PACIFIC TRADE.

Taranaki Herald, Volume LXVIII, Issue 16796, 21 July 1920, Page 6

PACIFIC TRADE.

REPORT TO PARLIAMENT. FIJI SUGAR IMPORTANT. , PLANTERS NEED ENCOURAGING. Per Press Association. WELLINGTON, July 20. The report of the commission, comprising Messrs. Geo’rge Elliot (chairman), William R. Pearson, and Thomas Wilson, appointed by the Government to inquire into the condition of trade between New Zealand and Eiji, Tonga, Western Samoa, and the Cook Islands, and rhe best means of promoting and encouraging an increase, therein, was presented in the House to-day. Dealing first with Fiji it is pointed out that practically the whole of .the exports comprise sugar, copra, and green, fruits, and the total value of the exports for 1919 was £1,173,545, of which New Zealand took £882,574. New Zealand takes three-quarters of Fiji’s sugar export and one-third of its bananas. New Zealand is vitally interested in the Fiji sugar industry. 'lhe Colonial Sugar Company is able to buy raw sugar cheaply there, and Now Zealand imposes no duty. Consequently the people of New Zealand are able to purchase fiugai' cheaper than tho people of rny other country in the world. The evidence disclosed the position of sugar cane, growing as unsatisfactory. Much land owned by the sugar company and leased by the planters has been given up, while other land, especially on the Rcwa River, has been withdrawn from sugar cane cultivation. The reasons given are: (1) Shortage of labour; (2) smallness of prices obtainable for tho cane.; (3) unsatisfactory working ■conditions. The Indian contract labour system was abolished in 1916, .and arrangements are now being made to* induce free Indian labour to come to tho Colony. About 60,000 Indians are now in Fiji, many owning land and prosperous. Fiji could, however, gradually give lucrative employment to many times this number. RAW MATERIAL PRICE.

Eight tons of cane are • required to make one ton of .sugar, and the price of cane producing 11 per cent, sugards 15s a ton, with a rise of Is 3d for each percentage above eleven, and a deduction of Is 8d for each point 'below. It was freely otated that if the price was fixed at 20s a ton, with a rise and fall of Is 3d above or below 11 per cent., many planters' would again grow cane, and the output of raw sugar- would increase considerably. The cost of raw material would thus be about £9 per ton of sugar. The committee thinks, however, that if the price were advanced to 17s 6d per ton for 11 pt>r cent, cane, with a rise and fall of Is 3d, large areas would bo brought- back into sugar cane cultivation.

It is important for consumers in New Zealand that the output of Fiji sugar cane should be increased. 1n,1916 Fiji exported 120,000 tons of sugar, while last ’year the quantity had fallen to 64, 347 tone, and the estimate for this year was 60,000 tons. New Zealand depends on Fiji for sugar, .and Fiji depends on the cane cultivation for its existence. There fore, both countries are seriously affected by anything that militates against the maintenance or expansion of the sugar fodustry. Planters are dissatisfied with the conditions under which they work, the price of cane being fixed by the company for only one year, apparently as the company has only a yearly contract with the New Zealand Government. Planters, therefore, cannot know what they are likely to receive for the cane they intend to grow on the land in preparation, and are disheartened. Arrangements should be made with planters for periods of at least three years. ‘ D; 'OPTS FROM AUSTRALIA.

Copra -valued at £469,893 was exported in 1918, mearly all to America, it is suggested that Fiji should put. a higher export duty on this article sent outside, the Empire if it is to be preserved for British industry. Fiji’s total trade last year was valued at £2,931,376, imports ibeing £1,060,314, and exports £1,871,062. New Zealand sold to Fiji in that year goods valued at £151,662, and bought from Fiji good® valued at i 882,574 (most of tho latter being raw sugar). Thus Now Zealand last ycaibpurcliascd nearly half Fiji’s exports, but supplied only about one-seventh of Fiji’s imports .Australia, on tho other hand, sold to Fiji goods valued at £534,974 (one-half her total imports), and bought from Fiji goods worth only £110,414, about one-sevynteeuth of her total exports. Tho reasons for this state of affairs are that Australian merchants cater for tropical requirements and push trade more vigorously than Now Zealanders, and, according to evidence, are satisfied with smaller profits. Australia sends to Fiji, Tonga and Samoa six commercial travellers to one from New Zealand. In the matter of cotton goods Nt-W Zealand’s share of Fijian business should bo fit least equal to Australia’s. Freights, from Britain to New Zealand are no greater than to Sydney, and the harbour changes in New Zealand are less, while the distance from Auckland to Fiji is shorter by onc-third, a.nd the freight slightly cheaper. TONGA’S FRUIT TRADE. Regarding Tonga, the commission considers that,direct shipping facilities would materially benefit both inward and outward trade. Ip 1912, New Zealand -supplied goods valued at £82,826, or- more than half the Kingdom’s requirements. Last year the position was: Australia, £77,739; New Zealand, £68,526; America, £12,991; England, £10,635; and Fiji £6044. Americans advertise goods freely- in Tonga, Australia' following this example, but New Zealand advertisements are few and far between. Unless New Zealand merchants are up and doing the Dominion’s tiado will fail still further back. Tho stoppage of the fortnightly “horseshoe” shipping service (Auckland to the Islands, to Sydney, and Sydney to the Islands, to Auckland), sounded the death knell -of tho Tongan fruit trade. Islanders want this service reinstated now the war is over, and are confident that if this is done the fruit trade will soon bo restored. The commsision however, that this service would hot materially benefit New' Zealand business. At present New Zealand has a tlirect service to Tonga, while Australian goods are transhipped at Suva. Consequently freights iron? Australia are higher than from New Zealand. Tongan officials claim that the opening of a branch of one of the New Zealand banks would benefit trade, and an alteration of the- Awanui wireless station, so as to work direct from Nukualofa instead of via Fiji, would also assist in stimulating business. More satisfactory tariff arrangements with the Tongan Government for goods wholly or partially manufactured in New Zealand might help the development of the .fruit trade. Though the natives’ individual wants are small, tho trade .volume is not inconsiderable,

