PRIME MINISTER

Evening Post, Volume CXXIII, Issue 130, 3 June 1937, Page 11

PRIME MINISTER

ARRIVAL AT HOME

THE OPENING INTERVIEW

POLICY EXPLAINED

(From "ilie Post's". Representative.) ' ~' LONDON, May 5.

. "It is the realisation of one of the dreams of my lifetime to be here in Britain preparing to meet representatives' of the British people and to talk to them as one of themselves about everything." '. . . ~

Mr. M. -J. Sayage, the Prime Minister, spoke with sincerity when he made: this remark quietly and gravely within two hours after reaching London. At Southampton he was met by. Mr. W. Nash (Minister of Finance), accompanied by Mrs. Nash, and Mr. W. J. Jordan (High Commissioner), accompanied by Mrs. (Jordan, and before entraining for London he was greeted by the Mayor, Aldermen, and Sheriffs of .that city. Upon arrival at Waterloo Station he found that a great number of representative business New Zealanders were there to' welcorhe him. Among the first to shake his- hand were Mr. Malcolm Mac Donald (Dominions Secretary) and Lord Hartirigton (Under-Secretary of Dpminion Affairs).

. An hour and a half later,. at the Savoy Hotel, : Mr. Savage met representatives of all the English, New Zealand, and Australian newspapers. Representatives of the Polish Press were also. present. »He discussed with them the; nature of his visit, his Government's policy, and his economic views: He spoke freely, and answered all questions ;except; those- concerning subjects which are to be considered at the Imperial Conference. Mr. Nash ■ and Mr. Jordan were present.. ;'■*",' "MOKE THAN DREAMERS." "lam quite a mild sort of individual. ■ I do not go round carrying dynamite with me," said the Prime Minister when the inevitable question had been asked whether New Zealand "still proposed" to pay lower rates of interest on London'loans.' "For one thing, we could not do that if we wished," he ' added, and explained to the Pressmen how the misunderstanding of a remark made in Wellington last year had caused New Zealand stocks to- drop in value by £6,000,000' on: the ..London Stock Exchange. ... "I was asked in one of the corridors of Government House what plans the Government had in mind on this subject, and I replied, using an Australian footballing terms, that Mr. Nash would . 'bounce the ball' when he got to England; I was surprised," added Mr. Savage gravely, "to know of the publicity, which that remark received in ■the (British"papers. In Australia- they always-bounce the ball to start the game,, and I was using the term in .the sense that Mr. Nash^would begin the negotiations on arrival in London. .New Zealand will pay her debts, and .meet her obligations. If--we ■can make better agreements >we : will. We will meet our' responsibilities whatever -they are.-j ' ■ " ..; ' : ':'. "Some people, say we are-dreamers and idealists." The best reply, to that assertion is the" New Zealand Statute Book: If those people'will compare it with the same book' twelve - months ago they will soon find out that we more'than dreamers." .. 1- ■■^•11ttONETARY'--MANAGT:'MENT.V.', '■ ■ ■'•'-'Mr. Savage said his attention .had been called to articles relative to the istaßility of "New Zealand and its finances. (By Mr. S. W. Alexander, in"- the -['Evening Standard.?') - This criticism came strangely from the Press owned by persons who a few short years ago .had ' ■advocated the transfer of the control of the credit and currency system of -England from the Bank of England to the House of Commons. , . .The Government ..of .New Zealand was managing the monetary, procedure of New Zealand, and would continue tdiido so. . Its sjblidity and security .were ■■illustrated .by the. fact that its overseas -monetary reserves were far in excess of its requirements—and that ; it had kept, and always would keep, 'every monetary commitment made by 'the present or any past Government. ■■'. "We- in New Zealand," ■ said : Mr. Savage, '■ "are of course embarking ■upon a new internal policy, and- perhaps: I shall later have an opportunity "of telling our kinsfolk- here of our plans arid bur hopes to brighten the lotof our people.; . ' "We feel strongly that many,-if .not' : most, of the? troubles that at.present afflict the world are due to the method that has for a considerable time been generally adopted in approaching ''world problems,' both political. and economic. /We believe that there can never be real arid lasting security and peace throughout the world until the relations between nations and between peoples are based to the fullest possible extent upon the principles of right and justice.rather than upon those of temporary expedience. . • ~, ■'. i '.- \ ' 'OF THE MANY. When asked' to explain further his Government's new. internal policy! Mr. Savage said: "New Zealand, like most countries, is capable of producing almost .without end. Production Js not .enough. We want distribution as well. It is no use increasing production unless, ajt ■ the same time, we can increase . buying power, ■ and, that needs considerable negotiation before it can be brought about. Whatever is in the way has got to get put of the way." "Arid what," he was asked, "is in the way?" ' ■' y ■ '■-"A multitude of things," replied Air. Savage,, "including the interest of the few against the interest of the many. , "I am not concerned about names or labels, or anything like that, but-I am concerned with, the principles underlying production 'and equitable distribution. I do not care, what you call it. We. are living in a. changing ape whe.n the machine is doiug trie work .that men and women used to do. Unless people are to get 4he benefit of the machine what is the use of it? Our ambition is to see that science and invention are used for the benefit of the ■rank and file of the people. ,:;. "New Zealand is entitled to hays an .equitable-distribution ;of /Its-own reduction. It is not going to be harrieksed to the chariot wheels of any country. Our objective is to have our own money system built upon our own production. There is no reason why the money system of New Zealand-1-and it does belong to New ..Zealand — ■should not be based upon its production. I know the: arguments about inflation and deflation, but as long as you stick to reality s and build money on goods and services, you are not going to stray far'from the narrow path, path." ..." -THE SAFETY OF CAPITAL. . "What answer do you give to those who assert that the policy of your > Government is driving cash out' of New Zealand into Australia,", was . another question asked the Prime . Minister.

"Well," replied Mr. Savage. "We have. something left. That story is getting worn. ' I have heard it many times. If your refer to the Stock Exchange of New Zealand—and there ii

no better way. of getting at it—you will soon find out that money is not leaving New Zealand." '

"Are you in favour of the modification or the continuance of the Ottawa Agreements?" was the next query. Mr. Savage replied that, in view of the approaching Imperial Conference, he ipreferred riot to say much on that subject at the moment. ' "But," he added, "I do not know of any agree"ments in existence today that are satisfactory. I think it is possible to make agreements between nations, arid particularly between the Commonwealth of. Nations, and to have better agreements than before. I would not say that the Ottawa Agreements are ideal."

On the subject of trade, the Prime Minister said: "Britain is our best customer. We can only sell to Britain when we buy Britain's goods. It is our desire to expand our trade with Britain as much as we can, in the way of taking British goods and getting Britain to take ours." ~

',Of international relationships, he said: "The first thing we have got to do if we want to establish peace-is to do justice to the nations and to begin at home. When the nations expand the buying power of their people they will be removing the causes of war and paving the way to peace. Territory is not everything, but the use of territory is very important, and I am just a little afraid that we (the British) are not using the territory as we might.

"An international conference, as suggested by Mr. Lansbury, would be good because the superstructure of peace can only be laid on a sound economic foundation. Wars generally arise out of unsound economic foundations, and I think that the sooner we have the conference the better."'