LONDON LOAN

Hawera Star, Volume XLIX, 31 August 1929, Page 5

LONDON LOAN

CONFIDENTIAL NEGOTIATIONS. OPPOSITION LEADER’S MOVE. INVEST! Cl ATI ON DECLINED. (By Telegraph—Special to the Star.) WELLINGTON, Aug. 30. What lias become known as tb© London loan mystery was talked at grant lengt-li on the Imprest Bill in the House of Representatives to-day, and the Opposition leader's insistence oil pressing the matter to an investigation, by the Public Accounts Committee produced a situation which, for a brief moment, looked threatening to the Government as an amendment which lie had moved embodies suggestions wliioh bad been supported Iby a number of Labour members in their speeches. The matter, however, never came to a division. Mr H. G. R. Mason (Auckland Suburbs) had suggested that the Prime Minister’s statement that he had been prohibited iby the action of ilie former Finance Minister from borrowing in London for 18 months required to be cleared up, as it involved a question of honour. Several other members referred to the questaou and ultimately the Prime Minister, answering the suggestion that the whole question could be investigated by the Public Accounts Committee, declared that it was confidential, and that he .could not place the correspondence on Joan negotiations in members’ hands, as it was confidential. “If we did that, we dare not put our noses into London again. There are men high up at the ofiher end of 1 the financial world whose names are 1 mixed up with the transactions, in the! strictest confidence of course.’ ’

Mr J. G. Coates, Leader of the Opposition, came into the discussion to strongly advocate the proposal to have the question Cleared up. It was a serious allegation against his colleague to say tli,at he prevented the present Government from going on the London market for 18 months. “I say that no such action can be attributed to him.” Sir Joseph Wardi: I say it can.

Mr Coates added that as a practical suggestion he thought the ex-Minister of Fiinanpe could meet Sir Joseph Ward and go over the loan files. They could then come to an understanding as to the. real position.

There was much discussion over the position and Mr H. EL Holland offered another suggestion that he should arbitrate between the Minister and the exMinister.

Coming back to the subject just before the House adjourned, Mr Coates asked if the question would be referred to the Public Accounts Committee, ‘•'l have said what I meant and don’t require to repeat it,” reported the Prime Minister.

Mr Coates replied! that the matter was of sufficient importance to warrant has hope that the Prime Minister wound have met him half-way by meeting the ex-Finanoe Minister. This, had been declined ,therefore the only way to settle it was Iby testing the feeling of the House. He therefore moyed as an amendment: “That the question be referred to the Public Accounts Committee and that if, be instructed to report on the loan negotiations in connection with the raising, of loan and coversions in London in January last, that with a view to informing the House fully as to. the facts, in connection therewith, and in particular whether any undertaking was given not to go on the London money market for 18 months, and if so by whom such undertaking was given and for what reason.” Mi- Speaker (Sir Charles Sbatham) announced that lie could not accept the amendment in the form as moved because it could not contain an instruction to a committee. Mr Coates: I'was in hopes of getting an undertaking from the Prime Minister. We only want to clear tilings Up. If it is out of order we will let it go and I will take another opportunity. Mr Speaker remarked that it was not for him to suggest any modification of the motion.

There was momentary isilenee while everyone awaited an expression from the Prune Minister. “I decline to refer it to the Public Accounts Committee,’’ he said emphatically. “I decline on the broad ground that matters of this kind are confidential matters from the Treasury and have never been referred to a committee.”

The Leader of the Opposition made some remark to> the Prime Minister, who retorted: ‘ ‘lt is no use fooling. I am quite ready for you.” Mr Coates: ‘ ‘We have not found that. I hope the honourable gentleman is quite ready. He is not in position when he can afford to treat this matter lightly. It will be cleared, up, and Cleared up this Parliament.” Mr Broadfoot: “And you will get another thrashing. ’ ’