and is well worth ’.cultivating. Cotton goods are needed and ornaments are popular. There is a growing demand fur flour, sugar, biscuits, tinned saltan meats, and fish, also frozen meat from New Zealand. The Dominion practically holds a monopoly of the tinned meat trade, though some has been imported from other countries when there ha® been a shortage in New Zealand. There is no reason why trade in the following New Zealand made. goods should not be increased: Plain and fancy soaps, stationery, boots,, shoes, wrapping paper, cement, timber, paints, confectionery, leather goods and knitting wool. Australia has the larger share fo the soft goods trade, but New Zealand merchants, with the advantage of a direct shipping service, should be able to recapture business. CARE, OF HEALTH.

' In regard to Samoa the commission urges the importance of dealing wiui the labour question, and an improvement of the shipping arrangements. The greatest care should be exercised in the selection of medical officers in so far as it concerns the preservation of young life, for according to, the rise op fall of the" native population, trade will ho affected. On September 30, 1918, the population of Western Samoa was 38,802, having grown by 5487 in sixteen years. The influenza epidemic at the end of 1918 carried off 8000. With doctors conversant with tropical the native population should he able to show an increase in future years. In addition to the Samoan population there we 1166 indentured labourers and 1660 whites and half-castes.

UNSUITABLE FOR SOLDIERS

Touching on the lands held by the D.H. and P.G. the commission discounts the suggestion that they should be subdivided for disposal to returned soldiers. The cost of the land would be heavy, and without provision for imported labour the soldier would inevitably face loss and disappointment. WLb equal expenditure the soldier would, with less exertion] have a much better chance of making" ends meet in New Zealand, where the, climatic and other conditions are infinitely better. The plantations can be more cheaply managed in large areas, and though -it would be less trouble Ao sell them as soon as possible to the highest bidder the commission suggests the advisableness of the New Zealand Government lidding and developing them for a few years. . . . The commission emphasises the im-. povtance of teaching agricultural subjects in the State schools, .and recommend the formation of a . tropical section of the New Zealand Agricultural Department, having jurisdiction, through the administrator, over the agricultural experts in Samoa. Strict enforcement of the regulation in regard to keeping all plantations clean and free from weeds is .essential. Time in Samoa should bo made to coincide with that of New Zealand. SAMOAN TRADE NOT RISKY. The figures of imports into Samoa show that New Zealand is lagging generally a long way behind Australia ami the United States.. Witnesses stated that with the exception of two houses New Zealand firms did not seem to desire Samoan trade. ‘ Australians gave a larger range of selection, prices were easier, and firms more anxious for business. ’ The commission adds: “There was ’a time when the Island trade was risky, but almost without exception every Samoan trader now is in a sound financial position. The erection of coi l storage plant ivould assist ti ade m beef and mutton from New Zealand. One witness emphasised the necessity of New Zealand merchants paying more attention to the manner of making out invoices, and giving better consideration of the kind of merchandise required. If this is not done the trade will remain with Australia and America. An opportunity was presented of capturing the biggest share of a veryprofitable trade, but so far nothing had boe.u, done. ■ Merchants must be roused to a sense of the opportunity they were allowing to pass.' The commission comments that this statement is a strong accusation of a lack of business method on the part of New Zealand merchants. Cotton goods, ready-male white suits, and hardware or all kinds,, are among the goods readily marketable.

THE LABOUR QUESTION

The labour problem, however, overshadows the whole question of Samoan trade development. The repatriation of contract labour has led to decreased production on the rubber, cocoa and coconut plantations. Samoan labour would be better than Chinese if the Samoan would work, but ho will not as an employee, The commission finds the reports concerning, intercourse between Chinese and Samoan women much exaggerated;'lho regulations might bo made stricter and the enforced repatriation of Chinese at the end of three years would obviate any possibility of deterioration of the native race through Chinese mixing with them. The commission says: •'‘■With judicious selection of imported labour, strict regulations regarding matter's sexual, with improved living accommodation and increased payments to meet the higher cost of living, with an opportunity afforded for wives to accompany hushandls, we think /imported labour would bo " in the best interest of the natives themselves when, if ever, Samoa increases her native population. When Samoans learn the geienoe of agriculture, and acquire the

habit of work, then the importation, of labour may happily be dispensed with.” The commission finds the failure of Sfhe shipping service has driven the copra trade into American hands, and tirade generally is detrimentally affected. The remedy is that the Government should arrange* for a direct service to Samoa, or itself purchase suitable ships for the trade. NIUE AND COOK.ISLANDS.

In regard to the Cook Islands the commission makes recommendations similar to those for Samoa, in the matter of the need for a better Hupping service to the Cook Group, enforcement of the regulations regarding keeping plantations clean, teaching agricultural subjects in the. schools,' and the establishment of a tropical branch of the Agricultural- Department here Again New Zealand traders are exhorted to study the requirements of the Group, and do all possible to replace American trade in pieje goods, drapery, drugs and hardware, which is increasing, by goods of British manufacture The sale of intoxicating liquor should he prohibited For Niue Island the commission says a better schooner service is urgently required. The export of copra should be made a State monopoly, and an increased duty should bo made on copra shipped to foreign countries. The sale of liquor should be stopped, and Niueans prohibited from engaging in contract labour on other '813035.