Borrowing- and Defence

Gisborne Herald, Volume LXVI, Issue 19990, 15 July 1939, Page 16

Borrowing - and Defence

Sir, —-‘Truthful” states the £24.000.000 mentioned in the "Lee letter” referred to a later date. The letter, although written only last year, referred to the earlier inheritance of the above amount received from the previous Government. He states that the only figure quoted for defence is £0,000.000, and suggests that I made a mistake when 1 mentioned £16,000,000. I did not state that Mr. Nash was applying for any definite amount for defence; I merely wrote that this was the amount quoted in the columns cf the press by critics of the Government. ■He suggests that I am in error when 1 state that the necessity for this abnormal defence expenditure was unforeseen before the 1935 elections and says England has -been arming for three yc-ars. -They certainly have, but that does not cover the period of which I wrote for at that time there was no thought in the mind cf any political party in New Zealand that the defence problem would assume the proportions it has done to-day. “Truthful” complains that “it is not

difficult to .sco that the Government's policy cf -borrowing wholly in New Zealand has led to the present mess," and yet he-writes: “There seems •-noreason why New Zealand should not stand on her own feet instead of having -to rush to England for a loan. ’ . LABOUR.