EXACTING DEMANDS

Wairarapa Times-Age, 20 June 1939, Page 5

EXACTING DEMANDS

MADE BY MR NASH ACCORDING TO LONDON PAPER. TALK OF TEN MILLIONS FOR INDUSTRIES. By Telegraph—Press Association— Copyright. LONDON, June 19. The “News Chronicle's" City editor considers that the criticism of New Zealand’s financial and economic policy has a good deal of justification. The arbitrary curtailment of imports is liable to inflict hardship upon British exporters, who cultivated the New Zealand market for years. Further depreciation of the exchange rate might be a better way of' doing things.

“Mr Nash’s financial demands are exacting,” the article continues. “A refunding loan is an imperative necessity, and it is equally obvious that New Zealand must have a £6,000,000 defence loan, as Britain cannot refuse New Zealand what she gives to Turkey and Poland, but Mr Nash’s demands for £10,000,000 for secondary industries and other purposes must be subject to a compromise. “While Britain has not the right to complain of the establishment of such industries, even if they are uneconomic, she can at least state the terms on which she is prepared to lend. It would be possible to raise money out of the ordinary investor, and the British Government has too many financial responsibilities to guarantee it. “Curtailment, or at least postponement, of New Zealand’s plans is inevitable. It would be a tragedy if New Zealand wrecked her credit, but there are limits to the extent to which the London market and the British Government can go to avert that catastrophe.”