Essay on people power and Politics

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During 1975, the government also was involved in the 'Overseas Loans Affair'. The Whitlam government had a number of plans it needed funding for, including the construction of a natural gas pipeline, the electrification of interstate railways and a uranium enrichment plant. Some of Whitlam's ministers sought to raise an overseas loan of $4 billion to fund these projects, but rather than go to the usual American and European sources, they sought financing from the oil-rich Middle East. A Pakistani broker was used to secure the loan and the entire process was considered questionable by members of the government, media and public. In the end, no loan was ever obtained and no broking commissions paid, but Whitlam's government was made to look reckless and foolish.
In the face of economic difficulties and the political impact of the Loans Affair, Whitlam remained vulnerable throughout 1975. After a series of resignations in 1975, Opposition Leader Malcolm Fraser announced that the Senate would defer passage of all appropriations bills until Whitlam called another election. Whitlam refused, and this confrontation was followed by several weeks of constitutional crisis, which raised a number of crucial questions about Australian democracy and the roles of the House of Representatives and Senate in the Australian system.
Kerr, by now governor-general, took an active interest in the crisis and became convinced of the need to dismiss Whitlam from office. In a later statement Kerr said he believed that it was the democratic and constitutional solution to dismiss a prime minster who could not guarantee 'supply' and to let the Australian people decide the conflict. Kerr

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