT THEY HAVE NOT STRUGGLED
TO MAINTAIN THEIR HOLD ON INTERNATIONAL FINANCIAL BUSINESS.
LIKE THE REST OF US, HOWEVER, THEY HAVE HAD TO DEPEND ON THE
OPEC COUNTRIES, THE MIDDLE EAST, FOR FUNDS.
LET ME POINT OUT THAT THERE HAVE BEEN SOME VERY
LARGE BORROWINGS OF PETRODOLLARS, SINCE THE OPEC-
* SURPLUSES BEGAN TO ACCUMULATE A YEAR AND A HALF AGO.
IN AUGUST 19714 THE INTERNATIONAL MONETARY FUND RAISED
$ US3,11 BILLION, AND THE WORLD BANK HAS MADE A SERIES OF
QUITE LARG BORROWINGS, WE ALSO ARE AWARE OF INDIVIDUAL
BORROWINGS OF $ US1 BILLION OR MORE BY THE UNITED
KINGDOM,' JAPAN AND FRANCE.' BUT IF THE AUSTRALIAN GOVERNMENT
SEEKS IT.-THIS IS SINISTER, THIS IS A SCANDAL. THIS
AUSTRALIAN GOVERNMENT IS INTERESTED IN OBTAINING LOANS FROM
THAT SOURCE, WE WERE LAST YEAR AND WE STILL ARE. W4E MAKE
NO APOLOGIES FOR IT. IT IS ABSURD TO SUGGEST THAT THIS
GOVERNMENT OR ANY FUTURE AUSTRALIAN GOVERNMENT WILL BE ABLE
TO IGNORE THIS POTENTIAL SOURCE. No GOVERNMENT WILL. BE
ABLE TO FLY IN THE FACE OF ECONOMIC REALITY FOR THE REST OF
THIS CENTURY.
16. SOURCES OF OVERSEAS LOAN DO CHANGES TODAY'S
UNCONVENTIONAL SOURCES ARE TOMORROW'I S TRADITION4AL SOURCES.
K WHENEVER POSSIBLE. PREVIOUS AUSTRALIAN GOVERNMENTS HAVE
READILY TURNED TO NEW SOURCES, EVEN THOUGH AT TIMES THERE
HAS BEEN RESISTANCE AND CRITICISM, AT HOME AND ABROADS IN
THE 190O'S AND 1930' s AUSTRALIA BORROWED MAINLY ON* THE*
LONDON MARKET. l AFTER THE WAR WE BEGAN TO LOOK MUCH MORE TO
THE UNITED STATES AND SWISS MARKETS, AND EVEN TO CANADA.
THEN, WITH THE EFFECTIVE CLOSURE OF THE UNITED STATES
CAPITAL MARKET AS A RESULT OF THE INTRODUCTION OF THE
INTEREST EQUALISATION TAX IN 1963, THE AUSTRALIAN
GOVERNMENT TURNED To EUROCURRENCY RAISINGS IN TH E GERMAN.-
DUTCH AND SWISS MARKETS. THE PREVIOUS GOVERNMENT ALSO.
BORROWED ON THE JAPANESE MARKET.
178 MANY MEMBERS, INCLUDING THOSE WHO SERVED IN
PREVIOUS GOVERNMENTS, WILL BE AWARE THAT UNSOLICITED OFFERS
OF OVERSEAS LOANS ARE RECEIVED FROM TIME TO TIME. THE VERY
FACT THAT A NEW SOURCE OF BORROWINGS OF UNPRECEDENTED
MAGNITUDE APPEARED IN THE MIDDLE EAST HAS MEANT THAT THERE
II1
HAS BEEN A GREAT INCREASE IN4 THE OFFERS FROM PEOPLE OUTSIDE
THE TRADITIONAL CHANNELS WHO HAVE CLAIMED TO HAVE ACCESS TO
THESE FUNDS, OBVIOUSLY, A GOVERNMENT WHICH HAS MADE CLEAR
ITS INTEREST IN SEEIKING SUCH FUNDS, AS WE HAVE, WILL
RECEIVE A GREAT MANY SUCH OFFERS. THERE IS NO REASON IN
PRUDENCE OR PROPRIETY WHY THEY SHOULD BE IGNORED, OR JUST
PUSHED ASIDE. TREASURY RECORDS INDICATE THAT OV'ER THE LAST
TEN YEARS FrHERE HAVE BEEN ABOUT FIVE HUNDRED NAMES
ASSOCIATED WITH APPROXIMATELY 250 OFFERS CLAIMING ACCESS TO
LOAN FUNDS AVAILABLE OVERSEAS. ALMOST ONE HUNDRED OF THESE
OFFERS HAVE BEEN RECEIVED IN THE LAST TWELVE MONTHS, NO
DOUBT AS A RESULT OF THE CHANGES THAT HAVE OCCURRED IN THE
DISTRIBUTION OF CAPITAL FUNDS IN THE FINANCIAL WORLD,
18. I HAVE HAD A SCHEDULE PREPARED IN THE TREASURY OF
UNSOLICITED/ UNCONVENTIONAL OFFERS OF LOANS REFERRED TO THE
TREASURER OR THE TREASURY BY MEMBERS OF PARLIAMENT IN THE.
