BUTTER TO GERMANY

Evening Post, Volume CXXXVI, Issue 31, 5 August 1943, Page 4

BUTTER TO GERMANY

NEW ZEALAND'S BARGAIN

"They were talking about guns instead of butter and we sold them butter instead of guns," said the Minister of Finance (Mr. Nash) in the House of Representatives last night when he explained pre-war transactions between Germany and New Zealand. • " ■ ■

The question was raised by' Mr. F. W. Doidge (National, Tauranga), who asked what was the outcome of the treaties concerning the sale of butter made when Mr. Nash was Minister of Marketing. He thought treaties had been made with Finland, France, Russia, and Germany.

Mr. Nash said that New Zealand had' sold butter to Germany after discussing the matter with the British Government, which had suggested that he should go to Germany and endeavour to sell New Zealand butter. Britain was anxious for New Zealand to show Germany and to advertise the fact to the world that a British Dominion was willing at that time to sell foodstuffs to Germany. That was in 1937. The butter was delivered to Hamburg through London at the ruling London prices. "When the war is over I hope we will sell butter again to Germany," said Mr. Nash. "It is better to sell them that than things to turn into guns and explosives.

The Minister said that New Zealand had not made treaties with Finland or Russia. There were agreements with Germany and Holland and a tentative agreement with France, and some agreement with Switzerland. The main one was with Germany. Mr. Nash said that other countries had made agreements with Germany and had sold goods to Germany. The only way they had of getting paid was by Germany sending them goods, but the Germans never sent the goods. New Zealand did the opposite by telling Germany she would sell goods to the value of the goods required from Germany and would sell theni after buying the goods from Germany. Germany had paid New Zealand in advance.