WORD OF WARNING TO N.Z. ECONOMY

Chronicle (Levin), 20 December 1947, Page 5

WORD OF WARNING TO N.Z. ECONOMY

AUCKLAND, Dec. 19. The post-war world might have to face up to greater economic dilficulties than it had so far experienced, said >Sir Sydney I'arkes, chairman of directors of tlie National Bank of New Zealand, who is visiting Auckland in the course of a four montlis' tour of branches oi the ba(nlc throughout the Dominion. Bir Sydney will spend Christmas in Auckland and will later visit North Auckland. He is expected to leave on his return to London toward the middle of Fehruary. D.iscussing international affairs, Sir Sydney said the brealtdown of the Foreign Ministers' eonference in London- had nofc -strr"prisedhim. It was clear that the democracies would not reach a satisfactory understanding with Russia. World economic and political stabilitv -depfended on ihe friendly cohesion of the Englis*! speaking peoples. The full implementing of the Marshall plan to provide financial aid for West--ern Europe was now more than ever desirable. Sir Sydnev said the Marshall plan would stimulate trade between Britain and Western Europe where the capacitv of the markets was still weaic. An increase ih trade yielding credits convertible in the hard eurrencv area, would help not- onlv Britain but also New Zealand and other eountries for whom the dollar shortage was a serious problem. A note of caution to New Zealand 's economv. He had been impressed with the outward signs of prosperity in the Dominion, he said, but he wondered if that prosperitv might prove ephemeral. Very high prices were now being paici for New Zealand 's primary produce but it was questionable if the world would be able to alford to buv at -these levels for a sustained period.