Affect Islands

Free Trade Plan

Should Not

By a Staff Writer

The Australian-New Zealand limited free trade agreement, which comes into operation

from January 1, is unlikely to

have any noticeable effect on Pacific Islands trade with either of these two countries, accord ing to a PIM survey.

THE present agreement covers items which are produced in limited quantities in the Islands, or not pro duced in the Islands at all.

The Australian fruit industry may take some trade from the Pacific Islands in bananas, pineapples, avocados, mangoes, guavas an d oranges. The operative word is “may”, because before the agreement the tariff on produce imported by New Zealand from either Australia or the Islands was either nil or a token amount.

The story could be different one day if any Islands territory develops its manufactures in a big way and seeks export outlets in either Aus tralia or New Zealand. But the agree ment could be extended to cover these spheres of influence.

P.I.T. Merger

Successful

THE ANG Holdings Ltd. share exchange takeover offer for Pacific Islands Timbers (Holding) Ltd. was going “very well” and was so close to complete success that it did not matter. (See PIM, Dec., p. 145).

Mr. Steven Rich, chairman of ANG Holdings, told PIM this just before Christmas, when he had re turned from Papua-New Guinea in connection with the takeover.

Mr. Rich said the mails had been rather slow because of Christmas, but a count had indicated a success ful bid.

The Pacific Islands Timbers interests would be merged with the tea and coffee interests of ANG Holdings. It was hoped to expand the plantation at Cape Rodney.

Mr. Rich said he thought ANG Holdings would convert Pacific Islands Timbers’ losses of the last two years (£lB,OOO in 1964-65 and £38,013 in 1963-64) into a profit.

Referring to other activities of ANG Holdings, Mr. Rich said the tea project at Banz was going well.

The coffee project (1,200 acres) at Huvei Plantation, Goroka, was also doing well, Mr. Rich said. • Insurance companies in Fiji are to raise rates for motor vehicle in surance following two years’ study of loss figures. The rates were last raised in November, 1958. As a slight relief, a spokesman for the com panies announced that the maximum no-claims discount would be in creased from one third to 40 per cent, after four years without a claim.

Way Clear For NG

Development Bank

THE bill setting up the Papua and New Guinea Development Bank passed all stages at the House of Assembly meeting in Port Moresby in late November.

The main purpose of the proposed bank will be to stimulate develop ment in the private sector of the Territory economy. The bank will provide credit to all races for the purpose of primary production, and the establishment or development of industrial or commercial under takings.

The need for small-scale credit is recognised and the new bank will be able to provide small loans in order to promote more rapid growth of indigenous agriculture and busi ness undertakings.

The bank’s role will be to supple ment the sources of finance available through ordinary commercial lending institutions. As an important corollary of this function, the Development Bank will be required when deter mining whether or not to make a loan, to have regard primarily to the prospects of the borrower’s operations being successful rather than to the amount of security the borrower can supply in support of the loan.

Arrangements are being made for a committee to examine the problems associated with the use of inter mediary bodies such as co-operative societies, local government councils, etc., for the distribution of small scale credit.

The committee will comprise officers of the Reserve Bank, Depart ment of Territories and the Admini stration and is expected to start work in the Territory soon. To simplify the organisation of credit, the new bank will probably take over existing credit schemes, and provision has been made in the bill for the bank to have power to do this in respect of the Ex-servicemen’s Credit Scheme and the Native Loans Fund scheme.

It is intended that the new bank should be set up with initial capital provided by the Administration. In addition there will be the money to become available upon the proposed transfer of the Native Loans Fund.

Fiji Imports Up,

Exports Down

T>ROVISIONAL trade figure’s show -I that for the first 10 months of 1965 the value of Fiji’s exports amounted to £16,700,000, compared with £19,700,000 for the first 10 months of 1964.

Imports increased from just under £22 million for the first 10 months of 1964 to almost £24£ million for the same period in 1965.

During October, exports slightly exceeded imports. Exports were valued at £2,760,000 and imports at £2,343,000.

The reduced total for exports dur ing the first 10 months has been blamed mainly on reduced sugar prices.

Sugar Agreement

'Satisfactory'

Satisfaction at the outcome of the Commonwealth Sugar Agreement negotiations in London was expressed in Suva in December by Mr. A. S. Hermes, managing director of South Pacific Sugar Mills, which owns Fiji’s four sugar mills.

He said the agreement was the main basis of the Fiji sugar industry and, at present world prices, the in dustry could not continue without the agreement. It was gratifying that the agreement had been extended to 1973.

The main element of the negotia ted price—for which Fiji has a quota of 140,000 tons—has now been fixed for three years. In ad dition, there is a variable element in the price which is fixed in relation to the world price of sugar.

It appears likely that for 1966 the variable element will be at the maxi mum, in which case Fiji will receive about £47/10/- a ton—lB/6 a ton more than the negotiated price in 1965.

