MR NASH’S ASSURANCES

Waikato Times, Volume 124, Issue 20819, 1 June 1939, Page 8

MR NASH’S ASSURANCES

Mr Nash has wisely begun his uphill fight in London by endeavouring to gain the confidence of British interests. He has declared unequivocally that New Zealand will not default in its loan obligations and has offered the British Government a firm agreement under which, “after meeting debt and other charges, New Zealand would spend the maximum balance available in Britain, which would get proportionately more of New Zealand’s overseas trade than heretofore.” Unfortunately, what is probably concerning Britain more than the “proportion” of New Zealand’s custom enjoyed in comparison with other countries is the fact that Britain’s total exports to the Dominion are being severely restricted. * It has always been the expressed intention of the New Zealand Government to trade with Britain to the limit of available exchange, but that policy loses its force when it is known that New Zealand’s intention is to reduce exports by the manufacture of goods in the Dominion. Mr Nash’s task is to convince the people of Britain that what New Zealand is doing is necessary and wise. If he can do so he will not lack sympathetic assistance. The Labour Government’s policy has received widespread criticism, but the City of London is quite capable of judging the quality of that policy if Mr Nash, lays all his cards on the table. Britain has a very vital interest in the welfare of the Dominion, not only because of common Empire ties, but because British people have huge sums of capital invested in New Zealand securities.

Mr Nash will quickly be able to assess his prospects when he consults New* Zealand’s financial advisers in London. An immediate necessity is to make arrangements to meet loans of £17,000,000 falling due at the end of the year. If there is genuine fear in Britain that the course the Government is pursuing is leading to even more acute financial embarrassment the holders of New Zealand stock will be anxious to make an end to the risk. But New Zealand is still a sound security requiring only sound administration, and if Mr Nash cannot convince British opinion that investment is still safe, that will not be the fault of the physical security.