COMMONWEALTH GOVERNMENWV
DIGEST OF DECISIONS
AND ANNOUNCEMENTS
IMPORTANT SPEECHES
THE PRIME MINISTER
( THE RIGHT HON. J. B. CHIFLEY).
No. 137.
PERIOD IST JULY, 1948, TO 21s'r AUGUST. 194S.
L P. Jansrmos. Ckmennnwealh Gomenmml Pi w.
( Printed in Auitra[ 6.)
4738.
I
SERVICE PAY RATES.
PERMANENT FORCES--RETIREMENT SCHEME.
On 1st July, 1948, the Prime Minister ( Mr. Chifley) announced that
the Defence Forces Retirement Benefits Board would comprise-
Messrs. H. C. Newman ( Treasury), F. X. Hassett ( Naval Board). W. M.
Anderson ( Military Board). J. E. Hewitt ( Air Board).
( For earlier references, please see Nos. 134, page 6; 135, page
REPATRIATION-TEACHING.
On 3rd August, 1948, Mr. Chifley said-
Cabinet decided to-day to authorize the Repatriation Commission
to extend its functions for the establishment of courses of training cr
other measures to serve the necessities of treatment. The commission
will be authorized to-
Make available facilities for post-graduate and under-graduate teaching and
. studies in medicine in all the aspects which the teaching autlhorities ( univer-
-ities and the like) consider are covered by the types of patient under treatment
a nid the facilities available at the commission's medical institutions.
1 EEstablish courses of training in the nursing of tulerculous. diseases for the
certificate in Victoria or any other State which nmay later inaugurate such an
. additional nursing qualification.
Establish courses of training in the nursing of psycliatric dicleses.
Afford training and instruction in physiotherapy, occupational therapy,
medical and psychiatric social studies, clinical psychology. radiological and
pathological technique. THE GOVERNMENT.
ACTING MINISTERS.
On 3rd July, 1948, the Prime Minister ( Mr. Chifley) said-
The Attorney-General ( Dr. Evatt) will be Acting Prime Minister
and the Minister for Post-war Reconstruction ( Mr. Dedman) will be
. cting Treasurer during my absence overseas."
On 21st July, 1948, Mr. Chifley said-
The Minister for External Affairs ( Dr. Evatt) is leaving Australia
on the first stage of his journey overseas on 22nd July, 1948. I will act
as Minister for External Affairs and the Minister for Health and
Social Services ( Senator McKenna) will act as Attorney-General as
from 23rd July and for the period of Dr. Evatt's absence abroad."
PEACE.
GERMANY-BERLIN POSITION.
On 6th July, 1948, the Minister for External Affairs ( Dr. Evatt)
said that following the cutting off by the Soviet authorities of all surface
methods of-supplying Allied occupation forces and the German population
in the three western sectors of Berlin, the British, United States
and French Governments, in their determined employment of emergency
supply measures, were protecting their undoubted juridical rights.
4738.-2.
The presence of occupation forces in Berlin was clearly authorize'd
by the agreement of 1944 nominating Berlin as the centre of Allied
control of Germany and setting up machinery for Allied government
of the city. The agreement had been subsequently amended to provide
for the participation of France and had been made public in joint
four-power statements issued with the declaration on the surrender of
Germany, on 5th June, 1945. The agreement became operative before
the Potsdam Agreement, so that the Soviet contention that the western
powers have brought four-power control to an end by violating thr.
Potsdam Agreement was clearly inadmissible. In the interests of world
peace, it was hoped that all outstanding matters affecting Berlin would
soon be discussed between the western powers and the Soviet Union,
but no permanent easing of tension could result unless the Soviet Union
recognized clearly and unequivocally the undoubted occupation rights of
the western Allies. These had been hardly won in the common struggle
against Hitler and could not be set aside or nullified by unilateral acts.
On llth July, 1948, the Prime Minister ( Mr. Chifley) said*-
It is unthinkable that the western Allies should do other than hold
on in Berlin. There is no question that Australia supports the westerii
Allies." On 18th July, 1948, Mr. Chifley said-
I went to Berlin to gather some real background information of the
position. The British Foreign Secretary ( Mr. Bevin) thought it
highly desirable for me to get the atmosphere of the position and to
talk to German trade union and political leaders.
" I have nothing more to say on the Berlin position than what I
said when I was there-that for the western powers to take any other
stand was unthinkable."
GERMANY-BERLIN POSITION, AIR LIFT.
On 2nd August, 1948, Mr. Chifley said-
Cabinet decided to-day to offer to the British Government the
use of ten Douglas Dakota aircraft to assist in the air lift to Berlin, if
required. If the offer is accepted, the ' planes will be flown by Royal Australian
Air Force crews to Britain, where the uses to which the aircraft
are put will be determined by the British authorities."
ITALY-TREATY, RATIFICATION.
On 12th July, 1948, Dr. Evatt announced that the Australian instrunment
of ratification of the peace treaty with Italy had been deposited
on 9th July, 1948, and the state of war between Australia and Italy had
ended as from that day. At Berlin.
ROUMANIA, BULGARIA, HUNGARY, FINLAND-TREATIES,
RATIFICATION.
On 13th July, 1948, Dr. Evatt said that the Australian instruments
of ratification of the peace treaties with Roumania, Bulgaria, Hungary
and Finland had been deposited on 10th July, 1948, and the state of war
between Australia and those countries had ended as from that day.
JAPAN-MINISTER'S STATEMENT, JULY, 1948.
On 22nd July, 1948, Dr. Evatt said-
It is becoming evident that peace and stability in the Pacific and
in Asia will be attainable only so far as there is peace and stability in
Europe. The problem is not regional, it is global. The situation in
Berlin and Europe generally, where there is an acute dispute between
Russia on the one hand and the western democracies on the other, must
have a direct effect in delaying any peace settlement with Japan.
Australia's concern in the European situation is direct and vital.
Certainly no peace will endure unless it is based on justice and
reached by free agreement in accordance with the principles of the
United Nations Charter. The next meeting of the United Nations may
well become a turning point in world history. I am hopeful that the
Assembly will bring public opinion to bear on both political and
economic aspects of international disputes and so contribute to the
prevention of a third world war."
EXTERNAL TERRITORIES.
PAPUA-NEW GUINEA-COPRA.
On 7th July, 1948, the Minister for External Territories ( Mr.
Ward) announced that the Australian New Guinea Production Control
Board would relinquish control of marketing the Territory of Papua-
New Guinea production of copra. The present rate of production of
copra, over 40,000 tons a year, was about two-thirds of the potential
output of the remaining coconut plantations and groves of the territory
and negotiations were in course with traders in the territory to secure
an orderly changeover of marketing activities under a system of export
licences. The board, which was established during the war to secure
from the territories the maximum possible produciton of copra and
other tropical produce, would then wind up its affairs.
BRITISH COMMONWEALTH OF NATIONS.
CO-OPERATION-PROPOSED SECRETARIAT.
On 8th July, 1948, the Prime Minister ( Mr. Chifley) said*-
" Suggestions have been made for the establishment of a British
Commonwealth of Nations Secretariat hut there is no evidence at present
of anything of a concrete character."
( For earlier references, please see No. 98, page 46; No. 114, page 3.)
At London.
6
PRIME MINISTER'S BROADCAST.
On 12th July, 1948, Mr. Chifley broadcast over the British Broadcasting
Corporation and Australian Broadcasting Commission networks.
Mr. Chifley said-
Good evening. I speak to-night to the people of Great Britain, to
my own people in Australia and to listeners in the Pacific and North
American areas.
We live in difficult times, the world is suffering an uneasy peace.
I have just returned from Berlin where I went so that I might get a
first-hand picture of a very difficult position. Economic and political
problems of a character never before encountered in our history have
to be faced daily. There is little respite from them. But we are a
sturdy race. Our Comnionwealth is composed of very determined
people. If I needed any reminder of that fact, I have only to look at
what the people of Britain have suffered and are suffering and what
they are doing to lift themselves up towards a happier way of life.
During the past week I have had the opportunity of talking with
the British Prime Minister ( Mr. Attlee) and a number of his Ministers.
