ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(76)448
Vol.1976/0136

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(76)448Final
Brussels,8thSeptember1976
RECOMMENDATION FORADECISIONOFTIECOUNCILANDOFTHE
REPRESENTATIVES OFTHEGOVERNMENTS OFTHEMEMBERSTATES
MEETINGINTHECOUNCILAUTHORIZING THECOMMISSION'TO
OPENNEGOTIATIONS KITHPAFUANEWGUINEA
DRAFT
INTERNALAGREEMENTAMENDINGTHEINTERNALAGREEMENTON
THEFINANCINGANDADMINISTRATION OFCOMMUNITYAIDSIGNED
ON11JULY1975
(submittedtotheCounciltheCommission)

ACCESSION TrTHEACP-^SCCONVENTION OFLOME BYPAPUA HEWGUINEA
(Comaisr -onCommunications totheCouncil concerning theopening of
negoti .tions )
j, Papua NewCuinea made aformal request foraccession totheLom6
CcAventioa ,under Article 90oftheConvention onthe3rdDecember 1975 .
Therequest wasformally approved bytheAGP/EECCouncil ofMinisters at
itsfirst meeting inBrussels onthe14th and15th July 1916 .
2» During exploratory talks with representatives ofPapua NewGuinea
it "became clear that thecountry wasready toaccept inprinciple allthe
obligations involved inaccession totheConvention .
Theonly matter which eight beraisod byPapua NewGuinea inthe
•course ofnegotiations proper concerns trade ,given thedefacto existence
>
ofpreferential arrangements with thefomer motropolia .Since ,howevor ,
thecountry hasstated that itintends i.iany c;.o:toa^oli:;h Vr.->no prefe­
rential arrangements eventually ,their existence does not r,ec;n toboapro-
bloa which cannot beresolved satisfactorily during thenegotiations .
Since there arenoother special problomo 7itwould appear that the
negotiations could take place inarelatively short tine ,loading rapidly to
thesigning bytheCommunity ofanaccession agrocmont with this country .
TheCommunity would thus beresponding tothedesire which hasbeen
expressed foraccession totheConvention attheearliest possible date .
3. Thenegotiations will beconducted inclose contact with theACP
States ,which will bekept informed byexchanges ofviews asnecessary .The
Commission considers that ,although itisnotalegal requirement ofthe
Convention ,when thenegotiations have been completed theaccession agreement
should then bethesubject ofconsultation with theACPGroup .
Theaccession agreements will subsequently besigned andthenecessary ratifi
cation procedures begun .
•/

fi f»
4. With aview toenabling thenegotiations with this country tobe
opened assoon aspossible ,theCommission recommends that thedecision ofthe
Council andtheRepresentatives oftheMember States meeting intheCouncil
beadopted ,authorizing theCommission toopen negotiations with Papua New
Guinea ,andtherelevant directives issued .
While thenegotiations with theapplicant State isbeing conducted ,
\
theMember States should agree ontheprovisions amending theInternal
Financial Agreement inorder toenable thenecessary procedures for
ratifying those provisions tobeundertaken atthesame time asthose for
theaccession agreement (Annex ).
5. TheCommission considers that assoon astheaccession agreements
have been signed ,pending oonpletion oftheratification procedures in
th«Member States ,theCommunity andtheapplicant countries ,should agree ,
forthepurpose oftheir trade ,toapply autonomously thetrade arrangements
provided forbytheagreements ,astheCommunity andthe46ACPStates did
fron 1July 1975 .
Lastly ,theCommission considers that ,inthesame spirit ,transi -
tioaal aitiurts similar tothose adopted between theCommunity andtheACP
Statoa from 1July 1975 a-0regards financial andtechnical cooperation in
ytuHiMlar should also beapplied .

