THE VARIATION CLAUSE.

New Zealand Herald, Volume LVII, Issue 17633, 20 November 1920, Page 7

THE VARIATION CLAUSE.

HANDICAP TO BRITISH TRADE. A NEW ZEALAND INSTANCE. Australian and N.Z. Cable Association. CRecd. 12.30 p.m.) LONDON. May 18. Mr. F. G. Kailaway, Parliamentary Secretary to the Department of Overseas Trade, speaking in Bedfordshire, said that a great obstacle to British export trade is the inclusion of the so-called variation clause,. Instead of quoting a firm price and a definite date of delivery, manufacturers quote in such a manner that the overseas buyer does not know with certainty when he will receive and what he will have to pay for goods. He was informed that this was hampering trade with all parts of the world almost more than any other cause, as German and other foreign quotations were fixed. The variation clause particularly affected .municipal contracts. He had received a complaint from New Zealand that a machine which was sold in the middle of 1919, for delivery in three months, had not been delivered yet, and the manufacturers had raised the price from £285 to £385. It could be seen that agents of British firms were seriously handicapped when persuading their customers that they were receiving fair treatment. Nevertheless, the I British export trade had a serious difficulty to contend with as long as it was faced with uncertainty as to what labour •would cost and the continual possibilities of strikes.