CO885-24 — Page 21

31

BRITISH HONDURAS.

PUBLIC RECORD

OFFICE

19

Reference :—

། ?། ། ། ......i ......i C.O. 885

24 PUBLIC RECORD OFFICE, LONDON

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

BRITISH HONDURAS.

11. Partly to obtain cheap food, and partly to provide work for the For this unemployed, I propose to start plantations of Indian corn and beans. purpose I must temporarily take possession of unused private lands; but their I shall prob- owners will not suffer, and the welfare of the Colony depends on it. ably have to expend from $30,000 to $50,000 on this work; but this will probably all be recouped by the sale of the produce. At any rate, two gentlemen of experi- ence are willing to undertake the management on condition of their receiving no As all payments for remuneration until the Government has recouped itself. labour (the principal item), implements, etc., will be made direct by Government

other

than officials, there will be no risk of the money being applied to any purpose that indicated. It is essential that the sowing be completed in good time before the dry season begins, and I am, therefore, compelled to start operations without being able to receive your approval first.

12. When the dry season begins I propose undertaking as much desirable road work as I can, but only paying low wages, as in the case of the agricultural opera- tions. This expenditure will necessarily mean a reduction of our surplus funds. but in the long run may be indirectly remunerative. The roads are much required and will be constructed at much less than could be done in ordinary circumstances.

13. I am afraid that even all the foregoing will be insufficient to maintain the labour of the Colony usefully employed, unless assistance is given to some of the smaller employers, and I ask permission to make advances to such as can give good security. But I am afraid I cannot make these advances without myself obtain- ing advances on the credit of the Colony. Perhaps the Imperial Government would be willing to lend the money to the Colony, to be repaid with interest within a short If this cannot be done the period say, three years after the close of the war. Colony might raise a loan with the assistance of the bank here, or of business persons, secured on the revenue of the Colony and also on the property mortgaged to the Government by the persons receiving advances.

14. With regard to the disposal of the moneys advanced I should propose that, whenever possible, the actual payment to labourers and others be made by Govern- ment officers, so as to secure that the money is applied to the purposes for which it is borrowed. I should hope that a great deal of this money would be spent on agriculture; but in some cases I think it would be advisable also to make advances to mahogany cutters, which would be secured by the wood taken out.

15. It is impossible for me to say at the present moment how much money should be advanced in this manner. I should say not less than £10,000 and not more than £50,000.

16. In connexion with the subject of advances I would venture to recall part of my service in Cyprus. The crop of 1902 was a failure, and the Government had to assist the peasants. It lent seed corn, purchased chopped straw and sold it on credit, and in 1903 advanced small sums for payment of harvesters' wages. The total amount involved was about £35,000. It was I who in every single case determined the amount of the assistance given, and all the money was recovered without a single piastre having to be written off. I cannot expect the same entirely satis- factory results here, because circumstances are so different; but I do suggest that my Cyprus record shows that I may be trusted to act with prudence in the making of advances. I should propose to charge 8 per cent. interest per annum, which has been the ruling rate hitherto. At any rate more interest must be paid than the Colony has to pay.

17. Although I do not think that the Colony can go through this crisis without assistance. I believe that within a short time after the termination of the war it will have repaid with interest all sums advanced to it. The temporary collapse in the mahogany market will, I hope, be compensated for by a revival of agriculture.

I have, &c.,

WILFRED COLLET,'

Governor.

36347

(No. 137.)

No. 21.

THE SECRETARY OF STATE to THE GOVERNOR.

Downing Street, 2nd October, 1914. SIR,

I HAVE the honour to acknowledge the receipt of your despatch No. 152, of the 3rd September,* respecting the economic position of the Colony.

2. As regards the obtaining of supplies of food from the United Kingdom. you will by now have learnt of the removal of the prohibition to export foodstuffs from this country so far as the British colonial possessions are concerned. It should, however, be noted that difficulties with the Imperial Customs authorities as to the export of such commodities to British Honduras may arise unless it is made clear that they are intended for the Colony, either by their being sent direct or by their being consigned to a firm in the Colony and not to agents, etc., at New Orleans or elsewhere.

3. With reference to paragraph 9 of your despatch, I should explain that the statement in the Morning Post to which you refer was inserted on inaccurate infor- mation, and that it is not proposed to sanction any such suspension of payments either of interest or of contribution to the sinking fund. Such an arrangement does not recommend itself as financially sound, and I am not prepared to sanction the suspension of payments to the sinking funds in the case of British Honduras.

4. As regards the financing of the scheme of advances to small employers of labour, dealt with in the 13th and following paragraphs of your despatch, I doubt if the situation as at present revealed would justify an appeal to the Lords Com- missioners of the Treasury, and, in the first instance, I am ascertaining from the Crown Agents whether they would be prepared to advance the amounts likely to be required at bank rate varying on the security of the Colony's revenue, and I will inform you as soon as possible what arrangements can be made for this purpose. Pending the receipt of a further despatch from me on the subject, you will not, of course, assume that the money will necessarily be forthcoming.

5. Apart from the exceptions indicated in the foregoing paragraphs, I approve the measures which you have decided to take and your further proposals for the relief of distress.

I have, &c.,

42616

No. 22.

L. HARCOURT.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 2nd November. 1914.) [Ordinance sanctioned, 25th November, 1914. (No. 182.)

No. 154. L.F.]

Government House, Belize, 15th October, 1914. SIR,

I HAVE the honour to transmit herewith authenticated and unauthenticated copies of Ordinance No. 24 of 1914,† entitled "An Ordinance to enable the Governor to provide holdings for agriculturists who agree to grow food or other crops thereon during the present war, and to enable the Governor to hire land for that purpose," together with a copy of the Acting Attorney-General's certificate thereon. 2. The object of this Ordinance is firstly to obtain a quick supply of food;

and, secondly, to provide work for unemployed labourers.

3. The corn crops in Central America have been a partial failure, and the troubles in Mexico have left a great portion of that country without crops. The price of corn, which is the principal diet of the Indian and of the Spanish-speaking Besides this, other foods such as portion of the population, is now excessive. flour, rice, beans, and sugar have risen in price; and wages have fallen quite 30 per cent.

* No. 20.

+ Not reprinted.