TRADE WITH CHINA

Dominion, Volume 27, Issue 68, 13 December 1933, Page 8

TRADE WITH CHINA

Invitation to Merchants Favoured WIDENING OF MARKETS While the suggestion for the formation of an organisation for the increase of New Zealand-Chinese trade was not favoured, that for a delegation of Chinese merchants to be invited to visit New Zealand was considered a good one, in a report by a joint committee of the exporters’ and importers' committees of the Wellington Chamber of Commerce adopted at a meeting of the council of the chamber last night. The report was in response to a letter* received from the Advertising and Publicity Bureau, Ltd., Hong-Kong, Malaya and China. “The suggestion for the formation of an organisation to increase New Zealand’s trade with the Chinese does not appeal,” reports the committee. “There are already export boards in existence in New Zealand (dairy produce and meat), and these boards have given careful attention to the developing and exploiting of the Eastern markets. The following extracts from recent reports of the Dairy Board are of interest in this connection: — Australia’s Advantage. “1932—Australia possesses enormous advantages over New Zealand in her closer pro_ximity to the East with a regular steamer service,' added to a high favourable exchange rate, and an export bonus under the Paterson Plan. . . , Australia must always retain a price advantage. ■ < . 1933—The report brought to light nothing that would justify the board’s undertaking extra expenditure on developing Eastern markets. In spite of extremely low prices in later years, Australia’s quantity has not increased and we can see no permanent increase in the total accruing to New Zealand apart < from <• under-cutting of prices. This is neither profitable nor businesslike. Australia, by . reason of lower freight rates and the Paterson Plan, can still beat us ,on a price basis. “The* suggestion for a delegation of Chinese merchants to be invited to visit New, Zealand appears to be a good one. Such a delegation, of course, would be interested in looking also to the opportunities for entry of Chinese goods into the Dominion, and there is also the aspect of tourist trade. “It Us understood that some New Zealand dairy produce exporters have for some years had representatives travelling the East, and useful information could no doubt be obtained from these sources of what further steps and facilities could be considered to further New Zealand’s trade interests in the East. One aspect must be kept in mind, and that is that if New Zealand’s produce is to be restricted in entry into the Home markets, then much greater attention than in‘the past will have to be devoted to alternative markets and buyers for the Dominion’s production will have to be found even at a price that may leave much to be desired.