WAR DEBT OBLIGATIONS

Otago Daily Times, Issue 21986, 22 June 1933, Page 6

WAR DEBT OBLIGATIONS

The vexed question of Avar debt payments as they affect the Ncav Zealand community, and particularly the farming section of it, Avas discussed by Mr H. D. Acland, in his presidential address yesterday at the meeting of the Sheepowners’ Federation, from an angle that emphasises the extra burden in Avhich reduced commodity prices have involved the Dominion in the discharge of her overseas obligations. Mr Acland pointed' his reference by translating the Avar debt payments into terms of primary produce. His conclusion thus stated is that Ncav Zealand is required to pay to Great Britain “ three times the amount of butter and lamb previously required to meet the interest bill.” From this general statement there can be no dissent, and most people will agree with Mr Acland, in theory at least, Avhen he says that “ the necessity for some positive action in regard to the reduction of interest payments must be apparent.” It is not so easy, however, to suggest a means of obtaining reductions in the interest obligations of the Dominion without violation of her solemn undertakings Avith her creditors. Repudiation is not only unthinkable in the minds of most people on moral grounds, but Avould be against practical policy as seriously lowering a reputation that is of the highest value to Ncav Zealand. Granted that relief from the Avar debt commitments of this country Avould be extremely desirable, it must be apparent that this can only be obtained by agreement Avith the British Government. 'Hie Dominion has already been treated very generously by the British Government in respect of the Avar debt liability, and the acceptance by the United States of a token payment from Great Britain, pending the settlement of Avar indebtedness, encourages the hope that more may be done to relieve the Avholc situation, and that Ncav Zealand may receive further generous treatment from her Imperial creditor. No doubt all aspects of the problem as it concerns the Dominion will bo brought before the British Government by the Ncav Zealand delegates to the Economic Conference, and the possibilities of affording relief \vill bo fully explored. It is perhaps desirable to remember that though the artificial raising /of the exchange rate, Avhich Mr Acland approves, this Dominion has of its OAvn volition added considerably to the service of the war debt and all other overseas obligations.