STATEMENT BY THE PRIME MINISTER ON FOREIGN INVESTMENT IN
AUSTRALIA, AT THE BROOK CLUB, NEW YORK 29 JULY 1976
The Prime Minister said tonight in New York that
his discussions here had indicated a strong endorsement by
leading American financiers and businessmen of Australia's
policy of seeking local equity participation in foreign
investment where possible. He said that there had been no
questioning of the Government's approach in this area.
The Prime Minister was speaking after a dinner at
the Brook Club in New York attended by top U. S. business
leaders. A list of those attending the dinner follows:
GUESTS Mr C. F. Barber Chairman, Asarco Inc.
Mr Henry Ford II Chairman, Ford Motor Co.
Mr C. C. Garvin Chairman, Exxon Corporation
Mr John D. Harper Chairman, Alcoa
Mr Alfred Hayes Chairman, Morgan Stanley International
Sir Randal Heymanson, C. B. E. Chairman, American Australian
Association
Mr R. Jones Chairman, General Electric Co.
Mr Frank Milliken President, Kennecott Copper
Corporation
Mr Sydney Morrell Chairman, Sydney Morrell and Co. Inc.
Mr Rupert Murdoch Chairman, News America Inc.
Mr Robert Norris President, National Foreign Trade
Council
Mr Ellmore Patterson Chairman, Morgan Guaranty Trust
Company
Mr David P. Reynolds Chairman, Reynolds Metals Company
Mr Benno Schmidt Managing Partner, J. H. Whitney and Co.
Mr Thomas J. Smith President, Farrell Lines Inc..
Hon. Phillips Talbot President, The Asia Society
Mr Paul A. Volcker President, Federal Reserve Bank
Mr Rawleigh Warner Chairman, Mobil Oil Corporation
Mr Walter Wriston Chairman, City Bank
and Senior Australian Government Officials. o*/
AM 4 ! 9iA iwk
-2-
Mr Fraser said that he had explained that the
Australian Government welcomed overseas investment. The
Government saw an important and increased role for foreign
capital in the development of Australia's resources. Its
attitude was significantly different, in this respect, to
that of the preceding Government.
The Prime Minister said that he had confirmed that
major development projects would not be held up solely on
the ground that Australian equity was unavailable to meet
a particular proportion of total capital. The foreign
investment guidelines providing for Australian equity
participation were being administered flexibly.
These guidelines were being applied in the interests
of theoverall development of the Australian economy. It was
unrealistic to suppose that development of major resource
projects could proceed without the injection of significant
foreign capital. The Prime Minister said that he had outlined recent
measures taken by the Government to restore balance in the
Australian economy and, most importantly, to reduce inflation.
There was still a good way to go: but the Government was
determined to bring inflation under control and to restore
business confidence. The Prime Minister said that he had
indicated his firm conviction that the forthcoming budget
would play an important role here.
The Prime Minister said that his discussions in the
United States suggested an increased flow of American capital
to Australia. Investors were realising the need for early
decisions to be taken to meet looming supply problems. The
strengthening world economic recovery suggested the possibility
of early constraints on capacity to meet resource needs.
As a resource rich country, Australia, the Prime
Minister said, was in a position to take advantage of the
potential increase in investment needs. The Government's
policy was clear. It was now up to foreign investors to take
advantage of the opportunities that offered.