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The constal trade I would develop by small steamers, with possibly light railways running inland, and these steamers would tranship their cargo for overseas ports at the main ports; and this traffic must be considered when improvements are made to these main poris.

As regards the gange question the break of gauge is not at present serious, but it will be wise to acknowledge that the metre gauge must eventually give way to the 3 ft. 6 ins., and that any further works, therefore, should be constructed to the 3 ft. 6 in. standard and all This stock designed capable of transformation to the larger gauge when the time comes. standardisation is both necessary for economie working as also for trade purposes. A very important point not to be lost sight of and which is possible of rectification at the present time is the uniformity of coupling. This was our greatest difficulty in the War when conveying stock to France by the ferry, as the two systems of coupling differ.

Again, on the metre gauge we have two kinds of automatic brake in the system-the vacuum in Tanganyika Territory and the Westinghouse on the Uganda Railway.

The South African railways have the vacuum brake. I would at once arrange for any increase in the running dimension on existing metre gauge railways where same can be done.

As there is a very large gap to the North on the Cape to Cairo scheme compared to the South, it would appear best to concentrate any railway construction to this end in the South, meanwhile filling up the gaps between rail, lakes and river by motor road and the installation of some through service by car or lorry.

Will you kindly place my views before Lord Milner, and say how sorry I am that I did not take the opportunity given yesterday of placing them before the Committee, but I am much better at action than speaking, and I quite forgot my notes which I had in my pocket.

Bir HERBERT READ, K.C.M.G.,

SIR,

Assistant Under-Secretary of State,

No. 11.

Yours sincerely,

H. B. TAYLOR.

SIR EDWARD NORTHEY to COLONIAL OFFICE.

77, Carlisle Mansions,

Westminster, S.W.1.

28th May, 1920.

EAST AFRICA PROTECTORATE LOAN REQUIREMENTS.

I HAVE the honour to submit the following schedule showing very roughly what loana are, in my opinion, required for development in the East Africa Protectorate. The figures given cannot be regarded as more than general approximations. Detailed investigations in the Protectorate are necessary before accurate estimates can be prepared.

2.

Immediate Productive Works:

Sohedule.

1. Uasin Gishu Plateau Railway

2. Kilindini Harbour Pier

Later Productive Work:

3. Thika-Fort Hall Railway

Unproductive Works (so-called) :

4. Roads

5. Houses and Offices ...

6. Extra for Interest

Interest:

Minimum Total

£

2,000,000

1,000,000

600,000

200,000

700,000

600,000

£5,000,000

3. It has been decided by the Secretary of State that the interest, &c., on (1) above shall be found out of Railway Revenue; the interest on (2) must be paid for by the port being made self-supporting. We have therefore only to provide interest and sinking fund for (3),(4) and (5) out of General Revenue. £600,000 is added to the sum total of the loan towards payment of interest, &c., during the first three years or period of construction.

4. Not nearly all of the £5,000,000 will be required at once, so that interest on the whole loan does not begin immediately. £600,000, as provided in item 6, should therefore be sufficient to help us through the period of construction.

The Under Secretary of State,

Colonial Office.

I have, &c.,

EDWARD NORTHEY,

Governor of the East Africa Protectorate.

77

No. 12.

MEMORANDUM ON THE PROPOSED CONSTRUCTION OF A GOVERNMENT RAIL-

WAY IN NYASALAND FROM LUCHENZA TO LAKE NYASA.

I. Existing Railway System.

The present Nyasaland railway system consists of a line of 3 ft. 6 ins. gauge from Chindio, on the north bank of the Zambesi, to Blantyre, the commercial headquarters of the Shire Highlands There are two distinct sections:

(a) the Central African Railway, belonging to the Central African Railway Co., Ltd., from Chindio to Port Herald on the Lower Shire, a length of 61 miles, of which the first 45 are in Portuguese territory;

(b) the Shire Highlands Railway, belonging to the Shire Highlands Railway, Nyasaland, Ltd., from Port Herald via Chiromo and Luchenza to Blantyre, a length of 113 miles entirely within the Protectorate.

