Senator McMULLIN.— In approaching this important measure it is wise for us to take a look at the present world situation in order to ascertain to what degree the Government’s proposals are warranted. I shall not weary honorable senators with a review of world affairs. I need only remind them that conditions to-day in Persia and the Near East contain the makings of a third world war. None of us should be blind to that fact. We know only too well that at any time the other side might choose we could become involved in another conflagration. Therefore, having regard to the international situation, it is wise for us to assess our preparedness to meet possible hostilities. There can be no doubt that in the event of the outbreak of a third world war we shall have very little time to get ready. In these circumstances we should urgently examine the state of our national defences. We should survey conditions to ascertain how best we can intensify our defence preparedness without materially interfering with our internal economy. That will involve a considerable amount of organization. Of necessity, we must divert materials into right channels and ensure that the most effective use shall be made of those materials. It is to be regretted that we are confronted with this task, but the present situation is so serious that we have no alternative but to tackle it.

Senator McCALLUM.— ...To-day, war comes like a bolt from the blue. We do not know everything that is in the mind of the Kremlin, but we do know that there is aggression in Asia. It may be that there is a parley in Korea only because the enemy is preparing to strike somewhere else. Persia is a danger spot, and possibly more than that. A war is going on in Indo-China. [Vietnam] Honorable gentlemen opposite say that the democratic forces are fighting a battle for imperialism, but in fact they are fighting a battle for civilization. War is going on under the British flag in Malaya. [Malaysia] It is war by midnight assassination and murder, but it is our war. Everywhere there is aggression...

Senator WORDSWORTH.— ...Furthermore, we are entitled to expect more moral support from those countries in our international dealings. Because of the situation in Persia, support from Pakistan, which occupies a prominent position in the Mohammedan world, would be particularly appreciated at the present time. One good turn deserves another...

...I am extremely pleased that more money has been made available for defence. There is no need for me to enlarge on the complexities and dangers of the world situation to-day, particularly in the Middle East. Indeed, the events of the past two months, and in particular the assassinations of the former Prime Minister of Persia, [Ali Razmara] who was favorably disposed towards the democracies, of King Abdullah and of Liaquat Ali Khan, prove that world tension is very high in the Middle East. That part of the world, of course, is vitally important to Australia and to the democracies generally. The time has come for us to face up to facts, and I was extremely pleased with the statement made by the Prime Minister (Mr. Menzies), in the course of which he made very clear our position vis-a-vis the Middle East and especially towards the situation in Egypt. I am only sorry that this attitude was not adopted at the beginning of the Persian crisis. I am quite certain that had we made a show of force that crisis could have been ended very quickly in our favour. The time has come when we must take a stand. We cannot allow countries with which we have agreements to treat them as mere scraps of paper. Our very existence depends on maintaining a footing in the Middle East, and we are largely dependent on the maintenance of oil supplies from that area. The British by moving out of Persia have placed themselves at a grave disadvantage. It has been said that if Britain had put troops into Persia it might have started a third world war. My own opinion is that it would not have done anything of the kind unless Russia were ready for a third world war, and if Russia were ready it would not have waited for the Persian crisis or the Egyptian crisis. Russia is quite capable of manufacturing a crisis itself when it wants one.

The Suez Canal is vital to us in peace and in war. It is vital to us in peace because it is our main line of communication by sea with Europe, and the Middle East is also our main line of communication with Europe by air. Unless we study this situation we shall not realize how important the Middle East is to us. The situation in Egypt might even have a bearing on the proposed Royal visit to Australia next year. I do not believe that the people of Great Britain would allow their future Queen to travel through that part of the world if British troops were not stationed there. In time of war we should be at a grave disadvantage if we evacuated the Middle East. Russia could put its paratroops into the Suez Canal area, and into vital oil areas in the Middle East, within a few hours. It could put a motorized division there within a few days, and an armoured division there within four or five days. If Great Britain evacuated all its troops from the Middle East it could not replace them in an emergency within a matter of weeks.

Britain has been accused of imperialism in wanting to maintain forces in the Suez Canal area, but Britain is only asking that the provisions of an existing treaty with Egypt be observed. In Persia, also, Britain asked only that the treaty with that country be observed. I am very pleased that Australia’s attitude to those problems has been made clear. Australian troops fought in World War I and World War II. It seems very probable that if there is to be a third world war Australian troops would again fight in that area.