CO885-24 — Page 42

PUBLIC RECORD OFFICE

Reference

TC.O. 885

24 PUBLIC RECORD OFFICE, LONDON

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

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of opinion that the Proclamation published in Extraordinary Gazette, of 22nd instant, relating to above subject, was likely to cause serious complications, and even distress, in agricultural industrial and commercial circles, and that steps should be taken to immediately place the views of this Association before Your Excellency. It was resolved to co-operate, as far as possible, with the Chamber of Commerce in addressing Government, and in adopting the best means to face the situation unfortunately and unavoidably created.

I am directed to submit, for the information and kind consideration of Your Excellency, the following observations from my Association, which represents large proprietary interests in rubber, plumbago, and coco-nut, and which are in the best interests of the permanent population, which are dependent on the allied industries.

1. Prohibition of rubber.

(a) Under normal conditions two-and-a-half million pounds average the monthly exports to all countries. Belgium and Germany are no longer markets, and this prohibition means that the United States and Japan will be closed markets. In effect 50 per cent of our trade under the present abnormal conditions will be lost, and financial difficulties will arise.

(b) The owners of larger coco-nut estates were able to maintain their full labour forces since the outbreak of war as they also owned rubber estates. The produce of the latter they were able to realize quicker in cash, and went to supplement the partial and reduced sales of coco-nut produce.

(c) If rubber crops cannot be disposed of or realize reduced prices or are sold in reduced quantities, the owners of both rubber and coco-nut plantations worked with local labour (no advances) will be compelled A good portion of that labour to discharge several of their labourers.

was being maintained since the outbreak of war with considerable difficulty in many cases working half time to cover weekly rice supply.

2. Plumbago, only to British ports.

(a) The United States is normally the best buyer, taking annually over half the total exports, and more than double of Germany, the next best buyer. The United States of America had slackened purchases during the early part of the year, and in July placed a few orders to Thus the despatch to New York replenish their diminishing stocks. of about 1,200 tons relieved a great tension locally, and about Rs. 350,000 came into the hands of those who were bearing the brunt of a dislocated trade. Both Belgium and Germany have taken less than half the quantity they took last year for a corresponding period. The following figures are interesting :-

Exports in 1918

United

Kingdom. Belgium. Germany.

Toos. Toma

Teor.

U.S.A.

Tona.

Total to all

countries.

Tona.

6,080 14,363 28,195 5,278 1,980

905 3,035 5,309 11,537

1914, to end of September 1,800

The royalty accruing to Government from exported plumbago is about one-and-a-half lakhs per annum (Rs. 5 per ton).

(b) Almost all the plumbago-curing yards in Colombo were working half time since the war commenced; these large labour forces will have to be discharged. There are coopers, carters, and several others depending on this industry in Colombo, Galle, Moratuwa, Mirigama, etc., about 3,000 directly, and 6,000 dependents on a moderate estimate. (c) Several well established mines, with about 8,000 to 10,000 skilled labourers and other connected with the mining industry, will have to be closed down owing to the inability to meet the current expenditure. The expenses already incurred are heavy, and the closing of mines with machinery entails numerous losses, and perhaps the ruin to the oldest industry in the island. It should also be borne in mind that

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the mine labourer is usually a hardened rough, whose daily needs have been supplied him for years by his employer. It will be most unde- sirable to set such men free to seek for themselves their daily food. 3. Copra, Foodstuffs, etc.

(a) Holland took 21,309 cwts. in September this year, and London 45,450 cwts., affording considerable relief to the coco-nut industry. Den- mark, which was proving to be a good market before the war, will no longer be available.

Germany, Belgium, Russia, and Austria, the best buyers of copra under normal conditions, being already completely cut off.

(b) Norway, which was the only good foreign European buyer of coco-nut oil, having taken so much as 28,496 cwts. till end of August this year, becomes a prohibited country.

(c) Holland, Denmark, Norway, and Sweden, all regular and good buyers of desiccated nut, will all disappear, reducing our already thinned

markets.

France, a good buyer, has ceased to buy since the war.

(d) The slump in the copra trade and desiccated coco-nut market will The desiccated coco-nut cause a large number of hands to be idle. mills alone employed nearly 3,500 men, women, and youths. A very large number of small holders used to find these mills a ready outlet for sale of their small crops, will be in straitened circumstances. The fibre mills have already been adversely affected, while those depending on cinnamon, citronella, and areca nuts are also in a bad way.

The following further facts regarding the depression in trade since the out- break of war are respectfully submitted to afford help in gauging results which may occur should the Proclamation continue to be in force.

Copra-Average price before war, Rs. 75 per candy; average price since war, Rs. 50 per candy; a drop of 33 per cent. in price. Average export per month, for seven months ending July, 1914, 103,769,* valued at Rs. 1,846,762; estimated export for September, 1914, 70,767,* valued at Rs.750,000; a drop of 32 per cent. in quantity (while in August there was very little business done).

Coco-nut Oil.-Exported in July, 1914, 51,436, valued at Rs. 1,573,941; exported in September, 1914, 31,922, valued at Rs. 800,000; about 40 per cent. reduction in quantity and 20 per cent. in price. The oil trade is further hampered by want of seasoned casks for export, and return empties are slow in coming.

Desiccated Coco-nut.-Exported in July, 1914, 32.316 cwts., valued at Rs. 803,349; exported in September, 1814, 22,623 cwts., valued at Rs. 422,302; quantity reduced by nearly 33 per cent, and price about 40 per cent. The average trade products of the coco-nut palm per week, under normal conditions, were one million rupees, but for the five weeks ending October, 1914, it was nearly two million for the total five weeks. The money lost from circulation in the Colony to this industry alone for those five weeks was three million rupees, while for the four weeks of August preceding it was much more.

The Customs returns for August and September have not yet been published. The above trade figures are taken from available reports and represent only approximate figures and estimates.

My Association earnestly prays that Your Excellency will give the matters set out above Your Excellency's careful consideration, and we beg to assure Your Excellency our loyal co-operation in any schemes Your Excellency may devise.

For which act we shall ever pray,

On behalf of the Low Country Products Association,

Your Excellency's obedient servant,

HENRY L. DE MEL,

Honorary Secretary, Low Country Products Association, Colombo.

* Quantities not stated: qy.. owt.