THE DOLLAR CRISIS

Te Awamutu Courier, Volume 75, Issue 6449, 21 November 1947, Page 5

THE DOLLAR CRISIS

NEW ZEALAND'S PART STATEMENT BY SIR PATRICK DUFF First consideration is that New Zealand should reduce her dollar expenditure to an absolute minimum. At present, of course, New Zealand spends more dollars than she earns and the deficit has to be financed out of the sterling area’s common dollar pool. Second consideration is that as requested by Mr Attlee New Zealand should live within her total income. In present circumstances the United Kingdom must use her exports to pay for fresh imports. The United Kingdom cannot afford to pay off debts, which is what the reduction of sterling balances means, and she therefore wants New Zealand so to act as not to call upon her to do so.

Third consideration is that provided the second consideration is observed, the United Kingdom is most anxious that New Zealand, within the limits of reasonable requirements, should take as much as possible from her. It is hardly necessary to elaborate the importance of developing markets to the United Kingdom industry at a time when the United Kingdom can pay its way only by devoting an increasing proportion of her resources to production for export. Moreover, the United Kingdom has no wish to interfere with essential supplies to New Zealand if this can be avoided (on the contrary she has done and will continue to do her utmost to meet them) particularly where this would affect production of foodstuffs in New Zealand or would make it necessary for Nlew Zealand to buy from dollar sources. At the same time it is in the interests of New Zealand herself as a member of the sterling area that as much as possible of the United Kingdom’s export capacity should go to reduce the dollar deficit, and there may be occasions when for this reason supplies offered by the United Kingdom are limited.