Canberra, 17 July 1967
Confidential
Grant for Papua and New Guinea Administration in 1967/68
A sizable increase in the Commonwealth grant is again inescapable if the Territory is to continue to move towards economic viability and political self–determination.
2. We are inclined to agree, however, with the Treasurer’s recommendation that the grant should be $77m. and not $81 m. as proposed by the Minister.3 This represents a 10% increase on the original grant approved last year, and on the Treasurer’s reckoning would allow the introduction of an Administration budget close to 16% higher in total than in 1966/67. This rate of increase, coupled with a willingness to consider increasing the Development Bank’s capital later in the year if necessary, is certainly not ungenerous.
[NAA: A5842, 401]
1 The note was endorsed by Bunting.
2 Document 132.
3 See Document 134.