Trade Winds

□ Fiji And Australian Businessmen

Pledge Mutual Support.

A JOINT meeting of the Austraiia-Fiji and Fiji-Australia Business Councils has ex pressed confidence in Fiji’s future and has spoken of an “enormous amount of good will” between Fiji and Australia.

In a communique issued after the two day meeting at The Fijian Hotel at Cuvu, delegates said Fiji should continue as a destination for Australian tourists and “a forum for substantial business investment and development”.

The councils approved several propos als to be submitted to the Government.

Among them are: ■ A planned campaign in Australia and elsewhere to encourage Fiji nationals who have emigrated to return home to re verse a worrying “brain drain”. ■ Initiate training programs to fill the “skills gap” created by emigration. ■ Relaxation of the present Sunday trading and sporting bans in Fiji, which the councils said would encourage tourism. ■ Early conclusion of a “tax sparing”

agreement with the Australian Govern ment to fit in with investment incentive packages now being offered by the Fiji Government. ■ The Fiji Government to respond quickly and positively to media enquiries to avoid speculative reporting about the country, especially overseas. ■ Improved communications facilities in Fiji to encourage investors. ■ Updating of the Australian joint ven ture scheme about which many delegates said they knew nothing. ■ A lowering of personal income tax in Fiji, increasing personal initiatives. ■ Using Expo 88 in Brisbane to pro mote tourism and investment potential.

Fiji welcomed increased Australian di rect investment in Fiji, the Prime Minis ter, Ratu Sir Kamisese Mara, said in a message to the conference. Ratu Sir Kam isese’s keynote address, which was to be delivered at the opening, was read out by the acting Prime Minister, Mr Josefata Kamikamica. Bad weather delayed the Prime Minister’s return to Fiji after an of

ficial trip overseas.

In his message, Ratu Sir Kamisese said the interim administration was focusing at the moment on restoring stability and growth in Fiji’s economy and providing incentives for investment.

The immediate need was to provide people with the chance for regular em ployment and for increased income gen eration to maintain a reasonable standard of living.

“It is in this regard that the message I would like to convey to you today is that we welcome increased Australian direct investment in Fiji”, he said.

Ratu Sir Kamisese said more Aus tralian companies should take advantage of the special tax concession facilities in troduced recently.

The Fiji dollar devaluation and the tax free factory or tax free zone facilities would, it was hoped, make Fiji more attractive as a manufacturing base, he said.

The Prime Minister also urged a sys tematic examination of the South Pacific Regional Trade and Economic Co-opera

tion Agreement (SPARTECA) so that it was used fully. The interim administration was also fully committed to developing an ac ceptable constitutional framework that would return Fiji to full parliamentary de mocracy, he said.

He assured investors of the safety of their investments, protection of their pro prietary rights and freedom to operate in line with existing regulations. □ □ FIJI TO BE A DUTY-FREE HAVEN THE LOSS of duty-free access to the United States by Hong Kong, Singapore, South Korea and Taiwan has stimulated the Government of the Republic of Fiji to offer entrepreneurs from these Asian na tions known as the “four tigers” for their aggressive manufacturing and marketing strategies tax-free zones and factories.

A Fijian trade mission to Southeast Asia has set out to convince investors that the events of 1987 are history and that all Fi jians are working hard to get the country’s economy back on the rails.

“Enquiries are coming in about ma rine, fisheries and agricultural develop ment, exploitation of mineral resources and manufacture for export,” said Fi nance Minister Josefata Kamikamica.

“There are several large tourism projects pending and I have conferred with over seas business people looking at multi-mil lion dollar schemes here.”

Noteworthy in the incentives package is the Government’s encouragement of foreign investors to move into empty fac tories premises vacated by Indian owned businesses in forced sales. □ SECOND PRIZE WILL COST YOU ...

