ARGENTINA AS DEBTOR

Evening Post, Issue 47, 23 August 1935, Page 8

ARGENTINA AS DEBTOR

The United Kingdom's, capital investment in Argentina has been roundly staled at £400,000,000. According* lo ihe Prime Minister of Australia, Mr. Lyons, the amount is £453,000,000. lie compares it with British investments in Australia of £485*000,000 in gill-edged securities,plus about £225,000.000 of other British investments in Australia, including banking, insurance, pastoral, mining. Comparing interest paid? Mr. Lyons says that in 1934 Britain received £11,000,000 in interest on her Argentine investments and in 1933 she received £21,000,000 from her Australian gilt-edged. While these figures read favourably to Australia from the investor's point of view, it is possible, Mr. Lyons suggests, that the unfavourable temporary position of the return on the Argcntiiie ' investment (£218,000,000. of which paid no interest at all in 1934) helped Argentina rather than Australia when it came to a question of vcceiving trade opportunities from the creditor country. This is how lie puts it:

I recognise that the United Kingdom, in making an agreement with Argentina, had no intention of departing from the principle subscribed to at Ottawa; she was naturally anxious to do all she could to strengthen the precarious position of a great amount"'of capital invested in Argentina. I may say that I am satisfied the Argentine agreement will not be renewed in its present terms.

Mr. Lyons seeks to clinch his case wilh the statement thai, in 1934. Britain sold £26,000,000 sterling of goods to Australia, £14,000,000 to Argentina. British imports from the two countries arc about equal.