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AIR NAURU, the heavily subsidised national airline of Nauru, has raised its fares in the face of what it calls ‘economic necessity’. The airline, which accounts for one of the biggest single items of expenditure in the Nauru budget, is expected to lose more than $11 million this year. The new fares represent an increase of 48% on the Nauru-Melbourne route, 65% on Nauru-Honiara and 34% on Nauru-Manila.

EXPERIMENTAL work in using windmills to pump fresh water supplies from under the ground is being carried out in the Marshall Islands by Mr Jim Abernathy, a special projects officer with the public works office. The US Department of Energy has made a grant of $7780 for the work. Salt water intrusion is one of the problems of using ground water in low-lying islands, and the Abernathy project will research methods of overcoming this. One method is the installation of a sensor to shut down the pump if salt is detected.

THE CLOSURE of the UK sugar refinery, Tate and Lyle of Liverpool, will not affect financial arrangements applying to raw sugar exports from Fiji. This assurance was given at question time in the House of Commons last month when it was announced that representations had been received from the Fiji Prime Minister, Ratu Sir Kamisese Mara, and representatives of other Lome Convention countries. The House was told that the European Economic Community’s obligations to sugar producing members of the Lome Convention would not be affected by the closure of the refinery.

TONGA’S development plans for 1981, announced recently by King Taufa’ahau Tupou IV, will include the creation of a mullet fishing farm in a 243 ha area of sea. US aid will be used in the project. Tonga also plans to complete or to begin building seven new hotels and to take delivery from Germany of a new inter-island ferry to replace the former ferry Olovaha.

NEW regulations to control crocodile farming and trading came into force in Papua New Guinea in February. In general the regulations provide for licensing and controls so that PNG can obtain the maximum financial benefit from crocodile farming without affecting crocodile numbers. PNG is considered one of the few areas in the world at present where crocodiles are not a potentially endangered species, but ecologists have warned that careful management is necessary.

PLASTIC tableware, soaps and detergents are now being manufactured in a newly-established factory in Labasa, Fiji.

The factory is owned by a family company, Gurbachan Singh Enterprises, and was established at a cost of $367 000.

The company already produces and packs food products, and is planning to establish a confectionery factory.

AIR TUNGARU, the national airline of Kiribati, has taken its first step into big equipment by ordering a Boeing 727 jet which will come into service in the second half of this year.

The price of the aircraft exceeds $3 million, and its first use will be on the Kiribati to Christmas Island route which is at present operated under charter by Air Nauru. Kiribati hopes to negotiate routes to other Pacific countries.

NEGOTIATIONS with Australian businessmen have been initiated by the Papua New Guinea Chamber of Commerce and Industry in a move to form a PNG — Australia Chamber of Commerce. The president of the PNG chamber, Mr John Cruikshank, said that senior government officers in PNG had encouraged him to formalise links which already existed between businessmen in the two countries. This was

seen as a method of promoting investment acceptable to the PNG government.

WESTERN SAMOA is to spend $10.8 million on a big agricultural development project which will provide techni cal and research facilities, extension services, training programmes and opportunities for tertiary education in agriculture. The project will be related to coconut and cocoa production and to pasture development. Funds for the project, including loans and grants, are being made available by the Asian Development Bank, the International Develop ment Association of the World Bank, the Australian Development Assistance Bureau and the Western Samoa Trust Estates Corporation. The government of Western Samoa will provide $1 million towards the project.

FIJI has negotiated a reduction of $12 a tonne on the copra freight rate to London, but the saving will not be reflected in buying rates offered to growers. The saving instead will be paid into a stabilisation fund to subsidise growers at times of low prices or low production. The present buying rate, to remain unchanged, is $280 a tonne for first grade copra and $278 for second grade.

MILAN Group (Fiji) Ltd, a major construction company in Fiji, has been put into receivership by one of its biggest creditors, the Bank of New Zealand. The company had two big contracts on its books when its affairs were taken over.

The contracts, both partly-completed, are for the school of social and economic development at the University of the South Pacific and a multi-storey shop and office block for the Native Land and Development Corporation. The university contract, worth about $ 1.8 million, was being financed by an Australian government aid grant. The development corpor ation contract is worth $2 million. Alternative arrangements are being negotiated to complete the buildings while an investigation continues into the company’s affairs.

RIGHTS to operate a big timber lease at Vanimo in the far north-west of the Papua New Guinea mainland have been granted to Hetura Meja Development Pty Ltd, a consortium of Philippines companies. But in mid-February a row was pending following allegations that the government had gone against the advice of its forestry officials. The Office of Forests is believed to have recommended a South Korean firm, Halla Resource Corporation.

A NEW type of copra drier suitable for small-scale copra producers is being manufactured in Solomon Islands and has created widespread interest. A Honiara company, Solomon Islands Steel and Welding, is producing the driers which are available in several sizes. The ‘traditional’ small-scale driers used in the Solomons at present are made from cut-down oil drums.

THE FOUR Micronesian countries which make up the Federated Slates of Micronesia — Truk, Ponape, Yap and Kosrae will get more than $2 million from Japanese fishing companies this year in return for fishing rights. Cash payments will total $ 1 845 000 with the balance of $277 000 in development aid. Up to 800 fishing boats will be allowed to operate in the zone.

SOUTH Pacific Island Airways of American Samoa expected in March to have a Boeing 707 in service between Pago Pago, Honolulu and Tahiti, replacing a service closed down by Pan American World Airways in October 1979. The 707 will be based in Honolulu under a lease and contract arrangement with Pan Am World Services, a subsidiary of Pan American. SPIA has created a separate division in Honolulu to manage the new service.