CO885-24 — Page 75

PUBLIC RECORD OFFICE

Reference :-

FILMC.O. 885

24 PUBLIC RECORD OFFICE, LONDON

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

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The result of the policy of allowing ingress into the fortress to other than British subjects has enabled the dockyard work to be continued without interrup- tion, and I attached to this the greatest importance. It avoided diplomatic diffi- culties with Spain and disturbed as little as possible the business of the town. On the other hand, it rendered greater vigilance necessary to prevent the intrusion of spies and to avoid danger from evilly disposed persons. This has been met success- fully. From long experience the men at the Four Corners and on the Bayside Barrier are very efficient in detecting at once an unknown face, and both at these places and at the disembarkation stage from Algeciras I doubt if any undesirable aliens have entered Gibraltar without knowledge.

Undesirable visitors. While permitting, as above described, the continued residence and daily entry of neutral aliens, due regard was paid to the importance of preventing permanent unnecessary additions to the number of residents, and the principles adopted in this matter will be found detailed in my despatch No. 161, of 28th October, 1914.* Among arrivals there was a possibility that undesirable individuals might intrude themselves, and, since nothing short of definitely closing the gates could guarantee absolute immunity from risk of this nature, it became necessary to rely on the increased vigilance of the police in order to guard against it. Careful inquiry is made into the identity and the business of any person desiring to remain overnight in the fortress, and permits are given to remain for

limited period only.

The wives of officers, warrant officers, etc., of the Army and of employees in the dockyard were gradually, as the supply of food, etc., became assured, allowed to roturn; but restriction was placed upon those who were merely residents in the place and who had no claim to return. These restrictions were removed on receipt of

your despatch No. 2 of 4th January, 1915.†

III. Finance. The excitement and uncertainty of the earlier days of threatened hostilities, the fear that aliens might be excluded and certain classes of residents expelled, resulted in immediate notice to withdraw deposits from the banks.

Application was made on the 2nd August to the Imperial Government by telegraph for a temporary loan of £100,000, and a reply that such a loan was im- practicable and that notes should be issued was received on the 3rd August.

On the 5th August a meeting was held by me with the members of the Chamber of Commerce and Exchange Committee, at which the Colonial Secretary and the Treasurer were present. The situation was explained and the meeting enthusias- tically promised all possible support and assistance. An Ordinance was passed that day and the notes were issued. The circumstances were fully reported in my despatch dated 17th August.‡ This despatch, with a memorandum from the Colonial Treasurer, dated the 14th August, showing the withdrawals on the Anglo-Egyptian Savings Bank and on the Government Savings Bank, are given in Appendix "D."

The result was immediate. On Thursday, the 6th August, the notices of with- drawal on the Anglo-Egyptian Savings Bank amounted to 498,000 pesetas and £3,800 sterling, and on the Government Savings Bank to £775. On the following day they fell respectively to 124,000 pesetas and £325 sterling, and from that date diminished to the normal, showing that confidence was restored.

The action of the Paymaster as regards the Treasury chest balance is given in Appendix "E." The total note issue authorized was £250,000.

Up to the 14th August £50,000 were issued, and up to this date (19th April, 1915) £114,500.

IV. Supplies-In the defence scheme (Chapter III. (g) and Chapter VI.) tables of supply were prepared in detail. I had considered these tables and the instructions in regard to them soon after taking over command. I had caused the scale of rations laid down for the civil population to be revised on certain lines with reference to age and sex, and a reduction resulted. The scale of medical comforts was clearly in excess of any probable eventuality that could arise. Instructions were given to reduce it by 50 per cent., and the great loss that would have resulted had these steps not been taken was avoided.

The defence scheme anticipated that the civil population would be rationed 'as soon as the local supplies were not available in the ordinary way." The

* 42524: not printed. + 51844: not printed. † Appendix D.

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machinery laid down for the purpose in Chapter III. (g) was put in operation, and the reserves of supplies for the garrison were complete by the 6th August.

Events, however, showed that considerable modifications of the scheme would be necessary.

Spain, immediately war was declared, prohibited the export to Gibraltar of charcoal, meat, and foodstuffs other than vegetables. This action on her part had not been anticipated, and the situation was one of much difficulty. Charcoal is of first importance to the inhabitants, who are entirely dependent on it for cooking.

Meat had also to be provided. It appeared that the Spanish Government feared that the refugees from Gibraltar would fill La Linea, and that prices would rise dangerously in consequence. In communication with the Ambassador, Madrid -despatches from Ambassador to Foreign Office No. 131, dated 9th August, and No. 133, dated 11th August-an interview was arranged with the Governor of Algeciras, General Alsina y Netto, on the 12th August, at which Major Espinosa de los Mon- teros, a son-in-law of the Premier, Señor Dato, was present. I attach a note of the conversation. (See Appendix "F.") I found the Spanish authorities willing to help us, but in much fear of the German Consular authorities in Algeciras.

On the 18th August I received a satisfactory reply from the Governor of Algeciras as regards charcoal, saying that he had had great pleasure in "giving instructions in a confidential manner in order that the search of the Customs of this district may be carried out with great leniency, so as to allow of small quanti- ties of charcoal being passed to the fortress."

Meanwhile the wants of the civil population had become acute. Meat was scarce; steps had to be taken to procure both meat and charcoal from Lisbon. About 550 bags of charcoal were imported from Lisbon, and as there was in hand in military cold storage a full reserve of frozen meat, with intimation of a large con- signment coming in the steamship "Perthshire," I ordered supplies of it to be placed the market twice a week at 8d. per lb., the cost to the salesman being 44d. per lb. upon plus 21 per cent. for departmental expenses. The result was in every way satis factory. It was popular with the people (although the butchers assured me, when I interviewed them in the market, that the people would not like it), and it gave them confidence that their interests were not lost sight of. I am inclined to think that the knowledge that charcoal was being imported into Gibraltar from Lisbon had its effect upon Spain, and that the communication received on the 18th was in some degree due to it.

Whilst on the one hand the unexpected action of Spain necessarily caused anxiety, on the other it became evident that no shortage in other supplies-wheat, groceries, etc.-need be feared, for on the declaration of war the bay was crowded with shipping; and from thence onwards trade moved normally.

With the resumption of normal trading the necessity for feeding the civil population as proposed disappeared, and a policy of giving fuller powers of export and import of goods to merchants in consideration of the maintenance by them of sixty days' reserves of foodstuffs, etc., was initiated. This, too, avoided the difficulty of the turnover of supplies, which could not have been effected sufficiently rapidly by the consumption of the garrison only.

The expressed policy of His Majesty's Government to restore British oversea trade to its normal footing favoured the adoption of this course of action, as explained in my despatch of the 10th October, 1914.* (See Appendix "G.")

Fixing prices. Prices, however, had risen, and it became necessary to regulate them. Ar Ordinance. No. 12 of 1914, was made on the 14th August, enabling the Governor to fix the wholesale prices of food. The Committee appointed for that purpose consisted of Colonel Haynes, Command Paymaster, as Chairman; Major Burrard, Army Service Corps; H. S. Vaughan, Esquire, His Majesty's Victualling Yard; A. Porral, Esquire, C.M.G., I.S.O.. Chairman, Chamber of Commerce; J. A. Patron, Esquire. C.M.G., Chairman, Exchange Committee. This Committee had a somewhat difficult task, which they performed in a manner which earned the con- fidence of the community.

The general position is explained in my despatch of 10th October, 1914.* (See Appendix "G.") The chief point of interest is the transaction by which sugar

* Appendix G.