MR CHIFLEY ON WORLD EVENTS

Press, Volume LXXXV, Issue 25802, 13 May 1949, Page 3

MR CHIFLEY ON WORLD EVENTS

“CHANCE OF WAR HAS RECEDED” (N.Z. Press Association—Copyright) , CANBERRA, May 11. “I said in Parliament a year ago that I did not think war inevitable; I feel now that the chances of war have receded,”' said the Australian Prime Minister (Mr Chifiey), in an address to the Federal Executive of the Labour Party to-day. “There will still be long, contentious argument. Some do not want to strengthen Germany economically, and others fear a strong military Germany. Russia does not want a strong Germany, and France remembers 1870, 1914, and 1939. The French extreme Right and Left parties have both lost ground, and the present French Government has vastly improved conditions. “The real solution in Europe is that the United States should buy in value what she sells. Russia does not want war with the United States, as she is 30 years behind America in industrial capacity. “The world’s problems are difficult, particularly the inability of the Western European countries to balance their payments with the dollar There is no question that Marshall aid has saved countries such as France and Italy from economic chaos, which has been averted also by British help. “By the end of 1951, Australia and other sterling countries are going to find it difficult to buy sufficient consumer or capital goods from the United States. Australia will have a dollar deficit this year. The position in America is that there is a sag in some prices, and some production is saturated. In spite of Marshall aid and rearmament, there could be some recession. If that occurred, it could affect Australia’s wool sales. “This year, Australia will not sell America the amount of wool exjgegted, and the price of other commodities we sell to the United States is dropping. “We are m a favourable position concerning our sterling balances in London, which will help buy capital equipment which Australia cannot produce. Migrants for Australia “The world is very crowded. I believe Australia can maintain a greater number of people than she has. The overcrowding of countries such as Italy, Holland, and France is Australia’s great opportunity, which may never come again. If we do not grasp it. the Asian countries will undoubtedly be looking our way. The more quickly we act, the better types we shall get. “We are also receiving a very desirable flow of British migrants. I give my warmest support to getting as many of the best migrants as we can.”