TRADE WITH JAVA

New Zealand Times, Volume XLIX, Issue 11302, 30 August 1922, Page 7

TRADE WITH JAVA

HR. P. E. TEPPEMA REPLIES. (To the Editor N.Z. “Tiroes”). Sir, —Kindly allow me to reply to I the letters appearing in your issues of the 15th and Ulst under t.he heading “Trade with Java.” The New Zealand business men are keen and smart, and naturally they will weigh the various aspects of business between their country and the Dutch East Indies before considering possible relations. Your correspondent, however, appears to stand in need of some elementary business knowledge, and I am glad to supply him with the following particulars in reply to the three points raised by him. Shipping.—There is a way of iag regular shipments from Java by utilising the Union boat from Calcutta which every two or three months comes to New Zealand via Singapore, Batavia and Samarang or Sourabav.a. There is no direct freight the same way, but that i 3 a question the New -Zealanders must look into. If they investigate the Eastern market and find that they can sell their goods in the East Indies, shipping facilities will undoubtedly he forthcoming. Finance. —New Zealand has no direct communication with Java banks but then imports and .exports in the. East are all financed through London. This means that those buying in Java would have to provide credit in London and those selling in Java would have to obtain payment in London. The Dutch bankers in Java do not like this arrangement but English Iron its will not do business in any other way. London is still the great clearing hatd'e. of-tliA world, .and since Dutch banks.cannot operate here there is simply no other :vay of financing trade. Legal.—The question as to whether British or Dutch law would apply depends on the question r.s to where the contract has been made. Artralia does a trade worth llj millions sterling -with us, and during my r.i:ic years residence in Melbourne end : ; due;.- I have not come acrots mc:t chan half a dozen litigations. The reason for my visit is nr- that our regular markets arc icy, i i L reason is that the Pv.ti’i Mast ]'''!■• . produce more foodst .Ls and ru uirAoriais every year, that a vig : s development of the so-called i.'ut’yirg Possessions (Borneo. SumaJrr, Celcles and New Guinea! has been initiated, amd it is for this nat.r. at in. reuse of production that- nmarkets .uiu-i he found, especially there where ideal circumstances warrant and favour this. I cannot only suggest but state that there are several products wlii h. however unpalatable this may be : your correspondent, c.lll only be obtameJ from the .NiM.heri.inds East indies. First quinine. (Java controls t’o per cent, of the world's production). Secondly kapek. (All kapok going to the U.S.A.. England. Australia aiui New Zealand comes from Java: Briti-dt India onlv producing very l.ttle o, inferior quality). Thirdly, the all-impor-tant mineral oils like oenzir. etc. The only countries that- can supply the Dominion economically are tire Dutch East Indies and the U.S.A. Two concerns control tho world's mirket, the noval Dutch Petroleum Co. and the Standard Oil Co. Of the capital, IS. million sterling. <’! the former nvnpany about half is in British lir.r.ds. Fourthly sugar, whirh is bought in Java whenever the Fiji crop rail«. Fifthly tobacco, especially the Sumatra leaf, which is used "he world over as tho wrapper par excellence for cigars, etc. Finally* there are no exchange difficulties worth mentioning when dealing with British and Dutch currency, there being only about 7 or S per cent, appreciation of the Dutch guilder (normally ls 8d). Your correspondent may rest assured that my c.,untry lias aTI tho gold it wants and that it does not require anv more, the go’d reserves of the Netherlands Tinnk now amounting to over 50 millions sterling. P. E. TEPPEMA. Consul-General for ’V Vetliorlanda. Christchurch, August 2-'>th.