TRADE CONTROL

Otago Daily Times, Issue 23897, 26 August 1939, Page 19

TRADE CONTROL

ILL-EFFECTS OF POLICY VIEW OF UNITED KINGDOM INTERESTS FURTHER CLARIFICATION URGED (Per United Press Association) WELLINGTON, Aug. 25. “A fully-attended meeting of the council of the United Kingdom Manufacturers and the New Zealand Representatives’ Association (Inc.) was held in Wellington to-day to consider grave problems arising from the import and exchange control restrictions which are now in force,” says a statement issued tonight. “ Great alarm is expressed by all members of the apparent situation as disclosed by information received here, and from the United Kingdom on the operation of the restrictions, which threaten to cause a stagnation of trade hitherto not dreamed of. The import restrictions under the licence system have heavily curtailed and in many cases prohibited imports, but it will appear that the finance and exchange restrictions being imposed by the Government as a result of the recent negotiations concluded by the Minister of Finance (Mr W. Nash) in London will have a much more drastic and far-reaching effect.

“The members of the association and importers generally are by no means clear as to the full effect of the present position and are awaiting anxiously the allocations from the Reserve Bank of London sterling funds, which, in most cases, have not yet been received in reply to their applications for such funds to cover import licences for th« present half-year period up to December 31. The few replies so far received giving finance allocations vary. Roughly, only about onethird of the cost can be remitted before the end of this year, and another third during the first quarter of 1940. Thus, the payments are to be spread over the next 10 months till June, 1940.

“There are a few points which the council of the association is endeavouring to clarify in connection with the scheme of deferred payments, which it is understood are to be guaranteed under the scheme of export credits. Among these is the very important question of who is to pay the interest cost of the deferred payments. Obviously such cost should not fall upon the importer, or the exporter or the customer. “The actual restrictions on imports, followed by rationing and 'delay in making payment to manufacturers in the United Kingdom, has already caused a slowing down of supply, but must >now cause a serious reduction of supply, not only of manufactured goods, but also of raw materials required to feed New Zealand industries. The effect must be not only gradually to reduce or close down importing firms, but also consequent dismissal of staffs all round. The council of the association is endeavouring to obtain further clarification of the position as soon as possible.”