HOTEL AND resort proprietors in a number of South Pacific locations were at first flattered, then increasingly suspi cious of “awards” granted by a Spanish or ganisation calling itself EDITURIN of Madrid, publishers of International Commerce and Tourism. In the Cook Is lands, for example, Bill Tschan of the Ava rua firm JPI Ltd was informed that his business had won the “International Award Grand Prix for the Best Quality and Service”. Mr Tschan reported the good news to the Cook Islands News, only to learn next day that the owners of the Muri Beachcomber Motel, Arorangi Travel and Lagoon Lodges had all received the same letter.

AH “winners” were asked to advance SUS27OO to EDITURIN as acceptance of an invitation to a “gala dinner” in Mad rid. As well as being presented with the “Bronze and Marble Trophy” and a di ploma, the multiple winners were to re ceive promotional material, a videocassette recording of the gala dinner and publicity in a “special edition” of Ex ecutive and Traveller Guide a myste riously unknown publication.

No news has been received from Mad rid expressing regret that Pacific prize winners could not attend the dinner.

□ Us, Marianas In Betel Furore

ANGER has greeted a United States Cus toms Service refusal to admit betel nut from the Northern Marianas to the US mainland, citing “possible violation of FD & C regulations” whereby the US author ity has decided Marianas betel appears to contain “deleterious substances”.

The wrangle is taken from the realms of comedy by the United States’ contin ued importation of betel nut from the Philippines and Thailand, prompting ac cusations of favouritism and double standards. “We have been chewing betel nuts for as long as cowboys have chewed tobacco,” says Marianas Government of ficial John Delßosario Junior. “I might note that chewing tobacco isn’t a ‘delete rious substance’: it’s a cancer causing substance.

“Doesn’t betel from the Philippines and Thailand contain the same ‘deleterious substance’ that the US has assumed to be contained in betel nuts from the Northern Marianas?”

Betel nut is an important crop in many parts of the Pacific, and though tests have shown it does contain toxins and that it has a deleterious long-term effect on users, it is considered an essential part of islands life. The Government of the Northern Marianas is considering further protests and official action against the US Cus toms Service, which to date has not re sponded to Mr Delßosario’s accusations.

□ Cocoa Down, Coffee Up

A REPORT from Westpac’s Economic Department notes that despite buffer stock purchases, the world price of cocoa has continued to decline by as much as 25 per cent in the case of Papua New Guinea co coa. Falling prices are a result of record stock holdings, currently estimated at 38 per cent of seasonal production. With an other significant surplus forecast for this year, the report says, prices are expected to remain weak.

In the'same report, PNG’s coffee grow ers gained some relief from weak prices with an 18.5 per cent increase in produc

tion and price increases of at least 15 per cent. Although world production of mild coffees is expected to decrease by as much as 10 per cent this year, PNG coffee con tinues to bring good prices in the inter national marketplace, with the International Coffee Organisation’s Com posite Daily Price index reaching SUS 1.21 per pound by mid-February.

□ Dining Out In Niue

A NEW SNZ 150,000 tourist restaurant on Niue Island is scheduled to open in May.

It is one of the largest private investment projects ever undertaken on Niue, and will give a much-needed boost to a slowly de veloping visitor industry.

Called Sails of Niue, the restaurant is situated at Makapu Point overlooking Al oft Bay about four kilometres north of the main village of Aloft. Owned by Salome and Stafford Guest, it is built from New Zealand timber and was designed with a contemporary Polynesian look; heavy beams and a high roof supported by ex terior poles.

Stafford Guest says the restaurant will be exclusively for visitors to Niue, and will feature local foods adapted for European palates.

Although Niue’s population is still dropping as the outflow of residents to New Zealand continues, Guest sees Niue as a holiday base for many New Zealanders seeking a quiet and safe vacation close to home. Last year the island welcomed a re cord number of visitors, and is expecting another good season this year.

□ Us Paper From Png

THE Scott Paper Company has been in vited by the Papua New Guinea Govern ment to set up a pulp paper mill and a reforestation project in the country. The Prime Minister, Mr Wingti, says the de cision to invite the American firm was in line with the aim of the Government to promote local processing of PNG timber for both local and overseas markets.

