IN A PARLOUS STATE

Feilding Star, Volume 9, Issue 3849, 4 October 1932, Page 5

IN A PARLOUS STATE

THE REPUBLIC OF CHILE CANNOT PAY LOAN INTEREST (Per Press Association) Wellington, Oct. 3. Chile, is al present, in a worse economic position that any other country in Die world, according to Captain W. L. Jackson, D. 50.0., R.N., who arrived by Ihe Romnera from London. Captain Jackson, who is to relieve Commander Morgan, C.M.G., of the command of H.M.S. Veronica, was until recently naval adviser to the Chilean Government. He was a member of the British Naval Mission to Chile in 11)25-27, and is the holder of the Chilean Order of Merit. Interviewed by a Post representative. Captain Jackson said that Chile was in a parlous state. Last year was the first time flint tile country had failed to pay the interest on its foreign loan, and it appeared that there was little chance of it doing so for a considerable number of years. The two main exports of the country were nitrate and copper, hut there was little or no market for either of them. Fruit and agricultural products such as barley and honey were the only exports at the present time, but the returns from these were so small that it: made little difference to Hie financial situation. The failure of the nitrate market was really the down fall of the country. Another factor which had contributed to the present state of affairs was over-expenditure in the boom years and immediately after the war. There had also been several political revolutions in Chile during the last few years, and these had kept tlio country in a continual state of unrest. Sheep farming was an important industry in Chile. Much of the breeding stock was imported from New Zealand, which, in the eyes of the Chileans, set a high standard in sheep farming. Many Chileans were sent to New Zealand to study farming.