CO885-(11-12) — Page 226

153

C. 93921/32 [No. 42].

164

No. 57.

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

(Sent 11.15 a.m., 16th March, 1932.)

No. 59. Confidential. Your telegram No. 46. I agree to pro- posed communication to Unofficial Members but would suggest for word

substitution of words "joint discussion and presentation consideration."-CUNLIFFE-LISTER.

C. 93949/32 [No. 2.].

11

No. 58.

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

165

3. At the same time, I fully realize that the existing burden of debt is one of the major permanent difficulties of the Mauritius sugar industry and it appears to be inevitable, if that burden is ever to be reduced, that there should some time be a general liquidation and that old mortgages and advances which have become irre- coverable should be recognized as bad debts and written off.

It

is probable that the Mauritius Government itself will have to do a certain amount of writing off of the advances made in recent be may years, and this should give it a powerful lever which useful if an opportunity later presents itself of a general financial readjustment. Although no immediate action is possible, the Colonial Government will no doubt keep continuously in mind the desirability of such a general readjustment, so that it may be ready to take any favourable opportunity of facilitating it.

4. The Commissioners support the action which has been taken to develop the fibre and tobacco industries. As regards the latter, they make a recommendation for the control of the Tobacco Board so as to bring it under the direct supervision of the central financial authority, and I shall be glad if you will put this recommendation into force unless you see serious objection to it.

I have, &c.,

P. CUNLIFFE-LISTER.

DOWNING STREET,

17th March, 1932.

PHELIC

(Confidential.)

SIR,

I have the honour to refer to Chapter XVI (Industrial Resources) of the Report on the Financial Situation of Mauritius, copies of which are now in your possession.

2. I have read with interest the Commissioners' views on the industrial resources of the Colony and consider that they are in general deserving of attention and study, although no immediate steps of importance are recommended by them for the development of those resources. As regards sugar, while suggesting that pos- sibly other accounts of the situation in Mauritius, including that of Sir Francis Watts, may have exaggerated the extent to which the cost of production exceeds current prices, the Commissioners agree that there are many estates which cannot possibly pay their way without a rise in prices, and they emphasize the burden of debt charges borne by the estates, and the very expensive system of financing. I agree with them, however, that any further loan to the industry by the Government, such as was proposed to them, to liquidate the existing position, is out of the question in present financial conditions.

* No. 56.

C. 93921/32 [No. 46].

No. 59.

Despatch from the Governor of Mauritius to the Secretary of State

(Confidential.)

Sir,

for the Colonies.

(Received 21st March, 1932.)

GOVERNMENT HOUSE,

PORT LOUIS.

19th February, 1932.

With reference to my telegrams No. 32 and No. 33t I have the honour to submit the following further report on the position as to the adoption of the measures recommended by the Financial Commission.

* No. 47.

10430

† No. 48.

L

RECORD OFFICE

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Reference

C.O.882/12

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