[Spine]
14.
ALLEN S. BROWN
(CABINET NOTES, 4/12/51 to 27/3/52)
PERSONAL (No.3)
[Page 1]
1
A S Brown
Prime Ministers Department
Canberra
___________
[Note Pages 2–32 in this notebook concern Cabinet meetings that took place in 1951 and
were released in 2002.]
[Page 33]
[9 January 1952]
Cabinet. 9.1.52.
Cabinet discussed the question of replacing Senator Nash – in my absence.
Dutch New Guinea.
The Minister reported on the present situation as to Dutch New Guinea. Suggestion
that documented story on Manus should be prepared. If this comes off the ice we
should raise a great deal of public noise and influence the U.S.
McBride says we should make case for uniting of W & E. N Guinea under trust
arrangements.
Submission 196. – Approved.
Submission 198
(a) effect of any proposed rec. on finances of territory.
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 1
(b)
"
"
"
"
"
"
"
of C/w.
Chairman to be asked to include
£7.7.0 per day for sittings of the ctee.
Butlin to be considered further overnight.
Submission 197.
Approved.
Cl. 8. to be “stricken from the record”.
Submission 168A
Till 10.30 am.
[Page 34]
Submission 195 – Agreed.
announcement.
P.M. to consult with Sir A. Fadden before
McEwen raises question of income tax in N. Territory proposals should come up at
an early time.
Future taxation policy for primary producers in N.T.
Treas. C&H. Territories1. Dev. To be ctee.
__________________
Submission 168A.
Asks reps to meet sub ctee.
Let sub-ctee tell them 29 + 20
Price., interest rate, deposit & Terms of payment.
Obligation to keep Austn. shipyards.
Mcleay 2 Ask Lloyds to make their man available 3 to assist a firm of chartered
accountants – say Smith Johnson or Flack & Flack.
McLeay & Spooner to choose a/cts.
Same ctee plus Holt to consider Basten report.
Cable to Holt telling him & that he is on ctee. –
Report on N.W. Development.
‘Chair’ is written above the line.
‘McLeay’ is inserted above the line.
3 ‘as technical collaborator’ is inserted above the line.
1
2
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transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 2
Korea. The Minister reported on his visit to Korea.
Good food.
difficult country.
special Xmas dinner.
cemetery at
Pusan – sergeants – decorations at a scale of 20 per 100. – heavy cost paying U.S. for
supplies – 32/- per day for rations perhaps 45/- all told including ammunition – a
lot of property adjustments necessary in Japan after peace treaty. – everybody in
RAAF in Iwakumi regarded as being in Korea but Kure as being in Japan. – high
incidence of VD. from Japan – great improvement in anti aircraft of Chinese –
Indian casualty clearing station very good – 3rd Batt cld. come back within 3 mths of
cease fire. Meteors are working well back from the front.
[Page 35]
Air Beef.
Reads Bureau of Ag. Ec. recommendations – P.M reads Treasury note.
McEwen points out that all railways are as uneconomic as the air beef proposals.
Approved.
J.O.
McBride McEwen & P.M. to talk abt this.
J.O. Profits – Should it be 2 or 3 years. If we pay £25m. out of £67m. & give
everybody the same as last time. Do we want legislation in this session. – Probably
– bring proposal to next session.
Apples & Pears –
Export to the UK.
We have ctee.
Treas. McB Holt Spooner & McEwen.
Tomorrow at 10. am.
K Hughes to discuss Olympic.
McLeay. Beale. Hasluck
Dunk.
Jones.
Balmain – Kent Hughes. Dept of W&N. Sydney 82 Pitt. St.
(Payment of rates on C/w property?)
[Page 36]
Cabinet –
Thursday 2.30 pm & follow on on Friday for Basten report.
➼
Business of the Session
Peace Treaty )
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 3
Pacific Pact
)
? Legislation
Fisheries legislation.
Sit for max. of 3 wks – aim at 2 wks
Meet abt May 2nd =
Civil defence bill?
Bill about signatures to Lands Acquisition?
Defence legislation statement?
C.O.R. legislation – Can agreement be made in time.
(? Legislation on J.O. Profits – see notes of last meeting).
Submission No 200.
Wilfred Burchett – reporter in Korea on Communist side.
Law department to look into the matter.
Approved.
We should indicate the substance of what we are proposing to do.
Holt to prepare statement.
Submission No. 199.
Approved.
Suggested McCarthy, Treasury, Customs. agreed.
McEwen raises the general question of an “incentive price” – govt. may be
embarassed by having a formal cost of production price.
Reps of industry to be allowed to sit in on it but not take part.
(Copy for Sen O’Sullivan of decision 33.).
Submission No 201.
Approved.
Submission No 202.
Have a proposal in terms of policy from Cw. Def – Defence.
Treasury – Check whether it can be done by regulation under Def. Preparations.
Lunch
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
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[Page 37]
Big Bell.
Wait for Meades report.
Alcan
Not to be pursued.
Submission 205. – Tasmanian Apples – Export Guarantees
Cabinet did not accept the proposal put forward.
Reasons to be stated. 1.We think that g’tees of this kind are primarily for State Govt.
2.We don’t believe govt shd accept liability for loss on a method of sale which is
relatively risky.
3.Industry itself with this volume/price should so organise itself so that it can
advance finance necessary advances.
Monday 4th – 2.30pm.
[Page 38]
[4–5 February 1952]
4th February 1952
1. Proposed visit by private members.
2. Wheelers case.
3. Bushfires – (a) confirm decision of watching grants.
(b) provisional tax Send tax man & man from C&A to hear cases & deal with them on spot.
Page suggests statement on what is being done at present about provisional
tax generally –
McGovern to come over at 4.15pm.
Employment position –
Q’land – Could we pick up some unemployment by loan work.
Page – What about fencing?
4.15. McGovern in attendance
In our estimate of £313m.
122
£200m is involved in provisional tax.
I cld arrange for officers to go to bushfire areas & deal with prima facie case.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 5
If you do it for bushfires why not do it for wool growers. Provided woolgrower
makes appln accompanied by unequivocal estimate can suspend payment of 40% –
provided further infn within 90% – balance to be collected within 21 days. Page
suggests public statement along lines of administrative direction.
Agreed to.
P.M. announced return of Treasurer – by Feb. 20.
By-election for Lyne. – consult organisation.
[Page 39]
Submission No 204
As Meat Bd made recn. & it was published pay 7½% this time but in future the
figure recommended by the Minister.
Nicholas report –
Submission No 206.
Would not commit ourselves to funding all the cost. ➼
Dutch New Guinea
If the Dutch ask for ammunition – yes.
Can we check Helfrig’s statement abt Tai islands.
5.2.52
8pm
Questions
Peace Treaty & Statement on N. Guinea – 1 hr
Thurs 7th – No questions – 10.30am. meeting.
No confidence motion – Gag on Thurs. night.
Friday 8th – 2nd reading on Pacific Pact – sit until 4pm.
Debate on Peace Treaty.
Bate is urging adjournment on food production.
Tues. 12th, Wed 13th & Thursday 14th. – on peace treaty.
Friday 15th morning – & Tues 19th & Wed. 20th on Pacific Pact.
Salaries bill
[Page 40]
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 6
Submission 126A.
Not Approved.
Submission No 203.
Suggestion that C/w. has a developmental works program in states.
Rejected.
[Page 41]
[7 February 1952]
7th
1.
2.
3.
4.
5.
See. Gair. Yes. 2.15. Exec. 3.30pm 4pm
Cancel Metal Trade Dinner.4
Agricultural Council – defer till after funeral.
Oath & reswearing. – No.
Federal Courts – No sitting on day of funeral. Federal trib. adjourn today –
resume tomorrow.
6. Proclamation – Proclamation has no effect – of ceremonial importance &
historical significance – agreed to follow precedent. Other than those connected
with Memorial services.
7. ? Rebroadcast speeches in House – immediately after news.
8. Commercial broadcasting – not advertising –
9. After the funeral OK – until then public functions like dinners etc. foundation
stones.
10. Memorial service – on day of funeral.
11. 2 min silence at 12 noon. 5
12. Sunday for memorial services. 6
13. If he adds a word before or after – that is a matter for him.
14. Service in Park with services. 7
15. Sporting bodies – day of funeral.
16. Queen’s birthday – April 21.
Cable to CRO. Gravely incov. – carrying on the date selected by late King.
? Empire day
–
Anzac Day. 8 9
Monday 21.
Friday 25.
Gazette 2 Min Silence – funeral –
2am Mem. Sunday following funeral
Until
‘Inform State govts that our program is’.is pencilled in.
‘funeral’ is pencilled in.
6 ‘C/w Ministers come to Cba. We will have memorial service at Parlt House Cba.’ is pencilled in.
7 ‘Flags ½ mast today. Accession day – flags at mast head till sunset (6pm)’ is pencilled in.
8 ‘Notify heads of Churches – invite them to conduct appr churches.’ is pencilled in.
9 ‘Yeend to ring Tyrell – abt GGs’ .is pencilled in.
4
5
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 7
17. By election – Last Sat’day in March.
18. D.P.C. – 10.am tomorrow
19. Jap Assets
5.30pm.
Monday aft 18th. 10.am Cabinet
McEwen, Harrison
Beale
1st 5 or 6
close list at 5
[Page 42]
[18 February 1952]
18.110.52
The P.M. mentioned the press statement about test of atomic weapon.
Submission No. 162. A.
34.3
16.5
50.8
( 4.0
( 2.0
( 3.5
Conversion
Cash
Cash Total
Sinking Fund
Life Offices ₤ 2/3m
Advertisement
C/w Savings Bank
60.
➼
₤25 million
–
➼
balance over 3 yrs,
–
Bushfires in A.C.T.
Report & report of enquiry to go to Law Dept.
Report of court of enquiry to go to States.
Parliamentary business
Censure motion
– 2 days.
Submission 208.
Total works program not to be increased.
Submission 209.
Part Heard.
10
‘2’ is written above the line.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 8
No announcement yet.
Submission 211.
Approved.
– % not necessarily approved.
__________________
[Page 43]
Motion of congratulation to Monarch tomorrow –
Coronation
What are difficulties? After the coronation
RSSAILA
Basic war pension – Cabinet Ctee along same lines to be reconstituted. – Holland to
be informed.
[20 February 1952]
Cabinet 20.2.52.
Costs in relation to basic wage – wheat butter etc.
get list.
Wheat Scheme
Would there be concessional sales – stock feed etc.
What would be effect on outgoing funds?
Is our policy a continuation of stabilisation plans? or We believe that we should go
for freedom. We would They should consider freedom – No that is not sufficient.
Are other things just as important – housing.
McBride. I think facilities are more important than price – altho’ both are
important.
We will get more immediate results from N.S.W. where you don’t need super.
There is the internal problem of shifting the wheat from SA 11 to NSW. 8m bushels
will have to be moved into N.S.W. to provide the offals & for other reasons.
Our policy is for freedom. I am now prepared to discuss ways & means. Do you
wish we care to give a lead.
11
‘Vic & WA’ is inserted above the line.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 9
Stablisation. It continues stabilisation but if you wish to discuss freedom – I am
willing to discuss it.
[Page 44]
This includes 1 abolition of export tax
2 guaranteed price abol. 12
Separate considg of home consumption price
a human consumption
b stock feed.
13
The 14 fund would presumably have to be distributed. 15
Repayment not earlier than July ’53.
Freedom which has these implications –
Now believes it would be better to have …
∴ of discontent I am prepared to discuss.
Friday 2pm
to consider this further. –
[22 February 1952]
Cabinet 22.2.52
P.M. This a major problem – not easy to make snap decision. Implications of this.
On econ side we have concentrated on breaking inflationary spiral & stability. If in
this calendar year we had a smaller adjustment next quarter smaller again it wld
have enormous effect on public mind – easier next year. Failure of loan raising is
due to rising prices & fear of depreciated currency.
C Series figure indications are good – perhaps half of last perhaps followed by a
standstill – rises are in food – clothing is standstill.
Removal of controls in wheat & butter – H. Cons price 15/- or 16/- & butter rises
by 9d this wld put 5/- on basic wage & this wld negative hoped for fall. (No
immediate impact in case of wheat.)
[Page 45]
We have used stabilisation funds as anti-inflation instrument – ₤xm. Wheat funds
now ₤25m for 2 ½ to 5m from last harvest. If we come out with this proposal we
‘Specific questions of a factual kind.’ is written above the line.
‘Prior to contact [unable to read]’ is written above the line.
14 ‘accumulated’ is inserted above the line.
15 ‘Bank Phillips’ is written above the line.
12
13
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transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 10
can’t retain funds. In addition these funds are held as to ₤6m in April smaturing
securities. Advance sub. 2 ½ m & C/w Bank & Treasury assumed conversion of ₤6.
Retention of ₤2 ½ & a further ₤1 ½ to ₤2 ½ subs – ₤10m approx. Balance of wheat
funds in govt securities of various sorts. To pay out they would have to be bought
by C/w Bank. All this inflationary. In case of wheat an increase of production
would save dollars for the sterling area. Wheat is profitable but other things are
more profitable – eg wool. For butter you need will sell for export at a loss and Br.
govts decision is relevant. I don’t think we should determine these issues off the
cuff.
We should have discussions in the atmosphere of present policies. The Minister can
say we are on stabilisation but if you are interested in working towards freedom I
am interested in working out the details and implications of this.
Holt. I agree we should look carefully at this. I agree that we are well on the way to
slowing down the quarterly adjustment. When stability is reached people will
[unable to read – ?unbutton]. We want an increase in export production. To get this
we are not worrying much about internal cost levels. Even for wool a drop of 20d
would have wool growers in trouble. We must remember that stabilisation schemes
are designed to avoid the fluctuations of a world market. This is an acceptance of
the Colin Clark approach & this may not work out in fact.
The other factors are more important than price – eg high taxation, absence of
labour, – accomodation on the farms. I hope to put a scheme up on this latter point
soon. Our first responsibility is to restore stability and then go on to these other
things.
[Page 46]
Anthony. I have little to add to what I sd the other day. But by way of illustration –
we get ₤3m out of canned pineapples sold to Canada. We can hold the Canadian
market competitively but the rise in internal costs is making this more & more
difficult. S. Africa & Hawaii will come in. The industry produces much more than
the Australian market can absorb. This has already happened with butter. This is
why I think we must reach stability. The farmer cannot expect to have all the ups &
none of the downs. We should give the producers an adequate return on what he
produces and should not look for excessive profits at the present time. The sugar
industry would not be interested in the quick gains. We must hold the internal
costs down.
Harrison. I agree with what you 16 said.
Page. There is a substantial reduction in production in wheat butter etc. Some
incentive must be found. The most important thing is a stable basic wage & stable
internal costs. But it should not be the export industries alone that stabilise the
economy. We should look at each particular industry. Wheat butter & Sugar each
present different problems. Wheat has a profitable export price. The wheat man
16
‘(PM)’ is written above the line.
