Pacific Commerce and Produce

Philippines Copra Flood Depresses The Market

Because Philippines copra production has recently been at a much higher rate than was

expected, large supplies have

reached the European market

and, with considerable quantities

afloat, London prices receded

sharply in April.

A VERAGE price for the month AW a s £Stg.77/5/- per to n £Stg.7/15/- below March s quota tion.

Although the decline in price was not entirely unexpected, Mr. lan McDonald, chairman of P-NG Copra Marketing Board, commented on May 4 that selling confidence was rather shattered, as the fall “almost approached the dimensions of a collapse”.

Mr. McDonald said that, with cheap Philippines copra available, European oil crushers upset the US market with coconut oil offering down to 16 cents c.i.f., New York.

Consequently, US crushers reduced their price offers for copra — creating a snow-balling effect, with European crushers taking full ad vantage of the situation.

One bright spot, however, was that at the present lower price levels increased consumption should come about. In addition, since the market uneasiness started some two months ago, consumer stockpiles are probably by now down to a minimum. Thus, if some stability is established in the market, buying interest would return to normal.

Of the 7,000 short tons of US Gov ernment stockpiled coconut oil re leased in March, only 2,800 tons were sold, with little effect on the European market. Most tenders apparently were below current market values, and 4,200 tons were carried over for May release.

Higher Duty Now

On Rice For Fill

Higher duty on rice imported into Fiji has now come into effect, fol lowing a defeat of a motion in the Fiji Legislative Council. The duty is intended to protect the expand ing rice industry from overseas rice, which can be delivered cheaper than Fiji can produce its own. It was

to have come into force last Jan uary but was postponed.

Mr B. D. Lakshman, Indian member for the North West, sought a further postponement at the end of April on the ground that it would be a month or two yet before local rice was available in quantity and there might be a black market in rice in the interval, with imported rice bought at the old price and selling at the new price.

The Government maintained that importers were already overstocked and no black market was likely to develop in the short interval re maining. The move for a postpone ment was defeated.

Study Being Made Of

Labour In The Cooks

A special committee has been set up in Rarotonga by the Administra tion to study labour conditions in the Cook Islands.

In an official statement, the Resident Commissioner, Mr. Nevill, said that while industrial relations over the past ten years had been good, he felt it was time that a general study of working conditions was made. The establishment of further secondary industries made it desirable to consider whether some local factory legislation was now necessary. Workers compensa tion should also be considered.

The committee which is to report on its findings by mid-May, con sists of the Secretary to the Gov ernment, the Industrial Relations Officer, Messrs. C. T. Cowan and T. P. Makea representing the In dustrial Union; Messrs. B. Houston and W. H. Watson representing the main employers 1 , and Makea Nui Teremoana Ariki and Mr. G. Strick land, Snr., representing the Legis lative Assembly.

Chief Judge Morgan was appointed Chairman, with the Secretary to Government as Deputy Chairman in the judge’s absence.

Tonga Makes Plans

For Surplus Bananas

Bananas are Tonga’s second ex port, worth an average of £135,000 per annum over the past six years, as compared with copra worth an average of about £H million.

Tongatapu especially, with its net work of good roads and its flat terrain, is particularly well placed for the export of a good-quality, un damaged grade of banana, and has the capacity for considerable ex pansion of the industry, though it is affected a good deal by the wide fluctuations in rainfall.

But Tonga can see that New

Zealand is unlikely to be abl( when present import restricts eased, to take all the banans Tonga, Samoa, and Fiji coul duce. At least not in then form. So there is consideral terest in the possibility of £ banana industry or any ott dustry which can absorb t. cess.

As the result of a good « talk in Fiji about the prosp a dried banana industry in months, Tonga lost no time ii ahead and ordering drying ment from overseas for mental purposes, and is ducing a dehydrated produc also planning to produce, as product, pig food—using tlu and reject bananas.

Some of this pig food co used locally, and it is hope it might be possible to esta market overseas in competitii other kinds of pig food. Th duct is much easier to produt the partly dehydrated banam only from fully ripe fruit, ii for human consumption confectionery trade.

But Prince Tungi is ver: alive to the probable highen offering in the latter indusc in March he induced Proweller, who has been mental in creating the reo terest in Fiji, to go to Nu to discuss possibilites.

