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The

Guiana for the year 1918 (the last for which I have figures) was only $4,145,401.56. additional charge of $1,008,000 would, therefore, necessitate an increase of 24 per cent. in the Colony's ways and means. Is this practicable?

I believe that it would be practicable, but on one condition only, namely, that the Secretary of State for the Colonies, and under him the Governor of the Colony, were given full financial control over British Guiana until the debt was extinguished. At present the Governor is exoluded from Committee of Ways and Means in the Combined Court, and that Committee (which frames the Colony's annual budget) consists of seven Official members and fourteen Elected members, and is always presided over by an Elected member of Combined Court, generally a negro. It would be most unsafe to entrust such a body with the task of re-organising the Colony's revenue so as to provide ways and means for annual payment of the charges conse- quent upon a large development loan. In my opinion, therefore, if money is available to make a loan of between two and three million pounds to British Guiana for development purposes, the Colony should be categorically informed that a condition precedent to authorization of such a loan must be such modification of the Colony's Constitution as will give the Secretary of State full control over the finances of British Guiana until the loan is redeemed. I believe that an offer made in these terms would be welcomed by the great mass of the colonists of British Guiana. There would, no doubt, be dissent from a small group of local politicians, who would lose their political "pull" if the change were made. But all the agricultural and commercial interests would, I believe, willingly "sell" the Constitution for a development loan. Indeed, when in 1914 (before the War) a proposal of this nature was made by Lord Harcourt, referenda taken by Elected members of Combined Court in Georgetown and New Amsterdam (the two chief centres of population) showed a large majority in favour of modifying the Constitution.

I will only add that the Colony is already in a critical state, and that even now the question is more one of salvage than of development.

C. CLEMENTI,

11th June, 1920.

Colonial Secretary of British Guiana.

BRITISH HONDURAS.

No. 21.

MEMORANDUM ON THE DEVELOPMENT OF BRITISH HONDURAS BY THE GOVERNOR, MR. EYRE HUTSON.

The Colony of British Honduras, of the area of Wales, liee on the east coast of Central America, and is unique in that it is the only British Colony on the North American continent. It is advantageously situated, offering a few safe Anchorages and ports on the Gulf of Mexico, with its northern boundary on the River Hondo. The left bank of this magnificent river, which has never been properly explored, is Mexican and Guatemalan territory. On the south, the River Sarstoon separates British territory from Guatemala and across the Gulf of Honduras lies the northern coast of Spanish Honduras. The latter is acknowledged to be a very rich country which is being rapidly developed by American capital, principally of the United Fruit Company of Boston who not only have large land holdings on practically freehold tenure, but have a valuable concession to build a railway from Puerto Cortes to the capital of the Republic, and thence to the Pacific coast. This railway is now being rapidly pushed on to completion. It is distressing to have to record that the most backward and undeveloped country on that long coast line is the British Colony of British Honduras,

The cause is not difficult to fathom. It is the natural tendency of capitalists, whether British or alien, to invest their money in land ventures and in railways or in commercial enter- prises where they receive liberal concessions from the Government. These concessions, hitherto, have been easy to obtain from the Central American Republies. We in Crown Colonies are properly required by the controlling authority in London to proceed on conservative lines. We receive no subventions from the Imperial Government, and have to raise our revenue and loans and to paddle our own canoe ' and work out our own development.

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The Colony is 8,598 square miles in area, practically the size of Wales. Really only those parts of it on the coast and adjoining the fine rivers are intimately known to the white man, except portions in the Cayo District adjoining Guatemalan territory, which is now the region from which our main supply of mahogany is obtained. It has become, necessary in the last two years for holders of forest grants or licences to build short light railways, and to use caterpillar motors to reach the new mahogany forests. The country carries very valuable timber which has never been touched, because only timber that can be floated down the rivers in flood time can be brought to the port for exportation. The country is practically' devoid of roads, except mud trails, and there is only one railway the property of the Government, 25 miles in length, which serves one valley and runs into a cul-de-sac, a part of the range of mountains named the Cockscomb Mountains.

Mr. Henry Fowler and Sir Hubert Jeruingham, when serving in the Colony many years ago, made a journey into these mountains and discovered indications of minerals, particularly gold. The Government has recently been permitted to assist in engaging the services of an officer to make a geological survey of the Colony, particularly to search for indications of minerals

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and for mineral oil. I personally am strongly inclined to the opinion that the mineral oil strata which exist in Mexico to the north of the Colony, and in Spanish Honduras to the south, will be tapped in British Honduras.

