CO885-(7-8)-2 — Page 120

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PUBLIC RECORD OFFICE

Reference :--

TLC.O. 882

8

PUBLIC RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

Annexure A.

Annexure

B.

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5. I have also approved recommendations, submitted by the Railway Board, that the goods sheds of the principal railway stations should be enlarged, to meet the increased traffic in sugar.

6. The Council of Government also passed a resolution at a meeting held on the 17th June that Government should remit customs duties or direct taxes leviable on automobiles, steam road engines and trucks, &c., imported for agricultural purposeg during the year beginning 1st July, 1902, and ending 30th June, 1903.

7. It was also resolved that surplus funds should be appropriated for the con- struction of railway sidings, and the purchase of automobiles on certain conditions to be laid down by the Governor in Executive Council.

July 23, 1904.

ANNEXURE A.

CHAS. BRUCE.

EXTRACT from the Minutes of Proceedings of the Council of Government at a meeting held on the 17th June, 1902.

2. The following motion was agreed to by the Council of Government on the 17th June:-

“Considering the enormous losses which the surrah has caused and is still causing to the interests of the sugar cane planters throughout the Colony, amounting in certain districts to the loss of nearly all the beasts of burthe; considering also the very serious difficulties, consequent on such disease, with which such planters will have to contend when realising their crop, it is expedient that Government should adopt every means tending to facilitate the conveyance of canes to sugar factories, the most important of which consisting in the remission of all customs duties or direct taxes leviable on automobiles, steam road engines and trucks, rails and accessories, locomotives, waggons or wire ropes imported for agricultural purposes during the year beginning 1st July, 1902, and ending 30th June, 1903.

"Provided also that any of the above articles imported previous to 1st July shall be exempt from the payment of direct taxes payable during the year

1908."

ANNEXURE B.

3. In connexion with the above motion the following Resolutions were agreed to:-

"Whereas an outbreak of disease among beasts of burden threatens to interfere seriously with the means of transport in the Colony, and specially with the transport of sugar canes and sugar:-

"(A) The Council of Government approve of the appropriation of surplus funds for the construction of railway sidings in cases where the Governor in Executive Council is satisfied that the construction of such siding will ensure an increase of revenue sufficient to justify the outlay; the conditions to be laid down by the Governor in Executive Council."

"(B) And the Council of Government further approve the purchase out of surplus balances of automobiles to facilitate the conveyance of canes of small planters to the factories or railways on such terms and conditions as may be approved by the Governor in Executive Council."

35972

21

No. 8.

GOVERNOR SIR C. BRUCE to MR. CHAMBERLAIN. (Received 6.0 p.m., August 28, 1902.) TELEGRAM.

[Answered by Nos. 9 and 11.]

Referring to your telegram of 25th August,* security for payment on crops alone would not be sufficient without a provision for transfer of, or abandonment of, estate. Procureur-General suggests repayment to be made by annuities on security of contract running with land analogous to rentcharge created by Improvement of Land Act, 1884. Punctual payment of annuities to be secured, firstly, by making annuity rank first among privileged maintenance charges; secondly, by privilege charge on crops and proceeds as in Article No. 3 and 4, Ordinance No. 4 of 1898; thirdly, by right of seizure of, and sale of, estate. Do you agree?

35972

No. 9.

MR. CHAMBERLAIN to GOVERNOR SI C. BRUCE. (Sent 2.30 p.m., September 1, 1902.)

TELEGRAM.

[Answered by No. 12.]

Referring to your telegram of August 28th,† proposal approved; Loan Law is being prepared.

35972

No. 10.

COLONIAL OFFICE to CROWN AGENTS.

[Answered by No. 14.]

GENTLEMEN,

Downing Street, September 3, 1902. I AM directed by Mr. Secretary Chamberlain to transmit for your consideration copy of telegraphic correspondence with the Government of Mauritius, from which you will understand that in consequence of a serious outbreak of " surra in the Colony it is proposed to raise a loan for a considerable sum to assist the introduction of mechanical transport on sugar estates.

1)

2. I am to request you to advise as to the form of loan which is likely to prove most advantageous, and to be good enough to supply this Office with a draft Ordinance at as early a date as may be possible.

3. Mr. Chamberlain will be glad if you will meanwhile procure and send out to the Government of Mauritius the fullest information possible with regard to Decauville and other types of light railways in use on sugar estates.

35972

(No. 213.)

SIR,

No. 11.

I am, &c.,

C. P. LUCAS.

MR. CHAMBERLAIN to GOVERNOR SIR C. BRUCE.

Downing Street, September 3, 1902.

I HAVE the honour to acknowledge the receipt of your despatch, No. 273,

• No. 6.

+ No. 8.

‡ Nos. 4, 6, 8 and 9.Page 121

PUBLIC RECORD OFFICE

Reference :--

TLC.O. 882

8 PUBLIC RECORD OFFICE, LONDON

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

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of the 22nd of July last,* and of your telegrams of the 14th and the 28th of August, relating to the arrangements to be made to meet the difficulties caused by the out- break of "surra" in Mauritius, and to confirm my telegram of the 1st instant,‡ in which I expressed my approval of the scheme for a loan to assist the introduction of mechanical transport for canes and other produce and informed you that the draft of the necessary Loan Ordinance was being prepared by the Crown Agents for the Colonies.

