Overseas Borrowing

Press, Volume CVI, Issue 31150, 29 August 1966, Page 10

Overseas Borrowing

Sir,—New Zealand has a very high output per capita; in fact it leads the world in this respect, its society is an affluent one, and there are no unemployed. By contrast America is a country with many out of work, and it is estimated that a quarter of the population live a substandard existence. In spite of these facts, New Zealand is to raise a loan of £l5 million in America. Who benefits whom? At the end of the term of the loan another loan will have to be paid to pay off the first one, and meanwhile interest at a high rate will have to be paid. This will no doubt be used to pay for some of the United States aggressive wars. If loans have to be raised it would be better to keep them within the Commonwealth.—Yours, etc., P.J.A. August 28, 1966.

Sir,—l was astounded to read ir Saturday’s issue that Mr Kirk had said that if a Labour Government were elected it might have to continue overseas borrowing. Surely he has been misreported? If not, what issue will the Labour Party now

have to fight the election on? Mr Douglas has said that a Labour Government will never borrow from the I.M.F. or World Bank, and we can hardly borrow a great deal from Britain in its present economic dilemma, so 1 suppose a Labour Government will have to depend on loan moneys from the United States of America. Yours, DEEPLY DISILLUSIONED LABOURITE. August 24, 1966.