Gilbertese For New

Hebrides Fishing Base

Following an on-the-spot inv/ by two Gilbert Islands represents year, Gilbertese labourers are nu employment with South Pacific F l 5 (New Hebrides) Pty.. Ltd., at tM kulo tuna fishing base.

:t group of 26 men was recruited rrom Kuria and Aranuka islands rhing company’s 1,000-ton supply xto Maru”. Pay rates are similar :iin the Gilberts—about £9 per Jth the addition of overtime, •oeriod is two years, fs an excess of labour in the land the Government has been »venues of employment for them se Colony It is hoped that more Pallikulo and that others may fed as labour by New Hebrides Negotiations to this end are »ogress. in May, Mr. M. L. Bernacchi.

Commissioner, Gilbert and Ellice aid that the possibility of estab lish cannery in the Colony had litigated but had been found im e, due to lack of the large of fresh water required. A xr local consumption, especially i of dried fish flakes, might be but a recent survey by the xiflc Commission had not been dy optimistic as to the fish popu- IGilberts’ lagoons, tfishing by canoes fitted with out ers seemed to offer better pros : Bernacchi said, and it might be 0 improve local fish supplies by ns.

[Fishing And Salt. Mr. Ber

iid there was known to be some -pearl shell in Abaiang lagoon, Tarawa, and an experimental se of diving would probably be jit to investigate the possibilities itdustry. uthern Gilbertese often suffered [reduction in their income from a result of prolonged droughts, Mr. Bernacchi, and SPC had 3ded that a salt industry be es at Beru. It was believed that >ct could be marketed in Fiji, llustry might tide the people over ►eriods, and it would probably be soon. There is a native salt in Papua. 1 COPRA YEAR. Discussing the tp. which averages about 10,000 annum (with wide variations due (ts), Mr. Bernacchi said that the rear promised to be moderately t two very bad years. Over 7,000 estimated for 1960. There was idelayed effect from droughts and :une time for palms to recover, ramme of replanting was under ;ion, but it would be enormously land-owners would have to be ;ted for trees cut down in the land clearing and thinning of u, self-sown plantations. A short of production would 'result, but ong run properly spaced young >uld prove their worth. Due to • cost, this would necessarily have ong-term project, trnacchi stated that copra was ;.y’s only crop, and the prospects Ither in the near future seemed [pite progress made in soil im :t techniques by agricultural in recent years, ssibility of a copra crushing mill itigated several years ago, but it been decided that if there was change from shipping copra to [entire output was sold to Lever’s :i be better to have it crushed in

iAarket For

uganese

Ibecause Australia recently eased sstrictions on manganese, Fiji is harder to market low-grade ore id been having a fairly ready

market in Japan. Present price is about £Pll per ton, f.o.b.

Australian manganese ore also has the advantage of being in large lumps, whereas most Fiji ore is of a granular nature, not so popular with smelters. Most of it is shipped by the Japanese Banno firm which has its own time-chartered vessels. De posits are mainly on Viti Levu, with one also on Moala Is.

Bannos are still carrying out exploratory work on a copper deposit at Udu Point, Vanua Levu, to determine its extent. The company’s manager, Mr. K. Nagashima, said in Suva last month that it should be possible to decide within another six months whether it would be worth estab lishing a concentrate plant there, in which case about 300 local men would be em ployed.

Bannos are at present exporting from 2,000 to 3.000 tons of medium grade iron ore per month from Tau, near Nadi, through Lautoka port. This ore averaging about 63 per cent, purity, is currently worth around £3 per ton.

Japanese MOP Fleet's

Small Haul

The Japanese mother-of-pearl shell fish ing fleet which has been operating in waters north of Australia in recent years, sailed from its home port of Kushimoto, Honshu, on May 2 and was due on the diving grounds on May 19. As last year, there are 11 fishing vessels and one fisheries inspection vessel.

Last year, operating in Australian off shore waters, the fleet fished 346 tons of shell valued at approximately £A131,000.

It was the smallest haul since post-war diving began, but the quality was better than in the previous year.

Under agreement with the Australian

government, the diving area this year will be restricted to waters west of Torres Straits grounds. Quota is about 400 tons.

