Papuan Rubber

Plea That Permanent Preference Will Establish Flourishing Industry.

From Our Own Correspondent.

Pt. Moresby, Feb. 20.

THE residents of Papua heard with no little concern and some apprehen sion that the rubber importers in Australia are applying for the removal of the duty on rubber entering the Com monwealth.

Owing to repeated demands for as sistance from the rubber producers in Papua in 1930, the Australian Govern ment on November 6, 1930, imposed a duty of 4d. per lb. on all rubber enter ing Australia except from Papua and New Guinea. With this preference and the low cost of production, due to a long campaign in economy, the planta tions here were able to carry on, and even when the London price dropped to the dismal figure of 2½d. per lb. in August, they managed to cover ex penses somehow.

The cost of production in Papua varies from 5.8 d. and 6.98 d. per lb., f.o.b., Port Moresby, and up to 8.54 d. landed in Sydney—so with the present market price in London 2 15/16d. per lb., it is Impossible for the different plantations in the territory to carry on, if the duty were lifted.

Sir Hubert Murray, the Lieut.- Governor, who has been in Canberra, has declared that the removal of the duty would kill the rubber industry in Papua, and would most probably bring about a financial collapse of the Terri tory and a consequential financial loss to Australia, which would no doubt have to find an increased subsidy to Papua. It is estimated here, that the removal of the duty would be a loss of £45,000 to the Territory. The effect of losing this sum out of the small amount of money now coming in would be ruin.

Sir Hubert Murray, on his return from Canberra, remarked on the im possibility of the Commonwealth allow ing Papua, the only colony, to go to the wall. Further, he stated, “If on the other hand, preference were adopted as an integral part of the Commonwealth territorial policy, rubber growing would become a certain and payable proposi tion. Planters could then count on a firm market, at a reasonable price; con fidence in the future of the industry would be restored; and fresh areas would be developed, until the output would be sufficient to supply the Aus tralian demand.

“There is an abundance of good rub ber land in Papua and that territory alone could supply Australian require ments, if planters could be sure of a reasonable price.”

The Federal Government has decided to continue the preference on Papuan rubber for at least another year.

It is interesting to learn that sharks are being caught off Dauko Island, near Port Moresby Harbour, for the purpose of curing the fins and hides for export —as a sideline and livelihood.