106
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borrower's own ability to bear the loss, (iv) reference to procedure of 1892, (v) reference to La Nicolière. Published statement ex- plains that further details and conditions are the subject of correspondence.
2. As to above, should be glad of following information :—
(i) Is it intended that the Council should pledge itself in advance to accept all the recommendations of the Commis- sion? Such an unqualified undertaking would be very diffi- cult to secure. Would resolution to the effect that Council will use its utmost endeavour to meet suggestions for balancing budget be sufficient?
(ii) and (iii) Do these conditions contemplate investigation of personal resources of borrowers apart from liabilities affect- ing property(ies) involved? I fear this would be an impos- sible task for a local committee such as administered 1892 loan. I suggest in practice fixing of maximum period for repayment and making advances first lien on property with condition that borrowed money must be spent on property would be sufficient safeguard against abuse. It is desirable to have information as to these points before asking Legisla ture to accept the conditions also if possible total period con- templated for loan and probable interest terms. I personally cordially welcome proposal of Financial Commission: Would it be at the cost of Colony or His Majesty's Government?
C. 84556/31 [No. 28].
No. 34.
Telegram from the Secretary of State for the Colonies to the Governor of Mauritius.
(Sent 4 p.m., 10th April, 1931.)
No. 34, Confidential. Your telegram No. 39.*
(1) I agree that Council of Government cannot be asked to pledge itself in advance to accept all recommendations. You will however realize that if, after providing for guaranteed loan charges, Budget cannot be balanced without some financial assistance, United Kingdom Treasury will have to assume control of Colony's finances as is customary with all Colonies requiring similar Ex- chequer assistance. Provided this is understood, & resolution approving the appointment of a Financial Commission as proposed, at the expense of the Colonial Government, and promising fullest co-operation in endeavour to balance the Budget, would be sufficient.
• No. 33.
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(2) I fully realize the impracticability of detailed investigation of borrowers' private affairs and agree that the conditions you propose will suffice for purpose of presentation of proposals to the Council of Government. The legislation which will no doubt be necessary later should, however, reserve full discretion to the Government and should not suggest that any right to advances is conferred in respect of any hurricane loss whatever.
I will telegraph further as soon as possible as to rate of interest and period of repayment of loan and advances.
C. 84556/31 [No. 38].
No. 35.
Telegram from the Governor of Mauritius to the Secretary of State for the Colonies.
(Received 3.6 p.m.,
23rd April, 1931.)
23rd April. No. 46. Council of Government passed Resolution agreeing to appointment of Financial Commission and pledging Resolution undertakes to give full co-operation to expenses. endeavour to bring about a balanced Budget with least possible delay.
As most members expressed reserves as to right to criticise or reject findings of Commission I said position was that balancing of Budget was an elementary essential in whole situation and that whilst members could not reasonably be asked to accept blindly in advance all the recommendations of Commission I was going to assume Council accepted view that establishment of a balanced Budget was first essential of sound financial position and were ready to do their utmost to co-operate in bringing this about, and that it was in that sense that I put Resolution to vote. Resolution was passed unanimously after rejection of amendment for a Com- mission with wider power.
I suggest that Commission should be appointed as soon as possible and should be grateful for early information as to composition of Commission and probable date of visit.
PUBLIC RECORD OFFICE
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