IMPORT CONTROL

Opotiki News, Volume II, Issue 263, 24 November 1939, Page 2

IMPORT CONTROL

OVERSEAS OPINIONS EXTRACTS EROAI LETTERS 7 In a letter to the Opotiki News, Air. E. McLaren, secretary of. the, Bureau of Importers’ (Inc.), writes as Pillows : • During the lakt few months members of our organisations have received some very interesting communications from their overseas suppliers, commenting on the Import Control Regulations, and the control of funds by the Reserve Bank. When our members recently received notification from the. Reserve Bank of the allocations which had been made, available, they of course passed the informatioiU on to their overseas suppliers. Replies are now coming to hand, and we attach some extracts taken from various letters, which, if condensed slightly would, we feel, he of interest to your readers. The original letters have been seen byi representatives of the Bureau, who can vouch for the fact that they are from very high officials attached to important overseas organisations. From Australia:

“A great deal of the cost of our materials lies on the raw fibre for which we have to pay cash against documents. Wages ol course, arc all out of pocket, and there seems no reason as far as we are concerned, why wo should lie called upon to finance tho New Zealand Government, which is now suffering: as far as we can judge, Irma an orgy of extravagance. At

present our. factories are heavily engaged partly:- in the- manufacture of materials required lor the Defence Works of the Commonwealth Government. New Zealand orders would not interest, us, therefore, to any_ extent a,t present, hut when they are bound up with finance conditions such as you have indicated, wo are not interested i.n .the least.” From Canada^

“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. Wo want to continue our trade with'New Zealand, not only for tho present-, but with a. view to the luture, and a things being equal, there is no reason why there should be any interference in trading, hut ,v«u 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 ( iu 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, hut which they are unable to collect from vour. country. From New York:

“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 hi New Zealand like yourselves, but at _iukm the situation seems hopeless.” From England:

“As regards the Export Credits Guarantee Department, we prefer to avoid sucli transactions if we can help it, as it means we would only receive 7.5 per cent, of the shipment and the remainder not earlier than three months thereafter, subject to everything being in order.” “Your letter of the 24th. August is now to hand having been just over two months on the way to us. 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 t 0 us. The facilities offered are not such as might he expected, judging from the title under which the Department operates and such facilities if used are to us coo expensive.” From Kobe-.

“To semi goods on deferred paymentis absolutely impossible. The Bank, like* us. do not know when we or they could dispose of the money lying in New Zealand. The one way. opened is bartering, that is to say that if a firm was selling to any country and was ready to accept the shoes as exchange, and thenafter settle the payment with you. the firm who would buy in England! or elsewhere could remit to us the amount- due .by,“to us” we mean to a local bank, who would pay us only against- documents) and thus everyone

would be satisfied. Now ii wo toll joutliat we have at the present moment in Spain a frozen capital of ovGr \eiv 40.000 converted into pesetas at an arbitrary rate, and which, to-day. is not worth 50 per cent, oi its shipping value, when we add that our efforts to got 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, yon will •understand that we cannot afford a second experience of this sort, however great our desire to do business with your honourable firm.”