STRICTLY CONFIDENTIAL.

Thames Star, Volume LXIII, Issue 17678, 31 August 1929, Page 5

STRICTLY CONFIDENTIAL.

LONDON LOAN NEGOTIATIONS

OPPOSITION CRITICISES MOVE

PRIME MINISTER’S REFUGE

)Bv Telegraph.—Own Correspondent.) PARLIAMENT BLDGS., Aug. 31. What has femme known as the London loan mystery was talked at great length on the Imprest Bill in the House yesterday and Mr. Coates’ insistence of pressing the matter to an investigation by the Public Accounts Committee produced a situation which for a brief moment looked threatening to the Government. As an amendment lie moved the embodied suggestion which had been supported by a number of Labour members in their speeches. The matter, however, never came to a division. Mr. Mason (Auckland), had suggested that the Prime Minister’s statement that he had been prohibited by the action of the former Minister of Finance from borrowing in London for 18 months required to be cleared up, as it involved a question of honour.

Several other members referred to the question and ultimately the Prime Minister, answering the suggestion that• the whole question c-onld’he investigated by the Public Accounts Committee, declared it was confidential. He could not place the correspondence on the loan negotiations in members’ hands. It was confidential. “If we did that we dare not put our noses into London again. There are men h,i'gh up at the other end of the financial world whose names are mixed up with the transaction, in the strictest confidence, of course.” • Mr. Coates. Leader of the Opposition, came into the discussion to strongly advocate the proposal to hare the question cleared up. It was a serious allegation against his colleague to say he prevented the present Government from going on the London moneymarket for eighteen months. “I say no such action can be attributed by him.” Sir Joseph Ward: I say I can. Mr. Coates added that as a practical suggestion he thought the exMinister of Finance could meet Sir Joseph Ward and go over the loan files. They could then come'to an understanding as to the real position. There was much discussion over the position, and Mr. Holland offered another suggestion that he should arbitrate between' the Minister and the ex-Minister. Coming hack to the subject just before the House adjourned Mr. Coates asked if the question wcnkl be referred to the Public Accounts Committee,. “I have said what 1 meant, and I don't require to repeat it,” retorted the Prime Minister. Mr. Coates replied that the' matter was of sufficient importance to- warrant his hope that the Prime Minister would have met him half way hy meeting the ex-Finance Minister. This had been declined therefore the only way to settle it was by testing the feeling of the House and he therefore moved as an amendment “That the question he referred-.to the Public Accounts Committee, and that it he instructed to report on the loan negotiations in connection with the raising of the loan and the conversions in London on January last, and that with the view to informing the .House fully as to the facts in connection therewith and in particular whether any undertaking was given not to go to on the London money market for 18 months, and if so-, by whom such undertaking was given, and for what •iea sons. Mr. Speaker. Sir Charles Stntham, announced lie could not accept the amendment in the form as moved because it could not contain an instruction to a committee. Mr Coates-: 1 was in hopes of getting that undertaking from the Prime Minister. We only want to clear things up. If -it is out of order we will let it go and I will take another opportunity. Mr. Speaker remarked that it was not for him to suggest any modification of the motion. There was a momentary silence while everyone awaited an expression from the Prime Minister. “I decline to refer it to the Public Accounts Committee,” lie said emphatically, “I decline on the broad ground that matters of this kind, confidential matters from the. Treasury, have never lieen referred to a do-m-

mittee.’’ _ The Leader of the Opposition made some remark to the Prime Minister, who retorted. “It is no use fooling. I am quite ready for you. ’‘ Mr Coates: We have not found that. I hope the Hon. gentleman _ is quite ready. ff° is. not in a position where he can afford to treat th.i s matter lightly. It will he cleared .up and chared up l:v this Parliament. M". Broadfnot: And you will get another thrashing.