IMPORT CONTROL

Evening Star, Issue 23560, 26 April 1940, Page 9

IMPORT CONTROL

NO REVISION OF POLICY LICENSES ISSUED FOR ALL EXPORT MONEY IN SIGHT WAR FINANCE PROVIDED OVERSEAS (Per United Press Association.] WELLINGTON, April 25. A revision of the Government’s import control policy in view of the different conditions now operating because of the war was advocated by a deputation representing importing interests which waited on the Minister of Customs, Mr Nash, yesterday. It was stated that import control was introduced in New Zealand nine months before the war started for reasons entirely apart from the war situation and that what might then have appeared to tho Government as being in the best interests of the country now assumed an entirely different complexion under the shadow of war. . Reference was made by members of the deputation to some of the difficulties with which importers were faced and which were hampering tho trade and commerce of the Dominion. It was stated that there had been too much rigidity in taking the importations of one year as the basis for all future importations, with the result that in manv commodities there was a dire shortage, while in others the market was overstocked. IMPORTANCE OF STERLING. “ The conservation of sterling is more important to the United Kingdom than any other single agency in tho financial world at the present time,” said Mr Nash in reply. ■ New Zealand, he said, was doing what it could to help Britain by keeping things within the sterling area. There was not a single pound’s worth of goods that could come into this country from the United Kingdom for which import licenses had not been already granted or authorised. The Government of Britain did not want goods exported that could not be paid for. He did not know how New Zealand could obtain from the United Kingdom goods of greater value than the total sum accruing from the sale of exports or from other credits that automatically accrued. 11 We have issued or authorised licenses for every pound we can see,” the Minister said, “ We cannot do more than that.” Discussing the question of goods on consignment, Mr Nash said that anyone with money overseas could to-mor-row obtain New Zealand currency for it. There was no bar to bringing any foreign currency to New Zealand in exchange for New Zealand currency. EXPORTABLE SURPLUS FOR ENGLAND. While ’ the negotiations With the' United Kingdom at the opening of the war were on a basis of the United Kingdom taking all the Dominion’s exportable surplus, Mr Nash said he-could not get a positive agreement that that would ho done except in tho case of wool. They had taken all the Dominion could produce so far, and the inference was that they would continue to do so; but, as he had said, he could not get any positive agreement. He thought the changed conditions in Europe might result in a plain order for the country’s exportable surplus. “ If we look at it from the point of view of saving the world,” Mr Nash said, “ our contribution is greater in its measure, because we did say to the United Kingdom: ‘You can nave all our products if you want them, even if we can get a better price in other countries and even if it affects our post-war economy.’ The only moneys that we have out of which imports can be brought here are built up by the sale of goods we send overseas and by other money that may accrue from legacies .and commissions.” The Minister emphasised the imperative need of keeping sterling controlled to enable the United Kingdom to conslrve dollars and funds in other countries where there was no sterling. No one could obtain a license and have it transferred to any other country if the goods were obtainable in Britain. Referring to local manufacturing, Mr Nash said that to the extent that it would be possible to use raw materials irr the Dominion and turn them into usable commodities, even though the cost might be far greater, it was good economy. ■ % WAR FINANCE. “ A suggestion has been made that we should alter the direction of trade,” the Minister said. “ That is answered by the fact that there is nothing that we can do to drive trade to the United Kingdom that we have not done. I sometimes think wo might help the United Kingdom more if wo imported less. Certainly we would help the Allied effort more if we did import less. We are importing to the limit now. “ We are providing that all the money required to finance our war effort overseas is found overseas,” the Minister, said. “The overseas cost of the war is £20,000,000. If we think there is a good case we should help to pay for that overseas commitment by exporting more and taking less in the way of imports. We do require that the war finance overseas shall be paid for by the export of goods.” Mr Nash admitted that there had been delays in issuing licenses, but he was sure that the improved procedure in the future would work better. The Customs Department was above suspicion. (“Hear, hear.”) He had never heard of a case where there had been discrimination in favour of anyone. The department tried to be scrupulously fair. He would like to issue licenses on the 1938 basis if that were administratively possible. The Minister said that the abolition of deferred payments did not mean the abolition of the old terms that used to operate. The suggestion had been made that certain commodities should be' allowed to come in this year and be paid for next year, but that would double the liability next year. He did not want any more deferred remittance licenses to become a charge in .1941. SALE OF EXCHANGE STOPPED. “ We have stopped the sale of exchange at figures ranging at 140 to 142.” Mr Nash said, “so that there will be no remittance licenses and no deferred licenses.” In reply to specific questions, Mr Nash said it was an offence to send sut of New Zealand a cheque drawn

on a New Zealand bank or one drawn on an overseas bank without a permit. “We thought that might be avoided for a person who had an account in England and wanted to operate on it for cither than goods,” he said, “ but if we allowed that we would still be opening the * black ’ market again. For various causes we had difficulty last year in convincing people that we had been too kind to you. Too many goods, had come in and we did not have sufficient money to pay for them at that time. “ When the exchange is above the fixed rate there is a suggestion that there is something wrong with that country,” the Minister said. _ “ Wo did not want to see the financial system of this country the subject of bargaining. Every time that was done it tended to tell everybody outside that New Zealand was a dangerous country. There has never been a period when New Zealand failed to meet its obligations overseas. There are some people at Home who do not like our policy, but they have never doubted that we would pay. But when_ transactions like these take place it does tend to suggest that we might not pay.” Replying to a point raised by a member of the deputation that imports of jewellery were completely prohibited while wine and spirits were allowed into the country, Mr Nash said he did not think it was possible to legislate for prohibition by import selection.