PAYING FOR IMPORTS

Wairarapa Times-Age, 3 May 1939, Page 5

PAYING FOR IMPORTS

AN AUCKLAND PROJECT KEEPING FUNDS IN DOMINION. GOVERNMENT APPROVAL UNLIKELY. . (By Telegraph—Press Association.) AUCKLAND, May 2. Inquiries are being made by many Auckland importers into the possibility of obtaining importation of goods, otherwise banned or restricted, by an arrangement whereby overseas suppliers permit the purchase money to remain in the Dominion for at least 12 months. Judged from inquiries for information to the Customs Department, where special forms of application are available, the movement is a wide one, but apparently the only instance where an actual arrangement has, been made and approved by the Government relates to whisky and other spirits. Other whisky .suppliers, outside the group that arranged the original agreement, have since entered the scheme. It is estimated that not less than 100 importers are now endeavouring tc negotiate with overseas interests to permit funds to accumulate in the Dominion. The position, however, is indefinite, for, even if arrangements are made with overseas suppliers, there is no guarantee that Government consent will be obtained, nor is it known to what classes of goods the scheme will apply. It is obvious to importer’s that the Government is not likely to sanction the arrangement that will mean such a huge accumulation of funds that when they are withdrawn later on from the Dominion further embarrassment might be created. An indication of a lack of confidence in the financial position in a year or so’s time is afforded by an instance where a large overseas manufacturing concern, whose exports to the Dominion had been cut 50 per cent, volunteered to leave the proceeds of its sales in the Dominion if its New Zealand representatives would recommend this course. The Dominion agents replied that they were not prepared to undertake the responsibility of recommending the suggested course, in view of the uncertainty of the future of finance and exchange. It is reported that overseas" insurance interests have inquired into the likelihood of business in insuring against possibilities of adverse American exchange when moneys are withdrawn from .the Dominion. One impression current among importers. is that there are Pound to be conditions attached to the withdrawal of moneys later on, under any arrangement. There is a belief that investment of some portion in Government loan stock will be one of the conditions imposed ’in particular circumstances.