OVERSEAS GOODS

Evening Post, Volume CXXVIII, Issue 117, 14 November 1939, Page 10

OVERSEAS GOODS

SHUT-DOWN FORESEEN

EFFECT OF RESTRICTIONS

A LETTER FROM HOME

The adverse effect on' trade between New Zealand and the United Kingdom as a result of the present restrictions in this country regarding payment is commented upon in a statement issued by the United Kingdom Manufacturers* and New Zealand Representatives AsI sociation (Inc.). ■ "While many firms in -\rew Zealand , are closing down beca~.se of the em- ' bargo placed on certain c. asses cf I United Kingdom imports imder the operation of the import restrictions, on ' the other side of the world we find 1 manufacturers unable to send out their goods although they may not be on the prohibited list, because of- the' i difficulty of obtaining' immediate pay- : mentf which gives an indication as. to l why ships are now arriving in New i Zealand with dmost empty holds," I says the statement. j ' "The individual importer can supply I the- finance, but the currency restric- ; tion prevents remittance immediately. It is quite understandable that the' 1 overseas manufacturer is not prepared to, and should not be expected to, ship i goods on the time payment basis which, is now operating in this country. "A letter from an overseas manufacturer shows the viewpoint in this case .of one of the largest manufacturers ia , the United Kingdom of a particular product essential to New Zealand industry- and evidences the attitude of overseas manufacturers to the present Import and currency restrictions.- - "The shortage of manufactured -goods - and raw materials in New Zealand necessitates early and substantial modification of the restrictions. - -This shorts age has been caused on the one- hand by the severe restrictions into T New . Zealand and on the .other by- the natural reluctance of dverseas firms to send goods on a 'this year, next year, sometime' payment basis. It will ba noted, -however, that the' letter mdi« tates a desire to help as far as possible. "This shortage of 'manufactured _ goods and raw materials is already causing in wholesale, retail, and manufacturing staffs. It is . emphasised that this is not an isolated ca^ and any shortage of - supplies: has not in most instances> been, caused by war requirement's but by. the-operation of New ' Zealand's ■ import 'restrictions and currency regulations.'-'' il.l •.->; ./ "PERFECTLY IMFOSSiBt^." "The letters referred to-is,/as"*fol- :- lows: — , - ■ •,..-=-• 5 The position in regard to export to New Zealand is bedbming^per-* . fectly impossible-' and1 tlje. change ia ' the exporting position owing.- to the '■' war has further -complicated „ < the position "which we can state clearly ■ and promptly. Undeuo war. v conditions the problems of manufactureand supply for ar^d .of ob? ■ taining the necessary licences.,, at your end, will be so .great, that^.in effect no manufacturer /is going .to •be bothered to go through all ifyis performance for "goods intended .fOr; '■ New Zealand unless he knows without - a shadow of doubt -by the .deposition of cash in London that he will b.e paid in full and promptly.. .This -comment of course is.made,..ifl*.general terms, and we shall naturally . yery carefully consider any reasonable, proposition pufup:tb'us for the maintenance-'of-rbur connection^and, the satisfaction of our agents ; and customers.. However, it will vbe found- unless New.Zealand is pre- ' pared to control her internal af-, fairs so as to make ends meet- she will- face a virtual shutdown^ : of ".supplies from■ overseas. Why should . . -•we be asked to foot. the. bill for ■ conditions which are. not caused ia any shape or .form by us?; ,\ -.-, "Other letters .received by the;'association'emphasise very strongly' that1 British industry ~is determined to maintain its', export trade, and' that, despite the,war and the heavy burden; of war requirements, they are able ' • to fulfil orders. In fact, it is emphasised that it is essential that the Brit- . ish export trade shoujd be kept going if Britain is to ba able to finance the war. Even -in ,the heavy industries they are still able to fulfil1 orders for export" trade." ' - : -■■ %