More Phosphate

Monies Likely For Banabans, GEIC

Both the Gilbert and Ellice Islands Colony Administration tion and the Banaban people of

Rabi Island, Fiji, expect to re

ceive more money from Ocean

Island phosphate following talks

in Wellington, New Zealand, in

late August and early September.

BUT the division of the money is likely to be in much the same proportion as it is now, as the Banabans failed to get anywhere with their claim that they have been receiving an unfairly small share.

The talks took place between re presentatives of the British Govern ment, the Banabans and the GEIC.

The Banaban representatives were officially part of the UK delegation; but the talks, in fact, were mainly a two-way affair between the GEIC and the Banabans, with the UK delegation acting as referee.

Heavy Tax

At present, the Banabans (who own Ocean Island, but who have lived in Fiji since 1945) receive a royalty of 3/8 a ton on all phosphate exported from the island; and the GEIC (of which Ocean Island is a part) imposes a tax of 25/- a ton.

The phosphate is exploited by the British Phosphate Commissioners on behalf of the British, Australian and New Zealand Governments.

At the talks, there was general agreement that the GEIC and the Banabans should get more from the phosphate; but no agreement could be reached on how the money shoulc be divided.

The Banaban view was that the tax of 25/- a ton, compared with their royalty of 3/8 a ton, was so high as to represent virtual ex propriation of the phosphate industry They pointed out that more than 50 per cent, of the normal revenue of the GEIC came from Ocean Island phosphate; and claimed that it was unjust that the British Governmen should run the GEIC so largely at their expense.

The stand of the GEIC delegation was so far apart from the Banaban viewpoint as to be irreconcilable; and it was decided that the question of how the phosphate monies should be divided should be left to the Colonial Secretary.