New Caledonia Knocks at Australia's Door

Urgent Need For Markets Japanese Trade Prohibited

THE growing economic co-operation be tween New Caledonia and Australia was emphasised, in March, when Mr. H. Lafleur, of Noumea, paid a visit to Sydney to interview the Common wealth Government on the possibility of Australia increasing its imports of nickel and chrome.

Mr. Lafleur, who is prominently con nected with the Colony’s mining industry, visited Canberra, where he had dis cussions with Commonwealth officials; and, although in an interview with the “PIM” he could not divulge the nature of these discussions, he said that if he was not successful he would proceed to the United States in a few weeks, to try and interest that country in New Cale donia’s excess nickel and chrome produc tion.

New Caledonia has large deposits of minerals, the most important of which are nickel, chrome and iron. There is a smelting works in Noumea conducted by the Societe le Nickel, and, prior to the French capitulation, the production from ihis company—about 10,000 tons of nickel mattes (68 per cent.) a year—went to France and Belgium. The bulk of the chrome ore went to America and Great Britain: and Japan, who was not allowed to buy refined metals, received 70,000 tons of nickel ore (3 per cent.) and 80,000 tons of iron ore (50-52 per cent.) each year.

With the French and Belgian markets gone, New Caledonia looked to Australia for assistance in placing the nickel pro duction; and, as the result of negotia tions, Australia is taking 7,800 tons of

nickel mattes per year. Mr. Lafleur said the Colony hoped Australia would buy the balance of the matte production, and large quantities of nickel ore.

New Caledonia produces between 60.000 and 70,000 tons of chrome ore each year, and of this 50,000 tons goes to America and British interests. Aus tralia is importing between 1,500 and 2.000 tons, and Mr. Lafleur is trying to build this import up to 10,000 tons a year. Commenting on the fact that Aus tralia has just signed a trade agreement with Southern Rhodesia for the pur chase of (among other things) a quantity of chrome, Mr. Lafleur said New Cale donia could supply all of Australia’s needs at a price which would be con siderably lower than Southern Rhodesian chrome, because of the shorter distance to be freighted.

Mr. Lafleur said he hoped to interest Australia in the Colony’s copper ore deposits, and mentioned that a small percentage of gold had been found in this ore.

The fact that Australia might not be able to use all of the Colony’s metal should not deter them from buying, he said. Arrangements could be made whereby Australia could buy the metals and re-sell them to America —thus build ing up the much-needed dollar exchange.

Australian pounds were equally as wel come in New Caledonia as dollars.

REFERRING to Japan’s position to-day, Mr. Lafleur said that a recent order from the de Gaulle Government in London practically prohibited trade be

tween New Caledonia and Japan. Ex ports of nickel and iron ore to Japan have ceased, with the exception of a partial exemption, which permits the Japanese-owned “Cascade” mine at Goro to ship 8,000 tons of iron ore each month.

This Japanese company employs about 550 French and Javanese and can pro duce 30,000 tons of ore per month; but, as they have no place to store surplus production, it is not thought that they will continue operations under the 8,000 tons a month licence.

Recently a Japanese company nego tiated for the purchase of 10,000 tons of chrome ore, and arrangements had just been completed—the ore had been ob tained and the money had been placed in the bank —when the order prohibiting exports to Japan was received. The deal fell through, and the 10,000 tons of chrome is still in New Caledonia, await ing shipment to some other market.

America is interested in the Colony’s minerals, Mr. Lafleur continued. Re cently, Mr. Ernest E. Johnson, United States Maritime Commissioner for the East, furnished his Government with a report on the nickel and chrome avail able in New Caledonia.

Other Products THE Colony’s timber industry was quite satisfactory, as Australia is taking all the kauri logs available; but there are large stocks of copra and trochus shell lying in store awaiting shipment.

During his visit to Australia, Mr.

Lafleur took the opportunity to investi gate the possibility of expanding the coffee market. Although Australians are not great coffee-drinkers, like the Americans, he hoped they would acquire a taste for the excellent Arabica and Robusta types grown in the Colony.

America was not a likely market for New Caledonian coffee, because it is well supplied by Brazil—the largest producer in the world—and other nearby countries.

“In any case it is too far from us”, he said. “The country we must sell our coffee to is Australia, just four days from Noumea”.

Mr. Lafleur said it was his personal opinion that the Island should have a commercial representative in Australia.

“As our exports are not back to normal, foreign exchange and imported goods are still severely rationed; but, if Aus tralia can buy more of New Caledonia’s products these restrictions will be lifted, paving the way to a profitable trade connection between the two countries”.

Mr. Lafleur paid a visit to New Zealand on his return to Noumea by air in April.