TELKQRAM,
tfrom the United Kingdom High Commissioner,
Dated 21st. April 1939Q    Received 12„23 p,m. 21st. April.
IMMBDIAgBft
No0 96 Secret*
My telegram of the 18th.- April No, 92 Secret,
paragraph 2.      1, Minister for Industry and Commerce who is
Chairman of Committee 2 f on supply problems ) i3 pressing
strongly for the inclusion of the following paragraph in the
report of the Committee for submission to the full Conference.
Begins*     " Mew Zealand is totally lacking in supplies of
certain commodities for use in war P       These essential stocks>
details of which are a matter for further investigation, should
be built up in the near future «     The Committee recognise that the
obtaining of these necessary supplies froa overseas will be
dependent on the sterling fundi being available.. :I Ends,
2-   United Kingdom representatives on the Committee requested
that the last sentence of the above paragraph should read
,! The Committee takes note of the statement of the New Zealand
representatives that the obtaining etc* "   or alternatively
s
that some such word/as " the provision of the necessary finance"
should be substituted for the words " sterling fund being
available "-
3   Hew Zealand representatives have refused to accept
either alternative and are pressing hard for the adoption of the
•wording quoted in paragraph 1 on the grounds that it is a mere
statement of fact*
4, In piivate talks with the Chairman of Committee
and also with the Minister of finance and the Deputy Prime
Minister
2,
Minister I have up to now resisted this on/grounds that questions
of finance are outside the scope of the Conference«
( The following section, received in cypher and
since paraphrased begins
5e It appears to roe that the association of the
delegation from the United Kingdom in the proposed reference
to dependence on sterling funds being available might be held
to imply on the part of the United Kingdom some responsibility
for the provision of sterling funds if they wish to see the
recommendations with which they -are associated carried out by
Sew Zealand • Furthermore^ great pressure from Ministers in
favour of their wording appearing, indicates that they attach to
it political importance and that it Is not a matter merely of
draftings .
End of cyphering )
6*   He are continuing our efforts to find an acceptable
the
compromise, but whatever/result,   matters will be almost certainly
Ministers
raised bj *a        full Conference on ffonday
morning*
We should therefore be glad to know by Sunday evening
Few '/.eeO-and time } whether we should, maintain our attitude or
whether the wording proposed by New Zealand representatives may
be accepted.^
ijo) ^Vt,««a7©-3fl 15,000 4/58 T^B«/^J