-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Ix2NJzT7hcYf/7XbXzJrptq629KT/LRvAo+9swIp3ZISYG7lIoGcELerQBTL1hYn
 2DesXi086WRR2O12R8P/9A==

<SEC-DOCUMENT>0000943663-01-500101.txt : 20010601
<SEC-HEADER>0000943663-01-500101.hdr.sgml : 20010601
ACCESSION NUMBER:		0000943663-01-500101
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20010531

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:		1651645

	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
<TEXT>

<HTML>
<HEAD>
<TITLE>WEBSITE</TITLE>
</HEAD>
<BODY>
<BR>This briefing is to provide a review of the March 19, 2001 Proxy Statement for the First Australia Prime
<BR>Income Fund, Inc., which was renamed the Aberdeen Asia-Pacific Income Fund, Inc. as of May 1, (the
<BR>symbol, however, will remain FAX).  The proxy statement has been sent to FAX shareholders of record as at
<BR>March 5, 2001, requesting their affirmative vote for various proposals which would enable FAX to increase its
<BR>investment in Asian debt markets.  The FAX Annual Shareholder Meeting held on April 19, 2001 was
<BR>adjourned to permit the further solicitation of proxies with respect to these proposals.  The meeting was
<BR>reconvened on May 10, 2001 and adjourned to continue to permit the further solicitation of proxies.  The
<BR>proposals will be considered when the Annual Meeting is reconvened on June 1, 2001 at 1:00 p.m. at 30
<BR>Rockefeller Plaza 23 rd floor, New York, New York.
<BR>
<BR>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's Manager and Adviser expect this to continue for the
<BR>foreseeable future.
<BR>
<BR>The Fund, with shareholder approval, began adding Asian bonds in 1998, subject to a maximum of 35% of the
<BR>Fund'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.
<BR>
<BR>With Aberdeen Asia-Pacific Income Fund'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.
<BR>
<BR>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.
<BR>
<BR>Aberdeen Asia-Pacific Income Fund is asking shareholder approval for policies to be able to do the following:
<BR>
<BR>&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.)
<BR>
<BR>&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.)
<BR>
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third, increase to a maximum of 35% the Fund's investment in Asian debt securities rated, or
<BR>considered by the investment manager to be, below investment grade.  (Currently, this maximum is 15%.)
<BR>
<BR>&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.)
<BR>
<BR>&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.
<BR>
<BR>Aberdeen Asia-Pacific Income Fund'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'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.
<BR>
<BR>This is an important time in the development of Australian and Asian economies, bond and currency markets.
<BR>"FOR" 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.
<BR>
<BR>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.
<BR>
<BR>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'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's investment policies.  Accordingly, at the adjourned Annual
<BR>Meeting on June 1, 2001, shareholders will be asked to vote on only Proposals 3A, 3B, and 3C.
<BR>
<BR>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.
<BR>
<BR>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.  You may vote your shares by
<BR>telephone through the Proxy Solicitor, Georgeson Shareholder Communications 888-725-4480 from 9 AM to
<BR>11 PM.  They may also answer questions on registered and beneficial shareholder voting procedures.  Please
<BR>help save the Fund from additional proxy solicitation expenses by voting your shares today.
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
