Fiji, Tonga Shocked By Nz’S

rade Balance Trouble

[?]Lanned Blitz On Banana Imposts

Whatever the outcome of New Zealand’s effort to reduce overseas spending by slashing imports of tropical fruit, it is certain that there will be no more fruit from faraway places for New Zealanders for some time to come: No more bananas from Ecuador; pineapples from Hawaii; or citrus from the Middle East. But those most rocked by Prime Minister Nash’s bombshell of January 2 were Fiji and Tonga banana

producers.

WEN had there been no change i of government at the recent New Zealand general election it was rtain that action was imminent reduce the depletion of overseas nds, but the announcement of a per cent, cut in fresh fruit im rts from areas outside the New aland currency zone caused shock d consternation to the New Zea id fruit trade and to growers and ippers in Fiji and Tonga.

Most extraordinary feature of the lasure was that it was apparently :en without any reference to, or isultation with, anyone in those rritories. As soon as the fruit de in New Zealand had had time absorb the announcement, which s made on January 2 and became active from the previous day, the ongest possible representations re made to the government linst the measure by both the olesale and retail trade, rhe Governor of Fiji, Sir Ronald rvey, on behalf of the Fiji Gov ment, sent a radio message to the me Minister of NZ pointing out hardships which the Fiji banana iustry would suffer if NZ put its lana restrictions into effect.

Ir. Nash replied that an urgent .ruination of the position would carried out immediately.

Production Down

Ip until the end of January there 1 been no further developments, the case of Fiji, the 25 per cent. , which was to be based on 1956 jorts, would be particularly un ', as banana production was m by at least 200,000 cases from recent average due to widespread nage to crops by bad weather that r. hit there would be other seri effects. iji has a very strong historical im to favourable consideration R New Zealand, having supplied t market for the past century. 3 whole industry has been based the New Zealand market —there no other at the present time— I New Zealand fruit importers r e operated a steady campaign, r recent years especially, to en rage Fiji growers to extend

their plantings and improve the quality of the fruit.

The effect of a cut at this stage would be a severe blow on the morale of the growers and New Zealand would certainly lose face, even though the Government had not had anything to do directly with encouraging the Fiji banana in dustry.

Less Planting

New Zealand importers know that imposition of this restriction, even if only for one year, would almost certainly result in a reduc tion in plantings and a turning away from the crop which they have worked so hard to encourage.

The Pacific banana crop is, of course, almost entirely native grown.

The cut might also have a seri ous effect on the Union Steam Ship

Company. They have a new vessel, the Tarawera, of 1,750 tons dead weight cargo capacity, now build ing in Hongkong and due to enter the Islands service next August.

This vessel has been designed especially for the fruit trade and built at the urging of the New Zea land fruit importers. It would be uneconomic to divert the ship to the general cargo trade.

Western Samoa will be uneffected by the restriction and will even benefit, as there have been occasions in recent months when Samoan shippers have protested that in sufficient cargo space has been allocated to them in comparison with that reserved for Fiji shippers.

In this connection there should be food for thought on the part of those people in Western Samoa who may be over-anxious to cut the New Zealand apron strings. The favoured treatment now enjoyed will probably cease in a few years time.

As far as Island growers are con cerned, the restriction will effect only Fiji and Tonga. The latter has also been encouraged to extend banana plantings in recent years.