£9,000,000 CREDIT FOR DOMINION

Press, Volume LXXV, Issue 22769, 22 July 1939, Page 16

£9,000,000 CREDIT FOR DOMINION

Some modification of the present import restrictions with the object of giving the most favourable treatment possible to United Kingdom goods was • foreshadowed In a further statement 'released by the Prime Minister on the results-'*?* Mr Nash’s discussions with members ‘of the British?-Government. Mr Savage -sgid that while the British Ministers appreciated New Zealand’s present position, they apprehensive as to the permanent effect on the United Kingdom’s export trade of the policy designed to meet the temporary difficulty in the Dominion. “The United Kingdom Ministers realise that in the circumstances that existed here last December and still - exist.” Jdr : Savage, s^id... “some effective measure for reducing the total •imports into New Zealand below their recent'abnormally high level was, and is. inevitable, and they do not raise objections in principle to the method which the New Zealand Government has adopted, although they are conscious of the difficulties It has caused in certain cases. Mr Nash has undertaken that the Government will examine and do its best to meet representations by United Kingdom industries with regard to such cases.

NON-GOVERNMENT IMPORTS

‘‘NEWS OP LOAN IS WELCOME” STATEMENT BY MR L. L. JONES "The business community will welcome the news that the Hon. W. Nash has succeeded in obtaining £4,000,000 for non-Government imports, but unfortunately the amount is small when compared with the requirements,” said Mr L. L. Jones, chairman of the im§ort section of the Canterbury Chanter of Commerce, last night, “We had reached a position which was growing more difficult every day and making it almost impossible to carry on ordinary trading. It is difficult. at short notice, to give a comprehensive statement covering the experience of all business houses, but it is certain that, because of New Zealand’s financial position, many overseas exporting firms are demanding letters of credit in place of sight drafts. It appears impossible to establish these, and the only way has been to apply for the amount required to one’s banker, and the request is submitted to Wellington for consideration. ■When granted, the banks require immediate payment and the amount has to be cabled. “The delays in obtaining permits to remit money overseas are seriously affecting the supply of essentials, even , for some manufacturing purposes; as well as creating an almost impossible position in connexion with booking orders to take advantrge of the markets. and shipping space. “This credit should give some immediate relief to the present position, and is therefore most welcome. Importers would appreciate an announcement as to whether this will relieve the .position relating to purchases of supplies from Australia.” DOMINIONS WARNED EFFECT ON BRITAIN OP CURTAILING TRADE V LONDON, Jliiy -20, The secretary to the Department of Overseas Trade (Mr R. S. Hudson), speaking at the Empire Chamber of Commerce dinner, warned the Dominions that any curtailment in United KingdorrLexports on their part would reduce Britain's capacity and willingness to go on buying and impair England’s economic strength at a time when it ''was vital that it should be maintained in order to defend the Empire. CONSISTENCY WITH OTTAWA LONDON, July 20. It is understood that the Dominions Office does not agree that New Zeajgttda policy la consistent with the

Outcome of Mr Nash’s Visit To London £5,000,000 FOR PURCHASES BY GOVERNMENT Modification Foreshadowed in Import Restrictions [From Our Parliamentary Reporter.l WELLINGTON, July 21. “The United Kingdom Government has agreed, that the facilities of the Export Credits Guarantee Department will be made available to assist in the financing of v imports of United Kingdom origin, and that credits up to £5,000,000 sterling will be made available, on approved conditions, for purchases by the New Zealand Government,” said the Prime Minister (the Rt. Hon. M. J. Savage) to-day, referring to the outcome of the visit to London of the Minister for Finance (the Hon. W. Nash). “Short-term export credits facilities up to £4,000,000 sterling will also be made available under suitable conditions to cover approved exports from the United Kingdom to importers in New Zealand other than the Government. “This means that importers bolding licences can be assured that, provided they pay the 1 equivalent New Zealand currency for imports at the date due, the obligation to pay the United Kingdom exporter in sterling will be accepted by the New Zealand Government as sterling funds are available. * ‘ “The United Kingdom Government’s Export Credits Guarantee Department has made arrangements under which United Kingdom exporters will be protected by means of a guarantee which will ensure their receiving sterling at the expiry of a reasonable period from the date of payment in New Zealand.”

PRESS COMMENT IN LONDON

‘‘ASSURANCES NOT NEW” SUGGESTED CURTAILMENT OF EXPENDITURE (independent cable service.) (Received July 21, 11.1$ p.m.) LONDON, July 21. “The Times," in a leading article, points out that the official memorandum takes notice of the reassurances given by Mr Nash about the application of the import licensing system, amounting to a declaration that British trade to New Zealand will continue to enjoy the advantages stipulated at Ottawa, though Ottawa is not mentioned. “The assurances are not new, having been given originally by Mr Savage and reiterated by Mr Nash. Their incorporation in the joint memorandum may be regarded as an attempt to save the spirit of the Ottawa Agreement, while not protesting against its violation in the letter.” The “Daily Express” says New Zealand should have been given' more. It welcomes the first instalment of a policy of lending to British countries, instead of “squandering funds abroad.” The city editor of “The Times” states: “The agreement implies that New Zealand will take steps to curtail her oversea expenditure, and thus relieve pressure on the available exchange from the long term viewpoint.” The city editor of the “Daily Mail” states: “Mr Nash seemed tired and by no means confident that the credits would see New Zealand out of the wood, but credits will avert the risk of a commercial default." , The city editor of the “News Chronicle" states: “Mr Nash’s acceptance must premise the genuine intention of New Zealand to cut its coat according to its cloth.” The city editor of the “Daily Herald” states: “The conversion is likely to be a short term public issue repayable in 1941-45, with obligatory interim repayments.” The “Daily Herald” also considers that the agreement is not unreason-, able. British manufacturers should not complain, as the credits will be spent in Britain. New Zealand stocks are certain to rise, as the Dominion fully honours its obligations to investors. ASSOCIATED CHAMBERS OF COMMERCE PROPOSALS FOR EASING RESTRICTIONS (PRESS ASSOCIATION TELEGRAM.) WELLINGTON, . July 21. The executive committee of the Associated Chambers of Commerce of New Zealand met at Wellington this afternoon, and to-night the following statement was issued on its behalf by the secretary (Mr A. O. Heany):— : “The Associated Chambers of Commerce have been considering the possibility of suggesting a method of easing and simplifying the restrictions in respect of remittance of sterling and the admission of imports under the Government’s control scheme, but in view of the statement issued by the Prime Minister and the Reserve Bank, it was thought that the proposals should not be advanced at present, though it is still willing, as before, to assist the Government in simplifying the procedure. “It is nbted with satisfaction that under the Reserve Bank announcement there will be the certainty that sterling will be available on approved dates for approved imports so far as the sterling funds permit.”