PRIME MINISTER
PORREIA WEDNESDAY, 24 SEPTEMBERp 1980
AIdD TO PAPUA NEW GUINEA
_ The Pximne Minister, lir. Malcolm Fraser, today announced a
* longs-term aid commitment to Papua New Guinea.
The Prime Minister said that, after r~ ecent discussions with
0 * tGhoev ePrnrmimeen t Mhaind isatceer-e6op Fteadp ut6h-eW ~ rewc omGmuiennedaa, tioSnisr -louf titmhes rCehpiottritt-the
prepared by Sir John Crawford at the Governmflent's request on
the long-term aid arr ngeeni-to apply-from 1 JulY, 48h-
Sir John Crawford had had detailed discussions with
Papua New Guiinea Ministers and fiil while preparin? his
report and a copy of it has -bsian-made--available to th* 0-Coarnient.
of Papua New Guinea.
bnd~ t~~ searranxgemnents, the Government will ' provide Budget.
support grants to Papua New Guinea for each of the five years
1981/ 82 to 1985/ 86. Each year's grant will be calculated
by applying to the ptev-kous year's grant ( AZZl. X~ y
1980/ 8).) a formula which takes account of the inflation rate
in Australia while providing for a 5 per cent annual reduct-ion
in real terms in the_ 14Pel of-the annual graratiT
arrangements also provide for a review in the third year anid
for disciussions between the two Governments on adju-straents
to the Budgetary Bupport. assiSñ, a= ve in th e event of -sustained
changas in the price of gold, an iptatso~ rce of r -evenuein
Papua New Guinea.
On tlhe basis of Sir John Crawford's formula and estimates,
indicative figures for the. grants wouild be:
1981/ 82 SA242 milo; 1982/ 83 $ A253 million;.
1983/ 84 $ A265 -million; 1984/ 85 $ A277 millñ on;. and
A289 mjilion.
Tkhe Pr-inm Moinister oaid tITat, in addit-ion to the Budget support
qrants, the A'uatralian Government would continue to mpeet its
obliqations t1-o for-, er-me-ers--of-the Austral ian-&-f
a59iBtan-e group, would complete the airporb project at
Port*-i, 1oresby and would maintain the training. programns for
Papua New Guineans.
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. The PrimeABinistersaid that these arrangements, which hi., YIIU
_ Goverm-ent would implement if returned to office after
18 October, were a continuation of Australia's substantial
long-term support for Papua tow Guinea's developrent.-As--with--
the 1976 aid arrangement, the new five-year coZnitmet would
enable the Papua New Guinea Government to pursue its economic
and social development policies with advance knowledge of the
r1e ources available to it from Australia while also meeting
Papua New Guinea's objective of increasing selfremliance
through a gradual decline in Australian aid in real terms.
The Prime Minister said that these decisions reflected the;
hicih importance the Government continuied to attach to
Ausa~ trñ ad's-relationi with Papua New Guinea, its nearest
neighbour. 000---i-