Phosphate Islanders Hope
p. 17 · Read in the full issue
For New Successes
By a Staff Writer
The leaders of the twin phosphate islands of Ocean Island and Nauru are to press for substantially higher payments on the phosphate exported from their islands at talks with Govern ment officials in the next few months.
THE Nauruans, whose island is a United Nations trusteeship terri tory administered by Australia, will ask for a payment of 68/- a ton on all phosphate exported from their island. This compares with the 17/6 a ton royalty they now receive, and the 3/8 a ton they received on phos phate exported before 1964-65.
The Nauruans, who will regotiate with Australian Government officials in Canberra in April, will also renew ;heir claim—made in Canberra last i^ear —that they are the legal owners ?f their island’s phosphate, and that he British Phosphate Commissioners should be regarded only as managing igents for them.
The Nauruan view is that the phos phate should be sold at the prevailing vorld price and that the BPC should ;et an “attractive” management fee or running the industry.
They believe that an “attractive ee” for the BPC would be 20 per :ent. of the world price for phos >hate, which would leave them with m income of 68/- a ton.
In presenting their demands, the Nauruans will be assisted by their conomic advisers, Messrs. Philip •hrapnel and Co., of Sydney.
Reports from Canberra and Mel bourne indicate that the Nauruans hould achieve some success in their lew negotiations, as their case is now sgarded as “politically hot”.
Banaban Case
Shrapnel & Co. has also been en aged to advise the Ocean Islanders Banabans) in their efforts to obtain larger share of the “spoils” from leir island. The Suva law firm of /illiam Scott and Co. will also give le Banabans legal advice.
The Banabans’ case is more com licated than that of the Nauruans i that Ocean Island is not a single ntity like Nauru, but part of the filbert and Ellice Islands Colony of rreat Britain, which has also re rived a “royalty” on the phosphate Dr many years.
Another difference is that the
Banabans no longer live on their island, but on Rabi Island, Fiji.
However, as on Nauru, the phos phate industry of Ocean Island is run by the British Phosphate Commis sioners (i.e., the British, Australian and New Zealand Governments).
Until now, the Banabans have never been permitted to have outside experts to advise them, and in the 20 years they have lived on Rabi, they have not been consulted in any negotiations over the island’s phos phate.
Negotiations in the past have been conducted between representatives of the three BPC powers, with the British delegates (assisted by repre senatives from the GEIC Adminis tration) trying to get as much as possible to run the poverty-stricken Gilbert and Ellice Islands.
The Banabans’ situation was de tailed for the first time in a series of articles in PIM last year.
Under a five-year agreement reached in 1960, the GEIC received a royalty of 23/- a ton on Ocean Island phosphate while the Banabans receive 2/8.
When this agreement expired in February last year, new negotiations were begun in Canberra in May, but no agreement could be reached, and the negotiations were continued at diplomatic levels.
Interim Agreement
The three BPC Governments finally came to a new interim agree ment early this year, the details of which were announced at a meeting of the GEIC Advisory Council in Tarawa on February 4.
Under this interim agreement, the payment to the GEIC has been in creased by 2/- to 25/- a ton on all phosphate exported from Ocean Island from February 6, 1965.
Meanwhile, the British Govern ment (which, under the agreement, accepts “the exclusive responsibly” for the “allocation of benefits to the Banabans”) has agreed to increase the Banabans’ royalty by 1/- to 3/8 a ton.
Other conditions of the interim agreement are: • The annual rate of export of phosphate from Ocean Island will be increased from 310,000 tons to 340,000 tons from February 6 last year. • The present exemption of the BPC and its employees for normal taxation (including cus toms duties, income tax and licence fees) has been abolished from January 1, 1966. • The BPC will pay an additional sum of 4/- per ton on phosphate exported into GEIC revenue in lieu of normal taxation for the period from February 6, 1965, to December 31, 1965.
Further negotiations, with the Banabans taking part, will be held at a place to be fixed after the negotiations in Canberra in April between the Australian Government and the Nauruans are completed.
I understand that the Banabans will first seek to know the total amount of royalty that should be available on their phosphate, assum ing it was sold at the world price.
They will then seek to negotiate on how this royalty should be divided between themselves and the GEIC.
A representative of their economic advisers, Mr. K. E. Walker, was due to fly to Rabi early in March to confer with Banaban leaders on the approaching talks.