DOMINION LOAN

Gisborne Herald, Volume LXVI, Issue 20032, 2 September 1939, Page 14

DOMINION LOAN

MARKET DIFFICULTIES AUCKLAND INFLUENCES MR. NASH’S IMPRESSIONS TRADE TALKS REACTION (Per Press Association.) AUCKLAND, this day. Addressing a record luncheon gathering of the Auckland Chamber of Commerce yesterday afternoon, the Minister of Finance, the Hon. W. Nash, who was welcomed by Auckland businessmen, gave his impressions of his mission abroad. Recalling that he went Home to discuss trade, defence and finance, the Minister said the major financial object of his visit was to arrange for the conversion of the £17,000,000 loan. The atmosphere was difficult because of the heavy commitments of Britain for armament purposes. The United Kingdom had also curtailed the right of investors to transfer their securities. Australia, South Africa and the London County Council were operating on the market to the extent of many millions.

The second difficulty was that in April the Government had to decide on how tile import trade was to be controlled. In view of the acute shortage in the Dominion’s sterling funds, licenses were issued giving the right to import goods, but not guaranteeing funds to pay for them. , The

English manufacturers objected to being shut out of the market and, when he was in London he met many groups. The difficulty in this connection was that manufacturers were asking for the right to ship goods, but the financial houses were pointing out the position of the sterling funds.

Most Friendly Attitude

After meeting various organisations, there was a most friendly attitude. Efforts were, however, made by, interests in Auckland to place obstacles in the way of negotiations. These endeavours to “queer the pitch” were a very unfortunate aspect. “We were doing our utmost to ensure that a minimum of hardship should be caused to the United Kingdom,” said the Minister. “It was recognised that our desire was to give the maximum preference to the United Kingdom. Subject to existing obligations and our assurances to New Zealand manufacturers, we were determined to do everything in our power to maintain our ti-ade with Britain, and would gradually remove the restrictions when the conditions permitted. That was all recognised.” No objection hacj been raised in the Unuited Kingdom to establishing economic secondary industries in New Zealand, Mr. Nash continued. There were objections to using the import selection policy for the purpose of setting up uneconomical industries. An undertaking was given to investigate the Government’s commitments to existing industries and new industries, and to give every facility to British firms wishing to establish branches here in keeping with existing commitments. Defence Commitments Speaking of defence, Mr. Nash said that New Zealand had commitments to defend British interests in the part of the southern Pacific which had close interests with New Zealand, but the whole defence of the Empire was the paramount consideration governing New Zealand’s present defence activities and programme. Whatever was necessary to fit in with the Commonwealth defence, New Zealand would do. The course of action in event of a conflict was laid down. The position in Europe had made this precaution essential and had revealed the need of being prepared for sacrifices to defend the freedom of the Empire. Britain had never been stronger than to-day. The issue was not exclusively Danzig. The issue was whether one nation could be allowed to impose its will on another.