Trade with the Islands.

Hawke's Bay Tribune, Volume X, Issue 185, 21 July 1920, Page 5

Trade with the Islands.

GOVERNMENT COMMISSION'S AUSTRALIA AND AMERICAN ASCENDANCY. NEW ZEALAND LOSING GROUND. [Per Press Association.] Wellington, July 20. Tho report of the Commission comprising Messrs. George Elliott (chairman), William R. Pearson and Thos. Wilson, appointed by the Government to inquire into the condition of the trade between New Zealand ana I‘iji, Tonga, Western Samoa, and the Cook Islands, and the liest means of promoting and encouraging an increase therein, was presented in the House to-day. ’ FIJI. Dealing first with'Fiji, it is pointed out that practically the whole of the exports comprise sugar, copra, and green fruit*. The total value of exports in l!fl9 was £1.173,545. whereof New Zealand took £882,574. New Zea land takes three-quarters of Fi.,l s sugar export and one-third of the bananas. New Zealand is vitally interested in the Fiji sugar industry. The Colonial Sugar Company is able to buy raw sugar cheaply there, and New Zealand imposes no duty. Consequently the people in New Zealand are able to purchase sugar cheaper than the people of any Ntther country in the world. The evidence disclosed that the position of sugar cane growing is unsatisfactory. Much land owned by the Sugar Company and leased, by planters has been given up, . while other land, especially on the Rewa river, Ims been withdrawn from sugar cane cultivation. The reasons given are:— (1) The shortage of labour. (2) Smallness of the prices obtainable for cane. (3) Unsatisfactory working conditions.

The Indian contract labour system was abolished in 1916 find arrangements are now being, made to induce free Indian labour to come to the colony. About 60.000 Indians are now in Fiji, many owning land, and a pros perous Fiji could, however, gradually give lucrative employment to many times this number. Eight tons of cane are required to make one ton, of sugar, and the price of cane, producing eleven per cent, of sugar, is fifteen shillings a ton, with a rise of fifteen pence for each point below. It was freely stated that if the price were fixpd at 20 shillings a ton, with a rise and fall of Is 3d. above or below eleven per cent., many planters would again grow cane and' the output of raw sugar would increase considerably. The cost of raw material would thus be about £9 per ton of sugar. The committee thinks, however, that if the price were advanced to 17/6 per ton for eleven per cent., cane, with a rise and fall of Is 3d. large areas would be brought back into sugar cane cultivation. It is important for consumers in New Zealand that the output of Fiji sugar cane should be increased. In 1916 Fiji exported 120,0Q0 tons of sugar and last year the quantity had fallen to 64.347 tons, and the estimate for this year was 60.000. New Zealand depends on Fiji for sugar and Fiji depends on cane cultivation for its existence. Therefore both countries are seriously affected by anything that militates against the maintenance and expansion of the sugar industry. Planters are dissatisfied with conditions under which they work, the price of cane being fixed by the company for only one year, apparently as thq company has only a yearly contract with the New Zealand .Government. The planters therefore cannot know what they are likely to receive for the cane they intend to grow on land in preparation, ami are disheartened. Arrangements should be made with planters for periods of at least three years. Copra valued at 469,893, was exported in 1918, pearly all to America. It is suggested that Fiji should put a higher export duty on this article sent outside the Empire if it is to be preserved for British industry. Fiji’s total trade last year was valued at £2.931.376, the imports being £1.060,314 and the exports £1.871, 062. New Zealand sold to Fiji in that year goods valued at £151,662 and bought from Fiji goods valued at £BB2, 574 (most of the latter was raw sugar). Thus New Zealand last year purchased nearly half Fiji's exports, but supplied only about one-seventh of Fiji’s imports. J Australia on the other hand, sold to Fiji goods valued at £536,974 (one half her total imports) and bought from Fiji goods worth only £110,444 (about one-seventeenth of the total ex(ports). The reasons fur this state of affairs are that the Australian merchants cater for tropical requirements and push trade more vigorously than New Zealanders, and, according to the evidence, are satisfied with smaller profits. Australia sends to Fiji, Tonga, and Samoa commercial travellers to one from New Zealand. In the mattec of cotton goods New Zealand’s share of the Fijian business should be at least equal to Australia’s. Freight from Britain to New Zealand are no greater than to Sydney. Harbour charges in New Zealand are less, the distance from Auckland to Fiji is shorter by one-third and the freight slightly cheaper. TONGA. Regarding Tonga, the Commission considers that direct shipping facilities would materially benefit both inward and outward trade. In 1912 New Zealand supplied goods valued at £82,826 or more than half the kingdom’s requirements. Last year the position was: —Australia £77,739, New Zealand £68,526, America £12,991, England £10,635, Fiji 6044. The Americans advertise their goods freely in Tonga, Australia following their example. New Zealand advertisements are few and far between. Unless New Zealand merchants be up and doing the Dominion’s trade will fall still further back. The stoppage of the fortnightly “horse-shoe” shipping service (Auckland to the Islands to Sydney, and Sydney to the Islands to Auckland) sounded the death-knell xif the Tongan fruit trade. The islanders want this service reinstated now the war is over and are confident that if this is done the fruit trade will soon be restored.