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 11
does not object to the home consumption price, he has had benefits before & he
hopes to get them again. We should do something to enable the wheat grower to
get his return. Let us look at each product by itself. Perhaps we should give sugar a
subsidy instead of a rise in price. So McEwen shd put the matter much as you put it
yourself – to the Agric Council. But it is not fair to use producers funds because it is
convenient for a particular loan or not. You must work out details first but McEwen
shd give an indication of the way our minds are working. We should keep our
home consumption prices where they are.
[Page 47]
Wheat is in a different position – its price is likely to stay up.
McEwen. I have never suggested not sticking to home consumption price – eg for
wheat I suggested export price less x (2/-, 2/6, 3/-). You sd this has the germs of a
big policy departure, it must not be decided in a hurry. That is right. We ought not
to anchor ourselves to a contrary policy. The national believes there is a food crisis
and in a free enterprize order price determines whether things are produced or not.
The whole govt will be embarassed if we don’t have a policy.
There is nothing that affects price before Dec. 1 next (wheat). This will be sold 16/export and 12/1 with local. Home feed sales will be 16/1. We should say 15/- for
local consumption out of crop to be harvested Xmas next year. My main thesis
applies to period after that.
We are bound to put this to the vote of the industry before the end of this calendar
year. So we have to make up our minds soon. I have had some words prepared & I
have done the same with Butter.
Before the end of June when the present 17 arrangement runs out we must define
our position.
WS Kelly is against what I propose in wheat but in favour for butter. He is sure that
a lower price would result if industry fixes the price.
---Reads proposed press statement re butter.
---Page. The Equalisation Ctee is the best instrument for fixing the price than is the
government.
---Reads proposed statement on wheat.
17
‘butter’ is inserted above the line.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 12
[Page 48]
McMahon. What we do to wheat will not affect basic wage this year. We need to
increase sowings. On stabilisation funds – wool growers do not get money back for
3 years. On consessional sales “each is a matter for separate examination”.
[Page. Any statement such as is proposed by Minister will not have effect for at
least 12 mths. The human consumption part should be expressed clearly.]
We are basing our proposals on the assumption that the I.WA is continued and will
go on for 2–4 years.
McEwen – Wheat grower as an operator can get on. But there is a trend of
production that can have serious consequences for the government.
Holt. The answer for the fall in production is the price of wool.
Anthony.
Spooner. We can’t look at this policy in isolation. We must have full implications
from Treasury & Economic advisers. Once you say something is going to happen to
prices it would destroy the confidence that is now building up.
Francis. Internal costs are the important thing & these proposals will undo what
we are doing now.
[Page 49]
Submission No. 209.
Approved.
Butter in relation to Ag. Council.
Anthony. Suggest what was said before. [Circled to be moved to *. C/w to fix ex
factory price, States to fix retail margins.] – Guaranteed the dairy industry over a
period of years, part by subsidy part by price rises. *
Precise paper on this subject to be submitted.
[Page 50]
Cabinet
10 additional Labour & 14–16 our side of House on Treaty. Peace. Can’t get this
thru before Wednesday night – 11.30pm.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 13
Sit this Friday – rise following Thursday.
Members have great difficulty in seeing ministers. This one reason for extension.
Then go on to Salaries 18 – Calwell suggests an amendment on tax free proposition
(miners overtime – marginal rates) Daly is not so certain that party will agree to
amendment.
Note wide title of 19 Income Tax Amendment bill – any member can speak on
anything in acts referred to.
Salaries can run as long as it likes (Thursday & Friday)
Then Pacific Pact, then 2 small 20 Fisheries bills.
Sugar – O’Sullivan – If we agree to ad hoc increase you will find it hard to get Q.
senators to vote for reduction as a result of enquiry – No bill – Sugar to come to
Cabinet.
Bill on Insurance21.
(Wednesday in Senate – Statements on Int. Affairs, Defence.)
It was suggested that the adj amendment should be dealt with immediately but
how many rebels are there. Some doubt about whether labour members will vote
for the amendment.
11.15
Submission 121A.
? as to Section 31.
Approved subject to query as to this.
Deputation to Cba – Want to charter buses – Yes. Extra buses on route – but no
extra.
[Page 51]
Submission No 212.
Short statement to be prepared setting out the reasons why the government is
participating in the Company – necessary for increased supplies to Australia.
? Can’t the effort be made to alter the trusteeship arrangements.
? Any alteration in the royalties– w
‘Thursday morning’ is inserted above the line.
‘long title’ is inserted above the line.
20 ‘(Tuesday)’ is written above the line.
21 ‘(Thursday)’ is written above the line.
18
19
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 14
Paul to talk to Treasury about the capital aspects – raising of. Approve subject to
Treasury view on raising of capital. PM to make announcement after receipt of
statement.
Can it be “denounced.”
Menzies, McLeay22, McBride, Kent Hughes, Beale.
Treasury view & agendum 2 weeks.
–
Tuesday 10.30(?) –
Appointment of
Osborne
Chairman 5 yrs.
Mair –
3 yrs renewal.
Other vacancies
Appointment of Dunk. –
[Page 52]
[4–6 March 1952]
Cabinet 4.3.52
Submission 31 A
The Minister read the submission.
The comment was made that the figures did not justify the conclusion of 2d. In
reply it was stated that other groceries had gone up more in price than sugar. Case
of sugar industry and the price criticism are so far apart that we cannot decide it on
these facts. We can’t just accept either at this stage. There shd be an early enquiry
first – prove what elements of cost have increased sugar industry to consult with
Treasury and Customs. Pointed out that increase would put local price over above
export price. This would be the fifth increase without enquiry. Treasury says
figures do not justify more than ½ d. Increase so soon will lead to request for
frequent adjustments from butter and other primary industries. Treasury disagrees
with some of Treasury comments.
The industry is in a bad way. –
McMahon says we deferred action on wheat because we wanted to defer any action
which would have an effect on the C Series and there should be no decision which
could affect the August figures.
McEwen. we should not make a stab decision round this table – but all the
inducements are into the inessential industries. We should concentrate on the basic
industries. We should not adopt McMahon‘s view.
22
‘(6)’ is written above the line.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 15
This is a political issue in Q’land and we should be prompt. The Bureau of Agric.
Ec. could be brought in to help in a quick assessment of the position.
Sugar like wheat is as good as gold as a dollar saver.
P.M. I do not support 2d on the papers before us. It may be that agreement can be
arrived at as to a minimum increase and then the McCarthy ctee can get to work.
Consult with Customs, Bureau of Ag. Ec., and the Treasury.
Page. The industry’s real mistake was in asking for ½ d in 1947 instead of 2 d then
which was the proper figure at that time. They have always been behind the game.
The industry had a couple of days with Customs a week or so ago.
Anthony. You must take some prompt action to give relief.
[Page 53]
CSR say they propose to close N.S.W mills within the next couple of years unless
things improve.
P.M. The first consultations are interim. We will take the last price & we will
consider increases of cost since that date. The question whether they asked for
enough then is for the longer enquiry.
Treasurer. I do not agree with that. I would have a confirmation or otherwise of the
1949 case.
Holt. I agree with the P.Ms view – you make an interim decision & then you look
at the base in a longer enquiry. But is not the acreage regulated by the state govt.
But not only a
Treasurer. They have been new assignments recently especially to soldier settlers.
But some new assignments have not been taken up by people who have won the
ballot.
McBride. Apparently we can implement this by letter. No cost ctee can give a real
conclusion until our agricultural policy is decided. How much export can the
domestic market support. How will capital items be treated by taxation laws. These
things will be just as important as price – fertiliser, housing etc.
McEwen. Our only status in this is that we can put an embargo on sugar imports.
The Q’land govt could not fix a price itself for sugar and tell us to chase ourselves.
We are not principals.
McMahon. If the price increase relates only to the 35% we will be asked for a
subsidy.
McBride. 1927–39 – price progressively fell and production increased and this
shows that price and production are not inde dependent. CSR are doing it for the
same price but their costs are going up.
National Archives of Australia
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 16
Spooner. The price of sugar is likely to go up.
P.M. The Q’land govt never committed itself to the price.
Holt. The ctee should not be confined to the grower.
Decision. Reps of Industry, Treasury, Bureau of Ag. Ec, Customs – agreed
minimum.
Report within a fortnight.
Tell us what increase in price is justified by the increase in costs since the last
adjustment.
[Page 54]
What about the fruit industry. How would fruit industry be affected by any
proposed increase.
Constitution of major committee
Industry suggested a committee of 8 – but it was thought that this should not be a
group of representatives
McCarthy (chair)
Bell, Customs, Treasury.
McCarthy to have casting vote.
Terms of Reference
–
Approved.
O’Sullivan – to draft a press statement – perhaps reply to question in the house.
War Service Homes
There is a complaint of a breach of what was to be done.
Townley. On 22/8/51 we put in a submission. We were then committed to ₤16m
expenditure out of our ₤25 (later raised to ₤27). We were faced with inescapable
increase in max loan to ₤2750. It was pointed out that any delay in implementing
our recommendations would make it more difficult. The bill did not get through
until Dec. 11. By end of Dec. we had reduced expenditure to ₤2.3m per mth. At end
of Jan there had been an enormous run on purchase of old properties at the ₤2000
rate & this tendency continued in February. We then had to stop loans for this sort
of purchase unless we were to go over out ₤27m. I reported this to the P.M. This is
apparently because of our restrictive policy in lending generally, is forcing homes
into the war service homes. The estate agents are actively encouraging men into
this field.
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 17
Holt. To what extent can the C/w Bank help. It was doing a great deal of this
business before.
PM. We are having a paper on housing for next week.
Townley. The banks are valuing very conservatively – C/w Bank is going out –
insurance companies are not lending, co-operative societies are not going ahead.
The private members will not admit that this must be held within budget limits.
[Page 55]
There should be no priorities within ex-servicemen. But we must say there is a limit
under each category.
PM. We eased this out by ₤2m. Townley put up a notice on the party room and
there was nothing in the notice about a ceiling. We must state clearly that there is a
limit.
Townley. We are providing 3 times as much money & 3 times as many homes as
the labour govt did.
McEwen. Any other show would delay to such an extent that it was fitted in to the
budget amount.
McLeay. We should not adjourn and leave our own party in such a discontented
state.
Treas. What about giving the ₤3 now out of next years figure.
Treasurer 23 to discuss this matter further with Treasury officers.
[Page 56]
Cabinet 5-3-52.
Treasurer. Deal with our own problem first & then relate it to the sterling area
position.
Submission 214
The Treasurer introduced paper no. 214 & then read supplementary agendum.
(War Service Homes –
Cabinet cannot increase the amount on the budget. Cabinet is re-examining the
whole of its policies on housing to see what can be done. Agreed to tell members
that Cabinet will consider the matter in the morning.) Might run over ₤27 for these
3 but not others
23
‘& P.M.’ is inserted above the line.
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 18
1.
2.
3.
all existing clients commitments.
deposits where there is risk of forfeiture contacts before 25.2.52.
special hardship cases.
[Page 57]
Cabinet 524 .3.52
War Service Homes
The Minister reported that he was administering the department on the following
basis –
1.
to meet all existing commitments
2.
cases for where there is a risk of forfeiture loss of deposits on a contract
entered into before 25.2.52.
3.
special hardship cases.
P.M. read his proposed statement & this was approved.
Submission No. 214 resumed.
The UK wishes the cut to fall in the dollar & non-sterling area & asked it us for to
turn a deficit of ₤15 25 in dollar area to a credit of ₤35 26 for on a half yearly basis.
The Chancellor now asks that the credit be ₤35m not ₤15m over the second half of
1952 & apparently the deficit of ₤25m for dollars “within this figure” means an
annual rate of surplus of ₤95m instead of ₤70m.
We are working on the reasons why we can’t do what we are asked and indicating
how far we can go. We hope to have it after lunch.
PM. If we had taken action in December we would have been better off and in both
Treasury & Customs they failed to be aware of the gravity of the problem.
Spooner. I will not accept an allocation of imports by Customs, Treasury. The
administration within the Treasury is not as it should be. It is intolerant of other
departments views & will not approach them. I think we can get private funds to
come to Australia. The constructive departments must have some say in the
allocation of imports. The Treasury & the C/w Bank dominate the capital issues
control as well.
Treasurer. Whenever I have enquired into Capital Issues decisions I have found
that they were unanimous.
PM. Three questions –
‘6’ is written above the line.
‘35m’ is written above the line.
26 ‘15m’ is written above the line.
24
25
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 19
1. Will it be necessary to adopt a policy of import control?
2. If so, by what machinery do we use?
3. If so, what alterations in internal policies do we make to counter-act the
inflationary effect of import control.
[Page 58]
I believe we must license imports – we should obtain as much flexibility as we can
to avoid building up domes vested interests – & we then direct our minds to
counter-inflationary measures to replace the loss of this volume of imports.
K.H. And fourthly unless we treat this on the basis of a war-time economy.
McE. This is a first class crisis. You have to have import controls & internal
controls. You have to meet it by expanding exports as well. I am aghast at the belttightening approach. It was a different world in 1949. We need not be afraid of a
deficit. We are silly about making sabres and some other elements of our defence
expenditure. We may have to take on C/wealth price control.
Holt. I do not like a large scale control programme. I don’t think we can avoid a
post mortem. We must test our advisers. We would not have encouraged imports
to the tune of ₤600m a year. We were promised a sharp drop in imports in the
early part of this year by the Treasury. Gifford & Sargood told me that they wld
have practically no imports after June. Without import control there wld be a drop
of hundreds of millions after June. We wld do better to take the trade into our
confidence. I accept some import control as inevitable but only after full
consultation with trade.
Casey. The immediate problem is to reduce imports. UK wants to know the answer
to the Chancellor’s question.
Anthony. What are the consequences if we don’t make the cuts. What will our
position be in 6 mths if we take no action.
Harrison.
O’Sullivan. Proclamation wld bring in import control.
Wld have to block funds in London – this wld require exchange control.
Harrison. Can we not provide flexibility in
McMahon. We have not got enough information. Irrevocable letters of credit have
already been issued up to the end of June & the problem will solve itself.
[Page 59]
Hasluck. Our objective is to maintain the balance of payments.
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 20
Spooner. Imports are to be restricted – extent turns on balance of payments in
meantime it will be on ad hoc basis. We should have a paper showing the manner
proposed and the effect of this on our own economy. I wld not accept that the level
is x or y.
PM. We must decide on the target we are aiming it.
Customs, Treasury propose to bring up detailed proposals as to ways & means of
achieving these results. By Tuesday we should have this.
Spooner. Can we even determine the target even in a form of words.
…
Cabinet decided in principle to impose overall import restrictions in the interests of
conserving London funds and to announce this decision and publi make necessary
exe proclamations & orders at the earliest possible moment.
