TRADE WITH EAST

Evening Post, Volume CXVI, Issue 29, 3 August 1933, Page 12

TRADE WITH EAST

NEW ZEALAND PRODUCTS

CHINESE AS CUSTOMERS

METHODS OE APPROACH

"Of all markets none equal in their potential buying power the Chinese." This is the considered opinion of Mr. C. J. Church, a business man established in Hong Kong. Mr. Church is no newcomer to New Zealand, for he frequently visited this country as an officer in Iho New Zealand Shipping Co. But ho has spent some twenty years in the East, and for the past ten years has been building up a business based on the successful introduction of Western products to Chinese merchants on customary modern business methods. He has been in constant touch with Singapore, Netherlands, Indies, and Shanghai and othor ports in China proper. Interviewed by a 'Tost" representative, Mr. Church first rather deplored the apparent indifference of New Zealand to the great potentialities of marketing its products among the people of China. When reminded of the lack of direct shipping facilities between New Zealand and China and Singapore, Mr. Church admitted that this was an obstacle, but not insurmountable. Ho said tho freights from New Zealand to Australia were double those from Australia to Singapore, namely, 84s per ton, as against 425. So far as South China was concerned, he said the best route at present was provided via Honolulu, transhipping there on to the Vancouver or San Francisco liners to Hong Kong. Provided immediate connection was made the time would be thirty days from New Zealand to Hong Kong. It was admittedly a roundabout route, but it had the advantage of using the highest class of vessel all the way; so far as Shanghai and Japan wevo concerned, that was certainly the quickest route. "No business with the Far East—or elsewhere —can be built up without direct communications," Mr. Church insisted, and ho added: "There appears no inclination on the part of shipping companies here to meet this need. So vital to the country's prosperity is it that a subsidy might be necessary to get a service, started." VAST MARKETS. Dealing particularly with the markets of China, Mr. Church said: "So vast is this market both in numbers and area, that once New Zealand products are firmly established in the Chinese favour its saturation point is so far ahead in point of time as not to need consideration. The territory opened rip as the result of successful contact witli the Chinese people would consist of tho Dutch East Indies, Malaya, Siam, South China, North China, and the Philippines, in all of which countries the Chinese merchant is supreme. At the moment New Zealand butter is selling in Malaya and South and North China, but in quantities that are but a fraction of that of Australian butter." Mr. Church referred to trade statistics to show how unbalanced was tho position as between New Zealand and the East. "New Zealand exports have been going in one direction," he said, "for so long that the whole policy of the country has become dependent on that route being kept open indefinitely. Tho fact that changing world conditions are about to restrict very largely the free use of this route, necessitates a radical revision of outlook on the part of everybody iv New Zealand." He stressed the need for immediate action on New Zealand's part primarily for two outstanding reasons. ' "The first is that Australia, already being in close contact with, the Far East—her trade exceeds £20,000,000 per annum —has begun to take measures to form even closer contacts with that market," said Mr; Church. "The second is that Japan, having permanently taken over Manchuria, can be relied upon with certainty to take all steps necessary 'to develop the industries of the country. Of these, one of the first will be the dairy industry, and consequently the time is.not far distant when an intensive sales campaign for Manchui-ian butter will appear throughout the Far East. The consequence of these two facts will be to shut New Zealand permanently out of the Far Eastern markets, and to force her back upon her own people and upon a fraction of tho Home market for the disposal of her produce." INVITATION TO CHINESE. Mr. Church holds that unquestionably the most effectual and economical method for New Zealand to pursue.in opening the Chinese market is to invite a deputation of Chinese merchants from Singapore, Hong Kong, Shanghai, and possibly Batavia, and Manila, to come to New Zealand. "These merchants," ho said, "will have a knowledge of trade throughout the Far East at their fingertips, and owing to the fact that they have for a great many years been accustomed to carry on trade with British, Americans, Germans, etc., they will be far more at home with Now Zealand business men than the latter over could be in China. "Knowing the- exact cost of articles in use in China from all countries, they will bo able to appraise at once what can and what cannot bo exported there arid from here, and will be in a position to sco possibilities of trade .openings which would not occur to anyone going to China from here. At one stroke, therefore, tho question of trade openings will be authoritatively dealt with, and by the keenest traders and cleverest businessmen in tho world. The details necessary to round off their proposals present no difficulties whatever. If the principle proposed is acceptable the details can be filled in in a very short time." THE RIGHT ATTITUDE. "Before full advantage can be taken of the Chinese buyers as consumers of New Zealand products," Mr. Church continued, "there are certain adjustments which it is very essential the people in this country should mako in their attitude towards tho Chinese. "In the British, colonies of Malaya and Hong Kong, and in the International Settlement of Shanghai, the Chinese have for many years associated with foreigners oil terms of equality. They have, for a long time, been invited to Government House as much as other people, and it is their habit to entertain —and be entertained by—the foreign population. "The leading businessmen of a proud race like the Chinese—probably educated at Oxford, or Harvard, and resident for many years in England or America beforo returning to the East— would not, of course, consider for ono moment the question of visiting New Zealand under tho conditions in force here today in regard to Orientals; and yet without the free participation of leading Chinese, it is quite impossible to expect the development of a trade that will contribute towards saving the collapse of New Zealand's exports."