PHOSPHATES.

Taranaki Daily News, 21 June 1920, Page 5

PHOSPHATES.

THE NAURU SUPPLY. THE QUESTIONS AT ISSUE. By Telegraph.—Press Assn.—Copyright. London, June 18. In the House of Commons the Nauru Bill was read a second time by 217 to 77, the minority comprising Laborites, Independent Liberals, and some Unionists. An attempt to commit the Bill to a committee of the whole House, so delaying its progress, was defeated by 218 votes to 57. CoL Wilson expressed the opinion that there would be no difficulty in maintaining an output of 400,000 to 500,000 tons yearly at a cost enabling Australia and New Zealand to obtain phosphate at about £1 per ton cheaper than at present, while providing for the repayment of the capital and interest. Britain would also benefit, though to a less extent owing to distance. Mr. Watt, before resigning the Treasureship of the Commonwealth, had carefully considered the matter and was satisfied that the purchase price of 3J millions was reasonable. Col. Wilson said he was fully convinced there was never a sounded investment for Britain. The Empire was securing for ever all important raw materials for the rejuvenation of our land, the demand for Which must inevitably increase in the future. Mr. Ormsby Gore moved the rejection of the Bill on the ground that it conflicted directly with the articles of the Covenant of the League of Nations in regard to the open door principle in ,the trusteeship of the mandatory Powers. Mr. Gore said the Bill proposed to establish an irresponsible administration in Nauru and a gigantic State monopoly comptting with the other phosphate countries of the world. As mandatories of the League of Nations was this going to apply also to Mesopotamian oil? They must know what rights the mandatories had over the natural resources of the mandated, territory. Mr. Oswald Mosley seconded the motion for the rejection of the Bill. Sir John Nees supported the Bill on the ground that it was good business. Lord Robert Cecil said the House was asked to give a decision which might have very far-reaching effects. The policy of mandates was most important. The Bill was absolutely inconsistent with Article 22 of the League of Nations Covenant and would give a handle to our enemies throughout the world. It would set a fatal example. It would not be possible for us susseqtiently to insist upon the open door. He urged that the Bill be not proceeded with till the League of Nations had laid down the rights of mandatories. Mr. Asquith said that a most important question of principle was involved. Where a mandate was given the league should completely control all its provisions from first to last. There was no idea that under Article 22 a mandatory should use its power in order to secure a monopoly or the riches of the mandated country. It was impossible to conceive of a worse example. He earnestly trusted the Government would reconsider the position. Mr. Bonar Law pointed out that if the Bill was not passed the phosphate company would have all the rights which the Government was . claiming, and nothing would be lost by transferring the rights and powers of the company to the British Empire. He emphasised the fact that other parts of the Empire had been consulted before the agreement was reached. The British Empire delegation at Paris considered the subject. It was difficult to please everybody, but the agreement reached was the best under the circumstances. The sanction of Parliament to the agreement did not preclude the League of Nations from refusing to confirm it. The Government asked the House of Commons at present to ratify the agreement. The Government proposed to make a fair use of It. He nad no doubt the League of Nations would agree to it. Sir Donald Maclean opposed the Bill on the ground that ij; violated our obligations under the League of Nations. Mr. Bonar Law, interrupting, pointed out that there were two distinct questions: (1) The administration of the territory, which the League of Nations was perfectly entitled to see was done properly; (2) the purchase of the trading company, which was not a subject that would come under the League of Nations at all. VALUE OF THE DEPOSITS. LARGEST RESERVE IN THE WORLD. Received June 20, 5.5 p.m. London, June 18. In moving the second reading of the Bill confirming the agreement between the Imperial and the Australian and the New Zealand Governments regarding Nauru Island, Colonel Leslie Wilson emphasized the richness of the phosphate deposits on the island. He pointed out that the natives keenly desired to remain under British rule. Colonel Wilson also emphasized the urgency of the need for more phosphate, in view of the world shortage of wheat in 1919 and the exhaustion of soils. He quoted an estimate in a report to the New Zealand Parliament that there were at least 80,000,000 to 100.000,000 tons of phosphate on Nauru, which is believed to be the largest reserve of high-grtide phosphate rock in the world, while the deposit at Ocean Island is believed to be deeper—Aus.-N.Z. Cable Assn. , THE DEBATE CONTINUED. Received June 20, 5.5 p.m. London, June 18. In the House of Commons, the question of the Nauru agreement was again raised. Commander Kemvorthy maintained that owing to the distance between Nauru and the United Kingdom the arrangement would .not be a good commercial proposition for this country. Colonel Leslie Wilson, replying, pointed out that before the war Germany took all the phosphate she could get at Nauru to Stettin, an even greater distance than to England, and the company paid between 25 and 50 per cent, in dividends. General Newton Moore congratulated the Government on the arrangement, which would be of tKe greatest value to agriculture, and would mean cheap wheat in many countries. •Several members repeated the opposition argument regarding the League of Nations aspect of the question.—Aus.N.Z Cable Assn.