Australian Manufacturers Wont Buy

Papuan First Grade Rubber

From Our Own Correspondent

Port Moresby, May 26.

HUNDREDS of tons of rubber are piling up at plantations and storage centres in Papua, because planters refuse to sell to Australian manufacturers at a re duced price.

Little rubber has been shipped to Aus tralia since the end of March when the “Bulolo” took away a consignment.

While the “Bulolo” was on her way to Sydney on that occasion, Papuan planters were notified, by their agents in Australia, that manufacturers could not use No, 1 grade smoked sheet rubber from Papua for some time.

The manufacturers said they could buy Papuan rubber only if growers were pre pared to sell their No. 1 grade product, comprising about 85 per cent, of the total production, at the price usually paid for No. 2 grade—a difference of about four fifths of a penny per lb.

The Papuan Planters’ Association im mediately advised its members not to sell at the reduced price and the “Bulolo” con signment was placed in storage in Sydney.

The Association has asked the Com monwealth Government to intervene to help planters get the full price and to en sure that Papuan rubber is given prefer ence, grade for grade, over rubber from Malaya and other countries.

Planters can’t understand the manu facturers’ attitude. They say the manu facturers must be using some No. 1 grade and if so it should come from Papua, not foreign countries.

The manufacturers’ move is not re garded as an attempt to lower the grading of Papuan rubber, which is recognised as being equal to the best from overseas.

While the Planters’ Association tries to straighten things out, rubber is accumu lating and planters may soon have to cut production through lack of storage space.

Papua sends Australia its full rubber output, which at present is about 1,500 tons annually. Despite labour shortages and other problems, production is reported to be rising steadily.

Prices are calculated on Singapore day to-day quotations, which are considerably below the prices paid during the war when the Australian Government controlled production and prices of Papuan rubber.