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site, and also a site of sufficient area for the construction of a wharf 
or jetty at deep water to admit of ocean-going vessels loading and 
discharging in event of the factory not being erected close to the sea. 
The whole of the above were granted for the full term of the Conces- 
sion free of rent, or taxes of any kind whatsoever, and every facility 
was to be afforded by the Government of Johore to secure a sufficient 
and permanent supply of clear soft water> such as is required for 
papermaking. All machinery, tools, chemicals, or materials of any 
kind whatsoever, required for the construction of buildings, or in the 
manufacture of paper or half-stuff were to be admitted into the ter- 
ritory free of import duty during term of the Concession. ” The 
Concession also stipulated “ that not less than 1,000 tons of paper 
or half-stuff, or both shall be manufactured per annum after the third 
year from date of the Concession. The fourth year the Concessionaire 
must pay to the Government of Johore a royalty of one dollar per ton 
on all paper or half-stuff manufactured ; the fifth year two dollars 
per ton and the sixth and subsequent years, three dollars per ton.” 
The Lallang grass grows in wild luxuriance on all cleared uncul- 
tivated lands throughout the territory, and is procurable in great 
abundance on the banks of the river, thus reducing the cost of freight 
to a minimum. The rivers of the territory may be divided into three 
watersheds : The Southern, in which the first factory was to have 
been erected four or five miles to the west of the city of Johore, being 
then . the most populous ; the Western is the next in importance, 
draining the large and populous district of Muar* in which there is a 
railway constructed (at the time of granting the concession there was 
in this district 20,000 acres under banana (Musa Paradisiaca) culti- 
vation, and this material, under the very favourable local circumstances, 
it was thought could be worked up into a raw material of considerable 
value for papermaking) ; and the third watershed drains the East coast 
of the territory. The two latter watersheds were regarded of great 
importance, as available for disposing of to subsidiary companies if 
deemed advisable. The cost of cutting and delivering the Lallang at 
the proposed factory from the waste lands comprised in the Southern 
watershed was estimated at less than 10s. per ton, but the Conces- 
sionaire, when submitting this statement, preferred to estimate it at 
15s. per ton. 
From estimates obtained at the time, the cost of a complete 
mill, fitted with all the modern appliances and capable of turning 
out 3,000 tons per annum of “ air-dry” bleached half -stuff, would not 
exceed £8,000. The freight and erection of the machinery, wharf, 
buildings, fresh water supply, etc., etc., it was thought would be amply 
covered by allowing an extra £6,000. 
Lallang, it was claimed, could be delivered at a factory in Johore 
in large . quantities for one-sixth the price that esparto then com- 
manded in Great Britain, and for one-third the cost of straw in India 
or China. The cost for boiling and bleaching is about the same 
as for treating esparto, and the establishment of the industry under 
the terms of concession was regarded as possessing the following 
advantages : Unlimited quantity of fine clay for loading (free) ; a 
monopoly of all fibrous materials their territory produces, adaptable for 
