U.S.A.-BRITAIN LOAN DEAL

Greymouth Evening Star, 10 December 1945, Page 4

U.S.A.-BRITAIN LOAN DEAL

AMERICAN WELCOME ( NEW YORK PRESS COMMENTS 1 NEW YORK, December 8. 1 The American reaction to the loan 1 agreement is on the whole a surprisingly friendly one. Isolationists newspapers usually unfriendly to Britain ■ approve it. The “New~York Times” ' says that Britain sacrificed her overseas trade for the sake of the war ; and it is in the interests of America : to see it re-established. “The advantages to be gained by prompt ratification of the agreement are mutual,” adds the “New York Times.” “Riding high above all financial and economic considerations is the overwhelming importance of maintaining in these critical and uncertain times the closest possible ties of friendship gmd co-operation among the English-speaking peoples—between a strong United States and a strengthened Britain.” The “New York Herald-Tribune” says: “We are offering to make a not very onerous investment, first, in British economic recovery, but more

particularly in the restoration of a more or less free world market, relieved of exchange controls, trade barriers, governmental monopolies, and discriminations, and also totalitarian regimentations. The debt, if there ever was one, has been paid in British blood.” LONDON PRESS VIEW LONDON, December 28. “The proposals for the American loan have been given a somewhat mixed reception in this country,” says the “Daily Mail,” in a leading article. “We believe that nervousness is unjustified. It would be most ungracious on our part not to recognise the friendliness of the gesture by the United States which closes the chapter of lend-lease, winding it up in the spirit in which it was conceived. Nothing vital is yielded in the matter of Imperial preference. It is clearly laid down that any concessions made must be met by concessions from the other side. It is true that implicit in the loan is Britain’s acceptance of the Bretton Woods plan, which some people view with fear. The plan, however, at least means stabilisation of world currencies and there is little doubt that the great depression of the thirties was largely caused by nations manipulating currency and exchanges unilaterally in what they hoped would be their own interests.” The “Daily Mail” concludes with an appeal for continued trust from either side of the Atlantic. “We can best help our true friends on the other side by acclaiming the very fine world statesmanship shown by the negotiators,” it say.

LOAN FROM CANADA LONDON, December 7. British representatives who played a leading part in the Washington agreement are going on to Ottawa today for preliminary discussion on a dollar loan from Canada to Britain. The talks in Ottawa will be purely exploratory because the matter cannot be taken further until the Canadian Parliament assembles again early next year. Lord Keynes, leader of the British mission to Washington, is not going to Ottawa. He went to the White House to-day to say good-bye to President Truman before leaving for England. N.Z. GOVT.’S ATTITUDE. MR. NASH’S REVIEW. WELLINGTON, December 8. The New Zealand Government regards the publication of proposals put forward by the United States Government as a basis for discussion at the International Conference on Trade and Employment as an important step towards economic collaboration among the nations,” said the Minister of Finance (Mr. Nash) to-day. He said the nations realised that their responsibility extends to removing economic and social causes of war. This was recogised in the Atlantic Charter, the economic objectives of which found practical expression in Article 7 of the Mutual Aid Agreement between the United Kingdom and the United States, to which the New Zealand Government has subscribed. “Discussions between United Kingdom and United States officials as to the best method of giving effect to the provisions of Article 7 have been in progress over a considerable period, and New Zealand, in common with other Dominions, has been kept fully informed concerning these discussions,” continued Mr. Nash. “The New Zealand Government notes with particular satisfaction that the importance of the policy of full employment in each country finds a prominent place in the United States draft. Full employment and the stimulation of international trade arc complementary. One cannot be achieved without the other.” Mr. Nash said New Zealand, as a country with the highest per capita trade in the world, fully appreciated the importance of international trade as a means to her own and world prosperity. “It is, therefore,” he said, “hardly necessary to say the New Zealand Government welcomes the opportunity created by the United States to discuss means of improving world trade.” Mr. Nash said it was too early for detailed comment on the United States draft. He was arranging for publication in full of the text as soon as it was received to enable its study by everybody. While New Zealand could subscribe to the broad objectives outlined in the draft, it was clear that New Zealand’s economic circumstances differed in many respects from those of the great industrial countries. Methods to attain objectives for highly industrialised countries might adversely affect New Zealand and other countries similarly placed. New Zealand was relatively undeveloped industrially and had not the same capacity to modify or eliminate protective measures as did fully industrialised countries such as the United Kingdom and the United States. This would have been taken into account in determining New Zealand’s attitude to the United States proposals and in endeavouring to formulate a set of principles and rules which would be equitable to large and small countries alike. TARIFFS AND PREFERENCE. “Regarding tariffs and preferences, it should be observed that although all margins of preference are to be regarded as open to negotiation,” said Mr. Nash, “the procedure proposed allows for the fact that the reduction or elimination of preference can be considered only in relation to and in return for, a compensatory reduc- . tion in tariffs and other barriers to world trade in general. The position of the United Kingdom and the

Dominions is therefore adequately safeguarded, and there is no question of unilateral surrender of the system of Imperial preferences “Any modification would be linked to tariff reductions by other countries, particularly the United States, which it is hoped will result from negotiations next year. Nevertheless any modification of the system of preference which may possibly have adverse effects on the stability of the New Zealand export trade is a matter of serious concern. The importance of this subject to New Zealand is ■ associated with the fact that the greater part of our national income in derived from the export of a narrow range of farm products, sold predominantly in the United Kingdom.

“On the import side, preferences granted by New Zealand are also important. They limit to some extent competition from outside sources thus protecting our industries. There is also a strong sentiment among all New Zealanders that everything should be done to maintain British exports in New Zealand. There is also a practical reason because' in the last analysis it is the export of commodities from Britain which enables her people to sustain the demand for New Zealand’s exports.” In any future discussions on Imperial preferences, said Mr. Nash, full weight would be given these considerations. The Government was anxious to foster and expand the flow of mutual trade between New Zealand and the United Kingdom, but this did not mean that New Zealand desired to establish exclusive channels of trade. “On the contrary, we are anxious to expand the volume of our trade with other countries, notably the United States. Such trade must, of course be two-way trade, and New Zealand will welcome any arrangements to expand world trade. As Mr. Attlee has stated, the Dominions are not in any way committed by the discussions between the .United Kingdom and the United States. New Zealand will have complete freedom of action in the international discussions and opportunity to present our case in the light of the particular effects on our economy,” said Mr. Nash. Meantime, the fullest attention would be given the principles and details of each proposal as it affected New Zealand both in respect to its external trade and in respect to 'the Government’s intention to , create conditions fostering full employment within the Dominion.” <■