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PUBLIC RECORD OFFICE

Reference :-

TLC.O. 882

III

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH—NOT TO

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5. I enclose a copy of my Minute* submitting these schemes to the Council of Government, which was adopted at meetings held on the No. 49, 11th January, 1904. 12th and 19th instant. A sum of £1,000 over the estimate for the Mapou-Australia and Mare d'Albert-Cent Gaulette lines, has been added, on the recommendation of the Railway Board, for the improvement and enlarge- ment of the Mapou and Mare d'Albert Kailway Stations, thus bringing the total amount of the loan to £130,000. I also enclose a copy of my previous Minute,† to which reference is made in the sixth paragraph of my Minute of the 11th January.

6. It will be observed that I submitted to the Council of Government a modified scheme which was, in effect, a reduction of the scheme originally proposed by Sir Charles Bruce.

I do not wish it to be supposed that I, in any way, dissent from the scheme proposed by Sir Charles Bruce. On the contrary, I consider that as soon as circum- stances permit, it will be necessary to extend the present modified scheme so as to include the extensions which he proposed.

But I was in the presence of the following considerations, which compelled me to hesitate before advising a comprehensive scheme :-

1st. The price of sugar, which had been Rs. 9.50 in September, fell to Rs. 7.80 in December, a price which hardly covered the cost of production. I was uncertain whether the price would fall still farther or whether it would rise. has risen since the 1st January, and the market is now firm at Rs. 8.

It

2nd. To attempt the execution of a comprehensive scheme in one year would be to overtax the labour resources of the Colony. The price of labour would have been increased by Government competition in the labour market, and the planters would have suffered by the increased cost of production.

3rd. It was desirable, therefore, to limit the scheme to so much as could be executed before this year's harvest begins in August.

4th. The money market is depressed, and it is not probable that the necessary loans can be floated on such favourable terms as could be desired. It is evident. therefore, that the scheme should be limited to the absolutely necessary require- ments, and that no more money should be borrowed in a depressed market than can be spent in the current year.

I consented to an increase of a sum of £2,000 on the sum originally proposed in my Minute, as this will be required for the enlargement of the junction stations at Mapou and Mare d'Albert, necessitated by the new lines. This enlargement had not been included in the scheme submitted by me, but, on reflection, I decided to accede to the request of the Light Railway Board, and to include it.

7. I submitted these schemes for your approval in my telegram of the 19th instant, and asked for authority to include them in a general loan Ordinance, which will also comprise the amounts required for the extension of the drainage works and the improvement of the Mare-aux-Vacoas water supply.

8.

As soon as I receive your sanction to this expenditure, the necessary Ordin- ance will be introduced into the Council of Government, and the Crown Agents will then be informed of the date on which it will be necessary to raise these different loans.

(No. 1853.)

I have, &c.,

GRAHAM BOWER, Administering the Government.

Enclosure 1 in No. 129.

FINANCIAL OFFICERS to COLONIAL SECRETARY.

December 24, 1903.

In addition to the Tramway Loan (£185,000) which is, we think, being raised, the following loans are contemplated :-

(a) Black River Railway, £40,000; (b) Drainage, £23,500;

(c) Mare-aux-Vacoas, £17,000;

(d) Re-afforestation, £110,000.

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The works under (a), (b), (c) are in hand, and important advances have been made by the Treasury, which call for speedy adjustment.

On the other hand, the overdraft of the Crown Agents on the 8th October last was £212,000, bearing interest at Bank rate, and Government reckons on the proceeds of the loans under (a), (b), (c) (£80,500), as well as of the Tramway Loan (£185,000) to repay that debt, and to keep the Crown Agents in fund until the Treasury cash balance has recovered its elasticity.

We would therefore recommend an immediate raising of these loans. The question of the Re-afforestation Loan (£110,000) should, we think, be referred to the Forest Board, as we understand that no immediate purchase of land is contemplated.

In dealing with this question it should not be overlooked that the interest consequent on an early raising of this loan would be covered by the tax under Ordinance 25 of 1901.

As regards the question of drawing on the Colony to meet current expenses, we must state that the Treasury has remitted this month Rs. 400,000 (about £26,800), and that the Treasury will be able, this week, to invite the Crown Agents to draw for some £13,200 (Rs. 200,000).

The cash balance is to-day over Rs. 925,000, and may possibly reach Rs. 1,000,000 before long, when this further remittance will be possible.

If the loans above contemplated are raised next month (the request to do s0 could be wired to the Crown Agents) they will be able to face the expenditure of January and February, 1904, and the question of placing them in funds may further be considered.

GEORGE R. DICK,

Auditor-General.

S. DUVERGÉ,

Acting Receiver-General.

S. GRAVES,

Acting Collector of Customs.

Enclosure 2 in No. 129.

EXTRACTS from the Minutes of the Proceedings of the Executive Council.

(Meeting held on the 8th January, 1904.)

*

XXII. Read report by the Financial Officers, No. 1853, dated 24th December, Des. 254/ on Secretary of State's despatch, No. 254, of the 3rd November, second paragraph, 03. asking that the Crown Agents should be informed as soon as possible when it will be necessary to raise the loans referred to in the Black River Railway and the Re- afforestation Loans Ordinances, and whether, in the meantime, they may begin to draw on the Colony to meet current expenses.

The Council are of opinion that the loans referred to, namely:

(a) Black River Railway, £40,000;

(b) Drainage, £23,500;

(c) Mare-aux-Vacoas, £17,000;

(d) Re-afforestation, £110,000;

as also the loan contemplated for the extension of the branch lines of railways, should be raised at the same time.

His Honour the Officer Administering the Government concurs, and orders

accordingly.

XXIII. The Officer Administering the Government also consulted the Council M.P.10537/ on the subject of the construction of the branch lines of railway, and laid before 03. the Council a memorandum prepared by the Surveyor-General, and submitted to the 18/12/03.

• Enclosure in No. 127.

† Printed as Enclosure in No. 122.

‡ No. 121.

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