Conservation Of Sterling Vital, Says Mr, Mash

Northern Advocate, 26 April 1940, Page 6

Conservation Of Sterling Vital, Says Mr, Mash

[Per Press Association. Copyright .] WELLINGTON, This Day. A revision of the Government’s import control policy, in view of the different war conditions now operating was advocated by a deputation representing importing interests which waited on the Minister for Customs (Mr Nash) yesterday. “Conservation of stei’ling is more important to the United Kingdom than any other single agency in the financial world at the present time,” said the Minister in replying. New Zealand 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. Licenses for Every £ Available The Government of Britain did not want goods exported that could be paid for. The Minister did not know how 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. “We have issued or authorised licenses for every pound we can see,” said Mr Nash. “We cannot do more than that.” Discussing the questions of goods on consignment, the Minister said anyone with overseas money could tomorrow obtain New Zealand currency for it. There was no bar to bringing any foreign currency to New Zealand in exchange for New Zealand currency. Britain’s Purchases While negotiations with the United Kingdom .at the opening of the war were on the basis of the United Kingdom taking all the Dominion's exportable surplus, continued Mr Nash, he could not get a positive agreement that that would be done except in the case of wool. Britain had taken all the Dominion could produce so far. and he thought the changed conditions in Europe might result in a plain order for the country’s exportable surplus. The Mnister emphasised the imperative need for keeping- sterling controlled to enable the united Kingdom to conserve dollars and funds in other countries where there was no sterling. Referring to local manufacturing, Mr Nash said that to the extent that it would be possible to use raw materials in the Dominion and turn them into useable commodities, even although the cost might be far greater, it was good economy.

Aid to Britain, Allies “The suggestion has been made that we should alter the direction of trade,” he continued. “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 we might help the United Kingdom more if we imported less. “Certainly we would help the Allied effort more if we did import less. “We are importing to the very limit now. “We are providing that all money required to finance our war effort overseas is found overseas. “If we think there is a good case we should help pay for that overseas commitment by exporting more and taking less in the way of imports. “We do require that war finance overseas shall be paid for by the export of goods.” Improved Procedure Mr Nash admitted that there had been delays in issuing licenses, but he was sure the improved procedure in future work would be better. A 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. “We have stopped the sale of exchange at figures ranging at 140 to 142,” said the Minister, “so that there will be no remittance licenses and deferred licenses.” In reply to specific, questions, Mr Nash said it was fin offence to Send out of New Zealand a cheque drawn on a New Zealand bank, or one drawn on an overseas bank, without a permit.

“For various cases we had difficulty last year in convincing people we could pay for our exports,” Mr Nash said. “Our difficulty was probably 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 the time.”