Reginald Francis Xavier Connor (26 January 190722 August 1977) was an Australian politician who served as a member of the House of Representatives from 1963 until he died in 1977, representing the Labor Party. He was the Minister for Minerals and Energy in the Whitlam government from 1972 to 1975.
Connor was born in Wollongong, New South Wales. He served on the Wollongong City Council from 1938 to 1945, and then in the New South Wales Legislative Assembly from 1950 to 1963. After entering federal politics, Connor became an ally of Gough Whitlam, who appointed him to cabinet when Labor won the 1972 election. As Minister for Minerals and Energy, he was noted for his strident economic nationalism. However, Connor is best known as the central figure in the "loans affair", which arose from his attempts to secure petrodollar loans from Middle Eastern financiers. His resignation from cabinet in October 1975 precipitated the constitutional crisis which resulted in Whitlam's dismissal a month later.
Connor died as the sitting member for the Division of Cunningham, precipitating the 1977 Cunningham by-election.
Connor attended Wollongong High School, of which he graduated as dux despite contracting pneumonia in his final year. He initially intended to pursue a career in analytical chemistry, but after his father's death in 1925 he entered the workforce to support his family. In 1926, Connor began working as an articled clerk under solicitor Charles Morgan. He handled industrial and workers' compensation cases for Morgan, but in 1931 was dismissed after a falling out. He passed the examinations required to practise law but was twice rejected by the Solicitors' Admission Board.
During the Great Depression, Connor established a successful car dealership and employed up to ten staff members. He "frequently clashed with the police over traffic and licensing matters" and was twice convicted of assault – in 1935 for pulling out a ladder from a council employee disconnecting his electricity and in 1938 for striking a customer who complained about the price of a car.
In 1950 Connor was elected to the New South Wales Legislative Assembly for the seat of Wollongong-Kembla, where he served until 1963. He was partly responsible for the introduction of the state's Clean Air Act 1961. Connor remained a backbencher reportedly as he was not a supporter of the dominant Catholic right-wing of the NSW ALP.
Connor's economic nationalism was popular with the Labor rank-and-file, and the 1973 oil crisis seemed to many to be a vindication of his views. After the 1974 election he topped the Caucus ballot for the second Whitlam ministry. But the flood of which accompanied the energy crisis proved to be Connor's undoing.
During 1974 Connor sought to bypass the usual loan raising processes and raise money in the Middle East through an intermediary, a mysterious banker called Tirath Khemlani. Because of strong opposition from the Treasury and the Attorney-General's Department about the legality of the loan (and about Khemlani's general bona fides), Cabinet decided in May 1975 that only the Treasurer, not Connor, was authorised to negotiate foreign loans in the name of the Australian government. Nevertheless, Connor went on negotiating through Khemlani for a huge petrodollar loan for his various development projects, confident that if he succeeded no-one would blame him, and if he failed no-one would know.
The Opposition proclaimed the Loans Affair a "reprehensible circumstance", which justified the blocking of supply in the Senate, leading to the dismissal of the Whitlam government a few weeks later by Governor-General, Sir John Kerr.
The journalist Paul Kelly wrote in his book November 1975: "It was the national interest that drove Rex Connor. He can be criticised for his naivety and poor judgement. But there is no charge against Connor's integrity... The Opposition implied in the lobbies that ministers were chasing personal gain. There is no evidence for this." Nevertheless, by the time Labor returned to office in 1983, Connor's economic nationalism and dreams of massive state investment in energy projects had been totally rejected.
Connor died at Royal Canberra Hospital on 22 August 1977, aged 70, following a coronary occlusion. He had been in poor health for two years .
One of his sons, Rex Connor junior, founded and led the Advance Australia Party.
State politics
Federal politics
Whitlam government
Personal life
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