(Advised Dr Wilson 2.20pm
1.pm.
Resumed 2.30pm
Submission No. 213
The Minister outlined the facts in the submission.
It was suggested that P.M. should make an appeal to the people to eat less meat. It
was agreed to despatch cable to High C/m’s office London.
3.0pm. Wilson & Coombs joined meeting.
P.M. explained the decision & asked Gov to explain exchange matters.
Coombs. No bank will provide exchange except on production of an import
license. – Some goods are in transit but most of these will be paid for – We will
advise the Banks as soon as you say. Credits are quite high but they have fallen
somewhat.
Sterling from peak ₤37m Oct .to abt ₤23-4 in April.
Outstanding acceptances stand at ₤80m. Feb. figures are just as high as ever.
There has been a great deal of duplicated orders. The flood was caused largely by
the fall in demand in European countries and Canada.
[Page 60]
Although there are differences as to what the position is in June we are really
agreed as to Nov–Dec which is ₤120–130m.
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 21
Abt 1941 we had some deficit.
Before the war ₤70m was regarded as a reasonable figure – this compared with
₤100m imports a year.
We think of ₤500 as a figure around which it might fluctuate. We want 6 mths to 9
mths imports – to give you time to take effective action.
Capital money which has come to Australia for investment short or long term is
controllable because you have to sell the asset & remit proceeds. We have
controlled this & can do it fairly efficiently. There has already been some
withdrawal.
Leads & lags are much more difficult. We have lost a good deal of this over last 15
mths. We had ₤12m overseas deposits in Trading bank & that is now nil. So with
other banks. At the moment we are helped by the weakness of sterling.
We can trace money which comes in as such but capital coming in in the form of
goods (unpaid for) does not reduce our London funds.
The possibilities of reducing requirements for non import items
1. We have always allowed royalties, payments, etc to go – we have exception for
film royalties.
2. Travel – ₤10m in sterling area, in Europe ₤1 27 Total – ₤12m.
You won’t immediately have a great shortage of goods because we are overstocked, meanwhile the 28 demand is being reduced and so the pressure for more
factories is not as great as it would otherwise be. Also individuals are stocked up. I
don’t think that business failures are likely to exercise a very great influence on the
situation. I don’t believe that any soundly based firm is likely to be bankrupt
through paying its income tax. So long as our public & private investment program
are high we will not have…
[Page 61]
Bank advances will not come down until imports fall off. While banks should not
push customers to bankruptcy, in the past banks have been too ready to lend. But
at the present time they don’t need encouragement from us to be restrictive. But if
we relieve them of anxiety they might relax on the expanding customer, & I would
not like to offer them too much assurance about getting out of it too early.
__________________
Coombs left at 4.00pm
Wilson remained.
__________________
27
28
‘USA $2.8m’ is inserted above the line.
‘local’ is inserted above the line.
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 22
The Cabinet discussed the reply to be made to the Chancellor.
Wilson. When we were in London a statistical ctee estimated second half of 1952 a
net drawing of ₤35m sterling on all non-sterling countries and we were asked to
turn that into a surplus of ₤15m. We did not accept this and pointed out that the
distinction between the two halves of the year was unrealistic. They now suggest a
revised target, raising it from ₤15 to ₤35 for the second half of 29 1952, and secondly
divided the ₤35 into two parts – deficit ₤12 ½ with dollar area and if you do then go
into credit ₤47 ½ m. This is even more difficult because we are already heavily
committed in the dollar field.
(At the conference the B.O.T. wanted no restrictions on U.K. imports altho’ we said
we had an overall problem. Treasury did not agree with B.O.T. The targets are
expressed entirely in terms of non-sterling area. We should send some message to
U.K. that we are going to affect British trade before we make an announcement.
You have now decided to impose licensing all over. If I assume a target of ₤500m 30
you would get this picture if it is worked out the way Customs officers think it will
operate –
A
Target B
Target
-47 ½
Nil
-75
Nil
1951/52 aifd ₤2231 of ₤122 with non sterling area including dollar area
Estimate 2nd ½ of 52 "
" ₤25
+₤44
-47 ½
-15 ½ +22 ½ +59 ½
" 1st ½ of 53 Surplus
₤60
+₤44
-11 ¼
-15 ½ +71 ¼ +59 ½
Full year 52/53
+₤35
+₤88
-58 ¾
-31
+93 ¾ +119
Compare Chancellors message
Divide this into
A. dollar area
B. balance of non sterling countries
[Page 62]
Look at dollar area first
For the first half year
We are set a target of – ₤15 ½ m and our deficit is likely to be ₤47 ½ m. On the
second half year we are close to the target – and over the whole year we are short
₤27 ¾ .
On the32 non sterling – we are short abt ₤26m on the whole (119)
( 93 ¾ )
( 25 ¼ )
This assumes that you don’t recall or cancel dollar licenses.
The psychology behind the Chancellors message.
‘calendar year’ is inserted above the line.
‘f.o.b. imports’ is inserted above the line.
31 ‘deficit of’ is written above the line.
32 ‘other’ is inserted above the line.
29
30
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 23
At one stage in the business sessions we got a hint that the cash may not be there.
But the reserve today is lower.
The Chancellor We are faced with the possible break up of the sterling area if we
say No. But a prudent chancellor may decide to stop funds. We would have to
conduct our own financial affairs. We wld sell as much to Britain but we would
have to bargain for so much gold & so much dollars. There would be a nasty period
while we were learning the new technique. Whether she wld be better off in the
long run is not clear. It would be a great blow to prestige of Br C/w. Australia &
UK were equally spendthrift. India had crop failures for 2 or 3 years running. Their
sterling balance had been drawn down but they still have heavy funds. We can’t
complain about the attitude of Ceylon, Pakistan or India.
There are alleviations – eg, 1. long term borrowing from Int Bank. That will not
help us much in ’52 even if we got more flexibility. It would be hard to speed it up.
You don’t get the money until after you get the goods. You may be able to get a
loan of money rather than a loan about goods. 2. possible drawing from I.M.F. We
are now drawn ₤20m & we have not repaid. There is a new policy of short term
drawings – 3–5 years. The fund is looking for a borrower on these new terms. We
had been thinking that we should begin to repay. The extreme outside limit wld be
$25m. 3. Most of figuring has left out the sales on gold. This is worth $35m a year.
We were going to use it for a capital purpose – (a) repayment fund or (b)
refinancing of $71 maturity. Mr Eugene Black has rather adopted the $71 as
[Page 63]
a matter on which to offer advice. He wants us to repay it – refloat some, refinance
some from Switzerland etc.
London wanted to know what we were going to do with our premium sales. They
wanted at least the proceeds in dollars.
I think that we should not ‘call’ our loan and would use it for the $71m.
The Bank of Eng has a nest egg in the Stabilisation Fund & is looking for a dollar
investment. Sir Geo Bolton might buy up some of our loan. Selling aside the
possibility of calling the loan.
We could use the $35m dollars as a contribution in the second half of this year.
Alternatively we could devote a proportion of our gold production to the
repayment of the old & new loan from the I.M.F. But one or other of these offers
some relief in the second half of 1952.
We shd tell Chancellor what we are doing on the overall it does not give a good
picture for 2nd half of ’52, better in ’53. We are bending our minds to other
methods33 but leaving it imprecise in just what way we are going to do it.
33
‘perhaps even mention particular ones,’ is inserted above the line.
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 24
Treasurer. I don’t see how other countries can do it.
Wilson. We are going to fall down badly on the dollar front because we have
commitments already made.
McBride. Are the UK assuming that we are going to use our gold money.
DM. Apart from our premium gold we are stacking up ordinary gold reserve.
Wilson.
1951/52
’52
’53
For sterling
₤394m sterling
- 68m
+6
- 62
Townley. Is this not just another temporary expedient.
Wilson. There is a belief that it pays off in the interests of the Br. Economy to keep
sterling inconvertible & manipulate it. As against this
[Page 64]
there was strong support for convertibility in the British press.
Wilson. The figures and targets quoted for non-sterling are net figures, but if you
take the same assumptions – the sterling figures are
1949/50
50/51
51/52
52/53
1949/50
52/53
Total Imports Non Sterling
₤Am.
150
➼
228
➼
420
➼
235
➼
Total Imports Sterling
₤Am.
388
➼
514
➼
680
➼
265
➼
Non sterling responds most slowly – take dollar figures
Dollar
Other countries
₤Am.
like Japan
78
72
86
142
141
279
110
125
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 25
The rest of the war It is true that we might court retaliation – eg France & Belgium
but taking the non-sterling area as a whole we sell more to them than we buy to
them.
Casey. We can’t get out of this without the help of the U.S.
U.K will have a fit if they knew our figures & their affect on the UK trade.
[Page 66]
P.M. What is the UK. thinking about sterling imports into Australia?
KH. How far are we as tied to sterling – we are34 expanding economy & should we
be tied to a contracting economy.
P.M. If we are on our own for dollars we will have no dollars they will not buy our
meat or butter. In addition the balance of trade is our business.
KH. As to dollars we are in no position to decline as they can cut us off. On the
other we have to make cuts for our own reasons. But if in order to overcome our
general trade balance we applied the same cut to UK as to Japan as with other
countries they would have definite cause for complaint.
PM. Suppose we could achieve their target in the non-sterling area & we still
wanted to get down to ₤500.
Wilson. In 2nd half of ’52 we are short of
Casey. Wilson. I do not think we could meet the UK. request by cutting imports
but perhaps by using our gold.
McEwen. We have not heard a word about increasing our earnings. In two years
we should be able to increase them. Why don’t we produce more gold & wheat.
P.M. Are we going to commit ourselves to a specific target. We must tell him the
bit we have decided – He may have some observations about the target.
What are our general suggestions about the method of import licensing. I don’t like
the mathematical approach. What about starting off with a month or two month or
3 mth holiday &.
Resume 8pm.
[Page 66]
Resumed 9pm
34
‘an’ is inserted above the line.
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 26
PM. First question is whether we accept a target. I told Cochran that we did not
like tying ourselves to a target.
We are taking power to license all imports – preservation of [unable to transcribe
a word] solvency, reduce dollar imports to actual necessity – reduce non sterling to
max extent consistent with non s exports – & will have to reduce sterling imports to
a limit consistent with a prudent level.
35
Spooner. We should warn them that this is a big cut on sterling imports.
PM. This has been done by my talk with Cochran tonight.
O’Sullivan. We should preserve the position that we should are now cutting
dollars to a very substantial extent.
Wilson. Their figures which they will be looking at are the following.
1949/50
50/51
51/52
52/53
₤A.
(includes ₤13 ½ m from dollar loan)
₤78m
₤86
₤141 – In March ’51 you put 6 items outside the budget. In 4
₤110 – qrs on those 6 items – were ₤30m altho’ they
will not all come in – Timber, Steel, 36 Grains,
Aluminum. They were put back on quota about a
month ago.
Casey. Our imports from sterling area will be only 40% next year as compared
with 80% from dollar area.
PM. Wilson. Customs says already you have cut the non essentials out of the dollar
side.
McBride. I don’t think that we should put down a target figure but we should be
able to cut down on dollars if we
P.M.
1. Complete control of imports by licensing.
2. Overall target37 to preserve 38 [?unable to transcribe a word] solvency.
3. Reduce dollar imports to limits of actual necessity.
4.
"
non -s39, non -d40 imports to greatest pos. ex41 consistent with
maintenance of export income.
‘Advise the Chancellor along the following lines.’ is written above the line.
‘Basic’ is inserted above the line.
37 ‘is’ is written above the line.
38 ‘Aust international’ is written above the line.
39 ‘sterling’ is written above the line.
40 ‘dollar’ is written above the line.
41 ‘possible extent’ is written above the line.
35
36
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 27
5.
Nec42 to reduce S. imp. most rel. to ex43 necessary to preserve overseas bal44 at 45
prudent level.
To a large extent non-ess have already been cut down in non s. & d. up & ∴ heavy
cut in sterling imports is inevitable. – which concerns us or you
[Page 67]
We know that your problem is our problem etc.
Treasurer. I wld not give them any figures – let them ask for them if they want it.
Casey. Shd we not say sterling imports have reached a very high.
Add to para 5 We point out that s46 i47 into Aust were (set out)48
It will be obvious that if we are to get our imports (now – ) down to49 exports (now
– ) very cut in imports is inevitable.
McBride. C/w Rlys bought from dollar area because delivery dates were better.
Harrison. Let us agree with general draft & leave it to P.M.
P.M. I see some advantage in reminding them of growth of Br. imports in Aust.
Agreed to add addition to para 5, set out above.
PM. The next question.
Tell banks not to issue letters of credit tomorrow.
Wilson. Give UK time to get message off.
We will probably get re-action by lunch.
We get our formal reply away then.
Tell Banks to defer letters of credit.
Gazette order on Satdy morning – statement on Satdy evening press.
Agreed. –
PM. Let us turn to the instructions to the committee drawing up licensing
instructions.
McEwen. I think it ought to be individually selective.
‘necessary’ is written above the line.
‘sterling imports most reluctant to extent’ is written above the line.
44 ‘balances’ is written above the line.
45 ‘minimum’ is inserted above the line.
46 ‘sterling’ is written above the line.
47 ‘imports’ is written above the line.
48 ‘3 yrs’ is written above the line.
49 ‘our’ is inserted above the line.
42
43
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 28
Casey. Should not the test be unemployment in Australia – ie we let components
in.
McEwen – Someone from Commerce should sit in watching that you don’t damage
export industries. –
McBride – And Defence Production & Development.
Casey. The degree of stockpiling should also be taken into account.
McEwen. What we shouldn’t do is give every one a percentage of a base year.
Wilson. Staff & administration is going to be terrific. At first they must have an
automatic system so that the local collector can get the show going for the first
couple of months
[Page 68]
when you come to criticism of particular items–
If someone is held up for a few weeks it would be a good idea anyway.
Hasluck. What are we going to say if we are asked about petrol rationing.
Kent Hughes. We must get a decision on the validity of the Defence Production50
Act. The whole problem arises out of our the worlds preparations for war.
McBride. If we were forced into petrol rationing the High Court would not lightly
throw it out as unconstitutional.
Meere. Our previous experience is that a quota system can be operated with at
each port. The only way to start it off is on a quota as far as possible. Some lines like
capital goods do not lend themselves to a quota system. The importer knows where
he is under a quota system. Overall licensing is a big operation. Dollar & Japanese
licensing need only be intensified. Suppose you start with a quota system on
copper. Measuring imports on 1950/51 would be the best basis we can get – 3 mths
licensing period – wise not to prohibit completely – there will be no discrimination
because of G.A.T.T. but UK will probably get a little more of the non-essential
trade, no embargoes at the moment – we would have to take what I.M.C. gives us –
eg copper – some raw materials would be on administration, so would tinplate–
motor vehicles, unassembled chassis 60%, bodies & panels51 in 20% – special
defence materials would have to be on administration probably – petrol under
administration but on 1950/51 basis, wool-sacks etc under administration & you
will have some unemployment I feel sure – goods on order do not necessarily
justify a license.
