They Decided It In 1957

eir Arthur Fadden. a former Aus- . ® Treasurer called at Lae, New t ra ian Treasurer, ca d holi ?“ lne H. dec Ld n an Invitation to H ® i oC ai meeting on the taxaissue because, as he said, he was ’ holiday and had now retired from SlUics anyhow But he made it clear R conversaton to a “PIM” repre- ItatiTe that he thought New Guinea npnnle didn’t have a hope of turning

Kv ihP taxation tide

bB .? tnL* to fieht it a few years ago. but they’ve had it sewn up for some time now,” said Sir Arthur. 1 Sir Arthur’s comment supports what "PIM” said in February, 1958—that income tax for P-NG was approved in Eciple by the Australian Cabinet in pnncip y After that, it was merely a matter of deciding which was the opportune Sne for imposing it. As “PIM” indlcated in that February report, there was at one time a strong chance that

it would be Imposed from July 1. 1958. But presure was brought to bear on Mr Hasluck to defer it. because, (or one thing, the big overseas oil search interests were on the point of deciding whether they would continue their search for oil in Papua or pull out. Tax, it was feared would have decided them to pull out. The effect on the Territory Public Service was also taken into account. (The °h terests finally announced they would pull out, but after the last minute discovery of oil they reversed their de cision).

All these moves, going back to 1957, have been top secret as tar as Can berra or Port Moresby have been con cerned. Officially there was nothing sa id about tax until April this year, when P-NG was given one week’s notice of the Tax bill bombshell that was introduced into the Legislative Council on April 20. And they wonder at New Guinea s indignation.