ISLAND TRADE.

Taranaki Daily News, 21 July 1920, Page 5

ISLAND TRADE.

DOMINION'S PROSPECTS. SOURCE OP CHEAP SUGAR. GREATER TRADE URGED. By Telegraph—Press Association. Wellington, Last Night. The report of the commission, comprising Messrs. George Elliot (chairman), William R. Pearson, and Thomas Wilson, appointed by the Government to inquire into the conditions of trade between New Zealand and Fiji, Tonga, Western Samoa, and the Cook Islands, and the. best means of promoting and encouraging an increase therein, was presented in the House to-day.

Dealing first with Fiji, it is pointed nut that practically the whole of the exports comprise sugar,, copra, and green fruits, and the total value of the exports for 1910 was £1,173,545, whereof New Zealand took £882,574. New Zealand takes three-quarters of Fiji's sugar export, and one-third of its bananas. New Zealand is vitally interested in the Fiji sugar industry. The Colonial Sugar Company is able to buy raw sugar cheaply there, and New Zealand imposes no duty. Consequently the people of New Zealand are able to purchase sugar cheaper than the people of any other country in the world. The evidence disclosed the position of sugar cane growing as unsatisfactory. Much lana owned by the sugar company and leased by the planters has been given up, while other land, especially on the Rewa River,' ha 3 been withdrawn from sugar cane cultivation. „ The reasons given are: (1) Shortage of labor; j (2) smallness of prices obtainable for the caie; (3) unsatisfactory working conditions. The Indian contract labor system was abolished in 1916, awl arrangements are how being made to induce free Indian labor to come to the Colony. A_bout sixty thouaanct Indians I are now in Fiji, many owning land and prosperous. Fiji could, however, gradually give lucrative employment to many timef*this numbqj;. I INDUCEMENT TO PLANTERS.

Eight tons of cane are required to make one ton of sugar, and the price of can producing 11 per cent, sugar is 15s a ton, with a rise of Is 3d for each percentage above eleven, and a deduction of 1« 8d for each point below. It was freelv stated that if the price was fixed at 20s a ton, with a rise and fall of Is 3d above or below 11 per cent., many planters would again grow cane, and the output of raw sugar would.lncrease considerably. The cost of the raw material would thus be about £!> per ton of sugar. The committee thinks, however, that if the price were advanced to )7s 6d per ton for 11 per cent, cane, with a rise and fall of Is 3d, large areas would be brought back into sugar cane cultivation.

It is important for consumers in New Zealand t]mt the output of Fiji sugar cane should be increased. In 1916, Fiji exported 120,000 tons of sugar, while last year the quantity had fallen to 64,347 tons, and the estimate for this year was 60,000 tons. New Zealand defends on Fiji for sugar, and Fiji depends on the cane cultivation for its existence. Therefore both countries arc seriously affected by anything that militates against the. maintenance or expansion of th» sugar industry. Planters are dissatisfied with the conditions under which they work, the price of cane being fixed by the company for only one year, apparently as the company has only it yearly contract with the New Zealand Government. Planters, therefore, canhot know what they are likely to receive for they intend to grow on the land in 'preparation, and are disheartened. Arrangements should be made with planters for periods of at least three years. WHERE AUSTRALIA BENEFITS.

Copra valued at £469,593 was feuported in 1918, nearly all to America. It is suggested that Fiji should put a higher export duty on this article aent outside the Empire if it is to be preserved for British industry. Fiji's total trade last year was valued at £2,931,370, imports being £1,000,314, and, exports £1,871,062. New Zealand sold to Fiji in that year goods valued at £151,062, and bought from Fiji goods valued at £88*2,574 (most of the latter being raw sugar).

Thus New Zealand last year purchased nearly half Fiji's exports, but supplied only about one-seventh of Fiji's imports. Australia, on the other hand, sold to Fiji goods valued at £530,974 (one-half her total imports), and bought from Fiji goods worth only £110,444, about; oneseventeenth of her total exports. The reasons for this state of affairs are that Australian merchants cater for tropical requirements, and push trade more vigorously than New Zealanders, and, according to evidence, are satisfied with smaller profits . Australia sends to Fiji, Tonga, and Samoa six commercial travelers to one from New Zealand. In the matter of cotton goods, New Zealand's share of Fijian business should be at least equal to Australia's. Freights ,from Britain to New Zealand are no greater-than, to Sydney, and the harbor charges in.New Zealand are less, while the distance from Auckland to Fiji is shorter by one-third, and the freight slightly cheaper. [ ' PROSPECTS IN TONGA. * Regarding Tonga, the commission considers that direct shipping facilities would materially benefit both inward and outward trade. In 1912, New Zealand supplied goods valued at £82,826, or more than half the Kingdom's requirements. Last year the position was: Australia £77,739; New Zealand, £68,520; America, £12,991; England, £10,035, and Fiji £6044. Americans advertise goods freely in Tonga, Australia following this example, but New Zealand'advertisements are few and far between. Unless New Zealand merchants be up and doing, the Dominion's trade will fall still further back. '

Tile stoppage of the fortnightly "horseshoe" shipping service (Auckland to the Islands, to Sydney, and Sydney to the Islands, to Auckland), sounded the death knell of the 1 Tongan fruit trade. Islanders want this service reinstated now the war is over, and are confident that if this is done the fruit trad,; will soon he restored. 'Che commission points out, however, "that this service would not materially benefit New Zealand business. At present New Zealand has a direct service to Tonga/while Australian goods arc transhipped at Suva. Consequently freights from Australia are higher than from New Zealand. Tongan officials claim that the opening of a branch of 'one of the New Zealand banks would benefit trade, and an alteration of the Awanui wireless station, so as to work direct with Nukualofa instead of via Fiji, woiild also auiit in stimulating

