AUSTRALIAN EXPORTS

Gisborne Herald, Volume LXVI, Issue 20097, 17 November 1939, Page 5

AUSTRALIAN EXPORTS

CASH REQUIRED FROM N.Z. GOVERNMENT ACTION Regardless of the willingness of some Australian firms to do business with New Zealand firms at present, export licenses were not being issued by the Australian Government unless there was proof that the cash was forthcoming, said Mr. G. W. A. Agar, director and general manager of Allas Products, Limited. Wellington. who has just returned from a business trip to Sydney.

"My experience in purchasing machinery for export from Australia to New Zealand indicates that oven

whore Australian suppliers are prepared to ship goods under the deferred payment terms stipulated bv (he Reserve Hank of New Zealand. the Commonwealth Government will not issue the required license unless proof that the funds are immediately available is forthcoming." he said.

"Fortunately, in my case. I was able lo arrange for the establishment ol a letter of credit in Australia th.ai satisfied the authorities. Otherwise I would have been unable to obtain mv company's requirements even though the Australian (inn concerned was prepared to forward the machinery and accept payment on the terms laid down by the Reserve Bank 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 it has adopted may the primarily aimed at conserving Australian capital."