50
51
‘Preparation’ is written above the line.
‘& complete vehicles’ is inserted above the line.
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 29
P.M. We will have to follow this up with our a stiffening up of the anti-inflationary
program.
But I hope we won’t stay too long in the quota system. Start off on quota basis but
let us establish a small policy ctee as well – a good man from each of relevant depts.
[Page 69]
Harrison. This will create an extra-ordinary amount of unemployment – we will be
short of the raw materials in many cases.
Meere. I can create a sort of holiday by administrative delay.
Agree to customs proposal & discuss ways & means of getting a principle of
selectivity.
[Page 70]
[11–12 March 1952]
Cabinet 11.3.52
Exclusion of Chinese re
Bringing in Japanese divers in Broome. Holt to bring matter up.
Submission No 222.
The Treasurer read the Submission.
K.H. Holt. But a lot of our expenses are really capital expenditure & should not go
on a revenue budget.
McMahon. But you cannot have savings if there is very heavy taxation.
K. Hughes. We are not working hard enough.
Casey. We were not warned in time on imports.
Treasurer. We.
P.M. As soon as the loan closes we ought to have a loan council. It will have to be a
better cut than before.
K. Hughes. Can federal depts be instructed to send52 estimates to Price.
Harrison. There is a spate of acquisition from P.O.
52
‘works’ is inserted above the line.
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 30
K.H. Defence, Civil Aviation & P. Office.
Treasurer. The present paper is only introductory & for information.
P.M. A review of the working out of the various policies is being prepared, credit
restrictions, capital issues.
Treasurer. You put our revenue into our sinking fund which becomes a lender to
the states.
__________________
New Zealand
PM– We have never restricted N.Z.
Notionally apply this – but administratively free.
No possibility of Br. re-exports.
Treasurer. But what is N.Z. going to do.
P.M. Apparently they are not going to license imports.
McLeay. They have announced a cut today.
P.M. Let us have a cable to Holland, asking can he tell what they are doing.
[Page 71]
Petrol
Petrol. P.M. points out that there is a substantial increase in petrol consumption. It
was suggested that a substantial increase in duty should be put on.
K.H. If exchange was running free there wld be a substantial increase in price.
Spooner to bring up a paper on this urgently.
Diesel use has increased enormously because of the absence of coal.
Turn-round of ships would be the real solution.
Can we afford ₤135m out 53 of ₤660m.
George to bring up a paper on transport – ?
No action on petrol until a direction from P.M. or Cabinet.
__________________
Cement – K.H. In Victoria not one bag of local cement is allowed for anything
except housebldg & government construction. The position is better in NSW. So
there will be trouble if you reduce it to 20%. This is very special. The have to keep
construction jobs going continuously.
53
‘out of’ is written above the line.
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 31
Submission No 220
Treasurer read the Submission incl. App. C.
McBride recalled that the reason given before for not raising the objection
exemption was that people were not allowed a bigger exemption on income tax. –
P.M. suggests that do not attempt to decide these issues separately.
Submission No 219.
McBride– If anything is as done it ought to be spread over the 5 years.
Harrison. I do not see that there should be any difference between what is done to
the trader and what is done to farmers, where there is an insurance payment.
Treasurer– Trader puts in stock at cost or market, but the owner of livestock can
put it down at a minimum figure. Thus there is an artificial margin between this
and the insurance value & he has to pay a tax on the apparent profit.
Unless the man is a dealer he wants to keep his stock values even
[Page 72]
but if he is a dealer he wants to keep the values up as high as possible.
Treasurer recommends the five year proposal.
–
till 2.30pm.
Submission No 219 (contd)
Chifley made some arrangement about 1947 for bushfires in Victoria. He waived
provisional tax & deal with all cases on a hardship basis. It was objected that it was
restricted to primary producers & extended to all livestock.
It was suggested that the alternative set out in para. 33 be adopted.
This applies to all livestock insurance recoveries – whether from fire or flood and
drought if it is possible to insure against these latter two. So far as livestock is
concerned.
Agreed.
Submission No 221.
Considered a scheme to be described as Wool Sales Deductions in reverse. This was
rejected.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 32
It was pointed out that taxable income is down 40% & this would reduce his tax by
about 60–65%. You will still be overtaxing to about ₤58–₤60m 54 this year55 It was
said also that over-taxing is in many cases of the order of 250% to 350%.
A/G questions why C/w cannot grant extension of time for payment under section
206. This is said to apply to both Tax & provisional tax. Suggest that C/w should
consult with legal officers.
Proposal in para 29 agreed. Tax & Law dept to confer as to whether this can be
done administratively – or whether legislation necessary to strengthen the
discretionary power rather than a statutory right. He is to defer the amt by which
51/52 exceeds etc – subject to max of 40% –. Where C/w is satisfied that there is a
declining income. This applies also to wool & wheat man whose composite income
is down. ?Should it not apply to all taxpayers. Res Some connection with wool
growers to be made – say 10% of his income.
Announce that some scheme is in mind to deal with self assessment to show that
you are not thinking only of the wool grower.
__________________
Early announcement to be made by Treasurer.
[Page 73]
Hasluck. When we were justifying provisional tax we sd this was pay as you earn.
Do we not sho say now that it is different.
P.M. A permanent scheme of self assessment would look after this.
Return to Submission 220
Recommendations 1 & 2 agreed.
Cabinet 12.3.52
Harrison. SMH & other papers are really concerned abt private taxation. Should
we not also look at this question.
Fadden. I have have private & public Co taxn to exper ctee & this will come up at
general review of taxation.
PM. When will this be? It is common ground that loopholes had been stopped up
but that we had gone much further.
Treasurer.
56
Follow this up.
‘or is it ₤32m.’ is inserted above the line.
‘which will have to be credited next year.’ is inserted above the line.
56 ‘I will’ is inserted above the line.
54
55
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 33
__________________
Holt. Are you proposing any cut in paper imports.
P.M. Packers case is that we should deal with tonnage not value – but he is willing
to accept some commodil cut.
Anthony.
Submission 168B
The 22 ships on order – 6 yrs – ₤12.7m.
We have 78 ships obsolete & Cos. will have to buy 20 or 30 ships as well.
Tasmania is not being offered any ships–
Reply – private owners are being offered suitable ships for Tasmania.
__________________
Anthony. Subject to general terms.
McLeay. All the terms are to come back to Cabinet.
P.M’s dept to be left off.
–
Sale on book value. –
D.C.L. Williams to go on instead. –
Suggested that a ship be offered.
Anthony is concerned about shipping on Australian coast – likely
[Page 74]
to that private interests will not be able to do the job.
Submission 217
…
Casey. This is elementary electronics – I wld be for a decision on defence
electronics.
Treas – We cannot add to our works program ’53/’54. Opposed to anything that
adds to this.
Anthony. I am not enthusiastic – I wld not like an announcement to abandon
television. Defer for time being – instructed to bring back at more appropriate time.
However I do not agree with Casey. They are Proximity fuse is based on same
principles & many others things also.
McEwen
–
Lead & Zinc
₤200A. for 6
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 34
–
₤65 Austn
Elec Z 57 of metallic zinc, & ingot lead Ass. Smelters – & these two Cos have carried
whole bundle of supplying local market.
Mt Isa & Lake George export whole production in concentrate form (zinc) & lead
bullion.
Last year BHAS & E.Z. has supplied reg. at ₤13m less than export. Mt Isa wld have
borne abt ₤2m of this.
We have not exercised export control – BHAS & E.Z. have attempted over years to
get this corrected – occasionally kept local market short. Chifley got a local rise in
price58 & a guarantee of x tons for 80,000 tons lead, 52,000 zinc & Mt Isa to make a
financial contn to the other Cos. This was a deal for a year. At the end of the year Mt
Isa withdrew just as we came into office.
In 1950 2 Aust Cos protested, threatened to shorten market – State prices people
asked us to impose export controls. I then with Cab approval & at request of States
negotiated a deal on 50,000 tons lead, 52,000 tons zinc on a price of ₤65 a ton for
both. This was based on cost of 59 reduction. This deal ran out60. We insisted States
calculated cost of prodn ₤71. ₤69. The Cos settled for ₤65 because they didn’t
[Page 75]
want their books examined. The Cos are now pressing this.
Tiawan has sd (I think with authority) they want me to negotiate a price Cos are
saying ₤8561 Oseas ₤205–210 lead, ₤210–₤215 zinc.
They want Mt Isa in. – Their costs are higher.
Proposition now is that PM sees [unable to read name – see end of page also] –
head of Mt Isa Co – controlled by American smelting & refining altho it has no
Austn capital & say to him Govt is not happy abt this & try to persuade him to come
in. But if he won’t be persuaded can we say to him (not an equalisation scheme
which involved a lot of examination of books as was once suggested) we will do
like we did for copper. Something was to be exported to Mexico & permit was
given on condition that copper came back.
If you won’t play we will attach a condition to export permit that you return to
Australia or otherwise provide in Australia the lead & zinc. They wld then buy
enough at f.o.b. export prices & it would end up in a financial contribution. Mt Isa’s
financial contribution if local price is ₤100 & domestic ₤200. They wld 15,000 tons at
₤100 = ₤1½ million.
‘only’ is inserted above the line.
‘₤22-35 lead, ₤40 zinc’ is inserted above the line.
59 ‘pro’ is inserted above the line.
60 ‘in December last.’ is inserted above the line.
61 ‘is justifiable’ is inserted above the line.
57
58
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 35
Treasurer. I support this proposal. One in all in.
K.H. Alternatively you can lift the local price up to the export price.
Casey. Does the 50/000 lead & 52/000 zinc sufficient for local market.
McEwen– Zinc is I.M.C. & lead is not. There is a greater demand here for them
because of the low price.
P.M. The States have never done anything to gouge out the hoarded lead.
Spooner. I agree with the proposal – but Mt Isa does reflect tremendous credit on
the company. They represent big U.S. capital which we need badly. K. will consider
his shareholders interests.
I hope it won’t react against the copper project and any other project.
Harrison. He has had a lot of facilities – but & shd pay something back.
O’Sullivan. Over 20 years it has paid only 3 dividends – they have put back returns
into the district. Rly will be bkrupt if it was not for the carriage of ore. Listen to
what [?unable to read name] has to say.
[Page 76]
Casey. Isa was under a price disability for a number of years – which BH did not
have. The degree of profitability should be brought into consideration in assessing
the degree of sacrifice. We could perhaps attract ––
They have $250m liquid capital. We may discourage them.
McBride. Why do they export it as concentrates.
Anthony. I support the proposal. It is basic to holding down our costs.
Treasury. The recognized the principle a couple of years ago. I am an original
shareholder. They must make some contribution.
P.M. Suppose we don’t pursue this with Mt Isa, what will B.H.A.S & EZ do. If they
say One out all out. Prices go up or we have to exercise compulsion over you. Can
we do that & not do it to Isa.
(Land Tax – Ask Ctee to look into circumstances of last years valuations. Should we
wait until reply is obtained from Ctee or make it known now. Decided to wait.)–
Hasluck. There are lead mines in WA – now gone out of production.
(Holt. Basten report – are we going to open negotiations or now with unions etc).
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Page 36
McMahon. We should not go beyond negotiations. By We are in a mess with
differential prices. BH Cos let us have lead & zinc cheap because it would reduce
their profits which would otherwise be embarassing.
Mt Isa passed its dividend last year.
Casey. And they are concentrating on copper production.
McEwen. Mt Isa took a debenture – they had no dividends but they had interest on
debentures. They have now turned it into shares.
Submission 218
Approved. subject to62 views of Act Advisory Ctee –
Party meeting – Monday 21st 63 2.30.
[Page 77]
[17–18 March 1952]
Cabinet 17th March 1952
Submission No. 229
–
Economic Policy March ’52
The Treasurer read the submission.
Submission No. 223
–
Housing & the Economy
The Treasurer read the Submission.
Holt. I think that the no. of bldg permits has fallen off.
P.M. This review does not tell us what is happening in the lst 6 mths.
Spooner. There is a greater diversion to commercial buildings I am told.
Submission No 226.
Submission read by Mr McMahon.
The question was asked whether Att. D. included loans to banks or was a reduction
of the a/c strictly sensu.
To what extent is special account a proper control.
62
63
‘P.M ascertaining’ is inserted above the line.
‘April’ is inserted above the line.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 37
There is a contingent liability of ₤50 – or ₤60m that could be called up under the
formula.
Apparently they are not entitled to have any amount repaid. There are some
negotiations with 64 the C/w Bank and the trading banks with the object of altering
this uncalled liability under special a/c legn.
Query Att. C. Why are the C/w Bank figures not published.
Submission No 227. –
Cabinet members read the Submission and also the next.
Submission No 228. –
McEwen. There is a confusion. We are supposed to be short of money & we are
supposed to have an inflation which is too much money.
Holt. So much expenditure relates to goods that are not consumable.
P.M. Let us discuss the implications of the main paper. Some of the later papers are
defective – eg, housing is too much out of date, 6–8 mths old. Have supplies to Coop & bldg societies been cut off as I am told. I feel that there is a recession in
demand for housing – if so – can we prime the pump a bit in the direction of co-ops
& bldg societies.
[Page 78]
I want to say something about defence – it is a mess – impossible in terms of
finance & also materials in the time.
We have an impossible procedure – the cabinet ctee is not competent to decide.
Some are relevant to the immediate future & some are not. We have been stepping
up imports.
Now you have reversed direction what effect do y has it got on your program & let
us tell the public of its this – development etc. We need an overall reconstruction of
our ideas on all these things. The Treasurer will produce a surplus on paper but in
reality it is down the wind. We cut the states back. We can’t underwrite again next
year unless we are going to make spectacular increases in taxation.
Some of the state works are somewhat irrelevant – 29 Sydney rlys.
On housing we have to consider housing in relation to production & we have to get
these things straight in our minds.
64
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If we agree that our revenues will be down and our expenditure up then we must
say to the states we will be prepared to carry out proposals a, b, c, d, e & f. This
involves a new approach to the Loan Council. The L.C. can vote for what it likes
but it can only get what the loan can give. We can say we will help to find money
for certain projects and those only.
I have never been content with the official view that you can’t produce a budget
before August. Budget – May ’39.
Page. Bring the states back to the agreement – let the C/w take its fifth if there is
no agreement on the allocation.
Holt. The fundamental thing is “What is the state of the Australian economy?”
These papers smell of Canberra – but are they right. Are we in an inflationary
situation, or a deflationary one.
P.M. I agree. We must consider the validity of general paper.
[Page 79]
Spooner. We have either to hand back taxing rights or else take full control.
