Pacific Commerce and Produce

Substantial

Copper On

Bougainville

Conzinc Riotinto of Australia Ltd., has encountered a substan tial load of copper on Bougain ville, New Guinea. There is a depth of at least 600 feet. rHE load is in the Crown Prince range, on the east coast, south of Kieta, but more work needs to be lone before there can be prop e r issessment of the discovery.

Conzinc has been working in the irea for some time, and is using lelicopters. There have been previous inofficial reports that the exploration vork has been most satisfactory, and nany Bougainville people have hoped hat the discovery will mean the ex ension of Kieta as a port, or the open ng up of a new port south of Kieta, md certainly an extension and im >rovement of roads.

Bougainville is one of the important opra areas of Papua-New Guinea, vith an increasing share in cocoa pro motion in recent years. The Kieta area •articularly has been neglected by the Administration, and is badly in need if proper roads and other facilities.

CONZINC Riotinto has embarked on a large scale minerals search in the P-NG islands of New Britain and New Ireland. The Administration has granted the company authority to prospect for six months for copper, gold and associated minerals.

The exploration will cover an area of 145,000 sq. miles, including the whole of New Ireland and an area east of Kandrian. New Britain.

The Graestar, a specially equipped exploration ship, arrived in Rabaul in May with a party of geologists and geochemists for the quest. The ship also carried a helicopter, to be used in the far-ranging search.

Tonolei Timber

Query

A BIG timber lease has recently been allocated in southern Bougainville to the Development Finance Corporation Ltd., of Sydney.

Questions on this lease were asked in the House of Assembly in May, following criticism that the New Guineans were not properly compen sated by the Administration for the sale of the lease rights.

The Assistant Administrator (economic affairs) Mr. H. H. Reeve, said critics frequently overlook the fact that the purchase price of timber rights is related to the expenditure necessary before the timber can be marketed.

Mr. Reeve said that generally speak ing, New Guinea logs at the overseas wharf now have a value ranging from 20/- to 40/- per hundred super feet, which represents the harvesting costs, plus the royalty payable. Where the log is processed by sawing or peeling its value is then raised to £6 per hundred super feet and after this the timber organisation must arrange the marketing.

Investigation of the Tonolei permit area had involved more than 20 years’ work, and during that time the Admin istration’s purchase price had never been queried by the Bougainville people. The arrangement was not in any way a high pressure business deal and it was “completely wrong” to sug gest that the owners in any way were led astray.

They were well aware that their land would still remain their property and that there would be general de velopment in the area, such as the

making of new roads and the building of new wharves.

Mr. Reeve added that there was a total of about 10,000 acres involved in the timber rights purchase of which only 47,000 acres would produce timber. Even then some of the timber might not be harvested because of the difficulties of terrain.

Mr. Reeve said that nevertheless the method of purchasing timber rights from New Guinea owners had exer cised Administration officers for some time and a re-examination of the prin ciples involved was at present being undertaken.

The re-examination was covering, among other things, the formula for the calculation of the amount to be paid to the owners and the practic ability of making progressive payments to them.

Share Issue To Help

Build Lae Hotel

Steamships Trading Co. Ltd. announced in May a one-for five issue of 1,547,085 ordinary 57shares at a premium of 2/6 to raise £555,196.

The directors said the proceeds of the issue would provide additional capital for the company to ensure

Mr. H. H. Reeve.

its continuing full participation in the overall economic expansion taking place in P-NG, and which was likely to be accelerated by the Federal Government’s general endorsement of the report on the Territory by the World Bank.

The issue would also finance the building of a modern hotel at Lae by Steamships’ subsidiary, Lae Hotels Pty. Ltd.; and improve general liquidity.

Placer Bids

For Bulolo

PLACER Development Ltd. has made a share exchange offer worth £3,200,000 for the outstanding capital of the Bulolo Gold Dredging Co. Ltd.

Placer at the time of the offer owned 32 per cent, of Bulolo’s capital, while Bulolo owned 5.6 per cent, of Placer.

The bid is worth considerably less in capital terms, but more in market terms than a previous bid, withdrawn two years ago.

The terms of the offer are two Placer shares for five Bulolo shares Placer does not already own.

The offer is made at a time when

development of New Guinea, particu larly timber resources, is likely to be hastened considerably following the World Bank report.

Apart from gold operations, which are quickly diminishing, and its own timber and cattle interests. Bulolo owns 49.9 per cent, of Common wealth New Guinea Timbers; the Commonwealth Government has the majority holding.

