AMERICAN TRADE

Gisborne Herald, Volume LXVI, Issue 20101, 22 November 1939, Page 8

AMERICAN TRADE

WARTIME EFFECTS PROBLEMS FOR DOMINION SHORTAGE OF FUNDS While the “cash and carry” clause adopted by the United States toward belligerent countries in respect of exports apparently does not apply in its entirety to New Zealand, it is believed that the “cash” aspect does apply. Advice has been received in Auckland that New Zealand importers from the United States are now required to take title to goods destined for the Dominion before the goods leave any American port. “Apparently under proclamations issued on the repeal of the Neutrality Act it will be necessary for New Zealand buyers to secure title to goods purchased in the United States before the goods are shipped,” an authority said in Auckland. “It is also apparently necessary to file a certificate to tiiis effect with a collector of customs at an American port. “Through shortage of overseas funds, New Zealand seems to be in temporary difficulties in this respect,” lie added. It was suggested that Australia would be in a better position to continue trading with the United States. Details of the new American law on the subject of trading with belligerents have been received in New Zealand. One clause states that when the President of the United States lias issued a proclamation naming belligerent State:;, it shall be unlawful to export or transport to the warring States any articles or materials until all right and title in them has been transferred to a foreign Government, business or individual. The shipper is required to file with the collector at the port of export a declaration under oath that he has complied with these requirements. The provisions mentioned do not apply to the transport in American vessels, other than aircraft, of mails, passengers and certain goods and materials, to ports in certain areas. Specifically mentioned in the exempted areas are ports on the Pacific or Indian Oceans, including tlie China Sea, the Tasman Sea, the Bay of Bengal and the Arabian Sea, and any other dependent waters of these oceans. Exceptions do not apply to ports in combat areas.