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2. (a) That this Chamber is of opinion that specially high freight rates may be imposed if such are an essential condition to the construction of the Uasin Gishu Railway; and

(b) That this Chamber is of opinion that any such special rates should be universally applied to the whole of the railway system, without any discrimination in regard to the Uasin Gishu Branch.

3. That the reply to Major Grogan's cable message to Mr. Tannahill be that this Chamber is of opinion that the construction of the Uasin Gishu Railway should be proceeded with forthwith on the route originally surveyed.

To the Hon, the Chief Secretary, The Secretariat, Nairobi,

I have, &c.,

B. HASLEWOOD, Secretary, Nairobi Chamber of Commerce.

REPORT OF THE DEPUTATION APPOINTED TO INTERVIEW HIS EXCELLENCY THE ACTING GOVERNOR ON THE SUBJECT OF THE UASIN GISHU RAILWAY.

Interview at Government House on Friday, 19th December, 1919, at 10.30 a.m. PRESENT:His Excellency Sir C. Bowring, Mr. Couper (Gen. Man, Uganda Railway),

and Messrs. A. C. Tannahill, C. Udall, C. B. Anderson, V. G. M. Newland, D. Newmark with B. Haslewood (Secretary), representing the Nairobi Chamber of Commerce; ulso General Baker Carr and Capt. Hellard, representing some of the Uasin Gishu settlers. Mr. A. C. Tannahill having read the cable recently sent to him by Major Grogan, as follows:-

London, December 11. Get all parties interested in the Plateau Railway to cable the Colonial Office urging immediate construction on the surveyed route and agreeing to accept the policy of special high freight rates until the country's finance becomes normal,'

His Excellency the Acting Governor, Sir C. Bowring, expressed his willingness to recapitu late for the benefit of the Chamber what he knew of recent history of the negotiations as follows: On 10th November he received a cable from the Colonial Office to the following effect: "Provision of loan funds being actively considered want revised estimate of cost Uasin Gishu Railway either whole distance or alternatively only to Eldoret, also either taking up so much of the old rails of the present main line and replacing them with new 80-lb. rails and using the old rails for the Uasin Gishu Railway, or leaving the main line as it is and using new light rails for the Uasin Gishu Railway."

For various reasons His Excellency had decided to eliminate the idea of relaying the present main line, and he had replied to the effect that the estimate was for new raila, £2,443,000 for the whole distance, and £1,210,000 to Eldoret.

In answer to a question, His Excellency said this was on the route surveyed in 1916, from Nakuru to north of Mumias.

Also in his telegram His Excellency had pointed out that by starting the line from Mau instead of from Nakuru the cost would be approximately half a million less, and he had asked for authority to complete the survey from Mau, which had not yet been done, at a cost of £4,000, which would take four months.

In their reply the Colonial Office ignored His Excellency's reference to the Mau proposal, but pointed out that their own advisers' estimate for the Nakuru-Mumias line, using 50lb. rails was 3 to 4 millions instead of 2 millions.

Replying to a question, His Excellency said that the estimate of 21 millions was made by the local management here, for the work to be done departmentally, and Mr. Couper said that it was very probable that the Colonial Office had more recent and accurate information as to the greatly enhanced cost of, e.g., iron bridgework and the like, so that it was probable that that accounted for the difference between the estimate made by his Department and that made by the Colonial Office advisers.

In further explanation, Sir Charles pointed out that the original idea of the Uasin Gishu Railway was, in its very first initiation some years ago, to tap the forest area which was expected eventually to yield a remunerative railway traffic. Since those days the Plateau had become more or less populated, and in the near future would be still more so, and in his opinion the thing to be aimed at now was to get the railway through to the Plateau as soon as possible in order to provide those settlers with an outlet for their produce; in other words the forest and timber possibilities were now of secondary importance, and he personally was of opinion that especially considering the present high price of money--the half-million or more that would be saved by adopting Mau as the starting-off point from the main line was well worth having, and he therefore favoured that route. It was, of course, possible that it might be found that this route was impracticable when the survey should be completed, but he thought not, and Mr. Couper thought not. The great point about starting from Mau was that it would save the double climb up to the Mau Summit. On the other hand, there was the undoubted advantage of the Nakuru route that it gave, with the exception of a small portion, a 14 per cent. gradient for the whole distance; besides which, of course, it would tap a more remunerative area.

