TRADE WITH THE EAST

Dominion, Volume 9, Issue 2885, 25 September 1916, Page 8

TRADE WITH THE EAST

A NEW OUTLET I . DAWN OP DIRECT TRADE WITH JAPAN NIPPON YUSEN KAISHA'S PLANS The rising sun of direct trade between Japan and New Zealand and vice versa peeped over the horizon last Friday afternoon, when tho big cargo carrier, Akita Mam, arrived hero from tho fair land of our Ally in tho East. For some time past there have been hints.of the inauguration of a direot service between the two countries, that would foster trade of mutual interest, but tho extraordinary- trade-hampering restrictions caused by ft flaming war-stricken Europe has brought the whole business suddenly to a head, The exclusion of Gormany from tho markets of tho world l ,has been Japan's oppgrtunity, and she is seizing it. In tho last two years Japan has advanced as quickly in the commorcial scale as most other' nations have in a quarter of a century, and her domination of tho Pacific as 'an Ally. of the nation which, still "rules the waves" is portent of a new page of commercial history in thi3 part of tho world. This is evident for the simple reason that if Japan is to.be a -big manufacturing country and a rival to a restored Germany—and it is already evident that such. is her intention—the country with its limited vatural resources must to a great extent depend on supplies from outside. Up to the present this may not have been markedly the case, as Japan has only awakened as a commercial factor in the last ten years, but now that both neutral and Allied nations are begging at her doors for goods which the nimbleminded Japanose ' can supply, there must bo a. demand for raw material essential for the ' manufacture of such goods. That is where New Zealand and Australia t are going to come in. These producing countries have had, up to the present, practically no other market than London—the absorber of all things. Savo for a few bales of wool that havo gone to America, New Zealand has not beon able to find a lucrative market for ber primary produots'anywhere round the rim of tho vist Pacific, though tho people of those lands behind such coasts bo as the sands of the ocean. . •- j A PACIFIC CUSTOMER. I Now has tho groat war opened up I now vistas of trade, and given New Zealand a prospect of 'a customer within the bounds of her own ocean. With half the world 1 knocking loudly _ on Japan's shop-counter to bo served, it may be expected that she will have to come to Australia and New Zealand for such raw materials as wool and flax, to omit for the moment the con-, sidoration of food products. Indeed, trade commissioners, representatives of chambers of commerce, shipping men, Consular agents, and business men from Japan, havo been down here securing all manner of information—the oil that, is-to case, tho doors of trado between, two countries of immense potential importance in tho Pacific. OPENING 'THE TRADE DOOR. . Tho credit for ,opening the door to direct trade belongs to the Nipjxm Yusen Kaisha (Japanese Mail Steamship Co.), which lias had tho question of a direct service' to New Zealand under consideration forsime lime.past. Big orders for goods have been placed in Japan during flic past year, and each month the shipments have become bigger, until Friday,' when the fine cargo carrier Akita-Maru pushed her great bulk across tho waters of Port Nicholson, with something like 2500 tons of cargo in her holds for this country. Ono may be pretty confident in prognosticating that she will be the forerunner of many cargo steamers flying the flag of the Flaming Sun. '. RETURN 1 CARGOES. To a great extent the growth of trade depends on our ability to supply return cargoes for those steamers. Tonnage is very dear just now, and no steamship company can ' afford to allow its vessels to make barren voyages. The hold of every steamer should be filled each way to get the needed results, and that we have what Japan wants in the way of wool, flax, hemp, and tallow, etc., is beyond all dispute. It is for our producers aud merchants to wake up to the chance of creating new markets in a country that we are largely importing from at tho present time. If wq could by our exports to Japan gain a quid pro quo for our imports from that country, it would be an achievement of singular value and importance. Mr. Okita, tho Consular representative of tho Japanese Government, who was in New Zealand a few weeks ago, was very favourably impressed with the inter-trade prospects. To quote one example: Owing to tho woollen mills of the Empire boing given over largely to the manufacture of khaki they had not -been able to make nearly as many blankets, rugs, flannels, etc./ as wore required, and, consequently , many in-i quiries had been made in Japan for such wares. Thoy could not ho made without wool, and neither Japan nor China .were wool-producing countries. So Japan was installing big woollen manufacturing plants to supply a world need, and must have the wool. Many mills wero already operating, but most 'of the output was for the use of tho Russian armies. Mr. Okita also referred to our nhormium tenax (flax), which he believed could be put to many uses by his ingenious countrymen. Then tlicro was always a market for tallow, bones, hoofs, etc. Every inarkot has to be tested, and an exceptional opportunity for testing the Japanese market from the Newi Zealand producers' point of view presents itself in the visit of the Akita Maru. . A PROGRESSIVE COMPANY. Perhaps it would bo interesting to briefly refer to tho company which has had tho enterprise to "open tho ball." The sorvice to Australia of the. Nippon Yusoh Kaisha (lor which company Messrs. Burns, Philp, and Co. aro agents), was inaugurated in October, 1896, tinder mail contract with the Imperial Government of Japan, and a monthly service has been maintained since then with three steamers, between Yokohama and Melbourne, via Kobe, Nagasaki, Hong-Kong, Manila, Zamboanga, Thursday Island, Townsville, Brisbane, and Sydney. Tho service was commenced with threo steamers, each of about 2000 tons, which, however, in a short time were found to be inadequate for tho rapidly-increasing trade, and -"were replaced by threo new steamers of about double size, specially built for the service of high speed and exceptional passenger accommodation, the travelling facilities thus offered rapidly increasing passenger and tourist traffic between. Australia and Japan, which has consequently becomo pno of the favourite tourist resorts, while the steamship connections at Japan, enabling tho through booking of passengers for Europe via Canada or United States, have induced numbers of Home-ward-bound travellers to take this interesting route. GROWTH OF THE TRAM. The rapid development of this trade, and tho necessity of accommodating the

