The news magazine of the South Pacific · since 1930

Pacific Islands Monthly, 15 March 1946Vol. XVI, No. 8

American Equipment In New Guinea

pp. 18-20 · Read in the full issue

Worth Countless Millions

Australia Wants "Compensation" For Manus Base

AfTrimT--. . CANBERRA, March 6.

USTRALIA is unlikely to sanction America’s application for the use of Manus as a post-war military base unless she is adequately compensated.

This is clearly indicated by statements made here by the Prime Minister (Mr.

Chifley) and other responsible officials.

Mr. Chifley told pressmen here there had been no Ministerial talks between repre sentatives of the US and Australia re garding the post-war use of Manus. Dis cussions might have taken place between less responsible authorities, he said.

Mr. Chifley stated that an Australian engineer had estimated that American installations on Manus were worth about £100,000,000 Australian. This huge expen diture, he remarked, would seem to sup port America’s claims for the use of Manus as a Pacific base. Previously, it had been stated that Australia would not mind America using Manus as a base pro vided Australia were allowed to retain her administrative control of the island, and the Empire’s ships were given free use of the harbour there.

Mr. Chifley also announced that the Australian Government was arranging with the United States to buy thousands of pounds worth of American equipment lying in the islands north of Australia.

The Americans claimed that at Finsch hafen alone installations and equipment cost more than £40,000,000. US authorities are not keen on having the equipment re

turned to America because of shipping shortages and storage difficulties.

In addition, strong industrial pressure groups in the US strongly oppose any recommendation to return the goods.

They point out this would not only use up vital shipping but would clutter up the markets and bar the sale of new goods being produced in the States.

On the other hand, Mr. Chifley has made it clear to US authorities that the equipment’s value to Australia is not one tenth of its original price. Mr. Chifley has also stressed that Australia wants only a fraction of the equipment stored in the islands. He has pointed out that Australia faces the same problems as America. She does not want to use up vital shipping to bring goods without real economic value from the islands. For that reason the Commonwealth was dumping much of its own equipment in the islands.

Official opinion is that America will have to sell dirt cheap if she hopes to realise at all on equipment and tools left in the South-west Pacific. Other wise, Australia’s attitude will be: “There it is, take it back ... if you can.”

The Rev. John Dixon, of the Methodist Overseas Mission, arrived in Sydney by ’plane from Port Moresby in February.

He is accompanied by a Papuan, who is to assist in the completion of some trans lation work.

The Rev. j. W. Burton, who is visiting North America, has had the degree of Doctor of Divinity conferred on him by the Victorian University, Toronto, Canada.