Whisky Merchants, State Reach Import Agreement

Northern Advocate, 1 February 1940, Page 6

Whisky Merchants, State Reach Import Agreement

[Per Press Association. —Copyright] DUNEDIN, This Day. An arrangement has been entered into between 'the New Zealand Government and 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 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, 1940. Under the agreement arrived at between the parties, the Government is prepared to authorise the issue of licenses 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: Investments In New Zealand Stock. That half of the amount for remittance in respect of the second period (July-December, 1939) and half of the amount for remittance overseas in respect of the third period (JanuaryJune, 1940) will be invested in New Zealand Gbvernment Stock to mature on March 15, 1945, bearing interest at 4 per cent per annum, both principal and interest 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 the imports of both periods will be used to purchase from the New Zealand Treasury short-term investments in New Zealand Government stock maturing on March 1, 1941. Another Undertaking.

The purchase will be made on the understanding that for each £IOO paid to the Public Account, stock to a nominal amount of £BO will be issued, and that this stock will bear interest payable half-yearly in New Zealand and at 2:1 per cent, per annum in New Zealand currency, the principal to be repayable at maturity in sterling in London without deduction of exchange. This means that from each £IOO paid to the Treasury there will be deducted a sum of £2O, being the difference in value between the New Zealand pound ana the United Kingdom pound, that the balance of £BO will be paid in sterling in March, 1941, and that investments for £BO in New Zealand at 23 per cent, will be provided in the meantime.