OVERSEAS DEBTS

Hokitika Guardian, 26 August 1932, Page 7

OVERSEAS DEBTS

HIGHLY IMPORTANT DISCUSSIONS

MR STEWART’S LONDON TRIP

WELLINGTON, August 23.

Highly important will take place shortly in London between the New Zealand Minister of Finance. Hon.' |y„ IDovinie iStewart, British Cabinet authorities and -Treasury officials. .ft as .likely that as . the result of -Mr Stewart’s visit to London tb. iwbofa question of the Domin'km’s overseas debt charges, and more part: cularly interest rates on loans whicl it ;is -considered pos• able to convert -will be brought under review. Referring /Jo Mr Stewart’s missior in reply to a question yesterday, f,h< ■Prime. Minister, Rt. Hpn. G, W. Forbes, said th© Government was • of tho opinion, that much might be done with the object of easing th© burder of overseas debts. Mr -Stewart wOuk rihaye , an,, invaluable whi’< in London of -establishing direct contact with.financial authorities, and, al though the exact natar© of the dis cucsions -to . take place could not b< -indicated, ct was pqssibl© that Neu Zealand’s annual interest bi’.J might b' reduced without creating -undue dis turbance and without affecting the Do minion’s credit in. London.

The possibility of an Australian conversion loan had recently been men tioned, and it might be advbaVe foi fl-oams generally to be re. viewed with the object of securing some general relief. There had neve - - been a time in the history of th .Empire when clone ‘contact between it component parts had been more d?s'r able* and jpuch might be achieved i the Dominions worked in concert or these highly important questions. The short-dated loan of £5,000,00' raised in London in June of last yea at 6 per cent, would mature in 193' 1 Mr Forbes added, and it might b found desirable to convert this, Men tion had been made some time ago o' the possibility of converting New Zealand's Funded War Debt of but it bad to be remembered that on! £11,100.000' of thiii was inc’uded r the £2,000,000,000 British' War Loa' conversion, and at present the tot' after lallowing for 'repayments, wa' £10,210,000. This £11,100,000 wa* borrowed from the British Govemmen but th e British bondholders would h directly concerned in ,the convergin' of the remainder of the ■ £2*4,000