Pacific Commerce and Produce

Federal Labour Leader says:

"Remove P-N

Trade Barriers''

Just as Europe was moving towards a customs union, as

represented by the European

Common Market, so soon would

the Territory of Papua-New

Guinea have to be integrated economically, stated Mr. Arthur

Calwell, Federal Labour Party

leader, in Port Moresby on July 1, when he arrived for a 10

days’ visit.

INTEGRATION, he said, included the three territories of the island of New Guinea—Netherlands New Guinea, the Australian Trust Terri tory of New Guinea, and Australian ruled Papua.

“When economic unity is estab lished in Europe, political unity will not be far behind. So it will be on this island, once all trade barriers go down internally,” he added.

Mr. Calwell said Britain must join the Eurpean Common Market or perish. He believed Britain had “al ready made up her mind to join” and that the July visit to Australia of Mr. Duncan Sandys, as with visits of other British Ministers to other Commonwealth countries, was aimed at “softening up” Common wealth members preparatory to Britain joining the Common Market.

“Australia, Canada and NZ will have to find some way of achieving unity with the European Common Market or form an association with America,” Mr. Calwell said.

“No Ban” on Foreign

Capital in

N. Caledonia

When Mr. Robert Lecourt, Min ister in Charge of Overseas Terri tories, briefly passed through Ton touta airport on his way back to France from Tahiti recently, he had something to say on the important question of foreign capital wishing to invest in New Caledonia.

IT was pointed out to the Minister that, as New Caledonia was the nearest French-speaking territory to Australia and NZ, the people of those countries are keen to visit her. This means that outside capital is needed to construct suitable tourist hotels. The Minister was asked if there would be any difficulty in intro ducing foreign capital?

Mr. Lecourt’s answer was categoric; “There is absolutely no obstacle to the investment of foreign and Metropolitan France capital in New Caledonia and its dependent territories”.

He added that investment in an hotel industry in New Caledonia would be most welcome.

The Minister .was questioned also about the problem of New Caledonia’s popula tion growth—l7,ooo children at present in schools and an expected total popula tion of 100,000 by 1970. He replied that a long term plan has been prepared, which will be financed by the several financial agencies created for territorial develop ment. He also spoke of “special pro duction measures”, which would be undertaken to assure the youth of New Caledonia a livelihood.

There are, however, many in New Cale donia much less optimistic on this grave problem than the Minister. New Caledonia has one of the most fragile economies in the world, being based exclusively on the refining and sale of nickel ore. Its agricultural prospects are poor, and the island cannot produce enough meat for its own needs. Thinking people ask just what future can be contemplated for the mass of children leaving school in the next decade.

To those optimists who for years have been asking that a French university be created at Noumea, the Minister replied that it was a project that was far too expensive to be thought of yet. Prom all appearances, the Minister is going to have a busy time when he returns on an official visit to New Caledonia next September.

Higher Interest For

Fiji Development Loan

Fiji’s Acting Financial Secretary (Mr.

H. P. Ritchie), announcing the new Development Loan on June 28, stated that the target was £ F 1,750,000. Of this, about £F500,000 represents conversion which he hopes to get from the 1951 Loan.

Higher interest, he considers, will make these conversions attractive. The loan covers two forms of security—ordinary stock and death-duty stock, the latter being available also for paying off income tax owed at the time of death.

Interest rates are higher—5 7 /b per cent, for long and 5% per cent, for short term investment. For the 1959 loan, rates were 5% and 5 per cent. It is hoped to attract small investors by the reduced minimum subscription of £25.

In a general appeal for the loan, Mr Ritchie stated that he had been assure* of support from the main large companie operating in Fiji, with headquarters ii Australia and NZ.

Fear of not filling the loan is no apparent in the Colony, reports a Suvi correspondent; it is certain that it wi] be filled. Although some people hav stressed the troubles to be expected ii the future, many competent observer think that these difficulties will be mel as they have been in the past.

Certainly, if the people of Fiji fill thi loan, it will be a direction board fo outside capital, which is so badly neede in the Colony.

Takers-over Are

Taken Over

Palgrave Corporation, a Sydney invest ment company with Islands affiliation (it controls Pacific Productions Ltd., c Port Moresby and Rabaul) took ove Landmark Ltd. in June on an exchang basis of 1-for-l ordinary share. Onl last May, Landmark itself took over on of the largest cofiee estates in P-NG- Korfena Plantations (NG) Ltd., of Goroks The board of Palgrave Corporation stat they expect to pay regular 10 per cen dividends on the merged capital of moi than £840,000.

Mr. S. L. M. Eskell, a director c Landmark, has been appointed managin director of Palgrave. He has resigned a chairman and managing director of Sout

aclfic Post Ltd., Port Moresby (positions 0 held since 1950), “in order to con sntrate on Palgrave’s activities”, accord ig to an official announcement by the ost in July. New chairman of SPP td. is Mr. David Yaffa, who is Mr. skell’s brother-in-law.

ig New Oil Co. Ties

1 With Papuan Apinaipi

A new oil exploration company, ssociated Continental Petroleum NL, was gistered in Melbourne late in June with nominal capital of £5 million, in 20 illion 5/- shares.

