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The following telegram has been received from the Secretary m of Sinte for the Colonies by His

in Excellency the Governors

I

m.j

18th September, 1941.

From the Minister of Airs

Production

Gratefully acknowled

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Continued support grent encouragement nearer day when Squadron

strength to our bon

BOMBER. FUND

Intest

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The

September 26, 1941.

VERBATIM REPORT OF MR W.

ANDERSON'S EVIDENCE

stones.

J.

FROM PAGE ONE

Dodwell's

Jardine's Tender

three

and

Hurricane

Cane Lamps

point out the recommendation of the acceptance of the tender and drew

I

than

that the most satisfactory picks and shovels was lower. He recommend-not know.

Did you not tell tho Chief shovels submitted were those ten-ed that the tenders for the other dered for by Jardine's, Dodwell's and pick-nxes and shovels and crowbars Mechanical Engineer at the DA- Then, what do these two characters/ Lacon' and Co., all of whose lenders should be given to Chiap Hwa. This R.P., had already advised you to ro-was approved by the Tenders Board. purchinse from Chlap Hwa at $1.05 Y. C. mean? Cement concrete walls were of the some price, The

commendation

That is all you know about the each? At an Interview with tho was submitted direct were to be measured by cuble yard. by the D.A.R.P. to the Tenders Board, dealings of the Stores Department Chief Mechanical Engineer, I did When 1, said no just now 1 thought Before a decision

it with A.R.P. services?--Yes. was reached, you meant the building of walls with was banded to me by the Financial

Do you know anything about the attention to a previous occasion when Secretary, Chairman of the Tenders The Chairman: That is all we re- Bourd, to inquire into these tender purchase of hurricane lampa?Yes he made another type of bucket and quire from you at the moment, prices because of the fact that In March, 1944, the DARP re- asked if he could not do the job.

Witness: I hope you will make arms Jardine's,

to The nott result was that on order still further fuquiries

or for 5,000 buckets was given to the to clear up Lacon and Co-had all quoted for quested the Stores Department the matter.

picks and shovels manufactured by make an estimate of the cost

Tenders were call-Hollway Department and they sup- hurricane lamps.

_a_cheaper price ed for from three firms, Lacon and plled it at The Chairman: You may rest the Chiap wa Brm. ansured we will do that.

The next witness called was Mr

Co., Man Chung and Wing Chung. Chlap waYes.

Steel Helmets William John Anderson, Controller Did the D.A.R.P. ever recommend While the tenders were outing were not advertised but were sent

Do you know anything about steal that the types by, Jardine's although to firms on our registered list the of Stores..

the

helmets which were purchased for supply cepted-He did.

And Jardine's got their articles to all tunnels of

was decid- arst purchase of steel helmets was purposes. from Chipp Hwa? Yes, but that re-en to hold over further action on made by the DAIP.

ed on the M commendation was altered

Direct?Yes, with the approval of the original ARP, requirements in the

for advice of Director of the Public

sted order, it

ter, if possible, to make the bulk the Government in July, 1940, Works Department who suggested

2,000. for the purchases

nil ,the that order should be increased

Departments, including

Who supplied them?-Chlap wa and from 10,000 Pleits

10,000 ditional lamps which the at $4.00 each. The next order was shovels to 15,000 picks and 15,had indicated he might require. request from 400 chovels, and that that order The D.A.R.P. was requested to sub- August, 1940, asking the Stores Do-

between mil should be placed equally

A supplementary list of require partment to obtain quotations for a the three European firms which had ments. This was received on May it only one quointion was received further 2,000. Tenders were invited tendered.

The Chairman:

you been acting as Controller of Storest.

How long have a low cents higher, should be question arose regane James for the A.R.P. Department?--Yos,

Mr Anderson: I have been hold- ing the substantiated post since June, 1030.

What are the functions of the Controller of Stures? The functions of the Controller of Stores are to do purchasing for Government....

As far as control of stores is con- cerned, you are really the purchasing

of the Government of long agent kong? Yes.

What is the normal procedure for Stubbs Road the purchase of stores?-Imported stores are normally bought through the Crown Agents of the Colony. Stores made locally are bought by Pre- contract for a period of time. viously. It used to be one year but since the war we

we made what are called three-month contracts.

Hongkong Telegraph.

