PARLIAMENT ‘SPARE A DIME’: DOLLAR LOAN PLAN OPPOSED

Greymouth Evening Star, 2 September 1949, Page 7

PARLIAMENT ‘SPARE A DIME’: DOLLAR LOAN PLAN OPPOSED

WELLINGTON, September 1 (P.A.) —In the Budget, the Government proposed to borrow dollars and to seek American investment in New Zealand, said Mr F. W. Doidge (Opposition, Tauranga), in the House of Representatives this evening. The Government that gained the Treasurybenches on a promise of no more borrowing now bade good-bye after 13 years to its dream of a Socialist Utopia and proposed that New Zealand should become one more of America’s poor relations, rattling the mendicant’s tin pannikin and crying, “Spare a dime for the poor New Zealand Socialists.” In spite of an American loan, Britain was not regaining her solvency and what would happen when American aid ended? asked Mr Doidge. Britain had been bolstered up by American aid ever since the war ended, and was no better off today. Loss Of British Prestige Britain’s plain need was to earn more and spend less, yet in fighting to expand her exports she encountered American determination to retain supremacy in world trade and to break into British Empire markets. The aid given Britain had harsh tags attached and sorrowfully they had to admit: that they had seen the loss of Britain’s prestige within the Empire since the war’s end. The United States had breached the bulwarks of Imperial preference and plainly intended to destroy it if . she could. “God help the British Empire if there is any further erosion of the sytem of Imperial preferences,” said Mr Doidge. . • Mr Doidge said Britain’s real trouble was that Socialism would not work. She must sacrifice Socialism for solvency. If British production costs could be reduced other countries would buy from Britain, rather than seek dollar loans. Britain was forced into the Bretton Woods agreement as a condition of the American loan, and as a result British countries had lost £904,000,000 through having to sell gold at the pegged price of £8 12s 3d an ounce, instead of the free market price of £22 10s. Mr Nash had the Opposition and a few of his own supporters to thank for dissuading him from climbing on the Bretton Woods bandwagon. A “Forlorn Hope” To seek American investment in New Zealand was less objectionable than to seek a dollar loan, but it was a forlorn hope, because Socialism was anathema to American capitalists, said Mr Doidge. Any overseas loan should be raised in Britain, to help her re-establish her overseas investments. New Zealand should help Britain by keeping its hands out of the dollar pool, by hesitating before raising a dollar loan, by helping to combat any further weakening of Imperial preferences, and by contributing to the reestablishment of sterling supremacy. Britain was at the crossroads and Britain’s peril was New Zealand’s peril. It was clear that Britain had to stand on her own feet and she would be wise to turn to the Commonwealth, instead of to the United States, for support. There was nothing that Britain needed that could not be produced in the Empire, yet there was a risk that Britain was throwing away the substance for the shadow.