PE RIOD 1950 TO 1975. THE SCHEDULE LISTS APPROACHES MADE
WITHIN THE PERIOD INDICATED, THROUGH THENSERVING THREE
STATE PREMIER'S SEVEN FEDERAL MINISTERS, TWO SENATORS, FIVE
MEMBERS OF THE HOUSE, TWO STATE MEMBERS, ONE STATE
TREASURER AND ONE FORMER PRIME MINISTER AND THE PRESENT
PRIME MINISTER, TO BE PRECISE, THROUGH MY DEPARTMENT, To
PRESS THE POINT IMENTION THAT THE SCHEDULE INDICATES
APPROACHES MADE THROUGH MY OWN GOOD OFFICES AND THOSE, TO
QUOTE LIVING MEMBERS.-OF SENATOR THE HONOURABLE R. C.
12.
WRIGHT, THE HONOURABLE SIR JOHN CRAMER, THE HONOURABLE
DAVID FAIRBAIRN, THE HONOURABLE IAN SINCLAIR, THE RIGHT
HONOURABLE JOHN GORTON, MR MICHAEL MACKELLAR., SENATOR THE
HONOURABLE JOHN WHEELDON, THE HONO URABLE LES JOHNSON, THE
HONOURABLE JIM CAIRNS AND 11R ARMITAGE.
19. SOMETIMES THE APPROACH H AS BEEN MADE TO THE
TREASURER HIMSELF. FOR INSTANCE, IN A LETTER DATED 7 APRIL
0 1961, A MR PISTERMAN OF MELBOURNE, APPARENTLY THE
AUSTRALIAN ATTORNEY OF A SWISS INSURANCE COMPANY, WROTE TO
0 THE THEN AUSTRALIAN TREASURER, THE RIGHT HONOURABLE HAROLD
HOLD PUTTING FORWARD A PROPOSITION FOR A BORROWINGS OF 205
MILLION SWISS FRANCS IN SWIT* ZERL AND BY THE AUSTRALIAN
GOVERNMENT, AFTER EXAMINATION BY THE TREASURY, AND
MR PISTERMAN ABOUT THE PROPOSITION. SUBSEQUENTLY A SENIOR
OFFICER OF THE TREASURY WHO WAS OVERSEAS IN CONNECTION WITH
0 VARIOUS LOAN MATTERS VISITED SWITZERLAND AND HAD
DISCUSSIONS WITH THE SWISS INSURANCE COMPANY TO WHOM
MR PISTERMAN HAD DIRECTED HIM. NOTHING CAME OF THE MATTER.
CLEARLY THE GOVERNMENT my GOVERNMENT IS NOT ALONE IN
RESPONDING TO SUCH OFFERS AND FAIRLY IT MAY BE ASSUMED THAT
THE GOVERNMENT HAS, AS WE SAY, AN OBLIGATION TO CHECK SUCH
REFERENCES. THIS WE HAVE DONE AS HAVE PREVIOUS
GOVERNMENTS, IN THE CASE OF THE AUTHORITY TO THE MINISTER FOR
MINERALS AND ENERGY, GREAT CARE WAS EXERC . ISED, WITH THE
ASSISTANCE OF THE GOVERNMENT'S LEGAL ADVISERS, TO ENSURE
~ tLZ~. Ufl~ 13.
THAT THE INTERMEDIARY, MR K( HEMLANI, WOULD HAVE NO CLAIMS
AGAINST THE GOVERNMENT AND THAT THE GOVERNMENT WAS
PROTECTED AT ALL POINTS IN CONNECTION WITH THE PROPOSED
BORROWINGS. SWISS LAWYERS WERE ACTUALLY ENGAGED TO ADVISE
AT THE SETTLEMENT STAGE AND ARRANGEMENTS WERE MADE FOR A
SENIOR OFFICER AT ATTORNEY-GENERAL'-S DEPARTMENT TO GO TO
SWITZERLAND TO BE PRESENT AT THE SETTLEMENT DISCUSSIONS.
MR KHEMLANI WAS NOT AN AGENT OF THE AUSTRALIAN GOVERNMENT.
HE HAS ALL ALONG BEEN DEALT WITH BY THE AUSTRALIAN
GOVERNMENT AS A PERSON REPRESENTING UNDISCLOSED PRINCIPALS.
THE MINISTER WILL TABLE PAPERS RELATING TO THIS
SECOND NEGOTIATION AND HERE, TOO, THE HOUSE CAN JUDGE FOR
ITSELF. I REPEAT NOT A CENT HAS BEEN PAID, HAS TO BE PAID,
WILL BE PAID TO THE GENTLEMAN.
22. THERE HAS BEEN MUCH DELIBERATE CONFUSION CREATED
ABOUT THE MANNER OF USE BY THE GOVERNMENT OF THESE OVERSEAS
BO RROWINGS. ANY MONEYS BORROWED BY THE GOVERNMENT WOULD
BECOME PART OF THE LOAN FUND, IN THE PUBLIC ACCOUNT,
REQUIRING AN APPROPRIATION BY THE PARLIAMENT FOR
EXPENDITURE FOR THE PURPOSES OF AUSTRALIA. NONE OF THE
MONEYS COU LD HAVE BEEN SPENT EXCEPT IN ACCORDANCE WITH
PARLIAMENTARY APPROPRIATION.
