Wants Negotiations

Press, Volume CIV, Issue 30939, 21 December 1965, Page 22

Wants Negotiations

er? Press Associations WELLINGTON, . December 20.

The Leader of the Opposition (Mr Kirk) reiterated today that a lasting peace in South Vietnam could only be brought about as a result of negotiations.

“The sooner a satisfactory basis for these can be found the better,” he said.

Mr Kirk was replying to a recent statement made by the Minister of Finance (Mr Lake).

“Mr Lake is misleading when he claims that my remarks could be interpreted as heralding an impending change in Labour policy in Vietnam," he said. *T could not have been more definite. “As I pointed out in Auckland our policy remains unchanged and no change is envisaged. We can only support New Zealand troops in South Vietnam as part of an internationally recognised peacekeeping force under the United Nations.” Mr Kirk said a Labour gov-

ernment would immediately review the position of New Zealand troops in Vietnam in the light of Labour's policy. Referring to overseas borrowing, he said Mr Lake had made a “curious statement” about it

“First he says the public debt has risen by only £B.sm in the 1965 calendar year," said Mr Kirk. He said the Minister had continued: “Even if the short-term drawing from the International Monetary Fund of £22.3m is regarded as overseas public debt—which, strictly, it is not—the rise in external indebtedness would be £30.8m." Mr Kirk Mid Mr Lake had said nothing about the £22.3m he arranged to borrow on a long-term basis from the World Bank which would bring his total to at least £s3m.

Mr Kirk said the International Monetary Fund and the World Bank were in America. “Moneys borrowed from them have to be repaid there. Surely Mr Lake does not argue that America is not “overseas" or that the money we must repay the LM.F. is not a debt," he Mid. Mr Kirk cited a list of fig-

ures which he said came from Mr Lake’s own published statements. In round figures they were: Dollar loan in July: £7m. London loan in August: £lom. LM.F. loan: £22.8m. World Bank loan: £22.3m. Total: £62m. “Regardless of how Mr Lake has spent it, the fact remains that he has borrowed more than £6om overseas this year, and it has at some time to be repaid,” Mid Mr Kirk.