CREDITS FOR NEW ZEALAND

New Zealand Herald, Volume LXXVI, Issue 23400, 17 July 1939, Page 10

CREDITS FOR NEW ZEALAND

New Zealand's financial needs have been definitely associated with the Overseas Trade Guarantees Bill by Mr. R. S. Hudson, Parliamentary Secretary for Overseas Trade, in speaking to the second reading of the bill in the House of Commons. The first official indication has thus been given of the form that accommodation is likely to take. The bill increases to £60,000,000 the limit of export credit guarantees which the Board of Trade may give in respect to "transactions which, though not commending themselves on purely business grounds, yet appear desirable in the national interest." The object is to stimulate the British export trade to countries experiencing exchange difficulties and also to enable them to purchase armaments. Referring to New Zealand, Mr. Hudson said any credits granted under the bill would probably be used partly to finance purchases from Britain for defence, and partly to purchase the New Zealand Government's commercial requirements, as distinct from purchases by private quarters. The conclusion from all this seems to be that strict conditions will attach to the disbursement df any credits arranged for New Zealand. The business looks like another instance of "import selection," except that the British Government will do the selecting. This view is supported by referring to the terms under which Rumania and Greece were recently granted credits, although these appear to have been made available under a different authority, the Export Credits Guarantee Act, passed a few months ago. How credits amounting to £5,000,000 granted to Rumania were to be spent, was set out in some detail, part being earmarked for the purpose of British textiles, part for armaments, and part for the settlement of outstanding trade debts. Mr. Hudson's statement in the Commons suggests that any credits for New Zealand will also be carefully allocated. It seems certain that some strings will bo attached to any credits and Mr. Nash may be delaying his departure from London in an effort to make the strings more loose and .flexible.