41

Chifley to Dedman

Cablegram F2 CANBERRA, 16 July 1949, 8.35 p.m.

MOST IMMEDIATE SECRET

Your F6 and F7. [1] The United Kingdom resolution impresses me as being a gesture to reassure United States that British Commonwealth is pursuing same broad objectives as themselves and as such may serve a useful purpose.

I take it that object of amendments you propose will be to call attention to ways in which both international measures such as promotion of East-West trade and development of backward areas and domestic measures to sustain employment and incomes can contribute to these ends.

You will of course have well in mind that Australia may have to engage in direct negotiations with banking agencies of United States government for financial aid and that these negotiations might be influenced by attitudes on broad international policy as evidenced in resolution of this conference.

On Cripps’s opinion as to borrowing prospects (para 9 of your F6) we await further details which you will no doubt obtain in discussion with McFarlane and United Kingdom Ministers and officials.

From first survey of dollar budget for 1949-50 it appears that maximum savings to be made could not possibly exceed 10 millions.

We assume that you will convey this to United Kingdom authorities and we will be interested to hear their reactions.

1 Documents 39 and 40 Respectively.

[AA: A4311, 29/4]