FEDERATED MALAY STATES.
31
PAPERS
(September, 1930– August, 1933)
RELATING TO THE
PERAK RIVER HYDRO-ELECTRIC POWER CONCESSION.
C. 72367/A/30 [No. 80].
No. 1.
THE HIGH COMMISSIONER to THE SECRETARY OF STATE. (Received 6th October, 1930.)
(Confidential.) MY LORD,
[Answered by No. 7.]
King's House, Kuala Lumpur,
11th September, 1930.
I HAVE the honour to refer to my telegram of the 17th July* in which I asked Your Lordship to defer taking action as to the appointment of an independent investi- gator into the financial affairs of the Perak River Hydro-Electric Power Company, pending the receipt of a despatch with full details. Before setting forth the financial position of the Company as revealed after full and detailed investigations of facts and figures at various conferences between my financial and technical advisers and Sir Arnold Gridley, a Director of the Company's Board in London, I shall, for Your Lord- ship's convenience, briefly review the position of affairs and the action taken by this Government since approval was given for a loan of £850,000 to the Company in January last.
2.-(i) In a telegram of 27th December, 1929,† Your Lordship was informed that this Government agreed to the grant of a loan of £850,000 to the Company on the conditions set out in Your Lordship's telegrams of 26th November‡ and 10th December, 1929.§
(ii) In a further telegram of 5th January, 1930,|| addressed to Your Lordship. grave doubts were expressed by this Government as to whether the £850,000 loan would actually cover the cost of completing the existing scheme and a definite assurance was asked for that no further sum than the £850,000 would be necessary. Doubt was also expressed as to whether the Company would have sufficient funds available to meet the interest charges on debentures and loans as well as operating and administrative expenses during 1930, and it was definitely stated that this Government could not agree to advance any further sum to meet any deficiency in revenue. The request for an investigation by independent accountants was again emphasized.
(ii) No reply having been received to this telegram, this Government in a telegram of 19th February¶ again inquired if the Company could give the assurance that no further sum than £850,000 would be required to complete the construction of the existing scheme.in toto.
(iv) On the 27th February Your Lordship telegraphed** that the assurance asked for was a matter dependent to some extent on estimates, that a memorandum by Mr. Pountney would follow by mail, and that his conclusion was that if all goes well the amount lent should be just sufficient to enable the Company to reach the self- supporting stage. Your Lordship also promised to look for a suitable investigator, as it was presumed that this Government still desired an investigation into the Company's financial proceedings and prospects.
(v) Pending the receipt of the promised memorandum I instructed the Treasurer, Federated Malay States, to prepare a concise statement of the Company's probable finan- cial position in 1930 and 1931, based on present sale of power and taking into con-
* C. 72367/A/30 [No. 72]: not printed.
C. 62367/29 [No. 155]: not printed.
C. 72367/30 [No. 3]: not printed.
† C. 62367/29 [No. 181]: not printed.
§ C. 62367/29 [No. 166]: not printed.
¶ C. 72367/30 [No. 44]: not printed.
** C. 72367/30 (No. 48]: not printed.
TOBLU
RECORD OFFICE
།། ༄། ། ། །
Reference :-
C.O.882/12
PUBLIC RECORD OFFICE, LONDON
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