77
76
4. With regard to the legal points raised in the letter of the Malayan Collieries, Limited. I set out below the comments of the Legal Adviser with reference to each clause of the Agreement quoted in the letter:-
(a) It is agreed that Clause 7 is inapplicable to the purchase of the generating station, and it is not understood why reference is made to this clause.
(b) Although, with a strict interpretation of Clause 12, the purchase may not be necessary to develop and operate the undertaking, the average business man would not deny that the elimination of competition is very often necessary in order to develop and operate the undertaking of any particular Company.
(c) Taking Clauses 14 and 26 together, reference is made to Mr. W. S. Gibson's memorandum which formed the second enclosure to my Federated Malay States Confidential despatch of the 21st October, 1932.*
** As to whether, under the proposed purchase, the Power Company will be giving undue preference to Malayan Tin Dredging, Limited, is entirely a question of fact which could only be determined by an expert Electrical Engineer with all the facts at his disposal.
(d) It is agreed that Clause 22 does not apply to the purchase, the clause which
governs the purchase being Clause 12.
5. Subject to any comments which you or your Legal Advisers may have to make, propose to cause a reply on the above lines to be sent to the letter of the Malayan Collieries, Limited.
I
J
I have, &c.,
C. CLEMENTI,
High Commissioner.
4
13804/83 [No. 27].
No. 39.
MR. J. H. E. WOODS (TRADE FACILITIES ACT ADVISORY COMMITTEE)
DEAR CALDER,
to
MR. J. A. CALDER (COLONIAL Office).
Trade Facilities Act Advisory Committee,
Treasury Chambers, Whitehall, S.W.1, 21st July, 1933. Perak River Hydro-Electric Power Company, Limited.
BROOK, the Secretary of the above Company, called this afternoon to say that the balance on the Company's revenue account will not be sufficient to meet in full the forthcoming interest payment on the guaranteed loan and to suggest that the Treasury should put up £20,000 of the amount required.
This suggestion does not appeal to us since even partial default on an interest payment would put both the Committee and the Treasury in an embarrassing position and we accordingly suggested that the Company should consider the possibility of providing the cash required out of the unexpended balance of the prior lien issue, which amounts to some £40,000, and which is being kept in reserve for possible future capital developments.
As, however, any sum so utilized could not be replaced we hinted that if subse- quently the Company were short of cash for essential capital developments, we would bear the payment in mind in considering any proposal the Company might put before us for payment of interest at some future date. You will remember that of the £400,000 prior liens £200,000 was originally earmarked for the service of the guaranteed loan and in view of the terms of Treasury letter of the 5th January, 1931, reference F. 8720/3,* we consider that we would be entitled to agree to this payment being met from the outstanding balance without consulting the Colonial Office, but, if only out of courtesy, we think we should let you know what is under consideration.
The payment is due to be made on the 28th instant and if the Company decide to seek our consent to the utilization of the prior lien money, an immediate decision will be required.
Yours, &c.,
13304/33 [No. 25].
J. H. E. WOODS.
1
SIR,
No. 38.
THE SECRETARY OF STATE to THE HIGH COMMISSIONER. (Confidential. (4).)
Downing Street, 20th July, 1933.
I HAVE the honour to acknowledge the receipt of your Confidential despatch of the 31st of March,† forwarding a copy of a letter from Malayan Collieries, Limited, regarding the interpretation of the Agreement with the Perak River Hydro-Electric Power Company, Limited, and of your Confidential despatch of the 22nd of April,‡ submitting your comments on that letter.
2. I cannot admit that Malayan Collieries, Limited, have any standing in regard to the interpretation of the Agreement, and it would seem to be undesirable to enter unnecessarily into legal arguments on the points which they raise.
3. In the circumstances it would appear sufficient to inform Malayan Colleries, Limited, that all the points raised in their letter have been considered, and that their contentions cannot be accepted.
I have, &c.,
P. CUNLIFFE-LISTER.
13304/33 [No. 34].
No. 40.
MR. H. A. M. HUTBER (TRADE FACILITIES ACT ADVISORY COMMITTEE)
DEAR GENT,
to
MR. G. E. J. GENT (COLONIAL OFFICE).
Trade Facilities Act Advisory Committee,
Treasury Chambers, Whiteball, S.W.1, 8th August, 1933. Perak River Hydro-Electric Power Company, Limited.
WITH reference to your letter to Woods of the 24th July,† you may care to know that it was ultimately decided not to utilize the balance of the prior lien money to meet the deficiency in the interest payment due on the guaranteed loan on the 1st instant and the amount in question, viz., £19,615 was accordingly made good by the Treasury.
Yours, &c.,
H. A. M. HUTBER.
* No. 23.
↑ No. 36.
# No. 37.
* No. 12.
† 13304/33 [No. 29]: not printed.
Printed under the authority of His Majesty's Stationery Office, By METCHIN & SON, LTD. 8, Princes Street, Westminster, S.W.1.
Op. 634194/3383. 30. 5/36. (10326).
69
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