FO371-31667 — Page 103

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conducted a full inspection of the company and the report prepared as a result has now come to hand (in F 3986). The covering letter points out that from this report "it seems to be reasonably clear that the directors were pretty well aware that Nathan was proposing to keep the mines running and that they were not going to veto the proposal

If they had wanted to stop Nathan the time to have done it was in September, but they certainly took no action in that respect". The Trading with the Enemy Branch state, however, that there is little in the report on which they can base action against the company. They are looking into the possibility of putting in a controller, but are awaiting our views (after study of the inspector's report) before deciding.

Rawal.

1st June, 1942.

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