Hongkong, July 4 The Chinese Government's announcement yesterday regarding applications for import exchange will not affect the operations and policy of the Chinese Stabilization Fund.
'This was revealed by authoritative Chinese quarters here today in reply to' enquiries into the new procedure announced by the authorities in Chungking.
Dr. H. H. Kung, the President of the Executive Yuan and concurrently Minister of Finance, is reported from Chungking to have announced the following measures concerning the securing of foreign exchange by importers for imports into China:—1. Exchange will be granted by Chungking for approved import requirements; 2. Exchange for approved applications will be granted at the official rates of the Central Bank of China, but applicants will be required to pay a charge equal to the difference between the official rates and rates to be announced from time to time bby the Bank of China and the Bank of Communications.
3. These arrangements supersede the regulations for exchange allotments dated March 12, 1938.
According to a spokesman of the Ministry of Finance in Chungking. the rates announced by the Bank of China and Bank of Communications are seven' pence in terms of sterling and 13% cents in terms of hited States dollars.
In its announcement yesterday, the Chinese Government prohibited' the importation of "luxuries," covering a wide field including foreign wine, tobacco, sea food, silk goods, ce: metics, clothes, toys, musical inst ments, candies, tinned goods, fruits and vegetables.
It was stated the decision to restrict Chinese imports was not only expected to save the country over $230,000,000 annually and thus help maintain her international balances, but such goods represented the types most likely to be produced by Japan.
Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.