In answer to a question, Mr. Couper said that, speaking simply as the manager of the railway as a completed undertaking, and regarding it purely from its aspect as a running concern, there was no doubt that the Nakuru starting point was to be preferred.

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On the other hand, His Excellency pointed out that, if the forest timber traffic grew to the extent that many people confidently foretold it would, then there would be a strong pro- hability that either the Nakuru portion of the line would have to be doubled, or else the timber traffic would cause such congestion as would gravely interfere with the needs of the settlers on the Plateau. In any case, His Excellency thought that sooner or later the needs of the timber industry would have to be served by a line of its own.

In answer to a question, His Excellency and Mr. Couper stated that the Gilgil Route was quite out of the question, owing to the utter impracticability of the country to be traversed.

General Baker Carr and Captain Hellard were of opinion that the Uasin Gishu settlers would be quite prepared, if the building of the railway could only be secured thereby, to accept railway rates equal even to what they are at present paying for road transport, viz., Rs. I per ton per mile, as they would at least benefit by quicker transport.

In this connection General Baker Carr stated that they had an offer from South Africa for their maize at a price that would pay them to export it even under present conditions, provided they could get over the loss on the Exchange by bringing up machinery instead of money-drafts. It was generally agreed that, in respect of flax and coffee at least, the plateau settlers would be well able to bear a specially high rate, if only they could get the railway.

His Excellency was strongly of opinion that it would not be fair to expect the Uasin Gishu settlers to bear the whole cost of the interest and running charges of the new railway, even if they were at present willing to do so. It was a matter in which the whole Protectorate should take its fair share, by means of a general increase of rates over the whole system. In his opinion this is a community that is well able to bear much higher railway rates, as is shown by the much higher standard of living here compared with other parts of the world,

In answer to a question as to the attitude of Uganda to a proposal to increase the present railway rates, His Excellency admitted that strong opposition was to be expected, but thought

that this would be got over one way or another.

Mr. Tannahill thanked His Excellency on behalf of the deputation, which then withdrew.

No. 7.

THE ACTING GOVERNOR OF THE EAST AFRICA PROTECTORATE to THE SECRETARY OF STATE,

(Received 7.30 a.m. 16th March, 1920.)

[TELEGRAM.]

11th March. Your telegram 24th December,* Committee composed of Director of Agricul ture as Chairman, General Manager Uganda Railway, Commissioner of Lande, Conservator of Forests (with Carpenter, Agricultural Department, as Secretary) report that area served by projected railway Nakuru-Eldoret-Mumias has been inspected personally by them, and evidence was given by representative bodies and individuals at Nakuru, Ravine, and Eldoret, regarding agricultural prospects and production present and future, and covering particularly following areas:--Nakuru, Mjoro, Solai, Rongai, lower Molo valleys, Ravine District, Uasin Gishu Plateau, and Trans-Nzoia.

Evidence also was taken regarding forestal production.

In opinion of Committee proposed railway will serve areas in urgent need of railway com- munication, will cause more intensive development, will provide more holdings, will increase white population for which climate is favourable.

Extent of highly fertile soils is great and proportion of cultivable land high. Agricultural area served is about 1,500,000 acres, of which 1,000,000 cultivable. Climatic and other con- ditions favourable to production on large scale. Maize, flux, coffee, staple crops already proved. Wheat production sufficient for requirements of East Africa Protectorate may be expected reasonably. Some areas promising for cotton. Dairying and pig farming would be likely to follow later.

Some apprehension exists as to sufficiency of supply of labourers for contemplated develop. ment, but with progress at steady and continuous rate, coinciding with calculated increased proportion natives seeking employment and working for longer periods, difficulty may partly disappear.

Committee carefully investigated present production and rate of expansion if railway constructed. Greater part land is in hands of progressive men with sufficient capital for development. Considerable export trade in maize, Hax, fibre, coffee will be established shortly after completion of railway, and also in dairy products, bacon and bacon-products later. is to be understood that development greatly dependent on satisfactory market price for export products. In respect of staple crops mentioned, consider that East Africa Protectorate can successfully compete against other countries under reasonable railway rates and shipping rates- and economical handling of produce at the port. Rapidity of development largely dependent on factors at present unknown, but assuming fair profits and no unforeseen difficulties, pro- duction as indicated in figures furnished ought to be reached.

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Value of land at present unstable. Much development in Uasin Gishu has already been Parried out in anticipation of proposed railway. If it should not be constructed progress will be hindered, and value of land will remain stationary or will decline instead of appreciating.

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