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indebtedness of estates to principal merchants for supplies fur- nished. This exceeds Rupees 5,800,000 and is usually liquidated on opening of Banks and other credits in April. Merchants are therefore heavily involved and unless usual credits are forthcoming position will be very serious. Owing to long period of depression, credit has been strained to the utmost extent and reserves exhausted and I am convinced that special assistance is necessary to secure financing of crop and essential repairs of damage. It is excessively difficult to fix in advance amount required but I strongly support the view that an early assurance that special assistance will be considered is urgently necessary. If this can be given, confidence will be restored and essential advances secured for the time being. Meanwhile conditions of assistance might be considered so as to make it as far as possible proportionate to loss actually incurred. I should be grateful for advice as to the form which you consider such assistance might be expected to take. In addition to sugar industry I fear Government will also need help to meet cost of repairs given in my telegram No. 31, paragraph 1. Position with regard to unemployment and distress of general population depends entirely on measures for financing crop. If this can be secured, demand for labour will be better than before owing to essential repair work. If finance crop breaks down, situation will be acute and large grant to relieve distress would be needed.

C. 84556/31 [No. 30].

No. 9.

Telegram from the Governor of Mauritius to the Secretary of State for the Colonies.

(Received 10.47 a.m., 11th April, 1931.)

11th April. No. 40. Chamber of Agriculture have requested me to communicate to you by cable resolution containing assurance of their most grateful thanks for your telegram of sympathetic appre- ciation of the situation in the Colony and for prompt response which you have been pleased to make to their appeal. In letter forwarding above they said (1) that proposed loan could only produce beneficial effect intended if period of repayment by planters can be extended over a long term with easy rate of interest, (2) that in some cases where assistance is most needed requirements as to loan being secured by first lien on property may prevent advantage being taken of loan. They subsequently enquired verbally whether His Majesty's Government would consider as an alternative for first lien on property concerned a first charge on annual crops over: a term of years, the period of repayment in this case being fixed at a shorter term than in case of first lien on property.

C. 84556/31 [No. 15].

No. 8.

Telegram from the Governor of Mauritius to the Secretary of State for the Colonies. (Paraphrase),

(Received 6.47 a.m., 23rd March, 1931.)

No. 33. 22nd March. I understand that I shall receive official intimation to-morrow from French Consul that H sum of 250,000 francs has been voted by Government of Madagascar in aid of sufferers of Mauritius hurricane. Further contribution(s) from private source(s) to follow. This is, no doubt, reply to action taken by Mauritius in 1927 when a sum of 200,000 francs was voted to Madagascar hurricane sufferers, but I submit that it emphasizes desirability of early declaration that His Majesty's Government will be prepared to consider special assistance as sug- gested in my telegram No. 32 of 22nd March. Very unfortunate effect on local sentiment may otherwise be produced.

C. 84556/31 [No. 32].

1

No. 10.

SIR,

Letter from the Colonial Office to the Treasury, DOWNING STREET,

14th April, 1931.

I am directed by Lord Passfield to refer to the letter from this Office of the 2nd of April on the subject of financial assistance for the Government of Mauritius and to transmit, to be laid before the Lords Commissioners of His Majesty's Treasury, copies of further telegraphic correspondencet with the Governor.

2. I am to take this opportunity to convey an expression of Lord Passfield's thanks to Their Lordships for their sympathetic response to his appeal for financial aid for the Colony.

I am, etc.,

G. JONES:

* No. 7.

* C 84556/31 [No. 23]: not printed.

+ Nos. 9, 33 and 34.

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