N.Z. BONDS WITH BRITAIN FIRM

Gisborne Herald, Volume LXXV, Issue 22588, 17 March 1948, Page 5

N.Z. BONDS WITH BRITAIN FIRM

MR. NASH’S VIEW NO LOOSENING CLOSER LINK WITH U.S. (10 a.m.) Washington, March 16. New Zealand’s ties with the United States can never be strengthened at the expense of her ties with the United Kingdom,” declared Mr. Walter Nash, New Zealand Minister of Finance, in an interview today. ‘‘l am perfectly sure it would not be politically possible.”

Mr. Nash was questioned on the possibility of closer affiliation between New Zealand and the United States resulting from Britain's preoccupation with her own problems, her geographical position in West Europe and her inability in the future to take the paternal interest of the past in Pacific Dominions.

"I am pretty certain that Britain and the Dominions will hold together for a long, long time.” he added. “New Zealand’s ties with the Old Country cannot be loosened.

“I believe that to be true also of Australia and I know it to be true of Canada."

"Alliance Against Whom?”

Mr. Nash was asked about the possibility of a defence alliance between the Pacific Dominions and the United States. He doubted whether the_ Dominions would seek such an alliance at present.

“The thing we would have to ask is ‘an alliance against whom?’ ” Mi\ Nash conceded, however,' that ways could be found to bring the United States and other countries on each side of the Pacific into closer commercial and cultural harmony.

He pointed out that the New Zealanders’ affection for Britain was such that New Zealand was prepared to sell to Britain its commodities at prices below world oarity. New Zealand, however, would have to be careful “lest “Nemesis overtake it.” There was a danger in selling to Britain at cut rates and buying from Britain at the increased rates which obtained today. More Trade With Canada

Mr. Nash said that in his visit to Canada he discussed with the Prime Minister, Mr. W. L. Mackenzie King, and the Canadian Cabinet the possibility of New Zealand selling more to Canada. He had been given a long list of commodities which Canada wanted to buy. Some of these commodities are now going to other countries, including the United States', but he felt that substantial quantities could be diverted to Canada. Pacific shipping was another topic that Mr. Nash discussed in Ottawa. He said there was a good hope of getting the Commonwealth and Australasian Line operating again between Vancouver New Zealand and Australia. He believed the liner Aorangi would be back into service later in the year. It might also, be possible soon to expand the British Commonwealth cargo services across the Pacific.

Transpacific Air Service

Mr. Nash added that he was told in Ottawa that the Canadian Transpacific air service would probably also be operating in the near future. This service had been handicapped by lack of

planes', but it was expected that this difficulty would be speedily overcome. Mr. Nash yesterday called on the exSecretary of State, Mr. Cordell Hull, in a naval hospital. Today Mr. Nash returns to Havana but expects to leave there within a week for the west coast of the United States where he will board a plane for New Zealand. He hopes to be home by the end of March. Exchange of Students Ho said that the discussions on the exchange of students under the Fulbright Act may be completed today. New Zealand had £750,000 for this purpose, which would chiefly benefit United States students, but would also help to pay the passages of New Zealand students going to America, he said. “New Zealand is anxious to buy machinery and other goods, but is short of dollars,” he said. “It will not be easy to arrive at a trade readjustment because if vve sent less to other countries, such as the United States, we shall nave less means of buying from them. I am hopeful, however, that an agreement can be reached.” Speaking of the Havana trade conference, Mr. Nash said: “I hope before the month is out the authenticated text will be signed by large numbers of Governments. “A very good job has been done in achieving agreements. One of the most valuable achievements of the conference has been in regard to the valuation of all products for customs purposes,” he added. “Australia. New Zealand. Britain and America are bound to be more closely knit as regards Pacific affairs and New Zealand will pay close attention to all aspects of these relations,” he said.