It is natural that the British people are wondering what will be the
outcome of the talks, while my own people at home will be interested to
know what tasks lie ahead of them. My mission here at London,
primarily, was economic. But I have also had more than one talk
with the Foreign Minister ( Mr. Bevin) from whom I have obtained a
very full picture of the world scene. I aim having talks with the
Minister of Defence and with the Service Ministers.
Perhaps I can best sum up my objective in coming to London
in a sentence: I want to obtain, and to give, a clear understanding of
the economic difficulties that confront the people of Britain and Au.-
tralia. We want to determine, as well as circumstances will permit,
our joint policies for the future.
" I say to my own people that the path is not easy, that the going
is hard and will continue to be hard. Sir Stafford Cripps said last
week that Britain was running into debt on her overseas trade to the
tune of more than a million pounds for every working day. Australians
know that our future is linked with Britain, not only hy ties of rnee
and kinship, but because of hard, practical reasons.
Tl'hre is a bond of gratitude between Britain and Australia
because of the gallant part played by Britain in the war and in the
post-war struggle to re-establish herself, and, at the same time, to assist
others. The next three years may very well be the most crucial in the
history of the British peoples. The key to the situation lies in production
and I say to every Australian that hard work is not only a national
duty but a stern responsibility if we are all to survive.
" I am not being alarmist. I have the advantage of knowing not
some of the facts, but all the facts. I have talked with the best brains
in Britain; men who devote day and night to the task.
I
The Australian people have had imposed on them severe restrictions
in order that the use of dollars should be reduced. The Australian
Government realizes that, without substantial imports of capital
equipment from America, the progress of the country's development
will be seriously delayed. Nevertheless, the Australian Government
is prepared to take appropriate action in the future; however strong
it may be. I also add, in view of incorrect reports, that I did not
coime to Britain to demand more dollars. My mission has been aimed
at obtaining the fullest information so that economic policy, particularly
as it affects dollars, can be laid down with reasonable certainty
and that the efforts of the United Kingdom and Australia can be
properly co-ordinated.
To the British people, I say that I believe that much can be done
in Australia to expand production of beef, dairy products and wheat.
We lhav good seasonal prospects in Australia and it is hoped, for
example, that lamb production this year will be 10,000,000 above an
average year.
" I know that numbers of people in England, Scotland, Ireland
: n d Wales are interested in going to Australia. The fullest understanding
exists between the British and Australian Governments on
this matter and to those who feel that delays are endless, I point out
that, first, the ships have to be available, and, secondly, we have to
pursue vigorously, which we are doing, a housing construction proegrnmin'
Time is the arresting factor.
It has been my privilege and pleasure auring my stay to meet Their
Ma. jesties and the Princess Margaret and I have assured them, on
behlilf of the people of Australia, of the warmest welcome when they
visit us next year.
Let : ijc. in saying good-night to you, tell you that the Australian
people are constantly thinking of you. Our servicemen fought alongside
you in two wars. We are standing by you now in fighting for
economic stability. That may be, as I have said, a long fight, and
each obstacle must be faced with the same courage that the people of
Britain have shown in the last ten years. It will he our privilege, and,
ind', d, oui' duty. to help in every way we can."
On 25th July, 1948, Mr. Chifley broadcast over some commercial
stations-Mr. Chifley said-
Good evening. As you know, I have just returned from a mission
to London. My objective was primarily to discuss economic problems
of mutual interest to the British and Australian Governments, but I
also dealt with a number of other matters. All told, I attended two
meetings of the British Cabinet and also talked with eleven members
of the British Government-and with some of the Ministers I talked
more than once.
In addition, I visited Berlin, where I spent some hours with
British, American, French and Australian authorities so that I might
obtain first-hand information and be able to gauge the atmosphere
4738.-3.
of the situation in the German capital. While there, I also talked
with German trade union leaders and with members of the German
civil administration in Berlin. Berlin presents a sad picture of the
devastation of war. I have previously visited some of the worst war
devastated cities, such as Hiroshima, Yokahama, Tokio, Manila and
Rangoon. But, excepting Hiroshima, which was completely destroyed
by the atomic bomb, I have not seen anything like the destruction in
Berlin. Masses of bricks and rubble, gutted buildings, now mark this
once beautiful city. It is a grim warning of the tragic consequences
of war. On my way to London, and also on my way back, I talked with
the British Commissioner-General at Malaya ( Mr. Malcoln
Macdonald) and with the British Governor of Singapore ( Sir Franklin
Gimson). I obtained from Mr. Macdonald a full background picture
of the position in Singapore and Malaya.
As the result of my talks at London, I can say that there is
the fullest understanding between the British and .\ ustralian Governments
on the economic matters that affect our common and national
interests. Of course, we are in constant touch with each other by
cable and often by radio-telephone. I told the British pcople, on
your behalf and on behalf of all Australians, that it would be our
privilege, indeed our duty, to help them in every way possible. I was
glad to sec that, despite great economic difficulties, London and itpeople
looked brighter than when I visited there in 1946. The gaping
holes made by the doodle bugs" and V2' s have been patched up.
The people are better dressed. There are more things in the shop
windows. British production is steadily increasing and their courage
is an example to the world.
While at London, I also said, and I give you a further reminder
now, that the road ahead for the British peoples everywhere and,
indeed, for nearly all the non-dollar countries, is going to be long
and hard. I don't want anybody to think, because I have said that,
that the British Commonwealth is not going to come tlrou: gh. It is
going to be a tough fight, but I have not any doubts that we shall
pull through. I feel confident that with the growing strength of the
Dominions. the British Commonwealth can be made stronger than
ever. One of the keys to the problem is increased production. The
Macquarie electorate contains centres of both primary and secondary
production. On the industrial side, there are places such as Lithgow,
Portland and St. Mary's. Primary production of a varied nature is
to be found in almost every part of Macquarie. Australia is pledged
to assist Britain in every way possible and increased production is
necessary to fulfil that pledge. In addition, our own welfare, the
expansion and development of our country, are both wrapped up in
our own capacity to do better.
" Work-hard work-overtime, where necessary, must be undertaken
as part of our national duty. We want to develop and build
a greater Australia for our children. Further, our strategic position
is not what it was. This is a shrinking world and Australia cannot
feel immune just because, geographically, she is situated down under
in the Southern Hemisphere. We have to build and maintain a strong
Australia and, I repeat, hard work is the only way to achieve that.
We owe that not only to our own people but to our Allies and, particularly,
the United Kingdom. Let me illustrate to you how the
world has shrunk. In fourteen and a half days, I covered just on
28,000 miles by air. In other words, I travelled about 2,000 miles
every day and did eight days work as well. I stopped at or passed
over about a dozen different countries.
" There is no such thing to-day as the Far East. In fact, Asia
and Europe have been brought almost as close to us as New Zealand.
An island that is 450 miles away from Darwin and was just a spot
on the map could very easily become of intense interest to Australia.
I want Australians to realize that they must think and act as Australians.
They must think and act in terms of the nation. Economic
wevlfare, security and a contented future are all wrapped up in what
we do as individuals and as a community.
In your homes to-night, you are safe and secure. Your families
rue around you. You are assured of full employment. You have
boundless opportunities ahead of you. By contrast, I have seen places
and talked with people in the grip of misery and hardship, indeed,
with no future at all. Uneasy countries, worried peoples are to be
found everywhere. The devastating hand of war has caused
unbelievable material damage and worked shocking havoc in people's
minds. The heritage that has come to us, the great chance for the
future must not be frittered away. I ask the people of Macquarie, as
I ask all Australians, to stand together for the national good and for
their own good." TARIFF.
WESTERN CUSTOMS UNION.
On 8th July, 1948, the Prime Minister ( Mr. Chifley) said*-
The matter of the Western Customs Union would have to be a
subject for discussion between Britain and the Dominions if it cut
across Imperial preference in any way.
Australia has assumed that no finality will be reached on the
Western Customs Union without consultation with the Dominions.
There has been no intimation yet by the British Government that it
will be specially discussed with the Dominion Governments."
At London.
MIGRATION.
GOVERNMENT POLICY-BRITISH MIGRANTS.
