Copra Is Key To Prosperity

Review of Conditions in Papua, New Guinea, and Fiji

ADDRESSING shareholders of the Bank of New South Wales at the annual general meeting in Sydney on November 26, the Chairman of Directors (Sir Thomas Buckland) gave a summary of the present finance and trade condi tions of the world. His remarks relating to Papua, New Guinea, and Fiji are of interest to Islands people.

Recovery in copra prices has resulted in great prosperity for the planters of Papua and New Guinea, said Sir Thomas.

During recent months, owing to the inter national situation, prices have decliped from the high levels existing during the early months of 1936, and the margin of profit has been further reduced by higher freight rates, but the industry is still thriving. Indeed, the international dis turbances which have caused fluctuating prices may have beneficial results to the Islands, for the Sino-Japanese dispute, if prolonged, will tend to curtail supplies of soya beans, from which so many sub stitutes for copra products have been prepared.

Exports Up 56 Per Cent.

Prosperity in the copra industry is the key to prosperity throughout the South Seas. The trade returns for Papua pro vide a specific instance of the progress made. For the year ended June 30, 1937, imports were valued at £A453,000, an in crease of 42 per cent, over the previous year, while exports amounted to £A524,- 000, an increase of 56 per cent. Although exports of rubber did not appreciably alter, the value of copra exported from Papua rose from about £AIOI,OOO to £A192,000, and gold from £ABI,OOO to £A87,000, Business activity throughout the Man dated Territory of New Guinea has greatly increased, although the May vol canic eruptions at Rabaul resulted in seme doubts as to the future of the capi tal and hindered work in the harbour.

The production of gold has made steady progress and new fields are being devel oped. Rubber is obtaining profitable, though fluctuating, prices and is being more extensively cultivated. Research into the oil-bearing resources of the Man dated Territory is continuing.

Fiji is enjoying great prosperity, he continued. Copra prices have been profit able, gold output has increased, and sugar production is very satisfactory.

Oversea trade has greatly improved.

Exports for the first six months of 1937 (£F728,000) were 21 per cent, higher than for the corresponding half of 1936.

Increased copra prices in the same period caused a rise of 42 per cent, in the value exported, quantity was about the same as (nfffiie previous year.

Exports of gold totalled £F67,300, an in crease of about £F9,300. All trades arc prospering, except bananas. Despite Gov ernmental efforts to encourage their ex pert, the value exported declined by

nearly £F15,000 to £F33,000. The market for sugar is assured by? a generous quota for the next five years. By the end of 1938 the capacity of the Tavua goldfield should have been tested.

The Government has built up substan tial surpluses amounting to about £F500,000, and has eyery reason to look to the future with confidence.