approved, thanks swan, page-80

G'day Buddy

Your first question is a very good one (and I had to chuckle). True enough it would only be a couple of times before I wouldn't invite you back for anymore beers (I'm not that into the bible...)!

I understand your arguments and its tempting to think that way. But I can't go beyond the old economic theory about comparative advantage. We will find other ways of generating wealth and leave the steel making and manufacturing of other commodity items to those countries which have efficiency advantages in those segments. This might not be a good example but look at the UK - how much manufacturing do they still do? They've specialised in financial services for the last few decades and have done extremely well. Granted there are problems now with the model they've been using but they'll modify that and come back. Similarly countries like Sweden, Switzeland and Finland choose to specialise in the manufacturing of very high end and high value added goods such as pharmaceuticals and mobile phones - and they're doing extremely well. Thats what we should be doing. Like the arabs living off oil, we've been living off the sheeps back and minerals for a long time but that dance cant last forever. We need to build off that and get into sectors which we can be world leaders at and specialised in those areas. The old slogan about the clever country is now a bit jaded but thats exactly what we need to do. I happen to work for a manufacturer of a world class and world leading product that we are exporting around the world - one reason why I work for this company because I believe in what we are doing.

This whole subject is very complex and everyone is going to have a different view - which I respect. I'm never gonna say I'm right and anyone else is wrong. Banks versus car companies and other industries. I haven't made up my mind about what the yanks are doing or our own government, in selctively supporting the banking system. I think there's arguments for each industry being unique or special and cant be allowed to fail. But then we're just heading for socialism and thats a sure fire road to inefficient use of capital resources.

In terms of FMG therefore I want them to succeed, because I'm an investor in the company and I believe they're a good company that will do well, but I think it should succeed in its own right as much as possible, just like any other company, without government support, because if it cant, then its just not a good company. If that road to success includes foreign investment, whether it be from Cleveland Cliffs, BHP or Hunan Valin then so be it.

As I said, there's no right or wrong opinion. These are mine and they're not going to be exactly the same as everyone or anyone else's, but I'm always happy to exchange views even if those views don't agree.