246
6. Taking the surplus at the end of 1925 at $11 million, $4 million could be set aside for the Opium Trust Fund on 1st January, 1926, leaving a balance of $7 million. About $2 million is required for cash and bank balances, and a further sum of, say, $3 million should be kept available to meet emergencies, leaving $2 million which would be made use of if necessary.
1939
An annual sum should also be set aside from the chandu revenue and added to the fund.
7. Excluding fixed deposits in the Bank, our investments at present are as follows:-
1940
1941
1942
1943
1944
Sterling Securities
Straits Settlements War Loans
7,923,608 1,157,734
$9,081,342
1945
I find that we can set aside $4 million so as to yield interest at the rate of about 5 per cent. until 31st December, 1931. Afterwards as dates of redemption occur there may be a decrease in the rate of interest. I have taken 4 per cent. as the rate of interest on the $4 million after 1930 and on the annual additions to the fund for the whole 20 years.
8. On the above assumptions I have calculated that in order to provide a fund which will yield $1 million per annum in 1946 the sum of $1 million must be added annually to the fund. Taking chandu revenue at $3,300,000, this would have the same effect as an immediate reduction in 1926 of this figure to $2,050,000, together with a steady decrease of the $2,050,000, from 1931 onwards until the figure of $1,000,000 was reached in 1946.
9. If the reduction were to be made once and for all in 1926, I have calculated that $1,900,000, must be added to the fund from revenue every year, reducing the figure $3,300,000 permanently to $1,400,000.
10. I do not think it is practicable to decide now what sum is to be set aside and added to the fund every year during the next 20 years, but the amount in 1926 should certainly not be less than $1,250,000, and should be as near to the figure of $1,900,000 as can be managed without unduly delaying the commencement of necessary public works.
11. Conditions often change very rapidly in Malaya, and an estimate of the financial position at any time may be entirely out of date a year later. The whole position should be reviewed every year, the guiding principle being that there should always be a safe margin between the total of annually recurrent expenditure and the total of "other sources of revenue plus the sum eventually to be yielded per annum by the fund.
L. MCLEAN, Financial Commissioner,
Johore.
1926
1927
Schedule 1.
(Explaining paragraph 8 of Mr. McLean's memorandum.)
247
Taken from interest
of fund.
100,000
1,420,000
1,320,000
.250,000
1,350,000
1,100,000
400,000
1,280,000
880,000
550,000
1,210,000
660,000
700,000
1,140,000
440,000
850,000
1,070,000
220,000
1,000,000
1,000,000
Interest yielded by fund from 1945 onwards is $1,000,000.
Schedule 2
(Intld.) L. McL.
(Explaining paragraph 9 of Mr. McLean's memorandum.)
705
Available for
Total chandu
Added to fund.
expenditure.
revenue.
$
1,900,000
1,400,000
$ 3,300,000
1,900,000
1,400,000
3,300,000
1928
1,900,000
1,400,000
3,300,000
1929
1,900,000
1,400,000
3,300,000
1930
1,900,000
1,400,000
3,300,000
1931
1,680,000
1,400,000
3,080,000
1932
1,460,000
1,400,000
2,860,000
1933
1,240,000
1,400,000
2,640,000
1934
1,020,000
1,400,000
2,420,000
1935
800,000
1,400,000
2,200,000
1936
580,000
1,400,000
1,980,000
1937
360,000
1,400,000
1,760,000
1938
140,000
1,400,000
1,540,000
Taken from interest
of fund.
$
$
1939
80,000
1,400,000
1,320,000
1940
300,000
1,400,000
1,100,000
1941
520,000
1,400,000
880,000
1942
740,000
1,400,000
660,000
1943
960,000
1,400,000
440,000
1944
1,180,000
1,400,000
220,000
1945
1,400,000
1,400,000
Interest yielded by fund from 1945 onwards is $1,400,000.
No. 213.
(Intld.) L. McL.
STRAITS SETTLEMENTS.
THE OFFICER ADMINISTERING THE GOVERNMENT to THE SECRETARY OF
STATE.
(Received 21st October, 1925.)
Government House, Singapore, 22nd September, 1925.
In connexion with my Confidential despatch of the 20th August, 1925,* on the subject of the measures to be taken by the Malayan Governments to replace their opium revenue, I have the honour to inform you that in the Straits Settlements a
* No. 212.
Available for
Total chandu
Added to fund.
expenditure.
47448/25.
revenue.
$
$
$
1926
1,250,000
2,050,000
3,300,000
1927
1,250,000
2,050,000
3,300,000
1928
1,250,000
2,050,000
3,300,000
1929
1,250,000
2,050,000
3,300,000
1930
1,250,000
2,050,000
3,300,000
1931
1,100,000
1,980,000
3,080,000
1932
950,000
1,910,000
2,860,000
1933
(Confidential.)
800,000
1,840,000
2,640,000
SIE,
1934
650,000
1,770,000
1935
2,420,000
500,000
1,700,000
1936
2,200,000
350,000
1,630,000
1937
1,980,000
200,000
1,560,000
1938
1,760,000
50,000
1,490,000
1,540,000
PUBLIC RECORD OFFICE
Reference :-
MC.O.882/11
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO