On my fast visit the Administrator of the Bataafsche Petroleum Mi. in Sumatra intimated that it was the policy of his company to curtail their Jexploitation programme in East Sumatra, not only on our field, but fon otter adjacent areas as well, This {s, in my opinion, owing to the fact that abundant supplies cane obined by the BPM, from other countries considerably more cheaply than from Sumatra, owing, I presume, the question' of exchange, as the Netherlands East Indies is on the Gold Standar As you are all aware, the Ite of fan all field is very problematical; therefore, if we accept this offer from the Bataafsche Petroleum Mi}. to com= pound the present of royalties by the payment of Fi. 175,000 and. one ullder per ton applicable if, and so Tong as, the total" production. from tke. concessions exceeds the rate of 415,000 tons per annum, your directors fare of the opinion that it will be in the best interests of the company. Further, 1 wish to draw your attention to the fact that these concessions are for taken into the company's, balance sheet as an asset.
T would ike also to point out that the average of the royalties that we have received for the last 4. years equivalent to somewhat ess than 8 per cent. interest on the compound: ed' sum of Guilders 175,000 that we are now offered.
Text read from the printed page and cleaned; old type leaves the occasional error.