Changes In Papua N. Guinea

Australian Minister Outlines Policy

AN outline of Australian policy in relation to the administration of her Pacific Territories—more especially Papua-New Guinea—was given in the Canberra Parliament on June 1 by the Minister for External Territories, Mr.

Spender.

It is a most comprehensive document, covering many subjects, and em bracing some 15,000 words. The following summary has been carefully prepared for publication in PIM.

General Policy

AUSTRALIA must hold these islands (New Guinea and the Bismarck Archipelago and Bougainville) for her own security. If they are to be held, they must be developed as quickly as Australian resources permit. In de ment Australia must make the full est possible use of the Territories’ natural resources. At the same time, she must protect the native people, and —while re cognising that they are not likely to be capable of self-government for a long time—try to raise their standard of living.

Australia, since the war, has found £11,000,000 for the assistance of the Ter ritories and, under the policy now enun ciated, she must find many more millions.

But in securing the economic advance ment of the Territories, Australia must look for the most part to private enter prise. The rate of development is con ditioned by the native labour force avail able. Proper attention to the welfare of the natives will tend to make more and more native workers available for industry. The Australian policy is sum med up in these words; (1) to locate, assess and regulate the availability of the natural re sources of the Territories so as to bring them within reach for de velopment. (2) to afford all reasonable en couragement for the investment of private capital in the develop ment of these resources. (3) to ensure that the native peoples of the Territories are enabled to participate to an ever increasing extent in the fruits of this de velopment.

Because Australia undertakes these re sponsibilities, the future development of the Territories must be complementary with Australian industry. Australia should supply New Guinea with both con sumer and capital goods; while Australia should be the natural market for Ter ritories’ products.

To Encourage Production

AUSTRALIA’S policy is framed with the object of advancing the welfare of the natives, and encouraging pri vate enterprise to -develop the Territories to the point where they will be self-sup porting.

“It has been decided to form, in con junction with the British Aluminium Co., Ltd., of London, a Company to be known as the New Guinea Resources Prospect ing Company, Limited. The objectives will be the location and development of large capacity hydro-electric power schemes suitable for use in industries, particularly aluminium production, and the prospecting for bauxite and minerals relating to aluminium production.

“The Territory is capable of producing many commodities such as rice, cocoa, jute, tea, etc. With proper organisation each of these could, no doubt, be the basis of a substantial industry.

“An economic survey of the rubber in dustry was made some time ago and the report is now being examined to deter

mine the best way in which the industry can be stabilised and expanded, in the long term.

“Other possible ways in which the agri cultural resources of the Territory may be developed are in relation to the use of mangrove bark for tanning and of in ferior types of timber for the establish ment of a wood pulp industry. The Kunai grass which grows prolifically in the Territory has been shown to be suitable for the manufacture of paper. During the last few days I have received samples

of paper made from that grass from the Northern District of Papua. The extent to which these may lead to profitable commercial projects, however, remains to be tested . . .

“The technical staff will carry out in vestigations to determine whether such minerals as asbestos, chromite, platinum, etc., exist in the Territory. There are known deposits of sulphur, copper and manganese and examination will be made as to their extent.

“The Government has appointed a Ministerial Standing Committee, com prising the Minister for External Terri tories, the Treasurer, the Minister for Commerce and Agriculture and the Minister for National Development to assist in the preparation of material for the consideration of the Government. Also, Mr. John Howse, MP, has been appointed Parliamentary Under-Secretary to assist the Minister for External Territories.”

Shipping

THE previous Government’s plan to keep all competition away from the organisation it set up to carry on shipping and stevedoring in Territories ports has been abandoned. Any vessel may engage in the carrying business; stevedoring is now open to private en terprise; and it is proposed to hand over all the Territories’ shipping services to private enterprise.

Timber Industry

“T> ecognising the importance of XV timber supplies for practically all activities in the Territory, it has been determined that there should be a vigorous forest policy for the Territory on the following lines: — (1) An orderly development of a timber industry in the Territory on sound forestry principles, with provision for re-afforestation of all areas to the satisfaction of the forestry officials of the Ter ritory. (2) As a general rule, rights to forest areas may be obtained only as the result of public tender, and in respect of areas that have been designated by forest officials of the Territory. There will, however, be exceptions to this general rule so as to meet the requirements of the Territory, and the Administrator will bq authorised to grant timber rights over stands of timber not ex ceeding 5 million super feet, without tender, where the timber is for Territory use and not for export, unless so authorised by the Administrator. Such timber rights are, however, to be re garded as emergency measures and will be limited to a period of ten years. (3) To meet local requirements in Districts adjacent to timber sup plies (for example the Sepik Dis trict) the Administrator will be empowered to issue to sawmillers authority to secure from natives logs that will be used to supply timber for the District itself. (4) Royalty will be payable to the Administration on all timber cut.

