FOP. PiS: REVIE'J OF' CGAINET BUSINESS
STAT~ JT iY TI-Q PRIM, MINISTER
FLOI\ I S TR ROTE. RT ,, Eivj ZTE S T C, tC, . P
Cabi. aet has now concluded its fi. r -t full
meeting since the election, A great deal of ground hrs
been covered. Apa ft from our eXcv. nuins tion of the r 1ign
situation as it relates to Malaysiww, e were anxious to
put in tr-: sin various po1licy promises we made, ari; d -to be
ready to meet the new Parliament with a series of positive
legislative ieasuresa In this statement, I propose, as briefly
as possible, to review the Cabinet-bjusiness of the last
two days.
2
MALAYSIA
The Government has had the military and political
situation between Indone sia sar. IMalaysia under constant attention.
A full review of the current situation., including various
activities in Sarawak and Sabah, was given to Cabinet by the
Minister for External Affairs.
Our Australian military advisers have thoroughly
examined the military situation and have given the Government
their assessment as to the adequacy of the military for.-ae, already
available to Malaysia, Having considered this assessment, the
Government earlier concluded, and still concludes, that tLiere is
no immediate need for further Australian assistance, This assessment
is shared by Malaysian and British authorities,
Australian forces of all arms already are, and have
for some considerable time been, in Malaysia placed there for,
among other things, the defence of that country, which comprises
not only Sarawak and Sabah but ( it should be remembered) Malaya
and Singapore. Australian naval vessels stationed in Malaysia
are already available for patrol and escort work, and RA, A. AF.
fighter squadrons are berin kept at a s; oto of operational
readiness for use in Malaysian air defence.
The Australian Government is maintaining close and most
harmonious consultation with the Malaysian and British Governments
concerning the military situation and concerning the need for any
further assistance from Australian forces. In addition to this,
the Government is consulting with the Malaysian Government to see
what it can do to contribute to the development of Malaysia's
own defence effort.
The Government believes that there has been and is
considerable scope in the diplomatic field to try to end border
incidents and to maintain peace in the area, We have boon most
active in these matters, We have, in particular, made our position
abundantly clear to the Indonesian Government, emphasising that,
although we sincerely desire friendly relations with Indonesia,
which it regards as important for both countries we also stand
firmly for the political and territorial intogrity of Malaysia
and have given definite militcry undertakings in support of it.
We have informed Indonesia that we disapprove of Indonesias
rcfusl! to recognise Malaysia, and its threat to crush Malaysia,
and that my statemont of 25th September, 1963, that Australia
would assist Malaysian and British forces to defend Malaysia
against external attock or externally inspirsi od . sbvo:. si C, ro. ins
unaltered. The Government welcomes the forthcoming conversations
between President Sukarno and the United States Attorney-Goneral,
Mr. Robert Kennedy, We are most hopeful that the discussions
will load to a clearer understanding on the part of President
Sukarno of the seriousness with which the United States and her
allies regard present developments on the Indonesian-Malaysian
border in Borneo,
3-
HOUI TNG
We gave a groat deal of attention to tho conrlx
problems which are involved in cottling the-dotails of the
Housing Subsidy Scheme,
As will be understood, many marginal questions
arise about the eligibility of persons for subsidy the
nature of the savings which will attract subsidy., he rdato
of operation of the scheme, and so one We are dterm . neTd
to settle all those matters of detail in time to present
the necessary legislation early in the new Session,
We arranged for a Committee of Ministers and
officers to work out the matters of detail in the light
of the Cabinet discussions. When the scheme has taken its
final statutory forn, it will be cacted to operate as
from the 2nd December, 1963, the first working day
after the elections had authorised us to proceed. This
means that when eligibility has been finally determined,
contracts entered into on or after December 2, 1963, by
eligible persons who satisfy the conditions, will qualify
for purposes of subsidy,
The new Commonwealth Department of Housing has been
established under the Ministerial control of Mr, Bury.
We have appointed the Secretary of the new Department.
He is Mr. JoF, Nimmo, who has in recent years
been Deputy Secretary in the Prime Minister's Department,
Prior to that, Mr. Nimno was First Assistnt Secretary in
charge of the Banking, Trade and Industry Division of the
Treasuryo I have referred to the Housing Subsidy Scheme The
other housing proposals in the Policy Speech are being
closely examined by the new Minister and Depart mnt, I will
hope that at a fairly early date, steps towards the-; putting
into effect of the Housing Insurtnce proposals can. be
announced.