Friday, Sept. 26, 1941, Wyndham St., Hongkong Telephone: 20015

THE preûz "Special to the Telegraph" is used by the “Hongkong Telegraph” to Indieate news which is sirletly copyright under the provisions of the_Telecommuni→ cations Ordinance, 1038. Such newS, AS bears the indication "U?" is received in Hongkong on the date of publication by the United Press Associations, • who, re- serve all rights and forbid republications, alther wholly or in part without previous arrangement

ERSATZ MORALE

In "Mein Kampt" Adolf Hitler hos written of the inability of Imperial Germany to comprehend the forces that would lead men to face denth of their own free will. A report by the Committee for National Morale, a group of university psychologists, medical men and social scientists with headquarters in New Yoric, indicates that a similar inability to appreciate fundamental values exists in Nazi Germany to-day. The Nazi soldier, the report shows, is a product of ap- plied psychology plus medical and alcoholle stimulus. Analysis of hundreds of German books the psychology of war has disclosed an altempt to foster a sort of synthetic morale out of ersalz ingredients,

on

What is the normal system of purchasing by contract? We collect all the information and estimates of the stores that we require, -after which we make out the necessary schedules and then they are ad- vertised in the "Government Guzette,"

Tenders Called For And then tenders are called for?- Yes.

.

It was

host of noble ad-

the

"the" D.AR.P. in

boholt

Although their tenders were higher/12, 104, but on May 22. however, that was from Jardine, Mathe

a representative of the Chlap und

Iwa

tendered on Manufactory called on my assistant, and Co. who than that of Diaward?-Yes

$4.80 you say the Director of the Mr Carr, and informed Mr. Carr that of Chiap Hwa Manufactory at When Public Works Department, who do the Stores Department wax calling each. The tender was submitted to you refer to?-Mr Pearce,

practically all the A.R.P. for tenders for hurricane lamps.

Quotations Called For purchases and work done, he really

You don't know how they got hold acted as D.P.W. and not Mr Purves?

let this information?-No. Mr Carr I believe 20.

asked where he had received his

In

the D.A.R.P. for his recommendation und the fender from Jardino's was recommended and Government ap- proved of that recommendation..

Why Tender Was Accepted

An order was accordingly placed of the L.W.D. these three Arms' ten- had been to the A.R.P. Department, with Jarding's?Yes; on November

You say that on the recommendation information and he replied that he

Did he say that he

he had been told ders were recommended to be

Recommendation Of P.W.D.

Are they called for in the "Governorterviewed

ment Gazette"?—Yes.

£3

because I was not antisfied that it was No, 222 nt $1.50 each and Type No. nt $4 each. The tenders were sub-

tor the

copied although the Diaward tender quotations had been called for7-23, 1940, tenders were again invited The Jepresuntatly of the at the request of the D.A.R.P. for 3,000 helmets. In this case, two was still lower and in spite of the Yes.

drms quoted, Jardine's on behalf of been accently their articles had/ Chiap Hwa firm asked Mr Corr f/9.00 fact that

his

could quote a

price. If the Chiop Hwa Manufactory who and found satisfac-

wan Informed that there

the offered two samples (a) at $4.50 each tory?—Yes.

objection. On the same day, this and (b) at $4.80 each, and the other What Was the next thing that

Chiap

Hwa Manufactory submitted tender was from the Sin Hwa Trad-

ing of the Chiop Hwa firm quotations for hurricane lamps, Type

Company (Dlaward Steel Works)

mitted to the D.A.RP. who recom Do you recollect what the prices mended that Jardine's sample (b) at Under General Order 400, I see necessary to place orders with three 333 at $1.35 each,

were from the other three firms who that in stores which may be purchas-firms for the same goods manufactur-

the

that it ed in the Colony, unless the estimated ed by another firm.

reason cost is less that $200, they are to be

For whom they were apparently had been originally approached? $4.80 each should be accepted

only satisfactory

"helmet submitted abtained by contract

after public acting as agents and as such would Yes.

Were they lower or higher?-To The DARF. obtained direct be paid commission?-Quite, tender. That is correct.

inter- the best of my recollection, only ernment authority to increase the What happened when you If, however, no tenders are inado

representative of the Lacon and Compung hubmitted a number from 3,000 to 7,000 and in or the Government has grounds to viewed the

his recommendation, he said that he Did the D.A.R.P. later ask for the was of the opinion that it might be believe that the tenders sent in are Chiay Hwn Army-One of my Eur- lower price than Chlap Hwa.

original quotations received to be collusive or unreasonable, other ar- openn staff was present at the inter-

Allview and to the best of my knowledge sent to him?--Yes. He gave us his successful tenderer in view of the well worth while to approach the rangements may be made. tenders will be submitted to a Board it was B. C. Lam.

reason that he

them to settle number and seo if the price could of not less than three persons ar-

Firm Interviewed

requirements not be reduced. Jardine's were ap ranged

.The by the Government.

