DEEP-WATER HARBOUR

Press, Volume XCVIII, Issue 28963, 3 August 1959, Page 10

DEEP-WATER HARBOUR

Japanese “Not Interested” (From Our Own Reporter) GREYMOUTH, August 1. From information received in Greymouth, it is apparent that the Japanese are not interested in the formation of a deep-water harbour on the West Coast for shipping coal to their steelworks. Representatives of the steelworks stated in a letter dated July 17 that it would be difficult to expect them to invest money in the creation of a deep-water harbour or improvement of coal production because it is generally believed that the coal reserves are too small to justify the investment of such a lot of money, although the precise mineral deposits are unknown as no boring has been done. The steel company representatives said they had now received a full report on the recent coal negotiations. ‘‘To be frank, we are a little disappointed that the New Zealand Government flatly rejected our proposed f.o.b. price of £4 10s a ton,” said the letter. “We regret that there was no indication of a counter offer by the Government.” The representatives said they had decided to adopt a “wait-and-see” attitude, and were waiting for the time when negotiations would be resumed after a cooling-off period. ♦ Minimum Amount

In regard to the minimum amount of coal the Japanese mills would be prepared to purchase, the letter says: “We know quite well that the New Zealand Government will not be interested in a one-year contract, and let us inform you that the Japanese mills do not necessarily persist in making a one-year contract. “We think, however, that this problem should be discussed overall, from the points of the price, quality, reserves of coal, transportation conditions and others, and if these conditions are met satisfactorily then it is quite possible the mills will make a longterm contract, say for three or five years, as with the Australian coal business.”

The Mayor of Greymouth (Mr F. W. Baillie) has also received a private letter from one Japanese representative, in which the writer expressed regret that negotiations had ended in vain. However, he had not given up the matter and would wait for changes one way or the other, said the representative.