Rubber Industry

World Prices Rise

In Papua

Awaiting Report

THE report of the findings of the Australian Tariff Board, which investigated the Papua rubber industry last year, had not been published in early September.

Meanwhile the president of the P-NG Planters’ Association (Mr.

B. E. Fairfax-Ross) says in his annual report that the imposition of an export tax on rubber from the Territory, and an import tax into Australia is “sectional and basically unfair.”

Mr. Fairfax-Ross added that while planters did not deny their responsibility to contribute to the cost of government, they felt that such taxation, levied against rubber only, was unfair to rubber pro ducers.

The report shows that members together own 23,400 acres of rubber plantings, 20,500 acres of coconut lands, and almost 1,000 acres of cocoa.

EARLY in August, rubber prices reached their highest point since April, 1951, the spot price in London for No. 1 ribbed smoked sheet reaching 431 d per lb, and in New York 471 cents.

The causes of the unprecedented rise are given as Russian purchases after an absence of three years from the world market; the recent London shipping strike causing a heavy fall in UK stocks, which had to be built up, and heavy purchases by the United States motor industry, which is enjoying a seasonal prosperity.

As a result, Papuan rubber shares on the Sydney stock exchange have shot up, Koitaki shares rising from 38/6 to 50/- in the last two months.

WORLD production of natural rubber for 1955 is estimated at 1,854,000 long tons, according to the International Rubber Study Group.

Synthetic rubber output would total about 985,000 tons.

World consumption of natural rubber would be about 1,830,000 tons, and synthetic about 955,000.

The surplus would be available for Government and commercial stock piles.

Natural rubber production last year was given as 1,802,500 tons, and of synthetic 716,000.

Estimated production this year will include: Indonesia, 748,000 tons; Malaya 600,000; Siam 113,000; Ceylon 95,000 and Vietnam 60,000.

Synthetic production is; United States 886,000 tons; Canada 93,000; West Germany 6,000.