LOANS FOR FARMERS.

Ashburton Guardian, Volume 51, Issue 206, 13 June 1931, Page 5

LOANS FOR FARMERS.

INTERNATIONAL PROPOSAL.

BRITISH MINISTERS DIFFER

LONDON, June 2

The Dominions were unknowingly the cause of a British Cabinet diflerenoe, as the result of discussion at Geneva on the proposed establishment of an international company to lend money to European farmers. Germany agreed to support this if Britain and four other nations favoured it, but the Secretary of the Dominions (Mr J. H. Thomas) acting as Foreign Secretary during Mr Arthur Henderson’s absence, telegraphed to Mr Henderson at Geneva disapprovinfi, because assisting European farmers meant adverse competition with New Zealanders, Australians and Canadians. Mr Henderson, however, approved of the proposal in principle and promised to discuss the situation on bis return to London. Meanwhile, the proposed company, with headquarters at Geneva, is being proceeded with, the capital being £1,000,000. Freetraders still hope that Britain will participate. The Liberals seem neglectful of tbe Dominions’ requirements, which may have influenced the Labour Government’s increasing coldness to the Dominions. Nevertheless, the personal influence of Mr Thomas may save the situation. When Mr Henderson returned to England he was asked in the House of Commons whether the Government had decided to support the convention for the establishment of an international mortgage company. The Minister replied that the Government was considering the question It is understood that Freetradc members of the Labour Party and the Liberals are putting pressure upon tlw Cabinet, but Mr Thomas continues his opposition to the scheme, on the ground that it would be a slight toward the Dominions.