CO885-(26N14) — Page 294

CO882 & CO885 Colonial Office Confidential Prints 理藩院機密印刊 All

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British capital may, I venture to think, be invested both in this valley, as also in the southern (Toledo) district and in the northern district, Corozal, and to encourage the culti vation of sugar-cane, by subscribing capital to erect and provide a central factory (a small one in the first instance) for the manufacture of syrup, or sugar, or both. The Government would be prepared to provide a site for such a factory free of cost, and would do its utmost to settle small farmers on the land on easy terms, and give otherwise every possible assistance.

In addition to the Imperial preference now granted to British sugar, there is the new preference of 50 per cent, recently granted by the Dominion of Canada.

In order to readily attract labourers from Jamaica or elsewhere, the planters who have to employ imported labourers should be able to offer a wage equal, or almost equal, to that offered in Cuba and in San Domingo. Similarly, the sugar or syrup manufacturer should be in a position to pay a price per ton for sugar-cane, the property of small planters, which should bear the same ratio to the rate of wages paid to labourers who plant, cultivate, and reap the cane for employers.

Whether this would be possible with the 50 per cent. Customs preference on the Canadian market is a question which I have not gone into closely.

My personal view is that if there was a bona fide intention to use British capital in developing a larger sugar or syrup industry in the Colony, there would be sufficient ground for moving the Government of the Dominion of Canada to increase their Customs preferential rate on sugar equal, or nearly equal, to that given by the United States of America to sugar imported into the United States from Cuba, Porto Rico, San Domingo, and the Sandwich or Hawaiian Islands,

If such a step were taken it would give ample security for the investment of capital in the sugar industry, because a safe market would be assured, and there is no doubt in my mind that a sufficient number of agricultural labourers would be obtained from Jamaica and from the neighbouring Republics,

To sum up, I have advocated that an attempt might be made to encourage the investment of British capital in the Colony in the following directions, and I will name them in the order of importance which appears to be desirable:-

(a) The investigation of the resources of the Colony in particular relation to its forests and mineral wealth, and to extend such investigation into the province of Peten in Guatemala-the aim being to obtain information as to the probable commercial value of any light railway which may be constructed from the coast into Guatemala.

(b) In following up any results of the forthcoming geological and forest surveys of the Colony, particularly in the search for indications of mineral oil and precious or other metals.

(c) The encouragement of the investment of British capital in the manufacture of sugar

and syrup.

In conclusion, I desire to record that in point of health, except in some particular localities, British Honduras compares very favourably with other Colonies. Modern medical science has had its effect in removing from the Colony its old reputation of being a hotbed for malaria and yellow fever. The number of cases of malaria in the populous centres is extremely small; there has been no case of yellow fever since the year 1905.

The financial position of the Colony at the present date is sound. It has benefited con- siderably in late years by the fact that, although it has its own currency in dollars and cents, the standard coin by local law is the American gold dollar.

It has, therefore, felt the effect of the depreciation of the British pound sterling very little indeed. This fact may offer some objection to the investment of money from the United Kingdom in the Colony for some time to come owing to the heavy rate of exchange. I have realised that this point is one to be faced, and that the present conditions point more favourably to the possibility of the investment of Canadian capital in the Colony's development in the near future.

28th October, 1920.

No. 22.

EYRE HUTSON, Governor of British Honduras,

SUPPLEMENTARY MEMORANDUM ON THE DEVELOPMENT OF BRITISH HONDURAS BY THE GOVERNOR, MR. EYRE HUTSON.

In my Memorandum of the 28th ultimo," to be communicated to the Economic Development Committee, I alluded to the possibility of the investment of British capital in a sugar or syrup industry in the Colony of British Honduras; and in referring to the value of the Customs preference proposed by the Canadian Government to be given to products of the Colony imported into the Dominion, I stated that the proposed preference was on the basis of a 50 per cent. rebate. I added that I had, so far, not studied the question sufficiently closely to enable me to express an opinion whether the suggested sugar industry, if established on a fairly large basis, could compete with sugar produced in Cuba, Porto Rico, and San Domingo, and could thus afford

• No. 21.

