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CYPRUH.

PUBLIC RECORD OFFICE

Reference -

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24 PUBLIC RECORD OFFICE, LONDON

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

in order to meet the second point Government in September issued paper money to the extent of £35,000, in notes of £5 and £1; and orders for an eventual supply of notes to the value of £200,000, in denominations of £5, £1, 10s. and 58., were placed with the Crown Agents. Facilities were given to the two banks above mentioned as regards the notes, in return for cash deposits made by them in favour of the Island Government with the Crown Agents in London.

As a result of these measures business in the island has been comparatively unaffected by the war. Relief works have, so far, been unnecessary, trade has con- tinued, the collection of taxes has proceeded normally, and no curtailment of Government expenditure has been rendered necessary.

8. On the 8th day of August I issued a Proclamation under martial law establishing a moratorium until the 13th September, and suspending during that period the execution of judicial decisions in respect of debts, damages and costs. and the payment of bills of exchange and other negotiable instruments and other matters. This period of delay was extended by Proclamation on 11th September until the 13th October. On the 8th October, having come to the conclusion, after discussion with the Official Members of the Executive Council, that the time had come to determine the period of delay, I issued a further Proclamation, in which the 8th of November was fixed as the date for the expiration of the moratorium, which thus covered a period of three calendar months: but clauses were inserted providing that bills of exchange which would under normal circumstances have fallen due on dates within the period of delay would not be exigible till a period of three months had elapsed from the date on which they would otherwise have been exigible. On the 22nd October, in order to prevent the forced sale at short notice of a large amount of immovable property owing to the ceasing of the moratorium, I issued an amending Proclamation, providing that the execution of judicial decrees in respect of immovable property should be suspended til the 7th of December, and further, that in cases where a writ of execution fell due between the 8th August and the 7th October, a period of four calendar months should be allowed to elapse after the date in question before the execution of such writs. By these means the inter- ruption of business consequent on the outbreak of the war was reduced to a mini- mum, and time was given to the general public to allow the normal course of business to be gradually resumed.

9. On the 6th August instructions were issued to the Commissioners of each district to discuss with the Presidents of Municipal Councils and with representa- tive merchants the question of fixing maximum prices for foodstuffs. On the same date I issued a Proclamation prohibiting the export from the island of cereals. various forms of forage, cattle, sheep, pigs, poultry, etc., and, without express per- mission, of horses, mules, and asses. Such express permission is, however, given when the Governments of British possessions and of Egypt make an application to this Government to import from Cyprus. This Proclamation has since been var- iously modified, both in accordance with your instructions and with local circum- stances; and I would here mention, with reference to my Proclamation of 28th October in Gazette Extraordinary No. 1134, of which I attach a copy,* that this Government has decided not to regard the ports of Egypt, which is the principal purchaser of Cyprus produce, as foreign porta."

Maximum prices have at various times been fixed on such commodities as bread, rice, sugar, petroleum, coffee and coffee beans, wheat, and maccaroni; and in August last authority was given to the Treasurer to issue wheat for a short period from the Government grain store to bona fide Limassol bakers, to be made into bread for sale not above the maximum price fixed by Government. It was also notified that wholesale merchants should. if necessary, sell commodities for which a maxi- mum price had been fixed at 20 per cent. less than the fixed maximum.

There has as yet been no dearth of necessaries in the island, and prices have Leen kept without difficulty within the established limits.

I would add that, as regards the export of animals, the embargo on the export of goats was removed at an early date, and Government was able to supply the Government of Malta with 1,231 goats, at a cost of £1,142, for the victualling of the Indian troops. It is a matter of regret, from the point of view of this island, that the demand was not more prolonged.

*Not reprinted.

10. As regards the treatment of enemy subjects, who, prior to the participa- tion of Turkey in the war, were principally confined in Cyprus to the Austrian personnel of the Cyprian Mining Company at Amiandos, near Troodos, and who were well known to the Government, I did not consider that very stringent measures needed to be adopted. A form of undertaking was drawn up, which enemy sub- jects were directed to sign before the Provost Marshal, and in which they declared that they would not leave the island without permission or in any way assist the King's eremies. Authority was given to the Provosts Marshal to take security for the due performance of the undertaking where they considered it desirable to do so, and permission to leave the island was refused in all cases to persons of a military age. I enclose for your information a copy of the undertaking* as amended after the intervention of Turkey.

In view of the peculiar position of Cyprus, the entrance of the Ottoman Empire into the conflict to some extent complicated the question of alien enemies of Ottoman nationality. In consequence of my Proclamation of 5th November, issued in accordance with your instructions and published in the Cyprus Gazette Extra- ordinary No. 1136 (copy* of which I enclose), the vast majority of Cypriots auto- matically became British subjects. There remain, however, a number of persons of Ottoman, Armenian, Greek, or Syrian race, who do not come within the provision of paragraph 1 of the above Proclamation. Among these are several trusted ser- vants of the Government; many others are known to be anxious to acquire British citizenship at the earliest opportunity; and it was therefore felt desirable in their case to interpret your instructions as to the treatment of alien enemies in as liberal a spirit as possible. While, therefore, all Ottoman subjects at present in the island, other than Government employés, have been directed to sign the form of undertak- ing above alluded to, and are not permitted to leave the island without special per- mission, no other restrictions are placed upon those of known reputable character. Further, I am not refusing permission to leave the island to respectable persons who may find it necessary. in the interests of their business, to make occasional journeys to Egypt.

11. As you are aware, the retention by His Majesty's Government of the two men-of-war building in England for the Turkish Government at first aroused some resentment in Cyprus owing to provocative articles which appeared in the Turkish Press of Constantinople. By my explaining the position of His Majesty's Govern- ment in the matter and her rights under international law to the Honourable M. Irfan Bey, senior Moslem member of the Legislative Council, in a letter to which publicity was given in the local Turkish Press, as well as by meetings of Moslem notables convoked at my direction in each district by the Commissioner, this feeling was entirely dissipated, with the result that the proclamation of annexation on 5th November was received by many of the Moslems with satisfaction, by all with acquiescence. Representative Moslem opinion in the island wholly condemns the attitude of the present Turkish Government, which it considers to be a nefarious clique not representative of the feelings of the Turkish people; and it associates itself with the sentiments to which His Highness the Agha Khan recently gave public utterance. To avoid the possibility of hurting Turkish feelings, I directed that there should be no public ceremony in Nicosia in connexion with the annexa- tion, which was made known, consequently, by the posting of the Proclamation in public places. Both in Nicosia, as in the districts, as I learn from the Commis- sioners' reports, the news was received with cordiality by both sections of the popu- lation. There is no disguising the distress felt here among the representatives of the best Turkish opinion at what they consider to be the ill-advised and unpatriotic actions of the Turkish Government.

Before leaving this subject, I desire to place on record the unhesitating manner in which the Greek-Christian section has supported the Allied cause since the ont- break of the war. From time to time local communities have offered help toward the formation of local hospitals for sick and wounded, should such be required, and they have readily assisted in charitable entertainments in aid of such objects as the Red Cross Fund.

12. I think that I have now dealt with the principal aspects of the war as Various minor they have so far affected administrative action by this Government. points have naturally arisen, to one or two of which I would briefly refer.

• Not reprinted.