Nipa.

Power Alcohol From

Beware of Under-capitalisation.

The Pacific Islands Monthly has already drawn attention to the possibilities of extracting alcohol from the Nipa palm of Papua —an in dustry that is successfully carried out on commercial lines in the Philippine Islands.

I would not say that such a pro position is easy. The spirit, of course, is obtained from the fermented sap by a distillation process, and the chemical reactions, etc., are quite de finite, presenting little difficulty to an expert chemist.

But the gathering, storing, and pre serving of the sap till ready for treat ment is the real problem.

For any company with small capital, the proposition would be useless. Only a company with large financial re sources would have a chance of success. I estimate that a company would require £250,000 to handle the proposition in Papua in a successful manner. Companies with insufficient capital become an annoyance to officials, native employees, and themselves.

Given ample capital, capable man agement, and scientific control, it would be a good paying venture. Probably the natives would bring the sap in in dependently to a central distillery, as is done in the Philippines.

It is a proposition similar to that of sago for alcohol —the same difficulties and disadvantages, and nearly the same treatment and plant.

There are plenty of nipa and also sago palms in Papua, and good, re liable native labour, but a capital of £250,000 must be assured. The causes

of most commercial failures in Papua have been insufficient capital and. inexperienced, management.

J.G.F.