21
PECORD OFFICE
Prference-
C.O.882/12
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE | BE REPRODUCED PHOTOGRAPHIC-
LCON FRIGHT PHOTOGRAPH-NOT TO
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industry might be an acreage tax which need not, of course be confined to land under sugar cane, though it would clearly be better for the time being to avoid any tax bearing directly on the sugar industry.
3. It is possible that recourse might be had to an income tax. Useful as this is in other parts of the world, I am doubtful whether it would be effective in Mauritius. It is expensive to collect, unless it can be collected largely at the source, which would not appear to be the case in Mauritius. For its effective administration it demands officials of special qualifications and considerable training. There might also be special difficulties in making proper assessments upon the Indian and Chinese traders, nany of whom might keep their books in their own languages. In view of these difficulties an income tax might tend to become a tax on persons of fixed income only.
4. Another and perhaps more suitable method of raising additional revenue is through death duties. Succession duties already exist in Mauritius under Ordinance 47 of 1914, but the rates imposed do not appear to be very high. It is possible that higher rates could be imposed and a considerably increased revenue derived from this source. Death duties are less easy to evade than income tax and they would tap the considerable capital fortunes which were accumulated during and immediately after the war.
5. It may also be desirable' to make a complete review of the present scale of customs duties with a view to seeing whether any of them could be increased, though it would obviously be unwise at this juncture to make any increase in duties on essential food-stuffs or supplies, machinery, &c., for the sugar industry.
C. 74581/30 [No. 10].
No. 23.
I have, &c.,
PASSFIELD.
THE OFFICER ADMINISTERING THE GOVERNMENT to THE SECRETARY OF STATE.
(Received 4.9 p.m., 1st July, 1930.)
TELEGRAM.
[Answered by No. 26.]
No. 52. 1ST JULY. Your telegram 23rd June, No. 27.* Situation has been clearly stated to the Bureau of the Chamber of Agriculture. The following is the substance of a communication since received from them :—
Begins: Bureau of Council of Agriculture grateful that the Government is prepared to agree to annuity relative to amalgamated sugar industry loan in respect of 1930-31 crop being postponed. As regards remission of 30 cents export duty Bureau beg to say with all deference that they are unable to envisage method of compensation as no new taxation, in whatever form, could be borne by the popula tion in the circumstances now obtaining. Bureau beg leave to indicate that shortage in question can be made good from Improvement and Development Fund leaving untouched the unappropriated balance of the Fund by utilizing the following unexpended appropriation: Creve Coeur, Rupees 84,000; Milk Sterilizing Depôt at Port Louis, Rupees G0,000; reafforestation, Rupees 374,000, residual shortage to be supplied by part of the current year's interest accruing from investments. Bureau also beg leave to suggest that indicated procedure peculiarly appropriate as Improvement and Development Fund raised exclusively by contributions from the sugar industry in time of prosperity.-Ends.
Creve Cœur scheme has been abandoned and Medical Director states that the Milk Sterilizing Depôt scheme is unworkable and should be abandoned As regards land purchase or reafforestation scheme there is an outstanding claim of about Rupees 35,000. Estimated interest accruing to the Fund in 1930-31 is Rupees 375,000.
In view of your telegram of 7th June, No. 19† propose subject to your approval informing the Bureau of the Chamber that their suggestions cannot be entertained, reiterating that grant of their request for remission of 30 cents export duty per 100 kilos in respect of 1930-31 crop will involve the Council of Government being asked to vote compensating revenue from new sources to be devised subsequently.
* No. 21.
† No. 16.
C. 74567/30 (No. 18].
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No. 24.
NOTES OF MEETING HELD ON THE 9TH JULY, 1930, TO DISCUSS ASSISTANCE TO THE MAURITIUS SUGAR INDUSTRY.
Present:
SIR FRANCIS WATTS.
MR. JACKSON (Governor of Mauritius).
SIR G. GRINDLE.
MR. JONES.
MR. CAINE.
MR. JACKSON explained that he had come to the conclusion that it was desirable that assistance to the Mauritius sugar planters should be forthcoming. Although arrangements had been completed for reaping this year's crop, he felt that the present prospects of the sugar industry, without any assistance from the Imperial Government or the Colonial Government, would have a very disheartening effect on the planters, and that there was a real danger that some of them would decide to abandon the industry, or that a conspicuous failure would lead to a general panic. In connection with this he mentioned the apparent change of attitude of the Banks, as indicated by the action of Barclay's Bank in the West Indies in making difficulties about advancing any money whatever to sugar estates on mortgage. It appeared clear that no assistance could be expected from the Imperial Government, and they had therefore to consider what resources Mauritius had itself. The obvious thing was to use the improvement and Development Fund.
SIR GILBERT GRINDLE agreed that it was desirable to use the Fund, and asked whether it would not be preferable to use it in some way which would be of permanent value to the industry, and would lead to a definite reduction in expenses. SIR FRANCIS WATTS said that any considerable economies in production wefe, as stated in his Report, impossible. SIR GILBERT GRINDLE then suggested that it might be used to give help in financing, and lead to a saving on interest charges. SIR FRANCIS WATTS was doubtful whether any sort of Sugar Bank could be established immediately, and anyway it would lead to only a very slight saving in total costs. MR. JACKSON said that although his idea was to use the Fund to give planters a subsidy, he did not con- template a plain gift; some conditions should be attached, as had been done in Trinidad, and provision should be made for repayment by means of an export duty or otherwise. He thought that the example of Jamaica and Trinidad and the possibility that Barbados would follow them was important. He did not see how the Colonial Office could refuse to allow Mauritius to do the same thing as these West Indian Colonies had done. Jamaica and Trinidad had given £2 a ton, but with the remission of export duties amounting to roughly 10s. a ton, he thought that £1 a ton more would satisfy Mauritius. Sir Louis Souchon had mentioned Rs.14, that is, practically £1.
SIR GILBERT GRINDLE said that at this rate the Fund, of which the available balance was about £450,000, would last just about two years, and the industry would then be let down with a bump. He suggested that it might be desirable to use a part at least of the Fund for the establishment of a Sugar Bank, which would at any rate diminish costs a little. MR. JACKSON replied that if the position is the same in two years as now, a Sugar Bank alone would not save the industry. SIR GILBERT GRINDLE pointed out that it might have a better appearance, if Mauritius had eventually to go to the Treasury, if they could say that in using up their own resources they had, while devoting some of it to immediate assistance, also made an effort to make permanent provision for the improvement of the industry.
After further discussion it was generally agreed that a Bank on Barbados lines (not a mortgage bank) was desirable in principle, and SIR FRANCIS WATTS said that he thought Sir E. A. Grannum would agree.
MR JACKSON then returned to the desirability of some immediate announcement. SIR GILBERT GRINDLE asked when would be the critical moment when abandonment of the estates might be expected. SIR FRANCIS WATTS said that there was no single critical moment. The cultivation of estates and preparation for the crop was a prac- tically continuous process in Mauritius. Replanting is only undertaken once in six or seven years, as five or six ratoon crops are taken. If depression continued. what would happen would be that no replanting would be done and the canes would simply be allowed to ratoon indefinitely. They would of course deteriorate in time, but for the time being the planters would simply reap what was grown. There was, how- ever, continuous danger that individual planters might throw up the business, or individual failures might start a panic. SIR GILBERT GRINDLE explained that there were