STERLING FUNDS

New Zealand Herald, Volume LXXVI, Issue 23504, 15 November 1939, Page 13

STERLING FUNDS

PAYMENT FOE IMPORTS EFFECT OF RESTRICTIONS THE BRITISH VIEWPOINT [by telegraph OWN* correspondent] WELLINGTON, Tuesday The adverse effect 011 trade between New Zealand and the United Kingdom of the present restrictions in this country regarding payment is commented 011 in a statement issued by tlie United Kingdom Manufacturers and New Zealand Representatives' Association. "While many firms in New Zealand aro closing down because of the embargo placed on certain classes of United Kingdom imports under the operation of the import restrictions, on the other side of the world we find manufacturers unable to send out their goods, although they may not be on the prohibited list, because of the difficulty of obtaining immediate payment, wbicli gives an indication as to why ships are now arriving in New Zealand with almost empty holds," says the statement. "The individual importer can supply finance, but currency restriction prevents remittance immediately. It is quite understandable that the overseas manufacturer is not prepared to, and should not be expected to, ship goods on the timepayment basis which is now operating in this country. A letter from an overseas manufacturer shows the viewpoint in this case of one of the largest manufacturers in the United Kingdom of a particular product essential to New Zealand industry and evidences the attitude of overseas manufacturers to the present import and currency restrictions.

Cause and Effect of Shortages "The shortage of manufactured goods and raw materials in New Zealand necessitates early and substantial modification of the restrictions. This shortago has been caused oil one hand by severe restrictions into New Zealand and on the other by the natural reluctance of overseas firms to send goods on the 'this year, next year, some time' payment basis. It will be noted, however, that the letter indicates a desire to help as far as possible. "This shortage of manufactured goods and raw materials is already causing unemployment in wholesale, retail and manufacturing staffs. It is emphasised that this is not an isolated case and any shortage of supplies has not in most instances been caused by war requirements, but by the operation of New Zealand's import restrictions and currency regulations." Shut-Down of Supplies

The letter referred to is as follows: "The position in regard to export to New Zealand is becoming perfectly impossible and a change in the exporting position owing to the war has further complicated the position. Under war conditions the problems of manufacture and supply for export and of obtaining the necessary licences at youx end will be so great that in effect no manufacturer is going to be bothered to go through all this performance for goods intended for New Zealand unless ho knows without a shadow of doubt by the deposition of cash in London that he will be paid in full and promptly. "This comment, of course, is made in general terms and we shall naturallv very carefully consider any reasonable proposition put up to us for the maintenance of our connection and the satisfaction of our agents and customers. However, it will be found that unless New Zealand is prepared to control her internal affairs so as to make ends meet she will face a virtual shutdown of supplies from overseas. Why should we be asked to foot the bill for conditions which are not caused in any shape or form by us?"

Maintaining British, Exports Other letters received by the association emphasise very strongly that British industry is determined to maintain its export trado and that in spite of the war and the heavy burden of war requirements they are able to fulfil orders; in fact, it is emphasised that it is essential that the British export -trade should be kept going if Britain is to be able to finance the war. Even in the heavy industries they arc still able to fulfil orders for the export trade.