ADVICE TO NEW ZEALAND

Evening Post, Volume CXXVII, Issue 152, 30 June 1939, Page 9

ADVICE TO NEW ZEALAND

IMPORT IMBROGLIO

MAINTAINING CREDIT

JHE STERLING FUNDS

KEEPING LICENCES WITHIN

LIMIT

(By Telegraph—Press Association—Copyright.) (Received June 30, 10.10 a.m.)

LONDON, June 29. Lord Balfour of Burleigh, presiding at the annual meeting of the National Bank of New Zealand, said that the hopes that exchange control would repair the inroads on the Dominion's sterling balances had been disappointed, partly owing to the substantial imports for secondary industries and partly owing to the fact that transfers of capital had been permitted to continue on an unexpected scale, which had added materially to the difficulties pf those who required sterling.. The Government sfiould immediately take the responsibility of laying down priorities to ensure that the volume of import licences was kept within tlip lipiit of the available sterling. "New Zealand's credit," he said, "cannot be maintained if ordinary, trading operations cannot be en-j gaged in with confidence." | Referring to the task of the New Zealand Finance Minister, Mr. Nash,i in London, he said: "Though the moment is not propitious- for fresh borrowing^ I have no doubt that Mr., Nash's' request for a defence loani will be % sympatheticaly ' considered. There is also an urgent necessity for fresh money to finance imports if a serious dislocation of trade amounting' to commercial default is lo be avoided. I earnestly hope,- whatever the wisdom or folly of„ the Government's policy, that those negotiating with him will remember that sym-. pathy and generosity .will do 'more than rescue the Government from its difficulties, which are largely of its own making, wijl save further losses and unemployment ;in. British firms exporting to New Zealand, and will provide the security which the British investor needs."