South Pacific Planters Plan A

United Protest

Iniquity of the British MOF Contract

AT the beginning of July, there was afoot an active move to organise a conference in Sydney between rep resentatives of the New Guinea Planters’

Association, the Fiji Planters’ Union and the British Solomon Islands nlanters, to consider, and if thought desirable, to take action in relation to: fa) The price being paid to copra pro ducers under the British Ministry of Food Contract; fb) The high and increasing price of copra sacks.

The MOF price of copra, which is in the neighbourhood of £5O per ton, has been for a year or more a source of increasing irritation to South Pacific copra producers.

The New Guinea and Fiji planters, while generally discontented, do not actu ally challenge the nine-years contract it self. They take the view that the contract was entered into bv both sides in good faith and, if the world price is now far in advance of the MOF contract price, that only means that the luck of the contract has been with the British Min istry of Pood. If the world price had fallen substantially in the same period, the luck ,of course, would have been with the growers.

The strong objection to the present arrangement lies in the fact that the British Government devalued Sterling by at least 30 per cent., in terms of world values, after the MOF contract was made, and continues to pay planters in this de preciated currency, although the world price of copra has been more than double the amount provided for in the MOF con tract. In other words, the British Gov ernment, by sheer trickery, has for a year or more been robbing the South Pacific planters of about £3O per ton. Rearrange ment of Sterling values should have been followed by a rearrangement of the MOF contract.

Strong representations have been made on this matter by both New Guinea and Fiji planters; but the Ministers and burea crats concerned will not face up to the situation, and run away from questions.

The British Solomon Islands are in a different position. They insist that at no time did they accept the MOF contract, and that it was forced upon them by the BSI Government. They have been making inquiries lately concerning their legal po sition, and there may be some interest ing developments.

Concerted action by the planters from the three Territories may be expected to produce results of a more tangible charac ter than have been secured by isolated action over the past year.

Copra Sacks Position Serious

THE position in relation to copra sacks is serious, and is becoming worse.

There is a world wide shortage of jute, and copra bags are only one of several jute products which are in short supply. Copra bags, which a few years ago could be purchased for a few pence, -are now more than 6/- each, and in creasing in cost. , Wherever possible, planters are meeting the situation by shipping copra in bulk — that is, using the bags only for transport to ship, and bringing them back empty for use again. But this system calls for organisation and co-operation as between producer and consumer, and few trans portation concerns are in a position to co-operate. The Carpenter ships are

among the few which take copra in bulk.

The shortage of bags could easily create a situation crippling to the copra industry, and the outlook is so blue that consulta tion among South Pacific copra producers is urgently needed.

All over the world, experts are examin ing fibres which they hope may be used as an alternative to jute, and some thing of the kind doubtless will be brought into use in a big way. But nothing appears at the moment to be in sight; and the change-over to the use of new material in any event will take time.

European Copra Market Recedes

BETWEEN April and mid-June the copra market in Europe showed an easier tendency, and prices steadily declined. The Bank of New Zealand’s Produce Circular, dated June 1, said that this fall in prices was due to freer offer ings from Singapore, Indonesia and the Philippines. “Buyers have been reserved and have limited their purchases to im mediate requirements,” says the circular.

The following prices were quoted in London early in June: — Straits—£97 Sterling per ton GIF Europe (a fall of £2l in two months).

Philippines—22o US Dollars GIF Europe (a fall of 65 dollars per ton in two months).

Quotations for coconut oil had similarly receded in April and May. Ceylon coco nut oil was quoted at £155 per ton GIF, and Straits at £152.

Ng Planter Wants To Know

ON June 19, the PIM editor wrote as follows to the Australian Minister for Territories: — “Several times, in the past year, I have been asked by coconut planters in the Pacific Islands whether they are compelled to sell their copra to the various bodies which have made a contract with the British Ministry of Food. They want to know what is to prevent them from selling their copra to agencies which offer them the world price, which as you know is practically double the Ministry of Food’s contract price.

“For example, I have to-day received this letter from a well-known New Guinea planter: ‘Can you tell me if we planters are bound in some way to sell our copra to the Production Control Board? What would happen if I were to take a load of my copra in my schooner and sell it in Hollandia just over the New Guinea border in Dutch New Guinea? Why should I be compelled to sell my copra here at less than £5O per ton when, in non-British ports it can be sold for anything between £lOO and £l3O per ton.’

“I should be grateful if you would give me some information which would allow the Pacific Islands Monthly to reply to this question and to put an end to these frequent queries. No one to whom I have applied hitherto has been able to give me any definite information concerning the way in which copra producers in the Pacific Islands are bound by the terms and conditions of the contract made with the British Ministry of Food.”

On July 6, the Minister informed us that to ensure fulfilment of the obligations un dertaken bv the Australian Government in its contract with the British Ministry of Pood in 1949, the Government works through the Production Control Board: “This Board is authorised to buy and

sell copra on the Government’s behalf, and is the only authority in the Terri tory to whom export permits are given bv the Administrator who, under the Terri tory Customs Ordinance has. by procla mation, prohibited the export of any copra from the Territory except with his con sent.”

New Guinea-Papua now produces about 70,000 tons of copra per annum. Ap proximately 25,000 tons of this is sold to Australian crushers, presumably for con sumption in Australia, and 45,000 tons go to Britain under the MOF contract.