4
CHILI) ENDOWMENT
In the Policy Speech I said
" Child Endownont will be raised to
per week for the third and subsequent
children Having in mind the educational
responsibilities of parents, 15/-per week
endow eont will be paid in respect of all
full-tino student children fron 16 to 21."
Cabinet has decided that the new rate of
endowment and also the entitlorent of student children
will connmence as fron the 14th January, 1964.
The Minister for Social Services will
announce further details, including the description of
those student children who are to be regarded as
" full tine",
FDUCATION
We discussed arrangements for Commonwealth
Secondary and Technical Scholarships and for assistance
to science buildings and equipment for secondary schools.
Senator Gorton as Minister assisting me in
Commonwealth activities in relation to Research and
Education will be in touch with State Ministers of Education
and independent school authorities in relation to the
scholarships and also in relation to science buildings
and equipment. Obviously there will be many important
administrative arrangements to be made,
It is not practicable, having regard to the
fact that examinations for scholarships cannot be usefully
organised when the school year is about to begin, to make
the scholarship scheme effective until the 1965 year
It will clearly, having regard to the divergent practices
in various States, take some little time to organise a
system of awarding scholarships by competitive examination.
However? arrangements for grants for science buildings
and equipment will be put into effect as soon as possible
after my colleague has had the necessary conferences.
The Commonwealthts Committee which is enquiring
into the future of tertiary education is expected to make
its report in March. It would, we thinl4 be wise to have
the benefit of this report before we fix the final machinery
for the Technical Scholarships and the grants for Technical
Schools to which I referred in my Policy Speech, There
will be no avoidable delay. We want to see the whole of
our educational proposals going into effect as soon as
possible.
6
NOT THERN DEVELOPENT
We discussed and approved the constitution
of the Division of Northern Development in the Department
of National Development. It will be assisted by the
appropriate inter-dopartmental committees drawn from
those Commonwealth Departments and Organisations which
have special knowledge, agreed upon the following
statement of functions In conjunction with other Departments
or Government organizations possessing
special knowledge or facilities to
keep under review the natural resources
of northern Australia,
To examine broad questions of policy
which need special consideration in the
interests of fostering northern
development.
To advise on northern development including
any proposals submitted to the Commonwealth
by the Governments of Western Australia
and Queensland.
To ensure that basic mapping ans surveys
of resources are maintained and
co-ordinated with developmental
requirements.
To publish maps, reports and other data
relevant to the resources of northern
Australia and their development,
WATER PE, S OUML
The Australian Water Resources Council wnich
we established has put in hand the preparation of
estimates of the requirements of the States and the
Commonwealth Territories so that the rate of measurement
of surface water and the investigation of underground
water resources should be acceleratede
The Standing Committee of the Council will
meet on January 29 and 30 to formulate recommendations
to the Council of Ministers which we are endeavouring
to arrange for February, After that Council has met,
we anticipate that firm proposals for an expedited
programme of water resources measurement will come before
the Cabinet.
We considered the Agreement which has been
made between Hamersley Iron Pty. Ltd. and the State
Government of Western Australia. The company concerned
is in substance a partnership between Conzinc Rio Tinto
( Aust.) Ltd. and the Kaiser Steel Corporation.
The agreement contemplates development of
the immense deposits of iron ore which occur in the
Hamersley Range area; first by straight-out export
of iron ore, and later by the organisation of a secondary
processing plant and the ultimate establishment of an
integrated iron and steel plant. Much large capital
investment is involved, for the work to be done will,
in addition to mining facilities, include roads, water,
town establishment, a railway line and a harbour.
Cabinet decided to approve the export of
200m. tons of iron ore pursuant to this contract over a
period which is estimated to be 21 years. Our export
approval is subject to the use of good mining practices
and approval of price as being reasonable, having regard
to the overall national interests.
9
MEAT EXPORTS
The Minister for Trade explained in
detail the nature of the negotiations now being
conducted overseas by a Mission headed by Sir Alan
Westerraan. Weo approved of the lines being followed.
It is, of course, for obvious reasons, not desirable
to say what proposals are being exchanged but there was
complete agreement upon the way in which the negotiations
for Australia were being conducted.
VARIOUS
A number of other matters were exaninodo
Some of them gave rise to decisions which are suitable
for administrative action, while others gave rise to
further enquiries, the result of which will no doubt load
to future decisions.
CANBERRA, 16th January, 1964.