The Daily News MONDAY, JULY 25, 1921. OIL AND STEEL WITHIN THE EMPIRE.

Taranaki Daily News, 25 July 1921, Page 4

The Daily News MONDAY, JULY 25, 1921. OIL AND STEEL WITHIN THE EMPIRE.

The question of Naval Defence, in conjunction with the Anglo-Jap-anese Treaty, is one of the chief subjects that is occupying the sefious eonsidei'ation of the Pi’emiers’ Conference, and, according to the Australian Press Association, has divided the Conference into three camps, “never hostile, but mutually helpful, even when apparently antagonistic.” Inasmuch as the security of the Empire entirely rests upon the adequacy and efficiency of the Imperial Navy, it is not surprising that the Dominions’ Premiers hold strong views on this twin subject. There is, however, a matter of almost equal importance to the Empire that might well receive the attention it deserves, and that is the systematic development of the hematite, iron ore, and the oil fuel deposits in the Empire—the ftfi’mer for converting into steel for building and repairing warships, and the latter for generating the motive power on which naval tactics are dependent. Brief reference was made in a recent issue of the Daily News to the raising of an additional capital of fifteen millions by the Anglo-Persian Oil

Co. for the purpose of exploiting Western Australia for fuel oil and the erection of a refinery in Victoria. Up to the. present, despite all the favorable indications, no practical success has been met with in the search for mineral oil in Western Australia, but certainly there has been no systematic exploration of the probable localities in which oil might be expected to be. won. Apparently Newfoundland offers far more tempting prospects as regards ore and oil, and it seems likely that country will furnish in the future much of the iron ore to be smelted into steel for warships and their armaments, while it. has been demonstrated to the satisfaction of geologists and oil experts that Newfoundland possesses petroliferous areas and oil-bearing shales of much promise, the extent of which has yet to be determined by. organised and well equipped operations. Bell Island, on the east coast of Newfoundland, contains one of the largest hematite iron ore deposits in the world, the annual production, before the war, having reached twelve hundred million {ons—some of which went to Germany, and was probably used in the war. It is hoped now' that some of this material will be acquired by British ironmasters and steel founders, and so help to relieve the Mother Country from dependence on foreign countries for this important product in future. Although oil has been obtained and used at St. John’s and on the West Coast, all the prospecting and development work, so far, has been done on a relatively small scale. The Government of that Dominion has now effected an arrangement with the Anglo-Persian Oil Co., whereby that corporation will undertake, during the next two years, a thorough investigation of these oil-bearing regions, and their operation thereafter on a mutually satisfactory basis, if the discoveries .made should warrant it. There can be. no doubt that, from the point of view of naval strategy,the importance of oil supplies being available in this section of the North Atlantic cannot be exaggerated, so that it is to be hoped ample supplies may be secured. In the face of these important efforts, it is not unreasonable to ask: What, action is NewZealand contemplating in the game direction? Both iron and oil are to be found in the Dominion, and of high quality. Surely New Zealand cannot be allowed to lag behind Newfoundland in a development of such vital import ance. To merely give verbal expression to sentiments of patriotic Imperialism is of no service, while to take practical steps to strengthen the Empire and its defence by developing the mineral resources, of the country would just be the difference between cheap sentiment and practical help. To formulate and carry out a scheme for a comprehensive testing for the discovery of fuel oil, also for the manufacture of iron and steel, would give absolute proof of the Dominion’s interest in the advancement and security’of the Empire, while much benefit would accrue to the’country should success result from the effort, as there are good reasons for expecting would be the ease. The action of Newfoundland should certainly act as a stimulus to New Zealand.