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Prison Printery in exchange for a share in a

reconstituted Company in which the Government

would have a majority share; the Colonial

Government contracting with the new Company

as in (1).

Sir G. Northcote is of the opinion that apart from any

legal claim, the Government is under some moral obligation

to Noronha & Company. The Company may be dependent upon

Government orders, in which case the establishment of a

Government Press might result in considerable hardship to

the Company.

Of the two alternatives, I prefer (2) to (1) for

the reason that the Government would then be able to control

costs and the handling of confidential work. But contracts

entered into with the new Company would require careful

drafting by someone with the requisite technical knowledge. (As a matter of interest I put up a typical Stationery Office contract), and it would be an advantage if all requisitions

for printing and Stationery made by the various Government

departments could be centralized in and authorised by an

official possessing the requisite knowledge to enable him to

scrutinize them efficiently.

Sir G. Northcote states that it is agreed in

principle that the printing should be taken from the prison and that its amalgamation with Noronha & Company in some way is clearly desirable, and it is now for consideration whether alternative (2) can be legally effected, and, if so, whether

there are any objections to it on grounds of principle.

I am not aware of any precedent.

Unfortunately this file was inadvertently put

aside

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