ACTION NEEDED

Hauraki Plains Gazette, Volume 60, Issue 4348, 27 October 1950, Page 8

ACTION NEEDED

SALE OF OUR SURPLUS

WHAT OF THE EAST?

DOMINION’S EXPORT TRADE

The Auckland provincial secretary of Federated Farmers, Mr G. M. Rodger, makes the following comment on the topical subject of the marketing of export surplus, dealing specifically with the potentialities of Eastern Trade.

“It is obvious that New Zealand must look for fresh markets for the disposal of her primary produce. This fact has been very sharply brought to light in the recent dairy price negotiations. “Where are these markets? Intermittently one reads of the possibility of trading with the east, for example, Malaya and Indonesia. Is this glib talk because at the mention pf the East one subconsciously conjures up visions of teeming hordes of coloured people? Unfortunately, howeverthose hordes would require to have sufficient purchasing power in order to pay a reasonable price for New Zealand export surplus. “What is the up-to-date position today? In consideration of Malaya from a trading viewpoint, the Europeans,! Chinese and Indians (excluding Eurasians who are very poorly paid) are more important than the indigenous Malayans who, except for the well-to-do, live -on the land. “The Republic of Indonesia, formerly known as the Netherlands East Indies, has enormous trade possibilities and a complete survey should be at once made. Indonesia, if given the same refrigeration facilities as exist in Malaya, would probably consume at least an equal amount of imported frozen goods per head as Malaya. At the moment, Indonesia is sadly lacking in cold storage facilities. “There is no New Zealand trade commissioner or representative there, which* seems to indicate a lack of initiative on the part of the New Zealand Government, although, on the other hand, it is a matter for argument as to whether or not a trade commissioner is preferable to the indepedent vigour of private enterprise. Many authoritative people hold the opinion that New Zealand has lost very considerable •ground in the East through lack of adequate and virile representation. In fact, the position is probably worse today than it has ever been. “Australia will always strongly compete with New Zealand in Eastern export trade, hence the necessity for having the closest safeguard over costs, particularly in relation to shipping. It is a well-known fact that shipping lines which were previously on the New Zealand run from the East would come back again if port delays in New Zealand were reduced. Until there is a definite assurance on that important score, the great possibilities of New Zealand’s export trade with the East must languish until sheer economic necessity compels New Zealand to take some desperate arbitrary action within its own frontier. Remarkable Tribute “It is a remarkable tribute to New Zealand butter when it is recprded >hat in August, 1945, 6000 European prisoners, after their release from the Japanese, were each given 21bs. of frozen New Zealand (butter, which was in wonderful condition after being in a Singapore freezer for four years. “No doubt much oould be done on a reciprocal trading basis because the EAst has also much to offer us. At the present time, Indonesia is overloaded with coffee. There are large stocks of kapok available. A splendid range of teak and other hardwoods could be ours. There are also a number of other products in the importation of which we should have a strong interest— peper, nutmegs, edible oils, mace, cinnamon and parafin wax, “The barter system of trading is one which is very popular in the East and profitable investigation might be made along these lines. Purchasing would not be done by the Indonesian Government but probably by the big Chinese and Indian houses. “It is interesting to learn that American ships call in and load up with rubber for which they pav in gold dollars which means, of course, that the Indonesians can then buy something in return for them from the U.S.A.

“It is doubtful if there would be any demand for good New Zealand cattle for breeding purposes. Because of the mosquito menace, breeding in the past has not been successful. Cattle might be required, however, for the few Malayan and Chinese farms where all cattle are hand-fed and kept inside most of the time. Hitherto, breeding cattle have been supplied from Australia. The indigenous water buffalo has been crossed with a Jersey to produce a cow which gives a fair quantity of milk but. the tendency is to breed for strength rather than milk production because fresh milk is of little use in the tropics.

'Market For Tinned Meat

“There is a valuable market for New Zealand tinned meat and with the stepping up in wages, there is more available purchasing power which the Indonesians would spend in European food if it could be obtained. Wages have been increased to at least three times the pre war rate. The masses of Java total about 40 to 50 million people and a trial shipment of 100 tons of conjmodities among that number would be very soon absorbed.

“Probably the most valuable and important steps in the dissemination of New Zealand propaganda and publicity would be to invite Indonesian students to New Zealand agricultural colleges, because, they are, essentially, an agricultural people. This, of course, would be put a prelude to the sending of trade emissaries from New Zealand. These emissaries would require to be first-class salesmen with knowledge of their products and provided with the incentive to boost sales. “Immediate action is required if New Zealand is to capture a fair share of Eastern export trade; otherwise she will find herself hopelessly outstripped by Australia when, in effect, opportunity knocks at the door of the Dominion to sweep up trade in the East. But will anything be done?”