over-increasing passenger and cargo tratlio to and from Australia, necessitated tho building of steamers larger and oven better fitted than those previously employed, and tho monthly mail sorvico between. Japan and Melbourne is now undertaken by the threo magnificent steamers, Tango Maru (6891 tons), Aid Maru (6001 tons), and Nikko Maru (5056 tons). Even theso largo steamers, however, have now been found inadequate for tho increasing cargo traffic to and from Japan and Australia, and during the last year tho monthly mail service has been supplemented by an intermediate monthly servico performed by largo cargo steam-, ers of about 6000 tons gross sailing alternately with tho mail steamers, and thus providing practically a fortnightly service between Japan and Australia. This will show tho rapid development of trade with Australia, and though up to tlio present trade between Japan and Now Zealand has been of comparatively small dimensions, and cargo for New Zealand was shipped via Sydnoy, necessitating transhipment there, there are indications now of considerable development, and it is possible that the Nippon Yusen Kaisha may decide to inaugurate a regular direct line of steamers from Japan to New Zealand, thus providing amplo cargo spaco for the development of New Zealand trade, and avoiding tho disadvantages, of transhipping in Australia. ' Tho vAkita Maru is the first of these steamors, and it is hoped there will ho sufficient inducement to justify the company in dispatching other steamers with cargo for New Zealand direct, and eventually to establish a regular lino between Japan and New Zealand main ports. The Nippon Yusen Kaislm is the largest steamship company in Japan, with a capital of 44,000,000 yen (£4,500,000), of which 27,500,000 yen (£2,750,000) is paid up, and a reserve fund of 39,694,964 yen (£4,000,000), and a fleet, of 93 steamers of 428,012 tons gross, in addition to 9 steamers of .94,300 tons gross now'huilding. During recent years the majority of the company's new steamers have been built in Japan under tho special supervision of Lloyd's surveyors and holds Lloyd's highest class, and tho shipbuilding facilities in Japan are now such that the building of the largest and highest class steamors can ho undertaken. THE AKITA .MARU. ■ In her way the Akita Maru, the first of the Nippon Yusen Kaisha cargo steamers' to como to Now Zealand, is a model of what such vessels should be. She is a vessel of 3791 tons gross, carries 5000 tons of cargo, and steams ten knots, and is an economical vessel

