PUBLIC RECORD OFFICE
Reference :---
UPTETC.O. 885
24 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPHE NOT TO
A.A. AND Q.M.G.,
150
GIBRALTAR.
Appendix "E' in No. 57.
In accordance with your verbal instructions I forward herewith a report on the action taken in raising the funds required at the precautionary stage of the defence scheme (in so far as it seemed possible under the circumstances).
I interviewed the manager of the Anglo-Egyptian Bank, and ascertained from him that his reserve of gold was at a low ebb consequent upon a rather large with- drawal by the Navy on the 28th instant, and also on account of it being the and of the month, when the bullion is naturally depleted. His verbal estimate on the 29th instant amounted to about £8,000 sterling and £20,000 in Spanish currency. He informed me he had cabled for £100,000 in sovereigns, which would be out here on 4th August. He was prepared to double this amount on written authority from me, but this would have committed me to raising funds at short notice, thereby incurring an expense which I thought it advisable to avoid until more assured of the actual urgency of the situation. I therefore compromised, and recommended
that a further sum of £50,000 should at once be cabled for, and I undertook to effect the necessary transfer, if the situation developed, of a sum sufficient to bring the I Treasury chest bullion within the margin of that fixed by the defence scheme. further obtained a written guarantee from the manager that the sum of £150,000 had been called for so as to arrive in Gibraltar by P. and O. on 4th August, and he promised me he would keep at least £100,000 of this at my disposal.
That is the situation as it stands at present. In making this arrangement with the bank I took into consideration the amount of money at present in circulation in Gibraltar, and which will be finding its way back into the bank in fairly large quan- tities during the first few days of August, thereby swelling the £150,000 due to arrive; also the fact that, even in the event of war, the channel for conveyance of specie is not necessarily closed, and that in all probability it will be possible to obtain a further supply of funds by 11th August should this be found necessary. I do not think there are any grounds for fearing a shortage of funds from the date of arrival of the specie already on demand.
Gibraltar, 30th July, 1914.
A.A. AND Q.M.G.,
P. C. N. ALDERSON, Major,
Acting Treasury Chest Officer.
WITH reference to my Confidential letter of yesterday's date, and paragraph 3 of the points brought to notice, the statement that the bank are only bound to keep a gold reserve of £10,000 is, I'm afraid, rather misleading. To make it more explicit this sentence should read: "By the terms of the agreement with the bank the Treasury Chest Officer cannot draw funds exceeding £10,000 without giving previous notice."
P. C. N. ALDERSON, Major,
Acting Treasury Chest Officer.
Gibraltar, 31st July, 1914.
A..A. AND Q.M.G.,
As the result of my interview with you this morning I beg to report, for your information, that I have taken the following action :-
1. Cabled to the Treasury to place to the credit of the account of the Anglo- Egyptian Bank in London with the Bank of England the sum of £100,000.
2. Instructed the manager of the branch bank here to cable the Anglo- Egyptian Bank in London of this transfer, and to request them to effect shipment of this amount by the intermediate P. and O. steamship due to leave London on Saturday, 1st August.
3. Interviewed the local agent of the P. and O. Company and authorized him to cable to the P. and O. Company, London, to accept shipment of this bullion for consignment to Gibraltar as a matter of public urgency.
4. Communicated with the Superintendent, Eastern Telegraph Company, and obtained his assurance that these cables would take priority over other traffic for the time being.
Gibraltar, 31st July, 1914.
P. C. N. ALDERSON, Major,
Acting Treasury Chest Officer.
151
GIBRALTAR.
Appendix "F
" in No. 57.
1. OUR Ambassador at Madrid states that Spanish Government is consider- ing the case of Gibraltar in relation to the general prohibition of the export of supplies from Spain, and has suggested a conversation between Algeciras and Gibraltar.
2. Spanish Government no doubt feared influx of refugees from Gibraltar into Linea, and consequent shortage of food there, with dangerous rise in prices as a result; but in fact no influx has taken place. Spanish and other aliens in Gibraltar have not been disturbed; the several thousands of daily workmen still come in and out, and, in spite of our prohibition of export of food, they are permitted to take provisions for daily use.
3. Spain, however, prohibits supplies coming into Gibraltar, and so does not reciprocate in this matter, to our very great disadvantage.
4. Charcoal, of which there is abundance in Liner is greatly needed in Gib- raltar. Quote case of 200 cwts. (10 tons) ordered by a merchant before prohibition imposed.
5. If Spain maintains strict prohibition we shall find other sources of supply, and then, to protect our importers, we shall have to prohibit imports from Spain, to the detriment of Linea and its people, who live on the local trade.
6. Great Britain has allowed export of coal to Spain, which is a very valuable concession to Spanish industries.
7. If question of supplies becomes acute, we might be compelled to expel Spanish aliens and cease to employ Spanish workmen (8,000 daily). This would bring upon Linea the very overcrowding and rise of prices which the Spanish Government is anxious to avoid.
8. If General Alsina feels that he has no discretion will he refer to Madrid?
(40086.)
SIB,
(Confidential.)
Appendix "G" in No. 57.
Gibraltar, 10th October, 1914.
I HAVE the honour to refer to the third paragraph of my despatch No. 146, of the 8th instant, submitting for allowance "The Importation of Foodstuffs Ordi- nance, 1914," and to offer herewith a fuller explanation of the necessity for this Ordinance and of the arrangements made to ensure the food supplies of this Colony. 2. The supply scheme prearranged for adoption in the event of war provided that the military authorities should at once acquire and control stated reserves of the necessaries of life for the maintenance, in case of need, of the civilian popula- tion, and that the export of any foodstuffs from Gibraltar should be forthwith prohibited.
3. This scheme, in practice, was soon found to have many disadvantages. In the first place the stocks so put aside, which would not be drawn upon until the public stores and shops were depleted and exterior sources of supply had failed, were liable, particularly in the case of flour, to suffer deterioration from indefinite storage and to become unfit for consumption. In the second place, since Gibraltar depends for its commercial prosperity upon its position as an entrepôt for dealing with commodities in transit, chiefly to the Moroccan coast, the complete prohibition of exportation would cause the automatic cessation of import, and threatened to paralyse local commerce and to cause unemployment among the working classes, and also to give competing ports, such as Malaga and Cadiz, an advantage which it might be difficult to recover from them, and which might result in the final loas to Gibraltar of the bulk of its transhipment trade. It was, moreover, the policy of
His Majesty's Government to prevent interference with the course of trade, and to restore the commerce of the Empire, so far as possible, to its normal footing.
4. On the outbreak of war some anxiety was felt as to whether communication with former sources of supply would be maintained, and at the outset Spain and Morocco unexpectedly placed an entire prohibition on the export of all foodstuffs. The shipment of provisions from the United Kingdom was also forbidden, although this prohibition was shortly relaxed in favour of Gibraltar. Except in the case of sugar, of which Spain has a surplus, the Spanish embargo is still maintained, and