Papua’s Income

Rubber, Malaya and Papua’s Income

PLANTERS and merchants In Papua should keep their eye on the political situation in Malaya.

If the Red terrorists in Malaya really do cease operations, the rub ber planters in Malaya may be able to supply increasing quantities of their product to the world markets and at a lower price, which may hold the markets. But if the eight years-old terrorist war goes on the Malayan rubber output will be cost lier; and that in turn will encourage synthetic rubber production.

The Economist, reviewing the world situation in December, notes that the market is high because United States and Western Eurone are producing more and more cars, and because Russia now is buying steadily. That tendency (which brought the world price of rubber from about 16d per lb in 1954 to over 40d in late 1955) appears likely to continue in 1956.

Rubber consumers prefer natural rubber. But when the price gets much beyond 36d, consumers begin to find it uneconomic for their purposes, and turn to the less de sirable synthetic rubber. At any

ng over 30d, and in normal dltions, natural rubber is quite fitable.

'he world consumption of rubber now close to 400,000 tons per aim. Total world production of

natural rubber is no more than 1,900,000 tons—synthetic takes care of the balance.

The immediate outlook for plan ters is good. But they should never forget that, as new techniques are

developed, the quality of synthetic is improving steadily, and produc tion costs tend to get less. In the view of The Economist, the long distance prospect for planters is not so good. t Flight-Sergeant E. W. Metcalf, of the RNZAF Station, Laucala Bay, Fii, has been awarded the British Empire Medal.