Production

General Recovery Of World Copra

Interesting Report From London Association

Prom a Special Correspondent

London, May 5.

ALL commodity markets in the United Kingdom have been confused and unsettled for some time, withou) any particular feature of interest to residents of the South Seas. However, the follow ing extract from the chairman’s report to the London Copra Association, whi:h will be presented at a general meeting this month, will be of interest to copra producers.

The chairman reports:—

Philippine Islands: A Year Ago I

reported to you the result of my investi gations, in the Philippines, of the causes of the bad shipments of Philippine co ra during the previous year.

I stated then that the best way in which buyers could protect their interests was to adopt the following course: By avoiding all shippers and sellers who are not regarded as of the highest standing and integrity.

By insisting on buying only on c.i.f. or c. & f. conditions, landed weights (at port of discharge) and on the terms of the London Copra Association Con tract.

It appears that buyers have adopted this course. In spite of very heavy fluc tuations, there have been very few reports of defaults by shippers during the past year. As a result of buyers’ nolicy of caution, business has been guided back again into the normal, regular channels and irresponsible elements have, very largely, been weeded out.

The most satisfactory feature of the past year has been the general agree ment by Philippine shippers to sell landed weights at port of discharge. The result has been remarkable and out-turns have improved greatly compared with the pre vious year. Many more transactions to Europe are now concluded on this Asso ciation’s contract which is very satis factory.

Shipments of copra during 1948 amounted to 625,600 tons. The consider able reduction from 1947 was due to the severe damage caused by the typhoon on Christmas Day, 1947. The greater part of the damage has been repaired through out the past year and we may confidently look to increased production from last year’s level.

SOUTH SEA COPRA; Production in Papua and New Guinea is continuing to improve and it has been estimated that this year’s production may reach as much as 60,000 tons, although the latest esti mate indicates that only 45,000 tons will be available for export.

Of this quantity, approximately 25,000 tons will be required by Australia and the rest will be taken up by the UK Ministry of Food. A nine-year contract has been concluded with the Ministry of Food—the price for 1949 is reported to be £4B Stg. per ton f.o.b. For each subse quent year the price must be agreed anew, but not less and not more than 10 per cent, of the price of the preceding year.

INDONESIA: Good progress in rehabi litation is continuing. You will remem ber that last year I estimated that ship ments in 1948 would reach 300,000 tons.

Actually, shipments were 238,400 tons, to which must be added 20,000 tons of coconut oil and also a further quantity of 100,000 tons of copra shipped from areas outside the Copra Fund control.

This makes a total of copra equivalent, shipped from Indonesia, around 370,'.00 tons. Exports in 1949 should exceed 400.000 tons from all parts of Indonesia.

During the first quarter of this year the Copra Fund in Batavia, which con trols the export of copra, had already sold 150.000 tons for shipment during 1949.

STRAITS: It will be lemembered that nearly a year ago a letter was addressed .to the Ministry of Food suggesting that all restrictions on the export of copra and coconut oil from Malaya be freed in order to increase the total exportable sur plus to any destination.

Action was taken on these lines in the middle of September, from which time Malaya was freed from all export restric tions. Total export of oil and copra, in terms of copra, amounted to 43,192 tons in 1948 compared with only 20,000 tons in 1947.

Due to the stricter control over all copra exports by the NEI Copra Fund since the second police action, it is feared that imports of Indonesian copra in'o Singa pore will be appreciably smaller,, and this in turn may cause a falling off again in Malayan exports.

CEYLON: As a result of the visit of the Minister of Commerce of Ceylon to London, a new agreement was reached between the Ministry of Food and the Government of Ceylon. The agreement supersedes the existing agreement in re spect of the period, July 1, 1948, to De cember, 1950. and provides that any quan tity taken by the UK during the period, July 1 to December, 1948, shall be at the price of £5O per ton of copra f.o.b. Ceylon ports.

Under the new agreement the price for a minimum quantity of 40,000 tons as oil in 1949 is based on a price of £55 per ton of copra f.o.b. Ceylon ports.

The price for 1950 is to be agreed on towards the end of 1949, in conjunction with negotiations for a long-term con tract, possibly for five years, to include the year 1950.

During the latter part of last year fair quantities of coconut oil were sold for export at high prices but since then Cey lon has not followed the general decline in the Philippines. Indonesia and Malaya, and no sales have been reported for a con siderable time.

Total shipments from Ceylon last year amounted to 54,461 tons as copra and 75,730 tons as oil. making a total, in terms of copra, of 174,667 tons. It is feared that as a result of a period of severe drought in Ceylon at the end of 1948, shipments in 1949 will not exceed 120,000 tons in terms of copra. classes have been commenced bv the Education Department in Rabaul, NG.

Mrs. M. Byron and Miss Egan are con ducting classes in English and commercial subjects in the Chinese School, Mon day and Wednesday. Although primarily for Chinese residents, Europeans or Malays may also attend.