CO885-(11-12) — Page 189

116

FUBLI

RECORD

OFFICE

། ། ། ། །

Reference :-

C.O.882/12

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE İBF REPRODUCED PHOTOGRAPHIC- | COPYRIGHT PHOTOGRAPH-NOT TO

90

It will be noted, of course, that this includes no allowance for Railway losses or charges on the Hurricane Loan advances to planters. In the Commissioners' estimate Rs.700,000 is allowed for these two items. Whether with the additional revenue proposed estimated on the reduced scale discussed above to bring in an additional Rs.500,000 net, the revenue for 1932-33 would be sufficient to cover this expenditure must depend I think on whether in the meantime there is any improvement in the sugar situation. The estimated revenue for the current year was Rs.13,699,962 plus approximately Rs.750,000 for additional customs excise duties, but as explained above I believe that we may have in fact to face a deficit of perhaps 14 million on this. If the present situation continues for another year I must say frankly that I do not think that even the full programme proposed by the Commissioners would achieve a balance of revenue and expenditure. If, however, there is any appreciable improvement in sugar prices I consider there would be a good prospect of even the reduced programme discussed in this despatch producing a revenue of gomething over Rs.14,000,000 (with the additional taxation suggested), i.e.. sufficient to meet the expenditure apart from the railway deficit and the charges on the Hurricane Loan which in that case would be recoverable without much difficulty from the planters.

18. Inasmuch as the reduced programme discussed above is not sufficient to meet the position, and even the full programme of the Commission's report is in my opinion quite likely to be insufficient to do so if the present acute depression continues unabated I think it is incumbent upon me-to explain more fully why I consider the adoption in full of the Commissioners' programme likely to be im- practicable. I have already outlined some of the reasons in my despatch of the 26th October.* As stated therein the recommenda- tions of the report are such that I believe that all interests in the Colony will very possibly combine in opposition to their full adop- tion, though there are portions which will appeal to each section. The proposals for additional taxation will I think be practically universally opposed by all sections as all the vocal elements in the population will be affected by them the cut" in Civil Service salaries though strongly urged by certain members of the Council will be strongly opposed so far as the junior grades are concerned by the Port Louis members and the member for Plaines Wilhems who reckon large numbers of Civil Servants among their con- stituents the retrenchments proposed will meet with opposition from the same quarter and I anticipate that the prospect of adding so considerably to the numbers of unemployed in that class will serve to combine other members against too drastic a retrenchment. The proposal that increased powers and duties be entrusted to the police is likely to be universally resisted as there is, unfortunately,

* No. 37.

91

very little confidence in their integrity as a whole, and in the case of the Port Louis members the position is aggravated by bitter personal feelings which have shown themselves on several occasions recently. The position in this respect and its effect on the force The proposals to has given me cause for considerable anxiety. increase the burdens on municipal and local bodies will also be unpopular though the feeling may be mitigated in the case of the Port Louis Municipality by the prospect of the restoration of their full functions. I doubt if they are, however, really so anxious to resume these functions if they are to involve additional financial burdens. Taken together, therefore, I expect the report as a whole to be badly received and to serve as already suggested to combine practically all sections in opposition to its recommendations. The interests concerned control the entire Press and will consequently be in a position to give full vent to their views. The newspapers themselves being affected by the suggestion for the withdrawal of free postage privileges, a matter of considerable importance to these journals whose financial position is at best highly precarious, will not be favourably disposed, though this is a minor issue as they write according to the instructions of their "backers

It is not,

of course, to be expected that proposals for taxation and retrench- ment should be popular but there are usually at any rate some elements in favour of them. I doubt if this will be the case here if the full programme of the Commission is adopted. The influence of the minor Civil Servant in local politics is unfortunately very strong and will be thrown against the proposals as a whole. In my opinion, if the full programme is attempted, it will very likely be impossible to secure the support of the nominated Members of Council, and the alternative courses then open would be either to pass measures by an official majority if the nominated members resigned or to suspend the Constitution. In either case there would be serious risk of disorders which would be greatly aggravated if large numbers of Railway employees are thrown out of work. It may, of course, prove that these apprehensions are exaggerated, but I feel bound to say that in my opinion they must be taken into account as a definite possibility.

19. It may reasonably be asked what alternative exists to measures which are confessedly the least that are likely to bring about financial equilibrium under the present conditions by orthodox methods. I can only say that if the present conditions continue without relief I do not think that any measures within the power of the local Government will be sufficient to tide over the situation and to maintain a balanced budget. It appears to me that the a temporary one, and palliative situation must be treated as measures adopted which will enable the Colony to carry on until The attempt to the restoration of normal economic conditions. re-establish equilibrium in a single year under existing conditions would to my mind place upon the Colony a strain which it would