PAPUA NEW GUINEA
My dear Minister
In relation to paragraph 2 of Article 14 of the Agreement on Trade and Commercial Relations between the Government of Australia and the Government of Papua New Guinea signed today, I wish to place on record the following forms of investment encouragement which the Government of Australia may provide in appropriate circumstances to Australian enterprises wishing to invest directly in Papua New Guinea.
The following list describes measures which are currently part of the policy of the Government of Australia on the encouragement of direct investment by Australian enterprises in developing countries and may be subject to variation from time to time.
The Government of Australia will inter alia:
(1) provide investment insurance cover through the Australian Export Finance Insurance Corporation;
(2) disseminate information to potential Australian investors concerning investment opportunities in Papua New Guinea;
(3) assist investors through facilities of the Trade Commissioner Service.
If the foregoing is acceptable to your Government, I propose that this letter together with your confirmatory reply should constitute the understandings of our two Governments in the matter.
Yours sincerely
[Signed:]
JOHN HOWARD
VI. Letter from the minister for foreign affairs and trade of papua new guinea to the minister for business and consumer affairs of australia
Minister for Foreign Affairs and Trade
Papua New Guinea
Central Government Offices
Waigani
6 November 1976
The Hon J W Howard MP
Minister for Business and Consumer Affairs
Parliament House
CANBERRA ACT 2600
My dear Minister
I acknowledge receipt of your letter of today's date regarding the interpretation of paragraph 2 of Article 14 of the Agreement on Trade and Commercial Relations between the Government of Australia and the Government of Papua New Guinea signed today.
The text of that letter reads as follows:
[Here follows text as printed under V.]
I wish to confirm that the Government of Papua New Guinea shares the understanding set out in your letter and that your letter, together with this reply, will constitute the understandings of our two Governments in the matter.
Yours sincerely
[Signed:]
MAORI KIKI
VII. Letter from the minister for foreign affairs and trade of papua new guinea to the minister for business and consumer affairs of australia
Minister for Foreign Affairs and Trade
Papua New Guinea
Central Government Offices
Waigani
6 November 1976
The Hon J W Howard MP
Minister for Business and Consumer Affairs
Parliament House
CANBERRA
My dear Minister
I wish to place on record the understanding of the Government of Papua New Guinea with regard to paragraph 4 of Article 14 of the Agreement on Trade and Commercial Relations between the Government of Australia and the Government of Papua New Guinea signed today.
It is the understanding of the Government of Papua New Guinea that the assurance given in that paragraph will be interpreted in the light of the approved policies of the Government on foreign investment, the relevant elements of which are:
(1) Papua New Guinea, as part of its development strategy, proposes to treat each investment proposal on its merits, within the context of the overall development strategy and policy guidelines. The evaluation of proposals on a case-by-case basis is necessary, even for projects in the same business activity, as they may differ in such respects as size, employment, local content or location. This is particularly important where it may be necessary to limit the number of projects because of, say, market size.
(2) the terms and conditions, of any incentives attached to a project, may vary from that of another project in the same business activity because of the above factors. More favourable treatment, possibly in the form of incentives, may be offered to a project on the basis of some established need, such as decentralization. Such differentiation is on the basis of the characteristics of the project itself, rather than on any element of nationality.
(3) Also, where new investment in a specific industry is being promoted alongside existing investments in the same industry, it may be determined that additional benefits should be offered to encourage new investment. The same benefits would not be offered to the existing enterprise, although the owners of the existing enterprise would not necessarily be barred from competing for the right to participate in the new project and to enjoy the special benefits being offered in respect of that new project. In offering such incentives Papua New Guinea would be mindful of the desirability of avoiding serious damage to existing industries.
If the foregoing is acceptable to your Government, I propose that this letter together with your confirmatory reply should constitute the understandings of our two Governments in the matter.
Yours sincerely
[Signed:]
MAORI KIKI
VIII. Letter from the minister for business and consumer affairs of australia to the minister for foreign affairs and trade of papua new guinea
Minister for Business and Consumer Affairs
Parliament House
Canberra 2600
6 November 1976
Sir Maori Kiki, KBE, MP
Minister for Foreign Affairs and Trade
House of Parliament
Port Moresby
PAPUA NEW GUINEA
My dear Minister
I acknowledge receipt of your letter of today's date regarding the interpretation of paragraph 4 of Article 14 of the Agreement on Trade and Commercial Relations between the Government of Australia and the Government of Papua New Guinea signed today.
The text of that letter reads as follows:
[Here follows text as printed under VII.]
I wish to confirm that the Government of Australia shares the understandings set out in your letter and that your letter together with this reply will constitute the understandings of our two Governments in the matter.
Yours sincerely
[Signed:]
JOHN HOWARD