DEPARTMENT OF STATE Memorandum of Conversation
DATE: July 28, 1950
SUBJECT: Internal Development in Australia
PARTICIPANTS: The President Prime Minister Robert Menzies of Australia Secretary Acheson
The Prime Minister brought up the subject of Australia\'s need for development and tied this in, as he had with his talks at the Department, with the program for large immigration. He stressed the importance of development in the basic industries and housing, and in irrigation projects which would broaden the base of agricultural production. He spoke of the urgency of this problem and the need for dollar funds. He thought that the dollar amount over a period of five years might be $250,000,000. He said that the International Bank from many points of view seemed to him the best source for these funds. However, the great difficulty with this source was that the International Bank wished to finance projects, and that would require an interminable time with engineering reports, etc.
The Prime Minister said that Australia had a number of projects, one of which the Snowy Mountain project, was already being undertaken and others would soon be ready. To carry these forward and to get materials for basic industry expansion could best be served by a line of credit to be drawn on as needed for commodities. He thought that the Export-Import Bank seemed better suited to accomplish this purpose within practicable limits of time.
The Secretary stated that a working party had been organized from the various Departments of the Government to meet with the Prime Minister\'s staff, analyze these needs and make recommendations. The Prime Minister spoke with appreciation of this work and agreed that beyond stating the urgency and importance of the need he did not wish to go into details with the President.
No other matters of substance were dealt with in the conversation.
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