Withdrawal Of Reparation Estates’

Western Samoa Gets Out Pruning Knife

Grant Puts Govt In A Spot

The people of Western Samoa who, with a certain amount of fanfare, were handed over the old New Zealand Reparation Estates some months ago, as a gesture of love and affection by the NZ Government, don’t appear to be going to get any golden eggs from the bird this year.

r[AT seems to be the meaning of the announcement made by the West Samoan government in mid-July. For many years the profits made by the Estates were handed over to the Samoan Government and this year they were expected to yield £126,900. The

estimated revenue of £1,165,300 for 1957 took that sum into considera tion.

Our correspondent does not tell us why this amount is not forth coming but it is obvious that there is some misunderstanding some where in government accounting

circles.

The Reparation Estates we former German plantations tak} over by New Zealand when s= occupied Western Samoa in 19( Unlike the similar organisation New Gui n e a—the Expropriate Board—New Zealand did not s= the estates to private enterpr: (although a large proportion of tl land was returned to Samoc ownership over the years) but ke them as one entity and ran the as a Government enterprise.

The Estates produce cocoa, copi cattle and various other cor modities and in post-war years ha been highly profitable. Profits we turned over to the Governme for the benefit of Samoa and t) Treasury has come to look upc these “grants” as part of norm revenue.

Along with their desire for see government, the Samoans had desire to have the Estates— someone put it, they had enjoys the golden eggs for years, now tlr wanted the whole golden goose.

At the end of March they got NZ turned over to them a million enterprise, apparently witt out any strings attached.

The name was changed Western Samoa Trust Estaij Corporation and a board of cont:; was appointed.

Whether the Corporation did n make any profits this year; whetM it has something else to do wr the £126,000 the Governme calculated on getting; or whetM the whole thing is part of an inte; Government-d epartment boo keeping entry and the Governme. will get the money in another wr, we have no way of knowing.

In the meantime, our corrr pondent advises that the Execute Council is busy pruning the 19. estimated expenditure to take cs; of the £126,000 it will not get. says: r[E- shock with which t!d announcement (concerning t £126,000) was received by tr people of Samoa was hare mitigated by comments by the Hi] Commissioner (Mr. G. R. Powld that “the Executive Council w going through the process taking a few reefs in the saill or further announcements detailif the various projects which had j be adandoned; or when it becaf known that over 100 employees ; the Public Works Department hi been dismissed and that furtEc dismissals were intended.

For long years the finanoj policy of the Government has bet criticised during the finanoj debates in the Legislative AssemMi The Government has never devki a plan of adapting capital as current expenditure to the econom resources of the Territory and ww on a reckless spending spree ev(

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when it became evident last year that poor crops and sinking produce prices would almost certainly seriously affect the economic situation of the country and con sequently, Government finance.

Over the strong objections of members of the Legislative Assembly, even the small Reserve Fund of £500,000, which could and should have served to cushion a shock like the present one, was all spent on various projects of doubtful necessity. The present situation has arisen solely by the disastrous financial policy of the last two years.

The withdrawal of the Reparation Estates grant of £126,900 and the consequent deficit in the revenue )f the Government does not tell the story of Government difficulties.

In spite of Government state nents to the contrary, it is believed fiat there will be an additional ieficit in the ordinary revenue of fie Government, particularly from Customs’ Revenue.

Banana exports during the first lalf of the year amounted to only lalf of last year’s exports for the lame period; there has been only me small cocoa crop harvested this rear and prices were low compared vith last year’s prices; and the jopra price received from the British Ministry of Food was also ippreciably lower. These factors lave seriously affected the whole sconomic situation; imports for this rear so far are much smaller; and >oth export and import duties evied by the Government are «rtain to fall short of the Budget estimates.

Accurate information regarding Government Finances is to be submitted to the next session of fie Legislative Assembly, which >egins August 20. It promises to »e a stormy one.

The Government, with some ustification, contends that it has, o far unsuccessfully, tried to mpress on the Samoan people the lecessity of increasing production if agricultural products in step Pith the rapid growth of popula ion and the demand for social ervices, particularly for health and ducation services. However, the ampaign for increased cultivation if cocoa and coconuts, even if uccessful, must be a long term tolicy as both take years to come nto bearing. In the meantime the Government should have exercised he strictest economy until cir umstances permit freer spending.

Further strong public criticism is evelled against the Government for Mowing the Financial Secretary, •Ir. L. M. Cook, to go on leave a aonth before the Supplementary Estimates are presented to the legislative Assembly. He will thus »e absent from a most important

meeting which will discuss the financial policy for which he is mainly and per sonally respon sible. At the same session another top official of the Samoan Govern ment, Mr. T. R.

Smith, will also be absent. He has attended the Trusteeship Coun cil Meeting of the United Nations and is at present

in London to investigate the chances for the disposal of Samoan copra after the termination of the copra contract with the British Ministry of Food at the end of the current year.

The absence of the two head officials of the Government during the coming Council debates is not goin~ to improve the case for

the Samoan Government in the existing critical situation. t The Yen. Archdeacon H. V. C.

Reynolds, of the BSI, has been awarded the OBE for his devotion to duty and service to the people of the Islands. He has served in the Melanesian Mission since 1934.

Wan-Tse

Wedding

At the Methodist Church Rabaul, New Guinea, recently, Mr.

Tommy Wan was married to Miss Mary Tse. Miss Elaine Tse was bridesmaid, and Mr. K. M. Seeto, best man. Miss Judy Tse

was flowergirl.

Photo: C. H. Meen.