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Political Factors
In imposing the new cuts.
Ministers are likely to be in- <*>
fluenced by political far-tors
affecting such items as tobacco
and "films, and there' wi^l lie a
strong temptation to avoid further
heavy restrictions on these two im
ports.
Cabinet, in reaching its final de
cision, will also take into account
Australia's gold exports, expected
aies of wcol to America and other
exports to sterling countries tha:
c^uld be sold in the dollar area.
All these factors may modify the
present arbitrary estimate of the
firther $30,000,000 to 540.000.000
cut.
This afternoon Mr. Chifley con
ferred with Senator CourUce and
the Secretary of the Treasury <Mr
S. G. McFarlane), who has been
attending the Empire talks on ster
ling balances in London. From
this conference emerged the deci
sion to make an urgent review in
anticipation of final clarification
->f Empire needs from the London
talks.
Earlier today Senator Coat
tice said:—"Further cuts in Im
ports from dollar antes HteatvJn
evitebfe. As -the Cot£mmre?Mli~
is onaMe to get. 4ollna>tt looks
as though ttaecnts made receatty
will have to be deepened and ex-
tended over a wider range of
items.
'-If we are to do all that Britain,
whose dollar needs are desperate,
wants us to do, there will have to
be further severe restrictions on
cur imports from the dollar areas.
"Although these will be unpopu
lar, there seems to be no escape
from them. Britain is in much
greater need of dollars than is Aus
tralia, and she is making much
more drastic cuts in her dollar ex
penditure than is Australia."
Senator Courtice added that
major items of dollar expenditure,
such as petrol, newsprint ad to
bacco, would probably be affected.
The Prime Minister announced
tonight that the Federal Govern
ment wonld be able to achieve the
desired redaction of 30 n.c in
dollar remittances to DS film
companies under the present
austerity plan without imposing
a special tax.
The new proposal provides for
part of the dollar earnings of the
companies to be spent on the de
velopment of the Australian film
industry. Details Bill be announced
after final negotiations with the
companies have been completed
Mr. Chifley has sent a letter to
the principals of the companies in
'the United States outlining details
': of the plan which will be acceptable
jto the Australian Government
The 30 p.c. cut is calculated on
i the base year 1946. when earnings
on American films totalled about
!$6 600000
$