RECOMMENDATION FORADECISION 0?THECOUNCIL ANDOPTHE
REPRESENTATIVES OPTHEGOVERNMENTS OFTHEMEMBER STATES
MEETING INTHECOUNCIL AUTHORIZING THECOMMISSION TO
OPEN NEGOTIATIONS WITH PAPUA NEWGUINEA
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ANDTHEREPRESENTATIVES OFTHE
GOVERNMENTS OFTHEMEMBER STATES MEETING INTHECOUNCIL ,
Having regard totheTreaty establishing theEuropean Economic Community
andinparticular Artiole 238thereof , *
'Having regard totherecommendation fromtheCommission ,
Whereas PapuaHewCuinea hasapplied toaooede totheACP-EEC Convention si
inLome on28February 1975 »
Whereas thefirstparagraph ofArtiole 90oftheConvention stipulates
that ,subject totheapproval oftheACP-ETEC Council ofMinisters an
agreement between theCommunity andaStatewhoseeconomic structu^
andproduction arecomparable withthose oftheACPStatesnay provide for
theacoession ofthatState totheConvention ,
HAVE DECIDED ASFOLLOWS :
Sole Article
TheCohesion ishereV authorised toopennegotiations fortheoonolusion
ofanagreement between theEuropean Economic Community ai.d?iiPuaNovGuinea
ontheacoession ofthatcountry totheACP-EEC Convention ofLoui .
TheCommission shall conduct these negotiations inconsultation „<thth»
Representatives oftheMember States andinaccordant withthedirectivesannexed hereto .- ^ives

DIRECTIVES RELATING TOTHENEGOTIATIONS WITH PAPUA NEWGUINEA
FORTHECONCLUSION OPANAGREEMENT ONTIEACCESSION OFTHAT
COUNTRY 10THEACP-CEE CONVENTION OPLOME
1, The sigreemeirt tobeconcluded shall provide fortheaccession
ofPapua NewGuinea totheACP-EEC Convention ofLome .
2. Theagreement may stipulate thedate onwhich certain ofits
obligr /t:'one ,inparticular concerning trade ,would 13000186 applicable
toPapua NewGuinea . 1
.'3. (ECSC products )

ΒΚΛΡΤ
Internal Agreement amending theInternal Agreement ontheiinancing
andadministration ofCommunity aidsigned on11July 1975
THEREPRESENTATIVES OPTHEGOVERNMENTS OPTHEMEMBER STATES OPTHEEURO­
PEAN ECONOMIC COMMUNITY MEETING INTOECOUNCIL ,•
Having regard totheTreaty establishing theEuropean Economic Community ,
hereinafter referred toastho "Treaty ",
After consulting theCommission ,
Whereas theAgreements between theEuropean Economic Community andrespect –
ingly signed on ,hereinafter referred toasthe
"Accession Agreement ^provide fortheaccession of
ttf'tho ACP-EEC Convention signed inLome on28February 1975 ?
Whereas pursuant toArticle 90of "th®Convention theaccession ofaState
must notadversely affect theadvantages accruing totheAC?States signa­
tory tothe :Convention ,inter alia from theprovisions onfinancial and
technioal cooperation andthestabilization ofexport earnings ;
Whereas theMember States have nowdecided toincrease by million
\mits ofaccount theomounts^made available totheEuropean Development
Fund (1975 );
Whereas theInternal Agreement onthefinancing andadministration of
I ,
Community aidsigned on11July 1975 should therefore beamended ,
.*
HAVE AGREED ASFOLLOWS :
•••/•««

Article1(2)and(3)oftheInternalAgreementonthefinancingand
administration ofConununity 0idisherebyemendedasfollows:
"TheFondshallconsistofmillionvnitsofaccounttobafinanced
"bytheI-'cmborStatesasfollows:
"lîelgium millionu.a.
"Deraark millionu.a.
"Germany millionu.a.
"Franco .....millionu.a.
"Ireland millionu.a.
"Italy .....millionu.a.
* •*
"Luxembourg .....millionu.a.
"Netherlands .....millionu.a. '■
"UnitedKingdom.....millionu.a.
'"Theamountstatedinparagraph2shallbeallocatedasfollows:
"a)....millionu.a.forthaACPStates,comprising:
"....millionu.a.intheformofgrants
"....millionu.a.intheformofspecialloans
"....millionu.a.inthsformofriskcapital
"....millionv..a.intheformoftransferspursuanttoTitleIIof
theConvention .
"b)....millionu.a.forthecountriesandterritoriesandtheFrench
overseasdepartments ,comprising :
»....millionu.a.intheformofgrants
'....millionu.a.intheformofspecialloans
'....millionuia.intheformofriskcapital
'....millionu.a".'asareserve.
1c)....millionu.a.intheformoftransfersforthecountriesand
"territories ,pursuanttothoseprovisionsofthedecisionwhich
concernthesystemforstabilizingexportearnings.
p.m.EIDloans.

