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[(THIS DOCUMENT IS THE PROPERTY CP HIS BRITANNIC MAJESTY'h GOVERNMENT)
m
I
C A B I N E T '
PROPOSALS PGR ITNANOIAL ASSISTANCE TO
ACCELSEATS THE DEVELOPMENT OP IMPERIAL RESOURCES.
( J o i n t Memorandum by t h e S e c r e t a r y c f
S t a t o f o r t h e C o l o n i e s and t h e P r e s i d e n t
of t h e Board of T r a d e . )
Prime
Minister,
We have p r e p a r e d ,
proposals for
financial
been p r e p a r e d ;
consideration,
assistance to a c c e le r a t e the
ment of I m p e r i a l r e s o u r c e s .
t o the Crown C o l o n i e s ,
and submit f o r your
Our p r o p o s a l s r e l a t e
f o r wbioh d e t a i l e d
t o t h e Dominions and t h e i r c o n s t i t u e n t
schemes of c c - o p e r a t i o n a r e brought
primarily
plans have
but we d e s i r e t o e x t e n d s i m i l a r
States,
already
assistance
where
suitable
forward.
I n s u b m i t t i n g t h e s e p r o p o s a l s we wish t o
shortly,
devslop­
state,
some of t h e c o n s i d e r a t i o n s which appear t o us t o
necessitate
immediate a c t i o n upon t h e s e
(l)
During
the p a s t year
lines.
the Export Trade o f
this
country was 31$ b e l o w t h e 1913 l e v e l .
(2)
Our p o p u l a t i o n has i n c r e a s e d c o n s i d e r a b l y ;
and
l a r g e numbers must remain permanently unemployed u n l e s s we.
can g e t a g r e a t
(3)
mako I t
i n c r e a s e both i n t r a d e and
emigration,
P r e s e n t and p r o s p e c t i v e c o n d i t i o n s i n Europe
essential
t h e war upwards of
f o r us t o d e v e l o p new m a r k e t s .
one-third
d i r e c t l y w i t h Europe.
Before
of our Export Trade was done
Indirectly,
we were s t i l l
dependent upon European purchasing p c v e r , because
more
credits
c r e a t e d by I n d i a n and Chinese s a l e s i n Europe were used
for
financing
E a s t e r n purchases from B r i t a i n .
The Russian
debacle,
the, p r o b a b l e c o l l a p s e - o f
Germany,; t h e
u n c e r t a i n t y and reduced p r o d u c t i o n i n o t h e r
the uneconomic f r o n t i e r s
polioyof
o f new S t a t e s ,
general
countries,
coupled with a
h i g h p r o t e c t i o n and t r a d e r e s t r i c t i o n s ,
certain that'for
it
many y e a r s t o come our t r a d e vrilth
Europe cannot r e a c h ' a n y t h i n g
(4)
make
It
is
l i k e "normal
proportions.
e m i n e n t l y d e s i r a b l e t h a t we should
purchase more raw materia,"'^ w i t h i n fchfc iSorpire and l e s s
from
M
the United States^
the f i n a n c i a l
In th^-case of
advantages of
increasing
purchases w i t h i n t h e Empire,
an a c t u a l s h o r t a g e
in addition
to
our p r o d u c t i o n and
t h e r e i s a dangerous r i s k
of s u p p l i e s ,
by an i n t e n s i v e i n c r e a s e
ootten,
whioh can o n l y be
of c u l t i v a t i o n
of
of
safeguarded
c o t t o n i n the
Ibipiret
(5)
The development
i s bound t o be v a r y
u n l e s s t h e I m p e r i a l Government w i l l g i v e
direct
slow
financial
assistanoe,
(6)
jfepsrditure
Such a use o f c r e d i t w i l l undoubtedly
on unemployment r e l i e f
by th? p l a c i n g
of
w i l l be r e d u c e d ,
o r d e r s and by tho openings f o r
pay.
both
emigrants;
and e x p e n d i t u r e o f t h i s kind c r e a t e s g r o w i n g markets with
a complementary t r a d e f o r
contend
the f u t u r e .
Nor i s i t
t h a t p r i c e s w i l l be p r o p o r t i o n a t e l y
f a i r yO
increased.
F a c t o r i e s running on p a r t i a l p r o d u c t i o n mean high
if
the f a c t o r i e s
In
we should, is
which,
are f i i l s d
these circumstances,
scon as p o s s i b l e ; ,
within a given financial
Secretary
of S t a t e f o r
assisting
suitable
Bill
costs are
costs;
reduced.
we think i t
essential
obtain statutory
limit,
powers
w i l l permit
the
the C o l o n i e s a wide d i s c r e t i o n
schemes.
