STEEL IMPORTS

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

STEEL IMPORTS

END OF DEADLOCK SUPPLIES ASSURED FINANCE ARRANGED - (Per United Press Association) AUCKLAND, Aug, 25. The financial deadlock/which pre-. vented the Importation into the Dominion of steel and wire from Australia has ended, according to advices received by merchants. ' It is stated that arrangements have been made with the Reserve Bank for remittances overseas covering steel products, the permit authority accepting such goods among those classed as essential. As a result, all the orders at present in the hands bf Broken Hill Proprietary, Ltd., Australia, and which are subject to second-period import licences, will be placed by the company. ':■/. ■ . : /' The hold up of steel supplies started in June/ when it was announced that, because the Reserve Bank woujd give no guarantee that sterling would be available in respect of the import . licences issued for the second period, ■ no shipments would be made by the Broken Hill Proprietary and subsidiaries unless payment could be made in Australia. In a subsequent statement in Australia the explantion was made that it was considered that continued shipment on the basis of deferred payment would virtually amount to a loan to New Zealand of capital which the industries concerned could better use to their,, own advantage. Australia is practically an exclusive supplier of steel to the building trade, which has suffered from the. hold-up. The stocks held by merchants for the engineering trade are very low, and there is some evidence that Work by this industry has also been affected by the scarcity. Indeed, urgent representations on its behalf hacT already been made td the Government /