CO882-(6-8) — Page 302

PUBLIC RECORD OFFICE

Reference :-

PC.O. 882

8 PUBLIC RECORD OFFICE, LONDON

| ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO|

23625

SIR,

216

No. 181.

ACTING-GOVERNOR SIR G. BOWER to MR. LYTTELTON.

(Confidential.)

(Received July 4, 1904.)

[Answered by No. 185.]

}

Government House, Mauritius, May 26, 1904. WITH reference to your telegram of the 12th May,* I have the honour to enclose, for your information, copies of the following documents:-

10. Minute from Officer Administering the Government to Loan Board, dated

20th May;

20. Minutes of Loan Board, dated 23rd May;

30. Minute of Officer Administering the Government to Loan Board, dated

25th May;

This correspondence calls for some explanation.

2. It was recently stated in the newspapers that one of the estates (The Beau Plan Sugar Estate Company), which had borrowed money under the Advances-in- Aid Ordinance had paid a dividend of nine per cent. I was informed privately that this estate intended to apply for a postponement.

3. A gentleman who had also borrowed under the same Ordinance had stated publicly in Council that his estate had made a profit of Rs. 200,000. I have since been informed that, in making this statement, the gentleman was mistaken, and that on balancing receipts and expenditure he is likely to find that he has made no profit.

4. I have also been informed by various gentlemen that it is doubtful if the instalment falling due next year can be paid.

5. Under these circumstances it seemed to be my duty in the exercise of the discretion conferred on me, to secure for the Government any fraction of the instal- ment now due that can be paid. For it is evident that if any fraction can be paid the security of the Government will be proportionately improved, that is to say, the security will be the same, but the liability will be reduced, and the position of the Government as creditor will be strengthened. I accordingly addressed my Minute of the 20th May to the Colonial Secretary for communication to the Loan Board. 6. A debate took place in the Loan Board, and a resolution was proposed by Mr. Ritter and subsequently carried by a majority of one, the official members voting with Mr. Ritter.

6. On the 25th instant I received a visit from Mr. L. Antelme, the Chairman of the Crédit Foncier. He explained that he and a number of other gentlemen conceived that your intention was to postpone the whole instalment, sans phrase, and in that way to confer a boon on the Colony as the companies which had made a profit could afford to lend money to their less fortunate brethren if they were not called on to pay the Government. He, therefore, asked me to reconsider the attitude of the Government in respect of Mr. Ritter's motion, and to accept Mr. Leclézio's amendment which, as he explained, was intended to require a statement showing what the planters had done with the money lent them by Government, and did not require the production of a balance sheet or état de situation.

7. I told Mr. Antelme that, in view of the doubts which had arisen as to the payment of next year's instalment, I felt bound to strengthen the position of the Government, and to secure, if possible, some fraction of the instalment, and thus lessen the liability of the planters. I could not say how far I could insist on that without a balance sheet or état de situation.

.

8. Mr. Antelme then went on to say that the Crédit Foncier would be very unwilling to show an état de situation as neither the people in Mauritius nor the shareholders in London were aware of the precarious position of the Company. He added that I must be aware of the serious consequences that would follow on the collapse of his Company.

• No. 162.

217

9. I informed him that I did not desire to force any single estate into liqui- dation; that my desire was to interpret my instructions in the most liberal spirit, but that I could not act with my eyes shut, and that I must know the facts.

10. Mr. Antelme then said he would furnish me with any statement I wished, but he did not desire to make any communication to the Loan Board, as he could not rely on their secrecy.

11.

I promised to consider this point, and on reflection I felt that as I was instructed to follow the same procedure as in the original advance, I could not put aside the Loan Board, nor could I ask them to advise in ignorance of facts which were only to be communicated to me.

12. I could, however, appeal to their honour to respect honourable confidences, and I wrote my Minute of the 25th May.

13. As Lord Stanmore is Chairman of the Crédit Foncier I think it possible that you may receive some communication from him or from the London Directorate of the Company, and I think it desirable to inform you without delay of the course I am pursuing, so that if that course should not receive your approval, I may receive fresh instructions

I have, &c.,

GRAHAM BOWER, Administering the Government.

Enclosure 1 in No. 181.

OFFICER ADMINISTERING THE GOVERNMENT to ACTING COLONIAL SECRETARY. With reference to Ordinance No. 2, of 1904, I desire to call your attention to the fact that, under the instructions of the Secretary of State, full discretion is left to the Officer Administering the Government to accept or reject applications for postponement; I understand this to mean:-

1. That the Officer Administering the Government is to satisfy himself that there is an absolute necessity for such postponement, that is to say, that the estate cannot carry on unless postponement is granted.

2. That the position of the estate is such that the Government is secure, and that their position will be in no way prejudiced by granting the application.

3. That so much of the loan as the estate can afford to pay will be paid, and that if, for instance, the estate can afford to pay half the instalment an application to postpone the whole will not be recommended.

I will be glad if you will explain this to the Loan Board before considering the applications. I need hardly add that I hold the Board has a full right to call for any documents or other information they may require to satisfy themselves on these points.

GRAHAM BOWER.

May 20, 1904.

(No. 27 of 1904.)

Enclosure 2 in No. 181.

BOARD OF COMMISSIONERS.

Under Ordinances Nos. 34 and 43 of 1902.

Meeting held on Monday, the 23rd May, 1904, at 12.30 o'clock, p.m.

PRESENT:

The Honourable F. A. Gibson, I.S.O., Acting Colonial Secretary,

Chairman.

F. T. Piggott, Procureur and Advocate-General.

L. S. R. du Vergé, I.S.O., Acting Receiver-General.

G. R. Dick, M.A., Auditor-General.

11

"

21

L. Souchon.

11

P. E. de Chazal, C.M.G.

H. Leclézio, C.M.G.

Dr. W. T. A. Edwards, C.M.G.

1J

22

"

G. A. Ritter, C.M.G.

"1

19234

Léopold Antelme.

2 E