154

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PECORD OFFICE

نيلا

Reference :-

C.O.882/12

PUBLIC RECORD OFFICE, LONDON |

ALLY WITHOUT PERMISSION OF THE BF REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-N01 TO

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166

2. The proposals so far put forward include-

(1) The closing of the Teachers' Training College and Trade Schools (see your telegram No. 162).*

(2) Retrenchment of Railway Staff.

(3) Reorganization of the Receiver-General's Department (your telegrams Nos. 24 and 21).

(4) Levy on Civil Service salaries.

(5) Increase in Customs Duties.

The first three of these proposals have been adopted and the first two put into effect. An Ordinance has been passed on the general lines proposed in your telegram No. 2 of 1932 and my telegram No. 68 covering the redistribution of the Revenue Services and conferences between departments are proceeding daily to give effect to the administrative rearrangements proposed. The Ordinance covering the levy on salaries has been read a first time and a resolution moved covering the increases in Customs duties which are consequently in effect from the date of introduction of the resolution.

3. These measures however have given rise to a progressive feeling of resentment on the part of the Council of Government which culminated in the public meeting reported in my telegrams Nos. 32 and 33. The position of the Government in putting forward these proposals has been made more difficult by the fact that the Report of the Financial Commission was not yet available and the full programme of reorganization was consequently not before the Council. The rough draft of the Commissioners' Report which was left with me was not in any way suitable for publication or even for extensive quotation and I was consequently obliged to put forward these proposals as urgent and partial measures of reorgani- zation to be followed by a fuller programme of reform. In view however of the instructions contained in your telegrams No. 2 of the 4th January and No. 11 of the 20th January and of the urgency of the financial position I did not feel justified in postponing action any longer.

4. On the submission of these proposals to Council however there was at once apparent a disposition on the part of members to resist any measures involving heavy retrenchments of staff and to resent the view formulated in your telegram of the 22nd December that

* C. 84637/31 (No. 3]: not printed.

† C. 84692/31 [o. 11]: not printed.

+ C. 84632/31 [No. 14]: not printed.

i C. 84632/31 [No. 124]: not printed. || No. 41.

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administrative reorganization might be decided upon before the Council of Government had been consulted. The proposals for the closing of the Training College and Trade Schools were objected to, not on the ground of inexpediency, but on the ground that they had been decided upon before consulting the Council. I explained that immediate action was necessary in these cases and it had been essential to give notice to those concerned as a new term was on the point of opening, and the position was rather reluctantly accepted after a protest against the manner in which the change had been carried out.

A stronger protest was forthcoming against the Railway staff retrenchments against which all the Elected Members voted. A copy of the minute to Council describing the scope and need of these retrenchments is annexed: During the debates objection was raised to proposals involving such heavy re- trenchments of staff and additions to the unemployment pool while the salaries of those remaining were not yet touched. The proposals for reorganization of the Revenue Services also came in, as I had anticipated, for much criticism on the ground that the transfer of functions to other departments inexperienced in their exercise was inopportune at this moment particularly in view of the revelations as to irregularities in connexion with the Customs to which reference has already been made. It was emphasised that the revenue lost by the transfer would exceed the economies achieved. I laid stress upon the fact that these were purely administrative changes as pointed out in your telegram of the 4th January (No. 2 of 1932) and would be carried out piecemeal as they became feasible. The Bill was finally passed against the vote of the Elected Members. The debate was, however, shorn of a good deal of its acrimony by the announcement which I was able to make after receipt of your telegram No. 21 that on reconsideration it had been decided not to proceed with the proposal to abolish the separate office of Treasurer or Receiver-General.

5. I have laid some stress on these preliminaries as they serve to illustrate the attitude of the Council towards the adoption of piecemeal recommendations without having the full programme before them and their objection to measures involving staff retrench- ments before the question of salaries had been dealt with. On receiving your telegram No. 11 of the 20th January and the sub- sequent modification of these instructions contained in your No. 14 of the 25th Januaryt I made a statement to the Council at the next meeting, on the 2nd February, outlining the immediate programme which they would be asked to adopt pending receipt of the full recommendations of the Financial Commission. A copy of this statement is enclosed. I felt it advisable in the circumstances that the Council should be given as full a statement as possible of the immediatè

programme which they would be asked to adopt including

*Not printed here.

10430

+ No. 42.

Not printed here.

L2

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