Paralysis Of Copra Industry

Buyers Virtually Cease Operations :: But Government Assistance Promised

THE copra industry of the South Pacific faces the greatest crisis of its history. The European copra market has disappeared. Great Britain has six months’ supply. Even if there were markets, freighters can not be spared from urgent war work to lift the copra from the Islands

ports.

Governments are now planning to give sustenance relief to planters, in the hope that plantations somehow can be carried on until a market is available.

It should not be assumed, from this, that the Pacific Territories are “ruined”.

That might have been the case ten years ago. But, now, nearly all Territories have alternative industries, all of which are booming. The coconut planters are hard hit: but producers of rubber, cocoa, coffee, sugar, oranges and bananas, and all gold-mining concerns, are doing very well. Only two small territories, Solo mons and Gilbert and Ellice, are now solely dependant on copra.

Hereunder is a summary of the month’s events in the copra industry.

Aid For Australian Coconut

Planters

ON August 12 the Minister in Charge of Australia’s Pacific Territories was asked by the “Pacific Islands Monthly” if he could make a statement of the position in relation to the copra industry in the Islands; and Mr. Nock made the following information available.

During the past month, the parlous condition of the copra industry in Papua and the Mandated Territory of New Guinea has been very carefully examined by the Commonwealth officials concerned, who have had the assistance of the Administrator of New Guinea, Sir Walter McNicoll (who has made a spe cial visit to Australia) and they also have had advice by radio in relation to the situation from Papua and other places.

Mr. Nock indicated that it obviously was impossible to do anything on the basis of financing the output of copra.

Copra cannot be stored indefinitely; the market overseas now was extremely limited and apparently was fully sup plied at the moment; and in any event there were insufficient freighters avail able to lift the copra from the Islands ports for carriage overseas —all ships were needed for other purposes.

It has been decided, however, to recommend to the Commonwealth Gov ernment the adoption of a plan whereby necessitous planters in Papua and New Guinea would be tided over the present difficult period. This would be temporary financial assistance to planters, pending the formulation of a scheme whereby the industry as a whole could be assisted to carry on during the period of difficulties created by the war. The method employed would be similar to that used by the Farmers’ Relief Board which operates in N.S.W. The assist ance given would be in the shape of advances, which would carry interest at the rate of 4 per cent.

In reply to a comment by the “P.1.M.”, that such a system merely would add to the debts and future embarrassments of the plantation owners, the Minister

said that the utmost consideration would be given individual cases, as was done by the Farmers’ Relief Board of the mainland.

It was gathered in conversation with the Minister that the plan is now in process of formulation, and it is hoped to put it into operation at an early date; that it may be necessary to appoint a special committee to deal with this method of giving relief; and that, of course, some method of close co operation between the Governmental authorities, the big firms and the individual planters would have to be devised.

The financial assistance that is being made available to Australian-Pacific planters is believed in some quarters to have been made available by London, and not by the Commonwealth Govern ment.

It was officially announced in New Guinea on July 26 that “the Govern ment has made arrangements to afford interim relief in the form of recover able loans to employers, other than companies, who are engaged in planting and who notify in writing that they are unable otherwise to meet their obliga tions.

“Under this interim form of relief, the Administrator will advance money to pay current wages of native labourers, and to pay-off time-expired labourers, pay the cost of their sustenance pend ing repatriation and the cost of their repatriation.”

Position In Papua

IT is presumed that the same form of relief is being given in Papua.

In Port Moresby, in response to an inquiry from Canberra, the Acting Administrator (Mr. Champion) called a meeting of planters on July 29, to supply information and make sugges tions. It was ascertained that, last year, in Papua, companies produced 5,500 tons of copra, and individuals 4,000 tons, at an average cost of £7/5/- per ton, f.o.b. port of shipment. Over 4,000 tons now are on hand, awaiting ship ment, representing £29,000. Over 6,000 natives are employed in the industry.

It was urged that, if production must cease, planters be assisted at the rate of £3 per ton on last year’s production, which would at least allow maintenance of plantations.

IT was announced in this journal, in July, that the principal trading firms had virtually ceased to buy copra in the Solomons, New Hebrides and the Mandated Territory of New Guinea.

Barter System In Fiji

HAVING bought copra to the limit of their financial capacity and their storage, the big firms operat ing in Fiji announced that, after July 24, they could no longer purchase copra on a cash basis. Hitherto, the firms have bought copra whenever submitted, at some price; but, now, they will accept it only on a barter basis. This means that they will take copra, at a price to be arranged, from their regular cus tomers, in return for goods or service.

But they will not accept copra from anyone, and they will not, in any cir cumstances, pay cash for it.

The firms say that, as it means a

continued increase in their stored and unsaleable copra, even this system will embarrass them.

The Governor of Fiji, recognising the serious position that is developing in Fiji, and other territories under his care (Solomons, Gilbert and Ellice, New Hebrides and Tonga, especially), owing to the absence of a copra market, has been actively conferring with planters and merchants, and has made an urgent appeal to London.

There is a gleam of hope in a state ment made in the House of Commons on July 24 by the Under-Secretary for the Colonies, who had been asked about the present inability of the British Gov ernment to draw “a substantial portion” of its copra needs from the Pacific (especially Fiji and other territories in the Western Pacific) as it wished to do.

He said the Government was urgently considering the position of the copra trade of the Colonial Empire with a view to ameliorating matters.

It was reported in Sydney on August 12 that Japanese buyers are offering £9 per ton, Suva, for Fiji copra. There is no confirmation of this report.

How Long Can Copra Be Stored?

IN July we wrote to the Department of Agriculture, New Guinea, and asked how long copra can be held in store. Hon. George Murray, Direc tor, replies: “This Department, in the past few years, has made three authori tative tests and has proved that well cured copra, with not more than 5% moisture content, can be stored for 15 to 18 months.”

Mr, Murray adds that New Guinea has storage capacity for 30,000 tons, and that he had been informed that Messrs.

Burns, Philp & Co. Ltd. would store in bulk on their own plantations.

Another correspondent says that coco nut oil, if thoroughly refined, will keep indefinitely. He urges that the Com monwealth Government should use some of New Guinea’s rich gold revenues for the establishment of a big copra crush ing plant in Port Moresby, where hydro electric power presently will be avail able, and where there is plenty of cheap labour. Port Moresby would be a suit able collecting point for copra from all over the Western Pacific.

So far as the Australian territories are concerned, it is being urged that the situation would be saved if Britain would contract to take 50,000 tons of copra p.a. from New Guinea and Papua.

It also is argued that, if Territories shippers were allowed to operate at a free exchange rate, instead of the official conversion rate, 30,000 tons of copra could be sold annually to Mexico.

Another suggestion is that U.S.A. be asked to modify the internal processing tax on oil extracted from copra, which at present gives copra from the Philip pines a preference of 2 cents, a pound over copra from any other source, thus closing the U.S. market to Pacific copra.

One serious effect of the present paralysis of the copra market is the withdrawal from service of many of the small inter-island vessels, especially those run on a fairly regular schedule by the big firms. This will cause great inconvenience and hardships to Euro pean residents on the more isolated islands.

“The Morobe News”, the first news paper printed on the Morobe Goldfields, New Guinea, was published on July 20 at Wau, by Mr. John Wholey. It has six pages, each of four columns.