AUST. & N.Z. PLAN TO OFFSET DOLLAR SHORTAGES

Gisborne Herald, Volume LXXV, Issue 22664, 15 June 1948, Page 5

AUST. & N.Z. PLAN TO OFFSET DOLLAR SHORTAGES

(N.Z.P.A.—Reuter— Coryright.)

(10 a.m.) CANBERRA, Time 15. Foundations for a joint plan to meet the possible exhaustion of the Empire dollar pool next year were laid at talks over the week-end between New Zealand and Australian Ministers, says the Australian United Press correspondent. The of the plan will be that Australia and New Zealand will become more and more reliant upon one another for goods now- received from the dollar areas.

Acute Shortage of Goods

One conclusion of the talks was that because of the huge volume of American goods expected to be poured into Europe under the Marshall Plan next year, not only must Australia and New Zealand expect to face a shortage of dollars but an acute shortage of Some essential goods that are now readily available and listed as high priority imports.

A considerable time of the conference was spent in examining the field of American goods which are expected to be in short supply to Empire countries. The correspondent adds that the New Zealand Ministers informed the Australian representatives that New Zealand desired a larger share of Australia's trade.

N.Z. Newsprint Supply for Australia Mr. Nash indicated that within a few years New Zealand hoped to be in a position to supply Australia with considerable quantities of newsprint. Preliminary negotiations for the erection of a newsprint plant in New Zealand were now under way. Mr. Nash asked that Australia should accept greater imports of New Zealand timber in order to balance the trade position between the two countries as quicklv as possible. Last" year New Zealand purchased about £14,000,000 worth of Australian exports but Australia took only about £3,000,000 to £4.000,000 worth of New Zealand goods. Both Mr. Chifley and Mr. Nash are reported to have agreed that the position facing the Empire countries would make even more stringent restriction on dollar spending inevitable next year. Both agreed to take all possible steps in co-operation to effect dollar savings.

N.Z. May Relicense Imports It is understood that Mr. Nash told Mr. Chifley it is proposed in New Zealand to relicense all proposed imports from dollar sources in the hope of being able to effect savings on less essential imports. Discussions “on matters of mutual interest to Australia and New Zealand” were concluded in Canberra yesterday. The talks which began on Saturday, were primarily between Mr. J. B. Chifley, Dr. H. V. Evatt and Mr. W. Nash and Mr. A. H. Nordmeyer, but were attended at various stages by other senior Federal Ministers. After the conclusion of discussions, Mr, Chifley and Mr. Nash made the following statement: “We have discussed matters relative to the common interest of Australia and New Zealand and also the international economic developments affecting our two countries. “We have considered the possibility of the availability of supplies to Australia and New Zealand improving in the light of the European recovery programme The conversations covered the difficulties that might arise as a result of the shortage of dollars for exchange and purchase purposes. “Another matter dealt with was how far New Zealand resources could be utilised to sunpplement the shortages in Australia and vice versa and the extent to which those resources could be made available to each country.” Canberra correspondents say New Zealand’s sterling problems have reached a stage where unless some arrangement of the type suggested is reached. New Zealand might be forced to curtail rigidly her purchases from the United Kingdom and sterling area generally. The present discussions could provide a valuable preliminary for Australia and New Zealand to the meetings in London between the leaders of the two Dominions and the United Kingdom Government.

Australia and the United Kingdom reached an agreement a year ago under which Australia virtually froze her sterling balances. Since then Australia has operated only upon current sterling balances, but in the first 10 months of the present financial year Australia had a favourable balance of trade with the United Kingdom of £22,592,000, Australian currency. The Australian and New Zealand leaders are reported to be discussing a scheme to give Australia and New Zealand recognition as Empire leaders in the Pacific, says the Sydney Telegraph’s correspondent in Canberra. They suggest that other Empire countries give Australia and New Zealand similar recognition as leaders in the Pacific as they give Britain in Europe.

The correspondent says other subjects the Ministers are reported to be discussing are, first, methods to help to solve quickly the Empire’s economic and financial problems due chiefly to the dollar crisis; secondly, closer defence co-operation and an expansion of the Empire's scientific defences; and, thirdly, the possibility of economic circumstances ultimately forcing Britain to approve of mass migration of people and industries to the Dominions. Another subject for discussion, says the correspondent, is how soon Mr. Chifley and Mr. Fraser should go to London for talks with the British Prime Minister, Mr. C. R. Attlee.

The present indications are that Mr. Chifley will go to London in July for a short visit.