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COMMONWEALTHGOVERNMENT. 66$-J U L 196
CA 3 . i
DIGEST OF DECISIONS
AND ANNOUNCEMENTS AMD
IMPORTANT SPEECHES
BY
THE PRIME MINISTER
( THE RIGHT HON. J. B. CHIFLEY).
No. 129.
PERIOD-lsTr AUGUST, 1947, TO 6TIr SEPTEMBER, 1047.
By Authorthr:
L F Jourim. N. Commonwealth Government Printe. Canberg
( Prnted in Australia.)
5691.

INDUSTRIAL.
INDUSTRIAL RELATIONS-CONFERENCE, DECISIONS.
On 3rd August, 1947, the Prime Minister ( Mr. Chifley) said-
While I survey with satisfaction the great increase in the industrial
capacity of Australia, the existence of full employment in the community,
the progress made in providing a degree of economic security
for our people, I am gravely concerned with the shortages of houses
and of goods needed by the people and the delays in carrying out works
vital to the maintenance and development of this country.
Manpower shortages will not permit the accumulated needs of the
war years to be overtaken and current requirements to be met at once
or in the immediate future. I am convinced, however, that Australians
united in effort-as they were in war-can attack and overcome more
speedily a situation that is detrimental to the economy of the nation
and the best interests of its people.
To-day, Australia has the greatest opportunity in its history.
There is a world shortage of basic commodities which Australia excels
in producing. High prices are obtainable for our exports. New
markets are opening for both our primary and secondary products.
Internally, industry has vast plans for expansion, and there is opportunity
for intense activity in the building of houses, hospitals, schools,
factories and development of roads, airports, railways, water conservation
and electrical schemes. If we do not take full advantage of this
opportunity it will be mainly because individual Australians have
failed-failed to realize that Australia's good is their good and that
of their children.
" I appeal then to every individual Australian to give of his best
in whatever occupation he may follow. To do less is a denial of the
needs of his fellow Australians. Let each Australian then develop a
new spirit-a new vision of the personal importance of his efforts to
this country and his fellows. I appeal to the leaders of the trades union
movement to exercise firm discipline over the units they lead, to prevent
unauthorized strikes, to eliminate inter-union disputes, to avoid disputes
over small matters, and to concentrate their efforts and thoughts on
the production this country so sorely needs. I call on each unionist to
give unswerving loyalty to such leaders. I call on the employers of
this country for more production, for the utmost efficiency in their
methods, for a greater personal interest in the industrial problems of
the human beings who are their employees, for the provision of better
working conditions for those employees, for a broad tolerance towards
workers suffering from the strain of war and experiencing a natural
reaction to war-time conditions. Above all, I ask them to be ready
and generous in sharing with their employees the benefits of the
increased production that I feel confident will take place.
" I ask that all parties in industry will avoid those things that
have been sapping the industrial strength of this country and preventing
the achievement of higher living standards for our people. I invite

willing acceptance of the principle of conciliation and arbitration and
trust that all. will co-operate in giving a fair trial to the new scheme
of arbitration and conciliation which will soon be in operation.
This country cannot but be affected by the economic changes
taking place beyond its -boundaries. It is vital that our own econom3
be stabilized to meet possible repercussions from abroad. Steady work
by each and every Australian will be the most powerful factor in
aIchieving this. Given this, we protect ourselves, we give the best aid
to Britain in its sore plight, we make a contribution to the solidity and
welfare of the British Commonwealth of Nations, and we do something
for the stricken people of countries devastated by war-peoples afflicted
with a spiritual and physical misery never known in this country and
the depths of which are so abysmal as to be almost beyond
. omprehension. " I am pleased with the results of the conference over which I
presided in Canberra, and I feel that the people of Australia have much
to hope for from the operation of the machinery for closer consultation
between employers. employee, and the Government that has been
established." On 3rd August, 1947. Mr. Chifley, the PresideL-r of th:.
Australasian Council of Trades Unions ( Mr. P. J. Clarey, M. L. C.)
and the President of the A\ ssociated Chambers of Manufactures. ( Mr.
Robinson) said-
" The three constituent bodies associated witlh industry, the Government,
the Associated Chambers of Manufactures of Australia and the
A\ ustralasian Council of Trade Unions having met in conference have
reached the following conclusions:-
1. Increased production is essential for the continuance of satisfactory
Australian living standards; their improvement; the meeting
of many shortages in both capital and consumable goods, and for the
relieving of the inconveniences and hardships at present being
experienced by Australian citizens. These shortages relate to the things
which intimately concern the life of Australian men and women, such
as housing, clothing and many other commodities. The parties, therefore,
agree that every effort should be made to stimulate and promote.
production to the highest possible point, consistent with existing manpower
and productive resources. This is a matter in which all must
co-operate. It is the function of not one section of society, but of all.
The parties believe there are ways in which this increased production
can be achieved, notwithstanding the belief that all sections of" the
community are now honourably playing their part. It is suggested that
the three constituent parties endeavour to stimulate production by
means of more efficient management, where possible, the introduction
of up-to-date plant and machinery, the elimination of waste, by using
every effort to reduce labour turn-over by cutting out unnecessary
absenteeism, and to prevent the abuse of sick leave provisions. This
appeal is made not only in the interests of the people of AuAtral) a.

but also that the people of Australia can play their part in making
more commodities available to the people of Britain, and enabling
commodities to be secured from other countries in the world for our
convenience and welfare.
Consideration of the production needs of Australia have indic:
ated tlat two major bottlenecks exist toward the overcoming of
which the influence of the three parties should be exerted to the fullest.
The major bottleneck, that of coal, is one which the parties feel can
be best solved by the recently appointed Joint Coal Board, which is now
concentrating its efforts on a solution of this great economic problem.
We make an earnest appeal to the coal miners and those closely engaged
in the production of coal, and its distribution, to assist to their utmost.
The other major bottleneck is that of man-power. The economic
expansion of Australia during the last seven years has made a great
demand for additional men and women for industry. The parties
suggest that many persons who gave fully and freely of their services
during the war period to help the nation in its period of stress should,
as far as possible, make themselves available to industry to overcome
the grave shortages resulting from an almost complete war-time cessation
of production of consumable goods which must now be made available,
in addition to normal peace-time requirements of the nation.
3. It was evident to the conference that. from a general review
of the economic and employment position, free or private enterprise
in the past and at present is the major avenue for providing work.
It is, therefore, the avenue providing the greatest measure of employment.
Complete understanding between the controllers of enterprise
: end representatives of the workers is, therefore, essential if industrial
relations are to be established on a satisfactory basis.
4. The matter of prevention and settlement of industrial disputes
ictween employer and employee is fundamental to the efficient and
smooth running of industry. All parties to the conference agree that
the conciliation and arbitration machinery provided by the Commonwvealth
and the States provides a means whereby differences between
t: mployer and employee should be readily determined. In the settlement
of industrial disputes, conciliation should be exercised to the
fullest before final resort is made to arbitration. It is desirable in the
interests of the community that industrial disputes should be reduced
to the barest possible minimum. The trades union representatives have
expressed their disagreement with unauthorized strikes arising without
consultation, either with the trades union concerned, the Trades and
Labour Council of the States, or the Australasian Council of Trade
Unions ini the Federal sphere.
5. The right of the worker to share in the proceeds of industry is
ine which has received the full consideration of conference. It is
agreed by all parties that increased standards of living are only possible
from constantly increasing production of goods and services required.
The right of the vorker to recefive his proportionate share of increased

production is recognized, but the manner in which this should be granted
to workers in industry is subject to difference of opinion. The
employers have suggested that a satisfactory solution would be for the
introduction or extension of incentive payments, which would.. give.. a
daily or weekly benefit to the worker from the results of his immediate
higher production. The trades union attitude is one of distaste for
incentive payment, based on past experience. The Australasian Council
of Trade Unions intimated to the conference -that it is prepared to make
a full and complete investigation into modern incentive payment systems
to determine whether such systems would be of advantage to the worker
and the community. The employers intimated to the trades union
representatives that they were prepared to place before thern information
requested and give assistance so that this investigarion could be
thoroughly undertaken.
The holding of this conference to achieve better understanding
between the partners of industry has indicated that view points on
matters of policy and principle have varied greatly. The conference,
however, has enabled both parties in a free and frank manner to state
their views and the reasons for them. Conference is, therefore, of the
opinion that frequent consultations of this character are essential for
securing better industrial relations and undisturbed continuity of production.
It is agreed that similar conferences should be held at six
monthly periods so that econome trends, industrial and other problems
might be fully considered.
The parties agree to advise each other as to matters which
they feel should be considered by conference so that they may be able
to investigate such matters with a view to decisions being arrived at
when conference meets
Those present were-
COM. MOwF. Ar.' TH GovErtN.\ M. ENT.-The Prime Minister ( Mr. Chilley), the
Minister for L. abour ( Mr. Holloway), the acting-Attorney-General ( Senator
McKenna), tile as-istant-secretary of the Department of Labour ( Mr. H. A.
Bland), the Director of Industrial Welfare ( Mr. L. G. Baxter).
AUSTRALASIAN ( CouNCIL. or TRADE UNIONS.-The president ( Mr. Clarey,
the vice-president ( Mr. T. A. Cranwell), the secretary ( Mr. A. E.
Monk), and Messrs. L. Austin, New South Wales, C. Crofts. Victoria, E. J.
Hansen, Queensland, A. V. Tlhoipson. South Australia, and H. O'Neill, Tasmania,
members of the executive.
AssOCIATKrn CHAM;" rs orF MANITACTr: ItE.-Th e president ( Mr. L. Robinson).
tihe New South Wales president ( Mr. J. Adamson), the New South Wales vicepresidents
( Messrs. P. Tivey and R. J. Webster), tile Victorian president
( Mr. C. H. McKay), tile Victorian deputy-president ( Mr. E. F. Atkins), the
Victorian past-president ( Mr. C. A. H. Derhan), the Queensland president ( Mr.
H. S. Gresham), the South Australian past president ( Mr. F. T. Perry). the
acting-director ( Mr. A. N. Curphey), the New South Wales director, Mr. C. R.
Hall), the Queensland secretary ( Mr. L. Suggers) and an officer of the Metal
Trades Association ( Mr. J. Lambert).
ARBITRATION ACT-CONCILIATION COMMISSIONERS.
On 15th August, 1947, Mr. Chifley said-
Cabinet decided to-day on the appointment of sixteen Conciliation
Commissioners. The deputy Industrial Registrar and Conciliation
Commissioner ( Mr. E. H. Rowlands) will be the Chief Commissioner.

7
In addition, all the other existing commissioners, within the age limits
laid down by the Act, will be appointed. They are Messrs. A. A.
Blakeley, G. A. Findlay, G. A. Mooney, D. V. Morrison, J. H. Portus
and M. M. Stewart. The following nine additional appointments will
also be made:-
Brigadier A. S. Blackburn, V. C. ( South Australian barrister) Messrs. R. H.
Beers ( Secretary of the Victorian Department of Labour and Chief Inspector
of Factories), G. H. Buckland ( Australian Workers Union, Victoria), J. 1.
Ionovan ( Executive Officer of the Conno ealth T'ranSport Advisory Council),
V. Dwyer ( General Secretary of the Amalgauated Postal Workers' Union,
New South Walet). F. D. Kelly, M. L. C. ( New South Wales), N. Roberts ( Conmercial
Representative, Department of Munitions, Victoria), A. R. Wallis
( General Secretary of the Clothing Trade Employees Federation, Victoria), and
W. J. Wallwork ( Stipendiary Magistrate, Western Australia).
( For earlier references, please see No. 125, page 14.)
UNEMPLOYMENT-FIGURES.
On 1st September, 1947, the Minister for Labour ( Mr. Holloway)
said that unemployment in Australia was at record low levels and
continued to fall month by month. At 31st July, 1947, the number
of unemployed persons receiving financial benefits totalled 5,364 males
and 192 females, nearly 700 below the total for June, 1947. At 31st
July, 1947, the Commonwealth Employment Service held unfilled
vacancies for 42,100 males and 30,700 females, a rise of some 3,000 on
the previous month, the total number of vacancies being over 100,000.
( For earlier references, please see No. 126, page 31.)
PEACE.
JAPAN-VISIT OF DR. EVATT.
On 5th August, 1947, the Prime Minister ( Mr. Chifley) said-
" 1 have received the following message from the Supreme Commrander,
Allied Powers ( General of the Army Douglas MacArthur):-
Dr. Evatt has completed his visit to Japan and has sailed for home. It
has been a source of pleasure and satisfaction to everyone to have had him.
here. He has represented your country with skill and distinction and has
added to its national prestige. He has been of marked assistance with regard
to occupation problems and has made a distinct contribution to the furthering
of a treaty of peace. It is needless to add that he lias rendered more. vivid
the indissoluble ties of cordiality and friendship forged between our two
rountries during our ( commlon struggle in the Pacific. Thank you for perinitting
him. to comne."
On 12th August, 1947, the Minister for External Affairs ( Dr.
Evatt) said-
During my' visit to Japan-chiefly a fact-finding mission-I had
full and frank discussions abrnut the occupation and the problems that
will confront the Allies in writing the peace. I am satisfied that the
way is clear to the making of a peace settlement that will be a stable
foundation for the security of the Pacific.
" I had frequent discussions with the Supreme Commander, Allied
Powers ( General MacArthur), and with leading officials of the occupation,
diplomatic representatives of other Powers, ' and a few of the

