AMERICAN LOAN TO BRITAIN

Wanganui Chronicle, Volume 90, Issue 167, 22 July 1946, Page 5

AMERICAN LOAN TO BRITAIN

Mr. Nash said the American loan to Britain would help New Zealand to the extent that it made dollars available to buy goods we could not buy well in other places, hut that did not mean there would he unlimited dol. lars.

“Britain will still have a tough run to buy all the raw materials she requires to manufacture goods and to buy goods she cannot do without,” he said. However, Britain would be in a much more advantageous position than if the loan had not been granted, and it would also help the British Dominions. Britain had never refused us dollars for anything we wanted, but the Government’s policy always had been not to make dollars available to any per-

son in New Zealand for a purpose tor which the British Government declined dollars to its own people. Discussing the convertability Of sterling, Mr. Nash said the existing sterling balances were safeguarded under the terms of the loan, but the countries obtaining sterling in future would have a right to convert it into any currency. There would be no argument between New Zealand and Britain about that, but other countries building up sterling balances might be more pressing upon Britain. After 1951 it was hoped that the sterling and dollar pools would disappear, and that either currency would be available for the purchase of goods in any country.