INDIAN FINANCE.

Auckland Star, Volume LXII, Issue 6, 8 January 1931, Page 7

INDIAN FINANCE.

LOANS AND BUDGETS.

Views of High Commissioner

Designate

NO TALK OF REPUDIATION.

(British Official Wireless.) (Received 11.30 a.m.) i RUGBY, January 7. It is anticipated that the Federal Structure Sub-Committee of the India Conference will complete its work to-morrow. The most important speech to-day was by Sir Bhupendra Micari, .High Commissioner designate for India in London, who is a recognised authority on financial matters. Regarding the public debt, he said all that was required was a clause in the Statute acknowledging in explicit terms India's liability to pay the debt and interest, which should be a second charge on the Consolidated Fund. ,He was not in favour of any examination of that <}ebt, but agreed that if any future dispute arose the matter should be referred to an independent tribunal such as the Empire Court, which the Imperial Conference rccom-, mended. Let there be no more talk of repudiation or examination of the debt. As to external loans the speaker said he saw no reason why the future Dominion Government of India should not subscribe to the conditions laid down under rules which applied to those States whose loans were classed as guarantee securities. As to safeguards for a recurring balanced Budget, lie could picture none which would not detract from the responsibility of the Ministry to produce a balanced Budget and thus precipitate a crisis. The greatest safeguard against a financial breakdown lay in responsibility. He hoped that when responsible Government was introduced with minimum safeguards his countrymen would rise to the responsibility and that with the help of the Princes, who would form an element of the federation, an effort would be made to raise the amount of gold required for establishing a reserve bank without external assistance. If a breakdown occurred let them dismiss the Ministry. If the new Ministry also-failed let them dismiss it also. Mr. M. A. Jinnah, a member of the Legislative Assembly, supporting Sir Tej Bahadur Sapru's proposals, said one powerful section in his country demanded complete independence, while another faction expected real Dominion status. He agreed that responsible Government could not be given without safeguards for minorities. He was under no misgivings that Dominion status or completely responsible Government was contemplated, but the measure of responsibility must be such as would command the support of politically-minded India and would win over the bulk of the supporters of these two sections.