PETROL AND WAR

Taranaki Daily News, 19 September 1940, Page 8

PETROL AND WAR

By Telegraph—Press Association.

CONSERVING EXCHANGE LESS USED MORE DOLLARS SITUATION EXPLAINED

Wellington, Last Night. "The more people of New Zealand deny themselves the use of petrol the greater their contribution to the common war effort will be," said Sir Harry Batterbee, High Commissioner for the United Kingdom in New Zealand, at a New Zealand .Motor Trade Federation dinner to-night in explaining that the purchase of petrol in the Netherlands East Indies often involves an inroad on dollar exchange. "I recognise, and we all recognise, how important petrol is to trade and industry and how hampering any restriction on its nse must necessarily be," said Sir Harry. Conservatioh of Exchange. "But, on the other hand, there is no need for me to emphasise the importance of conserving , foreign exchange, especially dollars, when every . dollar available is required" tb buy aeroplanes, guns and munitions of all kinds for the defence of those hard beset people of Great Britain —and of course the defence of Great Britain means the defence of New Zealand. "I often hear the question asked: 'Can we not avoid the use of foreign exchange and obviate the need for such strict economy by buying from the Dutch East Indies? I think there is soxne misconception about this. Because the Dutch are our gallant allies in the war people have thought that Dutch currency is,_for practical purposes, the same as sterling. Not in Sterling Area. "This is not so. We have, it 3s true, an agreerrient with the Dutch which fixes the rate of exchange,' but the Netherlands East Indies cannot be regarded, for the purposes of exchange, as part of the sterling area and consequently any purchase in the Netherlands East Indies gives rise to claims on our foreign exchange resources. "In particular the purchase of petrol in the Netherlands East Indies xnay involve, and indeed often does involve, an inroad on the dollar exchange. So it all really comes to the same thing. In the end you cannot buy petrol without danger of an inroad on the dollar exchange. "The co-operation which is being given by New Zealand in the limitation of petrol imports is-most warmly welcomed in the- United Kingdom. An expression of the United Kingdom Government's appreciation has been conveyed to the Dominion Government."