282
retardation in the growth of this reserve may properly be allowed as a measure of relief. The Unofficial Members of the Federal Council unanimously support my recom- mendation that for 1931 the contribution may be entirely suspended: and I beg that Your Lordship's approval may be signified to me by telegram.
I have, &c.,
C. CLEMENTI,
High Commissioner.
283
7. In this particular instance I feel confident that it will not take long for the tevenue, resulting from the appointment of an Assistant Resident, to more than counterbalance the expenditure involved. And with the prospect of increasing revenue for oil I think the policy advocated more than justified. Should the expected oil revenue eventuate, the question of the renewal of contributions of the Opium Revenue Replacement Fund would be considered.
I have, &c.,
C. CLEMENTI,
High Commissioner for the Malay States.
C. 72418/80 [No. 6].
No. 244.
723
FEDERATED MALAY STATES.
THE SECRETARY OF STATE to THE HIGH COMMISSIONER.
(Sent 11.15 a.m.. 1st November, 1930.)
TELEGRAM.
CONFIDENTIAL. No. 118. Your despatch of 25th September, Confidential (2).* Suspension of contribution to Opium Revenue Replacement Reserve approved 1931.- PASSFIELD.
C. 72429/30 [No. 6].
3
No. 245.
UNFEDERATED MALAY STATES (BRUNEI).
THE HIGH COMMISSIONER to THE SECRETARY OF STATE. (Received 10th November, 1930.)
(No. 115.)
MY LORD,
[Answered by No. 248.]
Government House, Singapore, 15th October, 1930.
I HAVE the honour to address you on the subject of the Brunei Opium Revenue Replacement Fund.
2. As reported in Sir Hugh Clifford's despatch No. 70 of the 20th June, 1929,† the State has continued to contribute 20 per cent. of its net opium revenue to the Fund, which on the 30th September stood at $79,240. The estimated opium revenue for 1931 is $50,000.
3. Since the date of Sir Hugh Clifford's despatch the position has altered con- siderably by the success which has attended the prospecting carried out by the British Malayan Petroleum Company Limited at Kuala Belait, and 1 understand that it is now only a question of awaiting favourable market conditions to turn the field into a definite oil producer.
4. The Company now have a European Staff of twenty-five and a native staff over six hundred and fifty working in Brunei, and, in order to control the general development arising from the Company's activities, I have agreed that it is essential to make provision for the appointment of an Assistant Resident, Brunei, in Class IV of the Malayan Civil Service, to be stationed at Kuala Belait, from 1st January, 1931. 5. The Brunei Government is unable to find the necessary financial provision for the Assistant Resident and his staff and at the same time to continue its annual contri- bution to the Opium Revenue Replacement Fund next year. In the circumstances I recommend cessation of contributions to the Fund for the present, and I trust Your Lordship will concur.
6. In my opinion it is not urgent that the less developed States should build up opium revenue reserves to the extent which would be regarded as desirable in the Colony or Federated Malay States. The less developed States are more likely to improve their future revenues by using any available surplus on revenue producing developments rather than by locking it up to replace a diminishing revenue from opium.
* No. 243.
† No. 239.
C. 72418/30 [No. 8].
SIR,
•
No. 246.
FEDERATED MALAY STATES.
THE SECRETARY OF STATE to THE HIGH COMMISSIONER. (Confidential.)
Downing Street, 12th November, 1930. WITH reference to my Confidential telegram No. 118 of the 1st November,* approving the suspension of the contribution to the Federated Malay States Opium Revenue Reserve Fund in respect of 1931, I have the honour to inform you that I agree that this course is fully justified in view of the present financial stringency.
2. It will, of course, be necessary to reconsider the position later, in the light of the then existing circumstances, in connexion with the preparation of the 1932 Estimates.
I have, &c.,
C. 72429/30 [No. 11].
No. 247.
UNFEDERATED MALAY STATES (KEDAH).
PASSFIELD.
THE HIGH COMMISSIONER to THE SECRETARY OF STATE. (Received 15th December, 1930.)
(No. 126.) MY LORD,
[Answered by No. 249.]
Government House, Singapore, 18th November, 1930.
I HAVE the honour to address Your Lordship on the subject of the Kedah Opium Revenue Replacement Fund.
2. At the beginning of the present year (A.H. 1349) the Fund amounted to $5,539,421 and the interest estimated to accrue during the year will, without any further contribution, bring the total at the end of the year to $5,822,064.
3
The opium revenue received for the first five months of the year amounted to $482,942, and if the revenue comes in at the same rate for the next seven months the total for the year will be $1,159,061 only, as against an estimate of $1,900,000.
4. As Your Lordship is aware, the Kedah Government has been adding annu- ally since 1925 the sum of $300,000 to the sum of $3,000,000 set aside out of reserves, and the whole is accumulating at compound interest. The current Estimates have made provision for the usual annual contribution of $300,000, but the British Adviser now recommends that no contribution should be made for this or future years.
5. The figure given at the end of paragraph 2 above shows that the total amount of the Fund at the end of the year will exceed three times the amount of the estimated annual opium revenue, and five times the estimated opium revenue for the current
year.
6. The cessation proposed, therefore, appears to be in accordance with the principle approved for the Straits Settlements in Mr. Amery's despatch No. 551 of the
* No. 244.
PUBLIC RECORD OFFICE
Reference :-
TPEPEC.O. 882/11
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
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