Capital Lea ring

few Guinea”

, Special Correspondent in Rabaul Australian Minister for Terri- Mr. Paul Hasluck, in Sydney f .ober told a meeting of the branch of the Economic of Australia and New Zea something about Papua-New \’s economic needs. Among things he said ; n addition to a programme of iblic investments and the ig up of land development, the ry needs investment to make e the expansion of secondary rtiary industries. night also be necessary to con ome sort of assurance regard ! security of investments in the ry after self-government.” icy are going to inject a little xmfidence into the thoroughly d resident property-holders potential investors of NG) ill have to hurry, and stop the ious outflow of capital that has ;oing on for some time. )le tell each other: “This y has had it—there’s no y here”. Those who would like r and invest money, and those tave some money invested in properties and/or business, are to decide if it is better to cur ieir exes, or to quit at first :. Listen to any thoughtful talking, and the theme is the For Australia or Administration people are g forward to the end of their so they can get out before i starts. ly people have shifted their to Australian securities.

Chinese are getting Australian ality as fast as they can—and g a lot of capital to Australia flats and such like. I know I rich Chinese in Rabaul who ots of money in Australia now. e naturalised, and all will tell lat if there is trouble here they lack up and go to Australia, s my country now, you know— naturalised Aussie.” is surprising to learn of the it of capital that has “fled” to ilia because there is no guaran garding what will happen when Tag” arrives. innot see any capital being en here under the circumstances.

People suspect—and with good reason—that these natives who chir rup “We want the Australians to stay with us—we need them to help us,” are doing so with tongue in cheek. Some interested people are suspected of putting these words in to their mouths so that the flow of cash from the best milking cow they will ever have (Australia) will not soon be turned off!

In the Australian Financial Re view of August 11, 1960, there was an article dealing with the way USA insured their foreign investments —a kind of national scheme. It was brought to notice of the RSL people by George Whittaker, and to the Executive of the Planters’ Associa tion of New Guinea. They put it to Mr. C. R. Lambert when he came up. On both occasions (as I under tand) Mr. Lambert advised them

strongly not to do anything more about the matter, as the Minister would not entertain any such idea.

He appealed to them to trust the Commonwealth Government to do the right thing, if ever such an emergency arose.

It does seem to me that the Com monwealth Government should here and now —start such a scheme as the War Damages Commission (for instance) and ensure that people with capital invested in the Territory —a plantation, a business, a store, ships, houses and even to a few sticks of furniture— anything worth money—should be able to cover it against the danger of confiscation, destruction, pillage, arson, riots, etc.

Give P-NG people a > guaran tee of protection and repatriation of their capital and many will take a risk and continue investing.