Holt. On the general paper. – It deals too much with inflation in the broad. But in
the consumer field we have a deflationary atmosphere. There is a shortage of basic
materials but the other side is time, money is tight. There is a cost inflation, the
goods are there. This position can move suddenly into recession or depression. We
were moving there fast. We had notices about dismissals. [unable to read] were
putting off 2,000 out of 6,000. This has now been checked. Ford’s Geelong are quite
certain that they will be putting off men if our import policy is proceeded with
without modification. Don’t take too much notice of social service payments. The
employees put off are those who are not entitled to payment. And I could not fill
our vacancies with people not in a job. We must beware of saying we are still in
inflation. There are still heavy falls on the share market. 20% fall in attendance on
race tracks.
Gardner & Lang say their values are down 25% on last years figures. On average
weekly earnings will be lower than last year – less overtime – Costs are likely to
remain high for some time I question whether you should apply the same
measures. It may be that the long term position is inflation along with some short
term deflationary movements.
It may well be that in certain selected sectors you may have to put more money into
the community – eg. housing.
Treasurer. I hope we will put some conclusions before Cabinet tomorrow.
Hasluck. You have to think of the immediate effects of our import restrictions. Last
year we run down balances by about ₤600m – we had the advantage of an extra
₤600m worth of goods.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 39
Holt. The textile people will not be able to liquidate until about December.
[Page 80]
PM. Put our imports at ₤1200m. Next year say ₤600 of the ₤1200m about ₤250m
were stocks – So this years consumption – ₤950m and next year can be ₤850m. The
difference there is not ₤600m but ₤100m.
Holt. You have also to consider that demand is largely satisfied – eg, carpets,
motor cars.
Hasluck. Apart from the goods ₤600m represents a purchasing power which we
will not have this year. Internally we have to spend at a rate ₤600m less than we did
last year. Somewhere in the community someone will have to go 12% shorter than
he did last year – assuming no fall in price.
We do have to impose something equivalent to a 12% economy.
McLeay. This is following the 1929 period. The real problem is rly rehabilitation,
harbour facilities etc. What is stopping us is cost. We have no hope of improving
the condition so long as we have 35hr week – Go slow – lack of incentive. But why
should we shy off 44 hr a wk. The longer we leave it the longer we deceive
ourselves.
Casey. 4 problems – 1. budget, 2. domestic inflation, 3. our balance of payments, 4.
sterling area b/p.
Our efforts on 3 & 4 run counter to both 1 & 2.
I am disturbed about lack of information on economic trends – perhaps the
Treasurer has it. We do not hear until the situation is acute. Can we trust our
advisers. C/wealth Bank & Treasury. Gov of C/w Bank always seems very
cautious. At some time we will be faced with grievous shortage of goods in Aust.
We can only face the situation if we can get overseas loans. We can’t get it from UK,
Switzerland. We should be trying to get more than $150m if we can. Even the $5–
6m from Switz. – try to get something out of the U.K. I am told that Eildon is
practically shut up now. I suspect that we don’t keep the states informed on the
trends. Last year they got a shock when they came to Canberra.
[Page 81]
I know that the S.E.C. suddenly discovered the shortage of money. On an official
level the state governments should be kept in touch – monthly, perhaps weekly.
Treasurer. At least 4 conferences have been held between Treasury officers since
we took office. They disbelieve what we say that about the loan market.
P.M. They have the basic information in relation to loans.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 40
McMahon. I disagree with Treasury. Inflation has 2 phases, housing & industrial,
there is a view that this is under control & if you can control food prices for a few
months you wld be all right. The big thing we have to face is food prices – falling
supply and increased demand locally & elsewhere. Our fall in living standards will
be greater than 12%. We have to consider development & agriculture. Now that the
position is unmasked we should tell the people that 40 hr. wk & Communism has
brought us to our knees and we will have 20% fall in our standards – and let us
look at wheat again.
I would encourage increased production even if it means increased inflation.
P.M. Suppose we agree to an inflation of 10% p.a. to get increased production. We
need capital, to get it we need a stable monetary system. How do we get the capital.
McMahon. It is not necessary to get great capital to get the production, give the
wheat grower an incentive.
PM. But we have to establish new farms etc and this requires a lot of capital. If we
could borrow in big licks.
Adjourn to 8.30pm.
[Page 82]
McBride. We set out to curb inflation – it was beginning to show results. There
have been complaints as we might65 expected and altho’ we need to watch results
carefully we should not run away from our original objective. Now we have the
import restrictions. We must not confuse the two issues. We can do much in our
local economy: we can do less with our overseas situation. We realised when we
undertook defence, migration & development that we could not do it w/o overseas
assistance whether that assistance was by borrowing or by increased prices. The
problem is basically psychological, the public psychology has been corrupted, we
have emphasised that working people did not do a fair days work but it was
equally true that management slacked on the job. Managements responsibilities
need to be brought home to them. The last Tariff Boards66 report said that industry
was inefficient. For an all time low the administrative block in Canberra is a record.
This is all a result of cost plus – & this is right under our eyes.
Over the week-end I discovered a man who had more steel in his yard that at any
other time. The best way to bring us to our senses is a little necessity. But now with
import cuts the pressure is reduced. But unless we make it clear to the people there
will be no psychological improvement.
We can expand ₤A. at will but we can’t do that with other currencies. Other
countries faced with hard facts have told their people that unemployment would
come about w/o U.S. aid. And the same thing is now true of us. We need ₤100m
65
66
‘have’ is inserted above the line.
‘general’ is inserted above the line.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 41
worth of petrol products. If we cut these out there will be unemployment. I doubt
whether we can cope with our problems w/o substantial overseas assistance. I do
not accept that we are going to have 10% increase in costs each year and at the
same time expect overseas borrowing. If the whole world’s costs were going up by
10% p.a. it would not matter but in U.S. prices are practically stable in spite of all
the inflationary effect of their unrequited exports and their defence expenditure.
We must not run away from our problems.
[Page 83]
We must put the States in full possession of the facts and then, but only then, give
them to the people.
We must have a flexible program of capital issues & advances but we should not
move at the first whisper of criticism. But having set our house in order then we
must seek and obtain overseas assistance. I am not convinced that we will fail to get
assistance from U.S. & U.K. I don’t think that U.K. has begun to realise what these
restrictions mean to them.
PM. After the London cfce they should have had a good idea.
McBride. I am thinking more of the manufacturers and business community. They
have panicked now.
Unless business is slackened off you have not got control of inflation & you can’t
get on with development, migration & defence. People could go on for 12 mths
with much reduced spending on things other than food. In U.K. subsidies have
been removed & that is not like that our rigidities because of the ‘C’ series index.
But that is our system. We must not panic as soon as we get a little bit of criticism.
We must expect dismay, discontent and hostility unless we explain matters fully to
the people.
PM. Assume we will retain our broad policy we have a few hard problems – our
approach to loan expenditure We have to have a figure in our minds. Secondly we
have cut imports, the sequel is not only capital from abroad but also increased
exports, wool cannot be changed much. We have wheat, meat, butter, sugar.
Suppose we said it is a matter of importance to get them up and that requires an
alteration to prices – wheat at world prices, butter on local market, abandon long
term meat contracts. They then have a counter-effect on the inflationary situation.
What is our number one objective increased production or financial stability. There
is a powerful argument for stabilising costs. If we decide to do this we should
intensify our measures to counteract the import
[Page 84]
restrictions. The other program involves a rising cost level.
McBride. Surely the elements of cost must be ascertained. You have to get an
acceptance of an order of priority in public works – you should rehabilitate rlys
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
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instead of doing Eastern suburbs rly – that would put down freights, it would
reduce trucks on the roads & so on. That would help to solve some of your rising
cost problems. Price is not the only thing, you can have an increase in output by
proper organisation & good equipment. If I give a man a good tractor and scoop he
does a good job. We must get management alive to their responsibilities. That is
what they do in U.S. & Canada. Look at what B.H.P. achieves they are satisfied
with their men’s output.
P.M. One aspect of this state matter. We had a special meeting of the Premiers. I
told them there were limits to our resources & proposed committees on power etc.
in an order of priorities. I had a meeting with the chairman and every committee &
every state representative was instructed that in no circumstances could he agree to
priorities of any sort.
Spooner. It was a new move. Each officers had political instructions. There was a
good deal of talk that did not get into the report and you may find the soil has been
well prepared. There is not enough talk between federal and state committees
ministers. The task has to be done more on the political level than on the
professional level.
Page. There is a great deal of govt expenditure that does not have any immediate
return. We must face up to inflation as the key problem. Otherwise we will never
be able to produce competitively. Gradually the C/w has refrained from using loan
monies for C/w purposes. But C/w is entitled to 1/5 of what is raised. If we add to
this 1/5 and add our overseas borrowing and use this for the purpose of
development projects which the C/w approves.
[Page 85]
We never had anything to offer before. We have to get the general cost of
production down. We have practically got the basic wage problem beaten. We have
two years of imports into the country in one year. This would help us in our
negotiations with the International Bank. Farmers are more concerned at getting
costs down and than prices up. If we left credit restrictions on housing you would
move housing out of the government now. We must get into a position where we
can buy imports instead of doing without them.
McEwen. We are in quite a critical situation. Labour said we were planning a
depression. We were muddlers. Korea and the wool prices have combined to create
a difficult situation which lends colour to what is being said. We must not misjudge
the situation either politically or economically. Suppose we lost the Senate and then
were refused a budget. We could lose the govt within 18 mths. So I wld prefer to
stop short of perfection in our economic plans. No one can challenge us so long as
there is reasonably full employment. That does not mean overfull employment.
Our financial affairs must take a secondary place to our political judgement. The
states cannot be overlooked. We must have a priority of public works in the States
& we must insist on this. We must not lock ourselves up & decide on what the
priorities will be and how much money we will give them. We don’t understand
the States problem. They have committed themselves for millions of pounds worth
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 43
of orders. They can’t go on doing this of course. There is a difference in local
inflationary effect from ₤25m simpliciter and ₤25m of which ₤10m is for overseas
orders. In the long run we are so dependent on imports – no oil etc – there is no
future for us unless we can buy our imports and this leads to the need to program
exports. This must not be pushed aside
[Page 86]
by a too inflexible determination to hold the line. You have to program for an
adequate volume of exports. If to stimulate export production you have to have
priorities, you have to face harsh things on local prices.
P.M. To look at one matter on the immediate export position – wheat. Assuming a
reasonable season any extra wheat will be export wheat. You can’t offer the wheat
grower anything better than the full price. Why not offer the wheat grower no tax
on this crop of wheat.
McEwen. I don’t agree in the precise form, but I do agree in general. Wheat does
save dollars – Barley & oats are just as good as exports but they are not dollar
earners. If we were merely to say we won’t collect tax this year. They wld reply we
wld hold this the tax a year longer than we otherwise intend. Also if we could pay
them promptly a conservative estimate of what their wheat wld realise.
Anthony. Our basic objective must be to hold down our internal costs. Prices can
fall in the future just as it does67 in the past. We have already got our butter at our
imp price too high to be competitive. A year ago people were saying wool cannot
fall. 5 yrs ago costs were 15s per lb. Now it is 40s–50s per lb to produce. We set out
to arrest inflation. Our policy plus the fall in the price of wool has brought about a
slowing down in the rate. Kelly C.J. and Galvin both think that inflation can be
held. Honey & eggs have already priced themselves out of the market. For example
we may need a little flexibility on housing. We need more up to date information
on housing. In the last 3 years ₤850m has been spent on public works (apart from
defence).
Harrison. I am in agreement with McEwen. Let us have a
[Page 87]
reasonable amount of inflation but do not let it get out of control. If you have
migration in large measure you must have a tendency towards inflation. You have
to control inflation but you cannot cut it out completely. The present dullness in
trade is only the result of our policy. I try to strike a balance. Unless we can get
down our costs our policies will be frustrated. So far we have had a small amount
of unemployment but it has increased the output per man/hour in those very
industries, in some cases 20% to 30%. Some unemployment would improve
efficiency. Industry is not organising itself efficiently, it pays any price just to get
67
‘has’ is written above the line.
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labour. I agree that we must watch the import restrictions to see that we do not
build up useless industries.
Spooner. The credit restrictions will have to be eased in April–May when income
tax reductions assessments come in. Stocks are being held at a fantastically high
level. Banks are making arrangements to carry reputable companies. Even greater
credit will be needed to carry these stocks into the next season. The immediate
danger of the present situation is business failures. People are very nervous as to
what next years prices will be. I think that most of these stocks are involuntary and
although this is temporary this word may mean 12 mths. Stocks are held all down
the line.
Treasurer draws attention to Appendix B on Bank Credit policy.
Spooner. If expansion of credit at the present time is inflationary then I am an
inflationist. I believe people holding stocks are willing to get out of stocks even at a
loss. We are in a transition period and we must find a solution to the transition
period even more importantly than the long term problem. If we want production
we have to reduce taxation.
PM. – On imported stocks there are 3 possibilities.
[Page 88]
A has greatly increased stocks –
1. If he gets no accommodation he has to sell at a sacrifice.
This is counter-inflationary with a vengeance.
2. Jones holds on if he can – if you gave him long term accommodation this would
be inflationary.
3. The Bank says we will finance you for your seasonable stuff to enable you to
arrange an orderly liquidation of your stock.
That is very close to what the bank has said.
Spooner. You should not accept too readily the statement that people are holding
stocks for a rise.
McEwen. If we ran into a bad season we could have bad exports & then we would
have bare shelves if we liquidate our stocks too quickly.
Kent Hughes. If we had no import restrictions the banks would have to do what
they are being forced to do by the central bank.
Beale. We are working with blunt instruments. We have to do a lot of things. We
have to have a look at the defence programme. Should we not look at overlapping
between C/wealth and State departments. It is better not to aim at perfection in the
cost of living. Let us merely aim at slowing down the inflation. Have we said the
last word on hours of work and wages and incentives. Our financial relations with
the states may well destroy us as a government. The most important thing is the
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 45
increases in our exports. We should not forget metals in this connection. Tungsten
& molybdenum mean dollars. Canada may have to turn to us for bauxite. There is
also a proposition to sell uranium ore.
Treasurer. I will be bringing a paper tomorrow about our external position.
-
11.pm
__________
Adjourn to 10.15am.
__________
[Page 89]
Cabinet 18th March 1952
Submission No 31 B
The Minister read the submission including the68
The Prime Minister commented on the impropriety of making available cabinet
documents except to ministers.
O’Sullivan. I recommend 2d. I could not establish that on an actuarial basis but I
have been through areas & I know the industry is sick. Most of canefarmers are on
rations with their banks. Assignments of sugar land in Abagourie area are going
begging. We are getting the same price now as in the early 20’s yet wages have
gone up 120% – even with the 2d increase it will be only 100%. The increase will
apply only to ¼ of 575,000 tons.
