Financial Moves Against Rhodesia

Press, Volume CIV, Issue 30939, 21 December 1965, Page 1

Financial Moves Against Rhodesia

f.Vew Zealand Preet Association) WELLINGTON, December 20. Financial restrictions against Rhodesia will be applied by New Zealand. Announcing this today, the Minister of Finance (Mr Lake) said exchange control would operate to prohibit practically all remittances from New Zealand to Rhodesia.

He said the restrictions were in line with those taken by Britain and Australia and other Commonwealth governments. Mr Lake said capital transfers would not be allowed and nearly all current payments would be prohibited.

“The only purposes for which remittances will be approved are small personal gifts up to an aggregate of £5O since November 11 this year, pensions due to New Zealand pensioners resident in Rhodesia and permitted trade payments,” said Mr Lake. The Minister said there was no question of contracted obligations being repudiated, but they could not be fulfilled until the need for the financial restrictions had passed. “The volume of money which normally passes from New Zealand to Rhodesia is

quite small and tobacco purchases account for most of it,” said Mr Lake. “But the Government believes that important prin-

cipies are involved and it has therefore been decided that as well as stopping the purchase of Rhodesian tobacco as previously announced. New Zealand should act in concert with other members of the Commonwealth in applying financial sanctions to Rhodesia in the hope that the eventual solution to the problem will be brought nearer,” he said.

The Minister said that New Zealand would also accept the authority of the new board of the Reserve Bank of Rhodesia, which had been appointed by the British Government.