The Times MONDAY, MARCH 20, 1944. A Debt or Not ?

Manawatu Times, Volume 69, Issue 65, 20 March 1944, Page 4

The Times MONDAY, MARCH 20, 1944. A Debt or Not ?

Responsible opinion has shown hiei>easing concern at the growing liability of New Zealand to America under the operation of Lend-Lease and reverse Lease-Lend exchanges of goods anti supplies. Approximately stated, the last Budget provided for receipt of £40,000,000 worth of supplies ex U.S.A. and that New Zealand should supply in return £20,000,000 worth. So on face value, the Dominion would accept a liability on the current financial year’s operations of £20,000,000. is or is not that sum a debt owing by us to America? The statements made upon the subject by our Government .spokesmen of recent months have been to the effect that no real liability lias been incurred. But these explanations have been neither lucid nor definite upon the point; rather have they been in the nature of pious hopes. The issue has been again brought to the fore by a cable from Canada describing- the Mutual Aid Agreements made by that Dominion with Britain, Russia and Australia. This also advises of similar agreements for China and the French Committee of National Liberation. Strangely, New Zealand is not mentioned. That, however, may be due to this country’s comparative insignificance oil the world scale; that we have been overlooked in the cabled statement. The real significance of the Canadian statement lies in the contrast drawn by Prime Minister Mr. Mackenzie King between mutual aid and lend-leasc. A definite declaration is made that Canada’s mutual aid pacts carry no post-war liabilities. And the inference is made with equal clarity that Lend-Lease operations do imply liabilities. Such a view is further supported by explanations given. Whereas Canada’s mutual aid came into operation some three and a-liulf years after the war’s outbreak, America’s Lend Lease originated when that nation was still at peace. Lend-Lease was designed to provide Britain and others with war supplies “on other than a cash basis.” That phrase could mean on a credit instead of a cash settlement. The very title of Lend-Lease defines the plan as one involving a return in some way or other. Clearly it is not the title for a deed of gift. In view of the responsible Canadian statement surely one is now called for on the part of our New Zealand Government. What is our financial relationship with America?