55 McFarlane to Chifley

Cablegram 1027 WASHINGTON, 19 October 1949, 1.04 p.m.

EMERGENCY SECRET

Board approved drawing 20 million United States dollars without any special condition. I foreshadowed further request minimum 20 million. No publicity here but you are free to announce at any time.

2. Southard stated that because the repurchase mechanism is unlikely to operate 'he would prefer a firm commitment on repayment but doesn't press it in this case'. He referred however to his general proposal on repayments and the pending discussions in the Board and it is clear he will press for commitment on our next request as previously advised to me. [1] Others spoke but no opposition. Papers following.

1 Subsequently Australia drew an additional US30 million in August 1952. Both drawings were repaid by 30 June 1955.

[AA: A4940, C23]