Tonga’s economy

Bank plans to boost Tonga’s economy

A South Pacific mercantile bank wishes to set up in Tonga and bring with it new industries which will create employment, King Taufa’ahau Tupou said in his speech from the throne when opening the 1977 session of Tonga’s Legislative Assembly. He did not name the bank.

He referred to it after saying the Bank of Tonga had helped the coun try’s development, but there were some requirements with which it could not cope. Thus, it was con sidered necessary to set up the Tonga Development Bank which would assist people in fields outside the services offered by the Bank of Tonga.

The mercantile bank’s intended ventures included introduction of an aircraft assembly firm for amphibious planes to sell in other parts of the world. It also intended to bring in a ship-building firm from Canada which specialised in build ing aluminium boats for fishing, cargo carriage and patrol work.

The king said there was another company interested in setting up a pharmaceutical firm, which would package medical drugs from North and South America for re-export to Asia. Still another company the mercantile bank hoped to introduce was one which would process coconut oil to make salad oil, paints and varnish, margarine and other products which Tonga now im ported.

“The same bank is also interested in extending the airfield to accom modate large international jet aircraft,” the kind said. “It is also interested in establishing an airline to improve communications with the United States and Asian coun tries, with perhaps improved con nections to other jet airfields in the Pacific.

“The bank also intends launching a satellite to improve com munications between Tonga and other parts of the world, for much of its activities will depend to a large extent on instant communications over long distances. The com munications will be with countries

where financial trading is estab lished and investments and other commercial businesses provide ser vices necessary to the functions of the bank.”

A slipway was also envisaged.

The king said Tonga had always wanted an extension to the airfield and construction of a slipway. In the past they were just visions. Today, he was pleased to say, they were beginning to materialise. Interest in their construction had been re ceived from four sources. Negotia tions were in progress to work out details of the venture. Countries showing interest in the slipway were Australia, West Germany, Japan and Canada.

The possibility of setting up a sugar mill was being investigated by an expert made available by the Taiwan Government. A sugar indus try could eliminate an import and supply nearby markets in Samoa and Niue. The results of a feasibility stu dy by an Australian firm about set ting up a cannery were nearly finish ed. Canning was expected to start with tomatoes and then go on to other produce and fish.

There was also an investigation into new markets like Honolulu for agricultural produce.

Mitsui abandons

Rennell bauxite

The doubtful delights of a major mining operation on their island has been lost to the people of Rennell Island in the Solomons with the June decision of two foreign com panies not to go ahead with a $3OO million bauxite-alumina project there.

The companies are Mitsui Mining and Smelting Co of Japan and Pacific Aluminium Pty of Australia.

The latter company is a wholly owned subsidiary of Conzinc Rio tinto of Aust Ltd.

Their “no-go” decision ended seven years of study of the project qnd shattered seven years of piled up dreams for Rennellese inhabi tants.

But is the decision a total loss?

Some people here see a bright side to it. They feel that the Rennellese, who have been less affected by Western influences than most Solomon Islanders, would have been worse off if the project had gone ahead, with a giant smelter spewing fumes into their midst and bulldozers flattening their gardens.

Main factors deterring Mitsui, which had a 50% interest in the pro ject, from going ahead were the con tinuing slackness in the Japanese aluminium industry, and the difficulties of raising finance in the current economic situation.

Carpenter widening

its Fiji interests

Kanacea Island, in central Lau.

Fiji, owned by Morris Hedstrom, one of the Carpenter companies, is for sale for SFS million. It has been advertised in London. Kanacea is about three miles long and about 2V 2 miles wide. It is a copra pro ducing island and requires a work force of about 60. Its highest point is about 253 metres above sea level.

Kanacea is one of several pri vately-owned islands in the copra areas in the eastern islands of Fiji.

Others include Mago, Naitauba.

Katafaga and Laucala.

W. R. Carpenter is expanding its Fiji interests and at the same time will improve the cash flow should the sale of Kanacea Island go through at the price sought $5 million. Early in May, the group paid $F740,000 for a controlling in terest in the Desbro steel rolling mill, Suva, and will now spend more than $1 million to expand it. The Fiji public will be offered at least 10% of the shareholding in the mill after it has been reorganised.

Tunnelling for

treasure at Ok Tedi

Australia’s Broken Hill Pty Co Ltd was reported ready in June to begin a major phase in the Ok Tedi copper prospect in Papua New Guinea.

The company said the new stage involves the driving of two tunnels one of 270 m and the other 540 m into the ore body at Mt Fubilan.

The work requires removal of more than 9 000 tonnes of material, which will be crushed and sampled.

More than 140 drill holes had already been sunk at the time of the announcement.