as far as fuel is concerned. She is designed on the simplest plan—two holds forward, two aft, and the engines and living quarters for the officers and ( engineers amidships.. She is a perfectly now steamer, only having been launched at Nagasaki in March last. This is her second voyage south of the line. The. vessel is new, and is in a spick-and-span condition such as one seldom sees in a cargo carrier. Her black hull is relioved by a white stream-line, and Tier single black funnel rises from too pile of gleaming -white-'deck-houses and bridge amidships. In short, the Akita Mam is very tangible proof of the oxcellence of Japanese shipbuilders; Everything about her is modern. Her cargo-lifting gear is up to the minute, and everything about her steering-gear makes for strength and durability. The Akita Mam, which is to discharge the- whqle of her cargo hero, is manned by Japanese. She'loft Yokohama, with officers and crew numbering 54. The number she now carries is one less, ono man having been left behind at Sydney owing to ill-health. When she left Yokohama the Akita Maru had on board 4300-tons of cargo for Australia and Now Zealand, and of that quantity 2477 tons woro landed at Sydney, leaving 2323 tons'to be discharged hore. In order to show thatmany Japanese ports are interested in trade with New Zealand, our representative ascertained the cargo for this country 1498 tons were shipped at Kobe, 151 "at Nagoya, and 674 at Yokohama. The following are the Akita Mam's officers:—Captain M. Tanaka; chief officcr, T. Furniye; second, S. Sakaguchi; third, K. Matsubara; fourth, T. Marakami: chief engineer, F. Nishivania; first, T. Yoshikawa; Second, M. .Tto. AN INAUGURAL DINNER IMPORTERS OPTIMISTIC OPINIONS OF BUSINESS MEN. A dinner in celebration of the coming to Now Zealand of the Akita Maru was given on Saturday night by Captain Tanaka, master of tho vessel, and the firm of Burns, Philp, and Company, managing agents of tho Nippon Yusen Kaisha for Australasia. Tho. guosts included most of the heads of Wellington shipping and trading houses The speeches during the evening, of which thoro were a considerable number, had to do almost entirely with tho possibilities of establishing a direct service of steamers between Japan and New Zealand, and all the speakers wero optimistic as to the prospects. Mr. M'Master, of the Sydney office of Messrs. Burns, Philp, and Co\, presided. - The healths of the reigning Sovereigns of tho Allied Empires were honoured —first His Majesty the King of England, and then His Imperial Majesty tile Emperor of Japan. The second toast was hailed by tho Japanese officers present with the national cry "Banzai Nippon,"- and tho other guests

look up Iho cry, and drank lo the greatness of Japan. The N.Y.K. Mr. T. Young, Japanese- Consul in Wellington, proposed tlio toast of "Nippon Yusen Kaisha." Ho said that ho know very littlo of shipping affairs, but ho happened to have travelled to Japan in ono of tlio N.Y.K. boats. These steamers wore very comfortable, and were generally considered the best line of boats in tho Japanese-Australian trade. Tho N.Y.K. was tho biggest lino in tho East; it was tho P. and 0. of tlio East. The company had about a hundred steamers, and thoy did tlio bulk of tho business between Japan and America on the one side, and between Japan, England, and Australia, on tho other side. For this there were- ono or two strong reasons. The freights charged W'ero reasonable; the company catered well for passengers, and tho ships, which were built in Japan, wore all up to date. He was sure that if tho company thought lit to come regularly to Now Zealand, tho ships would be welcomed. (Hear, hear.) Whether they would come or not would, he supposed, depend on tho amount of business offering. If tho Government could subsidise the.service as tho Japanese subsidised services to develop particular lines of trade, this would ma'Re a certainty of, it. Tho trade of Japan with New Zealand, which a few years ago had been only a few pounds, annually, had increased to about £160,000 or £17,000. If the trade increased at this rate it would bo necessary for some lina to do the trade, and if there wafs to bo a direct line, no better line could bo introduced to New Zealand than the N.Y.K. The company had sent with the "first ship ono of its best captains, an' officer who, as his decorations showed, had seen service as. captain of a transport in the Eusso-itpaneso War. The toast, which was coupled with tho name of Captain Tanaka, was enthusiastically honoured. Captain Tanaka. . The toast was drunk with musical Honours, and in responding Captain Tanaka said that it had been his wish' for several years to visit this beautiful country. He had heard so much about it, and was so greatly interested in it that he eagerly seized tho opportunity of coming to New Zealand. "By the frequent visits of our training squadron," ho added, "wo have received a lot of interesting news of your country, and your kind welcome to them is greatly appreciated by our peoplo at home. What steps we have taken and are taking in regard to the present war

