OVERSEAS DEBTS

Wairarapa Times-Age, 11 August 1939, Page 5

OVERSEAS DEBTS

MR FORBES CHALLENGES GOVERNMENT SPEECH BY MR J. A. LEE DENOUNCED. STATEMENT OF POLICY DEMANDED. ißy Telegraph—Press Association.) WELLINGTON. This Day. New interest Ims been imparted to the Financial Debate in the House of Representatives by an amendment Io the motion before lh« 1 louse, moved lasi (‘veiling by the Kt. Hon. G. \V. Forbes. The amendment directly challenges the Government to disclaim any implication of the rcpndialion of its debt obligat ions.

Presenting his amendment,, Mr Forbes severely criticised the Government for having made no attempt to repudiate the sentiments of Mr J. A. Lee (Government, Grey Lynn), oi- to defend the lenders to New Zealand in Great Britain from the attacks of various Government speakers. He said that those sentiments did not represent the feelings of the people of New Zealand, and were an exceedingly poor return for the generosity of Great Britain to this country. Mr Forbes's amendment was:— That the question (which is the formal motion that the Speaker do leave the chair), be amended by the omission of all the words after ■that’ with a view to inserting the following words: "This House urges the Government to consider whether the time has arrived for it to state that this House has no sympathy with any suggestion of repudiation of our debts, either overseas or in New Zealand and affirms that the Dominion is determined to fulfil her obligations, both now and in the future. “That the Government gives an emphatic contradiction to any suggestions made in this House (implied or otherwise) to the contrary, and that this House expresses appreciation to the United Kingdom Government of the generous treatment accorded New Zealand in the recent financial negotiations in London.” "We are asked in the Budget to congratulate the Minister of Finance on the terms he obtained in London,” said Mr Forbes, “but that seems to me to be asking rather much. We should rather congratulate tnose who assisted him with the finance. A REPLY NEEDED. "The speech of the member for Grey Lynn in the House of Wednesday night practically repudiated the policy in the Budget and the statement by the Government in regard to the loan negiations. I cannot remember an occasion when a prominent member of the Government, in this case a Parliamentary Under-Secretary and practically a Cabinet Minister, has attacked his Government’s Budget and its financial policy and there has been no reply by a responsible member of the Government.

"No defence has been forthcoming to this attack on the Budget,” Mr Forbes continued. “It shows that the member for Grey Lynn, must stand in a very powerful position as far as the Government is concerned. It seems that he is able to attack the Government’s policy and there is no answer by a member of Cabinet.”

Mr Forbes pointed out that £lO,000.000 of the conversion loan in London had been provided by the Bank of England, and £6,000,000 by other banks. That, he said, had never been done for any other Dominion and none had been treated more generously. One would have thought if a member could not have given praise he would at least have kept quiet. Instead of New Zealand having to face the market conditions brought about by the Government’s policy the banks had shouldered the responsibility and were carrying the loan at what was a very favourable rate indeed. 3!. per cent at £99.

POOR RETURN FOR GENEROSITY. When one considered the very generous treatment of New Zealand it was a very poor return to refer to those who had helped the country as financial gangsters, Mr Forbes added. Could Mr Lee’s speech mean anything else but repudiation? There had not been one word of contradiction and that was where the Government was lacking. "Has the Government any sense of responsibility?” Mr Forbes asked. "Does it not intend to do something to counteract the impression that has been made by the speech of the member for Grey Lynn? I am a New Zealander. and it makes me want to hang my head in Shame when I consider the effect that speech must have had in the Old Country.” In the past New Zealand has received the most generous treatment from Britain that had been accorded to any Dominion. Mr Forbes said, and now apparently it was going to refuse to pay the debts it owed to the many people in the Old Country who, by giving the use of their money, had contributed to the high standard of living which this Dominion enjoyed. From the House of Representativesand through the wireless stations a repudiation sentiment was being fostered, and Mr Lee was trying to capitalise that sentiment. "It is high time we stated clearly where we stand,” Mr Forbes said. "I hope that the Acting-Prime Minister, in loyaltj' to his colleague who is now abroad, will do everything possible to counteract the impression that Mr Lee's speech must have made. If we break down the reputation we have for honest dealing it will be the blackest day in the history of New Zealand, for conditions will arise that will be worse than anything ever experienced in the depression, our overseas markets will be gone, and the support from Britain in defence on which we now lean so heavily could hardly be expected to continue.”