LEE LETTER

Wairarapa Times-Age, 20 April 1939, Page 9

LEE LETTER

DISCUSSION AT LABOUR CONFERENCE STRONG CONDEMNATION EXPRESSED. “AN UNMERITED REFLECTION ON MR NASH.” The fact that the annual conference of the New Zealand Labour Party last week passed a motion condemning in the strongest terms the action of Mr J. A. Lee, M.P., in issuing the political circular, known as the “Lee Letter,” is revealed in an official report of conference proceedings published in the Labour Party’s official organ yesterday. The report states that the following was the text of the motion carried: — “That this conference condemns in the strongest terms the action of Mr J. A. Lee, M.P., in issuing a circular in December, 1938, which conference considers to be a breach of party loyalty and discipline, an unmerited reflection on Mr Nash in particular and on the Government in general, and directs the incoming national executive, after consultation with the Parliamentary Labour Party, to take whatever action it deems to be appropriate in the circumstances — and which will safeguard the future, and to report to next conference. The issue was debated at great length. Mr Lee and the Minister of Finance, Mr Nash, were both heard by conference, while the Prime Minister, Mr Savage, and the Minister of Education, Mr Fraser, also spoke strongly. Other speakers heard were Dr McMillan, M,P„ the Rev Mr Nordmeyer, M.P., and Mr Morgan Williams, M.P. At the end of the debate the motion was carried by a large majority. Mr Lee’s circular letter was read in its entirety so that delegates would have every opportunity of judging the merits of the case. MR LEE’S DEFENCE. Mr Lee himself admitted issuing the pamphlet, but denied that he was responsible in any way for its public circulation. The criticism of the Minister of Finance and his financial policy, which was contained in the circular, was defended by Mr Lee. On the other hand, Mr Nash justified his financial policy and criticised strongly the action of Mr Lee,'who, while acting as Under-Secretary to him, has issued the document under discussion. The last speaker in the debate was the Prime Minister, who uncompromisingly condemned the issuing of the circular and spoke strongly against the action of Mr Lee. Speaking in the debate which followed Mr . Nash’s statement on financial policy, Mr Lee said Mr Nash was not accurate in saying that the Ottawa Agreements prevented exchange control being imposed earlier than it was imposed. The Ottawa Agreements did restrict matters relating to trade, but the Government had allowed £14,000,000 of sterling funds to escape for which this country received no goods whatever. That flow of sterling could have been checked at any moment if the Government had wanted to do so, he declared. What was wanted, Mr Lee added, was goodwill arid the production of more goods between now and December specially. If the Government survived that period it was going to show the way and last for 20 .years.