PACIFIC PHOSPHATES

New Zealand Times, Volume XLVI, Issue 10687, 6 September 1920, Page 4

PACIFIC PHOSPHATES

DISPOSAL OF RIGHTS SHAREHOLDERS WELL SATISFIED WITH SALE. BONUS OF £150,000 TO DIEEC- . TORS AND STAFF. The shareholders of the Pacific Phos< phhto Company have recently ratified the agreement arrived at between the directors of the company and the Imperial, Australian, and New Zealand Governments to dispose of their rights 'in the Nauru and Ocean. Islands. Lord Balfour, _ who presided, recapitulated the details of the arrangement, stating that the company held concessions that conferred exclusive rights until the year 2000 to exploit the phosphate deposits in Nauru and Ocean Island—formerly possessed by Germany. Soon after the outbreak of. war it was, at the request of the British Government, occupied- by Australian , forces, ■ arid placed , under the control of a British administrator. Some time before, and _ during the Peace Conference in Paris a, controversy arose over the possession of the phosphate deposits in,Nauru.

MANDATE AND' COMPANY’S BIGHTS. - •

The Nauru mandate was given to the British Empire in May, 1919. The mandate did not and .could not invalidate the company’s rights*: and therefore communications' were at once opened, which had for their object the buying out.-of the cornpany’a interests. In July, 1919, an agreement was made by the Governments •of - the United Kingdom, Australia, and New Zealand, under which the title to the phosphate deposits in Nauru, and to all lands, buildings, plant and equipment on the island used in connection with the working of; the island should he vested in Commissioners, and any right, title, or interest which the company might have in the phosphate deposits, lands, etc., should he converted into a claim for compensation at a . fair valuation. NO ALTERNATIVE.

The company had practically no alt tentative but .to dispose of its rights and properties in -Nauru. ■ Ocean Island is situated close - to' Nauru. The principal object of " the .company in acquiring the Nauru_ concession was to preclude competition between the respective products pf the two islands. By parting with Nauru they would lose their base market in Australia for Ocean Island phosphate. and they would be handicapped in other ways in working • Ocean Island. After careful deliberation it was decided .that; it would be in the interests 'of ‘ the! company* ,as well as to the advantage of the “Governments, that the rights and interests' in both islands should he disposed of at the same time. The negotiations were therefore conducted on _ the basis of the Governments acquiring Ocean Island as well as Nauru. As it_ seemed to be a case of compulsory dispossession regarding Nauru, the company bad been placed at a disadvantage at the outset of the negotiations, and it was no .epsy matter to "arrive at a jtith the three Governments. Ultimately the three Governments involved undertook to pay to the company £3,500,000 for its rights and properties - in the two islands : while with the exception of a few senior members, the . Governments were to take over. the staff and employees of the company. Lord Balfour referred to the great value of the properties, and said the possession of such enormous phosphate deposits was' of the greatest importance to the Empirei-i- „ It was decided to vote. £ls0 J - 000 out of the proceeds of the sale for distribution among the directors, managing directors, and other members of the staff, the opinion being generally expressed that the price paid by th« Governments Was a very fair and sat isfactory one.