On Sth July, 1948, the Prime Minister ( Mr. Chifley) said*-
have had discussions with the Minister for British Commonwealth
Relations ( Mr. Noel-Baker) and further discussions will be
held later. We have dealt with migration generally rather than any
specific plans-matters such as ships and related problems. Many
physical difficulties are in the way of mass migration and a lot of
study and thought will be necessary and I do not think that mass
migration is physically possible in the near future. I am satisfied
that the British Government has been very co-operative in regard
to shipping. There have been discussions regarding the transfer of some
British industries to Australia but the tendency has been for British
firms to establish branches in Australia or to expand existing branches-
That has been going on fairly rapidly because of the sound Australian
economy; the market in Australia; and the fact that Australia is a
foctil point of development of eastern trade."
( For earlier references, please see No. 111, page 44; No. 122, page 16;
No. 123, page
GOVERNMENT POLICY-PRIME MINISTER'S STATEMENT.
On 1Sth July, 1948, Mr. Chifley said:-
I had long discussions at London with the Minister for British
Commonwealth Relations ( Mr. Noel-Baker) and the Minister for
Transport ( Mr. Barnes). Despite the shipping shortage, I hope that
the rate of migration will be stepped up very considerably for British
migrants, displaced persons in Europe and Italians. At Berlin, I
discussed with the United States authorities the possibility of securing
additional displaced persons for Australia."
GOVERNMENT POLICY-MINERS.
On 19th July, 1948, Mr. Chifley said:-
The British Government is endeavouring to use Polish niners.
They are used in Wales. Difficulties are being encountered in
Yorkshire. At the moment, trained Polish miners are not available
for Australia but some Italian miners might be available. The matter
would have to be discussed with the Australian Coal and Shale
Employees Federation. One of the difficulties is knowledge of the
English language and it would be necessary to teach them the rules
and regulations of working." At London.
BRITAIN.
FINANCIAL POLICY-DOLLAR IMPORTS, PRIME
MINISTER'S STATEMENT.
On 8th July, 1948, the Prime Minister ( Mr. Chifley) said*-
" My mission to London is mainly on matters of economic interesis
common to both British and Australian Governments. I hope that, as a
result of the mission, the common bond between us will be strengthened
in the best interests of . both Governments. Cables cannot fully cover
the ground that can be covered by talks.
Australia forms part of the dollar pool. It has been almost always
a drawer on the dollar pool. We have been striving to cut d! own
expenditure in many fields. The judgment as to what constitutes
essentiality in dollar expenditure causes controversy but Australia feels
that she must not draw any more dollars than are essential.
" In 1948-49, Australia anticipates making very substantiail ri. luetions
in dollar expenditure and in the amount to be purchased from the
British Treasury. The precise programme is difficult until revenue
from Australian exports are knowin-an example being the revenue
from Australian wool sold in the United States. Time often alters
early figures. Further, rising prices often alter quantities."
On 18th July, 1948, Mr. Chifley -aid-
I make it clear that I did not go to London to beg for dollars. The
main objective of the visit was to find out how best we can co-ordinate
the policies of the two governments having regard to the shortage of
dollars; how Australia can share in the availability of goods from
Britain, previously obtained from the United States and other hard
currency areas; and to discuss a long-range policy regarding dollar..
" The European recovery programme provides only for Britain's
dollar deficit and not for the Dominions' dollar deficits. It is doubtful
if the European recovery programme makes full provision for the dollar
deficits of Britain. One of Britain's problems is the increasing price
of dollar imports. Although production is increasing-and increasing
splendidly in some industries-some of the increased dollar earnings are
offset by rising prices in America. As British leaders have said,
increased production is one of the keys of the problem. It is also
necessary in Australia if Australia's economic welfare is to assist in
giving increased help to Britain-particularly in foodstuffs. I have
not given thought to means of increasing production but the working
of overtime is essential.
" It is no use disguising the fact that a long hard road is ahead
because of the difficulty in getting dollar goods. It would be very foolish
to think that either Britain or Australia can solve that as a . hortterm
problem. At T. ondn.
The only solution to the present disequilibrium in dollars will
be for the United States and other dollar countries to buy something
equivalent in value to what they sell. That course seems unlikely so
the sterling area countries must do the best they can with the dollars
available. We have to face the inevitable by doing the best we can in
the years ahead on the dollars available and in the meantime to
produce our utmost.
The Australian Government must be prepared to examine all
avenues of trade to see how dollars can be saved. There is a complete
understanding with the British Government as to the precise position
and how best Australia can render assistance to Britain. The Australian
Government has already planned reductions in dollar expeiditure."
On 19th July, 1948, Mr. Chifley said-
" The Australian Government is trying to divert imports into tho
sterling area and the latest figures are-
In May, 1947, 27 per cent. were from Britain, and in May, 1947, this had
increased to 53 per cent. Imports from the total sterling area at the same
dates were 44 per cent. and 66 per cent. respectively. Imports from the dollar
area on the samine dates were 39 per cent. and 13 per cent. Total imports for
the same dates were œ 23,000,000 ( Australian) and œ 31.000,000 ( Australian)
respectively. " It is hoped to get dollar imports down still lower but there i:
always the problem of ever-rising prices in the United States."
FINANCIAL POLICY-STERLING, APPRECIATION.
On 19th August, 1948, Mr. Chifley said-
" I was aware that consideration was being given by the New
Zealand Government to this matter* and the Commonwealth Government
had also been giving consideration to it. But I have no official
intimation from the New Zealand Government of the contemplated
action. It is not the intention, in the present circumstances, as
indicated by me in the House of Representatives on 26th February,
1948, to appreciate the Australian
( For earlier reference, please see No. 133, page 11.)
PRIMARY INDUSTRIES.
EXPORTS TO BRITAIN-PRIME MINISTER'S
STATEMENT, JULY, 1948.
On Sth July, 1948, the Prime Minister ( Mr. Chifley) saidf-
" Australian exports to Britain depend largely on seasonal conditions.
. Australia anticipates being able to increase exports this
seaso n. ( For earlier reference, please see No. 114, page 24.)
To ni. priciato lie New Z.: il: iinl œ 1 I o piirlly wvitli ' terliig.
t At Londmi.
AGRICULTUI{ AL MACHINERY-TRACTORS. CONTROL
REVOKED.
On 29th July, 1948, the Minister for Agriculture ( Mr. Pollard)
announced that control over the distribution of tractors to agricultural
nu. rs would cease on 31st July, 1948.
EXPORTS-1947-48 FIGURES.
On l1th August, 1948, Mr. Pollard said that exports in 1947-4S
showed heavy increases in many exported commodities over 1946-47,
and in some cases had regained the volume of exports in 1938-39.
Combined exports of dairy products ( butter, cheese and processed milk)
were higher than pre-war. Other products which were exported in
greater quantities were hares and rabbits, bacon and hams, preserved
meat in tins, fruit in liquid, jams and jellies. Eggs and egg products,
poultry, oats and barley were much higher than pre-war. Those in
which there was a minor downward trend were sausage casings, citrus,
vleat and flour. Those in which there was a substantial decline over
1938-39 were beef, lamb, mutton, apples and sugar. Comparative
figures were-Ye; irs.
Unit of
Quantity. 1938-39. 1946-47. 1947-48.
Butter ' 000 lb. 229,543 133,642 185,122
Cheese 35,924 53,662 51,163
Meats-Bacon and hams 1,739 6,649 5,531
Preserved by cold process-
Beef 271,964 180,339 230,504
Lamb 158,333 112,095 103,280
Mutton 28,156 52,208 19,396
Pork 30,716 18,705 3,720
Rabbits and hares ' 000 pairs 3,995 5,385 12,671
Preserved in tins ' 000 lb. 14,896 119,713 94,320
Sausage casings cwt. 23,099 17,714 17,595
Milk and cream ' 000 lb. 19,107 105,959 97,785
Fruits, dried-
Currants .53,219 12,558 22,551
Raisins 110,992 78,957 70,308
Fruits, fresh-
Apples Cental 2,111,139 387,458 1,408,507
Citrus 274,229 167,910 273,849
Fruits, preserved in liquid ' 000 lb. 81,478 71,689 84,973
Wheat ' 000 bus. 63,129 12,176 60,454
Flour ( wheaten) ' 000 cntl. 14,501 15,302 15,942
Jams and fruit jellies ' 000 lb. 13,872 65,434 58,877
Sugar ( cane) ton 443,021 117,379 100,460
PETROL SUPPLIES.
