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6. The Movement demands a federal form of constitution for the Gold Coast when it becomes independent. It wants a Constituent Assembly set up to review the constitution before the Gold Coast becomes independent. It has also campaigned vigorously against alleged corruption in the Cocoa Marketing Board and Cocoa Purchasing Company. (Dr. Nkrumah has just agreed to appoint a Commission of Enquiry into these allegations.)

7. The growth of the N.L.M. was fiercely resisted by the C.P.P. and at first there were numerous clashes and disturbances in Ashanti, particularly in Kumasi, which caused the Government considerably to reinforce the police and military forces there.

a.

8. In July an Independent candidate supported by the N.L.M. won a by-election in an Ashanti constituency from the C.P.P. by a big swing of votes. Since this by-election the N.L.M. has gained confidence and so there has been a noticeable reduction in the number of incidents of violence in Ashanti. The Government has reduced both the police and military forces to their normal levels. I cannot tell the exact strength of the N.L.M. and its associates in the Gold Coast. The best guess I can make is that if a general election were held soon the C.P.P. would retain power with a considerably reduced majority, possibly quite small. But the N.L.M. and its associates do not form at the moment a coherent political group and on many matters they follow different policies. The main strength of the N.L.M. lies in Ashanti, and it is because of the Movement's hold over that Region that it has acquired its importance, and not because of its association with other groups.

10. The N.L.M. has submitted to the Governor its proposals for the federal form of constitution it desires. They provide for four regional bi-cameral legislatures and a central bi-cameral legislature, roughly on the lines of the Nigerian set-up. These proposals are hardly practicable for a territory with a population of just over 4 millions: they would be expensive and there are certainly not enough able men to run five separate Governments.

11. In May last a Select Committee was appointed by the Legislative Assembly to consider a federal constitution and a Second Chamber. Their report rejected a federal form of constitution as inappropriate to the Gold Coast and recommended that consideration of the need for a Second Chamber should be deferred. Opposition members refused to take part in the work of the Select Committee, which was boycotted by the N.L.M. and the organisations supporting it. Opposition members also refused to take part in the debate on the Select Committee's report, which was accepted by the Government in their absence.

12. Subsequently I was asked by the Government of the Gold Coast to arrange for an adviser with experience of constitutional matters to visit the Gold Coast to assist all parties in reaching agreement on a constitution for the Gold Coast. I secured Sir Frederick Bourne, K.C.S.I., a former Governor of East Bengal, for this assignment; he has been working in the Gold Coast since the end of September.

13. It is too early to say whether he will succeed in bringing the opposing factions to agreement on the form of.constitution best suited to the Gold Coast when it becomes independent. He has found that the Northern Territories representatives would accept a reasonable compromise in the constitutional dispute, but although he has had the impression from the N.L.M. that they were really anxious to discuss things with him that Movement has seized on every possible excuse to postpone doing so. At the moment they have run out of excuses and I have some hope that Sir Frederick may be able to realise his own hope of having a more or less concrete scheme ready for discussion at a round-table conference early in December, leading to a final report by Christmas.

14. In C. (54) 306, dated 1st October, 1954, I said that the grant of independence might have to be made at the end of 1956 or very soon thereafter. This is now most unlikely. Until it has been demonstrated in the Gold Coast that the majority of the people are in favour of immediate independence and that a wide measure of agreement exists on the form of constitution for the Gold Coast when it becomes independent, there can be no question of the final and irrevocable step being taken. This has been plainly stated to Dr. Nkrumah. He has recently shown a greater willingness to accept constructive suggestions designed to reduce the tension in the Gold Coast and to allow the calm and ordered discussion of

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