Extract of story in this Weekend Australian newspaper regarding...

Extract of story in this Weekend Australian newspaper regarding Joe Hockey's involvement as Federal Treasurer regarding GNC takeover battle in 2013. Text follows:-

Australiahas a “secret deal” under its free trade agreement with the US that requiresCanberra to check with the White House if it plans to reject a takeover offerby a US company, according to Australia’s former ambassador to the US, JoeHockey.

MrHockey, who is now a business consultant based in Washington DC, revealed theexistence of the “side agreement” in the FTA, negotiated in 2004, with the USduring an online seminar hosted by the US Studies Centre on Friday.

MrHockey said he was surprised to learn of the side agreement, contained in aletter that constituted part of the FTA, when he was treasurer in the Abbottgovernment and planning to reject a takeover offer by US grain-handling giantArcher Daniel Midlands for GrainCorp in 2013.

Whenhe was planning to reject the deal on national interest grounds, he said he wassurprised to be told by former Nationals leader Mark Vaile, who negotiated theFTA deal as trade minister in 2004, that the government was obliged to consultwith the White House before making his decision. “I was the first (treasurer)to reject a major America investment in Australia,” Mr Hockey told the seminar.

“Littledid I know there was a secret agreement between (US trade representative) BobZoellick and Mark Vaile (to consult with the White House before a negativedecision was made involving a US company).

“Itwas the Obama White House that told us about it.

Headded: “You can’t always trust people on your own side.”

MrHockey told The Weekend Australian in a conversation after the seminar that hehad consulted with the Obama White House on the ADM deal, telling them:“Frankly, I am going to reject it.”

“Theysaid: ‘We are disappointed’ and I said: ‘I don’t care’,” Mr Hockey said.

Hesaid the agreement, which was included in a “side letter” that was part of theFTA, still applied, requiring any Australian government to consult with theWhite House if it were going to reject any takeover deal by a US company.

“Ifyou reject a US investor coming into Australia, you need to engage in aconsultation with the White House,” he said.

“It’sin force now.”

Hismove to reject the ADM takeover followed lobbying by farm interests against thedeal in the lead-up to the September 2013 election.

MrHockey made the decision after the election, in November 2013.

Butit was a surprise to many business interests as it was a rare moment when a UStakeover for an Australian company was rejected on grounds of national interest.

MrHockey told The Weekend Australian that he rejected the deal because he hadreservations about ADM.

Therejection of the deal followed heavy lobbying by ADM in support of itsproposal, including attempts to lobby Mr Hockey directly during a visit to theUS before the decision was made.

“Theybehaved appalling throughout the bidding process,” he told The WeekendAustralian. “They were trying to hustle me. They were particularly told not toand they did.”

ADM’slobbying also included a visit to Australia by the chief executive at the time,Patricia Woertz, who attempted to put the company’s case to the treasurer.

ButMr Hockey continued to reject ADM’s appeals.