HEALTH PROBLEMS. More satisfactory tariff arrangements with the Tongan Government for goods wholly or partially manufactured in New Zealand might help the development of the fruit trade. Though the natives' individual wants are small, the trade volume is not inconsiderable, and is well worth cultivating. Cotton goods are needed and ornaments are popular. There is a growing demand for flour, sugar, biscuits, tinned salted meats, and fish, also frozen meat from New Zealand. The Dominion practically holds a monopoly of the tinned meat trade, though some has been imported from other countries when there has been a shortage in New Zeala.na, There is no reason why trade in the following New Zealand made goods should not be increased: Plain and fancy soaps, stationery, boots, shoes, wvrapping paper, cement, timber, paints, confectionery, leather goods, and knitting wool. Australia has the larger share of the soft goods trade, but New Zealand merchants, with the advantage of a direct shipping service, should be able to recapture business. In regard to Samoa the commission urges the importance of dealing with the labor question, and an improvement of the shipping arrangements. The greatest cave should be exercised in the selection of medical officers insofar as it concerns the preservation of young life, for according to the rise or fall of the native population; trade will be affected On September 30th, 1918, the population of Western Samoa was 38,302, having grown by 5487 in sixteen year* The influenza epidemic at the end of 1018 carried off 8000. With doctors conversant with tropical diseases, the native population should be able to show an increase in future years. In addition to the Samoan population there are 1166 indentured laborers, and 1680 whites and half-castes. SAMOAN TRADE, Touching on the lands held by the D.H. and P.G., the commission discounts the suggestion that they should he subdivided for disposal to returned Boldiers. . The cost of the land would be heavy; and without provision for imported labor the soldier would inevitably face loss and disappointment. With equal expenditure the soldier would, with less exertion, have a much better chance of making ends meet in New Zealand, where the climatic and other conditions are infinitely better. The plantations can be more cheaply managed in large areas, and though it would be less trouble to sell them as soon as possible to the highest bidder the commission suggests the advisablenes of the New Zealand! Government holding and developing them for a few years. The commission emphasises the im-' portance of teaching agricultural subjects in the State schools, and r»commends the formation of a tropical section of the New Zealand Agricultural Department, having jurisdiction, through the administrator, over the agricultural experts in Samoa. Strict enforcement of the regulation in regard to keeping all plantations clean and free from weeds is essential. Time in Samoa should be made to coincide with that of New Zealand.

The figures of imports into Samoa show that New Zealand is lagging generally a long way. behind Australia and the United States. "Witnesses stated that with the exception of two houses New Zealand firms did no seem to desire Samoan trade. Australians gave a larger range of selection, prices were casier,«and firms more anxious for business. The, Commission adds: There was a timo when the Island trade was risky, but almost without exception every Samoan trader now is in a sound financial position. The erection of cold storage plant would assist trade in beef and mutton from NOKf Zealand. One witness emphasised the necessity of New Zealand merchants paying move attention to th% manner of making but invoices, and giving better consideration to the kind of merchandise required. If this is not done the trado will remain with Australia and America. An opportunity was presented.of capturing the biggest share of a very profitable trade, but so far nothing had been done. Merchants must be roused to a sense of the opportunity they were allowing: to pass. The Commission comments that this statement is a strong accusation of a lack of business method on the part of New Zeamerchants. Cotton goods, readymade white suits, and hardware of m kinds are among the goods readily marketable. THE LABOR QUESTION.

The labor problem, however, overshadows the whole question of Samoan trade development. The repatriation of contract labor has led to decreased production on the rubber, cocoa, and cocoanut plantations. Samoan labor would be better than Chinese if the Samoan, would work, but he will not as an employee. The Commission finds the reports concerning intercourse between Chinese and Bamoan women much exaggerated. This regulations might be made stricter and the enforced repatriation of Chinese at the end of three years would obviate any possibility of deterioration of the native race through Chinese mixing with them The Commission says: "With judicious selection of imported labor strict regulations regarding matters sexual, with improved 'living accommodation and increased payments to meet the higher cost of living, with an opportunity afforded for wives to accompany husbands, we think imported labor would be in the best interests of the natives themselvss when, if ever, Samoa increases her native population. When Saaioans learn ■the science of agriculture, and acquire the habit of work, then the importation of labor may happily be dispensed with.'' The Commission finds the failure of the shipping service has driven the copra trade into American hands, and trade generally is detrimentally affected. The remedy is that the Government should arrange for a direct service to Samoa, or itself purchase suitable ships for the trade.

In regard to the Cook Islands, the Commission makes recommendations similar to those for Samoa, in matter-of the need for a better shipping service to the Cook Group, enforcement of the regulations regarding, keeping plantations clean, teaching agricultural subjects in the schools, and the establishment of a tropical branch of the Agricultural department here. Again New Zealand traders are exhorted to study the requirements fo the Group,, and do all possible to replace American trade in piece goods, drapery, drugs, ,and hardware,'which is increasing, by goods of British manufacture. The sale of intoxicating liquor should be prohibited. For Niue Island the Commission says a better schooner service is urgently required. The export of copra should be made a State monopoly, and an increased duty should be put on copra shipped to foreign countries. The sale of liquor should be. stopped, and Niueans prohibi* ted from engaging in contract labor on ' other Islands,