IMPORT CONTROL IS ADOPTED BY SOUTH AFRICA

Grey River Argus, 26 February 1949, Page 5

IMPORT CONTROL IS ADOPTED BY SOUTH AFRICA

For All Goods STATE CONTROL OF GOLD

CAPETOWN, February 24

The South African Finance Minister Mr Havenga, announced to-day in the Asembly that the Union would impose physical control of all imports. It would be applied to the sterling as well as the non-sterling areas. Mr Havenga said that permits would be required for the importation of goods not on the prohibited list and from the date of the inception of such 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 non-sterling areas would continue until »June 30 next. After that date these goods would be allowed entry only on an import permit or evidence that payment. for the goods was made under the available exchange quota.

Goods ordered from the sterling areas 1 , 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 of resources and not to give additional protection to local industries. Mr Havenga said that exchange control on non-sterling imports had increased the imports from the sterling areas and the depletion in the Union’s sterling assets had been such in recent weeks that it could not be allowed to continue unchecked.

GOVERNMENT CONTROL OF GOLD Dealing with South Africa’s recent sale of semii-processed gold in London, Mr Havenga said: “I admit frankly that the International Monetary Fund does not like international transactions in gold at prem.um 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 had no effect on the immense volume of international trading in gold at premium prices. Tljis goes on and a great deal of it goes on in the territories of countries which, like ourselves, are members of the International Monetary Fund. South Africa will continue her obligations to the fund in full,” he added.