Western Somoa,

"Remarkable Economic

Recovery"

Better days ahead for Western Somoa, Minister says

From R. F. Rankin in Apia Western Samoa’s economy jhould make a “remarkable re covery” this year and tremend ous progress in the next five

according to the country’s

Minister of Finance, Mr. G. F. 0. Betham.

A LL indications are that, provided 1 the country suffers no further re erses such as the January hurricane if 1966, Mr. Betham is correct.

Despite the hurricane, 1966 ended ►n a far better note than ex acted. Copra production actually ncreased; cocoa earnings were well ip; and the only major loss was uffered by the banana industry.

Export figures for 1966 with the igures for 1965 in brackets were; >)pra, 14,019 tons worth £W5822,000 12,370 tons, £839,139); cocoa, ,723 tons worth £604,000 (2,991 ons, £454,466) and bananas, 61,970 ases worth £BO,OOO (481,565 cases, !609,873).

A vigorous replanting and new ►lanting programme in coconuts, ocoa and bananas is now well under /ay. This was greatly stimulated iy the devastation in plantations aused by the hurricane.

As a result agricultural production hould show spectacular and con inuing increases over the next few r ears.

Meanwhile, tourism is showing a

definite upward trend. To cope with the increase in visitors Aggie Grey’s Hotel is rapidly being expanded, and plans are afoot to upgrade the Casino Hotel this year (see also p. 125), Other factors likely to influence the economy favourably during 1967 are the commencement of opera tions by the US firm of Potlatch Forests Inc., which has undertaken to spend SUSS million in developing a timber industry on Savaii over the next five years or so; and the pos sibility of low interest loans for development from the newly formed Asian Development Bank, of which Western Samoa is a charter member.

Development plan

Meanwhile, a fi v e-year-develop ment plan for Western Samoa has been presented to the country’s par liament.

The plan, which fills 240 pages, was prepared by the Director of Economic Development, Mr. A.

Gerakas, with the assistance of a fellow United Nations economist, Mr. C. J. van Rees.

It states that by 1970 some 7,530 new jobs, requiring investment of £W56,320,000, will have to be created if the present population growth is maintained.

By 1985, some 36,490 new jobs re quiring investment of almost £32 million will have to be created.

Despite the awesome figures in volved, Mr. Gerakas states that with continued Government effort towards the promotion of industry and diversification of produce, the targets can be achieved.

He predicts that by 1975, tourist expenditure will total more than £1,320,000 making the tourist in dustry Western Samoa’s biggest single money earner.

The plan calls for Government borrowing over the next four years of £H million. Of this amount £515,000 will be used in educational development and £250,000 to estab lish a Government-operated develop ment bank.

The balance will be used in other projects in addition to the five-year programme.

Mr. Gerakas says that present credit facilities are hopelessly in adequate, so that many operations are forced to start on a “shoestrong”, and low agricultural productivity re sults from the meagre input of capital.

He points out that by ultilising re serves and savings now invested over seas, and by forcing insurance com panies to invest premiums within the country, almost £H million of additional capital could be injected into Western Samoa apart from out side capital.

MINISTER DEAD: Mr. F. C. F. Nelson, Western Samoa's Minister of Works, [?]ransport, Marine and Civil Aviation since [?]1957, died suddenly on January 5 after [?]isiting a dentist. He was 49. For an [?]utline of Mr. Nelson's career, see p. 154.

The fierce hurricane that devastated Western Samoa's banana plantations just over a year ago has stimulated a vigorous new planting programme.