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8. The next development was an intimation from the Maldivian Government Representative on 22nd August that the merchants at Malé had again closed their shops on 13th August, and that the Maldivian Government; to protect the merchants from popular indignation, had proclaimed martial law, had concentrated the merchants at the Mosque under a Police guard, and had reported two of the ringleaders to Colombo. The reason for this second strike appears to have been the dissatisfaction of the merchants with the reply given by the Maldivian Government to their memorial asking for the redress of their grievances. The Maldivian Government were apprehensive of a shortage of rice, but inquiries made locally showed that the Colombo Borah merchants had held to their undertaking to maintain a regular supply.

9. At the request of the Maldivian Government Representative the Chief Secretary held further conferences with representatives of the Maldivian Government and the Borah merchants and, at a final meeting held on 29th August, of which I attach a note, a measure of agreement was reached on certain points while a state- ment was drawn up of the main points of dispute outstanding. These points the Maldivian representatives undertook to place before their Government with a view to reaching an amicable settlement. In the meantime the merchants have renewed their undertaking to maintain supplies, and have accepted the assurance given on behalf of the Maldivian Government that the lives and property of their representatives in Malé will be adequately protected.

10. I have addressed a letter to His Highness the Sultan of the Maldives (copy enclosed), commending to him the importance of reaching an amicable settlement of the points at issue without delay, and it appears probable that, at any rate for the present, the Maldivian Government will settle this dispute satisfactorily. I shall keep you informed of any further developments of interest in the matter. I am satisfied that at the present time no circumstances exist which would justify a departure from this Government's policy of non-intervention in local Maldivian affairs which is referred to in the second paragraph of your Confidential despatch of 9th May, 1932.*

I have, &c.,

Enclosure 1 in No. 13.

GRAEME THOMSON,

Governor.

NOTES OF A CONFERENCE BETWEEN THE MALDIVIAN GOVERNMENT REPRESENTATIVE, THE MALDIVIAN HOME MINISTER, AND REPRESENTATIVES OF THE BORAH Merchants, presided over BY THE CHIEF SECRETARY.

Present:

THE CHIEF SECRETARY.

MR. I. X. PEReira, M.S.C.

MR. H. A. KAMIL DIDI, Minister for Home Affairs and

Education, Malé.

MR. E. A. H. DIDI, Maldivian Government Representative. MR. E. G. ADAMALLY.

MR. E. MAMOOJEE, and two other Borah merchants.

MR. E. R. TAMBIмUTTU appearing on behalf of the Borah

merchants.

MR. J. A. MULHALL, Assistant Chief Secretary.

THE CHIEF SECRETARY stated that he hoped that a frank discussion would make

it possible to arrive at a settlement.

The chief questions to be discussed were-

(1) the safety of lives and property of foreigners in the Maldives;

(2) the economic question; and

(3) the allegations of harassment by the Maldivian Government.

(1) After some discussion of the incidents of the second strike at Malé, Mr. Tambimuttu. on behalf of the Borah merchants, said that they were satisfied that the Maldivian Government was competent to look after its internal affairs and they were willing to accept an assurance from the Maldivian Government that it would afford adequate protection to the lives and property of the foreign trading community in Malé. The Maldivian Home Minister and the Maldivian Government Representative, on behalf of the Maldivian Government gave this assurance.

* No. 10.

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MR. TAMBIMUTTU on behalf of the Borah merchants confirmed the assurance given by the merchants that pending, settlement of this dispute they would maintain regular supplies to the Maldives.

(2) MR. TAMBIMUTTU then raised the question of the precise intention of the Mal- divian Government in regard to the rice trade, and inquired whether it was the Govern- ment's intention to create a Government monopoly and deprive the Borah merchants of all share in the trade.

THE HOME MINISTER stated that the intention of a law passed two months ago was to make the Government the sole importer of rice. He and the Maldivian Govern- ment Representative went on to explain that the rice when imported would be sold by the Government to the merchants at cost price, and that the merchants would then be free to sell or barter it to the Maldivians.

THE CHIEF SECRETARY pointed out that the importing of rice by the Governinent alone would probably result in an increase in the selling price. This would cause discontent among the Maldivian people who would naturally blame the traders who sold the rice to them. The traders would be unlikely to accept this position, and the proposal really amounted to doing without them altogether. There was also the possibility of loss to the Government resulting from the fluctuating price of the commodity.

THE MALDIVIAN GOVERNMENT REPRESENTATIVE stated that he did not think that his Government contemplated a monopoly to the complete exclusion of the Borah merchants.

MR. TAMBIMUTTU asked why the Maldivian Government should not import rice and sell it to their own traders, and let the Borah merchants import rice for their traders, provided that no unfair duty was imposed on the Borah merchants' rice.

It was agreed that Maldivian Representatives should consider the matter further, and ascertain exactly what is the intention of the Maldivian Government.

(3) (a) MR. TAMBIMUTTU then referred to the hardships involved by the Maldivian. Government requiring an Inspector to be present at all sales, for the purpose of detecting the use of short weights. There were only six Inspectors for 100 shops.

THE MALDIVIAN GOVERNMENT REPRESENTATIVE stated that there was no legal objection to these transactions taking place without the presence of Inspectors and people were only fined if proved to have given short weight.

(b) MR. TAMBIMUTTU represented that the traders object to these cases going before Ministers. They would be satisfied if they went before the Magistrates in the ordinary, course.

(c) MR. TAMBIMUTTU further asked whether the Maldivian Government would have any objection to a representative of the merchants being appointed to deal with the Government on their behalf, and whether the Government would be prepared to recognize him..

(d) Reference was then made to the Curfew Regulation to which the Borah merchants objected on the ground that it was an unnecessary restriction of liberty and caused hardship. The Maldivian Government Representative stated that its purpose was to prevent disturbances and immoral behaviour. Mr. Tambimuttu on behalf of the Borah merchants asked that the question of relaxing the regulation should be considered.

(e) MR. TAMBIMUTTU then referred to the restriction on sanitary arrangements, and asked that the traders should be allowed to erect their own latrines at their own expense. The Maldivian Government Representative agreed that the Maldivian Govern- ment could have no objection to such a proposal provided there was nothing objection- able from a sanitary point of view. He would ask the Government to come to a settlement as regards sanitary arrangements.

(f) MR. TAMBI MUTTU then stated that the Borah merchants were charged a higher rent than the Maldivians, and that difficulties were placed in the way of their recovering debts.

THE CHIEF SECRETARY said that he thought that it was natural for the outsiders to be charged a higher rent. It was not peculiar to the Maldives.

THE MALDIVIAN HOME MINISTER said that there was no discrimination against the Borahs in the recovery of debts. There was one law for all.

(g) MR. TAMBIMUTTU then referred to the deportation of two traders from the Maldives, and also to the fact that the traders remaining there had, at the request of the Maldivian Government, signed an agreement to refrain from further strikes, and he asked for an assurance from the Maldivian Government that these traders would be allowed to leave the Maldive Islands at any time they wished.

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