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Colony and European ports, in apparent competition with British lines, as e.g. when the Gold Coast was served both by the Woermann Company and by the African Steamship Company-considerations of advantage have led to arrangements being come to by the ship-owners for the regulation of freights, and for the exclusion of other competitors. Similarly, by allowing shippers from Colonial ports a substantial rebate payable half yearly, on condition that nothing has been shipped in the interval in any save the vessels. owned by a particular company or combine, tramp steamers and other casual competitors are excluded, or their competition is reduced to a minimum. These facts are, of course, well known to you; and I only record them here because the position created cannot be regarded as satisfactory from the stand-poiut of a Colony whose main communications are thus subjected to monopolistic control. Owing, moreover,. to the immense destruction of mercantile shipping which has occurred since the outbreak of war, it is probable that the disabilities which the Crown Colonies have suffered in the past, owing to the impossibility of controlling freight-charges etc., will be much intensified in the future, and are likely in some instances to operate in a manner highly detrimental to their interests and to the development of their resources.

65. Under the Heading "C" II-Permanent measures of Mutual Assistance and Collaboration among the Allies it is recommended by the Paris Conference that measures should be adopted " for facilitating their mutual trade relations both by the establishment of direct and rapid land and sea transport services "at low rates, and by the extension and improvement of postal, telegraphic and other communications." This important matter, however, does not appear to have come within the purview of Lord Balfour of Burleigh's Committee; but I take it that "the establishment of direct and rapid sea transport services "at low rates" can only be effected if His Majesty's Government is prepared to perpetuate the control over shipping which it is understood to be exercising at the present time. I realise the immense complexity of the questions here involved, and I desire, in this connection, to confine myself to an expression of the opinion that, judged purely from the stand-point of the Crown Colonies, anything which tended to reduce freights, and to facilitate communication by sea would prove highly advantageous to them. Whether the substitution of a Government monopoly for that hitherto enjoyed by the shipping companies and combines would have this effect is, of course, a question which I am not in a position to discuss.

66. For the rest, though I am in favour of financial assistance being granted "for the encouragement "the "of scientific and technical research," as recommended by the Paris Conference, I consider that "development of national industries and resources" should, in the Crown Colonies, be left as far as possible to private enterprise, and that no attempt should be made to stimulate it by Government grants or subsidies.

CONCLUSIONS.

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viii. That, if possible, an attempt should be made to release the sea communications of the Crown

Colonies from monopolistic control.

ix. And that financial assistance should be granted by Government for the encouragement of scien-

tific and technical research.

68. In conclusion, I should like to say that, though the questions at issue have been dealt with in this Despatch exclusively from the point of view of the Crown Colonies, and especially, of course, from that of the Gold Coast, I do not wish to be understood as ignoring the school of thought which holds that the Tropical Dependencies of the Empire should be required to submit to material sacrifices in the interests of the United Kingdom in return for the protection afforded to them. I contend, however, that, as matters stand at present, the United Kingdom already obtains a very mate ial return from her Crown Colonies. The bulk of their trade is with her; and I submit that the adoption of any policy which is calculated to depress that trade, or to retard the development of her Tropical Dependencies cannot fail, in the long run, to react no less unfavourably upon the United Kingdom herself through her commercial interests, even though the latter may stand to gain some immediate, direct advantage from the action taken.

I have the honour to be,

Sir,

Your most obedient, humble Servant,

Governor.

PUBLIC RECORD OFFICE

Reference :-

TELCO 885/25

سلسالسا

PUBLIC RECORD OFFICE, LONDON

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

67. To sum up, I submit:-

i. That any artificial restriction of the markets for the raw produce of the Gold Coast, or of the Bources whence she can most cheaply draw her supplies of manufactured goods will be detri- mental to her interests.

ii. That Great Britain and her Allies cannot consume the total annual cocoa-crop of the Gold Coast, and that this product should, therefore, be definitely excluded from the category of articles which are to be ear-marked for their exclusive use.

iii. That the imposition of a differential duty upon products of the oil palm exported from this Colony to Germany will affect the local industry very adversely; and that the producing population of the Gold Coast should not be required to pay, by lower prices and by a restricted market, for a policy the adoption of which may benefit British or Allied manufacturers, but which cannot fail seriously to injure their interests.

iv. That the minerals produced in the Gold Coast can easily be retained in exclusively British posses-

sion and under exclusively British control; and that this should be done.

v. That the exclusion from this Colony of imports of enemy origin after the war will be to the dis- advantage of the local consumer, and will not necessarily or materially increase the volume of trade with the United Kingdom.

vi. That the development of the resources of a Crown Colony should be left as far as possible to private enterprise, which should not be stimulated by Government subsidies or by any similar expedient; the task of the Administration, in this connection, being to open up the country and to render its wealth accessible by means of public works.

vii. That, in order to enable the Governments of the Crown Colonies more efficiently to perform these duties, steps should be taken to issue the loans, floated by them with the sanction of the Secre- tary of State, under a formal guarantee from the Imperial Treasury.

Enclosure I. in Gold Coast Confidential Despatch of 15th August, 1917,

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MEMORANDUM BY MR. O. MITCHELL, ASSISTANT COMPTROLLER OF CUSTOMS, ON THE RECOMMEND ATIONS OF THE ECONOMIC CONFERENCE OF THE ALLIES, AND ON TER QUESTIONS REFERRED THE COMMERCIAL AND INDUSTRIAL POLICY COMMITTEE, IN SO FAR AS THEY ARE APPLICABLE TO THE GOLD COAST COLONY.

It may be said at once that the recommendations of the Economic Conference respecting the measures to be adopted during the War have been carried out fully in this Colony already. Trading with the enemy in all countries has been prohibited, and the probibition aided by local trade conditions is quite effective. All enemy businesses have been liquidated, and it needs only the forthcoming sales of enemy houses and lands to place all the enemy property in the Colony in the hands of the Public Custodian in the form of cash. Finally our export prohibitions have been brought into line with those of the United Kingdom, and local trade conditions render it practically impossible to evade them

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2. The measures recommended for adoption during the period of reconstruction after the War, and the permanent measures of mutual assistance and collaboration among the Allies," as specified in the resolu- tion of the Economic Conference, are applicable only to a limited extent to this Colony, and as for the specific questions that have been submitted to the Commercial and Industrial Policy Committee I fear we can throw but little light on them. It must not be inferred from this however that the Colony will be a negligible factor in the general scheme of trade reconstruction both now and after the War, or that it will be powerless to further the commercial and political aims of the Empire and her Allies. It can help very considerably, and the ways and means of doing so can be considered best, think, under the following heads.