23. LOAN RAISINGS ARE NOT NORMALLY REFERRED TO
CABINET FOR DECISION AND THEY WERE NOT IN THIS CASE. IT
WAS PROPER TO AUTHORISE THE LOAN RAISING NEGOTIATIONS BY
1' 4,
EXECUTIVE COUNCIL INSTRUMENT AND THIS WAS DONE. THE
INITIAL EXECUTIVE COUNCIL MEETING COMPRISED SENIOR
MINISTERS OF THE GOVERNMENT IN THIS INSTAN4CE MYSELF, THE
THEN TREASURER, THE MINISTER FOR MINERALS AN4D ENERGY, AN4D
THE THEN ATTORNEY-GENERAL. BEFORE MAKING THEIR
RECOMMENDATION TO THE GOVERNORGENERAL, THE MINISTERS HAD
THE ADVICE OF THE FIRST AND SECOND LAW OFFICERS OF THE
CROWN. IT WAS PROPER FOR THE GOVERNORGENERAL TO ACT ON THE
ADVICE OF HIS MINISTERS.
24.1 IT IS NO SECRET THAT THE TREASURY HAD RESERVATIONS ABOUT
my GOVERNMENT'IS INTENTION TO AUTHORISE THE MINISTER FOR
MINERALS AND ENERGY TO INVESTIGATE LOAN RAISING OVERSEAS IN
THE TERMS OF THE EXECUTIVE COUNCIL AUTHORITY, I FREELY
ADMIT THAT FACT, WHICH APPARENTLY HAS BECOME KNOWN TO THE
OPPOSITION AND THE ELECTORATE THROUGH THE LEAKING OF
DOCUMENTS. IN THE EVENT WE TOOK THE ADVICE OF OTHER
DEPARTMENTS. IN SAYING THAT WE DID NOT ACCEPT THE TREASURY
RESERVATIONS I MAKE NO APOLOGY, AS I MAKE NO APOLOGY FOR
THE GOVERNMENT'S ORIGINAL CONCEPT OF BORROWING EXTENSIVE
PETRODOLLARS FOR CAPITAL DEVELOPMENT. NOR SHOULD Is IT IS
AN ARROGANT SUGGESTION" THAT A GOVERNMENT, WHATEVER ITS
POLICIES, SHOULD BE FRUSTRATED IN ITS DECISIONS BECAUSE OF
ANY BUREAUCRATIC OPPOSITON.
IS THERE ANY REAL CHALLENGE TO THIS VIEW FROM THE
OPPOSITON? CERTAINLY THERE WAS NONE WHEN IT WAS IN
GOVERNMENT, IF IT NEEDS SUPPORT, I NEED GO NO FURTHER THAN
THE 1968 GARRAN ORATION BY THE FORMER GOVERNoRGENERAL AND
FORMER MINISTER OF THE CROWN, SIR PAUL HASLUCK, WHO
EXAMINED V'ERY CLOSELY THE PROPER RELATIONSHIP BETWEEN
ADVISERS AND MINISTERS.
26. THERE ARE NUMEROUS OTHER AUTHORITIES, SUCH AS
THOSE QUOTED BY THE SOLICITOR-GENERAL IN THE MEMORAN4DUM
INCORPORATED IN TODAY'IS HANSARD. THIS REACHES TO THE HEART
O OF THE MATTER THE REAL ORIGINS OF THIS PRESENT
CONTROVERSY, OUR DECISION HAD POLITICAL OBJECTIVES, IT
o WAS A DECISION ABOUT POLICIES.
27. THOSE-POLICIES MEET* OPPOSITION FROM MANY
QUARTERS. SOME OF THE OPPOSITION COMES FROM THOSE QUARTERS
WHO PREFER TO BELIEVE THEY ARE THREATENED OR DISADVANTAGED
BY OUR POLICIES AND OUR PROGRAM. THE ALLEGATIONS OF
0 IMPROPRIETY ARE JUST A SMOKESCREEN FOR THE REAL GROUND OF
OPPOSITION. THE WAY TO DESTROY THE POLICIES IS TO DESTROY
Q THE MEN WHO PROMOTE THEM.
it 28. THERE IS NO PART OF THE PROGRAM OF THIS
GOVERNMENT SO DEPLORED AND RESISTED BY THE BUSINESS
ESTABLISHMENT THE NATIONAL ESTABLISHMENT AND THE
INTERNATIONAL ESTABLISHMENT, THE ORTHODOX AT HOME AND
ABROAD. THAN OUR DETERMINATION THAT AUSTRALIANS SHALL HAVE
THE MAXIMUM SHARE IN THE OWNERSHIP AND CONTROL OF
AUSTRALIA'IS RESOURCES.
29. EQUALLY, THERE WAS NO ASPECT OF OUR PROGRAM WHICH
RECEIVED MORE SUPPORT FROM THE AUSTRAAAN PEOPLE IN TWO
16,
ELECTIONS, IN THE 19741 ELECTION1 IT WAS PERHAPS THE
DECISIVE ISSUE THE ENEMIES OF THAT POLICY KNOW1 THAT THE
PEOPLE SUPPORT IT, THEREFORE, TO0 DISCOURAGE POPULAR
SUPPORT FOR THE POLICY, THE METHODS THROUGH WHICH THAT
POLICY CAN BE IMPLEMENTED MUST BE DISCREDITED,
BECAUSE THE LOAN PROPOSALS WHICH THE MINISTER FOR
MINERALS AND ENERGY WAS GIVEN AUTHORITY TO PURSUE WERE TO
BE THE VEHICLE FOR CARRYING OUT THOSE POLICIES, THE
PROPOSAL ITSELF MUST BE DISCREDITED. THE BORROWINGS WE
SEEK'FOR ENERGY PURPOSES IN4VOLVE PROJECTS OF IMMENSE SCOPE
AND GREAT CONSEQUENCE TO THE DEVELOPMENT OF AUSTRALIA BY
AUSTRALIANS. THOSE PROJECTS'INVOLVE IMMENSE SUMS OF MONEY.
