PUBLIC RECORD OFFICE
Reference :-
C.O. 882
8
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
51467
B
No. 29.
SIR M. F. OMMANNEY (FOR THE SECRETARY of State) to GOVERNOR SIR C. BRUCË. [Copy to Crown Agents; December 24, 1902: 31467: not printed.]
(No. 311.)
[Answered by No. 58.]
SIR,
Downing Street, December 23, 1902. I HAVE the honour to acknowledge the receipt of your telegrams of the 7th and 14th instant,* recommending that a loan, not exceeding 3,000,000 rupees, should be raised in this country for the assistance of the planters during the present crisis in the sugar industry.
2. For the reasons set forth in Mr. Chamberlain's despatch, No. 64, of the 6th- of April. 1898,† I have felt much reluctance in agreeing to your proposal, but I assume that the conditions laid down in Mr. Chamberlain's telegram of the 18th of March, 1898,† are fulfilled in the present case also, and on this assumption I have informed you, in my telegram of the 17th instant, that the loan is sanctioned.
3. The period of the repayment of advances is to be spread over two or possil ly three crops, instead of one, as in the previous case. Your telegram of the 14th instant explains that this is necessary, in order that there may be sufficient margin out of the proceeds of the first crop to facilitate the adjustment of outstanding liabilities to financial institutions, and enable the latter to afford assistance in the usual manner. I raise no further objection to this proposal, but such an extension of the precedent can only be justified by a more critical state of affairs than that which existed in 1898. 4. With regard to the proposed loans to financial institutions, to enable them to make advances to planters, I think it necessary to take every precaution to prevent the institutions from making inordinate profits out of funds lent to them by the Government. This can be secured by your refusing to sanction advances by the institutions to planters except on reasonable terms.
5. I understand that the present loan is to be raised in the same manner as the loan for enabling the planters to provide themselves with mechanical means of traction. The debentures will, however, be for a much shorter term. I learn from the Crown Agents that the remarks in their letter of the 22nd September, a copy of which accompamed Mr. Chamberlain's despatch, No. 235, of the 23rd of September, apply generally to the further loan now proposed.
I have, &c.,
1199
M. F. OMMANNEY, (FOR THE SECRETARY OF STATE).
No. 30.
GOVERNOR SIR C. BRUCE to THE EARL OF ONSLOW (FOR THE SECRETARY OF STATE). (Received 4.27 p.m., January 9, 1903.) TELEGRAM.
Referring to your telegram of 17th December,* Loan Law sent home by mail 27th December. Will you be good enough to instruct Crown Agents to place, by telegraphic transfer, Rs. 200,000 in National Bank of India, Bombay, to meet draft drawn by this Government in favour of Bank of Mauritius? The money to be raised by sale of securities or issue of short bills in anticipation of loan. Applications for loan close on January 10. Will telegraph, as soon as possible, respecting further demands.
1199
GENTLEMEN,
No. 31.
COLONIAL OFFICE to CROWN AGENTS.
[Answered by No. 38.]
Downing Street, January 10, 1903. WITH reference to the letter from this Office of the 24th ultimo,**I am directed
§ No. 27. No. 14.
* Nos. 25 and 27. ↑ Not printed. ‡ No. 28.
** 51167: not printed. It transmitted copies of Nos. 25, 26, 27, 28 and 29.
L.F.
37
to transmit to you copy of a telegram* from the Governor of Mauritius, and to request that you will remit 200,000 rupees to the National Bank of India, Bombay, by telegraphic transfer, as desired by the Governor.
1487
SIR,
(No. 447.)
No. 32.
I am, &c.,
H. BERTRAM COX.
GOVERNOR SIR C. BRUCE to MR. CHAMBERLAIN.
(Received January 12, 1903.)
[Answered by No. 50.]
Government House, Mauritius, December 12, 1902. WITH reference to my telegraphic despatch of the 7th instant, on the subject of a loan to be raised for the purpose of making advances in assistance of the sugar industry, I have the honour to submit the following considerations:—
2.
On the 16th September last, the following resolution was moved in the Council of Government by Mr. L. E. Antelme:-
"That the loan which the Home Government is willing to place at the disposal of planters for tramways be also used for the general wants of agri- culture, the loan being made on the same basis as the loan of 1902."
The resolution was opposed by the unofficial members of Council, who can speak with best authority on the question whether the financial position of affairs in the Colony is such as to justify interference on the part of the Government with the methods by which the ordinary business of the banks and financial agencies is carried on, and funds are placed at the disposal of planters.
On a division the motion found only two supporters, the proposer and seconder. I enclose a copy of the debate
3. In view of the serious consequences following the epidemic of surra, the Government gave every assistance to facilitate the substitution of mechanical for animal transport, and the Ordinance to enable advances to be made to planters for this purpose was proceeded with and passed on the 5th instant as "The Mechanical Transport Loan Ordinance, 1902.”
4. On the 25th of November last a fresh resolution was moved in the Council of Government by Mr. G. Gébert, in the following terms:-
"Considering that the Colony is passing through a most acute financial crisis, caused chiefly by the epizootie on draught animals, the reduction in the selling prices of sugar, the difficulty of its disposal at a remunerative price, &c. That the sugar industry, and, in consequence, commerce, suffer con- siderably by such crisis, which threatens to have disastrous consequences, and to endanger the next crop and the future of the Colony, unless funds are imme- diately placed at the disposal of agriculture.
"The Council of Government is of opinion that His Excellency the Governor do ask the Secretary of State to kindly agree to a loan of £200,000, concurrently with the loan for the tramway, at the same rate of interest, to be refunded in long terms and to be floated by this Colony in aid of agriculture." After long discussion the resolution was amended, and in the following form I accepted it as the unanimous expression of opinion of the unofficial members:-
'Considering that the Colony is in presence of great financial difficulties, caused chiefly by low prices of sugar, the reduction of the crop of this year, which has been brought about by two cyclones, followed by a severe drought and the disease on draught animals, which has increased the cost of cultivation and manufacture;
44
-
That the sugar industry, and, in consequence, commerce, suffer consider- ably by such crisis, which threatens to have disastrous consequences, and to endanger the next crop and the future of the Colony;
<
The Council of Government is of opinion that the Government of the Colony should, besides the assistance promised in order to enable planters to
• No. 30.
† No. 25.
+ Not reprinted.
F