SEAL OF SECRECY

Sun (Auckland), Volume III, Issue 725, 26 July 1929, Page 16

SEAL OF SECRECY

BAN ON LONDON MONEY | MARKET IMPOSSIBLE TO EXPLAIN (THE SUN’S Parliamentary Reporter) PARLIAMENT BLDGS, Thurs. Proof of the Prime Minister’s statement that through the negotiations of the former Minister of Finance he was prevented from going on the London market for two years was demanded in the House of Representatives tonight by Mr. R. A. Wright (Wellington Suburbs). In announcing the rates of interest at which State advances would he given, before finding whether he could get the money, said Mr. Wright, Sir Joseph Ward was putting the cart before the horse. He was now trying to find a scapegoat in Mr. Stewart. Sir Joseph Ward: I have. Mr. Wright: With deference, I say you have not. Sir Joseph: I say I have. Mr. Wright said that Sir Joseph Ward should take the House into his confidence and prove to the hilt that whatever had been done by Mr. Stewart had embarrassed him so that he could not get money. A statement on the floor of the House was not sufficient. Such charges should be proved in black and white. Mr. Stewart was one who stood by friends “right or wrong.” Government Voices: Wright is wrong. (Laughter.) The Minister of Justice, the Hon. T. M. Wilford, said that the position was that the House had the statement of the Prime Minister and that of Mr. Stewart. There the matter stood, but it did not rest there. Altogether Mr. Stewart had asked that communications on the subject be produced in order to prove that he had embarrassed the Government. Mr. Stewart, however, must have known that such a step could not be taken. Mr. Stewart: Why not? Mr. Wilford: Thank you for the interjection. Now I will tell you why. I have a letter from the Secretary of the Treasury. This is what he says: With reference to above (that is the information sought by Mr. Stewart), as you are aware, all correspondence and cables relating to these and other transactions in London are strictly confidential, and cannot be made public. All negotiations leading up to borrowing in London are under confidential seal and always have been in the interests of the Dominion if it is to obtain best information and results. The second conditions must be held inviolate.— (Signed) R. E. Hayes. Yet the late Minister of Finance asked for what he knew he could not get and hoped to convince the public that he was right and the Pr'me Minister was wrong, continued Mr. Wilford. Mr. Stetvart had embarrassed the Prime Minister. An explanation was later made by Mr. Stewart, who denied that he was asking for something he could not get. He had not known and still did not know that it was impossible for any Government to lay on the table papers relating to transactions which had taken place six months ago.