HUGE DEFENCE OUTLAY

Waikato Times, Volume 124, Issue 20736, 21 February 1939, Page 7

HUGE DEFENCE OUTLAY

BRITAIN’S EVER-GROWING BURDEN

TOTAL OF £1,250,000,000 IN THREE YEARS

INCREASED BORROWING POWERS SOUGHT

Received Feb. 21, 1 p.m.)

RUGBY, Feb. 20

To-day’s debate in the House of Commons on defence was opened by the Chancellor of the Exchequer, Sir John Simon, whose speech was notable for its frank forecast of the approximate proportions in which defence expenditure in the coming year would have to be met from revenue and from borrowed money respectively. Sir John told the House he was working on the assumption that for the £580,000,000 which it was revealed in last week’s White Paper would be the total of expenditure on defence, including civilian defence, in the coming financial year, approximately £240,000,000 would he available from revenue and about £350,000,000 would have to come from the loan account. He added a warning that no one should draw any further conclusions—presumably as to the time or manner of further borrowing or as to the taxation proposals of the forthcoming budget—from that forecast.

The Chancellor claimed that the principle of borrowing for this purpose was established and acceptable and it was generally recognised that the financial strains involved in the reorganisation of defence were greater than the revenue could bear alone- What was necessary was that they should demonstrate ibis readiness to bear each year a proper share of the burden and in evidence of such determination he cited figures to show, taking the three years ending March 1940 together, that out of a total expenditure of about £1,250,000,000 for defence about £700,000,000 would have to be met from revenue.

Provision for the repayment of borrowed money in connection with the' present proposals was quite specific, said Sir John. When a department had received a duly authorised issue of loan money then interest at the rate of 3 per cent, was charged against that department. To the end of a five-year period and therafter the sums had to be repaid to the Exchequer. A resolution moved by Sir J-ohn Simon provided, firstly, for an increase in the borrowing powers authorised by the 1937 Defence Loan

Act from a total of £400,000,000 to £800,000,000 and, secondly, for a redefinition of the defence services for the purpose of the Act so as to permit expenditure on loan account for civilian defence and grants-in-aid lor essential commodities from the reserve fund.

Sir John said civil defence was more and more seen to he an essential part of defence as a whole and it was illogical that non-recurrent expenditure for air-raid precautions for example, should not benefit by the Act. Any expenditure, moreover, on food stores in connection with the safety of the country was obviously an appropriate subject for loans under the Act. Rearmament Reviewed Speaking of the formidable total defence expenditure with which the country was faced Sir John reviewed the progress of the rearmament programme. The first year had been largely one of preparation. The present year had been one of rapidlyincreasing production and the third one of great expenditure. They now contemplated it would be one with production at full blast. It would be a chronicle of provision of equipment for great increases in personnel in all three services. For the Navy personnel which was increased by 33,000 there was a great building programme including no fewer than nine capital ships for four years. The great inflow of regular army recruits and the record intake into the Territorial Army called for rewar reserve wlu'.ch would prioceed apace next year. The recruitment of many thousands for the Royal Air Force of high quality was matched by further augmentation of the sources of aircraft production. It was deplorable and grievous, Sir John Simon concluded, that so large a part of the resources of the world should be devoted to armaments when otherwise they might De available to promote and sustain peaceful progress but so long as no general arms limitation, genuinely and effectively secured, could be reached they must face a continuance of this heavy burden and face it in the confidence that British financial strength, British character and the inspiration of democratic taith would enable thorn to stand the strain as well if not better than others. Dr. Hugh Dalton, who was the spokesman for the Labour Opposition,

CAPACITY OF POWERS FIGHTING STRENGTHS COMPARED GERMAN JOURNAL'S ESTIMATES (Independent Cable) (Received Feb. 21, 1.30 am.) BERLIN, Feb. 20 The military publication “ Deut’Chewehr,” estimating the relative var capacities of other Powers gives Russia 9000 planes and 11,000,000 men, the United States 3700 planes md 2,500,000 men, 'Britain 6000 Oanes and 2,000,000 men, France '>ooo planes and 5,500,000 men, Italy iOOO planes and 2.000.000, Japan 2700 planes and 1,500.000 men. It estimates that British planes are -000 higher than last year, and Italian 200 more while France is given 300 fewer. The British figures do not include the Dominions. “A reliable estimate >f the armed strength of the British Empire is hardly possible,” the journal adds. AUSTRALIAN STEPS LARGER PERMANENT FORCE MILITIA STEADILY INCREASES (United Press Assn.—Elec. Tel. Copyright) (Received Feb. 21, 2.30 p.m.) SYDNEY, Feb. 21 The Federal Government has decided to increase the permanent military forces by 2000. The present permanent forces number about 3000. The strength of the militia has reached 61,359. The Minister of External Affairs, Mr W. M. Hughes, announces that enlistment will be continued until about 82,000 men are secured.

conceded that in consequence of the National Government's past foreign policy a great increase in Hie defences or the country was now inevitable and Ihe Opposition would not vote against the financial measures but he moved •a amendment to reduce the authorisation to £799,000,000 as an expression of the party's grave dissatisfaction with the past record of the Ministers in those matters. Civil defence will he debated in the House of Commons next week. when tiie Supplementary Estimates for the Privy Seal office, air-raid precautions | ami national service will be brought forward.