NEW ZEALAND’S INTEREST

Dominion, Volume 26, Issue 219, 12 June 1933, Page 8

NEW ZEALAND’S INTEREST

New Zealand’s direct interest in the War debt discussions does not appear to be generally realised. The settlement of the debts means more to this country than the lifting of an incubus on international exchange; in all probability it will mean the revision downward of the Dominion’s annual payment of £1, 651,930 to Great Britain on account of the Funded War Debt.

At present that payment is suspended, as are those .of the European debtors of Britain. By an act of grace on Britain’s part, the Dominions were included in the Lausanne settlement. The latter provided for the virtual end of reparations and, until the agreement was ratified, Britain agreed to excuse her European debtors, and the Dominions, their dues. Ratification of the Lausanne settlement was made dependent upon the conclusion of a “satisfactory settlement with the United States,” to use Mr. Neville Chamberlam’s exact words. Thus wha* New Zealand will have to pay Britain on account of the Funded War Debt is contingent upon the terms Britain may make with America.

That policy of sharing benefits has been followed by Britain ever since the War. On December 14■ it was re-stated .to a cheering House of Commons by the Chancellor of the Exchequer in these words: “We shall not ask from our debtors more than we are asked to pay to our creditors, and they can hardly expect us to be content with less.”

Nothing could be clearer than that. Any easement that Britain obtains from America, she will share in equal ratio with her debtors, New Zealand included. In the meanwhile it should not be forgotten that while Britain paid America on December 15, she received nothing from Europe or from the Dominions. The saving to the New Zealand Budget under the present “stand-still” arrangement is, as already stated, £1,651,930 annually.