Japanese parliamentary and trades union leaders. Fromn these discussions
and personal observation I am able to ' appreciate still better
the undoubted achievements of an extremely difficult and complex
military occupation and administration. My consultations with
General MacArthur showed a broad agreement on . the steps to by
taken in preparing the treaty, on the principles that should be contained
in it, on the type of supervisory , machinery that should bi
established under it and on mnany of the other important matters with
which the settlemcent must deal.
" It has been most encouraging to find that all my discussions and
observations have amply confirmed the soundness of the policy that ' the
Australian Government has consistently advocated towards Japan. The
two great objectives are the security of Australia and other Allied
Powers from a resurgence of Japanese aggression, and a positive programme
for assisting Japan to develop gradually into a democratic
and peaceful member of the society of nations. Almost equally important
is the : metlhod of peace-making. The peace treaty should b:.
negotiated as soon as possible along democratic lines by all powers
that played I substantial part in the Pacific war. Because of her outstanding
war effort, Australia is clearly entitled to be a party prinlpal
to the settliement, and that : i now universally recognized.
The military occupation has new almost accomplished its primary
task, which w. as ie complete physical disarniamneut and deiiilitarizution
of Japan. It has taken imlportant initial steps towards th.
democratic reconstruction of Japnii, for example through the -adoption
by the Japanese people of a inew constitution and the encouragement
of trades unions. The peace. treaty could and should contain provisions
destined to . ecure. the accomplishment of the long-term objeetives-
to prevent any re-growthl of a vw. rr potential and to stial'uato
and consolidate the growth of democracy in Japan. These problems
will form the subject of discussions between members of the British
Commonwealth on 26th August, 1947. That beginning will be followed
by ai conference of all the Powers that took a substantial roll.
in achieving victory in the Pacific war.
I was greatly impressed by the bearing and behaviour of the
Australian servicemen and the re'st of the B. C. O. F. in Japan. They
have greatly assisted in the success of tin occupation and have demonstrated
to Japan and the world at large Australia's major interest in
the Pacific. The co-operation between the B. C. O. F. and the United
States forces has strengthened an association and comradeship that did
-o much for Australia during the crisis in the Pacific war."
JAPAN--ADVISORY COMMITTEE.
On 12th August, 1947, the Advisory Committee on Japanese Settlement
had its first meeting. Members of the committee , are-
Sir Frederic Eggleston, chairman, the Solicitor-General ( Professor K. ' 1.
Bailey), vice-chairman, the chairman of the Canteens Trust ( Brigadier A. S.
Blackburn), the chairman of the Australian Broadcasting Commission ( Mr.
R. J. F. Boyer), the president of the Australasian Council of Trades Unions
( Mr. P. J. Clarey, Miss Constance Duncan. the leader of tlh

9
Australian Antarctic Expedition ( Sir Douglas Mawson), Professo. A. H.
McDonald, the president of the Legion of ex-Servicemen ( Mr. B. McDonald),
the Secretary of the Associated Chambers of Comnmerce ( Mr. P. R. Wilkins),
Professor H. L. Sadler, Senator Tangney and Messrs. Beazley, Sheehan, Corser,
Harrison, McEwen and Ryan, Ms. H. R.
( For earlier references, please see No. 128, page 22.)
JAPAN-BRITTSH COMMONWEALTH CONFERENCE.
On 16th August, 1947, the Prime Minister ( Mr. Chifley) said-
The Minister for External Affairs ( Dr. Evatt) advised Cabinet
to-day that representatives of Britain, Canada, South Africa, New
Zealand, India, Pakistan, Burma and Australia would meet at Canlierra
on 26th August, 1947, to discuss the question of a peace
; ettlement with Japan. The provisional agenda of the conference will
loe procedural questions; basic objectives; control or supervision of
Japan; territorial provisions; disarmament and demilitarization;
political provisions; economic and financial provisions; and reparations.
" The general policy in relation to Japanese settlement may be
summarized as follows:-
There should be no delay in going ahead with the Japanese I'Paice Conference.
In the absence of a peace settlement there will be increasing tendencies for
iajor matters of permanent imlport. inc to be dealt with on a piecemejal basis or
to be postponed.
Auistrnliln'aw \\ a eltort entitled lier t-be rI: tog nized as n party principal in
the peace settlement Australia lhis ealted this position by her war effort
which, inl Celcr. ial MacArtlur's words. contributed inlcaslulrably towards
I'acific victory.
Australia accepts the democratic principle that despite their varying con-
Iributions to the common victory all nations which played any substantial
a:.; rt in the Pacific war should he represented at the peace conference.
The voting procedure suggeste l by the United States ( that is, two-third
irajority) is just and democratic and any attempt to apply the veto system
would be unjust and must be resisted.
The peace settlement for Japan need not be a long drawn out affair, but
iuld be completed early in 1048. Indeed its fundamentals have already been
:; ccepted in the basic policy formulated in the Far Eastern Advisory Commission
; nd later confirmed in substance by the present Far Eastern Commission which
was a development of the broad principles of the Potsdam declaration. The
f: oundlations of the peace have also been laid through the constructive pioneer
work already pierformed in Japan by General MacArthur, as a result of which
military disarumaient is now practically completed.
The basic policy of the Far Eastern Commission prescribed certain measures
which were the physical disarmament of Japan. the removal of militarist and
I'a: scist elements, the trial and punishment of war crimes and the destruction
Japan'. capacity to wage war.
The basic policy of the Far Eastern Commission also laid emphasis upon the
i-sitive tasks of building a peaceful and democratic Japan. This called for
reform of the social, political and economic life of Japan. For example, trade
unions should be actively encourigel antd the educational ystcm liberalized.
These positive tasks are necessarily lone-term in character.
SThe settlement niust take account of South and East Asia and the Pacific
t whole. A peace should be established in accordance with the objectives
-f the United Nations Charter-a peace which should give security from future
;., gression and at the same time help to raise the standards of living of all
the peoples of South and East Asia and the Pacific. The gradual economic
development of Japan should be part of a general plan for the economic betterment
of East and South-East Asia and the Pacific as a whole. It would be
injust if her population obtained privileges and benefits denied to the countries
which she has devastated.

In order to achieve these objectives, an Allied supervisory authority should
be established in the treaty of peace in order to consolidate the important
gains already made and ensure a bona fide observance of the treaty provisions
and especially to prevent any re-establislhment of a war potential. In addition,
the supervisory authority should have as one of its functions, the co-ordination
of the Japanese economy with those of the Pacific and East Asiatic regions.
The futitre of . Japan depends first upon the determination of the Allied
Power to pursue vigorously the objectives laid down by the Far Eastern Commission.
and secondly upon the energy, sincerity and co-operation of the
Japanese themselves in carrying out the great reforms already planned.
The peace treaty should therefore lie not vindictive but just and firm.
Australia desires to achieve hy demnocratic procedures of peace-making a
stable and lasting peace in the Pacific based on security from aggression and
the welfare of all Pacific peoples. This great objective will be assisted if tihe
peace conference is expedited, thereby furnishing an example of Allied co-operation
which should also assist in the final European settlement.
Cabinet expressed satisfaction with the progress made in connexion
with the Japanese peace settlement, as a result of Dr. Evatt's
recent mission to Japan and gave approval to the general principles and
purposes to be followed and the democratic procedures proposed for
the peace settlement
JAPAN-BRITISH COMMONWEALTH CONFERENCE.
On 26th August, 1947, the British Commonwealth conference met
at Canberra. The following communiqu6s were issued:-
August 26th: Discussions at the conference are of a pirovisionl icharacter
and are for the ipurpose of exchanging views between ' the nations represented.
The subjects to he discussed for this purpose will hei.
Procedure--The proceedings and machinery for making the peace settlemtent
with . Japan, including composition: level of erereiitation:
time: place: voting: time-tailel for peace ' ttleiieni t procedurec sihsequenit
procedure.
2. Basic objectives of settlement.
3. Territorial provisions.
4. Disarmament and de-mnilitarization.
Political provisions.
Economic and financial provisions.
7. Reparations.
S. Machinery for enforcement-arrang(. ments for termination of occupation:
control organization ( composition. nminner of voting. , place of.
meeting, executive action, relation to United Nations): termination.
9. Form of peace settlement ( one instrument or two; participation of
Japan; coming into force; adherences.)
August 26th: At the short afternoon session, there was . a general exchange
of views on Peace Conference procedure including the system of voting. In
the course of the discussion on the latter subject, views were expressed on the
United States proposal that decision at the Peace Conference shlioul he by a
two-thirds majority.
The consensus of opinion was that the first meeting of the I'racte Conference
should he held as soon as possible. It was also the general understaniding that
the initial conference should be on a Governmental or policy making level.
August 27th: To-day's sessions were devoted to an examination of the basic
objectives of the settlement and the territorial provisions that should he incorporated
in the peace treaty. Consideration of these problems was simplified by
the existence of the statements made at Cairo, Yalta and Potsdam. Allied agreement
on fundamental principles had also been reached on the basic policy and
other policy decisions of the Far Eastern Commission.
An examination of these documents shows that there will be no complicated
frontiers to define in the Japanese Peace Treaty since Japanese territories are all
insular. The Potsdam Declaration states specifically the ' Japanese sovereignty

shall be limited to the islands of Honshu, Hokkaido, Kyushu, Shikoku and such
minor islands as we determine It will be for the Peace Conference to decide
which of the minor islands shall remain under Japanese sovereignty.
Against this background, the delegations exchanged views on certain strategic
aspects of the changes proposed and on its effect on the economy of Japan and
heard statements from the commander-in-chief of the British Commonwealth
Occupation Force ( Lieutenant-General H. C. H. Robertson), the Assistant Undersecretary
in the British Foreign Office ( Mr. M. O. Denning), the head of the
Canadian diplomatic mission in Tokyo ( Dr. E. H. Norman) and the Australian
representative on the Far Eastern Commission ( Major J. Plimioll) on the military,
social, political and economic development of Japan under the occupation
and on the prospects for the post occupation period. Stress was laid on the great
contributions these territorial changes will make towards preventing a recurrence
of Japanese aggression, as they will deprive Japan of vital military, naval and air
bases and control of certain essential raw materials
August 28th: The discussion of the disarmament and demilitarization of
Japan was completed. Delegates expressed the view that Japan should remain
completely disarmed and demilitarized, that all armaient manufacture should
he forbidden. and that internal order should be maintained by a non-military
police force.
Conferenct exaimined in detail measures that might be necessary to ensure
that the Japanese should not be permitted at present to conduct research in the
field of atomic energy or to develop or use atomic energy.
Complete prohibition of the building of any kind of naval vessels, as decided
on by the Far Eastern Commission, and the limitations that should be imposed
on the operation of Japanese commercial shipping confined to insular trade were
discussed. Views were also exchanged on the question of the control to be exercised
over the future of civil aviation in Japan. It was felt that manufacture
of aircraft should be completely prohibited in Japan.
Conference has devoted a great deal of time to the subjects of the disarmament
and demilitarization of Japan because of their extreme importance in
securing a stable peace in the Pacific.
Conference considered the principles of the political provisions that should be
incorporated in the Peace Treaty. It paid particular attention to the present
Japanese Constitution which carried out many of the principles which the Allied
Powers would like to see permanently in effect in Japan such as the guarantee of
fundamental human rights.
Among other subjects dealt with was the exclusion from public . office of
persons who had been removed because of their ultra-nationalistic and
militaristic affiliations, and Conference considered ways and means of continuing
to exclude those who remained undesirable.
Other subjects discussed were the Japanese Public Service, education, ultranationalistic
societies, special police and para-military organizations. These
subjects are already dealt with to some extent in the Potsdam Declaration and in
the Basic Policy and other Policy Decisions of the Far Eastern Commission, and
discussion of these subjects was, therefore, facilitated by the consideration
already given to them and by the wide area of agreement that had already been
achieved on these subjects among the eleven members of the Far Eastern
Commission. Conference took note of the steps taken by the Supreme Commander and the
Japanese Government to dissociate Shinto from the Japanese State. It was
evident that the pre-war system of providing State subsidies for Shinto shrines,
clergy, and organizations should not be resumed after the Treaty.
Conference considered matters relating to treaties between Japan and other
nations and the precedents set in the treaties with Italy and the satellite powers
were carefully examined. In this connexion, Conference considered the question
of the admission of Japan to the United Nations and the International Court
and to such bodies as the Food and Agricultural Organization and the International
Labour Office.
It was suggested that Japan should renounce all rights and interests both
public and private located outside Japan and that these would be expropriated
by local administrations.
Conference devoted attention to means by which Japanese who had
co-operated with the occupation authorities would be given full protection against
victimization after the Allied Forces were withdrawn. It seemed obvious that