“The Bulolo pine stand, and such other areas as are declared by notice in the Gazette, will, however, require special consideration. The previous Government tentatively decided that the Bulolo pine stand should be developed for the pro duction in the Territory of plywood, veneer and timber, by a joint Company to be formed by the Commonwealth Gov ernment in conjunction with Bulolo Gold Dredging Company. This proposal is being re-examined ’ - the Government which has appointed a Committee under

the Chairmanship of Mr. G. J. Rodger, Commonwealth Director-General of Forestry, to advise whether this or some other method would ensure that the pine stand is used to the best advantage . . .

“An increased staff of trained foresters will be required and steps are being taken with a view to securing such personnel.”

At present, native labourers are trans ported long distances. It is hoped, as development proceeds, to allow them to engage in employment near their home villages.

War Damage Payments To

Natives

THE Minister said that £960,000 already has been distributed among natives as “war damage compensation,” and

that a further amount of £1,230,000 re mains to be distributed, making a total estimated cost of £2,230,000. (This money

does not come out of the War Damage Compensation Fund, which provided £9,000,000 for the compensation of Euro peans and Asiatics, but directly out of the pockets of Australian taxpayers. It was one of the pet schemes of the for mer Minister, Mr. Ward).

Mr. Spender said that he had been given information to show the harmful effect of these payments upon the natives and upon the Territory’s economy generally. Much of the money had been literally wasted. He proceeded:

“Steps are, therefore, being take to protect the interests of the natives by paying into a Savings Bank Account all monies payable to them in excess of a small amount. Withdrawals from these Accounts would be permitted only on the authority of a District Officer who will see that the sums withdrawn are ap plied for the purpose for which they are intended, namely, the replacement by the native of goods and effects lost during the war period; or to enable him to purchase other classes of goods that would assist his rehabilitation.

“It is abundantly clear that handouts of money is not the best way to advance the interests of the native and make him a responsible person.

“Such easy money can be positively de moralising and prevent the native from realising that it is only by his own ef forts and enterprise that he can improve his status and standard of living.”

Health And Education

THE importance of measures to con serve and improve the health of the natives was emphasised at length, and the Minister said: “The Director of Public Health has strongly represented that at least 76 hos pitals are needed to give a minimal op timum service to the Territory. It should be remembered that the Territory has an area about two and a quarter times the size of Victoria and an estimated popu lation of over 1,500 000.

“In addition, tuberculosis and leprosy hospitals, a mental asylum and bulk stores are required. It is estimated that the cost of such a programme will be in the vicinity of £7,000,000.

“A Committee including the Director of Public Health (Dr. John Gunther), Dr.

W. Kirkland (School of Public Health and Tropical Medicine) and Dr. T. Bren nan (formerly Director of Public Health of the Territory) will very shortly make a full investigation of these requirements.

“Immediate requirements are base hos pitals and medical training establish ments at Port Moresby and Lae, and tenders for these will be invited as soon as the necessary technical details can be determined with a view speedily to pro vide these essential institutions.

“In association with the hospital at Port Moresby there will be a Central Medical School, on the lines of Central Medical School at Suva, at which natives will be trained to be Assistant Medical Practitioners.

“The recent arrival in the Territory of 38 New Australian medical practitioners has greatly improved the staffing posi tion so that, now, every District has at least one Medical Officer. Such increase in staffing has allowed an expansion of the infant and maternal welfare work and for investigation to be made into areas where there is either a high infant death rate, or a low birth rate, with depopula tion.”

An education programme, designed to become fully operative over a period of five years, has been prepared and is be ing examined. The need for a wide spread plan of simple education was stressed, as being fundamental in any plan for the improvement of native stan dards of life.

The Minister dealt with the need for better educational facilities for the children of Europeans and Asiatics. It was hoped to make secondary education available through the establishment of a secondary school at Wau.

It was intended, wherever possible, to integrate the health and education ser vices of the Missions with those of the Administration.

New Public Works

IT is intended to continue and develop the scheme under which the Aus tralian Department of Works and Housing becomes the constructional authority in Papua and New Guinea.

Greater use will be made of private con tractors.

Contract has been let for a wharf at Samarai; tenders for a wharf at Madang are being examined; tenders for a new wharf at Port Moresby will be called shortly; a new wharf is being construc ted at Lae. All these things will cost £700,000.

Major works to be undertaken include the rebuilding of Port Moresby; the building of Lae; the building of a town to take the place of Rabaul; the com pletion of the Lae-Bulolo road; and hydro-electric installations at Port Moresby, and elsewhere.

