China's interest in Pacific grows

Pacific grows

The growing strategic im portance of the Pacific island nations to the major countries of Asia has been highlighted by the extended, and obviously successful, visits just made by Fiji’s prime minister, Ratu Sir Kamisese Mara, to China, Japan and the Philippines.

Nor are all of the connections simply political. The highlight of

Ratu Mara’s China trip was the signing of a long-term agree ment under which China will buy notable consignments of Fiji sugar at better than world prices.

The shipments will all go to Zhejiang province, which has been appointed a sort of centre for Fiji commercial relations.

The province will open two way trade with Fiji in a number

of items and will also be re sponsible for opening economic and technical cooperation, in cluding joint ventures in Fiji.

Under a five year agreement China will buy a minimum of 40,000 tonnes of Fiji sugar, with an option on 10,000 ton nes more. The premium over world prices is guaranteed for three years and will then be reviewed. The price paid will be

net of freight costs, which China will pick up, presumably by use of its own freight ships. It is the first time Fiji has won that concession in a sugar sale.

China’s designation of Zhe jiang province to spearhead Peking’s new policy of econo mic cooperation with Fiji gives the island country a consider able advantage. Business will be done directly with the pro vincial trading corporation rather than through the national body in Beijing, which is ex pected to make trading much more direct, rapid and satisfac tory.

Ratu Mara also had talks about the grant of $BOO,OOO which the Chinese secretary general, Mr Hu Yaobang, announced during his visit to Fiji in April. China has offered an interest-free loan of 15 mil lion yuan (about F 55.4 million) or a further development grant of 3 million yuan (F$ 1.2 mil lion).

From China Ratu Mara went to Taiwan where he met the premier and the minister for economic affairs, and the chair man of the Taiwan agricultural council. Ratu Mara has always maintained correct and even cordial relations with the gov ernments of both countries, something other statesman have generally been unable to manage, and both nations maintain representative offices in Suva. China has a large and very active embassy and Taiwan has a similarly active, although more low-key, trade office.

While in Taiwan Ratu Mara, who is keen to see economic progress among his Fijian villa gers, visited a number of agricultural projects, including the centre for tropical vegetable culture. He sought Taipei’s help in setting up sugar-related in dustries in Fiji which is deeply

worried by the decline in overall world consumption of their mainstay crop, with consequent development of vicious com petition and giveaway prices.

The chief executive of the Fiji Sugar Corporation, Mr Rasheed Ali, who was a mem ber of the Fiji delegation, said the Taiwan Sugar Centre had agreed to send three scientists to help set up new industries.

Among those on the agenda for close study are production of malt, golden syrup and various forms of yeast.

The Taiwanese also prom ised the Fiji Sugar Corporation an irrigation and water con servation expert to advise on management of sugar crops during the dry months which frequently hit the western side of Viti Levu where a large part of the sugar crop is grown.

Mr Ali said Fiji had also sought help from the Taiwanese research centre for a scientist to evaluate the opti mum fertiliser and other nut rients which sugar cane needed. Talks will continue with Taiwanese officials and scientists on ways of making the Fiji sugar industry more efficient and cost-effective to offset the likely continuation of low prices.

In Japan Ratu Mara met with prime minister Yasuhiro Naka sone who confirmed that the aid package he had announced during his visit to Fiji earlier in the year was being im plemented. This includes a grant of Fso.7 million for deve lopment of a fisheries port at Lautoka, Fiji’s second city.

The prime minister met a group of Japanese business men considering a multi-million dollar hotel development at Pacific Harbor, on the southern coast of Viti Levu, about 30 km from Suva. He said their arrival would be very welcome. The project would provide needed injection of capital and employ ment sources into Fiji, he said.

He and his wife, Lady Lala Mara, were guests of honor at a dinner given by the Japanese minister for science and technology, Mr Michiyaka Isur ugi.

He also met with directors of Nissho Iwai, the company which buys sugar from Fiji. Last year they bought 28,000 ton

nes, a figure they have already undertaken to repeat this year, with an option for an additional 4000 tonnes. He also held talks with officials of Japan Airlines about future cooperation with Air Pacific, now under manage ment by Qantas.

At the Fiji Embassy in Tokyo he received a cheque for F 562,000 given by a wide range of Japanese people for cyclone relief.

In the Philippines Ratu Mara met President Marcos and talked at some length about furthering relationships be tween Fiji and the ASEAN countries. Malaysia is already a major influence in Fiji and it appears that others in the South-east Asian grouping are interested in extending their relations eastward into the in creasingly strategically impor tant islands region.

Chinese Communist Party general secretary, Hu Yaobang is greeted by Western Samoa’s Prime Minister Tofilau Eti.