Financial Crisis

W. Samoan Headaches

Continues

IT has been known for a long time that the Samoan Govern ment has been in a precarious and most unsatisfactory financial position and that revenue is barely sufficient to cover expenditure.

The wasteful and unrealistic financial policy of the Government was severely criticised by the last Legislative Assembly, particularly by European members—but their warnings were disregarded.

The position is now critical, a fact disclosed by the Statement of Receipts and Payments for the nine months ended 30/9/57 recently pub lished by the Samoan Treasury.

The Statement shows a balance of £205,448 On hand in the General Treasury Fund. Receipts for the period were £693,952 and expendi ture £932,922, leaving a deficit of £238,970. The amount remaining in the Treasury is sufficient for only two months at past rate.

Only by the most stringent economy can the Government avoid

complete insolvency.

It is clear that the financial dif ficulties of the Government, what ever happens, will continue right through 1958, and that the Govern ment set-up will be faced with dif ficult and unpopular decisions.

Already the High Commissioner has indicated the need for additional taxation and for a severe pruning of Government expenditure, though the proposed reduction of Depart mental Expenditure by 20 per cent. has already been found to be im possible without reduction of essential social services, particularly in health and education fields.

Though the unavailability of the grants by the Western Samoa Trust Estates Corporation has undoubtedly contributed to the present dif ficulties of the Government, it can not oe considered the sole reason.

The previous assembly, which passed the Estimates were not financial experts and had to rely on the advice and knowledge of the Government experts, particularly of the Financial Secretary, who drew up and submitted the Estimates.

W. Samoa Correspondent.

Friendship between New Guinea and Dutch New Guinea was the keynote when Rabaul recently welcomed the Governor of Dutch New Guinea, Dr. J. Van Baal, during Dr. Van Baal's official tour of the Territory of Papua and New Guinea. Picture shows Dr. Van Baal addressing a dinner in his honour. With him are the TPNG Admini strator, Brigadier D M. Cleland; and the wife of the acting New Britain District Com missioner, Mrs, M. B, Orken.

Photo C. H. Meen