The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, JANUARY 29th, 1931. TRADE WITH THE EAST.

Hokitika Guardian, 29 January 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, JANUARY 29th, 1931. TRADE WITH THE EAST.

Tub information which the Department of industries and Commerce has collected—-and now issued in a bulletin—relative to the prospects of an expansion of trade between i\ew Zealand and the Dutch East Indies does not promise that results that will be of much value to the Dominion will accrue from the Department’s decision to despatch a representative to those islands for the purpose of investigating the likelihood of the development of a market there for some of our staple products. The Dutch Hast Indies have a teeming population but its wants are simple and, for the most part, are supplied by the application of its own labour to an exceedingly fertile soil. With the exception of about I per cent, of Chinese and a fractional representation of Euro;x'ans, the population consists ot natives, whose diet is conhned almost entirely -to rim or tapioca, locally grown, and lish which is secured Irom the sea that washes the islands. Meat is consumed only by the Chinese and European inhabitants and it is by them, also, that the butter and cheese, which are imported, none being made in the islands, are purchased. About 75,0t)0 tons of Hour are imported annually, mostly from Australia, which has the benefit of a regular shipping

service to the Fast Indies. The pro[ducts ol the islands themselves meet the requirements of the population in respect of fruits and vegetables. Biscuits and confectionery are imported from Britain and Holland. Most or the foodstuffs that, reach the'Fast Indies from Europe and America are marketed through the t rge Dutch firms and practically no business is (1(1111* between ioroign exporters and the local Chinese merchants. Yet tin l Chinese merchants monopolise the wholesale and retail distribution of all these imported products throughout the country. The explanaton of this apparent anomaly lies in the control of credit that is exercised by the large Dutch firms, which generally pay cash for the goods they import while at the same time they give the Chinese merchants, to whom they s f oll, credit ' for an average of about three months. The balance, of trade between New Zealand and the Dutch East Indies is strikingly unfavourable to this Dominion. While we exported to the group in 1929 goods to the value of £19,191 only, we imported goods worth £1,162,706, the principal commodities that were included in the exports being augur, mineral oils, kapok, amt paraffin wax. The largest item in the exports from New Zealand to the Dutch. East Indies is butter, which represented a value in 1929 of £BBOB. fn the same period Australia shipped butter to the value of £621,263 to the group and dried, preserved, and condensliod milk and cream to flic value of £208.202. It would seem that it is in respect of these particular items that the hope of an expansion of the export trade from flic Dominion to the East Indies must to a large extent rest. But it is obvious- that, in the absence of any direct service. New Zealand must he severely handicapped in competition with Australia for the market.