New Zealand Is Unable To Give Financial Aid

Otago Daily Times, Issue 27391, 17 May 1950, Page 7

New Zealand Is Unable To Give Financial Aid

Rec. 8 p.m. SYDNEY, May 16. “ My Government is a new Government facing difficult circumstances,” said the New Zealand Minister of External Affairs, Mr F. W. Doidge, when telling delegates at the Commonwealth South-east Asia Conference today why New Zealand was at present unable to make any financial contribution to the scheme for aiding undeveloped countries of South-east Asia. “As an administration we took over at a time when our London funds had been exhausted and our home Treasury contained nothing but promises to pay. “ Ours is not called ‘ God’s own country ’ without reason, however. We are enjoying prolific seasons and our exports command good prices on overseas markets, so it will not be long before we are on our feet again. In the meantime we resolutely refuse to make any financial commitments beyond prudent capabilities of our present resources

“At the same time, I would like to point out that we are playing a very full part in the acceptance of Commonwealth responsibilities.”

payments position sound we have not “In order to keep our balance of payments position sound we have not hesitated to cut some of our own development projects,” Mr Doidge said. “We have, loyally stuck to our bargain made at the Commonwealth conference last year to reduce our drawings on the dollar pool by 25 per cent. Outside of Britain, New Zealand is the only member of the Commonwealth to have fully honoured that obligation. Moreover, as I have already stated, we have in New Zealand, by the free will of the people, undertaken a heavy burden, and, I think, have set an excellent example. Realistically we have taken the decision to establish a system of compulsory military training. That scheme over a period will cost us more than the total sum which has been suggested as the likely cost of the inauguration of the Commonwealth economic scheme we are now discussing. For these reasons my Government feels that it cannot at this time make any financial contribution and must restrict its offer to one of technical and skilled assistance only.”