BRITAIN’S DEFENCE

Gisborne Times, Volume LXXXVI, Issue 13092, 13 February 1937, Page 5

BRITAIN’S DEFENCE

Five Year Re-armament Plan £400,000,000 To Be Borrowed May Cost Three Times ; as Much! Labor to Oppose Scheme Slump Will Follow Boom

(U.P.A. by Eire. Tel. Cotwrightb LONDON. Fob. 11. Speaking in the House of Commons the Chancellor of tho Exchequer, Mr Neville Chamberlain said that the expenditure on defence Avas growing at a pace which made it impossible to meet the charges entirely from revenue. He said that he Avould shortly introduce a Bill authorising the raising cf capital or the use of Budget surpluses specifying a limit of £400,000,000, spread over five years and redeemable in 30 years. Parliament AA r ould control the annual expenditure. LABORITES WANT WHITE PAPER ON DEFENCE.

The Leader of the Opposition, Major C. R-. Attlee, called attention to tho serious import of a proposal unprecedented in times of peace, and asked for tho laying of a White Paper on defence before tho House Avas called upon to reach a decision. Tho Prime Minister, Mr. Baldwin, promised to consider Avhether a White Paper Avould bo the best means of presenting information Avhieli the House might desire to have in advance of a general debate for Avhieli he offered facilities.

Mr. Chamberlain was‘asked whether his statement meant that soon after the Bill giving authorisation for the raising of largo sums of money Avas passed, there Avould in fact be issued stock for the purposes of raising money. Tho Chancellor replied: “1 cannot possibly answer that question to-day.’ AUTHORITY TO TREASURY TO RAISE MONEY.

The second clause of the financial resolution in connection Avith the Bill announced by tho Chancellor authorised the Treasury to “raise money in any manor in Avliich it aatis authorised to raise money under and for tlie purposes of sub-section 1 of section 1 of tho War Loan Act, 1919.”

The accompanying memorandum emphasises that it must be understood the figure £400,000,000 in the resolution does not purport to represent tho cost of the new programme. It represents the maximum aggregate sum which may he provided from borrowed moneys, or from the old sinking fund towards the total cost of defence in tho course of the period, limited by the resolution to five years. These limits on sums to be borrowed and on the period of borrowing are- not themselves final, as either may he modified by a subsequent Parliamentary enactment it the conditions so require.

LONDON STOCK EXCHANGE NOT AFFECTED BY ANNOUNCEMENT. (U P A. bv Elea. Ter. Uouyrfght). (Received Feb. 12, 11 p.m.) LONDON, Feb. 12. Mr. Chamberlain’s loan announcement was made after the close of business. It did not affect prices on the Stock Exchange. The market was already dull and is unlikely, in tho opinion of the Times city editor, to derive much encouragement' from the statement. The conditions for raising uhe loan are hardly favourable at present. The Times, in an editorial, says the scale of British rearmament is wholly conditioned by tho rearmament

of others and t tho failure of other nations to agree upon stabilisation which is still earnestly sought by Britain. Tho Daily Mail’s political correspondent says: “It is assumed that tho rise in the income tax Avill noAv be smaller than anticipated. Members of tlie House of Commons in close touch Avith '-he Government express the opinion that it Avill not oxceed threepence.” The Daily Telegraph’s political correspondent says; “Unofficial estimates place the defence expenditure for the next fiA r o years at £1,200,000,000.'’

LET THEM REMEMBER.! SIR S, HOARE’S WARNING TO AGGRESSORS. “Let countries throughout the AA r orld mark the determined effort AA r o are making,” said Sir S. Hoare at Birmingham. “Let thorn remember that Avlien Ave put our hands to a great task avo are willing to make great sacrifices. Though avo might be slow in starting, Ave aro remarkable for the way wo eventually reach the Avinning pest. A great empire that is also Aveak is a menace to stability and a temptation to an aggressor.”

Liberal members of the Commons Avill meet shortly to decide their attitude. In the meantime', they express astonishment at the magnitude of tho sum. LABOR AGAINST PLAN. The executive of the Parliamentary Labor party met immediately after the announcement and unanimously expressed the opinion that the plan should be opposed. Air. Pethick-LaAvrcnce, a member of the executive and Financial Secretary to tho Treasury in the last Labor Government, said, after the meeting, that it AA'ould lead to boom conditions in Avliich there Avould be a vast rake-off in the shape of Avindfall profits, folloAVed almost certainly by a depression, the .brunt of Avhich would bo borne by tho Avorkers in tho shape of a reduced standard of life. BERLIN, Feb. 11.

Official circles find nothing to eriticiso in tho ucavs of the loan. The official spokesman said “Wo ta.ke it noAv that Britain is making use of her rights, as a matter of course. We shall remember this Avhen avo are criticised.” ROME, Feb. 11. The astronomical figure of tlie loan, Avhen converted into tha lire, is taken ns a, final proof that Britain is noAv at iho bond of tho armaments race. PARIS, Feb. 11. Tho news is Avelcomed but it is regretted that such expenditure is necessary. Britain and Franco Avould liPA’e preferred a strong League and disarmament.