Puzzling Features of Copra Change-Over Remain

N. Guinea Control Board Is To

Be Wiped Out

Puzzling Features of Copra Change-Over Remain To Be Explained

IT was announced in the “Melbourne Herald” on June 18 that the Australi an Government would cease to buy copra in New Guinea, and the Production Control Board would be wound up.

Obviously, this new policy will cause a far-reaching change in trading and economic conditions in Papua and New Guinea. For some years all copra pro duced in New Guinea has been com pulsorily acquired by the Board from planters at fixed shipping points in the Territories; planters have been paid prices fixed by the Board, and all such copra has been shipped from New Guinea in vessels under Government control, and has been consumed in Australia.

Three weeks after the announcement the “PIM” made the following enquiries: • Are merchants and traders now free to buy New Guinea copra? • If so, what is to be the price—a figure fixed by world parity, or a price fixed by Canberra? • Under what conditions is this copra to be shipped? • Will non-Government vessels be allowed to go to New Guinea and pick up the copra and take it to the open market, where it is worth £lO or £2O per ton more than Australia has been paying for it? a • How is it proposed to meet Aus tralian copra requirements (at least 20,000 tons p.a.) in the future? Is Aus tralia now going to pay world parity? • How much money has been accumu lated by Mr. Ward since he began to deduct £6 per ton as a ‘‘stabilisation Fund” from Copra payments due to planters? How does he now propose to dispose of this Fund? Is it to be dis tributed, pro rata, among the planters from whom it was taken?

WE were informed, on July 7, that although the announcement from Canberra on June 18 apparently was from official sources, the officials of the External Territories Department knew nothing about any change nor had any steps been taken to end the present system. .. XT , The Companies operating in New Guinea said that there had been no change whatever in the system—copra was still being taken over in New Guinea by the Production Control Board on the same terms and conditions as previously Islands traders on July 7 expressed the opinion that, while the removal of any controls always is good news, it was dif ficult to bee how the changeoyer m respect of New Guinea copra could be managed at the present time, in view of (a) Government control of shipping and <b) Australia’s evident determination to secure most of the New Guinea copra production for her own purposes.

They also were of opinion that copra produced in British Empire countries is not likely to enjoy sales at world parity (United States value) while the Socialists remain in charge of British Government.

And then, on July 9, the following was published in Australian newspapers: CANBERRA, Thursday.—Mr. Ward announced to-day that the Australian- New Guinea Production Control Board is to be wound up.

The board, he said, was established during the war to obtain maximum pro duction of copra and othier tropical jrnods in Panua or New Guinea. Copra

production was now more than 40,000 tons a year, which was approximately two-thirds of potential output. Negotia tions were proceeding with traders to obtain an orderly change-over of marketing under a system of export licences.

No Sydney traders had heard of any “negotiations” on July 10. The Depart ment, no doubt, will get around to them, in time.

Meanwhile, all the above questions re main unanswered.

THE steamer “Lockybank,” early in July, was in Sydney loading about 4,000 tons of New Guinea copra for the British Ministry of Food. This was the first shipment of New Guinea copra from Australia to Europe since the end of the war. It is believed that the ship ment has been made because, although the Australian crushers have been run ning at full capacity, they have not been able to handle all the supplies from New Guinea, which now are in the vicinity of 55,000 tons per annum. It is calculated that, henceforth, any New Guinea produc tion over 25,000 per annum will go to Britain.

It is expected that the “Lockybank ’ will also load copra for Britain in Fiji and Samoa.

Copra-producers generally are keenly interested in the report that one of the Australian Prime Minister’s reasons for visiting London is to bring the Australian £, now 25 per cent, under sterling, closer to parity with the English £.

If the difference in exchange is partly or wholly wiped out, all Australian pro ducers, including New Guinea planters, will suffer accordingly—although they will, of course, be able to buy more goods with their money. But if, simultaneously with the wiping out of the Production Control Board, the planters are permitted to receive world parity for their copra, tney will have no complaint at all—in fact they will be better off.