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to offer wages to labourers on the basis of those now being paid in those countries. Through the courtesy of the Secretary of the West India Committee, I have obtained reliable information as to the protection offered by the Government of the United States to sugar the product of Cuba, San Domingo, and to their own Colonies of Porto Rico, St. Croix, the Hawaiian Islands, and to the Philippine Islands,

The annexed statement shows the position clearly.

Porto Rico sugar goes into the United States free. Cuba receives a 20 per cent, preference, We shall receive a 50 per cent, preference from Canada and therefore we shall be in a better position in Canada than Cuba is in the United States.

On the other hand, in consequence of the very large areas under cultivation in Cuba and the resulting large factories, Cuba appears to be able to offer higher wages than are offered in British Colonies. The increased Canadian preference may change this.

The largest British sugar factory in the British West Indies is capable of producing 20,000 tons of sugar. The largest in Cuba can produce 100,000 tons.

The 50 per cent, preference in Canada should give a great impetus to the sugar industry in the British West Indies; at the same time it should not be overlooked that the United States admits free of duty Porto Rico, Hawaiian, and Philippine Islands sugar.

3rd November, 1920.

ANNEXURE.

EYRE HUTSON.

COMPARATIVE TARIFF RATES OF DUTY ON 96° SUGAR (REFINING QUALITY) IN THE UNITED STATES, CANADA AND THE UNITED KINGDOM,

UNITED STATES: General Rate

CANADA :-

Rate on Ouban... General Bate

Rate on British-grown...

TTT

***

Proposed new preference rate on British-grown to be UNITED KINGDOM:-General Rate

British-grown

...

1.856 cents per lb.

1.0048 1.375

21

"

*

19

1:0375 "

.83712

31

1)

22. 4 5. por ow

18a. 7.75x.

31

11

Porto Rico, Hawaiian, and Philippine Islanda sugars are admitted into the US.A. free of duty.

No. 23.

STATEMENT BY COL, ANDW. M. JACKSON AND MR. GEO, WM. BRAITHWAITE, DIRECTORS OF THE BRITISH HONDURAS SYNDICATE, LIMITED, OF HULL.

We are Directors of the British Honduras Syndicate, Ltd., which was registered as a Limited Company in January, 1891.

This Syndicate raised a sum in all of about £120,000 capital, nearly all from Hull share. holders, and bought about 16,000 acres of land about six miles inland from the port and town of Stann Creek in British Honduras.

The idea of the Company was to grow rubber (Castilloa Elastica) and bananas.

The Castilloa rubber is indigenous to Mexico and British Honduras, but had not previously been planted in a cultivated form.

We believe we were one of the pioneers of rubber cultivation.

As a catch crop until the rubber was grown we intended to grow bananas, which are a quick-growing crop.

We imported a large number of labourers from Inagua, one of the Bahama Islands, and afterwards some Jamaicans, and we eventually cleared about 800 acres of land and cultivated it. This, of course, took several years.

We also bought a store in the town of Staun Creek, and we made a tramway six miles long from the sea to our estate.

It was a narrow gauge and the trucks were pulled by mules.

Our plantations still continue in a small way but our planting did not prove a success, principally through lack of experience and poor management.

The rubber trees, although they grow wild and luxuriantly round the estate, do not thrive when planted in a clearing, and we have come to the conclusion that they suffer from the want of the big shade trees.

As regards the bananas, there was no other outlet for us but in the steamers of the United Fruit Company of Boston (U.S.).

The owners of these steamers bought the bananas at Stann Creek, but they never gave ug a living price.

The Company sold the bananas in New Orleans at a high rate and paid us about 15 or 20 cents for an eight-hand bunch.

We bought a good deal of experience, but we lost most of our capital, and our shareholders got disheartened and would not subscribe more.

PUBLIC RECORD OFFICE

Reference :-

EPELTIC 885/26

זון

PUBLIC RECORD OFFICE, LONDON

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

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