Diagnosing

New Caledonia

If a busy doctor was called to the bedside of ailing New Caledonia, after a casual inspection he would be tempted to toss the patient out of bed and tell him to go back to work.

The trade balance is favourable, only 700 people are registered as being out of work, nickel exports are higher than last year and the cost of living rose only 6.42% in 1976.

Yet the doctor would do better to consult the pathologist before pro nouncing his final diagnosis.

Blood pressure is high. There are signs of anaemia, as the blood count shows that the red corpuscles in vestors and experienced and skilled craftsmen are leaving the terri tory. And if cholesterol and urea counts are down, it is simply because the territory is not longer consuming excessively rich foods.

The territory’s revenues are limited, but important. Hopes were high for the future development of nickel production for the world’s second largest deposit. But Europe’s steel industry, the largest consumer, is in difficulty. Not only have foreign investments been dis couraged. but they have gone elsewhere, creating competitive sources of supply.

Coffee prices have climbed to

unexpected levels. But production

has dropped and is now sufficient for local consumption and limited exports. The number of tourists has tripled in four years, but the great majority are tempted by the UTA package tours which direct them to the Chateau Royal Hotel that has never made a profit. The GNP, at 54 billion Pacific francs, represents roughly SA4 000 per capita. But at constant prices this represents only 3% increase in seven years.