Canberra, 13 July 1967
Confidential
Policies for private investment in Papua and New Guinea
There are two matters for decision—investment promotion and a review of arrangements for Asian investment in Papua and New Guinea.
- 2. An investment promotion programme of $35,000 is proposed. This is hardly modest as claimed when compared with the Australian programme of just over $70,000—the latter has been kept modest because of the doubt that publicity in this field really pays dividends. Furthermore, there is no publicity at all in the United Kingdom because of capital outflow restrictions and for some years now investment promotion in the United States of America has been restricted to investment seminars. While not disputing the importance of attracting private capital to Papua and New Guinea we question whether a programme as proposed would be money well spent. Our view is that particular proposals such as the Chase–Manhattan Bank investment seminar mentioned at para 5 of the Submission should be looked at and decided on their merits by the Ministers concerned.
3. We can see no reason for a further interdepartmental review at this stage of the arrangements applying to Asian investment in Papua and New Guinea. The Cabinet has already laid down general guide lines and some investment propositions have been given approval on a case by case basis.2 There is no explanation as to why and how the present arrangements are inhibiting investment.3
1 Document 130.
2 See Document 57 and 60
3 The note was approved by Bunting. Another version of the note by Bunting and Deane, dated 17 July, shortened paragraph two while retaining its substance (NAA: A4940, C3830).