STERLING AREA CRISIS

Press, Volume LXXXVIII, Issue 26868, 22 October 1952, Page 8

STERLING AREA CRISIS

Contribution By N.Z. TARGET LIKELY TO BE REACHED (New Zealand Press Association) WELLINGTON, Oct 21. New Zealand would probably have by June next year a surplus of hard currency with which to meet the target of £25,000,000 set as its contribution to the sterling area crisis, said the Prime Minister (Mr Holland), in the House of Representatives this evening. Mr Holland was speaking in the debate on the Finance Bill, which authorises the Government to participate in the Murupara scheme. The Prime Minister, after defending the Government’s transactions with the European Payments Union countries and saying that the country’s overseas trade had contributed greatly to the sterling pool, announced that he had been advised that New Zealand would probably be in a position by June, 1953, to be in balance with the rest of the world and have a surplus with which to meet the £25,000,000 target accepted after the Prime Ministers’ conference in London earlier ttys year as New Zealand’s contribution towards the sterling area crisis. The original target was set at £12,000,000, which,, said Mr Holland, New Zealand promised to meet, and the country was then asked to “stretch” the figure to £25,000,000.