LEASE-LEND AND WAR FINANCE

Evening Post, Volume CXXXV, Issue 22, 27 January 1943, Page 4

LEASE-LEND AND WAR FINANCE

Figures quoted in a cable message yesterday showing the quantities of foodstuffs supplied by New Zealand under the reciprocal lease-lend programme will probably come as a surprise to most people in this country. It has been known, of course, that the Dominion was making a contribution, but statements by the Government as to the extent have been in the most general terms. In the last Budget provision was made for £ 10,000,000 to finance lease-lend, but at that stage the extent of reciprocity that would be achieved was no doubt so problematical as to make this more of a guess than a reliable estimate. Now that the American lease-lend administrator, Mr. Stettinius, has given a comprehensive review of what New Zealand has supplied under the arrangement it should

be possible for the Government to make available to the public more detailed "information than has .so far been forthcoming. Without that information it is not possible to reach a full understanding of the country's financial position. Similarly, the public are entitled to more information regarding New Zealand's indebtedness to Great Britain under the Memorandum of Security. In the terms of the Memorandum Great Britain agreed to meet, by way of loan, much of New Zealand's expenditure in respect of her forces overseas, but New Zealand hoped to repay a large part of this debt as it became due. Information as to the extent of the obligations entered into and the amount still outstanding has not been as full as might have reasonably been expected. In his latest statement on the country's financial position in regard to the war, made simultaneously with the announcement of the Government's stabilisation policy, the Prime Minister stated that the country's indebtedness under the Memorandum had been met to the extent of £ 11,412,677 v sterling. These payments were made possible by the strong position of New Zealand's overseas funds. What the public wish to know as well, howevei*, is the extent of the commitments remaining and what further commitments are being made. It is possible that New Zealand is now meeting more of her overseas commitments without assistance from Great Britain and that the aid needed has proved less than estimated. The whole question has such an important bearing on the country's financial position, both now and in the post-war period, that the fullest possible information should be made available.