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PUBLIC RECORD OFFICE

Reference :-

། ། ། ། ། ། wwmmmm.C.O.885/25

PUBLIC RECORD OFFICE, LONDON

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

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done so, be prepared to consider both these proposals together. The currency of any contract or contracts that it may be possible to enter into for the purposes indicated should not, in my opinion, exceed five years.

The maintenance of a dependable steamship service with Bombay is also essential to the prosperity of this Protectorate, but this will doubtless be maintained by the British India Company as at present.

In connexion with this subject I would invite your attention to Major Pearce's despatch No. 21, of the 5th of last April.*

V.

Certain measures, and more particularly the acquisition of enemy business premises, have already been taken towards preventing enemy firms from resuming their activities in Zanzibar, and the logical sequence of such action would be the enactment of legislation to prohibit enemy subjects from acquiring or holding real property of any kind in the Protectorate. The measures recommended under heads III and IV. would also, of course, go a long way towards the achievement of the object in view. The present requirements with regard to passports should, in my opinion, be maintained.

The question of permitting the return of enemy consuls is doubtless one which will receive the consideration of His Majesty's Government. I may, however, here mention that there is good reason to believe that the German consuls in Zanzibar were responsible for a system of espionage and the establishment of a secret service in which use was made of natives.

C.-Permanent Measures of Mutual Assistance and Collaboration among the Allies.

I.

It has already been stated that Zanzibar is independent of enemy countries for supplies, and it may be hoped that, during the period of reconstruction, British and Allied firms will be able to get the whole of the trade formerly held by German firms so securely into their hands that, even if the restrictions now contemplated are eventually withdrawn, it will be difficult for the Germans to recover their position. In this connexion I would refer to the Resident's despatch No. 6860, of the 5th July, 1915,† in which he pointed out the desirability of encouraging new British firms to open branches in Zanzibar.

The development of national industries and resources is a question requiring immediate attention. In the clove industry Zanzibar possesses the practical monopoly of a valuable article of commerce, and the chief energies of the Govern- ment should be employed in conserving and developing it. This subject is not, however, one which can conveniently be dealt with in this despatch, and I shall have the honour of addressing to you a separate communication detailing the measures proposed.

The questions of the extrication of the land owners from their financial difficulties, the extension of educational facilities, the improvement of local com- munications and transport, the better organization of native labour, and the improvement in the quality of copra exported are also engaging the attention of this Government.

II.

Under B IV. I have made proposals in regard to shipping and postal facilities which, as the services would presumably connect with Marseilles, and possibly Naples, would also favourably affect our Allies.

III.

Under the Zanzibar Patent Law (Decree No. 16 of 1917) protection is given only to owners of patents registered in Great Britain or in British colonies and possessions. Owners of patents registered only in foreign countries are at present excluded from the benefits of this decree. The question of extending these benefits to Allied countries might be considered, but the subject is a difficult one from a legal point of view, and the interests involved are so limited as hardly to warrant any alteration at present.

* 24027: not printed.

+89660: not printed.

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The above remarks on the recommendations of the Conference appear to cover also all the questions submitted to the Commercial and Industrial Policy Committee in so far as this Protectorate is concerned.

20894

I have, &c.,

JOHN H. SINCLAIR,

Acting British Resident.

No. 22.

ZANZIBAR.

THE ACTING RESIDENT to THE SECRETARY OF STATE.

(Received 23rd April, 1917.)

(Confidential)

The Residency, Zanzibar, 20th February, 1917.

SIR,

IN my despatch No. 26, of the 20th February, 1917, I had the honour to submit the views of this Government on the recommendations of the Economic Con- ference of the Allies, and paragraphs III. and IV. of that despatch deal with the requirements of this Protectorate in regard to steamship services.

2. In this connexion I desire to add that any agreement entered into with a shipping company should, in order to secure the impartial distribution of freight, include a condition that the company should maintain an agent and shipping office entirely independent of any local firm of merchants.

3. It is only natural that exporting firms who also act as agents for shipping companies should be tempted to use their powers of allocation of freight not only for giving preference to their own goods, but, by the exclusion of the goods of their rivals, to further their own commercial interests. Complaints of this nature are frequently made, and it is probable that in many cases they are well grounded.

I have, &c.,

JOHN H. SINCLAIR,

Acting British Resident.

22125

SIR,

No. 23.

STRAITS SETTLEMENTS.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 30th April, 1917.)

(No. 114.)

Government House, Singapore, 23rd March, 1917. I HAVE the honour to acknowledge the receipt of your predecessor's Circular despatches of 25th September and 24th October, 1916, inviting my attention to the recommendations of the Economic Conference of the Allies, and requesting an expression of my views on the question of the commercial and industrial policy to be adopted after the War.

2. The circular despatch of the 25th September, together with the recom- mendations of the Economic Conference of the Allies, was printed, and the Chambers of Commerce of Singapore and Penang were requested to give their views on the subject. I annex copies of letters from the Secretaries of these Chambers of Commerce giving their views.

3. The Chamber of Commerce of Singapore is of opinion that restrictions should be placed on the trade of those countries who are at present at war with us, and they recommend that the restrictions should take the following form:-

(i) That an extra due be imposed on the cargo of all vessels using the Suez

Canal which fly the flag of any of our present enemies.

(ii) That no foreign trading, shipping, or banking concern, individual, or firm of a country notified in the Government Gazette be allowed to establish themselves in the colony without a special licence from the Governor in Council.

* No. 21.

No. 1, and 45879: not printed.