JO : ATCOM MAJURO, TARAWA; Z6N (NOT LISTED) PUIN fNFO: ATCOM KWAJALE IN; COMMARI ANAS AREA
3. Hitherto the scheme has been conoeiuied cdmost entirely with the supply to the Coltxoy of merchsmdlfleii "gaS as yet
of eepra have been Inslgnlfleaait. The war^ tlmoug^
of shipping and by diversion of maapewer^ brou^t the copra Imftmetry to a standstill. The (Jlltoert Islands, where the bulk
«f espra Is produesd. were occupied by the Japansse and the
poUtieal (Tarawa) and emmnerleal (Butarltarl) headq;mirtsrs
destroyed. No eos^nsatlon has yet beam paift op premleat, The
DM. to ro.t«ft the bulk etpoi-t of u, b«K«l«g InereMlngl, urgent, net ml, b«ai»e of tta vai«Me if mmn oontrlbutlon
^eh it «»uM Mte to,a«U rogeteble oU (-It 1.
iOgb gr... .» dfiM but ei« it i, the
OoJeur'. «w, »« -hioh the ^ colon, 1.
Swll,
i
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h* So far a0 caa be foreeeen at preeent a total capital of the order of £Stg«1CX)9000 is recioired to establieh the
Sch^ne as an organiBatlon capable of stimCLating mA. hwnrtling the maxlBm export of copra, ProTisional estljeetee eduyCiBg hcv thle figore is reached are attached. It vUl be obserred tiiat nearly
of the total sum is re^piired as trading cepitaly notably
of
to coyer the holdlng/iip to 3y000 tons of coprsy which at £A,i2
p«r t(m (and the price nay well go higher) wonld —nwnt to
£A,36y000, Again nearly 23/» of the total is reqiairod the purchase of two inter-^island yessels without ihich the eepra cannot be concentrated at the ocean yessel ports. Of the 25^
remaining is required to purchase the barges afnd launches without which tiie copra cannot be loaded at the Ig^ocn eeamuntrato
ion ports into the ocean wessels. (It aayr prove neoosearyy in
order to advance loading rates and nlnielse delay to omn
vesselsy to increase the estiante for loading craft,) Only the
remaining 13/^ of the ^j^covisioiULl total ie reqiilred for bulldingeand equipment ashore.
3» Hie StatioMt of Aoeewt forwerdodoader oy third
personal ITote Xo,F.62/10/22 of the 27th ifsr^ retwerood as at 30th Septembery 1943* a nstt profit of £A,31»73U odd (a«estf,23y3^
odd) on the original advanoe of £A.28y230 («£Stg,22y600) owthecw
ised in your telegroi lio, 210 of the 8th of Oetoher
Deterioration of ato(Am end the wnewitebility of high priced D.8,etookpile gopds (which ere now being offered for
through the IMw SeeleBd RehahUltatlto Awthoritlea) nny treneh heavily opon the profit quoted. The new hanoger paid a
preliminary survey visit te the Colony in BOIwiiary/llMPeh
iust left here again to aaawne charge* It willthat hitherto the Trade sahene hae been rmi
eandl tloasB bar an wiAerHitaffed (leiwi naeal wMtilii bed te
this wnaeetetoned ted teerows bwainem an tee mmmg ether
extra vartine dntiea* It wHi not be ewrprlaing if the Xteager, (-fertwaately it hte been possible te proevre e nte ef hli^
reputation earned over 30 years ef ialend trading •) has a
fwitedahla taah te parften befere a trae m
uAiUSI
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balancNi betveezi assets and llebilltes can t>e stpuck* Meanwhile
the mti§o connee is to leawe the past profit out of ja^esent
eeler^tlozsB*
6* It is coinrealent at this point to refer to the possible
long term future of the Trade Scheae* I have i t very much in mind that the unique physical conditions of this Colony ot manyi t s
islands scattered over a vast area of ocean,/not too happy past oonmercial histco^y and i t a present peculiar circumstances of being bereft of any coiaaercial servioe^ all point to the need tov establij^iing whether the existing Trade Schmne cannot be moulded into such form as will provite the Islanders with an instruBMmt through which they can better their lot throu^ their own thrift and enterprise. The situationy and the lines of
developoent favoured bsr officers with experience of the Colony^
have been outlined Taj Mr.Miuade in his Report on the PoBt<-V7ar
iteergaaisation of the Oolaay* n copy of the relevant section (7)
M this report is attashed* Z en advised that the Trade Schsms
Isui se wms the approval of the people that its abnndanmeat without
