2.
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rendered it imperative for reasons of defence that at least three months' supply of firewood should be available independently of stocks in the dealers' hands.
It was with these ends in view that Dr. Herklots' mission was undertaken.
5. Arrangements have now been made for the monthly supply to this Government of 77,200 piculs of mangrove wood from Penang and 196,000 piculs from Borneo. The count of heads recently carried out by the Director of Air Raid Precautions showed the Colony's present population to be in the neighbourhood of 1,500,000 so that the annual consumption calculated as in paragraph 2 would appear to be 3,750,000 piculs. The importation by this Government of 273,200 piculs monthly, being no less than 87% of the normal consumption as indicated above, will it is hoped enable a reserve to be built up and at the same time force the firewood dealers to sell at fair prices. The retail price of firewood was fixed at 40 catties per dollar on 25th February, 1941, and at 45 catties per dollar on 18th April, 1941.
6. I take this opportunity of requesting, in accordance with Colonial Regulation No.273, Your Lordship's covering approval for the financial arrangements made to implement this policy. Your Lordship will appreciate from the foregoing paragraphs that firewood from Government stocks must be continually placed on the market and the stocks replenished by supplies from abroad. In order to avoid the inflation of revenue and expenditure which would result from including every transaction of purchase and sale in the Colony's accounts, and to obviate the delays inherent in the formalities of legislative sanction which would otherwise be required whenever it became necessary to replenish the stock of firewood, I am advised by the Accountant-General that the accounts of this venture are best kept in the form of a suspense account of which only the net profit or loss will be carried to revenue or expenditure. I should be glad to receive Your Lordship's consent to the opening of a suspense account of this nature. 2
I have the honour to be,
My Lord,
Your Lordship's most obedient, humble servant,
N& Smith
Colonial Secretary
for Governor.
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