LOAN MISSION

Otago Daily Times, Issue 23857, 11 July 1939, Page 9

LOAN MISSION

MR NASH IN LONDON A CONFIDENT VIEW u SUCCESS IN SIGHT" ANNOUNCEMENT BY PRIME MINISTER <Fbom Oub Parliamentary Reporter* WELLINGTON, July 10 "There is every reason to assume that Mr Nash has just about achieved success in his mission," said the Prime Minister (Mr Savage), in reply to an inquiry this evening concerning the progress of the negotiations in London. Mr Savage said that he had been in close touch by cablegram with Mr Nash, who was acquainting him with the nature of his conversations, and although finality had not yet been reached, it seemed that it was close at hand. " There are three aspects of Mr Nash's mission—the renewal of the £17,000,000 loan falling due next January, the question of an export credit, and trade matters generally," Mr Savage said. "The. advice 1 have received indicates that success will be achieved. " So far as I am aware," the Prime Minister added, "Mr Nash will be leaving England on Wednesday, but if that time is not sufficient for him to complete the job, he will undoubtedly stay longer. I have told him to stay there until his task is finished." MR NASH RETICENT (Independent Cable Service) LONDON, July 10. (Received July 11, at 0.15 a.m.) Mr Nash declines to comment on any aspect of the negotiation?, but will possibly make a general statement to-morrow or on Wednesday. SHORT-TERM BORROWING AUSTRALIAN OPERATION MOT FOR LOAN REDEMPTION A suggestion made in London that redemption of New Zealand's £17,000,000 of debt, due on January 1, may be arranged temporarily by short-term borrowing describes this device as being " similar to the Australian arrangement some years ago." There is no record available of Australian maturing debt having been provided for. in recent years by what is commonly understood as short-term, borrowing. . In'the difficult' years .1929-31 there was a considerable Australian floating debt in London, but it had come into existence in various ways. How part of it was incurred was described in a report by the directors of the Commonwealth Bank, dated January 24, 1930, as follows: — "For many years past Australia has relied upon the oversea market to provide funds in the way of loans to augment such surpluses as she may herself accumulate for general purposes of development; funds so obtained have been utilised for assisting to meet overseas obligations, thus releasing local accumulations for national developmental .purposes. "Owing to the general financial disturbance . . . the usual channels of ovrrseas supply of loan moneys have been unavailable to Australia . . . as a result, during the six months' period no Government loans have been raised overseas and pressing needs have been met by the issue of Treasury Bills in London to the extent of £10,000,000."