Canberra, 27 November 1967
Personal And Private
Mr Anthony dropped in to see me this afternoon for a talk about the devaluation decision.
2. He said that he had great worries on his mind and wanted to start disclosing them, and in fact exposing them to scrutiny. He thought he might probably start with me. He does not want to impose upon you personally at this stage, but in due course he no doubt will, and in any event there are certain things he will want to say in Cabinet on Thursday,
3. I am giving you this story as best I can in his words.
4. He said that he is worried about the decision taken last week in Cabinet. He accepts that given the time and circumstances, a decision had to be made, and that the decision taken was probably the only one that could be taken. So this is not a matter of conflict in that respect. But he nevertheless feels it to be the wrong decision in the long run. It will land the Government into deep trouble. The prospect of subsidizing individual primary industries, including industries as large as wool and the difficulties of restructuring industries and the difficulties of assisting secondary industry, are all so great that he fails to see at this stage how they can be successfully tackled within budgetary limits. Altogether he can’t see where we are heading. He foresees a balance of payments crisis and feels a need for Australia to get the accent back on primary industry exports. That is why he worries about the decision.
5. e said that over the week-end he had discussions with ‘a friend’ who has since supplied him with a paper. He gave me a copy and asked that I should have a look at it with one or two in my own Department and tell him where the paper goes wrong, if indeed, it does. He gave me an extra copy to send to you, and he wants you to have it before Cabinet. This is why I send it now. 1
6. He said he prefers not to give me the name of the author of the paper, but he would let you know privately if you wish. Although I think I have made it clear already, I Ought to tell you specially that Mr Anthony was entirely friendly to the Government—but deeply troubled on the Government’s behalf[ … ]
1 Paper not traced.
[NAA: A4940, C4689]