Douell's Portrait
Graduated and Capital inms Tax
Taxation
new shiip for Tasrman ran
: Joomera Rocket Range
Chambers of Commerce Guarantee
Scheme
hir. Hasluck and London visit
External Affairs Piortfolio
London Conference
So~ uth frica at length
K~ onopolies etc.
Proposed Daom on M~ urray
PRESS CONFERENCE GIVEN BY THE PRIME MINISTER, THE
RT. HON. R. G. MENZIES ON SATUiDAY 9TH APRIL, 1960
AT 11 A. M.
PRIME MINISTE
QUESTION: PRIME MINISTE
QUESTION: R: Well what can I tell you?
There's a message published in New York this morning
Sir, saying that Time Magazine propose to send Dobell's
portrait of you on a tour of Australia and then to offer
it to you. It's at present on display in the Qantas
Office in New York. Our people are wondering whether
you've heard from them and whether you will accept it.
R: I've heard nothing about it. I read it in the Age
this morning. I've no comment to make on it.
Mr. Calwell last night, Sir, proposed capital . r
tax and graduated tax on Company profits, mainly for tih
undoing I think of General Motors Holdens, as a deflationary
measure, or anti-inflationary measure for the next
budget. Are you likely to consider either?
PRIME MINISTER: I don't know ihat we'll consider for the next Bud?. o
It's a little premat'ire. But you've heard this story
about a graduated company tax many times. I seem to remember
it was tried by Mr. Curtin and later on by Mr.
Chifley, and abandoned. Of course, this is all part and
parcel of Mr. Calvell's obsession with the idea that thic
is a profit inflation. That argument has been answered
pretty completely in the House.
', UESTION: Sir, can we take it from : ihat you've said that
there will be no reLgaoe T company tax and no . o
PRIME MINISTER: You can't take me as saying anything whatever abor
the next Budget. I don't know anything about it yet.
That answer doesn't have any implications eithe-, ( Lter)
QUESTION: Mr. Calwell also mentioned that you'll have to increase
taxation to reach a non-deficit Budget. Is that
fair assessment?
PRIME MINISTER. What does Mr. Calwell know about it?
QUESTION: ( Interjection)
Oh, now come on, I'm not arguing about the Budget. Th-;
is April and not even April the 1st.
There are some fleeting rumours around that some
action may be taken jointly by the Governments of Austr,.
lia and New Zealand to provide a new ship to maintain
Australasian Shipping Service on the Tasman. Mini
tells me that he hasn't heard officially of it but sug
ted that if anything had cropped up you may have been c..
cussing it with Mr. Nash.
PRIME MINISTEi;: Joderful. This, I think, involves a question fo--
some replacement for the Honowai doesn't it? al1iel l,
can tell you about it is that Mr. Nash, when I as spci
ing to him on the telephone in Sydney a couple of days r
told me that among othe: things he would like to discuss
,, ith me in London was this question of the shipping link.
And I've said I'd be glad to do that and I've now asked
the Shipping Department to give me . ihatever background
information they have on it so that I'll be qualified to
talk about it. But that's all I can say about it, that's
all I know about it.
QUESTION: During the week, Mr. Menzies, there were reports
published from London, first appearing in tl. e London Daily
Express, that Britain was considering abandoning the . Joomera
Rocket Range and jiving away the Blue Streak and other
missile experiments there.
PRIME MINISTER: I hope I'll be relieved from the responsibility of
commenting on Mr. Chapman Pincher's rumours and speculative
stories because one becomes accustomed to them.
QUESTION: Sir, the Chambers of Commerce in their final session
yesterday, agreed to try and sponsor a guarantee scheme
for Commonwealth countries to guarantee investment 3i sks
in some of the lesser developed areas and they propose
that this should be part
PRI1iE MINISTER: Don't tell me; I haven't read it. I'm certainly
not going to comment on it, whatever it is. They didn't
deliver the paper at ray house this morning before I left.