.7e t h e r e f o r e
should be i n t r o d u c o d g i v i n g
J
in
suggest that a
the S e c r e t a r y
of
State
that
powor t o
subjoot
s u b s l d l b o schemes c f
t o s fir.:, no 1,-1 l i m i t
£mporijjl
development,
t h a t t h e annual o o o t
to
tho I m p e r i a l iixchequer should not e x c e e d £ 2 , 0 0 0 , 0 0 0 ;;
a yecr.
T h i s power should be e z e r c i s a b l e
t h e payment or. advance o f i n t e r e s t
part for
period
either
i n whole or
by
in
a term o f y e a r s during t h e c o n s t r u c t i o n a l
j
or u n t i l t h e scheme becomes r e v e n u e p r o d u c i n g ;
or by t h e d i r e c t
l o a n o f money a t a cheap r a t e ,
by a c o m b i n a t i o n
o f t h e s e two m e t h o d s .
It
is
suggested
,I
or
J
t h a t t h e power
of
the
Secretary
:
of
S t a t e under t h i s B i l l
limited to a period
o f t e n y e a r s from the p a s s i n g o f an
A c t and t h a t as r e g a r d s
advance o f
interest
a t a cheap r a t e ,
schemes i n v o l v i n g
as d i s t i n c t
liability
under any approved
tho payment
from t h e l o a n o f
y e a r s from the p a s s i n g o f
t o make such payments or
the A c t ,
Direct, loans
be mada r e p a y a b l e w i t h i n a p e r i o d not e x c e e d i n g
i s s u e , whatever that
Colonial
Office,
fifteen
should;,
thirty
of
in d e t a i l
develop­
by t h e
and which could be r a p i d l y put i n hand.
They a r e a l l .schemes which
development programme o f
form p a r t
o f t h e normal
the Grown C o l o n i e s , but which,
owing t o t h e p r e s e n t f i n a n c i a l
resources
of t h e
c o u l d o n l y be put i n hand over a l o n g pcri.;d
thorn i n the i n i t i a l
improved
generally,
transport;
! :
Public
should be
facilities
the p r o v i s i o n of r a i l w a y l o c o m o t i v e s
and o t h e r forms o f
finance
stages.
The schemes t o be a s s i s t e d
as works p r o v i d i n g
Colonies,
o f years,,
u n l e s s t h e I m p e r i a l Government i s p r e p a r e d t o
utility
advances
d a t e may b o .
The a t t a c h e d memorandum g i v e s a l i s t
ment schemes which have been prepared
or
capital
scheme should t e r m i n a t e w i t h i n
y e a r s from t h e d a t e o f
i
t o a p p r o v e new schemes should be
for
transport;
and r o l l i n g
and works o f
utility"
defined
stock
public
would c o v e r
water
;
supply,
d r a i n a g e , , r e c l a m a t i o n and sea d e f e n c e ,
supply o f power and
of
the schemes i n t h e
by l o a n s r a i s e d
hacked hy tha u n d e r t a k i n g o f
a g u a r a n t e e or advance o f
period,
The C o l o n i a l
eaoh case they could
u i r e o t l y hy t h e
interest
Office
during the
are s a t i s f i e d
interest
to
practicable
in a l l
the
(Signed)
"
8.2.23
the period
the s h o r t e s t
Coloni
capacity
of f r e e
DEVONSHIRE
P. LLOYD GRBAME,
in-'
merit3
of
s
each
or postponed
term which i s f a i r
circumstances?
of
initial
that
d e a l w i t h t h e case on i t s
so as t o l i m i t
list
t h e I m p e r i a l Government
and i n accordance w i t h ' the f i n a n c i a l
Colony,
the
light.
The g r e a t m a j o r i t y
would he f i n a n c e d
and
and­
EASTERN COLONIES.
£
Matara ­ Hambantota E x t e n s i o n
)
Rainbukkara ­ Keg a l i a E&tenBion
j
500,000
CEYLON
New r a i l w a y
workshops
Hydro-JSlecttio
EE
\T£I)
MALAY
STATES
1,000,000
Scheme
1,000,000
Railway Extension,
Water
Railway B u i l d i n g s ,
Wharves,
Causeway a c r o s s Johore
Supply,
1,069,000
984,431
Straits
WEST AFRICA,
SIERRA
EToiB
mm
COAST
NIGERIA
Relaying
of Main L i n e
500,000
Completion of F r e e t o w n Wharf
350,000
Central Province Railway
1,600,000
Western R a i l w a y from T a k o r a d i t o Wioso
2,244,000
E x t e n s i o n of
1,020,000
t h i s R a i l w a y t o Western A s h a n t i
Completion of E a s t e r n R a i l w a y
Relaying
(say)
4,000,000
o f Minna-Kaduna S e c t i o n and r e c o n ­
s t r u c t i o n of b r i d g e s
885,000
Calabar Wharf
180,000
EAST AFRICA.
