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other Charges amounting at least to Rs.300,000. They would similarly be prepared to give a detailed statement of those savings. The cuts and other retrenchments among the Civil Service and the Budget in general would amount to Rs.1,150,000.

The Members for Port Louis are ready to accept, as an ex- ceptional measure, in view of calling everybody to contribute to the balancing of the Budget, the Commissioners' suggestion re- specting a levy on Pensions. They believe that the rate of 5 per cent. fixed by the Commissioners should apply to pensions of not more than Rs.2,400 per annum and that a rate of 10 per cent. could be applied to pensions exceeding Rs.2,400. This levy would produce about Rs.80,000 per annum.

The Members for Port Louis are ready to accept with a few modifications and additions, the revision of the Customs Tariff in respect of certain articles as proposed by Government. They are not. certain that this proposal could result in additional revenue of Rs.300,000, but they believe that that amount could be obtained if the proposal were made to include a few other articles not of primary need for the bulk of the population. The question could be more conveniently dealt with in the usual way, i.e., at a meeting of the General Committee of the Council.

Summary of proposals.

Civil Service Levy

Retrenchment

Reductions in Other Charges

Levy on Pensions

Customs Tariff

199

They, therefore, do not think it their duty to take the initiative of proposals for new taxation before they are aware of the in- tentions of Government concerning the reduction in expenditure. The two Members for Port Louis regret they have been unable to submit a more detailed scheme, showing more precisely the reasons on which their views are based, for only two days have passed since their deliberations with the other Unofficial Members have come to an end. But they could be in a position to do so in the near future, as well as to submit further remarks regarding the Commissioners' Report.

C. 93945/32 [No. 5].

No. 68.

Despatch from the Secretary of State for the Colonies to the

Rs.

650,000

(Confidential (2.) )

200,000

SIR,

300,000

80,000 300,000

Governor of Mauritius.

[Answered by No. 77.]

DOWNING STREET,

4th May, 1932.

Or in round figures, a minimum of Rs.1,500,000.

Rs.1,530,000

The Members for Port Louis believe that these measures, which can be carried out within short period, added to the curtailments already effected by Government notably at the Railways, would go a long way in helping Government to prepare a balanced Budget for the financial year 1932-33.

Since the Unofficial Members of the Council have started their movement towards a substantial reduction of Government expendi- ture, the situation has developed in such a way as to convince them that the Budget could not be balanced solely by a reduction in expenditure, unless drastic measures were resorted to, which would greatly upset the public services and have deplorable effects upon the social life of the Colony. Consequently the question of new taxation must inevitably arise, but the Members for Port Louis will not be in a position to make up their minds as to the nature and extent of proposals for new taxation before ascertaining in what proportion Government is prepared to reduce its expenditure for 1932-33.

I have the honour to refer to Chapter 10 of the Report of the Mauritius Financial Commission containing the Commissioners' proposals regarding Railways and Harbour, and to your Confidential despatch of the 4th of November, in which you commented on these proposals and transmitted a scheme prepared by the General Manager of the Railways for carrying them out.

2. The Commissioners recommend that the Bois Cheri Light Railway and the Montagne Longue Branch should be closed en- tirely. A local Committee investigated the affairs of the Bois Cheri Light Railway in 1924, and recommended that the Railway should be closed to traffic from the 1st of January to the 15th of July every year. The Railway Commissioners in their interim report, dated the 12th of December, 1928, also expressed the opinion that except for occasional train loads or some specially paying contract the Bois Cheri Line should be closed during the entre-coupe. They also recommended that the position should be most carefully re- viewed every year.

With regard to the Montagne Longue Branch, the Railway Com- missioners in their interim report, dated 23rd October, 1928, reached the conclusion that the line must be closed. The Railway Com- Inissioners, however, subsequently advised that the closing of the

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* No. 39.

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PUBLIC PECORD OFFICE

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Reference -

C.O.882/12

COPYRIGHT PHOTOGRAPH-NOT TO]

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PUBLIC RECORD OFFICE. LONDON

ALLY WITHOUT PERMISSION OF THE REPRODUCED PHOTOGRAPHIC-