AUSTRALIA FACING DRASTIC MEASFRES

Chronicle (Levin), 21 August 1947, Page 5

AUSTRALIA FACING DRASTIC MEASFRES

Received Wednesday, 7. -45 p.m. CAXBERRA, August 20. A frank warning that the dollai crisis enveloping the world had rapidly worsened and that Australia faceu drastic measures, was given, to the State Preniiers' conference today by 'Mr. Chiflev. He said that unless the situation eased there would have to be severe restrictions of iniports inti Aust ralia. "1 believe our economy is geared tt meet this shock if everybody plays the game," he added. "We have to be prepared for these repereussions. L'. would be a sheer and complete delusion tr tl-io A natm linn nemile t.hink tliev can

escape tlie econoniic difficulties of Britain and perhaps finally of Cnited States. ' ' He was hopeful that the difficulties inight be cured by some ameliorating nieasures emerging from the Anglo American linancial talks now taking place in Washington. In theNlast ihre. months, aiul particularly in tlie lasi couple of days, the position had deteriorated rapidly. The steriing balances held . by Australia in London were "only a fiea bite" coinpare-l with the steriing lioldings of lmlia, Egypt and the Islands which were aiso involved in ihe present crisis. The crisis was due to the following factors: Firstly, that the American loan to Britain of £1, Titi, (100,000 coulu only purchase aiiout 40 per cent. of thr volumo of goods expected; sccondly, that the reliabililation of Europe had not been achieved to jn-ovide inucf needed' export markets for Britain. thirdly, that Europe today was ex periencing utter miserv unparalleled m history; and, fourthly, that ther - cauLd not be a prosperous Europe with out a prosperous Germany or at least ;i Germany able to niaintain herself.