Forum’s In-principle’

Trade

Winds

Forum’s In-principle’ support for fund to help smaller countries

An extensive evaluation report commissioned by the South Pacific Commission (SPC) and the South Pacific Bureau for Economic Co-operation (SPEC) says that a regional development bank is not needed in the Pacific Islands ‘at this time’, but there is need for a Pacific Islands Fund to help smaller islands without access to larger financial institutions.

The report proposes that such a fund be established with the help of the Special Fund of the Organisation of Petrol- Exporting Countries (OPEC), and with financial help prob ably available from Canada, Sweden, Switzerland, some European Economic Com munity countries, possibly one or more Association of South east Asian Nations, (ASEAN) countries, and from Japan.

The report was prepared for the SPC and SPEC by Rodney Cole, of the Development Studies Centre of the Austra lian National University, and Graeme Thompson, chief econ omist of the New Zealand Planning Council, after visiting most of the Pacific states be tween May and early July this year.

The South Pacific Forum session in Port-Vila in August accepted it in principle and has asked for detailed reactions from the various governments for a final decision at next year’s forum meeting in Tuvalu.

The report says that because of their small size and distance from large markets or popu lation centres, the Pacific Islands have special difficulties for development and a need for substantial external assistance.

They have been receiving substantial assistance which will continue and possibly in :rease, but significant gaps jxist, especially in the needs of he smaller and more vulner ible island states.

A fund controlled by the slanders themselves would neet capital requirements with )ut involving the smaller islands n the costs associated with

World Bank of Asian Develop ment Bank membership. Such a fund would also tap new sources of finance and thus avoid dupli cation or conflict with existing bilateral and multilateral aid arrangements.

The Pacific Islands Fund would offer the following ser vices: • Special loans: For new production, energy develop ment, and short-term balance of payments or budgetary support. • Technical services: Support for the Pacific Regional Advis ory Service if established, specialist advice not elsewhere available, and a development information service. • Price stabilisation: A de pository and account for the regional copra stabilisation/ support scheme now being examined, and any other com modity price support arrange ment. • Disaster relief: To adminis ter relief funds should the Forum expand the provisions of the existing fund now managed by SPEC. • Support for remote islands: Operating assistance in trans port and communications to maintain vital social and econ omic links with small island countries, and island services within larger countries. • Guarantee facility: To sup port borrowing by regional organisations and the smaller national development insti tutions. • Research: To support ap plied research into particular regional issues.

The report proposes that the Pacific Islands Fund be consti tuted as a set of accounts (special loans, technical ser vices, etc.) to make its purposes plain. Each account would be separately administered. About SAIO million would be required to get the fund going.

Fund membership would be free, and through charter, and be open to all developing island countries and territories of the region.

It would be controlled by a

I board comprising a director appointed by each charter member, and the secretary general of the SPC and direc tor of SPEC as ex-officio mem bers. The board would meet annually.

Implementation of fund poli cies would be done by an executive comprising the board chairman, three other board members, and nominees of the SPC and SPEC. The executive might meet three or four times annually, and there would be an administrator appointed, with accountant and secretary, for the administrative work.

Banana exports

urged in Fiji

"iji is having a new look at the wtential of one of the oldest, )ut often one of the most lisappointing, agricultural ven ures in tropical countries :ommercial banana growing. In ommon with a number of countries Fiji once had a ignificant banana export indus ry, but disease and transport roblems overcame it and ba ana growing became a local ;ed subsistence industry.

A motion calling for a full :ale investigation into the com lercial potential of banana rowing has been passed trough the Upper House in the iji parliament, largely through te lobbying of the Great Coun -1 of Chiefs.

Senator Ratu Tevita akalalabure, a nominee of the real Council, told parliament lat modern methods of hand tg and disease control should ake a banana export industry tssible. He said earlier moves examine the potential had et with a ‘miserable response’ om the government on the ounds that the industry could it be made viable.

He believed that too much ‘ight was being placed on a lief that the industry should ist on Viti Levu an area own to have banana disease, her islands had a suitable mate and soil and were free disease. They could become 5 centres of a new industry, d modern controls could keep im free of disease, he said.

He accused the Department Agriculture of being biased its attitude towards banana >wing as an export industry, i claimed that New Zealand

presented a wide-open market for regular shipments of ba nanas.