Our price69 is about half the Cuban price to U.K. ₤38 to abt ₤70. The ‘world price’ is
difficult to arrive at.
McEwen. There is a Sugar Ctee – which has to watch at what price sugar cld be
landed in Aust. Jan ₤71, Feb ₤67, Mar ₤64.
McBride. Why are we selling sugar at ₤40 per ton if world price is over ₤60.
P.M. The U.K. are pretty smart about these deals. They create the illusion that it is
difficult to sell these things.
Holt. Why should we deal with the whole issue. We set out to make an interim
adjustment.
Treasurer. The broad policy & the future policy is to be subject to enquiry by
McCarthy ctee. The immediate price adjustment since 1 July ’51. The ctee has
recommended decided that increase is ₤6.9.0 a ton. The effective increase is
₤2,754,000. In recn they provide a profit margin of ₤1.1.0 per ton. There is a
68 ‘report of the committee and the comments of the industry representatives.’ is written above the
line.
69 ‘to U.K.’ is inserted above the line.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 46
deficiency of ₤3m plus which If you take ctees finding of ₤7.10.0 a ton – it applies
only 145,000 tons now left – that is ₤1,100,000 to compensate for ₤2,754,000 which
ctee has found. Therefore 2d would give ₤2,200,000 & this is more reasonable.
P.M. There is a flaw in reasoning. You are saying the years increase in cost must be
carried on the unsold balance. If you leave it to the last wk the increase might be 8d.
[Page 90]
Kent Hughes. How long can we subsidise U.K. ₤30 a ton for sugar.
Treasurer Hasluck. This increase in costs is as between July & March 4 & they
became progressively applicable.
Spooner. I support the Ministers recommendation. We should be proud of our big
concerns. The whole trend is to drive them out. If it is too high we will drive them
get them get half of it back in taxation.
Anthony. I am interested in this as two mills are in my electorate but I am
concerned at the progressive rise in the price of sugar. CSR supports the 2d increase
in a letter to me. Our people are very happy to get this contract at this price. There
is no world market for sugar at ₤70. Canada won’t enter into this arrangement
herself. We are chasing costs all the time.
(Take up question of answer to CSR – delay.)
Harrison. The ctee has brought back a report. Why do we re-open the subject.
McLeay. The report is not accepted by the industry.
Page. If we do something by way of subsidy and hold the position until May the
McCarthy ctees report will70 be influenced by the rising basic wage. You would
need about ₤2 ½ million.
McMahon. I believe that it is a sick industry – we must embark on a positive policy
& give the industry some incentive. We can look to the CSR for guidance.
Francis. This is a good and progressive industry. Costs have risen the only
question is how far.
Townley. Last year we not one processor would buy the fruit because they could
not complete. Jones & Co showed that the Scots were undercutting us on both jam
& pulp. They are considering going to S. Africa. The smaller cos hesitated to give
finance because the price was 5/- worse uncompetitive in London. Our production
of jam is down. The Sugar concession ctee has ₤1m & if it drops below ₤500,000 a
further call is made.
[Page 91]
70
‘otherwise’ is inserted above the line.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 47
This year if there is an increase in price the committee will have to hand over the
cash.
McEwen. There are about 4 pts of view – the consumers point of view keep the
price down. We are against this. We drove potato growers out of business, onions,
butter. You cannot adopt this point of view. Our only status in this is the price
control attitude.
You have got to let the sugar & other industries be taken care of not on an
accounting basis but on what will produce sugar. The real issue is between trying
to stop the inflation and trying to get production. But if stopping inflation is going
to stifle production then I am for production. It will kill the industry if we take a
restrictive outlook. My contracts have covered us for inflation. You would be
perfectly safe to take a stab at 1 ½ d and possibly 2 d.
P.M. Page has suggested an interim subsidy pending investigation. This has
dangers. It involves an addition to budget expenditure. You will then be up for a
rise when the committee brings in its report. We will have great difficulties about
not subsidising other industries. We will have pressure to subsidise the price of
bread.
The ctee says we agree on 1 d & so that is the minimum figure. I have a strong
feeling that the industry is in a sick condition – we must take that into account. My
own belief is that we give 1 ½ d. Put a time limit on the McCarthy committee – say
three months unless the industry talks too long – eg R. – Muir. Unless we are
prepared to subsidise against increases of costs I can see no escape from this. I wld
err on the side of going beyond the report of the ctee.
McBride. When I criticise the sugar agreement I think it is a very stupid one. I
agree with you but would go further. The industry is in the doldrums. It can
increase production quickly and it is a good export industry. I would have no
objection to go to 2 d. I wld not argue much about the extra ½ d.
[Page 92]
I think that McCarthy ctee will go beyond the 2 d which I now suggest.
Fadden. I do not think we can accept the subsidy area. I support 2 d. The industry
will have to be told that they must accept McCarthy ctees report even if it is less
than 2 d.
Page. I agree with 2 d.
Holt. I agree that a continued subsidy policy is bad. But a subsidy policy over the
next 6 mths would be very useful. There is a downward tendency in real estate,
shares etc. We are now making a decision to fix a cost structure at the peak. We
should consider subsidy over the next 6 mths. Let us set aside something for
subsidising jam & fruit.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 48
Anthony. I wld favour a subsidy for a limited period. Inflation is coming under
control in the rest of the world. If our costs rise in Australia all our industries will
be round our necks in a few years time.
Spicer. I have some trouble in going beyond the 1 d. I wld go to the 1 ½.
Hasluck. I find Holts & Anthonys argument convincing. I wld only go to 1 d.
Kent Hughes. What is the basis of our policy for the next 6 mths. Until we have a
real basic policy we will go into this everytime. Cannot you & Treasurer & someone
else make a firm recommendation on the basic policy. I am in favour of 1 ½ .
P.M. Do we take up the interim period until the findings of McCarthy ctee by
subsidy or not? – Holt, Anthony, McMahon, Page only
Price increase 1d
Holt, Harrison, Hasluck
1 ½ - ? (11)
2d - ?
Anthony. You may have to subsidise canning.
McEwen. The sugar industry pays into a fund & the ctee must take care of the
exports of the fruit & jam. Contributions are suspended until contributions fall to
₤500,000. 1 ½ increase wld not call on the fund. 2d wld call on ₤15,000 to 20,000 &
the fruit exported. The ₤240,000 this year includes ₤100,000 to berry growers.
₤140,000 a rebate to bulk users of sugar. This was not a statutory obligation.
2.30pm
[Page 93]
Sugar
Personnel of Ctee and the Terms of Reference
Prime Minister reads the letter from C.S.R. dated x and also Mr Gair’s letter of
x.
It was pointed out that the Q’land Sugar Board was an interested party.
McEwen. I think we must keep interested parties off the Tribunal.
Fadden. What about Ralph Dobson – agreed if available
Maintain71 Terms of reference with McCarthy – O’Sullivan, Holt & P.M.
(c) Suggested by McEwen should be varied.
If exports bring average costs lower than cost of production that would attack a
very important principle. This to be considered.
71
‘Discuss’ is written above the line.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 49
McCarthy says June 30 is feasible. – This agreed to.
“Consultants”? – If other parties are in the Sugar Industry – Ctee should be in. They
can have advocates if they like. What is this sitting in. It is in the nature of a counsel
assisting a commission. Commission will afford facilities to make representations
before the committee & these will be able to cross-examine if they desire. They
would help to guide the committee who to examine & what to ask.
“All interested sections of the industry will be entitled to representation before the
tribunal”. Who will be entitled to assist the tribunal by the presentation of cases
and examination of witnesses.
Have a cfce with ctee and reps to work out some formula.
Anthony. If this is72 a favourable report will not the composition of the committee
be very severely criticised & I wld support Donnollan.
McEwen. Say “to aid in its finding the tribunal shall consult with representatives of
these organisations.
Fadden. Donollan ties the industry up, it tones down c/w govt, he satisfies the
Q’land govt.
P.M. The Q’land Sugar Board spends half the money & McCarthy would not want
Donollan.
Decision – McCarthy, Treasury, Customs, Donollan, Bell.
We should say we are giving the industry every opportunity to present their case.
[Page 94]
Submission No 236
Wilson. Cabinet has dealt with the overall position – & now the question is what
do we do about non-sterling. We now have a request for 3 answers to Cochrans
letter. We probably have till Thursday to answer. All IveI could do on Thursday 6th
was to give you some idea of what the figures would look like if Customs figures
worked out along the lines they were thinking along.
In On Thursday last I was working on the Customs view that we could get down to
₤110.
It now appears that you can hardly do that w/o recalling licenses. – It may be
desirable to recall, review, cancel73 etc at any rate to get some of them out of the first
72
‘not’ is inserted above the line.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 50
half of the year (July –Dec ’52). I have not been able to discuss this with Meere yet
& he is inclined to agree. – S
Look at the table on page 2. Shortfalls on the Chancellors targets. Dollar area is
more important & 2nd half ’52 is more important. We are ₤38 ½ m. short. If we recall
etc we might get that down to by ₤21m but that would involve very stern action.
You might put proceeds of premium sales in – gradual accumulation74 You might
make an arrangement with the monetary fund but that would involve firm
arrangements about repayment over a short term. The other non-sterling countries
involve a deficit75 of 36 – (we would have a smaller surplus than asked for). How
little can we offer and get away with it. I believe we have to make a serious effort
on the dollar side. We have two lots of gold. (1) the reserve
(2) the gold that we are selling
and getting dollars for. – This is the $40m mentioned above. The central reserves
are separate from both of these.
I am talking about setting aside the idea of “calling” the $71m in New York. But if
we do it will come up in 1955 and quite clearly we have to reduce it to some degree
in the meantime. We shd put $10m a year aside from gold for this.
[Page 95]
Half of the $71m held in London on short term securities. The lenders are just not
interested in foreign bonds. We could refloat a little at the moment but it is very
small. Yield is about 5%, 4.8% to 5%. We have other maturities falling in near to
1955. There is no tendency for gold output to increase. Gold is now $38 an oz – abt
₤16.10.0. Making a profit of ₤1 an oz on premium market.
I don’t know what the reaction was in N.Z. to the recall & reissue of licenses.
The consequences of not recalling dollar licenses are76 set out on p3, they would
come down to ₤29 ½ m in the second half of the yr.
__________________
Wilson summarises the paper.
Two warnings stated. – Then we compare the probable results with the targets. Can
we do anything better – 1. by reducing imports, 2. by emergency finance. You wld
have to reduce licenses issued in 2nd half to ₤29 ½ m & you could not do it. We
would not try to stop goods on the water, or in the pipeline, or covered by
irrevocable letter of credit. – Suggest recalling licenses. You might reduce them to
₤62 & then ₤48. The ₤62 includes ₤13 I.B.R.D. but I doubt if you can get it down to
that.
‘defer’ is inserted above the line.
‘from Nov. 3.9 1.3m per mth by Dec ’52 we wld have ₤18 ½ m - $40m.’ is written below the line.
75 ‘short fall’ is written above the line.
76 ‘D’ is inserted above the line.
73
74
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 51
…
Wilson then explained the tables on page 4.
The ₤110 plus the readjustment of the two halves you wld reduce shortfall by abt
₤21m (from 38 ½).
…
We would have to take get Melville to take sounding from the Managing Director
of the Fund. There is some suggestion that the UK may be going for $300m & they
may favour us get in first. Let us tell them as soon as possible. I would sooner wait
until later in the year to draw the cash because we might have greater need of it
then.
On non dollar non sterling & shows about 50% cut on imports. This is a shortfall on
a surplus. Then we get onto emergency finance.
8.15pm
…
P.M. proposes to draft proposals before next meeting.
Next Wednesday 2.30pm
__________________
[Page 96]
Papua New Guinea – Agreed that matter should be left for administrative
treatment. A target mentioned by Treasury to be aimed at.
Pearlers into Broome –
Holt’s suggestion agreed to.
Note letter to go to Senator Scott – airmail –
Wheat Freights
… I oppose paying any freights on the mainland.
Consider whether you wish to do anything abt Tasmania under S.96.
Some proposals for considg next week.
Our position wld be stronger with other states if we fixed up Tasmania.
Townley. There has been an agitation in Tasmania. Both White77 & Cosgrove have
been drawing attention to shipping & wheat freights. Don’t overlook political side.
Give Falkinder a chance to make a statement.
77
‘(Chief Sec)’ is inserted above the line.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 52
McLeay. Unless ship goes tomorrow they will be out of wheat. Hobart position is
permanent & until recently this was being paid. We have never allowed Tasmania
to pay more for bread than on the mainland.
Holt – Why should not the price of bread go up in Tasmania. It is cheaper in
Hobart than Canberra is it not.
McEwen – We cannot let one state go lazy on producing wheat – as NSW has done
now.
Fadden. Why can’t the Wheat Board have to.
Suggestion that McLeay provides the ship & sends the flour & McEwen to bring78
proposals up next week. We will pay the freight this time to no keep the ball
bouncing.
Apple & Pear Proposals –
Not a proposition for government.
Chief Justice of High Court79 – Leave to leg A/G & P.M.
[Page 97]
Proposed committee on Import Licensing
Proposal is for import budget committee – Treasury, PMs, T&C – Yes
Consultative Ctee80 on import policy – submit thro’ Chairman anything that they
want to go to Cab Ctee – in addition rural industries & retail trades to those
mentioned on the list. Norman Nock81 (?Ashley Buckingham), R.C. Wilson – 82
What about Cecil Williams Pres. National Farmers Union.
Individual problems still go to the Minister & the dept. Aust Pres of Nat Council of
W.
Take-off interior, works & housing, territories
83
Elsie Francis Byth
Terms of reference approved.
Cabinet ctee. P.M, Treasury, T&C only
X Books [are in this act – free all works that are not works of fiction].
X Special consideration & make an announcement in a few days.
‘wheat’ is inserted above the line.
‘& other Judges.’ is inserted above the line.
80 ‘Yes’ is written above the line.
81 ‘Federal Pres.,’ is written above the line.
82 ‘W.S. Kelly’ is written above the line.
83 ‘Mrs L. Byth –’ is written above the line.
78
79
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 53
Submission 237
…
A suggestion was made that gold mining industry shd be stimulated.
Wilson. We have a special ctee to consider export earnings & perhaps the ctee shd
look into this.
Hasluck. I think that there is a considerable prospect of export of minerals,
manganese was held up 18 mths ago because Bureau of Min Res sd it did not want
it to go out of Australia.
Treasurer. What reply can we give to the Chancellor?
Wilson. Proposal is to put some part of gold sales away.
Try to get drawing from I.M.F. on basis of our 84 sales.
Recall & review licenses.
This would almost meet the dollar target & this would be as good as we can do. We
wld not accept targets. Later we can consider how far it can go. As far as possible
we wld try to time action so that we would help.
1. Agree on approach to I.M.F.
2. Recall of licenses – for review (not cancellation necessarily).
[Page 98]
PM.
