CO129-467 - Governor Sir Stubbs & Acting Governor Claud Severn - 1921 [1-5] — Page 384

Sir,

(Copy letter enclosed)

FORESTRY DEPARTMENT.

Sandakan, British North Borneo, 22nd April, 1920.

On January 18, 1920 a timber concession was granted by this Government to the British Borneo Timber Co., Ltd. for the term of at least 25 years to cut timber on all State lands which are not alienated.

Among other things the agreement states definitely that upon expiration of existing timber licences no renewals will be made except for yearly renewals to cut timber for local consumption only.

The President,

Sir,

I have the honour to be,

Sir,

Your obedient servant,

(sd.) D. D. WOOD.

Ag: Conservator of Forests.

Government Secretary's Office, Sandakan, 8th June, 1920.

The Chinese Chamber of Commerce,

SANDAKAN,

I am desired by His Excellency the Governor to acknowledge the receipt of your letter of May 7th, written on behalf of certain Chinese Timber Companies, and to express regret that his absence in Manila has delayed this reply.

2. You will no doubt have heard from Messrs, Sing Kee that the order of the Conservator of Forests has been modified as re- gards their licenses which have been extended, in order 10 enable them to close up their business over a terin of years without loss.

3. The matter of the timber licenses of Kim Eng Watt is now

receiving His Excellency's attention and the Chamber may rest assured that their respresentations will be met in a spirit of justice.

4. It appears that Mossrs. Yong Soon only commenced their tim- ber business in January of this year when they received a licenco on their guarantes to put out 5000 cubic feet per month. This guarantee has not been fulfilled, and their licence will expire automatically on 31st December, 1920.

5. No licence appears to have been issued to Messrs. Yee Yee and Company, but Mr. Tan Ah Chong, the owner of annual licence 12/20 made application to the Forest office to transfer his licence to Mesars. Yee Yee & Company. His Excellency is informed that the application was not granted as the firm was not known to the Conservator.

6. It thus appears that no hardship will be caused to Messrs. Yong

Soon or Yee Yee by the non-renewal of their licences.

7. Although the action of the Court of Directors in granting the sole right of exporting timber to Messrs. The British Borneo Timber Company may at first sight appear to react hardly on the firms mentioned in your letter, there can be no doubt that, the introduction of a Company with unlimited financial resources cannot fail to benefit Sandakan and the Chinese traders. Signs of increased business activity are already apparent in several directions, and His Excellency is hopeful and confident that the Chinese traders of Sandakau will reap much of the prosperity which is bound to follow the introduction of so much fresh capital into the State.

I have the honour to be,

Sir,

Your obedient servant,

(Sd.) G. SUMMMERFIELD.

Private Secretary.

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