Overseas Trading

Governor and Bankers In Conference Reducing Gap In Overseas Trading

F>R some time in the 1956-57 period, the income of the Colony of Fiji, derived from the sale overseas of sugar, copra, coconut oil, gold, manganese and bananas, was not enough to pay for the goods which Fiji was importing from abroad.

A year ago, the gap was many millions wide, to the embarrassment of the Government. It still is not closed; but it is much less, and apparently under control.

Meanwhile, there has been a lot of capital expenditure in Fiji, especially on new buildings. In this respect, the face of Suva has been much altered. This money could come from only two sources— namely, domestic savings, or loans from overseas. Both sources could dry up, if there is no overseas trading surplus.

The situation has had the Gov ernment bothered for some time.

During May, there were con ferences in Suva between the

Governor and high officials ofl three trading banks operating the Colony—New South Wales, Zealand and Australia and Zealand. They sought, prims means of reducing that gap overseas trading.

But, in a country like Fiji, t comes a point where the bar step out of the picture, and I it generally to the Administra This point probably has reached in Fiji.

Must Produce More

The Fiji population is growin an embarrassing rate. Ther only one way in which the ecor can be kept balanced—namely, t must be more production, espec production of a kind which either pay for imports from o seas, or render such imports necessary.

Take, for example, beer. Hith all beer consumed in Fiji has o from overseas. The money toi for it must come eventually the sale, overseas, of Fiji’s proo —in other words, from exchs If it comes out of loans arra. overseas, then the loans mus; repaid, in the long run, ouj the sales of Fijian produce, is all as simple as that.

But if the people of Fiji manufacture their own beer, w: their own country, the econi aspect is changed. The beer m. facturers in Fiji derive their re* from goods and/or funds n available within the Colony, so Fiji beer does not call for ovei exchange.

Similarly, if Fiji can produce or dairy produce, or meat, or hv ing material, or anything requ m everyday life (consumer g» in the words of the economist), need to import is correspond! reduced.

Those are the factors o( national economy, reduced to 1 simplest form. In the case of there is one important complies factor,

Australian Capital

Most of Fiji’s major industr: planting, sugar-milling, coc milling, trading, shipping, mil banking, and so forth—were es lished with funds provided 1 overseas. They came mostly 1 Australia, and are representeo the large corporations tra*. planting, milling, banking, mil shipping, etc.—now operating* Fiji.

The earnings from those inr ments must, therefore, eithen sent overseas, as interest on mi invested, or they must accumu in the Banks in Fiji, and further investment within Colony.

If they go out, overseas, excha for them must be found by sale of Fijian products overr If they remain in Fiji—and t

a economic sense, is desirable— suitable investments must be d for them. either event, the increasing md is for more production by so that the needs of that ly growing population can be ded for. at is the crux of the problems dered by the Governor and the ;rs, last month, to a point, investments are found for the profitable use ji’s savings. els are being constructed—and hotels mean more revenue the tourist traffic. (It is just fective to sell Tourism to ; overseas, who bring their 7 into Fiji themselves, as it is sugar or coconut oil to buyers as, who send in their pay per medium of the banks), rushing mill has been estab to add value to the coconut Jts before they leave the y. A tobacco factory and a T, operating in Fiji, tend to the importations from over and correspondingly improve onomy. e Availability of Land these developments, while ant, do not solve the main n. Fiji essentially is a y of primary and not ary industries. If there is to •eased revenue from overseas, it be based on the sale to is countries of Fiji’s primary ts— products of the land and ■ foodstuffs, raw materials, Is, timber, marine products, there we reach Fiji’s Number roblem—how to make more vailable, and how to make e use of the land, quickly to take care of the in ? population of Fijians, i, Europeans, Chinese, and sians? is there is speed in the attack s problem, there could be of social and political (See article on Fiji Land, re in this issue). danger has been recognised, attendant problems studied, it years, by the now retiring 3r of Fiji, Sir Ronald be rate at which it is being by the British Colonial is not in accord with the urgency of the problem.

Government Sums Up

was the Government’s ?-up of the Colony’s 1 position, made late in Banks have, over the last more, followed a policy of ' over loans and advances, has assisted in halting the

rapid rise in imports which had been the trend since 1954.

“Fortunately, the restriction has been in no way violent. As far as can be seen, it will not be necessary for it to reach an intensity that might cause serious repercussions in the economy.

“However, it must be expected to continue until the overseas positions of the trading banks relative to Fiji are again in balance. This can only be achieved by economies in the flow of imports and/or increases m the value of exports.”

There is too much soothing-syrup in that summary—too much tropical laissez-faire. The Government official who wrote it has not taken a look, lately, at Fiji’s vital statistics.