Debts of N. Guinea Soldier-

Planters End of the Moratorium?

THE Commonwealth Government (it was reported from Canberra on Feb ruary 12) is considering plans for lifting the moratorium on the payment of in terest and principal due on expropriated properties in the Mandated Territory of New Guinea, which has operated since 1930, when there was a collapse in the copra market.

About 175 plantations, which were taken over from former German colonists in 1920, are involved, and the outstanding principal amounts to nearly £2,000,000.

The annual interest payments due on the properties amount to about £BO,OOO. The plantations are held mostly by Austra lians, many of whom are returned sol diers. The maximum interest rate charged to returned soldier holders of the proper ties is 4 per cent, and to others 5| per cent.

Recently a representative of the Plan ters’ Association of New Guinea waited on the Treasurer (Mr. Casey) and the Minister for External Affairs (Sir George Pearce), and placed before them a plan under which the planters would resume their payments after June 30. This plan provides for payments on a sliding scale, which will be governed by the market price of copra from time to time. It is now being considered by the Ministry.

EDITORIAL NOTE.—It is not likely that there will be any satisfactory resumption of financial relationship between the soldier-planters and the Expropriation Board unless some sincere and in telligent attempt is made to adjust the valuations of the plantations. The values, and therefore the debt of the planters, were fixed when copra was at “fancy” prices—prices which this generation is not likely to see again. It is not very diffi cult to provide a sliding scale of annual payments, governed by the market price of copra; but the plan will not give any real relief unless some provision is made for reducing excessive valua tions. It is a difficult, thorny problem, with many ramifications—due to the fact that a large proportion of the soldier-planters were originally financed, and later assisted through the bad years, by the big trading firms.