Yen Gathers Pace

In New Hebrides

Japanese involvement in the New Hebrides is officially regarded as ‘considerable’, writes lan Mclntyre in Vila.

And it is increasing monthly as new areas of commerce are

explored, existing production

facilities are expanded and more yen investment flows in.

The most tangible evidence of a Japanese presence can be seen at Palekula on Espiritu Santo, where there is a large, self-contained fishing base, and at the Le Lagon Country Club and Hotel on the shores of Erakor Lagoon near Vila.

But there are many less obvious signs of Japanese interest. Strong Japanese ties can be found in ‘offshore’

companies registered under

both the British and French tax haven legislation. These companies are involved in

shipping, mineral exploration,

copra production and process

ing, timber, beef and some small scale manufacturing.

The fishing base at Palekula has been in operation since 1957 when the South Pacific

Fishing Company (SPFC) took

over the wartime US Marine base. The Japanese have modi fied and extended it and are now using it to process fish, caught in the Coral and Solomon Seas and destined for American markets.

Using longline fishing boats

from Taiwan and South Korea plus their own catchers, the Japanese land and process around 10000 tonnes annually.

The export tax contributes sub stantially to the con

dominium’s budget.

Recently the New Hebrides Government took a 10% interest in SPFC and a seat on its board. Shares were acquired under an agreement whereby export duties payable by SPFC

were reduced and the Minister of Finance became the govern ment’s ex officio board mem ber.

The value of fish exported in 1977 was FNH 1056.9 million, making the industry the New Hebrides’ second biggest after copra. Last year FNH 1107.3 million worth of copra was exported, FNH 63.7 million worth to Japan.

In February the green light was given to Mitsubishi- Sumitomo to set up a SA6-

million-plus woodchip mill in

Santo. Native limbers and specially-grown stands will be used. This decision, one of the first major decisions by Chief Minister George Kalsakau. came after several years of study sponsored by the Japanese Government.

Mitsubishi-Sumitomo is in terested in timber stands on other islands but so far no firm agreements have been reached with land owners, villagers and custom chiefs on a formula for removing timber and trans porting it to the Santo mill.

Japan has agreed to buy around 1000 tonnes of locally produced beef over the next year. The meat will be frozen at the SPFC base and shipped to Japan. Freezing facilities at SPFC are to be expanded to enable it to hold up to 900 tonnes of beef. Indications are that Japan will be increasing its order in years to come.

Last year 2700 Japanese tourists visited the New Hebrides out of a total tourist turnover of 24 545. This was an increase of 187% on the num ber of Japanese visitors in 1976.

The stimulus for this jump has been Japanese control of Le Lagon Hotel, owned by the

Tokyu hotel organisation.

More than SASOO 000 was spent on a facelift and reorgan isation of management and ser vices.

Nowadays, in a package

deal, engaged Japanese

couples jet in, celebrate an

Island-style marriage in a

Melanesian Christian church and then stay on for the honey moon.