The “Two Miles’ Limit”
pp. 43-46 · Read in the full issue
Zoned Trading System Is Subject of Lively Argument in T.N.G.
By R. W. Robson
VERY uncertain and therefore unsatisfactory position exists in New Guinea in relation to what is called the “two miles’ trading limit”; and, unless a solution is found satisfactory to the four main interests concerned—the European planters, the native growers, the principal traders and the Administration—there will be repercussions far beyond the borders of the Territory.
Conferences between the Administration and the interests concerned have been held since the Administrator returned to Rabaul in mid-November.
OUT of New Guinea there come two classes of copra—plantation-produced and native-grown. There are huge areas of native land carrying coconuts, and the Administration’s policy is to encourage natives to cultivate the palms and produce copra.
Native copra is disposed of in various ways: but the chief channel—and the kernel of the difficulty under discussion—is the native trade store. Here, the native receives cash for any dried copra, green copra or coconuts which he may bring in, and is supplied as required with the various manufactured goods and foodstuffs which he requires. Traders are licensed to (a) sell merchandise, (b) buy c °P^ a ; . .
At the beginning of the Australian Administration, the policy was followed of leasing the established trading stations to the Chinese: but this led to serious trouble. Copra values were high in 1922- 23, and the traders were eagerlv seeking every available pound of the commodity Before long it was found that natives were regularly, and on an increasing scale, stealing nuts and green copra from the Europeans’ plantations and selling them to the traders.
The position was aggravated bv the Administration’s policy of granting annual trading licenses on a wholesale system Annual licenses are distinct from licenses to trade at old-established stations, which usually are on freehold or long-leasehold land near European plantations or large
villages, and which mostly are in charge of responsible men. Cut-throat competi tion developed between annual licensees and old-established traders; ridiculous prices were paid for native copra; the natives themselves were seriously dis turbed in their usual good relations with Europeans: and thefts from plantations became rampant. Figures showed that plantation production generally was shrinking, while the copra sold by certain traders as native grown was increasing.
There was no doubt about what was hap pening.
In 1923, in protection of the Expropria tion Board’s properties, the authorities took action. It was decided that no addi tional trading licenses be granted, to ope rate within two miles of the borders of a plantation.
About this time the plantations were sold by the Expropriation Board to indi vidual planters, mainly returned soldiers; and, in the great majority of cases, the established trade stores contiguous to the plantations, instead of being leased to Chinese, were also sold to these planters.
Thus they not only grew their own copra, but they also make a small regular profit from their trade in native-grown copra from the surrounding districts. These trade-stores became a recognised part of the planting industry in New Guinea.
These new conditions stopped a good deal of the trouble. As the annual licenses expired they were renewed, but
under strict competition; trading was partly influenced by the established stores; and the position, while still having undesirable features, was stabilised.
• Case For And Against
THEN arose the cry against the system which has continued ever since, and which is the Administration’s main em barrassment. It was said that the system
of restricted trading stations creates a monopoly, with the result that the natives are exploited, especially in regard to the purchase of their copra.
The planters, on the other hand, directed attention to many evils which had their origin in the continued exist ence, right on their boundaries, of the small traders with annual licenses.
Defendants of the Administration’s policy say that there is no doubt that certain unscrupulous planters who held trading licenses did “make it a welter”: with the result that they brought discredit upon the system, and grave troubles upon the other planters, who were acting de cently and honourably by the natives.
In 1927 the Administrator decided to abolish the two miles limit. That deci sion caused great alarm among planters, who foresaw the return of the 1923 con ditions. They appealed to the Minister at Canberra (Mr. C. W. C. Marr), and the latter decided that the two miles limit should remain.
Deciding Upon A Policy
THE matter still was under argument when General T. Griffiths became Ad ministrator in 1932. He, early in 1933, appointed a Board of Inquiry to make recommendations to “govern the future Administration policy regarding the sys tem of native trading.” The Board, in May, reported in favour of “zone trading” (practically the two miles limit).
There were protests. The Administra tor appointed another committee, in Sep tember, 1933, to go over the evidence, arguments, and recommendations of the Board and report. The committee con curred generally with the Board. The recommendations included the abolition of all annual licenses within the two miles limit —they were not to be renewed.
Those recommendations were considered by the Administrator’s Advisory Council and accepted: and they became the basis of the existing Trading Regulations.
They, naturally, were accepted by the New Guinea public as “the future Ad ministration policy”; they formed the basis of contracts; and plantation and trade-store conditions *were rearranged accordingly. Traders were confident that the zoning system had come to stay.
A Bombshell
T ’’HE new Administrator (General W. R.
McNicoll) threw a bombshell early in 1936 when he announced that the Griffiths policy and regulations would be aban doned. the zone trading system abolished, and that there would be substituted there for what has been described as a “hap hazard roving pedlars’ system.”
The announcement caused great con sternation among the planters and the commercial firms, who are convinced that if the Administrator is given his way the planting industry will be partly disrupted and fundamental values very seriously disturbed. Urgent appeals to the Ad ministrator and to Canberra have resulted in the zoning system being allowed to continue for the present: but the planters are anxious and weary—and, incidentally, they are showing considerable antagonism to the Administrator who, they say, neither understands nor sympathises with their conditions.
