Exploitation Of New Guinea Timber

Government and Bulolo Gold Dredging, Ltd., Propose A Joint Company

DEVELOPMENT of the timber industry in the Morobe district of New Guinea—mostly in and around the Bulolo Valley—will be undertaken by a new company, in which the Australian Federal Government will hold a majority of shares. It is likely that a company with a nominal capital of £750,000 will be formed jointly by the Australian Government and Bulolo Gold Dredging, Ltd.

An official announcement to this effect was made in Canberra on October 8 by the Australian Minister for External Territories, Mr. Ward. The area affected is approximately the area that was concerned in the recent “New Guinea Timber Lease Inquiry,” which extended over 15 months in 1948-49.

Mr. Ward said that conclusion of the proposed arrangement with BGD depended on the latter’s shareholders giving their consent, and on reports from ex-

perts on certain technical and economic aspects.

It is estimated that within the area concerned there are 200 million super f ee t 100 p., an 4 pine, and a smaller quantity of cedar and other tim hers. Sample logs have already been seint to Canada (headquarters of BGD, Ltd.) and, if that test is successful, an investigation will be made by plywood specialists from Canada. If that also is satisfactory, the manufacture of plywood an d veneer will be commenced in New Guinea—“using logging, milling and cer tain other facilities of BGD in New Guinea as a basis for establishing the new company,” according to the Minister. it was stated also that the new corn pany “would examine the practicability of exporting logs to Australia,” as an addition to Australia’s timber supply; but the indications were that the new concern would be primarily interested in plywood veneer.