asked the Secretary of State for the Colonies whether he is aware that certain rubber companies hold land in British North Borneo on lease with the right to export rubber free of tax; that a tax has been imposed in contravention of the lease; and what action he proposes to take in the matter.

Yes, Sir. I have received representations from certain rubber companies, which enjoyed exemption from export duty on their rubber under their leases with the British North Borneo Chartered Company. The British Military Administration imposed the tax which has since been continued by the Civil Administration. I am consulting the Governor of North Borneo regarding its removal and the institution of some alternative form of taxation on the rubber industry.