RATIONING-CONTINUANCE.
On Sth July, 1948, the Minister for Shipping and Fuel ( Senator
.' thley) said that a meeting of the Cabinet Sub-committee on Fuel had
beun held that day to consider the report of the Director of Rationing
( Mr. Cumming) regarding the operation and administrative methods
of petrol rationing in Australia. The sub-committee decided to recomment
that either by legislation or by continuance of existing Defence
( Transitional) Act Regulations, power be taken to continue petrol
rationing until 31st December, 1949. The sub-committee had decided
that there would be no immediate reduction in petrol rations, but that
all State Liquid Fuel Boards would, in conjunction with the existin. g
review now being undertaken of licences in the business/ pleasure group
( classes 3 to review a number of important proposals in regard to
the administration of the petrol rationing plan. Further severe restrictions
in petrol consumption could be avoided only by petrol nser.
co-operating to the utmost in effecting all practical economies.
LITERARY CENSORSHIP BOARD.
MEMBERS APPOINTED.
On Sth July, 1943, the Minister for Trade and Customs ( Senator
Courtice) announced that the Literary Censorship Board would
comprise-Professor L. H. Allen, chairman, Professor J. F. M. Haydon and Mr. K.
Binns, with Sir Robert Garran as Appeal Censor.
AUSTRALIAN MILITARY FORCES.
SALVAGE SERVICE-CESSATION.
On 9th July, 1948, the Minister for the Army ( Mr. Chambers) said
that the Australian Army Salvage Service had ceased to exist as from
1st July, 1948. Commands and military districts would continue in the
peace-time army to exercise the functions performed previously by the
service. Although the service sold more than œ 5,000,000 worth of
recovered materials, that represented only a fraction of the vast quantity
which it recovered. AUSTRALIAN BROADCASTING ACT.
TELEVISION.
On 12th July, 1948, the Postmaster-General ( Senator Cameron)
-aid that tenders would be called for two television transmitters for
installation on an experimental basis at Sydney and Melbourne and,
alternatively, for six transmitters for trial purposes in each State
capital city, in addition to sets for receiving the experimental programmes.
When tenders were received they would he considered Iy
the Cabinet sub-commi'ttee on Broadcasting which would report io
Cabinet. ( For earlier references, please see No. 136, page 37.)
WHEAT STABILIZATION SCHEME.
CONFERENCE WITH STATES-DECISION.
On 12th July, 1948, tie Minister for Commerce and Agriculture
( Mr. Pollard) said that a conference that day with the State Ministers
for Agriculture had resulted in the following decisions:-
The Commonwealth Government shall guarantee a price of 6s. 3d. a hushel
f. o. r. ports bulk basis for wheat grown and delivered by wheat-growers.
The guaranteed price shall vary according to an index of production costs for
each season starting with the 1948-49 crop.
The guarantee shall apply to the wheat crop marketed through approved
organizations for the period up to the end of the 1952-53 season.
Approved organizations shall be the Australian Wheat Board and those
organizations which are empowered by the State Parliaments with authority to
receive wheat and to market it as the agents of the Australian Wheat Board.
The Commonwealth shall ensure the guaranteed price in respect of the
export from any one season's crop, provided that this guarantee shall not apply
to the quantity of export in excess of 100,000,000 bushels.
A stabilization fund shall be established by means of a tax on wheat
exported to meet the guaranteed price above mentioned.
The tax shall apply when the export price is higher than the guaranteed
price, and shall be 50 per cent. of the difference between the two but shall not
exceed 2s. 2d. a bushel.
The tax slall apply to the 1947-48 and later wheat cropl.
No refunds of tax from the fund shall he made ( except for the Il945-46
and 1946-47, amounts already approved) except after consideration at sonim
future date. The Commonwealth agrees that it will not hold an excessive
amount in the fund, and it will consider a refund of tax to the oldest contributing
pool whenever the financial prospects of the fund justify it.
The State Ministers agree to recommend to their governments the pas; age iif
legislation necessary to ensure-
The home-consuinption price equal to the guaranteed price.
The authorizing of an approved organization to receive from whe: Atgrowers
all wheat voluntarily delivered for sale as part of an Australia. i
pool.
That legislative authority exists in each State to empower the direction
of wheat by the Australian Wheat Board at any time to an approved
organization as defined above.
The regulation of wheat-growing on marginal areas which have been
reconstructed under the plans approved for the elimination of uneconomic
wheat areas, and the establishment of a commiittee to advise
in cases where action to regulate wheat-growing on marginal areas
is necessary.
The conference agrees, subject to acceptance by the respective State governments-
That States, where they desire to do so, will constitute State whe. it
boards composed of a majority of growers' rlpresentatives elected ly
a ballot conducted by the State.
I That each State board will nominate growers' repreentatives who . re
growers to the central authority in accordance with the present gri er
representation on the Australian Wheat Board.
That it will be optional for any State board to act cither in an advisory
or an administrative capacity as decided by the State concerned.
Where a State Government does not desire to create a State Wheat Boari.
the machinery of the central authority ( the Australian Wheat Boardl)
is to function.
Where no State hoard is created, growers' relpresentativcs to the
Australian Wheat Board will be elected by a: ballot . f growers conducted
by the State.
( For earlier references, please see No. 128, page 19; No. 129, page 35; No. 136,
page 34.)
SOUTH-EAST ASIA.
MALAYA-PRIME MINISTER'S STATMENT.
On 18th July, 1043. the Prime Minister ( Mr. Chifley) said-
I cannot say I am very happy about the position in Singapore and
Malaya. I had long discussions on my way to London and again on
17th July, 1948, with the British Commissioner-General ( Mr.
MoDonald). He is in the best position to judge and believes that the
situation can be brought under control satisfactorily."
MALAYA-EXPORT OF ARMS.
On 19th July, 1948, Mr. Chifley said-
The export of arms and war material from Australia to Malaya
are matters that have not come before the Government for consideration.
I do not recall any request by the late Sir Edward Gent. There is a
long standing embargo on the sale of arms to anybody or any country."
On 21st July, 1948, Mr. Chifley said-
The Customs Act provides for a prohibition on the export of arms,
ammunition, explosives, military and naval stores. From the inauguration
of the Commonwealth, there has been an export prohibition in
one form or another on goods in this category. The existing prohibition,
which came into operation in 1935, provides that none of these
goods may be exported without the consent in writing of the Minister
for Customs.
" Following the outbreak of disorder in Malaya recently, numbers
of applications have been received by the Customs Department for permits
to export automatic pistols and revolvers and ammunition therefor
to individual persons and individual companies in Malaya for the selfprotection
of themselves or of their employees. Applications have been
made also for permits to export small bulk shipments through commercial
houses. These applications have been granted subject to the following
conditions:-
That, from the perusal of the order and related documents, the Collector
of Custonie at the port of export is satisfied as to the hona-fides of the case.
That the goods are covered by an import licence issued by the police
authorities in Malaya.
That the goods are consigined to the Chief Police Officer in the district in
which the consignee resides.
No applications have been received for the exportation to Malaya
of any machine, guns or sub-machine guns.
As regards provisions of light machine guns or military equipment,
no request has been made by the British Government for the supply of
these weapons to Malaya. The Australian Army authorities already
hold in custody 100 Sten guns which the British War Office has asked
the Australian Government to dispose of as surplus equipment on its
behalf. Should the British Government cancel this request and ask to
have these guns delivered, they will be delivered as early as possible.
If a request is received through the British Government for supply from
Australian stores of similar equipment, to assist in the preservation of
17
law and order in the area, the request will be referred to Cabinet at its
meeting on 2nd August, in view of Cabinet's previous decision that no
export of military equipment was to be permitted. Should Cabinet
decide to vary this view and supply equipment, in response to such a
request, this will also be delivered."
