Papuan Sugar.

Progress of Sangara Scheme.

OWING to the depression and con tinued uncertainty about Australian financial conditions, the promoters of the Sangara sugar scheme —the pro duction of sugar on a large scale in north-east Papua—have further post poned their flotation.

Probably the postponement will not be lengthy. There is a powerful Lon don group interested in the scheme, and British financial conditions are im proving rapidly. Recent news from London indicate that British money is again becoming available in substan tial amounts for sound investments.

The Islands seems to have a peculiar attraction for “wild cats,” and wise in vestors will carefully scrutinise every flotation with an Islands basis. But, so far as our information goes, the Sangara project is in a different cate gory. Reputable people, with immense practical experience of Papuan condi tions, and with a far-reaching know ledge of the sugar industry, are con nected with it, and their main concern seems to be to produce cheap sugar in quantity, rather than get rich quickly at the expense of the gullible public.

The promoters have acquired 20,000 acres in north-east Papua, around the back of the excellent deep-sea port of Buna, and here they propose to culti vate the Badilla —the excellent, indi genous cane of Papua. They have first class soil, permanent streams, a rain fall of 130 inches, abundant timber, and an inexhaustible supply of native labour. They have 40 acres already under test plantation, with highly sat isfactory results.

It is urged, against the scheme, that the world already is over-supplied with sugar, and unprotected sugar-growers are starving. The Sangara people reply that the conditions surrounding their enterprise are so favourable that they can produce profitably, and show a sat isfactory dividend at the present prices —on which other sugar-producers are making no profits at all. They do not propose to enter the protected Aus tralian market: they can do very well, they say, by entering the world’s free market without bonus or subsidy.

Mr. Tom Nevitt, of Papua, one of the promoters of the scheme, was in Syd ney during March but has now re turned to the Territory. He is inclined to urge the early establishment of the industry on the ground that the sub stantial advantages given by the ex isting low scales of costs would more than offset the disadvantages of the financial depression.

A Disturbing Report.

There was a disturbing report ,in Sydney during March that Mr. W.

Beckett, a well-known promoter of commercial enterprises, was busy in London trying to interest British capi tal in a Papuan sugar enterprise. It is to be hoped that, for the sake of Papuan development, there is no truth in the report. There is nothing wrong with the Papuan sugar enterprise: but Mr. Beckett’s history and ass 'ciations do not suggest that he is the most suit able man to take any leading part in such an enterprise,