END OF LEND-LEASE

Nelson Evening Mail, Volume 80, 30 August 1945, Page 6

END OF LEND-LEASE

NEW ZEALAND’S POSITION SETTLEMENT SUGGESTED DIFFERENCE IN PRICES FOR GOODS and services (From Our Parliamentary Reporter) Wellington, Aug. 29. If New Zealand asked the United States to do what Britain had done in the way of a settlement on the difference in prices charged for goods and services during the war America would owe the Dominion not less than £20,000,000 to £30,000,000, said Mr F. W. Doidge (National, Tauranga) in his Budget speech in the House of Representatives yesterday afternoon. Mr Doidge said that with the war at an end lease-lend was at an end and the Budget disclosed that New Zealand owed the United States £25,000,000. The Minister of Finance (Mr Nash) still held the view that there would be no day of reckoning, but he disagreed with that. “I suggest now that we seek a reckoning with the United States on a basis which I believe the United States would regard as reasonable and would accept,” added Mr Doidge. ‘‘According to the Budget we have taken goods and services from the United States worth £83,000.000 and have given goods and services worth £58,000,000, but it is clear that America has sold to New Zealand at wartime prices and we have sold to the United States at pre-war prices. I think it can be said that we in New Zealand have cheerfully gone on short rations so that the American forces in the Pacific could have adequate foodstuffs. We have charged prewar prices while America has charged three times the pre-war prices. ‘‘Business on that basis does not make sense and the United States would be the first to agree with that. We supplied Britain at pre-war prices and Britain supplied us at wartime prices, but to wipe out the discrepancy Britain without hesitation gave us a Jump sum payment of £24,000,000. Why the differentiation between Britain and the United States? ‘‘lf we ask the United States to do what Britain has done America will owe us not less than £20,000,000 to £30,000,000. America does not want any charity from us, but would regard it as a just claim and would pay willingly. If we fail to make this claim the United States will regard this Government as a bunch of ‘saps.’ ” He suggested that if such a settlement was reached the money should be paid into the Dominiort’s London funds. BASIC PRINCIPLE OF LEND-LEASE The basic principle of lend-lease, said Mr T. H. McCombs (Government, Lyttelton) was that goods used for war would be provided by the country producing them. There was n 0 reason to believe that there would be any alteration in that position, unless of course, they got a different Government in the United States, one that would be asking for some sort of settlement. But if there was a settlement. New Zealand would not be prepared to accept it on the terms on which accounts had been kept up to the present. If, on the other hand, there was no intention ot proceed with a settlement there would be no reason to disturb the present price structure. Cancellation of lend-lease, added the speaker, brought a problem not only to Britain but to this country. No doubt the Americans would still require us to supply their troops in the Pacific, particularly with food, but he would be very sorry to see this placed on a cash basis. The Americans had inflated prices to the skies, and he would be sorry to see New Zealand accepting that basis and dealing with them on the level of New Zealand prices, which had been considerably controlled. The effect would be a partial gift to the Americans, who, if they chose to live on a higher price level than New Zealand, should be prepared to carry that right through. Mr S. W. Smith (National, Bay of Islands) said the Minister of Finance had assured the House more than once that when the war ended and lendlease ceased New Zealand would not owe anyone anything. ’lf that were so why was there an amount in the Budget estimates of £22,000,000 for reverse lend-lease? Even if there were such a commitment, to allow £22,000,000 for a full 12 months and the same amount for only four and a-half months did not make sense.