HOLT’S DEFENCE LIMIT

Press, Volume CV, Issue 30962, 19 January 1966, Page 17

HOLT’S DEFENCE LIMIT

(N.Z.P.A.-Reuter—Copyright) CANBERRA, Jan. 18. Hints that Australia would not be able to meet greatly increased defence commitments came today from the treasurer, Mr Harold Holt, who is expected to be sworn in next Thursday as Australia’s new Prime Minister.

Mr Holt's statement came a few weeks before the ar-

rival in Australia of the British Secretary of State for Defence, Mr Denis Healey, who is coming for major talks on the future of the Austra-lian-British defence relationship in South-east Asia. Mr Holt, who was speaking at the opening of the Australian Citizenship Convention, said Australia could not readily alter the balance of its activity without creating new problems. First Shot Government officials said today that Mr Holt’s statement was clearly the first Australian shot in its negotiations with Mr Healey.

Mr Holt said the Australian effort to expand production and population involved exceptionally heavy capital expenditure. “Its investment in fixed capital absorbs 27 per cent of its gross national product he said. “This is a higher proportion than any other major country except Japan, and compares with 18 per cent in Britain and 17 per cent in the United States." Mr Holt said Australia believed that it was in the interest of security and stability in South-east Asia that she should continue unfalteringly her pace of growth.