CEYLON TEA MARKET

Press, Volume LXXXIII, Issue 25139, 21 March 1947, Page 8

CEYLON TEA MARKET

REPORTS TO INDIVIDUAL FIRMS STOPPED “ The Press ” Special Service AUCKLAND, March 20. The practice of sending cabled reports on the Ceylon tea market to individual firms in* New Zealand has been stopped at the request of the New Zealand Government representative, Mr L. M. Wright, who recently arrived in Colombo. This advice has been received in Auckland from Ceylon tea brokers, \vho formerly kept the trade informed by cable of the prices obtained at auction and of the general condition of the market. So indication of the reason for the Govment representative’s request has been received, and it is regarded in some quarters as being an unnecessary and unjustified form of censorship of normal trade communications. The most likely inference to be drawn from the action, it is believed, is an endeavour to kedp the Dominion trade and public in ignorance of the prices at which tea for New Zealand is bought when supplies have to be obtained under some new arrangement with the expiry of the war-time bulk purchase agreement at the end of this month. Apart from this, it is stated, it is difficult to see any Reason for the requested ban on information or any other advantage which the Government or its representative in Colombo could hope to gain. During the war the Dominion’s tea purchases were technically under the control of the Government through the United Kingdom Ministry of Food. India and Ceylon have now insisted on a return to open market sales, and auctions were resumed at the beginning of the year. Since their resumption prices have risen considerably, and it is estimated that the price of tea in Ceylon now. suitable for the Dominion trade, would be about 7s per lb. However, in December about 3,000,0001 b of tea purchased under the bulk contract had still to arrive in New Zea-, land, so that no increase in the ptice or the subsidy can be expected before about May.

TUNGSTEN MINE ACQUIRED BY PLACER SUBSIDIARY .

Canadian Exploration, Ltd., the shares in which are held by American Placers, Inc., a wholly owned subsidiary of Placer Development, Ltd., Vancouver, has acSuired from the Canadian Government the merald tungsten mine in Southern British Columbia. Total purchase price is 950,000 dollars (about £N.Z.292,000), of which 50,006 dollars was paid on January 15. The balance is payable out of one half of net profits. It is expected that production will begin next month. American Placers, Inc., a wholly owned subsidiary of Placer Development, is arranging to drill two leases in Texas, in which American Placers holds an-interest of about 60 per. cent.