Is London Trying To Torpedo

Stop-Press Article

The Mof Copra Contract ?

CHE position of the South Pacific copra market, as on January 16, is clearly set out in the Tticle on page 16 hereof.

The position was that the British linistry of Food had informed the [ritish Governments affected by its ine-years’ copra-buying contract Australia, in respect of Papua and 'ew Guinea; New Zealand, in re ject of Western Samoa and Cook stands; Fiji, in respect of Fiji and 'onga; and Western Pacific High 'ommission, in respect of Solomons nd Gilbert and Ellice Islands) that price reduction of 10 per cent, was roposed for 1953.

On January 20, after page 16 was rinted, but just as this page was oing to press, new information be ame available.

It npw is believed that the British roverhment is trying to create a tuation which will bring about the mediation of the MOF contract.

The British Socialist Government lade many food contracts with

overseas countries —the 9-years’ copra contract was only one of them. The non-Socialist Govern ment has found those contracts embarrassing, and is prepared, as a matter of policy, to get rid of them.

Already some have been cancelled.

The position that now has de veloped in relation to copra gives the Government a chance to get rid of the copra contract, also.

The British MOF contract, made in 1949 for nine years, provided that the price should not vary more than 10 per cent., up or down, in any one year. The price has risen twice since then. The 1952 price was a rise of 10% over 1951.

At the end of 1952, the British MOF decided to reduce the price for 1953 by 10 per cent. (See page 16.) But world rate now is £2O sterling per ton better than the MOF contract rate for 1952, and is rising.

The South Pacific Governments were confident, therefore, that the

MOF 1953 rate at least would re main at tihe 1952 rate. But it was learned on January 20 that not only is the British Government insisting on the 10 per cent, reduction for 1953—it also is delicately offering as an alternative the cancellation of its 9-years’ copra contract, made in 1949.

There was trickery from the be ginning in this MOF contract. The original MOF price (1949-50) was close to world price, and the planters were well pleased with it. Then, overnight, the British Socialist Gov ernment depreciated Sterling by 30 per cent, and insisted on paying its MOF copra contract prices in Sterl ing; so that the South Seas planters, during 1950 and 1951, were paid for their copra at least £3O per ton under world parity.

World price fell in 1952, but never fell below the MOF price, so the British Government did not lose.

Now, the world price is £2O per ton over the 1952 MOF price, and still the British are trying to reduce the MOF price by 10 per cent.

The London bureaucrats appar ently are saying: Take the 1952 rate, less 10%, or cancel the con tract and go onto the world market.

Not a word about the bare-faced robbery of the planters in 1950-51.

It leaves a very bad taste in the mouth.