Bounty For Papuan

Rubber

Planning For Next Quarter-Century

From Our Own Correspondent

Port Moresby, Jan. 27

THE suggestion that a Stabilisation Fund be formed by the Common wealth for the rubber industry in Papua, when it was determined in June, 1936, to discontinue as from October 1, the grant in aid of rubber of 2d per pound, on rubber exported from Papua to Aus tralia, has been investigated by all con cerned in the territory within the last

two months. The following resolutions were forwarded for approval to the Prime Minister of Australia by the Lieut- Governor in December: — “That a Fund be established for pay ment to rubber-growers of the amount per pound by which the London price falls short of Bd, such an amount not to exceed 4d per pound.”

“No payment to be made when and if the London price reaches Bd. or over.”

“The fund to be permanent, if possible, and at any rate to be fixed for 25 years— otherwise the industry offers little or no attraction for future investment.”

The Planters’ Association made the following comments upon the resolutions: “Eight pence, London, might easily mean 8d Australia, if exchange disap peared.

“Rice, flour, sugar and other ration lines, will not continue at their present low level, and prices must move up.

When they do our labour costs and re cruiting also go up. Will 4d per pound be of any use to us then?' “Will the terms suggested by the Gov ernment be sufficient inducement to plan ters to extend their areas of rubber and new capital to come in?”