it is quite.'needless for me to say; but you all know well that we are- your true friends, and that wo ever will be. So you may rest assured that we will do our very best, .both for our friendship and our duty. Wo hopo tho war will, soon come to an end. Of course, by inflicting great defeat upon ,our common enemies,, and that wo may- in every possiblo way crush tho strongest of them for tho sake of the peace of tho world. We hope, also, that tho trade between Now Zealand and Japan will quickly increase, not only (during the war, but for many years to come. ■But to speak plainly, wo understand very little of each other yet. So I feel sure that if somo of-lis take an interest in bringing ns closer together, wo cannot, fail to receive, your hearty welcomej'and, personally, 1 think that no ono could do this better than our company. Tho Nippon Yusen Kaisha, or tho Japan Mail Steamship Company, is the,largest and best in Japan. It has a fleet consisting of ono hundred vessels, tho total gross tonnage of which amounts to 500,000 tons, and wo arc building moro ships every year. Its foundation is very strong, and its good reputation is well known all over tho' world. It runs regular liners to Europe, America, Australia, a'nd many other countries, under the Imperial Government subsidy. Its passenger steamers are ail up to. date, and tho safety and comfort of its passengers are well looked after. 'Why had wo not a lino to New Zealand beforo?' you may ask. I presume that it is simply because of your geographical position, and our thinking that it was too far to extend our Australian liners. Tho trade, also, between tho two countries was not too great to start tho direct line. However, New Zealand shippers having earnestly requested a trial trip, induced Baron Kondo, our president, to send a vessel; and tho Akita Mam, under my command, was ordered to visit the port of Wellington for tho first time. _ What course our company will take with regard to this new servico in future I do not know, but I can say wo only desire to meet tho shippers' requirements, and if it proves satisfactory to all, perhaps the service may continue, and thus facilitate the direct trado between New Zealand and Japan.' Anyhow, tho matter seems easier when once started. I wish to convey most favourable reports to Baron Ivoudo. Therefore I earnestly ask you to give me your kind advice with regard to this cntcrpiso, as it will surely interest our president and his colle-sguos; and by this meeting here to-night, I wish, with the kind lieip of Mr. M'Master' and Mr. Ferguson, of Messrs. Burns, Philp, and Co., to express our good feelings towards you, and I hopo our mutual first impressions will bo most favourable. Tho Akita Maru is simply a cargo-carrier, and I must confess only a humble representative of the. fleet. | A better steamer I hope you will sco next time. It may bo rather too late to ask] you this, but please accept tho best wishes and respects to your bravo men at the front, on behalf of our president and other directors. We tako great interest in the war news, and for tho courageous actions of your countrymen we have nothing but admiration. We