The Stores Treasurer is ex-offield Chairman of view? I asked the representative of

ather the Chlap Hwa firm why his firm quotations to him.

Including that from Lacon and the Tender Board and the members are the Postmaster General, had not tendered direct to Govery Co.7-Not the official quotations, but

Blores and the head mer

ment for this business. The reply the Controller of them the Chair- | given was that they had to wait over sent in a separate letter.

of the deptriment,

аге

Not Brought To Board's "Notice

The

What was the result of the inter- his own devent

sent the proached, and they agreed to reduce

money

You also sent the Chlap Hw

the prie

price to $4.70. That is ten cents tess on each helmet? Yes.

The position was then that in- stead of, supplying 3,000 helmets at $4.00 each, they were now going to -

7,000 helmets at $4.70′ench? supply -TOS.

Higher Tender Approved What happened? The order was

that $4.70 each. In February, 1941, the to their suitable size and D.A.R.P. requested a tender for an-

agrgod

vance cash. I told the represenLING Oed qualities, he recommended!other 6,000 helmets. On this ocra-

the purchase of lamp Type No. 332 sjon two

Yes.

on

the

man of the Urban Council. Yes. aix weeks for payment on a previous

Therefore there is what is known large order from the A.R.P. Depart quotations to the D.A.R.P.? Yes.

under Board here? Yes.

ment and

not do so again and they could

D.A.R.P. Recommendation And normally all tenders are sub-as they had little liquid

What was the next thing that hap- available to enable them to meet pened? Did the D.A.R.P. report to mitted

for decision?—Yes. to them Is that all that was followed in their overhead expenses. For that

you that the hurricane lamps had practice? Yes, so far as local stores reason they had asked old ad- been inspected by the Tunnels Com placed with Jurdino's for 7,000 at

der on their behalf who could concerned.

resentative mitice and that they Hos that been followed so far as

Hwa the ARP. is concerned? That'

1 of the Crtment

firm that the would accept cannot say. There are services and Store

tenders were received, the delivery in lots as ready and payment stores and in services unless

of behalf tender is put before the Board, I would be made within three days manufactured by Chlap Hwa?-Yes from Jardine's

Did he say that it now appeared Chiup Hwa Manufactory at $4.85 The morale consists of a one-track

would not linow about it.

from date of delivery and acceptance line of thinking wholly absorbed What do you mean by Services?-of the goods. Their representative that the firm should be checked upon each and from the Diaward Steel informed me that this fully satisfied and tender for various store parts? Works who submitted u lower price. with the idea of attack. It is Services are like the P.W.D.

Do you remember what that price his bolstered by uniforms designed to

Arm and that they were prepared

Type No. 333 by the Chiup Hwa was?—I don't know. give the soldier an exaggerated sense

to-quote-on-a-revised price which

commission that Manufactory was recommended-to-Will you make enquiries-and-let-

information?Yes. of his own prowess. Evidently re- Let us confine ourselves to stores. would be less the

mitted was $1.15 for each lamp?- Then what treat and defeat are

what happened? Both tend- concepts con- In your knowledge..?-in my know they would have to pay to their the Committee and the tender sub-us have this

ers were passed on to the DAR.P. sclously excluded from his mental ledge I cannot say that stores not agents.

A commission of 6 per cent.? Yes.

What was the lender submitted by for his recommendation. The purchased through me had been sub- equipment. He is protected from

und Co.?--Approximately D.A.RP.. replied to the Controller of mitted to the Tender Board. If the Yes. I then reported to the Chair- man of the Tenders Board in writing ridicule. When all these applications

¡Stores taut he recommended Jor- Director of A.R.P. wants, for instance,

Idine's tender. fail to overcome his fear in combat.