their weuld be regarded as a betrayal of Iheir interests ; and moreover that^ if and idien their representatives are elected to its governing body» it may be expected that mere approval will
dsvelsp into a kaem and intelligent interest in the BohaatMi*8
woilKingy in tagm ndglit lead to a genuins appreclaticn of itb pebsstislii'y peoples* good* and so finally to a proper ppiJIe in tiMiir own ergaaisatlon and a determination to beep it
^dng in bed times as well as good. It is not suggested that the Xelsnders «amid« er aeeeasarily ahouldy remain loyal to the
Sebeiss if and whui eeoBiisreial conpetitors return with s policy leading te the taotioa of b^ing tsid selling at a loss. But if amd tbsm tbet oeews it shoiidd be easier than it is nob to
diflie i^etlior te absmdsn tiM sehems or to prcHSote it by svoiy
7. «i. «u>t tiM flMMtiis « tiM stfMM, erm
it ^
ia»iraee
Welfare Fund* I regard the restoratioa of the Coloujr'a treda as aeeond In ioportauoe <mly to the restoration of Its
and ComnunioatloQ 8ez*irioen» end I should be glad to pedomaroB an application against the Fond idileh vcROd not saddle any
z^eurvent es^endlttxre cm to a Coltmy whldl has no early proffpeet
of balancing its budget* Butf in addition to Transport and
CoTBiamicationSy the claims of lidnoationji hand settlement^ Hsalth*
Agriculture and Surarasr are prefming* it t^pears eery lailikely
that so leo^ a auni as £Stg* 100^^000 oan be aUoted to Trede out of the total of £8tg»300^000 idiich aeeoa likely to be ron^^the Coltx^'a share of the £3tg«800|^000 allocated from the Colonial Development and V^lfare l^tnd to the High Oomndisaimi
Territories* I t la therefore naeesaary to coztaider vhat othar meeaiB may be available to the Coloay for flnnnelng the nnhena, Althov0i I Should anch prefer that i t be regerded am m
Developioeiit proleet* i t can reeeeoably be argued that in its present stags i t is a naceaaity directly eensed by the e«r« ant
that its fl&azu3ing during thia trenaltion period is ss fMb s
rehebilitatlon oharga asslnat H*it*G* as is the cost ef ths nsvGovenvaent Haaaqjoarters to be built both in the British Soloinoa
lalands Proteobarate end the Qllbert sad. EXUxm laXasds Oolosy*
Bofcy aaauaing thst thia is soosptedy I should hs gprsAsfel ts
uhsthsr, in ths ammt that ths Hehanw psrsiida In sens ihspd wr"Mm after this treaeition period# ueahd nmstilBi
converting the odvanoe into a loant or to the guarsi^eelag ef a
loan for the purpoee* It has been euggeated that a eonproniaseolution isiiBlit be found in the provlaian ef jnrt ef the en?iitsl
fan the Colonial Develi^nwnt mbl welfare ftnde ssd nt thsrenaiadnr by H*lf*s tressuey ssslnst na indsrtsiiiwt thsS a sertisl
perssaisca ef any prefits bs sst ssids fnr asMrtdssdisn sfths trenwyy ^Mre of ths lesn* I shesild bs .Miisdisftd slse t m
yow advise en this suggsstion*
ift fb' ssfsrt to ths isniiists Mnru# I hnss sli'taiir rsfbmd to lin anassaity of restarting ^ Oolaay*s
iadnitry at mm* I aii^t add Ihnt asiswiliiy tc
forttwr •»«« »«i»* «»* CkOMV *»UflwMar MtM
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Blster IslaodjB no less affected "iyj the war* The pz^reQUisltles to starting vp the Indnstpy qulckljr and rtmnlng It for the next
s i x months a r e : -
(a) ftmds to cover the purchase and holding of
up to 2,000^tatis of copra, £ft.,2h,000«
(h) purchase of 1 inter-island vessel, £A.i2,000«
(e) p\xpchafle of loading craft, £/v. 13,000, (d) purchase of Shores said other ehore
equipiBent excluding resideiuMis, 1^,000
m approxlniately £F>tg.52.000^
(x) There will be difficulty in finding suitable vessels*
Althou^ two are required Imiaediately i t is only propofiM^ to try azid purchase one at this stage,
liegotiations are in hand for the charter of the other*
This wHl allow tliaa to search for a second suitable vessel, sad also to exeodne further the possibility of assisting individual Islands or Ssiwad Co-operative Sesdetiss to acquire their mm schooners for the
•sitdaiis of eopra and aerohondisa to and fToa the eonoentraition ports*
I do not know ihether you would think i t appropriate to Invite the