PI Mines Ltd. Will

Double Its Capital

A new issue of 4.459 shares to share holders at par, on the basis of one for one held on May 20 will be made by the recently-floated Pacific Island Mines, Ltd., Papua.

The new funds will finance expansion of operations at Misima Is., including new equipment. Operations to date have re vealed promising gold mineralisation, directors report.

Payment will be £5 a share, including £4/15/- pre-paid call on application by June 24.

The old shares were sought at £lO on Sydney Stock Exchange in early May. with no sellers.

Search For Oil Abandoned

In Dutch N. Guinea

Netherlands New Guinea Petroleum Co., a joint venture of Bataafse Petroleum, Standard-Vacuum, and Far Pacific Invest ments Inc, has ceased its oil search activities in Netherlands New Guinea. It had undertaken “an extensive and costly” exploration for oil in Netherlands New Guinea since 1935.

The end of the search follows disappoint ing results. Quantities of oil found at Klamono, Wasian, and Mogoi were much smaller than had been hoped.

Prospects of discovering further accumu lations of oil. capable of commercial de velopment, were such that continuation of exploration activities in the remote and barely accessible region was not warranted.

Dylup Revalue to Make

Bonus Dividend of 1 For 4

Dylup Plantations, Ltd., New Guinea, will make a one for four bonus issue of shares on June 7.

The bonus dividend will follow revalua tion of assets by about £55,000, to £ 279,G00. .

The chairman (Mr. F. N. Warner Shand) announced the bonus at the annual meet ing in Rabaul last month.

The bonus will involve 81,500 new 107shares. Paid-up capital after the issue will be £203,750.

Directors expect to maintain the current 20 per cent, dividend on the higher capital.

Bonus shares rank for dividend from April 12.

The company also plans to split its 107shares into 5/- units as from June 2.

Mr. W. T. Thomas has resigned from the board.

Burns Philp (SS) Co. Shows

Increased Profit

At the annual meeting of Burns Philp (South Sea) Co., Ltd., in Suva, on May 14, the company’s annual accounts to January 31. 1960, disclosed net profit of £ F 163,035, an increase of £F2,751 over the previous year.

Profit was after depreciation £F73,850 (last year £F75,962) and general expenses and tax of £F481.750 (£F487,911).

Ordinary dividend of 10 per cent, is un changed and absorbs £FIOO,OOO.

In their annual report directors said trading conditions generally throughout the Islands proved satisfactory. While shipping results were disappointing, a gratifying increase was recorded in mer chandise sales and sundry ventures.

Accounts show fixed assets up from £ F 541.595 to £F562,921 (at cost less de preciation). Reserve was again raised by £F50,000, making it £F675,000.

Because of the necessity to make sub stantial provision to cover hurricane and other unforeseen losses, no dividend was received from the subsidiary B.P. (New Hebrides), Ltd., during the year

Sandy Ck. Gold Sluicing

Suspends Operations

In view of unsatisfactory returns over the last eight months, together with the difficulty of securing a manager and staff with the necessary alluvial gold mining experience, Sandy Creek Gold Sluicing, Ltd.. NG, has temporarily suspended operations as from March 31.

The company is applying for a sus pension of labour conditions on its pro perty for six months to give it time to consider its position and make appropriate arrangements.

World Copra Production

Dropped in 1959

World exports of copra and coconut oil ? g i7n n nnn e f lmed durin 8 1959. Copra at inco’ 009 t( ? ns was 40,000 tons lower than 908, whilst coconut oil production dropped by about 15 per cent.

Indonesian exports, surprisingly enough improved slightly, largely the result of an increase in unregistered shipments to Mala .y a - orth Borneo and India, fon- iP (P mes su PP lies suffered a setback, n f i ollB ’ the prolonged effect of the 1957-58 drought. viS? P n rtS fr ° m the Paciflc Territories were hnt fv^ ly unchan § e d. at about 265,000 tons; Cevi™ ere Wa ! an unex Pected increase in expor , ts which rose from 61,000 tons (coconut oil equivalent) to 95,000

Copra imports into Europe were gener ally lower, declines being most marked in West Germany and the Netherlands.

Present Papua-New Guinea production is still being maintained (24,922 tons for January-March, 1960) as compared with 1959 (24,683 tons for same period), re ports the P-NG Copra Marketing Board.

