DOUBTFUL POINTS

Gisborne Herald, Volume LXVI, Issue 20032, 2 September 1939, Page 14

DOUBTFUL POINTS

CREDITS FOR EXPORTS MR, NASH EXPLAINS GUARANTEE OF STERLING (Per Pxeas Association.) AUCKLAND, this day. A number of doubtful points regarding the £4,000,000 of commercial export credits lately made available to New Zealand in 'Britain were cleared l uo bv the Minister of Finance, the Hon. W. Nash, on his return from London.

In particular, Mr. Nash made it known that the simplified procedure by which British exporters might make use of credits 'had not been completed, but he expected it would be complete within a few days after he reached Wellington. In the course of his speech at the businesmen’s luncheon, Mr. Nash said that the purpose of the credits from the British point of View was to help the United Kingdom exporter first and the New Zealand importer second. These two- desires fitted together, and the importer was guaranteed that if sterling was not available 75 per cent of the sum required to pav the exporter would be made available. The credit thus granted depended on the required sum being paid in New Zealand in New Zealand currency. It should be understood that the guarantee was only that the transfer would be made, not that money would be found.

The total guaranteed, £4,000,000 sterling, said Mr. Nash, covered 75 per cent of the transactions, amounting to £5,000,000 sterling, which meant that credits totalling approximately £6,600,000 could be obtained up to June 30, 1940.