PRIME MINISTER
FOR MEDIA flPJRSDAY, MAY 7 19 81
TELEX TO THE PREMIER OF SOUTH AUSTRALIA
The Prime Minister has sent the following telex to the
Premier of South Australia, Dr Tonkin, with copies to all
other Premiers and the Chief Minister fn. r.. the Northern
Territory: " My dear Premier,
I refer to your telex today relating to the public
discussion in the last 48 hours on the outcome of the
Premiers' Conference last Monday.
I believe that there has been significant misunderstanding
of these matters.
It should be plainly understood that the precise terms
of the Cabinet authority the Treasurer-and I took to the
Premiers' Conference was that the Commonwealth's fin~ l
decision should be determined at the Conference subject
to the firm proviso that the amount to be offered the
States should not exceed real terms plus an amount to
cover absorption of certain items.
The authority did not, as has been incorrectly stated
or: implied, constitute a decision or direction by the
Cabinet that the States should receive real terms
plus the absorption amount.
In these circumstances claims that the States have been
deprived of an additional amount to which they were entitled
are quite incorrect.
As I have said in the Parliament today, the Commonwealth
representatives at last Monday's Premiers' Conference
were operating within ne gotiating gu-Idelines. There is
nothing new at all in that. Indeed, I suggesf> Lthat the
States would have been greatly offended if the Commonwealth
were to come to such a meeting with a fixed position.
It was left to the Treasurer and me, and our colleague-
Ministers at the Conference, to settle the final
Commonwealth position in the light of the arguments
put to us by Premiers and our current assessment of the
limit to which the Commonwealth should go. / 2
2
Again this is a normal procedure and the Commonweatlh
representatives treated this responsibility-with great
-seriousness and took fully into account the arguments
put forward by the Premiers at the meeting.
The Commonwealth's final decision as conveyed to the
Premiers at the end of the meeting on Monday last
is not negotiable further. There is no question
of providing additional amounts as you suggest in I
your message.
The fullest possible trust and understanding between
the Commonwealth and the State Govrnments is of the
geatest importance,. and will continue to be my
objective and that of the Commonwealth Government.
In the circumstances I do not accept that there is
a need for a special meeting of Heads of Government
as your propose. Yours sincerely,
Malcolm Fraser"