DOMINION WAR DEBT

Wanganui Chronicle, Volume 75, Issue 178, 30 July 1932, Page 8

DOMINION WAR DEBT

OBLIGATIONS TO BRITAIN WELLINGTON, July 29. Questioned regarding the cable from Ottawa yesterday stating that Mr. Coates considered Britain’s successful war loan conversion might have an im portant bearing on New Zealand’s ex ternal interest charges, the Primv Minister (the Right Hon. G. W Forbes) pointed out that only £11,100,000 was included in the tota Dominion war debt to Great Britain., amounting tG over £27,000,000. Thu sum of £11,100,000 was includea in the Dominion’s original funded war debt of £27,532,000, but nothing apart fro a this was affected by the present British conversion. Repayments on account of New Zealand’s funded war debt fcineo the funding in 1932 amounted to £3,431,000, and of this the amount repaid in respect of the £ll, 100,000 was £890,000, leaving £10,210,000 outstanding. Interest on ths funded debt amounted to 5 per cent., and a reduction to 34 per cent, would meant a saving to New Zealand ol £153,000 for the first year, the saving being reduced as the principal was ra duced by capital repayments. It had been intended the British conversion had been completed, said Mr. Forbes, to discuss the question of interest on New Zealand’s funded war debt with the British authorities. Now that the success of the conversion scheme was practically assured, both Mr. Coates and Mr. Stewart would no doubt take the question up with the members of the British. Government at Ottawa, and especially with the Chancellor of the Exchequer, Mr. Neville Chamberlain, whose presence in Canada would be a great advantage. A Visit to London? The Prime Minister intimated that if it proved necessary for the Minister of Finance (the Hon. W. Downia Stewart) and the Secretary of the Treasury (Mr. A. D. Park) to go to London at the conclusion of the Ottawa Conference, in connection with financial matters, the Government might consider postponing tho coming session for a short time, (tomin g freak from the Ottawa Conference, Mr. Stewart’s services in New Zealand during next session would be indispensable, for he wag concerning himself mainly with currency and allien questions at Ottawa, and if legislation were required next session to give effect to any decision reached at the Imperial Conference, ho would be required to handle Bills brought down. Mr. Park also would be needed here