VISIT TO LONDON

Dominion, Volume 25, Issue 260, 29 July 1932, Page 12

VISIT TO LONDON

State’s Financial Heads CONTACT WITH BRITAIN All Depends on Ottawa PRIME MINISTER EXPLAINS '' Confirmation of the statement that it might be desirable to send th* Minister of Finance, Hon. W. Downie Stewart, and the Secretary to the. Treasury, Mr. A. D. Park, to London after the Ottawa Conference, was given by the Prim* Minister, Rt. Hon. G. W. Forbe*, in reply 'to a question on the point yesterday. Mr. Forbes said it had to be fully understood that everything would depend upon what advance was made at Ottawa, for it might be found that everything New Zealand wished to do in the way of negotiations with British Government officials concerning financial questions could be achieved at Ottawa,, especially In view of the presence there of the Chancellor of the 'Exchequer, Mr. Neville Chamberlain. Discussing yesterday’s cable from Ottawa, stating that Mr. Coates considered Britain’s successful conversion of the £2,000,000,000 war loan mayhave an important bearing on New Zealand’s external interest charges, Mr. Forbes said it had to be pointed out that only £11,100,000 of the Dominion’s funded debt of over £27,000,000 was affected by this conversion. The New Zealand Government had intended to discuss with, the Imperial authorities the question of reducing interest on this £11,100,000 once the success of the conversion scheme was assured. As the scheme had gone so well, Mr. Coates had apparently raised the question, although the New Zealand Government had received no direct communication from the delegation on the point

z Discussions at Ottawa. It might be possible that full discussions on the question of reducing interest on this section of’ the funded debt could be carried out between representatives of the Imperial and Dominion Governments before they left Ottawa. However, any consideration of reductions of interest on any other part of New Zealand's overseas debt was an entirely different -question, and would be subject to separate negotiations. specific consideration had been given by the Government to the sending of either Mr. Stewart or Mr. Park to London after Ottawa for the purpose of establishing personal contact with British financial authorities. Mr. Forbes said, and although it might be desirable to follow this course, there were difficulties in the way, the most important being the fact that Parliament would be meeting about the middle of September, and that the presence in New Zealand of both the Minister of Finance and Customs and the Secretary to the Treasury would be necessary. • Coming fresh from the Ottawa Conference, Mr. Stewart’s services in New Zealand during next session would be indispensable, for he was concerning himself mainly with currency and allied questions at Ottawa, and if legislation were required next session to give effect to any decisions peached at the Imperial Conference, he would be required to handle Bills brought down. Mr. Park also would be needed here. Delaying the Session. On the other hand, if it proted really necessary for Mr. Stewart and Mr. Park, or one bf them, to go to London, the Government might be prepared to consider the postponement of the session for a short time to enable tjhe London trip to be made. As the Minister was so close to England it was all the more reason he should go if his presence there would be of use to the Dominion, for apart from any specific negotiations, it was highly important that at the present time the. Dominion should be in close touch with British financial authorities in view of developments during the past year or so. If possible any postponement of the opening of the session would be avoided, as the Government was anxious to get as much routine work as possible done before the Ottawa delegates returned to New Zealand. Cabinet’s work would be well forward by the middle of September, and it would be ready to meet Parliament then. There would be a fair amount of legislation to be brought down, and of course this ' session would see the year’s Budget and the Estimates, which had not concerned Parliament during the recent short session. . Much at present depended on what happened at Ottawa, and It was impossible to say with any certainty at the moment exactly what course would b« followed.