CAB129-37 — Page 98

SECRET

C.P. (49) 210

19th October, 1949

Printed for the Cabinet. October 1949

CABINET

Ancalated: 21. 10, 49

"at Immi

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31

ANNUAL REPORT AND ACCOUNTS OF THE OVERSEAS FOOD CORPORATION, 1948-49

MEMORANDUM BY THE MINISTER OF FOOD

1. I circulate for the information of my colleagues the text of the first annual report of the Overseas Food Corporation, which will be published very shortly. 2. The document is in proof form and will be subject to minor amendments, out no changes of substance will be made.

3. The report has been deliberately drafted so as to give a full and frank account of the progress of the Groundnuts Scheme up to 31st March, 1949. In pite of the fact that I have already given the House all the essential information which it contains, the report will come as a disappointment and a shock to many people who have based their hopes on the original estimates in the White Paper Cmd. 7030). Thus it will be shown that during the first two years only a little ver 46,000 acres had been cleared, while expenditure amounted to more than 21 million. These compare with figures of 600,000 acres and £6 million given the original estimate. The difficulties of gathering together equipment and ransport troubles delayed the start, but the chief cause of the discrepancy has een the fact that the task of bush clearing has proved much more difficult than ad been anticipated. Techniques for dealing with the awkward rooting problem ave had to be evolved and during the first year the cost per acre of clearing work is reckoned to have been ten times the original estimate of £3 17s. 4d. Much the £21 million has been spent on buying experience which could be gained no other way, but which is bound to appear a very expensively bought asset.

4. Nevertheless, I welcome the Corporation's decision to publish a report this form. I am convinced that in no other way could the Corporation have icceeded in producing a document which will both tell the essential truth and Make the scheme live for men and women who have never seen it. And this is e only way to secure an understanding of the difficulties which inevitably face vast new project of this kind.

5. I do not propose to comment on the future of the scheme in this morandum. The publication of the Corporation's Report and Accounts will doubt give rise to a request for an early debate, but before that time I shall rculate a separate memorandum on the future of the scheme, in the light of scussions which are now proceeding with the Treasury, the Colonial Office and Board of the Corporation. This will, I hope, enable us to take firm decisions the future and to deal effectively with criticisms which will be raised during debate.

Ministry of Food, S. W. 1,

19th October, 1949.

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J. S.

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