ThisAgreementshallbeapproved "byeach»IesoerStateinaccordanceKith
itsownconstitutional ,requirements ."TheGovernmentoreachMemberState
shallnotifytheSecretariatoftheCounciloftheEuropeanCorsscunities -
whentheproceduresrequiredforitsentryintoforcehavebeencompleted.
ThisAgreementshallenterintoforce,providedthattheproceduresrefer­
redtointheprecedingparagraphhavebeencoapleted,atthesaaetise
astheAccessionAgreeaents.
Article3
ThisAgreement,drawnupinasingleoriginalintheDanish,Dutch",
English,French,GermanandItalianlanguages,eachofthesetestsbeing
equallyauthentic,shallbedepositedinthearchivesoftheSecretariat
ofJthsCounciloftheEuropeanCoraunities,whichshalltransmitacerti–
tfiedcopytoeachoftheGovernments01theSignatoryStates.

ANNEX1
DOCUMENT
concerningdirectivesfornegotiations with
PAPUANEWGUINEA
TITLEI
TRADECOOPERATION
UpontheaccessionofPapuaNowGuineatotheACP/EECConvention
ofLome|thetradecooperationprovisionsthereofshallapplytothea
inthesamemannerastotheACPStates* *
»
TITLEII
COMMODITY EXPORTEARNINGS
UponaccessiontotheACP/EECConventionofLoiae,PapuaNew
GuineashallheentitledtothebenefitoftheprovisionsofTitleII
thereofinthesamemannerastheACPStates.
TITLEIV
FINANCIAL ANDTECHNICAL COOPERATION
UponaccessiontotheLOQ<§Convention,PapuaNewGuineashallhe
entitledtothebenefitoftheprovisionsofTitleIVthereofinthe
samemannerastheACPStates.
./•
Provi«lon*laddrtit:Ruedtlutoi200,8-1049Bru»w!»-Telophon#7360040/7308040-Ytlegraphicaddrau:"COMEURBrunols"-
**-1.i««tiAttrr\>ir:l ii%"

2- ANNEX 1
Tothat endtheEDP shall "beincreased "by...... .million EUA ,"by -
raising oftheMember States' contributions provided forinArticle 1
(2)oftheInternal Financial Agreement of1975 inline with theadhoc
"breakdown adopted in1975 forthedetermination oftheMember States'
contributions tothe 1975 Fund .
Provision shall bemade fortheamounts inArticle 1(3)(a)ofthe
Internal Financial Agreement tobeadjusted proportionately tothe
increase inthe 1975 Fund .
OTÏIER PROVISIONS
Upon acoession totheLome Convention thefollowing provisions
andrelated texts thereof shall apply toPapua NewCuinea :
TITLE III :industrial cooperation
TITLE V ' :provisions onestablishment ,services ,payments and
. capital raoveraontB
TITLE VI :theInstitutions
TITLE VII Igeneral andfinal provisions ,save forArticle 87,the
agreement toenter into foroe onthefirst dayofthe
second month from the date onwhich the instruments of
ratification oftheMember States and ofPapua NewGuinea
arelodged and :
–theactofconclusion oftheagreement bytheCommunity ,
-theprotocols annexed totheConvention ,
i -the declarations annexed tothe Final Act .
.PROVISIONS FORIMPLEMENTATION OFTHE LOME CONVENTION
Upon accession totheLomo Convention ,Papua NewGuinea shill bring
into force thedecisions andother implementing provisions adopted bythe
Institutions oftheConvention ,andtheCommunity shall make theRegula­
tions adopted forthebenefit oftheACPStates applicable toPapua New
Guinea .

