U.S. LOAN STILL LIKELY

Press, Volume LXXXV, Issue 25913, 20 September 1949, Page 4

U.S. LOAN STILL LIKELY

Mr Nash’s Opinion CAPITAL GOODS NEEDED (New Zealand Press Association.) WELLINGTON, September 19. The devaluation of sterling had not altered his opinion that New Zealand should obtain a dollar loan to obtain essential requirements for capital development, said the Minister of Finance (Mr Nash) in an interview this evening. The Minister said that nothing had yet been finally settled. He thought that the New Zealand Government would go ahead with the proposal. "We might look at the position, but the only reason for buying goods in the United States is to obtain equipment necessary for the expansion of our production,” said Mr Nash. “Therefore it is worthwhile.” Mr Nash said the proposed dollar loan was exactly and entirely dependent on the fact that equipment available in the United States necessary to expand New Zealand production could not be obtained from any other country. Some of that equipment New Zealand could not do without. The Minister said that the sum required was approximately equal to the difference between New Zealand’s exports to the United States and its imports from that country. [According to the New Zealand correspondent of the “Economist,” New Zealand's deficit with the United States last year was £6,549,000, 18.337,200 dollars at the new rate of exchange. ) Asked if the devaluation of sterling would affect the announcement he made a week ago that 1.500.000 dollars was to be made available for the importation of farm machinery from dollar sources, Mr Nash said that all licences were issued in the value of money and not in goods. If it were considered imperative to bring in all the machinery originally allowed for the Government might decide to increase the amount. That was a matter that would have to be looked at later.