CSR Reports On Fiji Affairs

Fiji Affairs

A LARGE part of the address to

shareholders of Colonial Sugar

Refining Co., Ltd., by the chairman

(Mr. J. W. Dunlop) at the annual meeting in Sydney on July 19 was devoted to the difficulties of its Fiji

operations.

Mr. Dunlop detailed the causes that contributed to the company’s loss last year on the Fiji section of its activities —late harvesting start, inadequate weekly supply of cane, low cane quality, and too high a price paid to growers. He referred to the Commission of Inquiry into the sugar industry, conducted under the chairmanship of Sir Malcolm Trustram Eve; and the ad hoc agreement made, with the help of Sir Malcolm Eve, be tween growers’ associations and CSR, for the 1961 crop. The price for cane will be in accordance with the Commission’s recommendations, which have not yet been released.

He said CSR is seeking a settled state of affairs, based on economic and financial positions that will sustain, even if they cannot fully satisfy, the respective groups in the industry, viz., growers, employees, and the company as the miller. ‘‘There is no hope of satisfying the ambitions of some of the spokesmen for growers and employees, simply because those ambitions are quite unrealistic in relation to the total income in the in dustry from the sale of sugar.”

Mr. Dunlop pointed out that people in Fiji are greatly influenced in their think ing and ambitions by the high living standards which exist in countries on both sides of them—USA, NZ, Australia. But Fiji has not anything like the natural resources, capital or expertise to match those countries, and at the same time it has a very high rate of natural in crease in population.

In the Fiji sugar industry, CSR has played a full part in raising the living standards and advancing the broad social and economic status of those engaged in

it. Its standards of technology and marketing know-how are high. It has been alleged that the company has un fairly exploited the Colony—this is quite untrue, he said. On the contrary, CSR has been instrumental in developing the industry to a high standard in natural conditions that are not particularly favourable for cane and sugar production.

The living standards of those in the industry are good when judged by stan dards in sugar industries in comparable countries.

W. R. Carpenter in

Big Share Deal

Continuing the policy of spreading its interests, W. R. Carpenter Holding Ltd., now the largest Pacific Islands trad ing firm, has acquired the £1,250,000 capital of Claude Neon Industries Ltd., Australia’s major display sign company.

It was one of the biggest take-overs of the year—involving a share exchange worth over £7,000,000 on market value.

Terms were nine 5/- WRC shares for each five 10/- stock units of Claude Neon.

In the middle of last year, by outright purchase of Neon Holdings Ltd., Carpenter’s acquired Consolidated Neon Ltd. (large NSW sign manufacturers) and Endurance Electrics Pty. Ltd. (makers of all-size transformers). Apparently, WRC direc tors liked what they found in the neon sign business, for the present purchase of Claude Neon means they now virtually control the industry in Australia.

The Carpenter financial empire nowadays extends in many directions, in addition to the basic Islands trading. In recent years, the company has bought into flour milling, hire-purchase financing, and the paper industry—to name only those that have been made public.

Carpenter’s, for instance, in early July allotted 68,965 ordinary 5/- shares at “a substantial premium” for the acquisition by a subsidiary company of assets in New Guinea. No other details were released.

Early August, W. R. Carpenter (NG) Ltd. was registered in P-NG with £5,000,000 capital to take over all WRC’s Territory interests and subsidiaries, including New Guinea Co. Ltd., Coconut Productions Ltd. and Islands Products Ltd.

Tobacco Factory

For Rabaul

Plans for the establishment of a tobacco factory in Rabaul for making native twist and ready-rubbed were announced there in August by Mr. Norman Nelson, Chairman of Directors of Nelson and Robertson Ltd., Sydney, also of Rabaul Trading Company, a subsidiary.

Mr. Nelson said that Associated Tobacco Company, Australia, would be associated with the Rabaul Trading Company in the venture, which was expected to commence soon. Mr. Nelson said plans were already drawn and the factory was expected to be in production by the new year It was intended to bring an expert from Aus tralia to set up and manage the new factory initially. ‘‘We will probably bring a few ex

perienced girls as well for the purpose of showing the native staff how to operate the machine and roll twist.”

He said, “I’m sure the native popula tion will be quite capable eventually of taking over as technicians.”

For a start tobacco leaf would be im ported from Australia but “informal talks with Department of Agriculture officers have convinced me we shall eventually be using large quantities of locally grown leaf”, Mr. Nelson said.

French Cars for Fiji

Mr. E. E. Kriewaldt, managing director of E. E. Kriewaldt & Co. Ltd., Port Moresby, who has the South Pacific agency for Peugeot and Renault, was visiting Fiji in early August to make arrange ments for the distribution for the first time of those cars in Fiji.

In P-NG, the French cars have proved very suitable for tropical conditions.

