NO CHANGE NECESSARY

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

NO CHANGE NECESSARY

DOMINION POLICY REPAYMENT OF LOAN MR. NASH’S SUGGESTION (Ter Press Association.) AUCKLAND, this day. Discussing the loan negotiations in a speech at Auckland, the Minister of Finance, the Hon. W. Nash, said that after two months or more of conversations, an agreement had been reached which was not in any way whatever dependent on the New Zealand Government altering it.s policy. The terms might appear onerous to the extent that it would be necessary to repay £3,500,000 a year after next year, and there would be that much less for imports, but from July 1, 1941, the Dominion had the right to issue long-term securities on terms which it decided. Within the repayment period, if its finances improved, New Zealand could go to the LTnited Kingdom for all it needed and borrow to repay the loan on three months* notice.

“We owe £150,000,000 in London,” said Mr. Nash. “Are we forever to go on building up that debt? If we want to get rid of that incubus, we must pay it off. There is no other way.” Debt Reduction Fund He did not think it could be done just now, but he thought there should be worked out an overseas debt reduction fund so that year after year some of this money might be paid off. Even if it was not practicable to pay of £3,500,000 a year, there were still terms in the present loan which allowed New Zealand to pay it off provided the money could be raised.

Regarding the £5,000,000 Government credit, Mr. Nash said the money had been made available by the United Kingdom mainly for defence. This was not entirely so because, after some discussions, it had been agreed that the money could be used for the purchase of any Government goods, but even £5,000,000 Avould not meet the extra expenditure planned for defence in fne next two years. It was really in the form of an overdraft. A fair amount would be spent this year, mainly in buying aeroplanes and other equipment of that sort. Canadian Trade Agreement In Canada, he had agreed to extend the trade agreement for another year, although he felt that trade with Canada could not be greatly expanded unless that country bought more from us. Similarly, in Washington, he had discussed the possibility of expanding trade and had stressed the Dominion’s heavy adverse trade balance with the United States. He hoped some good would come from the conversations.