400 
(a)  I'hc  inability  of  tlie  small  settler  to  prepare  his  product  in 
such  a manner  ks  to  command  remunerative  prices  , 
{d)  The  difficulty  experienced  in  disposing  of  his  produce  in  the 
best  markets. 
The  second  of  tliese  two  factors  is  to  some  extent  dependent 
upon  the  first,  but  the  extra  cost  entailed  in  making  small  ship- 
m'ents,  the  want  of  accredited  agents  at  the  tetminable  markets — such 
as  exist  among  European  firms,  the  absence  of  combination  and 
the  ignorance  of  the  native  in  commercial  matters  generally,  must 
also  be  taken  into  consideration.  I may  mention  that  quite  recently 
a case  came  under  my  notice  where  a Malay,  after  preparing  some 
eight  to  ten  pikuls  of  sago  flour,  had  to  take  it  personally  to  Singa- 
pore in  order  to  obtain  a fair  price  for  it.  He  might,  of  course, 
have  disposed  of  it  on  the  spot  to  a Chinaman,  but  at  a ridiculously 
low  figure. 
4.  In  support  of  my  contention  that  indolence  alone  does  not 
account  for  the  present  state  of  affairs,  I would  instance  the  fact — 
well  known  to  you — that  some  five  years  ago,  when  the  cultivation 
of  coffee  was  considered  a remunerative  employment,  there  were 
many  thousands  of  acres  under  this  cultivation  in  the  Klang  district 
alone  ; practically  the  whole  of  which  has  been  abandoned  since 
the  decline  in  the  price  of  this  commodity,  and  I therefore  incline 
to  the  belief  that  if  there  was  a good  prospect  of  a ready  market 
at  fair  prices,  the  native  ^'ould  be  ready  and  willing  to  cultivate 
his  land. 
5.  This  brings  me  to  my  proposal,  which  is  roughly  as  follows  : — 
(1)  Government  should,  by  the  aid  of  a grant,  assist  in 
the  erection  of  modern  machinery  for  the  preparation 
on  the  most  approved  principles  of  the  particular  pro- 
duct or  products  it  is  decided  to  foster  ; 
(2)  The  person  or  persons  in  consideration  of  such  finan- 
cial assistance  would  enter  into  agreement  with  the 
Government — furnishing  securities — to  take  the  whole 
of  the  crop  grown  on  a definite  area  for  a specified 
term  ; 
(3)  The  area  from  which  the  crop  is  produced  and  the 
number  of  years  for  which  the  agreement  holds  good — 
which  should  not  be  less  than  five — would  depend  on 
the  amount  of  the  bonus  ; 
(4)  The  cultivator  should  deliver  his  crop  at  the  mill  and 
be  paid  cash  for  the  same  o?i  delivery ; 
{5)  The  market  price  for  the  raw  product  should  be  fixed 
Aveekly  by  Government  and  accepted  by  all  concerned. 
The  above  are  the  salient  features  of  a scheme  which  I do  not 
for  a moment  claim  to  be  complete  or  original,  but  it  is  unnecessary 
here  to  go  into  the  numerous  details. 
6.  The  grant  made  by  Government,  whether  in  the  lorm  of  a 
lump  sum  towards  the  erection  of  the  machinery  ora  fixed  sum  per 
annum  so  as  to  enable  the  Manager  to  pay  cash  for  the  raw  product, 
