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possible that the present population of Mauritius could be main- tained by any other means than the continuance of sugar cultiva- tion. There are about 550 persons to the square mile and it is obvious that it would take many years to develop alternative in- dustries, if such could be found, to a degree sufficient to support such a population. Emigration on a large scale presents very serious difficulties as it seems doubtful if any of the neighbouring African territories could absorb or would be prepared to admit any large number of Mauritians. Although nearly seven-tenths of the people are of Indian origin the majority have been long settled in the Colony and have lost touch with their mother- country, they could not be repatriated to their country of origin. Settlement on the land would no doubt be possible to a consider- able extent but the Mauritius Indian, owing to his rice-eating habits, has not the same capacity as the-West Indian agricultural labourer for supporting himself from the land and so long as any sale can be found for sugar-cane prefers to grow cane and buy rice. It would take him some years to acquire different habits of diet and the necessary agricultural experience to maintain him- self in an island where rice-growing has not yet proved profitable. I'ressure of circumstances would in time bring about the necessary changes and I am informed that there is already a promising increase in the amount of foodstuffs locally grown. I have urged the Agricultural Department to devote themselves especially to encouraging this tendency. Whatever might be the ultimate solu- tion there can I think be no possible doubt that the collapse of the sugar industry would be followed by sheer starvation among a lamentably large section of the population which no measures other than direct relief could mitigate. Apart from the Indian agricul- tural population the distress among the creole urban dwellers would be disastrous in extent.

16. These conditions of course are well known. I only recapitu- late them here to emphasize the fact that the situation of the Colony is such that if the sugar industry is to be regarded as moribund, no efforts of the local Government in the direction of raising additional revenue or economising in public services can be effective in producing financial equilibrium while the strain placed on the population by such measures if attempted on a really effective scale, can only serve to accelerate the inevitable collapse. If on the other hand the sugar crisis is regarded as a temporary though severe slump " and financial policy can be framed in expectation that within a year or two the industry will at least have reached a stage when its continuance can be looked to with reasonable confidence then I submit that the means proposed in this despatch of meeting the budget deficit would be sufficient for the time being and would avoid imposing on the population sacri- fices which would under present conditions form a serious aggrava- tion of their already difficult and precarious situation. I entirely

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agree that the administrative machinery of the Government needs thoroughly overhauling with a view to permanent economy in operations if this is possible, as I think it is, and that meanwhile every effort must be made to reduce expenditure but effective re- organization cannot be immediately carried out without swelling unduly an already inflated pension list. In the interval therefore I trust that temporary assistance can be afforded as proposed.

I have, &c.,

C. 84507/31 [No. 3].

No. 26.

Sir,

W. E. F. JACKSON,

Governor.

Letter from the Colonial Office to the Treasury.

DOWNING STREET,

23rd March, 1931.

I am directed by Lord Passfield to request you to lay before the Lords Commissioners of His Majesty's Treasury, for their con- sideration, the accompanying copies of correspondence with the Governor of Mauritius regarding the financial situation of the Colony.

2. Lord Passfield has for some time felt a growing concern as to the financial situation and prospects of the Mauritius Government and on the 8th of January! he sent a telegram to the Governor of which a copy is enclosed, requesting information as to the progress of revenue and expenditure and as to the Governor's proposals for meeting the situation. He has now received a despatch, dated the 20th of January, of which a copy is enclosed, and in which the Governor reviews the situation and puts forward certain suggestions for remedying the respective large excess of expenditure over revenue in the next financial year, commencing on the 1st of July, 1931. The Governor had already submitted a review of the cash position of the Government in a despatch of the 16th of January§ of which a copy, together with a copy of the reply, is also enclosed.

3. It will be seen that the Governor makes two main proposals, one connected with the Colony's Military contribution, and the other with the Widows' and Orphans' Pension Fund. The latter

* C. 74583/30 [No. 24] and No. C. 84537/91 [No. 7]: not printed and Nos. 24 and 25.

* No. 25. † C. 74583/30 [No. 24]: not printed. C. 84537/31 [No. 7]: not printed.

§ No. 24.

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PUBLIC RECORD OFFICE

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