DEBATE ON DEFENCE

Greymouth Evening Star, 21 February 1939, Page 7

DEBATE ON DEFENCE

OPENED IN COMMONS SIR J. SIMON’S SPEECH [BRITISH OFFICIAL WIRELESS] (Received February 21, 11.35 a.m.) RUGBY, February 20. To-day’s Commons debate on defence was opened by Sir J. Simon, whose speech was notable for its frank forecast of the approximate proportions. in which defence expenditure in the coming year would have to be met, from revenue and from borrowed money respectively. Sir J. Simon told the House that he was working' on the. assumption that for the £580,000,000 which, it was revealed, in last, week’s White Paper, 'would be the total of expenditure on defence, including civilian dedcfence, in the coming financial year, approximately £240,000,000 would be available from revenue, and about £350,000,000 would have to come from the loan account.

He added a warning that no one should draw any further conclusion — presumably as,to-the time.or the manner of further borrowing, or as to the taxation proposals of the'forthcoming Budget—frftm that forecast. The Chancellor claimed that the principle of borrowing for this purpose was established and acceptable, and that it was generally recognised that the financial strains involved in the reorganisation of defence were greater than revenue could bear alone. What was necessary was that they should demonstrate readiness to bear each year the proper share ot the burden, and, in evidence of such determination, he cited figures to show, taking the three years, ending in March, 1940, together, that out of a total expenditure of about £1,250,000,000 for defence, about £700,000,000 would, have to be met from revenue.

The provision for repayment of borrowed money, in connection with the present proposals, 'was quite specific. When, a Department had received a duly-authorised issue of loan money, then interest at the rate of 3 per cent, was charged against that Department, to the end of the five-years period, and thereafter sums had to be repaid to the Exchequer. The resolution moved by Sir J. Simon provided, firstly, for an increase in the borrowing powers authorised by the 1937 Defence Loan Act, from a total of £400,000,000 to £800,000,000, and secondly, for a redefinition of defence services, for the purposes of the Act, so as to permit expenditure on loan account for civilian defence, and grants in aid of the essential commodities reserve fund. Sir J. Simon said that civil defence was more and more seen to be an essential part of defence as a whole, and it was illogical that non-recurrent expenditure for A.R.P., for example, should not benefit by the Act. Any expenditure, moreover, on food stores in connection with the safety of the country, was obviously an appropriate subject for loans under the Act.

REVIEW OF REARMAMENT. Speaking of the formidable total ot defence expenditure with which the country was faced, Sir J. Simon reviewed the progress of the rearma ment programme. The first year had been largely one of preparation. ■ The present year had been one of rapidlyincreasing production, and the third year, with the' great expenditure they now contemplated, would be one with production at full blast. It would be a chronicle of the provision of equipment, and for great increases in the personnel of all three services. For the Navy, the personnel of which had been increased by 33,000 men, there was a great building programme, including no fewer than nine capital ships for the four years. The great inflow of Regular Army recruits, and the record intake into the Territorial Army, called for reequipment and the accumulation of a war reserve, which would proceed apace next year. Recruitment of many thousands of men for the Royal Air Force, of high quality, was matched, by a further augmentation of the sources of air craft production.

It was deplorable and grievous, Sir J. Simon concluded, that so large a part of the resources of the world should be devoted to armaments, when otherwise they might be available to promote and sustain peaceful progress, but. so long as no general arms limitation, genuinely and effectively secured, could be reached, they must face a continuance of this heavy burden, and face it in the confidence that British financial strength, British character, and the inspiration of democratic faith, would enable them to stand the strain as well, if not better than others.

Dr. Hugh Dalton, who was spokesman for the Labour Opposition, conceded that, in consequence of the National Government’s past foreign policy, a great increase in the defences of the country was now inevitable, and the Opposition would not vote against financial measures; but he moved an amendment to reduce the authorisation to £799,000,000, as an expression of the Labour Party’s grave dissatisfaction with the past record of Ministers in these matters.

Civil defence will be debated in the Commons, next week, when the supplementary estimates for the Privy Seal Office, A.R.P., and national service will bo brought forward.

EMPIRE DESIRES PEACE.

LONDON, February 20

Referring to his'Tbur of Australia and New Zealand, four years ago, the Duke of Gloucester, at a Mansion House banquet in connection with the British Industries Fair, said that he was impressed by the sincere desire, in every part of the Empire, for peaceful relations with the rest of the world.

It was gratifying to know that organised industries, and bodies of individual industries, were showing a readiness to explore new methods, but the success of one country or group of countries was not enough. Britain was bound to rejoice in the advances

towards prosperity made by all ei gaged in world commerce.

ARMAMENTS RACE

(Received February 21, 1.30 p.m.) PARIS. February 20.

“Le- Temps” says: Because England and France desire peace, they are prepared, while watching their own in tc-rests. to facilitate Germany’s transition from the"-regime of armaments to normal economy. Aid to the Reich, in the financial and economic sphere, must not be used to accelerate the armaments race, which, if maintained at its present speed, threatens to ruin every nation.