til1lIegali v: iLti d itv shouild he given to all acts of J appaitie. e n atijonllIs bile inl
' ceerdaitee Nvijt directions or pblicies of tile occupying authorities, and X~ sq
that fill legal validity should be given to acts of the occupying tuthnrities
whether before or after the coining into force of the Pence Treaty. Conference
liscus: ed various sutggestions for giving, effect to this.
Augoust 29: Conference devoted most of its time to at considerationi at
enomic aspects of tlte Peace Settlement. A key piroblin wats that cf . devisiiuu-
-rocurity restrictions whiich wold achieve Allied objectives and( v. tile samle tiuti.
permit, Japan to ~ stiti herself. It was recognized tihat if the nature n'
legree of tite restrict itns itmade at worallbile Japanese ecnomyiiV inmlossi ble, thv
. Al lied powvers would inievitably ho faced with either tile teed tit sllit~ idizc iti:
. JalIMLese2 eCtlony ttr tile develtititeititt o cetiditlizis it llJpalt which wcould be
inimical to the cestablishmient of democracy. It oNn5 iltdoi d in _ l-y felt
. stbject to thle over-riding requirement of security, it w. otild lie iii tlic'ln nt
initerestsi of the Allied poer that the . Iaiaiiesveicoiiii shiitd vtiid oil its
iwol feet.
Confereiice gave : t great deal of attenltiotn tio the Security '' iti i; te~ I' cV.
ttowiinis its deliberations yesterday en disarmament aind deitilitarization. ft
e-meti to be the geiieral viewv that the econitio rstrictioiis itithosed should
hie of a kiiid wvlich would be capable of clear dlefinitin atid ready ltifcreetoeii
andiltitat, they shtould ttot be mliplietiid unniecessairily. It ixssuagested, for
examptle, that tile sort of coittiol-s thlat might, be itriposed wvoutld be, the prollibitiolt
if prodlucti on in , nine in dusvtries of ' tra teeq ic imooie the, I lit itatie~ t 0f
irodlcctitn atid producti-e capac: ity to. definite levelsA in cci tauti other keyindustries;
such u robib it ions anad res tvricticits to lie s itItpie mcii ed bY apprtotrit
ilitprt, cotntrols.
Delegates felt thatt, wi thin the scopje ( i the cetisideratiotis it -txtirllit) treatiY
provisions should be designed1 toit~~ s tiermvl fteC-se dlw tnn
if living and economic instability and that provision s'ioi Id lie made . fat
acee ptane by the Ja patiese Ce verto'wcit of ii i ill it itet IA; t i ( tm I sttaidartds
itt inilustrial Miid commercial conduct.
It wvas also recognized that effective dentcrat& e growth it: itit ttust,, i,
based oit soutid eceotomic conditions and related to chianges iii thle djctribut'mt
a f econiom: ic piowe r. Other wise thetre was a aulger that the~ c iti i oc
ellanges hrotuglit about in Japani wouldi lise thiir sihznifleance and( the formet-'
goveringt arnd montopoelist classes iiiigltt it0-assert the ir author i tY' possl) Ti y il
indirect and concealed Nraysz. In the light of this tapprcoach, Cotiiferenco
exatitined siueh nmatte rs as ti ad tini oils, Itand refoit n andtil lie( issoluotionil of tIno
Zaibatsu the banking and financial comnecs vtriforniet lv , mtrolhl at l~ i cci
hart of Japain's indutstrial powver).
Cotnferene noted the '~ ex in i trail! Itliltb . itl:! thte Sl-i-et' lilt iti d L.
statement of prineipiles w hich was laid dvttlast v ar by tile Far Easterti
Comm0: issioni ( thec niembersltip tiow. being : 5,000,000) and i ' eed to lie gelerall
felt tha t Somei p rovisioits sIhoiuld biIe tuade ini the trl,: tv to, ptt etvet Ile righlt
i. f wet kers' associatioti and to aufford upltrtltnitv the IuII, itti ' Qot;& t
and activity oif trade uniuiii.
Contfecie ioted the stepis taketi -it fat. liy tite Supireime t ttittie I
the im-e Governmttetnt to dissoilve tice Zaitti i 1,( l ii Itli 4,1i tli
tieessitv for con hliriting this task.
It v. s furthter replriesented thtat, toi pr-ex ct tilijustihallc ex ploitat ittn ( ot
l abiour, c czpci all -v chiildi lteour, do mip incg. altit e tf patet., : ir trtide itark.
antd dizcritiiiaticit against foreign firnts and ititetests. . Ializtt should lie
('( tll el led tit c'ompily wvith the Obli1galtion i'if in Ii'ria tic ii 1 ais plerati its, in
tle ectttont ice held whtichi were dccii l tprp ae for CNtxa t phV. sot ie Of
Ptitvelthiultl. f tile Ilitet'l~ iiitii I1ithLtttit Olice
Confetrence turned to tlte questioni of reparatiotis and1( lLii-e the vario-l
cattegrieis that mig ht lie tiadle availabtle ti claimant cotittrii-. tii Pxatttioe, h
the factors involved in the 1 i~ jt of thie Potsdamn dJeclaratimi.
Septtemnber I Coinferettce coitiphleted its dinetiisshutt'u Ott the( ' iuliervisory
Inatiii'ry that shlould lie established in Japain to iimpleent the terots of the
Peace ' Tretaty. Cetiferecite discussed such miatters as the comtposition,. iethct
of Votitig, futnetiotns, power,-atid minc.; is of ienfoirceutent of the -ilperviorv biiidy.
Nii detamileid priposail, were cotis; idereh.

On 2nd September, 1947, Dr. Evatt said
" We can look back on the week's work with great satisfaction.
We have all worked together towards the attainment of our common
aim, the establishment of a just and lasting peace in East Asia and
the Pacific. It has been a great pleasure to preside over the first
conference to include a new India, a new Dominion of Pakistan, and
Burma. These states share the desire of all of us for freedom and
democracy, and in their great tasks they will have the full support of
all other members of the British Commonwealth.
" We came here as separate sovereign states to exchange views in
order to understand more clearly one another's policies, rather than to
commit ourselves to a specific solution to a great problem. But more
important than mere formal agreements is the spirit which animates
us all. We want a settlement that will be the basis for a stable peace
in the Pacific, free from the threat of Japanese aggression. We want
to encourage democracy in Japan. We do not desire to prejudice
future peace by yielding to mere resentment and vindictiveness. The
restrictions we desire to impose on Japan and its economy are those
necessary in. the interest of security. In curbing effectively and permanently
Japanese ability to wage war, we must at the same time leave
her an outlet for peaceful development. But at the same time we have
taken account of the difficulties of the peoples who suffered at Japanese.
hands. The future of Japan is nlot an isohttc. d probem but onev wicli must
be approached in relation to its neighbouring States : nd to the world
as a whole. The solution can lie in a comprehensive international
effort to raise standards of welfare throughout the whole of Southern
and Eastern Asia and the Pacific. Japan must contribute her utmost
towards raising those standards; and if she does so she will share in
the improvement. Australia does not want Japan to become a starvation
area in the Far East, nor does Australia want the Far East to be
a starvation area in the rest of the world. In making the peace settlement,
we should not devote our attention exclusively to the defeated
nation. That is the basis for a realistic and, bholiev-., a statesima. alike
peace. I believe that these views are shared by the United States, whose
vast war effort contributed so much to winning the Pacific war, and
by General MacArthur, under whose leadership the threat of Japanese
invasion was flung back from Australia and the occupation of Japan
successfully undertaken.
The great desire of the peoples of the whole world to-day is peace.
To-day there is neither war nor peace. Our efforts to establish a better
international order, based on the United Nations, will be held back if we
do not speedily make peace and conclude settlements which will form
the basis for world recovery and development. The peoples of the
British Commonwealth . and their Governments here represented are
striving to bring about an early settlement with Japan based on justice
and achieved by democratic methods."

Delegates to the conference were:
AUsTRALLA.-The Minister for External Affairs ( Dr. Evatt), the Minister
for Defence ( Mr. Dedman), and the Minister for Commerce ( Mr. Pollard).
BURMA.-The Minister for External Affairs ( Thakin Lun Baw), and the
Secretary of the Department of External Affairs Shwe Baw).
CANADA.-The Minister for Defence ( Mr. B. Claxton) and the High Commissioner
to Australia ( Mr. K. A. Greene).
INDIA.-Sir B. Ranma Rau and the High Commissioner to Australia ( Sir
: aghunath Paranjpye).
Nmv ZLANTD.-The Prime Minister ( Mr. Fra sr) and tile Hipgh Comnis-
sioner to Aust ( Mr. J. G. Barclay).
PAKISTAN.-Mirza Mohammed Raf.
SoUTH AFRIcA.-The Minister of Justice ( Mr. H. Lawrence).
UNITED KINGDOM.-The Minister for British Commonwealth Relations
( Viscount Addison) and the Minister of State ( Mr. H. McNeill).
SHIPBUILDING.
DE-REQUISITIONING-OPERATION.
On 7th August, 1947, the Prime Minister ( Mr. Chifley) said-
General de-requisitioning of vessels now controlled . by the Commonwealth
Government through . the Australian Shipping Board under
the administrative direction of the Minister for Shipping ( Sennator
Ashley) by power. s conferred upon National Security ( Shipping Coordination)
Regulations will commence on 18th August. 1947. from
which-date also increases in freight rates of Imany cirgi itrmnis
will become operative. With some few exceptions, ships will be derequisitioned
as they conic into position for re-delivery to owners. The
exceptions will, for the present, include some intrastate shipping in
respect to which negotiations are continuing.
After the outbreak of war, a number of Australian passenger and
other vessels were taken by the Government for : the direct use of the
armed services, and the bulk of the remainder of the Australian Mercantile
marine was requisitioned in 1941 under National Security ( Shipping
Control) Regulations. The Shipping Control Board, appointed under
the regulations, succeeded later by the Australian Shipping Board,
was given wide powers to direct the trade in which the requisitioned
vessels would engage, and to govern the rates of freight chargeable.
In 1943, it was decided that close collaboration was essential with
the Commonwealth Prices Commissioner in relation to freight rates
and the shipping regulations were amended. With minor exceptions,
the freight rates prevailing on 12th April, 1943, have remained
unchanged. ". Since 1943 there have been heavy increases in costs under any
headings and the Commonwealth Government, as part of its general
plans for price stabilization, has met the difference between the
revenues received and costs incurred in the chartering and operating of
the requisitioned vessels. A review has been made to ascertain the
extent to which the revenue from freights will require to be increased
to enable shipowners to operate their vessels at a reasonable profit

level on the requisitioned vessels being released from control under
National Security ( Shipping Co-ordina. tion) Regulations-and it is
apparent that substantial freight increases are inevitable.
The Government has decided to permit increases on a. large number
of cargo lines . and to continue for the present a governmental subsidy
on freights in respect to certain other goods. The freight increases,
whether to be met by shippers directly or by the Government as
subsidy, are very considerable. The extent of the increases-about
œ 2,000,000 a year-cannot be stated in the foium of a percentage on the
1939 rates or on the 1943 rates as they cover many different lines and
vary with different trades.
The schedule has been carefully worked out by government officers
and shipowners in collaboration and the Government is satisfied that
the additional rates approved and necessary to enable shipowers to
pay their way and earn a reasonable profit on their coastal shipping
operations. Owners have shown no anxiety to increase freights unnecessarily
but are conscious of the competition, actual . and potential, from
other forms of transport, and of the fact that costs cannot rise steeply
without danger to their industry. Details of the approved increases
and of the cargo items eligible for freight subsidy will be published.
" CSpecific increases which the Government will subsidize for the
present include coal and sugar. Other items eligible, under certain
approved conditions, for Government subsidy are breakfast foods,
dried and processed fruit, invalid and infants' food, milk products, stock
foods, textile and clothing ( excluding floor coverings and furnishings)
and timber. These items are illustrations and the commodities named
are subject to precise definitions.
The Government will not subsidize limestone, barley, produce,
steel products or general cargo not specifically provided for. The
cargo items eligible for subsidy have been selected in relation to the
Government's overall economic policy.
The Government i. s giving no undertaking as to how long it will
continue to contribute to the shipping freight costs of goods now designated
as eligible for subsidy under approved conditions. The Government
will also keep under review the general level of shipping
freight rates with a view to revision if it should become apparent, after
a reasonable period of experience, that this is necessary in the
interests of shippers, shipping operators, or the national economy.
" In common with every other country, Australia suffered from
tonnage shortages during the war -and since. The Australian coastal
fleet has been augmented during the war by Australian-built ships and
by tonnage chartered from Britain and other countries. It is still
necessary to retain on charter a considerable number of British vessels,
mostly engaged in the coal and bulk iron ore trades, and the local
shipbuilding programme is continuing.

