PUBLIC RECORD OFFICE
Reference :—
C.O. 885
24 PUBLIC RECORD OFFICE, LONDON
COPYRIGHT PHOTOGRA
ALLY WITHOUT PERMISSION OF THE
BE REPRODUCED PHOTOGRAPHIC- NOT TO
SIR,
98
QEYLON
Enclosure 3 in No 41.
Low Country Products Association of Ceylon,
41, Chatham Street, Colombo, 17th November, 1914. Prohibition of Exports of certain Low Country Products.
WHILE acknowledging your reply on above subject, dated the 29th ultimo, I have the honour to submit, for the information of Government, a short report on trade in Low Country products:-
(1) The London demand for copra continues, and the exports to the United Kingdom, which, on the 19th October, totalled 82,807 cwts.. stood on the 9th November at 156,526 cwts.
The prices have steadily increased to Rs. 65/75 to-day.
(2) The oil market is good, and as much oil as can be turned out is
exported to New York and Philadelphia.
(3) A market has been made for poonac in London, and the Board of Agriculture and Fisheries are continuing to make this commodity popular as food for cattle and pigs. Merchants in London and Liver- pool are now purchasing, and it is satisfactory to note that quite 300 tons of poona have been shipped to the United Kingdom during the last few weeks.
(4) Rubber is doing well, and the prices are good, thus enabling pro-
prietors to employ as many villagers as possible on estates.
The total quantity exported up to week ending 9th November, as compared with that for the same period in 1913, shows an increase of 3,383,092 lbs.
This was expected, as so many more acres came into bearing this year.
(5) Desiccated Nut. Since the outbreak of war the export of this article has been reduced by 11 million pounds. The demand has regularly diminished, although British Colonies and the United Kingdom are the largest buyers under normal conditions.
The commodity, being a luxury, is not likely to revive in the near
future.
As the price of nuts is rising in keeping with the price of copra, the few desiccating mills now working will soon cease, as the working will be a distinct loss.
Yarn
(6) The market for fibre of both kinds, and yarn, has been poor.
making is a cottage industry in several districts of the Western and Southern Provinces, and it is satisfactory to note that sales are gradu- ally being effected and causing circulation of money among those most in need.
(7) Cinnamon. This commodity has been the worst of those affected by London conditions of war. The market of the world is Hamburg.
has taken a small quantity during the last twelve weeks, but the total exported for 1914 is one million pounds short in quills, and half a million pounds in chips. Small owners and skilled labourers are rather badly hit.*
(8) Citronella.-The United Kingdom, United States, and British Colonies
are the best buyers generally.
This commodity is confined to a large number of small, as well as Since the war there have large, holders in the Southern Province.
been moderate shipments. The decrease this year is 14 million pounds, which is about 20 per cent. of normal annual export.
(9) The question of plumbago is important, and I annex a separate report regarding that trade. If at least 1,000 tons can be sold per month for export, there will be considerable relief.
* ? Effect caused by Mexican rebellion and consequent closing of that important market.-R. C., 24th November, 1914.
99
CEYLON.
Finally, the Association begs to express great satisfaction and relief at the capture of the cruiser "Emden," which not only gives freedom of trade routes, but ensures a full and adequate food supply from India, and must reduce the inflated prices of all necessaries of life for the masses.
The Honourable
The Colonial Secretary,
Colombo.
I am, &c.,
HENRY L. DE MEL,
Honorary Secretary, Low Country Products Association of Ceylon.
Low Country Products Association of Ceylon,
41, Chatham Street, Colombo, 17th November, 1914. Report on Plumbago Market.
There has been nothing done since the last Proclamation. About 250 tons of plumbago have changed hands locally to help parties to pay off labour forces and outstanding bills. Between the 19th October and 9th November about 200 tons have been shipped to London on old orders, delivered out of stocks in hand. Our cablegrams to London have not led to any business, and there does not seem to be any desire, either in London, or by the British firms here, to buy even a few tons on speculation. There are a few orders for dust, which is a cheap line. Some of them have orders for New York, ready for shipment before the Proclamation, but now held back, and unless those lots are off their hands they are not able to replace stock.
The Low Country Products Association of Ceylon and the Plumbago Merchants' Union Sub-Committees have agreed to work the bigger mines, employing thousands of men, as those proprietors depend on coco-nut and rubber besides plumbago. The former two products are doing well, and thus subsidizing the non-paying industries. The above act of mine-owners has largely averted the unemployment scare, and is keeping things quiet.
In Colombo all the smaller curing yards have closed, and those out of employ- ment are being given, in some cases, a paltry diet allowance to keep going.
Messrs. Aitken, Spence & Company are financing some of their regular customers, and thus have afforded relief in certain directions, which is commend- able; while Mr. H. Bastian Fernando and ourselves are doing the same on a small scale, while continuing to employ our labourers in Colombo and Kurunegala.
I learn that there is no prohibition in London regarding export of plumbago, but shippers here are not prepared to take the risk.
Offers have been made to London at Rs. 100 less per ton than July prices, with- out leading to any business. While there does not seem to be any demand in the United Kingdom for plumbago to manufacture armaments, guncastings, etc., information has been received locally that the well-known firm of Krupps, in Germany, desired to purchase, through a Swedish (? Swiss) firm, 300 tons of lump plumbago. The matter was, I learn, reported to the authorities in London.
Most owners of cured plumbago are hopeful of a demand in a few weeks, though as at present advised the outlook is gloomy. The whole situation has been placed before several London buyers, and mail letters arriving early in December are likely to announce the demand in the United Kingdom from the manufacturer's and consumer's points of view.
H 2
HENRY L. De Mel,
Honorary Secretary.
100
CEYLON.