The news magazine of the South Pacific · since 1930

Pacific Islands Monthly, 1 July 1964Vol. 35, No. 7

Commentary

p. 20 · Read in the full issue

Nehru's Death Poses Problem

Of Holding Asia's Reds

THE Indians of Fiji—they now number about 220,000 in a total population of about 430,000 — went into solemn mourning when India’s famous Prime Minister, Mr.

Nehru, died on May 28.

The other communities, Fijian, European, Chinese, Euronesians, out of respect for their Indian fellow citizens, similarly observed the tokens of mourning. Public tributes were paid to the achievements and the memory of a great world figure.

The career of Mr. Nehru, and the quality of Mr. Shastri, who now follows him, are of interest to Fiji in particular, and to all South Pacific countries, generally.

Nehru’s greatest achievements were in maintaining unity and peace among the 400 millions in India, who are split into so many sharply differing sections; and in keeping India within the British Common wealth, and outside the ideological groups, now lined up in the Cold War. f „ The immediate future of India under the new regime is of more than academic interest to South Pacific countries. Will India assist Britain and United States in holding the non- Communist barrier between Red Asia and the Westernised countries of the South Pacific?

Britain and United States are sup porting Malaysia against Indonesia’s attempts to destroy that new Federa tion. USA is supporting the non- Communist countries of Indo-China against Red Chinese penetration. The outstanding event of the last two months has been the forthright way in which Australia (now the leading nation of the South Pacific) has com mitted herself to support of both Britain and USA in both fields.

Even as this is written (at the end of June) Soekarno is building up Indonesia’s attack on Malaysia (which must bring him into conflict with Britain and Australia), and Aus tralia’s Prime Minister (en route to Britain) is in conference in Washing ton with President Johnson.

Where do India and Pakistan stand, in relation to these developments?

Nehru—in many respects a political genius—maintained, for India, a policy of non-alignment. Can Shastri do likewise? It is very doubtful.

Some indication must soon be seen —and the shape of it will be of much importance to the South Pacific.—

Rwr.

Papua-New Guinea's

64-Million Dollar Question

THE Australia New Guinea Corporation Ltd., with its impressive board of directors and its paid-up quarter-million capital (see June PIM, pp. 11, 119) has gone swiftly into action.

The chairmanship has been taken over, almost at this stage as a full time job, by Mr. S. M. Rich, who occupies a suite of offices on the 22nd floor of the AMP building in Circular Quay, Sydney; offices have been acquired in Port Moresby; and already experts are examining various propositions in the Territory relating to coffee, copra, timber and cattle production, which come under the general heading of development.

The energetic chairman is spending much time in the Territory. He made two trips in June.

This ANGCO liveliness, plus other investment, including the gesture of the Carpenter group in earmarking £1 million for development of the tea industry there, plus the stepping up of Australia’s annual gift to P-NG to something approaching £3O million has had one marked result.

Some old observers of the ' Guinea scene, who had 1 rendered cynical by some of impractical thinking of the ] Report, are beginning to ask: ! possible that New Guinea car developed on sound economic 1 in spite of its new political struc and the menace on its wei frontier? In other words, is 1 time?

That, really, is the $64-mi question.

How can the directors of devi ment in P-NG reconcile their j with the repeated assurances by Canberra that P-NG must prepared for self-government as as possible?

The heads of ANGCO thems have said that three to five : must elapse, after investment, b( capital can expect any return.

Return For Investors ANGCO investors could be e: ing a satisfactory return by 1 but if we are to be guided 1955-64 experience in Africa Asia, how long will the Eure capitalists (“colonialist exploitei be permitted to remain in the n< emerged nation?

The leaders of ANGCO have asked: “In view of what is haj ing politically in the Indoi Malaysia area, and the way in v the Foot Report plan of pol development is being implement!

Port Moresby, what assurances you obtained from Canberra or Moresby that all this planned pi enterprise in Papua and New G will be protected?”

There have been no fc assurances. In so many word; vestors are being asked to put in the belief that (a) Papua New Guinea will be protects Britain and the US against ference from outside, especially Asia or Indonesia; and (b) many primitive natives of P-NG retain such goodwill towards tralia that they will wish the tralians to remain with indefinitely, and share the frui their development.

The present upsurge of invest activity seems to be built on a that P-NG development is some for big international corpora rather than for individuals. Cor tions could reap rich rev economically. If they are wipe< of P-NG by political troubles, can write off their P-NG against their gains in other coui But, with political conditioi they are, P-NG could offer inducement to the small or indn 1

investor,-

Rwr.