31. A FEATURE OF THIS WHOLE AFFAIR HAS BEEN THE WAY
IN WHICH FIGURES HAVE BEEN WILDLY BANDIED ABOUT. THE FACT
IS THAT OVER A PERIOD MR CONNOR-DISCUSSED VARIOUS SUMS WITH
MR KHEMLANi. AT NO STAGE, HOWEVER, WAS THERE AUTHORITY TO
CONCLUDE ANY BORROWING OUTSIDE THE TERMS OF THE TWO
EXECUTIVE COUNCIL AUTHORITIES.. IT WOULD BE ABSURED TO
SUGGEST OTHERWISE. EQUALLY THERE HAS BEEN MUCH DELIBERATE
CONFUSION ABOUT TH. E NATURE OF COSTS WHICH MIGHT HAVE BEEN
PAID. IN FACT THE INTEREST RATESPROPOSED AND THE EXPENSES
ASSOCIATED WITH THE LOAN, INCLUDING COMMISSIONS, WERE NEVER
AT ALL OUT OF THE ORDINARY BY COMPARISON WITH OTHER
GOVERNMENT LOAN RAISINGS OVERSEAS. FOR INSTANCE, DURING
19711-75, THERE WERE TEN OVERSEAS BORROWINGS BY THE
0'
17.
AUSTRALIAN GOVERNMENT IN THE GERMANI SWISS AND NEW YORK
MARKETS. THE HIGHEST RATE PAID WAS 10 PER CENT FOR A
GERMAN LOAN OF 200 MILLION DEUTrSCHMARKS IN SEPTEMBER 1.97L1,.
WITH AN ISSUE PRICE OF 99 PER CENT AND TOTAL EXPENSES
ESTIMATED AT 2.22 PER CENT. AS A RESULT THE YIELD TO THE
INVESTOR WAS 10.23 PER CENT AND THE COST TO THE B3ORROWER
10.74 PER CENT, THE INTEREST RATES FOR ALL THE OTHER LOANS
0 WERE INTH E RANGE OF 8 TO 10 PER CENT. EXPENSES OF
BORROWING HAVE ALSO FLUCTUATED, AND IN A NUMBER OF
0 INSTANCES TOTAL EXPENSES HAVE EXCEEDED 5 PER CENT OF THE
FACE VALUE OF A LOAN FOR INSTANCE LOANS RAISED IN
SWITZERLAND IN 1967; 1968 AND-1970 WHEN THE RIGHT
HONOURABLE GENTLEMAN WHO INTERJECTS WAS TREASURER, A Swiss
LOAN RAISED AS RECENTLY AS MARCH 1975 HAD A COUPON RATE OF
8 PER CENT, AN ISSUE PRICE OF 100 PER CENT AND TOTAL
EXPENSES ESTIMATED AT 4.' 37 PER CENTS THE PROPOSAL
BORROWING BEING NEGOTIATED THROUGH MR KHEMLARI HAD A
COMPANY RATE OF 8.35 PER CENT, AN ISSUE RATE OF 100 PER
CENT, AND IT WAS UNDERSTOOD THAT ALL EXPENSES, INCLUDING
THE COMMISSION, WOULD BE MET BY THE LENDER. THIS WOULD
HAVE MEANT THAT THE YIELD TO THE LENDER AND THE COST TO THE
BORROWER WOULD ALSO BE 8.35 PER CENT.
32. FURTHER, IT IS SUGGESTED THAT SUMS LIKE $ US2,000
MILLION ARE SO VAST AS TO BE UNMANAGEABLE OR UNUSABLE. YET
ONLY THIS WEEK, CONZINC RiOTINTO OF AUSTRALIA LTD, MADE A
18,
SUBMISSION TO THE INQUIRY INTO THE PETROLEUM AND MINING
INDUSTRIES BEINIG CONDUCTED BY THE INDUSTRIES ASSISTANCE
COMMISSION, IN ITS SUBMISSION, CRA CLAIMS THAT AUSTRALIA
WILL NEED TO IN\ VEST MORE THAN $ 4,000 MILLION TO BOOST
MINERAL PRODUCTION BY 1980 TO MAINTAIN AUSTRALIA'IS POSITION
IN THE WORLD MINERALS TRADE. IT IS INVESTMENT OF THIS
MAGNITUDE WE HAVE TO BE THINKING ABOUT, LET ME RECALL
SOME OF THE MATTERS WHICH WERE CONCERNING THE GOVERNMENTALONG
WITH ALL GOVERNMENTS IN COMPARABLE COUNTRIES WHEN
DRAFTING THE EXECUTIVE COUNCIL MINUTE OF LAST DECEMBER.
