WARTIME DEBTS

Otago Daily Times, Issue 27296, 24 January 1950, Page 5

WARTIME DEBTS

REPAYMENT BY FRANCE SETTLEMENT AGREEMENT PA WELLINGTON, Jan. 19. Agreement has been reached on the claim by the New Zealand Government for repayment of the costs of advances of supplies and services provided for military purposes to the Government of French Oceania during the years 1940 to 1945. The agreement, under which New Zealand has offered to accept 80,000,000 francs (about £80,000) in full settlement, was announced last night by the Acting Minister of External Affairs, Mr Webb. The agreement was made after discussions in Paris at which the New Zealand Government was represented by Miss Jean McKenzie, Charge d’Affaires of the New Zealand Legation in Paris. In a recent exchange of letters with M. Robert Schuman, French Minister of Foreign Affairs, Miss McKenzie stated that, as an indication of its feelings of friendship towards the French Republic and in recognition of the special circumstances under which the obligation had been incurred by the Government of French Oceania, the New Zealand Government was prepared to accept in full settlement of the debt a lump sum of 80,000.000 francs (approximately half the original claim). This sum, it was proposed, would be paid in non-convertible French currency at Paris to cover the expenses of the installation of the New Zealand Legation and to develop still further cultural relations between New Zealand and France.

In reply, M. Schuman said his Government would be pleased to accept this offer, for which it was profoundly grateful. “The French Government,” he said, “is happy to observe again the unselfish sentiments which have inspired the brotherhood of arms between France and New Zealand and which" remain in peace a most sure guarantee of friendship and fruitful collaboration between our two countries.”