Economic Outlook

FOR the first time in 14 months, Aus tralia in May had a favourable trade balance, the first direct effect of the Government’s recent credit squeeze and economic policies. Imports were £78.9 million and exports £93.3 million.

While the exports were perhaps boosted by a windfall sale of wheat and barley to Red China, there seems to be no denying the drop in imports as a pointer to future stability.

There will be a large trade deficit for this financial year, of course (so far, £177.5 million for 11 months to end of May), but prospects for 1961-62, outlined in a just-issued Government White Paper on the Australian economy, are bright.

An unmistakable sign of confidence in the country’s economic future was Broken Hill Pty. Co. Ltd.’s announcement on June 2 of the biggest capital issue yet in Australia—£l6 million. BHP, with its 16 major subsidiaries, is virtually the iron and steel industry of Australia, and is the nation’s No. 1 company.

The company expects to pay regular 15 per cent, annual dividends. Its assets at June 30, 1960, were £222,455, giving a 6/6 backing for the 5/- shares. Average net profit for the past three years has been over £22,000 p.a., after P-NG tax.

Started in 1934, the plantation was taken over by the present company in 1944. It is 32 miles by road from Port Moresby and consists of 2,654 acres of leasehold land, the majority of which has over 75 years to run. Much of the 989 acres of rubber is of high-yielding stock from Malaya.

Some 1,200 acres have been set aside for establishment of a cattle project, already carrying 500 polled shorthorns. This is supplying all the company’s labour force meat requirements: is making sales at Port Moresby: and is operating at a profit.

Directors are Messrs. T. Nevitt (chair man), P. B. Godson, A. L. Johnston, W.

A. Tracey and R. F. Bunting.

Ml Whaling's Quota

Norfolk Island Whaling Co. Ltd., the operating subsidiary of Norfolk Island and Byron Bay Whaling Co., Sydney, will have a quota of 170 humpback whales for the coming season.

This is similar to the 1960 quota, which was filled.

P-NG Peanuts Still

Duty Free Into Australia

Peanuts grown in Papua-NG will con tinue to be admitted into Australia duty free. A Tariff Board report on fats and oils tabled in Federal Parliament on May 12, recommended that no change should be made in existing duties on shelled and unshelled peanuts imported Into Australia and was accepted.

Other points of the Tariff Board report are the elimination of Australian import duties on unrefined coconut oil and coconut cake.

There have been no shipments of un refined coconut oil to Australia, NG’s output going to UK and the Continent.

However, small quantities of coconut cake have been sent to Australia over the past few years as follows: 1955- 1,668 tons 1956- 1.998 tons 1957- 7,862 tons 1958- 1,981 tons 1959- 2 tons

Liquidator's Representative To

Looks at NNG Timber Co.

A move to sort out the tangled affairs of Adi Timber Development Pty. Ltd. (“PIM”, April, p. 158) was made by the Official Receiver, Mr. J. R. Partridge (in whose hands the company was placed in April following a court order for winding up) when he sent a representative to Netherlands New Guinea in mid-May.

Adi Island, where the Australian com pany worked a timber concession, is 40 miles from Kaimana on the southern coast of the “neck” of NNG. A party of 16 Australians had been working there since last January for the company, but there were persistent reports in April and May that the men were short of food and money. The company’s supply boat, “Janis B”, had developed engine trouble and returned to Darwin.

Later, “Janis B” returned to Adi and picked up six of the party, landing them at Darwin on June 11 —they alleged they had been on a “starvation diet” and were each owed about £600 in wages.

Others returned on a freighter, "Chicot”, which loaded at Adi. Three timber workers and two Adi Co. directors (Messrs. J. Trevis and M. Whitehead) are still there.

Many Sydney people last March receivi a copy of a circular from Industrial a: General Credits Ltd. endeavouring T interest them in a proposed issue! £lOO,OOO first mortgage debenture stock! par (£5O) to obtain funds for develo ing the Adi timber company which is i subsidiary.

Foodstuffs for Fiji

The Fiji Government has called tenders (closing in Suva, July 3) for t supply of a wide range of canned a packeted foodstuffs for delivery in 196 The commodities required include cann fruits, meats and vegetables, custa powder, jellies, soups, jams, powdei and condensed milk, honey, starch. I All prices must be c. & f., Suva,| Fijian currency.

Australian exporters may obtain deta from the regional offices of the Depai ment of Trade (quoting the offlo reference No. 61/1389) or the headquart in Melbourne.

Sydney Sales Prices

May 10, ’61 June 6, ’61 Ball Plantations . 11/- 10/9 Burns Phllp . . 86/6 90/3 Burns Phllp (SS) .

Cholseul 52/- 110/- 52/6 180/-

C.S.R. ... £

Dylup Plantations 76/10/- 7/6 £87/10/- 7/6 Fiji Industries 13/- 14/6 Hackshall’s ...

Kauri Timber 14/- 13/8 Kerema Rubber Koltakl . 16/- 6/9 16/9 6/9 Landmark Lolorua .

Makurapau Marlbol . . 15/6 4/9 7/- 3/9 8/- 19/- 5/- 8/- 3/9 7/6 4/10 Norfolk Is. Whallne 4/6 Ditto Notes (5/-) 4/6 5/- Pacific Is. Timbers 5/9 6/1 Plantation Holdings Queensland Insurance Hubberlands Sangara . . ' 4/- 85/6 6/3 3/- 3/8 92/- 6/- 4/- 25/- 44/- 32/- 6/3 5/- 6/- Sthn. Pac. Insurance Steamships Trading w n J?. CarDPntpr Hold Watkins Consolidated Ditto Notes Timor Oil 25/- 42/- 31/9 4/6 4/- 4/2

Oil And Mining Shares

Pt.Tt

July 9, ’58 May 10, ’61 June 6, ’61

Emperor . . b5/0

Loloma . . b2/2 b38/b3/6 b40/-

Papua-New

Guinea

Bulolo . . . b35/b55/s60/- N.G.G. Ltd. bl/9Va bl/9 bl/10 b2/- Oil Search . b2/6 b2/l Orlomo Oil . — Ent. of N.G. b7d bid s2d blV 2 d b2d Pac. I. Mines — Papuan Apin, b9d bl07/6 b3/6 b87/6 b3/10 do. opt. . b6V 2 d b7V 2 d b6d Placer Dev. b86/6 Sandy Creek b4d bl70/b3d bl72/6 b3d