UNEMPLOYMENT WAS RISING TO A LEVEL QUITE UNACCEPTABLE TO MY
GOVERNMENT, THE WORLD ENERGY CRISIS HAD SHOWN NO SIGNS OF
EASING, WORLDWIDE INFLATIONARY PRESSURES COMPOUNDED BOTH
PROBLEMS. 339 WE SAW ONE OPPORTUNITY TO COUNTER THESE
TEMPORARY, SHORTTERM PRESSURES ON4 OUR ECONOMY AND OUR
ENERGY SOURCES, WHILE AT THE SAME TIME REAPING LONG-TERM
BENEFITS OF ENDURING SIGNIFICANCE To AUSTRALIA, IF THE
OPPORTUNITY WAS TO BE SEIZED, WE KNEW WE SHOULD ACT
PROMPTLY. WE WANTED TO DISTRIBUTE THE MONEY WE WERE HOPING
TO RAISE QUITE PROMPTLY IN A WAY WHICH WOULD MOST
EFFECTIVELY COUNTER THE IMMEDIATE PROBLEMS FACING THE
NATION. THESE WERE THE CONSIDERATIONS AND THE
CIRCUMSTANCES WHICH PROMPTED OUR URGENCY.
314. THE OPERATION OF THE FINANCIAL AGREEMENT WAS OF COURSE
CONSIDERED, THE FORMER ATTORNEY-GENERAL ADVISED ORALLY
THAT IN THE EXCEPTIONAL CIRCUMSTANCES I HAVE OUTLINED, THE
19.
BORROWING COULD PROBABLY BE REGARDED AS A BOR'ROWIING FOR
' TEMPORARY PURPOSES' WITHIN THE MEANING OF THE FINANCIAL
AGREEMENT. THERE WERE NO REQUIREMENTS UNDER THE FINANCIAL
AGREEMENT FOR CONSULTATION WITH THE STATE PREMIERS FOR A
BORROWING OF THIS KIN4D FOR TEMPORARY PURPOSES. IT IS OF
COURSE USUAL AND PROPER FOR LOANS TO BE SOUGHT OVERSEAS IN
ADVANCE OF LOAN COUNCIL APPROVAL. THE TERMS AND CONDITIONS
OF A PROPOSED OVERSEAS BORROWING ARE USUALLY REFERRED FOR
APPROVAL TO THE OTHER MEMBERS OF THE LOAN COUNCIL THE
STATES -ONLY WHEN THERE IS A FIRM PROPOSITION TO PUT TO
THEM. IMADE OUR POSITION QUITE CLEAR IN THE HOUSE ON
MAY.* THE LEADER OF THE OPPOSITION ASKED ME WHEN WOULD THE
GOVERNMENT SEEK APPROVAL OF THE LOAN COUNCIL FOR THE
PROPOSED 2,000 MILLION BORROWING BY THE MINISTER FOR
MINERALS AND ENERGY$
IANSWERED: " IF AND WHEN THE LOAN IS MADE"
HE ASKED " WHAT IS THE PURPOSE OF THE LOAN?"
IANSWERED: " FOR MATTERS RELATED TO ENERGY"
PROVIDED WI1TH THE CAPITAL, AUSTRALIA'S VAST
OPPORTUNITIES TO DEVELOP ITS ENERGY RESOURCES COULD BE
QUICKLY REALISED. THE NATION, EVERY STATE AND TERRITORY
WOULD BENEFIT FROM THE DEVELOPMENT OF OUR URANIUM, OUR
NATURAL GAS, OUR COAL OUR IMMENSE NATURAL RESOURCES OF
ENERGY. AUSTRALIA'IS WEALTH OF URANIUM RESOURCES OFFERS
VAST OPPORTUNITIES FOR THE ESTABLISHMENT OF AN ENRICHME14T
PLANT. WE ARE DETERMINED TO EXPLOIT WIESTERN AUSTRALIA'S
ENORMOUS NATURAL GAS POTENTIAL THE NORTHWEST SHELF
BELONGING To AUSTRALIA RATHER THAN SELLING OFF THIS VITAL
PART OF AUSTRALIA'S FARM.
36. IN ORDER TO TAP THE* NATURAL GAS RESOURCES IN
SOUTH AUSTRALIA, NEW SOUTH WALES AND OFF WESTERN AUSTRALIA,
WE HAVE UNDER CONSI DERATION PROPOSALS COSTING OVER $ 1400
MILLION FOR PIPELINES. My GOVERNMENT IS EXPLORING WAYS OF
USING THE VAST COAL DEPOSITS IN NEW SOUTH WALES, QUEENSLAND
AND VICTORIA TO PRODUCE OIL BY HYDROGENATION AGAIN AN
ENORMOUSLY EXPENSIVE OPERATION. THE GROWING COAL MARKET IS
INHIBITED BY THE LACK OF ADEQUATE PORT FACILITIES. WE MUST
UPGRADE OUR MAJOR COAL PORTS. AUSTRALIA IS HEAVILY
DEPENDENT ON FOREIGN-OWNED SHIPPING FOR THE CARRIAGE OF HER
TRADE. WE. ARE'ENTIRELY DEPENDENT ON FOREIGN VESSELS TO
CARRY OUR CRUDE OIL IMPORTS. WE SHOULD NOT BE SO DEPENDENT
ON FOREIGN SHIPPING FOR SUCH VITAL RESOURCES, WE NEED
EQUIPMENT TO ELECTRIFY OUR RAILWAYS IN BRISBANE AND
ADELAI'DE AND MANY TRUNK LINES I . N THE EASTERN STATES,'
21.