KENYA
Thika E x t e n s i o n
L i n e from E l d o r e t
Improvements
600,000
to K i t a l e
250,000
o f main l i n e
E x t e n s i o n of U a s l n Gishu branch t o
Victoria
Harbour f a c i l i t i e s
400,000
Port
1,000,000
at P o r t V i c t o r i a
200,000
EAST AFRICA
(continued]
-A5CA.
R a i l w a y from Kampala t o Congo
SQAMYIKA.
E x t e n s i o n o f Tanga R a i l w a y f r o m Moehi t o
_A_SALA.ro
Frontier
1,600,000.
Axusba
450,000
R a i l w a y f r o m Ruvu t o K i B a k i
800,000
R a i l w a y e x t e n s i o n t o Lake Kyasa
900,000
R a i l w a y from Lomira Bay t o F o r t
Jameson
?00,000
B r i d g e a c r o s s Zambesi
Expropriation
of Shire' H i g h l a n d s
Railway
127,500
Lump sum c f
and g u a r a n t e e of
and i n t e r e s t
%
1,000,000
principal
536,750
of
1st D e b e n t u r e s ,
( T h e r e may be a sum o f £80,000
a v a i l a b l e as l i q u i d
assets.)
^ fl 9
LOCOMOTIVES, RAILWAY ROLLING- STOCK,
AND MOTOR TRANSPORT.
It
i s b e l i e v e d that
some of t h e l a r g e r
would be p r e p a r e d to p l a c e a d d i t i o n a l
rolling
stock,
be a r r a n g e d .
reference
give
if
Definite
figures
the C o l o n i e s a t l e a s t
place,
orders for
satisfactory' financial
t o the C o l o n i e s ,
terms b e f o r e
could
etc,
Colonies
terms
cannot be g i v e n
but i t
locomotives
could
without
would be n e c e s s a r y
an o u t l i n e
of
a s k i n g them what a d d i t i o n a l
the
to
financial
orders they ­
3
With r e f e r e n c e
of
assistance
t o the proposals f o r
to certain Colonies for
Scheme.
the w a t e r power o f
grant
the development
t h e i r r e s o u r c e s , I would draw a t t e n t i o n
Hydro E l e c t r i c
the
t o the
This i s a project
Ceylon
for
c e r t a i n r i v e r s i n Ceylon.
utilising
I t has been
examined and r e p o r t e d upon by t h e E l e c t r i c a l A d v i s e r
the Government of I n d i a ,
of
to
and a scheme has been p r e p a r e d
and c r i t i c i s e d by the C o n s u l t i n g E n g i n e e r s to: the-Crown
Agents.
The scheme p r o v i d e s f o r
stages,
but i t
three
I s proposed t o p r o c e e d w i t h the f i r s t
only at present.
about £l,000,OOOj
This f i r s t
stage i s estimated to
and the Governor and E x e c u t i v e
have e x p r e s s e d the o p i n i o n that
financially
construction in
the f i r s t
stage
sound and would be s e l f - s u p p o r t i n g
moderate e s t i m a t e o f
to d r i v e machinery,
cost
Council
is
on a
the demand l i k e l y t o a r i s e f o r
e t c . already
stage
in e x i s t e n c e .
power
The
legislative
C o u n c i l , who a r e v e r y much opposed t o any
increase
liabilities
of
a t the moment, have so f a r
d e c l i n e d t o make f i n a n c i a l
provision for
t h e i r a t t i t u d e has been a f f e c t e d
the
scheme, and
t o some e x t e n t
by d i s ­
a-greeinsnts as to the appointment of a Chairman of the :
Board t l c o n t r o l
that i f
the scheme.
adequate f i n a n c i a l
It
seems, h o w e v e r ,
a s s i s t a n c e were a f f o r d e d
C e y l o n Government would be prepared t o p r o c e e d at
w i t h the schemet
for
w e l l advanced.
""Details o f
?
recent
probable
once
which plans and s p e c i f i c a t i o n s
are
the scheme a r e shown i n a
s e s s i o n a l taper which c o u l d e v e n t u a l l y be put
b e f o r e any Committee i f
the
desired.
'