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outlook. Bureau of Chamber of Agriculture does not anticipate serious unemploy- ment amongst field labourers for 1931, but I am anxious as to situation after April when planting for 1932 crops would normally be undertaken. There is, however, admitted to be considerable unemployment amongst skilled labourers and artisans especially in Port Louis, owing to restriction of construction and repair work, and this is likely to grow more severe. Proposals are being submitted for assistance from the Colonial Development Fund for a number of works which would relieve the situation

to some extent.

(3) It seems improbable that there will be any appreciable reduction of output for 1931 crop which has already been planted, but operations may be restricted in April in connexion with 1932 crop financing of which will be a matter of supreme difficulty unless there has been a marked improvement in outlook meanwhile.

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FECORD OFFICE

Peference

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„PUBLIC RECORD OFFICE, LONDON |

| ALLY WITHOUT PERMISSION OF THE |

REPRODUCED. PHOTOGRAPHIC

C. 84583/31 [No. 2].

No. 54.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 4.3 p.m., 9th June, 1931.)

TELEGRAM.

9TH JUNE. No. 77. Your telegram No. 57.* There has been no contraction of area under sugar, but cultivation is being carried on by means of reduction of wages to lowest possible limit and restriction of expenditure on cultivation and maintenance to an uneconomic figure. Large proportion of labourers are being paid 50 cents per day or even less, while outlay on manure is being dangerously reduced. Position has only been made possible by low price of rice.

By these means costs of cultivation have been lowered to considerably below figure given in Watts' Report. It is estimated that sugar is now being produced on large proportion of estates at not more than rupees 6 per 50 kilos, excluding interest charges, or even less in some cases. Current price is rupees 6.30 cents per 50 kilos f.o.b. Port Louis, which is equivalent to about rupees 5.55 cents net to planters. With a very few special exceptions no estates can produce at this figure even with uneconomic reduction of costs above referred to.

Crop is now roughly estimated by the Department of Agriculture at 189,000 tons, as compared with average of 237,000 tons for past three years.

Estates are being kept going largely by forbearance of mortgagees and other creditors. Value of property has declined to a low level and mortgagees are chary of foreclosing. General position is that cultivation is being carried on with effort and at a level of wages and cultivation which could not long continue.

(Following is not for publication.) One or two considerable estates are expected to be sold up at an early date. Greatest danger, is sudden financial collapse, of which there is grave risk if conditions do not improve before next year.

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* C. 84583/31 [No. 1]: not printed.

Printed under the authority of His Majesty's Stationery Office By METCHIM & SON, 8, Princes Street, Westminster, S.W.1.

Op. 6. 9470/2885. 30. 10/32. (99413).

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Agriculture does not anticipate serious unemploy- 1931, but I am anxious as to situation after April uld normally be undertaken. There is, however, nployment amongst skilled labourers and artisans > restriction of construction and repair work, and Proposals are being submitted for assistance from

a number of works which would relieve the situation

there will be any appreciable reduction of output been planted, but operations may be restricted in >: financing of which will be a matter of supreme

arked improvement in outlook meanwhile.

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