BRITISH ATTITUDE

Evening Post, Volume CXXVIII, Issue 23, 27 July 1939, Page 7

BRITISH ATTITUDE

LOAN DISCUSSIONS

IF EMERGENCY ARISES

"If the London financiers attempt to impose upon this country terms which the Government believes to be inimical to the best interests of the people. I personally hope that the Government will say: 'Rather than accept your terms we will take steps, however drastic they may be, to pay off the whole of the loan of £17.000,000/" said the Rev. A. H. Nordmeyer (Government, Oamaru) when referring to the loan negotiations being conducted In London by the Minister of Finance Mr. Nordmeyer said that if an emergency s.'tuatfon was created by British .financiers attempting to embarrass the Government New Zealand would be justified in mobilising overseas funds in the same way as Great Britain itself did during the Great War. There were many who "sat on the other side of the fence politically" who would agree that such a courageous step by the Government would be in the best interests of the Dominion. "I hope the Government will say 'No surrender' as far as our principles are concerned," added Mr, Nordmeyer. "Any attempt by London to dictate terms to New Zealand should be resented by the Government and the reply given, 'We are capable of minding our own affairs.'" "NOT BANKRUPT." The:contention made by the Leader ||f the Opposition that New Zealand ,was in a state of bankruptcy drew a sharp answer from Mr. Nordmeyer, "A few months ago : some of the shrewdest and most far-seeing business men of New Zealand were shrieking with indignation because they were not able to bring all the goods they wanted Snto tiiis country," he declared "Would they have been doing that if they thought New Zealand were bankrupt? That is the answer to the assertion by the Leader of the Opposition." '.• Mr. Nordmeyer added that the business men were anxious to import goods because they knew there was a consuming power available, and they would bs able to sell those goods. Thsy knew that the country was not bankrupt. I and that its position and the position I of the people was sound. j .Mr. W. J. Poison (National, Stratford): Even a bankrupt must be clothed and fed. ' . Mr. Nordmeyer: If the Opposition had been in occupation of the Government benches, the business men would not have been clamouring for the right to import more goods. They would be anxious to get rid of the supplies of goods that would be lying on their shelves. They would have been forced into that position by the policy which the Opposition would have put into operation. INDUSTRIAL DEVELOPMENT. Adding that Mr. Nash had denied that the system of exchange control adopted by the Government was a breach of the Ottawa Agreement, Mr. Nordmeyer said that if any real benefit was to be derived from the Government's policy there should be a clearlydsfined plan of industrial development. It could be made a five-year plan if necessary. There would be some who would say that was a Russian idea. It did riot matter whether the idea came from Russia, from China, or from any other country. The fact that mattered was that the principle was inherently sound. :

Predictions made some months ago that New Zealand would encounter difficulty with its financial negotiations in London has been fulfilled, Mr. Nordmeyer added. There was a.good reason for those difficulties.' Both England and Australia were drawing near to a General Election. In Australia there was a real possibility that the public's choice would be for Labour. In view of that the financier was bound to do all he could to embarrass New Zealand, and make it awkward for this country to meet its commitments. He was compelled to do that to improve his own chances at the coming elections.