AUSTRALIA'S DEFENCE

Chronicle (Levin), 3 September 1946, Page 5

AUSTRALIA'S DEFENCE

Press Assn.-

Vast Expansion Needed MR. CHIFLEY'S PROGRAMME

By Telegraph

-Copyright

Re.ecived /Tuesday, 12.55 a.m. ; A v • .' • / vA- ER-E A, Sept. 2. ; A ' Au st hai-i'A: mifgf • ity ; T uth|4-; nnfke' , a hVt^er - t'owiaftsAlthe^ dje-fene-e said Mr. CHidey, ih ' ;a bWadcM'st sphedh lonight, when'givijlg Lab&nr?s policy. Tlie apprnach to A 'h'dihmoni scheme of defence for the Pacifie should be by agreement between Britain, Australia and New Zealand, and related to those of the United States and other nations with possessions in this area. The Government had approved the creation of scientific and technical bodies to maintain closest liaison for Empire cooperation. Eabour's policy was to assure for Australia the protection of a virile aerial deFence force by maintaining an industrial oraanisaVion capable of produc.ing

the most modern aircraft from its own resources and capable of rapid expansion in the event of a threat. Mr. Chifley said legislation would be; int rodueed in the first session of the! new J'aiiiament, to establish a Defence: Production Commission to administer; nine Government munitions factories; and a number of annexes and supervise; Government investment in industry for; defence purposes. Declaring that Australia was on the, rhreshold of industrial expansion, Mr, : Chifley said the Commonwealth could, look for secondary industry exportj markets to India, China, Japan, South- , east Asia, Malaya and Netherland East; Indies where the living standards, if > increased only a fraction, would estab- ; I'ish markets for all Australia could , manufaeture. The Australian steel in-j dust.ry had in liand a £5,000,000 ex- j pansion programme involving the open- ; •ing up of ii'ou ore deposits, shipya-rds, j coke ovens, tlie mechanising of coal, mines. and new rolling mills. Paper in- 1 dnstries had an expansion programme! of £9,000,000. i Plans eontemplated that 20 per cent; of the wool clip would be processed in Australia compared w-ith the' present ten per cent adtling about £36,000,000 to the national income. Mr. Chifley countered Mr. Menzies' promised 20 per cent tax reduction by saying that the Government would make furthev reductions in direet and indirect taxatiou as circumstances perqnitted.