Back Door Trade For The Asking

Bay of Plenty Times, Volume LXIX, Issue 13242, 18 January 1941, Page 4

Back Door Trade For The Asking

By E. C. S. MARSHALL, Foreign Editor of 'The Sun, Sydney/

Batavia. Nov. 14

"So you're an Australian?" said a florid-faced Scot whom I met in a liatavia cafe. "My word, what a chance you people have here. Let s hope you don't make a mess of it. _ He "was speaking, of course, about trade—Australian trade with the Netherlands East Indies. People who are not in business often talk in that rather challenging way about the opportunities which. they suggest can be missed only trough negligence or sheer perversity. And my Scot, as it happened, was not in business. There are seventy million people in these islands, and that fact, in the heat of a tropical sun, may produce economic mirages. Before I came here I talked with Australians, who argued that this could be a glorious market for Australian beer and cordials. They overlooked the fact that, of the 70,000,000 people, there are only some 250,000 so-called Europeans, and these comprise a majority of Eurasians —people who are European in legal status but whose blood is mixed.

As to the average native in the country districts, he can get along on the equivalent of twopence or threepence a day in our money. The native living standard in towns is very low, and most of the natives are Mohammedans, whose creed forbids them alcohol. Cheap cordials for thirsty natives are manufactured here, and when it comes to beer for the relatively restricted European circles who "drink it, two big Java breweries supply most of the demand, at a price with which Australians find it hard to compete. So that blows the froth off our beer dream. Nevertheless, Australian malt yeast and hops go to the making of local beer, so what Australia is losing on the swings she picks up on the roundabouts.

Our exports in general to the Netherlands East Indies have mounted in Quantity year after year from 101,700 metric, tons, for example, in 193 0 to 187,729 metric tons in 193940. But values have fallen. Whereas 1930 exports brought 25,400,000 guilders those of 1939-40 though so much larger broughfc.only 16,730,000 guilders—the trade balance with the Indies is heavily against us and there is no present prospect of readjusting it. Statistics from Indies' sources show that exports to. Australia are worth about £5,730,000, and imports from Australia were worth £2,788,000 in 1939-40. Australian statistics, „ however, will probably show a much greater balance in favor of the Indies, largely because we take exports, especially in oil form, from certain outlying parts of the archipelago which are not subject to Customs 'control and, therefore, do not affect the Batavia re- ! cords.

Australia takes from the Netherlands East Indies great quantities of petroleum and mineral oil products, represented last year by the very conservative Dutch figure of £2,300,000. We are the Indies' best customer for tea, taking £2,220,000 worth. Qther items we buy are kapok, rubber, fibre and coffee, which, however, don't approach the first two in annual value.

What Australia sells to the Netherlands East Indies is, above all, flour. Ninety-seven per cent, of the bread consumed here was once Australian wheat and the item represented last year £1,098,000. Iron and steel, the next largest item of our exports to the Indies, is one which draws attention to the effects .of the war. It stood at £470,000 for last year and would have been a constantly expanding item in the future if Australia had not needed so much iron and steel herself for war purposes. Butter, the third item in point of value on our export list to the Indies, brought £334,000 last year, but showed a decrease in quantity of 50 tons on the previous year. Butter comes here in tins and falling sales are caused by the competition of margarine and vegetable cooking oils the prices of which are easier on pockets made light by wartime hardships. It has to be remembered . that many Dutchmen in these islands had their savings or investments in Holland. These have had to citt their household budgets since the German conquest of the Motherland. Items that appeared last year for the first time to any appreciable extent here are sodium silicate (used in the manufacture of soap and representing a value of £16.800), brandy and wines, tinned meats, linseed oil. boots and shoes, packing paper, red lead, ziuc. white three-ply. chests for rubber and tea, miningtools and other implements, copper wire, and electric accumulators. If Australia is to break new. around here she must advertise her goods. But local advertising costs money, on account of the considerable number of newspapers with modest circulations but less modest charges.

Well publicised Australian commodities have certainty reaped success. For instance, a pharmaceutical product familiar in every Australian household is curing Dutch headaches by the thousand because "it pays to advertise." Sherry from another Dominion sells in Batavia because of good boosting, while an Australian sherry stays too long on the "Toko" (shop) shelves. I have sampled both and — patriotism apart—the Australian product is far ahead of the other.

The Australian office in Batavia, with the Trade Commissioner (H. A. Peterson) at. its head, and a staff consisting of the Assistant Commissioner, a Dutch stenographer, two locally-born Chinese clerks, and a native messenger, cost the Commonwealih only £7OOO a year. Its

Wellington Man's "Catch' The long arm of coincidence is illustrated by the experience of a Wellington man. Four months ago his bicycle was taken from outside his place of business. The disappearance was reported to the police, but the bicycle was not recovered. A few days ago the bicycle owner went fishing at Clyde Quay wharf. With his first catch he hooked something heavy. The catch proved to be his own bicycle, covered with sea growth after months of rest in 30ft of water. As the. police said when the find was reported to them, it was the best fish yarn, they had heard for years!