Success Brings

Cocoa Scheme Success Brings P-NG Alarm

Prom a Rabaul Correspondent The pointers are evident in P

NG that the Administration of

the Territory has replaced what was a mild feeling of worry with a real feeling of alarm towards

trends in the Tolai cacao project.

NATIVE Affairs officers who nine months ago were optimistic, are now admitting their worry frankly.

Here are the issues at stake: The Tolai cacao project was established seven years ago by the P-NG Administration in the Gazelle Peninsula area of New Britain. It was designed as a rural develop mental scheme for the benefit of the Tolai native race living in that district.

From an agricultural point of view it has been an outstanding success.

It has borrowed £220,000 from the Bank of New South Wales (on Gov ernment security) and it has used the money to establish a flourishing primary industry, a chain of modern fermenteries, and a successful market for its processed cocoa.

A Financial Success From a financial point of view it has been equally successful, re deeming its borrowings ahead of time and bringing thousands of pounds into the Tolai community.

But its very financial structure is threatened today because an in creasing number of growers are sell ing their beans to outside fer menteries instead of to the scheme s own fermenteries.

Two years ago the Tolai fer menteries were processing three times as much cocoa as the out side fermenteries. Last year the Tolai fermenteries were processing less than one and a half times as much cocoa as the outside fer menteries.

It is essential for the continued financial health of the project that it handle the greatest possible bulk of native grown cocoa from the Gazelle Peninsula.

The native is selling his cocoa outside the scheme for a variety of reasons, but mainly for extra money.

Outside the scheme he gets an immediate cash payment instead of having to wait for progressive pay ments from his own scheme. He also avoids paying a levy which operates inside the scheme to finance ad

inistration costs and redemption the bank loan. , . , .

Either he is too short-sighted to 3 how his attitude is damaging e scheme or he doesn’t care.

The Big Argument

Today’s big argument is whether not the Administration would be stifled in passing legislation mak y it illegal for natives to sell out le the scheme.

One important aspect to be con lered concerns the moral rights or ongs of legislation which at heart >uld restrict freedom of choice of e individual.

The Rev. Wesley Button, Chair m of the Methodist Mission in e New Guinea Islands and one of e be s t-known missionaries in NG, believes restrictive legislation mid be justified because of its n.

Says Mr. Button; “The Admin ration must surely have the right make laws which will protect the ilai from himself if necessary. It better to take such a step rather an to let such a magnificent aeme collapse for an inane reason. ‘Much as we must protect free m of the individual, we owe it to e Tolai to stand by him and pro -3t him while he is growing up in e art of business.”

Another aspect is the fate of the tside fermenteries which are now cepting the native cocoa. Any law lich would force the Tolai to sell thin his own scheme would mean e collapse of some outside fer sntery businesses.

The Administration’s resp o n )ilities in the matter are com icated by the fact that the fer mteries concerned could have en refused licences but were not. r sanctioning their operation in e first instance, the Administra >n has taken a step which is dif ult to retrace.

Furious Outcry?

Again, might not the Tolai raise furious outcry if restrictive legis :ion were introduced, and thus iset the balance of the industry? lere is no guarantee that restriclegislation would cure the Duble.

Meanwhile the subject has been ised in the P-NG Begislative mncil, and it has also become the bject of a recommendation from ibaul Town Advisory Council. The mncil has recommended that “no ecipitate action be taken to bring restrictive legislation”.

The Rev. Father James Dwyer, of ibaul, says: “In this problem we ve three conflicting interests— at of the Administration, that of e natives themselves and that the outside fermenteries. We nnot satisfactorily arrive at a lution until we can reconcile the ree interests. I feel this can be ne, but not through restrictive fislation.”

Father Dwyer’s optimism in he wing that the interests can be re

conciled is based on the opinion that when cocoa production reaches its peak there will be enough for every fermentery to process.

Despite what has been said on both sides, the Administration is still alarmed at the situation and it would not be surprising to see the introduction of some controlling measure.

A thorough survey is also being carried out on the factors motivat ing sales of cocoa outside the scheme.

The next GEIC Colony Confer ence, a biennial event, is to be held at Nikunau Islands in the Southern Gilberts in 1962. This was decided at the recent 1960 conference at Makin.