CO129-617-7 Development- possible implementation of CD and W Committee recommendations 18-2-1948 - 12-10-1948 — Page 28

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that, if the latter is eventually used, the capital cost of the installation will be considerably increased.

On

It was also proposed that the matured night soil, or other fertilizer produced at the factory, should be sold to the farmers at as low a price as possible in order to facilitate food production. that basis revenue should cover running costs, maintenance of the factory and the depreciation of equipment and transport. It was not intended that the scheme should show a profit.

In his covering despatch, the Governor wrote that "the significance to the Colony's economy of an ample, and particularly of a cheap, supply of fertilizer cannot be over-emphasized". The Governor was of the opinion that the price of fertilizer to the farmers was likely to be lower if the factory was run on a non-profit making basis; he added that the scheme was designed to cover its own costs.

It may perhaps be convenient to discuss this project at our meeting with the Corporation on the 13th September. We do not, of course, expect any firm decision at this stage, nor indeed do we desire it, since the Governor has not recommended that the Corporation should be approached and clearly we should have to consult him further before a decision were taken; but we should like to know whether the

Corporation