2. Inward goods are at present transported by river steamer from Chinde, at the mouth of the Zambesi, to Chindio, and thence by rail. The first part, however, of the Central African Railway from Chindio to the Ziwi-Ziwi Bridge, 22 miles is liable to be flooded, being built on a low alluvial island. When this happens, train communication with Chindio is interrupted, and steamers proceed direct from Chinde to Port Herald, where goods are landed and transferrel to the Shire Highlands Railway. This interruption has occurred for longer or shorter periods since the Central African Railway was opened for traffic in 1915. In 1918 the line was closed for 4 months (January-May), while in 1919 communication was only interrupted for 2-3 weeks. The floods, which may come from either the Zambesi or the Shire, or both, almost invariably take place during the first three months of the year.

3. A railway of the same gauge is now under construction by the Trans-Zambesia Railway Co., Ltd., from the south bank of the Zambesi, opposite the present railway terminus, to a point on the Beira-Mashonaland Railway some 20 miles from Beira. This line, entirely in Portuguese territory, and about 165 miles in length, is expected to be completed by 31st March, 1922. It will provide through railway communication from the sea at Beira to Nyasaland, except for the crossing of the Zambesi at Chindio. No steps for the construction of a bridge at this point appear to have been yet taken by the Central African Railway Co., which holds a concession for it from the Portuguese Government. Until such a bridge has been built, goods will have to be taken across the river by water or ropeway, and during flood interruptions it will apparently be necessary to transport them by steamer down the Zambesi and up the Lower Shire to Port Herald.

4. The Shire Highlands Railway (Port Herald--Blantyre) was the first part of the line built, under an agreement with the Nyasaland Government dated 31st December, 1902 (for the section Chiromo-Blantyre) and a supplementary agreement dated 11th February, 1908 (for the section Port Herald-Chiromo). Under these agreements the railway is the absolute property of the company, and is worked entirely by them, subject to inspection by a Govern- ment engineer for purposes of public safety, and subject to a covenant for continuous working which specifies the minimum number and average speed of trains to be run daily. Rates and fares are not subject to the approval of the Government, but will become so if in any year the receipts should exceed 7 per cent. of the capital value of the railway. No directly com- peting line may be constructed in the Protectorate for 25 years. The Government has the option of purchasing the railway, at any time after 1st January, 1937, on payment of £4,750 per mile, added to the cost of additional approved works, and a sum equal to 6 years' purchas of the average net receipts, subject to certain provisions as to depreciation. The agreement of 1902 provided for a land grant of 5 square miles per mile of constructed line, but this was commuted afterwards to a subsidy of £180,800. According to the latest balance sheet available, the capital expended up to 31st December, 1918, was £659,870, to which is added £175,000 for capitalised debenture interest, making a total of £834,870, or £7,388 per mile. In 1917 the gross receipts were £62,995, the working expenses £31,200, and net earnings £31,795. For 1918 the corresponding figures were £85,865, £52,794 and £33,071. The balance on revenue account at the end of 1918, after paying interest on the debenture stork, was £67,055. No dividends have yet been paid. The company is controlled by the British Central Africa Co., Ltd.

6. The Central African Railway (Chindio-Port Herald, 61 miles) was constructed under an agreement with the Nyasaland Government dated 12th March, 1913, and a concession from the Portuguese Government relating to the southern portion (46 miles) in Portuguese territory. The railway is the property of the Central African Railway Co., and is workel on their behalf by the Shire Highlands Railway under an agreement for at least ten years from the 17th May, 1915, the date on which the line was opened for traffic. The Shire Co. retain 10 per cent, of the net receipts for the first five years (which have just expired) and 5 per cent. thereafter, and bear any deficits. The Nyasaland Government has agreed to make good, for 10 years from the 6th May, 1913, any deficiency in the earnings of the line which may be required to pay the cumulative 4 per cent. dividend on the £500,000 Preference shares; the payments under this guarantee have been, for 1913 £4,696, for 1914 £16,531, for 1916 £17,509, for 1916 £13,095, for 1917 £10,571, for 1918 £12,363. Maximum rates and passenger fares are fixed in a schedule to the agreement with the Nyasaland Government,

PUBLIC RECORD OFFICE

Reference :-

885/26

PUBLIC RECORD OFFICE, LONDON

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