to purchase sandbags, he may munke the result of my interview

to obtain ap- Extra Tools Explained

I think you passed the tender on his own arrat direct, in 00- resort to drugs and alcohol is

time Yes?-1 also at the same

27, 19417-Yes. parently in order, according to the

proval from

} Was $1.35 ench which was originally

And on which case I would not know if the raised the point whether Committee's report. Thorough as is

necessary to increase the order from

Yes, tender has in fact been submitted. the German soldier's training, the

Direcommending Jordine's. tory as against Lacon's price of $1.32, I am asking you, as a member of 10,000 picks and 10,000 shovels to quoted by the Chlup Hwa Manufac

ha any why? Because they it you

know 15,000 picks and 15,000 shovels. The the Chlap Hwa Manufactory later had proved to be good. He noted extensive development of psychologi- the Tender Board,

reduced their price to $1.15 after the from the tender that delivery.could cal methods by the Nazis indicates whether thers had been any tenders Tenders Board, on the recommenda- moral weakness rather than strength. for purchase of stores in connection tion of a technical expert approved DARP, had seen all the tenders?ho made in three weeks. He also

with A.R.P. work which were not

said that he would have the helmet Moreover, in this war as in the lost,ht to the police of the Tender the Chiap Hwa standard.

brought to

The price of $1.15 was approved submitted by the Diaward Steel Works tested but that this would take at least 14 days.

the staying power of their chief op- ponent, Britain.

it is obviously impossible that the British public could have been ex- posed to the so-called benefits of applled psychology as practised in German military circles. The in-

dividual Briton has had to learn to

of the righteousness of the cause to which they had dedicated themselves,

ment.

Norton.

or

Locon

$1.32.

Reduced Price

So we have this position. From February that same day, he replied?

From

Who was the technical expert?-- the P.W.D. The Tenders Board

Yes.

I take it then that the Government number for such assistance. The D.A.R.P. requested your Departments

don't

The

Without Testing

tender of seven,

weeks. Time would also be taken

ed ma to

Board.

the emphasis on purely material fac- Beard? Yes, I do know, tors has led German officialdom to Can give

you

us an instance approved of the tender for 10,000 by the Tenders Board? Yes.

The reason given for acceptance make the mistake of underestimating instances of what you do know?-pleks and 10,000 shovels only. The of the Chiap wa tender was the The only tenders that I know which question of the additional 5,000 of

The position then was that with- called for ALP stores and which each was referred back to the Hon. reason given by the D.A.R.P. In reply were not submitted to the Tender

Do you know anything else about out having tested Diaward's helmet reported that the

in the increase

hurricane lamps? That is all.

quoted at a lower price, the D.A.R.P. Board were those to which, I believe, D.P.W. and the D.A.R.P. The DFW as to their suitability?--Yes. approval was given by the Govern- number had nothing to do with the

recommended The acceptance of passing out

order the

10 three

Galvanized Iron Buckets In writing or verbally?-In writ- arms but rather to

to have suficient I think you know something in Chlap Hwa's? That was my under-

standing. Ing. I believe.

tools available whereby people in the connection with the purchase of What did you say to that? He Which Government are you talk-dispersed areas may be able to pro- galvanized iron buckets for the Ing about? I am speaking of Sir vide some form of trench protection service. Am correct in say replied that the helmets were ur- Geoffry Northcole and niso General for themselves as it was impossible, for that on March 8, 1941, the could accused and the res gently required that Jardine's stand on his own moral feet. In so doing Britons have, discovered sur-

in the D.P.W's view, to look to prising reserves of courage and of Don't Know What To Say

to place an order for 8,000 bucketst against Diaward's he physical as well as moral strength in

said, was based

on oneyes,

In testing the Diaward helmet. He themselves.

has power to over-ride the Board pick and one shovel to each unit of You invited tenders? Six firms also stated that the risk of waiting Some have been at a

answered. We bent loss to explain their experience. It wishes?-I don't know what to say, 10 persons. He suggested that these

for tenders seven weeks, even if the test should Others have recognised that their Do you know anything about the D.A.R.P. should also report on the from each of our registered firms. be satisfactory, was one that he Can you tell us the names of would hesitate to take. He request- strength come from a consciousness purchase of picks and shovels for the matter. He was inclined to recom,

Д mend AR.P.?—I do.

reduction In view of another

anung these firms?-Not all, but the Chiap

to write

points to the Can you tell us briefly what you do polley submitted to Government in Hwa Manufactory and the Dinward renders

minuted the know?--I have a very brief statement connection with this matter..

Steel Works were included.

