[?]E3-Million Loans

{?]Under NG [?]Credit Scheme

From a Port Moresby Correspondent When applications for loans inder the New Guinea Ex ervicemen’s Credit Scheme losed on November 5 after be ng open for more than four r ears, nearly £3-million had been nade available. rHE money was paid out to a total of 246 applicants—l2B f them European ex-servicemen and 18 native people who had served dth the armed services in World Var 11.

Still being considered are another 1 applications received not long efore the deadline.

The ex-servicemen’s scheme, estab shed as a result of RSL agitation, as been a valuable practical contri ution by the Government towards sound economy for the future, he scheme without doubt has been success.

Loan money is paid to farmer jttlers progressively over the years, nd total cash advances so far mount to nearly £2,000,000. The laximum period of repayment is 25 ears from the initial granting of le loan money.

The loans were made for develop icnt of agricultural properties rang ig from 15 to 1,000 acres and one E 3,000 acres. The large blocks, owever, include considerable areas E unproductive land which could not e excluded from leases without reaking the useable acres into small dated pockets.

Requirements for obtaining a loan ere satisfactory military service and jsidence in the Territory for five ;ars before the credit scheme started i 1958. Applicants also had to ossess a knowledge and experience E agriculture.

Crops being grown by scheme dtlers include cocoa, coconuts, ibber, coffee and peanuts.

Farm settlement under this project concentrated mainly in the districts f New Britain, North Morobe, astern and Western Highlands, ladang, Sepik, Central, Milne Bay ad Bougainville.

A significant feature of the scheme that it has provided Papuans and tew Guineans with an opportunity

to acquire land under individual ownership, as distinct from the various types of communal ownership under native custom. This is particularly important with tree crops such as coconuts, rubber, cocoa and coffee which are a long term investment because they take from three to seven years to come into bearing, and then continue an economic yield from 30 to 70 years.

This greatly increases the value of the land, but under most traditional native systems of ownership, occupants have a land-use right only, and interest in any particular piece

does not pass to immediate members of his family.

The opportunity to acquire agri cultural property for development with the right to will it to a son or heirs of their own choice, has interested many natives in the Ex- Servicemen’s Credit Scheme, j n the Northern district 6,000 acres have been taken up under the scheme by natives. Near Lae, natives started coconut plantations on 30 blocks this year, and another 50 were settled at Talasea in September. Fifteen blocks are being developed by native farmers in the Sepik district.