1. Call in dollar licenses for review – we may can one, defer another.
2. Authorise T. to make soundings as to possibility of drawing from I.M.F.
No sum mentioned. Also enquire whether we can make one package and
arrange satisfactory repayment.
3. In the light of these two enquiries work out how much we have to do on gold.
Spooner. Can you deduce from that the % order of cancellation required to hit the
target.
P.M. If recalls would impair our productive capacity that gives a basis on which
we calculate the drawing sought.
We must go within a measurable distance of the Chancellors target for 2nd quarter
1952.
Wilson. Should we make more strenuous attempts to make savings on other nonsterling countries. This is not so urgent. We will fall short of our targets but we will
84
‘gold’ is inserted above the line.
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transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 54
be in surplus. The Chancellor will not argue with the same fervour. I think we may
get by with something less than the target suggested.
McMahon. We should make a better attempt than this on non-dollar non sterling.
Spooner. These dollar allocations have already been squeezed. We can only get a
stop gap solution on that by cuts.
Wilson. The authentical result is not so severe on non-dollar, non-sterling because
there is more non essential imports from sterling.
P.M. Tell me Wilson,
Why can’t we say – This looks like the picture.
What we have done is so & so.
We are examining this. We will so far as we can bear down on non dollar non
sterling. We don’t know what this will bring. Wilson. We can say that & should do
so.
[Page 99]
Treasurer. There is need for a record of ₤A500m f.o.b.
Wilson. All the big stuff is in the administrative section. I wld sooner have a higher
ceiling than no figure.
P.M. If you have a safely low ceiling you may go over it occasionally.
Spooner. Can your work a ceiling of ₤500m if ₤130m of it is to go for petroleum. It
is nearly ¼ of the total.
PM. We have no choice in this matter – we either get dollars from the pool or we
go without.
McBride. We can’t do without petroleum and but perhaps we can do w/o cars.
Wilson. You were given prospective figures in December. We make a regular
monthly report of our best estimate of the statistical position as we can see it. We
could do this through the dollar ctee.
PM. The complaint was not that we did not have figures – but that we took no
action on it. The real trouble was we got no advice based on it. The Treasury & the
Bank are too cagey about figures.
I got some figures over the weekend.
Total imports
October
111.4
Nov
97.7
Dec
68.5
Jan
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 55
There was all the indications of a down turn. In the face of these all the indications
were good.
Then
Jan
Feb
178
105
So ins we had a sudden step up in Jan.
McEwen. Is there no way of knowing in Dec what the Jan figures will be. The
publication of these figures could be turned against us. Why was the government
not more watchful.
[Page 100]
Wilson. We have some indicators. I asked C/w Bank to have issued letters of credit
figures. But these figures confirmed the down turn. We got space bookings while
we were in London. That showed we were in for heavy imports in Jan & Feb. We
had some variable figures from the continent – some indication of a turn down.
Recorded exports from UK & we are endeavouring to build up this indication of
advance movts.
__________________
[Page 101]
Cabinet
Matters arising out of imports.
Books
₤3,306,000
1950/51 –
This would be abt ₤1m cut on present
importations. Add to that ½ m a year coming in by parcels post. Minister suggests
maximum for people – at present this is cut out by exchange control. In US. we
have permitted periodicals but not books. Customs feels it can come to some
arrangement with importers.
Rec. 100% on base year & individual importations up to reasonable amt.
1.
books imported through trade – 100% of base year.
2.
particular considn of indiv. importers – immediately –
considering whether any upward limit necessary.
Holt. There are a lot of other things which are very vital & this will be a good
precedent.
P.M. Reads a letter from Ferguson.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 56
O’Sullivan to check up on the volume of letters of credit irrevocable.
P.M. Raises the question of import review – the ₤110m.
O’Sullivan refers also to the “undertakings” given by Heinz, Gen Motors, etc.
Will let know when they come back tonight on this matter.
Review of Economic Policy
[…] 3.25pm
Housing
Spooner. By large you can only get ₤1750 on loan.
Holt quotes falling issue of permits.
Spooner. I disagree with Treasury memo. Rent control to is driving speculator out.
This is throwing a burden on government building. Also govt is being forced to
build for resale by the limit of advances.
Townley – Soldr Trust Funds – No trust money for real estate. Rural Bank of NSW.
No old homes since 1950. Bldg Soc – at least 25% in 12 mths.
Mod & Perm. No lending. Nat Bk. Little money. C/w Bk. Old customers new
houses.
[Page 102]
At present 450 applns a month for new homes as against 250 a year or so ago.
NSW Housing C/ion can’t enter into any more contracts for 18 mths even if they
get the same amount as last year.
85
Townley. Why not sell houses under Housing agreement.
Anthony. The no. of houses under constn. Wait for March figures.
Holt. Is there any reason why C/w Bank should not lend more.
McMahon. We haven’t got a proper target – Coombs sd 75,000.
P.M.
1. Loan Council – May 1.
2. Some slackening of Bank policy – meetings today – selective – defence
industries & bldg etc & of trading banks liquidity.
If some effort is needed for Bldg societies & we have a figure for state housing a
day or so later.
85
‘Spooner’ is written above the line.
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Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 57
McBride. US. housing program is 23% lower this year than last. Can we go on &
borrow with them. We should not make any decision on the inadequate facts now
before us.
P.M. We have to determine whether the anti-inflationary policy is still our main
objective. He reads his notes pointing out that it does not include a section on
primary production and bank policy.
…
Holt. There may be some figures to give a picture of increasing prodn eg coal. Also
you should prove that there is still an inflation. I am putting out the institutional
statement on employment. There has been no sharp increase in unemployment
altho the trend is86 towards fewer vacancies. A disturbing factor is the alleged
demand for rural labour. We may have to treat migrants as dilutee ( ) – ie. govt pay
a proportion of their salaries87 Suggest you include a para on employment
situation.
Anthony. In general I agree with your statement. In Lyne electorate I visited
Nestle’s factory.
[Page 103]
People who came in to make powdered milk for export but the margin has
disappeared. You can price yourself out of exports.
At the Loan Council meeting we should step up our propaganda to tell the people
that the States are to get 100% of the loan money & we are not going to tax the
people to pay for state loans.
Further we should have a propaganda drive on the lightening of the money market
generally. This is a natural result of the fall in prices.
P.M. We have a Cabinet ctee on this for some time – but who is the man. I made a
suggestion to our party organisation.
McBride. I hope we don’t start a campaign on what we tell the Premiers. Let us
make up our mind, let us try to sell the idea to the Premiers. We will never win the
propaganda battle, they are telling them pleasant things. We must get them to place
their works in some order of priority. Our policy is right. Can we not convince
them. Some people believe that we are imposing hardships unnecessarily.
(? Can we not get out a C/wealth case – for the premiers and perhaps for the
public.
86
87
‘still’ is inserted above the line.
‘wages.’ is written above the line.
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 58
We will not succeed unless we can persuade the public premiers of the correctness
of what we want.
Let them discuss each item seriatim – housing, production etc.
PM. The Premiers are talking about cuts – but in fact we have built them up – that
has not got through to the public mind. Our approach was one of unprecedented
generosity.
The kind of problem we discuss is not their problem. They only want money to be
provided. Look at the contribution of the Premiers to the Anti-Inflation conference
– except Playford.
McBride. While you speak in general terms they can be vague – but if you bring it
down to item by item they can’t talk generalities on that.
[Page 104]
Page. I agree with P.M. All they are interested in is how much money they can get
for works. We must get down to priorities on works. In preparation of a88 statement
if you should not talk of increased taxation the premiers will take this as an
invitation – don’t use word deflation.
Beale. Liberal opposition in NSW & Q. NSW organisation is unable to be
propaganda agency that it should be. You should meet the whole state opposition
& get them on side – P.M. I am doing that.
McMahon. We should have confidence – look at mfg industries they are cock a
hoop, we can give incentives & encouragement to primary products. Our own
supporters can kill themselves with their own misery. We have had controls but we
haven’t touched the basic indust factors, defence, migration, public works
expenditure, private investment, social services.
Holt. We could89 be alert. Don’t get ourselves too firmly out on the anti-inflationary
limb. People may not have the chips to buy the goods soon. I would like to see 4 or
5 leading bankers tell us what they think of the economy.
Hasluck. These are not new problems. We have 2 problems 1. handling the
Premiers, 2. the broad national interest. We should expose the particular aspects of
the national problems & let these be public – housing, budgeting, overseas trade.
P.M. I don’t think that there is much chance of a deflation.
Spooner. I don’t like the situation – bank credit, some unemployment, no
willingness to take a risk, share prices down, house prices down.
88
89
‘your’ is written above the line.
‘must’ is written above the line.
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 59
Fadden. Is anyone going to suggest we alter Bank policy w/o consultation with the
Bank – or in capital issues policy. Should the states have an open go on public
works. What is it that we can change.
Beale. I would like to hear what the bankers have to say.
Holt. Capital issues control is meaningless at the moment. This year we had
₤225m for a loan program. If we cut them back to (say) ₤150m – a big proportion of
this will be
[Page 105]
imports. Let us suppose ₤50m committed. So the level for Australian employment
or works will be reduced.
– 8.pm.
8.30pm
Marcus Clark litigation
In Communist case there was some reference to declarations. We have set them out
& there is a summons for directions – that means oral evidence by PM. I think it
should be done.
O’Sullivan & Harrison90 have some doubts on the political wisdom of this. Can you
reserve this point until after the validity of the regulations is determined. A/G to
talk to solicitor on this.
Economic Policy
McMahon. re Social Services. I was thinking of possible additions to Social
Services.
O’Sullivan argues that ‘uneconomic’ is a more useful word than ‘inessential’.
Anthony – do not use ‘budget surplus’, express it in a way that91 there is no money
in kitty.
Page. In Para 7. Increased taxation rates do not mean an increased taxation yield.
Holt. What is said now does not represent the last word.
__________________
90
91
‘& McMahon’ is inserted above the line.
‘implies that’ is inserted above the line.
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 60
Submission No 235
Ministers expressed the view that C/w should get out of this company. Another
question was why can’t we sell our rights. Suggested that decide to sell & leave
method for advice from experts. Big The relation between the overdraft and paid
up capital was adversely affected commented upon.
Agree in principle that should get out & seek expert advice on whether there is
advantage to be gained in taking up shares.
[Page 106]
Submission No 234
I have since had the draft of a quota control prepared. Dept says it is impracticable
in operation.
Customs does not think that even 1/- a gallon would have much effect. Unless
there is some restriction the fixed target cannot be hit. Dept thinks that rate of
increase will fall. Customs suggests that a ceiling be put on the present value of
petroleum products imported.
P.M. Are we prepared to go in for a wholesale system of rationing unless we go to
this we have to let it come in. You have to license it up to current consumption.
This fixed ceiling of ₤500m. – If you go over on A, do you go under in B. I don’t see
how you work a fixed ceiling. I do not think the non-dollar target is as inflexible as
all this.
O’Sullivan. Customs are interpreting the ₤500A as a target & not as an inflexible
ceiling.
P.M. said we should not put an additional burden on overseas currency for the
purpose of building up stocks. Look at that a little later, but don’t let them deplete
them.
? As to whether there should be an announcement?
Report of Inter-departmental Dollar Ctee
Suggestions agreed to.
10.30am
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 61
[Page 107]
[27 March 1952]
Cabinet 27.3.52
The Minister outlined the submission.
Long term contract and provision of heavy aircraft has not been put to ANA
previously. Their financial position is a self-inflicted wound. They would not agree
to an increase in fares – this might have had 3/4m from this source and ¼ m
perhaps from freights. The shipping Cos have raised freights by 500% over a period
of years. ANA are trying to force the hand of the government.
Treasurer. Position is obviously difficult. We have to keep ANA going. Politically
we can’t let TAA go. We need to find a formula. ANA want a monopoly. ANA has
not had a fair share of the business but present proposals should meet this. I believe
that ANA are bluffing.
McMahon. ANA are not fooling.
Holt. I understand their proposal to be that ANA would want to control the
amalgamated show.
Treasurer. I am opposed to an amalgamation.
P.M. We have never offered a long term contract.
Treasurer. I am in agreement with a long term contract for mails.
McBride. I think the Ministers proposal has much to commend it. I believe that
they are determined to go out of the business. Now is a good time to sell their aircraft. That won’t last long. We would have to take their aircraft over. That would
be a compulsory acquisition – just terms – international value of aircraft. We cannot
give a long term contract on passengers, we can on mails. We can’t commit a future
government to a policy of purchasing aircraft for them. Politically it is an attractive
proposal. They will probably be reject it out of hand. There has been delay in
bringing this matter before Cabinet. I do not think that any other group will bring
private capital into airlines.
Harrison. I am attracted by the ministers submission and it is in line with the
policy. But if Holyman is going to get out there well then be a government
monopoly.
[Page 108]
We will have to decide whether we continue as a government monopoly. Should
we not then form a company with some private capital.
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 62
Hasluck. Suppose ANA wants to go out, its only possibility of salvage would be a
merger.
Treasurer. What proportion of ANA relates to intra state trade.
Ant McBride. I think it would be only 10% to 15%.
Anthony. They would hand these over to subsidiaries. They can make a capital
gain of ₤3m if they go out and I think they will want to get out at the top of the
market. They bought these planes with dollars especially for Australian use.
(McBride. I question that last statement.) Without another plane we could carry
about 85% of the traffic interstate. We would have to call on B.O.A.C. and Qantas.
But 8 or 10 heavy planes would suffice as an addition.
McBride. I would not consent to over-run the planes.
Beale. If they were offered fair terms and Q’land, what would they say.
Anthony. I think they want nothing less than a merger.
ANA Holt. Has the proposal been put up of one govt and one semi-govt. Would
they feel there was a guarantee of security in this. On what is before us I would be
opposed to a merger. But we would need to say more precisely what we are
prepared to do to see that they are treated fairly. I do not say they are bluffing but
they might reconsider.
Francis. I agree with the ministers proposal. They have not been very helpful.
Page. We should92 accept the bona fides of these people. They have started a new
service to Tasmania. We should examine the ministers proposal fully with them.
Townley. We started to investigate the future of TAA. If private enterprise is
forced out by us we are in a bad position. But I think ANA have not acted fairly
and have not been frank with us. If the mail is split up they would more than offset
their loss. Perhaps they would
[Page 109]
like to get out quickly. But I believe that they fear for their security. Why can’t some
formula be worked out to keep both air-lines in the field.
Anthony. ANA would not talk about the mail sharing etc.
McLeay. I support Anthony93 We will go down as dirty dogs if we put ANA out of
business. Look at Nixons para 33. We must not let such a great enterprise be
92
93
‘not’ is inserted above the line.
‘Townley.’ is written above the line.
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 63
destroyed. I would be in favour of a merger. – (?but on their terms?) We must keep
them in the business at all costs.
