from Japan

Direct project aid from Japan to Solomon Islands

Japan has become the thirdbiggest aid donor to Solomon Islands, spending more than $2 million a year on direct project funding and with indications of a gradual increase in its commitments. Britain, which was the former administering

country in Solomon Islands, provides direct aid of up to $lO million a year and Australia provides about $5 million, The Solomon Islands govern ment looks on Japan as a significant aid donor, particu larly in the development of

fisheries resources which are seen as a long-term important sector of the economy. Mr Peter Agar, head of the central plan ning office under the Kenilorea government, reported recently that the government appraises possible projects which could be the subject of Japanese aid and then submissions are made to Japan for final selection.

Mr Agar said that Japan preferred to fund one project a year to its completion. This differed from the system used by Britain and Australia in which a number of projects were financed each year with the total expenditure spread over several years. The biggest project at present under con sideration by Japan is for a rural fisheries development scheme, and unlike earlier Japanese aid schemes the expenditure would be spread over two years. The proposed scheme would allow villagers in the scattered Solomon Islands to develop fishing skills, to put their catches in local cool storage and then to arrange shipment to main centres. The scheme would also involve the establish ment of provincial fish markets and its target would be to provide a source of fish for wage and salary earners in the main centres.

A Japanese assessment mission is to visit Solomon Islands to discuss the scheme.

The mission will also discuss the general terms of future aid programmes from Japan, with accent on the development of passenger and freight coastal shipping services.

Mr Agar reported that another major project involving Japanese expertise and funds was exploratory technical tests into bauxite deposits which are known to be under a lake on Rennell Island. The Mitsui Mining and Smelting Company of Japan has already found evidence of bauxite on one side of the lake.

Mr Agar said that Japan’s concentration on a single pro ject each year sometimes caused ‘complications’ in long range planning, but Japan was still seen as a major and import ant aid donor over a long period of time.

The scope of Japanese aid since Solomon Islands became

independent in 1978 has covered a wide variety of pro jects, particularly in technical assistance. Commercial scale fisheries has been the major field of aid, including the pro vision of three fishing ships, the export of fish and fish products, and high-level technical train ing. Japan has also made cul tural and sporting grants, has donated medical equipment, has helped with the develop ment of a local ship-building industry and has trained Islander technicians in Japan.

Japanese volunteer workers have also been working in Solomon Islands and there has been a measure of assistance to agricultural projects.

The Japanese charge d’affaires in Solomon Islands, Mr , Shigeru Kurosawa, says that Japan wants to expand its links with the Island country, including an increase in aid. He said recently that the popu lation of Solomon Islands was comparatively small and this was a limiting factor in aid arrangements under policies laid down by the Japanese government. However the gov ernment would be closely moni toring growth and was prepared to step up its aid. There was increasing pressure from some Japanese members of parlia ment, he said, to make a general increase in aid to all Pacific Island countries. Mr Kurosawa said that there was not yet a full acceptance throughout Japan of the concept of forging closer links with the Pacific Islands community, but he believed this attitude would change over the next two years.

Commenting on the fact that Japan is the biggest buyer of exports from Solomon Islands, Mr Kurosawa said he believed that reciprocal trade was about to undergo a big expansion.

Private enterprise sources in Japan, as well as the govern ment, were showing an interest in aid projects which could be combined with business ven tures beneficial to both countries.

The biggest Japanese com mercial venture now operating in Solomon Islands, and in which there is Solomons partici pation, is a commercial fisheries venture. It is Solomon Taiyo Ltd, a joint venture between

Japanese interests and the Solomons government. It was established in 1973 after two years of negotiations, and it fishes and cans bonito and tuna for export. The government share was initially 25%, now increased to 49%. The com pany’s base and cannery is at Tulagi, the former capital of Solomon Islands which suffered heavily during World War 11.

The cannery there now pro duces 500 cases of canned fish each operating day, and an associated factory produces arabushi (smoked fish).

In 1975 the scheme was expanded with the establish ment of a second base at Noro in the Western Province. The modern installation there cost $2 million, and an additional

$4O 000 was spent on a road linking the base to Munda.

About 900 Solomon Islanders work there, and the financial manager, Mr S.Y. Saito said that this number would be increased as more Islanders were trained and Japanese nationals were phased out.

The exports from the Noro and Tulagi operations go to Japan, West Germany, Britain, Italy, Australia and Switzerland, and the trade is increasing to the extent that an enlarged cannery will be estab lished at Noro by 1983. Apart from the government’s earnings from involvement in the com pany, extra revenue is available from a 10% export levy on the

product.

George Atkin in

Honiara.