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As appears from Chapter III this magnetic iron-sand must be worked not for the production of pig-iron, wrought-iron, railway- or other structural-material but only for the manufacturing of electric steel, of the most superior quality.

This product, hard or soft electric steel, can, according to its very high value, be transported to any part of the world and may be used in every steel and iron industry as a very excellent material.

The freight of this product from Java to Europe will certainly not exceed £ 1.— per ton, including all expenses for shipment.

The construction of a Steel-Plant in Tjilatjap presents the following advantages:

1. The immediate vicinity of the enormous iron-ore regions, so that

transport is very cheap.

2. The harbour of Tjilatjap, which is well protected by the beautiful Island of Noesa-Kambangan, is the only harbour on the South Coast of Java where the largest steamers can moor oft the beach.

3. In a very short distance from Tjilatjap any amount of water-

power is available.

4. The Railway-station of Tjilatjap is situatedabout halfway between the largest Commercial towns Batavia, Soerabaia and Semarang.

5. The presence of great quantities of beautiful manganese-ore in the neighbouring Province of Kedoe, for steelmanufacture, which ore is procurable at small cost at Tjilatjap.

6. Tjilatjap harbour is an important Government Railway-coal-depot in Java. Australian coke can be obtained there for £ 1.— per ton.