BZW
 255 George Street Box 4675 GPO Sydney 1042 Australia
 Telephone (02)9259 5711 Fax(02)9259 5444Telex121 823BZW AUS DX10421SSE

 PHASE 2 AIRPORT SALES

 Following the sale of Melbourne, Brisbane and Perth airports,
 the Commonwealth Government of Australia has announced its intention
 to sell a further 15 Federal airports (Phase 2 airports).

 BZW is managing the sales process on behalf of the Office of Asset
 Sales(OAS).

 The 15 airports are currently owned and operated by the Federal
 Airports Corporation (FAC) and comprise 10 regular public transport
 airports (Adelaide, Alice Springs, Canberra, Coolangatta, Darwin,
 Hobart, Launceston, Townsville, Mount Isa, and Tennant Creek) and 5
 general aviation airports (Archerfield, Essendon, Jandakot, Moorabbin
 and Parafield).

 Enclosed is a preliminary information booklet on the Phase 2 airports.
 The booklet contains basic data on each of the airports as well as
 preliminary information on the Phase 2 sales process and the
 regulatory framework.

 Phase 2 information Package

 To assist potential bidders seeking more detailed information, BZW has
 also assembled an Information Package on the Phase 2 airports. The
 package includes the following information:

 Airports Act 1996;

 Airports (Transitional) Act 1996;

 Department Of Transport and Regional Development Summary of Airports
 Regulations;

 Department of Transport and Regional Development Pricing Policy Paper
 dated November 1996;

 Australian Competition and Consumer Commission paper entitled
 Administration of Airport Price Cap Arrangements, January 1997;

 A general overview of foreign investment policy in Australia;

 Copies of FAC Annual Reports for financial years 1994/95 and 1995/96;
 and

 Phase 2 airport layout maps.

 The cost of the Package (including postage and handling costs) is $200
 Australian Dollars for delivery in Australia and $300 Australian
 Dollars for International delivery. Payment must be made by bank
 cheque in Australian Dollars made payable to the "Collector of Public
 Monies".

 If you wish to purchase the information Package, please send your request
 to Ms Fiona Clowes at the BZW address noted at the end of this letter.

 Your request should also:

 State the name of each Phase 2 airport for which you wish to receive
 airport maps;

 Include full details of the name and postal address to which the
 information should be sent; and

 Include payment by way of AUD$ bank cheque for the relevant amount.

 Copies of the following additional information are also available for
 purchase from BZW:

 Additional Information                       Cost AUD$*

 Master Plans for Coolangatta, Hobart,        $25 per airport
 Jandakot, Launceston, Parafield
 and Townsville

 Selected Airport Regulations                 $30 per set 
 (Environment Protection, Building Control,
 Airport Activities and General Airport Regulations)

  *   Separate courier charge applies if dispatched separately to
 Information Package.

 If you wish to purchase any of this additional information, please
 specify the information you require and include the additional payment
 in the AUD$ bank cheque with your request. Please note that the
 Airport Regulations are only relevant to airports that are sold on a
 leasehold basis.

 Consortium Partnering List

 To assist parties wishing to develop bidding consortia or partnerships
 for one or more of the Phase 2 airports, BZW has prepared a list of
 potentially interested investors. If you wish to have your
 organisation's name included on the list (which BZW proposes to make
 available to other interested parties), please confirm your request in
 writing directly to Ms Fiona Clowes at BZW using the consent form
 attached. The completed consent form may be faxed or mailed. Please
 note that the list will only be made available to parties who have
 themselves consented to be named on the register and whom BZW and the
 OAS consider has a bona fide interest as a potential purchaser of one
 or more of the Phase 2 airports.

 Phase 2 Airports Site Visits

 To enable potential purchasers to familiarise themselves with the
 Phase 2 airports, the Government proposes a limited number of
 pre-tender site visits in advance of the formal bidding process
 commencing. A schedule showing the times and dates of the proposed
 visits is set out in Attachment A to this letter. Each site visit will
 be for approximately 3 to 4 hours and will include an airport
 management presentation and airport site tour.

 If you wish to undertake a site visit on one of the scheduled dates,
 please fax your request to Ms Fiona Clowes of BZW 
 (fax number +61 2 9259 5477) by no later than close of business Friday
 5 September 1997.

 Your site visit request should include the following information:

 Names and brief background of representatives from your organisation
 who wish to attend;

 Airport(s) you wish to visit and proposed times and dates (as per
 Attachment A);

 Confirmation that your site visit request is made solely for the
 purpose of enabling your organisation to assess its interest as a
 potential participant in the Phase 2 sales process.

 Site visits will generally only be granted where BZW and OAS consider
 the party has a bona fide interest as a potential purchaser of the
 relevant airport.

 BZW and OAS reserve the right both to limit the number of attendees
 at any of the site visits and to cancel any scheduled visits.
 Additional site visits may also be arranged at the discretion of BZW
 and OAS.

 Enquiries

 Should you have any enquiries in relation to the Phase 2 sales
 process, please contact one of the following BZW representatives:

 Ari Droga
	        Tel: +61 2 9259 5913

 Peter Brownie	Tel: +61 2 9259 5673
		Mobile: 0411 426 869

 Heath Lee      Tel: +61 2 9259 5965