help with painting walls

Guys,

I was trying to search the internet to ID what paint was used on this wall for a 1960-70's weatherboard (bought recently). Not even sure if it was paint, i'm guessing it was some kind of glue for some wall paper? It's very rough and builder/carpenter doesnt know what it is. Instead of repainting, he has recommended to totally rip them off and re-plaster... but my budget won't just allow for that so i'm thingking of repainting it as is? Not sure if it will come out okay though - any suggestions? or would i be better off with a wall paper and not repainting?

i hope somebody can help. thanks.

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