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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000943663-01-500065.txt : 20010504
<SEC-HEADER>0000943663-01-500065.hdr.sgml : 20010504
ACCESSION NUMBER:		0000943663-01-500065
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20010503

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:		1620875

	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>defa14a.htm
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Text of Recording for 800 Number Telephone Call-In


<P>&#147;Hello. My name is Michael Karagianis, and I am the Assistant Vice President of the First Australia Prime
<BR>Income Fund, Inc., which was renamed the Aberdeen Asia-Pacific Income Fund, Inc. as of May 1, 2001. This
<BR>briefing is to provide a review of the March 19, 2001 Proxy Statement for the Aberdeen Asia-Pacific Income
<BR>Fund, (the symbol, however, will remain FAX). The proxy statement has been sent to FAX shareholders of
<BR>record as at March 5, 2001, requesting their affirmative vote for various proposals which would enable FAX to
<BR>increase its investment in Asian debt markets. The FAX Annual Shareholder Meeting held on April 19, 2001
<BR>was adjourned to permit the further solicitation of proxies with respect to these proposals. The proposals will
<BR>be considered when the Annual Meeting is reconvened on May 10, 2001 at 1:00 p.m. at the offices of Dechert,
<BR>30 Rockefeller Plaza, 23<SUP>rd</SUP> floor, New York, New York.</P>

<P>For background on these proposals, over the past few years Australia has experienced a structural change
<BR>lowering government bond yields down to now be only modestly above those yields available on U.S.
<BR>Treasuries. Aberdeen Asia-Pacific Income Fund&#146;s Manager and Adviser expect this to continue for the
<BR>foreseeable future.</P>

<P>The Fund, with shareholder approval, began adding Asian bonds in 1998, subject to a maximum of 35% of the
<BR>Fund&#146;s total assets. This has contributed significantly to yield, currency, and capital gains. Both U.S. dollar
<BR>denominated Asian Bonds (known as Yankees) and Asian currency denominated bonds, have partly shielded
<BR>the portfolio from the negative impact of the Australian dollar depreciation versus the U.S. dollar over the past
<BR>year.</P>

<P>With Aberdeen Asia-Pacific Income Fund&#146;s Asian bonds now totaling 30% of total assets, there is limited
<BR>scope to increase earnings and currency diversification without increasing the 35% limit.</P>

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

<P>Aberdeen Asia-Pacific Income Fund is asking shareholder approval for policies to be able to do the following: </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Firstly, increase Asian debt to a maximum of 80% of investments.  (Currently, this is limited to 35% of
<BR>investments.)</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Secondly, reduce the minimum investment in Australian debt to 20% of investments. (Currently, the
<BR>minimum is 65% of investments.)</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Third, increase to a maximum of 35% the Fund&#146;s investment in Asian debt securities rated, or
<BR>considered by the investment manager to be, below investment grade. (Currently, this maximum is 15%.) </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Fourth, allow a maximum of 10% of investments to be rated below B-.  (Currently, these investments
<BR>are not allowed.)</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Fifth, expand the categories of derivatives which may be utilized by the Fund, such as for adjusting
<BR>Asian debt exposure and duration, and minimizing transaction costs. Derivatives would also be used to be
<BR>able to hedge Australian currency risk, and in general would not be used to leverage Aberdeen Asia-Pacific
<BR>Income Fund, Inc. </P>
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<P>Aberdeen Asia-Pacific Income Fund&#146;s Investment Manager and Adviser propose to implement the increased
<BR>investment in Asian debt securities gradually, with an initial target of a 50% investment in Asia (from the
<BR>approximate 30% currently held) over the next 18 months. The Manager and Adviser expect that the Fund&#146;s
<BR>average credit quality with these changes will move from AA- to BBB+, both of which remain within the S&amp;P
<BR>investment grade guidelines.</P>

<P>This is an important time in the development of Australian and Asian economies, bond and currency markets.
<BR>&#147;FOR&#148; votes on the proxy are required to approve the proposals. In fact, because of the vote requirements to
<BR>approve the proposals, shareholders who do not vote will effectively be voting against the proposals.</P>

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

<P>At a special meeting of the Board of Directors held on April 26, 2001, the Board determined to withdraw from
<BR>consideration at the Annual Meeting a proposal (Proposal 3D) to eliminate the requirement that any
<BR>subsequent changes in the Fund&#146;s investment policies be approved by shareholders. In deciding to withdraw
<BR>this proposal, the Board considered concerns expressed by shareholders that shareholders retain their ability to
<BR>vote on any such subsequent changes to the Fund&#146;s investment policies. Accordingly, at the adjourned Annual
<BR>Meeting on May 10, 2001, shareholders will be asked to vote on only Proposals 3A, 3B, and 3C.</P>

<P>The Board of Directors recommends that shareholders vote in favor of Proposals 3A, 3B, and 3C and urges
<BR>shareholders to sign and mail their proxy cards promptly.</P>

<P>For a more complete explanation of the proposals, and information on officers and directors, and risks
<BR>involved in Asian debt investment, management of credit risk, the risk of derivatives, risks involved in
<BR>leverage, and Australian and Asian outlook, please refer to the proxy statement. Additional copies of the
<BR>proxy statement are available from the Proxy Solicitor, Innisfree M&amp;A, 800-750-5834, who may also answer
<BR>questions on registered and beneficial shareholder voting procedures. Please help save the Fund from
<BR>additional proxy solicitation expenses by voting your shares today.</P>
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