-3-AÏTÎÏEX1
TRANSITIONAL PROVISIONS
Inaccordancewith-thecommunication addressed ,bytheCommission
totheCouncilconcerningtheopeningofnegotiations withPapuaNew
Guinea,itwould "bewellthattheCommunityandtheapplicantStates
shouldexchangelettersundertakingeachforitsparttoapplyuni­
laterallythetradearrangementsintheACP/EECConventionofLom6.

ANNEX2
Pointsarisingwithregardtoaccession "byPapuaNewGuinea
totheLom<§Convention
1.Itemergedfromtheexploratorytalkswithrepresentatives of
PapuaNewGuineathatthecountrywaspreparedtoacceptinprinciple
alltheobligationsentailedlayaccessiontotheConvention,
2.TitreIoftheConvention (tradecooperation)
Tradearrangements –Positionordesiderataoftheacceding
counxry
*
V
Unconditional implementation ofArt.^oftheConventionas
PapuaNewGuineadoesnotgrantpreferential treatmenttoanycountry.
3.TitleIIoftheConvention (Stabex)
3.1.PositionofPapuaNewGuinea
ThefollowingproduotsfallingundertheStabexRegimeareregular
exportsfromPapuaNewGuinea:
–cocoabeans
-copra
-timber
-coffee
.-palmkernels
-palmoil
–tea
DesiderataofPapuaNewGuineawithregardtotheoperationof
thestabilization schemecanbestatedbrieflyasbeinginclusionamong
theleastdevelopedtlandlockedorislandACPcountriesreferredtoin
Article24oftheConvention(applicationof2.5$dependenceandfluctuation
thresholdsasprovidedforinArticle17(2))jinviewofthecountry's
levelofdevelopment anditsparticularproblemsinconsequenceofits
rroviiionaloddross:Ru«doloCoi200,B-1049Brustoli-Tolophono7350040/7358040-Tologrophlcoddresi:"COMGUROru»*®»»"-
TOIOMÍ"21877COMEUB

islandcharacteranditBpoorinternaltransportinfrastructure .
3.2.PositionoftheConninsion
Information ,tohandindicateatnattheproductsinrespectof
whichPapuaNewGuineamighthoeligibleforStabexintervention are:
.-cocoabeans
–copra
-coffee t•
-timber.
Thecountryalsoexportsteaspalakernels,palmoil,coconutsand
peanuts,butintherecentpastnoneofthesehaveaccountedfor2.5$or
moreoftotalexportearnings.
Inviewofinsularcharacterofthecountry,tho2.5$dependence
andfluctuationthresholds wouldapplyautomatically toPapuaNewGuinea.
4.TitleIVofthoConvention (financialandtechnicalcooperation)
Asconcernsfinanoialandtechnicalcooperationitsnustboborne
inmindthatPapuaNewGuineamustnotbetreateddifferently fromthe
otherACPcountriesastoformandconsistencyofaid.
WithregardstotheeventualinclusionofPapuaNewCuir.oaa.~ong
theleastdevelopedACPStatesreferredtoinArticle48theCemission
considersthat,thoughfavourableargumentscouldboputforwardinia
favour,thisisnotjustified,inviewoftheincomeporcapitaandtho
potentialresourcesofthiscountry.
5.TitleIII}TitleV)NoparticularproblemsTitleVI)TitleVII)Noparticularproblems

