REPAYMENT TERMS

Evening Post, Volume CXXVIII, Issue 24, 28 July 1939, Page 10

REPAYMENT TERMS

AGREED INSTALMENTS

BELIEF IN LONDON

WELL WITHIN DOMINION'S

POWERS

(Independent Cable Service.) (Received July 28, 9 a.m.)

LONDON, July 27.

The '"Financial News" says that /the rather onerous repayment terms of the conversion loan are believed to be well within New Zealand's powers, since it is possible on the present restriction of" imports to save £10,000,000 a year after 1939.

British exporters who had hoped for early relaxation of the restrictions are likely to be disappointed. The deficiency of £1,000,000 in the loan conversion will be paid out of New Zealand's accumulated sinking funds on behalf of the Government.

NeAv Zealand has undertaken to provide for redemption by making available sufficient sterling to repay the loan in agreed instalments.

The "Daily Express" understands that the Governor of the Bank of England, Mr. Montagu Norman, insisted bn instalments because of heavy falls in the market value of New Zealand loans. The "Evening News'" says that the New Zealand loan has been well received, and prices of existing New Zealand Stocks have been marked up. MR. NASH TO VISIT FRANCE. Mr. Nash told the Australian Associated Press that the unfailing courtesy and consideration of members of the British Government Had greatly facilitated the copclusion of the loan negotiations, concerning which he would make a statement before leaving for New Zealand.

"The details which still remain to be worked out," he said, "will keep me here till the end of next week. lam flying to Paris tomorrow to discuss trade between France and New Zealand, and I am hopeful that when I explain the reason for the import restrictions the French Government will co-operate in maintaining the trade of the two countries. I have also to-dis-cuss details of the trans-Tasman service, and freight contracts, after which I should be all clear to leave for home."