Other works planned include houses, schools, hospitals, offices, etc.

For administrative purposes, Rabaul will be abandoned, and a town built at Kokopo, 20 miles away. The cost of clearing, building, sanitation, water and electrical services, roads and wharves, was estimated at £5,000,000. As some years will elapse before the new town is built, Rabaul will be occupied tempor arily. The vulcanological observatory at Rabaul is being re-established, and a vulcanologist took up duty in Rabaul in April.

Rabaul is such an important port that something had to be done to counter wartime destruction of harbour works.

Wharves will be maintained temporarily, and three Philippines lighters, purchased to provide wharfage and storage, arrived in Rabaul on May 27.

Qantas will be encouraged to improve and extend their air services; and pri vate air operators will be encouraged, also, to establish and expand air services.

Administration

THE Government is not satisfied with the provision made in the 1949 Act for the establishment of a Legis lative Council. It does not like the pro posed composition. It is being further examined.

Meanwhile, it is proposed to set up District Advisory Councils, nominated by the Administrator, to assist the District Officers —whose status and power will be improved, and who will be called District Commissioners.

Wider powers will be given the Admini strator. Instead of submitting to the Minister any expenditure over £5,000, the Administrator now will himself deal with all items under £15,000. Heads of De partments will have wider authority. Two officers in distant parts of the Territories will be given wider powers, and called Deputy Administrators.

There will be exchanges of officers, for purpose of experience, with the British Colonial Office and the New Zealand Government. Technical officers will be sent overseas for training.

A new classification of the Territories Public Service, making provision for 1,600 officers, should provide better salaries and

living conditions for personnel. The prob lem of providing suitable accommodation remains—material is unavailable and construction is slow. Construction of 62 houses and single accommodation for 60 officers in Port Moresby has been author ised. Construction will be accelerated.

Native Labour

WHILE accepting "the abolition of the indentured labour system as desir able, the Government believes that some form of written agreement, cover ing the labour contract, and regulating recruitment and employment, is neces sary; and an Ordinance providing for the “Native Employees’ Agreement” will come into operation about the end of the year. The present Native Labour Ordi nance will continue in operation in the meantime. Under the NEA, the maxi mum period of employment will be 18 months, with provision for an extension of six months, in certain circumstances.

But the native must be repatriated at the end of two vears. The existing arrange ment, under which natives may be em ployed in certain circumstances—as, for example near his home village—will be continued.

The Department of Native Labour will be wiped out, and the Department of District Services and Native Affairs will become responsible for proper supervision of native labour.

Customs Tariff

ONE tariff will serve Papua and New Guinea. It will be revised, to re duce the cost of living and en courage developmental industries.

Copra Production

THIS important pronouncement is re ported fully, as follows: “As part of the post-war market ing arrangements for Territory copra, an agreement was entered into by the pre ceding Government with the United Kingdom Ministry of Pood for the pur chase by the latter of the entire Terri tory output of this commodity that is surplus to Australia’s requirements for home consumption. This agreement is for a period of nine years commencing on March 1, 1949.

“No useful purpose would be served at this stage by reviewing the terms of this agreement. The contract exists and the present Government is bound by its terms. ‘ While the prices obtained under that agreement are lower than those which have since become obtainable on the so called free markets in other parts of the world, the important feature which the agreement had in mind was no doubt that it assured, for the Territory copra in dustry, a stability of price at payable levels which has hitherto been entirely lacking, and without which the industry would be unable to plan its operations with any degree of confidence.

“Even before this agreement had been entered into, the need for securing some measure of stability for this vital Terri tory industry had been recognised, and it had been decided to take advantage of the high level of post-war prices to establish a stabilisation fund which could be used for the purpose of supporting prices at payable levels in the long term.

“Contributions to this fund are ob tained through a lew imposed on all copra exported from the Territory. The rate of levy is at present fixed at £5 per ton, and the amount now held in the Fund is approaching £700,000.

“During my recent visit to the Terri tory, divergent views were expressed as to whether, in view of the security af forded to the industry by the agree ment with the United Kingdom, there is continued need for this Fund. However,

after a review of the matter, this Goveminent feels that the agreement does not in itself provide the full measure of stability that is so important to this vital Territory industry, and it has therefore been decided that stabilisation must continue.

“Investigations are now being made as to the basis upon which contributions are to be levied in future, and as to the man ner in which the fund is to be admini stered so as to ensure to producers a reasonable price level for the long-term future. Decisions in these matters will

be taken in consultation with the producers who will also be represented on the authority that is set up to control and administer the fund.

