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C. 84556/31 [No. 57],

No. 14.

85

No. 13.

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

(Received 5.26 p.m., 22nd May, 1931.)

[Answered by No. 14.]

No. 64. Confidential. 22nd May. Your telegram No. 48, cou- fidential.* Legislation will be necessary before any money can be advanced.

2. Bill had been prepared authorizing Government to borrow up to £750,000 under provisions of Ordinance No. 33 of 1922, as amended, subject to guarantee by His Majesty's Treasury. £75,000 for Government repairs, £150,000 for other Public Works, and maximum of £525,000 for advances to planters and others. Advances to be allocated on the advice of Board consisting of four officials and five other members nominated by Governor under Chairmanship of Colonial Secretary.

3. Bill stipulates that advances to be secured by first rank mort- gages with all necessary consent and legal requirements and. amounts limited to damage actually suffered and to be subject to the approval of Governor in Executive Council in each case. Maximin period of repayment 30 years with interest at 6 per cent. plus appropriate annuity. Expenses of Board and staff chargeable to Fund created under Bill.

4. Temporary borrowing pending issue of loan might be author- ized either by provisions added to above Bill or by resolution under Ordinance No. 21, 1924. In any case establishment of Board and stipulations in paragraph 3 above would seem to be necessary.

5. Impossible to estimate correctly amount likely to be required before the end of July but I suggest £200,000 for loan to planters and others plus £35,000 for Government repairs.

* No. 12.

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

(Sent 8.0 p.m., 29th May, 1931.) [Answered by Nos. 15 and 17.]

Draft Ordin- Your telegram No. 64.* No. 61. Confidential. ance authorizing raising of loan was sent with my Confidential despatch of 26th May. Ordinance to be passed immediately should be restricted to authorizing the making of advances to planters and others, up to a maximum of £500,000, from the pro- ceeds of a loan to be raised, and, pending the raising of the loan, from such funds as the Government may make available for the purpose.

Ordinance should provide for Board, as stated in your telegram, and for loans being made only on the recommendation of the Board and with the approval of the Governor in Executive Council. I approve the proposed conditions of the advances, except that the maxima should be the amounts of the expenditure necessitated by the damage caused by the hurricane. As I understand your proposals, it will be necessary to obtain consent of existing mort- gagees to making advances first liens on properties/involved. In the special circumstances, do you think it necessary and desirable that legislation should be passed charging the advances as first rank mortgages without the consent of the mortgagees. If so, should be prepared to consider it sympathetically if it would not be likely to arouse strong opposition. Of course there can be no advances without prior lien either by consent of the existing mort- gagees or by legislation.

I

Resolution under Ordinance 21 of 1924 would apparently be sufficient authority for issue of Treasury Bills. It will, of course, be understood that any temporary borrowing must fall to be re- When will money paid out of the proceeds of the guaranteed loan.

be needed? You will no doubt be able to give more exact estimate when Board has been set up and applications begin to be received, and I shall be glad if you will inform me at once if any change in the estimate seems necessary, and will endeavour to give as long notice as possible of the date or dates when funds will be required. Please submit for my prior approval proposed terms of reference and name and qualifications of members of Board.-PASSFIELD.

* No. 13.

† No. C. 84581/1/81 [No. 9].

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