NO.060

Singapore Telecommunications Limited – Application for Foreign Investment

Approval to Acquire Cable & Wireless Optus Limited

After careful consideration, I have decided to raise no objections under foreign

investment policy to the proposal for Singapore Telecommunications Limited

(Singtel) to acquire Cable & Wireless Optus Limited (Optus), subject to

a number of conditions.

The conditions are as follows:

• Singtel and Optus adhering to the terms of the Deed of Agreement signed

  with the Commonwealth Department of Defence dated 28 June 2001;

• Singtel and Optus adhering to the terms of the Deed of Undertaking, agreed

  with the Commonwealth of Australia and Agencies (as defined by Section 7

  of the Telecommunications Act 1997), dated 1 August 2001; and

• Prior to implementation of the proposal, Singtel and its relevant subsidiaries

  provide, to the satisfaction of the Treasurer, confirmation that an export

  licence by the Office of Defense Trade Controls, U.S. Department of State,

  is not required for the A3, B1, B3 and C1 satellites, ground support equipment

  and technical data.

These conditions are designed to protect Australias security interests and

are imposed at the request, and with the approval, of the Department of Defence

and the Australian Security Intelligence Organization (ASIO). Undertakings

required by the U.S. Department of State have been given by Singtel and Optus,

and formal clearance from the Office of Defense Trade Controls, U.S. Department

of State that no export licences are required must be received before the acquisition

can go ahead on these conditions.

Singtels investment in Australia represents a significant (up to $14 billion)

investment. It means that Australias second largest telephone network will

be able to provide strong competition to the largest network, owned and operated

by Telstra. Consumers will benefit from competition.

The safeguards which have been put in place to protect the national interest

are supported by key Australian security agencies.

CANBERRA

22 August 2001

Contact: Niki Savva

02 6277 7340