Chapter 11 UtaH Down UNDER 235 Japanese steel companies yielded contracts in mid-1971 that pushed Queensland coal deliveries to nearly four million tons annually by 1973, at a price of $12.50 a ton beginning January 1, 1972, and with incremental rises each year. With public opinion apparently split on the question of foreign investment in the country’s mineral wealth, pressure mounted against the Labour government’s stiffer policies when the cash flowing into Australian pockets slowed. At a bitter meeting between representatives of the mining firms and cabinet officers, tempers flared when a government official called the companies “hillbillies and mugs,” making the government seem overly aggressive and unreasonable. To counter the impression that it had gone too far with ill-conceived and short-sighted policies, the minister of minerals and energy asserted that his government did not seek to reject foreign risk capital nor to “deny foreign companies (including those already in Australia and those yet to come) the opportunity to spend their money and get a reasonable return.” He made it plain, however, that the Labourites would not “spend taxpayers’ money in searching for oil, gas, and hard minerals.” He also promised that the government would do all in its power both to protect Australia’s national interests and to encourage “genuine Australian-owned companies” to stay in the oil and minerals business. Claiming harassment from both the press and the mining industry, he finished with a restatement of Labour’s belief that its policies would not scare away foreign investors because Australia held all the important cards, namely the natural resources themselves. Despite the government’s claim that its tougher policies would not discourage foreign companies, Utah found itself in very difficult straits. First, it had to have an export license for each shipment; but before granting the license, the federal government must be satisfied on the terms of any sale to any customer. This naturally increased prices for the coking coal. Furthermore, the government dramatically increased the tax levy on coal exports to offset any gain to Utah from higher prices. “It also scared the hell out of the buyers,” Littlefield said, “because they could not rely on a contract negotiated with one of the private parties.” To defend themselves, buyers diversified their sources of supply to protect themselves from the whims of the Australian government. This provided an