Beale. Our job is to keep both these ships afloat. We must approach ANA along the
lines of the ministers proposal. Is there anything in getting out of intra-state traffic
in Queensland. His present proposals (Anthony. TAA are losing ₤70,000 a year on
Q’land) have never been put to them in a block. ANA would not refuse a good
deal. But they must realise that a Labour govt could re-establish TAA even if we
agreed to ANAs present proposals.
PM. I have read a file from TAA & talked to TAA on Monday night. It is not only
what we decide but how it is presented to the public. There must be some limit to
the propaganda that comes out of this room. Last night at 10.30 we decided not to
make a statement about petrol. Irvine Douglas was told by a Minister that it was
not worth while putting a statement out at that time. When a decision emerges it
ought to emerge on our terms. What we say to ANA is vital in this matter.
We should say – 1. We are against a monopoly – competition has produced good
results, a merger means a monopoly however it is disguised. We think there is
room for two major airlines (not 3 or 4). They must be able to operate on a basis of
solvency.
2. How do we achieve it. They say a share of mails & govt business is so insecure
that they can’t go to the public for capital. I don’t know where any govt has
repealed an act ratifying an
[Page 110]
agreement. Therefore I think there is need of statutory form, & a long term
operation – 10 to 15 years. We offer them a share of the air mail business, access to
govt business. We enter into an arrangement involving a reduction in air-route
changes. We fund that in replacement of94 planes (define) govt will act as financier
for both companies because they are so useful in war.
Then we provide for a rationalisation of routes, timetable & freights & fares. To
provide for this we set up a small body with indept chairman to determine
disagreements. This to be in the legislation. If you like we will make it a 3 cornered
contract. This can be altered only by a statutory repudiation of such a contract.
If that goes in proper form to ANA & we give it to the press in proper form.
Unanimously agreed to
Major details
94
‘heavy’ is inserted above the line.
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transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 64
15 years is favoured to 10 years.
Francis remarks the favour that public servants favour TAA a rationalisation of
time-table will
Spooner. We should not make public what your proposal is – you may need room
to manoeuvre – it creates public confusion. We need secrecy & expedition. I would
wait until ANA gives it some publicity.
Harrison. Osborn asks that no decision be made public until the party has had a
chance to consider it.
Page. It would be better to bring them up & give them the letter and make your
statement then.
Anthony. We are criticised for the lack of a firm decision and it needs to be made
public.
McBride. I would be opposed to a detailed statement but we can say we decided
against merger but to discuss means of carrying out on terms of fair competition.
[Page 111]
McMahon. Why not try to arrange a statement which is satisfactory to them. I
would regard the statement as provocative from ANAs point of view. Pages –
proposal is generally acceptable.
__________________
Holt. Case of Japanese wives who married ex-servicemen.
Japan is the only country95 which has a ban operating – many are cases of hardship.
I recommend that in genuine cases wives be allowed in.
Francis. I have no objection to Parkers wife coming in – he is no longer a soldier. I
don’t like the idea of admitting Japanese wives. They are having great trouble in
America. But if there are only 12 I wouldn’t oppose it. –
Agreed to – but no statement to be made.
1pm
__________________
Resumed 2.45pm
…
95
‘in respect of’ is inserted above the line.
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 65
Holt. Perhaps we can provide from our own resources for our own people and get
loans (or funds) from U.S. or elsewhere for migrant assistance.
Page. In the ‘30s the Dutch were prepared to bring abt ₤1000 each.
Treasurer. I would like to know what is happening under the soldier settlement
scheme. I wld like a report on that. I understand that both NSW & Q have played a
pretty scurvy game.
McEwen. If you want the fellow without capital you have to provide the capital
but you also have to make the industry attractive.
McBride. S. Aust has land that will take years to develop – & I believe Tas. has also.
McMahon. McEwens submission is long term – but what we need is short term
solutions. Let us look at existing farms – wheat, mutton & lamb, & sugar etc. Take
them in order, consider incentives or taxation reductions etc.
McEwen. My long previous submission dealt with those things – fertiliser, labour,
accommodation on the farms & the farm supporting industries.
[Page 112]
McBride. We ought to extend our wheat appeal to barley & oats. Let us make a
statement as to what the govt is going to do.
P.M. We would get further by taking a particular industry & working it out – say
dairy or wheat. 96 Our two immediate problems are 1. inflation & 2. immediate
encouragement of exports.
Page. If we could have the information as on page ?
Holt. I think this long range planning is essential.
Hasluck points out that he cannot tell people what can be done to assist people in
the territories especially New Guinea.
McEwen. I brought to the Cabinet proposals for wheat and dairy. You said no –
our policy is stabilisation. I have dairy products up in a paper for this week.
P.M. –
1. Special initial depreciation
2. Rural housing – farm accommodation
3. Wheat tax projects
All these things need to be looked at today.
96
‘(McEwen. I will do that).’ is inserted above the line.
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 66
Persons mentioned
Name
Full name and position
Anthony
Hubert L ANTHONY, Postmaster-General and Minister for Civil
Aviation
Basten
Henry B BASTEN, CMG, author of 1952 Report ‘On the turn round
of ships in Australia’
Bate
Henry J BATE, Liberal parliamentary representative from NSW
Beale
Oliver H BEALE, Minister for Supply
Bell
BELL, Proposed Sugar Board representative
Black
Eugene R BLACK, President World Bank
Bland
Henry A BLAND, Secretary, Department of Labour and National
Service
Bolton
Sir George L BOLTON, Advisor to the Bank of England
Brown
Allen S BROWN, Secretary, Prime Minister’s Department
Buckingham
Ashley BUCKINGHAM, proposed member Committee on Import
Licensing
Burchett
Wilfred BURCHETT, Australian journalist and reporter
Butlin
Sydney J BUTLIN, Professor of Economics, University of Sydney
Byth
Elsie F BYTH, Proposed committee member
Calwell
Arthur A CALWELL, Opposition Leader
Casey
Richard G CASEY, Minister for External Affairs
Chifley
Joseph B CHIFLEY, Prime Minister 1945 to 1949
Clark
? Marcus CLARK, Australian Author
Clarke
Colin CLARKE, prominent economist of the 1930s who had
formulated a price stabilisation model
Cochran
COCHRAN, British financial representative
Coombs
Dr. Herbert C COOMBES, Governor Commonwealth Bank
Cosgrove
Robert COSGROVE, Premier of Tasmania
Daly
Frederick DALY, ALP member of Parliament
Dobson
Ralph DOBSON, Proposed Sugar Tribunal member
Donollan
Joseph DONOLLAN, Chairman of the Sugar Board
Dunk
Sir William DUNK, Chairman of the Public Service Board
Fadden
Sir Arthur W FADDEN, Treasurer
Falkinder
Charles W FALKINDER, Liberal member for Franklin, Tasmania
Francis
Josiah FRANCIS, Minister for the Army
Gair
Vince GAIR, Queensland Premier
Galvin
John M GALVIN, Commonwealth Conciliation Commissioner
Gardner & Lang
Property management and valuation company
Harrison
Eric J HARRISON, Vice-President of the Executive Council, Minister
for Defence Production
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 67
Hasluck
Paul M HASLUCK, Minister for Territories
Holland
Sir Sidney HOLLAND, New Zealand Prime Minister 1949 to 1957
Holt
Harold E HOLT, Minister for Labour and National Service, and
Minister for Immigration
Holyman
Sir Ivan HOLYMAN, Managing Director of ANA Airlines
Jones
Sir George JONES, Air Marshal, Chief of the Air Staff, Chairman
Chiefs of Staff Committee
Kelly
C J KELLY, Chief Judge of the Arbitration Court
Kelly
William Stanley KELLY, Chairman, Joint Dairying Industry
Advisory Committee
Kent Hughes
Wilfred S KENT-HUGHES, Minister for the Interior and Minister for
Works and Housing
Lloyds
Lloyds of London underwriting firm
Mair
Robert Bruce MAIR, Member, Australian Broadcasting Control
Board
McBride
Philip A McBRIDE, Minister for Defence
McCarthy
Mortimer Eugene McCARTHY, Chairman, Tariff Board
McEwen
John McEWEN, Minister for Commerce and Agriculture
McGovern
Patrick Sylvesta, Federal Commissioner of Taxation
McLeay
George McLEAY, Minister for Shipping and Transport
McMahon
William McMAHON, Minister for the Navy and Minister for Air
Melville
Leslie G MELVILLE, Assistant Governor Commonwealth Bank
Menzies
Robert G MENZIES, Prime Minister
Meere
Sir Frank MEERE, Comptroller-General of Customs
Muir
Ronald James Samuel MUIR, General Secretary,, Queensland Cane
Growers Council
Nash
Richard H NASH, Labour Senator from Western Australia (Died
December 1951)
Nicholas
H S NICHOLAS, author of Report on Remuneration of
Parliamentarians
Nock
Norman NOCK, proposed member Committee on Import Licensing
O’Sullivan
Neil O’SULLIVAN, Minister for Trade and Customs, Leader of the
Government in the Senate
Osborne
Packers
Robert Gumley OSBORNE, Chairman, Australian Broadcasting
Control Board
Sir Frank PACKER, Newspaper owner
Page
Earle C PAGE, Minister for Health
Parker
Gordon PARKER, BCOF Australian serviceman married to Japanese
woman
Sir Thomas PLAYFORD, Premier South Australia
Lionel James PRICE, Deputy Director-General, Commonwealth
Department of Works
Playford
Price
Ricketson
Staniforth RICKETSON, Member, Melbourne Stock Exchange
Sargood
Denis Herbert SARGOOD, President, Melbourne Chamber of
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 68
Commerce
Scott
Malcolm F SCOTT, Liberal Senator from Western Australia
Shedden
Sir Frederick G SHEDDEN, Secretary, Department of Defence
Spender
Sir Percy C SPENDER, Ambassador to USA
Spicer
John A SPICER, Attorney General
Spooner
William H SPOONER, Minister for National Development
Townley
Athol G TOWNLEY, Minister for Social Services
Tyrell
Sir Murray TYRELL, Official Secretary to the Governor-General
White
WHITE, Chief Secretary Tasmania
Williams
Cecil WILLIAMS, President National Farmers Union
Williams
Dudley Cadell WILLIAMS, First Assistant Secretary, Department of
Shipping and Transport
Wilson
Dr Harold WILSON, Secretary, Treasury
Wilson
R C WILSON, proposed member, Committee on Import Licensing
Yeend
Sir Geoffrey YEEND, Parliamentary Liaison Officer, Prime Minister's
Department
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 69
Abbreviations and symbols
Abbreviation/symbol
Interpretation
%
per cent
&
and
➼
yes, ok
∴
therefore
/- or s
shillings
?
unable to transcribe
[…]
crossed out text unintelligible
‘53
1953
₤
pound
9d
9 pence
a/c
account
a/cts
accountants
A/G or AG
Attorney General
abol
abolition
abt.
about
ag or agric
agriculture or agricultural
agric or ag ec
agricultural economics
altho’
although
ANA
Australian National Airlines
ANZAM
Australia New Zealand and Malaysia
appln
application
appr
approach
approx
approximate
ASB
Allen S Brown
ass
associated
att
attachment
Aus, Aust, A’ns or
Austn
Australian/s
batt
battalion
bd
board
BH
Broken Hill
BHAS
Broken Hill Associated Smelters
BHP
Broken Hill Proprietary
bkrupt
bankrupt
bldg
building
BOAC
British Overseas Airways Corporation
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 70
Br
British
Br. C/w or British
C/wealth
British Commonwealth
C&A
Commerce and Agriculture??
c/ion
commission
C/w or C/wealth
Commonwealth
cab
Cabinet
Cba
Canberra
cfce
conference
cl
clause
cld
could
Co/s or coy/s
company/s
considg
considering
considn
consideration
constn
construction
contd
continued
contn
contribution
COR
Commonwealth Oil Refineries
CRO
Commonwealth Relations Office
CSR
Colonial Sugar Refining
ctee/s
committee/s
d
penny or pence
Dec
December
def
defence
def. prod. ctee
defence production committee
dept
department
dev
development
divn/s or divis
division/s
econ
economic
Eng
England
espec.
especially
ess
essential
exec
executive
EZ or Elec Z
Electrolytic Zinc
Feb
February
fm
from
FOB
free on board
g’tees
guarantees
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 71
GATT
General Agreement on Tariffs and Trade
gen
general
GG
Governor General
gov
governor
govt./s
government/s
high c/m/s
high commission/s
hr
hour
IBRD
International Bank of Reconstruction and Development
IMC
International Monetary Fund
IMF
International Monetary Fund
incl
including
indept
independent
indiv
individual
infn
information
int
internal
Int Bank
International Bank
Jan
January
Jap
Japan or Japanese
lb
Pound (weight)
LC
loan council
legn
legislation
m. or mil
million
M.E. or M. East
Middle East
max
maximum
Melb.
Melbourne
mem
memorial
mfg
manufacturing
min
minute
min res
mineral resources
Mod & Perm
bank?
movts
movements
mth/s.
month/s
N
north
N. Africa
North Africa
N.A.T.O.
North Atlantic Treaty Organisation
N.S.W
New South Wales
nat
national
Nat Bk
National Bank
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 72
No
number
Nov
November
NT
Northern Territory
NW
north west
NZ
New Zealand
Oct.
October
opposn.
opposition
Oseas
overseas
oz
ounce
p
per or page
P.M.
Prime Minister
para
paragraph
parlt
parliament
Pdcn, prod, producn,
prodn or pdn.
production
perm
permanent
PO or P office
post office
POW
prisoner of war
pres
president
Q, QLD or Q’land
Queensland
rec.
reconnaissance
rec/s or recn/s
recommendation/s
reps
representatives
rly/s
railway/s
RSSAILA
Returned Sailors, Soldiers and Airmens Imperial League of Australia
S Africa
South Africa
S Aust
South Australia
s&d
sterling and dollar
S.E. Asia
South East Asia
SA
South Australia
Sat’day, Sat or Satdy
Saturday
sd
said
sec
secretary
sen
senator
shd
should
SMH
The Sydney Morning Herald
soc
society
soldr
soldier
National Archives of Australia transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 73
sq
squadron/s
sub
submission
sub-ctee
sub-committee
subs
submarines
Switz
Switzerland
T&C
Trade and Customs??
TAA
Trans Australia Airlines
Tas
Tasmania
taxn
taxation
thru or thro
through
Thur.
Thursday
Treas or T
Treasury
trib
tribunal
Tues
Tuesday
UK.
United Kingdom
US.or USA
United States of America
Vic or Vict
Victoria
W. Europe
Western Europe
W.A.
Western Australia
w/o or witho
without
Wed
Wednesday
wk/s
week/s
wld.
would
yr/s
year/s
National Archives of Australia
transcript
Title: Cabinet Notebook 1/14, 1952
Reference: NAA: A11099, 1/14
Page 74