Omising Rabaul Venture Turns

[?]s of Australian oid Scare

Failure Into A Success-Story

Five years ago two young Australians discussed alternative business tures for Rabaul: The establishment of a desiccated coconut :ory—or a coconut-fibre industry. One was started and failed nigh circumstances beyond the control of the promoters. The other iow finding its financial feet.

young men were Mr. ichard Gault, formerly of delaide, SA, and Mr. Harry i, then Rabaul manager of t Gillespie Pty. Ltd., and now ney director of the same firm, were then 29. y weighed the pros and cons i two projects carefully before r deciding that the manufac )f desiccated coconut seemed more profitable. The coconut project then seemed too to launch. New machinery, I in Rabaul, would have cost 0, delivery in 18 months. In mi, there were other heavy shment expenses, is now history how the Red coconut venture failed ;e of a typhoid scare, which through Australia in t-September, 1953, although articular coconut was free of ispect bacteria.

GAULT, encouraged by Mr. rreen and other Robert illespie executives, started sing desiccated coconut in and soon the project was ling, Gillespie’s were buying shipments from Mr. Gault six or eight weeks and it on the Australian market, i the blow fell. A Victorian Health inspector declared he und a group of bacteria, very to typhoid bacteria, in a of desiccated coconut ictured in Papua.

Commonwealth Health ment stepped in and ordered all stocks of desiccated t from P-NG be destroyed, r. Gault’s product had from Rabaul (and most lesiccated came from Papua), •een asked a leading Sydney ologist to examine it. The ologist pronounced it to be f the bacteria. But the t still had to be destroyed 5 labelled “NG”). the Comm?onwealth did later, and allowed Gillespie’s ih it for coconut oil for use ). jreen wrote to the Common- Health Department and if a stamp could be put on

igs containing Mr. Gault’s

: sa ying that the contents

were fit for human consumption The Commonwealth replied that while the coconut was free from bacteria, under the Health Act, its

letter of advice could not be used , , an y form of advertising (which covered stamping the coconut bags). * e „r. S ° ™ Promising industry folded UP- Even now, with the prospect a A S M C °f rt£ i^ e desiccat ed coconut ln . Australia because of import restrictions, the industry will not be started agam-at least not by r - He has sold his machinery, and has pulled the factory down. . It is extremely doubtful if the industry could be started again £ ecau se of public prejudice against New Guinea desiccated coconut.

WITH this bitter experience behind him Mr. Gault turned his attention to his other

enterprises—his cocoa plantation Warenvula, where he lives, carrying business, and his buill business.

He and Mr. Green wrote t other frequently, and often possibility of producing coc< fibre commercially in Rabaul o into their letters.

Early in 1955 Mr. Green said he had come across a partly set of fibre making machii owned by John Lawler and i Pty. Ltd., manufacturers of II Land innerspring mattresses.

Mr. Green, on behalf of Gault, told Mr. Geoffrey Armsti; managing director of Lawler’s' the possibility of establishirr fibre factory in Rabaul,, machinery could be secured reasonable price. The fibre w be of better quality than produced in Ceylon; it coulo delivered more quickly—and itd duty free.

Mr. Armstrong was attractee the prospect and agreed toi the machinery. It was shippe Rabaul late last year.

Mr. Gault had his three • enterprises to run, and he ha do something which he had i done before. Although buildii factorv would not present difficulties, he knew nothing a installing machinery for a factory.

But with a native labour 1 he and his wife (they were only Europeans on the jobl about the job, Mrs. Gault he her husband mix concrete for bedding for the machines.

They made remarkable pro and in February this year, a six weeks after the factory' completed in Rabaul. the first ment of coconut fibre arrive Sydney.

Production has been steppe? steadily, the quality of the fill improving as the natives be familar with the various proc: and there is a ready markt; Australia. By the end of July Gault had shipped between 40 50 tons of the fibre to Gill© for resale in Sydney.

Mr. Gault is gradually overco the “teething” troubles involv\ setting out on such a venture? employs about 20 natives, ano engage more as the bun expands.

FOOTNOTE: It is unlikely\ the desiccated coconut industn be started again in P-NG. the 1953 scare, stringent ordim have been introduced coverinr manufacture of the coconut ii Territory. Another leading Sc importer said that it woulj impossible to produce desio: coconut under such condition a profit, although there certain to be a shortage desiccated coconut in Ausj because of import restrictionsa