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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000894579-98-000116.txt : 19980417
<SEC-HEADER>0000894579-98-000116.hdr.sgml : 19980417
ACCESSION NUMBER:		0000894579-98-000116
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		19980416
SROS:			AMEX

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:		DEFA14A
		SEC ACT:		
		SEC FILE NUMBER:	811-04611
		FILM NUMBER:		98595256

	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>DEFA14A
<SEQUENCE>1
<DESCRIPTION>NOTICE TO BROKERS - THE FIRST AUSTRALIA PRIME
<TEXT>




                               NOTICE TO BROKERS
                  The First Australia Prime Income Fund, Inc.
                                   (AMEX:FAX)
              Important Information Regarding Shareholder Proposal
                       Annual Meeting Date: May 14, 1998

Issue:

At the May 14, 1998 annual meeting of The First  Australia Prime Income Fund, in
respect of which proxy materials were mailed on April 6, 1998, shareholders will
be asked to vote on several issues.

We  anticipate  that many of your  clients may contact you  regarding  Proposals
4(a)-(e) and we want to explain this series of proposals which seek  shareholder
approval to amend the Fund's  investment  policies and restrictions to allow the
Fund to invest up to 35% of its assets in Asian debt securities. Please refer to
the proxy materials for more detailed information with respect to the proposals,
including their implementation.

Reasoning Behind Management's Proposal:

The Fund's investment  objective is to provide current income through investment
primarily in Australian debt securities.

When the Fund  was  launched  in  1986,  the aim was to  capitalize  on the high
interest rates available in Australia.  At that time, Australian debt securities
were yielding between 12-14%.

Since that time,  Australian interest rates, as well as those in other developed
nations have declined substantially.

Management  believes that the high interest  rates  currently  available in Asia
offer the opportunity to enhance the Fund's returns.

Key Elements of Proposals 4(a)-(e):

When market conditions warrant,  the Fund would be permitted to invest a maximum
of 35% of its total assets in Asian debt securities,  subject to credit quality,
diversification and other restrictions.

In respect of the Asian debt securities, the Fund would be permitted to purchase
securities below investment grade. However, in no event may more than 15% of the
Fund's total assets be invested in Asian debt securities  rated below investment
grade of BBB (and never below B-) by Standard & Poor's Ratings Group or Baa (and
never  below B3) by Moody's  Investors  Service,  or which in the opinion of the
Investment Manager are of equivalent quality.

The Fund would be  permitted  to invest in  certain  derivative  instruments  to
manage  currency and interest rate risk and, in the case of the Asian portion of
its  portfolio,  to use  derivatives  to  replicate or  substitute  for physical
securities.

The Manager does not envision  investing  the maximum  allowable  percentage  in
Asian debt securities  immediately  upon receiving  shareholder  approval of the
Proposal.

This  proposal  carries  the  unanimous  endorsement  of  the  Fund's  Board  of
Directors.

Fund Management strongly urges shareholders to vote and approve this proposal.

For further information  contact:  Investor Relations at (212) 688-6840 or (800)
626-0993 or EquitiLink USA Inc. at (212) 968-8800 or (800) 522-5465.


</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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