Copra Orders

Rivalry For Japan's

rPHE US Trust Territory of Micro nesia is having some hot com petition from Indonesia in supplying Japan’s copra requirements.

Shipping connections and the distance factor decree that Japan is the logical market for Trust Territory produce, but the ability of Indonesia to accept payment largely in Japanese produce, has reacted unfavourably.

Micronesia also insists that Japanese copra importers deposit 25 per cent, of the payment at the time any sale is arranged—and well before it is actually delivered to Japan—as a guarantee that the buyers will not later dishonour the deal if the ruling price falls be fore delivery.

Indonesia, on the other hand, asks only for a 3 per cent, deposit from the Jap importers. Further more,- Japanese importers of Indo nesian copra are able to give their Japanese consumer customers (the soap and margarine manufacturers) a 10 per cent, rebate because, in importing from Indonesia they earn certain privileges in overseas ex change.

t i Th^ s ™ va f’ ious factors, says the Island Trading Co., the organisation handling Micronesia’s exports, add up to making the profitable sale of Micronesian copra on the Japanese market almost impossible at the present time.

There has, however, been a very keen demand from Japan for Micronesian trochus this season and the entire Territory’s output of 350 tons was sold in May for August- September delivery at a high (though unstated) price.