Rhodesia Stops Payments

Press, Volume CVI, Issue 31116, 20 July 1966, Page 13

Rhodesia Stops Payments

(N.Z.PA. Reuter —Copyrfght> SALISBURY, July 19. The Rhodesian Finance Minister, Mr John Wrathall, said last night that he had asked Rhodesia’s Reserve Bank to block payments to British and other sterling area exporters on goods shipped before last December 18.

In a nation-wide radio and television broadcast, the Minister said he had taken the step reluctantly. His country owed the British motor industry alone more than £1 million. Mr Wrathall indicated that the move stemmed from a decision by the British Treasury not to allow the Rhodesian Reserve Bank’s London

funds as payment on British and sterling goods shipped before December 18. The decision could only result in hardship to exporters in Britain and other members of the sterling area, he declared, adding: “Alice in Wonderland pales into insignificance beside this episode.” Britain took, over control of Rhodesia’s assets in London last December after the lan Smith Government unilaterally declared independence. Britain had now decided that the Treasury should no longer allow the use of Rhodesia’s reserves in London for payment of travel, family maintenance and educational expenses, Mr Wrathall said. “It would seem, therefore, that the British Government has now decided to starve children and aged dependents living or studying in England, and to stop Rhodesians from visiting their relatives in that country, in a further effort to bring us to our knees.”