On 30th July, 1948, Mr. Chifley said-
The British Government, at the request of the Government of the
Federation of Malaya, has asked for the early delivery of the 100 Sten
guns belonging to them and held in Australia and has also asked
whether the Australian Government would be ready to supply certain
other automatic weapons, ammunition and equipment, which are required
for the maintenance of law and order in Malaya, and which
may be available here.
In accordance with the statement I made on 21st July, 1948, the
100 Sten guns, with ammunition, were despatched by air yesterday
nnd should be delivered at Singapore later to-day for onward transit
to the Malayan authorities, together with a few other items of equipment
required for testing purposes.
" The question of the supply of weapons and equipment from Australian
stocks will, in accordance with my statement of 21st July, 1948,
bf, considered by Cabinet at its meeting on 2nd August, 1948. Meanwhile,
the extent to which the item. required may be available here is
being urgently examined."
On 2nd August, 1948, Mr. Chifley said-
Cabinet decided to-day that, where a request has been, or will be,
made by the British Government for arms and equipment for use by
the Government of the Malayan Union, these will be made available
from Australian supplies within the reasonable limits of their
a vailability." INDUSTRIAL.
INDUSTRIAL RELATIONS-PROPOSED CONFERENCE.
On 20th July, 1948, the Minister for Labour ( Mr. Holloway) said--
" I would be in favour of the Prime Minister calling a conference
of employees and employers to discuss how . best to get a greater volume
of production of essential goods. If a basis for an all-party conference
cannot be reached, I am in favour of the Prime Minister calling a
conference of union delegates for a discussion, with the same object
in view." On 1lth August, 1948, the Prime Minister ( Mr. Chifley) said-
" I have conferred to-day with the Minister for Labour ( Mr.
Holloway), the President ( Mr. P. J. Clarey), the Secretary ( Mr. A. E.
Monk), the Assistant Secretary ( Mr. R. R. Broadby) and Mr. C. Crofts
of the Australian Council of Trade Unions on the need for greater
production. A conference of trades unions will be convened at a later
date. Dtails of the conference will be arranged by Mr. Holloway in
conjunction with the A. C. T. U."
SOCIAL SECURITY.
PHYSICALLY HANDICAPPED PERSONS.
On 21st July, 1948, the Prime Minister ( Mr. Chifley) said-
" To take full advantage of the knowledge and experience of
existing staffs in extending the Government's plans for the rehabilitation
of physically handicapped persons, it has been decided that the plan will,
for the time being, be administered by the Department of Post-war
Reconstruction. Legislation will be introduced to amend the Social Services Consolidation
Act to vest the responsibility for the development of the
scheme for rehabilitation of disabled members of the community in
the Director-General of Social Services.
The scheme will extend to invalid pensioners or claimants for thi
invalid pension and those receiving or claiming unemployment or sickness
benefits who would become unemployable unless rehabilitation
assistance is provided.
" The Department of Social Services has already established a
rehabilitation centre in each State except Tasmania, where facilities cf
the Red Cross Society are u. ed.
" Staff employed by the Department of Social Services on this work
is almost wholly temporary, but the Department of Post-war Recolstruction,
responsible for the rehabilitation of many thousands of
ex-servicemen, has a considerable number of permanent officers on it::
. taff. These officers are still required for this work. It is recognized.
however, that the work of post-war reconstruction will gradually declin..
and that many of the permanent staff of that department trained in
rehabilitation work might appropriately be transferred to the Department
of Social Services. The Minister for Post-war Reconstruction
( Mr. Dedman) and the Minister for Social Services ( Senator
McKenna) have decided that-
The Department of Social Servirc e lhall coiitinue ti he relpiniible ftinr tii
civilian rehabilitation plan.
Temporarily the Depirtnlc': t of I.' ot-war Recon-truction will tnke , v. cr. athe
agent for the Depart enicito f Sociail Services. tlhe dtl nii tistitor n . f i l
rehabilitation scheme.
" The Department of Social Services will proceed with the cstal,-
lishment and appointment of its permanent staff for the rehabilitationl
plan but will, in the meantime, second the personnel so appointed tii
the Department of Post-war Reconstruction."
TUBERCULOSIS-CABINET DECISION.
On 3rd August, 1948, Mr. Chifley said-
Cabinet to-day approved of a plan of control in regard to tuberculosis
along lines already discussed with State Ministers of Health on
29th June, 1948, for conclusion with the States at the forthcomilng
conference of Commonwealth and State Ministers on 23rd Auguzt."
COMMONWEALTH LOANS.
FLOTATION COSTS.
On 28th July, 1948, the Prime Minister ( Mr. Chifley) said-
During the war years and since, Commonwealth loan raisings have
been conducted with remarkable economy and compare more than
favorably with other countries. After provision is made for all charges
-including advertising, brokerage, bank expenses and the Commonwealth
Loani. Organization-the cost does not exceed 5s. per cent. This
cost is less than one-third of the cost rate regarded as appropriate in
some overseas countries.
" From the war-time peak of 360 in all States, the Commonwealth
Loans Organization staff has been reduced to 130. The remaining staff
is regarded as essential. It provides a nucleus of highly-trained persons
whose services are fully employed on loan subscription, conversions and
national savings campaigns.
The Sixth Security Loan, opening on 8th September, 194S, is an
iin'portant operation. Apart from œ 15,000,000 of new money, an appeal
will be made to 300,000 holders of œ 85,000,000 of Commonwealth
securities maturing in September-October, 194S, to convert into the
new loan.
" Visits to homes by the organization's representatives have been part
of normal activities for a considerable period. This advice card sent
to householders is necessary because, with money involved, precautions
ar1 necessary to protect both Commonwealth and public. This work is
done under strict supervision."
HEALTH AND YOUTH WELFARE.
INTERNATIONAL YOUTH CONFERENCE.
On 28th July, 1948, the Minister for Health ( Senator McKenna)
announced that the Australian delegation to attend the International
Youth Conference at London in August, 1948, would comprise-
Miss Lyra Taylor, in charge of professional social work and research
activities in the Department of Social Services; the co-director of national
fitness in the Department of Health ( Miss Kathleen Gordon) the Rev. G.
Malloy of the Church of England Youth Department; the national secretary of
the Young Christian Workers' Movement ( Mr. F. McCann) and Mr. A. S.
Livingstone, of the department of social studies at Melbourne University.
Major aspects of discussion at the conference would be-
Preparation for work, including training and vocational guidance; legislation
specifically affecting young people in work ( urban and rural) the status of
young people in work; the position of women and girls and the family in relation
to work social security; the influence of mass media ( press, films and radio)
on young people; commercial provision for leisure ( including commercially
sponsored holiday camps and compulsory holidays for employees of business
undertakings): travel, holidays and interchange; the contributions of the
voluntary organizations to leisure, in age groups under and over eighteen:
cultural life and developments in relation to work and leisure.
NATIONAL HEALTH COUNCIL-APPOINTMENTS.
On 28th July, 1948, Senator McKenna announced the appointment
to the National Health and Medical Research Council of a representative
of the Australian Dental Association, and of an obstetrician
representing the Australian Regional Council of the Royal College of
Obstetricians and Gynaecologists. GOITROUS AREAS.
On 3rd August, 1948, the Prime Minister ( Mr. Chifley) said-
Cabinet to-day approved of the supply free of charge to State
governments, municipalities and other approved public authorities of
tablets containing potassium iodide for the prevention of endemic
goitre. Reports of school medical officers have revealed the main
goitrous areas in Australia as follows:-
Nmv SOUTH WALES.-Hunter and Manning valleys ( excluding Newcastle),
25,000 children; norther tablelands, 10,000; portion of central tablelands,
10,000; southern tablelands. 8,000; portion of non-metropolitan section of
Cumberland, 2,500; total, 55.500.
VICTORIA.-Gippslaind, 21: 000 children: portion of central Victoria, 5.000:
total 26,000.
QUEENSLAND.-Cairns Hinterland and Toowoomba valley., 3,500 children.
SOUTH AUSTRALLA.-Adelaide Hills, 5,000 children.