16
" Ships under the direction of the Australian Shipping Board
including the requisitioned ship. s, have been operated as if they were
, ne fleet. Traffic committees, on which government officers and represcntatives
of the shipping companies met, considered total shipping
resources in relation to cargo accumulations and the necessity for
according priorities to most needed goods. A principal objective is
to get full loads for ships and the necessity to use vessels to their
utmost capacity naturally makes it extremely difficult to arrange for
regular services and this movement will doubtless continue. Before
deciding to de-requisition, coastal vessels, the Government has sought
iissurances from shipowners that co-ordinated direction of traffic will
continue while the necessity remained. Owners have volunteered full
co-operative and assistance and a committee representative of owners
and of the Comnmonwealt. h Directorate of Shipping will continue the
overall direction of . hip. in relation to the country's needs.
" I pay tribute to the assistance received during the war years, and
later, frcom the British Government. Australia contributed its resource.
without reserve to the common pool and had been supported generously
by the British Governent. Valued assistance at emergency
periods had been given by thre United States War Shipping Administration.
T can speak highly of the expert and willing assistance given
to the Commonwealth Government by the Australian shipping cormpanies."
( For earlier references, please see No. 126, page 41; No. 128, page
PRICES.
GOODS DECLARED "-SCHOOL FEES, REVOCATION.
On 7th August, 1947, the Minister for Customs ( Senator Courtice)
announced that fees charged by religious, scientific, charitable or educational
institutions had been removed from National Security ( Prices)
Regulations. GOODS " DECLARED"--TAXI FARES, REVOCATION.
On 7th August, 1947, Senator Courtice announced that fares
charged for buses, taxis and hire cars operating within a State had
been released from National Security ( Prices) Regulations.
ORDER OF PRECEDENCE.
NEW TABLE ANNOUNCED.
On 7th August, 1947, the Governor-General announced that the
King had approved of the following Commonwealth Order of
Precedence:-1. The Governor-Genirall ( iniieldes ollicer actually administering the Governimieiit
of the Comnniniwealti).
2. Governors of States ( or Lieutenant-Governors of States when administerin=
the Government), according to the population of their respective States; the
Governor of a State to have, within its territory, precedence next to the Governor-
General. ( A Lieutenant-Governor, who is not also Chief Justice, shall, when not
administering the Government, rank with the Chief Justices of the States.)

3. The Prime Minister ( or Acting Prime Minister).
4. Foreign Ambassadors.
Foreign Ministers and Envoys.
Federal Executive Councillors under summons to the Council.( a)
6. The President of the Senate.
7. The Speaker of the House of Representatives.
8. High Commissioners in Australia for His Majesty's Governments elsewhere.
( NoTE--Precedence ilnter sc of such High Commissioners shall United
Kingdom, Canada. New Zealand. South Africa, India, ( 6)
Eire). 9. Privv Councillors.
Chief Justice of the High Court.
11. Judges of the High Court of Australia, according to seniority.
12. Senior Officers in command of the Naval, Military and Air Forces of the
Commonwealth, according to seniority in their respective Services.
13. Premiers of States, according to the population of their States.
14. Chief Judge of the Commonwealth Arbitration Court.
Other Federal Judges according to the date of appointment.
16. Chief Justices of States, according to the population of their respective
tates. 17. Members of the Senate.
18. Members of the House of Representatives.
19. Heads of Churches.
Executive Councillors of States under summons, according to population
o, States. Those of each State in a body, according to the population of their
States. 21. Presidents of Legislative Councils of States, according to population.
22. Speakers of Legislative Assemblies of States, according to population.
23. Members of Federal Executive Council ( not under summons).
24. Consuls-General.
Knights of the various Orders and Knights Bachelor according to their
precedence in the United Kingdom.
26. Executive Councillors of States not under summons, ex-Ministers of
States, and gentleman authorized to retain the prefix Honorable
27. Judges of the Supreme Courts of States, according to the date of appointment.
28. Members of the Legislative Councils of States, according to the population
of their States.
Members of the Legislative Assemblies of States, according to the popul:
ition of their States
Mayors of Capital Cities, according to the population of their States.
31. The wives of the foregoing to enjoy the precedence of their husbands.
32. In the absence of any special instruction from the King, the precedence
oi persons entitled to precedence in the United Kingdom or other parts of the
Empire, or in foreign countries, in relation to the abovementioned Officers to be
determined as a matter of courtesy by the Governor-General.
N. B.--The observance of the list at Commonwealth functions in any State
should, as regards the precedence inter sc of the Officials of that State, be subject
to any modifications rendered necessary by existing laws in that State.
the summon; s wecalthse suinious issued by the Governor-General or by the
Secretary of tlh Execiltiv Councill frolllti mn to time to attend meetings of the
Executive Council. It doe'sn ot mnain thl aippoitintment of the officeof Member of the
Executive Council. ( For earlier references, please see No. 105, page
NETHERLANDS EAST INDIES.
POLICY-MEDIATION.
On 7th August, 1947, the Prime Minister ( Mr. Chifley) saidrefer
to reports of an American offer to mediate in the Dutch-
Indonesian dispute.
The decision of the -Security Council was that the two parties
should cease hostilities and then submit to arbitration or other peaceful
means of settling the dispute. When that decision was taken by the

Security Council, it was interpreted by the Australian Government as
meaning that the two parties would submit their case to an arbitrator
who would give a decision which would be binding on the two parties,
the arbitrator acting as an agent for the Security Council. Consequently,
any offer merely of good offices does not adequately meet the
situation. Reports are current that Republican authorities do not find mediation
acceptable, nor do they find the good offices of only one country
acceptable. While it is understood that the Netherlands Government
had accepted the American offer, it must be accepted by both parties
before negotiations can commence. It might be recalled that previously
the Indonesians accepted the good offices of Britain, the United States,
and Australia, which were put forward separately, but thise, at that
time, were not acceptable to the Netherlands authorities.
The present situation is full of dangers as, while there i. a truce,
there is no negotiation or contact between the two parties, and incidents
are likely to occur each day which might make negotiatin. more difficult.
The period between the cessation of hostilities and the cnommnencement
of negotiations should be as short as possible.
" If both parties consider it would help to terminate this interim
period and to commence negotiations immediately, the Australian
Government, for its part, will be prepared to act jointly with -the
United States Government in a capacity of mediator and arbitrator.
This offer is made in the spirit in which the Australian Government
raised the matter in the Security Council-that is in a spirit of impartially
and with only one desire, to see, as soon as possible, a peaceful
settlement of the prolonged dispute in the Netherlands East Indies
( For earlier references, please see No. 128, page 32.)
CIVIL AVIATION.
I. C. A. O.-REGULATIONS.
On 8th August, 1947, the Minister fbr Civil Aviation ( Mr. Drakeford)
announced that Australian air navigation regulations had been
revised to bring them into line with the Chicago Convention, and to
give effect to reconmmendations and decisions of the International Civil
Aviation Organization created under that convention. The new regulations
came into force on 10th August, 1947.
SOUTH PACIFIC AIR TRANSPORT COUNCIL-SECOND
MEETING.
On 14th August, 1947, Mr. Drakeford said that the second meeting
of the South Pacific Air Transport Council, which had concluded that
day, had had as its chief task the policy for the conduct of British
Commonwealth Air Services in the Pacific area and consideration of
the reports of British Commonwealth Pacific Airlines and Tasman
Empire Airways Ltd. The Council had agreed to the composition and

functions of the Trans-Pacific Committee and the Trans-Tasman Cormittee
and had drawn up directives which would govern Tasman Empire
Airways and British Commonwealth Pacific Airways in the
operation of their services. It was agreed that the companies should
be left the greatest initiative in the day-to-day management of their
affairs in line with the Government's over-riding interest in matters of
major policy and finance.
The meeting agreed that British Commonwealth Pacific Airlines
Ltd. would begin its operations of the Trans-Pacific service early in
1948 with the Skymaster aircraft already being operated on its ' behalf
by Australian National Airways over the route. Arrangements were
being made for orders to be placed for four Solent flying boats for
Tasman Empire Airways.
Council reviewed the fare on the air service between New Zealandand
Australia and agreed that certain reductions should be made.
Council received a report from the Australian delegation regarding
the operation of regional services from Australia in the area to Fiji
and West 1700 E. Regional services operated by New Zealand were
still in the hands of the Royal New Zealand Air Force ' but it was
expected that by 1st October, 1947, those services would be taken over
by New Zealand National Airways Corporation.
The rival claims of Nadi and Nausori as Fiji's international airport
had proved a problem. A commission of the interested governments
had been appointed to investigate the matter in Fiji in February,
1948.
( For earlier references, please see No. 117, page 3; No. 122, page
INTERNAL ROUTES-INTRA-STATE SERVICES, PREMIERS
DISCUSS.
On 21st August, 1947, the conference of Commonwealth and State
Ministers considered a submission by the Minister for Civil Aviation
( Mr. Drakeford) requesting the State to consider afresh the question
of expressly authorizing the Commonwealth instrumentality to engage
in intra-state aviation on a permanent basis and asked those States
that were unwilling to transfer full powers to authorize Commonwealth
airlines to operate intra-state services under the same conditions
as private operators. The Premiers explained the position in
their respective States, but no agreement was reached on the proposal.
REVIEW OF OPERATIONS, 1946-47.
On 28th August, 1947, Mr. Drakeford said that in 1946-47 Australian
airlines did record business.
Passengers increased by almost 70 per cent. on 1945-46, while
freight carried increased by 145 per cent. On internal air transport
services 860,111 passengers were carried, nearly nine times the 1938-39
total of 99,511. Total weight of freight carried was 12,247 tons, comnared
with 693 tons in 1938-39.

