MEETING EXPENSE

New Zealand Herald, Volume LXXVI, Issue 23274, 17 February 1939, Page 11

MEETING EXPENSE

LIMIT OE BORROWING

EXTENSION BY LEGISLATION CHANCELLOR'S STATEMENT AUTHORITY FOR £600,000,000 By Telegraph—Prsss Association —Copyright British Wireless LONDON, Feb. 15 The Chancellor of the Exchequer, Sir John Simon, announced in the House of Commons to-day that he would introduce a bill to increase from the present limit of £400,000,000 to £800,000,000 the amount which may be borrowed for defence in the five-year period ending March, 1942.

Sir John recalled that last November he had intimated that some increase would bo needed on the £400,000,000 authorised by the Defence Loans Act, 1937. The expense on rearmament met out off borrowed money up to the present was just under £200,000,000, so that the result of the bill he proposed to introduce would be to provide authority for future borrowing foxdefence of just over £600,000,000. The Chancellor said he proposed to include among the purposes for which further defence loans might be used expenditure on civil defence and tho purchase of food and other essential commodities. There would be a debate in the House oi Commons on the defence programme as a whole next Monday and Tuesday. CHORUS OF APPROVAL THE BRITISH PRESS MOVE TOWARD SECURITY "GROWING STRONGER DAILY" Independent Cable Service (Received February 17, 12.10 a.m.) LONDON, Feb. 16 All " sections of the press warmly approve the defence programme. The Daily Telegraph says: "The cost .is staggering, but the country is ready to bear whatever burden will assure national security. All it asks is that it receive value for the money, and receive it quickly." The News Chronicle says: "The programme will show the dictators that their apparently pacific speeches have not pulled! the wool over our eyes." The Daily Express: "The new programme will make us so strong that no enomy will dare to attack us." The Daily Mail: "The barometer tells us we are becoming stronger daily as the needle' of expenditure moves steadily, from 'danger' to 'security.' " The Financial News says that with drastic economies and drastic taxation it might be possible to keep defence borrowing between £265,000,000 and £295,000,000 in the coming year. NINE. BATTLESHIPS ROYAL, NAVY ADDITIONS 43 VESSELS ON PROGRAMME Independent Cable Service (Received February 17, 12.15 a.m.) LONDON. Feb. 16 The Daily Express says the two battleships oi the 1939 programme ttill be of 40,000 tons and will be armed with 16in. guns.

Four large cruisers and one aircraft carrier wili! wake a total of 43 ships for the 1939 programme. The new battleships will bring the total capital ships under construction to nine. NEW POST CREATED MOBILISATION DIRECTOR MAJOR-GENERAL WEMYSS [from our own correspondent] LONDON. Jan. 30 The Wur Office announces the creation of ths post of Director of Mobilisation. The appointment to the post of Colonel H. C. B. Wemyss, late of the Boyal Corps of Signals, who is promoted major-general, was notified in the London Gazette. The appointment marks a further step in Mr. L. Hore-Belisha's scheme for the simplification of War Office duties. It arises out of a decision to

subdivide the diverse and increasing functions of the Director of Recruiting and Organisation, which have hitherto included reiipontiibilitv for mobilisation. . ~ . Until he succeeds Lieutenant-General R. H. Haining as General Officer Commanding the British forces in Palestine and Trans-Jordan, in .July. MajorGeneral Bariser will be responsible for recruiting and organisation. Major-General wemyss, who will succeed him on hid departure for I alestine, will for the present bear the title of Director of Mobilisation. Before Maior-General Barker leaves a second director will be appointed to undertake the balance of his duties.