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DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERNMENT

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SECRET

C.P.(49) 232

COPY NO.31

11TH NOVEMBER

1949

CABINET

THE EAST AFRICAN GROUNDNUTS SCHEME

Memorandum by the Secretary of State for the Colonies

After studying the paper circulated by the Minister of Food (C.P.(49) 231), I think that he is right in recommending that the groundnuts scheme should go on. I agree fully with his reasons for taking this view, In particular, I strongly endorse what he says in paragraph 19 of his memorandum, It would in my view be a most grave decision to abandon the scheme before it has had a long enough trial The operations in Africa have been going on for less than three years and the Corporation itself has been responsible for only just over eighteen months. In the early stages the scheme was hampered by lack of experience of large-scale bush clearing in Africa, by the necessity to use secondhand clearing equipment, by severe climatic conditions and the setting of unattainable targets, and by the emphasis on the need to produce large amounts of groundnuts quickly to help meet the general shortage of oilseed. As a result of the experience gained so far clearing costs have already been greatly reduced and will, we hope, be reduced further, Agricultural operations are not even yet on a large enough scale to make any precise estimate of the economics of the scheme possible. In my view it must be carried on for a further period and on a large enough scale to make a useful judgment possible at the end of that period: the mere carrying on of pilot schemes in the three areas would not be sufficient,

2.

For this reason, I think that the scheme should proceed during the next four years on the general lines proposed by the Corporation and the Minister of Food. This plan involves a very heavy cut both in the acreage to be cleared and in the capital investment in the scheme up to 1954. Without expressing an opinion on the actual figures it is clear that any further cut in the acreage below the fig

igure suggested by the Minister of Food would increase the burden of overheads and thus reduce the chances of ultimate

success.

3.

I warmly welcome the Minister of Food's suggestion in paragraph 27 of the memorandur that there should be regular consultation between the Corporation and my agricultural advisers on the technical aspects of the scheme. I hope that this can cover not only crop rotation and selection, so that the possi- bility of a greater degree of diversification of crops can be considered, but also the general organisation of production so that the experience which my agricultural advisers have gained of methods of mechanical cultivation can be drawn upon. In Tanganyika itself the liaison between the Corporation and the TangPage632of4097ent is satisfactory both Page32f1097 agricultural matters and in other fields.

Colonial Office, S.V.1., 11th November, 1949.

A.C.J.

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