Growers

Papuan Rubber

Now Receive 25 Per Cent.

Exchange Premium

From Our Own Correspondent.

Port Moresby, Sept. 20.

RUBBER manufacturers in Australia have agreed to pay the English- Australian exchange on the price of all future shipments of rubber received from Papua. The exchange was not included in previous sales, which were based on the London market quotations minus the 25 per cent, exchange premium.

Planters of rubber in the Territory are certainly in a more comfortable position than they were in September last year, when the London price for smoked rub ber was below 4d. per lb. or when, early in 1933, the price was as low as 2 7/8d. and the manufacturers in Australia suddenly announced their decision to cease buying Papuan rubber. This action was a pro test against the import duty of 4d. per lb. on all raw rubber other than Papuan entering the Commonwealth.

The alarming position was Overcome, however, following a conference between the representatives of the Papuan rubber growers and the Australian rubber manu facturers. As a result, the Australian Government decided in March to extend the 4d. duty to Papuan rubber and re turn the amount collected as a grant-in-aid to the industry in Papua.

This was an extremely satisfactory arrangement, but in October, 1933, the customs duty on raw rubber into Aus tralia was reduced to 2d. per lb. The announcement came without warning to Papua and caused dismay, though the market price had risen to 4d. per lb. The growers feared that if there was the slightest fall in the prices, they would find themselves in the same critical posi tion they were early in the year.

However, their fears were not justified, for rubber has risen steadily since Janu ary this year and the planters’ position in the Territory is an enviable one. The latest reports from London show that not only is the rubber market steady, but that it is likely to improve in the future.