Bright' Prospects

For Misima

Cultus Exploration Ltd.,

the Canadian associate of Pacific Island Mines, is considering installing a mill to process base metals as well as gold on Misima Island, Papua, The directors reported recently that sampling revealed a high grade lead and zinc ore deposit in the Umuna lode.

Previously, Cultus was only in terested in the property as a gold prospect.

Studies in recent weeks, however, showed that Umuna core samples had caused the company to consider a more extensive development pro gramme.

In September, Cultus announced plans to put a mine into production after a year of exploration.

The Umuna lode has been open and worked for 4,000 ft continuously while Gold Mines of Papua have worked another 1,700 ft.

The total of proven tons of gold bearing ore in the lode is 456,000, the directors reported.

New Paper Company

Starts In Fiji

THE Suva factory of Kiwi United (South Pacific) Limited, was officially opened by the Governor of Fiji, Sir Derek Jakeway, in late No vember.

Kiwi United (South Pacific) Ltd. is a paper converting plant producing corrugated board, paper bags and toilet rolls. The new company is a partnership between the Kiwi Polish Company Pty. Ltd., of Australia, hold ing 53 per cent, of the shares, the New Zealand United Empire Box Company Ltd. with 40 per cent., and the firm of C. Sullivan (Pacific Islands) Ltd. holding 7 per cent, of the shares.

The Kiwi Polish Company has a 50 per cent, shareholding in C. Sullivan (Pacific Islands) Ltd.

One of the largest industrial enter prises in Fiji, the plant has an authorised share capital of £F250,000.

It was designed, built, equipped and commissioned in under 10 months, after exploratory discussions held in Melbourne between the three share holders.

Company Safeguards

In New P NG Bill

THE Papua-New Guinea Com panies Bill, 1965, reached its second reading stage at the Novem ber meeting of the House of As sembly but debate has been adjourned until the next meeting of the House to enable members to study proposed amendments.

The present Companies Ordinance came into effect only in July, 1964.

The amendments contained in the new bill are proposed “in the light of experience gained in implementa tion of the 1964 legislation”.

In view of recent events in Aus tralian commerce the most significant proposals are Clause 6, which relates to the “nomenclature of documents issued”; and Clause 26 that, in certain cases, will make a director personally liable for debts incurred by a company.

It has been the experience in Aus tralia and elswhere, said the Sec retary of Law, who introduced the legislation, that impressive names misleading to the investor have often been used to describe the security of an investment. The new proposals will reduce the descriptions to three clear classifications: (1) Mortgage debenture or mortage debenture stock to be used where

the borrowings do not exceed 60 per cent, of the value of the company’s interest in land. (2) Debenture or debenture stock, which description will be limited to cases where the prospectus discloses adequate backing of tangible assets for the borrowing. (3) Unsecured note or unsecured deposit note. This description will cover all other borrowings; the use of the word “unsecured” being used as a warning to investors as to the value of the security offered.

The proposed Clause 26 will allow the court, at its discretion, to declare a company director personally liable for company debts if he is convicted of obtaining credit for the company at a time when he knows that there is no reasonable chance of the com pany debts being paid.

This, said the Secretary of Law, is aimed at directors of “£2 proprietary companies”, who de liberately allow their company to nin down by incurring large liabilities, by withdrawing large sums by way of salary and allowances and then permitting the company to go into liquidation so that they are left with their ill-gotten gains.

Canned Soft Drinks

For The Islands

THE Australian firm of Cottee’s Limited is now exporting soft drinks to Pacific Islands markets in addition to their already large range of other products.

Previous exports of soft drinks in bottles has been impracticable due to the problems associated with break age, and the reclaiming of bottles after use. With the introduction of soft drinks in cans, Cottee’s are able to export to Pacific areas because of lower packaging, freight and handling costs as well as reduced insurance rates due to the reduced amount of breakage.

The soft drink cans now being ex ported feature a built-in opener in the top.

Cottee’s export manager, Mr. H. J.

Watts, said in December: “We will not be competing with locally-made soft drinks which are marketed, for the most part, among the natives. Our soft drink will cater chiefly for the Europeans in the Islands.”

Rheem Takes Over

W. R. Carpenter Holdings Ltd., which is represented in P-NG by Pacific Trading Company Ltd., announced in December that it pro poses to sell its interest in the New Guinea Drum Company Pty. Ltd. to Rheem Australia Pty. Ltd., in order

to release funds for other develop ment purposes.

New Guinea Drum Company Pty. Ltd. commenced production in October, 1965, following its develop ment as a joint venture by the W. R.

Carpenter and Rheem groups.

Search For Oil

THE Compagnie Francais des Petroles is to begin prospecting for oil in the Chesterfield Islands, a collection of small, rocky outcrops some 450 miles north-west of New Caledonia. New Caledonia ad ministers them.

