GISBORNE RAILWAY

Evening Post, Volume CXX, Issue 91, 14 October 1935, Page 10

GISBORNE RAILWAY

LONDON NEGOTIATIONS

MR. LYSNAR INTERVIEWED

A declaration that in his opinion the delay in connection with the Gisbornc railway negotiations, as between a syndicate of London financiers and the New Zealand Government, is purely formal and could be swept aside without difficulty if the Government wished to facilitate matters, was made by Mr. W. p. Lysnar last week when he reviewed recent developments in regard to the London offer of capital to complete and operate ;tlie East Coast line, says the "Poverty Bay Herald." During his recent visit to Wellington Mr. Lysnar took up.the matter of the railway negotiations with the Prime Minister. ■•■..= "■

Asked if he was in a position to say anything on the subject of the negotiations, Mr. Lysnar stated that they were dragging along in a most unsatisfactory way. ' •" ■ . :

"The position, simply, is this: Before Mr. Forbes left London some months ago, all the terms of the projected contract were finally agreed upon between him and the London representatives of the several groups interested on the financial side," , stated Mr. Lysnar. '.'There had been, I am glad to say, some give-and-take as between the Prime Minister and the other parties, •and Mr. Forbes, on behalf of the New Zealand. Government, met ' them in some matters, while ttiey oh their part agreed to certain modifications of their terms.

"When Mr. Forbes left London, he left instructions that the High Commissioner. Sir James Parr, should confer with the Government's legal advisers in London on the whole question and to settle in proper legal form the terms already agreed to. If any alterations were to be made in the deed as then drawn, the New Zealand Government was to be advised, and if everything was found satisfactory, the Government would then cable its instructions to the High Commissioner for the deed to be executed. .

"After Mr. Forbes returned to New Zealand, I saw him and the above outline of the position was confirmed by him. I then thought that it would be only a short time before the matter was finalised," continued ■ Mr. Lysnar. "In the middle of last month, however, I received a cable message from London indicating that the High Commissioner was again absent from London for an indefinite period,, and that the financial people interested in the project could hot get finality there. I was asked if I could arrange, to have the contract concluded in New Zealand, in consequence. ■ "Since then I have been in telegraphic communication with the Prime Minister, and while in Wellington during the past few days I had an.interview with him; Mr. Forbes rejected the suggestion that he should finalise anything here in New Zealand, and stated that it must be done in London. When I left the Prime . Minister I wished him to cable to London concerning the matter, but he suggested that I should do the cabling, and let him know the result, with the understanding that he would then consider the matter further. I.have agreed to his suggestion,' and hope that it will lead to something: definite."

Asked if he washopeful of the con T tract being concluded and the. line completed with London capital, Mr. Lysnar said he did not know what-to think. "There has been so much delay —in my opinion unnecessary delay-r----that it is now very di^cult to justify the belief that any effort will be made on behalf' of the Government to get over the difficulties in-order to finalise the matter," he said. "I think the time has come to let the public know the actual position in a general way. The public is in as good a position to judge as I am, regarding the chance of progress at an early date. I was hopeful, after the-terms were finalised in London, but so far my hope has not been warranted by any tangible progress. It is .riot beyond possibility, however, that the Government will take, active steps in the matter."