WESTERN AUSTRALIA.-C. Leenwin Hinterland ( strongly suspect. n( t proven).
1.000 children.
TAsMANLA.-Derwent Valley, HH Valllleey, , King Valley, North Midland. na,,
portion of Midland, 25,000 children.
TOTAL.-116,00. INDUSTRIAL HYGIENE AND MEDICINE.
On 3rd August, 1948, Mr. Chifley said-
" A Division of Industrial Hygiene in the Commonwealth Health
Department, first established in 1924, was abolished in 1932 and since
then Health Department medical officers working part time on this
subject have given advice on industrial problems.
" Cabinet decided to-day to establish a strong unit in industrial
medicine at the School of Public Health and Tropical Medicine at
Sydney University. The unit will include a senior medical industrial
hygienist, with a team of workers including a chemist and a physicist.
The duties of the unit will be-
To act as a training school for medical men and others needed to carry out
investigations into industrial hazards and problems of industrial hygiene.
To advise the Government on all problems relating to diseases in industry.
As a research unit to initiate industrial hygiene field investigations into the
cause, nature and extent of industrial health hazards.
REPARATIONS.
SCIENTIFIC PERSONNEL.
On 3rd August, 1948, the Prime Minister ( Mr. Chifley) said-
" The Minister for Post-war Reconstruction ( Mr. Dedman) advised
Cabinet to-day of a further report by the Employment of Scientific and
Technical Enemy Aliens Committee. The report recommended that a
further 48 German scientists and technicians be brought to Australia for
employment."
i1
RECONSTRUCTION.
SECONDARY INDUSTRIES-DIVISION OF INDUSTRIAL
DEVELOPMENT.
On 3rd August, 1948, the Prime Minister ( Mr. Chifley) said-
Cabinet decided to-day that the Division of Industrial Development
of the Department of Post-war Reconstruction be established on a
permanent instead of its present temporary basis. The functions of the
Division will be-
To encourage and advance industrial development necessary for Commonwealth
responsibilities.
To exercise Commnonwealth responsibilities in respect of the national policy
lif decentralization of secondary industries.
Generally to lromote efficiency in industry, and in particular to study technical,
production and managerial problems.
To encourage and assist in the discmination and the application of new
knowledge and new methods.
To undertake for publication continuing tlidies of the structt cr and operation
of Australian imanufactering industries."
EXTERNAL COMMUNICATIONS.
TELE-COMMUNICATIONS COMMISSION-APPOINTMENT.
On 3rd August, 1948, the Prime Minister ( Mr. Chifley) said-
Cabinet decided to-day to re-appoint Mr. G. U. J. Gowans as
imember of the Overseas Tele-communications Commission ( Aust.) for
three years from 23rd August, 1948. Mr. Gowans was appointed a
member of the Commission from 25th January, 1947, in place of J. V.
Barry. K. C." FIGHTING FORCES.
COMMONWEALTH RECONSTRUCTION TRAINING
SCHEME-CLOSING DATE.
On 3rd August, 1948, the Prime Minister ( Mr. Chifley) said-
When the Government decided that there should be no general
extension for the closing date for the receipt of applications under the
Commonwealth Reconstruction Training Scheme beyond 30th June,
1947, provision was made whereby, under special training plans approved
by. the Minister for Post-war Reconstruction ( Mr. Dedman), applications
could be received after that date.
Cabinet to-day approved of action taken by Mr. Dedman under
the following special plans:-
No. 1. War-caused Disabled Personi.-Applications may continue to be
accepted, subject to review in June, 1948.
No. 2. War Widows.-Applications may continue to be accepted, subject to
review in June, 1948.
No. 3. Part-time Training.-Date for acceptance of appllications extended t,
June, 1948, in respect of the following classes of persons enrolled in the
scheme as at 30th June, 1947, and to twelve months after date of enrolment in
the scheme in cases where enrolment occurs after 30th June, 1947:-
Full-time trainee ( including a trainee in subsidized employment) applying
to take a part-time course concurrently with his full-time course.
Part-time trainee applying to take another part-time eunr-e concurrently
with the first part-time course.
FullI-tine rin ce ( pro fesjollaj OF or cational a PP lying to take at prt
tin,,, couirse at the end of his full-time courbe.
P art-timen trai ne. applying to take additional jair t-tt i course, liin
tioin j~ ction of at course not costing the full
No. 4. Teacher Training.-Dgate for acceptance of apjlications extended to
3Oth JTune, 1948.
No. 5. Trainiu if Nath-es in the Territory of P~ apua-New G. uinea.-Dattc for
twcvptanct! A) aLpiipf 1LtionS extended to 31st Decemiber, 1948.
No. 6. Trainin-of ' Jorres; Strait Islanders-Date for-accelitance ( if applicatiouue
extend~ ed to 30th June. 1948.
No. 7. N ursinA Trainin..-Date for acceptance of ap-plicationls extendled to
June, 194S.
" Cabinet also applroved of the continued operation of special plans-
Nos. 1. 2 and 3. with a further review in Juine, 1949."
WAR SERVICE MORATORIUM-CONTINUANCE.
On 10th August, 1948, the acting Attorncy-General ( Senator
2% cKenna) announced that amendmcnts would be made to National
Security ( War Service Moratorium) Regulations to afford ex-servicemen
the saic protection under State landlord and tenanit legislation
asj they7 lid undi~ er Commonwealth regulations.
( For earlier references. please see No. 128, page 20; No 135, page 34.)
WHEAT POOLS PAYMENTS.
10 POOL--FIFTH ADVANCE.
On : 3rd August. 194S, thle Minister for Coinmcee ( Mr. Pollard)
9nnoi~ uceu a fifthi advance of 54d. a bushel for wheat in No. 10 pool-
' The advanee \\-ould hring paYments to 7s. Sid. a bushlel.
-No. 11 POOL-THIRD ADVANCE.
On 3rd August, 194S, Mivr. Pollard announced a third advance ( if 1
ii bushel for w~ beat in No. 11 poo01. The advance would bring payments
to Ss. 6d.: less freight, for builk wheat a bushel and 9s., less freight, for-
EXTERNAL AFFAIRS.
DIPLOMATIC CADETS.
On 6th August, 1948, the acting Minister for-External Affairs ( Mr..
Chifle y) said that applications had been invited for diplomuatic cadets
tol commence trainling at Canberra University College in 1949.
AID ROADS AND WORKS ACT.
PETROL TAX, GRANT FOR ROADS.
On 6th August. 1948, the Prime Minister ( Mr. Chifley) said-
" Representationis have been received from many sources that the
whbole of the -proceeeds of taxation on petrol or a greater portion shiould
be made available for roads purposes.
" The petrol tax is not imposed solely for this purpose and although
for many years substantial roads grants have been made to the States,
the major portion of this tax has been required to meet the expenditure
of the Commonwealth for general purposes and in particular, the heavy
commitments for war and post-war purposes. The tax is primarily a
revenue impost, in common with those imposed on many other item;,
such as beer, tobacco and matches.
" About 90 per cent. of the petrol consumed in Australia for civil
purposes is used for commercial and industrial purposes. To a great
extent the cost is passed on to the general community in traisportatioa
and delivery charges.
Since the greater portion of the tax is not finally borne by the
users of petrol but by the general community, it is inappropriate to
contend that the whole of the proceeds should be usecd for roads
purposes. Since the war the petrol tax has been reduced by Id. a gallon.
As in the case of other forms of taxation, consideration is given to tile
possibility of effecting reductions as the financial commitments of the
Commonwealth permit.
The whole question of Commonwealth assistance for roads received
very full consideration when the Commonwealth Aid Roads and Works
Act was ' passed in May, 1947. This legislation provides for the payment
to State Governments over a period of three years of considerably
increased amounts and one of its features is that it provides for ai
special payment of œ 1,000,000 a year for the maintenance and construction
of roads, other than main highways, through sparsely settled
areas, timber country and rural areas. These payments are made in the
first instance to State governments, since it is not the policy of the
Commonwealth to give direct financial aid to local government bodies.
