PUBLIC RECORD OFFICE
Reference :-
RECO. 882-
9 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
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the Governor be pleased to move the Secretary of State for his sanction to add the sum of £100,000 to the above loan to be applied to the re-afforestation scheme of the Colony."
40. Sir Charles Bruce, in a despatch addressed to Mr. Chamberlain, then Secretary of State for the Colonies, on the 14th January, 1898, strongly supported the resolutions of the Chamber of Agriculture and of the Council of Government.
50. Mr. Chamberlain, in his despatch of the 7th April, 1898, replied that he regretted that he was unable to accept the proposal, as he was not satisfied that any such case of extreme urgency existed as would alone justify an appeal for the
of the credit of Imperial Government.
6. The Chamber of Agriculture, at a meeting held on the 22nd June, 1898, urged the necessity of the loan which they had applied for and voted a series of fresh resolutions to that effect.
70. The Council of Government supported those resolutions at a meeting held on the 19th July, 1898, in a series of resolutions which were transmitted by Sir Charles Bruce to Mr. Chamberlain in a very strong despatch dated the 24th August, 1898, in which our late Governor justified the appeal made by the Colony for the aid of the credit of the Imperial Government.
80. Mr. Chamberlain, in his despatch of the 8th December, 1898, dwelt at length on the inexpediency of the application made by the Chamber of Agriculture and the Council of Government, and repeated that he was not satisfied that a case had been made out for a loan guaranteed by the Imperial Government.
90. Shortly after, the planters of Mauritius were confronted with financial difficulties which they were fortunate enough to tide over, with the timely aid extended to them by the Colonial Government in the shape of temporary loans to enable them to carry on the cultivation of their estates.
100. It is possible that, if, since 1898, the planters of Mauritius generally had been in a position to improve their machinery and bring it up to date, they would have overcome those difficulties by themselves. In fact, had only ten per cent. more of the saccharose contained in the cane been extracted, the Colony would have during that period of eight years produced 137,485,800 kilos. more, which would have given Rs. 21,310,000.
110. Since 1898 some efforts have been made to put sugar factories on a more satisfactory footing, but it has not been possible to effect any improvements on a large scale for want of funds and help.
120. The abolition of sugar bounties has not produced stability in the sugar market nor raised the price of sugar as was expected; on the contrary, prices have gradually declined.
130. There is no sign of better prices in the future, as the production of sugar is steadily increasing and the cost is, at the same time, being reduced everywhere, except in Mauritius, by applying better methods and adopting improved machinery in the manufacture of sugar; we are thus placed in a state of inferiority on all the markets of the world.
140. In India, which is our principal market, our position has become pre- carious; we have to compete there with foreign sugars which are produced at a lower cost than ours, without speaking of the important advantages which some of them enjoy in the shape of disguised præmia, such as reduced land and sea transport
rates.
150. However, with improved methods and improved machinery, the cost price of our sugar might be reduced so as to render competition possible.
160. It is useless to reckon on the assistance of private capital for the purpose. There is none available locally, and foreign capitalists will not invest money in sugar cane industry for long periods and at small rates of interest.
170. No improvements in machinery can be effected under such conditions as to allow the repayment on short terms of borrowed money. The Government alone can assist in such cases.
180. Experience has shown that loans of the nature required, when made by the Government, can be well secured and are repaid regularly.
190. It is the interest of the local Government to assist planters in improving their sugar factories, inasmuch as its revenue will increase as the production of sugar increases.
200. To sum up, unless the planters of Mauritius obtain the assistance of the Government in order to put up improved machinery and to adopt better methods,
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so as to increase the extraction of sugar from the cane or otherwise improve the working of their sugar factories, the production of sugar must before long be given up, thus causing an irremediable calamity.
210. The credit of the Colony is now so strong that it is not necessary to apply for the guarantee of the Imperial Government, which it is so difficult to secure.
220. The Chamber of Agriculture, mill-owners, planters, and others indirectly or directly interested in the sugar industry of the island, here assembled to-day, therefore request that His Excellency the Governor be pleased to approach the Right Honourable the Secretary of State for the Colonies, with a view to obtain his sanc- tion to the issue by the Colonial Government of a loan not exceeding £600,000 to be lent to sugar estate owners for the purpose of improving their sugar factories and of adopting modern methods of manufacture; the advances so made to cover improvements already made or contracted for since the beginning of this year (1907) and to spread over a certain number of years so as to allow applications to be gradually made.
Such advances to be made from time to time on the reports of a Commission composed of competent persons to be appointed by His Excellency the Governor.
230. The Chamber of Agriculture and others aforesaid also request that His Excellency the Governor be pleased to consider the urgent necessity of completing the afforestation scheme of the island, so as to protect the agriculture of the Colony. against the effects of the frequently recurring droughts which visit it, and to im- prove the sanitary condition of the island, and, by keeping up the normal flow of the rivers of the island, and by giving pure water to drink to its inhabitants; and they recommend that, for that purpose, His Excellency the Governor he pleased to move the Secretary of State for his sanction to add the sum of £100,000 to the above loan; the interest and sinking fund of that additional sum to be met at a given moment by the profit to be gradually realized on the advances made to sugar estate
owners.
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of
(Private.)
No. 2.
THE SECRETARY OF STATE to THE GOVERNOR. (Sent 1 p.m., 28 October, 1907.)
TELEGRAM.
[Answered by No. 3.]
Your Confidential despatch of 31 May.* If Leclézio is still pressing question of loan you should make it clear that there is no prospect of its being sanctioned or your treating it as an open question. It seems important to encourage those who are locally opposed to the loan by letting them know that you take the same view and will give effect to it in Council, if necessary. All other questions apart, the state of the money market would make the conditions of a loan prohibitive.-ELGIN.
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No., 3.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 11.20 a.m., 30 October, 1907.)
(Paraphrase.)
TELEGRAM.
[Answered by No. 5.]
Secret and Confidential. With reference to your telegram of 28th October,† I have told Leclézio that his scheme cannot be supported by me and would not be sanctioned. He will probably withdraw. His motion had been postponed from the 22nd of October to the 5th of November, and I had arranged that the official members of Council should not participate in the discussion, but that the opinion of
• No. 1.
† No. 2.