10 September 1999
Australian Prime Minister John Howard and Papua New Guinea Prime Minister Sir Mekere Morauta met in Sydney today. Sir Mekere was in Sydney en route to the Asia Pacific Economic Cooperation (APEC) leaders’ meeting in Auckland.
The two Prime Ministers discussed progress in the new Papua New Guinea government’s programme of economic stabilisation and reform, the issues that would be addressed in the forthcoming APEC meeting chaired by New Zealand and regional developments affecting their two countries.
The Australian Prime Minister said that he was impressed by the speed at which the new Papua New Guinea government had addressed the country’s economic problems since coming to office on July 14. The progress included successful re-engagement with the International Monetary Fund (IMF) and the World Bank.
Recognising this good progress on economic stabilisation and reform, Mr Howard said that he had been pleased to advise Sir Mekere that Australia would provide financial assistance for the purpose of early monetary stabilisation, on the basis of continued progress in Papua New Guinea’s consultations with the IMF and the World Bank.
This financial assistance would be in addition to on-going development grant assistance under the Aid Treaty between Australia and Papua New Guinea. The additional assistance would take the form of a loan.
Discussions between the two governments would continue at official level, with a view to finalising agreement on the timing, conditions and size of the loan package during Mr Howard’s proposed visit to Papua New Guinea in early October.
Mr Howard commented that Sir Mekere’s government’s efforts in economic stabilisation and reform had been noted favourably by the international financial institutions. He expects that Australia’s agreement today to provide additional financial assistance in the form of a loan for stabilisation purposes would lead to timely commitments from other Asia Pacific governments which would be represented at the APEC meeting. He will be raising this issue with fellow heads of government during the next few days.
John Howard Prime Minister of Australia
Mekere Morauta Prime Minister of Papua New Guinea