RAPID EXHAUSTION

Otago Daily Times, Issue 26630, 28 November 1947, Page 5

RAPID EXHAUSTION

EMPIRE DOLLAR POOL WARNING BY MR CHIFLEY FURTHER RESTRICTIONS FORECAST CANBERRA, Nov. 27. The Empire dollar pool was being fast exhausted, and the day might not be far distant when Australia might have to rely entirely on her own resources for dollar imports, the Prime Minister, Mr Chifley, told the Federal Parliamentary Labour Party to-day. While the final details of the dollar review were not yet available, the imposition of further drastic economies in dollar exepnditure was inevitable, he told the party. Cabinet would have to discuss the problem when the result of the review was available next week. There was yet no indication of a solution to the Empire dollar problem. Australia would restrict dollar imports to the amount of dollars earned from current exports. Unless America took some speedy action towards a solution of the problem, the outlook for Australia was bleak. Mr Chifley will make a statement to Parliament before the recess. Although he gave no specific data regarding cuts, it is understood that they will relate to tobacco, cars, petrol, newsprint, ana machinery. Confirmed in London

Authoritative information in London confirms Mr Chifley’s statement on the dollar situation, which is so critical that the British Government has established a departmental committee to make available daily statistics showing the drain on dollars, says the Australian Associated Press. The position is so serious that the British Government called into conference last week representatives of the sterling countries in the British Commonwealth and suggested that the departmental committee should be converted into a standing committee with all the Commonwealth countries concerned represented. , , The committee’s task will be to review the flow of dollars daily, how they are being used, which Commonwealth sterling countries are making the heaviest demands, and their rela-tive-contributions to the dollar pool. Delegates on the committee will not have the power to make decisions on

policy, but will merely collate and analyse statistics and forward information 1 to their respective Governments. It is understood that the figures disclosed at the conference last week showing how fast dollars are being used were so staggering that it became imperative to undertake a daily review. Immediate Action Necessary Authoritative London opinion not only agrees with Mr Chifley’s view that immediate action is necessary if the dollar pool is to survive, but emphasises the danger of collapse if the whole policy is not immediately reviewed. While the dollar situation has deteriorated so fast, it is also reliably reported that the drain on gold reserves continues.

Discussing the “ serious dollar position,” the Daily Mail’s political correspondent says he understands that Sir Stafford Cripps has made some administrative changes at the Treasury since he succeeded Mr Dalton as Chancellor. He is now able to assess the dollar position from day to day instead of waiting weeks or even longer before the full effects of dollar exepnditure could be assessed, in retrospect. Sir Stafford, at a meeting of the Parliamentary Labour Party last night, revealed fresh facts about the dollar position. He outlined the position “in all its starkness.”