Iniquitous Mof Copra Price

Planters’ Direct Appeal to Ministry Officials

TWO high British officials representing the British Ministry of Food (Mr.

Shead Anderson, Under Secretary of I the Ministry, and Mr. C. Wilson, a mem- I ber of the staff) were in Canberra in mid- I March, discussing plans for. a meat supply contract. They later left for I Queensland, for a similar purpose, and [said they would be back in Sydney after

I Easter.

On learning of this, two BSI copra [ growers, Mr. Joe Bryan and Mr. Yarrow (Pairymead Co.), representing the BSI Planters’ Assn., sought an interview with I the officials, with a view to discussing the ! iniquities of the MOF copra contract, from the Pacific planters’ viewpoint. They were advised by the staff of the British Trade [Commission that Mr. Shead Anderson [would see them on his return from Queensland.

It was expected that, when the interview took place, representatives of the New Guinea Planters’ Association, and perhaps of the Fiji planters, as well as the BSI men, would meet the Under Secretary.

Messrs. H. T. Allan, Ted Pulton and Jack Allen, representing the NG Planters’ As sociation, have not yet been able to ar range the interview with the Australian Minister to which we referred in last is sue; but they could have been available for a talk with the MOF officials.

But no sooner had plans for the inter view been completed than a telegram was received saying that the officials would not return to Sydney and suggesting that the planters send a statement of their case direct to London.

In mid-March, we received from an Aus tralian merchant in London a request for several copies of the article on the in iquities of the MOF copra contract, which we published in February PIM. Our cor respondent said that if these facts were brought formally before the British Ministry of Food, he was sure that the contract price would be revised, and he personally intended to approach MOF officials. Copies of the article were sent by air-mail.

So far as we know, officials of the Gov ernments concerned (Australia. New Zea land and Fiji) have taken no step what ever to seek revision of the MOF contract in the light of Sterling devaluation. Now the planters themselves may accomplish something by direct approach.

How Canberra Treats Ng

Planters

FM Straits Copra (mixed DEI) was be ing quoted in London on January 25 at £129 Sterling per ton, c.i.f. Con tinental port.

The Papua-New Guinea price under the MOF contract was announced in Feb ruary (to operate from March 1) at £54/5/0 (for Hot-air Dried) and £53/16/6 (for Smoked) per ton, Australian cur rency, at PNG port.

In other words, after adjusting ex change and allowing for freight and handing charges, etc., the New Guinea planter is getting at least £6O per ton under world parity. Other South Pacific planters affected by the MOF contract are in a similar position.

The Australian Department of External Territories (which arranged the MOF contract and, so far, has stubbornly re lused to seek a revision in the light of oterling devaluation) is now selling New Guinea copra to the Australian crushing nulls at £74/10/- Australian per ton (12/6 less for Smoked)—which is at least £55 Australian less than it could get if it shipped the same copra to a European port.

Why should the New Guinea planters

subsidise the Australian crushers in this fantastic way?

According to the London “Public Led ger” of January 25, the London Copra Association prices at all Western Euro pean ports were:— FMS Ceylon £130; FMS Straits and Estate Plantation £130; West African, FMS £129/10/-; Straits, FM £129 and Philippines, FM. in bulk, $305, per long ton. Plantation Mozambique, No. 1, Esc. 10,200; No. 2, Esc. 10,100 and FM Mozam bique, Esc. 10,050, per 1,000 kilos; all in bags.

Those prices are in Sterling. Add 25 per cent, to get the amount in Australian currency.

Fiji Production: 20,000 Tons Pa

DURING the calendar year 1950, Fiji produced over 20,000 tons of copra. 10,158 tons were shipped overseas, and were valued at £544,101 Fijian; and about 10,000 tons, valued at about £950,000, was processed within the Colony.

The figures, made available in February by the secretary of the Fiji Copra Board (Mr. C. St. Julian) show the great and growing economic importance of the Fiji copra-crushing mills. They now take half the total Fijian production. About half the copra which went overseas was shipped from Levuka, with Savu Savu a close second.

By comparison, it is interesting to note that Papua-New Guinea’s annual produc tion is estimated to be in the vicinity of 65,000 tons (the average production, pre war, was 75,000 tons) and less than one third of that production is processed in Australia.

Government Gives G. & E.

Natives £2O Per Ton

FURTHER information from the Gil bert and Ellice Group (see February PIM) shows that the native pro ducer of copra, after officialdom has done with him, gets about £2O Australian per ton. Yet that same copra can be sold in a European port for £lOO per ton more.

The G. & E. Government takes over all the native-produced copra, and “slugs” the producer with freight, storage, shrink age, insurance, handling, export duty (25 per cent!) and deduction for “Develop ment and Welfare Fund”; and then sells the copra under the MOF contract for about £55, which gives the British buyer an advantage of about £7O per ton. In the Western Pacific it is called “Govern ment racketeering.” That seems a mild term.

Mr. A. D. Playfair, export sales manager for W. D. & H. O. Wills (Australia) Ltd., well known tobacco manufacturers, will leave Sydney by air on March 31 on a business visit to Papua and New Guinea.

After visiting Port Moresby, Samarai, Lae, Madang and Rabaul, he will return to Australia on April 24.