Senator Ratu Meli Loki, another nominee of the Great Council, said that commercial banana growing offered pros pects for employment and land usage in areas which badly needed the stimulus of agricul tural development.

The recommendation will be passed on to the Department of Agriculture for further investi gation.

Esso explores

PNG minerals

Esso PNG, the Papua New Guinea operation of the US based multi-national Exxon Corporation, plans to spend up to $25 million on mineral explo ration in PNG over the next five years. Negotiating its leases for the work the company said it was impressed by the stability of the PNG government and by the better business climate in PNG compared to neighbour ing South-east Asia. These con siderations had helped form the company’s decision to negotiate exploration rights, a spokesman said.

Esso’s initial programme will be a series of field and aerial surveys at a cost of about $2 million, covering the major northern island of New Ireland.

The aerial work will consist of a magnetic deflection survey in which deflection of magnetic lines of force will be mapped to show potential mineral deposits.

The results of the mapping will then be followed by more de tailed surveys on the ground.

When the New Ireland sur veys are completed the exploration teams will switch their attention to parts of New Britain another major island in the north and to the central highlands of the PNG mainland.

Esso will take over the results of preliminary tests carried out

by a number of operators in 1970 and 1974. In the next two years alone Esso geologists ex pect to take about 8000 samples of rock and sand. Six geologists are already based on New Ireland, and test drilling rigs will begin work next year.

Australian trade

fair in Tahiti

In one of the biggest trade fairs mounted by Australia in the Pacific Islands, 25 Australian firms will display their products in Tahiti in October. The three day display in the Territorial Assembly building in Papeete from October 13 to 15 will be presented soon after resumption of services to Tahiti by the Australian airline, Qantas.

Three flights a week each way between Sydney and Los Angeles with calls at Tahiti will improve air freight connections with Tahiti as well as provide access to the territory for tour ists.

The Australian trade com missioner service reported that the aim of the display was to enlarge Australia’s market for manufactured products of a type suited to the needs of French Polynesia.

Products will include solar water heaters, windmill elec tricity generators, light farming equipment, building materials, hardware, light industrial goods, household ware, sports equipment, radio communi cations equipment and marine accessories. Most of the exhibi tors will be seeking agents in Tahiti, as 20 of them will be exploring the market for the first time.

Air Vanuatu is

up and away

The Pacific’s newest airline, Air Vanuatu, began operations in September with a weekly ser vice linking Australia with Vanuatu. The service flies out of Sydney on Saturday nights and returns to Sydney from Port-

Vila on Sunday mornings.

The airline is owned by the Vanuatu government (60%) and by Ansett Airlines of Australia [40%). Ansetts are the manag ing partners and use a DC9 jet from their Australian fleet to fly

I the Vanuatu service. When greater utilisation becomes possible with the expansion of services an aircraft in Air Vanuatu livery will be assigned to the operation. Immediate expansion is unlikely, and relies on upgrading the runway at Bauerfield, the airport serving Port-Vila.

When the runway work is complete a Boeing 727-200 will be used, and Melbourne as well is Sydney will become ter ninals at the Australian end.

Air Vanuatu is already nego iating with New Zealand for ights to fly into Auckland. It is dso entering into an arrange nent with the Fiji airline Air to market a proportion •f Air Pacific seats into Brisbane, the third major inter ational airport on the Austr ian east coast.

>teep rises in

fanuatu costs

anuatu has reported steep icreases in its cost of living idex for the 12 months to the id of June. Figures released icently by the Vanuatu Bureau Statistics show that high come consumers had a 28% crease in the cost of living and w income consumers a 22% crease. The major increases ere 42.7% for rent and rates, for food and 31% for inks and tobacco. The rising end was reported to be con luing, with transport and mmunications costs showing ajor increases.

The Vanuatu currency, the tu, has been going through a riod of wide fluctuation, ider an agreement made at dependence the vatu is tied to e French franc, and the franc s been undergoing a series of anges during and since the ench elections. The vatu has w appreciated in relation to ’ Australian dollar, which is main currency used in nuatu’s international trade.

May VIOO was equivalent to 75, but by August it had sn to $l.lO. The agreement ng the vatu to the franc )ires at the end of this year t the government has not yet icated a policy for future uations. lan Mclntyre in n-Vila.