Document 2q6e32qdM2XrYnGMyDQNnXnoa

PLAINTIFF'S EXHIBIT VVV-039M The Hoa, the Premier of* Wes tern Australia, Treasury Buildings, Barrack Street,, 7th June, 1957. iuCG'i in Arbastes F" upases: Atramsje- fsor &* Hcvke, Because or the Interest which you have dis played In our project in the past, you will doubtless be interested in knowing the position as it stands ut present and X will therefore briefly set out the main features - PPOZOCTIQN; Production rat.* of fibre has increased iro& approximately 4,>oo-tons in 1955 .d d,5GG-toas in 1956 to & currant rate of 1,000-tons per month. Our aim Is to Increase output to about 17,000-tons in 1953, 25,000-tons In ' 1959 and to 35,000-tons p.a* if aidwhen the jasrket Justifies \ production of that order* 2^ lUBKia.'Ss The dcoond for our product overseas has boon/ maintained and we have enterou into an arrungotiwat to 3U*;ly / Johns-Hanvilie Corporatism or .,ev fork vitn -u-jititiea ini j cronsing to Id,000-tons p*a. over the next few years* Our j other customers ore vorlu wide -ad w* ora optimistic re- \ garding tha continuanc-# of fc-j loraaad for our fibre, "`'V. xii&i PlmffTg In order to auk* ear product competitive , with that or the African producers and to cope with the ex- j p:;ndlnw market, It has boon useossary for us to build / .mother treatment plant at oir new jainw sita, Gstiaatad costf of fcna first stage of this project is -350,000 and we cope to\ uava it in operation late ncoct y*_r. Tensors for uhv work r.5 no*: hoing l*t to Perth firms, ever roc-ant aonthn the position on vhc ^orth coast has been gmorully satisfactory a nu cUe port is j.$iag kapt reasonably cljar* .ks we expect to increase our output rapidly during the art. two years, however, we trust that every attention is ceing given by your Oeeartuoata m tUo port aau shippin f.icillties* WV-003934 fhe Hon. the Premier. Perth. .. 2 - llklii Our projected output is considered by us to be far beyond the capacity of ft. Samson and we asked some time Ego for an alternative road to be constructed between Kulga beams Station and Woodstock on the ft* Sedland road. We regard this road as most important, as It will not only allow us to divide our shipments between two ports and so save congestion at ft. Samson, but it will provide an alternative outlet should ft. Samson Jetty be again damaged by cyclone, as has occurred during the past three years. gOSIfft By incurring major capital expenditure on new plant and by increasing ouiout and sales, we are making every effort to reduce cost of production._ We are very concerned, however, about the ever increasing freights and port charges both on our coast and to overseas ports. The recent increaso in State Shipping Service freights both ways will mean a cost to us of approx. $+0,000 p.a. when we are producing at a rate of 20,000-tona of fibre p.a. as we already incur a, disadvantage of approximately i3* per ton in overseas freights to practically all world ports as compared with freights paid by our competitors, any increase in freights and charges from ft. Samson to frmantle is a serious burden. The blue asbestos mines in Africa are located up to 1,000-milas from their port of distribution but the highest overland freights from mine to port, paid by any coapary, ere 5., vherjas the equivalent cost to us is cow in excess of 15* la cocwaring our costs with those of our competitors, we therefore operate at a disadvantage of per tea of fibre on overall freight charges alone, and this is exhort!tant on material priced at *.*90 per'ten f.o.b. Fremantle. If competition in the blue asbestos business should become keener, the additional freight charges which we carry are rafflelent to oako our position untenable evsn though ve expect our direct production costs to, ultimately, compare favourably with th03-' of tho African producers. We cannot rely on increased prices to offset the continually rising costs as Canadian and'Russian fibre would replace our product if the price should rise above its true value. Russian fibre is already oenetratiag our iduropeai market and we know that thair enquiries have sxtended to Japan and other countries. Product* in ArSsntor P<*T"'> iciuprf Gas*-si r.t' J ciUo to Richard Ktocriw The Boa. the Premier* Perth r--3..,r. HOCgpHOt I am pleased to advise that all houses in Wittenoo are now occupied but we have recently had to turn away carried men seeking employment with us* The Housing Commission has agreed to build 9 houses, i.e* eight which were not completed under the original contract and one to replace the one which burnt down last year* 1 would request that construction of these houses begin at the earliest, so that aariwum stability be given to our labour force. Yours faithfully, Tot GSi'HA-LUX BLVk1 hSBiSX'OS IX-UXM. Co for - The Managing r-irector - 1. P.0* rile - 1. p}re<>tor.