CONFERENCE ON INDIA.

New Zealand Herald, Volume LXVIII, Issue 20767, 9 January 1931, Page 11

CONFERENCE ON INDIA.

| FINANCIAL PROPOSALS. EXAMINATION BY EXPERT. LIABILITY FOR DEBTS. By Telegraph—Press Association—Copyright. British Wireless. RUGBY, Jan. 7. It is anticipated that the federal structure sub-committee of the India Round fable Conference will complete its work to-morrow. I ho most important speech to-day was by Sir Bhnpendra Micari, High Commissioner designate for India in London, who is a recognised authority on financial matters. Regarding the public debt, he said all that was required was a clause in the Statute acknowledging in explicit terms India's liability to pay the debt and interest, which should bo a second charge on the Consolidated Fund. He was not in favour of any examination of that debt, but agreed that if any future dispute arose the matter should be referred to an independent tribunal such as the Empire Court, which the Imperial Conference recommended. Let there bo no moro talk of repudiation or examination of the dobt.

As to external loans, the speaker said ho saw no reason why the future Dominion Government of India should not subscribe to the conditions laid down under the rules which applied to those States whoso loans were classed as guarantee securities.

As to safeguards for a recurring balanced Budget, ho could picture none which would not detract from tho responsibility of tho Ministry to produce a balanced Budget and thus precipitate a crisis. The greatest safeguard against a financial breakdown lay in responsibility. Sir Bhupendra said lie hoped that when responsible government was introduced with minimum safeguards, his countrymen would rise to tho responsibility and I hat with tho help of the Princes, who would form an element of tho federation, an effort would bo made to raise the amount of gold required for establishing a reserve bank without external assistance. If a breakdown occurred let them dismiss the Ministry. If the new Ministry also failed let them dismiss it also. Mr. M. A. Jinnah, a member of (he Legislative Assembly, supporting Sir Tej Bahadur Sapru's proposals, said one powerful section in his country demanded complete independence, while another section expected real Dominion status. He agreed that responsible Government could not be given without safeguards for minorities. He was under no misgivings that Dominion status or completely responsible government was contemplated, bub the measure of responsibility must be such as would command the support of politically-minded India and would win over tho bulk of tho supporters of these two sections.