BRITISII1-AUSTRALIA SERVICE---QANTAS, AGREEMENT.
DIRECTORS.
On 5th September, 1947, Mr. Drakeford announced that Messrs.
A. R. McComb and D. MceVey had been appointed members of the
board of directors of Qantas Empire Airways Ltd.
( For earlier references, please see No. 128, page 26.)
WAR CASUALTIES.
ROYAL AUSTRALIAN AIR FORCE.
On 11th August, 1947, the Minister for Air ( Mr. Drakeford) said
that the latest Royal Australian Air Force casualty list, containing the
. names of seven personnel formerly reported missing and now presumed
dead, would be one of the last of its kind. Only sixteen more cases of
missing remained to be cleared up.
PRIMARY INDUSTRIES.
DAIRY INDUSTRY-MILK, STATES CONTROL.
On 12th August, the Prime Minister ( Mr. Chifley) said-
" I have communicated with the State Premiers asking them t,
resume control of mnilk prices from 1st October, 1947.
" In October, 1945, the Commonwealth provided producers with ; i
guarantee of subsidy and prices. This afforded a stability to producers'
returns during a difficult transitional period in. the industry
and prevented increases in retail prices. In addition, special paymentls
hlave been made to producers who experienced adverse seasonal conditions
at various times. The total cost of maintaining stable retail prices
in the last two years approximated œ 4,500,000.
The sudden reineval of a subsidy of this niagnititlde ight cause al
appreciable increase in the price of milk, which would be undesirabl
not only because of the effect on the cost of living but also because it
might reduce consumption of ai highly nutritional food. The Government
has decided to continue a modified subsidy scheme to be operated
by the States. The amount of subsidy available will be calculated at
-4d. a gallon on milk consumed in metropolitan arias during the six offseason
months of the year, and in country areas now receiving subsidy
at two-thirds of present rates ( excluding drought relief). Present
subsidy rate; vary considerably according to State locality and period
of the year, but the new scheme represents overall a subsidy of about
two-thirds of the old scale.
" The States will not be required to distribute the subsidy on any
particular basis but can choose their own methods. The -only conditions
are that the subsidy will be used for the benefit of consumers
of whole milk and that a satisfactory control of prices operate in area'
receiving the benefit of subsidy. The arrangement will operate for
twelve months.

in all State.-, except Tasmania. milk buards have been established
with authority to control the supply, distribution and price of milk
in metropolitan areas. The action now taken will restore to those
authorities their previous powers, and give the States an appreciable
subsidy to cushion the effect of any price rises that may be necessary
; s a result of the transition from Commonwealth to State control. As
the amount of subsidy will be less than formerly, some price increases
nay be necessary but the extent and duration of any price increases
will depend on the method by which the subsidy is used by the States.
The change-over has been timed to coincide with the ' flush' season
in most States. v. hen siubs-idy payments are usually at the lowest
levels." ( For earlier references, please see No. 111, page 8; No. 123, page 4.)
DAIRY INDUSTRY-CREAM CONTROL, RE-IMPOSITION.
On 14th August, 1947, the Minister for Agriculture ( Mr. Pollard)
announced that a new Cream ( Disposal and UTTe) Order vould operate
o( n 1st September, 1947.
Under the new order, cream might be used only for the manufacture
of butter and cheese at a registered or licensed dairy factory, at the
farm where the cream was produced or under the authority of and in
accordance with the terms and conditions of a permit. The use of
cream for pastry cook and similar purposes would cease. Hospitals
and like institutions and manufacturers of ice-cream should apply for
a permit to obtain cream. Issue of permits to sick persons would be
confined to persons suffering from duodenal or peptic ulcer, ulcerative
colitis, or typhoid fever or other prolonged fevers, or active pulmonary
tuberculosis. The Commonwealth Government had in mind an extra 3,000 to
5,000 tons of butter for shipment to Britain and a quick survey of the
quantities of cream being sold for use as such indicated that that
quantity would be available if the public co-operated and did not seek
ways and means of circumventing the restriction on the disposal and
use of cream. ( For earlier references, please see No. 120, page
POULTRY INDUSTRY-EGG CONTROL.
On 15th August, 1947, Mr. Chifley said-
" Extension of the period of Commonwealth control over eggs
to 31st December, 1947, was approved in May, 1947, to facilitate the
formation of an Australian-wide Egg Marketing Organization.
" The Minister for Agriculture ( Mr. Pollard) reported to Cabinet
to-day on recent discussions of the Australian Agricultural Council.
Cabinet approved the distribution of surplus funds resulting from the
operations of the Commonwealth Egg Control scheme up to 30th June,
1947, to the States, in the ratio in which egg producers in the various
States have contributed them, for the purpose of investment in the
proposed Aus. tralian Egg Equalization Committee Ltd. to provide the

margin of security necessary to finance the scheme; in the event of no
Australian-wide company being formed the distribution of these funds
to be further considered; and providing the respective State Egg
Marketing Board with some working capital and subject to a careful
review of the financial position the sum of œ 100,000 is named for this
purpose. Cabinet also approved the transfer of any profit made by the
Controller of Egg Supplies during the period 1st July-31st December,
1947, to such authority ( Australian Egg Equalization Committee Ltd.)
or authorities ( State Egg Boards) which have the responsibility for
the marketing of Australian egg production subject to such funds being
utilized for the maintenance of egg prices between January and June,
1948. If the transfer is to be made to State Egg Boards the funds are
to be allocated on the basis of production for the period 1st July-31st
December, 1947.
Cabinet also approved of the preparation of a bill to be submitted
to the Federal Parliamentary Labour Party to establish an Australian
Egg Board with powers to control exports, to buy and sell eggs and
to ensure that the long term contract with the British Government is
observed." ( For earlier references, please see No. 116, page 6.)
POWER ALCOHOL DISTILLERIES.
On 16th August, 1947, Mr. Chifley said-
Cabinet to-day considered a report by the Cabinet sub-committee
on secondary industries on negotiations between the Commonwealth
Government and the Colonial Sugar Refining Co. Ltd. concerning
grain alcohol distilleries.
Cabinet approved of an agreement with the Colonial Sugar
Refining Co. Ltd. for the purchase of certain plant at Cowra, New
South Wales, and Warracknabeal, Victoria.
" Cabinet authorized the Secondary Industries Commission to
arrange for the utilization by industry of land, buildings and remaining
plant and equipment at the Cowra; Warracknabeal; Wallaroo, South
Australia; and Collie, Western Australia, distilleries through the Commonwealth
Disposals Commission, the Contract Board and the
Department of the Interior.
EXPORTS TO BRITAIN-POULTRY.
On 19th August, 1947, Mr. Pollard said-
Australia will export œ A. 1,000,000' s worth of frozen poultry to
Britain in 1947. In the first seven months of 1947 the entire 1946
figure has been more than doubled, with 1,455 tons of -boiler fowls,
587 tons of chickens, 446 tons of turkeys, 104 tons of ducks, totalling
2,592 tons valued at œ A. 673,305. Allowing for the seasonal drop in
the next three months, the estimate for the twelve months is 4,000
tons."

CANNED FRUITS.
On 25th August, 1947, Mr. Pollard said-
" About 1,000,000 cases of canned fruits have been shipped by the
Australian Canned Fruits Board to Britain from the 1946-47 pack,
leaving 500,000 cases yet to be shipped. Australia had set aside the
maximum quota of canned fruits for Britain during the current year.
From the 1945-46 pack, shipments to the Ministry of Food were 977,300
cases." GIFTS.
On 26th August, 1947, the Postmaster-General ( Senator Cameron)
said that food parcels which proved to be undeliverable in Britain were
shipped back to Australia and returned to the senders. It had been
agreed with the British Post Office that, in regard to future postings
of gift parcels containing only foodstuffs or soap, those which proved
to be undelivera'ble would be treated as abandoned parcels and the
contents distributed to the best advantage.
TALLOW.
On 29th August, 1947, Mr. Pollard said-
Approval has been given for the export to Britain of 250 tons of
edible beef tallow and 250 tons of edible mutton tallow. This is in
addition to shipments of oleo sterine, an edible fat, obtained in the
manufacture of industrial margarine, which has been exported freely
to Britain." RABBIT SKINS.
On 22nd August, 1947, Mr. Pollard said that rabbit skin exports
in 1946-47 were approximately three times greater in weight and
fourteen times greater in value than in 1938-39. Exports of rabbit
careases in 1947 would exceed pre-war figures.
CANNED MEAT.
On 25th August, 1947, Mr. Pollard said that nearly 40,000 tons of
canned meat would be exported during 1947. The total included 25,000
tons under contract to the British Ministry of Food, 1,500 tons supplied
to the Red Cross and other relief organizations, 1,300 tons likely to be
required for iil. rnuational relief, and 1,059 tons required for service use.
leaving an estimated 11,000 tons for private export. The figures did
not include canned meat sent in gift parcels to Britain, estimated at
1,000 tons. The overall ceiling permitted by the Rationing Commission
for canned meat production for 1947 was about 48,000 tons. The
quantity left for local trade would be about 10,000 tons. Pre-war
production of canned meat in Australia had never reached a third of
the 1947 estimated total.

24
SUGAR AGREEMENT, REVISION.
On 4th September, 1947, Mr. Chifley said-
The Commonwealth Government has agreed in principle to the
request recently made by the sugar industry for a variation in the
Sugar Agreement to enable the wholesale price of sugar to be increased
by œ 4 2s. 8d. a ton ( id. per lb. retail).
" I have consulted with the Premier of Queensland ( Mr. Hanlon)
regarding the matter and we agreed to recommend to the respective
Parliamentary Labour Parties that legislation be introduced for this
purpose. " The retail price of sugar in Australia has existed at 4d. a 1b.
, apital cities since 1933, despite greatly increased costs of production
in recent years. The increase in price will enable these increased costs
to be met and will assist in rehabilitating the industry whose pro-
, luction has fallen to low levels and whose capital equipment has greatly
depreciated during the war.
The increase in the wholesale price of sugar will allow retailers
in additional 10s. 8d. a ton and wholesalers an additional Is. Sd. a ton
profit. The increase in price will not take place until the Sugar Agreement
has been signed between the two Governments and the Commonwealth
Parliament has passed an amending Sugar Agreement Act.
" The temporary shipping freight subsidy on sugar will be with-
Irawn when the increased price come into operation.
There are other aspects concerning which I will have to consult
with Mr. Hanlon before the revised agreement is finalized."
( For earlier references, please see No. 112, page
HOUSING.
COMMONWEALTH-STATES AGREEMENT-COSTS AND
STANDARDS.
On 13th August, 1947, the Minister for Housing ( Mr. Lommon)
released details of the report on State housing authority standards and
methods prepared by the Deputy Director of Housing ( Mr. L. P. D.
O'Connor), who undertook the investigation as a result of a decision by
the Premiers Conference that an official should confer with each State
to ascertain whether helpful suggestions of mutual benefit could be
made to reduce costs of dwellings erected under the Commonwealth-
States Housing Agreement. Mr. O'Connor had found that the main
reasons for the present increased costs of Government sponsored housing
iver pre-war were-
Shortages of building materials, increased labour, increased costs of material!.
reduced productivity of labour, time taken to complete dwellings, greater overhead,
larger profits and lack of competition among contractor-s.

Mr. O'Connor suggested a number of economies in the construction
practices of the States, the chief being-
Reduction ini number of plan types, use of brick-on-edge for the inner leai
' o external walls and for internal partitions, construction of brick veneer
dwellings, . reduction in size of timber structural meimbcrs and elimination ( r
front fences and side fences to building line.
Dealing with disparities between the States in building costs of
government-sponsored housing, Mr. O'Connor found that costs per
square for an 1,100 square feet single-brick dwelling given for June.
1947, by State housing authorities were-
Sydney, œ 140; Melbourne, œ 132; Brisbane, œ 131; Adelaide. œ 110; Perth.
Hobart, œ 112 ( timber-no brick dwellings being erected).
The value of suggested economies according to States ranged downwards
from œ 157 in regard to brick dwellings and from œ 112 downwards
in regard to timber. Economies suggested by the Commonwealth to
the States, if applied to the programme under the Commonwealth-
States Housing Agreement for 1947-48 would, it was estimated, represent
a saving of œ 1,400,000. The report stressed the need for constructing
houses in large estates and letting contracts where possiblb
for 500 houses at a time.
( For earlier references, please see No. 118, page 36; No. 122, page 28.)
COMMONWEALTH-STATES AGREEMENT-COSTS AND
STANDARDS, PREMIERS CONFERENCE DECISION.
On 21st August, 1947, the conference of Commonwealth and State
Ministers decided-
That conference notes that clause 4 of the Commonwealth and
* States Housing Agreement 1945 has been implemented by the adoption
of the standards agreed on at the February, 1947 conference of Comrmonwealth
and State officers.
Conference notes receipt of report on economies by Mr. L. P. D.
O'Connor and desires the matter reviewed in detail at the annual conference
of housing officers in January, 1948. Meantime, all States
undertake to carry out to the fullest extent practicable, the economies
uggested in that report." RECONSTRUCTION.
TRADE AND EMPLOYMENT-PREPARATORY
CONFERENCE, AUSTRALIAN DELEGATION.
On 13th August, 1947, the Prime Minister ( Mr. Chifley) said-
My attention has been drawn to a number of sta. tenents on whar
the Australian Government has decided or may be expected to decide
in the course of its consideration of the trade negotiations now proceding
at Geneva. The position in regard to these negotiations is quite
fluid. They have not yet reached the stage where it is practicable
to assess the balance of possible trade benefits and concessions.

