Exchange Rate

Fiji Urged to Review Exchange Rate President’s Address to Suva C of C

AT the 50th annual meeting of the Suva Chamber of Commerce in August, Mr. W. G. Johnson, General Manager for W. R. Car penter & Co. in Fiji, was elected President for 1953-54, in succession to Mr. J. Trotter, formerly General Manager for Burns Philp (SS) Co., Ltd., who recently retired and left the Colony.

Messrs. A. H. Marlow and M.

Brodie were elected vice-presidents; Mr. D. Aidney was re-elected secre tary-treasurer; and Mr. A. E.

Pearce re-elected auditor.

Mr. Trotter, in his annual report, noted that the adverse balance— excess of imports over exports—of the Colony had increased in 1952 to over 21 million pounds.

The large volume of imports, says the report, were the result of im port restrictions imnosed in New Zealand and Australia, causing British manufacturers to have sup plies for export to other areas, in cluding Fiji, at an earlier date than would otherwise have been the case.

The same cause had made more shipping available from the UK to Fiji.

A contributing factor in the ad verse balance was expansion ot trade with Japan—£3Bo,ooo worth of goods had come from there, com pared with £167,000 worth in 1951.

Finally, goods had a higher landed cost in 1952.

Imports and exports for the year had represented an all-time high, the values being approximately £l2 million and £ll million pounds re spectively.

The retiring president said that the Chamber’s function should be to assist the Government to direct wisely the economic development of the Colony. In this respect, one of its urgent and important aims should be to obtain from the Gov ernment an assurance that its de velopment policy be largely asso ciated with and aided by private industry.

Mr. Trotter also believed that the time is opportune for the Fiji Gov ernment to review the exchange problem.

“The Colony debased its currency in terms of sterling in 1933 to assist its primary producers. That assistance is no longer required if the statistical figures of this report are interpreted correctly and wisely,” he said.

“With the Colony’s trade in a buoyant state and the immediate future of the markets for its main primary products assured by agree ment . . . the time is opportune to seriously consider and determine a more realistic approach to the im portant question of exchange which has so largely influenced the cost of living . . . over recent years.”

Gibbes Sepik Airways has pur chased another Norseman aircraft for its services in Papua-New Guinea. The latest acquisition was bought from the Zinc Corporation and was recently flown from Bris bane via Townsville and north Queensland air ports to Port Moresby.