SUGAR.

Hokitika Guardian, 9 March 1922, Page 4

SUGAR.

THE FIJIAN INDUSTRY,

AUCKLAND, March 4. ■ Fiji being built up on sugar, that beautiful' tropical Crown colony is filing the present slump pretty badly. There was a cable the other day stating that a million tons of Cuban sugar had been offered in the United States at £9' per ton. When one remembers that not so very long ago the price was £7O and £BO, it will be realised that the sugar-producing countries will have rather a dull time before the markets readjusts itself to post-war conditions. There is a tremendous surplus of sugar in the world amt this is most unfortunate for Fiji, where the prosperity of the people is so closely bound- up with the prosperity of the Colonial Sugar Company. It wa s announced recently that the company had issued a warning that wages were to come down to the pre-war .tevel, the reason- being that, having to face world competition, the company oould not go on paying the present costs. At present the price of sugar is controlled by the Government in New Zealand, but in normal times the Sugar Company has no protected market such as the Hawaiian mills have in America. No one knows Fiji better than Sir Maynard Hedstrom, who was a through 'passenger on the Makufa recently, l>ound ; for Australia on a short visit accompanied' bfy' Lady 'Hedstrom. When- he was seen concerning Fiji’s problem, he said the notices of the company reducing wages came into force last Saturday, two days before the Makura left Suva, so it was impossible for him to say how the Indians were taking it. The wages were being reduced from 2s fid to Is fid a day. was found impossible to face the world' competition on the high costs of production which had soared! as the result of war conditions. It would la'ie some few weeks before it could bo found out whether Is fid a day was i I\ing wage for the Coolies. Unfortunately, the difficulty was accentuated by the fdct that, although there was c.eli a big slump in sugar, the cost of living iir tlie islands had not gone down in the same proportion. The rice which was the staple food of the Indian labourer, the mustard oil which was one of the ingredients in this curry, were still high in price, and clothing and boots, which doubled and trebled during the war had not yet got back to pre-war prices. Having in mind that on a previous occasion during an Indian strike New Zealand' had to send down the Tutaiiekai with some of the men of tho permanent force, Sir Maynard was asked if he thought there was any chance of active opposition from the Indians. He replied that he thought it unlikely. Many of the Indians were intelligent men, and realised that costs had to come down. It was just a question whether the Indians as a whole would adapt themselves to the now wage conditions, or whether they would ap- •, l v in large numbers to lie repatriated in their own country. Some time back there was a ra- ! her incoherent rush back to India mi the part of a number of coolies, b. t most of them finding conditions very hard in India., had asked to be sent back to Fiji.

In answer to a question about rubber, Sir Maynard said it was all a matter of cost. When rubber trees were first planted in the group, it was a moot point whether or not they would stand a hurricane. Oddly enough, the trees which had been knocked about in a blow were the very ones that now showed the most vigorous growth. It seemed as if nature came to the rescue and the tree adapted itself to its new environment. There was no question about Fiji being able to grow rubber; the only point was whether she could compete against the cheap labour in the Federated Malay States. Indian coolies went to the States at the rate of about 60,000 a year, and worked for ten annas a day, about lOd a clay, against tlie Is Od per day which before tlie war was Die wage in Fiji. Speaking generally about business in tlie group. Sir Maynard said the period of readjustment to the new world conditions was bound to be a difficult one. He was not at all pessimistic about the future of the colony which was full of possibilities but be thought it would take a year or so before matters got back to normal.