37. THESE ARE THE GREAT, THE CHALLENGING USES TO WHICH
WE WERE CONTEMPLATING PUTTING THE FUNDS, ARE WE TO
APOLOGISE FOR SEEKING THESE GOALS? ARE WE TO APOLOGISE FOR
OUR DETERMINATION OUR CONTINUING DETERMINATION -TO SEE
THEM REALISED, OF COURSE, IN ALL SUCH PROJECTS, NOTHING
SHOULD BE DONE BEFORE FULL INVESTIGATION OF THEIR
FEASIBILITY AND COST BENEFITS. QUITE CLEARLY, THERE IS NO
POINT IN INVESTIGATING THE FEASIBILITY OF PROJECTS LIKELY
TO COST AT LEAST $ A3,0OO MILLION, IF ONE HAS NO PROSPECT OF
RAISING SUCH FUNDS. To MAINTAIN AND TO INCREASE OWNERSHIP
BY-THE PEOPLE OF AUSTRALIA OF OUR OWN RESOURCES CALL FOR
IMMENSE SUMS OF MONEY FAR BEYOND EVEN OUR VERY HIGH
* PROPENSITY TO SAVE. WE NEED FOREIGN CAPITAL, BUT AS LOAN
FUNDS, NOT AS EQUITY, IT IS FOR THIS REASON THAT WE WERE
AND STILL ARE PREPARED AND ANXIOUS TO BORROW THESE SUMS OF
MONEY ON THE BEST OF ALL POSSIBLE CREDIT, OUR OWN COUNTRY
AND THE WEALTH OF OUR OWN RESOURCES. AND THE REAL
* OPPOSITION TO THIS LOAN PROPOSAL COMES FROM THOSE HOSTILE
TO THAT OBJECTIVE.
381, IT HAS BEEN SUGGESTED BY SOME OF OUR CRITICS THAT
THESE BORROWINGS WOULD HAVE BEEN * INFALTIONARY. IN ECONOMIC
TERMS OF, COURSE, THIS IS PURE NONSENSE, THE PROCEEDS OF
THESE BORROWINGS WOULD OF COURSE HAVE BEEN INVESTED.
OVERSEAS UNTIL THEY WERE REQUIRED, PROBABLY IN NEW YORK
WHERE A GOOD PART OF OUR INTERNATIONAL RESERVES ARE NOW
INVESTED AND HAVE BEEN FOR YEARS PAST. DOES THE OPPOSITION
22,
SUGGEST THAT IT WOULD BE INFLATIONARY TO IMPORT PIPES,
TANKERS, HYDROGENATION AND ELECTRIFICATION EQUIPMENT,
MINING AND INCLUDING MACHINERY, ALL OR MOST OF WHICH WE
MUST IMPORT. WOULD IT BE INFLATIONARY TO PURCHASE SHARES
IN AUSTRALIAN ENTERPRISES FROM THEIR PRESENT OWNERS IN
LONDON AND NEW YORK?
39. WE SAW OPPORTUNITY THROUGH WHICH THE OBJECTIVES
SO STRONGLY SUPPORTED BY THE AUSTRALIAN PEOPLE IN THE LAST
TWO ELECTIONS COULD BE PURSUED, THAT PARTICULAR
OPPORTUNITY HAS NOT YET BEEN REALISED. IF THE OPPORTUNITY
PRESENTS ITSELF WITH REASONABLE CHANCE OF SUCCESS, WE SHALL
TRY AGAIN, IT IS OF COURSE IMPOSSIBLE TO ANSWER EVERY
ALLEGATION, EVERY INNUENDO THROWN UP BY THE OPPOSITION, BY
THE MEDIA, IN ALL THE OUTPOURINGS OF THE LAST WEEK. IN THE
EXACT WORDS OF THE ABSENT RIGHT HONOURABLE MEMBER FOR
. HIGGINS MR ( ORTON, IN A VERY DIFFERNET CONTEXT IN VERY
DIFFERENT DAYS,
" I CANNOT FOLLOW THE LEADER OF THE OPPOSITION
DOWN EVERY MANHOLE, THROUGH EVERY SEWER
SPARE A THOUGHT FOR THE RIGHT HONOURABLE MEMBER FOR
HIGGINS, OVERWHELMED BY A COMBINATION OF THE PRESENT LEADER
OF THE OPPOSITION AND THE INTERESTS WHO OPPOSED HIS EFFORTS
TO SECURE GREATER AUSTRALIAN CONTROL OF AUSTRALIAN
RESOURCES.
23.
THERE HAS BEEN A THIRD LOAN NEGOTIATION BY THE
WAY IN WHICH IT HAS BEEN GIVEN A SINISTER CONNOTATION, AND
THE WAY IN WHICH THE NAME OF A MINISTER BEHAVING WITH
PERFECT PROPRIETY HAS BEEN DRAGGED IN, IT EPITOMISES THE
CONDUCT AND ENCAPSULES THE MOTIVES OF THE OPPOSITION. THE
TELEVISION PROGRAM " THIS DAY TONIGHT" ON 22 MAY ALLEGED
THAT THE TREASURY WAS NEGOTIATING A LOAN WITH TRANSIA
CORPORATION LTD, IN FACT THAT COMPANY HAD BEEN INFORMED IN
FEBRUARY BY THE TREASURER THAT THE GOVERNMENT DID NOT WISH
TO TAKE ANY FURTHER ACTION IN RELATION TO ITS PROPOSAL.
THERE WAS A FURTHER APPROACH FROM TRANSIA CORPORATION IN
APRIL 1975*, THIS TIME THROUGH SIR WILLIAM GUNN', A
S HAREHOLDER OF THE COMPANY AND ALSO A MEMBER OF THE BOARD
OF THE RESERVE BANK OF AUSTRALIA.
