NO.070

AUSTRALIA-UNITED STATES FINANCIAL SERVICES DISCUSSIONS

U.S. Treasury Secretary John W. Snow and Treasurer of Australia, the Honorable

Peter Costello M.P, are pleased to note the enhanced economic relationship between

the United States and Australia, including in the financial services sector.

Direct and portfolio equity investment by the United States in Australia was

US$105 billion as at the end of 2003, with equity investment in banks and other

financial sector institutions of US$17 billion as at 30 June 2003. Direct and

portfolio equity investment by Australian companies in the United States was

estimated at US$118 billion as at the end of 2003. All of Australia’s major

banks have a presence in the United States, and there is increasing investment

by Australia’s mutual funds in the U.S. economy.

To further promote this relationship, Australia and the United States have

agreed to consider issues regarding financial services, including ways to further

integrate the financial services sectors between the two economies. The substantial

levels of financial sector investment between the United States and Australia

provide a sound basis for building on these economic ties through future discussions.

Both countries recognize the benefits of facilitating cross-border flows of

business and high regulatory standards for investor protection. To this end,

Australia and the United States will discuss certain issues relating to securities,

including cross-border access by foreign collective investment schemes and foreign

markets, other such prudential issues, and related matters. These discussions

will take place as appropriate in light of related domestic regulatory developments.

MELBOURNE

13 August 2004

Contact: Amanda Kennedy

03 9650 0244