Placer has been a consistent buyer of Bulolo shares in recent years, and has increased its proportion of Bulolo’s capital from 20.6 per cent, in 1961, to the present 32 per cent, holding.

Bulolo’s profit dropped 75 per cent, in the nine months to February 28, to £31,200.

The directors reported that failing early improvement it will be neces sary to stop dredging at Bulolo.

Way Cleared For

Sugar Conference

PRELIMINARY talks in London aimed at a method of fixing the negotiated price for sugar under the Commonwealth Sugar Agreement have cleared the way for delegates to concentrate on prices and quotas

when they meet again in London about October.

The talks were a continuation of discussions which started late last year on how to fix the price paid to producers.

No final decision was reached then, so a temporary arrangement was made under which the price was fixed at £stg42 a ton, with a £stg3/5/- a ton bonus for producers in less-developed countries.

Under that temporary arrange ment, Fiji, the sole commercial pro ducer of sugar in the South Pacific, received a slightly better deal than under previous agreements.

Fiji is also keenly interested in a conference, scheduled for Geneva in September, to consider revision of the 1958 International Sugar Agreement.

This agreement has been in abeyance for some years, chiefly because of the withdrawal of Cuba, and a shortage of sugar in the early 60’s, which led to record prices.

Now there is a world glut of sugar and producing countries are interested to see that some form of orderly marketing is introduced.

The objective of the agreement is to assure adequate supplies for the importing countries, and a range of prices which will guarantee a fair return for the sugar exporting countries.

The conference is expected to have two sessions. The first will con centrate on a redistribution of export quotas, and the second will deal with the range of prices.

Decimal Currency

For Fiji

FIJI is the latest Pacific territory to decide to go over to decimal currency.

A committee which inquired into the question, has recommended that the changeover take place on January, 16, 1969.

The Fiji Government announced in May that no final decision on the nomenclature had been made, even though the committee, in its report, referred to dollars and cents.

Higher Profit For

Burns Philp (SS)

Burns Philp (SS) Co. Ltd., earned a net profit of £191,796 for the year ended January 31, 1965, an increase of £28,767 over the previous financial year.

The directors reported that en hanced prices for the main Islands primary products, sugar and copra, were reflected in greater spending power.

That, in turn, resulted in a more buoyant economy and assisted in maintaining a much improved turn over in merchandise.

Thus, overall trading results proved very satisfactory, and ample pro vision was made against doubtful debts and stock and plant depreciation.

The directors recommend a final dividend of 5 per cent., making 10 per cent. for the year, a rate which has been maintained for several years.

Support For P-NG

Stock Exchange

SUPPORT for establishment of a Papua-New Guinea Stock Ex change was given in May by the P-NG Administrator, Sir Donald Cleland. He said a local Stock Ex change would assist in development, and the Administration would be prepared to help by educating New Guineans. However, initiative for an exchange would have to be taken by private enterprise.

Suggestions for the Exchange were made in Port Moresby by Mr.

Randolph Carpenter, a director of W. R. Carpenter and Co. Ltd. He said an Exchange would help New Guineans to buy shares in P-NG companies.

"Grand Old Man" Of

South Pacific Trade

JT'HE grand old man of South A Pacific Islands trade and com merce Mr. Joseph Mitchell, met an avalanche of goodwill telegrams, cablegrams and radiograms on April 9, when he celebrated his 91st birth day. For more than half of those 91 years, he has occupied the chair of the chief executive at Burns Philp & Co. Ltd. headquarters, 7 Bridge Street, Sydney. And he still is there, as alert and decisive as ever.

If ever there was romance in the direction and management of general merchandising and shipping, it can be found in the career of Joseph Mitchell. James Burns and Robert Philp registered their modest trading company in Australia in 1883 as Burns Philp & Co. Ltd. It had grown somewhat, but was still a small con cern when, in 1891, young Joseph Mitchell, aged 17, joined the staff.

In the intervening three-quarters of a century Joseph Mitchell has seen the organisation expand into a Pacific-wide concern conservatively valued at £45 millions, and the major part of that growth took place under his own general managership.

The Big Firm, which started so modestly as Islands traders and shipowners, today seems to have a share in every important industry in Australia and the South Pacific, and much of that remarkable growth and success is due to the spirit of loyalty which James Burns 11, as chairman, and Joseph Mitchell as general manager, inspired in the hundreds of men who have managed the com pany’s branches all over the South Pacific and in Europe and America.

Little wonder that messages of goodwill came flooding in to “the old man” on April 9. The years may have taken their toll, but his shadow never has grown less.