CONTROL OF EXCHANGE

Greymouth Evening Star, 14 December 1938, Page 7

CONTROL OF EXCHANGE

OVERSEAS REMITTANCES

MONTHLY PERMIT SYSTEM

fpEB PRESS ASSOCIATION.]

WELLINGTON, December 13. The procedure to be followed by persons wishing to remit funds overseas for travelling purposes, or for other purposes not involving the importation of goods, was outlined by Hon. W. Nash (Minister of Finance). Permits, for which application must be made at a trading bank, and which normally must be applied for a month ahead, are to be issued, and, on the authority of the Treasury, the bank will make approved funds available. “Generally all reasonable and legitimate requirements other than the capital transfer of money overseas by New Zealand residents will be met,” said the Minister, “and the permit system as is being introduced will, I think, assist people by providing a definite channel through which, with the minimum trouble, they can obtain a definite assurance that a given amount of overseas credits will be made available to them on a given date.”

Mr. Nash stated that the steps being taken to conserve exchange were to ensure that funds would be available to meet commitments at the latter end of next year. The normal building up of sterling by the side of exports, together with available sterling, would be more than sufficient to meet the requirements of traders and other importers during the next few months. Over-importation,, particularly during the past year, rendered some regulation necessary to ensure that it did not extend through next year, and that the funds required during the latter months of 1939, would be available. Conservation of funds was necessary, not only to meet debt and other services, but also to assure importers that their overseas requirements for essential imports would be available. “In general,” said the Minister, “importers will experience no difficulty in obtaining the overseas credits necessary to meet all documents for orders for normal requirements place on or before December 5. Trading banks will be provided with all funds necessaly to satisfy the demands of their clients in this respect, in addition to funds for imports as .stated.” The Minister said that chequ.es drawn on New Zealand trading banks, which were sent overseas on or before December 5, would be met provided that they were sent in the ordinary way of business to coyer trading transactions or other legitimate needs of normal • character.

“Sterling or other overseas funds necessarily required for travelling expenses overseas by travellers from New Zealand, reasonable remittances to relatives overseas for maintenance or personal expenses, and other remittances overseas not involving the importation of goods, will be made available under permit,” said Mr Nash.“ Application forms are now being printed, and will be distributed to the various branches of the banks within a couple of days. Anyone going abroad or desirous of making such remittances overseas should call at the branch of the bank normally used by him, or if he. Iras no bank, at any branch of any bank. At the bank he will be asked to fill in a single form of application for a permit, which the bank will forward to the Treasury. Permits for approved amounts will be sent to the branch of the bank through which the application is made, and that bank will thereby be authorised to make the relative amount of overseas funds available to the applicant. Except in cases of special urgency, these applications should be made at least one month, prior to the date upon which the funds are required. The reasonable , requirements of tourists and travellers for personal expenses will be provided. Permits for the payment of interest and dividends and similar payments to persons ordinarily domiciled abroad, will be available as required. ' The transfer of capital on account of legacies and for persons leaving for residence abroad, will generally be available, but a special arrangement may bo necessary where large sums are involved.”

IMPORT LICENSES

MR. NASH’S STATEMENT.

WELLINGTON, December 13.

It has been decided to admit, under license, any goods ordered on or before December 5 and shipped after December 31, provided the quantities imported by any one importer are not abnormal. This announcement was made by Hon. W. Nash to-day, when referring to the licensing of imports. In connection with this dispensation, it would be necessary, he said, for importers to supply forthwith to the Collector of Customs at the port of in-j tended importation of the . goods cop-; ies or particulars of all orders for. goods not yet imported. I, “The position, therefore, is as follows: (a) Goods which had left the exporting country and were on board ship for export to New Zealand on December 5 will be admitted without license; (b) Goods which were ordered prior/ to December 5, and which are imported to New Zealand not later than December 31 will be admitted without license; (c) Goods which were ordered on or before December 5, and which are imported after December 31 will be admitted under license, subject to compliance with the conditions set out above. Any goods imported after December 31 will be included in any. quota granted under a license to the importer, and any application made by any importer for a license 'for any period should include such goods. In the event of a license covering a whole period not having been issued at the time of importation of any of the goods referred to in Paiagiaphs (a) and (c) (imported after December 31), importers are required to make application in respect of any such shipment at the time of entry on importation. It will not be necessary for importers to show on these applications particulars of importations during 1938. Goods will be deemed to have been ordered according to the date on which the firm orders were actually placed overseas (direct by the importer or (2) by i;i agent to his principal on behalf oi the importer, or (3) by the importer to an overseas buying house, or (4) or buying houses in the United Kingdom on behalf of New Zealand importers, provided that, in the latter case, satisfactory evidence as to the date on which the order was

