LESS WAR DEBT.

Star (Christchurch), Volume LXVI, Issue 20222, 5 February 1934, Page 7

LESS WAR DEBT.

Possibility of 90 Per Cent Being Wiped Off. MR GOODFELLOW'S VIEW. Predicting that in the near future the United States would agree to the wiping off of 90 per cent of the war debts, Mr William Goodfellow detailed the beneficial effects of such an action in the course of an address to-day on “ The case for reciprocal trade with Great Britain.” “ We will very likely see some very important changes in the next twelve months,” declared Mr Goodfellow. " The Americans have stabilised the dollar, for which our people have to be thankful, as they now know where they are. It appears that the Americans propose stabilisation at 40 per cent and England will probably agree on condition that America undertakes to wipe 90 per cent off war debts: I say 90 per cent because England has been paying 10 per cent. “ The Americans deferred the question of writing off 90 per cent when it was first raised, but they did accept token payments and England established the principle of the payment of 10 per cent. If 90 per cent of the debts is written off the European market will be opened to British manufacturers, after that market, owing to war debts, had gradually got into water-tight compartments. Europe requires the class of goods the United Kingdom produces and also needs food. ,If the market is opened Gcrmanv, for instance, will buy 90,000 tons more butter than to-day. A great deal of Continental butter would be diverted from the United Kingdom with substantial benefits to New Zealand. That is one of the ways the butter producers can get out of their troubles for the settlement of debts would put currencv on a sound basis and the European market would absorb large quantities of dairy produce. That is an additional argument why New Zealand should cling to Britain and foster and stimulate trade with that great country.”