Mr Wingti says the project would bring up to SA7OO million into the country.

provide 5000 jobs and paper products from the mill would be sold to markets in the Asian and Pacific regions.

□ Shellfish Venture To Continue

AUSTRALIA and Papua New Guinea are to continue an arrangement for the joint management of rock lobster fishing and prawning between the two countries.

Under the deal concerning rock lobs ters, fishing will be primarily for the bene fit of the traditional inhabitants of the Torres Strait Islands and the Gulf of Papua.

The Australia-PNG agreement bans all trawling for rock lobsters during their

breeding migration.

□ New Deal For Fijian Sugar

FIJI HAS begun renegotiating a sugar agreement with the New Zealand subsid iary of the Australian company, CSR. Un der the current three-year contract, which expired in March, the New Zealand Sugar Company has bought 57,000 tonnes of sugar a year at the free market price of about $A0.16 a kilogram and the New Zea land Government has been supplement ing the price by 20 per cent.

But a New Zealand Embassy spokes man in Suva says his Government at pres ent has not given any consideration to the compensation scheme and that it will not extend the sugar agreement, though it has resumed development aid suspended after last year’s military coups in Fiji.

□ Adb To Diversify Lending

THE ASIAN Development Bank says it will give more attention to providing loans that contribute to a greater diversity of agricultural production. The Bank’s pres ident, Mr Masao Fujioka, said most lend ing was already directed toward agriculture and related works but more attention should be given to loans for diversified agricultural projects.

Mr Jujioka was speaking to reporters in Papua New Guinea after visiting a small-holder cocoa development project in Central Province. The Asian Develop ment Bank is funding the project with a loan of nearly SAI3 million.

□ Farmers Support Trade Ties

AUSTRALIA’S National Farmers’ Fed eration has called for an extension of the

country’s Closer Economic Relations (CER) agreement with New Zealand.

In a submission to a Government re view of the agreement, the Farmers’ Fed eration says Australia’s first priority should be to seek “genuine reform of world trade on a multilateral basis”. However, an ex tension of the trade agreement with New Zealand would leave the two countries in a better position if the current round of multilateral trade negotiations is not successful.

The Federation says the Australia-New Zealand agreement could also form the base for a wider Pacific Rim agreement.

□ Nz Inflation Down, Jobless Up

THE GOVERNOR of New Zealand’s Re serve Bank, Mr Spencer Russell, has pre dicted that the country’s annual inflation rate will be five per cent this year.

In a speech to a gathering of bankers in Wellington, Mr Russell gave a strong en dorsement of the Lange Government’s policies to bring down inflation, saying the focus on inflation was based on a convic tion that a poor inflation record over the past 10 years had been the root cause of New Zealand’s economic problems.

Mr Russell added that the success so far in bringing down inflation laid the basis for sustained economic growth.

Meanwhile, New Zealand has re corded its highest unemployment figure since the Great Depression of the 19305.

According to figures from the Labour De partment, more than 101,000 people, or 7.6 per cent of the workforce, were registered as unemployed at the end of 1987. The NZ Reserve Bank has also predicted that the unemployment rate will rise during the next 12 months. □ MAORI TO HEAD NZ COAL BODY THE NEW Zealand Government has ap pointed a Maori to head a large state owned company for the first time.

He is Mr Bob Henare, 54, a business consultant who was formerly deputy gen eral manager of New Zealand Railways.

Mr Henare has been named chairman of New Zealand’s Coal Corporation (Coal corp), which mines and owns most of the country’s coal resources.

□ Kiribati, Korea In Fishing Deal

SOUTH KOREAN fishing boats are to operate in the 200-nautical-mile Exclu sive Economic Zone of Kiribati under an agreement signed in the country’s admin istrative centre, Bairiki.

The signatories to the agreement are the Kiribati Government and the Korean Deep Sea Fisheries Association. A state ment from the Ministry of Natural Re sources Development said the association would pay a fee of about $ A 420,000 for the right to fish in the waters of Kiribati for one year.

The statement did not specify what type of boats, or how many, were covered by the agreement. D