OVERSEAS LOANS

Dominion, Volume 26, Issue 185, 3 May 1933, Page 10

OVERSEAS LOANS

Attitude of Government SUGGESTED CONVERSION Before going further into the question whether an endeavour shall be made to secure a voluntary conversion of New Zealand’s overseas loans, the Government is awaiting the outcome of the international discussions in Washington. This statement was made by the Prime Minister, Rt. Hon. G. W. Forbes, when replying to a deputation from the Municipal Association Conference. The deputation was to have included the mayors of the four principal cities, but only the Mayor of Auckland, Mr. G. W. Hutchison, and the Mayor of Wellington, Mr. T. C. A. Hislop, and the chairman of the Auckland Transport Board, Mr. J. A. C. Alluni, were present. The purpose was to ascertain whether the Government had formulated any policy regarding overseas loan conversions, and if so, whether the indebtedness of local bodies would be included in any scheme the Government might adopt. [ It was gathered by the deputation that no negotiations had yet been set on foot, but if such action were decided upon the question of including local bodies’ loans in the proposals would be considered. It was also ascertained that the Government had not yet given consideration to the possible effects of the decision of the Court of Appeal in London in the case of Broken Hill Proprietry. Limited, v. Latham and others concerning the conversion into sterling of interest payments to debenture holders who elect to be paid in London.