£1,000,000 CONTRACT

Waipa Post, Volume 36, Issue 2148, 24 April 1928, Page 3

£1,000,000 CONTRACT

FOR JOSS HOUSES. A contract worth £1,000,000 was signed in a Perth office a few weeks ago, when Mr Lon Ping, representing i combination of Chinese merchants, arragned for a three years’ supply of sandalwood to be sent at regular intervals at Chinese ports. This contract represents the largest sandalwood contract in the world, and is one of the biggest business deals ever made in the Commonwealth. For over 80 years, the business of the import into China of sandalwood for use in the joss houses and for religious ceremonies in the families of Chinese has been conducted by British houses established in China. Modernising of Chinese, however, has seen a change, for following the boycott of the British trader some two years ago, the Chinese have themselves entered the trade and now seek to save the commission which was hitherto paid to the white trader. Towards that end an association of Chinese merchants is being formed which will work on more or less cooperative principles. Orders will be pooled and shipments carried out in bulk instead of individual lots.

Inquiry in various circles has elicited that although the sandalwood industry has for the last 20 years been rewarded as dying, the largest quantity of sandalwood which has ever left the State has been exported during the last ten years.

Consumption has increased by 2000 tons a year. It is expected during the next three years it may increase to approximately £1,500,000.