Rubber Growers

Papuan

Apprehensive.

From Our Own Correspondent

Pt. Moresby, July 28.

PAPUA is apprehensive as regards her rubber industry, now that the nego tiations between the Dutch and British producers and their respective governments have definitely broken down.

One reads, however, that the British section of the world’s rubber producers are far from pessimistic and regard the present problem as being purely tem porary, though they admit in the ad justment weaker companies must go to the wall.

The industry will have to work out its own salvation, without the prospect of compulsory limitation. They con sider the Government should be con gratulated on the courage they have shown, “in refusing to commit the Brit ish section of the industry to any scheme which was not internationally and equitably based.”

Further, they believe once the natural corrective is in action, though the re sults may appear depressing, the in dustry will gradually reform and adjust itself from within.

Apart from the economic depression, which affected the consumption of rub ber to an alarming extent, the collapse of the market within the last few years is attributed by the British producers chiefly to the defeats of the Stevenson scheme, which are now only becoming fully apparent. By that scheme, the price of rubber rose to extravagant

heights, which gave an unhealthy stimu lus to new extensions and developments.

Asiatics in the outer concessions of Dutch East Indies feverishly developed vast areas, which resulted in widely scattered, unregistered, and unsurveyed areas of native lands being planted with rubber.

By 1930, it was found to be impos sible to control the production of these areas and, even if trade had followed its usual course, the consumption to day would have been inadequate to ab sorb the extraordinary supplies due to this stimulus.

The Australian Government, owing to repeated demands for assistance from the rubber producers in Papua, in No vember, 1930, imposed a duty of 4d. per lb. on all rubber entering the Common wealth, except from Papua and New Guinea. The rubber importers in Aus tralia early in the present year applied for its removal.

Sir Hubert Murray, the Lieut.-Gov ernor, who was in Canberra at time, strongly opposed the measure. He de clared that the removal would kill the rubber industry in Papua and would most probably bring about a financial collapse of the Territory and a conse quential financial loss to Australia. The Federal Government, thereupon, de cided to continue the bounty on Papuan rubber for another year.

If Australia continues to extend her assistance until such time as rubber has adjusted itself in the world’s mar ket, Papuan rubber producers should have no cause for fear. If, however, that assistance were removed before the adjustment takes place, then there is no hope whatever for the Papuan rubber industry.