Canberra, 20 November 1967
Secret
Sterling Devaluation
The Cabinet considered the situation created by the British Government’s announcement over the weekend of the devaluation of the Pound Sterling by 14.3% […]
2. The Cabinet decided after consideration of the balance of advantage, that no change would be made in the currency value of the Australian Dollar. It authorised the Prime Minister to make an immediate brief announcement of this decision.
3. The Cabinet recognised that the effects of this decision would fall unevenly on the Australian economy creating problems for some industries, particularly some primary industries, e.g., wool and dairying. It agreed that in his immediate statement the Prime Minister should acknowledge this and should indicate that a study of the effects of the decision was at once being put in hand with a view to finding appropriate solutions to problems which might be created for areas of industry. The Cabinet had in mind that the study would be undertaken by relevant Departments and would be reported to a Committee of the Cabinet.
4. The Cabinet agreed that the Prime Minister would make a later more detailed statement on the matter on national television and radio on the following evening. 1
1 Holt made a television appearance on the evening of 21 November to explain the reason for the decision and its implications for the Australian economy. Significantly, he framed the decision in terms of an emergent national independence: ‘It was a difficult decision for Australia—but an historic one—for in a sense it shows that we have come of age as a nation […] The fact that we have been able to take up this independent position will, I hope, be a source of pride to all Australians because it demonstrates the strength of our currency and the sound economic position of our nation’ (transcript in NAA: A3211 1967/4855)
[NAA: A5842 VOLUME 18]