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nik PECORD OFFICE
Peference
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CO.882/12
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BI REPRODUCED PHOTOGRAPHIC-
COPYRIGHT-CHOTOGRAPH—NOT 10|
ar
land, and the produce or article to be cured, made, or manu- factured therefrom, shall not be deemed to be personal chattels within the meaning of
Provided, however, that an advance may be made subject to an existing mortgage to the Bank so long as the total amount of the moneys due to the Bank does not exceed the prescribed limit. (ii) That every such advance shall bear interest at such rate per
annum as may from time to time be determined. (iii) That every such advance with interest thereon, shall become due and payable on the prescribed date next following the date of the advance. Provided, however, that the Board may at its dis- cretion from time to time postpone the date of repayment for a total period to be prescribed.
(f) To deal with and dispose of all crops and produce reaped or gathered from any lands in respect of which an advance has been obtained and has not been repaid. Such crops and produce to be held by the owner in trust for the Board.
(g) To authorize any Valuator or Inspector, at all reasonable times, to enter upon any lands in respect of which a loan or advance has been made for the purpose of valuing or inspecting the same.
General.
(i) Power to be given for the repayment of loans in anticipation. (ii) Severe penalties to be provided for misapplication of any loans or advances that may be made, the onus of proving the manner in which a loan or advance has been applied to be upon the person to whom the loan or advance was made.
(iii) All applications for loans or advances to be made on prescribed forms and to be addressed to the Board by whom they should be considered on their merits..
(iv) Consent by a Trustee to the postponement of his security, &c., &c., to
be provided for.
(v) The Governor in Executive Council to be empowered to make any necessary
regulation.
Enclosure 2 in No. 3.
THE HONOURABLE THE COLONIAL SECRETARY,
I HAVE read your attached minute, and its Annexure A." It embodies the ideas that we have discussed together at considerable length. I feel that the proposals are sound and are such as will help to relieve the financial stringency now experienced in Mauritius, though it is evident that further measures will be necessary to assist the sugar industry to meet the depression caused by the low prices now realized on the sale of sugar, in which connexion I hope to be able to put forward further proposals at a later date.
2. I agree with you in thinking that application should be made for assistance from funds made available by means of the Imperial Colonial Development Act, 1929, in the manner set out in paragraph 8 of your minute under consideration and for the reasons there stated.
3. While it appears desirable to suggest that assistance under the Colonial Development Act should be asked for a Loan of £300,000 in the manner stated, it is improbable that the whole of this sum will be required immediately; a portion might be made available as soon as possible, and the remainder at later dates; perhaps £100,000 would meet the requirements of the first year, provided that further sums are available later as required.
4. As there are likely to be urgent demands on the funds available under the Act, it will perhaps he advisable to inform the Secretary of State by cable of the general nature of the proposals that are coming forward so that, in the event of the proposals being generally approved, steps may be taken to set aside some portion of the funds before everything available at present is allocated to applicants from other Colonies.
5. By placing in London at the disposal of the Government of Mauritius a sum for starting this Bank, it would be possible to ease the situation as regards the shortage
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of sterling in London which at present is a matter of serious concern to the Banks and those engaged in business, and on these, as well as other grounds, it seems very desirable that everything possible should be done to arrive at an early decision on the proposals now submitted.
6. As we have on several occasions discussed the proposals contained in your minute as well as the circumstances leading up to them, and are quite agreed concern- ing them, it is not necessary for me here again to discuss the several details, but I may say that I regard the remarks in your paragraph 8 as particularly cogent, and I also think that it is desirable that the Managing Director should be appointed by the Secretary of State as this would inspire confidence.
7. As regards possible opposition to the making of short term loans, as fore- shadowed in paragraphs 5 and 6 of your minute, I can only say that experience alone can determine how far these loans are likely to be required, and to what extent use will be made of them; the provision to enable such loans to be made can hardly fail to be of service to those desirous to obtain financial help at reasonable rates. Where existing arrangements are satisfactory there is no suggestion to change them, but pro- bably facilities may thus be extended to those who are unable, in existing circum- stanes, to obtain the financial help desired.
FRANCIS WATTS.
8th November, 1929.
C. 74550/30 [No. 2].
No. 4.
COLONIAL DEVELOPMENT ADVISORY COMMITTEE to COLONIAL OFFICE.
Colonial Development Advisory Committee, Colonial Office,
Downing Street, S.W.1, 24th February, 1930.
SIR,
I AM directed by the Colonial Development Advisory Committee to request you to inform Lord Passfield that, at their fifteenth meeting on the 19th February, they had under consideration the despatch No. 458 (Reserved) of the 15th November, 1929,* from the Governor of Mauritius, together with a memorandumt prepared in the Colonial Office, on the subject of an application for assistance from the Colonial Development Fund for the agricultural community of the Colony.
2. The Committee note that consideration of the full scheme submitted by the Governor has been deferred, pending the result of a reference to the Crown Agents for the Colonies; but that they are in the meantime invited to consider the possibility of assistance by the offer of a loan to the Mauritius Government to enable them to finance the coming sugar crop by means of short-term advances to growers secured on the produce.
3. The Committee are given to understand that the present position of the sugar industry in Mauritius and in certain West Indian Colonies has recently been reported upon by Sir Francis Watts and by Lord Olivier's Commission respectively, and that the recommendations contained in their reports are at present under consideration by His Majesty's Government.
4. The Committee desire me to state that they are unable to entertain the application in the form in which it has been submitted to them, as they are of opinion that the Colonial Development Fund, which is intended to promote the inception or acceleration of projects of development in the Colonies, should not be used as a temporary palliative for the relief of an industry in distress. They would welcome an opportunity of making the Fund serviceable in the development of the resources of Mauritius when the policy of His Majesty's Government in regard to the has been determined.
sugar situation
5. A similar letter is being sent to the Treasury, and a copy is being sent to the Office of the Lord Privy Seal.
I am, &c.,
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E. B. BOYD, Joint Secretary to the Committee.
* No. 3.
↑ C. 74533/30 [No. 3]: not printed.
+ Cmd. 3518. § Cmd. 3517.
J
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