REGRET IN N.Z.

Press, Volume CIII, Issue 30603, 20 November 1964, Page 13

REGRET IN N.Z.

Military Spending (Special Crspdt. N.Z P A.) LONDON, Nov. 19. It was a matter of regret to the New Zealand Government that the general political situation in the area covered by the Colombo Plan had not improved to the extent where defensive vigilance could be relaxed, the Attorney-General (Mr Hanan) told the Colombo Plan conference. On the contrary, Mr Hanan said, that vigilance had to be intensified, and many Governments, including New Zealand’s had been obliged to increase their expenditure on defence. “The growth of military budgets must inevitably limit both development on the one hand and aid on the other,” he said. “We should like to think that all members will work for an early restoration of an atmosphere of mutual confidence throughout the area so that we may give the highest priority to economic development projects of a peaceful character.

"Altogether, New Zealand, which is still in the process of development itself and is a net importer of capital, is spending annually about £3 million to promote development in other parts of the world, all of it in the form of grants and largely in convertible currency.”