“Cold Hand Of The Treasury” Seen In Govt. Defence Plan

Press, Volume C, Issue 29624, 21 September 1961, Page 18

“Cold Hand Of The Treasury” Seen In Govt. Defence Plan

(N.Z. Press Association)

WELLINGTON, Sept. 20. “Disappointed and alarmed by some aspects of the review of defence policy. ’* the New Zealand Returned Services’ Association's Dominion president (Mr K. W. Fraser) in a statement today said it seemed to bear the “imprint of the Treasury," and it could only be assumed that the Treasury had forced the Min. ister of Defence (Mr Eyre), and the Government, into compliance with its wishes. “The whole White Paper is again procrastination brought about by the Treasury. The R.S.A. cannot accept the Government’s overall plans as providing for the present defence needs of the country,” said Mr Fraser. “It is felt that the White Paper cannot be reconciled with the well-balanced address which the Minister of Defence delivered at our Dominion council meeting in June. “On that occasion Mr Eyre stated that New Zealand is proud of its adult status amongst the nations of the world. “He declared, however, that this status meant that we now have greater, and more direct responsibilities for our own defence. “In the view of the R.S.A. the White Paper does not reflect that statement. It is difficult indeed, to believe that it came from the same Minister.”

Mr Fraser said that throughout the whole review it was finance which called the tune, and the

whole document was tuned to one wavelength only. It was the wavelength on which the cold hand of the Treasury dictated to the country. "Poor Cousins’’ “For the last three years the Army has been frustrated for lack of manpower. Now it is to be in a better position, but the Navy and the Air Force are to become the poor cousins. That is, they will become poor cousins if they can survive at all, and that is very doubtful," That the defence of the country would be put in a proper state “as soon as the country's funds and general economic situation permit” was not what was needed or expected, said Mr Fraser. Of what use was an army which would take five years to come into being, he asked. “It is the considered opinion of the R.S.A. that the defence of the country is top priority. If the money is not readily available for defence it must be found, if necessary, by reducing expenditure in less essential spheres.

‘‘We hold that it is better by far to have a little less comfort now and more national security, than no security whatsoever in the future.”

The R.S.A. welcomed the new scheme for the Army, which was closely in line with the RS.A.’s own policy. “In our opinion it will provide an efficient force, but we feel that the period al-

lowed to bring the scheme to full effect is too long.” he said.

Services “Destroyed” The White Paper virtually destroyed the Navy and Air Force. “In one paragraph it reaffirms that the Naval contribution to the strategic reserve is to remain unchanged. Later on it makes this impossible to implement, as no order is to be placed for a further frigate.

‘‘lf we are to meet our treaty obligations, on a continuing basis, the time-factor for building alone makes it essential that the order for a further new Whitby class frigate be placed now, and not as financial conditions permit. “In much the same way we are about to destroy forces which are already in being by regional arrangements, by withdrawing the Canberra squadron from Singapore, and half the Maritime Squadron from Fiji.” Mr Fraser concluded: “The whole White Paper is again procrastination brought about by the Treasury. The R.S.A. cannot accept the Government’s overall plans as providing for the present defence needs of the country.”