PUBLIC RECORD OFFICE

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24 PUBLIC RECORD OFFICE, LONDON

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80. The Secretary of State replied that, until the purchase of the 100,000 tons for His Majesty's Government had been completed, the question of the purchase of the further 29,000 tons must stand over. He requested that he might be informed by telegraph immediately when this had been done. The Secretary of State also requested that an expression of the appreciation of His Majesty's Government of the ready assistance given to their policy in the emergency should be conveyed to the planters.

81. The purchase of 100,000 tons by the Bank of Mauritius was completed on 3rd September, the delivery to be completed by the end of January, 1915, and the Secretary of State was so informed. The thanks of His Majesty's Government to the planters of Mauritius was conveyed by Government notification published on 4th September.

62. Information was received on the 18th September that arrangements had been made with the Commercial Bank for the purchase, on behalf of His Majesty's Government, of the balance of 29,000 tons offered by the planters at the end of August. The terms were the same as for the 100,000 tons already purchased, except that no provision was made for the shipping of bullion from India.

63. As the purchases of sugar had been made in London by His Majesty's Government at a uniform price, the arrangements made locally for grading sugars and making payment according to their quality were not proceeded with, but the Board of Arbitration which was appointed for that purpose has, when necessary, examined the sugar before shipment, and has rejected that which did not, in their opinion, come up to the trade description of fair average quality.

64. When the Commercial Bank were approached with a view to the com- pletion of this purchase they reported that they found difficulty in obtaining 29,000 tons of sugar on the terms arranged, although the planters were ready to sell to His Majesty's Government at the same price the whole of the available balance of vesous, amounting to about 59,000 tons.

The cause of the difficulty was that certain planters were withholding their stocks in the hope of obtaining a larger price for their sugar when the embargo was withdrawn, and those who had previously shown themselves helpful by offering to sell their sugar to Government were unwilling to allow the others to gain an advantage over them. Prices higher than that fixed by His Majesty's Government were also being offered by buyers in England.

65. A telegram was sent to the Secretary of State explaining the situation, and recommending that His Majesty's Government should purchase, through the Commercial Bank, the remainder of the vesous of the crop, amounting to 25,000 tons, excluding the 5,000 tons to be purchased for local consumption (see Section XVII.), in order to prevent the sale of this grade of sugar at undue profit by those who had withheld their stocks.

66. The Secretary of State replied that His Majesty's Government were not anxious to add to their purchases already authorized, but would rather than that forgo the purchase of the additional 29,000 tons from Mauritius. They appreciated, however, the objection to allowing recalcitrant planters to profit by refusing to sell to the Commercial Bank, and suggested that the difficulty might be met by removing the embargo from the inferior qualities of sugar while maintaining it on vesous.

67. It was accordingly announced that the embargo on syrups would be removed as soon as the purchase of the 29,000 tons vesou crystals for His Majesty's Government had been completed.

68. The purchase by the Commercial Bank of the 29,000 tons for His Majesty's Government, and 5,000 tons for the Colonial Government for local consumption, were completed on 16th October, and the Secretary of State was so informed.

The embargo was at the same time removed from the inferior qualities of sugar. 69. In addition to the sugar purchased through the banks, His Majesty's Government also purchased direct 13,500 tons from the Mauritius Estates and Assets Company, 12,000 tons from the Crédit Foncier and Mr. Souchon, and 10,500 tons from the Anglo-Ceylon Company.

Thus 165,000 tons in all of Mauritius sugar were purchased by His Majesty's Government, and, if the 5,000 tons bought for local consumption are included, the total purchase of sugar by Government amounts to 170,000 tons, out of a total crop of 275,000 to 276,000 tons, of which the quantity of vesou crystals was estimated at 210,000 tons.

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70. At the end of October the Chamber of Agriculture approached the Colonial Government and suggested that His Majesty's Government should be requested to purchase the available balance of the vesous of the crop, 25,000 tons.

The Chamber pointed out that the planting community had shown themselves anxious to assist Ĥis Majesty's Government, and had offered to sell the whole of the vesous of the crop to Government. Owing to the embargo imposed on the 21st crop, and of August they had lost a favourable opportunity of disposing of their they were now in difficulties to dispose of the balance.

71. In view of the position of His Majesty's Government, as explained by the Secretary of State in his telegram of 29th September, it was considered inexpedient to approach him again on the subject, but the Chamber was informed that His Majesty's Government would be approached with a view to the removal of the embargo (see Section XII., paragraph 40).

XVI. Shipment of Sugar purchased by His Majesty's Government. 72. On the 17th September the Secretary of State inquired whether the planters would prefer to deliver sugar more rapidly than at the agreed rate of 20,000 tons per month, and, if so, at what rate.

78. Owing to the purchase of 29,000 tons through the Commercial Bank having been arranged a few days after the receipt of this telegram, the reply to it was delayed until the rate of supply of the whole of the sugar purchased by His Majesty's Government could be ascertained.

74. At the request of the Naval Commander-in-Chief, Cape of Good Hope, 2,500 tons of sugar purchased by His Majesty's Government were shipped as ballast on the transport "Elele," which conveyed the Essex Regiment from Mauritius to England. The Secretary of State was informed of this shipment by telegram on 10th October.

75. On the 18th October the Secretary of State was informed that arrange- ments had been made for the shipment of 88,700 tons up to the end of November, including 2,500 tons by the transport "Elele," and that 10,000 tons more could be shipped in November if freight were provided.

It was added that 40,000 tons would be available for shipment in December and the balance would be available in January.

76. The Secretary of State telegraphed that vessels had already been chartered by the Royal Commission for shipments of sugar to the full extent required up to the middle of December, and that the utilization of the transport "Elele" would leave one of the vessels chartered without a cargo, which would cause a substantial loss to His Majesty's Government unless the delivery of sugar purchased could be expedited.

He asked for an explanation as to why the "Elele" had been utilized, and a report upon the plan on which matters connected with shipment were dealt with.

77. It was explained that, in the absence of instructions as to the arrange- ments made by the Royal Commission for freights, the Colonial Government had been dealing with Messrs. Blyth Brothers, who stated that their London firm had been charged with the chartering of the ships for the transport of sugar bought by His Majesty's Government. The charterers had distributed the ships among the principal shipping firms in the Colony, and arrangements had been made for the shipments on dates to suit the planters up to the 30th of November.

As regards the "Elele," the Commander in Chief, Cape of Good Hope, having requested that 2,500 tons of sugar might be shipped on her as ballast, with a view In spite of the use to saving the cost of freight, Government sugar had been sent.

of the "Elele," sugar would be available for all the vessels chartered.

78. In reply, the Secretary of State telegraphed that information had been sent to Messrs. Blyth Brothers of all the ships which had been chartered.

Up to the 31st January, 1915, 154,323 tons of sugar purchased by His Majesty's Government had been shipped.

XVII. Food Supplies of Civil Population.

79. Arrangements have for some years been in existence under which the Government of India on the outbreak of war will despatch supplies of food from India for the civil population of Mauritius.

80. On the 3rd of August a telegram was sent to the Government of India to inquire whether these food supply arrangements held good, and on the 8th August a reply was received in the affirmative, subject to the safety of the sea route.

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