Australia Seen As Investment Haven

Press, Volume CIX, Issue 31906, 6 February 1969, Page 13

Australia Seen As Investment Haven

(N.Z. Press Association—Copyright) SYDNEY, February 4. American companies are expected to invest s2o9m in Australia this year—s4sm less than last year, but s2Bm more than in 1967.

Announcing the figures, the American Chamber of Commerce in Australia said it did not include money to be spent on plant and equipment for the petroleum industry. It said the petroleum industry. would invest about Sl3sm in Australia, New Zealand, and the Pacific Islands. The decline comes after a drop in earriings on total private United States investment from 7.6 per cent in 1966 to 6.4 per cent in 1967. Although final figures were not available, American firms invested about $254m in plant annd equipment in Australia during 1968 compared with slBlm in 1967. British Sentiment British belief in Australia's long-term future as a haven for investment also is unshaken, as shown by the decision of one of the top three British sharebroking houses, Cazenove and Company, to establish an office in Australia. The move to establish the office is hardly significant in

itself since it will be more or less a one-man listening post. That it is the first foreign : broking house to set up an independent broking opera- . tion in Australia is also i largely unimportant. But it does point very firmly to the faith Britain still has in Australian securi- ' ties. Own Market , However, most importantly, it emphasises the huge , amount of Australian scrip I now resident in the United t Kingdom. i This massive amount of i stock , now in the hands of British investors is said to have come to the point of al- ; most cutting out the exi tremely profitable arbitrage . operations which were being . conducted to a great extent > not very long ago. , British stockbroking circles > are increasingly saying that they almost have sufficient > scrip in many stocks to make i their own market.