TRADE WITH FAR EAST

Waikato Times, Volume 115, Issue 19203, 13 March 1934, Page 2

TRADE WITH FAR EAST

CREATION OF MARKETS

OTHER COUNTRIES’ PROGRESS

NEW ZEALAND MUST WAKE UP. (II. —By Alexander S. Tetzner). It was said that “export trade is national insurance," and it is certainly true that a policy to do business wherever business can be done in any part of the world gives a trade insurance against quotas, restrictions, tariffs, panics, depression in any one place and directs into our home life a fresh stream of Interest and enterprise. The man who has a market in Great Britain, in the United States of America and in Europe, as well as in the Far East and Latin America, is pretty sure that If he cannot sell his products in one place, he can sell them to another.

The same applies to countries. Having many markets they have taken the best kind of Insurance against hard times for national business, for the employees and incidentally for their bankers, suppliers and business men. There is no doubt that the economic plight of our country for several years can be directly traced to' the total absence of alternative markets and to the policy of “having all our eggs In one basket." Scope for Exports. The case for opening up immense markets in the Far East is based, consequently, upon the next argument of the necessity for developing New Zealo.nd’s export trade in all directions to a point where it will have the capacity consistently to absorb the annually increasing production of exportable commodities. The creation of new markets In the Far East must be regarded with particular favour, since the majority of the products which our country is best able to produce and export take a very substantial place in the list of imports into China, Hongkong, Japan, Strait Settlements, the Phlllipines, the East Indies, as well as Into Burma, Slam, India and Ceylon. . . Instead, the Government Statistician informs us that certain countries in the Far East are probably regarding New Zealand (amongst scores of countries with which they are trading) with particular favour, because their imports into our country are steadily growing. The figures, expressed in percentages,

Foreign Sales Increased

Other nations have not neglected their opportunities for selling their goods to countries in the Far East and to expand markets In various directions. If we look at the statistics for the last decade we will find that Canada Increased her Imports into Japan, China and Manchukuo. In the same period the United States maintained her second place, Increased her percentage and Increased her sales in value by nearly 100,000,000 taels In China alone. Germany, whose sales were considered too Insignificant to indicate specially, sold over 5 per cent of the whole lately.' East Indies in 1920 sold less than 14,000,000 taels in China, and now are selling around 60,000,000 taels. Italy, France and other countries also greatly augmented their sales in the decade under review. And our sister Dominion (and rival) Australia realised from her sales to the Far East last year over £22,000,000.

Australian statistics show that trade with Empire countries was increased to GO per cent of the whole. The number of countries with which trade was conducted was 131,0 f which 4i were British and 90 foreign. Australia shipped to Great Britain only 57 per cent of her exports last year, as against 8G per cent New Zealand is sending. Japan was Australia’s best foreign customer, taking over li per cent of the exports.

The Problem of Transport. It appears that the principle of developing trade interchange in all directions and expanding commercial relations with as many countries as possible Is firmly laid as a foundation of the activities of all countries at the moment, except New Zealand. Perhaps this fact explains why Senator Massy Greene, on his return to Sydney after concluding a trade agreement between our country and Australia, remarked that New Zealand apparently failed to realise as soon as Australia the need for grappling with the situation. The desperate abasement of prices for our primaries must startle us into realisation of the vital necessity of sea power. Transportation Is the twin brother of trade. There is some ] 2,400 nautical miles to steam from here to London, as against 4 000 to the Par East. This fact, by itself, must be considered one of the best arguments in favour of developing our trade, first of all, witli countries nearest lo us and requiring, perhaps, three times less lo effect the same turnover of goods and commodities we are now carrying on with the farthest end of the world.

Direct Freight Routes. “If you look at a map of the world," said Mr L. J. Schmitt, New Zealand Commissioner in Australia, recently, “you will see that Australia has regular direct services with countries to which New Zealand can only claim irregular, infrequent and in some cases no services at all.” Mr Schmitt recommended to make a start v»lth a regular service to and from New Zealand, calling at Queensland, the Philippines the East Indies, Malaya, India, Ceylon, Suez and the Mediterranean ports. As it stands td-Cay, New Zealand can use four different channels to convey tier goods to the ports of the Far East, but there Is only one direct boat to India, Hie s.s. Narbada, the others requiring transhipment cither at Sydney or at Honolulu. Needless to snv. freights are out. of any proportion’. and Miough comparing favourably with Australian freights to the Far’ East, are still uneconomic in some instances. However, the advantages i of distance and values at the oilier I end are compensating us for the i moment. The fact remains that | there are no markets nearer and betj ter than the teeming ports of the I Ear East. With our moral right to claim reciprocity. with the obvious necessity of spreading our external trade, and with the shortest distance existing from our pods, tin' enormous and open markets ! nf the Empire and foreign countries ! in the Ear East arc undoubtedly cnl- ! line our attention over and above all I other.

(To be continued).

are as follows: — 1933 1930 1931 1932 East Indies 1.S8 3.42 3.45 3.72 Japan .. 1.31 1.23 1.89 2.52