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The position disclosed by this telegram does not differ in its essentials from that set out in the Governor's despatch of the 20th of January, of which a copy was communicated to the Treasury with Colonial Office letter of the 23rd of March. Two particular suggestions were made in that despatch for meeting the situation. the temporary remission of the Military contribution and a change in the form of the Widows' and Orphans' Pension Fund. The former was submitted for Their Lordships' consideration and the latter is still under consideration in this Office.
It has since been decided to appoint a Financial Commission to visit Mauritius as soon as possible and advise measures to secure a balanced Budget. In view of this, Lord Passfield assumes that Their Lordships will wish to defer decision on the Military con- tribution question until the whole position has been examined by the Commission. Similarly, while the examination of the Widows' and Orphans' Pension proposals in the Colonial Office will be con- tinued, it may ultimately be considered advisable to refer them to the Commission, or, at any rate, to await their conclusion, before reaching a decision.
In these circumstances it would appear that the Governor can only proceed as he proposes, and frame his Estimates for the coming year on the basis of the existing commitments of the Colonial Government, while endeavouring to secure the economies in ex- penditure and increased taxation which he proposes.
Lord Passfield is also in agreement with the view of the Governor und the Colonial Secretary that it would be impolitic to collect the special export duty on sugar under Ordinance 15 of 1929 during the next financial year. This was remitted for the last crop (reaped in the latter part of 1930) and Lord Passfield considers that in accordance with the policy which has been adopted in all the Sugar Colonies it should be remitted for the crop to be reaped this year, unless there should, in the meanwhile, be a substantial rise in the price of sugar.
His Lordship would be glad to learn as soon as possible whether Their Lordships agree with his views and with the Governor being "nformed accordingly.
I am, &c.,
WALTER D. ELLIS.
* No. 25.
† No. 26.
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C. 84507/31 [No. 15].
No. 29.
Letter from the Treasury to the Colonial Office.
TREASURY CHAMBERS,
(S. 36220.)
SIR,
16th May, 1931.
I have laid before the Lords Commissioners of His Majesty's Treasury Mr. Ellis' letter of the 13th May, 1931, on the subject of the draft Estimates of Mauritius for the year ending 30th June, 1932, and They direct me to request you to lay before the Sécretary of State for the Colonies the following observations.
My Lords desire to defer consideration of the Governor's pro- posal for a temporary remission of the Military contribution until the financial position of the Colony has been examined by the Financial Commission which is to be appointed.
My Lords note that the Governor's suggestions regarding the Widows and Orphans' Pensions Fund are under examination in the Colonial Office, and They would be glad to be advised as soon as possible of the prima facie views of the Secretary of State, in the light of the origin and objects of the pension scheme. Their Lordships are disposed to agree that it may be desirable to defer a final decision on this question until it has been examined by the Financial Commission, but, on the information before Them, They find it difficult to appreciate why it should have been considered necessary for the Colonial Government to allow interest on the mean monthly balance to the credit of the Fund at the very high rate of 8 per cent. per annum.
With regard to the special export duty on sugar under Ordnance 15 of 1929, My Lords see no objection, in the circumstances repre- sented, to the Estimates for 1931-32 being framed on the assump- tion that the duty will be remitted for the crop to be reaped in the latter part of the year 1931. They consider, however, that no pledge to remit the duty should be given at this stage. The ques- tion whether the duty should be collected in whole or part, will, in Their Lordships' opinion, require further consideration later, in the light of any developments in the world sugar situation and the results of the review of the financial position of the Colony by the Financial Commission.
* No. 28.
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