TRADE WITH THE FAR EAST.

Taranaki Daily News, 6 March 1934, Page 6

TRADE WITH THE FAR EAST.

HONG KONG AS A MARKET TRADE DEPOT FOR SOUTH CHINA. LOCAL EXPERIENCE ESSENTIAL. (By Alexander S. Tetzner—No. 7.) With imports valued at over £40,000,000 a year, Hong. Kong (China), one of the most beautiful ports on earth, has . become since its cession to Great Britain the principal port and ocean gateway to South China’s markets. Hong Kong was the site of an exhibition of Australian products and foodstuffs, which took place in May, 1933. The exhibition, which lent itself, particularly to the display of Empire foods, was organised by the British Chamber, of Commerce in Hong Kong, and all classes of goods suitable for Chinese market were shown. A feeble effort to represent. New Zealand, too, for the first time in the Far East, was made in Wellington, but failed. In trying to bring about _ goodwill among peoples by mutual visits, tourist trips, exchange of compliments, etc., nothing concrete will be ever achieved. A real business is necessary to cement the relations and -to give definite trade co-operation and contacts. It is a great pity therefore that we missed the opportunity to open up, on Empire Day, 1933, trade in Hong Kong and in South China.

“I have been over the big stores in Hong Kong, and, while I saw large quantities of Australian and American goods, there appeared, to be nothing from New Zealand,” says Mr. A. McKirdy, who was in. business for 30 years in Hong Kong. Yet great possibilities for tinned goods exist in. Hong. Kong, for instance, and excellent opportunities are awaiting there , for other Dominion goods. There is ho doubt much of the foreign trade is concentrated. in Hong Kong, which is progressing and. developing at an amazing rate. The people of China, comprising the greatest part of the population (825,615 in Hong Kong alone), are the hardest working race in the world, and their merchants possess the strictest integrity. The commerce and trade in Hong Kong is very much in the hands of British, business firms. In the words of Mr. Louis Beale, the British commercial councillor in China, the keynote of the development of trade with China must be investments and cooperation with Chinese interests. PART OF BRITISH EMPIRE. If this is true in respect of China as a whole, Hong Kong, the centre of Western industry and enterprise, with great shipbuilding yards, various factories, the seat of a great Chinese University, and a part of the British Empire, would not require even the exchange of courtesies when claiming its rightful share in the New Zealand import and export trade. This is a trade within the British Empire, and as such, must be encouraged and fostered by our Government, shipping companies and private initiative to the utmost. ’ Though statistics, customs and politics are always separating Hong Kong from China, I cannot very well,..from a point of view of purely commercial relations of our country with the Continent of Asia, visualise China without Hong Kong, and Hong Kong without China. Hong Kong, with the enormous Canton next door, is the entrance port for practically the whole, of South. China, and is responsible for nearly.. a .quarter of the total of China’s trade: .“China will become a great country,” says again Mr. McKirdy, “as she develops so will foreign trade in Hong Kong develop.” As far as 1931... the total imports of foreign goods, to Hong Kong 'were valued at £39,000,600, and of this Australian imports' were valued at £340,000 and New Zealand’s at only £14,165 (of. which £9788 represented the value of fungus, sent from here by Chinese merchants residing in the .Dominion). The exports from Hong Kong to New Zealand for the same term were being valued at £2542.

IMPORTS REQUIRED.

Analysing ‘ the nature of imports required by the port of Hong Kong it appears that New Zealand could easily supply products that, .are needed and for which an ever increasing demand is .manifesting itself. Hong Kong, is growing very rapidly. The depression is not being felt so acutely, in Hong Kong as elsewhere. The population is increasing, both European and Chinese. Kowloon, the suburb of Hong Kong, which was when the writer , first knew it only a big township, lying across the harbour, is now a second city with big ■ buildings, luxurious hotels and a great population. Imports of bacon and ham three years ago totalled 1,260,2631 b, but New Zealand contributed nothing. Butter imports were valued at £44,000, but New Zealand’s share was scarcely over £2OOO. The same refers to the large demands for frozen beef, game, poultry, mutton, lamb, cheese, condensed milk, blankets, hides and skins, upper leather, fancy and toilet goods etc. New Zealand’s share was negligible.

What is necessary, in my opinion, is high-class salesmanship and experienced organisation on the spot Our exporters would be well advised to get in touch with the Hong Kong Dairy Farm Cold Storage Co. Ltd. There is ample room in the cold storages all over the Far East, but they are in hands of private firms and obviously space and goodwill must be obtained beforehand. This can be achieved by local resident New Zealanders, who must see to it in the interests of our trade. The formation of Australian trading agencies and business houses points to the fact that the position is being understood and that concrete steps are being taken by our rivals to distribute their products on a systematic basis. We, in New Zealand, have also the advantage of a very favourable exchange position, but it must be remembered always that operations may be restricted by the high cost of handling products, and profits curtailed by the large percentage demanded by local houses. The formation of New Zealand business firms in Hong Kong is therefore imperative. In this connection it is worth mentioning that an order for waxed loaf cheese for Hong Kong, I believe the first one from Taranaki, was secured in New Plymouth by a British firm, not a New Zealand One. Trade with Hong Kong has enormous possibilities, showing prospects for meat, honey, fresh fruits, vegetables, biscuits, confectionery, woollen goods, footwear, etc., besides staples, as previously shown, in exchange for tea, ginger and even finished articles such as excellent silk stockings, cotton singlets, etc., manufactured in factories, rapidly developing their outputs. The country is giving excellent opportunities for our enterprise, but we must make a point of noting the exact requirements and the methods of competing nations. America’s and Australia’s efforts, without mentioning Japan’s, in particular, should be observed closely and good relations created with traders of all nationalities. The importance of our obtaining a greater share of the markets served by Hong Kong cannot be too greatly stressed.