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PUBLIC RECORD OFFICE

Reference :--

885/25

PUBLIC RECORD OFFICE, LONDON

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2. With reference to the queries contained on page 3 of the Circular enclosed with your communication, I beg to say that the question has been considered by the committee of the Society, who are of the opinion that the only clause concerning which they are qualified to advise is that contained under head (c), dealing with the extent and means by which the resources of the Empire can and should be developed.

3. The principal industry of this Presidency is that of sugar production, and it is the opinion of the committee that every effort should be made by the Imperial Government to foster the industry with a view to preventing the supplies of sugar falling once more into German hands.

4. This, in the opinion of the committee, would best be secured by according some measure of preferential treatment to British-grown sugar in the English market, by the assistance both by means of Government grants and of guarantees on loans towards the improvement of existing sources of supply and their further development. Also by the provision of properly equipped technical and scientific advice which shall be conducive to the spread of improved methods of cultiva- tion and manufacture; and by the display of readiness to assist the industry when- ever it stands in need of help. By such measures there is no doubt that a full return of confidence in the prospects of the West Indian sugar industry would be engendered, and this would be productive of good, since it would enable sugar pro- ducers to attract the necessary capital, and would place the industry in a position of stability. The committee would emphasize that recent inquiries have elicited the fact that the very marked development which had taken place in the agricultural industries of Germany prior to the War were almost entirely the outcome of the confidence imparted owing to the careful and far-sighted policy adopted by the German Government towards the agricultural industries of the German Empire

5. It would seem obvious that the pursuit of a similar policy in relation to the resources of the Empire will be productive of equally satisfactory results, and would prove an efficient safeguard against the vicissitudes which the West Indian sugar industry has suffered so frequently in the past.

6. For further information in this connexion I would refer you to the summary of data concerning the possible development of the sugar industry in the British Empire which has been compiled by the West India Committee.

The Honourable

The Acting Colonial Secretary.

45222

No. 36.

MALTA.

I have, &c.,

A. P. COWLEY,

Chairman

THE GOVERNOR to THE SECRETARY OF STATE. (Received 12th September, 1917.)

(No. 243.) SIR,

1

The Palace, Valletta, 3rd September, 1917. WITH reference to Mr. Bonar Law's Circular despatches of the 25th September* and 24th October, 1916,† on the subject of the commercial and industrial policy to be adopted after the War, and the measures to be taken to avoid any recurrence of the dangers to which the Empire has been exposed by the growth of German trade and influence within it. I have the honour to inform you that, on the 14th November, 1916, I appointed a representative committee (list enclosed) with instructions to advise whether any, and, if so, what, steps should be taken to secure consideration of any circumstances affecting the interests of Malta at the representative conference which is to deal with the commercial and industrial policy of the British Empire after the War.,

2. A copy of the report of this committee is attached for your information. It contains, it will be observed, numerous suggestions for reforms and improve ment in local industrial conditions which, though valuable, hardly come within the

+ 45879: not printed.

*No. 1.

119

terms of the reference. The recommendations affecting the interests of Malta which may be regarded as relevant to the questions which the representative conference will be called upon to consider, appear to be the following:-

(a) That any system of preferential trade or Customs Union within the Empire, as well as any prohibition or restriction on enemy trade, that may be decided upon, should be extended to Malta (paragraphs 1 and 2); (b) That the establishment of coaling firms of enemy origin, or coaling firms under enemy influence, should be forbidden (paragraphs 5 to 12): (c) That inducements should be held out to British shipowners to use Malta

as their bunkering port in the Mediterranean (paragraph 13);

(d) That the carriage of goods to British ports in British ships should be encouraged by the remission or the reduction of duties, or by other means (paragraphs 15 to 17);

(e) That the following measures should be adopted with a view to the replace- ment of German or Austrian trade by British trade (paragraphs 28 to 33, and 96):-

1. Commercial travellers should be sent out to the Colonies more frequently than hitherto, and British merchants should be induced to produce goods that will meet the requirements of the markets they supply;

ii. The system of through bills of lading, from and to inland towns

in the United Kingdom, should be adopted;

iii. The Continental uniform rate of postage on parcels should be

adopted;

(f) The employment of Maltese officers and inen in the British mercantile

marine should be encouraged (paragraphs 36 to 38):

(g) The desirability of allowing the naval dockyard in Malta to be used as a shipbuilding yard should be urged in the proper quarter, and steps should be taken to impress upon shipbuilders the advantages accruing from the use of Malta as a centre of ship construction (paragraph 118). 3. I am glad to observe that the committee are of opinion that any scheme for the prohibition of, or restriction on, enemy trade after the War adopted generally for the Empire should be extended to Malta, even at the risk of com- mercial loss to that Colony. The question of prohibition, even for a limited period, must depend on general political considerations. Restrictions, however, on enemy trade which take the form of preferential treatment of British and Allied com- merce, seem both practical and desirable, and I do not anticipate that they would affect adversely commercial enterprise in Malta. There is no doubt that British trade, both in Malta and elsewhere, has suffered from the disadvantages to which reference is made in paragraphs i to iii of (e) above (paragraphs 28-32 of the committee's report). As compared with Germany, the British commercial traveller has failed in enterprise, while the active support given to German trade agents by the German Government through their consular representatives and otherwise has given the German traveller an advantage the importance of which it is impos- sible to exaggerate. Not only has it been possible for local merchants to obtain full descriptions and details of price, inclusive of delivery charges, of articles advertised by German firms through local agents, but I am informed that samples of articles most in demand were stocked by German consular agents. It has not, I believe, been the policy of His Majesty's Government that Com- the British Consular Service should be directly identified with commerce. plaints by British merchants are certainly not infrequent as to the difficulty of eliciting information or securing support from the representatives of the British Government at stations abroad in matters affecting commercial interests. questions of commerce which come before the Government are dealt with by the Lieutenant-Governor's Office, but there is no branch of the Department specially organized for that purpose, nor is there any officer with the particular qualifica- tions required for such duties available to give advice. The committee, it will be observed, advocate the appointment of a member or an official of the Chamber of Commerce, who should communicate with the Board of Trade as to imports in I think a demand and produce or local manufactures available for export. special officer is required both to advise Government on commercial matters and to serve the interests of the British manufacturers; but an independent officer in Government employ would be preferable to an appointment such as the committee

In Malta