COMMERCIAL LOAN

Timaru Herald, Volume CXLVII, Issue 21449, 13 September 1939, Page 6

COMMERCIAL LOAN

Relationship to Exports By Telegiaph —Press Association WELLINGTON. September 12. In tlie House of Representatives this afternoon. Mr C. A. Wilkinson (Independent, Egmbnt). in an urgent question to the Minister of FihatiCe (Hon. W. Nash), asked for information regarding the recent loan arranged by him in London amounting to £4.000.000 for commercial purposes, and its relationship to the export of goods from the United Kingdom to New Zealand He also asked if the Minister was aware that English shippers were demanding sterling payment in Londofi I before executing orders for essentia] I goods, and further asked Mr Nash to' state if there were any stipulations made by lenders regarding the establishment in New Zealand of uneconomic industries. In reply, Mr Nash stated that arrangements had been made for the Reserve Bank to issue remittance authorities fixing definitely particular months when sterling could be made available for individual holders of import licenses. Furthermore, any risk of loss from possible changes in the rate of the exchange in the interim had been avoided by the trading banks being authorised to sell immediate!', sterling for delivery at the times fixed in the remittance authorities. These arrangements were reinforced, if so iesired by the United Kingdom exporter with a guarantee of the British Government. which should enable air. United Kingdom exporter to obtain readily immediate finance from his bankers against shipment to New Zealand. Some cases had been brought to notice where difficulty was being experienced in arranging for imports on the deferred payment basis; said Mi Nash, and these difficulties had naturally been accentuated by the way. but he undertook to investigate specific cases which Mr Wilkinson said h< would submit to him. Mr Nash further stated that in the agreement between New ZMldnd atid the United Kingdom. New Zealand han specified that its policy bf licensing imports would not be used to foster uneconomic industries.