WORLD BANK LOAN

Press, Volume CIII, Issue 30560, 1 October 1964, Page 14

WORLD BANK LOAN

Mr Armstrong’s Attitude His attitude to acceptance of a loan from the World Bank was amplified by Mr A. E. Armstrong at the Lyttelton Harbour Board meeting yesterday. He had been expelled from the Labour Party and one of the reasons given by “the big bosses of the party” was that he had dared to vote for or acquiesce in the board getting money from the World Bank, Mr Armstrong said. When the board first discussed World Bank finance, he had said that the restrictions proposed by the bank were a reflection on the board’s engineers, Mr Armstrong said. “I asked: ‘Are these Shylocks not going to lend us money until drawings are redrawn to their satisfaction?’ ” he said. “I had my doubts whether we should accent the money.” Then the chairman (Mr A. A. Macfarlane) and the executive officers had gone to Wellington and talked with Treasury and World Bank officers, and it had been agreed that the money could be borrowed without tags and at advantageous terms. The money would be used to buy British cranes made with British labour. At this stage. Mr W. B. Laing asked: “What point is he driving at? Is it a political point? I hope this isn’t going to be washing dirty linen.” Mr Macfarlane: I hope Mr Armstrong makes it fairly short because we are getting late now. “I am not washing any dirty linen and I realise we are at the end of a long and boring meeting,” Mr Armstrong said. “But I want to make it clear that I opposed the loan in the first place, but when our engineer was allowed to use the money as the board thought fit I gave it my blessing. At least I did not oppose it.” He did so because the loan covered not only constructional work, but meant continuous employment of the staff on development work, Mr Armstrong said. “I violated no principles of Labour in voting as I did. I believe we did the right thing. I believe the money we have taken from the World Bank is being used to good advantage and that my vote was in accordance with the wishes of the people I represent.”