Big Firms

Planters and the Big Firms How to Improve The Position in N. Guinea

Letter to the Editor AS a resident of the Territory since 1919 I read, from time to time, with great interest, your comments on the administration and progress of New Guinea under the Mandate.

I am not one of those who decry what has been done by our Australian offi cials there. If what has been accom plished had been the result of a Five Year Plan (so popular these days) and carried out in that time, those results would be very creditable. But when we realise that it is the position achieved after 24 years’ occupation, and 18 years of civil administration, there is not so much to be proud of.

If Australians are to retain this Ter ritory, the tempo must be accelerated and a period of real long-sighted develop ment entered upon.

The discovery and development of the goldfields has assisted greatly, and the Administration has been fortunate in having this development by private en terprise, and the revenue therefrom, to cover up the results of absence of or ganised development in other directions.

That we are not now faced with a just claim that, as a colonising effort, our occupation has been a failure, is due to the dogged persistence of the plant ers and to the commercial enterprise of the two big firms (Burns, Philp and Co.

Ltd. and W. R. Carpenter and Co. Ltd.) and such efficient mining companies as Bulolo Gold Dredging Ltd., New Guinea Goldfields Limited, and also Guinea Airways and the plucky pilots. The two commercial firms have practically had a monopoly of the copra and trading busi ness, and undoubtedly assisted planters to survive the previous great depression; but they did so at great profit to them selves (vide the very apparent progress of W. R. Carpenter and Co. Ltd. and the disclosed and undisclosed profits and strengthening of Burns, Philp and Co.

Ltd.).

The Commonwealth Government came to the assistance of purchasers of ex propriated plantations by agreeing to a most reasonable scheme of payments on the fluctuating price of copra. Having done this, however, the Government is not following up its action by seeing that its proteges (the returned sol dier planters) get the full benefit of its scheme.

The parity of copra to London is now less favourable than in the time of the depression. The average “tied” planter gets £3 to £4 under London price, on the beach, and this difference, plus exchange premium of 25 per cent., goes to the firms and transporters. On a £lO Lon don market this is undoubtedly the lion’s share; and so, as you remarked in

one of your articles, copra production is “only a bread and butter business, and not too much butter”.

During the depression, planters were able to do little to free themselves from their tying agreements with the firms and the present unfavourable market, plus the heavy charges for freights, marketing, interest, stores, etc., binds them closer in their toils.

Lack of healthy competition, due to this financial position, is one of the chief troubles. If planters were free to negotiate freely with the firms, and co operate to get better prices and cheaper supplies, the position would be much eas ier, and there would be a greater incen tive to development, and a healthier tone in the agriculture of the Territory —which must, in the long run, be its mainstay.

The Commonwealth Government pro poses shortly to inaugurate a Mort gage Department of the Commonwealth Bank of Australia; and thereby it has a chance of lending valuable assistance to the planters, by opening a branch of the new department in New Guinea and taking over the tied advances of plant ers from the firms on a reasonable basis. This would “unfreeze” the posi tion, and give the planters new hope; and would give the firms extra capital for transport services and other means of marketing their produce.

It would also encourage healthy com petition. The bank could secure itself through control of the distribution in big lots of copra, might be able to se cure better prices, if the firms do not do their part in that direction.

The Administration and, still more, the Commonwealth Government, could be of real assistance to our New Guinea colonists if they would take an intelli gent and constructive interest in these matters.

In spite of conditions very unfavour able as compared with those prevailing at the time of the sale of the expropri ated properties, planters have carried on their part in populating and developing the Territory during the past 12 years, and, like us all, they are getting no younger. It is too late for most of them to think of starting again in Australia in new ventures, even if 10 to 20 years in the tropics has not unfitted them .for other conditions.

The success of the pioneers would be the best means of encouraging future settlement of the Territory by Britishers.

Japan has over 50.000 Japanese (over 60.000, now.—Ed. “P.1.M.”) settled in the relatively small area of their Pacific Mandate. Australian and other white people will only go to New Guinea if they are encouraged to do so by the success of those already there.

If they live reasonably well, and do not go too long without a holiday to temperate climates, whites can keep healthy in most parts of New Guinea, but they must be able to set aside suf ficient money to enable them to send their children to Australia for education, if there is not to be race degeneration.

It is hoped that recent changes in the responsibility for Territory affairs aug urs well for a keener interest in Terri tory matters.

I am, etc.,

Rabaul Asian.

Sydney. 19/11/1938.

Mr. Tom Nevitt, M.L.C., well-known Papuan planter, left Sydney for Port Moresby, Papua, by the “Macdhui” on December 10.