Is Sound, Says Governor

Ew Caledonia’S Economy

(From Our Own Correspondent) The Governor of New Caledonia (M. Rene Hoffherr), speaking at >aris on the island’s economic situation, said that the main problem was to >roduce hydroelectricity at a low cost.

M. Hoffherr added that despite difficulties the economic situation in »Jew Caledonia was sound.

EAP electricity, the Governor said, would relieve the nickel industry of the heavy burden importing fuel for smelting.

I and coke imports now cost it 1,700,000,000 francs a year, le harnessing of the Yate River iroduce 350,000,000 kilowatts a has been the subject of con ations between the Governor officials of the French Ministry >verseas Territories. , Hoffherr has pointed out that economy of the island is based mineral production. Chrome, ganese, cobalt and copper can reduced as well as nickel, itential requirements of electri mergy are huge, and a thorough :h for alternative sources of ir, including locally produced will be made. i date the search for oil has uced only “indications”, but 3 indications are encouraging, il were discovered in a usable ly, it would permit the low es of nickel ore to be smelted important point at a time i New* Caledonia has been jelled to adopt a policy of omy with her ore reserves.

ALING with the population question, M. Hoffherr pointed out that New Caledonia, with three inhabitants to the square letre, is close to a heavily fated zone which includes n (220 to the square kilometre) the Philippines (170). >st of the population is concen d in the towns and villages. >re and more of the indigenous le are being drawn to the n centres and to work in the is, with a consequent neglect ?riculture.

Hoffherr suggested that, after .reful stocktaking of the land able, agricultural workers, ;rably from Prance, should 3 in the island. (The land itory is now being made). :hough an annual deficit was ic time the usual thing in New lonia, in 1954 there was a arable balance o f 800.000,000 ch francs (not NC francs), oerity was illustrated by iantial building activity com ng houses, workers’ quarters factories. cial and political conditions peaceful, and the isolation he island protected the non pean population from disturb outside influences.

SPEAKING of air communications, which at present consist only of the direct Air France link and the weekly Australian service between Noumea and Sydney, M.

Hoffherr suggested that New Cale donia should not only be connected more frequently with Prance, but that air services should link Noumea with French Oceania and with New Zealand.

Meanwhile, some observers in New Caledonia have been ruffled by two members of the French Parlia ment who visited the Colony last year.

Although their stay was brief (one 16 days and the other nine days), the two Senators have pre sented a report of 104 well-filled pages to Parliament, covering geography, politics, economics, social, financial and mining matters,

jluding a study of the Nickel mpany, its present and future iivities and its influence on the bs of the people. rhe report claims that New ledonia’s isolation has reduced (influence of France and has pro sed “a sense of subordination to stralia”. It implies that the local sembly’s powers are excessive and fgests that the Governor should ve the right to veto any decisions ; acceptable to Metropolitan Unce.

' is pointed out that New Cale donia’s financial structure is based on a system of indirect ation, levied on imports and »orts, which reduces incentive to duce and export. It is claimed ,t this is quite in harmony with interests of the big importers, 0 are represented in the local embly.

'he Nickel Company is criticised the grounds that its policy is it very prudent”. It is charged h not having created sufficient jrves 'Whether of ore or of aey is not stated), and with ing to modernise its smelters 1 organise prospecting with com ;e efficiency. atu Edward Cakobau, Ratu >rge Cakobau and Ratu Penaia lilau have been appointed Fijian nomic Development Officers, ly will be concerned with mising the production and crops from Fijian 3s. hree heads of Government artments in Fiji are on pre rement leave. They are Messrs.

W. Plucknett (Government •ekeeper), R. V. Cole (Director Lands, Mines and Surveys) and E. Donovan (Accountant leral).

Naitauba Island from the ridge behind the homestead.