LONDON LOANS.

Auckland Star, Volume LXVII, Issue 156, 3 July 1936, Page 9

LONDON LOANS.

INTEREST PAYMENTS. RELATION TO TRADE. MR. SAVAGE'S STATEMENT. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. Commenting further on the Government's attitude towards its overseas obligations, the Prime Minister, the Rt. Hon. M. J. Savage,, emphasised to-day the point that the more New Zealand paid to Britain in the way of interest on loans, the less New Zealand would to able to pay to Britain for her manufactures. "A child will see," declared Mr. Savage, "that at a given time there is only a certain amount of production in New Zealand, and we export a large percentage of that. I again say emphatically that the more that goes away in the payment of interest the less New Zealand will have for the payment of services given by Britain. It is in Britain's interest that there should be common sense reigning in the industrial and financial world. If the interest bill was not as large as it is, the difference would go to Britain for the products of the labour of the British workman. By that I mean that there would be a better distribution of the money paid. We have no desire to sidestep our responsibilities, either in New Zealand or abroad. The only question for consideration is that of a more equitable distribution, and that applies to Britain just the same as to New Zealand."