BGD Profit Lower

A decline in both gold mining and timber results was responsible for a fall in profit of Bulolo Gold Dredging Ltd., New Guinea, for the year ended May 31, 1961. This year’s net profit was $511,500 Canadian: last year’s, $622,425 Canadian.

Latest result is made up of $171,500 from operations in New Guinea and Aus tralia, and $340,000 from investments.

During the year the company treated 5.5 million cubic yards to recover 18,051 oz gold. In the previous year it treated 5.7 million cubic yards for 22,377 oz gold.

Output of sawn timber and veneer from the subsidiary, South Pacific Timbers, Lae, was a little lower than that of the preceding year. Commonwealth-New Guinea Timbers’ plywood production was a little less than the preceding year, as a result of the lower demand in Australia, although this was partly offset by sales to USA.

In view of the restricted Australian economy, it was deemed desirable to sub stantially reduce inventory valuations of manufactured and partly-manufactured timber stocks. These reductions allied with reduced sales, gross profit margins and changes in the company’s manufac turing processes, adversely affected trad ing operation in the closing months of the financial year.

BGD’s holding of 145,732 shares in Placer Development Ltd. purchased at $1,737,000 now has a market value of $2,987,500.

New Manganese

Find in Fiji

One of the second line industries of Fiji is the export of manganese and, though there has been a steady decline in price, ore is still being mined and shipped abroad, particularly from the north-west area.

A new reef of manganese was found recently at Kalabo, a couple of miles inland from Nasinu, in the south-east of the Colony. The discovery was made by Mr, H. Abdul, who has been prospect ing the area since the end of last year, on behalf of Sir Hugh Ragg and Mr. K.

Abdul (father of the finder), who hold a prospecting licence covering Kalabo.

According to Mr. Abdul, Jnr., the reef is about 3 ft below the surface. Its full worth, of course, cannot be gauged until further investigation is carried out.

Usually, deep drilling is necessary before competent estimates of the quantity of ore available can be made.

Over-supply has forced the price of manganese down in recent years While world consumption is expected to main tain its present rate of rise, as steel industries advance their output, the former main suppliers, India and Brazil, have been facing much competition from

expanding export production in Australia and Russia.

Fiji manganese mine operators say they do not expect an early recovery of the depressed market.

Enterprise of NG Tries Again

Because its experts are of opinion that the northwest section of New Guinea represents the most potential area for commercial oil discovery, Enterprise of New Guinea Gold and Petroleum Develop ment NL has renewed its application to the P-NG Administration for permission to survey the area.

Known as Permit Area No. 29, it is situated near the Dutch border and con tains some 3,600 square miles.

Last year Enterprise of NG was re fused a Government oil permit, mainly on the grounds that it did not have at least £15,000 available to carry out in vestigations on a sufficiently large scale.

Tenaciously, the company would not give up and, by calling on shareholders for further funds and by selling some of its assets, including small ships, has raised enough to try again.

Fiji's Trade Off

To a Bad Start

Fiji’s trade started off on the wrong foot for the opening months of 1962, as shown by figures for January and February that were released last month.

Total imports for January and February were more than in the same period last year—£F2,B7l,ooo against £F2,637,000. But exports were well down —only £ PI, 166,000 —less than half of last year’s figure of £P2,400,000.

February’s imports were £ P 1,287,000.

Materials accounted for £F235,000, food £F286,000; fuels and lubricants £F259,000. and machinery and transport equipment £P225,000.

Exports totalled only £F567,000 —there were no sugar exports during February.

Main items were: coconut oil £F144,000, gold £F98,000, bananas £F38,000, copra £P20,000, and copra cake £F15,000.

Gold Companies Go

Into Shipping Business

The two largest mining firms in P-NG —Bulolo Gold Dredging Ltd. and New Guinea Goldfields Ltd.—have gone into partnership to operate a regular Sydney- New Guinea shipping service. They have joined F. H. Stephens Pty. Ltd., one of Australia’s largest transportation or ganisations, and Skibs Karlander, Norwegian shipowners, to form Karlander New Guinea Line Ltd.

The company was registered in Lae recently with nominal capital of £500,000.

It has taken over operation of the motor vessels “Elizabeth Boye” and “Slevik”, which had already been running to Territory ports under Skibs Karlander ownership.

Both vessels have shallow draft, which has already proved useful in allowing them to cater for the log timber trade from outports. They will carry all types of cargo, including cattle and other live stock.

Aid for NG Coffee-Growers

The Federal Government has applied incentive tactics in an effort to break down the deadlock between Australian coffee manufacturers and P-NG growers on disposal of this year’s largest coffee crop.

If Australian manufacturers buy 28 per cent, of their total needs from P-NG, the existing duty of 3d per lb on Territory coffee will be remitted, from May 1, 1961, to April 30, 1962.

This move follows the breakdown of a conference last March between growers and manufacturers, when the latter would agree to take only 2,000 tons of P-NG’s 2,800 tons production.