Chairman of

of the Te

Tenders For example: when in 1030 Britain's here which have submitted to Dea-D.A.R.P. expressed the opinion that you received tenders from all the submitted the tenders and added a Government decided to

oppose cons (Legal advisers to the Commis-the present allowance of one pick arms? Yes. ine lowest tenderers?-note that the Diaward, Steel Works Nazi aggression even at the cost of sion). want the whole statement was inadequate and to reduce Dlaward, at $1.50 each.

and one shovel for every 10 persons |

Who were

had submitted the lower tender but war, British people felt.a scrise peace in their country that had been though I would like you to refer further would be unwise. He there Chiap Hwa's tender was what the D.A.R.P. reported to ma verbally that, the helmet raade by Dlaward absent throughout many months of to it from time to time. What I want fore recommended strongly that 5,000 "appeasement."

Were these tenders forwarded to was not so satisfactory as the typ This was a morale to know is briefly, what you know picks and 5,000 shovels, additional Wer

offered by Jardine's" behalf of that no amount of applied psycho- about the picks and shovels. Tenders to the original order, should be the D.A.RP.They wers forwarded Chiap Hwn.'s on behal logy could have produced. Nor could were invit 10.000 shovels.

invited for the supply of 10,000 placed. On this advice, the Chair- for recommendation.

Personal Observation the military forces

In picks

Board man of the Tenders minuted On April 1, 1941, did he reply that theories of ruthless attack break When was that?In December, I am not sure of this but in the be must be guided by the recommen through it. Just as the German 1940. The lowest, tender was that of result the Chiap Hwa firm got the datos of the Fire Brigade and the the Diaward Steel Works helmet? authorities in 1914 had learned little the Sin Hwa. Trading Company, also additional order for 5,000 picks and Railway Department? Yes, No, but that from personal observa- from

the history of

known as the Dlaward Steel Works. 5,000 shovels,

Could Make Cheaper, Better tion of the helmet he was of making willing sacrifices for

did you do then? I got the opinion that the Chiap Hwa, hel- ous couser, so the Nazis have ap and cach, shovel..-.

On June 17, 1941, did you get a

with the Chief Mechanical met was superior.

No actual test was Loken?—Not to parently learned little. Nor hus

Instruments Tested further request from the A.R.P.1 Engineer to the Railway and asked Hitler," who, in the „days when he

Were these instruments texted? Yes, for 750-pick-axes, 1,000 shovels, if he could not muke, the galvanised my knowledge wrote

Kampi BAW, KO clearly the German mintake of under-

der- They were tested by the P.WD, and 200 pick-nxes and shovels and 200 tron buckets in his workshop. He The result of that was the estimating truly moral values, avoid- found to be satisfactory. Being of crowbars In this case, the low asked for a sample and said it would ment approved of the order being of palmilar mistake in German the lowest, standard: they were op- standard of the Diaward Sical Works bo possible. He said that he could placed with Jordine's at

Yes.'!! proved

by the Tenders Board. Tho was accepted on to the namake the buckets better thuri Chiap Do. You know it the Chiap Hw:

Was this j

DARP? Hwa and at a cheaper cost. 1 next request was for 10,000 picks and It should be a cause for encourage-

an order with the nest order?-I know Taki promptly 10,000 shovels by the DARPA in Yes,

What: ald be ment among champions of freedom March, 1941. Quotations were called ha

Can and justice everywhere that the for and four tenders were received commended that 750 plak-axes and

Before that first-order was accept- about. that the Railway Depart strength are native to the cause for dine's Dodwell's and Lacon and Co. the

the Dinward Steel Works whose ment, advised the D.A.SLP, to apcepted, did you know if the helmet was which free men stand: For they can These tenders were passed on to the prices were the lowest The prices Chlap Hwa's tendes of $1,65 and sub Lested? The D.AFF reported to know why cright: Is might, and that DARP, for pl recommendation for of the Diaward Steel Works for pick-soquently sold that they could make me verbally that he had tented it they are supported by overlasting samples. The DARP recommend axes was exactly the same as that of better, buckets at a cheaper cost? What kind of test? He said that ed on the privice of the PAW.D. also Chiap, Hwa, Hut, the price for the cannot answer the questionado TURN to Para 5 Column One

Mein

schooled

offre Thoir tender win $1.80 for each pick. Further Regumi.

organization, for the present war.

Did he say, whether he had, tested

Govern

$4.85chch

to

ina:

That' there

was

the helmet was ever tested prior

To hallway. NELS

|untural ingredients, 'of bravery and from the Dinward Steel Workm. Jár- / 1,000-shovols should be awarded to come u tell us this? Hond: Ala Itj a report made oneftaeque demandin

arths

Page 20Page 21

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