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Tuesday 25th February 1997

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Issues - The banking system under the spotlight.

International:

Papua New Guinea's move to recruit an army of mercenaries to throw out the secessionist rebels in Bougainville is "absolutely and completely unacceptable" says Prime Minister John Howard.

There was a most embarassing concidence at Port Moresby's international airport earlier when Foreign Minister Alexander Downer arrived while two military aircraft "allegedly" full of military hardware for the mercenaries stood nearby waiting to be unloaded.

The deal with the mercenaries, estimated to cost the PNG Government Au$36 million, comes at a time when Australia gives the government of Prime Minister Julius Chan Au$320 million a year in aid.

Sir Julius in response to the claims said, "Yes, there is training going on at the moment, training for our under-equipped and under-resourced secutiry forces."

"I am sick and tired of our boys coming back in body bags. The team that we have hired to train our security force members are not cowboys, they are a reputable professional company, who are part of our many-faceted strategy to reach a lasting solution to this particular crisis, as well as other matters of national security."

Reports of the operation which is said to involve about 150 mercenaries has led to some of the worst strains in the relationship between Australia and Papua New Guinea.

Howard said, "It (the use of mercenaries) would do great damage to PNG, not only in the eyes of Australia, but in the eyes of people who PNG needs as their friends for many years in the future."

Political:

Prime Minister John Howard yesterday told Parliament that "the laws governing Australians ought to be determined by the Australian Parliament and nobody else".

His comments followed debate on the role of judicial activism after recernt court decisions and a speech by a member of the High Court, Justice Michael Kirby, who provoked criticism last month when he said society was "slowly and somewhat reluctantly" realising that the falsity of the "fairytale" that judges merely declare the law as it exists.

This at a time when the High Court's decision on the native title Wik claim was causing so much angst in Australia.

The Prime Minister also argued that the "mere signing of a treaty should not, in any circumstances, impose a domestic obligation on this country".

Howard was responding to a question by Kalgoorlie Independent Graeme Campbell regarding the commonly expressed view that the Racial Discrimination Act could not be amended or revoked by Parliament because it would contravene an international treaty obligation.

Howard said, "I have the strongest possible view... that the only way in which the law of this country can be changed, or should be changed is through the Parliament of this country passing a law. I hold that view very strongly and it is a view that ought to be reiterated in the context of debate about the respective roles of the Parliament and the courts in the governance of Australia."

Extensive political commentary and links can be found on Palmer's Australian Politics page.

Business:

Seven (television) Network Ltd fronted up in the New South Wales Supreme Court yesterday represented by Roger Gyles QC who alleged that Packer's Publishing and Broadcasting Limited (PBL), Optus Communications and US West had "gone behind (Seven's) back" to sign a deal in August last year.

The deal was to give PBL an option to acquire up to 33% of Pay TV company Optus Vision.

The dispute is having major ramifications with parent company Optus Communications being forced to delay its Au$1 billion plus float. Yesterday Optus said that it would delay the release of its interim profit results, which were due today, because of "continuing uncertainty" arising from litigation.

Gyles said, "Seven will not sit back and watch this agreement (that PBL be allowed to acquire 20% of Optus Vision) being ridden over by the other parties. We don't want Nine (TV Network - a PBL subsidiary) to be given a new option which we didn't know about.

"Quite apart from the default process, our primary case is this should not be allowed to happen. They have gone behind our back... and we wish it stopped."

At the heart of the dispute is whether PBL - which was granted the new option of 33% - should be considered a "new" shareholder under the terms of the Optus Vision's shareholders' agreement.

Optus Communications and US West (each with 46.5% of Optus Vision) have the right to introduce new shareholders to the joint venture during the "standstill period" which prohibits other share transfers before December 31st.

Seven claims that PBL is not a new shareholder because of its direct links with wholly owned subsidiary Pay TV Holdings Pty Ltd - the holder of PBL's existing 5% stake.

The defendants have argued that a related party should still be treated as a "new" shareholder.

Sport:

Things are hotting up in South Africa with the first cricket test between the Australian's and the South African's taking place on Friday.

A lot of gamesmanship is going on with the latest ploy, by the Australians, to claiim that they have discovered a weak spot in the defence of batting captain Hansie Cronje, who the Australians claim has a problem with short-pitched bowling.

Using the Indian's successful ploy as an example, Australian bowler McGrath said, "The plan for all the batsmen will be to let them know it's not going to be easy out there, so let's get stuck into them."

Personal trivia, from the global office:

A humid day today but with promises of a cool change and rain after several days of temperatures in the late 30s.


The Australian Independent & Free Thinking Award (AIFTA)
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