4

I agree that we should only reimburse either the State Bank of North Borneo or the North Borneo Trading Company in respect of payments actually made to the local companies, but it appears that there may be two classes of these,i.e. payments already made by the State Bank and payments made by the Trading Company to the local firewood concerns in respect of which they have not yet been reimbursed by the State Bank. It would seem that the State Bank have al ready paid the sums of $11,050 and $18,016 and it is probable that the Trading Company have also paid the further sum of $18,039 in respect of the shipment cleared on December 6th. (It is unlikely that the local concerns would have agreed to shipment without getting paid.) We must therefore contemplate the immediate payment of all these. What we can, I think, refuse to pay is the $50,000 in respect of the firewood awaiting shipment which presumably has not yet been paid over by the Trading Company.

I think we must also contemplate that if, contrary to our fears, the full Japanese occupation of North Borneo does not take place in the near future we may be in honour bound to make some payment for the firewood awaiting shipment and we might perhaps say in reply to the company that while we are not prepared in present circumstances to make any such payment it could be reconsidered at a later date if it should then appear feasible for the Trading Company to effect payment to the local firewood

concerns.

Mr Clanean

ہو

14.1.42.

I don't think we

need

be concerned with my payments

except those made by the

State Bank

n

N. Bomeo

were agents of

the HK. Gorb

the

ay

under whation were

terms 1

the contracts they

State Bank

Trading Coy

Companie

has to pay the

or any supplier

we can

consider

refunding to the Bank, but,

fo good reasons

Ha Bank

no doubt,

is not get out of

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