It will acquire 50 per cent, of Papuan )lnaipi Petroleum Co. Ltd. interests in isting joint venture arrangements, ,abling it to operate within the Associa d group in Australia and Papua. In turn, it takes over Papuan Apinaipi’s sponsibilities to the group—about £iy 4 illion in capital to be supplied over the xt few years.

The Associated group consists of sociated Australian Oilfields NL, As sisted Freney Oil Fields NL and Papuan dnaipi Petroleum Co. Ltd., operating in with Interstate Oil Ltd. and C. Sleigh Ltd. (both of which recently ught into the group for £l% million), aueensland, rather than Papua, will be 3 area to be concentrated on, it is ieved.

VCP’s Board is Messrs. B. W. Graham, N. Avery, G. H. R. Jones, F. A. icKell, A. E. Prince (all directors of puan Apinaipi) and Mr. R. Woodcock rector of Pacific Oxygen Ltd.).

lorua Rubber Pays

eady 20 per cent. Dividend

iOlorua Rubber Estates Ltd., Papua, lin earned a higher profit, for the ond successive year. Year’s profit to ril 30 was £27,096—up £4,602 (20 per it.). ‘rofit remained after lifting tax pro lon by £3,800 (to £7,600) and provid £3oB more for depreciation (at ,349). hvidend is held at 20 per cent, for third successive year and absorbs 0,000. laming rate rose to 27.1 per cent., ipared with 22.5 per cent, the previous

w Directors for

bert Gillespie Ltd.

'wo men well known to Pacific traders e joined the Board of Directors of >ert Gillespie Pty. Ltd., Islands •chants, of Sydney. They are Mr. liam Henry Cumines and Mr. Wallace

irles Thorogood.

fr. Cumines joined the company in i; while Mr. Thorogood, who had nous trading experience in the Islands, appointed manager of the firm’s sbane branch in April, 1959. i Suva, Robert Gillespie (Fiji) Ltd.’s rd has been strengthened by the ointment as a director of Mr. Kenneth son Littlejohn, Fiji branch manager, ore he joined Gillespie’s last year Mr lejohn was known in Fiji and other tral Pacific territories for his service i Cadbury’s and, previously, BOAC.

ijibi Shareholders Agree

Debenture Issue

t the annual meeting on June 14 actors of Kinjibi Holdings Ltd., New were authorised to issue £30,000 debentures to shareholders only he chairman, Mr. s. E. Baume, said funds would be used to pay current ts and to finance development, hareholders said they appreciated the

directors’ work “in bringing the affairs of the company into order”. (See “PIM”, June, p. 61).

Japan Continues to

Buy N. Caledonian Nickel

New contracts were signed recently in New Caledonia between NC nickel ore exporters and Japanese buyers. They will expire in March, 1962.

Before the agreements were signed, a Japanese mining mission visited the French Colony to thrash out the vexed question of nickel percentage in the ore shipments —three per cent, last year. It was re ported that the Japanese buyers had sought ore in such other countries as Celebes, Philippines, and even Southern Rhodesia but found that the nickel con tent in. ore available was poorer than New Caledonia’s.

Both parties apparently solved the percentage problem to their mutual satis faction, and there is an increase of about two cents in price in the new contracts.

Target for the 1961-62 export of nickel from NC (all going to Japan) has been fixed at 1,300,000 tons, but this is probably a little too optimistic.

APCs Sea Oil

Survey Ended

Australasian Petroleum Co. Pty. Ltd. reports that the marine seismic surveys in the entrance of the Turama and Ply Rivers, Papua, were completed in June.

About 25 miles of traverse were shot in the Turama River area and 77 miles in the Fly River area.

The reflection time sections were being examined and interpreted by the com pany’s consultants in early July.

Mr. Robert Woodcock, of Middle Brighton, Victoria, has joined the Board; the nomina ed director representing Associated Australian Oilfields NL on the Board, Mr.

S. B. Randell, retired for health reasons.

PI Timbers Raise Capital

To Buy Own Shipping

Two new issues of shares were made by Pacific Island Timbers (Holding) Ltd., of Papua-New Guinea, on June 30 —57ordinary shares at par on the basis of 4 for 1 held, and simultaneously a 1 for 16 bonus issue (out of accumulated reserves).

The issues involved 82,500 new shares, including 16,500 bonus, and lift paid up capital to £86,625.

Directors state the cash issue will assist the company to obtain shipping facilities for transport of its timber production from the mill site to Port Moresby. This will substantially reduce transport costs, as well as securing shipping facilities for the company as and when required. The vessel will also earn income from outside sources.

Lae Govt. Sawmill To Close

The Government sawmill at Lae, New Guinea, will be closed down on December 31, and the staff transferred to other positions in the Administration.

The decision to close the mill follows the Administration policy of withdrawing from commercial production as soon as satisfactory alternate services can be provided by private firms, stated the official announcement. There are now two small mills operated by private enter prise in the Lae area to meet the public demand for timber—South Pacific Timbers and New Guinea Industries.

The Administration mill at Lae was originally the Army sawmill located at Yalu, and was taken over by the Forests Department after the war to meet the urgent need for timber during the early post-war years. Timber from the mill has been supplied for the construction of homes, shops, schools, offices, hospitals and other buildings throughout P-NG.