PUBLIC PECORD OFFICE
། ། ། T །
Reference --
C.O.882/12
ALLY WITHOUT PERMISSION OF THE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON
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FINANCIAL COMMISSION.
(i) Appointment,
C. 84556/31 [No. 20].
No. 31.
SIR,
Letter from the Colonial Office to the Treasury.
DOWNING STREET,
[Answered by No. 36.]
31st March, 1931.
I am directed by Lord Passfield to refer to the letter from this Office of the 12th of March" regarding the recent hurricane in Mauritius and the financial difficulties of the Government of the Colony, and to enclose, to be laid before the Lords Commissioners of His Majesty's Treasury, copies of three further telegramst on the subject received from the Governor.
2. The financial difficulties of the Mauritius Government were a subject of concern before the hurricane, as Their Lordships are aware from Colonial Office letter of the 23rd of March and its enclosures, and Lord Passfield is satisfied that the Colony cannot, from its unaided resources, meet the relief of the distress and the repair of the physical damage caused by the hurricane and avert the possible general economic collapse which the Governor fears may result if no assistance is given to the sugar planters and manufacturers who have suffered loss.
3. The general financial position is set out in the Governor's two despatches of the 16th and 20th of January.§ of which copies were enclosed with Colonial Office letter of the 23rd of March, and the details of the position resulting from the hurricane are set out in his telegrams Nos. 31 and 32, of which copies are enclosed with this letter. The whole subject has been further examined and discussed at a meeting of representatives of the Colonial Office and the Treasury on the 28th of March, and it appears unnecessary to set out the details again here.
4. Briefly the position is that, as a result of long-continued depression in the sugar industry, the Colonial Government has, in the last five years, practically exhausted the surplus balances which were, with commendable foresight, built up in the preceding period of prosperity in the industry. In the current financial year, ending
† Nos. 6, 7 and 8. ‡ No. 26.
• No. 5,
Nos. 24 and 25.
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on the 30th of June, 1931, there is a prospective deficit estimated in January at between Rs.1,200,000 and Rs.1,500,000, to which must be added the deficit on the working of the Government Rail- ways, estimated at Rs.1,000,000. It is anticipated that the whole of the available surplus balances (a substantial part of which is not available, being represented by unrealizable assets) will be needed to meet these deficits, and it is possible that they may prove insufficient. There is a prospect of further deficits, both on General and Railway account, in 1931-32, and the Governor in his despatch of the 20th of January has indicated his opinion that such deficits cannot be avoided by any ordinary economies in expenditure or increases in revenue.
5. In the midst of these difficulties, the Colony has been visited by the recent disastrous hurricane which, according to the Governor, has caused damage estimated at Rs.1,100,000 to Government pro- perty and a total loss to sugar estates by way of damage to pro- perty, stock, etc., and loss of growing cane, estimated at Rs.9,050,000. It will be obvious that, in view of the exhaustion of its surplus balances, the Colonial Government is in no position to meet the cost of repairs and replacement of its property or to render any assistance to the estates whose own reserves have simi- At the larly been exhausted by the long period of depression. same time, the Government must meet additional demands for relief of actual distress, through the Poor Law organization or otherwise.
6. In these circumstances Lord Passfield is confident that Their Lordships will agree that His Majesty's Government, should come to the assistance of the Colonial Government, and he submits the following proposals for their very early consideration.
tress.
7. In the first place it is very desirable that His Majesty's Government should give evidence of its intention to assist by making an immediate free gift in aid of the relief of actual dis- This would have great psychological value in restoring con- fidence, and in assisting towards removing the feeling of depression and despondency from which the business community on the Island at present suffers. The Governor has reported, in his telegram No. 33 of the 22nd of March, the promise of a sum of 250,000 francs from the Government of Madagascar, and in view of the still existing French sympathies of a large portion of the popula- tion of Mauritius it is politically important that there should be no room for a suggestion that His Majesty's Government is less anxious to assist the Colony than French authorities. Further, the good impression made by such a gift would unquestionably be of value in securing the acceptance of possibly unpalatable measures of financial and administrative reforms which Lord Passfield is, on present information, inclined to think it will eventually be neces-
• No. 8.
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