Gloomy Picture
p. 17 · Read in the full issue
In Tonga
Tonga’s serious financial troubles, which have resulted in exchange controls for the King dom, have cast gloom over com mercial interests there. The im mediate future for Tonga doesn’t look at all bright, according to those people outside Govern ment who are capable of making an estimate.
Under the new controls ( PIM, April, p. 11) it is virtually now impossible to import a wide range of goods including cigarettes, tobacco, tinned meats, flour and electrical equipment.
Local business houses had al ready been feeling a recession because of the copra export drop, due to two hurricanes and a drought since 1963.
There has been an unfavour able trade balance over the last four years.
Meanwhile the Government has been spending money on other ventures giving no return.
A joint scheme with American interests to set up a coconut pro cessing plant in Pago has so far come to nothing—although the factory was to have been operat ing by February, 1964. It was officially opened in August, 1963.
The factory still has no mach inery.
A big increase in copra and banana exports is seen locally as the only hope of quick financial recovery for Tonga. Tourism is now being developed but it is a long-term investment.