SOUTH AFRICA’S BID FOR DOLLAR LOAN

Grey River Argus, 20 August 1949, Page 5

SOUTH AFRICA’S BID FOR DOLLAR LOAN

Mr Havenga at New York Talks Straight LONDON, August 19. The South African Finance Minister, Mr Havenga, announced, on his ariivai at new x.'jiv mat ne wouiu begin immediate discussions with the Export-Import Bank and arrange a dollar loan for South Africa. He declined to say how much Souln Africa wanted to borrbw. Air Havenga said that South Africa was not interested in gifts. She wanted to borrbw on a commercial basis. He said: “Long experience taught us that it is wisdom tor a country to pay its debts and to keep on paying them.”

Mr Havenga said that South Africa's balance of payments at present was difficult with both the dollar and sterling areas. His visit concerned short term and long term economic interests of South Africa and the United States. A matter of the greatest interest to American ousmessmen, he Riid, was whether the past close commercial relationships would continue. South Airica did not intend to piace any unnecessary obstables in the way of American imports or to maintain its existing restrictions any longer than necessary. "If we have to turn our backs ,on multilateral trade, it will uu only because we are forced into that position, and not because we seek it voluntarily,, or not have done our utmost to avid it,” he said. “We are acutely aware of the obstacles vvmch tne United States places in tne way ol our export trade, and we must pay for a large part of our American imports in gold, which is the world’s only real currency.” Mr Havenga said that American business had, almost entirely neglected South Africa as a field for investment. It had been satisfied with a benefit from South Africa’s heavy international trade, and had not helped to maintain the conditions which made a continual trade flow possible. ‘‘lt has reaped where it has not sown,” he added. “The stream of investment capital from any additional source —Britain or Continental Europe—iS no longer allovved to run so freely. American business men s trade expectations have been thereby disappointed.” Mr Havenga concluded: Will the New World, once again, come in to i edress the balance of the old . South Africa’s Arms Deal in U.S. (Per United Press) (Rec. 10.5). WASHINGTON, Aug. IS. The South African Defence Minister, Hon. Mr Erasmus, before flying home to-day, described his mission, which was to discuss the* purchase of military equipment. He said he appreciated the desire of the United States authorities to be as co-opera-tive as possible in the fact of almost global demands on the American resources. . * Mr Erasmus said that, in talks with the Defence Secretary, Mr Johnson, and with U.S. defence chiefs, he had emphasised that the first aim of the South African Government’s policy was peace, but, until peace was certain, a democratic country with South Africa’s strategic position, could not afford to ignore its defences. He had also emphasised that Communism was probably nowhere more potentially dangerous than m Southern Africa, where vast masses of primitive people offered a fertile field for their unscrupulous propaganda.