DOLLAR LOAN PROPOSAL

Press, Volume LXXXV, Issue 25903, 8 September 1949, Page 6

DOLLAR LOAN PROPOSAL

REPAYMENT QUESTION

DOUBTS ON BOTH SIDES OF HOUSE

(New Zealand Press Association.)

WELLINGTON, September 7. The outstanding feature of the Budget was the difficulties it disclosed in New Zealand’s international trade, said Mr T. L. Macdonald (Opposition, Wallace) in the House of Representatives to-day. The Minister of Finance (Mr Nash), who had long had an obsession for the repayment of overseas debt, now calmly proposed a dollar loan, and the debate had shown a split in the Government ranks on this issue, just as there had been on Bretton Woods. A loan would be justified only if it accelerated production. but any increased output would have to be allied to repayment of the loan, and how would that help the rash promises that had been made to increase food exports to Britain by 25 per cent, in five years? asked Mr Macdonald. Mr W. Freer (Government, Mount Albert) said he was not keen to see New Zealand go lightly into a dollar loan. He could see the necessity tor obtaining a small loan to enable the country to get essential equipment, but he thought a large loan should not be contemplated unless New Zealand could produce more to pay bacx the loan. If that could not be done it would be better to go without the loan. , . If New Zealand wanted goods from the United States it was up to New Zealand to find ways o* selling more in the United States, said Mr Freer. Not only manufacturers, but primary industries, which could produce articles in demand in both Canada and the United States, should be helped.