RENEWAL OF LOAN IN LONDON

Dominion, Volume 32, Issue 256, 27 July 1939, Page 10

RENEWAL OF LOAN IN LONDON

Mr. Nordmeyer’s Scheme MOBILIZING OVERSEAS ASSETS In the event of impossible terms being dictated by London financiers to the New Zealand Government for the renewal of the £17,000,000 loan next year, the Government would be justified in mobilizing the overseas assets of the people by buying or borrowing them and paying off the whole of the loan, said Mr. Nordmeyer (Government, Oamaru), when speaking in the, Address-in-Reply debate in the House of Representatives yesterday. Mr. Nordmeyer said that he spoke purely as a private member, and not on behalf of the Government. It appeared long ago, said Mr. Nordmeyer, that Mr. Nash in bis negotiations with the London bondholders would be unlikely to have any great measure of success. This was not because of the unwillingness of Britain to lend New Zealand money, but because, as there were general elections pending in both Britain and Australia, anything that could be done to embarrass a Labour Government would naturally be done, because in both countries Labour was knocking at the door.

“If the London financiers attempt to dictate terms that are inimical to this country.” said Mr. Nordmeyer, “rather than take those terms we should take stops to pay off the whole of the £17,000 000 loan, no matter at what sacrifice. If an emergency situation arose through the deliberate action of the London financiers, this Government should do as the British Government has done in an emergency, and mobolize the overseas assets of the people of the country, either by buying them or borrowing them, and. thus pay off the whole amount. I hope the Government will not consent to hard terms. I hope it will say ‘no surrender’ if the attitude of the financial interests is to dictate. I hope the Government will refuse to accept terms that are dictated.” Exchange Control Policy. Speaking of exchange control, Mr. Nordmeyer said that the system would improve very considerably the opportunities of local, manufacturers. It was not enough, however, to let the secondary industries develop haphazard. Development must be planned ahead and made orderly, perhaps through a five-year plan, which sounded Russian. but was merely the common sense thing. “That means that investors in industrial concerns will be entitled to some Stale assistance, with the provision of capital, and to some measure of stabil ity of costs,” said Mr. Nordmeyer. “There can be no sounder use for rhe credit of the country than in the production of more goods. These assurances should be given to the manufacturers at once and planning started immediately.” Mr. Polson (Opposition. Stratford); How do you square that with the Prime Minister’s assurance that we will expand buying in Britain? “We will still buy in Britain." said Mr. Nordmeyer. "but instead of buying finished goods, we will buy machinery and raw materials. We will buy the same value or even more, but of dif ferent goods If does not matter to Britain as a country what we buy” CENSUS SUGGESTED Externa] Investments Of Dominion An inquiry whether, in view of the British Government’s decision to take a census and co-ordinate ail external investments, the Prime Minister. MiSavage, would du the same thing In New Zealand, with special reference to external investments made in l!>."S. was contained In a question of which Mr. Lyon (Government, Wsiiteinata) gave notice in the House of Representatives yesterday.