LEND-LEASE ACT

Evening Post, Volume CXXXII, Issue 82, 3 October 1941, Page 6

LEND-LEASE ACT

MINISTER EXPLAINS

POINTS IN POLICY

The extent of interference with normal trading practices between New Zealand and the United States of America was conditioned solely by the war circumstances which were compelling the change, said the Minister of Supply (Mr. Sullivan) in a statement made to members of the Wellington Chamber of Commerce last night on the Lease and Lend Act as it affects New Zealand. The Government's intention, Mr. Sul- : livan added, was to invite to the fullest extent" co-operation from those engaged in commercial trading, but any steps taken would naturally have to be consistent with economy and must be within the solemn commitments made by the British Government to the U.S.A. Government and endorsed by the New Zealand Government. "Through the Ministry of Supply, the Department of Industries and Commerce and the Supply Mission, established in Washington, we are rendering full service to those importers engaged in procuring goods outside a direct Government purchase," said Mr. Sullivan; "We shall continue to do this to the full. It only remains for imi porters to co-operate with the Ministry of Supply. We are determined that consideration of all the problems associated with procurement shall be fully discussed between officers of the Department and representative traders, i and must always be decided so as to ensure the maximum war effort. More i than this it is not possible for me to 1 say." ONLY ESSENTIAL REQUIREMENTS. The policy of the Government, said Mr. Sullivan, could be summarised ' under three heads: — I "1. We will procure under lend-lease I, only essential requirements. I "2; Import licences for any source of supply are not being granted for any other than bare requirements necessary to war economy. "3. Normal trade will be maintained with all Empire countries to the fullest extent that supplies are available. "The New Zealand Government, in common with the United Kingdom Government, has guaranteed that the distribution of all lend-lease goods will be rigidly controlled by the Government. The method of distribution will, wherever commercial distribution is practicable, be such that there will be a fair return for services rendered and arrangements made will exclude opportunities for speculation or profit by private agents handling lend-lease goods as agents for the New Zealand Government. In so far as arrangements have been- completed for. handling lend-lease goods through commercial channels, the basis of the transaction has been arrived at after consultation and with the full agreement of the commercial principals." GOODS BELONG TO GOVERNMENT. An important factor in the lendlease procedure, explained Mr. Sullivan, was that the goods came to the New Zealand Government through the British Government and they must be retained as the property of the Government unless prior consent of the President of the United States had been given for their transfer. . ; "In the case of consumer goods," said the Minister, "it is anticipated that the power of transfer will be given to become effective at the point where the goods pass to the consumer or the manufacturer,' subject to proper safeguards against exploitation. In the meantime the Government wiil retain title-to the goods and they will be stored, where storing is necessary, on a consignment basis by the stockist, or distributor. It is obvious that under this system where the Government carries all the risk, to the point of consumption, normal recompense to the agent will require some adjustment." PRIORITY SYSTEM. Dealing with the importation of goods from America through ordinary channels, Mr. Sullivan said United States export control was an administrative system to secure a strict control over the destination of certain listed goods and the device was closely affiliated with the control of materials and equipment included in the defence programme of the United States. "The regulations controlling exports from the U.S.A. provide for three types of licences, which depend not only upon the commodity listed as controlled but also upon the proposed destination of that commodity. "The priority system is designed principally to aid the United States defence programme. It can be used to aid civilian production, but it is not the policy of the Adminstration to use priority action indiscriminately. "The effect of this system on New Zealand contracts for supply or manufacture in U.S.A. may now be readily seen, and arising from the necessity for direct Government representation from New Zealand in the United States it is the duty of the Ministry of Supply to afford our Washington office the full story behind each order so that the Washington office may obtain the best possible ■ priority ratings." i