ANNEX 3
Papua NewGuinea
T. INTRODUCTION
Papua NewGuinea comprises theeastern half oftheisland ,ofhew
Guinea ,theBismarck Archipelago (NewBritain andNewIreland being thelargest
islands ),twoislands oftheSalomon Group (BukaandBougainville )andthe
Trobriand ,Woodlark andLouiside islands .
Ithasaland area of178.000 sq.miles (460,842 sq.km)andapopulation
of2,75million (June 1975 est).Asin1971Papua NewGuinea hadanindigenous
population of2,4mstheaverage increase has "beenoftheorder of2,7$perannua .
Thepopulation isdurded into 300ethnic groups speaking 700languages .
Thenon-indigenous population ,mostly Australian expatriates which had
totalled 55.OOOatendofJuly 1971 ,decreased toabout 39.000 atendJune 1975 »
Urban population increased from 232.000 in1971 "to333.000 in1975 1arise
of44io.This increase has "been partly caused "bythewidening differential
between minimus wages ontheurban andrural areas .
Itisestimated that thetotal work force inthemonetary sector ,inclu­
ding expatriates fell slightly from 338.000 in1971 "to33I.OOO in1974 •
Until 1971 thelabour surplus resulting from urbanisation was absorbed
into thework force {since their rapid employment growth haacreased ,duepartly
tothewithdrawal ofAustralian Capital which accompanied theAustralian migration .
Theeconomy which haddeveloped asaresult offoreign investment (mainly
Australian )inagrioulture }mining .andtoamuch lesser extent industry ,hasrelied
ontheprovision ofskills from outside .Atthehigher levels ofskills ,thecom­
position ofthework force isstill heavily biased towards expatriates ,with
Papua New-Guineans generally occupying the semi skilled andunskilled positions .
However ,expanding school andtraining facilities aresupplying more
Papua NewGuineans qualified forhigher level jobs andalso Britons ,NewZealanders
Filippinos arereplacing Australian expatriates insome oftheprofessional po­
sitions .

-2- ANNEX3
Asthenumberofschoolleavers "begins "toriseandthedifferential
"betweenurbanandruralwageswidentheproblemofunemployment ialikely
tobecomecoreserious.
Migrationtothe'townsisimposingheavystrainsonexistingurban
facilities,especiallyhousing,andtheconcentration ofmigrantsinethnic
settlementswithinthetownshasaccentuate .theproblemoflawandorder.
Therehasbeenaconsiderable inoreaseincrimeanddrunkenness whichhas
severelystrainedtheresourcesoftheauthorities.Expenditures onthe
polioeforcehasbeenincreasedbyalmost50i«iaeachofthepasttwoyears.
II.ECONOMICSTRUCTURE
Themajorcharacteristics arethedominantroleplayedbyBougainville ?s
exportsofcopperinthe"balanceofpaymentsandthelargesharetakenby
Australianaidinfinancingpublicsectorexpenditures salesofcopperabroad
.acoountforabout60$oftotalmerchandiseexports,whileiiaportsarerelatively
small,consistingmainlyofreplacementmachines,petroleumandvehicles.The
minegivesemploymentto3.250indigenousworkers,butitsdirectincomeand
employmenteffectsonothersectorsaremarginal;itsmajorcontribution consisting
inthepaymentofcompanytaxe,royaltiesanddividendstothecentralgovernment,
sinceasubstantialpartoftheprofitearnedisrepatriated abroad.
ThecopperdepositsonBougainville IslandareminodbytheBougainville
CopperLTD(BCL);53»6$ofwhichisownedbyConzincRioTintoofAustralia,
withthePapuaNewGuineaGovernmenttakinga20$shareoftheequity.The
remainderoftheequityisheldbyindividuals andcorporations ,bothinPapua
NewGuineaandoverseas.
Commercialproductionofcoppercommencedon1stApril1972.Theminenowpro­
ducesabout170.000MTofcopperraetalequivalentannually.Theentireproduction
isexportedintheformofconcentrates astherearenosmeltingfacilitiesin
PapuaNewGuinea.Thevalueofcopperexportsin1973/74amountedtoK316a;
69%oftotalmerchandiseexports.Howeverpricesforcopperwirebarwhichhad
risentoapeakofK2,15perkginApril1974»declinedtoK0,88inJune1974.
Overallthevalueofcopperexportsdeclinedby25-andthecontribution ofthe
BougainvillesectortoGDPwasreducedtoabout20$asagainstmorethan30<fa
in1973/74*Thecopperismarketedunderlong-termsalescontractswithfive
countries 1Japan,WestGermany,Spain,MexicoandYugoslavia (theYugoslavand
Mexicancontractsareduetoexpireshortly).

