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PUBLIC RECORD OFFICE

༅། ། ། ། ། །

Reference -

C.O.882/12

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE

·BF REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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will add greatly to the difficulties of general reform. The reduc- tion in railway costs which this scheme would achieve would result according to estimates furnished by the Railway Department and accepted by the Commission in working expenses of Rs.1,161,000 and a revenue of Rs.1,330,000. These figures ignore depreciation charges and outlay on pensions, and the latter will form a serious item, amounting probably to about Rs.215,000 or a deficit of R8.46,000 without allowance for depreciation.

10. This proposal, unsatisfactory as it appears, might neverthe less be on the whole probably the best solution when all factors are considered if it were not for the fact that it will involve the de- mobilization of about 800 men now employed on the railway for whom under the present depressed conditions no employment will be available. The estimates furnished indicate that in the case of about half these men pensious or some small compassionate allowance would be available under existing rules but for the remainder some special provision would be necessary. Even those who may be discharged with compassionate allowances would naturally be extremely disturbed at the loss of their employment and granting also that it is possible to provide some special form of compensatory allowance for the remainder, the presence of some seven or eight hundred men of the artizan class living in idleness on small allowances in the present condition of general depression is not a prospect to which it is possible to look forward with equanimity. It is precisely in this class that the most serious degree of unemployment already exists, a condition which has been unavoidably aggravated during the past year by the discharge of men employed on the harbour works and granary and those engaged in the Nicolière Irrigation Scheme. Only a fortnight ago I was approached on behalf of a body said to consist of about 300 unem- ployed men of the artizan class in Port Louis and it appeared on inquiry that their complaint was not very greatly exaggerated. To add to this number another few hundred with or without com- pensatory allowances will be to create a really dangerous element. Although the numbers may seem small to those accustomed to considering the unemployment figures in England, nevertheless in the conditions existing here, and in view of the mentality of the inen concerned, who are the most assertive and best organized group in the community, I am bound to submit that the position would entail serious danger of disorder. The claims of the men would be widely supported by more responsible elements who, for various reasons, would be opposed to the policy pursued. Moreover, should disturbances arise from this source the men directly concerned would undoubtedly be joined by much larger numbers who would have no immediate cause for personal grievance but would be easily misled into joining in any movement of protest. I recognize fully the grave financial position of the railway but I feel bound to draw attention to what I am convinced is a serious risk attendant on its

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partial demobilization and to submit that every effort must be made if this scheme is adopted to spread the retrenchment over as long a period as possible.

11. I am unable to do more in the short time at my disposal than to draw attention to the risks attendant on the immediate adoption of the full programme contained in the Commissioners' report. I fully appreciate the difficulty of their task and the extremely able and complete scheme which they have submitted to meet a very serious situation. I shall endeavour after closer examination of their proposals to suggest means of extending, if possible, the period of reorganization to reduce the dangers to which I have drawn attention. In the meanwhile I can only urge that if it proves possible to do this it would be wiser to extend the period of reform and to avoid placing on the community a burden which its traditions and present situation may render intolerable, even if this policy involves considerable financial risk.

C. 84574/31 [No. 1A].

I have, &c.,

W. E. F. JACKSON,

Governor.

No. 38.

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

3rd

(Received 2.31 p.m. 3rd December, 1931.) December. No. 165 Confidential. My despatch of 26th October.* Financial Commission Report. Further despatches follow on 4th November and 17th November. § Early decision advisable in respect of principle of reductions of salaries but scheme needs careful examination in its detailed application as this pro- posal has hitherto been treated as strictly confidential and may need modification of detail.

I understand that uncertainty regarding pensions is producing a number of applications for retirement before adoption of retrench- ment proposals which will involve heavy payments by way of gratuities. In my despatch of 17th November I have expressed strong doubts as to advisability of touching pensions and it would be advisable to announce as soon as possible that scheme of gratuities will not in any case he interfered with.

* No. 37.

† Eastern No. 161.

‡ No. 39.

$ NJ. 40.

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