Sir Garfield Barwick will be acting Minister for
Eternal Affairs while I'm away. I notice that there has
been some speculation about " Why Mr. Hasluck?". Well the
answer, of course, might by " Why not?" Mr. Hasluck I'm
taking with me for very good reasons. He's been deeply
immersed in his territorial problems for years now without
any intermission and I think that this will be very helpful
to him to get a sort of distant perspective on these
things'; to come with me to have discussions with the
Colonial Administration in London; to go over to The
Hague and have talks with the Dutch; to have discussic'-
in New York with members of the Trusteeship Council -io
Trusteeship Organisation; putting our point of view
explaining our policies that are being pursued, I thin..
it's very valuable. It has no significance beyond that,
QUES'ION: Might he be useful to you on the question of rac'.-
problems, integration, if those matters are discussed?
PRIME MINISTER: If those matters are discussed, yes. Oh, he'll be
extremely useful to me because he's very experienced and
intelligent.
QUESTION: -y s te-t the Trusteeship Council
formally, Sir?
PRIME MINISTER. Oh, I couldn't tell you that. I don't even know
whether it could be meeting. Their Headquarters are in
New York and that's all I had in mind.
QUESTION: Does your statement, Mr. Menzies, suggest that yo"-
will retain the External Affairs portfolio indcfini-
PRIME MINISTER: I think the last time I was asked about that I s.-
that that would depend entirely on how I found I was
ing out with it.
QUESTION: Have you found out yet Sir?
PRIME MINISTER. Well, I'm so far not very embarrassed by it. No
I've got Senator Gorton doing a lot of work.
QUESTION: PRIME MINISTE Is he doing any policy stuff, Sir, or is that a?.
I; ' ell, not major policy stuff, i mean questions
well they're not really policy stuff I suppose but
questions of approval under the Colombo Plan, they involve,
I suppose elements of policy well he deals with
those. There's a good deal of routine, or semi-routine
administration ihich takes up time. The things he attends
to are broadly those things which are not top policy or
matters which involve some major decision. In which case
he refers them to me and, if necessary, discusses them with
me. So far it's working all right but nobody can pierce
the mists of the future.
QUEJTION: Will Mr. Hasluck present to the Dutch Goverrmient in
his discussions any specific plans for the future of New
Guinea?
PRIME MINISTER: Oh, now look, he's not going to Holland to present
plans. Really why always force the cards in this way. He
happens to be the Minister for Territories, Austr; lian-
New Guinea, Papua. The Dutch happen to be the proprietors
of Jest New Guinea so of course he'll call on the Dutch.
Je hatve administrative contacts with them therefore he'll
be very interested to talk to their people. Their man
came out here and talked with us,
QUESTION: His visit will be the equivalent, in fact, of the
visit
PRIME MINISTER: That's right; but we didn't discuss plans with
their Minister , rho came out hero, nor will Hasluck have
any proposals to put before them. There's always an assumption
you know, about these internationsl thjngs ti:.;
you go along with a plan and if it's got four paragraph_
in it, it's a four-point plan. That's a good head. line
you see. But you never go with a plan. You g o h-c'
talk about things. You go to let the wind blow the ccversation
around the room. You just take it as it goe:
Something may emerge from it. You dont go in with a
statement of claim.
QUESTION: Can you give us any thoughts on the general Londo.-,
Conference, Sir?
PRIME MINISTER: Oh, I think it's going to be very inter. sing because
it's just, as you know, just before the Suit and
I've no doubt Mr. MacmiJlan will look for lr. d to discussing
with the other Prime Ministers the problems that ri..
arise at the Summit; one of the major things of which,
no doubt, will be the disarmament problem, which has run
into some difficulties in Geneva and which I think, rays-N
will probably need some direction from the Sur7mmit if it*:
to be brought to finality, But I anticipate that he'll b,
very frank about what he has in his own mind in discuss'-
that problem with us. I suppose it will be too irmuchi to
expect that he'll get eight or nine views all of which
coincide. But he'll get some considerable bcnefit, no
doubt, in having ideas thrown around at the table,' That
Irather think is going to be the major object of the e: r
cise. ' To may also have some talks about the future of
Cyprus as to which there is still some uncertain,-Ly, T.
