67

3.

required for his factory.

5.

I enquired of Mr. Gourlie how much material

he contemplated carrying along the Bhamo Manwing Road.

His estimate was that his initial requirements would

amount to some 3,000 tons and that he would employ 15

to 20 lorries. He was satisfied that the condition

of the Bhamo-Manwing road was adequate for his purposes.

He contemplated certain trade advantages being derived

by Burma inasmuch as he would be purchasing his lumber,

his petrol and his cement in Burma. As regards the

advantages of his proposed site over that at Manshih

referred to in item (2) of my note of the 10th November,

he pointed out that the haulage from Burma to his site

would be only 67 miles compared with the 137 miles from

Lashio to Manshih. He was aware of the fact that malaria

is common all through the area, but he had made no

special enquiries about this, and it did not seem to be

a matter of any very great concern to him.

6.

Mr. Gourliementioned the fact that his Company

had signed a new contract with the Chinese Government

on October the 1st by which the Chinese Government

undertook to accept the output of the contemplated factory

and had made funds available in New York to meet their

obligations under the contract. Mr. Gourlie had also

discussed with Mr. Gardener the question of customs in

the event of a factory being established on the site which

he contemplates, and Mr. Gardener had asked Mr. Gourlie

who has been transferred to Hongkong to get in touch

with him in Hongkong in regard to this matter. The

possibility of arranging a temporary Customs station

to meet the local needs was also a subject of discussion.

This aspect of the case, however, seems to me to be of

no particular concern to the Government of Burma.

7./

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