2. I have also requested the Crown Agents to furnish you with full information with regard to the Decauville and other systems of light railways in use on sugar estates.

37491

No. 12.

I have, &c.,

J. CHAMBERLAIN..

GOVERNOR SIR C. BRUCE to MR. CHAMBERLAIN.

(Received 4.24 p.m., September 8, 1902.)

TELEGRAM.

[Copy to Crown Agents, September 11, 1902: 37491: not printed.]

[Answered by No. 13.]

Referring to your telegram, 1st September, re tramways. In order to meet cases of parcelling of estates in minute sub-divisions among small proprietors in accordance with local custom, I propose to make refund of loan condition precedent. I am not sure that it is necessary (to) fix limitation on amount of loan to be raised but if necessary would suggest £100,000 instead of Rs. 1,000,000.

37491

No. 13.

MR. CHAMBERLAIN to GOVERNOR SIR C. BRUCE.

(Sent 4.10 p.m., September 9, 1902.)

TELEGRAM.

[Copy to Crown Agents, September 11, 1902: 37491; not printed.]

Your telegram of 8th September.§ Approved, except that in the absence of further particulars I consider that limit Rs. 1,000,000 should not be exceeded.

39507

SIR,

No. 14.

CROWN AGENTS to COLONIAL OFFICE.

(Received September 22, 1902.)

[Copy to Governor, September 23, 1902. No. 235. L.F.] [Answered by No. 47.]

Mauritius Loan.

Downing Street, London, September 22, 1902. I HAVE the honour to acknowledge the receipt of your letters of the 3rd|| and

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11th instant, having reference to the request of the Government of Mauritius to be allowed to raise a loan to assist the planters in introducing mechanical transport on their estates.

2. We gather from the telegraphic correspondence which is enclosed for our information that it is contemplated that the loan should have a currency of ten years, that being the period within which it is proposed that the planters should be required to pay off the advances made in respect of their estates,

3. In these circumstances it will be necessary that the loan should be issued in the form of debentures, as the currency would be too short for the ordinary investor in inscribed stock. We would also suggest, for Mr. Chamberlain's con- sideration, that the debentures should be issued with a double currency, i.e., repay- able at the option of the Government ten years after issue, or by six months' notice at any subsequent date within a further fixed period, say 10/20, or 10/30 years, the latter period being quite immaterial. This arrangement would enable the Government to postpone for a time the repayment of the loan if the sinking fund should prove inadequate to liquidate the debt, or if, for any other reason, it might be thought desirable to increase the currency of the loan for a short period.

4. It is not possible to say in advance at what rate of interest such a loan could be raised, but at the present time we do not think that less than 4 per cent. on a par basis would have to be paid. This rate is, however, we think, the highest at which the loan should be issued, and we should hope, when the present stringency in the money market, owing to the great mass of unabsorbed securities which are in existence, has passed away, that it might be possible to raise the loan on a 33 or 31 per cent. basis.

5. The short currency of the loan will, however, necessarily enhance the rate of interest which will have to be paid for it as compared with inscribed stock with a long currency, and the sinking fund to liquidate it must, of course, be very onerous. Taking 3 per cent. as the probable rate at which investment of the sinking fund would be effected during the ten years' currency of the loan an annuity of £8 18s. Od. per cent. will have to be provided and remitted in respect of the sinking fund, and this amount while including the estimated expenses of issue and redemption, and our charge for paying the interest on the loan does not include any expenses which may be incurred in the Colony, the amount of which should be calculated in the Colony, and added to the annuity. The rate of interest at which the loan was raised would, of course, also have to be provided for and remitted.

6. As regards your request that we would draft the necessary Ordinance, we do not see how it is possible for us to do so. We gather from the telegraphic corre- spondence that the annuity to be paid by the planters will be charged on the estates in somewhat the same manner as in the case of the Agricultural Loan Ordinance, No. 4, of 1898, herewith returned, and the new Ordinance can, therefore, it appears to us, be only drafted in the Colony.

7. So far, however, as the provisions necessary for raising the loan are concerned, it will only be necessary to enact that the loan is to be raised under the conditions set out in the material sections of the General Loan and Inscribed Stock Ordinance, No. 1, of 1887, viz., Sections 4, 5, 6, 7, 8, 9, 10 (part of) 12, 20 and 21 with the necessary additional provisions required in respect of a loan to be liquidated by an invested sinking fund in place of Sections 10, 11, 13, 14, 15, 16, 17, 18, 19, which apply to the liquidation of a loan by drawings.

8. Provision must also be inserted in the Ordinance setting out that the loan will rank after the Hurricane Loan raised under the provisions of the Ordinance, No. 4, of 1892, and guaranteed by the Imperial Government on the express condition that the priority of the loan should be acknowledged in any further borrowings.

9. I beg to add that we have taken steps to obtain catalogues and full particu- lars of all the light railway plant and traction engines with which we are acquainted, and that these particulars, so far as they have at present reached us, are being sent to the Colonial Government by the present mail.

I have, &c.,

W. H. MERCER.

• No. 7.

↑ Nos. 4 an 18.

‡ No. 9.

§ No. 12.

| No. 10.