Pacific Trade

Prospects

Fiji-Samoa-Tonga

A Strong Spirit Of

Optimism

Written for The Pacific Islands Monthly

by Sir Maynard Hedstrom I CAN SPEAK, on trade developments and prospects, only of the three groups in which I am personally interested —Fiji, Samoa and Tonga.

Business in Fiji is depressed by the very low price of our primary products; but there are other factors which give hope for the future.

Though our sugar is selling at, or below cost of production, the Colonial Sugar Refining Co. Ltd. continues its policy of expansion and consolidation, and continues to expend money in improvements which are intended to effect permanent reduction in the cost of production. The policy of establishing peasant farmers as growers of sugar is working out very successfully, so that when the pendulum swings and world production and consumption become more nearly balanced, the Colonial Sugar Refining Co. Ltd. will be in an excellent position to take advantage of the improvement in market conditions.

The copra producer, also, is having a rather “thin time” and, in the case of the small man, the selling price is almost below the cost of production. On the other hand, the output of the Colony is steadily increasing—partly owing to the successful work of the entomologists of the Coconut Committee.

Producers will have to study economy during the present period of depressed prices and, when the market recovers, they will benefit substantially by the increased production per acre.

Owing to floods, last December, banana shipments have been greatly reduced; but that is a temporary condition, and shipments will be back to normal about the end of the year.

Butter And Pineapples

Our little dairy factories are fully supplying local requirements, and we are exporting regularly to Honolulu and Canada.

The shareholders in the two small pineapple factories have confidence in the ultimate success of that industry.

Probably, by January next, the Hawaiian Pineapple Co. Ltd. will have come to a decision as to whether they will commence operations on a commercial scale on the land over which they hold options. They have studied the proposition very carefully and, if they decide to establish themselves in Fiji, there can be little doubt that the venture will be successful.

Our aim here is to get greater variety in our products, so that we may not be entirely dependent upon one or two lines, but build our prosperity on a broader basis.

Public finances are very sound, but undoubtedly the Government will have to cut down expenditure during the next year or two, in this period of low prices. Because our exports are always substantially in excess of our imports, producers have benefitted considerably by the exchange position.

The number of tourist visitors increases year by year, and, this year, we have been favoured with exceptionally good weather, which has delighted our visitors.

Position In Samoa

In Western Samoa the financial position is not unlike ours in Fiji—they depend upon copra and cocoa, and trade is affected by the low prices of these two products.

On the other hand, their export of bananas is increasing steadily, and the shortage in Fiji has given Samoa an excellent opportunity of competing in the New Zealand market.

Tonga’S Good Record

The little island kingdom of Tonga is entirely dependent for revenue upon its copra production — consequently it feels the results of the depressed mar-

ket more severely than either of the other groups.

Here, also, the Government is endeavouring to encourage the production of bananas. There is no difficulty about producing excellent fruit. The trouble is transportation, and the Tongan Parliament has indicated that it is willing to consider a small subsidy to any vessel which will carry bananas regularly to New Zealand.

Owing to careful administration, under the guidance of the British Agent and Consul, the Tongan public finances are in a very sound condition — it is probably one of the few governments in the world which has an actual cash balance in the Treasury.

Speaking generally, it seems probable that these three groups will, in the future, do an increasing volume of trade with Great Britain, Canada and New Zealand, which countries give some preference to their products. ... ———

Sir Maynard Hedstrom