Repercussions Expected in Australia

Otago Daily Times, Issue 26545, 21 August 1947, Page 7

Repercussions Expected in Australia

Rec. 10 p.m. CANBERRA, Aug. 20. A frank warning that the dollar crisis enveloping the world had rapidly worsened and that Australia faced drastic measures was given to the Premiers’ conference to-day by Mr Chifley. He sffid that unless the situation eased there would have to be 6evere restrictions of imports into Australia. “ 1 believe our economy is geared to meet this shock if everybody plays the game,” he added. “We have to be prepared for these repercussions. It would be a sheer and complete delusion if Australian people think they can escape the economic difficulties of Britain and perhaps finally of the United States.” He was hopeful that the difficulties might be cured by some ameliorating measures emerging from the financial

talks now taking place in Washington. In the last three months, and particularly in the last couple of days, the position had deteriorated rapidly. The sterling balances held by Australia in London were “ only a fleabite " compared with sterling holdings of India, Egypt and other lands which were also involved in the present crisis The crisis was due to the following factors:—First, that the American loan to Britain of £1,350.000.000 could only purchase about 40 per cent, of the volume of gpods expected; secondly, that the rehabilitation of Europe had not been achieved to provide much-needed export markets for Britain; thirdly, that Europe to-day was experiencing utter misery unparalleled in history, and, fourthly, that there could not be a prosperous Europe without a prosperous Germany or at least a Germany able to maintain herself.