-3- ANÏÏEX 3
Exports ,mainly plantation crops ,copra ,cocoa and .coffee were gener-Ily
successful in1974/75 "but "thiswasnotsufficient tooffset either thedecline
incopper exports ortheincrease inimports . -?;s
Copra '
Papua NewGuina isthesecond largest exporter ofcopra intheworld ,though it5.8
only thesixth largest producer inAsia . '
Allcoconut products areexported ascopra ,except 25.OCX)tons ofcoconut oil
and15.000 tons ofcoconut meal ,that areexported from Rabaul .Record prices for
copra during thefirst half of1974 ledtoasubstantial accumulation offund ,
loutwith thedecline ofworld prices ,theGovernment stepped inwith aKJOper
tonsubvention ,andinMarch 1975 wawed thecollection ofexport taxoncopra
andcooonut products *.
Coffee .,
World prices fell less sharply in1974/75than those ofother primary commodities ,
andPapua NewGuinea exports rose by13$involume and16%invalue .Papua
NewGuinea subscribes totheInternational Coffee Agreement .Price expectations
arefavourable forthenext twoyears andexport earnings areexpected toincrease
Cocoa
Output rose sharply in1974/751despite adrop inprices inthemiddle of1975
andthevalue ofcocoa exports reached K40.3 m,72$above 1973/74levels ,
ACoooa Industry Board wasestablished in1975 for "thepurpose ofsetting up
astabilisation fund .
Rubber
Theindustry remained depressed throughout 1974/75ant*.exports inthatyear fell
short ofprevious year 'stotal by28$>,
Timber
Exports also declined ,reflecting lower demand abroad ,especially inJapan .
Manufacturin /?
This sector issmall inPapua NewGuinea consisting mainly ofenterprises produ -
'cing beer ,cigarettes ,carbonated bovorages andrubber shoes .Output ofthose
items have increased reoontly though manufacturing firms suffer from thesize oft
local market ,which ioeffectively reBtrioted bytransport difficulties tothe
particular enolave inwhioh theenterprise islocated .Furthermore ithas
provod diffioult totrain andmaintain anindigonoua labour force .These diffi­
culties combined with thesharp increases inwages andmaterial costs aswell as
thounoortainty concerning government pln.no regarding investment inindustrial

-4-ANNEX 3
undertakings have inhibited newinvestment .
Trade Agreement b
Papua NewGuinea andAustralia signed aMeaoradum ofUnderstanding onTrade and
Commercial Arrangements inDecember 1973 topreserve theexisting special and
general tariff treatment andother existing arrangements during theself-
government period .This agreement hasrecently "been extended pending the
conclusion ofalong term agreement .
When theU.K. joined theEEC ,itwasagreed that tariff preference towhich
Papua NewGuinea waseligible would bemaintained until 1977 *
Conclusions
Papua NewGuinea hasaconsiderable potential foreconomic growth ,especially
inagriculture where only 2$oftheland area inunder cultivation .Thesoil is
fertile ,rainfall ample andmost tropical products canbegrown readily .
Ifmore land istobebrought into cultivation ,changes will have tobemade in
.1
the'system oflandtenure .Distribution offood within thecountry isamajor
problem ;themain producing areas intheHighlands having nooutlet toPapua
andPort Moresby .Theeconomy cannot achieve itspotential until interval
communications aregreatly improved andextended .
PNGfe mineral resources have notyetbeen fully explored ,but itisclear that
they areextensive .There areextensive timber resources both onthemainland and
intheislands .Exploration ofmineral wealth began only reoently andinaddi­
tion tothediscovery oflarge copper deposits inBougainville ,important deposits
have been discovered inthewestern part ofthemainland ,where 3major ventures
arebeing considered .Oilandgasexploration isalso under wayboth onshore and
offshore ,though nocommercially viable fields have yetbeen found .Several hydro­
electric projeots have been undertaken onthenumerous large rivers ofthemain­
land ,which when completed would bemore than sufficient tomeet energy require­
ments fortheforeseeable future .Theexploitation ofthese resources will ,
however ,require large amounts ofcapital andagreat deal oftechnical expertise .
Hitherto ,Papua NewGuinea hasrelied onAustralian aidandinvestment ,Australian
personnel andtechnical expertise .Theeconomy made upofaseries ofenclaves
hasdeveloped acost structure andconsumption patterns similar tothose of
Australia -characterised by&high propensity toimport ,vulnerability to
inflation abroad and concentration ofinvestment inthe extractive industries .

