GENEROUS SETTLEMENT

Otago Daily Times, Issue 26175, 11 June 1946, Page 5

GENEROUS SETTLEMENT

AUSTRALIA AND AMERICA

IMMEDIATE BENEFITS (.From C. R. Mentiplay, N.Z.P.A. Special Correspondent) (Rec. 9 p.m.) SYDNEY, June 10. Settlement of lend-lease between the United States and Australia is undoubtedly a greater memorial to peace and victory than any parade could be. By it, Australia has received recognition of her war effort in a manner more convincing than any other. She has been relieved of a crushing burden of debt, and at the same time been assured of full support by- a powerful neighbour in the years oi rehabilitation and expansion that lie ahead. The immediate benefits secured by the work of the late Senator R. V. Keane, Mr Arthur Moore, of the Division of Import Procurement, and the Prime Minister, Mr J. B. Chifley, are most impressive. In preparing the Budget, Mr Chifley will be able to consider £100,000,000 as an unexpected saving for Australia. When lend-lease and reciprocal aid ended in September, 1945, America had supplied Australia with goods valued at £385,000,000, and Australia had replied with £320,000,000 worth of reciprocal aid. The difference of £65,000,000 will now be discharged for approximately £8,400,000, of which £6,200,000 will be paid within 90 days. Under the agreement Australia will take over machine tools and other equipment, non-combat aircraft and £2,000,000 worth of naval and military surpluses. Tonic Effect on Industries The planes referred to include 109 Dakota transports, 11 Catalina flying boats, and 41 special Catalinas. These, with their adequate spares, will make a great impression on Australia’s already expanding air lines. Australia can now dispose of them as she chooses. The immediate release of cars, trucks, and earth-moving equipment is expected to have a tonic effect on the building industries and on trade generally. Greater than these, however, are the long-term benefits to be derived by both countries from closer educational and cultural affiliations. The United States has been quick to realise that more than a cash settlement is involved in .an agreement of this nature. Of the money to be paid by Australia £2,200,000 will be spent in Australia on educational development and on expansion of United States institutions. Scholarships are envisaged by which American students will study here and Australian ones in the United States. The commodious libraries already established in" Australian cities will be provided with more facilities for reference, and information centres will be enlarged and reinforced. Effect on Trade The authorities here are cautious about predicting an immediate flow of goods from America to Australia. Three issues still stand in the, way of restoration of unrestricted trade between the two countries. For a firm basis to be established the loan to Great Britain must be passed, Australia must participate in the Bretton Woods Agreement, and the international trade conference proposed for this year must be successful. In all, however, the settlement may be considered a wise and generous one in which the account of past years has been fairly balanced ijtwith provision for a future of closer social and commercial relationships.