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Therefore I advise delay, and that you should utilise that delay by showing you are not to blame.

Do not force a crisis. I suggest using the Widows' and Orphans' Fund to stem off a crisis. My advice to you is not to oppose this. It is, at least, honestly given. As to the financial merits of the proposal, the whole amount is small, and it is of more importance from the Imperial point of view that you should not incur the reproach of forcing a Colony into bankruptcy than that we should indulge in a too rigid worship

of the monies of reserve funds.

This is a long rigmarole, but I am anxious to empty my sack, as we say here, and, at the risk of saying things that may not be pleasant, I empty my sack for what it may be worth.

27279

GENTLEMEN,

No. 196.

COLONIAL OFFICE to CROWN AGENTS.

Downing Street, August 8, 1904. I AM directed by Mr. Secretary Lyttelton to acknowledge the receipt of your letter of the 2nd instant,* reporting as to the arrangements made to meet the Mauritius debentures which fell due on the Ist instant.

As the enclosures to the letter from this Department of the 19th of Mayt indicated, it is intended to repay next August the debentures (amounting to £98,800) which then fall due, by means of the repayments by the planters of the first instalment of their loans, payment of which has in most cases been postponed from 30th June, 1904, till 30th June, 1905. The loan now authorised will, it is hoped, be paid off in 1906, when the planters repay the second deferred instalment of the advances under Ordinance 43 of 1902. There is no present intention of deferring the payment of the debentures due next August.

As you are aware from the telegram of 12th July, enclosed in the letter from this Department of the 15th ultimo, out of the total of £101,200 the planters, &c., have already repaid £15,349, and the Mauritius Government expects to recover a further £9,809 at the end of next month.

I am, &c.,

C. P. LUCAS.

$28672

SIR,

No. 198.

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

(No. 249.)

(Received August 15, 1904.)

[Answered by No. 203.]

Government House, Mauritius, July 14, 1904. WITH reference to your telegram of the 12th May last, I have the honour to enclose, for your information, a copy of a Minute which I have received from the Acting Colonial Secretary reporting the results of the various applications of planters for postponements of instalments due under Ordinance No. 43, of 1902.

year.

2.

Mr. Gibson's minute is so clear and comprehensive that I find little to add to it. I would, however, invite your attention to the enclosure to that Minute called Statement No. 3. It was with a view to the preparation of such a statement that I pressed for information from the planters respecting the results of their financial

3. We have now a statement of the financial results of a crop which aggregated 225,000 tons. This year's crop will not exceed, and may not reach, 160,000 tons. It is of course possible that the fall in quantity may be compensated by a rise in price. But, unless this rise takes the form of a material increase, I can hold out no hope that the crisis which has been tided over this year will not recur next year.

4. The hard times have compelled planters to cut down expenses to the lowest possible limit, and this wise economy if accompanied by a considerable rise in price, may enable some planters to pay, but I feel convinced that there are many who will be unable to pay under the most favourable conditions that can reasonably be hoped

for.

5. It must be remembered that, in addition to the instalments on the loan. the debt due by planters to the railway has fallen into arrear, and, although I did not last year feel justified in forcing legal proceedings to their logical conclusion, it will be my duty to report to Sir C. Boyle that the financial position of the Colonial Government does not permit of a further prolongation of the delay in collecting outstanding accounts.

I have, &c.,

GRAHAM BOWER, Administering the Government.

27279

SIR,

No. 197.

MR. LYTTELTON to ACTING GOVERNOR SIR G. BOWER.

(No. 190.)

Crown Agents, 2 August.

Downing Street, August 8, 1904.

WITH reference to your telegram of the 12th, and my despatch, No. 177, of the 28th ultimo I have the honour to enclose, for your To Crown Agents, 8 August.

information, copies of correspondence with the Crown Agents for the Colonies as to the arrangements for mecting the debentures which fell duc on the first of this month..

I have, &c.,

ALFRED LYTTELTON.

Enclosure in No. 198.

ACTING COLONIAL SECRETARY to OFFICER ADMINISTERING THE GOVERNMENT.

July 13, 1904.

I have the honour to enclose, for your information, the minutes of proceedingst of the Board of Commissioners under Ordinances 34 and 43 of 1902, at meetings held on the 23rd, 26th, and 30th May, 8th, 13th, and 27th June last, at which the applications of planters for the postponement of the payment of the instalments on loans made to them under Ordinance No. 43 of 1902 (Advances-in-Aid) authorized by Ordinance No. 2 of 1904, were considered.

I also annex:

10. A statement of the loans made under the Sugar Estates (Advances-in-Aid) Ordinance, 1902, giving the mortgage debt on the estates at the time the loans under Ordinances 34 and 43 were contracted.

A statement showing the instalments of the loans paid on or before the 30. A statement showing the receipts and payments of sugar estates on behalf of which applications for postponement have been received.

20.

30th June last.

• No. 190.

↑ No. 166. Nos. 184 and 189.

No. 184.

§ L.F.

Nos. 190 and 196.

1923.

• No. 162.

† Not reprinted.

2 K

PUBLIC RECORD OFFICE

Reference :-

C.O. 882

8

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO