Bright Prospects For Fiji.

Preference for Fijian Sugar. New Market in Canada for Fijian Bananas.

Two developments during the month have altered the whole outlook for the primary producers of Fiji. Britain has granted a valuable preference to sugar produced in Fiji; and there is now a reasonable possibility that a new market will be found for Fiji bananas in Western Canada.

Fiji, with its great natural wealth, its good government, and its pleasant healthy climate, is one of the most attractive sub-tropical countries in the world; and the developments described hereunder are likely to increase the rate of its already rapid progress.

From Our Own Correspondent.

Suva, May 2.

A MOST important day in the history of Fiji was Wednesday, April 20, when the Chancellor of the British Exchequer announced in the House of Commons the welcome news of an in crease in the preference granted to Fiji sugar into the United Kingdom.

The statement marked a definite change in the attitude of the British Government towards the sugar-produc ing colonies, which had almost reached the point of despair as they watched the price of sugar falling and falling, without a stop.

The West Indies got into such a bad way that a Commission was despatched from London by the Labour Govern ment, under the chairmanship of Lord Olivier, himself a Labour Peer. The Colonial Sugar Refining Co., Ltd., sent their senior officer in Fiji, Mr. F. C. T.

Lord, to attend the meetings of the Com mission. The Commission reported in the most definite terms in which any Com mission could possibly report, that un less further assistance was given the West Indian sugar industry it would collapse and, in collapse, would most probably cause the fall of the structure of government in the West Indies.

Despite this grave warning the Labour Government did nothing.

The feeling of the Conservatives on the matter was well-known, and it was expected that some further measure of protection would be afforded the sugar producing colonies. In fact, one might almost say there has been every sign of a complete change in the attitude of the British Government towards her colonies in recent years. Once the colonies were looked upon as unwanted children, to be seen and not heard.

Now, they are being asked to sit down at the same table!

The immediate effects of the prefer ence to Fiji will be that the existing preference of £4/13/4 per ton will be in creased by £2 per ton on 40,000 tons of the colony’s output, and by £1 per von on the remaining 60,000 tons. The scheme lasts for five years, and thus will stabilise the industry on a basis of sugar fetching about £13/4/ in London.

There is certainly not much margin at that price; but any margin at all is preferable to uncertainty and loss.

Details Of The Scheme.

Details of the preference scheme, so far as it applies to Fiji, were contained in a despatch from the Secretary for the Colonies to the Governor of Fiji, and published in “The Fiji Times” of April 21. The despatch was as follows:

The Chancellor of the Exchequer announced in a Budget statement to-day that the following additional preferences will be granted on col onial sugar imported into the United Kingdom. (a) An increase in preference at the rate of one shilling per cwt. on 95-96 degrees sugar, and proportionately for lower and higher polar isations on all colonial sugar consigned from a colony to the United Kingdom. (b) A further special increase of preference, which will be one shilling per cwt. on a pre scribed quantity of colonial sugar as set out below. (i) The further special preference will be granted on 200,000 colonial tons for the year 1932-38, which is rather more than the actual imports of colonial sugar into the United King dom last year. (ii) This quantity is to be divided among colonies having substantial exports of sugar and for the year 1932-33 the division will be on a basis of their average annual exports of sugar to all destinations during the period 1928-30.

Certificates covering amount of each colony’s quota will be issued to colonial governments, which will divide them among its own producers.

We suggest that a reasonable oasis for division among producers is average production for the years 1928-30 but allocations will be left to colonial governments. (iii) Colonial sugar imported into the United Kingdom and accompanied by certificate issued as above will receive special preference at ap

piopriate rates (see iv.). Certificate will be transferable but evidence of colonial origin and consignment from the colony to the United King dom of any sugar which they accompany will be a necessary condition for special preference. (iv) During 1932-33 the special preference will be at the rate of one shilling per cwt. on 95 degrees—96 degrees sugar and proportion ately for higher and lower polarisations. In subsequent years if average sterling price dur ing latter half of any calendar year, of full duty 96 degrees raw sugar c.i.f. Loudon exceeds seven shillings and sixpence per cwt., but does not equal eight shillings, the extra preference to certificated sugar in the following financial year will be reduced by one-half and if such price equals or exceeds eight shillings, no such extra preference will be granted. If price equals or exceeds eight shillings and sixpence the original increase of preference [see (a)] will be reduced to sixpence, and if it equals or ex ceeds nine shillings the whole increase will be withdrawn.

Five Year Scheme.

The currency of the scheme will be five years, commencing as soon as possible in 1932-33 and both the first increase and further special in crease of preference will apply to colonial sugar only.

The certificate scheme has been adopted be cause his Majesty’s Government, while desirous of increasing the preference to colonial sugar by more than one shilling, were anxious to grant the further preference in a way which would

not encourage diversion of colonial sugar from Canada to the United Kingdom. A flat increase of two shillings would have made the United Kingdom preference higher than Canada and might therefore have led to such diversion.

The second one shilling is therefore granted in a way which divides benefits fairly between different colonies and obviates any diversion of trade. The effect of the certificate scheme is that each colonial producer will receive a cer tificate entitling him to special preference on a proportion of his production.

It is not, however, desired that each producer or even each colony should necessarily send that proportion of its production to the United Kingdom, as his Majesty’s Government is anxious to interfere as little as possible with existing channels of trade. The certificates will therefore be transferable from producer to pro ducer and from colony to colony and will be valid on presentation to the Customs authori ties here with sugar originating in any colony irrespective of the colony to which they were originally issued.

For example, a colony which now exports mainly to Canada, e.g., Jamaica, may sell the bulk of its certificates to a colony which ex ports mainly to the United Kingdom, e.g., Mau ritius. To reduce any trade difficulties to a minimum, I trust colonial governments will do everything to encourage and facilitate such trans fers and I shall be ready to facilitate them in London in any way possible.

Fiji’S Quota.

The quota to be allotted for 1932-33 to Fiji will be 40,400 tons.

It is proposed that each certificate shall cover 100 tons of sugar, as a smaller quantity would cause inconvenience to the Customs authorities.

The Customs authorities will, however, be pre pared to consider reasonable arrangements to meet difficulties due to consignments not weigh ing the exact multiple of 100 tons. The certi ficates are being printed and will be sent out for distribution to the colonies as quickly as possible.