WAIKOUAITI WRECK

Gisborne Herald, Volume LXVI, Issue 20110, 2 December 1939, Page 7

WAIKOUAITI WRECK

IMPORTERS' LOST CARGO FUNDS FOR REPLACEMENT ALLOCATION QUESTION (Special to tiifi Herald.) WELLINGTON, this day. The wreck of the Union Steam Ship Company’s, freighter, Waikouaiti, on Dog Island, in Fovcaux Strait, raises an important point about which commercial and banking circles are found to be greatly interested. When inquiries were made whether the Reserve Bank is likely to place fresh funds at the disposal of importers to replace their lost goods, the Reserve Bank officials were unable to state more than that applications for funds for replacement would cause the position to be carefully considered.

From other sources, it was found Ufai the importers concerned in the loss through this wreck would find their import licenses in respect of these goods still operative as the gobds had not passed the New Zealand customs. However, control over sterling exchange introduces another factor as the possession of an import permit does not necessarily guarantee the right to import, it being necessary to arrange i'or the allocation of sterling funds. If the insurance claims in respect to any port of this cargo are payable outside New Zealand, it would bo a great advantage to the importer, who could then use ills unexpired import, permit and finance through tlie insurance payment. With all these factors to consider, it is obviously impossible to secure from the Reserve Bank any general ruling covering the replacement ot lost cargo.