N.S.W DEBT

Rotorua Morning Post, Volume 1, Issue 149, 16 February 1932, Page 5

N.S.W DEBT

MR. LYONS SURPRISED AT ATTITUDE OF MR. LANG "UNSATISFACTORY POSITION" « CANBERRA,' Monday. Mr. J. A. Lyoris bas :givbn the aSfe'urance asked for by Mr. J. T. Lang on February'12. The following telegram has been serit to Mr. Lang by Mr. Lyons: "Refbrring to your. telegram the Comlhonwealth Government is unable to uriderstand why independently of Whether litigation is or is" liot pendihg hetween the Commonwealth and New South Wales, your Government should hesitate to advise the Commonwealth what interest is due to holders of New South Wales securities and what contribution your Government is prepared to make towards paying it. Surely these are simple facts which sh'orild not he cloiided by raising legal t'eChnicalitieS* Tlie object of the inquiry contained in my telegram of Fehfuary 10 Was to asc'ertain tlie preeise facts, in "order that the payment of ' overdue interest "might" be expedited and the present unsa'tistory position cleafed up. Iii these circumstances I give the under tald'ng which you ask for iri your telegram, but at' tbe sarne time canriot r e'ff aiii from expressing my astoriishment tbat 1 your Government has asked for such an undertaking." In reply to the request of the Prime Minister that the New South Wales Government should pay f £707,763 in partial discharge of the interest due to overseas bondholders, the - State Premier, Mr. Lang, telegraphed on February 12: "Counsel advises' me that in view of the existence and threatened litigation by the Commonwealth Government against New South Wa'les it is necessary that the Commonwealth should undertake that it will not, without the consent of this State, use or suffer to he used any reply to your telegram in- evidence against this State, in any pending future litigation."