69
My Lords recognize that at this late date it may not be prac- ticable to frame the Estimates for 1931-32 on any other basis than that of the existing commitments of the Colonial Government, sub- ject to the economies in expenditure and the measures for increasing taxation which have been proposed by the Governor.
It is clear, however, that drastic reductions of expenditure will be necessary if, as the Governor suggests, no important increases of taxation are at present feasible, and Their Lordships consider that the Governor should review without delay the whole field of Government expenditure in order that he may be in a position to express his own views as to the least harmful directions in which large reductions could be made when the Financial Com- mission arrive in the Colony.
I am, &c.,
H. E. FASS.
68
It is clear, however, that drastic reductions of expenditure will be Lecessary it, as you suggest, no further important increases in taxation are at present feasible, and you should review without delay the whole field of Government expenditure in order that you may be in a position to express your own views as to the least harmful directions in which large reductions could be made when the Financial Commission arrive in the Colony.
The special export duty should be included in the Estimates and you should not at present give any pledge to remit it though the Estimates should be framed on the possibility that the duty will be remitted, that is to say a token sum only should be included. The decision whether the duty should be collected in whole or in part must depend on developments in the world sugar situation and the results of the review of the position by the Financial Commission.-PASSFIELD.
102
C. 84507/31 [No. 16].
No. 30.
Telegram from the Secretary of State for the Colonies to the
No. 55.
Governor of Mauritius.
(Sent 2.45 p.m. 19th May, 1931.)
Confidential.
•
Your telegram No. 48, your telegram
No. 58, your telegram No. 60.‡
I agree that Estimates for 1931-32 must be framed on the basis of the existing commitments of the Colonial Government, subject
to the economies you propose and such others as you may be able to introduce, and to the measures of increased taxation of which particulars are given in your telegram No. 58. Consideration of proposal for temporary remission of Military contribution will be deferred until the position of the Colony has been examined by the Financial Commission. Your proposal regarding the Widows' and Orphans' Pensions Fund is still under consideration here, but decision will probably be deferred until it has been examined by the Financial Commission.
* No. 27.
† C. 84507/31 [No. 12]: not printed.
C. 84507/31 [No. 13]: not printed.
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