CO129-525-5 Colfix road surfacing materials 21-2-1930 - 26-5-1930 — Page 43

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The Hon. Director of Public Works,

sir,

HONGKONG.

43

Hongkong,

17th May, 1929.

Ref: 2302/19D (P.W.0.).

We have the honour to refer to your letter dated 1st February, in reference to business in our Colfix material, and subsequent to same we understand an interview took place between your Mr. Goldsmith and our manager, Mr. W. N. Fleming, with the result that a further test was arranged. The test referred to took place some considerable time ago now, and we would be glad to hear if you are yet in a position to give us a report on the results obtained.

In connection with this business generally, we fear we must express disappointment at the support which has been extended to us by the local Authorities since Colfix (Far East) Ltd. was incorporated in Hongkong early in 1927. We are of the opinion that, in view of the keenness of local Government officials to develop local industries, more support might have been extended to us than has actually been the case. We under- stand, of course, that for some reason or another the various small intermittent tests which have been made have not proved quite up to the satisfaction of those in charge of the Road Departments, but it is somewhat difficult for us to reconcile results obtained in Hongkong with those which we have obtained in very many other markets. For instance, we have put through large business this year in the Federated Malay States, in Indo- China, in Shanghai, In Kwangtung Province, in Tientsin and also smaller quantities in Java, Philippine Island, Chefoo, Dalny and other different markets. We think, therefore, you will agree that, if satisfaction has been obtained in so many markets, as outlined above, not forgetting the enormous world-wide demand for our Cold Emulsion, surely similar satisfaction could be obtained in this Colony.

We regret if we are troubling you unduly in this matter, but no doubt you will understand that, not only from our own point of view, but from the point of view of promoting British industry in this Colony, it would assist our business quite a lot were we in a position to inform prospective customers that we had the support of the Government in Hongkong.

We understand you are already in touch with what overtures have been made in the past between the P.W.D. and ourselves, but to put the matter on record, we would just state that the original interviews wereheld with Mr. Goldsmith and Mr. Pegg, and in the course of two years the total gallonage sold to the P.W.D. in Hongkong has not exceeded 1,000 gallons.

In our letter dated 3rd August last year, wo intimated that we were then in a position to reduce our price to 40 cents per British Imperial Gallon, but as in the interval a very large working arrangement has been made between our Parent Co. at Home and the Standard Oil Co. of California, we are now enabled, through this solid backing, to quote a lower price, and therefore can offer today at 35 cents per gallon, barrels to be charged up on invoice at cost, i.6. $4 each, and credited in full when returned to our godown.