PUBLIC RECORD OFFICE
Reference :-
C.O. 882
8
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
23625
SIR,
222
No. 185.
MR. LYTTELTON to ACTING GOVERNOR SIR G. BOWER.
(Confidential.)
Downing Street, July 16, 1904.
I HAVE the honour to acknowledge the receipt of your confidential despatch of the 26th of May,* and to inform you that I approve the action which you have taken with regard to the repayment of money borrowed under the Advances-in-Aid Ordinance.
26148
SIR,
No. 186.
I have, &c.,
ALFRED LYTTELTON.
ACTING-GOVERNOR SIR G. BOWER to MR. LYTTELTON.
(No. 208.)
(Received July 25, 1904.)
[Answered by No. 189.]
Government House, Mauritius, June 8, 1904.
WITH reference to the telegraphic despatches, † noted in the margin, I have
Officer Administering the Government, Telegram, 11 April, 1904.
Secretary of State, Telegram, 28 April,
1904.
Officer Administering the Government, Telegram, 29 April, 1904.
Officer Administering the Government, Telegram, 10 May, 1904.
Secretary of State, Telegram, 12 May, 1904.
the honour to transmit, for the signification of His Majesty's pleasure, Ordinance No. 2 of 1904, entitled an Ordinance "To authorize the postponement of the instalments of the advances under the Advances in Aid Ordinance, 1902.”
2. I also enclose a copy of the Procureur- General's explanatory report on the Ordinance. 3. The applications for postponements are now being considered by the Loan Board as required by Article 3 of the Ordinance, and I hope to be in a position to address you on the subject at an early date.
(No. 399.)
I have, &c.,
GRAHAM BOWER, Administering the Government.
Enclosure 2 in No. 186.
EXPLANATORY REPORT ON ORDINANCE No. 2 of 1904.
June 6, 1904. This Ordinance was introduced with the sanction of the Secretary of State in order to allow the instalments on the advances made to planters under the Advances in Aid Ordinance No. 43, of 1902, and due 30th June, 1904, and 30th June, 1905, respectively, to 30th June, 1905, and 30th June, 1906.
It may be as well to set out the instructions received from the Secretary of State, as they form the basis of the Ordinance, and it has been drafted in accordance with them:-
"Your telegram of 11th April. After full consideration of question I am prepared to approve following arrangements, payment of each instalment may be postponed for one year on express condition that repayment of advances will be first charge on proceeds of sales to Government for reafforestation, and also that same procedure should be followed in case of application for postponement as was followed in case of original application for advance, and that Officer Administering Government must have absolute discretion to refuse an application for postponement. As soon as the necessary Ordinance has been passed will communicate with Crown Agents as to raising under it of funds to pay off on 1st August next debentures which then mature by issuing other debentures for £101,200 repayable on 1st August, 1906, or arrange for further currency of present debentures; Ordinarre should give Crown Agents free hand."
223
The first two articles deal with the financial arrangements which must be made by the Crown Agents for raising the money necessary for the postponement; new debentures may be issued, the currency of existing debentures may be extended, or any necessary measures may be taken which the circumstances of the case may require, thus giving the Crown Agents à free hand.
Article 3 deals with the postponements: the general principle is that given in the first paragraph of this report, but the article is so drafted as to encourage as much as possible part payments of the instalment due 30th June, 1904. A paragraph was inserted in order to allow a similar application to be made by the one estate, which had agreed to repay the whole advance on 30th June, 1904, in case it should do so.
*
Paragraph 4 carries out the instructions of the Secretary of State as to the exercise of discretion by the Officer Administering the Government in granting the postponements; and paragraph (5) the instruction that there should be a first charge on any land sold by a borrower under the Advances in Aid Ordinance to the Govern- ment for the purposes of reafforestation.
The main difficulty in connection with the Ordinance arose as to the mortgages. The first question was what their position was with regard to the postponement. I considered the question, and my opinion was expressed in the following minute:-
"It was essential to consider this question before the Ordinance was drafted.
Under Article 7 of Ordinance No. 43, of 1902, the Governor has the same power in connection with the advances as are conferred on him by Article 15 of Ordinance No. 13 of 1894 in connection with the Hurricane Advances. One of these powers is to grant delays. The cessions of priority have been given to a loan under Ordinance No. 43 of 1902: they, therefore, cover postponements." (Unless they were specially worded-which, however, does not appear to have been the case.)
The question was whether it was necessary to insert in the Ordinance a provision that the consent of the mortgagees should be asked before postponements were granted. From the above opinion it will be seen that it was unnecessary in law: and practically their position is not affected. If there is any mortgagee who would refuse if he had had notice, the remedies on his security remain unchanged, and he could enforce them by seizure-a seizure which it may be remarked would not affect the position of the Government.
On the whole, therefore, it seemed advisable to exclude all possibility of the mortgagees advancing an argument that they were entitled to notice. For this reason I have taken care that this Ordinance should be considered as an independent and not an amending Ordinance. The articles in Ordinance No. 43, of 1902, which dealt with mortgagees are, therefore, not referred to, and Article 4 excludes the possible application of Article 14 of Common Form Ordinance.
F. T. PIGGOTT,
26148
GENTLEMEN,
No. 187.
Procureur-General.
COLONIAL OFFICE to CROWN AGENTS.
[Answered by No. 190.]
Downing Street, July 27, 1904. WITH reference to your letter of the 2nd of June,* I am directed by Mr. Secre- tary Lyttelton to transmit to you a copy of a Mauritius Ordinance (No. 2 of 1904), to authorize the postponement of the instalments of the advances under the Advances-in-Aid Ördinance, 1902.
2. I am to request that you will take such steps as may be necessary to meet or renew the debentures which fall due on the 1st proximo.
I am, &c.,
H. BERTRAM COX.
• No. 181.
† Nos. 149, 156, 158, 160 and 162.
‡ Not reprinted.
• No. 168.