Australian Help For New Zealand

Press, Volume XCVII, Issue 28630, 5 July 1958, Page 8

Australian Help For New Zealand

(N.Z. Press Association—Copyright) <Rec. 7 p.m.) LONDON, July 2.

The Australian decision to keep financial assistance to New Zealand down to such “modest levels” probably reflected the Commonwealth Government's feeling that the danger of its running into a reserve problem of its own was now so marked that it ought to husband carefully its remaining external sources.

The “Financial Times” banking and finance correspondent said this today in discussing Australia’s credit of £AlOm to New Zealand.

He said that there seemed little danger of the Australian reserves being forced down to embarrassingly low levels before any money being made available to New Zealand under short-term loan arrangements fell due for repayment. “But the Australian authorities may well have considered it necessary to allow for the possibility that, if world commodity prices continue to decline, New Zealand may not be in a position to repay such advances however anxious she may be to fulfil her commitments.” he said. The correspondent said that, together with the £20,000,000 sterling obtained from the recent loan operation in the London market, the Australian credit should help bridge the gap between New Zealand’s external payments and receipts, while the austerity measures taken by Mr Nash’s Government began to find a full reflection in the level of import spendings.