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The

Hamburg-American Steamship Company some of the wood obtained by his sons here. Until these gentlemen arrived in the Colony, practically no business was done in the way of exporting Yemeri, Santa Maria, and some other timbers. War brought the operations to a standstill. Otherwise it would have been neces- sary for me either to close the business or to appoint a supervisor. The Germans in question, the Steinbrugge brothers, have been living from hand to mouth, relying for food to a large extent on what they could catch in the river or obtain from the ground by their own labour. Small quantities of their wood have been sold locally, but their receipts have not enabled them to extinguish their local liabilities.

5. This is a case where the advent of the two Germans would, but for the War, have been of some benefit to the Colony, because they started an industry may also say that, as which it was very unlikely anyone else would have taken up.

have I have censored all their correspondence with places beyond the Colony, arrived at the conclusion that they and their relatives are very decent people, and that there is no reason why they should not be allowed after the War to resume their business. But, as I have already mentioned, they would like to leave, and would do so if they could dispose of it.

6.

The one German of military age who desires to remain in the Colony started planting in the Stann Creek Valley before the War began. He is a modern German, and not a person for whom I could feel any liking. On the other hand, he evidently a steady, hard-working man. I know nothing against him except his nationality, and I gather from his correspondence with his friends abroad that he appreciates the manner in which he is being treated. I therefore see no reason why he should not be allowed to remain.

7. I think it is undesirable that Germans who have been brought up in the modern German creed which has been inculcated since 1871 should be allowed to flood this Colony, and I have reason to know that at least one undesirable German contemplates promoting a company to take up land here. Besides, inquiries about the Colony have been made by other Germans. For these reasons I consider it desirable that we should revert to the old law under which aliens could only acquire land by licence. While this policy would, for the most part, be intended as a safeguard against Germans, I do not think that it would be without advantage in the case of other nationals: although, but for the German menace, I should not recommend it.

8. It is understood that there are many articles which have hitherto been manufactured almost exclusively by Germany which, for the safety of the Empire, should be produced in sufficient quantities within the Empire to render it inde- As regards such articles, I would pendent of outside supplies in time of war. suggest that their import from any place not within the British Empire should be absolutely forbidden so long as protection for such industries is necessary. It is not sufficient that Germany should cease to have a monopoly of these articles. It is necessary that the Empire should be able to rely on its own resources in respect

of them.

tion.

9. Some members of the Council propose that naturalized British subjects should be prohibited from ever holding office in the Colony. I think that such a Unless the Government can feel that aliens applying for course would be futile. naturalization are fit persons to hold office they should not be granted naturaliza- The whole policy on which naturalization certificates have been granted hitherto should be altered. It seems to have been considered that if an alien has resided five years in the Colony, and nothing is known to his detriment, he should I submit that be given his certificate of naturalization as a matter of course. naturalization should only be granted when the Colony, as well as the individual, is likely to benefit by the change of nationality. I am also of opinion that pro- vision should be made for cancelling certificates of naturalization when the holder has left the Colony and is not occupied in commercial relations connected with it. The Attorney-General refers to the present dependence of the Colony on American capital for the mahogany industry. When he wrote the import of mahogany from the Colony into the United Kingdom was forbidden. Since then His Majesty's Government has purchased the greater part of the 1917 cut, and the principal cutters are being financed with English capital. In peace time we are not depen- dent on American capital for so much of our mahogany as is purchased by the United Kingdom. The Colony cannot be expected to purchase from the United Kingdom, or other parts of the Empire, unless the Colony can also sell to them.

The Colony has always purchased more from the United Kingdom than the equivalent of its exports there.

10. This may be a convenient place in which to make reference to proposals for reciprocal preferential tariffs between the West Indian colonies and Canada. Many Canadians believe that they are extending to us the benefit of their prefer- In fact, tial tariff without any return; but they practically buy nothing from us. the only article they do purchase is chicle, in respect of which there is no prefer- In the natural ence, and which, for the most part, is the produce of other countries. course of events Canada would purchase tropical products from most of the West Indian colonies, and those colonies would purchase flour and fresh provisions from Canada. The preferential tariff therefore only assists the natural course of trade and protects the trade of the countries concerned from unfair attacks from other countries. Again, there is no monopoly in Canada of Canadian produce; nor in the West Indies of West Indian produce. There is ample room for com- petition, and therefore none of the worst features of protection. In the case of this Colony it is not natural that its products should go as far as Canada. Its most convenient market is that of the United States, and a reciprocal arrangement between Canada and British Honduras would not be in accordance with the natural course of trade. If users of mahogany and cedar in Canada would buy their timber in the Colony and send steamers for it, I have no doubt that, as a result, many articles now purchased in the United States would be bought from Canada.

The

11. I may also refer to the one industry which has been deliberately pro- tected in this Colony. I refer to the combined sugar and rum industry. protection afforded has not benefited the Colony in the least degree or increased the production of sugar. It has only resulted in the price being higher than it should be. This protection was not intended so inuch to keep out foreign sugar, as to keep out sugar of other West Indian colonies. In 1904 an ordinance was passed allowing the Governor to prohibit the import of sugar from any country At the same time the Council was not being a party to the Brussels Convention. asked to reduce the duty on sugar to one-half cent per pound, which the Council refused to do. Colonial growers would have been fully protected from any bounty- fed sugar, and would have had a preference over other British sugar of one-half cent per pound; but the duty of two cents was retained in order to prevent the steamers of the Scrutton Line from bringing sugar from Barbadoes, Demerara, and Jamaica.

12. I trust that after the War there may be an extension of free trade within the Empire, and also with our Allies As regards our relations with our Allies it should be so arranged that we should not be dependent even on them for what is indispensable

I have, &c..

WILFRED COLLET,

Enclosure in No. 19.

HONOURABLE COLONIAL SECRETARY,

Governor.

I AM grateful to His Excellency for permitting us to express our views on this most important matter. In my opinion any steps taken by the Imperial Government to conserve the interests of the Empire and its Allies, which are applicable to this Colony, should be adopted here also, and, in addition, that special legislation should be introduced at an early date regulating the sale of lands to aliens.

SYDNEY CUTHBERT.

3rd November, 1916.

HONOURABLE COLONIAL SECRETARY,

I AGREE with Mr. Cuthbert.

3rd November, 1916.

A. R. USHER.

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HONOURABLE COLONIAL Secretary,

I AGREE with Mr. Cuthbert.

4th November, 1916.

HONOURABLE COLONIAL SECRETARY,

I AGREE with Mr. Cuthbert.

6th November, 1916.