all hope- that thoy will keep thoir good health, and will soon bo ordered homo covered with glory. Now, I wish to finish mv speech wishing every prosperity to this British Dominion, and also hoping for even closer connections between New Zealand and Nippon; and, lastly, 1 thank you, gentlemen, for your doing mo tho great honour of being present Tfero to-night. This concluded tho toast list, and ' thereafter tho proceedings became quite informal. A Crowing Trade. Mr. Forguson, local manager lor Philp and Co., joined with Captain Tanaka in expressing a hope that shippers would encourago tho establishment of tho service. Hitherto Japanese goods had boeu coming via Sydney, and he was afraid that importers had not always been satisfied about the delivery of their goods. He hoped that the direct servico would come, for then theso difficulties'' would all bo overcome. Mr. M'Master expressed thanks for the many kind words of goodwill he had heard towards the N.Y.K. and his firm. As they all know, ho had come to Now Zealand specially to .ascertain what the prospects migho be for a direct service hetwaen Japan and Now Zealand. He had made inquiries in Auckland and Wellington, and lie had still to go to the South Island. So far as he could see from # tho inquiries, he had made tho prospects were favourable—(applause)—favourable - for a further increase in trade. At present the trade might not be quite.sufficient to justify the service, and it remained for tho directors of the N.Y.K. to say whether they wore prepared to take the risk of establishing a now service even though cargoes wei'e not big enough tp yield profits; whether they were prepared to faco a certain loss at present, for tho prospect of developing a satisfactory trado in tho future. This was a matter on which he would report to them on his return to Australia. Personally he would like to.see the direct timo established. The New' Zealand irado appeared to him to ho much in.the same position as tho Australian trado was when the service to Australia started some years ago. At the beginning there was barely sufficient trado between Australia and Japan to justify tho running of three small steamers, but it had grown very rapidly into a flourishing trade. If a service wero inaugurated to New Zealand,' it was to ho hoped that the ousinoss between New Zealand and Japan would grow. Tlio outcome would depend very largely on New Zealand importers, Mr. Young had made reference to possible assistanco from the Now Zealand Government. If this

should he given they would ho very grateful for it, and ho hoped they might look for assistance from New Zdalandi importers to that end. (Hear, hear.) "On the Very Best Wicket." Mr. W. Preedy, of Collin and Company, said that he could speak for his own firms and other importing firms in saying that the* Japaneso would come into the Now Zealand shipping trade on the very best 'wicket. Wo had tho greatest admiration for the Japanese. They had behaved magnificently during this war, and we wero ready to buy from them in preference to almost any other nation. They, had a. splendid opportunity in Now Zealand. Only two things -were necessary for the growth of trade between the two countries. Tho first was that there should be ships to bring the goods, and the second was that the Japanese merchants, big and little, must "understand that they must send here tho very best stuff. Tho big firm's in Japan already roalised this, but thoro appeared to be thoso who did not, and tho result was that importers wero sometimes a little bit disappointed with goods when they arrived. Ho offered tho suggestion that some business body' in Japan—say,, the Chamber of ConimeTce —should set' up somo inspection of exports,' to_ ensure that, goods sent out wero what they were guaranteed to be. Jnst now'importers had marvellous examples of business fidelity in Great Britain. British manufacturers wero now delivering goods in New Zealand at prices well bolow the 'present cost of production. Tho British and tho Japaneso had always run together, and if tho Japanese merchant would imitate the British in Seeing that his exports wero always up to sample, a good trade would soon grow. His firm had imported satisfactory goods from Japan, and had done well with them. He believed all tho merchants'here would be very glad, would even go out of their way, to do business with Japan. (Hear, hear.) Other speakers were Mr. C. \V. Jones (Huddart-I'arker Co.), Mr. Press (Thompson Brothers), Mr. H. Sandlant (Cramp and Co.), MY. Osborne (A. S. I'atorson and Co.), and Mr. J. Myers (Myors and Co.). Captain Tanaka Replfts. Captain Tanaka thanked tho speakers for their kind advices. Their complaints lie could understand. To tell tho truth ho had had all the samecomplaints from shipping people in Sydney and Molbourno before, and ho had sent reports about them to head office. There the very best was being done to improve matters. Ho believed that some of the Japanese merchants would improve now, for, as tho proverb rail, it was never too late to mend. He was not a business manhe was a senman—but he took an interest in trade matters, and studied them, because, ho considered it was partly bis duty to introduce his people to us. It was rather difficult always to make tho Japaneso manufacturers understand the "needs of a new trade. Some of them wore very small people. and some of these, ho feared, wanted tu mako their fortunes too quiskly.

(Laughter.) Perhaps if they had more patienco they might do better. Ho thought thoy would understand this later, when all complaints wont through. Mr. M'Mastor also rcspondod. Tho usual compliment was paid to tho hosts of tho ovening, represented by Mr. M'Master and Captain Tanaka, and after i,ho singing of "God Save tho King" cheers woro given for our Allies of Japan. Captain Tanaka and his officers smilingly retorted with "Banzais."