Trade, as well as aid, is part of Australian

Pacific involvement

One of the criticisms sometimes voiced by Pacific Island nations is that their trade balance with Australia puts them at a disadvantage because they buy much more than they sell. Recent figures show however that Australian aid compensates for the imbalance, and the development of Island economies is expected to decrease general Pacific reliance on Australian exports.

The map at right shows Aust ralia’s concentrated area of in volvement with the South Pa cific Island nations. Estimated figures are given for Australian exports to and imports from the region, together with the value of aid provided in the region in terms of money, supplies and expertise. The bulk of the aid programme consists of direct budget support to Papua New Guinea in an untied grant of funds. The grant, which is a continuing annual commitment, is now being renegotiated. It represents about one-third of PNG’s total budget revenue. No significant decrease is antici pated, but PNG plans to make the aid a decreasing proportion of its total revenues.

Pictures show specialised Aust ralian products which are cre ating interest on Pacific Island markets. Above: A model shows the Black Max water ski, manu factured by Ski Ace and re cently exhibited in Fiji. Above left: Fairleads, sheaves, sail winches and other fittings from Australian manufacturers are being increasingly used on work and pleasure craft in Pa cific ports. Left: The Australian Forestmil self- contained port able sawmill is now exported to 27 countries, many in the Pa cific.