IMPORT OF SPIRITS

Dominion, Volume 33, Issue 109, 1 February 1940, Page 11

IMPORT OF SPIRITS

Agreement Reached With Government METHOD OF PAYMENT (By Telegraph—Press Association.) DUNEDIN, January 31. An arrangement has been entered into between the New Zealand Government, the D.C.L. whisky combine, and the National Council of the Licensed Trade of New Zealand, acting presumably on behalf of and with the consent of the wholesale wine and spirit merchants of New Zealand, by which payment is to be made for the importation of spirits already brought or being brought to New Zealand and also for the period, January-June, 19-10. Under, the agreement arrived at be" tween the parties the Government is prepared to authorize the issue of licences for imports between January 1, and June 30, 1940, up to the value of imports during the corresponding period of 1939 on the following conditions :—

That half of the amount for remittance in respect of the second period (July-December, 1939) and half the amount for remittance overseas in respect of the third period (JanuaryJune, 1940) will bo invested in New Zealand Government: stock to mature ou March 15, 1945, bearing interest at 4 per cent, per annum, both principal and interest being payable in New Zealand currency-in New Zealand without further commitment of any sort.

That the remaining half of the funds that in the ordinary course would be remitted in payment for imports of both periods will be used to purchase from the New Zealand Treasury a short term investment in New Zealand Government stock maturing on March 1, 1941, on the understanding that for each £lOO paid to the public account stock to' the nominal amount of £BO will -be issued and that this stock will bear interest payable half-yearly in New Zealand and at 2? per cent, per annum in New Zealand currency, the principal to be repayable at maturity in sterling in London without deduction for exchange. This means that from each £lOO paid to the Treasury there will be deducted the sum of £2O, being the difference in value between the New Zealand pound and the United Kingdom pound, that the balance of the £BO will be paid in sterling in March, 1941, and that investment for the £BO in New Zealand, at 2$ per cent, will be provided in themeantime.