41. A PROPOSAL FOR $ US3.7 BILLION IN LOAN FUNDS WAS
PUT FORWARD. SIR WILLIAM RANG THE MINISTER FOR NORTHERN
AUSTRALIA DR PATTERSON, THE TREASURER BEING UNAVAILABLE, DR
PATTERSON PASSED THE MESSAGE ON TO THE TREASURER, RECEIVED
CONFIRMATION FROM THE TREASURER. THAT THE GoVERNEMNT WAS
INTERESTED IN RAISING LOAN FUNDS AND PASSED A RESPONSE BACK
TO SIR WILLIAM GUNN. ON 20 APRIL 1975 SIR FREDERICK
WHEELER THE SECRETARY OF THE TREASURY TELEPHONED SIR
WILLIAM TO SAY THAT THE GOV'ERNMENT WAS TAKING NO ACTION IN
RESPECT OF PROPOSALS HE HAD MADE. IWAS INFORMED ABOUT
TRANSIA CORPORATION'S INVOLVEMENT ON 23 APRIL 1975 IN
RESPECT OF ANSEPARATE APPRAOCH BY THE COMPANY. ON THIS
OCCASION THE COMPANY WAS REFERRED BY THE TREASURER'S OFFICE
TO THE MINISTER FOR MINERALS AND ENERGY AND SUBSEQUENT
DEALINGS WITH TRANSIA CORPORATION LTD, WERE CONDUCTED BY
THE MINISTER's DEPARTMENT. THE COMPANY HAS NOT BEEN ABLE
TO SATISFY THE GOVERNMENT'IS REQUIREMENTS AS TO THE
VERIFICATION AND IDENTIFICATION4 OF FUNDS AND NOTHING AS
EVENTUATED. 42*, THE PAPERS RELATING To TRANSIA CORPORATION CAN BE
MADE AVAILABLE BUT I WOULD BE RELUCTANT TO PUBLISH THEM.
MANY FINANCIAL INSTITUTIONS ARE MENTIONED. PEOPLE IN THE
FINANCIAL WORLD ARE NAMED AND THEIR STANDING COMMENTED ON.
THE PAPERS RELATE TO TRANSACTIONS IN A DELICATE AREA OF
BUSINESS AND COMPANIES AND INDIVIDUALS ARE ENTITLED TO FEEL
I'N DEALING WITH THE GOVERNMENT THAT THE NORMAL
CONFIDENTIALITY WILL APPLY. SURELY THERE HAS TO BE AN END
TO THE ATTEMPTED DESTRUCTION BY THE OPPOSITION OF THE
COUNTRY'IS GOOD NAME AND REPUTATION AND TO THESE. INSIDIOUS
IMPUTATIONS AGAINST MINISTERS, COMPANIES AND INDIVIDUALS.
43*. OF COURSE*, IN THAT RESPECT, T . HIS HA S BEEN A
DAMAGING AFFAIR.. THE OPPOSITION-INTENDED IT TO BE A
DAMAGING AFFAIR. NO ATTEMPT HAS BEEN MADE TO CHECK THE
BONA FIDES OR MOTIVES OF NOTORIETY HUNTERS AND SELFSEEKSERS,
ATTEMPTS TO DAMAGE MINISTERS AND THE LABOR PARTY
ARE ONE THING -ATTEMPTS TO DAMAGE AUSTRALIA AND
AUSTRALIA'S CREDIT ARE ANOTHER. THESE HAVE FAILED. OF ALL
THE CHARGES MADE THE ONE THAT CAN BE MOST QUICKLY AND FULLY
DISPRO\ VED IS THAT THE AUSTRALIAN GOVERNMENT DAMAGED
AUSTRALIA' S CREDIT-WORTHINESS BY SEEKIN4G THE PETRODOLLAR
LOAN', THE TRUTH IS THAT AUSTRALIA'IS CREDIT HAS NEVER STOOD
HIGHER.' LAST OCTOBER [ IIOODY'S*, ONE OF THE TWO GREAT NEW
YORK CREDIT RATED AGENCIES, HAVE AUSTRALIA, FOR THE FIRST
QTIME, AN AAA RATING, THE H IGHEST AVAILABLE. ON 9 JUNE, AT
A TIME WHEN THE INTERNATIONAL FINANCIAL COMMUNITY WAS
COMPLETELY AWARE OF OUR PROPOSAL TO RAISE THE LOANS WHICH
ARE THE SUBJECT OF THE PRESENT CONTROVERSY, THAT AAA RATING
WAS CONFIRMED BY STANIDARD POOR'S. THE OTHER NEW YORK
CREDIT MATING AGENCY,
414. FOR THE WHOLE PERIOD OF THE EXISTENCE OF THE
EXECUTIVE COUNCIL AUTHORITY, OUR CREDIT RATING HAS REMAINED
AT THE HIGHEST. IF THAT IS NOT ENOUGH, LET ME POINT TO THE
EXTREMELY SUCCESSFUL $ US100 MILLION LOAN FLOATED IN THE NEW
0 YORK MARKET IN JUNE. NEW YORK INVESTORS EXPRESSED A
CONFIDENCE IN AUSTRALIA'S CREDIT WHICH SOME AUSTRALIANS
SEEM QUITE WILLING TO UNDERMINE. ICANNOT TAKE ANY
RESPONSIBILITY FOR ANY DAMAGE OUR OPPONENTS'I APPRAOCH MAY
HAVE; BUT WHERE IT REALLY COUNTS AND WHERE IT CAN REALLY BE
TESTED, WE FIND AUSTRALIA'S CREDIT HIGHER THAN AT ANY TIME
IN OUR HISTORY$
26.