Including the sum of œ 500,000 for expenditure by the Commonwealth
on strategic roads and roads for access to Commonwealth properties,
the amount so made available for roads purposes during 1947-48
was œ 6,300,000, compared with œ 4,800,000 in 1946-47. The question
of the adequacy of the present grant is being kept under notice by the
Government. It was inevitable that the war-time diversion of practically Australia's
total economic resources should result in some deterioration i,
the condition of many roads. The question of restoration and improvc.-
ment is not, however, solely one of finance. As a result of the suspension
of many forms of ordinary economic activity during the war, resources
of materials and man-power in Australia to-day are insufficient to me-t
all requirements. If a greater sum were to be spent on roads, it is
obvious that there would be a reduction in the allocation of labour and
materials to other types of economic activity and apart from purely
financial considerations, the expenditure of money on roads must be
viewed in that light."
NATIONAL UNIVERSITY.
INTERIM COUNCIL-APPOINTMENTS.
On 10th August, 1948, the Minister for Post-war Reconstruction
( Mr. Dedruan) announced appointments to the interim council of the
Australian National University as follows-
The Prujie-'-, or of Bacteriology at Sydney University ( Profes,. or H. WVard).
the Professor of Botany at Adelaide University ( Professor J. G. Wood), the
Professor of Physics at Melbourne University ( Professor L. H. Martin).
Original members wvere Professor R. C. Mills ( chairman), Sir John Medley,
Sir Robert Garran. Sir Frederic Eggleston. Sir David Rivett, Professor R. D.
Wright, Profe, or Eric Ashiby. Dr. H. C. Coomibs. Mr. C. S. Daley. Mr. IT. J.
Goode-, and tlic Vice-Chiancellor.
( For earlier references, please see No. 118, page 26; No. 130, page 41.)
BANKING CONTROL.
LEGISLATION-NATIONALIZATION, HIGH COURT CASE.
JUDGMENT.
On 11th August, 194S, the Prime MNiinister ( Mr. Chiflev) . said-
" The matter'; is one upon which the Acting Attorney-Generat
( Senator McN~ Kennia) will report to the Government."
The judgment olt the High C'ourt in the foiliowiiig eases:
BANK 41F' NENV SU'iH NVALEIS ANI' OTRgli r. THE (. MM0ONVEALTH OF'
AUSTRAL. IA AN[; OTIIFTlS.
Doclare that the followiing pr-ovisions of th, Baniking Act 1947 tire invalid-Part
IV.. Division 2. xiit sita r is, it rein tes ti. the volo Iita ry acquisition of shiares
andi without prejudice to the question whether section 14 Is valid In relation
thereto: Part IV.. r) jvisoii 3. s. etins 24. 25. L7 to 45 inclusive, 46, 59 and 60.
Orderthat the defendant the TIrtasurer a ld anly Minister of the defendmir tihe
Commonwealth of Australia or a~ ny mnember of the Executive Counicil for
the timie being acti or purporting to act for or on behalf of the
Treasurer of t ( imnionweiiiti of Australia be restrained from
ptublishing or causing or permitting to bo published any notice pursuant
to sob-section of Section 13 of the Banking Act 1947:
( b) i that the defendant Hugh Trai~ il Arniltaig and every other person for the
time being entitled by law or purporting to exercise thle powers of the
Governor of the Commonwealth Ban], of AXustralia be restrainctd from
appointing or purporting to oippoiiit tiny person it tdirector of any ot the
plaintiff complautes:
tc) that the defendant the Treasurer and ainy Minister of the defendant the
Commonwealth of Australia or ainy member of the Executive Council for
the time being acting or purporting to act for or on behalf of the
Treasurer of the Commonwvealth of Australia be restrained from iving
or cauosinig or permitting to be given anly notice pursuafnt to sub-section
of Section 22 of the Ilonkftig Act 1947;
0i1t ha tt t tie defendant the Coniio pael ti ( if A us tralia Its iticers anid servants.
be restramined froin requiring any of the plaintiff comnlies it, take tiny
action piursuan~ t to sob-sectionl of Section 24 of tile Balling Act 1947;
thait the defendant the Trensurer ilnu tiny Minister of the defendant the
Commonwealth of Auqtralia or any member of tile Executive Council for
the time being acting or purporting to act for or on behalf of the
Treasurer the (' omunowealti of Australia be restrainedl froim
pubhiishing or causing or perii ig to be published in the Coinin icicth~
Gazette tiny notice p~ ursuant to simiisection of Section 46 of the
Btinking Acet 1947: andl
thiat thle dlefendanit Hugh ' rral .% rAmtj ag' a m1ue si' ry other personi for the
tinue being enititled by law or purporimig to exercise the powers of the
Governor of the Commonwealth Biank of Australia be restrained from.
inuthiorizliug any son to ict un der Sect jion 59 if the Ban king Irfe 194..
Defendanits to pay costs of plajinjtiff icledin. g reserved costs, If any.
TUE BANK OF AUSTRIIAASA otiluts r. THE COIIAIONWEALTH OF
AUSTRALIA AslD OTIMRiS.
Declare that tile following privisionts of the Bantking Act 11) 47 ate invalid:
Sections 24, 25, 3-7 to 45 ittcltt. ti'e, 46. 59 and 60.
Orderthat te. deteaitnt the ' Treasurer and aiiy Mliniste~ r of the defendant rthe
Cionimonwealtlt of Australia or any member of the Executive Counteill
for rthe time being atcting or purporting to act for or on behalf of the
Tgretisurer of the Commonwealth of Australia be restrained front giving
or causing or permtittinig to he given any notice pursuant to sub-sectitit
if Section 22 of the ltankittg Act 1947
that tite defetdatt tite Conmtmtweailtit Btink of Australia its officers aitd
. aervtitts te restritinedi frontt reqluiring tiny of the plaintiff compttnies to
take tinty action pursoatin to sub-seeton of Section 24 of tio'
IBlinking Aict 1947:
that tite defendanot lime ' frea., urer and ty ' Minister of the defendatnt inlie
Coinitntwitnilth of Anstrtt or any nmenmber of the Executive Ciouacii tor
the tinte belting acting or punrportinmg to act for or on behtalf of tite
Tretasurer oft the Coinmonwetaith of Austrttlia he restrained front
publishing tor causing or permitting to be published In the Cornaioitincalth
Gazette tttt niotie" piursnuant to sub-section of Section 4C0 of ite(
Jtainkiig .4ct 1947 ; and
( 4r) that tite tleti'tdont ught ' roii Aratitage tttd every other pirson for tit'
tinit' bitilun ititled bylaitiw-iflurportinz to exercise the powers tit
tit,-Uovi-ninon of rthe Coimtiomtwealtht Hank of Australia be restralied fromt
itiutitorizimig tiny persont to tict. under Section 59 of the Baniking Arct 19147.
Defeiidants to pay costs of plaititiffs iticluding reserved costs. it any.
THE STATE OF VICTORIA ANtD ANtiijnina I. TEE COMMONWEAtLTH OF
AUSTRALIA AND OTHEiRS.
THlE STATE OF1 SOUTH . AUS'ITRALIA ANti ANOTHIER r. THE COMMONWEALTH I) F1
AUSTRtALIA ANti OTHERniS.
THE STATE OF WESTERN AUSTRtALI. A Axn ANoriIEI r. TI-I COMMONWEAI. TII
OF AUSTRALIA AND' OTHieiS.
Judgment itI the sanie ti'ris as it Baniik of New Southi Wit les and outhters.
Lu themn G. J.:
In these tive ttctionts. the validity of the Rttikity A1ct 1947 hits beemn cii~ tiin-g-.-
In my opinion, the followvimtg sectionms of the Act tire ivitlid:
sectioii 14 reititing to the trantsfer by tlte Cutointweultlt Bank ( if shlt. tre
Sections 17 to 20 relating to the ttiking over anil comitrotl of tih' Australitan Ranks.
Sections 23 and 24 reiatinig to the acquisition ( if the Assvts of thie Banks.
Iii my opinion declaraztionts should lie itae accirhingly tillthe liiitpriiiit'i
iitjumictionts gramited.
