AUSTRALIA’S GIFT TO BRITAIN OF ANOTHER £10 MILLION

Grey River Argus, 17 September 1948, Page 6

AUSTRALIA’S GIFT TO BRITAIN OF ANOTHER £10 MILLION

CANBERRA, Sept. 16.

The Prime Minister, the Rt. Hon. J. B. Chifley, introduced a Bill in the House of Representatives for the gift 'of ten'million pounds to Britain. He said that the provisional allocation of the E.R.P. dollar aid to Britain would not of itself, permit of any improvement in the consumption standards of the British people. On the other hand, a large sterling contribution which Britain had agreed to make, would represent a further call on her 'resources. The amount to be contributed by the United Kingdom had been fixed in relation to the sterling deficit of the participating European countries with the sterling areas as a whole. It would enable the European countries to maintain their purchases not only from the United Kingdom, but also from Australia and the other countries of the sterling area.

Mr Chifley said “Apart from Budgetary considerations, Australia’s ability to make further grants to the United Kingdom will be governed by the position of oui’ total balance of payments and of our international reserves. Mr Attlee has informed us that we can help most with the sterling balances problem if we take it, as a broad objective, to live within our own external income. If in order to do this, it should become necessary to restrict our imports from all sources, the United Kingdom would prefer that we should impose such restrictions rather than call on pur accumulated funds. Much of the. increase in our London funds since June, 1947 has been temporary only. uring the past year, there has been a strong tendency for the payment for Australian exports to be accelerated, and for the payment for imports to be deferred. In due course this will be reversed. Finally, there is a need to ensure that Australia shall maintain, as far as possible, liquid reserves to the possibilities of adverse seasons or of a fall, in export prices.