CO885-(25-26) — Page 520

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PUBLIC RECORD OFFICE

Reference :--

CO.885/25

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

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Government is of the opinion that it would show ingratitude and be unwise to take any steps in the West Indies that might antagonize or lead the United States of America into retaliatory tariff or other measures.

12. To sum up, therefore, this Government is of the opinion that a four-decked tariff. as has been suggested in some quarters, would be inconvenient and embar- rassing in application and in practice, and that a three-decked tariff on the system successfully applied in Canada before the War, namely, a general tariff, a British preferential tariff, and an intermediate tariff would be more satisfactory, and could be framed to meet all the necessities of the situation, both penal and other- wise, and without arousing resentment in any quarter except amongst our present enemies, for whose feelings in the matter we have neither respect nor regard. It is upon a basis of elasticity and freedom that our world trade has been built up, and, whilst the War has produced a cataclysmal change in our ideas and affairs and has opened our eyes to the danger of an unlimited continuation of that policy, still we believe that the spirit of it should be preserved, and, so far as possible, continue to permeate our dealings with all friendly foreign nations.

13. I will now proceed to discuss the specific questions referred to the Com- mittee appointed by His Majesty's Government, incidentally commenting upon the answers made to those questions in the communication from the local Agricultural and Commercial Society.

(a) What industries are essential to the future safety of the nation, and what

steps should be taken to maintain or establish them?

The Society has recited in its reply to this question the principal products exported from the Colony, all of which, in one form or another, may be regarded as essential to the future safety of the nation, and all of which are certainly necessary to the economic existence of this Colony. For their maintenance on a sound basis, the Society recommends the grant of a preference in British markets, and with this view my Government is entirely in accord, as explained earlier in this despatch. It seems redundant here to argue the case for a preference on sugar, which is one of the main items of export from this Colony, and is an indispensable article of food- stuff. This case has been discussed and represented to His Majesty's Government very often and fully in years gone by, and it will no doubt again be the subject of special representations by sugar colonies like British Guiana, Mauritius, etc. these circumstances it does not seem necessary to do more than support the Society's claim that a sugar preference would not only signify maintenance of the sugar indus- try in this Colony but its almost certain expansion.

In

A British preferential tariff on the other produce mentioned by the Society can- An assured market, not fail to ensure stability and expansion of production. together with reasonably remunerative prices, will do more towards attaining both aims than almost any other means that can be devised.

The reply to this question, and to the question under head (c), dealt with further on in this despatch (see paragraph 15), are closely inter-related. It is suggested, therefore, that they be read and considered together.

14.

(b) What steps should be taken to recover home and foreign trade lost during

the War, and to secure new markets?

This Colony, not being a manufacturing centre, but a producer and exporter of agricultural produce, all of which is requisite and in every-day use in some form or other, has not lost any home or foreign trade, and, therefore, has none to recover.

The trade statistics for 1916 are not yet available, but those in 1915, compared It with former years, indicate that trade in foreign imports into the Colony has, on the whole, not benefited to any extent since the War to the detriment of home trade. is very probable, though, that when the 1916 figures are available they will show an increase in trade in favour of the United States of America and a decrease with the United Kingdom. So far as can be seen, St. Lucia's main markets for her purchases of manufactured goods and of flour would, with Imperial preferential tariffs, inevitably adjust themselves after the War in favour of the United Kingdom and Canada, with a subsidiary but important source of supply in the United States of America.

Her agricultural produce would, under similar arrangements, go to the United Kingdom and Canada, whilst the United States of America and France would remain her chief other outlets.

There would in these circumstances be no necessity to seek for or secure new markets, as there would be no surplus produce of which to dispose.

15.

(c) To what extent, and by what means, the resources of the Empire should

and can be developed.

The Society has submitted a number of important suggestions which, if adopted, should assist in achieving the object in view. Their recommendations, how- ever, do not in any part treat of St. Lucia or West Indian conditions specifically, and it is felt that it would be of greater assistance if this question were also discussed from a more local standpoint than the Society has attempted to do.

16. St. Lucia is, after Trinidad and Dominica, the largest island in the Lesser Antilles group, and is 238 square miles, or 152,320

extent.

acres

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Of this acreage, only 10,500 acres are estimated to be under permanent cultivation to-day, i.e., under sugar, cocoa, limes, and coco-nuts. A very large part of the remainder is under forest, and the mountainous, rocky formation of the island, and the character of the soil, is such that it is estimated that only some 20,000 acres more would be available for future agricultural development and production. This land, though, is all highly productive, and would be capable of bearing large crops of limes, sugar, cocoa, coco-nuts, logwood, etc., according to the localities selected. is worth noting, in this respect, that the 10,500 acres estimated to be now under cultivation yielded in 1916 an estimated export value return of £150,000.

It

17. The main desideratum in the development of the uncultivated area in this Colony is population. The present population of St. Lucia, estimated at 52,000, is too small for anything but very gradual development of its resources. It is probable that development will deter emigration from the Colony, and the birth-rate should, as a consequence, increase. Development also should attract population from the neighbouring islands, Barbados possibly, but even so the growth in population can only, without assisted means, be slow. It is open to consideration, therefore, whether after the War some assisted means of Indian immigration might not be inaugurated under Government control.

18. Proposals have recently been made by this Government for a land settle- ment scheme in St. Lucia of better-class European settlers, with small capital, selected from persons who have served with the British overseas military forces. Under this scheme fresh blood and energy, and also capital, would be introduced into the Colony, all essentialities in the development of new countries, and particularly of tropical places. It is hoped that this plan may materialize with as little delay as possible after the War. In the meantime a progressive policy of road construction and improvement is being undertaken, with the object of assisting the scheme of settlement outlined, and also for promoting agricultural development and expansion generally.

19.

The harbour upon which the capital town of Castries is situated is the safest and most easily defended in this part of the West Indies. It has, conse- quently, for those reasons, and also its geographical situation, been selected by the Admiralty as the defended naval coaling base in these waters during the War. This harbour is also an asset to the Colony, owing to a bunker coal trade of considerable dimensions which is conducted alongside its wharves. For a number of years the -necessity has been present for dredging the harbour to a minimum depth of thirty feet and removing certain coral shoals. Lack of funds has prevented this being done. After the War, in order to render the port more valuable as a naval base, and in order also to enable it to compete in coaling more successfully with St. Thomas, the nearest foreign coaling station, which, as it is to be transferred to the United States of America in the near future, may intensify competition, and also with the Panama Canal, financial arrangements should be considered, with a view to the execution of this work and possibly also to extending and enlarging the wharf accommodation. In this connexion it should not be overlooked that Port Castries would, geographically, and in other respects. form a valuable centre in this part of the Antilles for the establishment of an oil fuel depot for the supply of oil fuel to ships requiring that class of bunkers.

20. During the past year a system of agricultural credit societies on an unlimited liability basis has been started in the Colony, and is making good head- way amongst the peasantry for whose benefit it is intended. On the other hand, the small planter and owner of medium-sized holdings very often has difficulty in finding capital to develop his land, however deserving a man he may be. Greater banking and loan facilities than those at present provided by the Colonial Bank are required for this class of person. A State-aided, or partially State-controlled, agricultural bank for the West Indies would be very helpful for this purpose, and also in the development of this and other West Indian colonies.