will be a proposal from Ghana that, on becoming a Repub"' i-
Ghana should remain in the Commonwealth, But we've no
agenda. ie never do, Ihat happens, in fact rt a Pri-co
Ministers' Conference is that, for example, a Foreign
Secretary, whoever he may be, will, at a certain stage,
give a conspectus of the foreign situation and c" urrent*
problems, and then we discuss them exchanging ideas,
getting further information where necessary. At anotchosession
the Chancellor of the Exchequer will come along
and he'll open , n economic session and discuss his own
budgetary policy, the position of the Sterling area and
what goes on in relation to conzertibility. Another, tie
the President of the Board of Trade may be invited to cc-e
and discuss the European common market,
QUESTION: Do you think there'll be any serious discussion on
that? The Chambers of Commerce are very concerned about
the developments,
PRIME MINISTER: I don't know how serious a discussion there'll be.
But that there ,/ ill be some discussion is quite certain
because we're interested and Canada is interested. ' Jhether
those discussions will occur in the full meeting of
Prime Ministers, or whether they will be talked out by two
or three of us with the Board of Trade, for example, I
don't know at this stage. iie don't have an Agenda paper.
QUESTTIONDo you think it's on the broader racial question
rather than South Africa-that there will be a possibility
of that being discussed.
PRIME MINISTER: Well, I don't know. I've ndt heard it proposed. The
rule that has been applied in the past and by nobody more
zealously than one or two of the Asian members of the
Commonwealth is that we don't discuss matters at issue between
two members of the Commonwealth. In other words we
are not a board of adjudication. And that means for
example this problem: these arguments that go on about
South Africa. They will almost certainly not be discussed
in the Conference but that there will be discussions in
private in an informal way, I've no doubt. I, for example,
would hope to have a talk wlith Dr. Verwoord before the Co;-
-foernce begins. I'd like to add to my own knowledge of,
not only the events, but the policies that lie behind ther
That's quite inevitable and I'm looking for-ward to that,
It will be very interesting. I gather that my colleague
the Tunku Abdul Rahnan is going to raise this matter, biu'
not, I think, in what I'll call full session of the Conference.
Because that's ainst ourpractico, and, indeed,
it's very undesirable because if you got to that point
you can have somebody wanting to move a resolution or something
of that kind.
QUESTION: PRIME MINISTI
QUESTION: PRIME MINISTE
QUESTION: PRIME MINISTE
QUESTION: PRIME MINISTE
QUESTION: Is that rule always observed Mr. Menzies?
R: Always, in my experience. And again in gy expericna
and I am the oldest inhabitant, no motions are ever tabled
and no votes are ever taken, though some of the suggestions
I've read are a little bit revolutionary. No votes.
As a matter of fact when re produce t'iat superb collection
ofclichos known as the communique, at the end of the Conference,
it is a collection of cliches only because every
thing in it has to be agreed to by everybody at the table)
Is it a fact, Sir, that each Session is put aside
and re-arran ed at the next Session?
R~ i'Jell if you said that, you'd have some prime facie
evidence to support it. That's the position. You've been
discussing some matter, it's very interesting, it's worth-.
ihile referring to it and one Prime Min ster says I
object to any reference being made to that subject" and
that's out. ThataLy t'k sa bit. " biants mag-l
Have you had any recent news of developments on
South Africa Sir, Llart from what you said?
R: I know that what I've said about this matter not
being a matter of debate in the full Prime Ministers' Conference,
coincides with Mr. Macmillan's view and I've no
doubt that on examination it will be the generally accepted
view. I know for example that Mr. Nehru will agree
that this kind of problem is not a matter for full session,
Can you tell us, Sir, what the Commonwealth is giving
Princess Margaret as a Jodding Gift?
R: No I can't.
Reverting to that again, Sir, has our High Commissicn-
er in South Africa given a second report on this or in any
way dealt with the circum-ntances of Sharpeville?
PRIME MINISTE: Oh he's written one or tio quite lengthy letters on,
this matter but I don't think there's anything very fresh
in them. That's all I'll say about that.
QUESTION: Do you think these discussions in London will ease
the situatioh at all, Mr. Monzics?
PRIME MINISTER: JWll, I don't know. I, for one, always hope so. At
any rate any talks which, again I repeat, will be private
and informal, must do good because they must produce explanations
of policy, for example, which will be vcluable.
