Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, FIRDAY, JULY 13, 1935. TRADE WITH THE EAST

Poverty Bay Herald, Volume LXII, Issue 18756, 12 July 1935, Page 4

Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, FIRDAY, JULY 13, 1935. TRADE WITH THE EAST

The possibilities of developing Now Zealand's trade with the. Eas-t wa? discussed this week in an interesting and informative manner by two visitors of standing, one a prominent Japanese journalist and the other an ollieial of the Institute of Pacific Relations. Studying the question from different angles, both these gentlemen arrive at the same conclusion—that the economic prospects of the East are not fully appreciated and that Xew Zealand is not making the most 'of the opportunities" that exist. It is suggested, not for the first time, that the natural centre of the world's markets is shifting from Europe to the Pacific, but although this view may easily-he supported in theory it is not yet borne out to any marked extent, by actual experience. The enormous population of Asiatic countries, however, coupled with the remarkable economic, changes that arc being wrought by them, does encour age the view that great-.variations in the distribution of trade are possible. At the present time, and probably for very many years to come, the Dominion must continue to regard Great Britain as the chief customer for her produce, but that there tire llinitn tions in this sphere has been clearly demonstrated-in recent months, and it was never more apparent that new markets must be sought with increasing vigor. In ■ this -connection, it is easy to point to the fact that Japan, with a population of nearly 100,000,000' —more than twice that' of Great Britain —and China, with close to 500,000,000, provide remarkable scope for a country with produce to sell, but t-he actual oportupity foi trade is much more apparent than real. The primlary difficulty, of course, 'is that tlie.se people of the East, although they claim the. oldest civilisation in the .world, are not yet civilised to the extent of requiring the class of foodstuffs demanded bj Western 'countries, and On- the sue cessful‘disposal 'of which Xew Zealand's prosperity depends. Through long-centuries they have acquired the habit of living on the most simple diet, chiefly rice, and .it will prob ably require further centuries before the great'bulk of the population-can be expected ,to cultivate a taste for a more diversified and luxurious menu, and, equally important, have the general standard of living sufficiently raised to lie able to afford it. These are the fundamental problems to be overcome bpfore the East can lie re gnrdyd as a potential market with a value even remotely related to its population. The Japanese journalist. Mr. Sato, is particularly enthusiastic about New Zealand’s chances of de veloping a market in his country, and not a little critical of what- he terms our conservative business methods. Tie i.s inclined, however, to disregard several most important factors. Jn the first place, comparatively few of his countrymen are able to buy those tilings which we desire to export. The wage of the average working man is only about equivalent to what a Xewj Zealand family would spend on meat alone, and the result is that the Japanese does not eat- such things as moat; and butter. Another point, is that the depreciated Japanese currency, which makes it so easy for the manufacturers of that country to dump their goods till over the world makes it impossible for Xew Zealand to develop a large export trade. If the Xew Zealand dairy-farmer, for instance, is to receive a shilling a pound for his butter, the Japanese worker, than whom there arc few poorer in the world, - would have to pay something like two shillings lot it. A country with a low standard of living obviously cannot be a large importer of foodstuffs. This is borne out by the fact that in ISI.T’. imports by Japan, With (wise the population, were only one-sixth of those b« Britain, a point which suggests that as a general customer one Briton it worth more than a dozen Japanese Tt has to be remembered, however, that the bulk of Japanese imports an raw materials for her factories, am’ actual experience shows that one Eng lishman spends more in Xew Zealand than do fifty Japanese. This is aposition that, cannot he remedied by trade negotiations alone, for it i fundamental, and any alteration is do pendent on an almost complete revision of Eastern standards. The sec ond visitor to whom reference wamade, Mr. Carter, gives an assurance that transformations are .taking piece in the East, and that; with, the gradual evolution of now standards the prospects of a largerexport trade will increase. Xew Zealand’s op portunit.ies, therefore, would seem ic lie in the future rnthot than in the" present, but that is no reason why any chance of even a comparatively small immediate opening should not be. availed of. The Dominion is urgently in need of now markets, and the need will be even greater in the years to come than they are to-day.' for our prospective development must !>n governed by our ability, not merely to produce more, but to be'able to sell it. * Ultimately those markets will be found On the East, .and even though it may he looking n long way ahead the Dominion would bn well lepaid by establishing a firm cornier-, •lion without further delay. Immediate results may not be,easily .obtained, but the attempt; would bo-justi-fied without them, and it is hioic than likely that V little more initiative, would -assist .-.in cultivating the

Eastern markets, and it should, at least, have the effect of firmly establishing; New Zealand produce in anticipation of the demand that must eventually arise. Action in this diitection offers an exceptional opportunity for the newly-established Executive Commission of Agriculture to exorcise its wide powers in marketing organisation. ■