MR. NASH PLEASED

Gisborne Herald, Volume LXVI, Issue 20031, 1 September 1939, Page 6

MR. NASH PLEASED

RETURN FROM LONDON LOAN REPAYMENT TERMS CONFIDENCE IN CAPACITY BENEFIT OF CREDITS (Bor Press Association.) .AUCKLAND, this day. General, satisfaction with the results of 'his mission, was expresed by the Minister of Finance, the Hon. W. Nash, on ! his return from San Francisco after four months visiting Britain, Ireland, France, United States and 1 Canada. He said he had benefited from the sea voyage after his strenuous negotiations in London. He expresed pleasure at being back in New Zealand. He was met aboard the liner by Mrs. Nash, the Minister of Labour, the Hon. P. C. W-ebb, the Director of Internal Marketing, Mr. F. R. Picot, the chairman and superintendent of •the harbour board, Messrs. W. B. Darlow and Holdcrness, and Mr. Nash’s private secretary, Mr. T. R. Aickin, who returned with Mrs. Nash a month ago. Mr. Nash was a popular figure among the passengers, having entered fully into the social life of the ship. Business Men’s Desire Britain, wants all the trade she can have, said the Minister commenting on, the attitude of the manufacturers and others towards New Zealand. "There is not the slightest 'doubt about the desire of businessmen to maintain the trade of this -market, but a fair proportion of them realise that we must make more goods ourselves and so develop the industries of New Zealand. Those who understand our problems' appreciate the position: and they are very fine people the way they talked to me.” Mr. Nash said the chief difficulties he encountered arose from “harmful propaganda” cabled -from New Zealand. He endeavoured to counter the effects of such propaganda by assuring business groups that the desire of the -Government was to r-econcile the volume of imports from Britain with the capacity of the Dominion to buy. The -manufacturers he met recognised that the Government had to take some action to ad-just its trade -to the reduced amount of sterling funds available. Effect on Importations Speaking of the £17,000,000 -conversion loan, Mr. Nash expressed his confidence that New Zealand would be able to -carry out the terms of the arrangement for paying off the total by 1945. While the terms might be considered difficult, he was pleased that the rate of interest and the price of the issue had been favourable. Repayment of the loan instalments of £2,000,000 in 1940 and £3,500,000 in each of the four following years would, of -course, have -the effect of curtailing New Zealand’s capacity to import during those years, -but this aspect had- been taken fully Into account during the negotiations. “I do not deny that there may be some problems to be faced if we have to import less,” he commented, “but as far as the bargain we have made is concerned, we will -pay what we have agreed to.”

The Minister declined to go into detail regarding either the' conversion loan or -the £9,000,000 of special sterling credits -arranged with the British Government, £5,000,000 of which were for def-ence and other requirements and the remaining £4,000,000 for commercial purposes. Operative Shortly

Asked whether the new commercial credits were being made available for the benefit of the import trade, Mr. Nash, said there had been some delay as certain administrative points still had; ,to be finalised, but the scheme would' be in operation very shortly Any British exporter who wished to send goods to New Zealand would apply to the Exports Credit Department, which controlled the £4,000,000 and would obtain a guarantee that sterling would be available on a definite date, and he would take this guarantee to his bank where funds would be provided immediately to the extent of 75 per cent of .the amount involved in the shipment, or probably in, the case of firms of high standing up to 100 per cent. It is expected l that the total amount of credit resulting directly from the £4,000,000 would 1 approach £6,500,000. When arrangements for payment were completed at the London’ end, the document would ,be sent to JvTew Zealand to 'be met by the importer in the ordinary way as it became due.

Mr. Nash was deeply' appreciative of the treatment he received in Britain which reflected a friendly feeling towards the people in the Dominion which was a contributing factor to the success of bis talks.