LEASE-LEND SYSTEM

Bay of Plenty Beacon, Volume 6, Issue 69, 4 May 1943, Page 7

LEASE-LEND SYSTEM

EFFECT ON NEW ZEALAND

The effect of the war-time. leaselend system on New Zealand -was the subject of discussion of the monthly meeting of the Auckland Provincial Executive of the New Zealand Farmers' Union on April 21. Mr A. C. A. Sexton, solicitor to the executive, wrote stating that for some time lie had been endeavouring to get. information regarding certain aspects of Ihe system. He had suggested to the Auckland Chamber of Commerce that the Associated Chambers be asked to ob-

tain a statement from the Govern-' me.nt n.s lo the. actual position. New Zealand as a whole, and farmers in particular, were likely to suffer considerably Trom the. low prices at which primary produce was being sold. This was not so as between New Zealand and America, but It seemed likely that there would, be considerable disadvantage In connection with dealings with other pans of the British Empire. lie felt that the desirability of a fuller investigation of the matter should be impressed strongly upon the Government.

The President (Captain 11. INI. Ruslnvorth) said that, when the U.S.A. made the lease-lend arrangements with Britain its terms were extended to all parts of the. Empire. There was. no .separate agreement between the United States and New Zealand, and in receiving goods from America the Dominion became a debtor to Britain and not to America. He moved the following motion:— "The Provincial Executive directs attention, to the operations of the Lend-Lease and the Lend-Lease: in' Reverse schemes. It appears that the former is operated under the LendLease Act of U.S.A. between the Governments of Great Britain and U.S.A., while the Reciprocal Aid Act of the U.S.A. covering LendLease' in Reverse is operated between the Governments of New Zea- ! land and U.S.A. This seems the result in New Zealand adding to its debt to Great Britain whilst becoming a creditor to the U.S.A. If there is a general cancellation of these war debts at the end of the war the New Zealand taxpayer will have to accept the burden of loan monies expended in New Zealand on the Lease-Lend in Reverse. Wc consider that the situation should be carefully examined so that ordinary business acumen should be applied by the Government of New Zealand to these Lease-Lend in Reverse agreements.'' The motion, which was secondert by Mr A. McConaughy, was carried.