Substantial Grant Of Credit Likely

Manawatu Times, Volume 64, Issue 160, 10 July 1939, Page 7

Substantial Grant Of Credit Likely

FOR NEW ZEALAND DEFENCE NEEDS LONDON, July 7. The New Zealand Minister of Finance, Mr Nash, has postponed his departure for New Zealand until July 12. He was originally to have sailed to-morrow. Mr Nash's decision to postpone his sailing was made at the last moment. His luggage was on the point of being shipped. No indication is available whether the reported grant of export credit will be completed before his departure next Wednesday. Both the Financial Times and the Daily Herald’s City editors suggest that Mr Nash, before his departure, will be granted a substantial export credit, instead of a loan, for defence purposes. The latter says that a total of £ 10million will be spread over two years, j partly under the Exports Credit Guar- j antee Department, but mostly under j the Board of Trade’s new special powers guaranteeing loans necessary to the national interests. New Zealand, therefore, would have to spend the loan wholly in Britain, and it would thus not help as much as a free sterling loan for buying outside Britain such commodities as oil, but some sterling will be freed for this purpose. Nevertheless, it will ease New Zealand’s exchange shortage and facilitate the £ 17-million conversion in January, but there must be some rationing of sterling funds to New Zealand importers in the next few months.