Plan Affected By War

New Guinea Road

IT is probable that when the Federal Parliament meets again on the 15th some statement will be made relating to the plan to build a road between Salamaua and Wau, in New Guinea; but, as far as can be ascertained at present’ the project is moribund.

The work of the survey parties has been proceeding and it is understood that they have been instructed to lay down a final practicable route for the road. But one report says that there is a growing feeling in New Guinea that, if there is to be a road at all, it will take the longer route up the Markham Valley—with a branch road leading up into the Bulolo Valley.

The engineers are proceeding with the final survey of the short route between Salamaua and Wau, however.

But the real factor in relation to the future of the road plan is finance. It is stated that estimates in relation to the cost of the road have been upset by higher costs caused by the war; and that, in any event, the big companies trading in New Guinea, which were expected to finance the road by way of loan, are now anxious to conserve their fluid funds.

Furthermore, there is a considerable gap between the total amounts which had been promised by the big firms and the total cost of the road. It was anticipated that this difference would be made up by the New Guinea Administration or the Federal Government probably from trust funds—but the outbreak of war has made a revision of all finances essential.

Captain H. T. Allan and his friends in the New Guinea Association are still fighting hard in Australia for the preser vation of their plans, and considerable pressure has been brought to bear in Canberra; but the chances are rather against them.

The controversy over the taxation of gold has a bearing. If the new Federal tax upon gold produced in New Guinea is not constitutional, and the Federal Gov ernment cannot get any benefit from the considerably increased value of gold pro duced in New Guinea, it is possible that the Federal Government will say that the gold-mining community in New Guinea now can bear the whole cost of transport out of the increased price of gold.

Mr. E. Perkins, a New York mining engineer who has been on a business visit to New Caledonia, reached New Zealand from Noumea by the “Maetsuycker” in mid-October. He left several days later for the United States,