Document Exo8kvwMzYR47RZ2BwvkME20b

produced *A**JS5SaS* Australian Blue Asbestos Pty. Limtied .S'.'TP ? mtSUcXKRKttFFiNiNO Company limitto Utrtwt, Hwnuy* mm 40. 8.P.O.. tsmk*. #wnuu M1MB * MILL* CHB*JAP The General Superintendent, /* Australian Blue Asbestos Fty.Ltd., PERTH,, / I 6^011*7* o4 t. Ho. 172. ^ 17th January, 1962* Deer Sir, TTBP* RtT.ffg. Mr. Thomas* Report on Markets. i Ve here reed Hr. Thomas* report with Interest sad It is pleasing to note that the expansion in the asbestos cement industry in Eastern countries is continuing at a high level. Regarding the formal appointment of Tokyo Tsnsko Kaieha Ltd. as oar agents in Japan, vs sgree that it may be advisable to take this step. We hare always agreed however that Alliance Shippers & Industries Ltd eooid also sell our fibre end it voold sees preferable to adhere to this in any arrangement and. ve voold appreciate your views before ve take any action. Vs are not elear on vhat the estimate of future markets is based but your figures would seem to be optimistic. In any number of asbestos cement factories ve believe that our share of the market will not exceed 10% of the total fibre used. If this is correct the total increase in asbestos usage in Eastern Countries based on your figures voold be at least 250,000 tons per annum by ths end of 1965* Although ve have taken steps to have blue asbestos included in the new U.S. Barter Programme it is unlikely that ve will make a deal unless ve can be more or less easaxcd of cheaper freights or mavings in other directions. This decision could drastically affect the available market. Regarding increased production it is unlikely that ve voold be prepared to provide capital for major expansion daring the next two years unless there is a marked change in overall economic prospects. It will cost 250,000 to overcome the dust problem and to provide tailings disposal equipment. Other incidental vork costing at least 100,000~vlll be necessary before any expansion programme can be undertaken. We believe, 3. I hwever, that mill efficiency and production rate ean be improved-sad Anatralian Blue Asbestos Pty.ttd. 2* P. Bo. 172. 17th January, 1962 that derelopaent ot suitable bulldozers for underground use could overtone a lot of our aialng probleas. During the next tvo years eaphasis oast be plaeed cc iaproeeaeuts of this nature. Tours faithfully. pro Managing Director,