N.Z. AND U.S.

Ashburton Guardian, Volume 68, Issue 133, 17 March 1948, Page 3

N.Z. AND U.S.

MR NASH DISCUSSES RELATIONS

Ties With Britain Cannot Be Loosened

(N.Z.P A.-Reuter—Copyright). WASHINGTON, March 15

“New Zealand’s ties with the United States can never be strengthened at the expense of her ties with the United Kingdom,” said the New Zealand Minister of Finance (the Rt. Hon. W. Nash) in an interview to-day. “1 am perfectly sure it would not be politically possible.’’

Mr Nash was questioned on the possibility of a closer affiliation between New Zealand and the United States resulting from Britain’s preoccupation with her own problems, her geographical position in Western Europe, and her inability in the future to take her maternal interest of the past in the Pacific Dominions.

“I am pretty certain that Britain and the Dominions will hold together for a long, long time,” said Mr Nash. “New Zealand’s ties with the Old Country cannot be loosened. I believe that to be true also of Australia, and i know it to be true of Canada.” Asked about the possibility of a defence alliance between the Pacific Dominions and the United - States, Mr Nash said he doubted whether the Dominions would seek such an alliance at present. “The thing we would have to ask is: ‘An alliance against whom?”’ he said. Closer Harmony Mr Nash conceded, however, that ways could be found to bring the United. States and other countries on each side of the Pacific into closer commercial and cultural harmony. He pointed out that New Zealanders’ affection for Britain was' such that New Zealand was prepared to sell Britain its commodities at prices below world parity. New Zealand, however, would have to be careful “lest nemesis overtake it.” There was danger in selling to Britain at cut rates and buying from Britain at the increased rates which obtained to-day. Mr Nash said that in his visit to Canada he had discussed with the Prime Minister (Mr Mackenzie King) and the Canadian Cabinet the possibility of New Zealand’s sellihg more to Canada. He had been given a long list of commodities which Canada wanted to buy. Some of these commodities were now going to other countries, including the United States, but he felt that substantial quantities could be diverted to Canada. Pacific shipping was another topic discussed by Mr Nash in Ottawa. He said there was good hope of getting the Commonwealth and Australasian Line operating again between Vancouver, New Zealand, and Australia. He believed the liner Aorangi would be back in service later in the year. It might also be possible soon to expand British Commonwealth cargo services across the Pacific. . Mr Nash added that he was told m Ottawa that a Canadian trans-Paqific air service would probably also be operating in the near future. This service had been handicapped by lack of aeroplanes, but it was expected that this difficulty would be speedily overcome.

Double Taxation

During his Canadian visit Mr Nash was able to negotiate to the final stages an agreement which relieves Canadian and New Zealand nationals of the necessity of paying double taxation. He hopes to reach a similar agreement with the United States tomorrow in an interview with the United States Secretary of State (General Marshall). To-morrow he will also complete discussions on an exchange of students programme between New Zealand and America under the Fulbright Act. Mr Nash yesterday called on the former Secretary of State (Mr Cordell Hull) in the Naval Hospital. To-morrow Mr Nash returns to Havana, but he expects to leave there within a week for the West Coast of the United States. From there he will fly back to New Zealand. He hdpes to be home by the end of March.

CONVENTION SIGNED

AVOIDANCE OF DOUBLE TAXATION (Rec. 10.15) WASHINGTON, Mar. 16. A convention between the United States and New Zealand for the avoidance of double taxation and the prevention of evasion of income taxes was signed at the State Department today by the Secretary of State, Mr Marshall "and the New Zealand Minister of Finance, the Rt. Hon. W. Nash. The convention provides that on ratification it will be effective in respect qf United States tax lor the taxable years beginning on or after January i in the calendar year in which ratification occurs. As to the New Zealand tax, the convention becomes effective for the year of assessment, beginning on April 1 in the following calendar year in which the convention is ratified.