Peking signs major

deal with Fiji

Chinese involvement in the Pacific Islands moved several steps forward late in May with the annouce ment of a considerable bag of agreements be tween Fiji’s prime minis ter, Ratu Sir Kamisese Mara, and Premier Zhao Ziyang.

China has undertaken to buy a minimum of 40,000 tonnes of sugar from Fiji each year for five years for an undisc losed price said to in volve a useful premium over the world figure. In addition to the guaran teed sale of 40,000 ton nes per annum, Fiji will have a prime option to sell a further 10,000 ton nes per annum over the same period, should pro duction, and the market allow. China will pay all freight costs on these ton nages.

A sale of this order is vital to the future of the Fiji sugar industry, cur rently in deep gloom

over plummeting world prices and international over-supply. Although tourism has lately been a bigger provider of foreign exchange, sugar remains a major and vital sector of its economy because of the very large part of its population engaged in the industry and with lit tle else available for them to do.

Most of the crop com es from relatively small holdings, the result of an Indian approach to land division among family members, and very little mechanisation has been introduced because of the limited capital avail able to such growers and the type of terrain over which they plant their crops.

In addition to the im portant agreement on sugar sales China has also offered Fiji the choice of a direct grant of about Fsl.2 million, or an interest free loan of

about F 56.4 million for development projects.

This is in addition to the US$BOO,OOO equivalent cash grant given by Chinese Communist Party general secretary, Hu Yaobang, during his recent visit to Fiji.

Premier Zhao told Ratu Mara that China prepared to give fur ther support to Fiji’s eco nomic and social deve lopment programs and to explore possibilities for joint ventures with Fiji.

A team of Chinese offi cials will shortly visit Fiji to sign the sugar protocol and to discuss the further ventures. Staff Writer.

Hu Yaobang