TRADE WITH THE EAST.

New Zealand Herald, Volume LXVI, Issue 20341, 23 August 1929, Page 8

TRADE WITH THE EAST.

OUTLOOK FOR DOMINION. NEED FOR DIRECT SERVICE. /y AN IMPORTANT MISSION. DUTCH LINE OF STEAMERS. Interest in the question of direct trado relations between New Zealand and the East Indies is being stimulated by the yi/ifc to the Dominion of the representatives of a Dutch shipping company, whoso main activities are centred in the Dutch East Indies. The visitors arc Mr. A. J. Pronk, of Sydney, general manager for [Australia and New Zealand of the Royal Packet Navigation Company, and Mr. J. AV. B. Evarls, a director of the company, ylio is on his way to Holland. They arrived at Wellington from S'ydney on Tuescla'y. Tho subject of trado with the East lias been much discussed recently. At the Idsfc meeting of tho Wellington Chamber of Commerce, tho chairman, Mr. E. Salmond, stated tho steps were being taken by a special committee appointed to investigate the possibilities of tho trade. Vie pointed out that during the year ended lluryo, 1927, Australia's exports to the East were valued at £17,000,000. Of that total .£5,000.000 represented products such us wheat, Hour, etc., which New Zealand ■\vas not in a position to supply, but tho balanco of about £12,000,000 represented >vool, butter, cheese, meat, etc. Unless New Zealand had tho means of clirect trade with tho East, it was, of course, apparent, said Mr. Salmond, that she could not hope to competo with Australia for this trado, which was rapidly expanding. This was recognised by the IYimo Minister, who had already stated that he would consider tho question of .subsidising a direct sorvico between New Zealand and tho East. The special commit (eo of the chamber, therefore, would closely investigate the matter and, if in tfyeir opinion New Zealand could secure si reasonable share of tho trado, the chamber would urge tho Government to subsidise a shipping sorvico until tho trade hec-amo stabilised. It was agreed that trado could, not bo possibly carried ton in any volume in tho absence of direct fcteamers equipped with refrigerating ppaco. Direct Trado Prospects. Mr. Pronk, in an interview, said that bo and Mr. Evarls had come to New Zealand to seo for themselves " just how things aro" in respect to the prospects of • clirect trado with the East. "We aro quito unprejudiced ill the matter," said Mr. Pronk, " and wo have come with Absolutely open minds." They proposed to mako tho fullest inquiries while in New Zealand, and to interview producers and exporters and harbour authorities. While in Wellington they would discuss with tho Prime Minister the questions involved. ■They would not have time to visit tho E'outh Island, but would go on to Napior and Auckland. After pointing out that Australia, jvhich was well served by several shipping lines, including tho Royal Packet (Navigation Company, by direct services to the Dutch East Indies and the Far East, had a very considerable export trade, to those parts of the world, Mr. (Pronk said that New Zealand was greatly .handicapped by having no direct service. The heavy charges involved in first shipping goods to Australia and then transhipping there tended to practically kill the Dominion's chances of getting a footing ill tho export trado with the East. Mr. Pronk said he considered that, .given a direct service, there were exceldent prospects of developing a trade in dairy produce, while tho Dutch East Indies had tea, sugar, kapoc, fibres, coffee, cocoa, and other commodities to /offer. There was a great and growing demand for butter, both tinned and frozen, in the East. Singapore was well supplied with cold storage accommodation. There were cold stores at Batavia arid Samarang,- and one was being built jit Sourabaya. Cold storage plants were - developing at many places in the East, but no very great trade in perishable /foodstuffs was really possible until this side of the business was properly developed. There was, however, a'good and growing demand for butter, milk, fish, meat and fruit. Growth of Austialian Service. In regard to meat, Mr. Pronk said Europeans were eating more meat, but there was still a certain prejudice against (frozen meat to be overcome. The native [populations, too, were beginning to eat Inore meat, but, of course, there were religious obstacles in regard to the killing and preparation of meat for consumption to be overcome. Very large quantities ,f)i" meat were now being consumed in the Philippine Islands, and in the years to corrio this would tend more and more to be tho. case in other parts of tho East. Apart from the purely trade aspect, said Mr. Pronk, there was a great future for the passenger and tourist traffic between New Zealand and the East. During the last 20 years this class of traffic /bad greatly developed in Australia. It ,vvas in 1908 that the Java-Australia line ,\vas inaugurated by tho steamers Le Ma ire and Van Spilbergen, of 3250 tons gross register. Tho growth of traffic was Such that in 1913 the Tasman and Houtxnan, 5000-ton steamers, specially built for the service, were placed in the trado. Sinco 1920 the Royal Packet Navigation Company had developed tho sorvico to such an extent that very much larger ships were needed to cope with tho passenger traffic and tho cargo trade. It ■was then decided to build the Nieuw Zealand and the Nicinv Holland, and these magnificent ships were placed in tho service last year. The greater speed of these ships made it possible to extend she service to Bolawan Deli and Penang.