Newly elected Labor Party devalues Australian dollar

Australia's newly elected government devalued the Australian dollar by 10 percent. And Prime Minister Robert Hawke said the economy was in such a mess he would have to review his election promises.

Mr. Hawke, who had promised tax cuts, job-creation spending, and an improved welfare system, told a news conference that the whole Labor Party program was going to be reviewed. New Zealand, Papua New Guinea, and Fiji - all closely tied to Australia - also devalued their currencies so as to remain competitive with their big neighbor.