WELLINGTON NEWS

Hokitika Guardian, 9 April 1930, Page 2

WELLINGTON NEWS

EXPORTS TO THE EAST.

(Special Correspondent.)

WELLINGTON, April 7

Every now and again for years pasi there have been suggestions that N.Z. sliould trade with Eastern Asia, 'lhe Wellington Chamber of Commerce appointed a special committee to consider the matter and the report of that committee will come up for consideiation at the next , meeting the Associated Chambers of Commerce. A correspondent of a Wellington papar considers that it is absolutely essential that there should be a direct shipping service providing adequate refrigerated space. The correspondent thinks that the amount now being contributed to the Bluff -service might profitably be transferred to establish a direct service to the list. A good many business men are obsessed with the idea that it is merely necessary to establish a direct shipping service for trade to develop forthwith. Australia has enjoyed shipping facilities with the East for a number of years, yet Australia s export trade in that direction is very small It is generally considered that Australia should he able to a more valuable outlet for export tiade with the East than she is finding at present. It is stated that one off the causes that militate agamst the success of Australian trade in that direction is the principal trading houses there are usually branches of parent conceins in their country of origin—Holland, Great Britain or, of late years the . United States and it is against their interests to push Australian produce even when they can obtain them at lower prices than in their own countries. If they can obtain them at lower prices than in their own countries they will not buy them elsewhere. Experience has shown that, Australian houses do one or two things when seeking trade in these countries. They either appoint an agent living in the country whose interests are mainly bound up with the existing businesses and to when Australian trade is merely a side line, or- they send a. -.representative from Australia who is in touch with the trade he represents, but is completely ignorant of ,tlie .conditions under which he is expected to do business .in the East and. knows nothing of the language .spoken, with the result that her fore he: is able .to adjust himself to conditions arid:, learn the ,language his principals become discouraged and withdraw him,: leaving the local agent to conduct the business. One observer,, referring to wlmt lie ternis the crux of the posietion, points out that in Java there'are 30,000,000 natives and only 100,000 whites, including 50,000 Urasians who are classed as Europeans by the Hutch. 1 Of the wholesale and retail,trade of Java, the Indies and British Malaya, 99 per cent, is in. the hands of Chinese merchants. An important point is that while tlie 'individual native can only buy small quantities of goods the aggregate purchasing power of' so large a population would he considerable. The only avenue through which this trade could be secured is through the Chinese merchants who are at present practically limited to dealing with the European firms with whom they are in contact. These Chinese traders are financially sound, and a conclusion arrived at is that the attributes of ri'fenccesrJfal trader in the East is the ability to speak Malay fluon, tly, and knowledge of conducting business wit lithe Chinese. As to the nature of the commodities in which a trade could be built up, it is suggnssted that dairy produce, flour, certain classes of woollen goods and machinery, biscuits and jams would, find a healthy trade. N.Z. could supply most of these goods, but could they he supplied on a competitive basis. Trade with the East is not so simple a problem as sonm people consider, at nil events a direct steamer service with adequate refrigerated accommodation is not all there is to it.

X.Z. HEMP

The X orthern flaxmiilers have suggested a scheme for the estabilisation of the prices of N.Z.’hemp and the scheme is just an old one. A subsidy from the Government subsidy and dole are convertible terms for they both mean compulsory charity from the taxpayers. The suggestion of a subsidy was rejected by the Government and that is so much to their credit. The scheme of the Northern Flaxmilltrs Association is to establish an equalisation fund out of which the millers could be subsidised when prices were low and into which the millers would pay when the market