A specially qualified officer is now employed in reporting on the forest resources of the Colony. A peculiar feature of the forest land of the Colony is the presence of large areas known locally as "Pine Ridges" carrying a white pine recognised to be of great value at the present date. These pine forests on Crown land are at present assigned to the Naval Construction Com. pany of Jacksonville, Florida, under a very liberal concession granted by the Colonial Office some years ago. The company have never worked their concession nor felled one single tree. They are at the present date negotiating for a modification of the agreement to enable them to secure a renewal of the concession over a valuable portion of the forests for a further period of 20 years after the expiration of 9 years from the present date. If they obtain the concession they propose to invest about $2,000,000 in the venture-American money.

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There is a large block of these pine lands lying in the southern portion of the Colony known as the Southern Pine Ridge. This area is estimated to be 600 square miles. Mr. F. E. Starkey,

a local British mahogany merchant, who is engaged principally in felling mahogany in the Cayo District, holds at the present date an option for a grazing lease over this area, which he, being one of the few white men who has seen it, describes as fine open country, carrying good pasture, well watered, and at an elevation of 900 to 1,300 feet. The option will expire in a few months' time. He has been endeavouring to raise capital in England to develop the area as a cattle rauch.

I believe that he has, so far, not been successful. The south western corner of the block is within 20 miles of the terminus of the Government Railway in Staun Creek Valley and there should be no difficulty in driving cattle over that distance to the head of the railway, or in transporting cured or tinned meat to the railway head.

The investment of capital in cattle-raising, mainly for the supply of beef for exportation, seems to me a sound proposition at the present date; and I consider that, after proper investiga- tion of the country and of local conditions, the proposition offers a means for the investment of British, instead of American, capital.

There has been a remarkable development of eastern Guatemala since the opening of the railway from Puerto Barrios to Guatemala City. There is no doubt in my mind that both population and capital would be attracted to British Honduras if a railway were constructed from some point on the coast to the Guatemalan boundary, and thence into the rich province of Peten in that Republic. It is not rich in population, but in natural resources—at present undeveloped and unknown.

Setting aside the possible contingency of the discovery of valuable mineral oil deposits in the Colony, which would serve as a guide for the proper direction for constructing a light railway, it seems to me that the Colony may be valuably assisted now were British private ospital spent in investigating the resources of the Colony and of the country in Guatemala generally beyond the border, viz., in the province of Peten. Now is the time to move in the matter.

Owing to the recognised able attitude taken by the British Chargé d'Affaires in Guatemala during the recent revolution, which resulted in the downfall of President Cabrera, British prestige has never been higher in that country than it is to-day. I am confident that under the new President, Senor Harrers, any proposals from a British source for the investment of British capital in that country would be favourably entertained. A new and thorough investi- gation of the old proposal to construct a railway through the Colony into Guatemala may be of enormous amistance to the Colony.

The agricultural development of those portions of the Colony recognised to be fine agricultural land, must, in my opinion, be gradual, and depend almost entirely on whether negro or other agricultural labourera can be attracted to the Colony. I am hopeful that the direct steamship connection to be established early next year between the Colony and Jamaica, under the recent agreement with the Dominion of Canada, will lead to a regular immigration of Jamaicans into the Colony, provided inducements are offered by free grants of land, or adequate wages to agricultural labourers, and proper housing arrangements.

I need only refer to Mr. W. R. Dunlop's reports on the suitability of the land in British Honduras for agricultural industries, particularly for sugar-cane cultivation. Both the climate and rainfall, with more or less definite long periods of dry hot weather, particularly in the southern district of Toledo, and the extraordinary fertility of the land, ronder the country particularly suited for sugar-cane cultivation. A small number of Europeans in the northern and southern districts have been planting sugar-cane and manufacturing sugar of a fair muscovado quality and also rum for very many years. They make a living and are struggling on without sufficient capital to enable them to extend their plantations and improve their manufacturing machinery.

In the Stann Creek valley there are 61,000 acres of good agricultural land suited. for the cultivation of sugar-cane. These lands are served by the Government, railway; hitherto only bananas, and a very small quantity of sugar-cane, rice and a little maize have been grown on these lands. The whole area, i.e., those portious under cultivation, was devoted to bananas. I fear that owing to the appearance of the Panama banana disease in that valley, some other agricultural industry must be encouraged to take the place of bananas in the near future. Our Government railway depends entirely for its revenue on the carriage of bananas to the coast for shipment; there is a fine railway pier at the port, and ships drawing 30 feet can be berthed safely at the pier.

• Nos. 5 and 7 in West Indian No. 207.

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