707
. PUBLIC RECORD OFFICE
Reference :-
TREFFC.O. 882/11
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
260
1925,* concerning the measures taken by the Malayan Governments to replace their opium revenue, I have the honour to inform you that action is being taken by the Governments of the Unfederated Malay States as indicated below.
Johore.
Instructions have been sent to the Crown Agents for the Colonies to transfer investments amounting to approximately $4,600,000 to a fund to be called the Opium Reserve Fund on 1st January, 1926, and it is proposed to add other investments to this Fund so as to bring the Fund up to a total of 54 million dollars early in 1926.
All sums received as interest on investments held by this Fund will be credited to the Fund and will be invested in long-term securities as soon as this can conveniently be done and it is proposed to add to the Fund each year a further sum of not less than 14 million dollars.
Kedah.
In addition to the proposed Reserve Fund of $3,000,000 (to be set aside out of present surplus) an annual payment of $300,000 will be made to the fund.
Kelantan, Trengganu, and Brunei.
As stated in paragraph 4 of my Confidential despatch of the 20th August, 1925 (copy of relevant portion annexed). †
I have, &c.,
C. 1969/26.
SIB,
No. 216.
FEDERATED MALAY STATES.
L. N. GUILLEMARD.
THE HIGH COMMISSIONER to THE SECRETARY OF STATE.
(No. 629.)
(Received 25th January, 1926.)
Government House, Kuala Lumpur, 30th December, 1925.
I HAVE the honour to inform you that at a meeting of the Federal Council held on 14th December, 1925, the following resolution was moved by the Financial Adviser, Federated Malay States:-
C
That this Council-
(i) resolves that a sum of $10,000,000 be appropriated from the revenues and other assets of the Federated Malay States to form the nucleus of a special Reserve Fund to be used for the replacement of opium revenue, the Reserve Fund and the interest derived therefrom to be invested (a) by the Crown Agents for the Colonies on behalf of the Federated Malay States in such securities of the Government of the United Kingdom or of India or of any of the Dominions or of any British Colony as may from time to time be approved by a Secretary of State, or (b) by the Federated Malay States Government in such investments as may from time to time be approved by resolution of this Council.
(ii) approves of the principle that an annual contribution not less in amount than fifteen per centum of the revenue derived from the sale of chandu be made to the special reserve fund established under the first part of this resolution; and (ii) approves of the appropriation of fifteen per centum of the revenue derived from the sale of chandu in 1926 for payment to the aforesaid Fund." 2. The resolution was agreed to unanimously.
I have, &c.,
L. N. GUILLEMARD.
C. 8519/26.
251
No. 217.
FEDERATED MALAY STATES.
THE HIGH COMMISSIONER to THE SECRETARY OF STATE.
(No. 166.)
SIB,
(Received 19th April, 1926.)
Government House, Kuala Lumpur, 25th March, 1926. IN continuation of my despatch No. 629 of the 30th December, 1925,* I have the honour to request that you will instruct the Crown Agents to arrange for the investment of the Opium Revenue Replacement Reserve Fund.
2. I suggest, in order to avoid inconvenience, that the date of investment of
the $10 million, the nucleus of the Fund, be the 1st May, 1926.
3. The Crown Agents now hold, on behalf of the Federated Malay States Govern- ment, adequate appropriate securities to enable the investment of the $10 million nucleus of the Reserve Fund and the investment referred to in paragraph 6 to be effected without further purchase of securities.
4. The interest accrued due on the 30th April, 1926, on the securities so trans- ferred to the Opium Revenue Reserve Fund, should be credited to the current account of this Government and thereafter should be credited to the Opium Revenue Reserve Fund and invested as opportunity offers.
5. A sum of $2,100,000, being 15 per centum of the estimated receipts from sales of chandu (opium revenue) for the current year, has been entered in the 1926 Estimates, and similar steps require to be taken to invest this sum, also on behalf of the Opium Revenue Reserve Fund.
6. I suggest that on the 1st May. $1,050,000, one-half of this $2,100,000, should be invested by the Crown Agents on the lines indicated above. I will address you later as to the investment of the balance.
7. My proposal, therefore, amounts to instructions to the Crown Agents to transfer to the Opium Revenue Reserve Fund on the 1st May appropriate securities of the then market value of £1,289,166 13s. 4d. ($11,050,000) and to invest the interest received by them accrued due from the 1st May onwards in similar appropriate securities on behalf of that Fund.
I have, &c.,
C. 8519/26.
No. 218.
L. N. GUILLEMARD.
COLONIAL OFFICE to CROWN AGENTS FOR THE COLONIES. GENTLEMEN,
WITH reference to the letter from this Department of the 3rd November, 1925,†
Downing Street, 29th April, 1926. regarding the measures to be taken by the Malayan Governments to replace their opium revenue, I am directed by Mr. Secretary Amery to transmit to you copies of two despatchest from the High Commissioner for the Malay States, and to request you to proceed to establish an Opium Revenue Replacement Reserve Fund for the Federated Malay States as indicated in Sir L. Guillemard's despatch No. 166 of the 25th March, 1926. §
I am, &c.,
G. GRINDLE.
* No. 216.
* No. 213.
† See paragraph 4 (c), (d), and (e) of No. 212.
+ 47448/25: not printed.
Nos. 216 and 217.
§ No. 217.
سم
C. 10740/26 [No. 3].
252