The Cabinet sub-committee is keeping in constant touch with the
progress of the negotiations but in the circumstances has not yet formed
even a tentative view as to possible recommendations to the Government.
With regard to the negotiations with the United States, the Australian
delegation, ha. s, in view of the offer of a reduction in the wool
duty, been authorized to re-open negotiations. The Australian delegation
has also been asked to furnish further information regarding
the offers and responses on a number of other comnmodities. This has
not yet been received.
In the circinistuanes. any statements regarding the attitude of
the Government in respect of tariff offers and responses should be
treated with lcnrion. When possible the Government will make an
official annomi-o cement in the -matter."
( For earlier references, please see No. 124, page 5; No. 125, page 9; No. 126,
page 20; No. 127, page 3.)
GOVERNMENT'S PLANS-REGIONAL DEVELOPMENT,
SNOWY RIVER REPORT.
On 15th August, 1947, the Minister for Works ( Mr. Lemmon)
released a report on the diversion of Snowy River. Mr. Lemmon
said-Shortages of power exist in New South Wales and Victoria, and
there is a need to provide for the rapidly increasing demand brought
about by continuous industrial development. It could be met by exploiting
the full potentialities of the . Snowy River and the costless reservoir
, f snow which forms its source. If developed to its maximum, power
for Victorian and New South Wales requirements can be ensured for
many years to come, as well as furnishing water for an extension to
r-xisting irrigation systems. Diversion of black coal to other States for
general industrial purposes would then be possible.
Fu! l power development is possible only if the Snowy River is
diverted initially to the head waters of the Murray River, but the
report points out. that it would be possible, if considered -advisable, to
divert the water again from the lower Murray to the Murrumbidgee
Valley for irrigation purposes.
If this unique natural asset is developed to its fullest advantage,
300,000 acres of intensely irrigated land can be served from the Snowy
River, from which a gross annual return in the value of foodstuffs of
at least œ 10,000,000 a year could be expected and, in addition, ultimately
750.000 horse-power produced. If, on the other hand, the
waters be diverted direct to the Murrumbidgee River the same amount
of irrigation can be undertaken, but the power developed would be
at least 500,000 horse-power less. To make up this power about
1,300,000 tons of additional coal will have to be mined annually.
" From a commercial viewpoint the scheme would show profits of
8 per cent. after providing for working expenses and depreciation.
Thiø would he the expected dividend return if the scheme were to be

operated for profit, and would be a far higher yield than that shown
by similar schemes run by utility companies here and overseas.
" The estimated cost of the Murray River diversion scheme, which
includes a series of dams on the various tributary streams and on the
Snowy and Murrumbidgee Rivers, with a tunnel 30 miles long under
the Australian Alps to connect the Snowy with the Murray, and the
electricity generating stations and power lines to Melbourne and Sydney
with all equipment, may ultimately reach œ 65,000,000.
On 20th August, 1947, the conference of Commonwealth and State
Ministers decided-
That a committee be constituted, consisting of two representatives
from the Commonwealth and two each from the . States of New South
Wales and Victoria, with power to co-opt such other assistance as
may be needed from the three authorities, with a view to aaking a
complete detailed investigation, the committee to report to a Premiers
Conference as early as possible, but not later than twelve months hence."
" I hope that the States will, at least, agree to proceed inumediately
with the detailed investigation recommended. I feel that the report is
so conclusive that it may well be accepted as proving the general
feasibility and economy of the scheme, and that action may proceed
immediately towards the diversion of the Snowy River to the Murray
Valley, exploiting the waters to their maximum power capacity, without
affecting the possibility of using them either in the Murray or Murrumhidgee
Valleys to their fullest irrigation value."
( For earlier references, please see No. 102, page 15; No. 106, page 33; No. 115,
page 21.)
NEW GUINEA.
WORKS MINISTER'S VISIT.
On 14th August, 1947, the Minister for Work.-: anl Illon-ing ( Mr.
Lemmon) announced that he would visit New Guine and Papua from
28th August, 1947, to 9th September, 1947, acconmpanied by the
Director-General of Works ( Mr. L. F. Loder). . lis ldepartment was
preparing a major works programme in the territories. Many larg.
works carried out by Allied forces during the war had been designed
to last only a few years. The Commonwealth Governmiint desired to
maintain a number of installations as future assets, having in mind
defence requirements and the development of the territories.
BRITAIN.
FINANCIAL POLICY-DOLLAR IMPORTS.
On 15th August, 1947, the Prime Minister ( Mr. Clifley) said-
A close watch is being kept by the Australian Government on all
dollar imports, both United States and Canadian. The subject of
sterling balances at London is being kept continuously under review.
The problems facing Britain have been constantly discussed by
the British Chancellor of the Exchequer ( Dr. Dalton) and myself and
by Dr. Dalton and the other Dominion Treasurers for over twelve
months."

FINANCIAL POLICY-CABINET DEC1. SONS.
On 15th August, 1947, Mr. Chifley said--
Cabinet to-night surveyed the economic position as it affects the:
United Kingdom and the position regarding dollar imports by Australia
and Australia's sterling balances at London.
Cabinet decided that there should be a severe rationing of thl:
use of dollars for travel purposes and directed that a review be. made
of dollar expenditure on tobacco, motion pictures, and all imports of
a less essential character and a re-examination of the newsprint
importations. Cabinet also decided that there should be an overall reduction
in petrol consumption to save 4,250,000 gallons a month. The reduction
will be applied to private users to effect a 20 per cent. to 25 per
r. ent. reduction in their ration, a reduction of 20 per cent. to 25 per
i: ent. in the ration of private business users, a 20 per cent. to 25 per
t: cnt. reduction in the ration for pleasure boats and a 10 per cent.
reduction in the ration for commercial users."
On 22nd August, 1947, Mr. Chifley said-
Instructions have been issued to the Commonwealth Bank t,
impose severe restrictions on dollars advanced to all travellers.
The film industry has been asked to meet the Commonwealth
( overnment on 26th August, 1947.
I have been in communication with the newsprint pool authoritie
and on 25th August, 1947, I will have a full review of newsprint
imports fron the Customs Department.
" The Customs Department will present a full review of all dollar
imports to Australia, including tobacco.
" There is no need for the British Government to make any specific
requests for restrictions on dollar imports because the Australian
Government has always kept a reasonable check on the use of dollars.
This check will now be very severe."
On 2nd September, 1947, Mr. Chifley said-
Following consideration -of the latest develupments in the dollar
crisis, Cabinet to-day decided on the following measures to reduce
Australia's dollar expenditure.
Motor Cha'sis.-A cut of the order of 20 per cent. is to be made
in the number of chassis approved for importation during 194S as
:' gainst the number approved for importation during 1947. The whole
of this cut will be applied in the field of passenger car chassis and no
reduction will be made in the chassis quotas for commercial vehicles.
The detailed application of the cut to the various types of passenger
car chassis is to be examined by an Inter'-departmental Committee on
which the trade will be represented. The most severe restrictions will be
imposed on chassis for cars in the higher price ranges with possible totnl
exclusion of certain makes.
Tobacco.-Import licences for American tobacco leaf are to Ix
rut by 20 per cent. It is hoped that the reduction in releases of manufactured
tobhcco and cigarettes will be limited to about 10 per cent.

Petrol.-Cuts were announced following the meeting of Cabinet on
August, 1947, which were designed to achieve a saving of 10 to
12 per cent. in current consumption. No further cuts are contemplated
for the time being.
Newsprint.-A reduction of the order of 30 per cent. is to he mad',
in newsprint import programmes.
Textiles.-Except for a few lines which are still in acute short
supply, the issue of licences for the importation of textiles from dollar
sources was temporarily suspended at the end of May, 1947. Cabinet
decided that this policy should be continued for the time being pending
complction of a comprehensive review of the supply position by the
Rationing Commission.
Aircraft.-Apart from aircraft already on order, no further purrbases
of aircraft involving dollar expenditure will be authorized.
Expenditure of dollars on spare parts for aircraft will also le closely
supervised. Capital E'qipul i Me tad Ja-M. Ule-rials.-Machinery and other
items of capital equipment are regarded as being in the highest category
of priority and dollars will be made available to meet the essential
requirements of Australian industry. In view of the present dollar
crisis,: however, manufacturers will be expected to co-operate by
exploring fully the possibilities of obtaining machinery from other
-ources before they seek to import machinery involving dollar expenditure.
The present method of dealing with applications for licences
to import goods of this class is to be reviewed by an Inter-departmental
(' onimittee. The committee will also examine the principles to be
: dopted in dealing witl applications for licences to import raw materials
from dollar sources of supply.
Miscellhrncon Imports.-Aplart from the major items, Cabinet
endorsed recommniendations by the Minister for Customs ( Senator
( onrtice) for restrictions on a wide range of miscellaneous imports
from the dollar area in accordance with the general objective of reducing
. dollar expenditure on imports to the essential minimum.
Film Re. utlti:' s.-Consideration is being given to the bemt mean.
of reducing rlh dollar expenditure involved in remittances of film
royalties to the extent of about 30 per cent.
Travel EX: penditure.-Drastic restrictions wvill be imposed on the
ount of dollars made available for personal travel and the allowance
for businessmen will also be substantially reduced. As a corollary
. further restrictions will be imposed on travellers taking out jewellery
n. d other valuables as part of their personal effects.
Remittances by Visiting Entertainers, Artists. cond the like.-Up
to the present visiting entertainers and artists have been allowed to
remit their net earnings in Australia without restriction. It is no
longer possible to continue this policy and the Exchange Control
iauthorities have been instructed to take steps to limit severely the
. amount of. such remittances where dollars are involved."

On 4th September, 1947, the Minister for Customs ( Senator
Courtice) announced the imposition of further restrictions on imports
of goods from dollar areas. In future, licences would not be granted
to import the following goods from countries in the dollar aarea:-
Axes, dictating machines, human hair clipping machines, electric household
ironing machines, clothes washing machines, computor mechanisms for use in
the manufacture of petrol pumps, electric stoves, oil or spirit heating and
pressure lamps, piece goods for dress or furnishing purposes, corsets, crown
seals, preparations for use in the manufacture of cordials, wooden blind rollers,
preparations for use in the manufacture of cosmetics, building boards, golf
club shafts, ice hockey-skates, lacrosse racquets, paper of the following types:-
carbon, cartridge, cellophane for wrapping tobacco manufactures, copying. cover
indp ressings, duplicating, gummed sheets and rolls, marble and foil, vegetable
parchment, roofing and sheathing, surface coated and box makcrs, fruit wrapping,
paper hangings and wall paper, paper for use in the manufacture of toilet
paper, carton and container boards, cigarette papers, fashion plates and books,
paper patterns except master patterns, fountain pens, rime rcnorders, rubber
gloves, rubber tyres and tubes, musical instruments and acces: orie. s fluorescent
lamp materials for use in advertising signs. plastic pliable sheeting, pliofilm,
home kinematographs, spectacles and spectacle frames, french chalks ; ind other
preparations of steatite.
In addition, imports of the following conmmodities ,. vould bhe amdmitted
in reduced quantities:-
Canned fish; radio receiving valves; recording instruments, pyrolneters and
thermometers; chicle; proprietary medicines and raw materials for the manufacture
of drugs and chemicals; miscellaneous manufactures of metal; hickory
axe and tool handles; rubber thread for the manufacture of golf balls; books of
all kinds; tissue paper for paper patterns: writing and printing paper;
artificial teeth; cameras; cartridges; photo flash lamps; unrefined fish oils.
The review of goods imported from dollar areas ww as b( in conltillued
and it might be necessary to impose restrictions on Iheim portation of
other commodities in the near future.
In regard to textiles, the present licensing treatment would 1b continued
and only imports of essential utility types of cotton piece goods
would be permitted. It had been decided to undertake a review of all
outstanding licences issued before 27th May, 1947, for the importation
of textiles from the United States, Canada and other dollar areas.
In addition, outstanding licences for imports from dollar : trceas of.
musical instruments and accessories, cigarette paprs indl elwtrii humnan
hair clipping machines must be submitted for review.
FINANCIAL POLICY-SALE OF GOLD.
On 5th September, 1947. Mr. Chifley said-
Australia has sold 150,000 ounces of gold to the United Kingdom.
" I recall that during the depression Australia had to part with
practically the whole of her gold reserves to enable her to meet her
overseas obligations. During recent years the Commonwealth Bank
commenced rebuilding a gold reserve by purchasing and holding current
production. The Government and the Commonwealth Bank would have liked
to continue the policy of gradually rebuilding Australia's gold reserve

but the current dollar situation is so serious that it has been decided for
the time being to sell current gold production to the United Kingdom as
a special measure of assistance in her present difficulties
( For earlier references, please see No. 123, page 19; No. 126, page 31;
No. 128, page 34.)
FINANCIAL POLICY-PRIME MINISTER'S SPEECH.
On 20th August, 1947, Mr. Chifley said*-
We are living in a world that is in economic difficulties. I have
been very anxious about the general world economic position for some
years but the cituation lins deteriorated more rapidly than was expected.
I told you yesterday in some detail about the economic position of the
United Kingdom. We must not attempt to delude ourselves that, if
economic difficulties occur in Britain and perhaps eventually in the
United States, Australia will not be affected. That would be a sheer
and complete delusion. The position overseas to-day is that the United
States has been exporting, in terms of values, a vastly greater quantity
of goods than it has been importing. Britain made the Anglo-American
Loan Agreement, which bound it particularly in regard to the convertibility
of sterling balances, in the hope that the American loan money
would carry it on until 1950, by which time there would have been a
large measure of rehabilitation in Europe and the British export trade
would have been built up in hard currency countries as well as in
sterling countries.
A numiber of things have happened. First-a thing which I have
always feared-in a world of rising prices in which people believe that
some degree of inflation is desirable, the money that Britain borrowed
from the United States is not able to bring in the quantity of goods that
Britain expected. I think the British Prime Minister ( Mr. Attlee) said
that instead of getting 100 per cent. volume his country has been
receiving only 60 per cent. Associated with that fall in estimated
production have been certain internal factors in the shape of unforseeable
difficulties due to flood and cold.
The rehabilitation of Europe has not progressed as the world
hoped. In Europe to-day there is utter misery which must be unparalleled
in the history of the world. At present the most strenuous efforts
are being made to find some solution of this grave problem. It is
becoming more and more apparent that we cannot have a prosperous
Europe without a prosperous Germany, whatever our feelings in regard
to Germany might be. One result of this disastrous situation is that
the export market in Europe has not been restored because the countries
of Europe have not the money with which to pay for exports. The
dollar position has become more acute every day, particularly during
the last few weeks-indeed, during the last few days. One of the main
causes of this rapid deterioration in the situation is the problem of the
At n cllnfrociic of Comnnmonwenlth und State Ministers.

convertibility of sterling, but there arc other factors with which I
do not propose to deal now. Because of the difficulty of converting
sterling currency some of the South American countries and certain
Scandinavian countries are experiencing grave difficulties.
The position of Britain, and to a lesser degree, the position of
Canada, in regard to the dollar position has also deteriorated very
considerably. I mention these matters to give you some idea of the
present world situation, and without violating any confidences repos.:: i
in me. Another factor to be considered is the large balances held in
Britain by a number of countries, including Australia. The Australian
balance is, of course, very small compared with those held by India.
Egypt and even by Ireland. I know that many of us would prefer
to live in a world of our own, but we cannot. My Government realizethat
this difficulty cannot be cured in a day, but it may be possible to
ameliorate the consequences of the developments.
One of the immediate effects on Australia will be a serious curtailnient
of imports, and that curtailment will apply not only to import
from dollar countries, including Canada, but also, to some degree, to
imports from sterling countries. However, if everyone plays the game.
and works the right way I believe that the economy of this country is
geared that it will be able to withstand the economic repercussions. Of
course, I emphasize that the serious developments I have outlined may
not eventuate, but we must realize that we shall probably have to go
without many of the imports we had hoped to receive. For that reason.
L wish ' to play safe' in the plans we are making for the immediate
future. 1 warn conference that shniold these developments eventuate
it will be absolutely impossible for us to continue as we have in the past.
" At the same time, I do not want anyone to go away with the
impression that I do not firmly believe in the future of Australia.
With prcper determination on the part of the governments and pttopli
of Australia, I am sanguine that there will be a vast expansion. r
may be altered for a while, but I have a deep-rooted confidence-shared
by industrialists and husiinessmen, nanv of whom a re not of myv
political faith-that Australia can obtain maxiimum production and
economic staibilit MERCANTILE MARINE.
SAFETY AT SEA.
On 15tlI August, 1947, the Prime Minister ( Mr. Chifley) said-
" In 1929, a conference on safety of life at sea was held at London
and Australia ratified the resulting convention after amending ' th!.
Navigation Act and regulations to conform to its provisions. The
British Government, in view of recent war experiences, proposes to h ld
a conference at London in 1948.
" Cabinet decided to-day to accept the invitation antd send a delegition
consisting of two technical officers from the Department of Shipiping
( one experienced in navigational problems and the other in marine

engineering problems), and two advisers, one nominated by Aust ' ralian
shipowners and one nominated by the Australasian Council of Trade
Unions CANBERRA. HOUSING.
On 15th August, 1947, the Prime Minister ( Mr. Chifley) said-
" The Minister for the Interior ( Mr. Johnson) reported to Cabinet
to-dayv that a deputation had waited on him requesting an amendment
to the present policy of allocation of housing at Canberra to permit of
an allotment to persons not in Government employ. At present 1,445
person are registcred for tenancies of whom 710 are public servants, 42.5
are other Government employees, and 310 are persons not in Governmnent
employ. AXbout 325 new houses are at present under construction
and-the DepaFtment of Housing anticipates an acceleration of tho
present building programme, probably 100 houses in the next six
months, and ultimately reaching 300 to 500 h-ouses in a year.
Cabinet approved of the allotment of a quota of one in each ten
houses built in the twelve months from 1st September, 1947, to person
not in Government employ, the quota to be reviewed at the end of the
year. Fifty pcir cent, of the quota will be allotted to ex-servicemen"
( For earlier references, please see No. 110, page 59; No. 126, page
EXTERNAL COMMUN ICAT IONS.
TELE-COMMUNICATIONS-BROADCAST NEWS.
On 15th August, 1947, the Prime Minister ( Mr. Chifley) said-
" Cabinet decided. to-day that the Overseas Telecommunications
Commission be authorized to undertake the reception in Australia of
any overseas news broadcasts required by press agencies or other similar
bodies. A uniform flat rate will be applied for this service irrespective
( if whether the broadcasts emanate from a British Commonwealth or a
foreign country. When transmission from Australia of news broadcasts
on behalf of a press agency is required, the transmission will be effected
by the Commission on a uniform flat rate charge whether to a British
Commonwealth or-a foreign country"'.
COPYRIGHT.
MUSIC-PROPOSED LEGISLATION.
On 15th Auiguist, 1947, the Prime Minister ( Mr. Chifley) said-
Where copyright exists in a musical work, it is an infringement of
cop) yright to give a public performance of the work except under licence
from the owner of the copyright on terms agreed to by him.
5691.-2

" The Australian Performing Right Association has recently notified
the Comnmonwealth Clothing Factory that, in respect of music
rebroadcast to employees while at work, an annual licence will in
future be required.
" Under an award in 1938, the Australian Broadcasting Commission
pays to A. P. IR. A. an annual sum of 6d. a listener's licence in respect
of music broadcast from the national stations. The Federation of
Commercial Broadcasting Stations pays to A. P. R. A. about the same
amount. In effect, A. P. R. A. receives from the Australian broadcasting
systems is. a listener's licence. This is greatly in excess of amounts paid
to corresponding bodies in Britain, Canada and New Zealand. Negotiations
to make a more satisfactory arrangement have been unsuccessful
and no provision exists whereby A. P. R. A. can be coompelled to submit
to arbitration the Copyright Act providing only for voluntary
arbitration. Cabinet decided to-day that a sub-committee comprising Dr. Evatt,
the Minister for Health ( Senator McKenna) and the Minister for
Information ( Mr. Calwell) consider an amendment of the Copyright
Act, for submission to the Federal Parliamentary Labour party, to provide
in principle for the fixing, by compulsory arbitration in default
of agreement of a single, all-Australian fee for the public performance
of copyright musical work." TRANSPORT.
COMMONWEALTH RAILWAYS-COMMISSIONER.
Onl 15th August, 1947, thc Prime Minister ( Mr. Chifley) said-
Cabinet decided to-day to extend for a further per'iod of twelve
months from 7th November, 1947, the term of Mr. G. A. Gahan as
Commissioner of Commonwealth Railways."
TRANSITION.
CONTROLS-FURTHER DILL PROPOSED.
On 15th August, 1947, the Prime Minister ( Mr. Chifley) said-
" The Defence ( Transitional Provisions) Act 1947 continues in
operation until 31st December, 1947, about 59 sets of regulations. 61
separate regulations in the General and Supplementary sets and
orders made under regulations now resealed, a total of 130. A preliminary
survey indicates that it will be poosible either to repeal or to
allow to elapse before the end of the year about one-third of each class.
However, it is probablc that all regulations of any significance in
force in 1947 will need to have their effect carried forward in 1948.
The general inflationary conditions present at the end of 1946 are not
likely to have changed by the end of 1947, and control over economnic
conditions generally will need to be continued.

Cabinet to-day approved of the preparation of bills dealing with
dairy produce acquisition ( the setting up of an authority to deal with
dairy produce purchased under contract by Britain, patriotic funds,
enemy property, trading with the enemy and ship building.
Cabinet approved the preparation of a bill to amend the Defence
( Transitional Provisions) Act to provide for the repeal of as many
as possible of regulations and orders which present circumstances suggest
as unlikely to be required after the end of 1947 and to extend the
life of the Act to cover until the 31st December, 1948-unleas earlier
repealed-regulations and orders necessary to deal with the transition.
period." ( For earlier references, please see No. 122, page
WHEAT STABILIZATION SCHEME-.
POST-WAR PLANS, EXTENSION.
On 15th August, 1947, the Prime Minister ( Mr. Chifley) said-
When the wheat stabilization plan was announced, it was stated
that it would be reviewed from time to time with a view to extension
beyond the original five years, the intention being to provide a permanent
guarantee, subject to regular review and adjustment to give an
assured price for a reasonable period ahead.
Cabinet decided to-day that the period of the wheat stabilization
plan be extended to seven years to the 1952-53 season with a guarantee
of 5s. a bushel bulk, f. o. r. ports."
( ror earlier references, please see No. 110, page 15; No. 116, page 13.)
POST-WAR PLAN, PREMIERS CONFERENCE DECISION.
On 21st August, 1947, the conference of Comnmonwealth and State
Ministers decided-
That Conference-Re-affirms its previous decision in respect of the need for a stabilization
plan for the wheat industry.
Endorses the decision to continue war-time powers for the 1947-49
crop only.
Recommends an early special meeting of Commonwealth and State
Ministers for Agriculture for the purpose of working out a plan
satisf actory to all Governments and the wheat industry; and
recomnds that the wheat-growers be given an opportunity to submit
their own proposals in writing and to present their views to.
the Ministers." DROUGHT RELIEF-VICTORIA.
On 15th August, 1947, Mr. Chifley said-
Cabinet decided to-day that up to œ 50,000 be approved for drought
relief to cereal growers in Victoria for the 1946-47 season on a œ, 1-for-
œ 1l basis-with the Victorian Government. The Commonwealth assistance
will be contingent on the State submitting a satisfactory relief
plan." 5691.-3

CONSTITUTION.
AMENDMENT-PROPOSED REFERENDUM, PRICES.
On 15th August, 1947, the Prime Minister ( Mr. Chifley) said-
Cabinet decided to-night to recommend to the Federal Parliamentary
Labour party that a referendum be taken to amend section 51 of
the Constitution on prices and rents. Although a previous Premiers
Conference agreed to endeavour to pass legislation which would be
supplementary to the Commonwealth powers, certain States have found
it impossible to pass legislation through their parliaments."
INDIA.
EXCHANGE OF HIGH COMMISSIONERS.
On 15th August, 1947, the Minister for External Affairs ( Dr.
Evatt) announced that it had been agreed between the Governments
of Australia and of Pakistan that an exchange of High Conmmissioners
would take place as soon as each government could make the necessary
arrangements. An Australian diplomatic representative would be
appointed to Pakistan with head-quarters at Karachi. Sir Iven
Mackay would become High Commissioner for Australia in the Union
of India with head-quarters at New Delhi.
BANKING CONTROL.
NATIQNALIZATION-PROPOSED LEGISLATION.
On 16th August, 1947, the Prime Minister ( Mr. Chifley) said-
Cabinet to-day authorized the Attorney-General ( Dr. Evatt) and
myself to prepare legislation for submission to the Federal Parliamentary
Labour party for the nationalization of banking, other than
State banks, with proper protection for shareholders, depositors,
borrowers and staff of private banks."
NATIONALIZATION-PROPOSED LEGISLATION, BANK
SHARES.
On 19th August, 1947, Mr. Chifley said-
" I refer to reported falls in the market value of somne bank shares
to-day. These are entirely unwarranted, and shareholders -are entitled
to be warned against propaganda or other statements tending to depreciate
the value of their holdings.
The Government desires to make it clear that it does not advise
shareholders to sell, but in order to protect the interests of those shareholders
who nevertheless wish to sell, the Government has arranged
with the Commonwealth Bank to purchase any bank shares which
holders are desirous of selling. The purchase price will be not less than
that quoted on the Stock Exchange on Friday, 15th August, 1947."
( For earlier references, please see No. 97, page 21.)

