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14. Lord Passfield trusts that these proposals will commend themselves to Their Lordships and that it will be possible for them to give a very early approval to them. The Governor has urged the importance of an immediate announcement of assistance from His Majesty's Government in order to avoid panic in the Colony, and Lord Passfield would like to be able to inform him within the next three days that His Majesty's Government will be prepared to seek the approval of Parliament for a free gift of £5,000 and a guarantee of a loan to be raised by Mauritius on the lines indicated above, subject to the condition suggested in paragraph 12.

I am,

etc.,

C.84556/31 [No. 21].

No. 32.

WALTER D. ELLIS.

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

(Sent 9.50 p.m., 1st April, 1931.)

[Answered by No. 33.]

No. 30. Confidential. Your telegram No. 31. Your telegram No. 32. His Majesty's Government have given earnest and sympathetic consideration to the difficulties of Mauritius in view of the recent hurricane and I am pleased to inform you that they have decided to seek the approval of Parliament for the following measures of assistance, on the conditions indicated below.

1. An immediate free gift of £5,000 in aid of the relief of actual distress to be made by His Majesty's Government.

2. His Majesty's Government to guarantee the interest and sinking fund payments of a loan to be raised by the Government of Mauritius to cover the cost of :-

(a) repair and replacement of

damaged in the hurricane;

Government property

(b) advances to private persons and companies to cover losses due to the hurricane by way of damage to property, stock, etc., and loss of growing crops;

(c) completion of public works upon which the Colonial Government has embarked but which it will be unable to complete from its own resources in the altered conditions due to the hurricane.

• No. 6.

+ No. 7.

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The conditions contemplated are :—

(i) General. The Colonial Government will consent to an investigation of its financial position by a Financial Commis- sion to be appointed by His Majesty's Government with a view to devising measures to produce a balanced Budget at the earliest possible date. In this connection it is suggested that the Council of Government should pass a formal resolu- tion indicating in general terms their willingness to assist in the carrying out of the measures which may be recommended by the proposed Commission.

(ii) As regards 2 (b) above, the advances will be for a period of years to be fixed in the circumstances of each case; will be constituted by law first liens on the properties involved and will be assessed with reference to the amount of hurricane damage and the borrower's own ability to bear the loss. Procedure will no doubt be on similar lines to those followed in the case of the similar advances made after the hurricane of 1892.

The principal work I had in mind in connection with 2 (c) is La Nicolière.

I shall be glad to learn as soon as possible whether the assistance proposed, on the conditions stated, is acceptable to the Colonial Government and to have your estimate of the amount of the loan to be raised, with full details under Heads 2 (a), (b), and (c).

You may publish this or any part of it when you think proper or, if you prefer, you may publish statement in general terms such as that His Majesty's Government is prepared to give assistance to repair hurricane damage, and details are under discussion with you. Inform me at once by telegraph what you publish.

C.84556/31 (No. 25].

No. 33.

Telegram from the Governor of Mauritius to the Secretary of State for the Colonies (Received 6.50 a.m., 4th April, 1931.)

4th April.

[Answered by No. 34.] Confidential.

No. 39.

Your telegram No. 30.* Substance is being published 4th April with following omissions : (i) terms of suggested resolution by Legislature, (ii) statement that period of advances will be fixed according to the circumstances of each case, (iii) statement that advances will depend on * No. 32.

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