MANY HANDICAPS

Gisborne Herald, Volume LXVI, Issue 20103, 24 November 1939, Page 8

MANY HANDICAPS

TRADE WITH N.Z

SOME OVERSEAS VIEWS

ORDERS NOT WANTED

PAYMENT DIFFICULTIES

CRITICISM OF DOMINION

(Special to thn Hurald.) AUCKLAND, this clay

The adverse opinions held overseas regarding New Zealand’s import control regulations and the control of funds by the Reserve Bank are indicated in letters received by members of the Bureau of Importers from firms abroad. In some cases orders- have been refused owing to the uncertainty of receiving payment, and in others there is an apparent disinclination to trade under existing conditions.

"A great deal of the cost of our materials lies in the raw fibre for which we have to pay cash against documents,” explains a letter from an Australian firm. “Wages, of course, arc all out of pocket, and there seems no reason, as far as we are concerned, why we should be called upon to finance the New Zealand Government, which is now suffering, as far as we can judge, from an orgy of extravagance. At present our factories are heavily engaged partly in the manufacture of materials required for the defence works of the Commonwealth Government. New Zealand orders would not interest us. therefore, to any extent at present, but when they are bound up With finance conditions such as you have indicated, we are not interested in the least.” “Unable to Collect” A Canadian business man writes as follows: "I am quite afraid that unless the New Zealand Government removes the restrictions which they have put into effect, great difficulty will be encountered in securing their requirements. It is to be expected that trade will flow in the most convenient and profitable channels. We want to continue our trade with New Zealand, not only for the present, but with a view to the future, and all things being equal, there is no reason why there should be any interference in trading, but you will appreciate. I am sure, that under the conditions existing at the present time, New Zealand trade is not looked on with much favour. I hear some rather unfavourable comments in various quarters, particularly from one large concern who have quite a considerable sum of money owing them, which money they require to meet their commitments, but which they are unable to collect from your country.” From New York comes the comment: "We have a very sympathetic understanding of your situation and personally deplore the existing conditions which are causing you so much worry and loss. We have been at our wits end here in trying to co-operate and .assist our many good friends in New Zealand like yourselves, but at times the situation seems hopeless.” “As regards the Export Credits Guarantee Department,” says a letter from England, ‘‘we prefer to avoid such transactions if we can help it, as it means we would only receive 75 per cent of the shipment and the remainder not earlier than three months thereafter, subject to everything being in order.”

“Too Expensive” “As you rightly assume, we are acquainted with the conditions for finance available from the Export Credit Guarantee Department, whose terms are such that they have little attraction to us. The facilities offered are not such as might be expected, judging from the title under which the department operates, and such facilities if used are to us too expensive.” writes another English firm. From Kobe, Japan, comes the explanation: “To send goods on deferred payment is absolutely impossible. The bank, like us. do not know when we or they could dispose of the money lying in New Zealand. Now if we tell you that we have at the present moment in Spain a frozen capital ol' over 40,000 yen converted into pesetas at an arbitrary hate, and which, to-day, is not worth 50 per cent of its shipping value, when we add that our efforts to get Spanish articles in exchange have been turned down by the Spanish Government, that this money bears no interest, that lastly everything has been tried through chambers of commerce and diplomatic channels to get the money out, money that is in banks, and .bearing no interest, you will understand that we cannot afford a second experience of this sort, however great our desire to do business with your honourable firm.”