43.13/8–350: Telegram
The Secretary of State to the Embassy in Australia
19. Fol FYI only. In talks with Pres, SecState, SecTreas and at lower levels in Dept,1 Menzies and party have raised question of dollar financing needed to implement 5 yr Australian immigration and development program. Latter as yet described only in broad outline, but dol aspects have been discussed in more detail. Total dol credit requirements of $300–850 million estimated by subtracting from total external cost of program value of materials procurable in soft-currency areas and with dollars from sterling dollar pool. PM has indicated that if such a sum not obtainable, program cld probably be carried out with $250 million, but this rock-bottom dol figure. Wld like line of credit available over 5 yr period. First $50 million wld cover such items as agric mchnry, tractors, earth moving and mining equipt, timber, steel, and plant for iron and steel industry.
[Page 207]In outlining program Australians have stressed desirability from viewpoints of building up manpower and econ potential in Australia, relief for population pressures and problems in Eur, optimum utilization total resources. In view probable scarcity key materials here, have emphasized urgency early consideration dollar problem.
Dept has participated in talks on fact-finding basis but at same time has made clear wld prefer application be made to IBRD rather than to Eximbank. (British, who also apparently favor IBRD approach, said to have assured PM in London that such a dollar transaction would be welcomed and that service charges would be given priority if necessary as regards dollar pool resources.) PM talked Wed with Eugene Black, Pres IBRD, whose preliminary reaction, subject to further study, was encouraging.2
Party departs for Ottawa evening Aug 3, but probable one or more will remain Washington some time to follow matter through. Summary any further developments will be cabled, full details by pouch.
No mention has been made Pacific Pact presumably because of Spender’s impending visit and emphasis Menzies placing on dollar financing Australian economic program. Menzies and party have made excellent impression on all officials with whom they have talked and Menzies’ speeches before Press Group and Congress particularly well received.3 Dept considers visit has been success and will confirm present friendly attitude Menzies’ Government toward US.
Sent Canberra, repeated London.
- For a comprehensive Department of State report on the Menzies visit, including accounts of the meetings under reference here, see infra.↩
- Regarding the August 2 conversation between Menzies and Black under reference here, see the Report Prepared by the Department of State, infra.↩
- Prime Minister Menzies delivered a luncheon address to the National Press Club on July 31. He also made separate addresses to the Senate and the House of Representatives on August 1 following a luncheon at the Capitol. For the texts of Menzies’ addresses to the Senate and the House of Representatives, see Australian Department of External Affairs, Current Notes on International Affairs, August 1950, pp. 572–576.↩