You see there are two aspects in C matter of this kind,
One is these terrible incidents which shock everybody. Yon
may assume that these are the direct consequence of a
policy or you may think that they are not, but that they
are sort of inadvertent by-products of some policy. Well,
we'll know more about that when we read the results of
the judicial investigations that are in hand in South
Africa. Idon't know whether my colleagues in London who
desire to talk about this matte want to " out the
incidents, or want to talk about the policy. I!' m myseY
vastly interested to understand the policy while alway
remembering that it's South Africa's policy, not min'e.
is their business, not mine.
QUESTION: Sir, if the South African Prime iiniste:. tokos
viewpoint it might not be discussed at all?
PRIME MINISTER: I've no reason to suppose that he won't discuss it,
with me, for exampleo I think he will. I'm sure that
will be willing to discuss it with people, bu' net in the
Conference Room with the threat that some people have
hinted at, of emotion. I wouldn't expect that he woulV.
that. But I've not the slightest doubt that matt
will be freely discussed.
QUESTION: Is there any fear that the colour question :-ay di-.
vide the members at the Commonwealth Cofo---e.
PRIME MINISTER: Oh, I won't say anything about that, : T've got
along pretty well so far. No reason . rwhy we shouldn't.
There are just two crmments thatl'd like to make
which are worth having in mind, I think. Those who tal. 7
about expelling South Africa from the Commonwealth, if
such a procedure is available, I think overlook the fact
that there may be a great number of people in South Af: i
including a considerable number of Africans, who want t?
be in the British Commonwealth, who don't want to be tL:' o.
out ofthe British Commonwealth.
QUESTION: You mean the Dutch people?
PRIME MINISTER No. I mean Africans the coloured people.; the
Bantu. They call them Africans. ell, how does anybody
here know? There might be millions of them who would not
w. ant to be out of the Commonwealth, who feel that in a
membership of the Comnonwealth they have sorn ' ection
for their future, You don't know. I don't know. Unde
those circumstances to say to South Africa: " You're ou
the Commonwealth" may be to punish the wrong people, Now
that's point No. 1.
Point No 2. I'm glad to see that this nonsense
about a trade boycott is beginning to fade out ofthe
picture because never was anything sillier suggested.
What's the object of a boycott? I suppose it is to punis.'
the Government, the present Government of South Africa. o:
6.
to affect its policies. Suppose if Australia imposed a
boycott. It's worth remembering that perhaps the largest
single item of import we have from South Africa is fish
and thu great bulk of the people engaged in that industry
in South Africa are coloured people. So in order to show
our sympathy with them we put them out of a job. A boycot
always was a blunt instrument, but if you apply it to the
trade bet roon South Africa and Australia its stupidity and
injustice become perfectly clear. Anyhow, I don't think
anybody in Australia seriously suggests it.
QUESTION: On a more local subject Sir, have you any hint of a
kind of programme in mind on monopolies and other legislative
PRIME MINISTER: No. I haven't. The Attorney is at work on that
matter. As you know it's a complex . thing. ', ell he's
bound to hold it until I get back because this is going tc
require a great deal of examination. I would hope in the
Budget Session.
QJESTION: WJould a referendum be involved in this?
PRIME MINISTER: A Referendum?
QGETION: Mm. Like more Commonwealth power to deal with
PRIME MINISTEIR: Oh, I Look we haven't yet czc, . c ony decision
about this famous report on the amcndment of the Constit'c.
tion.
QUESTION: It would be an interesting paper if you took the
whole lot of them wouldn't it, Sir?
PRIME MINISTER: Yes.
QUELTi-ON: Do you have any particular monopolies or restrictive
practices in mind
PRIME MINISTER: Now, look, I'm saying no more about it.
QUESTION: Sir, Sir Thomas Playford has suggested that it
would be a fair thing if the Commonwealth and the State
South Australia pay half each of the cost of his ooc.
dam on the Murray. Have you any reaction to that?
PRIME MINISTER. No comment.
PRESS AN: It's quite surprising that he wants to pay half,
isn't it? ( Laughter)
fith the compliments of:
Mr. Hugh Dash,
Press Secretary to the Prime Minister.