AFC's New Well Site

Ready Soon

Preparations for the drilling of lehi well, Papua, are proceeding satisfactorily, despite difficulties caused by the jungle covered, pinnacled and creviced limestone terrain between Kikori River and the rig site, reports Australasian Petroleum Co.

Levelling of the area at the well site to take the drilling outfit is practically com pleted. Erection of the rig will begin late May.

Almost two miles of a two and a half mile pipe line has been laid from Kikori. The pipes are being laid in half mile sections with the aid of helicopters.

New PNG Timber

Co. Floated

A small, new timber holding company was floated quietly in March —Pacific Islands Timbers (Holding), Ltd. Most of the 132,000 shares of 5/- each, at par, were placed in Port Moresby.

It took over P.I. Timbers, Ltd., which conducts two sawmills, has a modern timber yard at Port Moresby, and also the only timber pressure impregnation plant in P-NG.

Government tenders in the Territory specify that timber must be treated against termites.

Pacific Islands Timbers (Holding) ex pects dividends of 12Vfe per cent, in the first year. Net assets are 5/4V 2 for each 5/- share. Listing on Sydney Stock Ex change will be sought.

Papuan Apinaipi Issues

Million New 5/- Ords.

To help pay its share of the cost of exploration and oil search by its associated group in Papua, Papuan Apinaipi Petroleum Co.. Ltd., offered 1,000,000 5/- ordinary shares (with options) to share and option holders registered in March 25. The issue closed on May 14.

The finance will also be used to main tain the company’s share in the group’s Australian mainland programme.

Papuan Apinaipi’s capital (before the issue) was 6,457,562 5/- ordinaries and 5,558,241 options.

BGD Restores Dividend

Bulolo Gold Dredging, Ltd.. New Guinea, has raised its interim dividend.

For the period to May 21, dividend will be 25 cents Canadian. Last year the com pany paid an interim 20 cents and final 25 cents. Latest dividend restores the 50 cents rate paid in 1957-58.

During the nine months to February 29, BGD earned net profit of $355,000 Canadian. Gold production rose by 2,329 oz to 17,771 oz (valued at $621,985 US).

In addition to the profit from NG opera tions, the company has received dividend of $354,800 from Commonwealth - New Guinea Timbers, Ltd., and dividend of $50,300 from Placer Development, Ltd.

Plantation Holdings Do

Better Than Expected

Plantation Holdings, Ltd., NG cocoa and copra growers, announced in Rabaul last month that the first half-yearly divi dend would be 6 per cent., as a result of

satisfactory trading. This indicate*, per cent, yearly rate.

The company was formed in June year, when directors estimated a div of not less than 10 per cent, a year;, capital is £ 150,000 in 5/- shares.* It conducts the former trading bn of Mr. G. B. Black at Rabaul and of three plantations on New Britain at on New Ireland. Additional cacali are being planted on the propert®

Australia's Pearling

Rights Unchanged

Proceedings at the recent Gerel of the Sea Conference would noffl Australia’s pearling fields on thM nental shelf. Sir Garfield B?

Attorney-General, told the House ofl sentatives, Canberra, on May 3. I A proposal for a six-mile wide tea sea over which the maritime natil cerned would have exclusive rigll also an extra six-mile limit for e| fishing rights was defeated at thi ference.

An earlier convention guaranteii tralia’s right to any produce on tl tinental shelf, irrespective of its a

Fiji Bananas Banned

In Hawaii

Strict Hawaiian plant quarantine lations prevented two sample cs polythene-wrapped fresh banana? passing through Honolulu aboard tl “Himalaya” en route to Canada re: The fruit was to be taken b; Deputy Director of Agriculture, .j Lamont, proceeding on leave to L the way, he planned to investigc market for Fiji bananas in Canad* However, because of the small of fruit involved, arrangements ca be made for it to be sealed in frigerated locker for the voyage—ii have been carried in the ship’s fn vegetable store, which is unseal* though the bananas were to remain ship at Honolulu, quarantine regs there would not permit even this, of banana diseases known to e Fiji being introduced. The fruit have had to be dumped prior to< in Hawaii.

In the circumstances, the sampt could not be taken.