Bougainville talks

[?]ough going in Bougainville talks

From a Port Moresby correspondent The Papua New Guinea Govern ent and Bougainville Copper Ltd e both finding that their negotia )ns over possible alterations to the g Bougainville copper agreement e tough going. Talks between the irties broke up in Port Moresby August without a date being set r the next round—which will be e fourth. The government said it ipected another round within a onth to aim at reaching a formula r mid-September, but the company is had nothing to say.

The talks are centred on the re don of the agreement under which 'JG’s biggest profit earning com ny operates. Its first year profit }t year was $158 million—a figure lich it has been estimated might out equal the half year’s earnings is year.

The PNG negotiating team, com ising outside advisers, is demand- I a big increase in PNG’s share of »ugainville profits and is generally dng a hard line; the company =ues that if it is “taken to the aners” in the early years its cash w will be reduced to an extent that II seriously hamper its ability to

itinue development.

The divergence of opinion between : two parties seems far wider and more serious than the scanty an uncements so far made have indi ct, and some PNG government icers have wondered whether IG’s advisers are not taking too *d a line in view of the effect a al breakdown of the talks might /e on international investment :h interests or potential interests in 1G development.