SUGAR THREAT.

Star (Christchurch), Issue 16461, 24 June 1921, Page 7

SUGAR THREAT.

* BAN ON SHIPMENTS FROM ' JAVA. TELEGRAM TO MERCHANTS “ IMPORT AT YOUR OWN RISK.” A dispute looks probable between wholesale merchants and the Government over the importation of Java sugar. The following telegram has been received from the Board of Trade by several importing firms: “ Merchants importing Java sugar ! do so at their own risk..” “That can mean only one thing,” ■ said a merchant to-day/ “The Gov- i eminent evidently intend to prohibit ; the importation of Java sugar, afraid ; that it will spoil the sale of Fiji' sugar j purchased from the Colonial Sugar Company. Any prohibition order of i that kind will bo fought, and fought 1 hard. The position is that several merchants bought limited quantities of Java sugar some time ago. Then tho Java market advanced about £2 a ton . and the Java people withdrew quotations. Now they are quoting again, at priefes that will allow retailers to sell at least Id a lh below the present price of 1 Fiji sugar. Naturally many orders have j been booked up, merchants stipulating for 0 good standard sample, suitable in every way for household purposes. A good samplej of Java sugar will pass any day with the general public for best Fiji sugar. “ Merchants generally hold the opinion that the Government lias no show of right whatever to prohibit the importation cf .lava sugar. It has been suggested in some quarters that, as there is ;» limitless supply of sugar in the world, there can he no good reason for the Board of Trade controlling the position to ensure supplies, and entering into another contract with the Colonial Sugar Refining Company. One reason for the importation ban may . be that the Government wishes to make j money out of sugar during the next j twelve months for revenue purposes, j This could easily be done by Govern- 1 ment importation of raw sugar from ! Java or elsewhere, refining it and then selling at, say. £4O a ton. Raw sugar in the Fast must be well under £2O a ton. ’ ’ “ What will be the next develop- ! “ Merchants are going to import all the Java sugar they have on order,” ! said the wholesaler. “We will force ! the Government to free us from this ' proposed restriction. What will con- j ’earners do if -there is cheap sugar on l shipboard at Lyttelton, and not allowed : to he landed because it will disturb the j Government’s scheme? There would j he an outcry that would shako the { Government.” When it was stated in YVeliington j last week that the Government contemplated certain action, tho Hon K. P. Lee (President of the Board of Trade) { refused to make any comment. An- j other point of interest is the prospect | of a new contract between the Colonial j Sugar Company arid the Government, 1 but here again an authoritative state- 1 ment is lacking.