Tragedy.

Tonga’S Banana

Contract Collapses and Growers Withhold Supplies.

From Our Own Correspondent.

Nukualofa, Aug. 10.

OUR banana industry is not, unfor tunately, making the progress we anticipated nine months ago.

In your November issue we said, “We understand that the Tongan Govern ment has accepted, for a short term, a satisfactory contract price offered by a Dominion firm of buyers,”

In November, growers were officially informed that a contract had been signed. The Director of Agriculture voyaged to New Zealand and, on his return, it was freely stated in all quar ters that he had arranged the contract to carry the Government through to the end of 1932. The price was 6/6 per case f.o.b. Nukualofa and two ship ments went forward to the Dominion at that figure.

Subsequently, growers were dumb founded to learn that whilst both the Government and the N.Z. buyers were apparently in accord with the terms of the contract, there had been a hitch and the delay had nullified the unsigned agreement. The contract called for the fruit being landed in Auckland at a certain date. It was not so landed and the firm (Messrs. Donald) refused to go on with the arrangement.

Growers and traders at present seem to be fairly unanimous that the Gov ernment (or the advisory body) is a “washout” as far as bananas are con cerned. The trader considers that he should now be allowed to have a shot at buying and selling the fruit himself.

The grower agrees, as he hopes for a better price.

The Government is paying the grower 1/- per case for the fruit, packed, at his nearest country packing station. The Government is getting 5/- per case for the packed product, f.o.b., port of Nu kualofa. Hence the Government, after paying for crates, nails, cartage, etc., get a return of 2/9 per case. They argue, that if the Government paid 2/instead of 1/- the Treasury would still have 9d. per case to offset any loss; put twice as much fruit money in cir culation; give an incentive the na tive grower to double his output and double the present ready money going into the New Zealand banks, where the Government badly needs it at present.

It is a fact that, owing to the low price, the natives are reluctant in re sponding. They refused to fill the quota last month. The July boat was 800 cases short of requirements and the “Karetu,” loading to-day, will probably be 1,000 short.

The fault is the Government’s. More fruit than was required was brought in in June, and the officials refused a con siderable proportion. Naturally, the native growers were indignant and that fact, combined with the low price, re sulted in a sharp falling-off in July and August deliveries. The trouble could have been avoided if the officials had given each group of producers an indi cation of the quantity required.