-5-
Kanagementand.developmentofsuchaneconomy,difficultinanycircumstances ,
ismadesoredifficultafterindependence "becausepopularaspirations have"been
raised,whiledomesticadministrative arrangements arestillinastateof
transitionandtheinternational economicenvironment has"becomelessfavourable .
Thefallincocsaodityprices,especiallycopperhasentailedasubstantialloss
offoreignexchangereceipts.The"budgetout-turnwilldependforsomeyears
tocomeontheflowofAustralianaidandmedium-term arrangements forAustralia ,
aidare"beingdiscussedbetweenthetwoGovernments,Ifthedevelopment poten­
tialofthecountryistobefulfilled,themainobjectiveofthegovernment
shouldbetobalanceitsbudget,especiallyifworldrecessioncontinuesby
implementingpoliciesforeconomicdiversification !importsubstitution and
self-help.

PapuaNov;Guinea, ANNEX3
«4BaoioData
η
*Ar.SiulPopulation •• -
Area.. 178.000sq.Mlles(460,842
Populaticn(oniJune1975) 2,75Billion
Annualrst.sofpopulationincrease 2,7$
Populateidensity 15/sq.n
Monetary .""torworkforce(1974) 331,529
*includingexpatriates )
Monetre,sc.;torworkforceas$of
ij-tion 7°
?Moresby(theCapital>pop.(1971)76.507
Lae(NewGuinea) »»113g^qôRabaul(NewBritain)»••2ô'518Goroka(NewGuinea)«n12*066
Arawa&Kieta(Bougainville)""14S431
•CnrranfV v?
Pììuovmcurrencyintroducedon19Aprii1975tao«Cisto,;1Australiandollar
touai1Australiancent
i!,xou:ur-VR\*t1K:USf!I.25(Jan.76)
1K;SDR1.12(1974/75)
££2£iL.4:-1"SOticProduct(millionKinas)
Gdpywr+^^^1973liUr–l'^rke;-tfin!,»Ana«+ •-GPP~MarketCoiViponent 463.!495-0621.084I.8
Non^rketComponent 133.6l50.5l6c2U2Q
cw-«,„««*marketprices621.7645.5786.21003.8996.8
CrossH-~'tions.lProduct
GWPporo-j.pi-ta(1973) SDR290 4l0us4 1
produot,ifraeasurediinhLmaUoftprLor^lWielthaieubsiGtGncesector,whenexceedA#'(Q-&Qperoapita8 elsewhereinS.E.Asiamaynot
Bebt(raillionsK)
Totaldobt ûoo,r«*u».v 9*9136,1159*721i'6"5-8externaldeM c,„„...5ό.396.7127.7165.ό211.4]

-2 AfJNTCX5
Debtservice?«v/r..ent3
InterestandRepayments(k)
Interestandamortisation as4,
ofRevenues
CentralGovernmentFinance(mil.K)
Revenue
ForeagiiGranis
Totalrevonua
TotalExpenditura
Overalldeficit(-)
Balanceofpayments(mii.K)
Exports
Iaports
Tri.de'balance
r'8.48.3''J-3.4 11.4r"\/»c.J
11.39.814.4 8.311..
12211972M 1974*10'
74.285.193.3136.717'-
101.8•108.2121.8 152.3IV
176.0193.3215.1 289.031;
204.7233.8250.4307.537<!
-28.7-40.5-35.3-I8.5-56,8
86.4109.5267.9561.1 4(>C,•
328.3323.2243.7 274.1 4Go.
241.9-213.724.2286.954.3