MUTUAL AID

Dominion, Volume 37, Issue 236, 3 July 1944, Page 4

MUTUAL AID

Pact Between Canada And New Zealand

SUPPLIES FOR WAR PURPOSES

An announcement that a mutual aid agreement had been concluded between the Governments of Canada and New Zealand was made- on Saturday by the Acting-Prime Minister, Mr. Sullivan. He said the agreement was signed in Ottawa on June 28 by the Prime Minister, Mr. Mackenzie King, and Mr. Howe, on. behalf of Canada, and by the New Zealand Minister to Washington, Mr. Nash, and Mr. Firth, on behalf of New Zealand. “The mutual aid agreement between our two Dominions,” said Mr. Sullivan, “will meet the object defined by the Government of Canada in the Canadian Mutual Aid Act, which states that it is essential to the defence and security of Canada and to the cause of world freedom that Canada should make the utmost contribution to the victory of the United Nations. Through the energy of her citizens Canada has in this war assumed a place of eminence among the nations of the world, and is now one of the principal arsenals of democracy. Under the mutual aid agreements Canada is supplying the needs of such nations without regard to their means of payment, and the effect of the agreement will briefly be that at the conclusion of the war we, as well as the other nations concerned, will have no post-war debt obligation to Canada. “Under the agreement,” continued Mr. Sullivan, “New Zealand will pay cash for her requirements from Canada up to an amount approximately equal to the proceeds of New Zealand’s exports to Canada and the balance of the Dominion’s requirements from Canada will be a charge against a Canadian mutual aid appropriation set aside for the purpose. Similar mutual aid agreements have been concluded by Canada with the United Kingdom, the U.S.S.R., China, Australia, and the French Committee of National Liberation. .

“The operative clauses of the agreement describe the conditions upon- which goods and services needed for the prosecution of the war will be exchanged between Canada and New Zealand, the conditions upon which goods so exchanged can be sold and transferred, and the provisions which will apply in respect of the return of certain particular goods such as ships.” Mr. Sullivan said that Article X of the agreement was of special interest. This was as follows: — “The Governments of Canada and New Zealand reaffirm their desiye to promote mutually advantageous economic relations between their countries and throughout the world. They declare that their guiding purposes include the adoption of measures designed to promote employment. the production and consumption of goods, and the expansion of commerce through appropriate international agreements on commercial policy with the object of contributing to the attainment of all the economic objectives set forth in the Declaration of August 14, 1941, known as the ‘Atlantic Charter.’ “The reference in this clause of the agreement to the Atlantic Charter is to Article 5 which records the, agreement of the President of the United States and the Prime Minister of the United Kingdom to bring about the fullest collaboration between all nations in the economic field with the object of securing for all improved labour standards, economic advancement, and social security,” said Mr. Sullivan. Post-War Years.

“The New Zealand Government is fully seized of the importance to which the Prime Minister, 'Mr. Fraser, drew attention in a statement in March last, of obtaining a "high level of employment throughout the world in the post-war years. It recognizes that this can. only be satisfactorily ensured by the highest degree of international collaboration, in the economic field. Such a policy is vital to New Zealand more probably than most countries since the prosperity of this Dominion is dependent to a substantial extent upon the maintenance of a high level of world trade. We are, therefore, anxious to see the development, and as early as possible, of those measures in the economic field which will minister to the economic well-being of all peoples and will maintain a high level of employment among the citizens of all nations. “The adoption of a policy of mutual aid by Canada, avoiding as it does. the creation of any post-war debt obligations to that Dominion, is one highly practical and effective means for hastening the conclusion of the war and thereby ensuring that in the post-war period such impediments to the development of a policy of effective international economic association are. avoided. In enunciating this policy the Prime Minister of Canada, Mr. Mackenzie King, said in the Canadian House of Commons: — “ ‘Since early in the war the Government has taken the position that the accumulation of large war debts was contrary to the public interest. This policy has been endorsed by Parliament on several occasions. It is notable that a similar policy was adopted by the Government of the United States with the passage of the Lend-Lease Act on March 11, 1941 —nearly nine months before the United States entered the war. The United Kingdom, which is the third large provider of munitions and war. supplies for the use of other United Nations, has pursued a parallel policy in providing supplies to Allied Governments unable to nay for them.’ ” Mr. Sullivan concluded by reiterating how much the United Nations owed to Canada for her farsighted and liberal policy in providing mutual aid where Allied Nations have not sufficient Canadian dollars to pay for necessary materials. The agreement was a valuable contribution to the financial strategy of the war and of real assistance also to the prosperity of the post-war world.

PLEDGE BY MR. FRASER

(Official News Service.) OTTAWA. July 1. Applause greeted mi announcement byMr. Mackenzie King in Parliament today, in the presence of the New Zealand Prime Minister, Mr. Fraser, on the signing of the mutual aid agreement between Canada and New Zealand. Mr. Fraser expressed appreciation of the mutual aid principles that had been so carefully worked out by the Canadian Government. adding: “These principles are appreciated particularly -because of the clarity with which they state that tlie mutual aid transactions carry with them no hampering post-war financial liabilitieMr Fraser stressed the word mutual, and said that New Zealand would gladly make resources available within the means at her disposal. This war requires au all-in effort, in-which we are all pledged to exert our efforts individually mid collectively to the utmost extent in order to achieve victory for all. In that pledge of unremitting effort we m New Zealand, with you in Canada, hope to carry out in its fullness the true spirit, of mutual aid." , Mr. Fraser thanked Canada tor the help which had invariably been extended when requested by New Zealand in the form of munitions mid other war equipment. remarking: "We have never asked in vain." He expressed New Zealand's admiration for Canada's contribution to the war through the amazing development of her industrial resources, the mobilization of her manpower, the exploits of her lighting forces, the forging of a good-neighbour policy with the (inited States, mid the famine relief for Greece mid India. “Again, your ueceptance and carrying out of the air-training scheme, with all its complexities and perplexities, has placed the rest of us under a debt of gratitude to your Dominion.” lie said. “Canada cap say that equally with the United Kingdom and all the oilier British Dominions she has given to the limit of her resources.”

Mr. Fraser also told the Canadians how grateful New Zealand was for the unstinted hospitality extended our air trainees here. He-said this in reply to Mr. Mackenzie King. who. in introducing him. had declared Canada's pleasure in having the New Zealanders here, and expressed the Dominion's fondness and admiration for them.

Mr. King asked Mr. Fraser to take back to the Parliament mid people of New Zealand a message of a pprecitili-ni of New Zealand's war record. Be said no country had entered more wholevieantedla’ into the struggle