FACING A CRISIS.

Auckland Star, 2 January 1931, Page 9

FACING A CRISIS.

SOUTH PACIFIC ISLANDS.

BANANAS TO THE RESCUE

LOW PRICE FOR COPRA,

(From Our Own Correspondent.)

WELLINGTON, this day,

From the boom prices of £50 a ton for copra down. to present London quotations of £12. to £15 is a long drop, and the South Pacific islands, in which New.Zealand is .so much interested, are facing a serious. economic crisis. Life for the natives of Fiji, Tonga and Samoa is so imple a problem in repect to housing and food tliat there will never be starvation or unemployment, but the. lack of a sustained national income is. embarrassing to the various governments, some of which rely on an export tax from the copra, and are finding -it difficult to balance their budgets. Fiji and Tonga anticipate a call-on their modest reserves this year, while New Zealand will continue to be the ' benevolent relative of Samoa, doubtless to the tune of the usual £70,000 per annum.

'■'" £- low. price for copra discourages native production, and the work of preparing a ton is by no means light, while £15 in London means le3s than £10 on the beach. There is a general adaptation to the changed conditions, and the main result is likely to be seen in a tremendously increased ba'nana supply for New Zealand. Fiji, Samoa and Tonga all look to this market for help in times of economic stress.

There is a well-established business in bananas in Fiji, a'nd a growing trade in pineapples. What Fiji desires is to see the pineapple canning industry well established, and there is no doubt that success in the factory will lead to almost unlimited development, as the demand already visible for canned fruit is more than existing plants—operating and planned—could meet. It is stated that the Fiji fruit is superior in flavour to that of Singapore, and it will no doubt be welcomed in New.Zealand.

Tonga's New Venture. Depending almost entirely on its copra production, the little island kingdom of Tonga feels the depression more severely than its neighbours with varied production. The Government has for some time stimulated its people to plant bananas. : The handicap has been lack of direct shipment to the market. The best existing steamer service involves a long, trip towards the equator, for a call at Samoa, then the return journey via Suva, which makes conditions impossible for the Tottgan fruit. , However, the Government has a promise of direct steamer services to New Zealand when the monthy banana production reaches 6000 cases, and this is likely to be achieved at an early date. Thus another competitor for New Zealand business is soon entering the lists against Rarotonga, Samoa and Fiji. Samoa's Varied Resources. Of all the South Pacific countries, Western Samoa appears best equipped to meet the changed economic conditions. The adaptation process is rapidly proceeding. On the vast Reparations estates, rubber —quite unprofitable and likely to be so for years—is being drastically cut out, and where the land is suitable for cocoa, this valuable tree is being planted. The area available for successful cocoa growing is somewhat limited, as elevated land is needed. Most of the best cocoa lands are included in the Reparations Estates, where 1.200 acres are being cultivated, and more is being planted under the direction of an experienced European manager, formerly engaged on Malayan plantations. Cocoa from these brings a price on the London market close to that of the highest quality product in the world, that of Java. It has to be prepared with skill, for the beans, following extraction from the pods, ,must be fermented prior to mechanical washing and grading in three qualities. New Zealand manufacturersof cocoa and confectionery have found out the value of the Samoan product, and they use large quantities. Shipments to New York fetched the top prices at recent sales. When production is fully organised the estates will market 300 tons of cocoa bestns annually, and at the current low quotation of £55 to £60 per ton, there is a profit in the business, though a higher price is being paid for labour in Samoa than in other producing countries.

• Copra production continues despite the low price, and as a good side-line, cattle.are run in the plantations, keeping clown the weeds. The carrying

capacity of cocoanut plantations for cattle is actually in excess of that of Taranaki land, though its fattening capacity is lower. Good stock is being constantly imported to improve the herds.

A minimum price. of 5/ par case is guaranteed the Samoans for bananas, ;md the Administration is extending its scope in this respect. The muchcriticised export tax of 2/6 per case on bananas is part of an effort to encourage producers in the more remote sections of the islands to ship regularly as they will get their minimum of 5/ per case regardless of the cost of transport.