GERMAN MENACE IN MALAYA

Evening Star, Issue 17920, 16 March 1922, Page 5

GERMAN MENACE IN MALAYA

STINNES’S BID FOR MONOPOLY.

In view of the many mutually advantageous trade connections which existed before tho war, and indeed still exist, between the United Kingdom and the Dutch East Indies, it is to bo hoped that British interests will not allow themselves to be pushed aside by the Stinnes group (says ‘Tho Times,’ London).

Tho Commercial Secretary at Batavia has notified the Department of Overseas Trade by cable that the Public Works Department has officially announced that all work temporarily suspended for reasons of economy are to be- resumed immediately. The resumption of this work foreshadows a considerable demand for constructional) material and engineering accessories, and while no official authority has been given for starting on new works planned, it would appear that there may be important openings for United Kingdom firms interested in the above market and products.

It should be noted that in flic case of contracts for materia! for public works, dredging plant, cables, constructional iron and steel, and the like, United Kingdom firms may lodge tenders with the Colonial Office at The Hague without the necessity for local representation in Holland.

It is fairly well known that the Germans have been successful in gaining contracts for locomotives, 'foiling stock, electrical plant, water pipes, and bmlgework. The danger to our trade which is threatened by the rapid reappearance of German competition in Tnsnlimlo has been the subject of frequent comment in these columns. Owing to tho depreciation of the mark valuable orders bare gone to Berlin, and further important contracts are likely to follow if Herr Stinnes succeeds in his schemes for the financial penetration of tho islands. CONDITIONAL FINANCE.

In view, however, of the close watcli that merchants and contractors in Holland are keeping on prospective business in the Dutch East Indies, it is probable that conditions under which Herr Stinnes offers loans tor purposes of development there will be scrutinised carefully before acceptance. It will ho remembered that ho offered to advance £10,000,000 gold on condition that the authorities placed their 1922 contracts with the Rhine Elbe Union. In financial! circles it is now reported that the sura offered has been increased to £30,000,000 gold. Another offer by Herr Stinnes was that of a loan of several million florins to tho municipality of Bandoeng, the stipulation, being made that all municipal works should be entrusted to the same combine.

The mnnayrr of nn Eastern trading syndicate, with headquarters at Hamburg, who was well known in Batavia noth before and after the war,,in a recently-issued brochure throws doubt on tho future of certain Dutch Indian industries which were started a few years ago. It will be obvious, therefore, from the foregoing that the situation in the Insulindc markets is worth study by British merchants and financiers. Their eo-onera-tion should be more welcome to Dutch intends (than that of the Germans. There are many needs to be supplied and many industries to be fostered.

The Stinnes group is by no means restricting its activities to the building nr assembly of rolling stock and the supply of iron and steel and similar engineering accessories. Its representatives are closely following every possible development that would lead to a demand for machinery or material. TEXTILE OPEXTXGS.

It is practically certain that they will seek to arrange for the local manufacture of textiles. Manchester men may not be disturbed by the prospect, in view of the predominant position they hold in textile markets throughout the world. It is more than probable that many years would elapse before the establishment of cotton mills in Java would seriously affect Manchester’s exports to fnsulindc. Yet it would surely bo fitting for British enterprise and finance to be associated with the production of such manufactures. There is reason to believe that the Dutch East Indian Government would offer advantageous conditions. Terms that have been suggested include the purchase by the State of the whole of the first year’s output at cost price, plus 12 per cent., one million yards of material during each of three succeeding years at 12 per cent, above competitive prices, one million yards for three further years at a 10 per cent, preference in price, etc. In the tenth year one million yards at competitive quotations. After the tenth year the factory would stand on its own footing.

The prospects nf extending the cultivation of the fibre are being thoroughly investigated, and are already considered highly favorable, particularly in Celebes and the smaller Soembi islands. On the island of Lombok a large area is alreaidy under cultivation, whence 500 tons of cotton were in 1920 exported to Japan. Promising districts have been proved in the Pal'ii Valley, Central- Celebes, Flores Islands, Soemba and Boeton, and in the Palembang district of Sumatra. ■