Rich~ J. aind Williaim* Js. ( deilivered by Rtichi)
We would give Judgmieiit to the plaintiffs in all tiv'e tictitons. Iti the atitoit by tii"
private banks incorportited IIt Australia antI the Sttttes Of Victoria-Sooth Atistratlli
tiud lWistern Australia, we dlecitire thtat Seetiiins 13, 14. 17-21 iiiclosilvi, 22. sub-sectiiins
S ( bF) ttid 24. 56,. 59 amid 60l. titid Parts 6 tand 7 of ite( Banking : Act 1947 tire vi iii
In the actioni by the three private banks incorporated itt the Uniited Kingdom, l e
declare Sections 22. sub-section, S tinid 24. 25, 59 tind 60 andii Parts C, : and 7
( if tite aict : ire void tidt ton isequen tila1 r-lief shoiuid hi' gin it ted.
, Stai'ke J. ( deliviered by Dixotn)
His Honour says time followinig iinivisons of the Itainking Acit 11447 tire invailid
Part 4, Division 2, exciept Iiisiifar tis the aicquisition tit shiares by agreenient is
Pac rotn c4e, rnDeidv. isioin 3 Iq wvholly it ' ald~.
l'. trt 4, D~ ivision 4. taihkinig tii iiess if uatis. hs inivailid iexceplt itiaaf; r
as by agreemntt.
P'art 6 Is wvlolv iIiv atlid.
Pitrt 7 ha wvhollv invalid.
P'art S inoperative.
I,' art 9 Is inoperaitve, esci-pi itisofar is. rite-proivisiiiis ithereto nity Ill, ttliiii
tioa ctiuisitionis by aigreeiteni. atimil li tinty icise' Siectioiis 59). 60i toil 62 a
invalid.
Diecla rationts shtuttd Iitami lua d zieorngly.
Dixon J.:
I1 i ift 11o piioin thtait Setiunt 172 i r the Itit. 11-lt 11947 tit'i ii omli-wilt,
Seciott 5,1 ( 311 of tlii ( onslititutiim aiid are. void. Sirlit 13 ctimuritut givii a
pturptose. himdi'iutihu-nt ori I ituta provisitis. Sectioiis 41, 42. 43. 44 unit diet w'ith
Sectitin 75 ( 3 4 of rite Comistitrut Iion. wvith thle risulit thaiit l1iit I; fttlls. i ; oil ilt t itt,
tourthier ri'sulit altat. excilit fur Sectitti 12, Divisioni 2 of 1' ttrt 4 itnid Sectiiins 24 at xIi
46 tire in validi. Sui-si-etiomis 4-8 itt Siection tire ciiiitrnii toi Sect] iii 92 indi are-
. lfTientani ' rTe futlluihig p ru'isiiit uif tih' Rantintumg Act ; ire invailid:
Secticits 17.20 Inclusive.
S etin 24. mili-sectioit S.
LEGISLATION-NATIONALIZATION. II ll( ('; OU1T
JUDGMENT, APPEAL.
On 13th August, 1948, Mr. Chifley said-
I have consulted all members of Cabinet on the High ( ou: l's
judgment in the Banking case and a decision has been reached to seek
an appeal to the Privy Council at the earliest possible date.
direct attention to some aspects of the court's decision which it is
desirable should be made clear to the public. A majority of the court
has held that certain parts of the 1947 Act conflict with Section 92
of the Constitution, which guarantees interstate free trade. That,
however, is a matter on which there has been sharp division of opinion
among the justices of the court, In the Chief Justice's opinion, the
Act was fully within the principles relating to Section 92 established by
the Privy Council.
Apart from Section 92, the fundamental question is the scope of
the National Parliament's power to make laws with respect to banking.
On that point, a majority of the court substantially upheld the major
contentions put forward for the Commonwealth by the Attorney-General
( Dr. Evatt) and rejected the narrow. interpretation contended for by
the private banks.
The majority of the court also decisively rejected the special
contentions put forward by the three plaintiff States.
I am advised that the judgments of the Chief Justice and Mr.
Justice McTiernan show that a few amendments in non-vital provisions
would have enabled those justices to uphold the Act in all respects.
Copies of the High Court judgments are being despatched to Dr.
Evatt in London and will reach him early next week. I have arranged
for the Solicitor-General ( Professor K. H. Bailey) to go to London
as soon as possible for consultation with Dr. Evatt.'
COAL INDUSTRY.
PRIME MINISTER'S VISIT TO COALFIELDS.
On 12th August, 1948, the Prime Minister ( Mr. Chifley) said-
The Minister for Shipping and Fuel (. Senator Ashley) and representatives
of the Joint Coal Board will accompany me on a visit to
Cessnock and Kurri Kurri on Sunday, 5th September, 1948. It is
proposed that I address members of the Australian Coal and Shall
Employeve' Federation at those places."
NATIONAL DEBT.
NATIONAL DEBT COMMISSION-ANNUAL MEETING.
On 19th August, 1948, the Prime Minister ( Mr. Chifley) said that
the National Debt Commission had met that day when the annual report
of transactions for the year ended 30th June, 1948, was presented, and
consideration given to the application of sinking fund moneys accruing
diiring 194S-49.
Receipts of the sinking fund for 1947-48 were œ 27,659,000. Receipts
for 1948-49 were estimated at œ 28,785,000 being œ 18,592,000 on account
of the Connuonwealth and œ 10,193,000 on account of the States. Of
the latter amount, œ 1,851,000 would be provided from Commonwealth
revenue. Total contributions estimated to be available for the redemption
of the d,. bt of each State were-
New South Wales, œ 4,000,000; Victoria, œ 2,034,000: Queensland, œ 1,475,000;
South Australia, œ 1.254,000; Western Australia, œ 1,092,000; Tasmania, œ 338,000;
ttal œ 10.193,000.
The receipts totalling œ 28,785,000 were directed by the commission
to be applied in the various markets in which Commonwealth and State
securities were held-Australia, London and New York. The commission
used its funds for the redemption of Commonwealth and State
securities either by repurchase of securities on the market, or by redemption
at maturity.
The large sums applied in repurchases on Stock Exchanges ensured
a regular market for security holders. When securities were acquired
by the commission, either by repurchase or redemption, they were canrc'lled
and the public debt reduced accordingly.
Members of the commission were-
The Couionwealth Trea-urer ( Mr. Chifey), chairman, the' Chief Justice
( Sir Jolhn Lathami), the Governor of the Commonwealth Bank ( Mr. H. T.
Armitagc), the acting-secretary of the Treasury ( Mr. G. P. N. Watt), the
Solicitor-General ( Professnr K. H. Bailey) and Mr. A. T. Smithers, representati\
ve . f tlwi States. GOLD MINING.
ASSISTANCE.
On 20th August, 1948, the Prime Minister ( Mr. Chifley) said-
The Commonwealth has agreed to provide a measure of assistance
to three gold-mining companies in the Kalgoorlie area and to review
the case of another Kalgoorlie mine when the financial results of its
operations during 1948 are available. The request of a mine in the
Cue district for assistance is still under consideration.
The Commonwealth's agreement to provide this assistance, follows
an application which was made by fifteen mines, through the Western
Australia Chamber of Mines, to the Minister for the Interior ( Mr.
Johnson). The Chamber claimed that a number of the mines would
he forced to close as the present price of gold did not allow a sufficient
margin to meet the rising costs. It was pointed out that the closing
cf these mines would have a serious effect on the economy of Western
Anctralia and might result in the abandonment of certain townships.
Financial and technical investigations were made into the position
of each mine. These investigations showed that a general form of
assistance is not warranted. Many mines are still capable of paying
good dividends even though rising costs are reducing the level of profits
to which the mines have been accustomed. A few of the mines included
in the application are only salvage propositions, and Commonwealth
assistance would not be justified under such circumstances.
The mines wvhich it has been decided to aid during the current
year have been informed of the termis of assistance, and the position of
the indust ry in Western Australia will be reviewed early next year.
Most mines are experiencing difficulty in maintaining production rate
because of labour shortages."
By Authority: L. F. JOHNSTON, Commuronwealth Governmzient Printer, Canberra.