CO885-(11-12) — Page 191

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PUBLIC RECORD OFFICE

Reference -

11.C.O.882/12

PUBLIC RECORD OFFICE, LONDON

|ALLY,WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- |COPCRIGHT PHOTOGRAPH—NỘI TO

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in my opinion a very awkward one. There is no alternative em- ployment for these men who belong to the class in which unem- ployment is already most severe, and in common humanity some means of assisting them would be imperative. The small allow ances and gratuities which some of them would receive would in many cases be insufficient to support them, e.g., the amount allowed for gratuities and allowances to 394 men on the non-pensionable staff is Rs.73,392 or approximately Rs.160 per man.

A very great number would receive much less than this.

23. In this case again I think it is imperative that means be found to spread the burden of retrenchment over a longer period. 1 have accordingly asked Mr. Austen, the General Manager, tu draw up a scheme by which this reduction could be brought about more gradually. I attach a copy of a return prepared by him showing four stages in the process of reduction. The first to take effect immediately would reduce the anticipated deficit for the current year to the figure estimated by the Commissioners, and in subsequent years would keep it within their figure of Rs.300,000. The return has necessarily been hurriedly prepared but should represent at least an approximation to what might be achieved. I am disappointed to find that the immediate economies necessary involve the discharge of 384 men. This is a serions addition to the unemployed class and I must admit I am very reluctant to con- template such a situation unless some relief work can be provided. The only possible works are the Harbour scheme discussed by the Imperial Shipping Committee and the drainage scheme for Port Louis which was suggested for consideration in connexion with the Colonial Development Fund. Of these two there is no question which is the more effective economically. The Commissioners I know view the expenditures already undertaken on the Harbour as an extravagance but I cannot see that a scheme which does really provide for cheaper handling of goods and saving of charges sufficient to pay the interest on the capital outlay can fairly be so regarded. For good or ill Mauritius has been developed to a high degree and supports or has supported a crowded population; and the consequences of that development must be faced. If there were any prospect of the capital required for the Harbour scheme being guaranteed by the Colonial Development Fund, the problem of rail- way reductions which is the most difficult facing the Colony at the present time in so far as internal reorganization is concerned would be immensely simplified. Failing this the only alternative I can see is a system of doles a disastrous innovation in the con- ditions of this Colony, and one accompanied by considerable dangers other than those of a purely economic character.

24. In any event the reduction of the Railway to a goods level must I submit be spread over a period of two or three years unless of course in the interval there is some unexpected improvement in economic conditions. Even so this will be a matter of great

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difficulty and loth as I am to urge any further outlay on capital works at the present time I feel bound to press the inquiry whether there is any prospect of the harbour scheme which the Imperial Shipping Committee approved in principle receiving support from the Colonial Development Fund or other sources, by way of a guarantee of loan interest. I quite realize all the objections that can be urged and very properly urged to any addition to loan charges at the present time. I may point out, however, that the position of the Colony's public debt is such that while at present the burden is very heavy, these charges will be relieved in five years' time by the maturity of the following loans for which sink- ing funds are available :-

Expiring: 1937-1887 Loan £482,391 .

Annual Charges. Rs. 321,595

1936-La Nicolière Loan

1921-

Rs. 500,000

56,250

1934-La Nicolière Loan Rs.500,000

1919-

56,250

Rs.434,095

25. The foregoing very hasty review of the position may be summed up as follows:-

(1) The plan of reorganization suggested by the Commission is in my opinion too extensive and drastic to be carried out in a single year.

(2) It is essential therefore in my view that means be found to spread the process of retrenchment over a longer period.

(3) To provide funds to enable this to be done I consider that the advances made by the Treasury for loan works in anticipation of the raising of loans should be refunded in accord- ance with the intentions of the Mauritius Loan Guarantee Act. I do not regard this as waste money as I am convinced that these works will ultimately be brought into use.

(4) Whatever steps may be taken necessary retrenchments will add so seriously to the problem of unemployment that if at all possible some relief works should be found.

26. The Financial Commissioners may no doubt consider that my anticipations as to the difficulty of carrying out these reforms are exaggerated. I do not think however that it was possible for them in the course of a short visit to the Colony and with no previous experience of similar conditions to appreciate the diffi- culties, delays, and passive resistance which may be encountered in carrying out a progranime which I am satisfied that all sections of the community, including official as well as unofficial opinion, will regard as involving an excessive strain on the Colony, and I

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