LET ME BRING ALL THESE POINTS TOGETHER IN ONE
SUMMARY OF ALL THE ISSUES INVOLVED. AT NO TIME WAS
PARLIAMENT MISLED ABOUT THE NATURE, SIZE OR SOURCE OF OUR
LOAN PROPOSALS, THEIR PURPOSE WAS TO PURSUE POLICIES IN
THE INTERPESTS OF AUSTRALIAN CONTROL OF AUSTRALIAN
RESOURCES, THE PROPOSAL WAS ECONOMICALLY SOUND. LEGALADVICE
WAS OBTAINED FROM THE GOVERNMENT'S LEGAL ADVISERS
BEFORE THE MINISTER FOR MINERALS AND ENERGY WAS GIVEN
AUTHORITY BY THE EXECUTIVE COUNCIL TO PROCEED WITH
NEGOTIATIONS FOR THE LOAN, PROPER CARE WAS EXERCISED WITH
THE ASSISTANCE OF THE GOVERNMENT'S LEGAL ADVISERS TO ENSURE
THAT THE INTERMEDIARY IN THIS MATTER WOULD HAVE NO CLAIM
AGAINST AUSTRALIA OR THE AUSTRALIAN GOVERNMENT.
AUSTRALIA AND THE AUSTRALIAN GOVERNMENT WERE PROTECTED AT
ALL POINTS IN CONNECTION WITH THE PROPOSED BORROWING.
PROPER CHECKS WERE MADE ON THE BONA FIDES OF THE GENTLEMAN
INVOLVED, NOT ONE CENT HAS BEEN PAID OR WILL BE PAID OR IS
LIABLE TO BE PAID TO THE INTERMEDIARY, THERE HAS BEEN NO
IMPROPRIETY ON THE PART OF THE AUSTRALIAN GOVERNMENT,
THERE HAVE BEEN NO BREACHES OF THE LAW. AUSTRALIA'S
INTERNATIONAL REPUTATION AS A GOVERNMENT WITH PRIME
BORROWING STATUS REMAINS UNCHANGED, REMAINS AS HIGH AS IT
HAS EVER BEEN. THESE ARE THE REAL MATTERS AT ISSUE, THESE
ARE THE IMPORTANT ISSUES.
27.
46. IT ALL BOILS DOWN TO THIS:
WAS THERE IMPROPRIETY IN THE AUSTRALIAN
GOVERNMENT SEEKING A LOAN WHICH WOULD HELP PROMOTE
AUSTRALIA'S IMMEDIATE AND URGENT WELLBEING AND PROMOTE
GREAT LONGTERM AUSTRALIAN OBJECTIVES? WAS THERE ANY
IMPROPRIETY IN THE MANNER IN WHICH THE AUSTRALIAN
GOVERNMENT SOUGHT TO ACHIEVE THOSE OBJECTIVES? THE
OBJECTIVES WERE PROPER' THE MEANS WERE PROPER. LET THOSE
WHO SAY OTHERWISE NOW SPECIFY THEIR ALLEGATIONS OF
IMPROPRIETY OR ILLEGALITY SPECIFY THE PRECISE CHARGE, THE
PRECISE BREACH.
47. THE PURPOSES FOR WHICH WE SOUGHT THE LOAN COMMAND
THE CLEAR SUPPORT OF THE AUSTRALIAN PEOPLE. THE PURPOSES,
THE MEANS WERE PERFECTLY PROPER. THE AUSTRALIAN PEOPLE
HAVE SHOWN THEIR CLEAR SUPPORT FOR OUR OBJECTIVES IN
PROMOTING AUSTRALIAN CONTROL OF AUSTRALIAN RESOURCES, WHICH
IN THE FINAL ANALYSIS IS NOTHING SHORT OF AUSTRALIAN
CONTROL OVER AUSTRALIA'S DESTINY,
48, IN THE PERSPECTIVE OF THESE GREAT OBJECTIVES, THE
AUSTRALIAN PEOPLE WILL DESPISE THE PETTINESS, THE SELFSERVING,
OF THOSE WHO HAVE CHOSEN THIS ISSUE TO UNDERMINE
THE FULFILMENT OF THOSE OBJECTIVES. THEY WILL QUICKLY SEE
THAT THOSE WHO WOULD USE ANY WEAPON TO DAMAGE THIS
28.
GOVERNMENT, DO NOT GIVE A DAMN IF IN THE PROCESS, THEY
DAMAGE AUSTRALIA HERSELF. THAT IS THE GREAT IMPROPRIETY IN
THIS AFFAIR THE WILFUL ATTEMPT TO DAMAGE AUSTRALIA, HER
CREDIT, THE PEOPLE' IS CHANCE TO CONTROL AND DEVELOP THE
RESOURCES OF THEIR OWN LAND. THOSE EFFORST WILL FAIL AS
THEY DESERVE. AUSTRALIA'S. CREDIT REMAINS UNTARNISHED; AND
ON ANY CHARGE OF IMPROPRIETY OR ANY TOLERATION OF
IMPROPRIETY, THE RECORD WILL SHOW THAT THIS GOVERNMENT IS
EQUALLY UNTARNISHED,