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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000943663-01-500028.txt : 20010418
<SEC-HEADER>0000943663-01-500028.hdr.sgml : 20010418
ACCESSION NUMBER:		0000943663-01-500028
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20010417

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:		1604930

	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
<FILENAME>text.txt
<DESCRIPTION>DEFINITIVE SOLICITING MATERIALS
<TEXT>

               Text of Recording for 800 Number Telephone Call-In



Hello.  My name is Michael  Karagianis  and I am the Assistant Vice President of
First  Australia  Prime Income Fund, Inc. This briefing is to provide an initial
review of the March 19,  2001  Proxy  Statement  for the First  Australia  Prime
Income Fund,  soon to be named  Aberdeen  Asia-Pacific  Income Fund,  Inc.  (The
symbol,  however,  will remain  FAX.) The proxy  statement  has been sent to FAX
shareholders of record as at March 5, 2001,  requesting  their  affirmative vote
for various proposals at the FAX Annual Shareholder  Meeting being held on April
19, 2001.

Shareholder approval has been requested on several proposals, which would enable
First  Australia  Prime  Income Fund to increase  its  investment  in Asian debt
markets. The Fund is seeking shareholder approval to amend the Fund's investment
objective and obtain current income,  possibly also achieving incidental capital
appreciation,  without having to invest primarily in Australian debt securities.
The Fund is also seeking  shareholder  approval to amend its current  investment
policies,  and to enable the Fund to have the  ability to change the  investment
policies later,  subject only to Board of Director  approval.  In addition,  the
Fund is seeking shareholder approval to amend its investment  restrictions which
are not required by the Investment Company Act of 1940.

For  background,  over the past few years Australia has experienced a structural
change leading  government  bond yields down to now be only modestly above those
yields available on U.S. Treasuries. First Australia Prime Income Fund's Manager
and Adviser expect this to continue for the foreseeable future.

The Fund, with shareholder  approval,  began adding Asian bonds in 1998, subject
to  a  maximum  of  35%  of  the  Fund's  total  assets.  This  has  contributed
significantly  to  yield,   currency,   and  capital  gains.  Both  U.S.  dollar
denominated Asian Bonds (known as Yankees) and Asian currency denominated bonds,
have partly  shielded the portfolio  from the negative  impact of the Australian
dollar depreciation versus the U.S. dollar over the past year.

With First  Australia  Prime Income Fund's Asian bonds now totaling 30% of total
assets, there is limited scope to increase earnings and currency diversification
without  increasing the 35% limit.  The proposed change in the Fund's  objective
and policies  would permit Asian bond  investments up to 80% of the Fund's total
assets.

Currently  there are many yield  opportunities  in Asia, such as Korean domestic
10-year  bonds  trading  around 7%, and  lesser-grade  corporate  bonds  trading
between 10% and 12%.  The  Philippine  domestic  10-year bond market is yielding
around 15%  currently.  The US Dollar Yankee market yields as a whole between 8%
and 9%, with certain issuers offering double-digit yields.

First Australia Prime Income Fund is asking  shareholders  approval for policies
to be able to do the following:

     Firstly,   increase  Asian  debt  to  a  maximum  of  80%  of  investments.
(Currently, this is limited to 35% of investments.)

     Secondly,  reduce  the  minimum  investment  in  Australian  debt to 20% of
investments. (Currently, the minimum is 65% of investments.)

     Third,  increase  to a maximum of 35% the Fund's  investment  in Asian debt
securities  rated,  or  considered  by  the  investment  manager  to  be,  below
investment grade. (Currently, this maximum is 15%.)

     Fourth,  allow a  maximum  of 10% of  investments  to be  rated  below  B-.
(Currently, these investments are not allowed.)

     Fifth,  expand the  category  of  derivatives  which may be utilized by the
fund, such as for adjusting Asian currency exposure and duration, and minimizing
transaction costs. Derivatives would also be used to be able to hedge Australian
currency  risk,  and in general  would not be used to leverage  First  Australia
Prime Income Fund.

For future  flexibility in dealing with changing  markets and other  conditions,
and to  reduce  delays  and  costs,  First  Australia  Prime  Income  Fund  asks
shareholders  to approve that any  subsequent  changes to the Fund's  investment
policies be subject only to approval by the Board.

First Australia Prime Income Fund's  Investment  Manager and Adviser expect that
First  Australia  Prime Income Fund's  average credit quality with these changes
will be lowered  from AA- to BBB+,  both of which are within the S&P  investment
grade  guidelines,  and  intend  that the  proposed  alterations  to the  Fund's
portfolio  and  credit  quality  will not have an  adverse  effect on the Fund's
preferred stock and its credit rating.

The Fund's  Investment  Manager and Investment  Adviser propose to implement the
increased investment in Asian debt securities gradually,  with an initial target
of a 50% investment in Asia (from the  approximate  30% currently held) over the
next 18 months.

This is an important time in the development of Australian and Asian  economies,
bond and currency  markets.  A "FOR" vote on the proxies are required to approve
the  proposals.  In fact,  because of the voting  requirements,  to approve  the
proposals,  shareholders  who do not vote will effectively be voting against the
proposals.

Overall,  approval  of the  proposals  would  afford  the Fund  more  investment
management  flexibility  in the  Australian and Asian currency and bond markets,
noting added risk  factors,  and enable the Fund to try to create  higher yields
and greater  diversification  as to credits,  currencies,  countries and hedging
activities.

For a more  complete  explanation  of the  proposals,  and  information  such as
regarding officers and directors, and discussion of risks involved in Asian debt
investment,  management of credit risk, the risk of derivatives,  risks involved
in  leverage,  and  Australian  and Asian  outlooks,  please  refer to the proxy
statement. Additional copies of the proxy statement are available from the Proxy
Solicitor,  Innisfree  M&A, on  800-750-5834,  who may also answer  questions on
registered and beneficial shareholder voting procedures.


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