PM Transcripts

EMBARGO--NOT FOR RELEASE BEFORE 7 PM ( EST),
FOR PRESS: 7 O 16 PM. No. 12C/ 1967
DROUGHT ASSISTANCE FOR SOUTH AUSTRALIA
Following Is the text of a telegram which was sent today
by the Prime Minister, Mr Harold Holt, to the Premier of South Australia,
Mr Donald Dunstan: " In your letters of 1st and 8th November about
drought assistance arrangements, you told me of your plans
regarding the rate of interest which your State Intends to
charge on loans for carry-on, restocking etc.; you asked
about the availability of the grants component of the
Commonwealth funds to cover such local employment works
as may be found necessary; and also for rebate on the cost
of rail traffic needed to Import oats from Western Australia
for seed and essential feed purposes to be met out of drought
relief grants from the Commonwealth.
I am pleased to advise that the proposed arrangements
concerning Interest to be charged by South Australia on
loans are acceptable to the Commonwealth.
We are also willing to treat as eligible for grant
assistance under drought assistance arrangements grants made
by your Gcvernment to local authorities and government
Instrumentalities to provide necessary relief work In drought
areas. S2uch grants should, of course, be limited to cases where
the drought Is clearly the cause of the unemployn-ent.
The Commonwealth would also be prepared to
provide reimbursement for rebates of up to 75 per cent, on
proposed movement from Merredin to Port Adelaide of oats
for seed and fodder."
CANBERRA, November, 1967