Who should get the nickel profits,

France or New Caledonia?

From GERALD ROUSSEAU, in Noumea The New Caledonian nickel export issue—whether to sacrifice “local” Caledonian ore export expansion now for the benefit of “national” French companies, which will not be fully operative before 1975 —is seriously disturbing the Noumea Gaullist party.

Following the failure of leading Caledonian independent miner, Edouard Pentecost, to back down on the issue, the Gaullist paper Le Drapeau has severely chastised (with out naming) him for his anti administration stand.

Mr. Pentecost is also reported as being tossed out of the Union Democratique Party for having failed to pay his dues—a mere S3OO per month as far as Mr. Pentecost was concerned, plus the use of his private planes for propaganda purposes.

At the same time the New Cale donian mining union Syndicat Independant des Mines has also continued its struggle to have quotas abolished on the export of nickel ore to Japan.

Since its formation in June and the despatch of its protest tele gram to President Georges Pompidou, the SIM union has been growing in numbers.

The union leaders have held dis cussions with the Secretary-General (in charge of the French Admin istration), Director of the Noumea Mines Department and with heads of the Governor’s Confidential Information Service.

In a bid to assess future op portunities for Caledonian mine operators and contractors, the union has also been in contact with all four large Paris-based mining companies which operate or plan to operate in the territory.

For their part, representatives of Japanese smelters, anxious to fulfil the original contracts signed with Caledonian mine operators, were ex pected to visit Paris in September, at the end of the French parliamen tary summer recess.

Meanwhile, Mr. T. Muto, in charge of the European desk at the Ministry of Foreign Affairs in Tokyo, visited Noumea in early August. It was believed to be the first visit of a Japanese foreign affairs ministry official in three years.

The Japanese have been trying

since at least 1967 to establish a consular agent in Noumea. Paris, however, seems reluctant to grant its approval, evidently eyeing with suspicion any foreign power that tries too much to deal directly with the Caledonians in business matters.

On the other hand, Caledonian independent miners have expressed concern at reports of the French Administration having refused either replacement or extension of stay for two Japanese mining engineers work ing in the territory.

The fate of six more such engineers has now become open to question.

The men are engaged in helping independent Caledonian miners who sell nickel ore to Japan. Members of the Territorial Assembly have queried the Administration on this matter.

Finally, Mr. Bourrelier, head of the Paris Mines Department (Ministry of Industrial and Scientific Develop ment) visited Noumea in August for talks with the local authorities as well as the independent miners.

The SIM sought a meeting with Mr. Bourrelier. It was hoped the Paris official’s visit would open a way to the lifting of the nickel ore export quotas and allow the Cale donians to work their mines as planned.

The French Government attitudes on the exploitation of Caledonian: nickel was outlined in Noumea onr August 14, during an expose on thes forthcoming five-year plan.

At a meeting in the chamber off commerce, the Administration out lined the principal objectives of thise sixth plan as far as New Caledonian is concerned.

Main target will be the production: of 160,000 tons of nickel metal byv 1975. This is four times last year’se production from the sole current! metal producer, the Societe Les Nickel. The 1975 output target is toe be achieved by the combined efforts of four Paris-based mining com panies, the SLN having a controlling interest in three of them.

It’s in order to give priority to thes needs of these four Paris-based com-j panics, the Administration explained,] that quotas have been imposed om the Caledonian miners’ exportation] of unprocessed nickel ore to Japan.: It’s estimated that the export oi< 160,003 tons of nickel metal (120,000 tons going to foreign markets) will! earn about SUS3SO million fou France in 1975.

At the time of the French financial crisis resulting in the devaluation ol( the franc in August, 1969, thei Administration explained, France’s' foreign reserves had dropped to $l,OOO million.

New Caledonia’s annual of from SUS3SO million, it was: pointed out, will provide France witH; one-third the value of its foreign; currency holdings of August, 1969 a considerable contribution to France from this Pacific territory.