LOAN DISCUSSIONS

Evening Post, Volume CXXVII, Issue 139, 15 June 1939, Page 9

LOAN DISCUSSIONS

LITTLE PROGRESS

MR. NASH'S QUEST

MAY HAVE TO SEEIt BRITAIN'S HELP.

TALKS ON TRADE POLICY

(By Telegraph—Press Association — Copyright.l

(Received June 15, 9 a.m.) LONDON, June 14,

The New Zealand Minister of Finance, Mr. Nash, is making little progress with his loan discussions, partly owing to the unfavourable atmosphere after the Australian loan, and partly owing to criticism of New Zealand's policy. He may be forced to ask the British Government to help out New Zealand.

j The City Editor of the '-'Manchester Guardian" points out that the anxiety of City authorities and exporters is not making Mr. Nash's quest for a loan easier, owing to * the fact that people who provide money want to be sure that it will not be used to increase imports of industrial plant so as to enable New Zealand further to compete with imported manufactures. It should be remembered, however, the . "Guardian" remarks, that the Government has overcome a crisis in the Dominion due to the instability of export markets. Whether its policy will succeed in the long run is another matter. Controlled trade means that New Zealand, like the totalitarian States, is meeting retaliation from buyers of its produce. FRANK TALKS WITH MANUFACTURERS. Mr. Nash described his conversations with manufacturers as full and frank. He admitted that he sought fuller mar* kets for New Zealand, but was satisfied that the Government was not showing unfair discrimination. The executive of the Federation of British Industries, however, condemned NewZealand's policy as a breach of the Ottawa Agreement and as being contrary to the interests of the Empire as a whole. The Government's offer to lift the licensing system in favour of N manufacturers who were willing to allow payments for goods to remain in the Dominion for an unstated time | and at an unstated rate was wholly unacceptable. In a letter to the '-'Manchester Guardian" in reply to critics, Mr. Nash declares that the Government is satisfied that licensing is the most appropriate method of contracting imports, but it does not desire to reduce trade, especially'with Britain. It is not in the least 1 enamoured of self-sufficiency, but wants to extend the Dominion's trade and secure it against disastrous fluctuations of boom and slump.

Mr. Nash discussed defence and aviation with members of Cabinet and expresses the view that the trans-Tasman air service should be open in September.