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C. 92302/32 [No. 74].

68

No. 29.

THE HIGH COMMISSIONER to THE SECRETARY OF STATE

(Paraphrase.)

(Received 11.59 a.m., 31st December, 1932.)

TELEGRAM.

SECRET. 31st December. Your telegram dated 22nd December,* Perak River. Although on the figures before me I very much doubt whether abstention by the Treasury from the enforcement of payment in respect of Sinking Fund and by the Federated Malay States Government from enforcement of payment of interest on loan until 1937 will suffice to keep the Company in operation until that date, I realize that the Company may have supplied you with fuller information in support of its opinion in addition to that which is available to the Government of the Federated Malay States; and as indicated in my telegram dated 10th December,† I will not oppose the suggested arrangements provided that the Treasury and yourself are satisfied that they will enable the Company to survive and that they will not legally or financially prejudice the position of the Government, and provided further that in the event of adverse criticism of the purchase which on the information before us neither I nor my advisers consider to be in the best interests of the Federated Malay States Government I can let it be known that full responsibility is accepted by you.-Ends.

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8. On the question of the granting of Leases to the Company of lands or way- leaves required for the purpose of its business, the provisions of Clause 1 (5) of the Concession are definite, namely, that all State lands that may be required by the Company for the purpose of the works shown on the preliminary or final deposited plans, or for any other works or purposes approved by the Government, shall be leased to the Company for the period of the Agreement free of any charge whether by way of premium or rent, but subject to the payment of the prescribed survey and registration fees. This imposes a duty on the Government to grant the Leases, subject to the pay- ment of the prescribed survey and registration fees, and we think the Government should give notice to the Company that they are prepared to grant all such Leases, subject to the payment of the survey fees, and leave it to the Company and its Debenture-holders to come to any Agreement they may think fit as to whether or no they will pay the survey fees and take up the Leases.

9. In our judgment the Government has no concern with any questions arising between the Debenture-holders and the Company; these are purely domestic matters which must be settled between the parties concerned, and all that the Government has to do is to grant the Leases after the surveys have been paid for and completed.

We are, &c.,

BURCHELLS.

4

+

C. 92302/32 [No. 75].

No. 31.

RECORD OFFICE

i

Peference -

C.O.882/12

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- JoovYRIGHT PHOTOGRAPH-NOT TO||

PUBLIC RECORD OFFICE, LONDON

13304/1/33 [No. 1].

No. 30

MESSRS. BURCHELLS to COLONIAL OFFICE.

SIR,

5, The Sanctuary, Westminster, S.W.1, 2nd January, 1933. We have now carefully perused the enclosures to your letter of the 21st ultimo,‡ and have also referred to the Agreement between His Highness the Sultan of Perak and Messrs. Armstrong, Whitworth, and Company, Limited, and its Appendix, and the Concession dated the 5th November, 1926, subsequently granted to the Company.

2. In our judgment no such undertaking should be given to the British Treasury as is asked for in paragraph 3 of Mr. Bamford's letter of the 10th February, 1932, § as we agree entirely with the views expressed in paragraph 16 of Memorandum I of the Legal Adviser of the Federated Malay States.

3. The rights and liabilities of the Government of the Federated Malay States, of the State of Perak, and of the Company, are fully set out in the Concession, and we should consider it most inadvisable under the complicated conditions existing to give any undertakings which would extend or vary the terms already arranged, and thus add to the complications and possible conflicts of interest which already exist.

4. With respect to the paragraph in the despatch from the High Commissioner of the 3rd November, 1932,¶ commencing with the words "The question of the possible reconstruction of the Company," we have, as requested in that paragraph, carefully considered the provisions of Clauses 21, 23, and 31 (3) of the Concession.

5. Under Clause 21, it would appear that the Government of Perak can with. hold its consent to any proposed assignment of the Company's rights, except in the case of an assignment following on the reconstruction of the Company.

6. Clause 23 would appear to be dependent upon the Company being desirous of abandoning its rights. It would not apparently come into operation on the Company going into liquidation, or upon a Receiver being appointed on behalf of any body of Debenture-holders or other Creditors.

7. Clause 31 (3) is definite and empowers the Government to declare the Agree- ment null and void in the event of the Company completely failing to produce and supply electricity for a continuous period of 12 calendar months.

'No. 28.

† No." 25. ‡ No. 26. § C. 92302/1/32 [No. 1]: not printed.

Enclosure 1 in No. 24.

¶ No. 24.

SIR,

of

COLONIAL OFFICE to TREASURY.

Downing Street, 6th January, 1933.

I AM directed by Secretary Sir Philip Cunliffe-Lister to acknowledge the receipt your letter of the 22nd December, No. F. 8720/4,* and to request you to inform the Lords Commissioners of the Treasury that he notes the conditions on which Their Lordships are prepared to contribute towards the service of the Guaranteed Stock of the Perak River Hydro-Electric Power Company, Limited, and that, in view of Their Lordships' undertaking, he assents, on behalf of the Government of the Federated Malay States, to the proposals of the Perak River Company which were submitted in your letter of the 8th of July, No. F. 8720.†

&c.,

18304/33 [No. 4].

No. 32.

COLONIAL OFFICE

to

1 am,

H. R. COWELL.

THE PERAK RIVER HYDRO-ELECTRIC POWER COMPANY, LIMITED.

GENTLEMEN,

Downing Street, 12th January, 1933.

I AM directed by Secretary Sir Philip Cunliffe-Lister to refer to your letter of the 7th of July, 1932,‡ and to inform you that, on behalf of the Government of the State of Perak, Federated Malay States, whose approval is required in accordance with the terms of your Concession, and in particular with the provisions of Clause 12 thereof, he approves of the acquisition by you of the electricity generating station of the Malayan Tin Dredging Company, Limited, together with the transmission lines con- pecting their property with that of the Southern Malayan Tin and Dredging Company.

I am, &c.,

H. R. COWELL.

* No. 27.

† No. 20.

‡ No. 19.

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