“One other matter which has come under review ... is the price at which the Territory is supplying this commodity to Australia There was reserved out of the quantities sold to United Kingdom Ministry of Food under the 1949 agreement, sufficient copra to meet Australia’s requirements for internal consumption.

At the same time the previous Government decided that this copra would be supplied to Australia at prices equiva-

lent to those ruling under the United Kingdom Agreement.

“The effect of this arrangement is that the Australian crushers, while enjoying the full benefit of the favourable prices which are at present operating under the Agreement, are in no way bound by its other terms and, consequently, are under no obligation to continue purchasing their requirements from the Territory at the Agreement price, should any general fall in prices enable them to obtain their copra requirements from other and cheaper sources of supply.

“This aspect of the matter is at pre-

sent under examination and it is my intention to set up committees to assist in the determination of this matter and in the formulation of details of a scheme of stabilisation of the industry, including the ultimate destination of the amount of approximately £700,000 which is now held as a result of the levy that has been imposed upon the export of copra since December, 1946. Such Committees will comprise representatives of the interests involved as well as Government officials.

“As regards future marketing arrange ments, the Australian New Guinea Pro duction Control Board was never in tended to function as a permanent mar keting authority, and it is intended that as soon as possible the responsibility of the marketing of Territory copra will re vert to private enterprise, subject to such restrictions as are necessary to allow the Government to carry out its obliga tions under the United Kingdom Agree ment and to ensure that the interests of all producers in the Territory continue to be safeguarded. Negotiations to this end are now in progress with Companies and organisations likely to be interested in the marketing of Territory copra under these conditions.

“Pending the termination of the Board’s activities, producers will be given representation on the Board which at present comprises only Government of ficials.”

Land And Settlement

LAND conditions will be reviewed, so as to encourage persons to settle in the Territory. Inquiries will be made to ascertain what lands can be made available without in any way prejudicing the rights and the future of the natives.

A scheme of land settlement for ex servicemen is now under consideration.

Some Expro properties will be. made available for purchase by ex-servicemen at an early date.

Care of the natives THIS is regarded as a first plank in policy.

Loss of experienced administrative personnel has been a serious factor.

Special steps are to be taken for the training of personnel at the School of Pacific Administration, in Sydney.

Uncontrolled areas are to be reduced.

It is proposed to bring all areas under control and administration within five years.

While making highland natives avail able for labour contracts in coastal areas, great care is being taken to safeguard their health. They are carefully selected; their eventual employment is supervised; they undergo special medical examina tions and vaccination against TB, typhoid and other diseases. District Officers will provide facilities by which highland vil lage chiefs can visit their men in their places of employment.

Defence

THE New Guinea Volunteer Rifles will be re-established. Rifle clubs will be encouraged. A native Panua-New Guinea division of the Australian Navy will be recruited. Steps will be taken to keep the Territories free from subver sive influences.

Finance And Taxation

BY June 30, 1950, Australia, since the war, will have spent on the Terri tories £14,500,000, less . about £4,000,000 raised in local taxation.

Hospitals demand another £7,000,000, a town to replace Rabaul, £5,000,000.

Much other expenditure is foreseen. A special developmental loan accordingly is being considered. The Minister pro ceeded: “It is intended also that the share of the cost of Administration of the Ter ritory borne by the residents should be fully examined.

“At the present time residents of the Territory are not subject to Common wealth Income Tax nor is there any direct Territorial taxation. There is, however, a Territorial Customs Tariff, under which import and export duties are levied, and there is a royalty of five per cent on gold produced. There are also various fees and levies collected by the Administration in connection with min ing, lands and other operations.

“Further, it is considered that bank finance should be available to assist pri vate persons and companies who wish to settle in the Territory, and the means of doing this will be investigated in consul tation with the Commonwealth Bank and other banking institutions. This it is considered will be a most important fac tor in the future development of the Ter ritory as it is necessary both for the advancement of the native inhabitants and the Territory generally that the Aus tralian population in the areas should be augmented as much as possible.”

Mr. W. A. Freeman, who has been chairman of Bulolo Gold Dredging, Ltd., since its inception, resigned that position as from May 31, but retains a seat on the Board. Hon Charles A. Banks, CMG, from the same date, resigned as manag ing director and is now chairman of directors. Mr. F. W. R. Godden, formerly director and general manager, has been appointed managing director, in succes sion to Mr. Banks.

Evidently of the opinion that it is high time New Caledonia grew enough rice to feed her population, instead of relying on Australia, the Governor has taken steps to encourage planters by stabilising price conditions. Before the war, too lazy to grow their own rice, the Caledonian French largely left what culture there was to the Japanese.