IMPORTS & EXCHANGE

Wairarapa Times-Age, 27 May 1939, Page 4

IMPORTS & EXCHANGE

DEFERRED PAYMENT LICENCES CRITICISM OF GOVERNMENT POLICY. BRITISH BOARD OF TRADE INQUIRY. (By Telegraph—Press Association./ AUCKLAND, May 26. I Allegations that deferred payment arrangements, except that affecting whisky, were subject to no Government guarantee as to when the money could be remitted overseas, and that the Board of Trade in Britain was investigating the situation were made al a meeting held by the Bureau of Importers. In the course of the meeting an importer handed in the following cablegram. just received from a London exporting house: — “Board of Trade thoroughly investigating; advising against decisions pending confirmation and legal guarantees. They .state other important trades not agreeing.” Mr Gain or Jackson, in reply to questions, said exporters overseas were being asked to accept delayed payment and, in return, were asking for guarantees. In regard to whisky, it was understood the Government had guaranteed payment within a definite period, but for other goods it declined to name a term. Exporters were not satisfied to accept the Prime Minister’s verbal undertakings, and, apparently, the British Board of Trade, which was a Government department,, took the same view. The importer who handed in the cablegram remarked that there was also no guarantee respecting the rate of exchange at which funds would be transferred. “Agreements of this kind are wrong, practically and morally,” remarked Mr Jackson. “They are mortgaging the future stability and prosperity of this country. Mr Nash condemned the transfer overseas of suspense accounts created when the exchange rate was raised. Bhis system is simply creating new ones. It is morally wrong, though, in obligation to my employers, 1 have availed myself of it.” (Laughter.) A voice “We’re all on time payment.” rn reply to a further question, Mr Jackson said he had got deferred-pay-ment licences in three or four cases. They had been granted in Auckland without hesitation up to the full value of similar goods imported in the same period last year. Asked whether any period had been named, Mr Jackson said he had not been able to get a guarantee _ that payment would be allowed within 12 months, or a definite period. He understood that the term of 12 months was a special concession, applying only to whisky. Two of his permits were Canadian and two for American goods. An importer: “What if the exchange rate is altered in regard to Canada?” Mr Jackson: “In all cases I have told my principals that there is some danger of inflation, and that I do not want goods on consignment. Thus the funds will have to be placed on de-, posit or in some investment. Apparently, they consider the’ retention of the New Zealand market and goodwill are worth more than what they may lose by inflation.” In the course of the discussion, Mr Jackson mentioned that four days after the Supreme Court judgment he received a permit to import £-15 worth of tinware, N.E.1., from Australia, but he had not used it, as he did not have the exchange with which to make payment. An importer: “I suggest Mr Jackson apply for an export licence to send one kerosene pump to Mr Nash, so that he can put it in the British Museum.” (Laughter.) FORBEARANCE URGED STATEMENT BY BANKS CHAIRMAN. POSITION COMPLICATED. WELLINGTON, This Day. The holding of a permit to remit, or of an import licence, does not, in itself, guarantee that the sterling funds will be available. This has been shown by the experience of a number of importers, and it was emphasised yesterday in a statement by the chairman of the Associated Banks, Mr R. C. Addison. “The position undoubtedly is compli-. cated ana upsetting to certain parties,”

said Mr Addison, “but in the best interests of all I would urge forbearance all round. “The trading banks are maintaining very close touch with both the Reserve Bank and the Government, and by their co-operation with them are hopeful that a satisfactory solution will be found. The. trading banks are doing everything possible both in the interests of their customers and of New Zealand as a whole. The holding of ‘permit to remit’ or of an ‘import licence’ does not in itself guarantee that the relative sterling funds will be available immediately."