Page 280 and the Administration were all bad. To-day they are all pretty good. The loyalty of the Africans is very high. They are overwhelming against incorporation and cling to their allegiance to The King, as they pointed out in every single public speech they made to me. The only exceptions are a very few Africans in posts in which they would be paid at a higher salary in the Union. Salaries are commonly higher in the Union, but this consideration influences only a handful of people. I think the great majority of the Europeans are also against transfer.
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13. The change in the temper of these Territories is partly due to the direct interest taken in them by the High Commissioner, who has frequently visited them, understands their problems, and personally knows many Africans and Europeans. It is essential that future High Commissioners should take the same interest. It is also desirable that the Secretary of State should sometimes visit the Territories. The population is inclined to feel isolated and ignored, and much appreciates any concern shown by His Majesty's Government. A firm attitude on transfer to the Union has also raised the morale of the Territories.
14. Another main cause of the general good feeling lies in the recent plans for economic development. About £1 million is being spent on each of the three Territories out of the Colonial Development and Welfare Fund. This is being spent in the main on raising the basic wealth of the Territories-(e.g., on water supplies and anti-soil-erosion work). At the same time the Colonial Development Corporation has undertaken some very important projects. In Swaziland there is a big afforestation scheme that should yield considerable dividends in 12 to 15 years. Previous experience in afforestation makes this project a very safe investment. The Corporation is also developing a big irrigated farming project pioneered by private enterprise in the north of Swaziland. In Bechuanaland there are two schemes- one for mixed farming and cattle-raising in the North; one for an abbatoir in the South. The abbatoir seems very sound economically, as it will enable stock to be killed at its prime and sent to market in South Africa where it can fetch good prices; there should be a sufficient through-put of cattle to sustain it comfortably. The other scheme in the North seems sound, but I am looking into it again in order to be as sure as one can. By these means the Government revenue in each Territory should steadily increase and permit schools, hospitals, &c., not only to be started but to be adequately sustained.
15. The High Commissioner's aim, with which I wholly agree, is to find in each Territory some new major economic resource and develop it so that each Territory may become largely self-sustaining and much less dependent upon send- ing workers to the South African gold mines. In Bechuanaland (ranching) and Swaziland (timber) this policy is being carried out. But in Basutoland there is no corresponding potential resource. The only hope here is to dam the source of the Orange river, build subsidiary hydro-electric dams and sell water and power to the Union. This would be a costly undertaking, and it might arouse political difficulties as it concerns the headwater of one of the main South African rivers. It would enable the Orange river to be made silt-free and would remove one of the Union's best arguments for the incorporation of Basutoland. (This project-which has been carefully explored and checked-is still confidential, the Union Government is aware of the investigation, but the timing and handling of any official approach to them will be a delicate question.)
16. The major immediate problem in Basutoland and Swaziland is soil-erosion. Excellent work is being done by our officials. But only if this work is stuck to and pushed ahead, with adequate funds, can soil-erosion be conquered. If it is not, the two Territories will be economically ruined Successful anti-erosion work depends upon the goodwill of the Chiefs and headmen: the whole work can go to pieces unless a large number of minor infringements of the law are promptly punished (e.g., breaking down a contour furrow or ploughing in a grass-strip). Only the Native Courts can look after this. Their powers are being steadily increased, and African co-operation in this work is steadily improving. The most difficult task still lies ahead, which is to persuade the people to de-stock. Every- where there is serious over-grazing which kills out the grass by preventing re-seed- ing. It is hard to persuade these Africans, who regard cattle as wealth, that their wealth will increase by reducing their stock. It is like persuading our people of the benefit to themselves of a wage and dividend freeze.
Page 280Th€ 58mmediate problem in Bechuanaland besides destesking) is the provision of water both by surface dams and bore-holes. The head of cattle that
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