By September 1950, 155,500 Displaced Persons from Europe had been admitted to Australia, most of them under government contract for two years. Their adjustment to the country's economy has been good, for they are willing, industrious workmen, though not highly skilled and their absorption has as vet produced no disturbance. Because of accommodation shortage they mostly still live in camps with workers usually separated from their families, a situation which they accept provided they see the possibility of building or owning their own house eventually. For single people and childless couples this long-term plan appears to be perfectly feasible, but for the men with dependents it is very questionable and the future of the latter group does not at the moment seem a happy one. Despite the present camp life it is the official policy not to permit minority communities to form, but rather to press for speedy assimilation ot the D.P.'s as individuals, the main weapon for this purpose being language teaching. The learning of English is slower than had been hoped for and reflects the relative failure of social adjustment and acceptance, since few D.P.'s are making the necessary personal contact with Australians which would make them wish to enter further into the new culture. In the author's opinion this failure is due to the two groups being more distant from each other than either realizes, with the result that both are making inadequate efforts at mutual understanding. A brief description of Australian society is given to illustrate this point. Hostility is not marked. The displacement neurosis with which many D.P.'s have been afflicted as a result of their past sufferings does not show signs of disappearing under the present conditions, and Australian psychiatric practice seems at the moment inadequate either to assist in the removal of this burden or to ensure adequate diagnosis and treatment for non-English-speaking immigrants who become more seriously mentally ill. Government planning of the migration has so far seemed to be good on the economic side but lacking on the social side, and it is suggested that social assimilation requires more energetic measures and some sociologically trained staff to redirect the present efforts of voluntary bodies. [ABSTRACT FROM AUTHOR]