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<SEC-DOCUMENT>0000790500-96-000004.txt : 19960718
<SEC-HEADER>0000790500-96-000004.hdr.sgml : 19960718
ACCESSION NUMBER:		0000790500-96-000004
CONFORMED SUBMISSION TYPE:	N-30D
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	19960430
FILED AS OF DATE:		19960717
SROS:			NONE

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FIRST AUSTRALIA PRIME INCOME FUND INC
		CENTRAL INDEX KEY:			0000790500
		STANDARD INDUSTRIAL CLASSIFICATION:	UNKNOWN SIC - 0000 [0000]
		IRS NUMBER:				133334183
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		N-30D
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-04611
		FILM NUMBER:		96595655

	BUSINESS ADDRESS:	
		STREET 1:		ONE SEAPORT PLAZA
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10292
		BUSINESS PHONE:		2122141250

	MAIL ADDRESS:	
		STREET 1:		ONE SEAPORT PLAZA
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10292
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<DESCRIPTION>FIRST AUSTRALIA PRIME INCOME FUND 4/30/96
N30D
<TEXT>


                        (R)
   The First Australia
   Prime Income
   Fund, Inc.
- ------------------------------------------------------------
- -------
   Semi-Annual Report
   April 30, 1996


              Highlights
- -----------------------------------------
- - The Fund's total investment return based on NAV was 8.2%
over the past six
  months and 20.4% over the past twelve months (assuming
reinvestment of
  dividends and distributions).

- - The Fund's total investment return based on share price
was 19.9% over the
  past twelve months (assuming reinvestment of dividends and
distributions).

- - Cash distribution rate of 10.4% over past twelve months.


<PAGE>
                             LETTER TO SHAREHOLDERS

June 13, 1996
Dear Shareholder,
   We are pleased to present this Semi-Annual Report which
covers the activities
of The First Australia Prime Income Fund, Inc. for the six
months ended April
30, 1996. Included in this report is a review of the
Australian and New Zealand
economies and investment markets, along with an overview of
the Fund's
investments, prepared by the Investment Manager, EquitiLink
International
Management Limited.
   The Fund completed a one for five rights offering in May,
which resulted in
primary and over-subscription requests totalling
approximately 213% of the new
shares offered; 38,911,951 shares representing 125% of
primary shares offered
were accepted which generated net proceeds to the Fund of
approximately US$300
million.
Investment Performance
   Assuming reinvestment of dividends and distributions, the
Fund's Net Asset
Value (NAV) total investment return was 8.2% over the past
six months and 20.4%
over the past twelve months ended April 30, 1996. The Fund's
total investment
return based on share price, again assuming reinvestment of
dividends and
distributions, was -3.5% over the past six months and 19.9%
over the past twelve
months ended April 30, 1996.
   Dividends and distributions over the past twelve months
totalled US$0.89 per
share. Based upon the share price of $8.5625 at April 30,
1996, the cash
distribution rate over the past twelve months was 10.4%.
Since all dividends and
distributions are paid after the deduction of Australian and
New Zealand
withholding taxes, the effective yield is higher for those
US investors who are
able to claim a tax credit. The Board's policy is to
facilitate payment of a
stable monthly distribution out of current income and sup
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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