The Commission points out, however that this service would not materially benefit New Zealand business. At present New Zealand has a direct service to Tonga, white Australian goods are transhipped at Suva. Consequently freights from Australia are higher than from New Zealand. Tongan officials claim that the opening of a branch of one of the New. Zealand banks would benefit trade and an alteration to the Awanui wireless station so as to work direct with Nukualofa instead of via Fiji would also assist in stimulating business. More satisfactory tariff arrangements with the Tongan Government for goods wholly or partiallv manufactured in New Zealand might help to develop the fruit trade. Though the natives’ individual wants are small, the trade volume is not inconsiderable, and well worth cultivating. Cotton goods are needed and ornaments are popular. There is a growing demand .or Hour, sugar, biscuits. tinned and salted meats and fish, also frozen n >at from N?w Zeala'i I. The Ibcninion praeticnl'y holds the monj-jolv of tic tinned meat trade, though some has been imported from other countries when there has been a shortage in Ntew Zealand. There is no reason why trade in the following NewZealand made goods should not be increased: —Plain and fancy shoes, wrapping paper, cement, timber, paints, confectionery. leather goods, knitting woo’. Australia has the larger share of the soft goods trade, but New Zealand merchants with the advantage of a direct shipping service should be able to recapture the business.

SAMOA. The Commission urges the importance of dealing with the Labour question and the improvement of shipping arrangements. The greatest care should he exercised in the selection of medical officers in so far as concerns preservation of young life, for according to the rise or fall of the native population trade will be affected. On September 30, 1918, the population of Western Samoa was 38,302, having grown by 5487 in sixteen years. The influenza epidemic at the end of 1918 carried of 8000. With doctors conversant with tropical diseases the native population should be able to siiow an increase in future years. In addition to the Samoan population, there were 1166 indentured labourers and 1660 whites and halfCuetos. Touching on lands held by the D. H. and I’. G., the Commission discounts the suggestion, that they should be subdivided for disposal to returned soldiers. The cost of the land would be heavv, and without provision for imported labour, the soldiers would inevitably face loss and disappointment. With equal expenditure a soldier would, with less exertion, have a much bettiychance of making ends meet in New Zealand, wtfere the climate and other conditions are infinitely better. Plantations can be more cheaply managed in large areas, and though it would be less trouble to sell them as soon as possible to the highest bidder, the Commission suggests the advisableness of the New Zealand Government holding and developing them for a few years. The Commission emphasises the nilporta nee of teaching agricultural subjects in the State schools, and recommends the formation of a Tropical Section of the New Zealand Administrator of agricultural experts in Samoa. The strict enforcement of the regulation in regard to keeping all plantations clean and free from weeds is essential, /lime in Samoa should be made to coincide with that of New Zealand. The figures of imports into Samoa show that New Zealand is lagging Generally a long way behind Australia and the United States. Witnesses stated that with the exception of two houses, New Zealand firms did not seem to desire the Samoan trade. The Australians gave a larger range of selection, prices were easier, and the firms more anxious for business. The Commission adds that there was a time when the Island trade was risky, but almost without exception every Samoan trader is now in a sound financial position. The erection of a cold storage plant would assist the trade in beef and mutton from New Zealand. One witness emphasised the necessity of New Zealand merchants paving more attention to the manner or making out invoices and giving better consideration to the kind of merchaudise required. If this is not done, the trade will remain with Australia . and America. Opportunity was presented of capturing the biggest share of a very profitable trade, but so far nothing has been done. Merchants must be roused to a sense of the opportunities they are allowing to pass. Tho Commission comments that this statement is a strong accusation of the lack of business method on the part or New Zealand merchants. Cotton ready-made white suits, and harileaie of all kinds are among the goods readily marketable. The labour problem, however, overshadows the whole question of Samoan trade development. The repatriation of contract labourers has led to decreased production on the rubber, cocoa, and cocoanut plantations. Samoan labour would be better than Chinese if the Samoan would work, but he will not as an employee. The Commission finds the reports concerning the intercourse between Chinese Samoan women much exaggerated. Regulations might be made stricter,, and the enforced repatriation of the Chinese at the end of three years would obviate any possibility of the deterioration ot the native race through the Chinese mixing with thejn. - r The Commission says: “with a judicious selection of imported labour, strict regulations regarding matters .sexual, with improved living accommodation, and increased payments to meet the higher cost of living, with an opportunity for wives to accompany thenhusbands, we think imported labour would be in the best interests of the natives themselves. When, if ever, Samoa increases her native population, when the Samoans learn the science of agriculture and acquire the habit of work, then , the importation of labour may happily be dispensed with.” The Commission finds that the failure of the shipping service has driven the copra trade into American hands, and the trade generally is detrimentally affected. Ths remedy is that the Government should "arrange for a direct service to Samoa, or itself purchase suitable ships for the trade, COOK ISLANDS. The Commission makes recommendations similar to those for Samoa in the matter of the need for a better shipping service to the Cook group, the enforcement* of the regulations regarding the keeping of plantations clean, teaching agricultural subjects in schools, and the establishment 'of a Tropical Branch oi the Agricultural Department. Here, again, New Zealand traders are exhorted to study the requirements of tho group, and to do all possible to replace American trade in piece goods, draper!’, drugs, and hardware, which is increasing, by goods of British manufacture. Tlie sale of intoxicating liquor should be prohibited. NIUE ISLAND.

A better schooner service .is urgently required for Niue. The export of copra should be made a State monopoly, and an increased duty put on copra shipped to foreign countries. The sale of liquor should be stopped and the Nieuens prohibited from engaging in contract labour on other islands.