NEW ZEALAND’S PART

Northern Advocate, 19 December 1932, Page 5

NEW ZEALAND’S PART

“IN HONOUR BOUND"

MESSAGE TO HOME GOVERNMENT.

BEADY TO ASSUME LIABILITY

RECIPROCATION OF FAVOUR

(Per Press Association.—Copyright.) WELLINGTON, This Day.

Following the expiration of the Hoover moratorium, the Prime Minister, the Rt. Hon. G. W. Forbes, and the members of Hie Cabinet gave consideration during the week-end to the position as it affects the obligations of New Zealand to the United Kingdom. When the Hoover moratorium came into effect, His Majesty’s Government in the United Kingdom of its own volition offered to extend the moratorium to the war debt of New Zealand to the United Kingdom, an offer which was gratefully accepted, especially as it •gave 1 welcome and much-needed relief to the finances of the Dominion. The Hoover moratorium is now at an end, and last week His Majesty’s Government in the United Kingdom was obliged to make a heavy payment to tho United States on account of the funded war debt.

His Majesty’s Government in the United Kingdom had previously signified its willingness to continue the moratorium with respect to the obligations of this dominion to the United Kingdom, but His Majesty’s Government in New Zealand now considers that it should not accept without question this most generous offer. It is convinced that the people of New Zealand would not wish to strain the generosity always so freely extended by the people of the United Kingdom, who are facing difficulties perhaps even greater than those confronting this dominion.

It has accordingly felt it advisable to inform His Majesty’s Government in the United Kingdom that, if the United Kingdom’s offer to continue the postponement of payments due by New Zealand was made on the assumption that the former’s own payments due to the United States could also be postponed, then New Zealand would feel bound to resume liability.

Awaiting Information.

His Excellency the Governor-General, Lord Bledisloe, accordingly has been requested to convey the following message to the Secretary of State for Foreign Affairs: — "His Majesty’s Government in New Zealand desires to recall the fact that His Majesty’s Government in the United Kingdom lately agreed to extend the operations of the Hoover moratorium with a view to granting financial relief to this dominion, and the New Zealand Government gladly accepted this generous concession. His Majesty's Government in New Zealand is not aware how far His Majesty’s Government in the United Kingdom granted this concession in reliance' on an anticipated similar concession by the United States of America to the United Kingdom, and it would be grateful to be informed'whether the British Government, in circumstances as they now exist, desires to review the position and restore the status quo ante so that 'this Dominion should resume liability for the payment as if the moratorium had not been extended. If the concession to the Dominion was granted on the assumption of a continued moratorium by the United States of America, then His Majesty’s Government in Now Zealand would feel in honour bound to resume liability.’’ The statement adds that it is felt that the action of the Government will meet with the whole-hearted approval of the people in this dominion, notwithstanding the difficulties confronting them.

The offer made by the Government refers to the debt of £27,532,164 advanced by the Imperial Government and funded in terms of the agreement dated December 6, 1922. Under the agreement New Zealand undertook to pay on December 1 and June 1 annually instalments of £825,965 in redemption of principal and interest. The last payment was made on June 1, 1931, the principal of the debt then standing at £24,100,199. Following the Hoover moratorium the Imperial Government agreed to postpone the instalments of principal and interest due in December, 1931, and June, 1932. A payment was due on December 1, but, as the Budget stated: “Following the presentations in London in regard to our difficulties, Great Britain has again extended a helping' hand by consenting to postpone for another year all payments due to our funded war debt and certain other debts due to the British Government. The additional relief to this year's Budget is £825,000, in addition to which a saving of £47,000 will accrue to the State Advances Office. Our grateful thanks are clue to the Mother country for this substantial measure of assistance durI ing the acute period of our troubles.’’