CASH WANTED

Evening Post, Volume CXXVIII, Issue 116, 13 November 1939, Page 6

CASH WANTED

GOODS FOR N.Z.

AUSTRALIAN ATTITUDE

The belief that the Australian Commonwealth Government is using the recently-instituted emergency export regulations to prevent the export of goods to New Zealand unless the cash to pay for them is immediately available was expressed by Mr. G. W. A. Agar, director and general manager of Atlas Products, Ltd., Wellington, who returned today from a business trip to Sydney. ,

"My experience in purchasing machinery for export from Australia to New Zealand indicates that even where Australian suppliers are prepared to ship goods under the deferred payment terms stipulated by the Reserve Bank of New Zealand, the Commonwealth Government will not issue the required licence unless proof that the funds are immediately available is forthcoming," he said; "Fortunately in my case I was able to arrange for the establishment of a letter of credit in Australia that satisfied the export authorities. Otherwise I would have been unable to obtain my company's requirements even though the Australian firm concerned was prepared to forward the machinery and accept payment on the terms laid down by the Reserve Bank. I may also mention that the Australian banks refused to discount Reserve Bank letters of credit as bills. "'

"The obvious inference is that what satisfies the Reserve Bank in New Zealand does not satisfy the Commonwealth Government, though, of course, the attitude they have adopted may be primarily aimed at conserving Australian capital." He had been informed in Sydney that regardless of the willingness of some Australian firms to do business under existing conditions export licences were not being issued unless there was proof that the cash was forthcoming.

7 Tr. Agar's company are manufacturers of articles made from cement, and he said that his trip to Australia had been for the purpose of witnessing trials of new machinery that he now proposed to install in New Zealand. He said that the new plant would permit considerable advance in manufacturing efficiency. :