[placed is produced forthwith to an I official representative of the Customs Department in London.” Mr. Nash also advised that, pending the issue of import licenses covering the first period —namely, January 1 to June 30 —consideration would be given to applications in respect of orders which it was desired to place immediately, where these related to goods of an essential nature urgently required. and the quantity involved was not excessive. Any such applications should show the quantity imported by the applicant during each half-year of 1938, said the Minister. Any such importations which arrive in New Zealand after December 31 will, of course, be included in any quota whicli may be granted to the applicant for the first period, and any application covering the first period should include such goods. “My attention has been drawn,” said Mr. Nash, “to certain difficulties experienced by importers in lodging their applications to cover goods imported at individual ports. It is necessary for the quantities imported under license to be checked at the port of importation, and for that reason, it is desirable, wherever possible, that applications, for licenses should be made to the Collector of Customs at the port of intended importation of the goods, and that they should specify the quantity which it is desired to import at that port. I recognise that, in certain cases, it may not be possible to nominate at the time of lodging an application for a license the quantity to be imported at individual ports. In such cases, to meet the convenience of importers, I will be agreeable to an application being made in respect of a number of ports without specifying the quantities for each port. Such applications may be submitted to the Contrpller, together with a statement setting out the reasons why such a course was desired, and indicating the port at which the importer’s records covering his importations for the whole of New Zealand are available for any inspection which may be necessary.” AUCKLAND IMPORTERS

AUCKLAND, December 13.

The importers’ sections of the Auckland Chamber of Commerce met today. Subsequently the president of the chamber, Mr. A. Ely, sent the following telegram to the Minister for Customs (Hon. W. Nash) : — “The commercial community is deeply perturbed at the grave uncertainty through lack of information regarding the direction of import restrictions. Manufacturers and principals abroad are holding up shipments. Unless the position is clarified promptly, it is feared that the staffs of importing houses will be reduced.” Mr. Ely also sent a telegram to the Comptroller of Customs, Wellington, pointing out that commercial interests were finding difficulty in supplying schedules of uncompleted orders lodged before December 5 before the date fixed by the Department, December 15. This difficulty has arisen through the Christmas rush of business. Mr. Ely asked that the date of supplying proof of orders should be extended to the end of the month.

DUNEDIN REGRET.

DUNEDIN, December 14. The Chamber of .Commerce passed a resolution, last evening, that while in full accord with the Government’s desire to avoid default in overeas debt, the Chamber deplores the necessity for the departure of New Zealand from the sterling exchange bloc,, and the imposition of import restrictions. It views with alarm this acceleration of the inflationary trend in our economics, and urges on the Government the imperative need for internal adjustment to check, rising costs and excessive expenditure on unproductive works, if the value of the New Zealand pound is to be prevented from falling still lower. It was also decided that the Government be urged to appoint a committee representing all classes of the commercial community, to confer with the Government, in the administration of the regulations.

JAPANESE INTIMATION.

WELLINGTON, December 13

Discussing the situation arising from the introduction of regulations for the control of imports to New Zealand, the Consul-General for Japan, Mr. K. Gunji, said that for several years Japan had been a valuable customer for New Zealand wool and other products. Although it was true that so far this year the balance of trade was in favour of Japan by about £400,000, previously the reverse had been the position. Japan had bought millions of pounds worth more from New Zealand than she had sold to the Dominion. “Anything, therefore, that may restrict ‘the sale of Japanese goods in New Zealand may be a great mistake, said Mr. Gunji. It was only as an emergency measure that last season the Japanese Government limited its foreign imports. This was, of course, because of the “incident” m China. “However, as soon as that trouble has been settled, Japan will resume normal trading, and will as before be a heavy buyer from New Zealand, he said. “Japan’s huge industrial activities must cause an ever-increasing demand for raw materials,' many ot which, such as wool and casein, New Zealand can supply in large quantib ties.” I It was interesting, he said, that the ' Japanese Government, in drawing up its regulations for the control 01 imports and exports, included a speciiic list of goods and commodities affected, favourably or otherwise. The list, was immediately available to importers, with the result that trade was greath facilitated. Such a list was urgenth needed in the case of New Zealand. The manager of Mitsui and Companj (N.Z.), Ltd., Mr. K. Ikeda, said his principals in Japan had been caused serious embarrassment by the lack ot knowledge of the full implications ot . the new regulations. Last season, said Mr. Ikeda, Japan bought from hew Zealand about 300,000 bales of woo . and this season she would piObablj be buving more. This fact would no doubt be considered by the 9 over J\ ment. A large proportion of imports from Japan consisted of materials used by New Zealand’s secondary industries. Drastic discrimination against ’ithese might lead to some retaliatoiy ! action, Mr. Ikeda said. Howevei, he ; personally did not think Japan would seek to retaliate for discrimination against Japanese made-up goods which could be produced in New Zealand. It was only reasonable that a country should take steps to protect its own industries.

MR. MACDONALD’S STATEMENT

[BRITISH OFFICIAL WIRELESS.]

RUGBY, Dec. 13

The measures of exchange control including the licensing of imports, which were announced by New Zea

land on December 6, were the subject of a Commons question.

Mr. MacDonald, replying, said that he had not yet received sufficient information with regard to the conditions under which the import licenses would be made available, to judge the probable effect of these measures on the imports of United Kingdom goods, but a public statement had been made on behalf of the New Zealand Government, to the effect that it fully recognised its obligations to buy as much as possible in this country. He understood that New Zealand was making special arrangements regarding the importation of goods ordered before December 5, and he was in communication with the New Zealand Government on the matter.