There have been discussions in Can berra, and conferences have been taking place in Rabaul.
The Administrator’S Problem
THE outsider can understand something of what is influencing the mind of the Administrator. He believes that, in cer tain localities, the native copra-producers
have been heartlessly exploited by the European planter-traders; and, as is well known, General McNicoll is extra ordinarily sensitive on the matter of his responsibility for the protection of the native races in New Guinea, In that respect I found in New Guinea a growing conviction that this Adminis trator is giving too much attention to the natives, and too little to his equal respon sibility for the proper development of the Territory’s resources —a belief, in fact, that one is being sacrificed to the other.
The better class of planters say that the Administrator is very honestly trying to do the right thing, but that he is not suffi ciently assisted in policy matters by cer tain departmental heads in Rabaul, who have .very little real understanding of planting and trading conditions, and whose sympathies certainly are not with the non-official Europeans who are try ing to do a job of work in New Guinea.
They say, in other words, that the Ad ministrator is too readily influenced by departmental heads, and that he should insist, as General Griffiths did, on his own good judgment having precedence.
The Planters’ Proposals
THE New Guinea planters frankly have admitted that there have been evils in the zoning system. But they are ask ing that, instead of abolishing the sys tem, the Administrator should protect existing interests—that is, the funda mental planting interests—by exercising a stricter control over trading licenses.
They insist, as practical men, that it would be quite easy to fix a fair price for native copra, and to police the opera tion of the licenses. The planters, I understand, are urging the introduction of a system under which it would become a punishable offence to overcharge or under pay a native, in defiance of schedules which the Administration would prepare.
Reason seems to be on their side.
The zoning system is a common one, which operates satisfactorily in a number of industries. Many years ago Sydney newspaper managers were driven to dis traction by the conditions existing among newsagents’ shops—irregular deliveries and service, no control over the character of agents, recurring losses owing to men getting credit and running away. So the managers got together, divided the city into blocks, and gave one block each to selected men. The system is strictly policed by a committee of newspaper managers, and by the Newsagents’ Asso ciation. Improper service to the public on the one hand, and unsatisfactory ac counts on the other, are promptly re ported to the two committees and, if proved, result in the cancellation of the license, or “block.” Why could such a system not be operated in New Guinea, to control native trading, and for the pro tection of native producers?
Australia’S Interests
THE alternative is not pleasant to con template. If the zoning system goes, and the parts of the Territory now en joying protection are over-run by small fiercely-competitive Chinese traders, it is inevitable that European trade will suffer severely.
The Chinese will most certainly intro duce more goods of Asiatic origin, and Australian trade will suffer accordingly.
If the Administration does not already appreciate the fact, Canberra should re mind Rabaul that it is Rabaul’s duty to assist Australian trade in every way Some recent incidents suggest that Rabaul is so concerned with keeping one eye on the natives, and the other on the comic opera in Geneva, that it has no time to study developmental needs and Aus tralian commercial interests. If that really is so, Rabaul is due—and properly so—for an early and rude awakening.
A Real Danger
THE most serious effect, however, will be social, and will be seen in the native villages near plantations.
Copra is valuable again. The small, irresponsible traders will encourage the natives to bring in copra and nuts. The European plantations certainly will be raided. The planters, naturally, will pro tect their interests; and this fact, and the bitter trade competition, will cause un pleasant “incidents.”
The majority of planters maintain good, friendly relations with contiguous villages —they make themselves responsible for the welfare of the natives —and those re lations will be destroyed. This is not imagination—it happened before, and it will happen again.
Surely the Administrator can devise a system by which he can obtain the good
will and co-operation of the planters in.
ofth? plantoTare^ilTreep^ns
very anxious to co-operate with the Ad ministration, rather than fight it.
Australians, for their part, may not ignore the Administrator’s difficulties. He has a huge, rich, half-explored Territory to open up, and a million natives—mostly primitives—to protect. He often has to deal with Europeans who think only in
terms of their pocket, and who, if allowed, would exploit and enslave the natives. He is nagged at by missionary bodies, who always are trying to influence the course of Government, for one reason and an other.
And, to cap the lot, he has on his hands a community of Chinese, who are increas ing at a disconcerting rate, and whose main ambition is to perch themselves on a kerosene case in a trade store some where, and spend the lazy days dickering with the natives.
Those Chinese are a real problem. It may be that actually they are at the root of the “two miles’ limit” trouble. Per haps the Administrator believes he can get rid of those Chinese youths, swarming in Rabaul, by giving them “an open go” in the trade store business.
The Chinese problem is so big that it needs an article to itself: but it is certain that it cannot be solved by allowing the Chinese to take charge of a great part of the Territory’s distributing industry, at the expense of the Australian traders and merchants.
Rev. N. W. Lowing, of Ilford, Essex, England, arrived in Sydney by the Jervis Bay on November 16, en route to Thurs day Island to engage in mission work.