ANTARCTI CA.
EXPEDITION-CABINET DECISIONS.
On 16th August, 1941, the Prime Minister ( Mr. Chifley) said-
Cabinet to-day received a report on the progress of the Executive
Planning Committee of the Australian Antarctic expedition for 1947-48.
Cabinet approved the committee's recommendations as follows
That scientific and meteorological stations be set up at Heard and Macquarie
Islands during the forthcoming expedition and maintained for a period of at
least five years.
That a systematic reconnaissance of the coast of the Australian Antarctic
Territory be carried out over a number of years by the Wyatt Earp with a
view to establishing a permanent scientific station on the Antarctic Continent
itself. That a ship be obtained, of much greater capacity than the Wyatt Earp
and especially adapted for work in Antarctic conditions. The exact type of
vessel required cannot be determined until further information is available as
to the proposed lauding site."
( For earlier references, please see No. 126, page
EXTERNAL AFFAIRS.
DIPLOMATIC CADETS.
On 19th August, 1947, the Minister for External Affairs ( Dr.
Evatt) announced that his department -was recruiting a further batch
of diplomatic staff cadets to undergo a two years' course of training
at the School of Diplomatic Studies prior to appointment to the
department. HIDES.
CONTROL OF FOOTWEAR',-PREMIERS CONFERENCE
DECISION.
On 20th August, 1947, the conference of Commonwealth and State
Ministers decided-
That the Commonwealth should circulate copies of a draft bill
for consideration by the State Parliaments, together with a statement
setting out the principles on which Commonwealth control of footwear
operated." LOAN COUNCIL.
PROGRAMME FOR 1947-48.
On 20thi August, 1947, the Prime Minister ( Mr. Chifley) said-
The principal business considered by the Loan Council to-day
was the loan programmes of the Commonwealth and the -States for the
year 1947-48.
The Loan Council had before it the report of the Co-ordinator-
General of Works ( Mr. Hoy) and endorsed the programme of works
submitted by Mr. Hoy, but decided to limit the borrowing to 75 per'
cent, of the programme, the borrowing programme to be reveiwed in
January, 1948, in the light of the circumstances then existing.
It was also decided that semi-governmental and local authorities
borrowing would be subject to the same 75 per cent, limitation.

" Under this arrangement, the Commonwealth and States will be
entitled to borrow up to the following amounts, pending review later
in the financial Government Semi-Governmental
Programmes, and Incal.
Commor wealth 12,900,000
New South Wales 16,151,000 8,181,000
Victoria 8,318,000 5,239,000
Queensland.. 6,692,000 5,036,000
South Australia 4,982,000 136,000
Western, Australia 2,708,000 450,000
Tasmania 1,531,000 678,00
53,282,000 19,720,000
TARI FF.
EXPORTS PROHIBITED.
On 21st August, 1947, the Minister for Customs ( Senator Courtice)
announced that exportation had been prohibited of-
Agricultural machinery, namely, tractors; drills, grain and fertilizer cultivator;
drills, seeds for cereal crops; harvesters, header; reaper threshers; reapers
and binders; hay balers; rakes, side delivery; -mowers; and spare partS for
those machines; cattle, beef and dairy; cowpeas; ovaltine; urea, urea moulding
powders and urea glue. TRADING WITH ENEMY.
JAPAN.
On 22nd August, 1947, the Minister for Customs ( Senator Courtice)
announced that a licence under the Trading with the Enemy Act
published in that day's Commonwealth Gazeie authorized the resumption
of private trade with Japan. Imports into Australia would be
controlled under Customs ( Import Licensing) Regulations. Imports
would be accorded the same treatment as imports from hard currency
areas and in general only essential goods not available in adequate
quantities from local or sterling sources of supply would be permitted.
CONVERSION LOAN.
AUSTRALIAN OPERATION-AUGUST, 1947.
On 25th August, 1947, the Prime Minister ( Mr. Chifley) announced
that a conversion loan would open on 28th August, 1947. Holders of
securities valued at œ 36,751,620 maturing on 15th September, 1947,
would be invited to exchange their securities for 3j per cent, bonds
or inscribed stock repayable in 1959. T * he Treasurer would reserve
the option of retiring the new securities in 1956. About 36,000
individuals hold the securities about to mature comprising about
œ E8,100,000 bearing interest at 31 per cent. and œ 28,600,000 at 4 per cent.

MAN-POWER.
WOMEN WORKERS-MINISTER'S REQUESTS.
On 26th August, 1947, the Minister for Labour ( Mr. Holloway)
said that employers could provide greater opportunities for the parttime
employment of women. Many employers were operating schemes
for the part-time employment of women. Some schemes had been
introduced during the war and others more recently. It had sometimes
been found necessary to make internal adjustments to permit of the
working of short shifts or to earmark certain types of work for parttime
workers, but when those adjustments had been made a smoother
flow and greater production had resulted from the increased numbers
of workers. Women, not at present employed, should undertake part-time work.
The total number of women in employment as wage and salary earners,
excluding rural and household domestic workers, was about 620,000,
or only 20,000 -below the peak war-time level, when man-power controls
were operating. When account was taken of the greater numbers of
women now occupied as employers or self-employed persons, it was
very likely that the total number of women gainfully occupied was
nearly as great as it was at the peak of the war.
Decentralization of industry throughout suburban areas and the
country meant that opportunities for employment were very much more
handy to women living at home than previously. Arrangements could
often be made to make part-time employment fit in with household
and other commitments. JUDICIARY.
ARBITRATION COURT-APPOINTMENT.
On 27th August, 1947, the Prime Minister ( Mr. Chifley) said-
Judge R. C. Kirby, of the New South Wales District Court, has
been appointed a judge of the Commonwealth Conciliation and Arbitration
Court.
" When the Stevedoring Industry Act comes into operation, Mr.
Justice Kirby will become chairman of -the Stevedoring Industry
Commission NATIONAL DEBT.
NATIONAL DEBT COMMISSION-ANNUAL REPORT.
On 27th August, 1947, the Prime Minister ( Mr. Chifley) said-
The National Debt Commission, which controls all sinking funds
for the redemption of Commonwealth and State debts, met at Canberra
to-day. The meeting was attended by the Chief Justice of the High
Court ( Sir John Latham), the Governor of the Commonwealth Bank
( Mr. H. T. Armitage), the acting Secretary to the Treasury ( Mr. G1. P.
N. Watt), the Solicitor-General ( Profesor K. H. Bailey), and the
representative of the States ( Mr. A. T. -Smithers), and myself as chairman.
The main business of the meeting was the presentation of the
annual report on the transactions for the year ended 30th June, 1947,

and consideration of the application of sinking fund moneys accruing
during 1947-48. The receipts of the sinking fund for 1946-47 were
about œ 25,950,000. The annual report covering these transactions will
be presented to Parliament in due course.
" Receipts for 1947-48 are estimated at œ 26,873,000, being
œ 17,625,000 on account of the Commonwealth and œ 9,248,000 on account
of the States. Of the latter amount, œ 1,642,000 will be provided from
Commonwealth revenue. The total contributions estimated to be available
for the redemption of the debt of each . State are as follows:-
New South Wales œ 3,612,000, Victoria œ 1,837,000, Queensland œ 1,340,000,
South Australia œ 1,141,000, Western Australia œ 1,007,000, and Tasmania
œ 311,000, total œ 9,248,000.
" The receipts of œ 26,873,000 were directed by the commission to be
applied in the various markets in which Commonwealth and State
securities are held-Australia, London and New York. The commission
uses its funds for the redemption of Commonwealth and State
securities either by repurchase of these securities on the market, or by
redemption at maturity.
" The large sums applied in repurchases on -Stock Exchanges ensure
a regular market for security holders. When securities are acquired by
the commission, either by repurchase or redemption, they are
immediately cancelled and the public debt is reduced accordingly".
HEALTH AND YOUTH WELFARE.
CHILD HEALTH.
On 2nd September, 1947, the Prime Minister ( Mr. Chifley) said-
" Cabinet decided to-day on the recommendation of the Minister for
Health ( Senator McKenna) that a division of child health be created
in the Department of Health to be transferred subsequently to the
National Health Service.
The functions of the division will be to co-ordinate and extend
existing pre-natal and infant welfare services; to continue research into
the growth and development of infants and children, malnutrition and
other diseases in children and related fundamental biochemistry and
physiology; to conduct general education on infant and child health,
including nutrition; to arrange, and if necessary, undertake special
instruction to medical graduates and others in child health and
nutrition. " For the present the division will be located in the Institute of
Anatomy, Canberra, and the functions of the division will be additional
to those for which the Institute was founded-investigation of the
anatomy and physiology of Australian animals and the development
and maintenance of a museum of health and hygiene.
" Additional permanent positions will be created of a second medical
officer to be an assistant to the Director; a senior biochemist to take
charge of the increasingly important phase of the study of growth and
nutrition; a second biochemist; and a nutritionist

INCOME TAX.
UNIFORM TAX-RE-IMBURSEMENT TO THE STATES.
On 2nd September, 1947, the Prime Minister ( Mr. Chifley) said-
Under the war-time uniform tax scheme which operated until
June, 1946, tax re-imbursement grants paid to the States amounted
to œ 34,255,000. At a conference of Commonwealth and State Ministers
in January, 1946, it was agreed that a revised basis should operate as
from 1st July, 1946. The revised basis was contained in the States
Grants ( Tax Re-imbursement) Act and provided that the aggregate
of the grants in 1946-47 and 1947-48 should be œ 40,000,000. In respect
of subsequent years, it was specified that the aggregate grant of
œ 40,000,000 would be varied in proportion to variation in the States'
populations and the resultant amount increased by half the percentage
increase, if any, in the level of average wages per person employed over
the level in 1946-47. In regard to grants in years after 1947-48, the
legislation provided that a gradually diminishing part of the aggregate
grant would be distributed in the proportions in which the aggregate
grant of œ 40,000,000 was distributed to the States in 1946-47 and
1947-48, while a gradually increasing part would be distributed in
proportion to the States' respective populations after adjustments had
been made to those populations to take account of relative sparsity of
population and the numbers of children aged five to fifteen years in each
State. " At the conference of Commonwealth and State Ministers in
August, 1947, the State Premiers indicated that the re-imbursement
grants would be insufficient to enable them to balance their Budgets in
this financial year.
Cabinet decided to-day that an additional re-imbursement grant of
œ 5,000,000 be distributed by the Commonwealth and the States as
follows:-In 1947-48 the additional grant of œ 5,000,000 will be distributed among the
States in accordance with the proportions in the first schedule to the States
Grants ( Tax Re-imbursement) Act 1946.
To the extent that, in subsequent years, the aggregate grant determined and
distributed among'the States in accordance with the provisions of the States
Grants ( Tax Re-imbursement) Act 1946 is less than œ 45,000,000, the amount
of this deficiency will be made up by the Commonwealth and distributed among
the States in accordance with the proportions in the first schedule to the Act
of 1946. " Legislation to authorize the payment of the additional grant will
be submitted to the Federal Parliamentary Labour Party".
THE GOVERNMENT.
On 5th September, 1947, the Prime Minister ( Mr. Chifley) said-
" The Minister for Health and Social Services ( Senator McKenna)
will act as Attorney-General and I will act as Minister for External
Affairs as from to-day and during the absence overseas of Dr. Evatt
By Authority: L. F. JOHNSTON, Commonwealth Governrqent Printer, Canbenra.