CO129-577-1 Estimates- effect of war on colonial estimates 15-9-1939 - 4-10-1939 — Page 16

7450/39

'IRCUL JR TALBHRAN from the Secretary of State Por tre del ontse

to (1) Colonial Dependencies except Felestine and Trans Jovian

but including British North Borneo Company,

Sent 5.45 pale s 15 September 1939

16

1

IMMED LATE

No.54. Confidential.

1-

It must be appreciated that, as financial strain of

prolonged war on Empire resources is likely to be great, all

expenditure by government (and indeed by general public) should,

as far as possible, be avoided which (a) involves use of foreign exchange (as to this see my circular telegram No.21 of 29th August) or (b) creates demand for unessential goods and se deflects men, material and shipping from war purposes. In this

e nnection you will appreciate that it will be very desirable to

replace imported goods of all kinds especially foodstuffs by local produce wherever possible.

2.

Subject to the considerations at (a) and (b) above I should like to see the present activities of government continue on the soole at present approved or in contemplation in all cases where no serious difficulty is seen in financing them from local

Pev8.00 Ju 44 those Colonies where difficulty la already being

VAUXIÍC)100.. or i likely to be experienced in balancing the

esistance

th

Tolong is already in receipt of Treasury

choul? be clad of an indication as early as possible

mtes you would be forced to introduce

0 the nature of 900

QU

to be called pon to carry on without Treasury assistance

17 Panu money for the period of the war.

Mb to see existin ocial services and developmenĻU

little es possible, both because serious

retrenchment and coASQUC € 21. vurtailment of services at present

+