VIII.          TRADE AND PROJECT FINANCING

BRIEF DESCRIPTION OF BANKING SYSTEM:

The banking system of New Zealand is comprised of the Reserve Bank
of New Zealand (the central bank), nine settlement or clearing
banks of which seven have a nationwide network of branches, a few
trustee savings banks, and four investment merchant banking firms.
In addition, finance companies, insurance companies, and building
societies are engaged in the capital investment business.  Stock
exchanges are located in five cities and engage in the trading of
domestic and certain foreign securities.  Since the sale of the
once state owned Bank of New Zealand to National Australia Bank,
all but two of the clearing banks (see G list at end of this
section) are foreign owned.  These banks undertake the customary
business of receiving deposits, handling checks, granting advances
(overdrafts), and buying and selling foreign exchange.  These banks
also discount bills, but this is not a highly developed practice in
New Zealand.  These banks, which operate primarily in the short and
medium term credit sectors, maintain the usual liaison with banks
in the major financial countries of the world.

The Government of New Zealand's liberalization of the banking
system has ended almost all restrictions on the number, activities
and ownership of banks operating in New Zealand.  There are no
limits on the number of licenses granted, and foreign-owned
institutions have full equality with nationally based firms.  Banks
operate on an "at your own risk" policy for both management and
depositors.  Federal deposit insurance and regulatory functions are
not administered by the Reserve Bank of New Zealand.

The Reserve Bank grants a banking license to any institution that
meets certain requirements.  New banks have to apply for a separate
license for foreign exchange trading, but this poses no difficulty.
New banks can issue checks.  The nine clearing banks operate and
own the country's sole check clearing system, Interchange &
Settlement Ltd (ISL).  The automated clearing function is run by
EDS (NZ) Ltd under contract to ISL.   Those setting up new banks
are assured by the Government of New Zealand that it does not
tolerate attempts to exclude them.

The three American based financial institutions (Citibank, Bankers
Trust, CS First Boston) are primarily involved with corporate
finance, money market trading, and investment banking.  Only
Citibank offers retail mortgage services.

FOREIGN EXCHANGE CONTROLS AFFECTING TRADING:

There are no major controls on foreign exchange trading except for
the separate license requirement stated earlier.

GENERAL FINANCING AVAILABILITY:

The main sources of capital for financing imports or new
development in New Zealand are undistributed profits, the share
market, merchant banks, insurance companies, savings banks, finance
companies (including hire-purchase companies), private sources, the
investment by overseas companies in New Zealand branches and
subsidiaries, and joint venture companies.  The New Zealand
Government does not have a venture capital program nor does it
support third party organizations as a financier of last resort.
Although there is a broad array of suppliers of capital, there
still is a scarcity of resources for start-up organizations and
other high risk ventures.

HOW TO FINANCE EXPORTS/METHODS of PAYMENTS:

Standard financial products are available in New Zealand to support
import and export opportunities.  Secured bank credit and trade
finance vehicles (i.e., irrevocable letter of credit) are readily
offered by local financial institutions.  Open account purchase
agreements are quite common among long time trading partners.  Some
New Zealand exporters have taken products in trade when dealing
with cash poor countries such as the old Soviet bloc countries.

TYPES OF AVAILABLE EXPORT FINANCING and INSURANCE:

The U.S. Export Import Bank standard policies apply to United
States firms selling to New Zealand entities.  New Zealand
exporters can utilize the services of the New Zealand Export
Guarantee Office for credit insurance along with other insurance
services covering invisible exports, tenders and guarantees.

PROJECT FINANCING AVAILABLE (Including Lending From Multilateral
Institutions And Types of Projects):

Project financing in New Zealand has historically been offered by
vendors as a part of the total project package, or by merchant
bankers as a member of a consortium project.  Multilateral
institutions and development banks do not lend into New Zealand
since it is not considered a developing country by any standard.

LIST OF BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS:

1.  Bank of New Zealand                           NAB New York
2.  Westpac Banking Corp Ltd                      Westpac New York
3.  ANZ Banking Group (NZ) Ltd                    ANZ New York
4.  National Bank of NZ Ltd                       Bank of America
5.  ASB Bank Limited                              ABS New York
6.  Country Wide                                  Bank of New York
7.  Trust Bank                                    Citibank
8.  Citibank N.A.                                 Citibank N.A.
9.  Bankers Trust (NZ) Ltd                        Bankers Trust
10. CS First Boston (NZ) Ltd                      CS First Boston