Relationship with China poised to move to a new level
Minister for the Ministries of Marine Resources and Education, Hon Teine Bishop has returned from China greatly encouraged from securing undertakings from the Chinese in regards to fishing and pearls.
Bishop spoke with the Times on Friday morning. He provided this snapshot of his visit to China. Further details will be released when time permits. The photos are courtesy of the Minister.
The Minister said his impression is that our economic future lay with China. He said they sought access to our ocean. His belief is that the Cook Islands stood to benefit more from a relationship with China.
The Minister said underpinning the success of his visit was the paper signed by the Cook Islands in 1997 recognising the One China Policy. This document, said the Minister, formed the basis of talks with the various Chinese officials and representatives.
In China, the Minister signed access agreements for exploratory fishing with the Distant Waters Branch of the Chinese Fishing Association, a private company, and the Bureau of Fishing which is a government body.
The Minister said the Chinese Fishing Association now holds 17 of the 20 exploratory licenses for Big Eye Tuna and Swordfish. The return to government is $810,000 per year. Over the three year term of the license, the return to our government is $2,430,000.
In another development, the Luen Tai Fishing company plan to process Cook Islands Tuna loins through either Vietnam or China for sale on the NZ market under a Cook Islands brand name yet to be decided by way of a public competition. At point of catch the loins will be frozen to minus 60 degrees to preserve quality. The loins will be targeted at Cook Islanders living in NZ as an export product from the Cook Islands. They will be sold at a wholesale price with buyers re-selling at retail elsewhere but at affordable prices. The proposal is that the sale process be controlled by a division within the Ministry of Marine acting as a business unit aiming to return a 5 per cent dividend to government.
Bishop said the Luen Tai company were eyeing Penrhyn as a base for its fishing fleet. A fuel tanker based there would provide vessels with fuel and the airport may be used by the company’s three 737 jet cargo planes to fly out tuna.
In the area of pearls, the Minister said China had made great strides and advancement through scientific research.
The Chinese have perfected a technique which sees up to 20 pearls being produced in a single shell. Also, they have a technique for moulding designs within the pearl shell.
The Chinese pearl market is huge said Bishop.
One development is that floats and ropes are to be supplied direct from the Chinese manufacturer to our pearl farmers, making big savings on costs. Some Chinese Professors and students from the Shanghai Ocean University will visit Cook Islands pearl farms and research our needs. There has been discussion on student exchange. Bishop reports the University is keen to take in Cook Islands students. Shanghai Ocean University has over 30,000 students and is devoted to Marine Sciences. Courses are run in English.
The Chinese, said Bishop, are growing pearls in the millions by utilizing large inland lakes. Each strand has two layers of pearls and is placed one foot below the surface. Fish are farmed in the same lakes.
Bishop said growth was occurring all over China simultaneously not just city by city. This stops people shifting from one place to another in search of jobs. This growth is based on partnerships between the private sector and government. He calls it a form of social capitalism.
He said more foreign workers were being brought in because China’s one child policy meant these children were going into high paid office based positions leaving Indonesians and Singaporeans to be brought in to fill other positions. More Chinese companies were outsourcing work to other countries such as Vietnam as labour costs were being driven up in China. For Instance Luen Tai has a base in Guam.
Bishop said the number of young, smart, highly educated young people in top positions was very noticeable. He said the Chinese are very conscious of status for instance while most meetings were conducted at round tables, those with status had subtle indicators of such for example a different napkin.
A great deal of business was conducted by cell phone said Bishop. When dining at a restaurant, tables were placed so that conversations at tables could not be overheard. -Charels Pitt

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