OVERSEAS DEBT.

Press, Volume LXVIII, Issue 20731, 16 December 1932, Page 10

OVERSEAS DEBT.

PAYMENT OF INTEREST. PRIMARY PRODUCER'S VIEWS. [THE PEESS Special Servico.j WELLINGTON, December 15. The opinion that the real problem with which Cabinet had to doal at tho present time was tho burden, oi the Dominion's overseas debt commitments was expressed by tho Hon. A. D. McLeod in the course of an interview. The basis of tho trouble, he said, was that New Zealand's overseas public and local body debts now amounted almost to £200,000,000. If New Zealand were not to default exported farm produce had to pay practically tho whole of the interest on that huge amount. Unless further borrowing wore resorted to, the question arose whether exports could continue to carry the burden. Farmers generally were not wilful defaulters, and they did not desire to be. However, thoy could not continue to pay tho amount of overseas interest needed with their farm produ.ee, and at the samo time provide their full sharo for tho Dominion's internal obligations without material assistance from all sections of the community. Farmers could not continuo under the present circumstances much longer, and all round default and collapse was more than a possibility. It was with no sense of satisfaction, said Mr McLeod, that he and thoso in tho group associated with him had last session supported legislation which amounted to direct repudiation ot written contracts. They had no desiro tr> bo called on again to do the samo thing. It was for this reason that they had _ raised tho exchange issue. Business interests now had a chanco of rallying behind Cabinet and Parliament, and assisting in even- effort to help the Dominion.