INTEREST IN STERLING

Evening Post, Volume CXVI, Issue 34, 9 August 1933, Page 9

INTEREST IN STERLING

SOUTHLAND POWER LOANS

MOTION TO RESCIND

H3y Telegranh.— Press Association.) INVEBCAKGILL, August S. Whether interqst on the board's London loans should: be paid in New Zealand currency :or in sterling was again discussed at today's, meeting of the Southland Electric Power Board. Ait a special meeting of tho board previously it had been decided to give tiie Government an assurance that interest would be paid' in sterling on the next payment in September, but today notice of motion wa»i given to rescind that resolution. The board also decided that it could uot give an assurance,, as requested by the Government, to refrain from legal aiction in London. The board issued a, statement in i which it was said that tlie Government, had given an undertaking in London that the board's test -case would be abandoned and had asfied the board to agree to the course, failing which the Government would bi-rqg down legislation to compel the board to pay its interest in London in (Sterling. "The Government bias bluffed the board," said Mr. W. JioChesney. "It is a political move." ; " Mr. T. Golden said tihat the board did not want a test casci. It was content with the Broken Hi ill case. Since the Broken Hill case Australian credit had improved. ; "It seems that Mr. Forbes lias been in some difficulty in London," said the chairman, Mr. W. Hinehey. "Mr. Forbes has been in touch with Mr. Coates, and, leaving London on Saturday, he wanted an assurance that the test case would not com.o on and that tho Auckland business would foe settled1. Mr, Coates sent telegrams '{o the Auckland Transport Board aiwt ourselves. Mr. Allum, chairman of tho Auckland Transport Board, had gone to Wellington, and he told me they had to climb down. I think this is entirely duo. to the' London position." "There seems to be something behind the scenes," remarked Mr. W. M. Norman. "We would win the case, but it seems that if we went ahead Britain^ would put on the quota." Mr. E. K. Sim said hia sympathy was with the Government. He advocated payment in New Zeailand. currency within the law, but not if the board would embarrass the, Government. He admired Mr. Coates for the way he,_had stood up to it.