CO885-(11-12) — Page 247

202

C. 93921/32 [No. 65].

No. 69.

C. 93934/32 [No. 66].

203

No. 70.

172

PALIC

PECORD

OFFICE

Reference

C.O.882/12

་་ ས

PUBLIC RECORD OFFICE, LONDON,

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH—NOT 10|

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

(Received 10.14 a.m., 12th May, 1932.)

[Answered by No. 70.]

12th May.

No. 81. Confidential. It has become generally known that the balance(s) of the hurricane loan is being withheld pending settlement of Budget question and, as I anticipated, has had a very bad effect on public feeling which is greatly embittered.

On the other hand Unofficial Members are in a much more reasonablé frame of mind as to Budget question itself and if left to themselves I am positive that Budget difficulty will be settled and income tax accepted. I expect an assurance as to this in day or

two.

Position of Commercial Bank is, however, acute and if any hint of this gets abroad all hopes of settlement will be gone as these excitable people lose control of themselves in such a circumstance and Unofficial Members will be carried away by public pressure. It is not merely a question of disturbance but of financial break- down of sugar crop arrangements with serious and permanent consequences.

In the circumstances I earnestly beg that I may be authorized to inform members that arrangements are being made for remitting balance of loan in next few days and that Blyth Brothers may be informed that payment is assured.

Local temperament is such that some indication of trust at this stage would have great influence in effecting settlement. It is impossible to explain whole situation by telegraph but I beg you to accept my assurance that in my considered opinion this is best step to aid in bringing about a settlement and is urgently necessary on financial grounds.

I request favour of an immediate reply.

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

(Sent 8.45 p.m., 12th May, 1932.)

[Answered by No. 71.]

No. 91. Confidential. Your telegram No. 81.* I approve your informing Unofficial Members as proposed. Blyth, Green, Jourdain and Company are being informed similarly. Crown Agents are being instructed to remit after Whitsun the balance of the loan remaining in their hands. This is now somewhat less than Crown £200,000 as they have been using it for current expenses. Agents will telegraph exact amount. assume you will sell securities as necessary to make up the required sum.

I

Remittance

will be made in same manner as before. Distribution of loan funds may be resumed as soon as remittance received. This action taken on understanding that you are fully prepared to use official vote to secure prompt passage of measures for taxation and retrench- ment.-CUNLIFFE-LISTER.

C. 93921/32 [No. 67].

No. 71.

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

(Received 8.0. a.m., 16th May, 1932.) [Answered by No. 72.]

16th May. No. 82. Confidential. Your 91t as pointed out in my 81 some concession in the matter of retrenchment of staff is I think essential. The growth of poverty and distress is most dis- heartening and naturally involves great pressure on Unofficial Members to resist further retrenchment. Distress is (corrupt group) increasing as may be seen from the increasing distress and lowered birth-rate. A big retrenchment has in fact been carried out involving discharge or retirement of nearly 400 permanent em-

* No. 69.

† No. 70.

!