In the statement, which is printed in English, importers will have to mention every detail pertaining to their business. In addition to mentioning the name of the bank, name and address of the importer, amount of exchange sold and date and description of exchange sold to importer (including name and address of payee) other particulars such as tariff numbers, specific description, cost, country in which produced or country from which imported. port of entry, transhipment in China (if known) and disposition in China (e.g, probable place of consumption nature of intended use: name and address of probable purchaser or consignee etc.) must also be stated.
In addition to all these particulars, the banks concerned will have to certify "that to the best of our knowledge and belief the above statements are correct and that the importations described herein confirm in all respects with the conditions agreed upon in our application No. It is also stipulated that in the event the Stabilization Board of China finds that the imports des-ribed do- not conform to the conditions contained in such application, "we agree to re-sell to the Stabilization Board of China the exchange acquired from the Board for the pur-"pose of covering the financing of such imports at the same rate that the exchange was purchased by us." The (banks will undertake to furnish the Board with documentary evidence in Sunport of the statements.
It was learned from reliable local Chinese sources yesterday that the orders received by foreign banks here Tega-ding the procedure as indicated in the statement of particulars are not e only decisions reached by the oard now in session in Hongkong. They disclosed thet members of the Board and. several foreign bankers from Shanghai were continuing their deliberations on the same subject Russo-British Bank Pact In order to eliminate the black market, it was further ordered that local companies which will obtain foreign exchange in accordance with the rules of the Stabilization Board will have to sell export papers to the fourteen licensed banks. In case export papers are" sold on the black market, these companies and firms would be boycotted by the fourteen banks. and any further allotment of foreign exchange would. be discontinued, It is expected that local foreign banks will supply their clients with exact lists and detailed regulations regarding the procedure of allotments of exchange.
The final decision. however, rests with the Hongkong Stabilization Board, and although an application might conform with all the requirements. it is stif possible that it may be turned down by the Board.
It stands to reason that foreign exchange, even for legitimate purposes. will only be allo&ed in limited quantities since otherwise hoardifig would only be-encouraged and one of the main purposes of the new regulations. namely to cut down imports would be invalidated, If the new exchange control suc ceeds, it might be expected that 6 Shanghai business, already meeting with many difficulties, will further be slowed down, and it is only to be hoped that major local industries such as the textiles industries will be able to continue activities more or less at the same rate since otherwise unemployment and social unrest might spread, It is understood that especially the cotton industry has large stocks of raw materials on hand so that even if the Board has to cut down exchange allotments for the time being, the companies would be able to tide over ensuing shortages in imports of raw cotton, On the whole, the measure represents itself as part of a war-time economic policy. and Shanghai. which has whethered the political storms of the past few years comparatively unscathed, will have to put up with a certain amount of deprivations which in other parts of the globe have become part and parcel of day-to-day life,
Text read from the printed page and cleaned; old type leaves the occasional error.