FRENCH ENTERPRISE.

Manawatu Herald, Volume XLI, Issue 2045, 23 October 1919, Page 1

FRENCH ENTERPRISE.

SYNDICATE IN AUSTRALIA. PURCHASE OF STATE SAWMILLS. A discussion recently arose in the Legislative Assembly of.. West Australia regarding the proposed sale of the State sawmills to a American syndicate.

The Minister for Works, Mr George, said France began to investigate timber matters in West Australia in 1913. In 1917, owing to the urgent necessity of the rebuilding through war ravages, Colonel Mathcis, French Conservator of Forests, came out and conferred with the Forest Conservator, and forests were inspected. In August, 1919, Messrs Dutillcu and Ghyselinck, directors of a syndicate which had a capital of £BO,OOO, arrived. After investigations they offered £285,000. Mr George replied, asking £425,000, under terms and conditions •subject to ratification by Parliament.

On August 30th the directors wrote accepting the terms, and returned to France to obtain the sanction of their Government to the transfer of the large capital required. Mr George then asked for 5 per cent, deposit. The directors responded with £2,000 for an option till November 30th. This money had been.paid, and formed no part of the purchase price. The directors were to pay £.15,000 as deposit to the Agent-General in London before this option expired. The next payment would be £IOO,000 on April 30th, 1920. The balance of the purchase money would be spread over two years, from June, 1920, at three months intervals, and carrv (if per cent, interest. 1 ntil this £IOO,OOO and all money due to the Government for working capital was paid the purchasers would exorcise no control. Ihe Government would carry on the work on behalf of the purchasers till June, 1920. If Parliament approved, a contract of sale on these terms would be completed. If any default occurred the Government would carry on as heretofore.

No freehold or leasehold land would be conveyed to thu.purchasers, who would operate om permits subject to the same terms and regulations under’ the forestry regulations as other mills. The staff and employees of the State sawmills would be continued in employment. The Minister added that the entrance of this French firm into the timber business would expand the markets, increase trade, and introduce new capital, for the funds required for working the mills would probably amount to £250,000 additional. Another factor was that shipping would be assured.