downs, but mostly down

Samoa's economic ups and downs, but mostly down

The inadequate supply of taro and bananas has contributed to internal inflation in Western Samoa as supple mentary foodstuffs have to be im ported from Australia. The Bank of Western Samoa raised this point in its annual report for 1974, when looking at prospects for 1975.

The bank put the cause of lower production as the drift of many former small farmers and potential agriculturalists to the Apia area to take up work, and the emigration of large numbers of Western Samoans to New Zealand. Remittances from NZ to families in Western Samoa fuelled the demand for imported food.

Development of light industry would go a long way towards re moving the need for Western Samoa citizens to look for work overseas.

A change in the land tenure system aimed at arresting the drift of young men from the land was receiving the attention of a specially convened Land Court.

The cocoa industry did much better than expected in 1974. Production at 1,816 tons, was well above the 1973 figure of 1,218 tons and the forecast 1974 figure of 1,100-1,200 tons.

World prices for cocoa flavour re mained high and, along with reason able weather, contributed to the satisfactory result.

The increase in cocoa production was particularly welcome as many plantations were becoming un economic in the early 70s, and pro duction was falling. The industry is again a major source of overseas exchange. The bank’s hopes for con tinued good prices have been sus tained so far in 1975. Although prices have not “gone through the roof” as they did about 18 months ago, the London rate has been fairly steady in the £650-£750 bracket for several months.

The copra industry has not done so well, after booming 12-18 months ago. In 1974, the Western Samoa average price was $3lB a ton, but at the end of the year sales were at $240 a ton. The forecast production for 1975 was 19,000-20,000 tons, but that could be adversely affected if there were further serious falls in prices, which reduced incentive. [The coconut industry, world-wide, has fallen on hard times. Countries in the Asian and Pacific coconut com munity are talking about a restructur ing of the industry, so that new coco

nut products may find their way on to shop shelves. Low prices have been followed by stagnating production, and the future for traditional uses of the coconut are not bright.] Nevertheless, the bank is hopeful that increased Western Samoa pro duction in 1975 might offset lower prices, and still make it a satisfactory year.

The bank says the banana industry needs substantial support to help overcome escalating costs of ferti lisers and sprays. The timber industry was lagging because of the difficulty of getting spare parts for machinery through shipping problems, and there had been a decrease in returns from manufactured goods, such as handi crafts, canned fruit, processed food and clothing.

The tourist industry had potential, says the bank, but to encourage the growth of visitors, procedures for get ting entry permits should be simplified and they should be for longer than the present three days. The industry should also ensure that all inter national flights arriving at Pago Pago were met by Polynesian Airlines.

The bank said credit control would be of considerable importance in 1975. It would be essential to direct imported capital towards development expenditure to dampen a quickening in demand for consumer items. Other areas of concern were the import of luxury goods and the use of fuel.

Some wastage occurred in the import of motor vehicles not designed to withstand the rigours of the climate and roads. There was a case for transport pools.

To make further economies in fuel consumption, alternative methods of generating electricity should be examined. Solar energy for domestic use had made significant contribu tions towards power savings in other countries.

Tonga's infant

bank is thriving

Tonga’s infant bank, the Bank of Tonga is thriving. In its first six months of operation, deposits passed the $5 million mark, TTiis was re vealed at the second annual meeting of the bank, which is owned by the Government of Tonga, the Bank of Hawaii, the Bank of NZ and the Bank of NSW. The bank now has

nore than 19,000 savings accounts, md 800 cheque accounts. After pay ng taxes of $46,301, most of it in fonga, the bank made a profit of 198,639.

The chairman, Mr C. D. Terry Bank of NZ) said the stage had been cached where the directors would >e looking for increased opportunities :> promote local industry. He hoped hat with the government’s encourage lent, overseas technology would be married” with Tongan labour to rovide favourable opportunities for nergetic entrepreneurs to contribute ) the growth of the economy and nproved living standards for Tongan eople.

Mr Tait (Bank of NSW) has been lected chairman for the current ear.

: fji firm's profif

mt of property

Fiji Property Centre Ltd, a Suva ised development company, earned trading profit of $79,152 in 1974, impared with $66,675 in 1973. here will be no final dividend be tuse of the need to set aside $21,184 r possible future income tax pay ents. There was an interim dividend 5 per cent.

Completion of Air Pacific House id several other buildings has given ji Property Centre a portfolio of cellent income assets. Not all these hidings were finished and earning oney in 1974, Hillier Park May id Rowden, an international firm of operty consultants, has revalued Air icific House at $2 million. Hie hiding was previously valued at ,114,320. The company’s share- Jders funds increased from 99,802 to $1,297,405 in 1974.

The company has a 20 per cent erest in Bellevue Ltd, which plans build a first-class hotel at the rner of Duncan and Denison Roads Suva. Planning is at an advanced tge. The other 80 per cent is owned Asahi Development Corp (New ;brides) Ltd.

lew partners in

iji copper search

A search for porphyry (hard rock) pper will be stepped up by a new rtnership comprising MIM Hold ;s Ltd, of Australia, Anglo Ameri i Ltd and Emperor Gold Mining i Ltd, of Fiji. Anglo American, iich is South African-controlled, in rtnership with Amax Inc, of the », has already received “promising” ults from an investigation of the imosi porphyry copper deposit in i.