The company will first make an aerial magnetic survey, and if any evidence of oil is found, it will begin investigations from a base on one of the islands.

Another Carpenter

Comes On Stage

ris nearly three-quarters of a century since Walter Randolph Carpenter first made his impact on the Pacific Islands (in Fiji and at Thursday Island), and 50 years since he established W. R. Carpenter & Co.

Ltd., and 11 years since he died; but his soul goes marching on.

The assets and earnings of the big WRC organisation now are measured in millions, and “young” Randolph Carpenter joined the board of the con trolling company the other day, when shareholders gathered amicably to re ceive the usual gold-edged “statement of accounts”. Randolph’s initials are WR.

Walter brought his three brothers and his two sons, RB and CH, into the original organisation. The brothers, rich and successful men, are retired or passed on; but Messrs. R. B. and C. H. Carpenter now are respectively chairman and vice-chairman of the group.

The new director, “young”

Randolph (he is in his early thirties) is the son of Mr. C. H. Carpenter.

Like most of today’s grandsons, he is inches taller than the previous genera tion, and goodlooking, to boot —God arranged his features nicely, to harmonise with the “Carpenter beak”.

The other Carpenters say he’s the best of the lot, and knows where he’s going. Time will tell. —RWR.

Cattle Tick

At Sogeri

FIVE hundred head of cattle on two properties on the Sogeri Plateau, Papua, were affected by a cattle tick outbreak in late November.

The properties, Sogeri Plantations Ltd., and the Department of Agri

culture Stock Inspector’s holding paddock at Moronumu, were both placed under quarantine, and spray ing was carried out.

Mr. J. Anderson, Chief of the P-NG Division of Animal Industry, said that the outbreak was the second since cattle tick was first eradicated from the Sogeri Plateau in 1955. The present outbreak was probably due to unusually widespread movement of tick infested deer from Wariarata Bluff to Sogeri. The movement was due to dry conditions, combined with the Department’s coffee rust eradica tion activity.

Emperor Mines

Want Subsidy

EMPEROR Mines Ltd. has ap plied to the Government of Fiji for a subsidy. The company says this is necessary to carry out its explora tion, development and research pro gramme. It adds that there has been a recent depletion of its “deferred” ore reserves.

The Fiji Government paid the company a subsidy for three years in the late 50’s and early 60’s.

When the subsidy ended the Government made a remission of port and Customs service tax which did not reach the value of the sub sidy.

American Samoa

'Needs Extra Bank'

SINCE Governor H. Rex Lee be came Governor of American Samoa in May, 1961, the United States Government has poured millions of dollars into Tutuila.

This money has helped to pay for the spectacular Lee Auditorium, the jet airport, educational television, the Mt. Alava aerial tramway, and the new Pago Pago Intercontinental Hotel.

According to the Samoa Times, American Samoa has now “truly entered the 20th century”. But the Times thinks that with only the Government-owned Bank of American Samoa, the territory still has some leeway to make up in the field of banking.

“A full range of banking services should be available,” the paper says.

“These include vacation loans, educa tion loans, home loans, business loans, farm loans, credit references, trust funds and numerous other services. . .

“We commend that one of the com mercial banks wishing to open a branch in American Samoa be en couraged to do so by the Government.

“We are convinced that commercial banking facilities offer a real boost to any developing economy.”

Steamships Enter

A New Field

THE nature of Steamships Trading Co. Ltd. became more complex each year and the company had now entered another field—a partnership with a world-wide company, Societe d’Oxygene et d’Acetylene d’Extreme Orient SA, the chairman, Mr. H. D.

Underwood, said at the company’s annual meeting in Port Moresby in December.

Mr. Underwood said that the partnership was erecting plant to manufacture industrial oxygen and acetylene in sufficient quantities to supply all P-NG requirements.

He said that with one or two minor exceptions, all branches, departments and subsidiaries had traded profitably in the latest financial year.

That, of course, was a reflection of the bigger Territory grant made by the Australian Government, and appearances indicated that the trend would continue.

Body To Deal With

GEIC Problems

AN Economic Development Com mittee has been set up in the Gilbert and Ellice Islands Colony to try to deal in advance with the problems that will beset the Colony when the phosphate deposits on Ocean Island are exhausted in about 15 years.

The committee has grown out of a recommendation by Mr. V. D.

Stace, a former South Pacific Com mission economist, who made a survey of the Colony’s economic problems in 1963.

The committee held its first meet ing in Tarawa in December. Its terms of reference are: • To promote and co-ordinate all economic development projects in the Colony and to advise on all pro posals for Colony resettlement. • To co-ordinate the policies of the Agricultural Department, Copra Board. Co-operative Societies, Loans Board, and Wholesale Society in re lation to the economic development of the Colony. • To evaluate and advise on ways and means for actively encouraging the development of local industries and commercial enterprises. • To consider inter-Colony and overseas communications and trans port needs in relation to the future development of the Colony.