STERLING & TRADE

Wairarapa Times-Age, 17 June 1939, Page 7

STERLING & TRADE

PRIME MINISTER REPLIES TO BRITISH CRITICS CANNOT HAVE IT BOTH WAYS. IMPORT CUT CONSERVING CREDIT. (By Telegraph—Press Association.) WELLINGTON, This Day. “ A sterling surplus can only be thb result of being very sparing in our imports,” said the Prime Minister, Mr Savage, when referring yesterday to a cable message from London concerning New Zealand’s sterling requirements. “The whole of our efforts have been given to providing a sterling surplus and the least they might do is to give us a chance. “There is any amount of room for difference of opinion as to the methods as to how we should control our imports,” said Mr Savage, “but we cannot take more than we are able to pay for. Another thing is equally definite so far as we are concerned. We are ready to make an agreement with Great Britain tomorrow if necessary, to exchange goods for services in equal proportions and of equal value. That was told to them in 1937 and that is the position still.” Mr Savage said that the message seemed to be contradictory in its statements. “They complained about the restriction of imports and at the same time complained about the disappearance of sterling in London,” said Mr Savage. “They cannot have it both ways. There is only one way in which we can conserve our overseas credit, and that is not to spend it. We have sent a man to London to discuss ways and means with those concerned, and we want to make the best possible arrangement. “They can rely on it that we will live up to our obligations—we will not make any agreement that we cannot carry out.”