IMPORT CONTROLS IMPOSED

Press, Volume LXXXV, Issue 25739, 26 February 1949, Page 7

IMPORT CONTROLS IMPOSED

S. African Decision “RESTRICTIONS TO BE TEMPORARY” (N.Z. Press Association—Copyright) CAPE TOWN, February 24. The South African Minister of Finance (Mr N. C. Havenga) announced to-day in the House of Assembly that the Union would impose physical control on all imports. It would be applied to both sterling and non-sterling areas. Mr Havenga said that permit* would be required for the importation of goods not on the prohibited list, and from the date of the inception of such a permit system, no goods not covered by permits would be allowed entry into the Union from the sterling area. The existing exchange quota scheme for imports from tne non-sterling areas would continue until June 30, 1949. After that date, these goods would be allowed entry only on an import permit, or the production of evidence that payment for the goods was made under the available exchange quota. Goods ordered from the sterling areas after to-day would not receive import permits unless the Department of Commerce considered them reasonable. The Minister emphasised that the restrictions on imports were of a temporary character and designed to preserve the Union’s exchange resources, and not to give additional protection to local industries. Mr Havenga said that exchange control on non-sterling imports had increased imports from the sterling area, and the depletion in the Union’s sterling asests had been such in recent weeks that it could not be allowed to continue unchecked. Dealing with South Africa’s recent sale of semi-processed gold in London, Mr Havenga said: “I admit frankly that the International Monetary Fund does not like international transactions in gold at premium prices. The Union has taken effective action in the past to prevent such actions, and it has complete control of newly-mined gold. Its prohibition has been complete. “The scrupulous way in which the chief gold producers have honoured their obligation in this respect has no effect on the immense volume of international trading in gold at premium prices. This goes on. and a great deal of it goes on in territories of countries which, like ourselves, are members of the International Monetary Fund. South Africa will continue her obligations to the fund in full.”